Agenda - Council - 03/13/2012 - Laserfiche WebLink

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City of Ramsey, Minnesota $17,735,000 General Obligation Capital Improvement Plan Bonds, Series 2012A FINANCING PLAN OVERVIEW This finance plan provides for the public issuance of general obligation bonds through a negotiated sale process with Northland Securities to acquire the Municipal Center. The acquisition will require an advance refunding of the outstanding maturities of the Economic Development Authority's Public Project Lease Revenue Bonds, Series 2005A (the "Series 2005A Bonds") through the issuance of General Obligation Capital Improvement Plan Bonds. The acquisition will lower the City's debt service costs and provide budget relief by extending the final repayment term. The primary objectives of this finance plan include: • Debt service cost savings and budget relief - municipal interest rates are at historically low levels. Replacing the existing lease revenue debt service with general obligation bonds will reduce the City's future interest costs and help manage future debt service levies. AUTHORITY & PURPOSE The Bonds will be issued pursuant to Minnesota Statutes 475. The proceeds will be used to acquire the Municipal Center from the City's Economic Development Authority through a full net advance refunding by prepaying the December 15, 2012 through December 15, 2027 maturities of the EDA's Public Project Lease Revenue Bonds, Series 2005A on April 26, 2012. The estimated source and uses of funds are as follows: Refunding Summary Dated 04/01/2012 1 Delivered 04/26/2012 Sources Of Funds Par Amount of Bonds Transfers from Prior Issue DSR Funds Accrued Interest from 04/01/2012 to 04/26/2012 Total Sources $17,735,000.00 1,531,940.00 25,110.42 $19,292,050.42 Uses Of Funds Deposit to Net Cash Escrow Fund Total Underwriter's Discount (1.290%) Costs of Issuance Deposit to Debt Service Fund Rounding Amount Total Uses 18,989,635.29 228,781.50 45, 000.00 25,110.42 3,523.21 $19,292,050.42 Page 2 NORTHLANDO S ECURITIES