HomeMy WebLinkAboutA003 - Email to Hospital from Finance Director dated September 17, 2019 f
Re: Up Coming Bond Issue
Duane R Pitcher to: Gary Botine 09/17/2019 04:38 PM
Cc: Steve Schainker, Diane R Voss
Gary,
I spoke to Bob Josten and Kris Kuhn at Dorsey law today about the MGMC bond issue. Were
able to resolve the issues related to continuing disclosure for the COA. Dorsey is preparing
documents for the City council 9/24 agenda. I understand you are following the schedule
below.
September 24, 2019 - City gives preliminary approval and sets Public Hearing for October 8, 2019
September 23, 2019 - MGMC Board gives final approval to proceed with private debt placement
l ' lOctober 8, 2019 - City holds Public Hearing and gives final approval
October 31, 2019 - Estimated closing of the transaction
We'll need information to complete a council action form (prior action attached) and
information on the financials related to the bonds, the documents you are providing to your
board on Monday should do. Need to have wrapped up by Thursday to get to Council.
Give me a call if you have questions. Otherwise, e-mail me as soon as you can and I'll
prepare documents for council.
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
-----Duane R Pitcher/COA wrote: -----
To: "Gary Botine" <botine(c�mgmc.com>
From: Duane R Pitcher/COA
Date: 09/06/2019 09:12AM
Cc: Steve Schainker/COA@COA, Mark Lambert/COA@COA, Tina Stanley/COA@COA, Brian
Phillips/COA@COA, Diane R Voss/COA@COA
Subject: Up Coming Bond Issue
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.
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 MGMC Setting Date of Hearing APRIL 2016-4-12-16.doc