Agenda - Council - 05/24/1984 - Laserfiche WebLink

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I I I I I I I I I I I I I I I I I I I EVENSEN DODGE~ INC. 16 May 1984 FINANCIAL CONSULTANTS Mr. Lloyd Schnelle City Manager Ramsey City Hall 15153 Nowthen Blvd. Ramsey, Minnesota 55303 Re: Pre-Sale Analysis: $190,000 G.O. Improvement Bonds of 1984 $90,000 G.O. Equipment Certificates Dear Lloyd: It was a pleasure meeting again with you and Jeanne to consider financing strategies for the City's Equipment Certificates and Improvement Bonds. As we discussed at the time, I am recommending that the City sell both of these issues, simultaneously, through an informal competitive sale, rather than the more traditional route of a private sale through negotiations with a single underwriter. The advantage of conducting an informal competitive sale, which is permitted under state law for any issue size under $300,000, is that you will undoubtedly receive a considerably lower interest rate on your bonds, since bidders know they are competing with each other. I recommend the following issue sizes: $170,000 12,000 8,000 construction costs (estimated) capitalized interest discount and issuance costs $190,000 Issue Size - Improvement Bonds $80,000 6,000 4,000 $90,000 equipment costs as bid capitalized interest discount and issuance costs Issue Size - Equipment Certificates The attached preliminary debt schedules suggest structures for the two issues. The Improvement Bonds will mature in ten approximately equal principal payments, from 4/86 through 4/95. The Equipment Certificates will mature in four principal payments, from 4/86 through 4/89, structured to provide approximately equal annual debt. Both issues will be dated 3608 IDS Tower, Minneapolis Minnesota 55402 612/338-3535 800/328-8200 800/328-8100 Minnesota