Loading...
9.b 2 Bond Issue SummaryPage 1 City of Scandia, Minnesota $4,400,000 General Obligation Street Reconstruction Bonds, Series 2018A Bond Issue Summary February 20, 2018 PURPOSE:Proceeds from the Bonds will be used to finance street reconstruction projects including reclaiming existing streets, culvert replacement (as needed), minor ditching and guard rail replacement and to pay costs associated with the issuance of the Bonds. The Bonds have been sized based on engineer estimates. FINANCE PLAN:The Bonds will be issued pursuant to the authority of Minnesota Statutes, Section 475.58, Subdivision 3b. The Bonds have been structured to result in relatively level annual debt service payments over 15 years and will be payable from property taxes. The structure includes a City contribution of approximately $2,105,000 of cash on hand to cover a portion of the construction costs. Preliminary Terms: A rating will be requested from Standard and Poor’s. Bonds maturing on and after December 15, 2026 will be subject to redemption on December 15, 2025 and any day thereafter at a price of par plus accrued interest Estimated Award Date: Wednesday, May 22, 2018 Estimated Closing Date: Tuesday, June 19, 2018 Preliminary on 02/20/2018 Par Amount $4,400,000 Average Interest Rate 3.23% True Interest Cost (TIC) 3.37% Page 2 EXHIBIT A – SOURCES AND USES Sources Of Funds Par Amount of Bonds $4,400,000.00 Planned Issuer Equity Contribution 2,105,000.00 Total Sources $6,505,000.00 Uses Of Funds Total Underwriter's Discount (1.250%)55,000.00 Costs of Issuance 23,500.00 Deposit to Project Construction Fund 6,425,650.00 Rounding Amount 850.00 Total Uses $6,505,000.00 Page 3 EXHIBIT B – DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I Fiscal Total 06/19/2018 ----- 06/15/2019 --130,338.03 130,338.03 - 12/15/2019 185,000.00 2.050%65,901.25 250,901.25 381,239.28 06/15/2020 --64,005.00 64,005.00 - 12/15/2020 250,000.00 2.200%64,005.00 314,005.00 378,010.00 06/15/2021 --61,255.00 61,255.00 - 12/15/2021 260,000.00 2.300%61,255.00 321,255.00 382,510.00 06/15/2022 --58,265.00 58,265.00 - 12/15/2022 265,000.00 2.450%58,265.00 323,265.00 381,530.00 06/15/2023 --55,018.75 55,018.75 - 12/15/2023 270,000.00 2.550%55,018.75 325,018.75 380,037.50 06/15/2024 --51,576.25 51,576.25 - 12/15/2024 275,000.00 2.650%51,576.25 326,576.25 378,152.50 06/15/2025 --47,932.50 47,932.50 - 12/15/2025 285,000.00 2.800%47,932.50 332,932.50 380,865.00 06/15/2026 --43,942.50 43,942.50 - 12/15/2026 290,000.00 3.000%43,942.50 333,942.50 377,885.00 06/15/2027 --39,592.50 39,592.50 - 12/15/2027 300,000.00 3.100%39,592.50 339,592.50 379,185.00 06/15/2028 --34,942.50 34,942.50 - 12/15/2028 310,000.00 3.200%34,942.50 344,942.50 379,885.00 06/15/2029 --29,982.50 29,982.50 - 12/15/2029 320,000.00 3.300%29,982.50 349,982.50 379,965.00 06/15/2030 --24,702.50 24,702.50 - 12/15/2030 330,000.00 3.400%24,702.50 354,702.50 379,405.00 06/15/2031 --19,092.50 19,092.50 - 12/15/2031 340,000.00 3.500%19,092.50 359,092.50 378,185.00 06/15/2032 --13,142.50 13,142.50 - 12/15/2032 355,000.00 3.600%13,142.50 368,142.50 381,285.00 06/15/2033 --6,752.50 6,752.50 - 12/15/2033 365,000.00 3.700%6,752.50 371,752.50 378,505.00 Total $4,400,000.00 - $1,296,644.28 $5,696,644.28 - Date And Term Structure Dated 6/19/2018 Delivery Date 6/19/2018 First available call date 12/15/2025 Call Price 100.000% YieldStatistics Bond Year Dollars $40,136.11 Average Life 9.122 Years Average Coupon 3.2306176% Net Interest Cost (NIC)3.3676513% True Interest Cost (TIC)3.3687373% All Inclusive Cost (AIC)3.4395775% Page 4 EXHIBIT C – PRELIMINARY LEVY SCHEDULE Date Total P+I 105%Levy Levy Year Collection Year 12/15/2018 -- 12/15/2019 381,239.28 400,301.24 2018 2019 12/15/2020 378,010.00 396,910.50 2019 2020 12/15/2021 382,510.00 401,635.50 2020 2021 12/15/2022 381,530.00 400,606.50 2021 2022 12/15/2023 380,037.50 399,039.38 2022 2023 12/15/2024 378,152.50 397,060.13 2023 2024 12/15/2025 380,865.00 399,908.25 2024 2025 12/15/2026 377,885.00 396,779.25 2025 2026 12/15/2027 379,185.00 398,144.25 2026 2027 12/15/2028 379,885.00 398,879.25 2027 2028 12/15/2029 379,965.00 398,963.25 2028 2029 12/15/2030 379,405.00 398,375.25 2029 2030 12/15/2031 378,185.00 397,094.25 2030 2031 12/15/2032 381,285.00 400,349.25 2031 2032 12/15/2033 378,505.00 397,430.25 2032 2033 Total $5,696,644.28 $5,981,476.49