HomeMy WebLinkAboutA004 - Council Action Form dated March 8, 2011 ITEM # 2
DATE: 03-08-11
COUNCIL ACTION FORM
SUBJECT: SETTING MARCH 22, 2011 AS THE DATE OF PUBLIC HEARING FOR
AUTHORIZATION TO ISSUE ESSENTIAL GENERAL OBLIGATION
CORPORATE PURPOSE REFUNDING BONDS, SERIES 2011A, IN AN
AMOUNT NOT TO EXCEED44,4%,AMOr-
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BACKGROUND:
The City of Ames has the opportunity to refund General Obligation Bond Issues, Series
2002A, 2002B, and 2003. This will be a current refunding of bonds called at par on the
June 1, 2011 call date. Estimated value of savings for the current refunding is
$323,361.
Issuance of bonds requires that a public hearing be held.
ALTERNATIVES:
1. Establish March 22, 2011, as the date to hold a public hearing and take action to
authorize the issuance of Essential General Obligation Corporate Purpose Bonds,
Series 2011A, not to exceed $6,105,000.
2. Delay the hearing on the issuance of General Obligation bonds.
MANAGER'S RECOMMENDED ACTION:
Issuance of these bonds provides refunding of outstanding bonds with an estimated
savings of approximately $323,361, providing savings to future debt service property
levies.
Therefore, it is the recommendation of the City Manager that the City Council adopt
Alternative No. 1, thereby establishing March 22, 2011, as the date to hold a public
hearing and take action to authorize the issuance of Essential General Obligation
Corporate Purpose Bonds, Series 2011 A, not to exceed $6,105,000.
1
SAVINGS
City of Ames,Iowa
General Obligation Refunding Bonds,Series 2011A
Pre-Sale Analysis
Present Value
Prior Refunding Annual to 05/17/2011
Date Debt Service Debt Service Savings Savings @ 2.4321241%
12/01/2011 120,043.75 62,973.21 57,070.54 56,331.88
06/01/2012 1,375,043.75 1,363,428.75 11,615.00 68,685.54 11,326.93
12/01/2012 98,259.38 51,381.75 46,877.63 45,165.73
06/01/2013 1,383,259.38 1,361,381.75 21,877.63 68,755.26 20,825.44
12/01/2013 74,985.63 42,146.25 32,839.38 30,884.42
06/01/2014 1,389,985.63 1,352,146.25 37,839.38 70,678.76 35,159.21
12/01/2014 50,365.63 30,618.25 19,747.38 18,128.22
06/01/2015 795,365.63 775,618.25 19,747.38 39,494.76 17,910.42
12/01/2015 35,583.13 22,386.00 13,197.13 11,825.68
06/01/2016 245,583.13 247,386.00 (1,802.87) 11,394.26 (1,596.11)
12/01/2016 30,543.13 19,618.50 10,924.63 9,555.53
06/01/2017 250,543.13 249,618.50 924.63 11,849.26 799.04
12/01/2017 25,043.13 16,479.00 8,564.13 7,311.93
06/01/2018 255,043.13 251,479.00 3,564.13 12,128.26 3,006.44
12/01/2018 19,293.13 12,942.25 6,350.88 5,292.78
06/01/2019 259,293.13 252,942.25 6,350.88 12,701.76 5,229.19
12/01/2019 13,293.13 9,042.25 4,250.88 3,458.04
06/01/2020 268,293.13 259,042.25 9,250.88 13,501.76 7,435.07
12/01/2020 6,790.63 4,704.75 2,085.88 1,656.31
06/01/2021 271,790.63 259,704.75 12,085.88 14,171.76 9,481.59
6,968,401.34 6,645,039.96 323,361.38 323,361.38 299,187.75
Savings Summary
PV of savings from cash flow 299,187.75
Plus:Refunding funds on hand 2,255.00
Net PV Savings 301,442.75
Mar 4,2011 11:54 am Prepared by Public Financial Management (Finance 6.019 ames:AMES-REF2011,2011A) Page 8