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Home My WebLink AboutA011 - Memo from Finance Director dated May 31, 2001 Memo Finance Administration Caring People Quality Programs Exceptional Service TO: Steve Schainker, City Manager �� I � FROM: OM: Duane Pitcher, Finance Director '�`�I JUN _ DATE: May 31 , 2001 � �`='" L�CLITY611-11 ^,it;cS,id��JA SUBJECT: General Obligation Bonds, Series 2001 I have attached the proposed schedule for the July 2001 G.O. bond issue for your review. c: Paul Wiegand, Director of Public Works Lynn Brennan, Public Works Administrative Assistant Diane Voss, City Clerk Sue Rybolt, Assistant Finance Director Carol Collings, Budget Officer PROPOSED TIME SCHEDULE CITY OF AMES, IOWA General Obligation Bonds, Series 2001 June 2001 July 2001 August 2001 5 M T W T F 5 5 M T W T F 5 5 M T W T F 5 1 2 1 2 3 4 5 6 7 1 2 3 4 3 4 5 6 7 8 9 8 9 10 11 12 13 14 5 6 Lf 8 9 10 11 10 11 [:1fl 13 14 15 16 15 16 17 18 19 20 21 12 13 14 15 16 17 18 17 18 19 20 21 22 23 22 23 24 25 26 27 28 19 20 21 22 23 24 25 24 25 26 27 28 29 30 29 30 31 26 27 28 29 30 31 Date Task Descriptian Responsibility May 15 Issue Planning 0 Preliminary Bond Sizing and Structure ED May 30 - June 6 Issue Planning 0 Time Line distributed ED • Bond sizing and structure ED June 5 - 26 Set Sale • Sale memo distributed ED • Presale resolutions and hearings BC d. June 12 - 27 Document Preparation • Prepare official statement ED • Prepare bond resolution BC • Review draft documents C, BC, ED June 19 - July 5 Request Rating Request rating from Moody's and 5 & P ED, C • Documents to Moody's and 5 & P ED • Receive ratings RA EVENSEN DODGE INC 371.0034 May 30, 2001 Page Two Date Task Description Responsibility June 26 - July 9 Market Bonds Print and distribute official statement ED • Notify wire services ED • Call potential bidders ED • Monitor market conditions ED • Prepare sale file ED July 10 Bond Sale Take bids and check for accuracy ED • Prepare sale analysis ED • Complete bond resolution BC • Adopt resolution awarding sale C July 10 Council Meeting • Council adopts Bond Resolution C, BC Public Hearing July 11 - 31 Closing Preparations • Prepare closing documents BC • Confirm closing date and funds transfer ED • Closing letter to all parties ED August 1 Closing Purchaser pays for the Bonds C, BC, ED Financing Team Members: C = City of Ames, Iowa BC = Dorsey & Whitney LLP (bond counsel) ED = Evensen Dodge, Inc. (financial advisor) RA = Moody's Investors Service and Standard and Poor's (rating agencies) EVENSEN DODGE INC 371.034 $10,080,000 General Obligation Bonds, Series 2001 City of Ames, Iowa Preliminary Schedule - 10 year SOURCES & USES Dated 08/01/2001 Delivered 08/01/2001 SOURCES OF FUNDS Par Amount of Bonds................................................. $10,080,000.00 TOTAL SOURCES..................................................... $10,080,000.00 USES OF FUNDS Estimated Underwriter's Discount (0.800%)............. 80,640.00 Estimated Costs of Issuance..................................... 30,000.00 Deposit to Project Construction Fund........................ 9,968,153.00 Contingency............................................................... 1,207.00 TOTALUSES............................................................. $10,080,000.00 Prepared by Evensen Dodge, Inc. File=CITY OF AMES.SF Financial Advisor $10,080,000 General Obligation Bonds, Series 2001 City of Ames, Iowa Preliminary Schedule - 10 year DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I FISCAL TOTAL 8/01/2001 - - - - 6/01/2002 915,000.00 2.850% 321,916.67 1,236,916.67 1,236,916.67 12/01/2002 - - 180,111.25 180,111.25 6/01/2003 880,000.00 3.200% 180,111.25 1,060,111.25 1,240,222.50 12/01/2003 - - 166,031.25 166,031.25 - 6/01/2004 905,000.00 3.450% 166,031.25 1,071,031.25 1,237,062.50 12/01/2004 - - 150,420.00 150,420.00 - 6/01/2005 940,000.00 3.650% 150,420.00 1,090,420.00 1,240,840.00 12/01/2005 - - 133,265.00 133,265.00 6/01/2006 970,000.00 3.800% 133,265.00 1,103,265.00 1,236,530.00 12/01/2006 - - 114,835.00 114,835.00 - 6/01/2007 1,010,000.00 3.950% 114,835.00 1,124,835.00 1,239,670.00 12/01/2007 - - 94,887.50 94,887.50 - 6/01/2008 1,050,000.00 4.100% 94,887.50 1,144,887.50 1,239,775.00 12/01/2008 - - 73,362.50 73,362.50 - 6/01/2009 1,090,000.00 4.200% 73,362.50 1,163,362.50 1,236,725.00 12/01/2009 - - 50,472.50 50,472.50 - 6/01/2010 1,135,000.00 4.300% 50,472.50 1,185,472.50 1,235,945.00 12/01/2010 - - 26,070.00 26,070.00 . - 6/01/2011 1,185,000.00 4.400% 26,070.00 1,211,070.00 1,237,140.00 Total 10,080,000.00 - 2,300,826.67 12,380,826.67 - YIELD STATISTICS Bond Year Dollars...................................................... $56,515.00 Average Life............................................................... 5.607 Years Average Coupon........................................................ 4.0711787% Net Interest Cost(NIC).............................................. 4.2138665% True Interest Cost(TIC)............................................. 4.2171148% Bond Yield for Arbitrage Purposes............................ 4.0515953% All Inclusive Cost(AIC).............................................. 4.2791824% IRS FORM 8038 Net Interest Cost........................................................ 4.0711787% Weighted Average Maturity....................................... 5.607 Years Prepared by Evensen Dodge, Inc. File=CITY OF AMES.SF Financial Advisor $10,080,000 General Obligation Bonds, Series 2001 City of Ames, Iowa Preliminary Schedule - 12 year SOURCES & USES Dated 08/01/2001 Delivered 08/01/2001 SOURCES OF FUNDS Par Amount of Bonds................................................. $10,080,000.00 TOTAL SOURCES..................................................... $10,080,000.00 USES OF FUNDS Estimated Underwriter's Discount (0.800%)............. 80,640.00 Estimated Costs of Issuance..................................... 30,000.00 Deposit to Project Construction Fund........................ 9,968,153.00 Contingency............................................................... 1,207.00 TOTALUSES............................................................. $10,080,000.00 Prepared by Evensen Dodge, Inc. File=CITY OF AMES.SF Financial Advisor $10,080,000 General Obligation Bonds, Series 2001 City of Ames, Iowa Preliminary Schedule - 12 year DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I FISCAL TOTAL 8/01/2001 - - - - - 6/01/2002 745,000.00 2.850% 335,602.08 1,080,602.08 1,080,602.08 12/01/2002 - - 190,745.00 190,745.00 - 6/01/2003 700,000.00 3.200% 190,745.00 890,745.00 1,081,490.00 12/01/2003 - - 179,545.00 179,545.00 6/01/2004 725,000.00 3.450% 179,545.00 904,545.00 1,084,090.00 12/01/2004 - - 167,038.75 167,038.75 - 6/01/2005 750,000.00 3.650% 167,038.75 917,038.75 1,084,077.50 12/01/2005 - - 153,351.25 153,351.25 - 6/01/2006 775,000.00 3.800% 153,351.25 928,351.25 1,081,702.50 12/01/2006 - - 138,626.25 138,626.25 - 6/01/2007 805,000.00 3.950% 138,626.25 943,626.25 1,082,252.50 12/01/2007 - - 122,727.50 122,727.50 - 6/01/2008 835,000.00 4.100% 122,727.50 957,727.50 1,080,455.00 12/01/2008 - - 105,610.00 105,610.00 - 6/01/2009 870,000.00 4.200% 105,610.00 975,610.00 1,081,220.00 12/01/2009 - - 87,340.00 87,340.00 - 6/01/2010 905,000.00 4.300% 87,340.00 992,340.00 1,079,680.00 12/01/2010 - - 67,882.50 67,882.50 - 6/01/2011 945,000.00 4.400% 67,882.50 1,012,882.50 1,080,765.00 12/01/2011 - - 47,092.50 47,092.50 - 6/01/2012 990,000.00 4.600% 47,092.50 1,037,092.50 1,084,185.00 12/01/2012 - - 24,322.50 24,322.50 - 6/01/2013 1,035,000.00 4.700% 24,322.50 1,059,322.50 1,083,645.00 Total 10,080,000.00 - 2,904,164.58 12,984,164.58 - YIELD STATISTICS Bond Year Dollars................................................ $68,055.00 AverageLife......................................................... 6.751 Years Average Coupon.................................................. 4.2673787% Net Interest Cost (NIC)......................................... 4.3858711% True Interest Cost (TIC)....................................... 4.3834253% Bond Yield for Arbitrage Purposes....................... 4.2413052% All Inclusive Cost (AIC)......................................... 4.4367201% IRS FORM 8038 Net Interest Cost.................................................. 4.2673787% Weighted Average Maturity.................................. 6.751 Years Prepared by Evensen Dodge, Inc. File=CITY OF AMES.SF Financial Advisor