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Home My WebLink AboutA010 - Memo from Finance Director dated May 5, 2003 - schedule and projects includedFinance Administration Cal`nK People Q'I'llily F11�1'19111 71 1""Xceptional Service TO: Paul Wiegand, Director of Public Works Lynn Brennan, Public Works Administrative Assistant Nancy Carroll, Director of Parks and Recreation FROM: & uane Pitcher, Finance Director SUBJECT: General Obligation Bonds, Series 2003 New Money Bond Issue We are ready to begin the process for the bond issue scheduled for FY 03/04. Projects funded by the issue include the following: 200312004 CIP G.O. Bond Issue Westbend Drive Area Storm Sewer $ 110,000 Residential Low Point Drainage 100,000 Arterial Street Rehab. (Lincoln Way) 520,000 6th Street Recon./Streetscape 2,580,000 Cy -Ride Route Recon. (Bloomington 700,000 Rd) State Street Widening 1,500,000 Ada Hayden Heritage Park 1,412,800 Total $6,922,800 In addition, we will need to add two special assessment projects: Beedle Drive $ 36,000 SE2 nd and Kingsbury 229,962 Total $ 265,962 The issuance of these bonds will not affect the debt service property tax assessment since the special assessment payments will abate these bonds. Please review all your projects and notify me of any changes in the estimated cost or timing of the projects. Provide your input to me by Thursday, May 22, 2003. c: Steve Schainker, City Manager Diane Voss, City Clerk Sue Rybolt, Assistant Finance Director Carol Collings, Budget Officer PROPOSED TIME SCHEDULE /�� —_.' _' '__^ __ - $6'480'262 (Net) General Obligation Bonds, Series 2003 Date Task Description Responsibility June 11-13 Issue Planning " Bond sizing and structure pFM 0 Time Line distributed PFM June24 Council Meeting ° Initial action calling for hearing C July 28- Document Preparation ~ Prepare official statement PF8A August 8 ° Prepare bond resolution BC ° Paviowdraft documents PFM' BC.0 Qequesf Rating w Request rating from Moody's pF&\ ° Documents foMoody'a PFM July 22 Council Meeting 0 Public hearing C Augusf4-11 Market Bonds ° Print, post and distribute official pFAA statement * Notify wire services PFM " Cp|| potential bidders PFM ° Monitor market conditions PFkA ° Rocoivokoting RA August 12 Bond Sale ° Take bids and check for accuracy pFM ° Prepare sale analysis PFM 0 Complete bond resolution BC 0 Adopt resolution awarding sale C Puuol i�WFThe pouxGroup * Date Task Description Responsibility August 13- Closing Preparations * Prepare closing documents @C September 5 ° Confirm closing date and funds transfer pFM ° Closing letter sent foall parties pFM August 26 Council Meeting 0 Council adopts Bond Resolution September 3 Closing 9 Purchaser pays for the Bonds Financing Team Members: C = City of Ames BC = Doryoy& Whitney. (bond counsel) PFM = Public Financial Management, Inc. (finamcio|advisor) PA = Moody's (rating agency) Pagu2 $6,555,000 General Obligation Corporate Purpose Borids, Series 2003 CY/Y LVA'nes� 10 I"td /1 dc DEBT SERVICE SCHEDULE I Xite Principal Coupon 111 te rest Total P+I FISCAL TOTAL 9/0 1 / 2003 - - G/O 1 /2004 550,000.00 1.000% I18,275,00 668,275.00 668,275W0 12/01/2004 - - 7G,, 100.00 76, 100,00 6/01/2005 550,000.00 1.300% 76,100.00 626,100,00 702,200.00 12/01/2005 - - 72,525.00 72,525.00 G/O I /ZooG 550,000.00 1 JW01/11 72,525.00 622,525.00 695,050.00 12/01 /220OG - - 68,1 25W G8,125.00 G/O 1/2007 54 5,00CWO 1.9001y" 68,I 2500 G13,125.00 68 t,250.00 12/01/2007 - G2,947.50 62,947-50 - 6/01/2008 5455,000.00 2 .200L//o 62,947.50 G07,94 7.50 670,895.00 12/01/2008 - - 56,952.50 5G,952.50 - G / 0 1 / Z 0 0 9 545,000.00 2. 4 0 OX, 56,952.50 0 1 9)5 2. 5 0 658,905.00 1210 112009 - - 50,412.50 50,4I 12. 50 - 6/01 /20 10 545,000.00 2.6001/111/1 50,41 2.50 5 9 5, 112.5 0 Gd 5,825.00 12/01/2010 - 43,,1,27.50 -13,327-50 6/01 /201 1 545,000W 2. 8 0 O;'0 43,327,50 5(",;27.50 63 1,65500 12/01/2011 - 35,697.50 35,697.50 - G/01 /29012 5-15,000,00 3.0001S/1 35,697.50 580,697.50 G 16,395.00 12/01/2012 - - 27,522.50 27,522.50 - 6/0 1 /2013 545,000.00 3.20046 27,522.50 572,522.50 600,045.00 12 01 /2 0 13 1 8,; 02.50 18,802.50 G 0 1 /Z 0 14 5,15,000.00 3.400`3£ 18,802.50 5, (; 3802.50 5 S-9, G 0 5. 0 0 12/01/2014 - 9,537.50 9,537.50 G/01/2015 545,000.00 3.500o 9,537.50 554,537.50 564,075.00 Total 6,555,000.00 1,162,175.00 7,7 17,175.00 YIELD STMILSTICS BondYear Polhirs- ...... - ............. ................................................. — ......... ..................... ..... --- ......... ... — S40,901.25 AverageLife., .................................... .................. __ ................ ................... .... ___ .... ........ 6.240 Years AvengeCoupon ............. — ........... ........... — ...... .... ____ .............................. -__ ................. ....... ............. 2.84141 68% Net Interest Cost (NIC) .......... ..................... ................................ -- ...... ......... ...... 2. 9,3 7 5 7 5,, % True Interest Cost (TIC ) — ....... — ..... .............. — .................. -- ........ -1-11.1 ............. ....... ...... 2.9241678% Bond Yield for Arbitragc Purposes --- ... ................. ....... -- ......... --- ............................................ 2.8 1 G 4 4 7 5 All Inclusive Cost (AIC). ........ -- .......................... -- ............................. ................... .............. 3.0208244E IRS FORM 8038 Net Interest Cost ................ ............ — ...... ........... ...................... ............. ...... ........ 2- 8 4 14 1 G M`6 Wci,4htcd Avcragc Ntittuity, .... ......... -- ............. ................ .......................... ......................... 6.240 Years c"i-ollp, Inc. Me MX671PURPOSE 1,11h1k, IM"Ince ("11-912CU5 2�381M