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Joint Project Area Bonds <br />Apri14, 2008 <br />Page 2 of 2 <br />professional consultants to assist in the issuance process. Staff has assembled a team of <br />professionals to assist the City and the Agency staff with the issuance process. The key <br />members of the financing team and their roles follow: <br />E. Wagner & Associates .................... Financial Advisor <br />Jones Hall ..........................................Bond Counsel/Disclosure Counsel <br />Urban Analytics, LLC ....................... Tax Increment Consultant <br />US Bank National Association ..........Trustee <br />Financing Plan <br />The 2008 Bonds will be thirty year serial and term bonds having a total par value no greater than <br />$35 million and a total interest cost estimated to be less than 6%. Debt service on the 2008 <br />Bonds will be paid from tax increment revenues generated by the Joint Project Area. The Project <br />Area generates tax increment revenues of which approximately $2.4 million in FY 2007/08 are <br />available to make the debt service payments on the 2008 Bonds. The maximum annual debt <br />service on the 2008 Bonds is estimated to be $2.2 million. <br />The sources and uses of funds follow: <br />Sources of Funds. Amounts Uses of funds ~. Aa~QUnts <br />Bond Proceeds at Par $33,255,000 Capital Project Fund $30,000,000 <br />Debt Service Reserve fund 2,239,307 <br />Underwriter's Discount 332,550 <br />Bond Issuance Premium 423,143 <br />Costs of Issuance Fund 260,000 <br />Total Sources of Funds $33,255,000 Total Uses of Funds $33,255,000 <br />Financing Schedule <br />The following is the preliminary financing schedule: <br />Date of: Description of Activity <br />June 2 Council and Agency Board Adopts the Resolutions Authorizing Sale of <br />Bonds and Approval of Legal Documents <br />June 3 Print Notice of Sale of Bonds in Bond Buyer <br />June 3 Print and Mail Preliminary Official Statements <br />June 18 Open Bids and Award Sale of Bonds <br />July 2 Bond Closing-Delivery of Bond Proceeds to the Agency and Payment of a <br />portion of the Tax Increment Funding Obligation <br />CONCLUSION <br />Staff requests the Finance Committee recommend City Council and Redevelopment Agency <br />approval of the resolutions and necessary bond documents to issue Joint Project Area Tax <br />Allocation Bonds in an amount not to exceed $35 million. <br />G:\DEPT10ffice of Business Development\Files RDAUoint Project Area\2008 Bonds\StaffRptFinanceCommittee4-15-08.docx <br />