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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