HomeMy WebLinkAbout2.a. Public Works Building Financing , , CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR DISCUSSION
COMMITTEE OF THE WHOLE
DATE: January 13, 1999
AGENDA ITEM: Public Works Building Addition Financing AGENDA NO.
a. � -
PREPARED BY: Bud Osmundson %�
City Engineer/Public Works Director
ATTACHMENTS: December 1 Sth Executive Summary with
attachments; Cash on Hand Report
This item is on the agenda for Council consideration of the Public Works Building Addition financing. This
item was pulled from the December 15, 1998 City Council meeting for discussion at this workshop. As
explained in the December 15, 1998 Executive Summary the purpose of borrowing money from the City Sewer
Core Fund is to save money in bonding issuance costs. Staff worked with Springsted, Inc.,the City's Financial
Advisors and Briggs &Morgan the City's Bonding Counsel on this issue. This type of borrowing is done by
other cities for similar projects.
At the December 15, 1999 meeting questions were raised on how the City Core Fund is replenished. As of
December 31, 1998,the Sewer Core Fund, Fund No. 606, has a balance of 1.6 million dollars. This Core Fund
is established to pay for trunk faciIities, such as lift stations or larger than normal pipes for the City sewer
system. Connection Charges, called the SAC fees, are collected with each building permit which are dedicated
to this account. In 1998 the Connection Charge was $1,310 per SAC unit as determined by the Met Council and
this resulted in income to this Core Fund of$279,470. This was based on approximately 190 new building
permits in 1998. This compares to income of$167,400 in 1997 for 138 units. In 1999 the Connection Charge
is to be $1,375 per SAC unit which is a 5%increase over 1998 as recommended by the 1994 Utility Rate Study.
Also of concern were future outlays from the Core Fund. In the 10-Year CIP the project that will affect this
fund considerably is the Brockway Draw Trunk Sanitary Sewer which will extend from Biscayne Pointe to the
Kelley Trust"Daley Farm"property north of the Community Center in the $300,000 - $400,000 range. The
only other large expenditure from the Core Fund will be providing services to the "North Central Study"area
which is�•ery uncertain at this time.
Staff can review more of the details at the meeting and will be available to answer any questions you may have.
If Council is in favor of this method of financing, we can return to the City Council at your earliest convenience
with the recommendation. Staff is recommending that the City bonow funds in this method for this project.
RECON�IENDED ACTION NOTES:
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION � ,
CITY COUNCIL MEETING DATE: December 15, 1998
AGENDA ITEM: Public Works Building Addition Financing AGENDA SECTION:
Old Business
PREPARED BY: Bud Osmundson AGEND/�� � 7 (�
City Engineer/Public Works Director � � ��
ATTACHMENTS: Resolution, Loan Data and Cost/Funding APPROVED BY: �i �
Summary V���
This item is on the agenda for Council consideration of the funding for the Public Works
Building Addition. Staff is proposing that instead of borrowing the money from a private
vendor, such as a bank or bonding company, that we borrow the money from the Sanitary
Sewer Core Fund. This funding mechanism has been discussed with Springsted, Inc. and
our bonding counsel, Briggs & Morgan. By borrowing from the enterprise fund the City
would save $10,000 - $15,000 in issuance costs. .
The attached Cost/Funding Summary shows the estimated total costs, the proposed
funding and the fund balance summaries if the action is taken tonight. Briggs & Morgan
authored the attached resolution and advised the Finance Department on the interest rate.
Staff recommends that the action be taken as stated below.
RECOMMENDED ACTION: MOTION TO ADOPT A RESOLUTION AUTHORIZING THE
BORROWING OF MONEY FROM THE SEWER CORE FUND.
COUNCIL ACTION:
4
� _
. .
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 1998 -
RESOLUTION AUTHORIZING THE BORROWING OF
MONEY FROM THE SEWER CORE FUND
WHEREAS, the City Council of the City of Rosemount, Minnesota(the "City"), has
heretofore determined and declared that it is necessary and expedient to authorize the
borrowing of funds from the City's Sewer Core Fund in the amount of$548,337.30 to
finance the construction of an expansion to the City's public works facility.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Rosemount,
Minnesota, as follows:
The City hereby authorizes the borrowing from the Sewer Core Fund in the amount of
$548,337.30. The principal amount borrowed shall be repaid to the Sewer Core Fund
over a period of twenty years, together with interest to accrue from January 1, 1999, on
the unpaid principal amount borrowed at the rate of�percent per annum. The
estimated repayment of principal and interest to be repaid to the Sewer Core Fund is
set forth on Exhibit A attached hereto.
. .S•0
ADOPTED this 15th day of December, 1998.
Cathy Busho, Mayor
ATTEST:
Susan M. Walsh, City Clerk
Motion by: Seconded by:
Voted in favor:
Voted Against: _
t i
City of Rosemount
2875145th Street West
Rosemount,MN 55068
(651)423-4411 fax
LOAN DATA -
Lender Name Rosemount Sewer Core Fund(For P.W.Building Expansion)
Basic Loan Information
Amount $548,337.30 Annual Interest Rate 5.00%
Beginning of Loan 1/1/99� Length of Loan,Years i 20
Payments Per Year I 1
Payment Information
Total Payments 20 Calculated Payment $44,000.00
Entered Payment � �
Summary Information
Total Paid ($880,000.07) Interest Paid ($331,662.77)
- LOAN AMORTIZATION TABLE -
What is the Loan Amortiza0on Table Sheet?
Date Lender Name
12/10/98 Ros�ount Sewer Cae Fund(For P.W.Building Expan ion)
Annuat
Pmnt Start of Interest Scheduled Scheduled Interest Principal Additional
# Period Rate Balance Actual Baiance Payment Portition Portion Principal
1 01/99i 5.00%' S48,337.30 548,337.30 (44,000.00), (27,416.87) (16,583.14)
2 01/00' 5.00%' 531,754.16 ! 531,754.16 (44,000.00)i (26,587.71) (17,412.30)
3 01/01 5.00%' 514,341.87 � 514,341.87 (44,000.00); (25,717.09)' (18,282.91)!
4 01/02 5.00% 496,058.96 496,058.96 (44,000.00)j (24,802.95) (19,197.06)'
5 01/03 5.00%` 476,861.90 476,861.90 (44,000.00); (23,843.10) (20,156.91):
6 01/04 5.00%'. 456,704.99 456,704.99 (44,000.00)! (22,83525): (21.164.75)'
7 j 01/05 5.00%' 435,540.24 � 435,540.24 (44,000.00)I, (21,777.01) (22,222.99)
8 01/O6 5.00%; 413,317.25 j 413,317.25 (44,000.00)' (20,665.86) (23,334.14)
9 01/07 5.00%': 389,983.10 j 389,983.10 (44,000.00); (19,499.16) (24,500.85) '
10 I 01/08j 5.00%; 365,482.26 � 365,482.26 (44,000.00)I (18,274.11)', (25,725.89).
11 01/09 5.00�o; 339,756.36 � 339,756.37 (44,000.00). (16,987.82). (27,012.19)
12 01/10 5.00%! 312,744.18 j 312,744.18 (44,000.00), (15,63721)' (28.362.79)
13 , 01/11 5.00°/a' 284,381.38 � 284,381.39 (44,000.00)i (14,219.07)' (29,780.93) �
14 01/12'� 5.00%' 254,600.45 j 254,600.45 (44,000.00); (12,730.02) (31,269.98)
15 i 01/13i 5.00°/0' 223,330.47 ; 223,330.47 (44,000.00)I (11,166.52) (32,833.48)
16 � 01/141 5 00% 190 496.99 I 190 496.99 (44,000.00); (9,524.85). (34,475.15).
� 17 � 01/15�� 5.00%' 156,021.84 I 156,021.84 (44,000.00)� (7,801.09) (36,198.91)
18 01/16, 5.00%' 119,822.92 119,822.92 (44,000.00)i (5,991.15) (38,008.86)
19 01/17 5.00%; 81,814.07 � 81,814.07 (44,000.00) (4,090_70) (39,909.30);
20 , 01/18 5.00%', 41,904.77 41,904.77 : (44,OOU.00) (2,095.24); (41,904.77),
Insert Fine Print Nere
7 4� .. � . . .. . .. �
12-10-98
PUBLIC WORKS BUILDING ADDITION
COST/FUNDING SUMMARY
A. Cost:
Amount
Contract/Permit 5665,833
Contingency (est.) 12,033
Project Management (est.) 10,000
Testing Services (est.) 4 5 2
TOTAL 5692.448
B. Funding:
Building CIP S 90,000
Loan 548,337
Water Core (est.) 27,055
Sanitary Sewer Core (est.) 27.056
TOTAL 5692.448
C. Fund Balance Summary (as of 1 1-30-98)
Fund Batance as of Charges Ending Fund
11-30-98 Balance
Building CIP (#202) $119,699 590,000 529,699
Sanitary Sewer Core S 1 ,549,120 5548,337
(#606) S 27,056 5973,727
Water Core (#605) $521 ,506 527,055 5494,451
I
I ,
�O a�0 l?Ol O? l7 1ff 1q c0 N tff<1n O m m'p l7 f tq m� Ol e0 N N N N PJ N iD N q N O
�1717 N 1�1bNh< OaD l'1 1d0/��01� aDNO 1n O Y O O aD0 _N OA
t0 1�.-C C m m fV eC A P�!�fV h �p h�1�� O 1C O R� tM fV Hl h f0 Y O aD Vf I�f0� 1Cl
3 'p11D O fV 01<1n1�N N Of00 Of0 OA 101q1.O0 tOfpA � p1 M O N NM NQiA n
O f001 OA eOr-000 �D�If O17t�1 l7t'7mb01 /7mN�O Qlm IpN10 t0 b m �I11 t0 (O tD b h N
1-� R O v01p'NOi 01D Of OQ.-v h�NAO A ���00 hNtD � O Q1 N<' m<m 1q tp
���N 171D N �PmA� A/700v N�vv 00! 1� � a0� t0 a0 C �p
t0 N� N�? O1 m f0 1n t0 �7 l7 (O
N
M Op Op Op O S O O O O O O 1q a�D 1n 1� tCl O O O O Op O W q
. C O pp p O O O O O O O O O W N 1n O a�0� O pS O O O O aD A
� o�p 1ff� mN �a�On � S� O��(p N�e`�'f �1p m a�D� a�D�p� �
� I�j N� N l7 � 011��0 1n4)tD NN
M
� R
CD R�O t+7�p e7 Y 19��ff aD N iff�N O O�O+'O Pl v e Pf o ip Of lh N N N N l7 1n tD N aD N t0
mOaDt?Of OYm�'7�'7N h1nNh< O� P') b0)Oe00f� 17Y01 OaD�f1 YO OaDO 1�ID1�
C m 1:�C aD O fV aC 1� 1�O�P!V tp� IG h�p O/.� tC�q C Y tC aD O t0 �.�} � t0 R �f a0 e7 O tD R O
py 'N O�N R 01'�1�N LL') 7tO17 �C''�OA 4]u�1�mv1[) tOf�O � e� 1")O 'N C� N aD 1�eh 01
L �-O f0 Of�f�aD O O Q f0�O l7 �O 10 O l7 m N N W t0 Y O O !9 c0 10 Ql Yl m t0 a0 1n 1p R
A 1/f tO70i�Of O'Nm O t0 Oi OO�b If7 Nh0 h t7�m O .-00 �O17� OOf NO�['J t0 t m1[f Oi
q2 <Vl7 h t7 N 170 v LV��� "' 1'1 ON� � l7 N
U v v v
N e7�1A{p 1�610�O�NP1'�fDhtOQ1p NPff 1qm1�0010 Ne0 1f1�p h O� ��f 1q p
y O O O O O O O O O N N N fV N N N fV N N 17!7 p p O O p O N N O
Cx <ROY'YYOfO<OY�tR?V 70 V ffffrYf V YffO fOtOtO fDfO f0 f0t0 f0 fDfD fDiDm� M
� �
F
m�
�N
N N��i! t0 � A m m m
V N fD
� � Q O N# Q � � ^ N� � Q! O�Ol
p� Q W O! �ik aa n �N =^ 0 U W O!W
(V N�
a N a�n��N m N� Q Q H O N N�c p m L a l� � � � U .
C �ik 1A yA Q Q�N s C �C d�m ��NLd Og O W m �m�
o �Lx� �'�4ao� a...9 t n � mow oa�oE a= u ia mR� �
n ga.� "�T�cao (1�$ 2`> "am ac ° ' � �� � LL
N,+.o " 4 �wcam E°� � ?�rco � oa � c �Q o ` � € € �'
N e�a > t � �`CYN mccnNaoa �,qocc 9aca c °' �
01 2 tQ y L� it d d N R E�Y_L C—d's!n � � �W E . � � O O O l0 �
G QUb m� >tvd o yN�Q�v� °9 �.9�`o a � cc ti �2N tAN� ae
� VoQ�� noL�dycWcyoFLN� a�_$ ca^e��i �XQ ��= o � > > > > m oai
�i o�� f0 a E?o o�c 2`v �-c �N�u�'� �t a � oW'c i i LL j � �� m m a�i m a�i �R m
m$ mVom >� �al4aoo�oO� oQ��.6 go�oaU�N y�m ti�� A 'm a'rma�i � m�
�9o�Namacg � �a �mm "c�amcoaUa c� � __ � m m 3� ��� � '�
°' y� � �Y �y `� om�* c `0 `� om�� c °�a �C '�� `� 5�3 v c g dd dOd a�tio
tE��Y ��`a �omm ��= �S�eu, ���e^EY �� oomA m `m € d ` € (7C� C9C�C� mm mm
F- ,o p c� n� c a c Z m d Q u � �a uE�m$ m 2 p�... c m
. F-� � O o(A �L� � Q m�S c�L d fA e+ � m L C W 0 p—•� e0 o p p� V t0 � O W o fn N (A!n!/� t0 m m
j0� �minU2Um�mC9S�2NLLUm(D�NWLL3�mwo3c9za� 3v�i� 3m�n o0 00o m3��
o a o°f,
W� ,'
OZ �
�a d
�_� NNNtOp�m/7m17 <Oh ho t01qmA ���1�01 W/7Q�NOMaO t0 W W O A
OZ e'�MQl�aONaD<l7N t000 m1�1qNiD0, PfVfp��O/7NOi17N1�ON l7 CN1�
y� (�j q m�O N M N�OC V 00� t�0<�01Nm OOifl�?N'�0N B�7 t00< �C O
F= d O NYf�O01 W l7 (V� Int001 NtraOafNOf W ONO01.- I�fOI")OaDOaD Y7 V l'7
h�OM V OiP��Dtq P9i0fV 01nf.Q�O� h1�fVOiNm01O ANc7Nt0 tOeCN
. . V ya O F� � f010a1qD ��O P7 t9tOf�PN^ 0007tOmaD��ow�oor.� ro
� .- •- N�-I�NNPf�N�1n t90� N P
(� N � �
� N O O 1n O 1A O O O S S O O S O O N�O O O O O O O Q O O O O
C �O 8 Oi aopi Y Pi O pp C Cpp O O m fV O m O O O c�yV Op O Op C
sF � O O N �D�N O O O O S O S O O v O O M S S O O O N O O O O
N H pp O+ O�f7p O t0pp O C OOC O01 OOp c0 O OOO
O O tntn� Np�tf7 M �tDlnO � �mm�fD(D c0 NO tOM 1� tD
C p� W U7 N� N.-t0^NPt�N tne7 S.- N P
O M ONi�l7 N a�D�e'�7 N D�9,Y O �47NNf0 m i�NhmO P�9.hONi.t��J NA(�D N M v NA
C CV Y fV t0�p 1�<'C O N O� fC m!�) fV O C C m h O f�c7 fV N �p p pf fV Qi I�
�� N S a01n O+af l")�1 OOt7 t00 m m P m171�v c7 tC�tDh {+�p Y a0 C O
L C �V h O t0 W t000� h ODOi Nt�cOmNt7 'UO af Of 011�.-AtDM�t00 W ifl�t tl1
n N aO/7'70 h�0� l'�tON eG1qNm � 1�I�.�l7vN aDOi �fD<N N� t0 W N
A S � � .-
C� u�
N N f9 1lf tDh W O N O Ne7 NP70tnfDAe00f O NM N M<
� 0000 p00p N NN eYPff 000 NNNNN NNNN/7t0 t7/7� aD e0ep 07
'� �N NR N NNN N NN NNN/7c017 17O1t�MNf 17t�1 M MMM(O{7(h 07 c7{7 P1
W
Q Q�Q m Q Q Q m� Q m V W Q �
N t�Of T A tp f���N e0 a0 t0 N Q�D
� O m m 0/O1 C/O!01 01 O!V W W O) W n{�
� �m m0��O�mOI^Of Ol�Ol W^ � �� �
W ��
C � Q O�l �tl �9 N� y.qi � � �..y..�.. Ol m� Ol
a g g� 9� m�'p ��R—��� �� �� y � � � �mW�
� y LL V' � j tL� m�� ' �C�� � �� �y � �C � � � �.�+p�j C
f=�i C� � dLL LLm qU 0C > >�> > > > > > >CO > > > �'C W m
m � L°� �� L o m Q���.Q nnnnnn$n` ny nan � �QQ
o LL�g � c LL � �� aa ��gy EEEEEEEE�E� EEE g �aa
� m"�'-g.� �ga m �'o � '�° o'o�m 00000000000000 O WOO
LL ���a�� >u.V � �W ammVm� C9CJUUc7C1c�C�C9C�c1cJc9c7 CiFClCI
u. m�UaaQo� m Bimv � ottt tttttttttZZttt tttt
�o� g�� ���" �� � gmmmmo ommmmmmmmmdmmm mmmm
mtL �¢11 °�— � np yLL Q�y�NtAt� NtAN41WMtqNtq(qNytqtn ytONtA
m 7 O�J� l�0 m C m ��y q O LL O 0 O O o m m O m�d m m 0�i m m m O O O m aN
c�oam�n�a�w� c�u.c� oo�oco 0000000000000c o000