HomeMy WebLinkAboutItem 06.nDate October 3, 2011 � B �
` 1. Item
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $1,885,000
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2011E
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Resolution
Authorizing Issuance and Sales of $1.885 million of G.O. Refunding Bonds, Series
2011 B.
Approval of the Resolution will result in the financing of the G.O. State Aid Bonds Series
2001 C and the G.O. Park Refunding Bonds Series 2003 B.
Overview
The General Obligation (G.O.) State Aid Bonds Series 2001C currently have an
outstanding balance of $640,000. Municipal State Aid Street funds are pledged to the
repayment of the debt. Refinancing the bonds at lower interest rates will save
approximately $3,042 per year from 2012 thru 2021.
The G.O. Park Refund Bonds Series 2003 B currently has an outstanding balance of
$1.19 million. The bonds were approved by voter referendum in 1994 and are repaid
with property tax levies. Refinancing of the bonds at lower interest rates will save
approximately $14,170 per year from 2012 to 2014.
Actual interest rates and final tax levy are subject to market conditions at the time of the
bid opening on November 7.
Primary Issues to Consider
• Schedule
• Call provisions
Supporting Information
• 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:
CITY OF LAKEVILLE
RESOLUTION
Date: October 3, 2011 Resolution No.
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $1,885,000
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2011B
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 Refunding Bonds, Series 2011B, in the principal amount of $1,885,000
(the Bonds), pursuant to Minnesota Statutes, Chapter 475, to refund the 2012 -2021 maturities of
the City's General Obligation State Aid Street Bonds, Series 2001 C and the 2013 -2015
maturities of the City's General Obligation Park Refunding Bonds, Series 2003B.
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 City Clerk. 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 475.50, Subdivision 2, paragraph (9), to solicit proposals for the Bonds on
beh , C me r ' competitive is without ; men` of published i..,ua. f i.. C on a C uipetl ' bas i
s +� u.,w ut . . L p i..Ct notice.
SECTION 3. SALE 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
Primary Issues • .
October 3
City sets sale date and terms
Week of October 31
Rating conference conducted
November 7 10:30 a.m.
Competitive proposals are received
November 7 7:00 p.m.
Council considers award of bids
Late November
Proceeds are received
Call Provisions Due to the short maturity schedule there are no call
provisions for this bond issue.
City of Lakeville, Minnesota
Recommendations for Issuance of Bonds
General Obligation Improvement Bonds, Series 2077A
General Obligation Refunding Bonds, Series 2011B
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, 201 1, 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 "Aal" by Moody's,
THE MARKET: Performance of the tax - exempt market is often measured by the Bond Buyer's Index ( "BB! ")
which measures the yield of high grade municipal bonds in the 20t maturity year for general
obligation bonds and the 25 maturity year for revenue bonds. The following chart
illustrates these two indices over the past five years.
BBI 25 -band (Revenue) and 20 -band (G.O.) Rates fors Years
Ending 9122/2011
5.5%
6.0%
5.5%
5.0%
K
4.5%
4,0%
3.5%
d2270t1 r '�
bond: 4H8"h
23 bond: 3B5%
BB1 25 Son
_BBI 20 Bond
6144" 3r`�a'�as'�,�nv" �Oe g;A1 � e 3 a ex
Dates Prepared bi spring.aed Incorporated
pri
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 ii) 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 5 -month expenditure exception from rebate.
Yield restriction provisions will aoply 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
income.
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 207IA
(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.
ringsted Paget
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 taxing 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 August 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
fund 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.
General Obligation Refunding Bonds, Series 2017B
(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
ri n g ste Page 3
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 being 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 2001C 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 2003B
Bonds and (ii) proceeds of the Refunding Bonds to pay the redemption price of the
Series 2001 C Bonds and Series 20036 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
Ceres 2001C
$E40, 000
$ 383
$91,925
11.941%
$3,042
Series 2003B
$1,190,000
$46,530
$47,870
3.828%
$14,170
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.
pringsted Page
$2,385,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2011A GO Improvement Bonds - Issue Summary
Total Issue Sources And Uses
Dated 12101/2011 1 Delivered 12/01/2011
Assessed
Portion Levy Portion Issue Summary
Sources Of Funds
$2,385,000.00
Par Amount of Bonds .......... ......... ........__.. ...... .._.
...... ..... $1,005,000.00
Other contributions
-
Total Sources ................................... ...............................
$1,005,000.00
Uses Of Funds
1,359,533.42
Available for Project Costs ....... _. _.___.
,... 979di3.58
Costs of Issuance.. .............
_... 13,526.42
Total Underwriter's Discount 11.200 %), .___._____..___..
12,060.00
Total Uses .... - ................................... ............................... $1,005,000.00
s.- d.,znrrn co n» . „� / i,�,.�s,.,,,,,,n / eizr✓ ?ou / �,�amia
$1,380,000.00
$2,385,000.00
14,667.00
14,667.00
$1,394,667.00
$2,399,667.00
1,359,533.42
2,338,94700
18,573.58
32,100.00
16,560.00
28,620
00
$1,394,667.00 $2,399,667.00
r i n Page 5
$1,006,683
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2011 GO Assessments
ASSESSMENT INCOME
Date
Principal
Filing Date .. ........ _..__ .. _.....
Coupon
Interest
......... __.... ....__.. 12/31/2012
Total P +I
12/31/2012
50,334.15
4.000%
40,267.32
90,601.47
1213112013
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
12/31/2015
50,334.15
4.000%
34,227.22
84,561.37
12/31/2016
50,334.15
4.000%
32,213.86
82,548.01
12/31/2017
50,334.15
4.000%
30,200.50
80,534.65
12/31/2018
50,334.15
4.000%
28,18712
78,521.27
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
1?/31/2021
50,334.15
4,000%
22,14702
72,481.17
12/31/2022
50,334.15
4000%
20,133.66
70,467.81
12/31/2023
50,334.15
4.000%
18,120.30
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
12131/2026
50,334.15
4.000%
12,08020
62,414.35
12/31/2027
50,334.15
4.000%
10,066.84
60,400.99
12/31/2028
50,334.15
4.000%
8,053.46
58,387.61
12/31/2029
50.334.15
4.000%
6,040.10
56,374.25
12/31/2030
50,334.15
4.000%
4,026.74
54,36089
12/31/2031
50,334.15
4.000%
2,013.36
52,347.51
Total
$1,006,683.00
-
$422,806.88
$1429,489.88
SIGNIFICANT DATES
Filing Date .. ........ _..__ .. _.....
........ . ..,.,.,._ _.. _. 110112012
First Payment Date_. ......... .....
......... __.... ....__.. 12/31/2012
,k iau'2I / 1. t]N6tl.11F111E/ 912d18111 / I.Rd am
$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
0210112012
-
-
-
..... 2.5212347%
IRS Form $038
Net Interest Cost .._ __. .... ..._...... .._.....
....._.... ....._. __.. 2.1665920%
02/01/2013
345,000.00
0.450%
41,813.33
386,813.33
386,813.33
406,154.00
90,601.47
315,552.53
02101/2014
190,000.00
0.500%
34,287.50
224,287.50
224,287.50
235,501.88
88,58811
146,913.77
02101/2015
195,000.00
0.650%
33,337.50
228,337.50
228,337.50
239,754.38
86,574.73
153,179.65
02/01/2016
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
02/01/2018
190,000.00
1.350%
28,175.00
218,17500
218,17500
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
78,521.27
147,869.23
02/01/2020
190,000.00
1.800%
22,570.00
212,570.00
212,570.00
223,198.50
76.50291
146.690.59
02/0112021
195,000.00
2.000%
19,150.00
214,150.00
214,150.00
224,857.50
74,494.55
150,362.95
02/01/2022
50,000.00
2.350%
15,250.00
65,25000
65,250.00
68,512.50
72,481.17
(3,968.67)
02/01/2023
50,000.00
2.550%
14,075.00
64,075.00
64,075.00
67,278.75
70,467.81
(3,189.06)
02/01/2024
50,000.00
2.650%
12,800.00
62,80000
62,800.00
65,940.00
68,454.45
(2,514.45)
02/0112025
45000.00
2.800%
11,475.00
56,475.00
56,475.00
59,298.75
66.441.07
(7,142.32)
02/01/2026
45,000.00
2.950%
10.21500
55,215,00
55,215.00
57,976.75
64,42771
(6,45196)
02/01/2027
45,000.00
3.050%
8,88250
53,88250
53,88750
56,581.88
62,414.35
(5,332.48)
02/01/2028
45,000.00
3.200%
7,515.00
52,515.00
52,515.00
55,14035
60,400.99
(5,260.24)
02/01/2029
45,000.00
3.250%
6,07500
51,C75.00
51,075.00
53,628.75
58,387.61
(4,758.86)
02/0112030
45,000.00
1350%
4,612.50
49,612.50
49,612.50
52,093.13
56,374.25
(4,281.13)
02/01/2031
45,00000
3.400%
3,10500
48,105.00
48,105.00
50,510.25
54,360.89
(3,850.64)
02/01/2032
45,000.00
3.500%
1,575.00
46,575.00
46,575.00
48.903.75
52,347.51
(3,443.76)
Total
$2385,00000
-
$362,95833
$2,747968.33
$2,747,958.33
$2,885,35625
$1,429,489.88
51,455,86637
Dated._
.... .... .... _.. .... ........ ._.. _.. 12/0112011
Delivery Cate
_.. .... ....._. 18/01/2011
First Coupon Date, ........ __..... ....__.... ..... _. _. ._. _... ......._ ... 8/01/2072
Yield Statistics
Bond Year Dollars . .. ... .... ......_ ......... .........
......... _._... ...... _. $16,752.50
Average Life ...__ . ........ .. .... .. .._.. _.......
......... ..._.. 7.024 Years
Average Coupon ......... .__.... .......... ........,. .........
..,...... ....._.. ._.. 2.1665920%
Net interest Cost (NIC) ... . _....... _........ _....._ _....._
....,,._ ...... 23374322%
True Interest Cost (TIC)... _...._.. _....... .
. ._..._ �._. 2.3048953%
Bond Yield for Arbitrage Purposes _.... ... ........... _. ......... ..__... .._.....
_._..... ..._..... 2.1159970%
All Inclusive Cost (AIC)._. ........ .... __._.. .........
..... 2.5212347%
IRS Form $038
Net Interest Cost .._ __. .... ..._...... .._.....
....._.... ....._. __.. 2.1665920%
Weighted Average Maturity . .... ...... .. ... ... _....... ..._...
......._. _...... ....._.. 7024 Years
11- 1121 /11 I'll, ..... — / &nv. SLmmvP, fl /26/201] / " ",,
S pringsted Page 7
Preliminary
$1,885,000
City of Lakeville, Minnesota
General Obligation Refunding Bonds, Series 2011
Current Refunding of Series 2001 C, 20038
Preliminary Feasibility Summary
Dated 12/01/20111 Delivered 12/01/2011
Total Uses ..................................... .............. ........ .............................. $665,000.00
Flow of Funds Detail
State and Local Government Series (SLGS) rates for._...__...___._.
Series 2011
Date of OMP Candidates ...... ......... _......_.... ..__....._
Ref 2001 C
Sources Of Funds
Gross Funded
ParAmount of Bonds ....,_.. ___.......... ...
............ .... ... .. $665,000.00
Total Sources .................................................... ...............................
$665,000.00
Uses Of Funds
Total Underwriter's Discount (0. 750%)......__ .._......._.._..........._._...
4,987.50
Costs of Issuance._ .... ._......
._......._._. 9,172.41
Deposit to Current Refunding Fund, ....... ____......_..........___._____.
650,326.67
Rounding Amount_. .._...... ..___...
.,....__. _. 513.42
Total Uses ..................................... .............. ........ .............................. $665,000.00
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 Cast Savings @ 1.039 %(Bond Yield
Contingency or Rounding Amount. ..........
,..__.......
Net Present Value Benefit..... . -- , ,,,
Net PV Benefit / $1,830,000 Refunded Pdncipal_
Net PV Benefit/ $1,885,000 Refunding Principal.
91,411.75
61342
$91,925.17
14363%
13,823%
Series 2011
Ref 20038
$1,220,000.00
$1,220,000.00
9,150.00
18,82759
1,190,000 00
4.022.41
$1,220,000.00
Gross Funded
$1,190,000.00
$1,190,000.00
43,846.99
4,02141
$47,86940
4.023%
3g24%
Issue
Summary
$1,885,000.00
$1,885,000.00
14,137.50
26,000.00
1,840,326.67
4.535.83
$1,885,000.00
Gross Funded
$1,840,326.67
$1,840,326.67
135,258.74
4,535.83
$139,794.57
7639%
7416%
Bond Statistics
Average Life ..... ................. .......... ....._..__. ..__.
Average Coupon___ ... ...... .......
. _ .............. .�___..
Net Interest Cost(NIC) ......... .,___. .................... ..._.
Bond Yield for Arbitrage Purposes.. .................... ........_.
True Interest Cost (T ___ .... .... .... .........
._... ._..........
All Inclusive Cost(AIC) .._ .......... ............. ....... _...... ...
5 424 Years
1.4303373%
1.5585229%
1.0387326%
1.5675986 %
1.8387511%
2.346 Years
0.5631917%
0.8829355%
1.0387326%
0,8868246%
1.4913084%
3.431 Years
1.0467019%
."""2011 RifOlC. OB / bnre.". — y/ II /vOlf / 911'n1f
1.2652667%
1.0387326%
1,2630511%
1.6826198%
S pringsted Page
Preliminary
$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 __. _.. ..._.. ......._ ......
04/01/2013
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
04/01/2015
490,000.00
0.650%
9,840.00
499,840.00
524,832.00
04/01/2016
70,000.00
0,900%
6,655.00
76,656.00
80,487.75
04/01/2017
75,000.00
1.150%
6,025.00
81.025.00
85,076.25
04/0112018
75,000.00
1,350%
5,11
80,162.50
84,170.63
04/01/2019
75,000.00
1.600%
4,150.00
79,150.00
83,10250
04,/01/2020
75,000.00
1.800%
2,950.^0
77,950.00
81,°47.50
04/0112021
80,000.00
2.000%
1,600.00
81,600.00
85,680.00
Total
$1,885,000.00
$67704.17
$1,952,704.17
$2,050,339.38
SIGNIFICANT DATES
Dates ____. ......_ _._.._ __.. ......_.
_.__. _....... ._... 12/0112011
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..... _...._. ........,. ......... ........ ......... _....... ... _. 1.0467019%
Weighted Average Maturity. .._ ..... ......................... ...._... . _..... ......._. ....... ..._. 3,431 Years
Interest rates are estimates. Changes in rates may
cause significant alterations to this schedule.
The actual underwriter's discount bid may also vary.
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ringst e Page
Preliminary
$1,885,000
City of Lakeville, Minnesota
General Obligation Refunding Bonds, Series 2011
Current Refunding of Series 2001C, 20038
Debt Service Comparison
Date
Total P +I
Existing D/S
Net New D/S
Old Net D1S
Savings
Net PV Casnflow 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
506,81126
17,704.59
Net PV Benefit/ $1,885,000 Refunding Principal. ....... _. _..,...
04/0112014
487,215.00
-
487,215.00
505,926.26
18,711.26
_...... _....... IZ01/2011
04/01/2015
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
04/01/2017
81,025.00
-
81,025.00
82,82000
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
77 950,00
-
77,950.00
8267250
4,722
50
04/01/2021
81,600.00
-
81,600.00
83,960.00
2,360.00
Total
$1,952,704.17
$403,153.13
$2,355,857.30
$2,491,235.65
$135,378.35
PV Analysis Summary (Net to Net)
Net FV Cashflow Savings __.. ...._.. ........ _... ... _..
_.... ...... ... 135.378.35
Gross PV Debt Service Savings..... ., _,..., ___ ... ...... ...... ....
_..... ........ ......... 135,258.74
Net PV Casnflow Savings@ 1039 %(Bond Yield). _....... __._.. ....._..
_...... ^.35,258.74
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°0
Net PV Benefit/ $1,885,000 Refunding Principal. ....... _. _..,...
_.... ... ..... . 7.416%
Refunding Bond Information
Refunding Dated Date _....... ......_ ..... __..... __....,. __..._
....... .._ 12/0112011
Refunding Delivery Date ........ .... ..... _. .... ....... .... ...___ _.._...
_...... _....... IZ01/2011
S117_¢01 i Fe /UILJJ30 / [onon -- / VZ2IZOII / 2251M
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