Loading...
1j Lake Ann Maintenance Bldg CITY OF CHANHASSEN 'City Center Drive, PO Box 147 banha¡¡en, Minnesota 55317 Phone 612.9311900 General Fax 612.937.5739 ¡gineering Fax 612.937.9152 bIic Safety Fax 612.934.2524 'leb www.ci.chanhassen.mn.Uj í' -3 ~ t . MEMORANDUM TO: Mayor City Council FROM: Bruce M. Dejong, Finance Directo(/fjJ DATE: October 18,2000 SUBJECT: Resolution Requesting the Economic Development Authority of the City ofChanhassen to Issue $930,000 Public Project Revenue Bonds Because the Lake Ann Park Maintenance Building does not have a specific funding source available, we need to issue bonds for the payment of all costs. The Economic Development Authority (EDA) is the only available financing authority that the city has available without having a referendum, The method used in this instance is for public project revenue bonds where repayment will be annually appropriated by the city council through the budgeting process. The bonds will have no payment due in 200 I, since the council has already certified the maximum amount to be levied for next year. The bonds carry both higher marketing costs (the underwriter's discount) and a higher interest rate than General Obligation (GO) bonds, but the increased financial flexibility inherent in this financing mechanism is worth while in this instance. I recommend that the city council pass the resolution as presented. City ofChll1zhasst'11. A '{rowine- community with clean Mlm. 4ualirv Jchools. a channinv downtown. thrivin{T bus;'œI.œJ. and bttlutifù/ tJarks. A mat nlAre toli1!f. work. a,¡d "lav. Resolution No. Council Member introduced the following resolution and moved its adoption: Resolution Requesting the Economic Development Authority of the City of Chanhassen to Issue $930,000 Pnblic Project Revenue Bonds, Series 2000 and Providing for the Sale Thereof A. WHEREAS, the City Council of the City ofChanhassen, Minnesota (the "City"), has heretofore determined that it is necessary and expedient to construct a park maintenance facility in the City; B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of City ofChanhassen, Minnesota, as follows: 1. Issuance of Bonds. The City Council hereby requests that the City ofChanhassen Economic Development Authority (the "Authority") issue $930,000 Public Project Revenue Bonds, Series 2000 (the "Bonds") to finance the facility. 2. Authorization; Findings. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 3. Meeting; Proposal Openinl!;. The Authority and the City shall meet at the time and place to be specified in the Terms of Proposal for the purpose of considering sealed proposals for, and awarding the sale of the Bonds. The City Clerk, or designee, shall open proposals at the time and place specified in such Terms of Proposal. ~ 4. Official Statement. In connection with said sale, the officers or employees ofthe City and Authority are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City and the Authority upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and, after full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this _ day of .2000. City Clerk (SEAL) City of Cbanhassen $930,000 Lease Revenue Bonds Park Maintenance Facility Estimates Assuming Issuance of Other Debt Concurrently SOURCES & USES Dated 12/0t/20oo Delivered 12/01/2000 SOURCES OF FUNDS Par Amount of Bonds......·······..··· .................................................... $930,000.00 TOTAL SOURCES..................·..........·..··........·..........................·..... $930.000.00 USES OF FUNDS Total UnderWriter's Discount (1.100%)......·............·..................· 15,810.00 Costs of Issuance..........····································................................ 18,000.00 Deposit to Capitalized Interest (ClF) Fund..........·····..······..······· 63.495.83 Deposit to Project Construction Fund.........································ 828.000.00 Rounding Amount........······ ........... ................................................... 4.694.11 TOT AL USES...............·......·........................·............................·......· $930.000.00 Ehlers & AssociateS, InC. Leaders in Public Finance since 1955 .LEASEREV2000- SINGLE PURPOSE 10/19/2000 2:25 PM Page 1 lr' City of Chanhassen $930.000 Lease Revenue Bonds Park Maintenance Facility Estimates ASSuming Issuance of Other Debt Concurrently NET DEBT SERVICE SCHEDULE Date PrincIpal Coupon Interest Total P+ I CIF Net New DIS FISCAL TOTAL 12/01/2000 · · . . · · · 8/01/2001 · · 36.283.33 36.283.33 (36,283.33) · · 2/01/2002 · · 27,212.50 27,212.50 (27.212.50) · · 8/01/2002 · · 27.212.50 27,212.50 · 27,212.50 · 2/01/2003 70,000.00 5.550% 27,212.50 97,212.50 · 97,212.50 124,425.00 8/01/2003 - · 25.270.00 25,270.00 - 25.270.00 · 2/01/2004 75,000.00 5.600% 2S.270.00 100.270.00 - 100,270.00 125.S40.00 8/01/2004 · · 23,170.00 23,170.00 - 23,170.00 · 2/0112005 80.000.00 5.650% 23,170.00 103,170.00 - 103,170.00 126,340.00 8/01/2005 · - 20,910.00 20.910.00 . 20,910.00 · 2/01/2006 85,000.00 5.700% 20,910.00 105,910.00 - 105.910.00 126.820.00 8/01/2006 · - 18,487.50 18,487.50 - 18,487.50 · 2/01/2007 90,000.00 5.750% 18,487.50 108.487.50 - 108,487.50 126.975.00 8/01/2007 · - 15,900.00 15,900.00 · 15.900.00 2/01/2008 95,000.00 5.800% 15.900.00 110.900.00 - 110,900.00 126,800.00 8/01/2008 - - 13,145.00 13.145.00 · 13,145.00 . 2/01/2009 100,000.00 5.900% 13.145.00 113,145.00 · 113,145.00 126,290.00 8/01/2009 · - 10,195.00 10.195.00 · 10,195.00 . 2/01/2010 105,000.00 6.000% 10.195.00 115,195.00 - 115.19S.00 125.390.00 8/01/2010 · - 7.045.00 7,045.00 - 7.045.00 - 2/01/2011 110,000.00 6.100% 7,045.00 117.045.00 · 117,045.00 124,090.00 8/01/2011 · . 3,690.00 3,690.00 · 3.690.00 - 2/01/2012 120,000.00 6.150% 3.690.00 123,690.00 - 123.690.00 127,380.00 Total 930,000.00 - 393.545.83 1,323.545.83 (63,495.83) ¡ ,260.050.00 . Ehlers & Associates. Inc. Leaders in Public Finance since 1955 File = LEASEREV2oo0.SF.LEASEREV2000. SINGLE PURPOSE 10/19/2000 2:25 PM Page 2