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HomeMy WebLinkAboutA018 - Email from Public Financial Management dated December 16, 2020 Voss, Diane From: Susanne Gerlach <GERLACHS@pfm.com> Sent: Wednesday, December 16, 2020 5:05 PM To: Josten.Robert@dorsey.com; Pitcher, Duane Cc: Wisecup, Roger; Voss, Diane; hammond.emily@dorsey.com Subject: RE: [EXTERNAL] SRF Loan Final Disbursements and Sponsored Project [External Email] Regarding the reduced project costs,you will simply get an amended final amortization schedule from IFA to account for the reduced principal drawn on the loan. No other action should be needed. Regarding the sponsored project, I believe that requires at least an amendment to the original loan agreement. Bob will be able to better guide you through that specific process. From a financing perspective, there is no change to the regularly scheduled principal and interest amounts you will pay. However, if you are reducing the final borrowing for the project, that will reduce the total amount of interest you will pay on the balance of the SRF loan, which may in turn reduce the sponsored project grant amount. IFA will need to clarify this for you upon finalizing the original loan amortization schedule. Best, Susanne Susanne Gerlach Director PFM Financial Advisors LLC gerlachs@pfm.com E-MAIL ( 515.724.5734 OFFICE 1 515.243.6994 FAX I pfm.com 801 Grand Avenue, Suite 3300 1 Des Moines, IA 50309 From:Josten.Robert@dorsey.com<Josten.Robert@dorsey.com> Sent: Wednesday, December 16, 2020 10:01 AM To: duane.pitcher@cityofames.org; Susanne Gerlach <GERLACHS@pfm.com> Cc: roger.wisecup@cityofames.org; diane.voss@cityofames.org; hammond.emily@dorsey.com Subject: RE: [EXTERNAL] SRF Loan Final Disbursements and Sponsored Project EXTERNAL EMAIL: Use care with links and attachments. While no Council action will be needed in order to close the original loan, Council will need to set date for and hold a hearing on the additional funds. I will ask my"SRF specialist" to check with IFA staff to find out the best way to put this together. Robert E.Josten. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DORSEY & WHITNEY LLP 801 Grand Suite 4100 Des Moines, IA 50309-8002 F: 515.283.1060 Cell: 515.556.8186 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CONFIDENTIAL COMMUNICATION E-mails from this firm normally contain confidential and privileged material,and are for the sole use of the intended recipient. Use or distribution by an unintended recipient is prohibited,and may be a violation of law. If you believe that you received this e-mail in error,please do not read this e-mail or any attached items. Please delete the e-mail and all attachments, 1 1. including any copies thereof,and inform the sender that you have deleted the e-mail,all attachments and any copies thereof Thank you. From: Pitcher, Duane <duane.pitcher@cityofames.org> Sent: Wednesday, December 16, 2020 9:20 AM To:Josten, Robert<Josten.Robe rt@dorsey.com>; Susanne Gerlach - Public Financial Management (gerlachs@pfm.com) <gerlachs@pfm.com> Cc: Wisecup, Roger<roger.wisecup@cityofames.org>;Voss, Diane<diane.voss@cityofames.org> Subject: [EXTERNAL] SRF Loan Final Disbursements and Sponsored Project Bob and Susanne, Questions on SRF action. In October 2018 we entered into a $5.7M SRF loan agreement for sanitary sewer improvements. We've finished the project and are ready to sign the certificate of final loan balance, it came in lower at $5,206,055.19. 1 assume we can proceed on this without additional council action, please confirm. We also have an amendment to the loan for a sponsored project in the amount of$375,000. What action will we need with council for the sponsored project amendment? Thanks, Duane Duane Pitcher, CPA, CPFO Director of Finance City of Ames 515 Clark Avenue P.O. Box 811 Ames, Iowa 50010 Phone (515) 239-5114 2