Loading...
HomeMy WebLinkAbout6.d. Public Works Building Addition Financing CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: January 19, 1999 AGENDA ITEM: Public Works Building Addition Financing AGENDA SECTION: Consent PREPARED BY: Bud Osmundson ' AGENDA NO_��� � � � City Engineer/Public Works Director � ATTACHMENTS: Resolution, Loan Data and Cost/Funding APPROVED BY: Summary 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 S 10,000 - S 15,000 in issuance costs. 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: 7 A' -� � CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 1999 - 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 20, 1999, on the unpaid principal amount borrowed at the rate of 5.0 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. ADOPTED this 19th day of January, 1999. Cathy Busho, Mayor ATTEST: Susan M. Walsh, City Clerk Motion by: Seconded by: Voted in favor: Voted Against: �� , � City of Rosemount 2875 145th 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 1/20/99 Length of Loan,Years 20 Payments Per Year 1 ! Payment Information Totai Payments 20 Caiculated Payment $44,000.00 Entered Payment Summary Information Total Paid ($880,000.07) Interest Paid ($331,662.77) � r ' � LOAN AMORTIZATION TABLE - What is the Loan Amortization Table Sheet? Date Lender Name 1/20/99 Ros�ount Sewer Core Fund(For P.W.Building Expan ion) Annual Pmnt Start of Interest Scheduled Scheduled Interest Principai Additional # Period Rate Balance Actual Balance Payment Portion Portion Principai I 1 12/99 5.00% 548,337.30 , 548,337.30 (44,000.00) (27,416.87) (16,583.14) 2 � 12/00 5.00% 531,754.16 531,754.16 (44,000.00) (26,587.71) (17,412.30)' ' 3 ; 12/01 5.00% 514,341.87 514,341.87 (44,000.00) (25,717.09) (18,282.91) ' 4 i 12/02 5.00% 496,058.96 496,058.96 (44,000.00) (24,802.95) (19,197.06) ' 5 12/03 5.00% 476,861.90 476,861.90 (44,000.00) (23,843.10) (20,156.91)� ' 6 � 12/04 5.00% 456,704.99 456,704.99 (44,000.00) (22,835.25) (21,16475) � 7 12/05 5.00% 435,540.24 435,540.24 (44,000.00) (21,777.01) (22,222.99)� ' , 8 12/06 5.00% 413,317.25 413,317.25 (44,000.00) (20,665.86) (23,334.14) ; 9 12/07 5.00% 389,983.10 389,983.10 (44,000.00) (19,499.16), (24,500.85)! ' 10 12/08 5.00°/a 365,482.26 365,482.26 (44,000.00) (18,274.11)' (25,725.89); � 11 12/09 5.00% 339,756.36 339,756.37 (44,000.00) (16,987.82)i (27,012.19) I ; 12 12/10 5.00% 312,744.18 312,744.18 � (44,000.00)� (15,637.21)', (28,362J9) i 13 12/11 5.00% 284,381.38 284,381.39 (44,000.00) (14,219.07) (29,780.93) 14 12/12 5.00% 254,600.45 254,600.451 (44,000.00) (12,730.02) (31,269.98) � 15 12/13 5.00% 223,330.47 223,330.47 (44,000.00) (11,166.52) (32,833.48) � 16 12/14 5.00% 190,496.99 190,496.99 (44,000.00) (9,524.85)' (34,475.15) ' i 17 12/15 5.00°/a 156,021.84 156,021.84 (44,000.00)i (7,801.09) (36,198.91)j ! 18 12/16 5.00% 119,822.92 119,822.92 (44,000.00) (5,991.15) (38,008.86) ' 191 12/17 5.00% 81,814.071 81,814.07 (44,000.00) (4,090.70); (39,909.30) I 20 12/18 5.00% 41,904.77 41,904.77 (44,000.00)� (2,095.24)� (41,904.77) Insert Fine Print Here