Agenda - Council - 12/17/1991 - Laserfiche WebLink

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City of Ramsey, Minnesota December 12, 1991 1993 interest payment on the temporary bonds, due before the first assessment collection, the City will use investment earnings on bond proceeds and pre-paid assessments, and other available City funds, if needed. Thereafter, assessment income and investment earnings are expected to be available to make interest payments due on the temporary bonds until the temporary bonds are refinanced with definitive bonds. Again, if for any unforeseen reason assessment income or other revenues from the developers are not available beginning with the August 1, 1993 payment, the debt service requirements on the temporary bonds is substantially less than on a definitive bond issue, thus putting substantially less stress on the City's financial resources because of the reduced debt service levy requirements in the short term. Appendix I is our estimate of debt service for this temporary bond issue. The City will make interest payments each February 1 and August 1, commencing August 1, 1992. The August 1, 1992 interest payment and a portion of the following February 1, 1993 interest payment will be made from capitalized interest. We are providing the City with the option of repaying these temporary bonds on February 1, 1994, one year prior to the scheduled maturity date. This option will allow the City to refinance the temporary improvement bonds with long-term, definitive bonds early if it becomes apparent assessment income will be collected as scheduled. Included in the principal amount of the issue is a provision for discount bidding in the amount of $13,725, representing $9 per bond. This discount provides the underwriters with all or part of their profit and/or working capital for purchasing the issue. It permits them to reoffer the bonds at or close to a par reoffering scale. $620,000 General Obligation Improvement Bonds, Series 1992B This issue will incorporate and combine the financing of the City's 1989, 1990 and 1991 improvement projects (as listed in Appendix II) and the refunding of the 1993-1996 maturities of the City's $2,045,000 General Obligation Improvement Bonds of 1984 (the "1984 Bonds"), dated October 1, 1984. Combining the financing of the City's current improvement projects and the refunding of the 1984 Bonds into a single issue reduces the City's cost of issuing the bonds by avoiding unnecessary duplication of publication, bond printing, official statement printing and registrar costs, as well as a lower financial advisory fee. The lower costs have been allocated to the smaller refunding portion of this issue. The composition of the issue is as follows: New Project Financing* Bonds to be Refunded Less: City Funds for Refunding Subtotal Plus: Costs of Issuance for Refunding Portion of the Bonds Contingencies $ 320,828 420,000 (126,870) $ 613,958 4,855 1,187 Total Bond Issue $ 620,000 * Includes construction, engineering, contingency and costs of issuance. Page 3