HomeMy WebLinkAbout2016-01-18-J04 GO Refunding CLN_Accept Proposalkf►4 V/aukee
V TWI P THE KEY TO GOOD LIVING
AGENDA ITEM:
CITY OF WAUKEE, IOWA
CITY COUNCIL MEETING COMMUNICATION
MEETING DATE: January 18, 2016
AGENDA ITEM: Consideration of approval of a resolution directing the acceptance of a
proposal to purchase $279,990 General Obligation Refunding Capital Loan
Notes, Series 2016
FORMAT: Resolution
SYNOPSIS INCLUDING PRO & CON: Acceptance of the attached proposal, is the next step to
completing the refunding of the Golf Course General Obligation Refunding
Bonds started in June of 2015. The action was delayed till January to ensure
the bonds are refunded with Bank Qualified (BQ) status. Charter Bank's
proposal provides an interest rate reduction of 1.00%. This is the final
refunding for the GO Bond, with final payment issued in June of 2020.
FISCAL IMPACT INCLUDING COSTBENEFIT ANALYSIS:
COMMISSION/BOARD/COMMITTEE COMMENT:
STAFF REVIEW AND COMMENT: Staff recommends approval of the $279,990 Golf Course
General Obligation Refunding Capital Loan Note, Series 2016
RECOMMENDATION: Approve the resolution.
ATTACHMENTS: I. Proposed Resolution
11. Charter Bank Proposal
PREPARED BY:
REVIEWED BY:
Linda Burkhart J
RESOLUTION 16-
RESOLUTION DIRECTING THE ACCEPTANCE OF A
PROPOSAL TO PURCHASE $279,990 GENERAL
OBLIGATION REFUNDING CAPITAL LOAN NOTES, SERIES
2016
WHEREAS, the City of Waukee, sometimes hereinafter referred to as the City, is a
municipal corporation duly incorporated, organized and existing under and by virtue of the
Constitution and laws of the State of Iowa; and
WHEREAS, it is deemed necessary that the City should enter into a Loan Agreement and
borrow the amount of $279,990 as authorized by Sections 384.24A and 384.25 Code of Iowa as
amended; and
WHEREAS, a proposal has been received from Charter Bank of Waukee, Iowa; and
WHEREAS, it is the intention of this City Council to enter into a Loan Agreement in
accordance with said proposal dated January 8, 2016.
NOW THEREFORE, BE IT RESOLVED, BY THE CITY COUNCIL OF THE CITY
OF WAUKEE, STATE OF IOWA:
Section 1. That this City Council does hereby accept the attached proposal of Charter
Bank of Waukee, Iowa, and takes additional action to permit the entering into of a Loan
Agreement.
Section 2. The Mayor and City Clerk are authorized and directed to proceed on behalf of
the City to enter into such Loan Agreement, to negotiate the final terms of a Loan Agreement to
take all action necessary to permit the entering into of a Loan Agreement on a basis favorable to
the City and acceptable to the Purchaser, and to proceed to meet the conditions of this accepted
proposal.
PASSED AND APPROVED this 18`h day of January, 2016.
Mayor
ATTEST:
City Clerk
(Attach Copy of Terms of Proposal)
ROLL CALL VOTE AYE NAY ABSENT ABSTAIN
Shane Blanchard
Brian Harrison
Shelly Hughes
Larry R. Lyon
Rick Peterson
CHARTER i
January 8, 2016
City of Waukee
Mr. Tim Moerman, City Manager
230 W Hickman Road
Waukee, IA 50263
Dear Mr. Moetman:
Thank you for your continued banking relationship with Charter Bank. As you know, we modified the GO
and Revenue notes on the golf course in 2015 to extend both notes for 2 years and reduce the interest rates
by 0 25%. At the time of modification, the anticipation for both notes were to revisit the continued tax
exempt status in 2016 based on the amount of bank qualified debt issued by the City. Based on our
understanding that we can extend the loans out for a longer period of time and keep the tar exempt status,
we agree to reduce the interest rates down further to the agreed upon amount from our meeting in 2015.
The general terms and conditions are as follows:
TERM NOTE # l: Revenue Bond
Original Loan Amount: $925,000.00
Current Principal Balance: $572 339.13
Accrued Interest thru 2/19/16: $4,807.65
Maturity Date: June 1, 2017
Current Payment Schedule: Semi-annual installments of $36,937.51 due on June I" and
December I" beginning 12/1/2015 with final payment of all
remaining principal and interest due on 6/1/2017. Payments
based upon a 10 year amortization with a 2 year balloon.
New Interest Rate:
3.50%tar-exempt rate
Collateral:
Rights against the revenue profits generated by Sugar Creek
Golf Course operations and cash reserve account held at
Charter Bank.
Prepayment Penalty:
None
Extended Maturity Date:
December I.2020
Extended Payment Schedule:
Semi-annual installments of $35,399.28 due on June 1" and
December 1" beginning 6/1/2016 with final payment of all
remaining principal and interest due on 12/I/2020. Payments
based upon a remaining 9.5 year amortization with a 5 year
balloon.
TERM NOTE # 2: General Obligation Note
Original Loan Amount:
Current Principal Balance:
Accrued Interest thru 2119/16:
Maturity Date:
Current Payment Schedule:
$700,000.00
$279,989.64
S 1,959.93
June 1, 2017
Semi-annual installments of $33.925.18 due on June I" and
December 1" beginning 12/1/2015 with final payment of all
remaining principal and interest due on 6/l/2017. Payments
based upon a 5 year amortization with a 2 year balloon.
5526 N.W. 86TH STREET 150 S.E. GATEWAY DRIVE 455 - 6TH STREET, P.G. BOX 550
JOHNSTON, IOWA 50131 GRIMES, IOW,,, 501I t WAUKEE, IOWA 50263
(515) 331.2265 (515) 986.2000 (515) 987-1000
F ,�+ 331-3311 FAX:966.5963 FAX: 987-1909
New Interest Rate:
Collateral:
Prepayment Penalty:
Extended Maturity Date:
Extended Payment Schedule:
Conditions of the Commitment:
2.75% tax-exempt rate
None
None
June 1, 2020
Semi-annual installments of $33.089.55 due on June 1" and
December I" beginning 6/1/2016 with final payment of all
remaining principal and interest due on 6/l/2020. Payments
based upon a remaining 4.5 year amortization.
The Bank shall have received such other instruments, documents, and opinions as Bank shall reasonably
require to evidence and secure the loan and to comply with the provisions hereof and the requirements of
regulatory authorities to which the bank is subject. Included in other documents:
I. Copy of the Waukee City Council Meeting minutes showing the approval and acceptance of
said financing terms.
2. Corporate resolution designating who has the authority to sign the promissory notes and/or
note modifications to bind the City of Waukee.
3. In order to qualify for the tax exempt note. Charter Bank requires an opinion letter from the
City Attorney stating said loan will qualify as a tax-exempt loan asset for the bank in
accordance with the internal revenue service code.
4. Subject to the receipt and review of copies of the General Obligation Note and Revenue Note
by Charter Bank legal counsel prior to execution.
The intent of this letter is to communicate the general terms and conditions of the refinancing of existing
notes to the City of Waukee. Additional loan covenants, agreements, and conditions considered to be
standard for a loan to a municipality will be required as part of the final loan documentation and closing.
This summarizes our financing proposal for you. Please let me know of any questions or comments that
you might have regarding this proposal. Once the proposal is acceptable to you, we ask that you indicate
by signing below and returning the original copy of this letter to us.
Sincerely,
Greg Grote
Vice President
Accepted on this day of 2016
0
in
)ate: 0110812016 Charter Bank page I
wading Date: 02/19/2016
'irst Payment Date: 06/01/2016
Compounding: U.S. Rule
Period: 30/360
Prot Schedule: Sean -Annually
Principal:
279,989.64
Initial Interest Rate:
0.000%
Interest Rate:
2.750%
Pmt Amount:
33,089.55
'ayment Payment Payment Interest Principal Outstanding Equity
lumber Date Amount Amount Reduction Balance Built
1
06/01/2016
$33,089.55
2,160.20
30,929.35
249,060.29
$30,929.35
2
12/01/2016
$33,089.55
3,424.58
29,664.97
219,395.32
$60,594.32
3
06/01/2017
$33,089.55
3,016.69
30,072.86
189,322.46
$90,667.18
4
12/01/2017
$33,089.55
2,603.18
30,486.37
158,836.09
$121,153.55
5
06/01/2018
$33,089.55
2,184.00
30,905.55
127,930.54
$152,059.10
6
12/01/2018
$33,089.55
1,759.04
31,330.51
96,600.03
$183,389.61
7
06/01/2019
$33,089.55
1,32825
31,761.30
64,838.73
$215,150.91
8
12/01/2019
$33,089.55
891.53
32,198.02
32,640.71
$247,348.93
9
06/01/2020
$33,089.55
448.81
32,640.74
-.03
$279,989.67
2020
Totals:
297,805.95
17,816.28
279,989.67
Grand Totals:
297,805.95
17,816.28
279,989.67
his amortization schedule is provided to you for your convenience. The amortization may include estimates based upon information provided by you. Actual terms of
edit offered by us may vary from this amortization sa tedula The outstanding balance shown above will varyfrom your actual outstanding balance owed to the Bank
ecause of the timing of payments.
Page 1 of 1
CHARTER BANK
5526 NW 86TH ST
JOHNSTON, IOWA 50131
CITY OF WAUKEE
230 W HICKMAN RD
WAUKEE IA 50263-5004
Loan Payoff Statement
Loan Payoff for: Loan Number: 4000500863
CITY OF WAUKEE Date Quoted: Jan 08, 2016
230 W HICKMAN RD Payoff Good To: Feb 19,2016
WAUKEE IA 50263-5004 Method: 6/2
Collateral:REFI GENERAL OBLIGATION GOLF COURSE NOTE #-441857
Principal:
Interest To Feb 19, 2016:
Net Amount Due:
$279,989.64
$1,959.93
$281,949.57
Additional Information
One Day's Interest: $27.22
https://mwranay.fmwrdc.com/CLC_CLC1151/CLC 1151.aspx?&Action=PAY0FFSTATE... 1 /8/2016