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Discover the details of the City of Blue Earth, Minnesota's public project revenue bonds, series 2006B, and the G.O. refunding bonds, series 2013A. Explore the financing options, repayment schedule, interest rates, and potential savings.
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City of Blue Earth, Minnesota Public Project Revenue Bonds Series 2006B - Refunding January 22, 2013
Public Project Revenue Bonds, Series 2006B • Original Par Amount: $1,185,000 • Financed construction of public safety facility • EDA owns facility and leases to City • Only financing option available at the time • Final maturity date: February 1, 2027 • First redemption (early payment) date: February 1, 2013 • Principal amount outstanding: $940,000 • Average coupon on outstanding maturities: 4.7%
G.O. Refunding Bonds, Series 2013A • 2006 statutes changed to allow G.O. Bonds for public safety facilities (M.S. 475.521 CIP Bonds) • Principal amount of refunding: $995,000 • Principal and interest outstanding: $950,895 • Cost of Issuance: $32,000 • Underwriter's Discount (Fee): $9,452 • Round to $5,000 Increment: $2,652 • Keep same repayment schedule (2027) • Estimated interest rate: 2.0% • Estimated present value savings: $149,000 • Savings are net of all financing costs
M.S. 475.521 Capital Improvement Plan Bonds • Allows cities to offer general obligation without a referendum. • Must hold a public hearing to approve plan and bonds • Subject to 30-day reverse referendum • Never been used on refunding bonds • Requires two-thirds majority vote • Statutory limit on amount of G.O. CIP Bonds • City is well below the limit
