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Home My WebLink About1985 10-17 EBFAMEMORANDUM TO: Earle Brown Faun Advisory Group ' FROM: Brad Hoffman, Administrative Assistant ' DATE: October 15, 1985 SUBJECT: Meeting ' There will be a meeting of the Earle Brown Farm Committee on Thursday, October 17, 1985 at 7:30 a.m. at the Ccaumnity Center. Due to redecorating in City Hall we will be meeting in the gameroom area at the Conanunity Center. 1 ' SPRINGSTED INCORPORATED ' PUBLIC FINANCE ADVISORS ' 1 o October 1985 Mr. Brad Hoffman, Administrative Assistant City Hall 6301 Shingle Creek Parkway ' Brooklyn Center, Minnesota 55430 Re: Alternative Maturity Schedules ' Dear Mr. Hoffman: The enclosed maturity schedules are based on projected increment income ' derived from the increment already in place and the projected increment from the Target project. For your information, we have included a projection of expected increment income through collection year 2007. ' These maturity schedules are based on your request for "how much can the City issue based on the projected increment." The schedules prepared take into consideration a "cushion" of approximately $50,000 per year representing a ' surplus between required debt service at 105% and projected increment income. This is consistant with all past schedules prepared. The cushion will provide a reserve should inflation of the district not increase at a level of 3% per year or if the mill rates drop below 101 mills. ' I believe each of the maturity schedules are self explanatory as we have gone over similar schedules in the past. The net proceeds of each of the issues is computed as follows: Bond Issue $3,900,000 $5,250,000 Less: Capitalized Interest 204,117 509,617 ' Less: Discount 74,100 99,750 Net Bond Proceeds $3,621,783 $4,640,633 ' The respective amounts would be available to pay all eligible costs pursuant to the Tax Increment Plan. We note the net proceeds do not take into consideration any investment earnings which must be estimated when the ' arbitrage certificate is completed as part of the closing papers of the bond issue. Therefore, it would be incumbent upon your staff to demonstrate an expenditure need of $100,000 to $150,000 more than the net proceeds noted above. Should you need any further information, please contact me. Sincerely, i" Gerard B. Shannon ' Vice President cc: Gerald Splinter, City Manager ' Paul Holmlund, Finance Director 800 Osborn Building, Saint Paul, Minnesota 55102 (612) 222-4241 250 North Sunnyslope Road, Brookfield, Wisconsin 53005 (414) 782-8222 CITY OF BROOKLYN CENTER, MN PREPARED OCTOBER 16, 1985 $5,250,000 GENERAL OBLIGATION BY SPRINGSTED INCORPORATED TAX INCREMENT BONDS, SERIES 1985 A DATED: 12/ 1/1985 MATURE: 2/ 1 9.000% ANNUAL ANNUAL LEVY INCREMENT SURPLUS/ CUMULATIVE ANNUAL LEVY MATURE PRINCIPAL INTEREST TOTAL (105%) INCOME (-DEFICIT) SURPLUS LEVY (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 1985 1987 0 551,250 551,250 563,553 563,553* 0 0 0 1986 1988 0 472,500 472,500 485,904 485,905* 1 1 0 1987 1989 0 472,500 472,500 496,125 545,710 49,585 49,586 0 1988 1990 50,000 472,500 522,500 548,625 577,463 28,838 78,424 0 1989 1991 60,000 468,000 528,000 554,400 610,169 55,769 134,193 0 1990 1992 100,000 462,600 562,600 590,730 643,856 53,126 187,319 0 1991 1993 140,000 453,600 593,600 623,280 678,554 55,274 242,593 0 1992 1994 185,000 441,000 626,000 657,300 714,293 56,993 299,586 0 1993 1995 240,000 424,350 664,350 697,568 751,104 53,536 353,122 0 1994 1996 295,000 402,750 697,750 732,638 789,019 56,381 409,503. 0 1995 1997 360,000 376,200 736,200 773,010 828,071 55,061 464,564 0 1996 1998 430,000 343,800 773,800 812,490 868,296 55,806 520,370 0 1997 1999 510,000 305,100 815,100 855,855 909,727 53,872 574,242 0 1998 2000 595,000 259,200 854,200 896,910 952,401 55,491 629,733 0 1999 2001 690,000 205,650 895,650 940,433 996,355 55,922 685,655 0 2000 2002 795,000 143,550 938,550 985,478 1,041,627 56,149 741,804 0 2001 2003 800,000 72,000 872,000 915,600 1,086,258 172,658 914,462 0 2002 2004 0 0 0 0 1,136,288 1,136,288 2,050,750 0 2003 2005 0 0 0 0 1,185,759 1,185,759 3,236,509 0 2004 2006 0 0 0 0 1,236,714 1,236,714 4,473,223 0 2005, 2007 0 0 0 0 1,289,197 1,289,197 5,762,420 0 2006 2008 0 0 0 0 1,343,255 1,343,255 7,105,675 0 TOTALS: f i $5,250,000 $6 ,326,550 $11,576,550 $12,129,899 $19,235,574 $7,105,675 - $0 BOND YEARS: 70,295 ANNUAL INTEREST COST: $6, 326,550 * INCLUDES CAPITALIZED AVERAGE MATURITY: 13.39 DISCOUNT (PREMI UM): $99,750 INTEREST OF $509,617 AVG. ANNUAL RATE: 9.142$ TOTAL INTEREST COST: $6, 426,300 (EXEMPT.FROM OVERLEVY) CITY OF BROOKLYN CENTER, MN PREPARED OCTOBER 16, 1985 $3,900,000 GENERAL OBLIGATION BY SPRINGSTED INCORPORATED TAX INCREMENT BONDS, SERIES 1985 A DATED: 12/ 1/1985 MATURE: 2/ 1 8.500% ANNUAL ANNUAL LEVY INCREMENT SURPLUS/ CUMULATIVE ANNUAL LEVY MATURE PRINCIPAL INTEREST TOTAL (105%) INCOME (-DEFICIT) SURPLUS LEVY (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) 1985 1987 0 386,750 386,750 399,053 399,053* 0 0 0 1986 1988 0 331,500 331,500 344,904 344,905* 1 1 0 1987 1989 140,000 331,500 471,500 495,075 545,710 50,635 50,636 0 1988 1990 180,000 319,600 499,600 524,580 577,463 52,883 103,519 0 1989 1991 225,000 304,300 529,300 555,765 610,169 54,404 157,923 0 1990 1992 280,000 285,175 565,175 593,434 643,856 50,422 208,345 0 1991 1993 335,000 261,375 596,375 626,194 678,554 52,360 260,705 0 1992 1994 395,000 232,900 627,900 659,295 714,293 54,998 315,703 0 1993 1995 465,000 199,325 664,325 697,541 751,104 53,563 369,266 0 1994 1996 540,000 159,800 699,800 734,790 789,019 •54,229 423,495 0 1995 1997 625,000 113,900 738,900 775,845 828,071 52,226 475,721 0 1996 1998 715,000 60,775 775,775 814,564 868,296 53,732 529,453 0 1997 1999 0 0 0 0' 909,727 909,727 1,439,180 0 1998 2000 0 0 0 0 952,401 952,401 2,391,581 0 1999 2001 0 0 0 0 996,355 996,355 3,387,936 0 2000 2002 0 0 0 0 1,041,627 1,041,627 4,429,563 0 2001 2003 0 0 0 0 1,088,258 1,088,258 5,517,821 0 2002 2004 0 0 0 0 1,136,288 1,136,288 6,654,109 0 2003 2005 0 0 0 0 1,185,759 1,185,759 7,839,868 0 2004 2006 0 0 0 0 1,236,714 1,236,714 9,076,582 0 2005 2007 0 0 0 0 1,289,197 1,289,197 10,365,779 0 2006 2008 0 0 0 0 1,343,255 1,343,255 11,709,034 0 TOTA,PS: $3,900,000 $2 ,986,900 $6,886,900 $7,221,040 $18,930,074 $11,709,034 $0 BOND YEARS: 35,140 ANNUAL INTEREST COST: $2,986,900 * INCLUDES CAPITALIZED AVERAGE MATURITY: 9.01 DISCOUNT (PREMI UM): $74,100 INTEREST OF $204,117 AVG. ANNUAL RATE: 8.711% TOTAL INTEREST COST: $3,061,000 (EXEMPT FROM OVERLEVY) Eli = m m = = = = = = m = m m m m