|
SPRINGSTED
<br /> !1 PUBLIC FINANCE ADVISORS
<br /> 500 Elm Grove Road 85 East Seventh Place 135 North Pennsylvania Street
<br /> Suite 101,P.O.Box 37 Suite 100 Suite 2015
<br /> Elm Grove,WI 53122-0037 Saint Paul,MN 55101-2143 Indianapolis,IN 46204-2498
<br /> (414)782-8222 (612)223-3000 (317)684-6000
<br /> Fax:(414)782-2904 Fax:(612)223-3002 Fax:(317)684-6004
<br /> 2739 Second Avenue S.E. 512 Nicollet Mall 6800 College Boulevard
<br /> Cedar Rapids,IA 52403-1434' Suite 550 Suite 600
<br /> (319)363-2221 Minneapolis,MN 55402-1017 Overland Park,KS 66211
<br /> Fax:(319)363-6999 (612)333-9177 (913)345-8062
<br /> Fax:(612)333-2363 Fax:(913)345-1770
<br /> August 16, 1990
<br /> Mayor William Saed
<br /> Members, City Council
<br /> Mr. Robert Schaefer, City Administrator
<br /> Mr. Bruce Anderson, Director of Parks & Recreation
<br /> Mr.Tim Kuntz, City Attorney
<br /> City of Inver Grove Heights
<br /> 8150 Barbara Avenue
<br /> Inver Grove Heights, MN 55077
<br /> ,.� Re: Recommendations for Issuance of $5,840,000 Golf Course Gross Revenue Bonds,
<br /> City of Inver Grove Heights, Series 1990C
<br /> We have been working with your staff and Mr. Thomas S. Hay, Dorsey & Whitney, Bond
<br /> Counsel for this issue, on the documentation for the financing of the Inver Grove Heights golf
<br /> course. We respectfully request your review of these recommendations which will set the
<br /> terms and conditions for this bond offering.
<br /> We have attached for your information three separate appendices as follows:
<br /> Appendix I- Work sheets for bond sizing, maturity schedule and computation of interest
<br /> income.
<br /> Appendix II-Official Notice of Sale for this bond issue.
<br /> Appendix III- A proposed list of the risk factors on golf course gross revenue bonds which
<br /> will appear in the official statement for this issue.
<br /> Page 1 of Appendix I illustrates the necessity for issuing $5,840,000 of bonds to fund the
<br /> estimated $4,572,500 construction costs of the golf course. Additional uses of funds will
<br /> include$858,480 for interest during construction, $602,250 to fund a one-year's debt service
<br /> reserve, $114,500-to fund underwriter's discount for purchasing the bonds, and $75,000 in
<br /> legal,fiscal and administrative fees in issuing the bonds.
<br /> Funds for the satisfaction of this $6,222,730 requirement will come from $5,840,000 of bond
<br /> ,—� proceeds, $364,480 of interest earnings during construction, and $18,250 of other City
<br /> monies which will have to be supplied to fund a portion of the one-year's debt service
<br /> reserve. Federal law restricts borrowing for a reserve in the amount equal to the lesser of
<br /> 10% of the issue or one year's maximum average debt service, whichever is less. Since we
<br /> may only borrow$584,000 for the reserve, it will be necessary for the City to fund at the time
<br /> of issuance, $18,250 of additional monies to satisfy the bond issue's requirement of one-
<br />
|