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Home My WebLink AboutDocuments Presented at the Meeting o City . A . Finance DDepartment. Memo To: Finance Committee From: Shelley Coleman, Finance Director CC: Mayor Lewis Date: 2/16/2010 Re: April Bond Issue Attached is the tentative SOE (Schedule of Events) for an upcoming bond issuance. Finance is currently working on the official statement and bond ordinances and contemplate per the SOE to price (sell) bonds on the 19'" of April and close approximately on the 301" of April, at which time the proceeds will be made available for certain uses and projects. There are 5 issues contemplated to provide funding for 1) purchase the Annex space currently being leased by the City in the amount of $22,680,000; 2) fund the Local Revitalization Funding component of the Promenade and open spaces in the amount of $6,000,000; and 3) refund the 1998 GO bonds issued for the library in the amount of $2,225,000. Total tentative bond issuance is $30,950,000. The refunding issue, under current market conditions, will save the city approximately $124,128 NPV (Net Present Value), the cash flow savings over the remaining 9 payments is $142,000. The annual average debt payment will be reduced from an average of $304,175 to $288,390. This is an annual savings of approximately $15,785 to the General Fund. The five bonds issues consist of LTGO's (Limited General Obligation) and BAB's (Build America Bonds). The refunding is straight LTGO financing and the Annex and the Promenade project are a mixture of LTGO's and BAB's. Attached are the net debt schedules. The annual net debt payment for the Annex and the Promenade is approximately $1.33 million and $390 thousand respectively. The cost of issuance for all five issues is approximately $307,000 or 1%. 9 Page 1 1420 Pi(tllAvenue SuiI e 4300 Sentde, Washingron 98L01 mmmmSNW City of Auburn, Washington Limited Tax General Obligation & Refunding Bonds, 2010A Limited Tax General Obligation Bonds, 2010B (Taxable Build America Bonds) Limited Tax General Obligation Bonds, 2010C Limited Tax General Obligation Bonds, 2010D (Taxable Build America Bonds) Schedule of Events (As of February 16, 2010) L.. Yv ' y t S Y `i. Y 3 ~-.x.. w-xCh'.~rv 3~'.I~S.+~'T ##'~i~,t~t'F~.}~Ya3AgaCljk~,.~11'N '~~~%tY~•% ~ :IP StafE City Staff CounciL City Council IMeets 1" mid 3,d Moiidny nk 7:30 PM] SNW: Seattle-NorthwestSecuritiesCorporation (Underwriter) BC: Foster Pepper PLLC (Bond Counsel) Date Event Participants Completed Send data requirements to City for preparation of SNW Preliminary Official Statement ("POS") Completed Term sheet to Bond Counscl SNW Completed Distribute draft Bond Ordinance BC Completed Complete data requirements for POS Staff Completed Distribute Ist draft POS SNW Completed Comments due on Ist POS and Bond Ordinance Staff, SNW, BC Peb. 77 Distribute second draEt POS SNW Mardi 3 Comments due on second draft POS Staff, SNW, BC March 10 I7istribute third draft POS SNW March 15 Mail information to Moody's and AGC/FSA SNW March 22 Comments due on third draft POS Staff, SN1N, BC April 2 Rating and insurance bid due April 5 Mail POS to potential investors SNW Aprill6 Review market conditions Staff, SNW Apri119 Bond Pricing Staff, SNW April 19 Pass Bond Ordinance (regular meeting) Council, Staff, SNW, BC April 30 Bond Closing and delivery of bond proceeds Staff, SNW, BC SOURC@S AND USGS OF FUNDS Citv of Aubum LTCO fi RcC Bonds. 2010,4/LFGO [3onds. 2010B (BABs)ILTGO Bonds. 2010C/LTGO 6onds. 2010D (BABs) PRBLIA41NARl' NUMBERS Datcd Datr 03/19/3010 Ddfven Dmc 03i292010 ~ I:IGO 13onds. 11 Ci0 Bunds. '-010iA I l(iU f3ond.. ?UIOC I lCiCl fiondc. IJCiU Rcliinding I':in-Hncinpt' 2010B I'nx-GxempU ?OIOU Rnnd..2010.A tiuurers: Annexl (BrAIWAnncx) Lltf) (RAIWLR1') Utel:9dl lntal f3ond Proceeds: Par Ainuunt 2,21 J.000 00 20,465.00000 795,000.00 5.2_54U00.00 2.225000.00 30)950p00 00 Preiniwn 51474.00 - I8,453.95 - 71,333d0 I4 1.26631 3266J74.00 20365000_00 R13,458-95 5,250,000.00 2.296.733A0 31991166.35 1:1(lf,) Runds. 1,160 13unds. . 20 I0i1 I:fGORonJs. 3010( I:(GUliond, I:fGllltcliinding (Iur-I'xcmpV 201013 (lux-lixanpti ?UIOU Honds.2010A Uscs Anncnl (13At3s;nnncx) I RFI (BARS/LI1P) (Ref 98) 'linal Projmt FunA Uepusil.: Projir.l I'und - Sm'ia. A(Amica ) 2.240_ 151.19 20110.848.31 - - ' 22S00.000 .00 P¢ojccll'und-SciicsA(I.lil') 307.24 1.52 5_102.75548 6.000,000-00 2.1 -49.151.19 20.250.84881 80721152 i.192.758.43 - 28.504000-00 Rcfunding Gscmw Dcposils Cash Deposit - - - - I.87 1.87 SI GS f'ushases 2,273,665.00 2,273,665.00 - - - - 2,273,666.87 2,273.666.87 Uclivery Date Gxpenses: Cuslnll:suance 4.032.81 37.260-18 1447.43 9.558.56 4.401.02 56.700.00 Undciuiilcr's Discoum 13,290.00 173 952.50 4.770.00 44,625.00 13350.00 249,937.50 17.322.81 211.212.68 6217A3 54.183.56 17,751.02 306,687.50 Othcr Usu o( Punds: Additional Pmcecds - 2,938,51 - 3.057.96 4.915.51 10,911 .98 2166p74.00 20465,000.00 813A58.95 5,250.000.00 2,296,333.40 31.091,26635 Feb 16, 2010 12:12 pm Prepared by Seattle-Northwest Securities Corp. (k:\analysis\dbc\cityWubum2010L'iG0) Page I NET DEBT SERVICE City of Aubum LTGO & Ref. Bonds, 2010A/LTGO Bonds, 2010B (BABs)/LTGO Bonds, 2010C/LTGO Bonds, 2010D (BABs) PRELIMINARY NUMBERS Period Total Net Ending Debt Service 35% Subsidy Debt Service Annex LRF Refunding 12/1l2010 1,819,978.91 (371,033.16) 1,448,945.75 892,282.52 261,15379 295,509.44 12/1/2011 2,559,850.46 (551,950.16) 2,007,900.30 1,332,543.42 387,656.88 287,700.00 12/1/2012 2,557,750.46 (551,950.16) 2,005,800.30 1,328,243.42 389,356.88 288,200.00 12/1/2013 2,555,350.46 (551,950.16) 2,003,400.30 1,328,843.42 385,956.88 288,600.00 12/1/2014 2,558,800.46 (551,950.16) 2,006,850.30 1,329,443.42 390,856.88 286,550.00 12/1/2015 2,556,350.46 (551,950.16) 2,004,400.30 1,329,593.42 390,456.88 284,350.00 12/1/2016 2,557,208.22 (542,572.88) 2,014,635.34 1,331,814.10 390,821.24 292,000.00 12/1/2017 2,541,199.06 (531,859.66) 2,009,339.40 1,332,205.18 390,53422 286,600.00 12/1/2018 2,526,928.70 (520,075.06) 2,006,853.64 1,331,125.86 389,727.78 286,000.00 12/1/2019 2,225,043.56 (507,515.24) 1,717,528.32 1,328,979.44 388,548.88 12/1/2020 2,212,432.82 (494,351.48) 1,718,08L34 1,330,999.06 387,082.28 12/1/2021 2,196,976.82 (476,691.88) 1,720,284.94 1,331,811]2 388,47322 12/1/2022 2,179,313.36 (455,259.68) 1,721,053.68 1,331,599.48 389,45420 12/1/2023 2,159,442.46 (439,054.86) 1,720,387.60 1,330,362.36 390,02524 12/1/2024 2,137,364.12 (419,077.44) 1,718,286.68 1,328,100.36 390,186.32 12/1/2025 2,118,078.32 (395,327.42) 1,719,750.90 1,329,813.46 389,937.44 12/1/2026 2,096,269.72 (376,694.40) 1,719,575.32 1,330,296.70 389,278.62 12/1I2027 2,071,938.32 (354,178.40) 1,717,759.92 1,329,550.08 388,209.84 12/1/2028 2,045,084.12 (330,779.42) 1,714,304.70 1,327,573.60 386,731.10 12/1/2029 2,025,707.12 (306,497.48) 1,719,209.64 1,329,367.24 389,842.40 12/1/2030 1,998,176.60 (281,111.82) 1,717,064.78 1,329,726.02 387,338.76 12/1/2031 1,972,807.96 (254,732.80) 1,718,075.16 1,328,649.98 389,425.18 12/1/2032 1,946,795.82 (226,378.52) 1,720,417.30 1,329,949.62 390,467.68 12/1/2033 1,912,204.80 (196,771.68) 1,715,433.12 1,329,557.40 385,875.72 12/1/2034 1,884,360.32 (166,026.10) 1,718,334.22 1,327,47140 390,860.82 12/1/2035 1,462,611.60 (133,914.06) 1,328,697.54 1,328,697.54 12/1/2036 1,437,336.00 (109,317.60) 1,328,018.40 1,328,018.40 12/1/2037 1,414, 132.26 (83,696.28) 1,330,435.98 1,330,435.98 12/1/2038 1,387,675.00 (56,936.26) 1,330,73874 1,330,738.74 12/1/2039 1,357,964.26 (29,037.48) 1,328,926.78 1,328,926.78 62,475,132.55 (10,824,641.86) 51,650,490.69 39,456,722.12 9,598,259.13 2,595,509.44 BOND DEBT SERVICE City of Aubum Proposed LTGO Refunding Bonds, 2010A (Ref. 98) PRELIMINARY NUMBERS Dated Date 3/29/2010 Delivery Date 3/29/2010 1998 GO Bond , Annual Current Annual Period Ending Principal Coupon Interest Debt Service Debi Service Debt Service Savings 6/1/2010 - - 11,659.44 11,659.44 12/1/2010 250,000 2°/a 33,850.00 283,850.00 295,509.44 304,240.00 (8,730.56) 6/1/2011 - - 31,350.00 31,350.00 12l1/2011 225,000 2% 31,350.00 256,350.00 287,700.00 305,840.00 (18,140.00) 6/1 /2012 - - 29,100.00 29,100.00 12/1/2012 230,000 2% 29,100.00 259,100.00 288,200.00 306,820.00 (18,620.00) 6/1/2013 - - 26,800.00 26,800.00 12/1/2013 235.000 3% 26,800.00 261,800.00 288,600.00 302,390.00 (13,790.00) 611/2014 - - 23,275.00 23,275.00 1211/2014 240,000 3% 23,275.00 263,275.00 286,550.00 302,520.00 (15,970.00) 6/1/2015 - - 19,675.00 19,675.00 12l1/2015 245,000 3% 19,675.00 264,675.00 284,350.00 302,230.00 (17,880.00) 6/1/2016 - - 16,000.00 16,000.00 . 12/1/2016 260,000 4% 16,000.00 276,000.00 292,000.00 306,265.00 (14,265.00) 6/1/2017 - - 10,800.00 10,800.00 12/1/2017 265,000 4% 10,800.00 275,800.00 286,600.00 304,655.00 (18,055.00) 6/1/2018 - - 5,500.00 5,500.00 1211/2018 275,000 4% 5,500.00 280,500.00 286,000.00 302,615.00 (16,615.00) 2,225,000 370,509.44 2,595,509.44 2,595,509.44 2,737,575.00 (142,065.56)