HomeMy WebLinkAboutItem 06.jDate June 18, 2012 Item
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF
$23,635,000 GENERAL OBLIGATION REFUNDING
BONDS, SERIES 2012B
Proposed Action
Staff recommends adoption of the following motion: Move to approve the Resolution
Authorizing Issuance and Sale of $23.635 million of G.O. Improvement Bonds, Series 2012 B.
Approval of the Resolution will result in the financing of the G.O. Improvement Bonds Series
2003 B and the G.O. Capital Improvement Bonds Series 2004 A.
Overview
The purpose of the 2012 B Bonds is to reduce future interest costs on two outstanding issues.
The issuance of the 2012 B Bonds is being conducted as a "crossover" advance refunding in
which the proceeds are placed in an escrow account and invested in government securities.
These investments and their earnings are structured to pay interest on the 2012 B Bonds through
the call dates of the two older bonds, at which time the escrow account will crossover and prepay
the entire remaining principal of the two older bonds. After the call dates, the City will cross
over and begin making debt service payments on the 2012 B Bonds, taking advantage of the
lower interest rates.
Primary Issues to Consider
• Extent of cost savings. The refunding is projected to result in the City realizing interest
cost savings as follows:
Average
Annual
Savings
2003 B Street Reconstruction Bonds $ 93,580
2004 A Capital Improvement Bonds $ 94,000
Total
Supporting Information
• Sprjugsted` endations for Issuance of Bonds
De e ler, Fina irector
Net Future Net Present
Value Benefit Value Benefit
$ 1,125,045 $ 944,195
$ 1,413,050 $ 1,106,730
$ 2,538,095 $ 2,050,925
Financial Impact: See attached Budgeted: No Source: Taxes and Special Assessments
Related Documents (CIP, ERP, etc.):
Notes:
CITY OF LAKEVILLE
RESOLUTION
Date: June 18, 2012 Resolution No.
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF
$23,635,000 GENERAL OBLIGATION REFUNDING
BONDS, SERIES 2012B
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 2012B, in the principal amount of $23,635,000
(the Bonds), pursuant to Minnesota Statutes, Chapter 475, to refund the 2015 -2026 maturities of
the City's General Obligation Street Reconstruction Bonds, Series 2003A and the 2016 -2030
maturities of the City's General Obligation Capital Improvement Plan Bonds, Series 2004A.
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 475.60, 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. 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 18 day of June, 2012.
CITY OF LAKEVILLE,
IN
Mark Bellows, Mayor
ATTEST:
Charlene Friedges, City Clerk
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$23,635,000"
CITY OF LAKEVILLE, MINNESOTA
GENERAL OBLIGATION REFUNDING BONDS, SERIES 2012B
(BOOK ENTRY ONLY)
Proposals for the Bonds and the Good Faith Deposit ( "Deposit ") will be received on Monday,
July 16, 2012, until 10:00 A.M., Central Time, at the offices of Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals will be opened
and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M.,
Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the
time of sale specified above. All bidders are advised that each Proposal shall be deemed to
constitute a contract between the bidder and the City to purchase the Bonds regardless of the
manner in which the Proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax
(651) 223 -3046 to Springsted. Signed Proposals, without final price or coupons, may be
submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting
to Springsted the final Proposal price and coupons, by telephone (651) 223 -3000 or fax
(651) 223 -3046 for inclusion in the submitted Proposal.
OR
(b) Electronic B idding. Notice is hereby given that electronic proposals will be received via
PARITT For purposes of the electronic bidding process, the time as maintained by PARITY
shall constitute the official time with respect to all Bids submitted to PARITY Each bidder shall
be solely responsible for making necessary arrangements to access PARITY for purposes of
submitting its electronic Bid in a timely manner and in compliance with the requirements of the
Terms of Proposal. Neither the City, its agents nor PARITY' shall have any duty or obligation to
undertake registration to bid for any prospective bidder or to provide or ensure electronic access
to any qualified prospective bidder, and neither the City, its agents nor PARITY shall be
responsible for a bidder's failure to register to bid or for any failure in the proper operation of, or
have any liability for any delays or interruptions of or any damages caused by the services of
PARIT . The City is using the services of PARITY solely as a communication mechanism to
conduct the electronic bidding for the Bonds, and PARITY is not an agent of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY this
Terms of Proposal shall control. Further information about PARITY including any fee charged,
may be obtained from:
PARITY 1359 Broadway, 2n Floor, New York, New York 10018
Customer Support: (212) 849 -5000
Preliminary; subject to change.
DETAILS OF THE BONDS
The Bonds will be dated as the date of delivery, as the date of original issue, and will bear
interest payable on February 1 and August 1 of each year, commencing August 1, 2013.
Interest will be computed on the basis of a 360 -day year of twelve 30 -day months.
The Bonds will mature February 1 in the years and amounts* as follows:
2015 $ 830,000 2019 $1,480,000 2023 $1,735,000 2027 $1,095,000
2016 $1,455,000 2020 $1,540,000 2024 $1,815,000 2028 $1,165,000
2017 $1,400,000 2021 $1,600,000 2025 $1,890,000 2029 $1,240,000
2018 $1,435,000 2022 $1,660,000 2026 $1,980,000 2030 $1,325,000
The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds or the maturity amounts offered for sale. Any such increase or
reduction will be made in multiples of $5,000 in any of the maturities. In the event the principal
amount of the Bonds is increased or reduced, any premium offered or any discount taken by the
successful bidder will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Bonds is increased or reduced.
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at
a price of par plus accrued interest to the date of redemption and must conform to the maturity
schedule set forth above. In order to designate term bonds, the proposal must specify "Years of
Term Maturities" in the spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company ( "DTC "),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2022, and on any day thereafter, to prepay Bonds due on or
after February 1, 2023. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be
prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to
be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. The proceeds will be used to refund
(i) the February 1, 2015 through February 1, 2026 maturities of the City's General Obligation
Street Reconstruction Bonds, Series 2003A, dated March 15, 2003; and (ii) the February 1,
2016 through February 1, 2030 maturities of the City's General Obligation Capital Improvement
Plan Bonds, Series 2004A, dated November 1, 2004.
Proposals shall be for not less than $23,635,000 (Par) and accrued interest on the total principal
amount of the Bonds.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made. Rates shall be in integral multiples
of 5/100 or 1/8 of 1 %. Rates are not required to be in level or ascending order; however, the
rate for any maturity cannot be more than 1% lower than the highest rate of any of the
preceding maturities. Bonds of the same maturity shall bear a single rate from the date of the
Bonds to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
Proposals, regardless of method of submission, shall be accompanied by a Deposit in the
amount of $236,350 in the form of a certified or cashier's check, a wire transfer, or Financial
Surety Bond and delivered to Springsted Incorporated prior to the time proposals will be
opened. Each bidder shall be solely responsible for the timely delivery of their Deposit whether
by check, wire transfer or Financial Surety Bond. Neither the City nor Springsted Incorporated
have any liability for delays in the transmission of the Deposit.
Any Deposit made by certified or cashier's check should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota
55101.
Any Deposit sent via wire transfer should be sent to Springsted Incorporated as the City's
agent according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
for credit to Springsted Incorporated, Account #635- 5007954
Ref: Lakeville, MN Series 2012B Good Faith Deposit
Contemporaneously with such wire transfer, the bidder shall send an e-mail to
bond services aaspringsted.com including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies,
and (iv) the return wire instructions if such bidder is not awarded the Bonds.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the City
following the award of the Bonds. Any Deposit made by check or wire transfer by an
unsuccessful bidder will be returned to such bidder following City action relative to an award of
the Bonds.
If a Financial Surety Bond is used, it must be from an insurance company licensed to issue
such a bond in the State of Minnesota and pre- approved by the City. Such bond must be
submitted to Springsted Incorporated prior to the opening of the proposals. The Financial
Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial
Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then
that underwriter is required to submit its Deposit to the City in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time on the next business day following the award. If such Deposit is not received by that time,
the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement,
will be deposited by the City and no interest will accrue to the purchaser. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non - substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and (iii) reject any proposal that the City determines to have failed to comply with
the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
4110 11K ai
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
On or about August 15, 2012, the Bonds will be delivered without cost to the purchaser through
DTC in New York, New York. Delivery will be subject to receipt by the purchaser of an
approving legal opinion of Dorsey & Whitney LLP of Minneapolis, Minnesota, and of customary
closing papers, including a no- litigation certificate. On the date of settlement, payment for the
Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of the
City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms
of payment for the Bonds has been made impossible by action of the City, or its agents, the
purchaser shall be liable to the City for any loss suffered by the City by reason of the
purchaser's non - compliance with said terms for payment.
-iv -
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2- 12(b)(5), the City will undertake, pursuant to the resolution
awarding sale of the Bonds, to provide annual reports and notices of certain events. A
description of this undertaking is set forth in the Official Statement. The purchaser's obligation
to purchase the Bonds will be conditioned upon receiving evidence of this undertaking at or prior
to delivery of the Bonds.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent information
relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement
within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission. For copies of
the Official Statement or for any additional information prior to sale, any prospective purchaser
is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson Street,
Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223 -3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement' of the City with respect
to the Bonds, as that term is defined in Rule 15c2 -12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 250 copies of the
Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring
the receipt by each such Participating Underwriter of the Final Official Statement.
Dated June 18, 2012
BY ORDER OF THE CITY COUNCIL
/s/ Charlene Friedges
City Clerk
v-
City of Lakeville, Minnesota
Recommendations for Issuance of Bonds
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Prepared by Springsted Incorporated
Dates
" Sprinse
The Council has under consideration the issuance of bonds to (i) fund various street improvement projects within the
City and (ii) refund two outstanding general obligations of the City. This document provides information relative to the
proposed issuances.
KEY EVENTS: The following summary schedule includes the timing of some of the key events that will
occur relative to the bond issuance.
$6,805,000 General Obligation Improvement Bonds, Series 2012A
$23,635, 000 General Obligation Refunding Bonds, Series 2072B
June 18, 2012
Council sets sale date and terms
July 9, 2012 (est.)
Rating conferences are conducted
July 16, 2012, 10:00 a.m.
Competitive proposals are received
July 16, 2012, 7:00 p.m.
Council considers award of bonds
August 15, 2012 (est.)
Proceeds are received
RATING: An application will be made to Moody's Investors Services for ratings on the Bonds. The
City's general obligation debt is currently rated "Aal ".
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 year for general
obligation bonds (the BBI 20 Bond Index) and the 30th year for revenue bonds (the BBI 25
Bond Index). The following chart illustrates these two indices over the past five years.
6.5% -
6.0% -
5.5%
5.0%
Ix
4.5% -
4A% -
3.5%
BBI 26 -bond (Revenue) and 20 -bond (G.Q.) Rates for Years
Ending 61712012
° }
8+7!2012
25 bon d: 4.80%
20 bond:3.92%
r.
.
,
r °
s e
ONIUMUM
POST ISSUANCE The issuance of these bonds will result in post- issuance compliance responsibilities. The
COMPLIANCE: responsibilities fie 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 2012A Bonds. As the issuance of the 2012B Bonds is being conducted as an advance
refunding, the City will not meet an expenditure exception for rebate. The proceeds of the
2012B Bonds will be invested in an escrow account until the call date of the refunded
bonds. Arbitrage rules do not permit investment earnings on the escrow account to exceed
the yield on the bonds; therefore, no excess arbitrage would be earned. Yield restriction
provisions will apply to the debt service fund and any project proceeds unspent after three
years under certain conditions. The funds should be monitored throughout the life of each
issue.
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.
The City currently contracts with Springsted for these services. An amendment to include
these issues will be sent to City staff.
SUPPLEMENTAL Supplementary information will be available to staff including detailed terms and conditions
INFORMATION AND of sale, comprehensive structuring schedules and information to assist in meeting post -
BOND RECORD: issuance compliance responsibilities.
Upon completion of the financing, bond records will be provided that contains pertinent
documents and final debt service calculations for the transactions.
$6,805,000 General Obligation Improvement Bonds, Series 2072A
(the "2012A Bonds'l
PURPOSE: Proceeds of the 2012A Bonds will be used to finance various street improvement projects
within the City.
AUTHORITY: The 2012A Bonds are being issued pursuant to Minnesota Statues, Chapters 429 and 475.
SECURITY AND The 2012A Bonds are a general obligation of the City, secured by its full faith and credit
SOURCE OF and taxing power. In addition to tax levies, the City will pledge special assessments
PAYMENT: against benefited properties. Assessments in the total aggregate amount of $2,170,000
will be filed on or about January 1, 2013. The assessments will be collected over a term of
20 years with equal annual payments of principal. The interest rate charged on the unpaid
balance of assessments is 3.5 %.
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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 2012A Bonds in 2012 for collection in 2013. Each year's first -
half collection of taxes and assessments will be used to pay the interest payment due
August 1 in the year of collection. Second -half collections plus any taxes and assessments
collected but not applied on August 1 will be used to pay the principal and interest payment
due February 1 in the following year.
STRUCTURING At the direction of the City, the 2012A Bonds have been structured with two components —
SUMMARY: 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 10 years with an average annual tax levy requirement of
approximately $475,000 through levy year 2021. Thereafter, special assessment
collections are estimated to fully fund annual debt service.
SCHEDULES Schedules showing the sources and uses of funds, estimated debt service requirements
ATTACHED: given the current interest rate environment, and assessment income are attached.
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: Bonds maturing on or after February 1, 2023 may be prepaid at a
price of par plus accrued interest on or after February 1, 2022.
Bank Qualification: The City will issue more than $10 million in tax - exempt obligations in
2012; therefore, the 2012A Bonds are not designated as bank qualified.
$23,635, 000 General Obligation Refunding Bonds
(the "2012B Bonds ")
PURPOSE: The purpose of the 2012B Bonds is to reduce future interest costs on two of the City's
outstanding issues. Proceeds of the 2012B Bonds will be used to refund (!)the
February 1, 2015 through February 1, 2026 maturities of the City's General Obligation
Street Reconstruction Bonds, Series 2003A, dated March 15, 2003 (the "Street
Reconstruction Bonds ") and (ii) the February 1, 2016 through February 1, 2030 maturities
of the City's General Obligation Capital Improvement Plan Bonds, Series 2004A, dated
November 1, 2004 (the "CIP Bonds "). The Street Reconstruction Bonds and the CIP
Bonds are referred to collectively as the "Prior Bonds."
The maturities of the Street Reconstruction Bonds to be refunded are currently outstanding
in the aggregate principal amount of $11,415,000. The 2013 -2014 maturities of the Street
Reconstruction Bonds are not callable and will not be refunded. The Street Reconstruction
Bonds were originally issued to finance various street improvement projects within the City.
The maturities of the CIP Bonds to be refunded are currently outstanding in the aggregate
principal amount of $13,420,000. The 2013 -2015 maturities of the CIP Bonds are not
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callable and will not be refunded. The CIP Bonds were originally issued to finance various
capital improvement projects within the City.
AUTHORITY: Statutory Authority The 2012B Bonds are being issued pursuant to Minnesota Statutes,
Chapter 475, Section 475.58 (subd. 31b).
Statutory Requirements Pursuant to Minnesota Statues, Chapter 475.521, the maximum
calendar year debt service on all outstanding bonds issued under a capital improvement
plan, including the proposed issue, cannot exceed an amount equal to 0.16% of the
taxable market value of the property within the City for taxes payable in the year the bonds
are issued or sold. The City currently has one other existing CIP Bond, the $11,115,000
General Obligation Capital Improvement Plan Bonds, Series 2007D. The maximum
calendar year debt service on the City's CIP debt, including the portion of this issue being
used to refund the CIP Bonds, is estimated to be $2,377,825, which is below the maximum
annual debt service limitation of $8,048,005 as summarized below.
Market Value for Statutory Principal Statutory
Taxes Payable in & Interest Maximum Principal
2012 Limitation & Interest
$5,030,003,164 0.16% $8,048,005
The City must also have a five -year Capital Improvement Plan and comply with the public
hearing requirements outlined in MS 475.521. The City has complied with the
requirements.
SECURITY AND The 2012B Bonds are a general obligation of the City, secured by its full faith and credit
SOURCE OF and taxing power. In addition to tax levies, the City will pay a portion of the debt service
PAYMENT: allocated to the Street Reconstruction Bonds with special assessments against benefited
properties.
The issuance of the 2012B Bonds is being conducted as a "crossover" advance refunding
in which the proceeds of the 2012B Bonds are placed in an escrow account with a major
bank and invested in government securities. These investments and their earnings are
structured to pay interest on the 2012B Bonds through the call dates of each of the Prior
Bonds, at which time the escrow account will crossover and prepay the entire remaining
principal of the Prior Bonds. The City will continue to pay the originally scheduled debt
service payments on the Prior Bonds through their respective call dates. After the call
dates, the City will cross over and begin making debt service payments on the
2012B Bonds, taking advantage of the lower interest rates.
The City will make its first levy for the portion of the 20126 Bonds relative to the Street
Reconstruction Bonds in 2013 for collection in 2014. The City will make its first levy for the
portion of the 2012B Bonds relative to the CIP Bonds in 2014 for collection in 2015. Each
year's first -half collection of taxes will be used to pay the interest payment due August 1 in
the year of collection. Second -half collections plus any taxes collected but not applied on
August 1 will be used to pay the principal and interest payment due February 1 in the
following year.
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STRUCTURING
SUMMARY:
SCHEDULES
ATTACHED:
RISKS /SPECIAL
CONSIDERATIONS:
As directed by the City, the 2012B Bonds have been structured to provide for
approximately even annual savings with a term matching that of the Prior Bonds.
Based on interest rate estimates as of the date of these Recommendations, the refunding
is projected to result in the City realizing interest cost savings for each of the Prior Bonds
as described below:
Average
Annual
Net Future
Net Present
Savings
Value Benefit
Value Benefit
Street Reconstruction Bonds $93,580
$1,125,045
$944,195
CIP Bonds $94,000
$1,413,050
$1,106,730
Total
$2,538,095
$2,050,925
Savings results are shown net of all estimated financing costs.
Schedules showing the preliminary feasibility summary, debt service and the estimated
savings resulting from the refundings, given the current interest rate environment, are
attached.
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.
SALE TERMS AND Bidding Parameters The 2012B Bonds have been structured assuming a premium bid,
MARKETING: whereas the 2012B Bonds are being offered with a minimum bid requirement of par. The
estimated amount of premium generated will compensate the underwriter and fund a
portion of the escrow fund.
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: Bonds maturing on or after February 1, 2023 may be prepaid at a
price of par plus accrued interest on or after February 1, 2022.
Bank Qualification: The City will issue more than $10 million in tax - exempt obligations in
2012; therefore, the 2012B Bonds are not designated as bank qualified.
Springsted Page
$6,805,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds, Series 2012A
Issue Summary
T otal I ssue Sources And Uses
Dated 08/15/2012 1 Delivered 08115/2012
Assessed
Portion
Sources Of Funds
Par Anpunt of Bonds ........ ...... ........ $2,710,000.00
Levy Portion
$4,095,000.00
Issue
Summary
$6,805,000.00
Total Sources.._ .......................... ...............................
$2,710,000.00
$4,095,000.00
$6,805,000.00
Uses Of Funds
Deposit to Project Construction Fund. .........__.__.._.
2556,243.00
4,013,482.00
6.669,725 00
Total Underwriter's Discount (1.200%) .......................
32,520.00
49,140.00
81,660.00
Costs of Issuance _._. _.._...
_....... 19,613.15
29,636.85
49,250.00
Rounding Amount __. _.. ...__
__. _. 1,623.85
2,741.15
4,365.00
Total
2012,1 SI— I li- -,nvvvl AII.SI -11 1 6/ 7/202 1 821 AM
$2,710,000.00 $4,095,000.00 $6,805,000.00
Springsted
111M.
$6,805,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds, Series 2012A
Issue Summary
NET DEBT SERVICE SCHEDULE
Date
Principal
Coupon
Interest
FirstCoupon Dale. ..__.__.._. ...._..._......_ .. ._..... ,.........................................................................
Total P +I
Yield Statis tics
105% of Total
Assessment
Levy
Required
02101/2013
---- .,.,......................... 7.897 Years
-
-
NetInterest Cost ( NIC)._......._.__.....__.____ ............. _. ... ,........................................
-
TrueInterest Cost (TIC).._ ............ . ....... . ...... . ............ ..... ... .......................................................
...... ,... ,....................... .. 2.2545703%
BondYield for Arbitrage Purposes__..._ ........ -- ...... .._. .............................. ..................._......._......_
-
All Inclusive Cost ( AIC)____..._._..........__._..__ ............._....................___................_........_......_..,
..._........._....._.._..._.... 2.3578031%
IRS Form 8038
02101/2014
505,000.00
,.................................................. .._....._ 2.1250048%
0.550%
163,732.12
668,732.12
702,168.73
230,350.00
471,818.73
02/01/2015
550,000.00
0.650%
109,282.50
659,282.50
692,246.63
225,607.50
466,639,13
02/01/2016
550,000.00
0.800%
105,707.50
655,707.50
688,492.88
220,865.00
467,627.88
02101/2017
555,000.00
1.000%
101,307.50
656,307.50
689,122.88
216,122.50
473,000.38
02101/2018
550,000.00
1.200%
95,757.50
645,757.50
678,045.38
211,380.00
466,665.38
02/01/2019
550,000.00
1.400%
89,157.50
639,157.50
671,115.38
206,637.50
464,477.88
02/0112020
555,000.00
1.650%
81,457.50
636,457.50
668,280.38
201,895.00
466,385.38
02/0112021
565,000.00
1.850%
72,300.00
637,300.00
669,165.00
197,152.50
472,012.50
02/01/2022
565,000.00
2.050%
61,847.50
626,847.50
658,189.88
192,410.00
465,779.88
02/01/2023
575,000.00
2.250%
50,265.00
625,265.00
656,52825
187,667.50
468,860.75
02/01/2024
135,000.00
2.450%
37,327.50
172,327.50
180,943.88
182,925.00
(1,981.13)
02101/2025
130,000.00
2.650%
34020.00
164,020.00
172,221.00
178,182.50
(5,961.50)
02/01/2026
130,000.00
2.750%
30,575.00
160,575.00
168,603.75
173,440.00
(4,836.25)
02/01/2027
130,000.00
2.850%
27000.00
157,000.00
164,850.00
168,697.50
(3,847.50)
02/01/2028
130,000.00
2.900%
23,295.00
153,295.00
160,959.75
163,955,00
(2995.25)
02/01/2029
130,000.00
3.000%
19,525.00
149,525.00
157,001.25
159,212.50
(2211.25)
02101/2030
125,000.00
3.050%
15,625.00
140,625.00
147,656.25
154,470.00
(6813.75)
02/01/2031
125,000.00
3.100%
11,812.50
136,812.50
143,653.13
149,727.50
(6,074.38)
02101/2032
125.000.00
3.150%
7,937.50
132,937.50
139,584.38
144,985.00
(5400.63)
02101/2033
125,000.00
3.200%
4,000.00
129,000.00
135,450.00
140,242.50
(4,792.50)
Total
$6,805,000.00
-
$1,141,932.12
$7,946,932.12
$8,344,27873
$3,705,925.00
$4,638,353.73
Dated_....__.___. __ ........... ..._.............. ... .--- ...............................................
,..... ..........__.. 8/15/2012
DeliveryDate.,___. ......_._.._ ..... ........... ......... .....................................
_..,..___... 8/15/2012
FirstCoupon Dale. ..__.__.._. ...._..._......_ .. ._..... ,.........................................................................
.._......__..... 810112013
Yield Statis tics
BondYear Dollars ... ...............___...... _._.._............ _._..,....._..........................................
,.... ,...................................... ........ $53,737.86
AverageLife ..___. ......._..._.._ . ..........................................
---- .,.,......................... 7.897 Years
AverageCoupon........__.__._.... ........... _--- ...... ......... _...___. ............................ ........................
,............................... --- .... .... 2.1250048%
NetInterest Cost ( NIC)._......._.__.....__.____ ............. _. ... ,........................................
,...................................................... ...... 22769647%
TrueInterest Cost (TIC).._ ............ . ....... . ...... . ............ ..... ... .......................................................
...... ,... ,....................... .. 2.2545703%
BondYield for Arbitrage Purposes__..._ ........ -- ...... .._. .............................. ..................._......._......_
_._..___....................... 2.0858347%
All Inclusive Cost ( AIC)____..._._..........__._..__ ............._....................___................_........_......_..,
..._........._....._.._..._.... 2.3578031%
IRS Form 8038
NetInterest Cost. ,.... ...... _..._.___..._ ............... ---- ..............................................
,.................................................. .._....._ 2.1250048%
WeightedAverage Nlaturity.___...... ... ..... ..._._._ ........ ...... . ............ ..................
........................................................ __... 7.897 Years
?01 ?A 511111 Reromrnu-u I II—Su —, i 61 71202 1 821AM
prin sted Page
City of Lakeville, Minnesota
General Obligation Improvement Bonds, Series 2012A
ASSESSMENT INCOME
Date
Principal
Coupon
Interest
Total P +l
12/31/2013
135,500.00
3.500%
94,850.00
230,350.00
12/31/2014
135,500.00
3.500%
90,107.50
225,607.50
12/31/2015
135,500.00
3.500%
85,365.00
220,865.00
12/31/2016
135,500.00
3.500%
80,622.50
216,122.50
12131/2017
135,500.00
3.500%
75,880.00
211,380.00
12/31/2018
135,500.OD
3.500%
71,137.50
206,637.50
12/31/2019
135,500.00
3.500%
66,395.00
201,895.00
12/31/2020
135,500.00
3.500%
61,652.50
197,152.50
12/31/2021
135,500.00
3.500%
56,910.00
192,410.00
12/3112022
135,500.00
3.500%
52,167.50
187,667.50
12/31/2023
135,500.00
3.500%
47,425.00
182,925.00
12/31/2024
135,500.00
3.500%
42.682.50
178,182.50
12/31/2025
135,500.00
3.500%
37940.00
173,440,00
12/3112026
135,500.00
3.500%
33,197.50
168,697.50
12131/2027
135,500.00
3.500%
28,455.00
163,955.00
12/31/2028
135,500.00
3.500%
23,712.50
159,212.50
12/31/2029
135,500,00
3,500%
18,970.00
154,470.00
1213112030
135,500.00
3.500%
14,227.50
149,727.50
12/31/2031
135,500.00
3.500%
9,485.00
144,985.00
12131/2032
135,500.00
3.500%
4,742.50
140,242.50
Total
$2,710,000.00
-
$995,925.00
$3,705,925.00
SIGMFICANT DATES
FilingDate ... ,._ _._.. .. ...... ... ................................... . ...._...._.............. 1101/2013
First Payment Date _... _.... ......_.......... ..._........ .._......._..... ...... ,................................ _._........_... 12/3112013
Se1111 201 ?AA11111 r»h 2012S11.11 I 1/ 7120)2 I858AM
i [ktS$C Page
Relininary
$23,636,000
City of Lakeville, Minnesota
General Obligation Refunding Bonds, Series 2012
Crossover Refunding of Series 2003A, 2004A
Flow of Funds Detail
State and Local Government Series (SLGS) rates for .. ..... .... _.
Preliminary Feasibility Summary
6/05/2012
6/05/2012
Dated 08/15/2012 1 Delivered
08/15/2012
2,037.00
4,145.97
P'imery Purpose Fund Solution Method ., .......... ............ ........... _.
Series 2012 Ref
Net Funded
Net Funded
Total Cost of Investments..._---- .... .... ..... ................. .. ......... _..
2003A (Street
Series 2012
$23,526,845.38
Interest Earnings @0. 236% .......................................... _...........
Reconstruction
Ref 2004A
Issue
Total Draws_ ............................................... ...............................
Bonds)
(CIP Bonds)
Summary
Sources Of Funds
8.146 Years
11.563 Years
10.069 Years
Par Arnwntof Bonds ___...
.......... $10,335,000.00
$13,300,000.00
$23,635,000.00
Reoffering Premum .....
172,614.95
113,37640
285,99135
Total Sources ..................... ...._.................
............................... $10,607,614.95
$13,413,376.40
$23,920,991.35
Uses Of Funds
2.1985975%
2.6553768%
2.4892099%
Total Underw rear's Discount (1. 206%)....__.__.___..
_...__...... 124,62344
160,376.56
285,000.00
Costs of Issuance ........
..._. _....._. 45,913.90
59,086.10
105,000.00
Deposit to Crossover Escrow Fund....__.__........__.
_......__..... 10,334,968.64
13,191876.74
23,526,845.38
Rounding Amount __._.. ...._......
.,.......... 2,10897
2,037.00
4,14597
Total Uses ..................................................
............................... $10,507,614,95
$13,413,376.40
$23,920,991.35
Flow of Funds Detail
State and Local Government Series (SLGS) rates for .. ..... .... _.
6/05/2012
6/05/2012
6/05/2012
Date of OMP Candidates ..... ........ ... .... .. ... ... ................... ..............
2,108.97
2,037.00
4,145.97
P'imery Purpose Fund Solution Method ., .......... ............ ........... _.
Net Funded
Net Funded
Net Funded
Total Cost of Investments..._---- .... .... ..... ................. .. ......... _..
$10,334,968.64
$13,191,876.74
$23,526,845.38
Interest Earnings @0. 236% .......................................... _...........
28,375.90
82,079.15
110,455.05
Total Draws_ ............................................... ...............................
$10,363,344.54
$13,273,955.89
$23,637,300.43
PV Analysis Summary (Net to Net)
Net Pd Cashfbw Savings @ 2. 352 %(Bond Yield) ........ .... ....... .
942,084.52
1,104,695.45
2,046
Contingency or Rounding Armunt.............. ......_._............. ....... .
2,108.97
2,037.00
4,145.97
Net Resent Value Benefit..........._..,...,,..._,....._ ................._......
$944,193.49
$1,106,732.45
$2,050,925.94
Net W Benefit / $22, 495,000 Refunded Principal .. .....
9.409%
8.882%
9.117%
Net PV Benefit /$23, 635,000 Refunding Principal....... _ .............
9.136%
8.321%
8.677%
Bond Statistics
Average Life ........... ................__.............. ...........................
8.146 Years
11.563 Years
10.069 Years
Average Coupon.... .---- ............ ......................................... .....
2.2708752%
26369956%
2.5074766%
Net Interest Cost ( NIC).. ................. ...___.. ....._._........_..............
2.2138684%
2.6675573%
2.5070601%
Bond Yield for Arbitrage Purposes ..... . ................_...._. ........
2.3523193%
2.3523193%
2.3523193%
True interest Cost ( TIC). ... ...... .... .... ......... ._.......... .. ... ... ........... _
2.1985975%
2.6553768%
2.4892099%
All Inclusive Goal ( AIC).._...._. ..... .--- ...... ......_._..._................_.
2.2591325%
2.7010134%
2.5401908%
S,— 20131W 201; 4201 lenmi scummy 1 61112 012 1 9.214,11
pr ngsted Page
R elimnary
$10,335,000
City of Lakeville, Minnesota
General Obligation Street Reconstruction Refunding Bonds, Series 2012
Crossover Refunding of Series 2003A - Street Reconstruction Bonds
Debt Service Schedule
Date
Principal
Coupon
Interest
Total P +i
02/01/2013
-
-
103,622.04
103,622.04
02/01/2014
-
-
224,722.50
224,722.50
02/01/2015
830,000.00
2000%
224,722.50
1,054,722.50
02/01/2016
845,000.00
2.000%
208,122.50
1,053122.50
02/01/2017
780,000100
2,000%
191,222.50
971,222.50
02/01/2018
800,000.00
2.070%
175,622.50
975,622.50
02/01/2019
815,000.00
2.200%
159,062.50
974,062.50
02/01/2020
840,000,00
1650%
141,132.50
981,132.50
02/01/2021
855,000.00
1.850%
127,272.50
982,272.50
02/01/2022
870,000.00
2.050%
111,455.00
981,455.00
02/01/2023
890,000.00
2.250%
93,620.00
983,620.00
02/01/2024
915,000.00
2450%
73,595.00
988,595.00
02/01/2025
935,000.00
2.650%
51,177.50
986,177.50
02/01/2026
960,000.00
2.750%
26.400.00
986,400.00
Total
$10,335,000.00
-
$1,911749.54
$12,246,749.54
Yield Statistics
Bond Year Dollars ..................... . _...
AverageUe ... ......... .--- ........................
Average Coupon .............. ...
Net Interest Cost (NIC) ..................... ............
.....................
True Interest Cost ( TIC) ........ ............. ........... ...............................
Bond Y field for Arbitrage Purposes ....... .... ...................................
All Inclusive Cost (AIC) ........ ............... -. ......._........_.
IRS Form 8038
Net Interest Cost. .... ,................... ................. ............_._...,...
Weighted Average Wturity ........ ........ _..... _. ............... .---- .....
S,-, 2012 Ref2003A, d0 Serles 2012 Rlf2003A 1 61612012 1 8 21 AM
$84,185.58
8.146 Years
2.2708752%
................ 2.2138684%
................. 2.1985975%
................. 2.3523193%
................ 2.2591325%
................. 2.0464394%
................. 8.088 Years
rin sted Page 10
Preliminary
$13,300,000
City of Lakeville, Minnesota
General Obligation Capital Improvement Plan Refunding Bonds, Series 2012
Crossover Refunding of Series 2004A- CIP Bonds
Debt Service Schedule
Date
Principal
Coupon
Interest
Total P +1
02/01/2013
-
-
152,501.89
152,501.89
02/01/2014
-
-
330,727.00
330.727.00
02/01/2015
-
-
330,727.00
330,727.00
02/0112016
600.000.00
2.000%
330,727.00
930,727.00
0210112017
620.000.00
2000%
318,727.00
938,727.00
02/01/2018
635,000.00
2.070%
306,327.00
941,327.00
02/01/2019
665,000.00
2.200%
293,182.50
958,182.50
02101/2020
700,000.00
1.650%
278,552.50
978,552.50
02/0112021
745,000.00
1.850%
267,002.50
1.012,002.50
02101/2022
790,000.00
2.050%
253,220.00
1,043,220.00
02/01/2023
845,000.00
2.250%
237,025.00
1,082,025.00
02/01/2024
900,000.00
2.450%
218,012.50
1,118,012.50
02/01/2025
955,000.00
2.650%
195,962.50
1,150,962.50
02/01/2026
1,020,000.00
2.750%
170,655.00
1,190,655.00
02/01/2027
1,095,000.00
2.850%
142,605.00
1,237,605
00
02/01/2028
1,165,000.00
2.900%
111,397.50
1276,397.50
02/01/2029
1,240,000.00
3.000%
77612.50
1.317612.50
02/01/2030
1,325,000.00
3.050%
40,412.50
1,365,412.50
Total
$13,300,000.00
-
$4,055,376.89
$17,355,376.89
Yield Statistics
BondYear Dollars..._ ........................_._......._ ,...._.............._..........
AverageLife...._ .......................................... ._..........__..._....._.......
Average Coupon. ............... ........... .. ........................ ......
Net Interest Cost ( NIC)...._ ..... ............. ........... ............. - .,................
True Interest Cost (11C).... ............. ... ---- .............. .....................
Bond Yield for Arbitrage Purposes.......... .... . .......... ..................
All Inclusive Cost ( AIC) ..... ............
IRS Form 8038
Net Interest Cost_......__..., ...... .._ ................
.. ...._ .............._....._.....
Weighted Average Maturity- _..._ .............. .... ......_....,.......................
S—, 80II Ref2003A, 20 IS—,, M12 Ref 2004A 1 6162012 1 824 AM
$153787.78
11.563 Years
2.6369956%
.............. 2.6675573%
............... 2.6553768%
.............. 2.3523193%
.............. 23010134%
2. 5537103 %
11.508 Years
Spristd Page 11
Prelimnary
$10,335,000
City of Lakeville, Minnesota
General Obligation Street Reconstruction Refunding Bonds, Series 2012
Crossover Refunding of Series 2003A - Street Reconstruction Bonds
Debt Service Comparison
Date
Total P +I
Escrow
Existing DB Net New D'S
Old Net US
Savings
02/01/2013
103,622.04
(103,622.04)
918,091.25 918,091.25
918,091.25
-
02/01/2014
224,722.50
(10,259,722.50)
11,187,382.50 1,152,382.50
1,152,382.50
-
02/01/2015
1,054,722.50
-
- 1,054,722.50
1,149,382.50
94,660.00
02101/2016
1,053,122.50
-
- 1,053,122.50
1,145,382.50
92,260.00
02/01/2017
971,222.50
-
- 971,222.50
1,065,382.50
94,160.00
02/01/2018
975,622.50
-
- 975622.50
1,067,382.50
91760.00
02/01/2019
974,062.50
-
- 974,062.50
1,068,182.50
94,120.00
02/01/2020
981,132.50
-
- 981,132.50
1,072,782.50
91,650.00
02/01/2021
982,272.50
-
- 982,272.50
1,074,968.76
92,71626
02101/2022
981,455.00
-
- 981,455.00
1,074,713.76
93,258.76
02/01/2023
983,620.00
-
- 983,620.00
1,077,518.76
93,898.76
02/01/2024
988,595.00
-
- 988,595.00
1,082,925.00
94,330.00
02/01/2025
986,177.50
-
- 986,177.50
1,081,125.00
94,947.50
02/01/2026
986,400.00
-
- 986,40000
1,081,575.00
95,175.00
Total
$12,246,749.54
(10,363,344.54)
$12,105,47375 $13,988,87875
$15,111,815.03
$1,122,936.28
PV Analysis Summary (Net to Net)
Net FV Cashflow Savings. .. ..... .. ....................... ........__-
.. ...._.._ ........... 1,122,936.28
Gross PV Debt Service Savings........... ......... ................ ..................
... .. ... 942,084.52
Net PV Cashflow Savings @ 2.352 %(Bond Yield)_ ........... .._...__... ........_........
.......... ............. 942,084.52
Contingency or Rounding Anount .... ......... .... _._....._. .._ ........ ..............
...................._._... 2,108.97
NetFuture Value Benefit..._. ........ _ ................................................. . ........... .......................
............_._- $1,125,045.25
Net Present Value Benefit...... ...... _ ......... . ........ ......... ............. ....._...
... .........__._... -... $944,193.49
Net PV Benefit / $2,612,882.97 PV Refunded Interest. ........ ...... ... ........... ..........................._.
.................._............ 36136%
Net Pd Benefit / $10,888,038.92 PV Refunded Debt Service ., ........ __ ....................
.................... 8.672%
Net PV Benefit / $10,035,000 Refunded Principal ........... .............. .. ................
....... ,............ .... 9.409%
Net PV Benefit /$10,335,000 Refunding Principal ............ ......_._...._ ... ......
................. ...... 9.136%
Refunding Bond Information
RefundingDated Date.,_...,.... ._ ............._ .._._......._. ......................................... ... ,..........................
8/15/2012
Refunding Delivery Date....... ... ...... .... _. ... ....._ . .............. .,.............................................
8/15/2012
senex 2012 6,,12003,1, 20 1 Setles 2012 Ref 2003,1 j & 62012 1 8 21 AM
Springsted Page 12
Reiminary
$13,300,000
City of Lakeville, Minnesota
General Obligation Capital Improvement Plan Refunding Bonds, Series 2012
Crossover Refunding of Series 2004A - CIP Bonds
Debt Service Comparison
Date
Total P+I
Escrow EAsting DJS
Net New US
Old Net D/S
Savings
02/0112013
152,501.89
(152,501.89) 582,053.13
582,053.13
582,053,13
-
02/01/2014
330,727.00
(330,727.00) 912,906.26
912906 26
912,90626
-
02J0112015
330,727.00
(12,790,72700) 13,400,106.26
940,10.26
940,10626
-
02/01/2016
930,727.00
- -
930,727.00
965,70626
34,979.26
02/01/2017
938,727.00
- -
938,727.00
993,70626
54,979.26
02/01/2018
941,327.00
- -
941,327.00
1,024,79376
63466.76
02/0112019
958,182.50
- -
958,182.50
1,053,75626
95,573.76
02/01/2020
978,552.50
- -
978,552.50
1,084,912.50
106,360.00
02/01/2021
1012,002.50
- -
1,012,002.50
1,117,91250
105,910.00
02/01/2022
1,043,220.00
- -
1,043,220.00
1,148,21250
104,992.50
02/0112023
1,082,025. DO
- -
1,082,025.00
1,185,81250
103,787.50
02/0112024
1,118,012.50
- -
1,118,012.50
1,220,26250
10225000
02/01/2025
1,150,962.50
- -
1,150,962.50
1,256,56250
105.600.00
02/01/2026
1,190,655.00
- -
1190,655.00
1,294,48750
103,832.50
OZ01/2027
1,237,605 00
- -
1,237,605.00
1,338,812.50
101207.50
02/01/2028
1,276,397.50
- -
1,276,397.50
1,377,982.50
101,585,00
02/01/2029
131761250
- -
1,317,612.50
1,423,012.50
105,40000
02/01/2030
1,365,412.50
- -
1,365,412.50
1466,50000
101,087.50
Total
$17,355,376.89
(13,273,955.89) $14,895,05.65
$18,976,40.65
$20,387,498.19
$1,411,011.54
PV Anaysis Summary (Net to Net)
Net PV CasMlow Savings._. ._ ............. ...... ,.. ...... ................
...... ........ .... .... _. 1,411,011.54
Gross PV Debt Service Savings ..,....._. ............. .... .......... .
...._... ............ 1,104,695.45
Net R/ Cashflow Savings @ 2.352% (Bond Yield ).._......... .__..,., - - ........ ..........._...
.......................... 1,104,695.45
Contingency or Rounding Arrount ....... . _.... .... .--- ......... ................. .......................
...... ............ ..._.__. 2,037.00
Net Future Value Benefit...._ .... ---- ...................................... .......... ...............
........................... $1,413,048.54
NetResent Vaae Benefit..,. _ ... ............. _. ............................... .. .....__
......_...................- $1,106732.45
Net PV Benefit/$4,527,674.13 PV Refunded Interest....,.._ _ .. .............. ............
............................... 24.444%
Net Pv Benefit/$13,972,342.63 PV Retunded Debt Service .__..... ......_......._.
.............................. 7.921
Net Pd Benefit /$1 Z 460,000 Refunded Principal ................ ._..,.... .... .... ..............
..............,,....... 8.882%
Net Pd Benefit /$13,300,000 Refunding Principal .............. .........._...... ..... _,.....
.............._.,,.,.,,.. 8.321%
Refunding Bond Information
Refunding Dated Date ................ ....... .............. .............. ....... ,................................
...... ,..... ...... ....... ..... 8/15/2012
Refunding Delivery Dal,...... .... ........ ............... ..._............ ......... ................
_.............,....,,.... 8/15/2012
Swsea 2012 X f 2003A, 20 8- 204 R j 2004A 1 N 6/202 1 8'24 AM
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