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Home My WebLink About95-248 Resolution No. 95-248 RESOLUTION AUTHORIZING INVITATIONS FOR SEALED BIDS FOR $2,250, 000 GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 1995 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Speer Financial, Inc. be and is hereby authorized to solicit sealed bids for $2,250, 000 General Obligation Corporate Purpose Bonds, Series 1995, for the objects and purposes described in Exhibit A, a copy of which is attached hereto and made a part hereof by reference. s/ Kevin Kelly Kevin Kelly, Mayor Presented: November 8, 1995 Adopted: November 8, 1995 Vote: Yeas 4 Nays 2 Attest: s/ Dolonna Mecum Dolonna Mecum, City Clerk Exhibit A Project Description Amount GENERAL CAPITAL IMPROVEMENTS Golf Course $ 1,500, 000 Westfield Homes Property Purchase 750,000 TOTAL $ 2 ,250, 000 • in . ......_ Agenda Item No. o - November 3, 1995 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager SUBJECT: Authorization for a $2 . 25 Million 1995 General Obligation Bond Sale for the Purchase of Property and Golf Course Capital Improvements PURPOSE The purpose of this memorandum is to obtain authorization to seek sealed bids for $2, 250, 000 General Obligation Corporate Purpose Bonds . BACKGROUND As part of the action taken by the City Council at their September 25, 1995 meeting regarding the Elgin Community College/City of Elgin negotiations on Randall Road Access, Recreation and Economic Development Program, a General Obligation bond sale totaling $2 . 25 million was contemplated. In order to move forward on the issuance of these bonds, City Council authorization is requested. Speer Financial will then begin to assemble the Official Statement (OS) which, upon its completion, will be distributed to potential buyers of the bonds . It is anticipated that the OS will be completed by mid-November for the bond sale scheduled on December 6, 1995. These bonds will be used to fund the purchase of the five model Westfield Townhomes located at Randall Road and College Green Drive, with the remainder earmarked for the 18-hole golf course development in the Sports Complex. The 1995 $2 .25 million G.O. issue was reviewed in light of the ratios developed within the debt policy adopted on October 26, 1994 . A comparison of the ratios are shown below: As of Type of Ratio 12/31/95 Median Ceiling Direct Net Debt Per Capita $569 $629 $754 Ratio of Net Debt Per Capita 1 . 46 1 . 70 1 . 92 Overlapping Net Debt Per Ca- pita 1, 142 1, 217 1, 460 Ratio of Overall Net Debt to Estimated Full Value 2 . 86 3 .20 3 . 84 Net Direct Debt as a Percentage of Operating Expen- ditures 15. 8° N/A 17 . 5° Also attached is the proposed debt service schedule from Speer Financial . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Elgin Community College, Speer Financial . FINANCIAL IMPACT Retirement of these bonds has been taken into consideration as part of the 1996-2000 Financial Plan and will be budgeted accordingly. The ratios outlined in the debt policy are well within the prescribed limits . The bonds will be utilized to fund the purchase of model Westfield townhomes and golf course improvements. LEGAL IMPACT All future actions should continue to be coordinated with bond counsel . RECOMMENDATION It is recommended that the City Council authorize proceeding with the sale of $2, 250, 000 General Obligation Corporate Purpose Bonds . R spectfully submitted, J mes R. Nowicki inance Director Richard B. Helwig City Manager JRN:daw Attachment yoiyUiao _ ,11:zi p1 31z 346 8833 SPIiF_R FINANCIAL 1j002/002 CITY OF ELGIN, KANE AND COOK COUNTIES, ILLINOIS $2,250,000 General Obligation Corporate Purpose Bonds, Series 1995A Related to FCC Project DEBT SERVICE SCHEDULE DATE PRINCIPAL COUPON INTEREST TOTAL P+I 1/01/1996 - - - 1/01/1997 30,000.00 4.250% 167,669.58 197,669.58 1/01/1998 80,000.00 4.400% 117,080.00 197,080.00 1/01/1999 85,D00.00 4,500% 113,560.00 198,560.00 1/01/2000 85,000.00 4.600% 109,735.00 194,,735.00 1/01/2001 90,000.00 4.700% 105,825.00 195,825.00 1/01/2002 95,000.00 4.500% 101,595.00 196,595.00 1/01/2003 100,000.00 4.900% 97,035.00 197,035.00 1/01/2004 105,000.00 5.000% 92,135.00 197,135.00 1/01/2005 110,000.00 5.100% 86,885.00 196,885.00 1/01/2006 115,000.00 5.200% 81,275.00 196,275.00 1/01/2007 120,000.00 5.300% 75,295.00 195,295.00 1/01/2008 125,000.00 5.400% 68,935.00 193,935.00 1/01/2009 135,000.DO 5.450% 62,185.00 197,185.00 1/01/2010 140,000.00 5.500% 54,827.50 194,827.50 1/01/2011 150,000.00 5.550% 47,127.50 197,127.50 1/01/2012 160,000.00 5.600% 38,802.50 198,802.50 1/01/2013 165,000.00 5.650% 29,842.50 194,842.50 1/01/2014 175,000.00 5.700% 20,520.00 195,520.00 1/01/2015 185,000.00 5.700% 10,545.00 195,545.00 TOTAL 2,250,000.00 1,480,874.58 3,730,874.58 YIELD STATISTICS Bond Year Dollars................................. S27,237.50 Average Life...................................... 12.106 Years Average Coupon.................................... 5.4368961% Net Interest Cost (NIC)........................... 5.4368961% True Interest Cost (TIC).......................... 5.3982856% Bond Yield for Arbitrage Purposes................. 5.3982856% All Inclusive Cost (AIC).......................... 5.3982856% IRS FORM 6038 Net Interest Cost... .......................... 5.4368961% Weighted Average Maturity......................... 12.106 Years Speer Financial, Inc. FILE = J:\MUNEXP\DATA\ELGIN-city for ecc Public Finance Consultants 6/ 6/1995 11:10 AM El • �n Agenda Item No , November 3, 1995 TO: Mayor and Members of the City Council FROM: Richard B. Helwig, City Manager ~ SUBJECT: Authorization for a $2 .25 Million 1995 General Obligation Bond Sale for the Purchase of Property and Golf Course Capital Improvements PURPOSE The purpose of this memorandum is to obtain authorization to seek sealed bids for $2, 250, 000 General Obligation Corporate Purpose Bonds . BACKGROUND As part of the action taken by the City Council at their September 25, 1995 meeting regarding the Elgin Community College/City of Elgin negotiations on Randall Road Access, Recreation and Economic Development Program, a General Obligation bond sale totaling $2 .25 million was contemplated. In order to move forward on the issuance of these bonds, City Council authorization is requested. Speer Financial will then begin to assemble the Official Statement (OS) which, upon its completion, will be distributed to potential buyers of the bonds . It is anticipated that the OS will be completed by mid-November for the bond sale scheduled on December 6, 1995. These bonds will be used to fund the purchase of the five model Westfield Townhomes located at Randall Road and College Green Drive, with the remainder earmarked for the 18-hole golf course development in the Sports Complex. The 1995 $2 .25 million G.O. issue was reviewed in light of the ratios developed within the debt policy adopted on October 26, 1994 . A comparison of the ratios are shown below: As of Type of Ratio 12/31/95 Median Ceiling Direct Net Debt Per Capita $569 $629 $754 Ratio of Net Debt Per Capita 1 . 46 1 . 70 1 . 92 Overlapping Net Debt Per Ca- pita 1, 142 1, 217 1, 460 Ratio of Overall Net Debt to Estimated Full Value 2 . 86 3 .20 3 . 84 Net Direct Debt as a Percentage of Operating Expen- ditures 15 . 8 N/A 17 . 5% Also attached is the proposed debt service schedule from Speer Financial . COMMUNITY GROUPS/INTERESTED PERSONS CONTACTED Elgin Community College, Speer Financial . FINANCIAL IMPACT Retirement of these bonds has been taken into consideration as part of the 1996-2000 Financial Plan and will be budgeted accordingly. The ratios outlined in the debt policy are well within the prescribed limits . The bonds will be utilized to fund the purchase of model Westfield townhomes and golf course improvements . LEGAL IMPACT All future actions should continue to be coordinated with bond counsel . RECONd-ENDATION It is recommended that the City Council authorize proceeding with the sale of $2, 250, 000 General Obligation Corporate Purpose Bonds . R,e,,spectfully submitted, J mes R. Nowicki finance Director 1 i3 Richard B. Helwig City Manager JRN: daw Attachment voivoia.o _ 11:L1 Q 131L 346 8833 SPEER FINANCIAL 16 002/002 CITY OF ELGIN, KANE AND COOK COUNTIES, ILLINOIS S2,250,0DO General Obligation Corporate Purpose Bonds, Series 1995A Related to ECC Project DEBT SERVICE SCHEDULE DATE PRINCIPAL COUPON INTEREST TOTAL P+I 1/01/1996 - 1/01/1997 301D00.00 4.250% 167,669.58 197,669.58 1/O1/1998 80,000.00 4.400% 117,080.00 197,080.00 1/01/1999 85,000.00 4.500% 113,560.00 198,560.00 1/01/2000 85,000.00 4.600% 109,735.00 194,735.00 1/01/2001 90,000.00 4.700% 105,825.00 195,825.00 1/01/2002 95,000.00 4.800% 101,595.00 196,595.00 1/01/2003 100,000.00 4.900% 97,035.00 197,035.00 1/01/2004 105,000.00 5.000% 92,135.00 197,135.00 1/01/2005 110,000.D0 5.100% 66,885.00 196,885.00 '► 1/01/2006 115,000.00 5.200% 81,275.00 196,275.00 1/01/2007 120,000.00 5.300% 75,295.00 195,295.00 1/01/2008 125,000.DO 5.400% 68,935.00 193,935.00 1/01/2009 135,000.DO 5.450% 62,185.00 197,185.00 1/01/2010 140,000.00 5.500% 54,827.50 194,827.50 1/01/2011 150,000.00 5.550% 47,127.50 197,127.50 1/01/2012 160,ODO.00 5.600% 38,802.50 198,802.50 1/01/2013 165,000.00 5.650% 29,942.50 194,842.50 1/01/2014 175,000.00 5.700% 20,520.00 195,520.DO 1/01/2015 185,000.00 5.700% 10,545.00 195,545.00 TOTAL 2,250,000.00 1,4W 874.58 3,73C,874.S8 YIELD STATISTICS Bond Year Dollars................................. S27,237.50 Average Life...................................... 12.106 Years Average Coupon.................................... 5.4368961% Net Interest Cost (WIC)........................... 5.4368961% True Interest Cost (TIC).......................... 5.3982856% Bond Yield for Arbitrage Purposes................. 5.3982856% All Inclusive Cost (AIC).......................... 5.3982856% IRS FORM 6038 Net Interest Cost................................. 5.4368961% Weighted Average Maturity......................... 12.106 Years Speer Financfal, Inc. FILE a J:\MUNEXP\DATA\ELGIN-city for ecc Public Finance Consultants 6/ 6/1995 11:10 AM Resolution No. 95-248 RESOLUTION AUTHORIZING INVITATIONS FOR SEALED BIDS FOR $2 ,250, 000 GENERAL OBLIGATION CORPORATE PURPOSE BONDS, SERIES 1995 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ELGIN, ILLINOIS, that Speer Financial , Inc . be and is hereby authorized to solicit sealed bids for $2 ,250, 000 General Obligation Corporate Purpose Bonds, Series 1995 , for the objects and purposes described in Exhibit A, a copy of which is attached hereto and made a part hereof by reference. Kevin Kelly, Mayor Presented: November 8, 1995 Adopted: Vote: Yeas Nays Recorded: Attest: Dolonna Mecum, City Clerk Exhibit A Project Description Amount GENERATE CAPITAL IMPROVEMENTS Golf Course $ 1, 500, 000 Westfield Homes Property Purchase 750, 000 TOTAL $ 2 ,250, 000