HomeMy WebLinkAboutItem 06.nJune 16, 2014 Item No.
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF $9,160,000 GENERAL
OBLIGATION IMPROVEMENT BONDS, SERIES 2014A
Proposed Action
Move to approve the Resolution Authorizing Issuance and Sale of $9,160,000 General Obligation
Improvement Bonds Series 2014A
Passage of this motion will result in the financing of the 2014 street reconstruction project.
Overview
The proposed bond issue will finance the 2014 street reconstruction project costs. Contracts for
the improvements were approved by the City Council April 21.
The debt will be repaid with a combination of property taxes, special assessments and water use
fees. The City share of projects costs (approximately $4.115 million) will be repaid with property
taxes amortized over a 10 year period commencing in 2015. Special assessments were levied to
benefited properties (approximately $2.52 million); the special assessments will be repaid over a
20 year period. The water main replacements ($2.485 million) will be repaid with water use fees
over a 10 year period.
The bid opening for the bonds is at 10:00 a.m. on Monday July 21; results of the bid opening and
recommendations will be presented to the City Council at its regular meeting that same night.
Primary Issues to Consider
• Call provisions. Bonds maturing 2/1/2024 and thereafter are callable 2/1/2023 or
thereafter.
ends
Financial Impact: See attached Budgeted: Y Source: Taxes and Special Assessments
Related Documents (CIP, ERP, etc.):
Notes:
Supporting Information
CITY OF LAKEVILLE
RESOLUTION
Date: June 16, 2014 Resolution No.
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF
$9,160,000 GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 2014A
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 2014A, in the aggregate principal amount of $9,160,000 (the
Bonds), pursuant to Minnesota Statutes, Chapters 429 and 475, to finance various 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. 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 16' day of June, 2014.
CITY OF LAKEVILLE,
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Clerk
City of Lakeville, Minnesota
Recommendations for Issuance of Bonds
$9,160,000 General Obligation Improvement Bonds, Series 2014A
$13,730,000 General Obligation Refunding Bonds, Series 2074B
The City Council has under consideration the issuance of bonds to (1) finance the 2014 Street Reconstruction
projects and (ii) refund two general obligation issues for interest cost savings. This document provides information
relative to the proposed issuance.
KEY EVENTS: The following summary schedule includes the timing of some of the key events that will
occur relative to the bond issuance.
June 16, 2014
City Council sets sale date and terms
Week of July 7, 2014
Rating conference is conducted
July 21, 2014,10:30 AM
Competitive bids are received
July 21, 2014, 7:00 PM
City Council considers award of bonds
August 20, 2014 (est.)
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 ( "13131 °)
which measures the yield of high grade municipal bonds in the 20 year for general
obligation bonds (the BBI 20 Bond Index) and the 30 year for revenue bonds (the BBI 25
Bond Index). The following chart illustrates these two indices over the past five years.
BBI 25 -bond (Revenue) and 20 -bond (G.O.) Rates for 5 Years
Ending 5/29/2014
8.5%
6.0%
5.5%
4.5%
4.0%
3.5%
3.0%
---- D5125Bono
--BBI 20 Bond
M
Dates Prepared by Spdngsred IncaWrated
0
O N
Z �
Springsted
I
57019
26e0M: {,7ak
.
206axx 47e%
---- D5125Bono
--BBI 20 Bond
M
Dates Prepared by Spdngsred IncaWrated
0
O N
Z �
Springsted
POST ISSUANCE The issuance of these bonds will result in post- issuance compliance responsibilities. The
COMPLIANCE: responsibilities are 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 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 arbitrage rules provide an exception from rebate provisions for gross proceeds that are
spent within an 18 -month period in accordance with certain spending criteria. The City
expects to meet the 18 -month spending exception with respect to the Series 2014A Bonds
and gross proceeds that meet the test will qualify for an exception to rebate.
Since the issuance of the Series 2014B Bonds includes an advance refunding component,
an expenditure exception for rebate is not available. The proceeds of the advance
refunding portion of the Series 2014B 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 Series 2014B Bonds; therefore, no excess
arbitrage will be earned on sale proceeds.
Yield restriction provisions will apply to the debt service fund and any project proceeds
unspent after three years under certain conditions and the funds should be monitored
throughout the fife 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.
Springsted currently provides arbitrage and continuing disclosure compliance services to
the City under separate contracts. Contract amendments adding these issues will be
provided 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, a bond record will be provided that contains pertinent
documents and final debt service calculations for the transaction.
$9,160,000 General Obligation Improvement Bonds, Series 2014A
Description of Issue
PURPOSE: Proceeds of the Series 2014A Bonds, together with $21,828 of prepaid assessments, will
be used to finance the City's 2014 Street Reconstruction Projects.
apringsfed Paget
POST ISSUANCE The issuance of these bonds will result in post - issuance compliance responsibilities. The
COMPLIANCE: responsibilities are in two primary areas: i) compliance with federal arbitrage requirements
and ii) compliance with secondary disclosure requirements.
Federal arbitraoe 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 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 arbitrage rules provide an exception from rebate provisions for gross proceeds that are
spent within an 18 -month period in accordance with certain spending criteria. The City
expects to meet the 18 -month spending exception with respect to the Series 2014A Bonds
and gross proceeds that meet the test will qualify for an exception to rebate.
Since the issuance of the Series 20148 Bonds includes an advance refunding component,
an expenditure exception for rebate is not available. The proceeds of the advance
refunding portion of the Series 2014B 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 Series 2014B Bonds; therefore, no excess
arbitrage will be earned on sale proceeds.
Yield restriction provisions will apply to the debt service fund and any project proceeds
unspent after three years under certain conditions and 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.
Springsted currently provides arbitrage and continuing disclosure compliance services to
the City under separate contracts. Contract amendments adding these issues will be
provided 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, a bond record will be provided that contains pertinent
documents and final debt service calculations for the transaction.
$9,160,000 GeneralObllgation Improvement Bonds Series 2O14A
Description of Issue
PURPOSE: Proceeds of the Series 2014A Bonds, together with $21,828 of prepaid assessments, will
be used to finance the City's 2014 Street Reconstruction Projects.
Springsted Page
AUTHORITY: The Series 2014A Bonds are being issued pursuant to Minnesota Statutes, Chapters 429
and 475.
Statutory Reauirements: Chapter 429 requires that no less than 20% of the project costs
be assessed. The City is assessing approximately 28% of the project costs and therefore
meets the statutory requirements.
SECURITY AND The Series 2014A Bonds will be general obligations of the City, secured by its full faith and
SOURCE OF credit and taxing power. The Series 2014A Bonds will be paid from a combination of
PAYMENT: property taxes and special assessments against benefited properties. The City will make
its first levy for the Series 2014A Bonds in 2014 for collection beginning in 2015.
Assessments in the principal amount of $2,520,000 will be spread over a term of 20 years
With equal annual principal payments. Interest will be charged on the unpaid balance at a
rate of 3.75 %. Assessments are expected to be filed in 2014 for first collection beginning
in 2015.
Assessments are expected to pay 100% of the debt service on the assessed portion of the
Series 2014A Bonds.The City will be required to levy ad valorem taxes to pay debt service
on the levy and water fund portions of the Series 2014A Bonds. The City expects to use,
but not pledge, revenue of the water fund to offset the levy on the water fund portion of the
issue. Interest on the Series 2014A Bonds due February 1, 2015 has been capitalized with
bond proceeds.
STRUCTURING At the direction of the City, the Series 2014A Bonds have been structured with three
SUMMARY: purposes over different terms. The assessed portion of the issue was amortized over a
term of 20 years and structured around the assessment income stream to provide for level
annual surplus. The levy and water fund portions of the issue were each structured over
terms of 10 years to provide for even annual levy requirements.
SCHEDULES Schedules attached include a sources and uses of funds, assessment income and
ATTACHED: estimated net debt service requirements, in aggregate and by purpose, given the current
interest environment.
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: The Series 2014A Bonds maturing on or after February 1, 2024
may be prepaid at a price of par plus accrued interest on or after February 1, 2023.
Bank Qualification: The City is issuing more than $10 million in tax - exempt obligations in
the current calendar year; therefore the Series 2014A Bonds Bonds are not designated as
bank qualified.
Sprl rig sted Page
$13,730,000 General Obligation Refunding Bonds, Series 2014B
Description of Issue
PURPOSE: The proceeds of the Series 2014B Bonds will be used to advance crossover refund (i) the
City's General Obligation Street Reconstruction Bonds, Series 2005A (the "Series 2005A
Bonds "); and (ii) the City's General Obligation Capital Improvement Plan Bonds,
Series 2007D (the "Series 2007D Bonds "). The Series 2005A Bonds and the Series 2007D
Bonds are together referred to herein as the "Prior Bonds." These refunding transactions are
being undertaken to achieve interest cost savings.
The Series 2005A Bonds were originally issued to finance three street reconstruction
projects.
The Series 2007D Bonds were originally issued to finance the cost of constructing and
furnishing a police station as well as the cost of acquiring the land on which it was
constructed.
The table below shows the detailed information related to the Prior Bonds:
Refunded Refunded Refunded
Issue Refunded Maturities Principal Call Date Avg. Cpn.
Series 2005A Feb. 1, 2017 -2026 $1,950,000 Feb. 1, 2016 4.07%
Series 2007D Feb. 1, 2018 -2032 $11,185,000 Feb. 1, 2017 4.82%
AUTHORITY: Statutory Authority: The Series 20148 Bonds are being issued pursuant to Minnesota
Statutes, Chapter 475.
Statutory Requirements: Minnesota Statutes require that advance refundings, in certain
cases, achieve a minimum present value savings level of 3% of the present value of
refunded debt service. The refundings of the Prior Bonds achieve savings in excess of
the 3% minimum, both on a collective and individual basis.
SECURITY AND The Series 2014B Bonds will be general obligations of the City for which the City will pledge
SOURCE OF its full faith and credit and power to levy direct general ad valorem taxes. In addition, the
PAYMENT: City will pledge special assessments from benefited properties originally pledged to the
Series 2005A Bonds.
The issuance of the Series 2014B Bonds is being conducted as a crossover advance
refunding in which the proceeds of the Series 2014B Bonds are placed in an escrow
account with a major bank and invested in government securities. These investments and
their earnings are structured to pay interest on the Series 20148 Bonds to and including the
call dates of the Prior Bonds, at which time the escrow account will prepay the remaining
principal of the Prior Bonds. The City will continue to pay the originally scheduled debt
service payments on the Prior Bonds through their respective call dates. After their
respective call date, the City will cross over and begin making debt service payments on
that portion of the Series 2014B Bonds, taking advantage of the lower interest rates.
Springs$O£j Page
STRUCTURING At the direction of City staff, the Series 2014B Bonds have been structured to provide for
SUMMARY: approximately even annual savings with a term matching that of each of the Prior Bonds.
The table below provides detailed estimates with respect to the level of savings for each of
the Prior Bonds assuming interest rates as of the date of these Recommendations:
Refunded
Average
Future
Present
Present Value
Issue
Annual
Value
Value
Savings %
Savings
Savings
Savings
Series 2005A
$38,200
$151,980
$90,840
4.49%
Series 2007D
$80,960
1,209,985
934,811
7.64%
Based on the assumed interest rates the refunding issue has a true interest cost of 2.76 %.
SCHEDULES Schedules attached include: a preliminary feasibility summary, estimated debt service
ATTACHED: requirements and interest cost savings, in total and individually for the Prior Bonds, given
the current interest rate environment.
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: The Series 2014B Bonds maturing on or after February 1, 2025
may be prepaid at a price of par plus accrued interest on or after February 1, 2024.
Bank Qualification: The City is issuing more than $10 million in tax - exempt obligations in the
current calendar year; therefore the Series 2014B Bonds Bonds are not designated as bank
qualified.
FEDERAL The Series 2014B Bonds are an advance refunding under federal tax law and may not
CONSIDERATIONS themselves be advance refunded using tax exempt bonds. If market conditions permit, a
AND /OR current refunding could be done at or after the call date.
REQUIREMENTS:
Tax exempt advance refunding transactions have more restrictive federal arbitrage
limitations than current refunding issues as they pertain to the escrow account. Coincident
with the sale of the Series 2014B Bonds, a verification agent will be retained by the City to
confirm that the refunding escrow is in compliance with federal yield restrictions and will also
verify the adequacy of the escrow to satisfy its cash flow requirements.
Springsted Page
$9,160,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2014A- Issue Summary
Total Issue Sources And Uses
Dated 08/20/20141 Delivered 08/2012014
Issue
Assessed City Levy Water Fund Summary
Sources Of Funds
Par Anount of Bonds.
Repaid Assessnents
Total Sources..........
Uses Of Funds
Contract................................ ...............................
Engineering ........................... ...............................
Other..................................... ...............................
Total Underw riter's Discount (1.000 %) ..............
Deposit to Capitalized Interest (CF) Fund............
Costs of Issuance ................. ...............................
Rounding Armunt .................. ...............................
Total Uses
$2,520,000.00 $4,155,000.00 $2,485,000.00 $9,160,000.00
21,828.00 - - 21,828.00
$2,541,828.00 $4,155,000.00 $2,485,000.00 $9,181,828.00
1,958,360.00
302,397.00
212,006.00
25,200.00
28,272.27
15,268.55
324.18
$2,541,828.00
3,216,346.00
496,648.00
339,291.00
41,550.00
32,838.41
25,174.95
3,151.64
$4,155,000.00
1,972,456.00
304,574.00
150,288.00
24,850.00
19,635.29
15,056.50
(1,859.79)
$2,485,000.00
7,147,162.00
1,103,619.00
701,585.00
91,600.00
80,745.97
55,500.00
1,616.03
$9,181,828.00
2014A GO 1,Wrowmen( bond IAsue Summary 16/4/ OW I2:37PM
SPrin9St6,i
Page 6
$9,160,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2014A- Issue Summary
Aggregate Net Debt Service
DATE
2014A GO
Improvement
Bonds
Assessed
2014A GO
Improvement
Bonds City
Levy
2014A GO
Improvement
Bonds Water
Fund
TOTAL
02101/2016
208,217.50
463,427.50
278,905.00
950,550.00
02/01/2017
202,420.00
466,282.50
277,612.50
946,315.00
02/01/2018
196,230.00
462,925.00
275,615.00
934,770.00
02/01/2019
194,677.50
463,382.50
277,912.50
935,972.50
02/01/2020
187,720.00
467,582.50
279,432.50
934,735.00
02/01/2021
185,510.00
465,612.50
280,267.50
931,390.00
02/01/2022
182,975.00
467,520.00
275,392.50
925,887.50
02/01/2023
175,115.00
463,170.00
279,892.50
918,177.50
02/0112024
172,177.50
463,065.00
278,782.50
914,025.00
02/01/2025
169,115.00
467,285.00
277,290.00
913,690.00
02/01/2026
160,740.00
-
-
160,740.00
02/01/2027
157,320.00
-
-
157,320.00
02/01/2028
153,660.00
-
-
153,660.00
02/01/2029
149.760.00
-
-
149,760.00
02101/2030
145,740.00
-
-
145,740.00
02/01/2031
141,600.00
-
-
141,600.00
02/01/2032
137,400.00
-
-
137,400.00
02/01/2033
133,140.00
-
-
133,140.00
02/01/2034
128,820.00
-
-
128,820.00
02/01/2035
124,440.00
-
-
124,440.00
Total
$3,306,777.50
$4,650,252.50
$2,781,102.50
$10,738,132.50
Par Amounts Of Selected Issues
2014AGO Ir provernent- Assessed ..................................................................................
............................... 2.520.000.00
2014AGO hrprovemen -City Levy... ................. .....................................................................
................... 4.155.000.00
2014AGO Irrproveme -Water Fund..... .......................... ......................................................
........................... 2.485.000.00
TOTAL..............................................................................................................................
............................... 9,160,000.00
g88n'Sae 1 61412014 1 2.39PM
Page 7
N W P Q 0 O O tp O m n M N N N
d O n n O tU Oi O `O 1� P M P m M
S C
C
X 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
O O O O O O O O O O O O O O O O O O O O
O
O
b
O N O Y) O N O N O N O N O N O N O N O N
O
E'
O N N O n N N O n N N O n N N O' W N
W O N W W O M W n
M1pp W W P n
N
N
b
d
( nnm p
O N � O O N O m 0 n r N N N N O
N P m O O J
N
P
10 N P W
Q
W
N lV N (J
N
(V n
f_
n M O l� N m N n W Q P N W n W f0 W
M
O
00. P W � H-0-- p n M n � M N O W Q N n N W
W O W 0 ro r N N m b W N h Q
O
A
e
W W W W W W � �
V v
N
O
H
Y C
m �
E
a)
p O N
� a w
c
Y O Q�
J O N
_ a
C) 0
m'
C co
c�
J
7
W
2
it
FA
Vl
m
W
O
W
z
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
y O O O m O O m N O O O O O O O O O O O O
`d O Vf O N N C r n N O O O C O O G O O p O
3 N M p h m n M m O m n M m r r m Q m Q
h Q M M M N m P M O r M m N
W m m m �2 t2 . .
LL m
(j ° n
n 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
m S O O N O O N m O O O O O O O O O O O O
h O' O (V try O r n N O O O O O 666 O O O
n
a n N M I� m n C] m O m r M 1p n n 1p Q m Q
do16 vi Zvi aiv oionoi dvi neimv
ab+ m P
N
e m m m m m m m m m m
f
r O O O O O O O O O O O O p p p p p p p p
m o 0 0 N o o N N O o 0 0 o p o 0 0 0 0 0
W b P M M N N N
, eeeeeeeeeeeeeeeeee�e
O O O O O O O O O O O O O O O O O O O O O
6 N m m m O N O N N O N N N m m O m O N O
O N m P r m N M Q r W O N M Q m N m m r
U Q r r r r CV N [V N lV Cl co ty 66 6 66 M
O O O O O O O O O O O O 0 0 0 0 0 0 G
p c o o o o o 00000$ 0 o 00 o 0
O O O G O O O O O O C O O G O O O C O C
o, 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 c
0 6 o p o 0 0 0 0 0 0 o 0 0 0 0 0 0 o c
C G O h t0 N Vi N N O W O O O O O O C O O O C
rm mmO MN "
N N N N N N N N N N W M M M f7 M
0.0. O O O O O O O O O O O O O O O O O
' N N ` ' N
o O O O O O O O O O O O O O O O O O O O O O
aaaaaaaaaaaaa a
1 00 O 00.00 O 00 p . p 0 p O 0 p 0 p 0 m p 0 p
P A N
m i e
e e e e
e
N
n
O O
N a
y p •p m pmj
� Y
yi M V
10 N P W
P
n lV
N lV N (J
N
(V n
2 y
1
N
N
S
J
� d a
� m a
m
C d 4
m &a
p m Q
U O
d d �
oC
W
E;
a
LL 3
Page 8
C
E F
9
d F
� F
Q
d O
t U
m�
�S�
$2,520,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds, Series 2014A
2014 Projects Assessments
ASSESSMENT INCOME
Date
Principal
Coupon
Interest
Total PA
12131/2015
126,000.00
3.750%
94,500.00
220,500.00
12/31/2016
126,000.00
3.750%
89,775.00
215,775.00
12/31/2017
126,000.00
3.750%
85,050.00
211,050.00
12/31/2018
126,000.00
3.750%
80,325.00
206,325.00
12/31/2019
126,000.00
3.750%
75,600.00
201,600.00
12131/2020
126,000.00
3.750%
70,875.00
196,875.00
12/31/2021
126,000.00
3.750%
66,150.00
192,150.00
12/31/2022
126,000.00
3.750%
61,425.00
187,425.00
12/31/2023
126,000.00
3.750%
56,700.00
182,700.00
1213112024
126,000.00
3.750%
51,975.00
177,975.00
12/31/2025
126,000.00
3.750%
47,260.00
173,250.00
12/31/2026
128,000.00
3.750%
42,525.00
168,525.00
12/31/2027
126,000.00
3750%
37,81)0.00
163,800.00
12131/2028
126,000.00
3.750%
33,075.00
159,075.00
12/31/2029
126,000.00
3.750%
28,350.00
154,350.00
12/31/2030
126,000.00
3.750%
23,625.00
149,625.00
12/3112031
126,000.00
3.750%
18,900.00
144,900.00
12/3112032
126,000.00
3.750%
14,175.00
140,175.00
12131/2033
126,000.00
3.750%
9,450.00
135,450.00
121312034
126,000.00
3.750%
4,725.00
130,725.00
Total
$2,520,000.00
-
$992,250.00
$3,512,250.00
SIGNIFICANT DATES
Fling
First
20MA Assessments I SKGt PURPOSE 1614120M I ]3)PM
1/012015
12/31/2015
Sprirtgsted Page
moonoorn rn M'6o 000000000
y m O N b O N N N m N O O O O O O O O O O
rN O m to M
M O O) 2
N OP P M V 0 m O t M m
m N O m P N
m
w C
o m
C �
N
N
N
N
O 0 N
O N E F C4 > C
M Y o
J � �
O m`
m N
d
U �
c�
VI N O O N O O O O N O O O O O O O O O O O
2S n O O IM1 O C VI rA f� N O O O O O O O O O O
g N m e m n M m n n b Q W
yr W N W Q n N N N W O n M " v n M W Q
Zy N N m W W m m- n 0!- mm,
Z
LL N
U N
n o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o b O
N N O O ^ N O O O O m O O O O O O O O O O O
r N m n N r p N S I t V S S Q N O
LL NNQ I.ironmm��.- nMbnnm Q�m�
y O ro fV m P n N N Y) lV Oi O h (tl W r(1 n Ol m Q
N N O O N O O O O N O O O O O O
N N Q N m n rp m Vd n M !O n n m Q W Q
d m M N Oi Ih N N O n Q O n M N Vi
N b m tp N N N N N P P Q M M N N N
C
O O O O O O O O O O O O O O O O O O O O
O
d
O N O N O rn O V1 � O V1 O rn p Vi O H O Iry
N O
O
d
M (O W P n m N N W O M W Of P n
N
N O N r (p N r (V n C'1 m M Oi Y pi yy O h O
O O
N
d
d
N N N N N
° o
d
Q
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
r+l
m
C Co
6 6 6 6
� Q m� I' C M'` N N N N N N N NNN N
t7 O
d
M O N M O N n n M n O O O O O O O O O
M
n O
O
W N O O O A O S W r S b W N Y V S M M
r
Q
VI N O O N O O O O N O O O O O O O O O O O
2S n O O IM1 O C VI rA f� N O O O O O O O O O O
g N m e m n M m n n b Q W
yr W N W Q n N N N W O n M " v n M W Q
Zy N N m W W m m- n 0!- mm,
Z
LL N
U N
n o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o b O
N N O O ^ N O O O O m O O O O O O O O O O O
r N m n N r p N S I t V S S Q N O
LL NNQ I.ironmm��.- nMbnnm Q�m�
y O ro fV m P n N N Y) lV Oi O h (tl W r(1 n Ol m Q
N N O O N O O O O N O O O O O O
N N Q N m n rp m Vd n M !O n n m Q W Q
d m M N Oi Ih N N O n Q O n M N Vi
N b m tp N N N N N P P Q M M N N N
N b n
N N N N N N N N N N M M M M M M S9
0 0 0 0 0 0 0 o O o O o 0 0 0 0 o O O o O o
d N N N N N N N N N N N N N NNN N N N N N H
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Springsted
0
0 0 0 0 0 o O o 0 o O o o O O o 0 o O O
N m P n m N M Q n W O N M Q N N b m n
U
IV (V lV lV N M Oi td (7
° 0 0 0 0 0 o o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O
o 0
o.
Ci
o o ° o ° 0 0 ° o ° o o O o 0 ' 0 88
° o
16°a�
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
O
C Co
6 6 6 6
� Q m� I' C M'` N N N N N N N NNN N
t7 O
N b n
N N N N N N N N N N M M M M M M S9
0 0 0 0 0 0 0 o O o O o 0 0 0 0 o O O o O o
d N N N N N N N N N N N N N NNN N N N N N H
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0
Springsted
O S
O
N
N
s
d d I
Y �
F Ml
v d
N d
y d m
d L j
N Q
oC
m
E
LL S
Page 10
4
s
7 _
T �
d E
Q �6
C
z
e
mmA
N too
16°a�
om
C Co
16 16 lV 17
t7 O
O S
O
N
N
s
d d I
Y �
F Ml
v d
N d
y d m
d L j
N Q
oC
m
E
LL S
Page 10
4
s
7 _
T �
d E
Q �6
C
z
e
$4,155,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2014A - City Levy
NET DEBT SERVICE SCHEDULE
Date
Principal
Coupon
Interest
Total P+I
CIF
Net New D/S
105%
Overlevy
02/01/2015
-
-
32,838.41
32,838.41
(32,838.41)
-
-
02/01/2016
390,000.00
0.550%
73,427.50
463,427.50
-
463,427.50
486,598.88
02/01/2017
395,000.00
0.850%
71,282.50
466,282.50
-
466,282.50
489,596.63
02/0112018
395,000.00
1.150%
67,925.00
462,925.00
-
462,925.00
486,071.25
02/01/2019
400,000.00
1.450%
63,382.50
463,382.50
-
463,382.50
486,551.63
02/01/2020
410,000.00
1.700%
57,582.50
467,582.50
-
467,582.50
490,961.63
02/0112021
415,000.00
1.950%
50,612.50
465,612.50
-
465,612.50
488,893.13
02/01/2022
425,000.00
2.200%
42,520.00
467,520.00
-
467,520.00
490,896.00
02/01/2023
430,000.00
2.350%
33,170.00
463,170.00
-
463,170.00
486,328.50
02/0112024
440,000.00
2.450%
23,065.00
463,065.00
-
463,065.00
486,218.25
02/01/2025
455,000.00
2.700%
12,285.00
467,285.00
-
467285.00
490,649.25
Tram
e4 tss nnn nn
-
A69R non o1
a rlin Don 91
t32838.41)
$4.650252.50
$4.882.765.13
SIGNIFICANT DATES
DatedDate ...........................................................................................................................
............................... 8/20/2014
DeliveryDate .......................................................................................................................
............................... 8/20/2014
First Coupon Date. .................................................................................. .
2 /01/2015
Yield Statistics
BondYear Dollars ..... .......... ..................... ............................................ -- .....
...................... ............................... $25.288.21
AverageLife ........................................................................................................................
............................... 6.086 Years
AverageCoupon ...... ........ -- ................................. ........................................
...................... ....................... . 2.0882891%
NetInterest Cost ( NIC) .........................................................................................................
............................... 2.2525950%
TrueInterest Cost ( TIC) .......................................................................................................
............................... 2.2526262%
Bond Yield for Arbitrage Purposes ................................................... - .......
.... ..... ................ ......... ....... .... .... ....... 2.4258120%
All Inclusive Cost ( AIC) ........................................................................................................
............................... 2.3617500%
IRS Form 8038
NetInterest Cost............................................. ......... ............ .............. .................................................................
2.0882891%
Weighted Average Wturily .................................................................................................
............................... 6.086 Years
2014A GO Np m Yemeni Bond I City O 1 6/412 014 123 7FM
SPI I;lgg tied
Page 11
$2,485,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2014A- Water Fund
NET DEBT SERVICE SCHEDULE
Date
Principal
Coupon
Interest
Total P +I
CIF
Net New D'S
105%
Overlevy
02/01/2015
-
-
19,635.29
19,635.29
(19,635.29)
-
-
02/01/2016
235,000.00
0.550%
43,905.00
278,905.00
-
278,905.00
292,850.25
02/01/2017
235,000.00
0.850%
42,612.50
277,612.50
-
277,612.50
291,493.13
0210112018
235,000.00
1.150%
40,615.00
275,615.00
-
275,615.00
289,395.75
02/01/2019
240,000.00
1.450%
37,912.50
277,912.50
-
277,912.50
291,808.13
02/01/2020
245,000.00
1.700%
34,432.50
279,432.50
-
279,432.50
293,404.13
02/0112021
250,000.00
1.950%
30,267.50
280,267.50
-
280,267.50
294,280.88
02/01/2022
250,000.00
2.200%
25,392.50
275,392.50
-
275,392.50
289,162.13
02/01/2023
260,000.00
2.350%
19,892.50
279,892.50
-
279,892.50
293,887.13
02/0112024
265,000.00
2.450%
13,782.50
278,782.50
-
278,782.50
292,721.63
02/0112025
270,000.00
2.700%
7,290.00
277,290.00
-
277,290.00
291,154.50
T otal
$2,
-
$315,737.79
$2,800,737.79
(19,635.29)
$2,781,102.50
$ 2,920,157.63
SIGNIFICANT DATES
DatedDate ........................................... ...............................
DeliveryDate ....................................... ...............................
FirstCoupon Date ................................ ...............................
Yield Statistics
Bond Year Dollars ................................ ...............................
AverageLi fe ........................................ ...............................
Average Coupon............................... ......................... ........
.
Net Interest Cost ( NIC) .......................... ...............................
True interest Cost (TIC). ......................................................
Bond Yield for Arbitrage Purposes ...... ...............................
All Inclusive Cost ( AIC) ........................ ............_ .................
IRS Form 8038
NetInterest Cost ................................... ...............................
Weighted Average fbturRy , .................. ...............................
2014A GO boo—ent Bond I floater Fund 1 61412 014 1 2. - 37PM
8/20/2014
8/20/2014
2/01/2015
$15,121.35
6.085 Years
2.0880268%
2.2523641%
2.2524125%
2.4258120%
2.3615563%
2.0880268%
6.085 Years
Springsted
Page 12
Preliminary
$13,730,000
City of Lakeville, Minnesota
General Obligation Refunding Bonds, Series 20148
Crossover Refunding of Series 2005& 2007D
Total uses ................................................... ............................... $4045,000.00 $11,920,000.00 $13,965,000.00
Flow of Funds Detail
State and Local Government Series (SLGS) rates for ................
Preliminary Feasibility Summary
6/0312014
6/03/2014
Dated 08/20/20141 Delivered 08/20/2014
(235,000.00)
-
(235,000.00)
Series 20148
Series 2014B
Issue
Net Funded
Ref 2005A
Ref 2007D
Summary
Sources Of Funds
Interest Earnings @ 0. 557% ......................... ...............................
5,707.27
167,226.78
Par Amount of Bonds ....................................
............................... $1,810,000.00
$11,920,000.00
$13,730,000.00
issuer Transfer of unrestricted Funds .........
............................... 235,000.00
-
235,000.00
Total Sources .............................................
............................... $2,045,000.00
$11,920,000.00
$13,965,000.00
uses Of Funds
Average Coupon ........................................... ...............................
2.1139339%
2.7234112%
Deposit to Crossover Escrow Fund .............
............................... 1,992,951.96
11,732,307.05
13,725,259.01
Total Underw riter's Discount (1. 050%) .......
............................... 19,005.00
125,160.00
144,165.00
Costs of Issuance .........................................
............................... 28,061.73
66,938.27
95,000.00
Founding Amount ..........................................
............................... 4,981.31
(4,405.32)
575.99
Total uses ................................................... ............................... $4045,000.00 $11,920,000.00 $13,965,000.00
Flow of Funds Detail
State and Local Government Series (SLGS) rates for ................
6/0312014
6/0312014
6/03/2014
Date of OWCandldates ............................... ...............................
(235,000.00)
-
(235,000.00)
Prirrary Purpose Fund Solution Mat hod ........... ............................
Net Funded
Net Funded
Net Funded
Total Cost of Investments ............................. ...............................
$1,992,951.96
$11,732,307.05
$13.725,259.01
Interest Earnings @ 0. 557% ......................... ...............................
5,707.27
167,226.78
172,934.05
Total Draws .................................................. ...............................
$1,998,659.23
$11,899,533.83
$13,898,193.06
PV Analysis Sum mary (Net to Net)
Nat PV Cashflow Savings @ 2.639%(Bond Yield) ....................
320,858.32
939,216.61
1,260,074.93
Total Cash contribution ................................. ...............................
(235,000.00)
-
(235,000.00)
Contingency or Rounding Amount ................ ...............................
4,981.31
(4,405.32)
575.99
Net Present Value Benefit ............................. ...............................
$90,839.63
$934,811.29
$1,025,650.92
Nat PV Benefit /$13, 135,000 Refunded Principal ........................
4.658%
8.358%
7.809%
Net W Benefit /$13,730,000 Refunding Principal .......................
5.019%
7.842%
7.470%
Bond Statistics
Average Life ................................................. ...............................
7.118 Years
10.840 Years
10.349 Years
Average Coupon ........................................... ...............................
2.1139339%
2.7234112%
2.6681470%
Net Interest Cost INC) ....... ..........................................................
2.2614371%
2.8202761%
2.7696035%
Bond Yield for Arbitrage Purposes ............... ...............................
2.6392728%
2.6392728%
2.6392728%
True Interest Cost (TIC) ................................. ...............................
2.2608821%
2.8101858%
2.7579670%
All Inclusive Cost ( AU) ................................. ...............................
2.5032491%
2.8719850%
2.8370896%
Sedes20RBRef2003A. 20 1 A—S—aq I 614120 18..48 AM
Spr'sngsted Page 13
m
O m N
d W
o v w V
M > p S
n � w
K c N
J o m
W 0
m W
4 O
5 W
U O z
m
`y O
y U
n N N 10 IG ip IN O O O N n 0 O M 6 O W N 6 r i4 6
V V W m O Y] Ip Cl Cj N OI fV m
J ¢ N O
m - �- - P �- - - - - - - - - - - �-
O M N N N N N N N N N O O O O O
E O p W N m O V m Or
% ai ai' -
�6
%
%
%
Q
q n N N m m m N O O O n O M y N W
Q p W Oi O N O p O m lJ O N Ci pi Oro N m
p M O m T N D! N OJ M V N N N W W Oj p
N m p f0 m m N p p p V p N N N N
e O M M N N N N N N N N N O O O O O O
O O O O O N O O O O O O N O O
y O O O m m O O S S O S N O O N 4
a N N N N N O N O G N 6 n 6 N N n N
m m m W O m m O O O p m m O N m
3 W m Y M O N m p 10 M N N m N p m n
0 0 0 r r r r r r r r r
y o o N
a mew
M W m
e � i p' o
p m N N
IL N S N r... r r r r r.. r
N G
LL m O m m
1 U N Vi {O
r N V
m o 0 0 ... 0 o O o 0 0 0 0
N O O N N N O O O O O O N O O N N N
rfl O p O lV fV �lpV O C C Q O Q Vi C Ih G N 1� IV fV
m m !O M S N I O 1p M N N N N Y O t�
A N N O V 1p m VI p 1p N M Cl m n W N V N
W-.00.00 o O O O O O o O O 8
N O O W W N O 000.1 O N S N N N O
y O O N g IV O O 6 N O n po IN n N N CI
p O O W O W W O O s W N O N m
% W r0 ID M O N W p (� M N N W N p W n M
d 1A N N O W p O p W W M m e- n M n m O
O O O O O O O O O O O O O O O O O
6 N N O N O O O N N N N N N O O N
U O O O r r r lV 1V fV lV (V N (V CM l7 C) tti
r O O O O O O O O O O O O O O O O O
O O O O O O O O O O O O O O O O O
W O
...... O ...
O O cs O O O O
n O O O O O O O S O O O S O O S O 0
Y N O O N N N O O O N W O N N N N O
W m W m W m m m m m W m W
a -
N m n W m O N M O N� N N N C M OJ
N N IV N N N
0 0 o a o O o 0 0 o a o 0 0 0 0 0 0
o O O O O O O O o o O O O O O O o O o
aaaaaaaaaaaaaaaaaa
0 0 0 0 0 0 0 0 0 0 0 0 o O o 0 0 0
Springsted
ppN w we 24e e e e
W m ry o
p W W N M
M m h n W m W M
W O (V N N N N [V O
S
rg
N
U
a
A
H
s"
A n 0
� W R
m
N y
? a Q
v M p
m 3 j
d � .� 2
� 7
m
q E �
C 9
0
E
E
i
rn
� o
5 s
Page 14
0
N 0
R N
N J
J
O t
to
N _
_ p
p
C v
v N
= L
n N N 10 IG ip IN O O O N n 0 O M 6 O W N 6 r i4 6
V V W m O Y] Ip Cl Cj N OI fV m
J ¢ N O
m - �- - P �- - - - - - - - - - - �-
O M N N N N N N N N N O O O O O
E O p W N m O V m Or
% ai ai' -
�6
%
%
%
Q
q n N N m m m N O O O n O M y N W
Q p W Oi O N O p O m lJ O N Ci pi Oro N m
p M O m T N D! N OJ M V N N N W W Oj p
N m p f0 m m N p p p V p N N N N
e O M M N N N N N N N N N O O O O O O
O O O O O N O O O O O O N O O
y O O O m m O O S S O S N O O N 4
a N N N N N O N O G N 6 n 6 N N n N
m m m W O m m O O O p m m O N m
3 W m Y M O N m p 10 M N N m N p m n
0 0 0 r r r r r r r r r
y o o N
a mew
M W m
e � i p' o
p m N N
IL N S N r... r r r r r.. r
N G
LL m O m m
1 U N Vi {O
r N V
m o 0 0 ... 0 o O o 0 0 0 0
N O O N N N O O O O O O N O O N N N
rfl O p O lV fV �lpV O C C Q O Q Vi C Ih G N 1� IV fV
m m !O M S N I O 1p M N N N N Y O t�
A N N O V 1p m VI p 1p N M Cl m n W N V N
W-.00.00 o O O O O O o O O 8
N O O W W N O 000.1 O N S N N N O
y O O N g IV O O 6 N O n po IN n N N CI
p O O W O W W O O s W N O N m
% W r0 ID M O N W p (� M N N W N p W n M
d 1A N N O W p O p W W M m e- n M n m O
O O O O O O O O O O O O O O O O O
6 N N O N O O O N N N N N N O O N
U O O O r r r lV 1V fV lV (V N (V CM l7 C) tti
r O O O O O O O O O O O O O O O O O
O O O O O O O O O O O O O O O O O
W O
...... O ...
O O cs O O O O
n O O O O O O O S O O O S O O S O 0
Y N O O N N N O O O N W O N N N N O
W m W m W m m m m m W m W
a -
N m n W m O N M O N� N N N C M OJ
N N IV N N N
0 0 o a o O o 0 0 o a o 0 0 0 0 0 0
o O O O O O O O o o O O O O O O o O o
aaaaaaaaaaaaaaaaaa
0 0 0 0 0 0 0 0 0 0 0 0 o O o 0 0 0
Springsted
ppN w we 24e e e e
W m ry o
p W W N M
M m h n W m W M
W O (V N N N N [V O
S
rg
N
U
a
A
H
s"
A n 0
� W R
m
N y
? a Q
v M p
m 3 j
d � .� 2
� 7
m
q E �
C 9
0
E
E
i
rn
� o
5 s
Page 14
N m n W m O N M O N� N N N C M OJ
N N IV N N N
0 0 o a o O o 0 0 o a o 0 0 0 0 0 0
o O O O O O O O o o O O O O O O o O o
aaaaaaaaaaaaaaaaaa
0 0 0 0 0 0 0 0 0 0 0 0 o O o 0 0 0
Springsted
ppN w we 24e e e e
W m ry o
p W W N M
M m h n W m W M
W O (V N N N N [V O
S
rg
N
U
a
A
H
s"
A n 0
� W R
m
N y
? a Q
v M p
m 3 j
d � .� 2
� 7
m
q E �
C 9
0
E
E
i
rn
� o
5 s
Page 14
S
rg
N
U
a
A
H
s"
A n 0
� W R
m
N y
? a Q
v M p
m 3 j
d � .� 2
� 7
m
q E �
C 9
0
E
E
i
rn
� o
5 s
Page 14
r
E
O
N
d
0 CD O
(1) N
N
c 0 N
O m U)
O rn o
O a
r
r ) w
J c K
0 '- N
� rn o
0 0
N
U m U
d
c
d
C7
W I w N S Ow o� nmJ �2 O O
v roe a ao onmai of m
F m
J Q o m W m m m m m m O O O d
A N N N N N Q
N
— 0000 0 0 0 0 0 0 O
C 0 0 0 0 0 0 0 0 0 0 O
d .n o1�6� rv�mN r
E
d
N Iq
Q
Q M M N O O m W m W' O t0
N m W b N m O m m m M O O
F N n r M
p V (G N O M Ip N V N N m
e N N N N N N N N N N N N N
O N N
b O O O O O O O O O O O M
10 1� W m O O O m b N N b O N
a b O N m� 1 Q O O 0 r O r
3 mMldMrm m bo mQm m
y Q A Ql (V O M N N Q Q m h IF
Z m M m O O O O O O O O O m
Z M
N
' . . . . . . . . N
a Cl N m
m o b
m m M N
_
N M
Y! M
LL O N b
a W MW m
=m m
r N N O O O ul N V N N O N
IG N N N O O � h N O m
M N N m r b Q O O M 1i O m
6 O W W M F N m m O m Q N M
q N M m N O M N tJ O Y W Vl N
M m 0 0 0 0 0 0 0 0 0 m
O N N N N N N N N N O
r N�
r N N O O O m N N N N O N
j0 10 fV lV N O O f� f` h r N O Oi
O m m M 1� m m b O m Q b M
d N M M N O m m IV M O O N N
'ooaeesevoa
0 0 0 0 0 0 0 0 0 0 0
p m b O b O O O W m m
�j 0 m M N m O N M m r
O G O
u
0 0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0 0
q O O O O O O Coco O
4
00 0 0 0 0 0000 0 0 O
00 0 0 0 0 0 0 0 0 O
d m O O N O O V1 O b O O
a`
N N N N N N N
0 0 0 0 0 0 0 0 0 0 0 0 0
d ssssssssssss
000000000000
J
n
0
W
V
N
w
U
LU
W
U)
F
m
w
In
W
Z
Q Q m
p d o
0 o e p
e m
N
d
V
d
N N
m Y M
M m r V
M T
N N O
N W t
Q O M I
m W
O
o
M
E d
r N
lV lV N N
N r
Spri ng5ted Page 15
' 8
V
p
O Q oN
m N d
d
b
p d
p N
p
C
O
o
E d
'
m N
c d c
LL F rn
Spri ng5ted Page 15
Rel unary
$11,920,000
City of Lakeville, Minnesota
General Obligation Refunding Bonds, Series 2014
Crossover Refunding of Series 2007D
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P +I
....................... --- ... ....._......................... _............... _........... _. ......._........._.......................
Delivery ...................__......................................_._......__..._._........................_......._....................................
..............._........ ............................... 8/20/2014
FirstCoupon Date ............ _ . .........................................
............................... 812012014
..................... __.........._..........................,......_...................
PC Existing US
Net New WS
105% of Total
02/01/2015
-
-
130,578.83
130,578.83
(130,578.83) 779,431.25
779,431.25
818,402.81
02/01/2016
-
-
291,977.50
291,977.50
(291,977.50) 1,085,362.50
1,085,362.50
1,139,630.63
02/01/2017
-
IRS Form 8038
291,977.50
291,97150
(11,476,977.50) 12,270,862.50
1,085,862.50
1.140.155.63
02/01/2018
710,000.00
0.950%
291,977.50
1,001,977.50
- -
1,001,977.50
1,052,076.38
02/01/2019
710,000.00
1300%
285,232.50
995,232.50
- -
995,232.50
1,044,994.13
02/01/2020
720,000.00
1.550%
276,002.50
996,002.50
- -
996,002.50
1,045,802.63
02/01/2021
725,000.00
1.800%
264842.50
989,842.50
- -
989,842.50
1,039,334.63
02/01/2022
735,000.00
2000%
251,792.50
986,792.50
- -
986,792.50
1,038132.13
02/01/2023
745,000.00
2.200%
237,092.50
982,092.50
- -
982,092.50
1,031,197.13
02/01/2024
760,000.00
2.350%
220,702.50
980
- -
980,702.50
1,029,737.63
02/0112025
775,000.00
2.550%
202,84250
977,842.50
- -
977,842.50
1,026,734.63
02/01/2026
795,000.00
2.750%
183,080.00
978.080CD
- -
978,08D.00
1,026,984.00
02/01/2027
815,000.00
2.850%
161,217.50
976,217.50
- -
976,21150
1,025,028.38
02/0112028
830,000.00
2.950%
137,990.00
967,990.00
- -
967,990.00
1,016,389.50
02/01/2029
855,000.00
3,050%
113,505.00
968,505.00
- -
968,505.00
1,016,930.25
02/01/2030
885,000.00
3.100%
87,427.50
972,427.50
- -
972,427.50
1,021,048.88
02101/2031
915,000.00
3.200%
59,992.50
974,99250
- -
974,992.50
1,023,742.13
011/2032
945,000.OD
3.250%
30,712.50
975,712.50
- -
975,712.50
1,024,498.13
Total
$11,920,000.00
-
$3,518,943.83
$15,438,943.83
111.899 .83) $14,135,65625
$17,675,066.25
$16,558819.56
....................... --- ... ....._......................... _............... _........... _. ......._........._.......................
Delivery ...................__......................................_._......__..._._........................_......._....................................
..............._........ ............................... 8/20/2014
FirstCoupon Date ............ _ . .........................................
............................... 812012014
..................... __.........._..........................,......_...................
............................... _... 2/0112015
Yield Statistics
BondYear Dollars
.. ....... ....... ................................ ....... .............. ..- ............... _......................._...................................
AverageLife........ ... _ ...................................................................._...........__....._.............,....._..............._..............
...._....................._..,. $129.210.89
AverageCoupon ...............................
............................... 10.840 Years
..... ..................................... .................. ......................_.............._.........._..........
............................... 2.7234112
Nethterest Cost( NIC) ...............................................
................................................ ......................._.................._......
TrueInterest Cost ( TIC)............_ ............._.___..............................._........_................................._,.._............_...........
.............................., 2.8202761%
BondYield for ArWrage Nrposes--
............_.................. 2.8101858%
...... ............................ ..........._._._..._ ............... .__...........
AllInclusive Cost ( AIC) ...................................._............._......_..............._................................_......
..................................... _.............................. 2.6392728%
......._........._....._....... _........_............ 2.8719850
IRS Form 8038
NatInterest Cot .L ...................................................._........................._....._.._......._........................_.......................
kturtlY
Weighted Average t............ ...._........................................__................................._......_...................__............
................_.............. 2.7234112%
....
............................... 10.840 Years
Slit 20Mli f106M. 20 l SlNlJOMR )2007➢ 1 61 L20M I1.r /PM
Springsted Page 16
Relimnary
$13,730,000
City of Lakeville, Minnesota
General Obligation Refunding Bonds, Series 2014B
Crossover Refunding of Series 2005A, 2007D
Debt Service Comparison
Date
Total PA
Escrow
Existing D/S Net New D/S
old Net D1S
Savings
02/01/2015
145,615.56
(145,615.56)
974,395.00 974,395.00
974,395.00
............................... 575.99
02101/2016
325,600.00
(2,275,600.00)
3,274,665.00 1,324,665.00
1,324,665.00
.. ... ........... ............ ........ 24.032%
02101/2017
490,600.00
(11,476,977.50)
12,270,862.50 1,284,485.00
1,324,352.50
39,867.50
02/0112018
1,204,362.50
-
- 1,204,362.50
1,322,442.50
118,080.00
0210112019
1,196,002.50
-
- 1,196,002.50
1,319,147.50
123,145.00
02/0112020
1,199,562.50
-
- 1,199,562.50
1,314,322.50
114,760.00
02/01/2021
1,195,690.00
-
- 1,195,690.00
1,313,052.50
117,362.50
02101/2022
1,189,400.00
-
- 1,189,400.00
1,304,952.50
115,552.50
020112023
1,186,100.00
-
- 1,186,100.00
1,305,402.50
119,302.50
0210112024
1,185,640.00
-
- 1,185,640.00
1,303,747.50
118,107.50
02101/2025
1,183,315.00
-
- 1,183,315.00
1,305,182.50
121,867.50
02/01/2026
1,183,580.00
-
- 1,183,580.00
1,304,232.50
120,652.50
02/0112027
976,217.50
-
- 976,217.50
1,056,112.50
79,895.00
02/01/2028
967,990.00
-
- 967,990.00
1,051,112.50
83,122.50
02/01/2029
968,505.00
-
- 968,505.00
1,049,362.50
80,857.50
02/01/2030
972,427.50
-
- 972,427.50
1,053,893.76
81,466.26
0210112031
974,992.50
-
- 974,992.50
1,056,343.76
81,351.26
02/01/2032
975,712.50
-
- 975,712.50
1,056,712.50
81,000.00
Total
$17,521,313.06
(13,898,193.06)
$16,519,922.50 $20,143,042.50
$21,739,432.52
$1,596,390.02
PV Analysis Summary (Net to Net)
NetW Cashflow Savings ......................................................................................................
............................... 1.596.390.02
GrossW Debt Service Savings .............................................................................................
............................... 1,260.074.93
Net W Cashflow Savings @ 2.639 %(Bond Yiek) ...............................................................
............................... 1,260,074.93
TotalCash contribution ...........................................................................................................
............................... (235,000.00)
Contingencyor Rounding Amount .........................................................................................
............................... 575.99
NetFuture Value Benefit............ ... .............................................................................. ...........................................
$1.361,966.01
NetResent value Benefit .......................................................................................................
............................... $1.025.650.92
Net W Benefit /$4,267,856.05 W Refunded Interest...... . .... ...... ................ . ....................
.. ... ........... ............ ........ 24.032%
Net W Benefit / $14,254,974.82 W Refunded Debt Service .................................................
............................... 7.195%
Net W Benefit /$13,135,000 Refunded Principal ...................................................................
............................... 7.809%
Net W Benefit /$13,730,000 Refunding Principal ..................................................................
............................... 7.470%
Refunding Bond Information
RefundingDated Date .............................................................................................................
............................. - 8/20/2014
Refunding Delivery Date ................................................................................... ...............................
...................... 8/20/2014
Sefies20UBRef20MS 20 I Bsue Summary 1614120M 18 .48AM
Springsted Page 17
Prelirrinary
$1,810,000
City of Lakeville, Minnesota
General Obligation Refunding Bonds, Series 20148
Crossover Refunding of Series 2005A
Debt Service Comparison
Date
Total P +I
Escrow
Existing D/S
Net New D/S
Old Net D/S
Savings
02/01/2015
15,036.73
(15,036.73)
194,963.75
194,963.75
194,963.75
-
02/01/2016
33,622.50
(1,983,622.50)
2,189,302.50
239,302.50
239,302.50
-
02/01/2017
198,622.50
-
-
198,622.50
238,490.00
39,867.50
02/01/2018
202,385.00
-
-
202,385.00
242,330.00
39,945.00
02101/2019
200,770.00
-
-
200,770.00
240,785.00
40,015.00
02/01/2020
203,560.00
-
-
203,560.00
238,960.00
35,400.00
02/0112021
205,847.50
-
-
205,847.50
241,940.00
36,092.50
02/01/2022
202,607.50
-
-
202,607.50
239,340.00
36,732.50
02/01/2023
204,007.50
-
-
204,007.50
241,540.00
37,532.50
02/01/2024
204,937.50
-
-
204,937.50
243,135.00
38,197.50
02/01/2025
205,472.50
-
-
205,472.50
244,320.00
38,847.50
02/01/2026
205,500.00
-
-
205,500.00
244,870.00
39,370.00
Total
$2,082,369.23
(1,998,659.23)
$2,384,266.25
$2,467,976.25
$2,849,976.25
$382,000.00
PV Analysis Summary (Net to Net)
Net FV Cashflow Savings ....... ...............................
Gross PV Debt Service Savings ............................
Net PV Cashflow Savings @ 2.639 %(Bond Yield
Total Cash contribution ............ ...............................
Contingency or Rounding Amount ..........................
Net Future Value Benefit .......... ...............................
Net Resent Value Benefit ........ ...............................
Net PV Benefit /$405,586.81 PV Refunded Interes
Net PV Benefit / $2,020,843.69 PV Refunded Debt
Net PV Benefit/ $1,950,000 Refunded Principal....
Net PV Benefit / $1,810,000 Refunding Principal....
Refunding Bond Information
Refunding Dated Date ............... ...............................
Refunding Delivery Date ........... ...............................
Se 420148 Fef20054. 201 Se 2014B Aef1001A I6 /4 /]OW 18,48 AM
382,000.00
320,858.32
320,858.32
(235,000.00)
4,981.31
$151,981.31
$90,839.63
22.397%
4.495%
4.658%
5.019%
8/20/2014
8/20/2014
Spirinigsted Page 18
Preliminary
$11,920,000
City of Lakeville, Minnesota
General Obligation Refunding Bonds, Series 2014B
Crossover Refunding of Series 2007D
Debt Service Comparison
Date
Total P +I
Escrow
Mating DVS Net New DVS
Old Net D'S
Savings
02/012015
130,578.83
(130,578.83)
779,431.25 779,431.25
779,431.25
-
02/012016
291,977.50
(291,977.50)
1,085,362.60 1,085,362.50
1,085,362.50
............................... 7.641%
02/012017
291,977.50
(11,476,977.50)
12,270,862.50 1,085,862.50
1,085,862.50
021012018
1,001,977.50
-
- 1,001,977.50
1,080,112.50
78,135.00
021012019
995,232.50
-
- 995,232.50
1,078,362.50
83,130.00
02/012020
996,002.50
-
- 996,002.50
1,075,362.50
79,360.00
02/012021
989,842.50
-
- 989,842.60
1,071,112.50
81,270.00
02/012022
986,792.50
-
- 986,792.50
1,065,612.50
78,820.00
02/012023
982,092.50
-
- 982,092.50
1,063,862.50
81,770.00
02/012024
980,702.50
-
- 980,702.50
1,060,612.50
79,910.00
021012025
977,842.50
-
- 977,842.50
1,060,862.50
83,020.00
021012026
978,080.00
-
- 978,080.00
1,059,362.50
81,282.50
021012027
976,217.50
-
- 976,217.50
1,056,112.50
79,895.00
021012028
967,990.00
-
- 967,990.00
1,051,112.50
83,122.50
021012029
968,505.00
-
- 968,505.00
1,049,362.50
80,857.50
02/012030
972,427.50
-
- 972,427.50
1,053,893.76
81,466.26
021012031
974,992.50
-
- 974,992.50
1,056,343.76
81,351.26
02/012032
975,712.50
-
- 975,712.50
1,056,712.50
81,000.00
Total
$15,438,943.83
(11,899,533.83)
$14,135,656.25 $17,675,066.25
$18,889,456.27
$1,214,390.02
PV Analysis Summary (Net to Net)
Net FV Cashflow Savings .........................................................................................................
............................... 1,214,390.02
Gross PV Debt Service Savings ...............................................................................................
............................... 939,216.61
Net PV Cashflow Savings @ 2.639%(Bond Yield) ..................................................................
............................... 939,216.61
Contingency or Rounding Amount .............................................................................................
............................... (4.405.32)
NetFuture Value Benefit............................................. .....-- .................................... ................................................
$1.209,984.70
NetPresent Value Benefit .........................................................................................................
............................... $934.811.29
Net P✓ Benefit /$3,862,269.24 PV Refunded Interest .............................................................
............................... 24.204%
Net W Benefit /$12, 234, 131.13 PV Refunded Debt Service ...................................................
............................... 7.641%
Net PV Benefit /$11, 185,000 Refunded Principal .....................................................................
............................... 8.358%
Net PV Benefit /$11,920,000 Refunding Principal ....................................................................
............................... 7.842%
Refunding Bond Information
RefundingDated Date ........................................................................................ ...............................
....................... 8 1202014
RefundingDelivery D ate ...................................................................................... ...............................
...................... 8 12012014
Series ZOMR Ref200M, 20 1 Sexes 10148 Ref2007D 1 614120M 1 8.48 AM
Sprfngsted Page 19