HomeMy WebLinkAbout5B1 Budget Request (Library Bonds DSR)
Redevelopment Commission Agenda Item
DATE: 09/30/2020
FROM: Amanda Pietsch
SUBJECT: Budget Request – Library Bonds DSR
Funding Source* (circle one) River West; River East; South Side; Douglas Road; West Washington; RDC General
*Funds are subject to the City Controller's determination of availability; if funds are unavailable, as solely determined by the City Controller,
then the authorization of the expenditure of such funds shall be void and of no effect.
Purpose of Request:
In 2018 the Commission approved Resolution No. 3462, authorizing the payment of debt service
upon issuance of Library Bonds (Community Education Center) anticipated in 2021 from RW TIF.
Due to current market assumptions regarding interest rates, and progress of the Library project,
we have determined it is in our best interest to issue the Library Bonds now rather than waiting
until 2021.
The financing model for these Bonds requires a debt service reserve (DSR) be funded in an
amount equal to the maximum annual debt service (MADS) of the Bonds. There are multiple
options to fund this requirement, such as paying the DSR out of Bond proceeds, obtaining a
surety policy, or funding with current cash reserves. Since RW TIF has strong cash reserves, we
are requesting budget of $400,000 to pay the DSR with cash at closing of the Bonds (currently
anticipated to be end of October). Paying the DSR with cash will decrease the par amount of
Bonds needed and will result in lower overall interest costs.
INTERNAL USE ONLY: Project ID: PROJ ;
Total Amount – New Project Budget Appropriation $_______________;
Total Amount – Existing Project Budget Change (increase or decrease) $_______________;
Funding Limits: Engineering: $_____________________; Other Prof Serv Amt $_______________;
Acquisition of Land/Bldg (circle one) Amt: $___________; Street Const Amt $________________;
Building Imp Amt $_________; Sewers Amt $_________; Other (specify) Amt $ ________________
_________________________Pres/V-Pres
ATTEST: __________________Secretary
Date: ____________________
APPROVED Not Approved
SOUTH BEND REDEVELOPMENT COMMISSION