01-11-1995 Council Agenda - Laserfiche WebLink

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Pre -Sale Report - 1 995A Bonds Financing these projects requires a bond issue in the amount of $485,000. The proposed finance plan consists of the following sources and uses of funds: Sources of Funds Uses of Funds Par Amount of Bonds $485,000 Project Costs $437,100 Interest Income 9,000 Costs of Issuance 18,000 Discount 7,200 Capitalized Interest - Borrowed 22,700 Capitalized Interest - Earned 9,000 Total Sources $494,000 Total Uses $494,000 Table 2 Sources and Uses of Funds The estimated project costs in the Budget contain an allocation for financing expenses. The "Project Costs" in Table 2 equal the estimated assessable project costs less costs of issuance and discount. STRUCTURE The Bonds will be dated February 1, 1995. The first interest payment on the Bonds will be due on August 1, 1995, and semiannually thereafter on February 1 and August 1. Principal on the Bonds will be due on February 1 in the years 1997 through 2006. The issue has been structured around the projected flow of revenue from special assessments. We assumed that the City will levy assessments equal to the amount of assessable project costs in Table 1. The assessments will be paid over a ten -year period in equal annual principal. Interest will be paid on the unpaid assessment principal at an interest 1.5% higher than the average interest rate on the Bonds. The preliminary analysis assumes that the assessment roll will be dated November 1, 1995. With this timing, assessment revenue will not be available until 1996. The finance plan uses capitalized interest and investment income to make interest payments through February 1, 1996. The income comes from the investment of bond proceeds. The projected debt service and flow of funds can be found in Attachment 1. Page 29