HomeMy WebLinkAboutItem 06.mDate October 3, 2011 ,_ Item
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $2,385,000
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2011A
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Resolution
Authorizing Issuance and Sales of $2.385 million of G.O. Improvement Bonds, Series
2011 A.
Approval of the Resolution will result in the financing of Improvement Project 11 -02
which is the recoi structl of streets.
Ovprvip_w
The City Council, at its May 16, 2011 meeting approved the special assessments for
40% of the 2011 street reconstruction costs. The special assessments are levied over
a 20 years period at 4% interest. Contracts for the improvements were approved, by the
City Council at the June 6, 2011 meeting.
The remaining 60% of improvement costs are financed with property tax levies. The
various tax levy options were discussed by the City Council at the August 8, 2011 work
session. It was the consensus of Council to amortize the taxes over a 10 year period.
The 2011 improvement Bond was to be structured with a 9 year amortization with an
estimated $320,000 tax levy in 2012 and an estimated $150,000 per year tax levy in
subsequent years.
Actual tax levies will be based on bids received on November 7. Interest rates and final
tax levy are subject to market conditions at the time of the bid opening.
Primary Issues to Consider
• Schedule
• Call provisions
• Springsted Recommendations for Issuance of Bonds
Dennis Feller, Finance Director
Financial Impact: See attached budgeted: Yes Source: Taxes and Special Assessments
Related Documents (CIP, ERP, etc.):
Notes:
Date: October 3, 2011 Resolution No.
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $2,385,000
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2011A
BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota (the City), as
follows:
SECTION 1. PURPOSE It is hereby determined to be in the best interests of the City to issue
its General Obligation Improvement Bonds, Series 2011A, in the principal amount of $2,385,000
(the Bonds), pursuant to Minnesota Statutes, Chapters 429 and 475, to finance improvement
projects in the City.
SECTION 2. TERMS OF PROPOSAL Springsted Incorporated, financial consultant to the
City, has presented to this Council a form of Terms of Proposal for the Bonds which is attached
hereto and hereby approved and shall be placed on file by the Administrator. Each and all of the
provisions of the Terms of Proposal are hereby adopted as the terms and conditions of the Bonds
and of the sale thereof. Springsted Incorporated is hereby authorized, pursuant to Minnesota
Statutes, Section 475.60, Subdivision 2, paragraph (9), to solicit proposals for the Bonds on
behalf of the City on a competitive basis without requirement of published notice.
SECTION 3. SA MEETING This Council shall meet at the time and place shown in the
Terms of Proposal, for the purpose of considering proposals for the purchase of the Bonds and of
taking such action thereon as may be in the best interests of the City.
APPROVED AND ADOPTED this 3' day of October, 2011.
CITY OF LAKEVILLE,
Mark Bellows, Mayor
ATTEST:
City Clerk
•
slal
October 3 City sets sale date and terms
Week of October 31 Rating conference conducted
November 7 10 :20 a.m. Competitive proposals are receiver)
November 7 7:00 p.m. Council considers award of bids
Late November Proceeds are received
Call Provisions Bonds maturing 2/1/2022 and thereafter are callable
2/1/2021 or thereafter
City of Lakeville, Minnesota
Recommendations for Issuance of Bonds
General Obligation Improvement Bonds, Series 2071A
General Obligation Refunding Bonds, Series 201 I
The Council has under consideration the issuance of bonds to (i) fund street and utility improvement projects in
various areas of the City and (ii) refund two series of City general obligation bonds to achieve interest cost savings.
This document provides information relative to the proposed issuance. Complete terms of sale with bidder
information will be provided in a separate document.
KEY EVENTS: The following summary schedule includes the timing of some of the key events that will
occur relative to the bond issuance.
October 3, 2011
Council sets sale date and terms
Week of October 31, 2011
Rating conference conducted
November 7, 2011, 10:30 a.m.
Competitive proposals are received
November 7, 2011, 7:00 p.m.
Council considers award of bonds
Late November, 2011
Proceeds are received
RATING: An application will be made to Moody's Investors Service for a rating on the Bonds. The
City's general obligation debt is currently rated "Aa1" by Moody's.
THE MARKET: Performance of the tax - exempt market is often measured by the Bond Buyer's Index ( "BBI ")
which measures the yield of high grade municipal bonds in the 20th maturity year for general
obligation bonds and the 25t" maturity year for revenue bonds. The following chart
illustrates these two indices over the past five years.
BB125 -bond (Revenue) and 20 -band (G.0.) Rates fors Years
Ending 9122 72 01 1
6.5%
5:0%
4.5%
4.0%
3.5%
7 25 e��a was
t
& 4 � o �b om cmo� a s e 4 a o
- - -561 25Eond
°—° BB1205orii'.
Dates Prepared Pry Springsed Jncarparated
ringst l
POST ISSUANCE The issuance of these bonds will result in post- issuance compliance responsibilities. The
COMPLIANCE: responsibilities lie in two primary areas: i) compliance with federal arbitrage requirements
and it) compliance with secondary disclosure requirements.
Federal arbitrage requirements include a wide range of implications that have been taken
into account as your issue has been structured. Post - issuance compliance responsibilities
for your tax - exempt issue include both rebate and yield restriction provisions of the IRS
Code. In very general terms the arbitrage requirements control the earnings on
unexpended bond proceeds, including investment earnings, moneys held for debt service
payments (which are considered to be proceeds under the IRS regulations), and /or
reserves. The City expects to meet the 18 -month expenditure exception from rebate for
the Improvement Bonds. The proceeds of the Refunding Bonds will be spent within
90 days and thereby meet the 6 -mcnth expenditure exception from rebate.
Yield restriction provisions will apply to any unspent proceeds after three years and debt
service funds. These should all be monitored throughout the life of the issues.
Secondary disclosure requirements result from an SEC requirement that underwriters
provide ongoing disclosure information to investors. to meet this requirement, any
prospective underwriter will require the City to commit to providing the information needed
to comply under a continuing disclosure agreement.
Springsted currently provides arbitrage and continuing disclosure services to the City under
a separate contract. Contract amendments will be provided to City staff to add these
issues.
SCHEDULES We have included the following schedules for the Bonds:
ATTACHED:
Improvement Bonds - sources and uses of funds, estimated debt service and assessment
nuomie.
Refunding Bonds — preliminary feasibility summary, estimated debt service and estimated
savings.
SUPPLEMENTAL Supplementary information will be available to staff including detailed terms and conditions
INFORMATION AND of sale and information to assist in meeting post- issuance compliance responsibilities.
BOND RECORD:
Upon completion of the financing, a bond record will be provided that contains pertinent
documents and final debt service calculations for the transaction.
General Obligation Improvement Bonds, Series 2011A
(the 'Improvement Bonds ")
Description of Issue
PURPOSE: Proceeds of the Improvement Bonds will be used to finance various street and utility
improvement projects throughout the City.
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AUTHORITY: The Improvement Bonds are being issued pursuant to Minnesota Statutes, Chapters 475
and 429.
SECURITY AND The Improvement Bonds will be general obligations of the City, secured by its full faith and
SOURCE OF credit and taxinq power. In addition, the City will pledge special assessments against
PAYMENT: benefited properties. The Improvement Bonds will be paid from a combination of ad
valorem property tax levies and special assessments against benefited properties.
Special assessments in the amount of $1,006,683 will be filed in 2011 for collection
beginning in 2012 with 12 months of interest in the first year. The assessments will be
spread over a term of 20 years with equal payments of principal. Interest on the unpaid
balance of assessments will be charged at a rate of 4.0 %.
The City will be required to levy taxes to pay a portion of the debt service. The City will
make their first levy for the Improvement Bonds in 2011 for collection in 2012. Each year's
collection of taxes and assessments will be used to make the Auoust 1 interest payment
due in the collection year and the February 1 principal and interest payment due in the
following year.
STRUCTURING At the direction of the City, the Improvement Bonds have been structured with two
SUMMARY: components — an assessed portion and a tax levy portion. The assessed portion has been
structured around projected assessment income over a term of 20 years. The tax levy
portion was structured over a term of nine years with a levy of approximately $320,000 in
the first year and then reduced to approximately level annual tax levies of $150,000
through levy year 2019. Thereafter special assessment collections are estimated to fully
I
und annual debt service.
RISKS /SPECIAL The outcome of this financing will rely on the market conditions at the time of the sale. Any
CONSIDERATIONS: projections included herein are estimates based on current market conditions.
SALE TERMS AND Variability of Issue Size: A specific provision in the sale terms permits modifications to the
MARKETING: issue size and/or maturity structure to customize the issue once the price and interest rates
are set on the day of sale.
Prepayment Provisions: Improvement Bonds maturing on or after February 1, 2022 may
be prepaid at a price of par plus accrued interest on February 1, 2021.
Bank Qualification: Because the City will issue less than $10 million of tax exempt
obligations in 2011, the Improvement Bonds will be designated as bank qualified.
Genera! Obligation Refunding Bonds Series 201 7B
(the 'Refunding Bonds ")
Description of Issue
PURPOSE: Proceeds of the Refunding Bonds will be used to refund (i) the April 1, 2012 through 2021
maturities of the City's General Obligation State -Aid Street Bonds, Series 2001 C, dated
December 1, 2001 and currently outstanding in the aggregate principal amount of
$640,000; and (ii) the February 1, 2012 through 2015 maturities of the City's General
Springsted Page
Obligation Park Refunding Bonds, Series 2003B, dated March 15, 2003 and currently
outstanding in the aggregate principal amount of $1,565,000. These transactions are being
conducted as current refundings to achieve interest cost savings.
AUTHORITY: Statutory Authority: The Refunding Bonds are beina issued pursuant to Minnesota
Statutes, Chapters 475 and 162.
SECURITY AND The Refunding Bonds will be general obligations of the City, secured by its full faith and
SOURCE OF credit and taxing power. The Refunding Bonds will be paid from a combination of receipts
PAYMENT: from the City's account in the municipal state -aid street fund and ad valorem property tax
levies.
STRUCTURING
SUMMARY:
RISKS /SPECIAL
CONSIDERATIONS:
SALE TERMS AND
MARKETING:
At the direction of the City, the principal amortization of the Refunding Bonds has been
structured to result in up front savings for the Series 2001 C portion of the refunding and
even annual savings relative to the Series 2003B Bonds.
On February 1, 2012, the call date for the prior bonds, the City will use (i) funds on hand to
make the scheduled principal and interest payment due with respect to the Series 20036
Bonds and (ii) proceeds of the Refunding Bonds to pay the redemption price of the
Series 2001 C Bonds and Series 2003B Bonds. The City will begin realizing interest cost
savings and making debt service payments on the Refunding Bonds beginning with the
October 1, 2012 interest payment.
The table below identifies the issues to be refunded and approximate savings information.
Refunded
Refunded
Future Value
Present
PV Savings
Average
General
Principal
savings
Value
as % of PV
Annual Cash
Obligation
Savings
Refunded
Flow Savings
Issue
Debt Service
Series 2001C
$640,000
$93,383
$91,925
11.94l%
( $3,042
Series 2003B
$1,190,000
$46,530
$47,870
3828%
$14,170
I
These estimates are net of all costs associated with the refunding.
The outcome of this financing will rely on the market conditions at the time of the sale. Any
projections included herein are estimates based on current market conditions.
Variability of Issue Size: A specific provision in the sale terms permits modifications to the
issue size and /or maturity structure to customize the issue once the price and interest rates
are set on the day of sale.
Prepayment Provisions: Based on the short duration of the Refunding Bonds, and to avoid
possible negative pricing impacts, the Refunding Bonds will not be subject to redemption
prior to their stated maturities.
Bank Qualification: Because the City will issue less than $10 million of tax exempt
obligations in 2011, the Refunding Bonds will be designated as bank qualified.
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$2,385,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2011A GO Improvement Bonds - Issue Summary
Total Issue Sources And Uses
Dated 12/01/20111 Delivered 12/01/2011
Assessed
Portion
Sources Of Funds
Par Amount of Bonds .... .... ... ..._....
......_. $1,005,000.00
Other contributions .. ... ... _.......
..._.... -
Total Sources ................................... ...............................
$1,005,000.00
Uses Of Funds
Available for Project Costs ....... .........
......... 979,4'[3.58
Costs oflssuance ..._.....
..._.... 13,526.42
Total Underwriter's Discount (1. 200%) .............._....._..._.
12,060.00
Total Uses ..................... --- ... --...................................... $1,005,000.00
.u—?arrn con,......... l 1—, 11— ... . r r=ive ✓eon l " U".
Levy Portion Issue Summary
$1,380,000.00 52,385,000.00
14,667.00 14,66700
$1,394,667.00 $2,399,667.00
1,359,533.42 4338,947.00
18,573.58 32,100.00
16,560.00 28,620.00
$1,394,667.00 $2,399,667.00
Springsted Page 5
$1,006,683
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2011 GO Assessments
ASSESSMENT INCOME
Date
Principal
Coupon
Interest
Total P +I
12/31/2012
50,334.15
4.000%
40,267.32
90,601.47
12/31/2013
50,334.15
4.000%
38,253.96
88,588.11
12/31/2014
50,334.15
4.000%
36,240.58
86,574.73
12131/2015
50,334.15
4.000%
34,227.22
84,561.37
12/31/2016
50,334.15
4.000%
32,213.86
82,648.01
12/31/2017
50,334.15
4.000%
30,200.50
80,534.651
12/31/2018
50,334.15
4000%
28,187.12
78,52127
12/31/2019
50,334.15
4.000%
26,173.76
76,507.91
12/31/2020
50,334.15
4.000%
24,160.40
74,494.55
12/31/2021
50,334.15
4.000%
22,147.02
72,481.17
12/31/2022
50,334.15
4.000%
20,133.66
70,467.81
12/31/2023
50,334.15
4.000%
18,12030
68,454.45
12/31/2024
50,334.15
4,000%
16,106.92
66,441.07
12/31/2025
50,334.15
4.000%
14,093.56
64,427.71
12/31/2026
50,334.15
4.000%
12,080.20
62,414.35
12/31/2027
50,334.15
4.000%
10,066.84
60.400.99
12131/2028
50,334.15
4.000%
8,053.46
58,387.61
12/31/2029
50,334.15
4.000%
6,040.10
56,37425
12/31/2030
50,334.15
4.000%
4,026.74
54,360.89
12/31/2031
50,334.15
4.000%
2,013.36
52,34751
Total
$1,006,6B3.00
-
$422,806.88
$1 429,489.88
SIGNIFICANT DATES
Filing Date.. ....... ........ ........ ._...... ......... ......_. ,...._.. 1/01/2012
First Payment Date _..... ..._... ......_.._. ........ ......... .._._... 12/31/2012
1"'Z01I CO A..mmenl I .R"I'll 1. 1,11, / Y /1 /11,1 / I:11:11
ri ngst Page 6
$2,385,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2011A GO Improvement Bonds - Issue Summary
NET DEBT SERVICE SCHEDULE
Date
Principal
Coupon
Interest
Total P +I
Net New D/S
105% of Total
Assessment
Levy Required
02/0112012
-
-
-
.._... .._.... 21665920%
-
-
-
__..... ......_, _...__ 23048953%
Bond Yield for Arbitrage Purposes_._.. ........... ._.....
02/01/2013
345,000.00
0.450%
41,813.33
386,813.33
Net Interest Cost .... ._._._ _.. ......... ..... ........
386,813.33
406,154.00
90,601.47
315,552.53
02/01/2014
190,000.00
0.500%
34,287.50
224,287.50
224,28750
235,501.88
88,588.11
146,91337
02/01/2015
195,000.00
0.650%
33,337.50
228,337.50
228,337.50
239,754.38
86,574.73
153,179.65
02101/2016
190,000.00
0.900%
32,070.00
222,070.00
222,070.00
233,173.50
84,561.37
148,612.13)
02/01/2017
190,000.00
1.150%
30,360.00
220.360.00
220,360.00
231,378.00
82,548.01
148,829.99
02101/2018
190,000.00
1.350%
28,175.00
218,175.00
218,175.00
229,083.75
80,534.65
148,549.10
02/01/2019
190,000.00
1.600%
25,610.00
215,610.00
215,610.00
226,390.50
78,52127
147,869.23
02/01/2020
190,000.00
1.800%
22,570.00
212,570.00
212,570.00
223,198.50
76,507.91
146,690..59
02/0112021
195,000.00
2000%
19,150.00
210.,150.00
214,150.00
224,867,50
74,494.55
150,362.95
02/0112022
50,000.00
2.350%
15,250.00
65,250.00
65,250.00
68,512.50
72,481.17
(3,968.67)
02/01/2023
50,00000
2.550%
14,075.00
64,075.00
64,076.00
67,278.75
70,467.81
(3,189.06)
02/0112024
50,000.00
2.650%
12,80000
62,800.00
62,800.00
65,940.00
68,454.45
(2,514.45)
02/0112025
45,000.00
2.800%
11,475.00
56,475.00
56,475.00
59,298.75
66,441.07
(7,142.32)
1 02/01/2025
45,00000
2.950%
10,215.00
55,215.00
55,21500
57,97595
64,427,71
(6,451,96)
02/01 /2027
45,00000
3050%
8,887.50
53,887.50
53,887.50
56,581.88
62,414.35
,(5,83222,48)
02/01/2028
45,000.00
3.200%
7,515.00
52,515.00
52,515.00
55,140.75
60,400.99
(5,260.24)
02/0112029
45,000.00
3.250%
6,075.00
51,075.00
51075.00
53,628.75
58,387.61
(4,758.86)
02/01/2030
45,000.00
3.350%
4,612.50
49,612.50
49,612.50
52,093.13
66,374.25
(4,281.13)
02/01/2031
45,000.00
3.400%
3,105.00
48,105.00
48,105.00
50,510.25
54,360.89
(3,850.64)
02/01/2032
41
3500%
1,57500
46,575.00
46,575.00
41
52,34751
(3,443.76)
Total
$2,385,000.00
-
$362,958.33
$2,747,9
$2,747,958.33
$2,885,356.25
$1,429,489.88
$1,455,866.37
Dated... ........ ..... _. __._ ......... ....._..
..... .,...... ....__. 12/0112011
Delivery Date ......... _.._... __... __
_.__. .__.. __.... 12/01/2011
First Coupon Date........ _._... _....... ...__.. _._._
_....... _._.... _...... 8/01/2012
Yield Statistics
Bond Year Dollars...__ _....... __.... __._. ......_
......... ......... ......... $16,752.50
Average Life .. ...... _..._. ._.__. __..... _......
......... ......... ._.. 2024 Years
Average Coupon ......... .._.. ........ .._.__ .......
.._... .._.... 21665920%
Net Interest Cost(NIC) ......... .__,_. ...... .... ..._. .... ...._...
._....., ._. .._..... 2.3374322%
True Interest Cost (TIC) _....... ......... ._._... .......
__..... ......_, _...__ 23048953%
Bond Yield for Arbitrage Purposes_._.. ........... ._.....
_ _..._. _....... ....._.. 2.1159970%
All Inclusive Cost(AIC) ...... .__ .... ... ....... .... .........
__..... ..__._ 2.5212347%
IRS Form 8038
Net Interest Cost .... ._._._ _.. ......... ..... ........
......... ... .... .... .... 2.1665920%
Weighted Average Maturity .._. ........ ....__.. ........ _....
.___.... .._........ .._..... 7024 Years
.Sulu'?) I M A7 hiy—n`- / y / 912612011 / 99 b All
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Prelimin
$1,885,000
City of Lakeville, Minnesota
General Obligation Refunding Bonds, Series 2011
Current Refunding of Series 2001C, 2003B
Total Uses .......................................................... ............................... $665,000.00 $1,220,000.00 $1,885,000.00
Flow of Funds Detail
State and Local Government Series (SLGS) rates for.. .
Date of OMP Candidates ........ .. _..... _............
Primary Purpose Fund Solution Method......_...... _....__._...._.....__._
Preliminary Feasibility Summary
Total Cost of investments ........ ._........
......._... $650,326.67
Dated 12/01/20111 Delivered 12/01/2011
_... $650,326.67
PV Analysis Summary (Net to Net)
Series 2011
Series 2011
Issue
513.42
Ref 2001C
Ref 20038
Summary
Sources Of Funds
Par Amount of Bonds ..,... .... .... ....
....._. ........._.__. $665,000.00
$1,220,000.00
$1,885,000.00
Total Sources ....................................................
............................... $665,000.00
$1,220,000.00
$1,885,000.00
Uses Of Funds
Total underwriters Discount (0. 750%)........._
_.._._.........._ .............. 4,987.50
9,150.00
14,137.50
Costs of issuance ...._
__....... _........ _... 9,172.41
16,82759
26,000,00
Deposit to Current Refunding Fund
. ....... _ .............. 650,326.67
1,190,000.00
1,840,326.67
Rounding Amount _......
............ ........ .......... 513.42
4,022.41
4,535.83
Total Uses .......................................................... ............................... $665,000.00 $1,220,000.00 $1,885,000.00
Flow of Funds Detail
State and Local Government Series (SLGS) rates for.. .
Date of OMP Candidates ........ .. _..... _............
Primary Purpose Fund Solution Method......_...... _....__._...._.....__._
Gross Funded
Total Cost of investments ........ ._........
......._... $650,326.67
Total Draws......... ..__.._ ......
_... $650,326.67
PV Analysis Summary (Net to Net)
Net PV Cashflow Savings@ 1. 039 %(Bond Yield) ..... .... ........_.........
91,411.75
Contingency or Rounding Amount ........ ..............._.
513.42
Net Present Value Benefit. . .,..._.. .._....._...,..
$91,925.17
Net PV Benefit / $1,830,000 Refunded Principal,....... ......... ... _....... 14363%
Net PV Benefit/ $1,885,000 Refunding Principal . ............._ 13.823%
Bond Statistics
Average Life......... ....._.. ......... .. ...... ..... ... - 5.424 Years
Average Coupon.... .... ............... ......... .._.. 1.4303373%
Net interest Cost (NIC) _. ... ....... ...... ......._..
...................
Bond Yield for Arbitrage Purposes ..__... ... ._... .... ._...
True Interest Cost(TIC) _.__.. .. ............ _ ..............
All lnciusive Cost(AIC) ..__... ..... ... . ................
'11u"11.1111. 096 / F .... . - - v ! 0/26'4"l 1 .1' r,
Gross Funded
$1,190,000.00
$1,190,000.00
43,846.99
4,022.41
$47,869.40
4,023%
3,924%
2.346 Years
0.5631917%
1.5686229% 0.8829355%
10387326% 1.0387326%
1.5675986% 0.8868246%
1.8387511% 14913084%
Gross Funded
$1,840,326.67
$1,840,326.67
135,258.74
4,535.83
$139,794.57
7.639%
7.416%
3431 Years
1.0467019%
1.2652667%
1.0387326%
1.2630511 %
1.6826198 %
Springsted Page 8
Prelimin
$1,885,000
City of Lakeville, Minnesota
General Obligation Refunding Bonds, Series 2011
Current Refunding of Series 2001C, 2003B
DEBT SERVICE SCHEDULE
Date
Principal
Coupon
Interest
Total P +I
105% Levy
04/01/2012
-
-
-
_
..__.. ......... ........ $6,468.33
Average Life......... ......... ...._ .._..... ......... ..._._.
04101/2013
470,000.00
0.450%
19,106.67
489,106.67
513,562.00
........ ......... 1.2630511%
04/01/2014
475,000.00
0.500%
12,215.00
487,215.00
511,575.75
Net Interest Cost. ....... ._...... _...... __.... .........
04/01/2015
490,000.00
0.650%
9,840.00
499,840.00
524,832.00
04/0112016
70,000.00
0.900%
6,655.00
76,655.00
80,487.75
04/0112017
75,000.00
1.150%
66,025.00
8'1,025.00
85,076.25
04/01/2018
75,000.00
1.350%
5,162.50
80,162.50
84,170.63
04/01/2019
75,000.00
1.600%
4,150.00
79,150.00
83,107.50
04/0112020
750GOnn
' 6 00%
2,950.00
77,950,00
81,847.oU
04/01/2021
80,000.00
2.000%
1,600.00
81,600.00
85,680.001
Total
$1,885,000,00
-
$67,704.17
$1,952,704.17
$2,050,339.38
SIGNIFICANT DATES
Dated _... ........ ..._... .... _.. ..._._
....... .. 12/01/2011
Delivery Date.._. _..__. ....._.. _._.
....... ........ .. 12/01/2011
First Coupon Date ........ .._..... ........ _... .........
__..... ..__... 10/01/2012
Yield Statistics
Bond Year Dollars ......... .__..._.... ........ ....__.
..__.. ......... ........ $6,468.33
Average Life......... ......... ...._ .._..... ......... ..._._.
....... _.. 3.431 Years
Average Coupon_ ......... ..._._. .......... ....... ...._... ...._...
._.__. ........ 1.0467019%
Net Interest Cost(NIC) _._.... ..__... ...._... ........ _...__
...... 1.2652667%
True Interest Cost (TIC) . _.... ......... ......... ........
........ ......... 1.2630511%
Bond Yield for Arbitrage Purposes ._ ............ _...... _...._ __.....
.._..._ ...._.. 1.0387326%
All Inclusive Cost(AIC) ........ .._...... ......... _.._._
.._..... ..... 1,6826198%
IRS Form 8038
Net Interest Cost. ....... ._...... _...... __.... .........
_._... __.._ T0467019%
Weighted Average Maturity- .__.. ..... ..... ............ ..._... ..._....
._...... ... _. 3431 Years
Interest rates are estimates. Changes in rates may
cause significant alterations to this schedule.
The actual underwriter's discount bid may also vary.
Sp ringsted Page
Preliminary
$1,885,000
City of Lakeville, Minnesota
General Obligation Refunding Bonds, Series 2011
Current Refunding of Series 2001C, 2003B
Debt Service Comparison
Date
Total P +I
Existing DIS
Net New D/S
Old Net D/S
Savings
Net PV Cashfiow Savings@ 1039 %(Bond Yield) _....., __.__ .........
04/01/2012
-
403,153.13
403,153.13
468,643.13
65,490.00
_....... _.... $139,794.57
04/01/2013
489,106.67
-
489,106.67
506,811.26
17,704.59
Net PV Benefit / $1,885,000 Refunding Principal .._. ......... .......... ___..
0410l/2014
487,215.00
-
487,215,00
505,926.26
18,711.26
...._... _....._ 12/01/2011
04/0112015
499,840.00
-
499,840.00
514,022.50
14,182.50
04/01/2016
76,655.00
-
76,655.00
80,640.00
3,985.00
64/01/2017
81,025.00
-
81,025.00
82,820.00
1,795.00
04/01/2018
80,162.50
-
80,162.50
84,602.50
4,440.00
04/01/2019
79,150.00
-
79,150.00
81,137.50
1,987.50
04/01/2020
77,95000
-
77,950.00
32,672,50
4,722.50
04/01/2021
81,60 0.00
-
81,600.00
83,960.00
2,360M
Total
$1,952,704.17
$403,15313
$2,355,857.30
$2,491,235.65
$135,378.
PV Analysis Summary (Net to Net)
Net FV Casti low Savings .... ......... _.._ _......... .......,.
.... _... .... _.. 135,378.35
Gross PV Debt Service Savings.. _... ....__. .........
..... ......... 135,258.74
Net PV Cashfiow Savings@ 1039 %(Bond Yield) _....., __.__ .........
__ .._. 135,25814
Contingency or Rounding Amount _ ..._..... ......... _.....
._.__. __.. 4,535.83
Net Future Value Benefit .. _... _........ .......
_._._ $139,914.18
Net Present Value Benefit .... .._.._. _.._. .._..._ _...__
_....... _.... $139,794.57
Net PV Benefit /$250,536.51 PV Refunded Interest ....... _.... ...._..
__.... _..__ 55.798%
Net PV Benefit / $2,020,258.74 PV Refunded Debt Service__.., ...__.. .. _..._
........ ...... 6.920%
Net PV Benefit / $1,830,000 Refunded Principal _ .. .. .... ...... ...__
.... ...... ......... 7.639%
Net PV Benefit / $1,885,000 Refunding Principal .._. ......... .......... ___..
__.._ ......... 7.416%
Refunding Bond Information
Refunding Dated Date . .. ......_. ........ .......... ......._
__._.. ._..._. 12/01/2011
Refunding Delivery Date ..... ..... ..... ......... _............ ._..._
...._... _....._ 12/01/2011
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