HomeMy WebLinkAboutA002 - Email to Hospital from Finance Director dated September 6, 2019 Page 1 of 2
Up Coming Bond Issue Q �%
Duane R Pitcher
to:
Gary Botine
09/06/2019 09:12 AM
Cc:
Steve Schainker, Mark Lambert, Tina Stanley, Brian Phillips, Diane R Voss
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From: Duane R Pitcher/COA Sort List...
To: "Gary Botine" <botine@mgmc.com>
Cc: Steve Schainker/COA@COA, Mark Lambert/COA@COA, Tina Stanley/COA@COA, Brian
Phillips/COA@COA, Diane R Voss/COA@COA
Gary,
I have reviewed your upcoming bond issue along with our municipal financial advisor PFM, and in
our opinion your upcoming bond issue is a material financial obligation and per MSRB rules requires
disclosure on the Electronic Municipal Market Access (EMMA) by the City. With our 2019A GO
Bonds (scheduled to close next Thursday, September 12), the City is required to post material
event notices within 10 business days after the incurrence of material financial obligations. We
work with PFM to post most of the disclosures to EMMA.
Information we need from MGMC before we are able to create and publish the City's EMMA
material event notice:
Who will be doing your filing on EMMA and when? We would like to reference the MGMC
filing in our notice so we will need to coordinate.
Our filing must include key terms of the debt including:
o par amount of the debt
o dated date of the debt
o anticipated closing date
o payment schedule
o security
o optional redemption provisions
o Purchaser of the debt
We'll need the above information to file our notice. The authorizing resolution for the hospital loan
should have most of these key terms included. Piper Jaffray may have this already in process but
they may not be aware of our upcoming GO Bond closing.
Prior to approving proceeding with the debt issuance process, Council needs to see an analysis of
the issuance, i.e. debt coverage, financial ratios, etc. I see all that covered in the "Financing
Options Update" you provided to Steve and all look strong. However, at this point I think you have
selected an option and are asking council to act on a specific option so similar information should
be provided focused only on the debt issuance you are asking council to consider.
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It would have been ideal if we could have a least added a footnote about this MGMC new issue in
the City's OS for our recent GO Bond Issue. I can add to my bond issue checklist to check with you
on any debt plans, but both for coordinating with our shared disclosure requirements and including
on the Council agenda my preference is that you copy Steve and I as early as possible and keep us
updated on you plans for debt issuance. Our council adopted a comprehensive debt policy in June
2017, that include post issuance disclosure compliance. Steve will not likely make a
recommendation for approval to council without some level of assurance of compliance with the
council debt policy. There may be a need to push back this process until the second meeting in
September.
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
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