9.e Discussion on Financing Plan for the issuance of bonds
Staff Report
Date of Meeting: April 17, 2018
To: City Council
From: Neil Soltis, Administrator
Re: Financing Plan for the Issuance of Bonds
Background: At the February 20, 2018 meeting the Council held a public hearing on the Five-Year
Street Reconstruction Plan and approved Resolution No. 02-20-18-03 adopting the Street
Reconstruction Plan and preliminarily authorizing the issuance of street reconstruction bonds to
finance the 2018 Road Reconstruction project. The project cost in the plan was estimated at
$6,425,650 and the resolution established a maximum aggregate principal amount for the bonds to
be issued under the plan to be $4,500,000.
Bids were opened for the project on April 11th with the low bid for the construction being submitted
by Park Construction Company in the amount of $3,732,404.50. This amount is substantially under
the budgeted project cost and affords the City to look at expanding the scope of work and to reduce
the principal amount of the funds to be borrowed.
Under State Statutes Minn. Stat. § 429.041, subd. 7, after the work on a unit price contract has
begun, the council may authorize additional units of work at the same unit price, as long as the total
contract price does not increase by more than 25 percent. The City may do this without re-
advertising for bids. This would enable the City Engineer to identify other roads that would
otherwise be included in the Five-Year Street Reconstruction Plan for the years 2020, 2021, and
2022 and to have that work performed based on the unit costs in the bid. This would allow for
$933,000 of additional work and increase the estimated final construction costs to $4,665,500.
With engineering, underwriting, and other costs for the issuance of the bonds, the total project cost
would be approximately $5,000,000.
Following this report is a Finance Plan prepared by Northland Securities for the issuance of
$3,890,000 in General Obligation Street Reconstruction Bonds. Also following is a 5-year
comparison of the 2018 budget for the Local Road Improvement Fund and the impact on the tax
levy for the project as budgeted to the same based on the bid amount as modified for the
maximum modification amount and the lowered bond issuance amount. This Finance Plan provides
the Council with flexibility in future budgets in determining the property tax levy and the funds to
be levied for the Local Road Improvement Fund. Significant changes are the reduced amount
needed for debt service ($43,000 per year) and the elimination of the need to increase the levy for
the Local Road improvement fund by 5% each year as was adopted in the 2018 – 2022 Capital
Improvement Plan. Projecting out to 2022 this would reduce the amount of City’s property tax levy
by over $130,000 in 2022.
Issue: Should the Council approve the Financing Plan which establishes the bond issuance amount
at $3,890,000?
Fiscal Impact: The fiscal impact of the plan is shown in the comparison summary that follows this
report. The savings will reduce the annual debt service on the bonds in comparison to the 2018 –
2022 Capital Improvement Plan and will alleviate the need to increase the portion of the property
tax levy allocated to the Local Road Improvement Fund in order to fund the 2020-2022 project that
are included in the Five-Year Street Reconstruction Plan.
The debt service amount is based on the projected interest rate. The Actual debt service amount
will be determined by the bids on the bond sale that will be presented to the City Council at the
May 15, 2018 meeting.
Options:
1. Approve the Financing Plan as presented
2. Modify the Financing Plan
Recommendation: Option 1
Finance Plan
Scandia, Minnesota
$3,890,000
General Obligation Street Reconstruction Bonds,
Series 2018A
April 17, 2018
150 South Fifth Street, Suite 3300
Minneapolis, MN 55402
612-851-5900 800-851-2920
www.northlandsecurities.com
Member FINRA and SIPC | Registered with SEC and MSRB
NorthlandSecurities,Inc.Page2
Contents
Executive Summary ...................................................................................................................................................1
Issue Overview ............................................................................................................................................................2
Purpose ................................................................................................................................................................2
Authority .............................................................................................................................................................2
Structure ..............................................................................................................................................................2
Security and Source of Repayment ........................................................................................................2
Plan Rationale ...................................................................................................................................................3
Issuing Process .................................................................................................................................................3
Attachment 1 – Preliminary Debt Service Schedule......................................................................................4
Attachment 2 – Estimated Levy Schedule..........................................................................................................5
Attachment 3 – Related Considerations .............................................................................................................6
New Issue Price Rule .............................................................................................................................6
Bank Qualification ..................................................................................................................................7
Arbitrage Compliance...........................................................................................................................7
Continuing Disclosure ..........................................................................................................................7
Premiums ....................................................................................................................................................8
Rating ............................................................................................................................................................8
Attachment 4 – Calendar of Events ......................................................................................................................9
Attachment 5 - Risk Factors..................................................................................................................................10
Northland Securities, Inc.Page 1
Executive Summary
The following is a summary of the recommended terms for the issuance of $3,890,000 General
Obligation Street Reconstruction Bonds, Series 2018A (the “Bonds”). Additional information on
the proposed finance plan and issuing process can be found after the Executive Summary, in the
Issue Overview and Attachment 3 – Related Considerations.
Purpose Proceeds from the Bonds will be used to finance street
reconstruction projects and pay costs associated with the
issuance of the Bonds.
Security The Bonds will be a general obligation of the City. The City
will pledge property tax levies for payment of the Bonds.
Repayment Term The Bonds will mature annually each December 15 in the years
2019 through 2033.Interest on the Bonds will be payable on
June 15, 2019 and semiannually thereafter on each December 15
and June 15.
Estimated Interest Rate Average coupon: 3.05%
True interest cost (TIC): 3.18%
Prepayment Option 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.
Rating The City received a rating of “AA” from Standard and Poor’s.
Tax Status The Bonds will be tax-exempt, bank qualified obligations.
Risk Factors There are certain risks associated with all debt. Risk factors
related to the Bonds are discussed in Attachment 5.
Type of Bond Sale Competitive Sale
Estimated Pricing Day Tuesday, May 15, 2018 at 10:30 a.m.
Council Consideration Tuesday, May 15, 2018 at 7:00 p.m.
Northland Securities, Inc.Page 2
Issue Overview
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 (the “Projects”) and to pay costs associated with the issuance of the Bonds. The
Bonds have been sized based on bids received. The City is expected to award construction bids
at the April 17, 2018 Council meeting. The table below contains the sources and uses of funds
for the bond issue. The City anticipates contributing approximately $1,100,000 of cash on hand
to cover a portion of the construction costs.
Authority
The Bonds will be issued pursuant to the authority of Minnesota Statutes, Section 475.58,
Subdivision 3b. Street reconstruction bonds can be used to finance the reconstruction and
bituminous overlay of existing city streets. Eligible improvements may include turn lanes and
other improvements having a substantial public safety function, realignments, other
modifications to intersect with state and county roads and the local share of state and county
road projects. Eligible improvements do not include the portion of project cost allocable to
widening a street or adding curbs and gutters where none previously existed.
Before issuing street reconstruction bonds, the City must hold a public hearing on the Projects
and the proposed bonds, and must then pass a resolution approving the Street Reconstruction
Plan and issuance of the Bonds by a unanimous vote of all members present. A public hearing
was held on February 20, 2018.
Structure
The Bonds have been structured to result in relatively level annual debt service payments over
15 years. The structure includes a City contribution of approximately $1,100,000 to cover a
portion of the construction costs.
The proposed structure for the bond issue and preliminary debt service projections are
illustrated in Attachment 1 and the estimated levy is illustrated in Attachment 2.
Security and Source of Repayment
The Bonds will be general obligations of the City. The finance plan relies on the following
assumptions for the revenues used to pay debt service, as provided by City staff:
Property Taxes. The revenues needed to pay debt service on the Bonds are expected to
come from property tax levies. The annual tax levy needs to produce the statutory
requirement of 105% of debt service. The levy may be adjusted annually based on any
Sources Of Funds
Par Amount of Bonds $3,890,000.00
Planned Issuer Equity Contribution 1,100,000.00
Total Sources $4,990,000.00
Uses Of Funds
Total Underwriter's Discount (1.200%)46,680.00
Costs of Issuance 42,670.00
Deposit to Project Construction Fund 4,900,000.00
Rounding Amount 650.00
Total Uses $4,990,000.00
Northland Securities, Inc.Page 3
additional monies in the debt service fund. The initial tax levy will be made in 2018 for
taxes payable in 2019.
Plan Rationale
The Finance Plan recommended in this report is based on a variety of factors and information
provided by the City related to the financed projects and City objectives, Northland’s
knowledge of the City and our experience in working with similar cities and projects. The
issuance of General Obligation Street Reconstruction Bonds provides the best means of
achieving the City’s objectives and cost effective financing. The City has successfully issued and
managed general obligation debt for previous projects.
Issuing Process
Northland will receive bids from underwriters to purchase the Bonds on Tuesday, May 15,
2018, at 10:30 AM. Market conditions and the marketability of the Bonds support issuance
through a competitive sale. This process has been chosen as it is intended to produce the lowest
combination of interest expense and underwriting expense on the date and time set.
Municipal Advisor:Northland Securities, Inc., Minneapolis, Minnesota
Bond Counsel:Eckberg Lammers, P.C. Stillwater, Minnesota
Paying Agent:Northland Trust Services, Inc. Minneapolis, Minnesota
Northland Securities, Inc.Page 4
Attachment 1 – Preliminary Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
06/15/2018 -----
06/15/2019 --110,493.47 110,493.47 -
12/15/2019 165,000.00 2.000%55,246.73 220,246.73 330,740.20
06/15/2020 --53,596.46 53,596.46 -
12/15/2020 225,000.00 2.150%53,596.46 278,596.46 332,192.92
06/15/2021 --51,177.64 51,177.64 -
12/15/2021 230,000.00 2.250%51,177.64 281,177.64 332,355.28
06/15/2022 --48,589.89 48,589.89 -
12/15/2022 235,000.00 2.350%48,589.89 283,589.89 332,179.78
06/15/2023 --45,828.55 45,828.55 -
12/15/2023 240,000.00 2.450%45,828.55 285,828.55 331,657.10
06/15/2024 --42,888.33 42,888.33 -
12/15/2024 245,000.00 2.600%42,888.33 287,888.33 330,776.66
06/15/2025 --39,703.32 39,703.32 -
12/15/2025 250,000.00 2.700%39,703.32 289,703.32 329,406.64
06/15/2026 --36,328.23 36,328.23 -
12/15/2026 260,000.00 2.800%36,328.23 296,328.23 332,656.46
06/15/2027 --32,688.13 32,688.13 -
12/15/2027 265,000.00 2.900%32,688.13 297,688.13 330,376.26
06/15/2028 --28,845.49 28,845.49 -
12/15/2028 275,000.00 3.000%28,845.49 303,845.49 332,690.98
06/15/2029 --24,720.49 24,720.49 -
12/15/2029 280,000.00 3.100%24,720.49 304,720.49 329,440.98
06/15/2030 --20,380.38 20,380.38 -
12/15/2030 290,000.00 3.200%20,380.38 310,380.38 330,760.76
06/15/2031 --15,740.31 15,740.31 -
12/15/2031 300,000.00 3.300%15,740.31 315,740.31 331,480.62
06/15/2032 --10,790.26 10,790.26 -
12/15/2032 310,000.00 3.400%10,790.26 320,790.26 331,580.52
06/15/2033 --5,520.23 5,520.23 -
12/15/2033 320,000.00 3.450%5,520.23 325,520.23 331,040.46
Total $3,890,000.00 - $1,079,335.62 $4,969,335.62 -
Date And Term Structure
Dated 6/15/2018
Delivery Date 6/15/2018
First available call date 12/15/2025
Call Price 100.000%
YieldStatistics
Bond Year Dollars $35,425.00
Average Life 9.107 Years
Average Coupon 3.0468190%
Net Interest Cost (NIC)3.1785903%
True Interest Cost (TIC)3.1811736%
All Inclusive Cost (AIC)3.3260792%
Northland Securities, Inc.Page 5
Attachment 2 – Estimated Levy Schedule
Date Total P+I 105%Levy Levy Year
Collection
Year
12/15/2018 --
12/15/2019 330,740.20 347,277.21 2018 2019
12/15/2020 332,192.92 348,802.57 2019 2020
12/15/2021 332,355.28 348,973.04 2020 2021
12/15/2022 332,179.78 348,788.77 2021 2022
12/15/2023 331,657.10 348,239.96 2022 2023
12/15/2024 330,776.66 347,315.49 2023 2024
12/15/2025 329,406.64 345,876.97 2024 2025
12/15/2026 332,656.46 349,289.28 2025 2026
12/15/2027 330,376.26 346,895.07 2026 2027
12/15/2028 332,690.98 349,325.53 2027 2028
12/15/2029 329,440.98 345,913.03 2028 2029
12/15/2030 330,760.76 347,298.80 2029 2030
12/15/2031 331,480.62 348,054.65 2030 2031
12/15/2032 331,580.52 348,159.55 2031 2032
12/15/2033 331,040.46 347,592.48 2032 2033
Total $4,969,335.62 $5,217,802.40
Northland Securities, Inc.Page 6
Attachment 3 – Related Considerations
New Issue Price Rule
The US Treasury Department and Internal Revenue Service (“IRS”) recently finalized
regulations which redefine the “issue price” determined for new tax-exempt bond issues,
effective for sales on or after June 7, 2017. The issue price factors into the arbitrage yield
determined for a new bond issue, as well as the IRS rebate rules applicable to the issuer. Issuers
are required to provide certification of these items to the IRS when issuing tax-exempt bonds.
The new changes to the IRS issue price rules (the “Rules”) provide several ways for the issue
price of a new bond issue to be determined. Under prior IRS regulations, the price of each
maturity of a new bond issue was the first price at which 10% of that maturity was “reasonably
expected” to be sold to the public.
Although the “10% sold” threshold for determining the Initial Offering Price (“IOP”) for a
maturity is still retained in the Rules, it must now be based on actual sales, not just “reasonable
expectations.” However, the new Issue Price Rules also now include a five-day “hold the price”
alternative for establishing the IOP. If the underwriter agrees in writing to hold the price of the
bonds for five business days after the sale at a price no higher than the IOP, then the IOP will be
established at that five-day hold level. If at least 10% of a maturity is sold to the public at or
below the IOP during the five-day hold, then the 10% threshold is met and the “price hold” for
that maturity can be released.
For bond issues sold on a competitive bid basis, another alternative for determining the IOP is
provided in the new Rules. If the issuer receives at least three competitive bids (as defined in
the Rules), they can establish the IOP as the winning bidder’s “reasonably expected” IOP upon
which they based their winning bid (rather than actual sales). However, this alternative only
applies if the issuer receives at least three competitive bids. If the issuer receives less than three
bids, the issuer will need to get the winning bidder to either agree to “hold the price” for five
days, or require the winning bidder to establish the IOP as the first price at which 10% of each
maturity is actually sold to the public.
We recommend that the City establish the issue price by requiring the winning bidder to “hold
the price” for five days after award, in the event fewer than three bids are received. Applying
the “hold the price” rule, rather than the “10% actual sales” rule will allow the City to finalize
the issue size and closing date immediately, and also meet the SEC requirement of providing a
Final Official Statement (which must include final pricing) within seven business days after the
sale. Underwriters have expressed a strong preference for this “hold the price” alternative for
these same reasons, and also because it eliminates the need for them to continue reporting bond
trades to the issuer until they have reached the “10% actual sales” threshold for every maturity.
In periods of market volatility, it can be difficult for an underwriter to sell certain maturities in a
timely manner, and it may even hinder their ability to get 10% actually sold before the closing
date, especially if they are hoping to “wait out” unfavorable changes in the market.
For both the issuer and the underwriter, the “hold the price” rule provides certainty and
simplicity in setting size, offering price, trading parameters and closing date at the outset, rather
than having those critical features in a state of flux until the actual sales thresholds have been
met.
In the section added to the Notice of Sale relating to the Issue Price Rules and bidding
requirements, we also recommend language stating that underwriters submitting bids will not
be allowed to cancel their bid after the sale. The concept of “cancellable” bidding was
introduced to the marketplace last year as a possible fallback for a winning bidder if a
Northland Securities, Inc.Page 7
competitive bond sale was expected, but less than three bids were received. If a winning bidder
did not want to then be required to meet the “hold the price” test or the “10% actual sales” test,
it would provide them with the option to cancel their bid. We feel this concept may protect an
underwriter, but greatly increases risk to an issuer, especially the risk of having an unsuccessful
sale with no buyer. We recommend requiring “non-cancellable” bids, since underwriters have
expressed minimal concern about having to “hold the price” and it is not expected to reduce the
number of bids you receive.
Non-cancellable bidding, coupled with hold-the-price restrictions in the Notice of Sale provide
the issuer with the greatest level of certainty for a successful sale, and minimal or no additional
cost in underwriters’ bids.
Bank Qualification
We understand the City (in combination with any subordinate taxing jurisdictions or debt
issued in the City’s name by 501(c)3 corporations) anticipates issuing $10,000,000 or less in tax-
exempt debt during this calendar year. Therefore the Bonds will be designated as “bank
qualified” obligations pursuant to Federal Tax Law.
Arbitrage Compliance
Project/Construction Fund. All tax-exempt bond issues are subject to federal rebate
requirements which require all arbitrage earned to be rebated to the U.S. Treasury. A rebate
exemption the City expects to qualify for is the “small issuer exemption.”
Debt Service Fund. The City must maintain a bona fide debt service fund for the Bonds or be
subject to yield restriction in the debt service fund. A bona fide debt service fund involves an
equal matching of revenues to debt service expense with a balance forward permitted equal to
the greater of the investment earnings in the fund during that year or 1/12 of the debt service of
that year.
The City should become familiar with the various Arbitrage Compliance requirements for this
bond issue. The Resolution for the Bonds prepared by Bond Counsel explains the requirements
in greater detail.
Continuing Disclosure
Type: Limited
Dissemination Agent: Northland Securities, Inc.
The requirements for continuing disclosure are governed by SEC Rule 15c2-12. The primary
requirements of Rule 15c2-12 actually fall on underwriters. The Rule sets forth due diligence
needed prior to the underwriter’s purchase of municipal securities. Part of this requirement is
obtaining commitment from the issuer to provide continuing disclosure. The document
describing the continuing disclosure commitments (the “Undertaking”) is contained in the
Official Statement that will be prepared to offer the Bonds to investors.
The City has less than $10,000,000 of outstanding debt and will provide “limited” continuing
disclosure. Historically, limited disclosure only required that certain information be provided
upon request. The 2010 amendments to the Rule added the provision that issuers must annually
provide financial information and operating data which is customarily prepared by the issuer
and is publicly available, which is typically the audited financial statement. Issuers must also
report certain “material events.” Material events set forth in the Rule, including, but not limited
to, bond rating changes and call notices, must be reported within ten days of occurrence.
Northland Securities, Inc.Page 8
Northland currently serves as dissemination agent for the City, assisting with the annual
reporting. The information for the Bonds will be incorporated into our reporting.
Premiums
In the current market environment, it is likely that bids received from underwriters will include
premiums. A premium bid occurs when the purchaser pays the City an amount in excess of the
par amount of a maturity in exchange for a higher coupon (interest rate). The use of premiums
reflects the bidder’s view on future market conditions, tax considerations for investors and
other factors. Ultimately, the true interest cost (“TIC”) calculation will determine the lowest bid,
regardless of premium.
A premium price produces additional funds that can be used in several ways:
The premium means that the City needs less bond proceeds and can reduce the size of
the issue by the amount of the premium.
The premium can be deposited in the Construction Fund and used to pay additional
project costs, or to reduce the amount of the city’s cash contribution, rather than used to
reduce the size of the issue.
The premium can be deposited in the Debt Service Fund and used to pay principal and
interest.
Northland will work with City staff prior to the sale day to determine use of premium (if any).
A consideration for use of premium is the bank qualification of the Bonds.
Rating
A rating was requested from Standard and Poor’s (S&P). The City’s general obligation debt was
recently rated “AA” by S&P. This is the City’s first rating and the “AA” obtained by the City is
in the rating agency’s second highest category.
Northland Securities, Inc.Page 9
Attachment 4 – Calendar of Events
Date Action Responsible Party
January 16, 2018 Resolution Calling for a Public Hearing on the Street
Reconstruction Adopted
City Council Action
February 10, 2018 Notice of Hearing published no later than this date (at
least 10 days, but not more than 28 days, prior to
Public Hearing)
City Staff
February 20, 2018 Public Hearing on the Street Reconstruction –
Resolution Approving the Street Reconstruction Plan
and Issuance of Bonds adopted (unanimous vote of
members present)
City Council Action
March 12, 2018 Send Request for Rating
Preliminary Official Statement Sent to City for Sign Off
Northland, City
March 22, 2018 30 Day Petition Period Ends
March 28, 2018 Construction Bid Opening City Staff
April 2, 2018 Rating Received Northland, City,
Rating Agency
April 11, 2018 Finance Plan Sent to the City Northland
April 17, 2018 Finance Plan discussed
Construction Bid Award
City Council Action,
Northland
May 10, 2018 Awarding Resolution sent to City for Council packets Northland, Bond
Counsel
May 15, 2018 Bond Sale 10:30 a.m.
Awarding Resolution Adopted
Northland,City
Council Action
June 15, 2018 Closing on the Bonds (Proceeds Available) Northland, City Staff,
Bond Counsel
March 2018 April 2018
Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat
1 2 3 1 2 3 4 5 6 7
4 5 6 7 8 9 10 8 9 10 11 12 13 14
11 12 13 14 15 16 17 15 16 17 18 19 20 21
18 19 20 21 22 23 24 22 23 24 25 26 27 28
25 26 27 28 29 30 31 29 30
May 2018 June 2018
Sun Mon Tue Wed Thu Fri Sat Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 1 2
6 7 8 9 10 11 12 3 4 5 6 7 8 9
13 14 15 16 17 18 19 10 11 12 13 14 15 16
20 21 22 23 24 25 26 17 18 19 20 21 22 23
27 28 29 30 31 24 25 26 27 28 29 30
Northland Securities, Inc.Page 10
Attachment 5 - Risk Factors
Property Taxes: Property tax levies shown in this Finance Plan are based on projected debt
service and other revenues. Final levies will be set based on the results of sale. Levies should be
reviewed annually and adjusted as needed. The debt service levy must be included in the
preliminary levy for annual Truth in Taxation hearings. Future Legislative changes in the
property tax system, including the imposition of levy limits and changes in calculation of
property values, would affect plans for payment of debt service. Delinquent payment of
property taxes would reduce revenues available to pay debt service.
General: In addition to the risks described above, there are certain general risks associated with
the issuance of bonds. These risks include, but are not limited to:
Failure to comply with covenants in bond resolution.
Failure to comply with Undertaking for continuing disclosure.
Failure to comply with IRS regulations, including regulations related to use of the proceeds
and arbitrage/rebate. The IRS regulations govern the ability of the City to issue its bonds as
tax-exempt securities and failure to comply with the IRS regulations may lead to loss of tax-
exemption.
LOCAL ROAD IMPROVEMENT (FUND 408)
2017 2018 2019 2020 2021 2022
Description Actual Proposed Proposed Proposed Proposed Proposed
Revenue 1,169,768$ 5,139,750$ 355,752$ 391,169$ 420,073$ 456,413$
Expenditures 88,753$ 6,500,000$ -$ 620,000$ 450,000$ 320,000$
Net Revenues (Expenditures)1,081,016$ (1,360,250)$ 355,752$ (228,831)$ (29,927)$ 136,413$
Balance January 1 374,020$ 1,477,853$ 117,603$ 473,354$ 244,523$ 214,596$
Balance December 31 1,455,036$ 117,603$ 473,354$ 244,523$ 214,596$ 351,009$
Base 560,533$ 581,000$ 610,050$ 640,553$ 672,580$ 706,209$
Increase in base -$ 29,050$ 30,503$ 32,028$ 33,629$ 35,310$
Sealcoat funds from General Fund -$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$
Debt Service on bonds -$ -$ (400,301)$ (396,911)$ (401,636)$ (400,607)$
560,533$ 725,050$ 355,252$ 390,669$ 419,573$ 455,913$
General Fund - Public Works 822,500$ 621,420$ 716,420$ 716,420$ 716,420$ 716,420$
Local Road Improvement Fund 560,533$ 725,050$ 355,252$ 390,669$ 419,573$ 455,913$
Debt Service on 2018 Projects -$ -$ 400,301$ 396,911$ 401,636$ 400,607$
1,383,033$ 1,346,470$ 1,471,973$ 1,504,000$ 1,537,629$ 1,572,940$
Account 2017 Actual 2018 Budget 2019 Budget 2020 Budget 2021 Budget 2022 Budget
General Fund 1,531,749$ 1,349,820$ 1,444,820$ 1,444,820$ 1,444,820$ 1,444,820$
Debt Service Fund 116,739$ 152,202$ 551,856$ 547,774$ 504,542$ 501,656$
Capital Improvement Fund 30,000$ -$ -$ -$ -$ -$
Park Capital Improvement -$ -$ -$ -$ -$ -$
Equipment Replacement -$ 30,000$ 30,000$ 30,000$ 30,000$ 30,000$
Local Road Improvement 560,533$ 725,050$ 355,252$ 390,669$ 419,573$ 455,913$
Economic Development Authority 5,000$ 800$ 5,000$ 5,000$ 5,000$ 5,000$
Total Levy for all funds 2,244,021$ 2,257,872$ 2,386,927$ 2,418,264$ 2,403,935$ 2,437,389$
ORIGINAL PROPOSAL TO ISSUE BONDS TOTALING $4,400,000
Local Road Improvement Fund Tax levy computation
Tax levy computation for Public Works and Road Improvements
LOCAL ROAD IMPROVEMENT FUND SUMMARY
Tax levy
LOCAL ROAD IMPROVEMENT (FUND 408)
2017 2018 2019 2020 2021 2022
Description Actual Proposed Proposed Proposed Proposed Proposed
Revenue 1,169,768$ 4,629,750$ 377,773$ 376,247$ 376,077$ 376,261$
Expenditures 88,753$ 5,000,000$ -$ 620,000$ 450,000$ 320,000$
Net Revenues (Expenditures)1,081,016$ (370,250)$ 377,773$ (243,753)$ (73,923)$ 56,261$
Balance January 1 374,020$ 1,477,853$ 1,107,603$ 1,485,376$ 1,241,623$ 1,167,700$
Balance December 31 1,455,036$ 1,107,603$ 1,485,376$ 1,241,623$ 1,167,700$ 1,223,961$
Base 560,533$ 581,000$ 610,050$ 610,050$ 610,050$ 610,050$
Increase in base -$ 29,050$ -$ -$ -$ -$
Sealcoat funds from General Fund -$ 115,000$ 115,000$ 115,000$ 115,000$ 115,000$
Debt Service on bonds -$ -$ (347,277)$ (348,803)$ (348,973)$ (348,789)$
560,533$ 725,050$ 377,773$ 376,247$ 376,077$ 376,261$
General Fund - Public Works 822,500$ 621,420$ 716,420$ 716,420$ 716,420$ 716,420$
Local Road Improvement Fund 560,533$ 725,050$ 377,773$ 376,247$ 376,077$ 376,261$
Debt Service on 2018 Projects -$ -$ 347,277$ 348,803$ 348,973$ 348,789$
1,383,033$ 1,346,470$ 1,441,470$ 1,441,470$ 1,441,470$ 1,441,470$
General Fund 1,531,749$ 1,349,820$ 1,444,820$ 1,444,820$ 1,444,820$ 1,444,820$
Debt Service Fund 116,739$ 152,202$ 498,832$ 499,666$ 451,879$ 449,838$
Capital Improvement Fund 30,000$ -$ -$ -$ -$ -$
Park Capital Improvement -$ -$ -$ -$ -$ -$
Equipment Replacement -$ 30,000$ 30,000$ 30,000$ 30,000$ 30,000$
Local Road Improvement 560,533$ 725,050$ 377,773$ 376,247$ 376,077$ 376,261$
Economic Development Authority 5,000$ 800$ 5,000$ 5,000$ 5,000$ 5,000$
Total Levy for all funds 2,244,021$ 2,257,872$ 2,356,425$ 2,355,733$ 2,307,776$ 2,305,919$
Local Road Improvement Fund Tax levy computation
Tax levy computation for Public Works and Road Improvements
Tax levy
LOCAL ROAD IMPROVEMENT FUND SUMMARY
REDUCE BOND AMOUNT TO $3,890,000