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HomeMy WebLinkAboutA012 - Email from Finance dated April 28, 2020 Diane Voss From: Duane Pitcher Sent: Tuesday, April 28, 2020 3:29 PM To: Steve Schainker Cc: Diane Voss; Tina Stanley; Roger Wisecup; Shannon Andersen Subject: Timing of Decisions for Summer 2020 GO Bond Issue Steve, We held a conference call with the Dorsey and PFIVI on decision dates for the upcoming bond issue. The majority of the projects are on track, there are a couple that are still uncertain. To proceed with the bond issue with an August sale and September settlement we will need decisions made on what will be in or out by the end of July. A list of the projects and further explanation is below. Possible Addition for Sewer Abated Bonds for East Industrial The additional $2.5M to $2.75M or possibly more qualifies as essential corporate purpose and does not require a levy of taxes to repay since it will be abated. We will need notice and public hearing prior to decision to include in the issue, but once this is done we can decide either in or out of the issue (and the amount) by the end of July. If we are thinking about proceeding we should hold the hearing at the higher end of estimates and we can reduce if/when we know more. East 13th Street Sanitary Sewer Extension (TIF Abated) 2,500,000 This issue was included in our budget process so the public hearing has already been held. We can make the decision by the end of July, and if the Urban Renewal Area and TIF ordinance are not yet done we will include in our bond documents the council's intent to repay with TIF. We will then need to pass the Urban renewal area and TIF ordinance no later than the first meeting in November so that we can certify the TIF debt by the December 1 deadline. If we do include and Council does not establish the Urban Renewal Area and TIF ordinance the bonds will be repaid from the debt service fund. We can use the proceeds to reduce a 2021 GO bond issue and we will pay the first year interest from the debt service fund since we have not yet levied taxes for this issue. Give me a call if you have any questions. I see the East Industrial is going to Council tonight. I'll be signed into the meeting. Fire Apparatus Replacement $1,375,000 Cherry Avenue Extension 510,000 Arterial Street Pavement Improvements 900,000 Collector Street Pavement Improvements 1,400,000 Concrete Pavement Improvements 2,300,000 Asphalt Street Pavement Improvements 1,400,000 CyRide Route Pavement Improvements 600,000 Seal Coat Pavement Improvements 750,000 U.S. Highway 69 Improvements 230,000 South Dayton Improvements 700,000 Intelligent Transportation System 141,900 Bridge Rehabilitation Program 375,000 Subtotal Tax Supported Bonds $10,681,900 East 13th Street Sanitary Sewer Extension (TIF Abated) 2,500,000 Subtotal TIF Abated Bonds $2,500,000 Duane 1 t L 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