HomeMy WebLinkAboutItem 03December 14, 2015 Item No.________
AUTHORIZING THE ISSUANCE AND SALE OF $8,875,000 GENERAL OBLIGATION
WATER UTILITY REVENUE BONDS, SERIES 2016A AND AN INTERFUND LOAN FOR
WATER IMPROVEMENT PROJECTS
Proposed Action
Staff recommends adoption of the following motions:
1) Move to approve Resolution Authorizing the Issuance and Sale of $8,875,000 General
Obligation Water Utility Revenue Bonds, Series 2016A; and
2) Move to approve Resolution Authorizing an Interfund Loan for Water Improvement
Projects.
Passage of this motion will result in the financing of the following projects:
• #14-11 - Water Treatment Plant Expansion
• #13-18 – Holyoke Water Tower
Overview
Dave MacGillivray, Springsted Inc., will briefly discuss the recommended financing in the
context of the credit rating.
The bid opening for the bonds will be at 10:00 a.m. on Monday February 1, 2016. The results of
the bid opening and recommendations will be presented to the City Council at its regular
meeting that same night.
Staff had anticipated multiple bond issuances related to the 2015 projects due to the timing of
project payments. With the bond issuance taking place in 2016 versus 2015, Staff is
recommending that a short-term interfund loan be approved to temporarily finance the project
expenditures incurred in 2015 prior to bonds being issued in 2016. The interfund loan would
utilize funds in the Sanitary Sewer Trunk Fund and Storm Sewer Trunk Fund to fund the project
expenditures in the Water Trunk Fund.
Primary Issues to Consider
• Bond Structure – The structure of the 2016A bonds is compliant with the City’s Debt
Policy such that the total maturity length is less than 20 years and at least 50% of the
principal is retired within 10 years.
• Call provisions. Bonds maturing 2/1/2025 and thereafter are callable 2/1/2024 or
thereafter.
• Interfund Borrowing – The City’s Debt Policy provides for interfund borrowing for
capital expenditures. The resolution includes interest charges to compensate the
lending funds for the use of their financial resources.
Supporting Information
• Recommendations for Issuance of Bonds (Prepared by Springsted Inc.)
• Resolutions (2)
Jerilyn Erickson
Finance Director
Financial Impact: $8,875,000 Budgeted:__Yes____ Source: __Water Utility Fund_
Related Documents: _2015-2019 CIP;________________________________________
Community Value: Good Value for Public Services_________________________________
Notes: ______________________________________________________________________
City of Lakeville, Minnesota
Recommendations for Issuance of Bonds
$8,875,000 General Obligation Water Utility Revenue Bonds, Series 2016A
The City Council has under consideration the issuance of bonds to fund the construction, acquisition and installation
of water utility infrastructure improvements. 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.
December 14, 2015 City Council sets sale date and terms
Week of January 18, 2016 Rating conference is conducted
January 28, 2016 (est.) Receipt of rating
February 1, 2016, 10:00 AM Competitive proposals are received
February 1, 2016, 7:00 PM City Council considers award of Bonds
On or about February 25, 2016 Proceeds are received
RATING: An application will be made to Moody’s Investors Service for a rating on the Bonds. The
City’s general obligation debt is currently rated 'Aa1' by Moody’s.
THE MARKET: Performance of the tax-exempt market is often measured by the Bond Buyer’s Index (“BBI”)
which measures the yield of high grade municipal bonds in the 20th 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.
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POST ISSUANCE
COMPLIANCE:
The issuance of these bonds will result in post-issuance compliance responsibilities. The
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 this issue has been structured. Post-issuance compliance responsibilities
for tax-exempt issues 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. Under certain
circumstances any “excess earnings” will need to be paid to the IRS to maintain the tax-
exempt status of the Bonds. Any interest earnings on gross bond proceeds or debt service
funds should not be spent until it has been determined based on actual facts that they are
not “excess earnings” as defined by the IRS Code.
The arbitrage rules provide spend-down exceptions for proceeds that are spent within either
a 6-month, 18-month or 24-month period in accordance with certain spending criteria.
Proceeds that qualify for an exception will be exempt from rebate. These exceptions are
based on actual expenditures and not based on reasonable expectations, and expenditures,
including any investment proceeds will have to meet the spending criteria to qualify for the
exclusion. The City expects to meet the 24-month spending exception.
Regardless of whether the issue qualifies for an exemption from the rebate provisions, yield
restriction provisions will apply to the debt service fund under certain conditions and any
unspent bond proceeds remaining after three years. These funds should be monitored
throughout the life of the Bonds.
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 and the City will enter into an Agreement for Municipal Advisor Services, under
which Springsted will provide arbitrage and continuing disclosure compliance services for
the City.
SUPPLEMENTAL
INFORMATION AND
BOND RECORD:
Supplementary information will be available to staff including detailed terms and conditions
of sale, comprehensive structuring schedules and information to assist in meeting post-
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.
PURPOSE: Proceeds of the Bonds will be used to finance the construction, acquisition and installation
various water utility system improvements in the City.
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AUTHORITY: Statutory Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters
444 and 475.
Statutory Requirements: The City currently has no other outstanding debt payable from
water utility revenues. The last of the previously outstanding water utility debt was called for
redemption on February 1, 2015. In the resolution authorizing the sale of the Bonds, the
City will covenant to charge water utility fees, charges and/or rates sufficient to pay
operations and debt service on the Bonds and any additional water utility debt issued by the
City in the future.
SECURITY AND
SOURCE OF PAYMENT:
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. In addition, the City will
pledge net revenues of the City’s water utility fund.
It is our understanding that the City intends to use utility connection fees to pay the debt
service on the Bonds. Regardless of the availability of the connection fees, the City must
pledge net operating revenues of the water utility fund to the payment of debt service on the
Bonds.
STRUCTURING
SUMMARY:
In consultation with City staff, the Bonds have been structured over a term of 18 years with
level annual debt service payments. In addition, the issue was structured in accordance
with the City policy of redeeming 50% of the principal amount of an issue within the first 10
years. In order to maintain level debt service throughout the life of the Bonds, the balance of
the principal was amortized over another eight years, bringing the total term to 18 years.
Given the size and credit quality of the issue, it is likely that the Bonds will price with a
premium bid from the underwriter. If that happens, the City expects to use the premium to
reduce the size of the issue.
SCHEDULES
ATTACHED:
Schedules attached include a sources and uses of funds and estimated debt service
requirements, given the current interest environment.
RISKS/SPECIAL
CONSIDERATIONS:
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
MARKETING:
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, 2025 may be prepaid at a
price of par plus accrued interest on or after February 1, 2024.
Bank Qualification: The City expects to issue more than $10 million in tax-exempt
obligations in calendar year 2016; therefore the Bonds are not designated as bank qualified.
Good Faith Deposit: The lowest bidder will be required to provide a good faith deposit
within a specified time after receipt of proposals. The good faith deposit will be deducted
from the purchase price otherwise due at the time of closing. In the event the lowest bidder
fails to comply with the accepted bid proposal, the Issuer will retain the good faith deposit.
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$8,875,000
City of Lakeville, Minnesota
General Obligation Water Utility Revenue Bonds
Series 2016A
Sources & Uses
Dated 02/25/2016 | Delivered 02/25/2016
Sources Of Funds
Par Amount of Bonds............................................................................................................................................$8,875,000.00
Total Sources.....................................................................................................................................................$8,875,000.00
Uses Of Funds
Deposit to Project Construction Fund....................................................................................................................8,700,000.00
Total Underwriter's Discount (1.200%)...............................................................................................................106,500.00
Costs of Issuance.................................................................................................................................................67,025.00
Rounding Amount..................................................................................................................................................1,475.00
Total Uses...........................................................................................................................................................$8,875,000.00
2016A GO Utility Rev Bond | SINGLE PURPOSE | 12/11/2015 | 9:09 AM
Page 5
$8,875,000
City of Lakeville, Minnesota
General Obligation Water Utility Revenue Bonds
Series 2016A
DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I 105% Levy
02/01/2017 430,000.00 0.850%211,104.88 641,104.88 673,160.12
02/01/2018 420,000.00 1.200%222,528.80 642,528.80 674,655.24
02/01/2019 425,000.00 1.400%217,488.80 642,488.80 674,613.24
02/01/2020 430,000.00 1.550%211,538.80 641,538.80 673,615.74
02/01/2021 435,000.00 1.750%204,873.80 639,873.80 671,867.49
02/01/2022 445,000.00 1.950%197,261.30 642,261.30 674,374.37
02/01/2023 450,000.00 2.150%188,583.80 638,583.80 670,512.99
02/01/2024 460,000.00 2.300%178,908.80 638,908.80 670,854.24
02/01/2025 470,000.00 2.450%168,328.80 638,328.80 670,245.24
02/01/2026 485,000.00 2.650%156,813.80 641,813.80 673,904.49
02/01/2027 495,000.00 2.850%143,961.30 638,961.30 670,909.37
02/01/2028 510,000.00 2.900%129,853.80 639,853.80 671,846.49
02/01/2029 525,000.00 3.150%115,063.80 640,063.80 672,066.99
02/01/2030 540,000.00 3.300%98,526.30 638,526.30 670,452.62
02/01/2031 560,000.00 3.350%80,707.50 640,707.50 672,742.88
02/01/2032 580,000.00 3.400%61,947.50 641,947.50 674,044.88
02/01/2033 595,000.00 3.450%42,227.50 637,227.50 669,088.88
02/01/2034 620,000.00 3.500%21,700.00 641,700.00 673,785.00
Total $8,875,000.00 -$2,651,419.28 $11,526,419.28 $12,102,740.24
SIGNIFICANT DATES
Dated.....................................................................................................................................................................2/25/2016
Delivery Date.........................................................................................................................................................2/25/2016
First Coupon Date..................................................................................................................................................8/01/2016
Yield Statistics
Bond Year Dollars.................................................................................................................................................$89,333.33
Average Life.........................................................................................................................................................10.066 Years
Average Coupon...................................................................................................................................................2.9680067%
Net Interest Cost (NIC)...........................................................................................................................................3.0872231%
True Interest Cost (TIC).........................................................................................................................................3.0764465%
Bond Yield for Arbitrage Purposes.......................................................................................................................2.9333671%
All Inclusive Cost (AIC)..........................................................................................................................................3.1677683%
IRS Form 8038
Net Interest Cost....................................................................................................................................................2.9680067%
Weighted Average Maturity...................................................................................................................................10.066 Years
Interest rates are estimates. Changes in rates may
cause significant alterations to this schedule.
The actual underwriter's discount bid may also vary.
2016A GO Utility Rev Bond | SINGLE PURPOSE | 12/11/2015 | 9:09 AM
CITY OF LAKEVILLE
RESOLUTION NO. __________
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF
$8,875,000 GENERAL OBLIGATION WATER UTILITY
REVENUE BONDS, SERIES 2016A
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 Water Utility Revenue Bonds, Series 2016A, in the aggregate principal
amount of $8,875,000 (the Bonds), pursuant to Minnesota Statutes, Section 444.075 and Chapter
475, to finance various improvements to the water utility of 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.
ADOPTED by the Lakeville City Council this 14th day of December, 2015
CITY OF LAKEVILLE
By:
Matt Little, Mayor
ATTEST:
Charlene Friedges, City Clerk
________________________________
* Preliminary; subject to change.
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$8,875,000*
CITY OF LAKEVILLE, MINNESOTA
GENERAL OBLIGATION WATER UTILITY REVENUE BONDS, SERIES 2016A
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Monday, February 1, 2016, 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 Bidding. Notice is hereby given that electronic proposals will be received via PARITY®.
For purposes of the electronic bidding process, the time as maintained by PARITY® shall constitute the
official time with respect to all proposals submitted to PARITY®. Each bidder shall be solely responsible
for making necessary arrangements to access PARITY® for purposes of submitting its electronic proposal
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 PARITY®. 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:
ii
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
DETAILS OF THE BONDS
The Bonds will be dated as of the date of delivery and will bear interest payable on February 1
andAugust 1 of each year, commencing August 1, 2016. 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:
2017 $430,000 2021 $435,000 2025 $470,000 2029 $525,000 2032 $580,000
2018 $420,000 2022 $445,000 2026 $485,000 2030 $540,000 2033 $595,000
2019 $425,000 2023 $450,000 2027 $495,000 2031 $560,000 2034 $620,000
2020 $430,000 2024 $460,000 2028 $510,000
* 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 amount of any maturity in multiples of $5,000. In the event the amount of any
maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per
$1,000 of Bonds as that of the original proposal. Gross spread is the differential between the price paid to the
City for the new issue and the prices at which the securities are initially offered to the investing public.
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 scheduled to 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.
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OPTIONAL REDEMPTION
The City may elect on February 1, 2024, and on any day thereafter, to prepay Bonds due on or after
February 1, 2025. 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. In addition, the City will pledge net revenues of the
City’s water utility fund. The proceeds will be used to finance various improvements to the City’s water
utility system.
BIDDING PARAMETERS
Proposals shall be for not less than $8,768,500 plus accrued interest, if any, 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 1/100 or 1/8 of
1%. The initial price to the public for each maturity must be 98.0% or greater. 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
To have its proposal considered for award, the lowest bidder is required to submit a good faith deposit to
the City in the amount of $88,750 (the “Deposit”) no later than 1:00 P.M., Central Time on the day of
sale. The Deposit may be delivered as described herein in the form of either (i) a certified or cashier’s
check payable to the City; or (ii) a wire transfer. The lowest bidder shall be solely responsible for the
timely delivery of their Deposit whether by check or wire transfer. Neither the City nor
Springsted Incorporated have any liability for delays in the receipt of the Deposit. If the Deposit is not
received by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder,
direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder.
Certified or Cashier’s Check. A Deposit made by certified or cashier’s check will be considered timely
delivered to the City if it is made payable to the City and delivered to Springsted Incorporated,
380 Jackson Street, Suite 300, St. Paul, Minnesota 55101 by the specified time.
Wire Transfer. A Deposit made by wire will be considered timely delivered to the City upon submission
of a federal wire reference number by the specified time. Wire transfer instructions will be available from
Springsted Incorporated following the receipt and tabulation of proposals. The successful bidder must
send an e-mail including the following information: (i) the federal reference number and time released;
(ii) the amount of the wire transfer; and (iii) the issue to which it applies.
Once an award has been made, the Deposit received from the lowest bidder (the “purchaser”) will be
retained by the City and no interest will accrue to the purchaser. The amount of the Deposit will be
iv
deducted at settlement from the purchase price. 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 calculated on the proposal prior to any adjustment made by the City. 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
The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance
with respect to the Bonds. If the Bonds qualify for municipal bond insurance and a bidder desires to
purchase a policy, such indication, the maturities to be insured, and the name of the desired insurer must
be set forth on the bidder’s proposal. The City specifically reserves the right to reject any bid specifying
municipal bond insurance, even though such bid may result in the lowest TIC to the City. All costs
associated with the issuance and administration of such policy and associated ratings and expenses (other
than any independent rating requested by the City) shall be paid by the successful bidder. Failure of the
municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for
failure or refusal by the successful bidder to accept delivery of the Bonds.
CUSIP NUMBERS
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 February 25, 2016, 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.
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
v
The City has authorized the preparation of a Preliminary Official Statement containing pertinent
information relative to the Bonds, and said Preliminary 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 Preliminary Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Municipal Advisor to the City, Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other information
required by law. By awarding the Bonds to an underwriter or underwriting syndicate, the City agrees
that, no more than seven business days after the date of such award, it shall provide without cost to the
sole underwriter or to the senior managing underwriter of the syndicate (the “Underwriter” for purposes
of this paragraph) to which the Bonds are awarded up to 25 copies of the Final Official Statement. The
City designates the 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. Such Underwriter
agrees that if its proposal is accepted by the City, (i) it shall accept 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 December 14, 2015 BY ORDER OF THE CITY COUNCIL
/s/ Charlene Friedges
City Clerk
CITY OF LAKEVILLE
RESOLUTION NO.
INTERFUND LOAN FOR WATER IMPROVEMENT PROJECTS
WHEREAS, The Lakeville City Council previously approved projects #14-11 Water
Treatment Plant Expansion and #13-18 Holyoke Water Tower; and
WHEREAS, The City declared its official intent to issue bonds for these projects on May
18, 2015; and
WHEREAS, The City expected to incur certain expenditures that would be financed
temporarily from sources other than bonds, and later reimbursed from the proceeds of tax-
exempt bonds; and
WHEREAS, The City has authorized the issuance and sale of General Obligation Water
Utility Revenue Bonds, Series 2016A for the purpose of funding these projects.
NOW THEREFORE, BE IT RESOLVED, the City of Lakeville hereby authorizes
interfund loans from the Sanitary Sewer Trunk Fund and Storm Sewer Trunk Fund to the Water
Trunk for the purpose of temporarily financing these projects until proceeds have been received
from the General Obligation Water Utility Revenue Bonds, Series 2016A.
BE IT FURTHER RESOLVED, interest charges will be applied to compensate the
lending funds for the use of their financial resources.
ADOPTED by the Lakeville City Council this 14th day of December, 2015.
CITY OF LAKEVILLE
___________________________
Matt Little, Mayor
ATTEST:
_____________________________
Charlene Friedges, City Clerk