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HomeMy WebLinkAboutA001 - Email correspondence with Finance and Bond Counsel during January and February, 2021 Voss, Diane From: Pitcher, Duane Sent: Wednesday, January 20, 2021 11:07 PM To: Josten.Robert@dorsey.com; gerlachs@pfm.com Cc: Voss, Diane Subject: RE: [EXTERNAL] GO Bond Issue for FY 21/22 Thanks Bob. I looked again at our council action form—we notify council of the pre-levy with the hearing notice then adopt on the hearing date along with the budget. Duane From:Josten.Robert@dorsey.com <Josten.Robert@dorsey.com> Sent: Wednesday,January 20, 2021 5:50 PM To: Pitcher, Duane <duane.pitcher@cityofames.org>;gerlachs@pfm.com Subject: RE: [EXTERNAL] GO Bond Issue for FY 21/22 [External Email] Duane, the Council needs to hold the hearing on the bonds before it can approve the prelevy resolution. Therefore, the prelevy resolution could not be adopted until March 9. 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, 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,January 20, 2021 5:33 PM To:Josten, Robert<Josten.Robert@dorsey.com>; Susanne Gerlach - Public Financial Management (gerlachs@pfm.com) <gerlachs@pfm.com> Cc: Snyder,Jessra <iessra.snyder@citvofames.org>; Masteller, Nancy<nancy.masteller@cityofames.org>; Crabbs, Amy <amy.crabbs@cityofames.org>; Wisecup, Roger<roger.wisecup@citvofames.org>; Voss, Diane <diane.voss@citvofames.org>; Andersen, Shannon <shannon.andersen@citvofames.org> Subject: [EXTERNAL] GO Bond Issue for FY 21/22 Bob and Susanne, We're ready to proceed with the preparation for the GO bond issue for summer 21. Below are the projects to be included. The downtown plaza is an improvement to an existing parking lot converting to a plaza,the intelligent transportation is related to traffic control. Our CIP is posted at 1 htt s: www.cityofames.org/home/showpublisheddocument?id=59864 you can check there for more details on any of the projects or give me a call. Susanne, can you review for sizing and the addition of potential refunding opportunities to include with the hearing. We would like to set the pre-levy amount at$1,045,393, due to some abatement of bonds. Dates for council action are as follows: 2/23/21 set date of hearing and pre-levy resolution—this is the date of our maximum levy hearing. Hearing date will be 3/9/21 3/9/21 hold hearing and approve bonds—this is the date we adopt the budget. The TIF bonds uses qualify as essential corporate purpose so I believe we can include in this hearing. Give me a call if you have any questions. Thanks, Duane 2021/2022 C!P G.O. ISSUE Arterial Street Pavement 800,000 Improvements Collector Street Pavement 2,400,000 Improvements Concrete Pavement Improvements 3,500,000 Asphalt Street Pavement 2,500,000 Improvements Seal Coat Street Pavement 750,000 Improvements Downtown Street Improvements 245,000 Intelligent i r .nsportation System 160,400 Downtown Plaza 700,000 Tax Supp-::_a Bonds $ 11,055,400 East 13th Street Sewer Extension TIF $ 2,700,000 Abated Bonds $ 2,700,000 Total G.O. t'�nds $ 13,755,400 Duane Pitci, r, CPA, CPFO Director o` , nance City of Ames 515 Clar!� ; —nue P.O. Box 2 Voss, Diane From: Pitcher, Duane Sent: Wednesday, January 20, 2021 2:53 PM To: Voss, Diane Cc: Masteller, Nancy; Crabbs, Amy; Andersen, Shannon; Lambert, Mark Subject: Bond Issues Diane, Nancy and Amy met with you on dates for budget action, but I did not get the bond action to Nancy. It does not look like we'll be making changes to our GO bond issue so I'll start the process with PFM and Dorsey with d es as follows: 2/23 PrerLevy Resolution and set public hearing. 3/9 Hold hearing and approve bonds per budget. ILJ ' send information to Dorsey to prepare the proceedings. CAF's will come with the meeting dates. 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 1 Voss, Diane From: Susanne Gerlach <GERLACHS@pfm.com> Sent: Thursday, January 21, 2021 6:37 AM To: Josten.Robert@dorsey.com; Pitcher, Duane Cc: Voss, Diane Subject: RE: [EXTERNAL] GO Bond Issue for FY 21122 [External Email] Good morning: I will work on structuring the proposed 2021 GO bonds and send a preliminary structure for review next week. Best, Susanne Susanne Gerlach Director PFM Financial Advisors LLC gerlachs@pfm.com E-MAIL 1 515.724.5734 OFFICE 1 515.243.6994 FAX ( pfm.com 801 Grand Avenue, Suite 3300 1 Des Moines, IA 50309 From:Josten.Robert@dorsey.com <Josten.Robert@dorsey.com> Sent: Wednesday,January 20, 2021 11:08 PM To: du �nc.pi',her@cityofames.org; Susanne Gerlach<GERLACHS@pfm.com> Cc: diane.voss@cityofames.org Subject: RE: [EXTERNAL] GO Bond Issue for FY 21/22 EXTERNAL EMAIL: Use care with links and attachments. Thanks. I appreciate the clarification. Robert E.Josten. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . DOE' ' - Y & 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, including any copies thereof,and inform the sender that you have deleted the e-mail,all attachments and any copies thereof Thank you. From: litcher, Duane<duane.pitcher@cityofames.org> Sent: Wednesday,January 20, 2021 11:07 PM To:Josten, Robert<Josten.Robert@dorsey.com>;gerlachs@pfm.com Cc:Voss, Diane <diane.voss@cityofames.org> Subject: RE: [EXTERNAL] GO Bond Issue for FY 21/22 1 Voss, Diane From: Pitcher, Duane Sent: Thursday, January 21, 2021 4:12 PM To: Schainker, Steve Cc: Voss, Diane; Wisecup, Roger; Abraham, Keith; Andersen, Shannon Subject: Bond Issue for Downtown Plaza Steve, We putting together the bond proceedings required for the budget approval. As a reminder, the Downtown Plaza is NOT eligible under essential corporate purpose, but is eligible for general corporate purpose. We covered this when we setup the CIP a year ago with $200,000 from LOT, then $700,000 in GO bonds in both FY 21/22 and FY 22/23 to remain within the issue limit for general corporate purpose bonds without a referendum. These bonds will be subject to a reverse referendum and we will be limited to the $700,000 GO amount each year. There will be some additional proceedings when we take to council, but we've done before and it is fairly seamless. For the 22/23 bonds, if we receive the Reinvestment Act funds and establish a URA we can issue the bonds under essential purposes and will not be subject to the reverse referendum, require additional proceeding, and could issue an additional amount of bonds or re-direct other bond funds of the council desires additional spending on the plaza. This will all be covered on the bond CAF's when we get to that point in the process. 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 i Voss, Diane From: Susanne Gerlach <GERLACHS@pfm.com> Sent: Monday, February 1, 2021 5:12 PM To: Pitcher, Duane; Robert E.Josten - Dorsey &Whitney LLP oosten.robert@dorsey.com) Cc: Snyder, Jessra; Masteller, Nancy; Crabbs, Amy; Wisecup, Roger; Voss, Diane; Andersen, Shannon;Jennifer Smith Subject: RE: GO Bond Issue for FY 21/22 [External Email) Hi Duane: I would recommend the following not-to-exceed amounts: For street&traffic improvements: $11,030,000 For the Downtown Plaza: $740,000 For East 131h Street sewer ext (TIF): $2,875,000 For current refunding 2013: $11,760,000 Total NTE for Proposed 2021A: $26,405,000 Best, Susanne Susanne Gerlach Director PFM Financial Advisors LLC Rerlachs@pfm.com E-MAIL 1 515.724.5734 OFFICE 1 515.243.6994 FAX pfm.com 801 Grand Avenue, Suite 3300 1 Des Moines, IA 50309 From: Pitcher, Duane<duane.pitcher@cityofames.org> Sent: Monday, February 1, 2021 3:42 PM To: Susanne Gerlach <GERLACHS@pfm.com>; Robert E.Josten - Dorsey&Whitney LLP (josten.robert@dorsey.com) <josten.robert@dorsey.com> Cc: Snyder,Jessra <jessra.snyder@cityofames.org>; Masteller, Nancy<nancy.masteller@cityofames.org>; Crabbs, Amy <amy.crabbs@cityofames.org>; Wisecup, Roger<roger.wisecup@cityofames.org>; Voss, Diane <diane.voss@cityofames.org>; Andersen, Shannon <shannon.andersen@cityofames.org>;Jennifer Smith <SMITHJE@pfm.com> Subject: RE: GO Bond Issue for FY 21/22 EXTERNAL EMAIL: Use care with links and attachments. Susanne, Good news on the refi. We're preparing the council action forms and will complete once we receive the NTE amounts. Thanks, 1 i 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 From:Susanne Gerlach <GERLACHS@pfm.com> Sent: Monday, February 1, 2021 11:19 AM To: Pitcher, Duane <duane.pitcher@cityofames.org>; Robert E.Josten - Dorsey&Whitney LLP (iosten.robert@dorsey.com) <iosten.robert@dorsey.com> Cc: Snyder,Jessra <iessra.snyder@citvofames.org>; Masteller, Nancy<nancy.masteller@citvofames.org>; Crabbs, Amy <amy.crabbs@cityofames.org>; Wisecup, Roger<roger.wisecup@citvofames.org>; Voss, Diane <diane.voss@citvofames.org>; Andersen, Shannon <shannon.andersen@citvofames.org>;Jennifer Smith <SMITHJE@pfm.com> Subject: RE: GO Bond Issue for FY 21/22 [External Email] Good morning: Attached is the proposed debt service structure for the City of Ames issuance of GO Corporate Purpose and Refunding Bonds, Series 2021A. Please note this includes the following projects: • $11,055,400 of CIP projects paid by taxes o FY 2021-22 principal and interest in the amount of$1,049,704 to match within $5,000 of the pre-levy amount • $2,700,000 of CIP projects paid by TIF increment o $0 principal in June 1, 2022 since the City did not certify TIF increment last December 2020 • $11,055,OCO for the current refunding of the Series 2013 GO Bonds (callable 06-01-2021) o PFM estimates current on market savings of$1,165,742 or 10.5% net present value savings o The attached pre-sale analysis includes 50 bps of timing cushion that still shows at least$864,201 or 7.8? net present value savings even if rates go up before the City prices on August 10. The transaction timeline included is as follows: July 27: Approve POS and set sale date for August 10 August 10: Price & award the bonds and Authorize issuance proceedings ALI;ust 25: Close/ Redeem Series 2013 Bonds Please let me know if I should make any changes or if we are ok to proceed as proposed. I will provic!e Bob wi.h the not-to-exceed amounts necessary for the public hearings once the City confirms. Best, Susanne 2 Susanne Gerlach Director PFM Financial Advisors LLC gerlachs@_pfm.com E-MAIL 1 515.724.5734 OFFICE 1 515.243.6994 FAX I pfm.com 801 Grand Avenue, Suite 3300 1 Des Moines, IA 50309 From: Pitcher, Duane<duane.pitcher@cityofames.org> Sent: Wednesday,January 20, 2021 5:33 PM To: Robert E.Josten - Dorsey & Whitney LLP (josten.robert@dorsey.com) <iosten.robe rt@dorsey.com>; Susanne Gerlach <GERLACHS@pfm.com> Cc: Snyder,Jessra <jessra.snyder@cityofames.org>; Masteller, Nancy<nancy.masteller@cityofames.org>; Crabbs, Amy <amy.crabbs@city mes.org>; Wisecup, Roger<roger.wisecup@cityofames.org>; Voss, Diane <diane.voss@cityo nes.org>; Andersen, Shannon <shannon.andersen@cityofames.org> Subject: GO Bond I,,,,e for FY 21/22 EXTERNAL EMAIL: Use care with links and attachments. Bob and Susanne, We're ready to proceed with the preparation for the GO bond issue for summer 21. Below are the projects to be included. The dowr. .)wn plaza is an improvement to an existing parking lot converting to a plaza, the intelligent transportation is re' :ed to traffic control. Our CIP is posted at https: w. r `, es.org/hor!: ;'showpublisheddocument?id=59864 you can check there for more details on any of the projects or give me a call. Susanne, can you review for sizing and the addition of potential refunding opportunities to include with the hearing. We would like to set the pre-levy amount at$1,045,393, due to some abatement of bonds. Dates for council act' )n are as fol!ows: 2/23/21 set date of ',caring and pr e-levy resolution—this is the date of our maximum levy hearing. Hearing date will be 3/9/21 3/9/21 hold hearing and approve bonds—this is the date we adopt the budget. The TIF bonds uses qualify as essential corporate purpose so I believe we can include in this hearing. Give me a call if you ' ,-ive any qLl­tions. Thanks, Duane 2021/202 2 CIP G.C. ISSUE Arterial Street Pavement 800,000 Improvements Collector Street Pa\,ement 2,400,000 Improvements Concrete Pavement Improvements 3,500,000 3 Asphalt Street Pavement 2,500,000 Improvements Seal Coat Street Pavement 750,000 Improvements Downtown Street Improvements 245,000 Intelligent Transportation System 160,400 Downtown Plaza 700,000 Tax Supported Bonds $ 11,055,400 East 13th Street Sewer Extension TIF $ 2,700,000 Abated b<,nds $ 2,700,000 Total G.O. Boi :':s $ 13,755,400 Duane Pitcher, CPA, CPFO Director c` Finance City of Ames 515 Clark Avenue P.O. Box 11 Ames, Iowa 50010 Phone (515) 239-5114 4 Voss, Diane From: Andersen, Shannon Sent: Wednesday, February 3, 2021 4:50 PM To: Voss, Diane Subject: CAF: Public Hearings/Notice of Intent GO Bonds Diane,the following CAF has been added to the February 23'd folder on the T drive: PUBLIC HEARINGS AND NOTICE OF INTENT TO ISSUE $13,905,000 ESSENTIAL CORPORATE PURPOSE GENERAL OBLIGATION BONDS, $11,760,000 GENERAL OBLIGATION REFUNDING BONDS, AND $700,000 GENERAL CORPORATE PURPOSE GENERAL OBLIGATION BONDS, AND ASSOCIATED TAX LEVY FOR DEBT SERVICE Thank you, Shannon Shannon Andersen Secretary/ Finance/Admin 515.239.5113 main shannon.andersen@cityofames.org JCity Hall, 515 Clark Avenue I Ames, IA 50010 www.CityofAmes.org N Caring People N Quality Programs N Exceptional Service N 1