M-8 - Finance Plan Tiffin GO 2022A

Issue Overview Purpose Proceeds from the Bonds will be used to finance improvements to a public works building, the acquisition of land, the purchase of a fire truck, and the purchase of other public vehicles. The Bonds have been sized based on City staff estimates. The table below contains the sources and uses of funds for the bond issue. Land Other Public Issue Public Works Purchase Fire Truck Vehicles Summary Sources Of Funds Par Amount of Bonds $1,530,000.00 $715,000.00 $280,000.00 $230,000.00 $2,755,000.00 Total Sources $1,530,000.00 $715,000.00 $280,000.00 $230,000.00 $2,755,000.00 Uses Of Funds Total Underwriter's Discount (1.250%) 19,125.00 8,937.50 3,500.00 2,875.00 34,437.50 Costs of Issuance 8,830.12 4,126.50 1,615.97 1,327.41 15,900.00 Deposit to Project Construction Fund 1,500,000.00 700,000.00 275,000.00 225,000.00 2,700,000.00 Rounding Amount 2,044.88 1,936.00 (115.97) 797.59 4,662.50 Total Uses $1,530,000.00 $715,000.00 $280,000.00 $230,000.00 $2,755,000.00 Authority The Bonds will be issued pursuant to the authority of Code of Iowa, Section 384.24A. Structure The Bonds have a max principal and interest payment in fiscal year 2023 not to exceed $100,000 based on available City cash. The public works portion of the bonds has a max principal and interest payment of $120,000 in fiscal year 2024 and 2025 with level debt service from 2026 through 2038. The acquisition of land, the purchase of a fire truck, and the purchase of other public vehicles portions of the bonds have a combined maximum principal and interest payment of $280,000 in fiscal year 2024. The other vehicles portion of the bonds has level debt service from 2025 through 2029 and the acquisition of land and fire truck portions have level debt service from 2025 through 2034. The proposed structure for the bond issue and preliminary debt service projections are illustrated in Attachment 1. Issuing Process The City has engaged Northland to act as underwriter for the Bonds pursuant to federal securities regulations. Northland will purchase the Bonds in an “arm’s length” negotiated sale. The calendar of events for the issuing process can be found on page 3. Underwriter: Northland Securities, Inc., Minneapolis, Minnesota Bond Counsel: Dorsey & Whitney LLP, Des Moines, Iowa Paying Agent: UMB Bank, National Association, Des Moines, Iowa Northland Securities, Inc. Page 2