9.a) securitybanklind20150520133739SECURITY STRTE
BRNK OF MRR /NE
May 20, 2015
Kristina Handt
City of Scandia
Dear Kristina:
Thank you for contacting Security State Bank of Marine regarding the financing
for your new equipment. A common method of financing public safety equipment is with
Certificates of Indebtedness which are a general obligation debt instrument of the City.
Security State Bank of Marine proposes the following terms and interest rates on
$215,000.00 of Certificates of Indebtedness to purchase a fire truck:
5 year term:
PH 651-433-2424
SCRNOIR OFFICE
PH 651-433-2265
$43,000.00
due 1 year from date of issue:
@
1.40%
$43,000.00
due 2 years from date of issue:
@
1.65%
$43,000.00
due 3 years from date of issue:
@
1.90%
$43,000.00
due 4 years from date of issue:
@
2.10%
$43,000.00
due 5 years from date of issue:
@
2.30%
$215,000.00 Total
Interest on each of the Certificates of Indebtedness would be due on an annual
basis. It would be the responsibility of the city or city's bond counsel to draft the
Certificates of Indebtedness, subject to our review. We would be happy to provide you
with copies of Certificates we have used in other public financing projects. To aid in
your potential budgeting, an estimated amortization schedule is attached that details your
annual payments due under this financing proposal.
If the above proposal needs to be modified in some manner to better fit your
needs, or if you have any questions, please give me a call and I'll be happy to discuss any
comments or questions you may have. The terms contained within this proposal are valid
for 30 days from the date of this letter. Thank you once again for giving Security State
Bank of Marine an opportunity to offer a financing proposal.
Si,
ne
Adam W wicz
Sr. Vice President
MARINE OFFICE
PH 651-433-2424
SCRNOIR OFFICE
PH 651-433-2265
CHISRGO LRKES OFFICE
PH 651-257-4141
FOREST LAKE OFFICE
PH 651-464-1033
FAX 651-433-3950 120 Judd Street, P.O. Box 35 Marine on SL Croix, Minnesota 55047
FAX 651-433-3205 21190 Ozark Avenue N, P.O. Box 56 Scandia, Minnesota 55073
FAX 651-257-5112 30626 Lincoln Road. P.C. Box 684 Lindstrom, Minnesota 55045
FAX 651-464-1031 21450 Forest Lake Btvd N, P.O. Box 902 Forest Lake, Minnesota 55025
04 -HOUR GIRL-R-BRNK: 651 -433 -CALL (2255) www.themar[nebank.com
5 Year Amortization on $215,000 of Certificate of Indebtedness —
Estimate
Assumes bonds are dated July 1, 2015
Due Date of Payment Principal Interest Rate Payment Amount
January 1, 2016
$ 2,010.25 (Int.)
July 1, 2016
$43,000
1.40%
$45,010.25
January 1, 2017
1,709.25
July 1, 2017
$43,000
1.65%
$44,709.25
January 1, 2018
1,354.50
July 1, 2018
$43,000
1.90%
$44,354.50
January 1, 2019
946.00
July 1, 2019
$43,000
2.10%
$43,946.00
January 1, 2020
494.50
July 1, 2020
$43,000
2.30%
$43,494.50