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HomeMy WebLinkAboutA010 - Email from Finance Director dated July 30, 2009 - pre-sale analysisDuane RPhcher/COA To Roger VWsaoup/COA@COA'Sue .Cem| _ J1. 0780/200809:22AM 8Co||ings/C0A@COA.Diane RVosa/CDA@CUA cc bou * Subject Pw:City ofAmes Bond Sale Duane Pitcher, CPA, CPFO Director mfFinance City ufAmes 515Clark Avenue PD.Box 811 Ames, Iowa 50010 Phone (515)23S-5114 TionnaPookx <poNert@pfm.com> To Joaten. 07/24/200805:03 PM <Joe*en.Robe rt@domey.com>. Rebecca Stable <aiah|e.rebouoa@dommy.00m=.'Duane RPitcher' <DPitoher@d|y.ammaja.us> oo Subject City ofAmes Bond Sale Good evening; attached are pre -sale analysis, sale details, and an issuance calendar for the City's bond deal. Duane, changes intax law since your last issuance permit the use mfBuild America Bonds, atoo| that may reduce the interest cost on the new debt for the City. | have assumed that we will follow a course that allows us to chose this financing method if it is cost effective; | will be calling you early next week to discuss it further. Please also note the schedule includes the preparation/adoption of an additional resolution toapprove the preliminary official statement. We can also discuss this change next week. All: please let meknow ifyou have questions/revisions. Have anenjoyable weekend, Tlonna TlonnaReed Poo|er,Senior Managing Consultant The PFK4Group |vvvvw.ofmzom|poo|ert@pfnzom J60OGrand Avenue | Suite 214 | Des Moines, |A5O313 515.243.26OOextension 225(voice) 1515J43.6994(facsimi|e) ��� �� Please consider the environment before printing this email and any attachments. SchcdukLnf-E°uri�^,-Schoduke-07-23-09doo Pfe-Sale Analysis, Ames, Serieo2009B.mdf Sale_Dotails_107-2409.doc I a TABLE OF CONTENTS City of Ames, Iowa General Obligation Series 2009B Pre -Sale Analysis Report Page Sources and Uses offunds I Bond Summary Statistics 2 Bond Pricing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Bond Debt Service . . . . . . . . . . . . . . . . . . . . . . 4 Form 8038 Statistics . . . . . . . . . . . . . . . . . 5 Proofol'Arbitrage Yield . . . . . . I . . . . . . . . 6 ,Jul 24, 2009 4:24 pin Prepared by Public Financial Management (aiiies:AMES-200913) SOURCES AND USES OF FUNDS Sources: Bond Proceeds: Par Amount Uses: Project Fund Deposits City of Ames, Iowa General Obligation Series 2009B Pre -Sale Analysis 11,165,000.00 11,165,000,00 Project FLIMIS 11,032,573.00 Delivery Date Expenses: Cost of Issuance 49,765.00 Underwriter's Discount 78,155.00 127,920.00 Other Uses of Unds: Additional Proceeds 4,507.00 11,165,000.00 Jul 24,2009 4:24prn Prepared byPublic l,'ijiancialManagement (aiTies:AMES-200913) Page I BOND SUMMARY STATISTICS City ofAmes, Iowa General Obligation Series 2009B Pre -Sale Analysis Dated Date 10/29/2009 Delivery Date 10/29/2009 Last Maturity 06/01/2021 Arbitrage Yield 3.326362% True Interest Cost (TIC) 3.448208% Net Interest Cost (NIC) 3.462475% NIC w/Interest only 3.356235%, NIC w/Intcrest & OID 3.356235(X0 NIC, w/Interest, 011) & Und. DiSCOLIM 3.462475%, All -In TIC, 3,526428()/o Average Coupon 3.356235% Average Life (years) 6.589 Duration of Issue (years) 5.856 Par Amount 11, 1 65,000M Bond Proceeds 11,165,000.00 Total Interest 2,469,012,60 Net Interest 2,547,167.60 Bond Years from Dated Date 73,564,944.44 Bond Years from Delivery Date 73,564,944.44 Total Debt Service 13,634,01100 MaxiMUM Annual Debt Service 1,178,955.50 Average Annual Debt Service 1,176,472.80 Par Average Average Bond Component Value Price COUP011 Lilt Serial Bonds 11,165,000.00 100,000 3.356(M, 6.589 11,165,000.00 . . ..... ... ..... . 6.589 All -In Arbitrage TIC "TIC Yield Par Value 11,165,000.00 . . .. ..... . 11,165,000.00 11,165,000.00 4- Accrued Interest Premium (Discount) U udcrwri ter's Discount '178, 155.00) (78, 15 5.00) Cost of Issuance Expense (49,705.00) Other Amounts .. . ...... . . . ..... . ...................... ........... . Target Value 11,086,845.00 ....... . ...... . 11,037,080.00 ..... ... ____ . ... . . . . . ............... 11,165,000.00 Target Date 10/29/2009 10/29/2009 10/29/2009 Yield 3,448208%) 3.526428%c) 3,326302% Jul 24, 2009 4:24 pru Prepared by Public Financial Management (arnes:AMES-200913) Page 2 BOND PRICING City n[&muo^Iowa Gcncm| Obligation Series 2009B 9u`3o|oAoo|yoio Maturity Bond Component oure xnmum Rate Yield Price Serial Bonds: 06/01/2010 500.000 1.150Y6 1J501X) 00.000 06/01D011 860.000 1j00% 1.500% 108.000 06x1/201I 870/00 1.680% 1.080% 100O00 0681%08 80,000 2/*0% 10801YO 100.000 00x12014 900.000 2.520% 15201YO 100,000 06m1/2015 925,000 2.790%� 2J90Y� 100x00 06/01D00 955.000 1050% 3O50;6 100.000 06/01D017 980,000 3.320% 3.320Yt /00000 00/01/2018 1.815.000 3.520% 3.5I01)/o 100.000 00/01/2019 /.050.000 3.710Y6 3710% 108,080 06/01/2020 |.090.00O 3.870% 3870% 108.800 06/01/2021 1.130.000 4020;4 4.020'Vo |8W00O l|.|05'000 Dated Date 10O9/2009 Delivery Date 10/29/2009 pio/Coup"n 06/01/2010 PurAmmunA /1./0.000.00 Original Issue Discount pmu,C6011 1/.165.000x0 /oo.00nnonm Underwriter's Discount (7Oj5500) NJ0O000) Purchase Price 11.086.045.00 99J00000% Accrued Interest Net Proceeds 11,086,845.00 ]u|24,Z009 4:24pm Prepared hyPublic Financial K8xnogcoom uoo:&M2S'200913Page 130ND DEBT SERVICE City of Ames, Iowa General Obligation Series 2009B Pre -Sale Analysis Period Annual Ending Principal Coupon Interest Debt Service Debt Service 06/01/2010 500,000 1. 1 50)(N) 190,943.10 690,943.10 690,943.10 12/01/2010 159,240.50 159,246.50 06/01/2011 8()(),()0() 1.5001%, 159,246J0 1,019,246.50 1,178,493.00 12/01/2011 152,796.50 152,796.50 00/01/2012 870,000 1.680% 152,796.50 1,022,796.50 1,175,59100 12/01/2012 145,488.50 145,488.50 06/01/2013 885,000 1080% 145,488.50 1,030,488.50 I,175,977.00 12/01/2013 136,284.50 136,284.50 06/01/2014 905,000 2.520% 136,284.50 1,041,284.50 1,177,569.00 12/01/2014 124,881.50 124,881.50 00/01/2015 925,000 2.790(VO 124,881.50 1,049,881.50 1,174,763.00 12/01/2015 11 1,97T75 111,977.75 06/0 1 /2016 955,000 3.050% 111,977.75 1,066,977.75 1,I78,955.50 12/01/2016 97,414.00 97,414.00 06/01/2017 980,000 3.3201%) 97,414.00 1,077,414M0 1,174,828.00 12/01/2017 81,146.00 81,140.00 06/01/2018 1,015,000 3.520% 81,146.00 1,096,146M0 1,177,292.00 12/01/2018 63,282.00 63,282.00 06/01/2019 1,050,000 3. 7 10 %o 03,282.00 1,113,282.00 1,176,564.00 12/01/2019 43,804.50 43,804.50 06/01/2020 1,()90,0()() 3.870% 43,804.50 1,133,804.50 1,177,609.00 12/01/2020 22,713.00 22,713.00 00/01/2021 1,130,000 4.0201VO 22,713,00 1,152,713.00 1,175,426.0O 11,165,000 2,469,012.60 13,634,012.60 13,634,01160 Note: Debt set -vice less than Pre -levy amount ot'$1,052,797. Jul 24, 2009 4:24 pin Prepared by PUbliC Financial Management (amesAMES-200913) Page 4 FORM 8k0STATISTICS City ofAmes, Iowa General Obligation Series 200va Pre -Sale Analysis Dated Date /029/2009 Delivery Date 10/29/2009 Redemption Bond Component Date Principal c^upm` mi,r Issue Price at Maturity 9rnu| Bonds: 00m1/200 500/00000 1�\50'No 100.080 580/X00.00 500,00010 06/01/2011 800`000.00 /.500%o 100.000 860,000x0 860,000-00 06/01/2812 870,000.00 1.680% 100.000 870,000/0 878,00000 0601/2813 885/00{0 2.080m 100.000 885/N010 885,0O0/0 oux|Dow 905.000.00 15201X, 100.000 905,000.00 905.000.00 00m//2015 925.0W00 2J90;t 100.000 925.000.00 925.000,00 060//2016 055'000o0 3.050v* /00.000 955,000o0 955.000.00 06a1/2017 980.000.00 3.320% 100.000 980,000.00 980'00V.00 00W1/2018 1.015.000.00 3.520& 10(000 1.015.000.00 1.015.000.00 06«1/2019 1,050,000.00 l7/�)/0 |oO.Nm 1,050,000.00 1,050,000.00 0001D020 |'()90'()0000 3.870(X0 100000 l/n0/mO0O 1,()90/mO,00 06/01/2021 1,130,000.00 4.0201N, 100.000 1.130^00000 1.80,080.00 11.165/00000 11.185,0001m 11.165J0000 Stated Weighted Net Maturity Interest Issue Redemption Average Interest Date Rate Price at Maturity Maturity Yield Cos( Final Maturity 0001/2021 4.020Y6 1./30.000.00 1.130.000x0 wroccedaused for accrued interest Proceeds used for bond issuance costs (including undowhtemdimvuo0 Proceeds used for credit enhancement Proceeds allocated mreasonably required reserve orreplacement fund Jul 2*,2009 4:24pm Prepared hyPuhicFinancial Management (aom:AK48S-280913) Page PROOF OFARBITRAGE YIELD City of'Ames, Iowa General Obligation Series 2009B Prc-Sale Analysis Present Value to 10/29/2009 Date Debt Service (i> 3.3263617',/. . 06/01/2010 . . ............... . ..... ... . .. 690,943.10 677,649.38 12/01/2010 159,246.50 153,627.50 06/01/2011 1,019,246.50 967,19024 12/01/2011 152,796.50 142,621.53 06/01/2012 1,022,796.50 939,068.38 12/01/2012 145,488.50 131,393.22 06/01/2013 1,030,488.50 915,427.06 12/01/2013 136,284.50 119,086.73 00/01/2014 1,041,284.50 894,999.13 12/01/2014 124,881.50 105,581.45 06/01/2015 1,049,881.50 873,10426 12/01/2015 111,977.75 91,599.66 06/01/2016 1,066,977.75 858,526,68 12/01/2016 97,414.00 77,10031 06/01/2017 1,077,414.00 838,790.81 12/01/2017 81,140.00 02,140.40 06/01/2018 1,096,146.00 825,680.57 12/01/2018 63,282.00 46,887.83 06/01/2019 1,113,282.00 811,374.69 12/01/2019 43,804.50 31,403.01 06/01/2020 I,133,804.50 799,5 15.82 12/01/2020 22,713.00 15,754.32 06/01/2021 1, 1 52,713M 780,470,95 13,634,012.60 11,165,000.00 - -- , , " - ----------- - - ------ Proceeds Sunirnaty Delivery date Par Value Target for yield calculation 10/29/2009 11,165,000.00 11,165,000.00 Jul 24, 2009 4:24 pin Prepared by Public Financial Management (arnes:AMES-2009B) Page 6