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Home My WebLink AboutA001 - Memo from Finance Director - projects and schedule AL Memo Finance Administration Caring People Quality Programs LL. Exceptional Service f � n TO: Clint Petersen, Fire Chief � ,�i �� Mr�Y 7 20(A Paul Wiegand, Director of Public Works - T, Lynn Brennan, Public Works Administrative Assistant CITY F MESS°� Y c��e aMEs,lavva _ Nancy roll irector of Parks and Recreation FROM: uane Pitcher, Finance Director DATE: May 17, 2004 SUBJECT: General Obligation Bonds, Series 2004 New Money Bond Issue We are ready to begin the process for the bond issue scheduled for FY 04/05. Projects funded by the issue include the following: 200412005 CIP G.O. Bond Issue Fire Apparatus $ 369,000 Storm Sewer Outlet Erosion Control 100,000 Annual Residential Low Point Drainage 100,000 East Lincoln Way Widening 4,000,000 Aerial Street Rehabilitation (Lincoln Way) 160,000 Southeast 16`h Street Paving 200,000 CyRide Route Reconstruction (Bloomington Rd) 600,000 Bridge Rehabilitation Program 150,000 Ada Hayden Heritage Park 70,000 Total $ 5,749,000 In addition, we will need to add one special assessment project: Dayton Avenue $ 209,427 Total $ 209,427 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 Friday, May 28, 2004. c: Steve Schainker, City Manager Diane Voss, City Clerk Sue Rybolt, Assistant Finance Director Carol Collings, Budget Officer 1 r PRELIMINARY TIME SCHEDULE CITY OF AMES, IOWA $5,958,427 (net) General Obligation Bonds, Series 2004 August 2004 September 2004 October 2004 5 M T W T F 5 5 M T W T F 5 5 M T W T F 5 1 2 3 4 5 6 7 1 2 3 4 1 2 8 9 10 11 12 13 14 5 6 7 8 9 10 11 3 4 5 6 7 8 9 15 16 17 18 19 20 21 12 13 14 15 16 17 18 10 11 M 13 14 15 16 22 23 24 25 26 27 28 19 20 21 22 23 24 25 17 18 19 20 21 22 23 29 30 31 26 27 28 29 30 24 25 26 27 28 29 30 31 Date Task Description Responsibility July 22 - Issue Planning • Bond sizing and structure FA August 6 • Time Line distributed FA August 24 Council Meeting • Set date for public hearing for Sept 14��_ C August 25 - Document Preparation • Prepare official statement PFM, C September 14 • Prepare bond resolution BC • Review draft documents PFM, BC, C September 14 Council Meeting • Public Hearing C • Set sale date for September 280 C September 7- 21 Request Rating • Request ratings from Rating Agency PFM • Documents to Rating Agency PFM • Receive Ratings RA September 13 - 27 Market Bonds • Print, post and distribute official statement PFM • Notify wire services PFM • Call potential bidders PFM • Monitor market conditions PFM September 28 Bond Sale • Take bids and check for accuracy PFM • Prepare sale analysis PFM • Complete bond resolution BC • Adopt resolution awarding sale /) C 0 The PFM Group Page 6 August 1,2004 Page Two Date Task Description Responsibility September 28 Council Meeting • Council adopts Bond Resolution C, BC September 29 - Closing Preparations • Prepare closing documents BC October 18 • Confirm closing date and funds transfer PFM • Closing letter sent to all parties PFM October 19 Closing • Purchaser pays for the Bonds C, BC, PFM Financing Team Members: C = City of Ames, Iowa BC = Dorsey& Whitney LLP (bond counsel) PFM = Public Financial Management, Inc. (financial advisor) RA = Rating Agency(Moody's Investors Service) The pFM Group Page 7 City of Ames, Iowa List of Debt Sizing/Structuring Assumptions $6,030,000 General Obligation Bonds, Series 2004 1. Bonds Dated October 15, 2004; 2. Ten year amortization schedule; 3. Principal repayment to begin on June 1, 2005; 4. Payments to effect a level debt service structure; 5. Project Construction Fund, gross funded, to provide $5,958,427; 6. No capitalized interest; 7. Interest repayments to begin on June 1, 2005; 8. Current market rates for "Aaa" rated bonds plus 15 basis point contingency; and 9. Other expenses of approximately $35,000 cost of issuance and 0.6% allowable underwriter discount. Prepared by Public Financial Management, Inc. August 1, 2004 - Page 5 SOURCES AND USES OF FUNDS City of Ames, Iowa $6,030,000 General Obligati on Bonds, Series 2004 Preliminary Schedules -August 1, 2004 Current Market Rates plus 15 basis points Sources: Bond Proceeds: Par Amount 6,030,000.00 6,030,000.00 Uses: Project Fund Deposits: Project Fund 5,958,427.00 Delivery Date Expenses: Cost of Issuance 35,000.00 Underwriter's Discount 36,180.00 71,180.00 Other Uses of Funds: Contingency 393.00 6,030,000.00 Aug 2, 2004 3:45 pm Page 1 BOND SUMMARY STATISTICS City of Ames, Iowa $6,030,000 General Obligation Bonds, Series 2004 Preliminary Schedules -August 1, 2004 Current Market Rates plus 15 basis points Dated Date 10/15/2004 Delivery Date 10/15/2004 Last Maturity 06/01/2014 Arbitrage Yield 3.587336% True Interest Cost(TIC) 3.715250% Net Interest Cost(NIC) 3.720378% All-In TIC 3.840073% Average Coupon 3.607722% Average Life (years) 5.326 Duration of Issue (years) 4.785 Par Amount 6,030,000.00 Bond Proceeds 6,030,000.00 Total Interest 1,158,638.11 Net Interest 1,194,818.11 Total Debt Service 7,188,638.11 Maximum Annual Debt Service 721,613.11 Average Annual Debt Service 746,656.01 Underwriter's Fees (per$1000) Average Takedown Other Fee 6.000000 Total Underwriter's Discount 6.000000 Bid Price 99.400000 Par Average Average Bond Component Value Price Coupon Life Serial Bonds 6,030,000.00 100.000 3.608% 5.326 6,030,000.00 5.326 Aug 2, 2004 3:45 pm Page 2 BOND PRICING City of Ames, Iowa $6,030,000 General Obligation Bonds, Series 2004 Preliminary Schedules -August 1, 2004 Current Market Rates plus 15 basis points Maturity Bond Component Date Amount Rate Yield Price Serial Bonds: 06/01/2005 600,000 1.650% 1.650% 100.000 06/01/2006 535,000 2.250% 2.250% 100.000 06/01/2007 545,000 2.650% 2.650% 100.000 06/01/2008 560,000 3.000% 3.000% 100.000 06/01/2009 580,000 3.250% 3.250% 100.000 06/01/2010 595,000 3.450% 3.450% 100.000 06/01/2011 620,000 3.650% 3.650% 100.000 06/01/2012 640,000 3.800% 3.800% 100.000 06/01/2013 665,000 3.950% 3.950% 100.000 06/01/2014 690,000 4.050% 4.050% 100.000 6,030,000 Dated Date 10/15/2004 Delivery Date 10/15/2004 First Coupon 06/01/2005 Par Amount 6,030,000.00 Original Issue Discount Production 6,030,000.00 100.000000% Underwriter's Discount -36,180.00 -0.600000% Purchase Price 5,993,820.00 99.400000% Accrued Interest Net Proceeds 5,993,820.00 Aug 2, 2004 3:45 pm Page 3 BOND DEBT SERVICE City of Ames, Iowa $6,030,000 General Obligation Bonds, Series 2004 Preliminary Schedules -August 1, 2004 Current Market Rates plus 15 basis points Period Annual Ending Principal Coupon Interest Debt Service Debt Service 10/15/2004 06/01/2005 600,000 1.650% 121,613.11 721,613.11 721,613.11 12/01/2005 91,910.00 91,910.00 06/01/2006 535,000 2.250% 91,910.00 626,910.00 718,820.00 12/01/2006 85,891.25 85,891.25 06/01/2007 545,000 2.650% 85,891.25 630,891.25 716,782.50 12/01/2007 78,670.00 78,670.00 06/01/2008 560,000 3.000% 78,670.00 638,670.00 717,340.00 12/01/2008 70,270.00 70,270.00 06/01/2009 580,000 3.250% 70,270.00 650,270.00 720,540.00 12/01/2009 60,845.00 60,845.00 06/01/2010 595,000 3.450% 60,845.00 655,845.00 716,690.00 12/01/2010 50,581.25 50,581.25 06/01/2011 620,000 3.650% 50,581.25 670,581.25 721,162.50 12/01/2011 39,266.25 39,266.25 06/01/2012 640,000 3.800% 39,266.25 679,266.25 718,532.50 12/01/2012 27,106.25 27,106.25 06/01/2013 665,000 3.950% 27,106.25 692,106.25 719,212.50 12/01/2013 13,972.50 13,972.50 06/01/2014 690,000 4.050% 13,972.50 703,972.50 717,945.00 6,030,000 1,158,638.11 7,188,638.11 7,188,638.11 Aug 2, 2004 3:45 pm Page 4 Duane R Pitcher/COA To Diane R Voss/COA@COA 08/03/2004 04:28 PM Roger Wisecup/COA@COA, Sue RyboIUCOA@COA, Carol cc B Cole and/COA@COA,Clint E e en/GOQ@COA, Nancy J Carrel @COA, Bob cc Subject Fw: Preliminary Schedules-City of Ames To all, Attached are schedules related to the FY 04-05 G.O. Bond issue. I have reviewed with Bob Josten at Dorsey Whitney and we are ready to move forward. For Diane, please take note of the council dates and let me know if you do not receive council action material in a timely manner. Duane Duane Pitcher, CPA, CPFO Director of Finance City of Ames 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010 -----Forwarded by Duane R Pitcher/COA on 08/03/04 04:23 PM ----- "Heather Casperson" <CAS PERSON H@publicfm.c To <pitcher@city.ames.ia.us> om> <harrison.jeane@dorseylaw.com>, 08/02/04 04:06 PM cc <josten.robert@dorseylaw.com>, "David DIRKS" <ddirks@publicfm.com> Subject Preliminary Schedules-City of Ames Good afternoon, attached to this message you will find a pdf file that contains the following information: Preliminary Debt Schedules List of Assumptions Preliminary Time Schedule You will notice that the preliminary schedules are in a different format than they have been in the past. We have moved to a different software application for debt schedules, if you have any questions regarding this format please let me know. Please let me know if you have any problems with the attachment, if any of the debt assumptions need to be revised or if there are any conflicts with the proposed time schedule. Thank you, Heather Caspersen, Consultant Public Financial Management 45 South Seventh Street, Suite 2800 Minneapolis, MN 55402 caspersonh(a�p fin.com 612-371-3753 (direct dial) 612-338-7264 (FAX)Ames_City_of_IA_Preliminary_Schedules_08-01-04.pdf