Laserfiche WebLink
ir.'tr KM^ so » v''-lii » L.^ <br />Enters and ilssociaies.lnc. <br />IfSOiRS IN rudllC riNANCt <br />November 8, 1995 <br />Ron Moorse <br />City Administrator <br />Orono City Hall <br />P.O. Box 66 <br />Crystal Bay. MN 55323-0066 <br />cc: Tom Kuehn <br />Finance Director <br />Re: Current refunding of 1985 G.O. Imjjrovement Bonds and 1989 0.0. Water and Sewer Revenue Bonds <br />Enclosed ire schedules indicating projected savings by refunding the 1985 Improvement Bonds which can <br />be called 1/1/96 and the 1989 Water and Sewer Revenue Bonds which can be called on 2/1/96. The <br />refunding can be put into one issue, and then separated for accounting purposes in the sale resolution. <br />The exhibits enclosed illustrate the following: <br />The “Original issue" debt schedules are both included; <br />£.\hibit 1.00 combines tlie two “Original issue” debt schedules; <br />Exhibit 2.00 projects the debt schedule for the refunding bonds, using rates which we are <br />currently seeing for simila.- o/Terings; <br />Exhibit J.OO compares the e.xisting and projected schedules, resulting in .m estimated gross savings <br />over the remaining life of the issues of S15 8,680. (The present value of this savings is $ 139,170.77). <br />The Cit)' has two choices with regnrd to costs of tlie refunding: (1) To increase the principal amount of the <br />refunding to include the costs oi the refunding, or (2) To pay the cosm of the refunding out of funds on hand <br />in the specific bond funds. The schedules enclosed assume the City will pay the issuance costs and the <br />discount (underwriler’.s fee) from funds on hand. <br />Total costs of issuance including Faegrc & Benson (a firm the City has used as bond counsel for many years), <br />paying agent/registrar. Moody ’s Investors Service rating fee, and Ehlers and As.«ociates. Inc. including <br />printing and distribution of the oftkial statement, will be $25,600. We estimate underwriter’s discount to <br />be $12,770 (this is bid competitively with the coupon interest). Deducting these cf)st.s from the $158,680 <br />savings results in a net savings to the City of $120,310. <br />We have also enclosed a resolution should the Council wish to proceed. Let me know if you have questions <br />Sincerely, <br />/ <br />Carolyn Drude <br />n.xecutive Vice President/TDirector <br />OFFICES IN MINNEAPOLIS. MN AND BROOKFIELD, Wl <br />2O.S0 Norw/ost Cenipf « PO .South .Seventh Slfppl • Minnp.'ipniK. MN 5S407-41 00 <br />'Nrsr 1 , TAV ri *2 .-^oej.PP c/i 1