Agenda - Council - 11/08/1989 - Special

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SPRINGSTED PUBLIC FINANCE ADVISORS 85 East Seven[h Place, Suite 100 Saint Paul, MN 55101.2143 612.223,3000 Fax: 612.223.3002 November 3, 1989 Mayor Gary Reimann Members, City Council Mr. David Hadley, Administrator City of Ramsey Ramsey City Hall 15153 Nowthen Boulevard, NW Ramsey, MN 55303 Re: Recommendations for the Issuance of: $530,000 General Obligation Improvement Bonds, Series 1989A $235,000 General Obligation Tax Increment Bonds, Series 1989B $235,000 Taxable General Obligation Tax Increment Bonds, Series 1989C We respectfully request your consideration of our recommendations for the issuance of these bonds. The improvement bonds will fund six improvement projects for which the City has undertaken contracts for which it now needs funding, and the tax increment bonds will be used to finance both public and private development costs. We will address the issues separately. $530,000 General Obligation Improvement Bonds, Series 1989A Proceeds of this bond issue will be used to fund six improvement projects, incorporated into four separate construction projects. The projects and their respective costs are shown in Appendixl of these recommendations. All of the projects have been assessed in 1989 except for the Juniper Woods street and storm sewer project, which will not be assessed until 1990. The bond issue includes $19,000 of capitalized interest for that project in order to cover the bond interest costs until assessment income from that project becomes available. The capitalized interest is assessed along with other project costs, to the project. In addition to assessment income, project costs for Front Street NW are being financed with $475,530 of Minnesota State-aid highway funds and $66,000 from the Mississippi River Storm Sewer District. The $66,000 will be repaid over 5 years from a special levy collected within the Mississippi River Storm Sewer District. Proceeds from the special levy will be used by the City to reduce, on an annual basis, the certified tax levy for the improvement bonds. The projected assessment income for each of the projects is shown in Appendix II. This Appendix assumes no prepayments or delinquencies in the collection of special assessments. All of the projects were assessed at 8.10% except Juniper Woods which is estimated at 8.25%, approximately 1.5% over the interest rate on the bonds. That interest rate can be adjusted to reflect the actual interest rates received at the time of bond sale. Indiana Office: 135 North Pennsylvania Street Suite 2015 h~dianapolis, IN 46204.2498 317.684.6000 Fax: 317.684.6004 Kansas Office: 6800 College Boulevard Suite 600 Overland Park, KS 66211,1533 913,345,8062 Fax: 913.345.1770 Wisconsin Office: 500 Elm Grove Road Suite 101 Elm Grove, WI 53122,0037 414.782,8222 Fax: 414,782,2904