HomeMy WebLinkAbout5A - General Obligation Bonds
AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
DISCUSSION:
STAFF AGENDA REPORT
SA
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER APPROVAL OF RESOLUTION 96-93 PROVIDING
FOR ISSUANCE OF SALE OF $2,430,000 GENERAL
OBLIGATION REFUNDING BONDS OF 1996
SEPTEMBER 3,1996
Staff and the City's financial consultant Steve Mattson of Juran &
Moody has reviewed the City's outstanding bond issues for
refunding purposes as market conditions are quite favorable at this
time for refinancing. Current market conditions make it possible for
the City to save significant future debt service dollars by
refinancing the General Obligation Advance Refunding Bonds of
1992.
Originally, these bonds were issued to finance the North Shore
water and sewer project, the construction of the water tower along
CSAH 42 and street overlay improvements in 1986. The City
Council approved the initial refunding of these bonds on December
16, 1991. The key element in structuring the deal at that time was
to attach an early call provision that would allow a future refunding
to take place assuming the right conditions.
To determine if a bond issue qualifies and is feasible in terms of
interest savings the following four criteria must be examined:
Call Date
Bonds typically have a call date whereby the bond issue may not be
retired or refunded until this date occurs. This feature provides
assurance to the purchaser that the investment will continue over a
minimum time period and protects the investor from losing
investment income. Therefore the bond issue must have reached the
call date before it can be considered for refinancing. This has
occurred.
Interest Rate
The difference between the bond interest rate and the current
market interest rate must be substantial enough for the City to
realize a significant net savings after bond issuance expenses. The
1992 issue has a current outstanding coupon rate of 5.640/0. We
estimate under current market conditions that the new issue would
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
."
::0
<5
::0
~
"
m
8
e.
()()>>~5'"()()
~fii<<m_all)
.,,~~~oi:;~
~. !!L c! lQ (; !!L ~. II)
gCDCDCD gai
3:()m;'
!!LEii'
~~i~
~~ ~
ai R
I
Ul
~mo
>z>~!!!.!!
~!!~z~~
~~~;~~
3:~()m~ai
~~Ei~
~~~io
~CD~ ;.
as'
fifi
c;...... m
o~~~ 0'1
o "'-..j~ N
o ;0 ~ ~ 0
o Ol 0<' 'if!.
~~
Ol' .
. co Ol
~1\)c..J
O'IOl'"
-..j-..j~
#.#.
-f
o
-f
>
r
(J)
'V
::u
[fj]i
-I\)
~
c..J
_0
0
0
0
'Vm
.0
<z
Eo
Ii) 8
~c
mZ
Z~ Ol
~... Ol
.Ol
m 0
p I\)
~
Ol
Ol
'TICIJ
jj ~.
~~ _c..J
.....
:tillD .....
Ol
C3: '0
~o I\)
zcg Ol
<>>
> ~ OIl
!'J
~
0
_0'1
0
0
0
OlOl ~ ~ t....(J)
0..... 8 C-I
01\) ::Om
Cr\> ." ~ri;
II) Z
0'11\) .~ llDZ
<?~ 3: ::0 3:~
~..... 0
OlO'I z i 8 3:
." OlO
~ OlO 0'1 :::l. 0 ~
~ (J) -< -I
CD 9 - - ~
I ~_z
~
CD
."
Cil
!lI.
e.
CD
a.
~
!D
;:
~
0
0
.0 2-
'V zi-z a
::u m 2'm2', c..J
m "'C:=~'I N
fR ::u =' (') - _ I\)
m 21- 1:10 -~
z .....
~ c'" :ce=' ~
< (')(; -"'V 01
. g3 ;;~a 0
... 0
c z~ o!-!'
m
ell ~ .scot
. · dl~
s
z m-=
G) eII::DO
ell ~ 3 i
~ ::u
~...... -- .....
0:0 I\) I\) 0
.N: Ol ...... 5" ,I\) ,OIl
:i' c..J ~ -..j :::
0'1 0
p!>> -..j ~ :" !>>
...... -..j 0'1 -..j .....
PI\) ~,9Cll I\)
OIl l.-
N -..j -..j I\) I\) ~
!=J ...... _c..J !'J
c..J 0'1 0'1 0 0'1
q; I\) 0'1 0 ~ CD 0
Ol ~ !>> ~ CD ~ !>> ~
CD -..j CD 0'1 0'1 -..j
#. c..J CD ~SO'l CD
III
CD
- co
1\)-
0'1.....
;0;0
Q)Ol
-I&>
Q~
>-1
r 0
-:n
I
~
~
o
g::O"'CIJ;;rCIJQ(J)
II) II) 0 _. Q f!l. c
:r=.'S ~ 3 i1Ul sr
~ ~ ~. ~ ; () ~ ~
2l~~~.o~ m-
~~~3--g.iili
~'< -lQ;I. ~ ~
CD'TI1CD9 CD
~i!!J ..
-- CD
!!!
i Q ~ [...... ..........
~ 3 (II ..........
O-f"='()
iii' 0 ;- II)
8&>~[
:s =.....
- ~
9
a.
UI
<>>
o
'if.
I\)
~
Ol
,0......
0c..J
c..J0'I
I\)-..j
N:""
Cll~
I\)
~
~
CD
-....,
~
o
o
o
I\) I\)
~ .~
~o 0
c..J0'I 0'1
-""'''0 "0
~o 0
00 9
00 0
00 0
0'1..... ,!') ,I\)
~"o<n 0'11\)
888 ~~
000,00
OOO,?OO
'TI
~
..... CD
0>
9 3
0_
O'
~>[ .....:...:-:
- 0 ::. '.':.
-I br2
Q 3~(jj ::. ......
> a_!
r -i~CD
o CD 1)
() i ~
!:-~
0 2
II)
ai a.
I\)
~
Q)
o
"0
c..J
I\)
N
OIl
I\)
~
N c..J
1\)-..j0
-""'w"o
01\)0
-..j~0
:""eno
CllOO
..................
.................
................-.
;:::~:~~~:~:~~~:;; ~; ~~~~I~
-..j-..jQ)CDO'IO'I~~c..Jc..JI\)I\)..........OOCOCDCDQ)~-..jQ)CD
~ ~
!J1 _0
o 0
o 0
o 0
c..J
o
.0
o
o
o
c..J
o
.0
o
o
o
I\)
co
o
o
o
o
I\) N
co .....
_0 .0'1
o 0
o 0
o 0
~ ~
co al
o 0
'if. 'if.
~
-..j
0'1
'if.
~
-..j
o
'if.
~
<>>
o
'if.
~ ~
en w
o 0'1
'if. 'if.
I\)
.....
.0'1
o
o
o
I\)
.....
_0'1
o
o
o
~
I\)
o
~
o
~
o
o
#:
NI\)c..JWc..Jc..J~~~ ~ 0'10'1 O'Ial
0'I0'100-..j-..j~~"'" -..j-..jc..Jc..JCO~~~~,!')
NNWW~~~~ mmmm~~co~co~
CDOlOOc..Jc..JCDQ)O'IO'1-..j-..jO'lO'lWc..Jc..Jc..Jwo
-..j-..j~-..jI\)NI\)I\)I\)I\)-..j""'alCllc..Jc..Jc..JWc..JO
O'IO'1O'1O'1O'1O'1O'1O'1O'1O'1O'1O'1-..j-..j-..j-..j-..j-..j-..jOl
0000000000000'10'10'1 0'1 0'10'1 O'IW
I\) I\) c..J c..J c..J c..J c..J c..J
N I\) 1\)1\)1\)c..J1\)c..J ~I\)
OO'lOO-..j-..j~~""''''''-..j-..jCDc..J~
NNWW-~AAA..... .....-OlOlOlOlA
OlCDOOc..Jc..JCDCDO'IO'I-..j-..jO'lO'lc..J
~-..j~~I\)I\)I\)I\)I\)I\)-..j-..jCDCll~
0'1 01 0'10'1 0'1 0'1 0'10'10'1 0I0'10'1-..j-..j-..j
0000000000000'10'10'1
..... .....
c..J A.
.0 _0
o 0
o 0
o 0
I\) I\) I\)
o co co
!J1 .0'1 !=J
000
000
000
I\)
Ol
.0'1
o
o
o
I\) I\)
CD -..j
.0 .0'1
o 0
o 0
o 0
CD Ol
o 0
o 0
'if!. #.
0'1 0'1 ~
CD OIl -..j
000
eft tfl "if!.
0'1 ~
Ol ~
o 0
'if!. 'if!.
0'1
I\)
o
'if!.
c..J
~NCJlO'lal
_co ,~ _~ ~ _N
~COCOCOA.
c..JWc..Jc..JO
c..Jc..J~c..J0
-..j-..j-..j-..jCD
0'1 0'10'1 0'Ic..J
I\)
Ol
!J1
o
o
o
I\)
CD
!=J
o
o
o
0'1
o
o
#
~
-..j
0'1
#
I\) N c..J c..J c..J c..J ~ ~ 0'1 0'1 0'1 0'1 CD CD CD CD
c..JWCDCD~~I\)I\)OOCDalQ)CDWWCO~!J1!J1!J1!J1
Cofo" - . , -"",--..j-CDCol>>l>>N-I\):'- -..... -..j CD CD co co
~888~~~~~~~~~~~~~~~~~~
00000'10'1010'10'10'10'10'10'10'10'10'10'1010'10'10'10'1
0000000000000000000000
..... ..... I\) c..J W W c..J c..J c..J
c..J ~ ..... 1\)1\)c..J c..J1\)~ 0'11\)01
c..Jc..JCllalCO~-..jI\)OOCDCD CDCllc..J~~
<0<0- - -, -""'-""'<O<O-Cllo,I\)N'. -....,-..j
oOOO~~OOCDCDOOc..Jc..JI\)I\)~~
OOOO-..j-..jI\)N-..j-..j-..j-..jI\)I\)I\)I\)-..j-..j
ooooen~~~~~~~~~~~~OI
000000000000000000
ONW~c..J~Wc..Jc..Jc..JI\)c..JI\)I\)I\)I\)""''''''
-..jCDOI\)~OCDOl ~Q)OI\)COO
-.....' "0- N~o,WO<n. ~-""'No,N-..j
CDc..Jc..JI\)COO'l ~-..jCOOO'lCO~CllI\)O'I
ocoCO-..jO'lO'lO'lO'lO'lOO'lOO'lOO'l.....-..j
~mCDG~~~~~~~~~~~mG
0,9,90000000000000'10
~ ~ ~ ~ -
c..Jc..J1\)1\) c..J O'Ic..JQ)I\)-..jOlCll CD
CoCo' o,"'OaI\)No..~wOl~o.Ui~c..J
OOOlc..JOl~-..j-..j CDA.O'I~O'Ic..JOl
o O-..j I\) 000 00'10'10'1 O'I01O'1CDc..Jc..J
OOO'l~OOOOOOOOOON-..j-..j
00,90,9000,90,90,90~0'I0'1
Q) ~ ..-.. .-... ........
01\)0'1..... I\) c..J1\)~ O'IO'1CD -..j
WWc..Jl>>~<n"'-""'<n-""'-..jCo"oCo~<01\)
CD co c..J1\) CD OIl OIl c..J-..jCDOCllO~CD-..j
CD~CD91\)c..J~ I\)~CDO'I~!>>~CD~
OCll OICD~CllOc..JCDc..JCD""'~OI\)c..J
CDCDO'ICD,9~~Cll~O'I~O'I~O'I~""'1\)
c..J
I\) CD Ol Ol
0'10'10'10'1
<0<0<0<0
I\) I\) I\) I\)
I\) I\) I\) I\)
0'1 0'1 CJl 0'1
0000
.....!J1
~ ..... .....
: ~ ~
..... ~ Ol
0'1 0 0'1
~ ..... ~
!=J ,0 ,0 ~
~ 0 co co A.
CD Q) -..j
~ ..... !>> CD !>>
-..j I\) ~ -..j .....
01 ~ 0'1 0'1 ~
5;) ..... ~
~ .0 _0 .0'1
..... CD ~ ~ ~
I\) c..J -..j
~ 9 CD 0 I\)
~ -..j 0 CD
~ ~ CD .9
II
~O (1:1.. ..~.:...:.:... .':.:-.'.?::':!:
..:>::~:
~ :~::': ':-1:
ill /. il
~ :1>>>> !
~ :fit: .. ::1'
z:... 2
g>:,.:.S
1;111
,<Dj:
"'>]IiI'
II
. . . . . . . . . . . . . . . . .
I....?..............
.~.....
:;IlJ'
:...>.> >::"'.D .
M::: 0
......j.:
:::::.::>::>::::>:::':0:
::':':';:.:'::::::::::.::>.Z
1111
::.\1:
.................
I..i.:((......
1::1:-1.:'.)
a::,::::::::::>.
0; CD
o,o,w
~c..J0'I
~~-..j
... CD -..j'
.g~~
~~
...... ~ gg
c..J m m ~
~ ~ . ~
:.... rC! f<<
~
i~
(') (') ii
::u ::D ::u
i ~ S
!!!f<<
.. 'V
c. G ::u
.. .... m
. N fR
: ~ ~
G ...
en . C
~ m
1:-
8Q
:o-t
m<
"TIO
~-n
O"tJ
z:c
C)-
aJO
o:c
Zr-
0)>
0"
~!"
wi ~
0Z
mm
:0 en
mO
0-t
>)>