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City of Lakeville, Minnesota
Recommendations for Issuance of Bonds
$24,145,000 General Obligation Bonds, Series 2016B
The City Council has under consideration the issuance of Bonds to finance street reconstruction (the “Improvement
Portion”) and water and sewer utility improvement (the “Utility Portion”) projects in the City. Both main components
consist of multiple sub-components and are combined in the Bonds as described more completely herein. 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.
May 23, 2016 Council Workshop to discuss financing
June 6, 2016 City Council sets sale date and terms
Week of June 6, 2016 Rating conference is conducted
On or about June 16, 2016 Rating received
June 20, 2016, 11:00 AM Competitive bids are received
June 20, 2016, 7:00 PM City Council considers award of bonds
On or about July 21, 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 20 th 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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Page 2
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 18-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 Council 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.
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.
Page 3
Given the credit quality, issue size and term of the Bonds, it is possible that the issue will
price with a premium bid from the underwriter. Premium pricing occurs when coupon
interest rates exceed the actual market yield, thereby producing a “premium” or excess
amount above the par amount of the Bonds paid by the underwriter to the issuer. Receipt
of a premium bid is by no means certain, however we recommend that the Bonds be
offered assuming a par bid, which means the underwriter must generate sufficient
reoffering premium to at least cover their compensation. If a premium bid is received, the
City’s intent is to reduce the issue size so that total net proceeds equal the amount
necessary to fund project costs at the amounts anticipated in these Recommendations.
Prepayment Provisions: Bonds maturing on or after February 1, 2026 may be prepaid at a
price of par plus accrued interest on or after February 1, 2025.
Bank Qualification: The City is issuing more than $10 million in tax-exempt obligations in
the current calendar year; therefore the Bonds are not designated as bank qualified.
SCHEDULES
ATTACHED:
We have attached schedules showing the following:
Detailed Sources and Uses of Funds
Assessments – Composition and Income
Net Debt Service for the issue in total and for each of the components of the
Bonds, given the current interest rate environment
Improvement Portion
Description of Purposes
PURPOSE: Proceeds of the Improvement Portion of the Bonds, together with a City cash contribution
of $250,000 and estimated prepaid assessments of $238,648, will be used to fund the
City’s 2016 street reconstruction projects (Projects 16-02 and16-04) and Phase II of the
2015 street reconstruction project (Project 15-02).
AUTHORITY: Statutory Authority: The Improvement Portion of the Bonds is being issued pursuant to
Minnesota Statutes, Chapters 475 and 429.
Statutory Requirements: Chapter 429 requires that a minimum of 20% of the projects
financed be assessed against benefited property owners. The City expects to assess
more than the 20% minimum through new assessments levied in 2016 for collection
beginning in 2017.
SECURITY AND
SOURCE OF
PAYMENT:
The Improvement Portion of the Bonds will be general obligations of the City, secured by
its full faith and credit and taxing power. Special assessments and general property taxes
are pledged to the repayment of the Improvement Portion of the Bonds. Assessments are
being levied in 2016 in the amounts and terms shown in the table below:
Project Assessed Amount Interest Rate Term First Year Payment
Project 15-02 $170,063 4.50% 29 Years 2017
Project 15-02 $3,109,724 4.00% 20 Years 2017
Page 4
Project 16-02 $3,018,420 4.50% 20 Years 2017
Project 16-04 $129,672 4.50% 20 Years 2017
Total $6,427,879
The City expects to receive prepaid assessments for the 16-02 and 15-02 projects. Some
of the prepayments will be received prior to when the assessments are certified to the
County and some will be received after that point in time. Those received earlier will be
deposited to the project fund for the Bonds and those received later will be deposited to the
debt service fund for the Bonds.
In certain cases the City allows a 2% discount against the assessments. In addition, some
of the assessments are against City owned property. Both of those amounts will be
deducted from the total assessments to be collected over time and will added to the tax
levy purpose of the Bonds for purposes of funding a like amount of project costs.
The table below shows the amount of adjustments to the assessments for the various
projects and the respective effet on the structure of the Bonds.
Project Adjustment
Type of
Adjustment Structuring Impact
15-02 20 Year $ 142,853 Prepayment to Construction
15-02 20 Year 72,835 Prepayment to Construction and Debt Service
15-02 20 Year 2,915 2% discount Funded by Levy
15-02 20 Year 8,098 City Property Funded by Levy
16-02 22,960 Prepayment to Construction
Total $ 249,661
Based on the above table, assessments in the total net amount of $6,178,218 will be
collected over their respective terms with equal payments of principal. Interest, will
becharged on the unpaid balance at the rates listed above.
Each year’s collection of assessments and taxes will be used to pay the interest to come
due on August 1 in the year of collection and the principal and interest due the following
February 1. Capitalized interest will be funded from the principal amount of the
Improvement Portion of the Bonds in amounts sufficient to pay the interest due on
February 1, 2017 for all components of the Improvement Portion with the exception of the
Project 15-02 assessed portion. With respect to the Project 15-02 assessed portion, a
sufficient amount of the later prepayments will be deposited to the debt service fund to pay
the February 1, 2017 interest payment (estimated to be $39,313) and the balance
(estimated to be $33,522) will be deposited to the construction fund. The City will make it’s
first levy for the Improvement Portion of the Bonds in 2016 for collection beginning in 2017.
STRUCTURING
SUMMARY:
In consultation with the City, the sub-components of the Improvement Portion of the Bonds
were structured separately as to source of payment for ease of administration. The
Improvement Potion consists of three sub-components: (i) Tax Levy, (ii) Project 16-02 and
16-04 Assessed, (iii) Project 15-02 Assessed 20-Year and (iv) Project 15-02 Assessed 29-
Year. Both of the Assessed Project pieces were all structured over terms of 20 years. The
City will continue to collect assessment income after the Project 15 -02 Assessed 29-Year
portion of the Bonds has been fully amortized. The City may use that surplus assessment
income for proper corporate purposes authorized by statute. The Tax Levy component
Page 5
was structured with (a) a reduced principal payment of $300,000 maturing February 1,
2018, (b) debt service in the year ending February 1, 2019 at approximately $100,000
more than in 2018 and (b) level debt service thereafter. The Tax Levy component, as well
as the Water Component discussed below, was shortened to a final maturity in 17 years to
facilitate compliance with the City policy of redeeming 50% of the principal amount of an
issue within the first 10 years.
Utility Portion
Description of Purposes
PURPOSE: The Utility Portion of the Bonds will be used to fund water improvements for Project 15-02,
and 16-02 (the “Water Component”) and sewer improvements for Project 15-16 (the
“Sewer Component”).
AUTHORITY: Statutory Authority: The Utility Portion of the Bonds is being issued pursuant to Minnesota
Statutes, Chapters 475 and 444.
Statutory Requirements: Pursuant to Minnesota Statutes, Chapter 444 the City will
covenant to maintain water and sewer rates in an amount sufficient to generate revenues
to support the operation of the utilities (the “Utility Funds”) and to make the debt service
payments on the Bonds and any other outstanding obligations payable from the Utility
Funds. The City is required to annually review the budget for the Utility Funds to determine
if current rates and charges are sufficient and to adjust such rates and charges if
necessary. The City has one issue outstanding payable from the pledged revenues of the
water utility fund, the City’s $8,280,000 General Obligation Water Utility Revenue Bonds,
Series 2016A. The City has no other debt outstanding payable from the pledged revenues
of the sewer utility fund.
SECURITY AND
SOURCE OF
PAYMENT:
The Utility Portion of the Bonds will be a general obligation of the City, secured by its full
faith and credit and taxing power and will repaid with net revenues of the City’s water fund
with respect to the Water Component and sewer utility funds with respect to the Sewer
Component.
STRUCTURING
SUMMARY:
In consultation with the City, the Utility Portion of the Bonds was structured for each
discreet purpose, the Water Component over 17 years, the Sewer Component over eight
years with approximately level annual debt service. In part these repayment terms were
determined to facilitate compliance with the City policy of redeeming 50% of the principal
amount of an issue within the first 10 years.
Page 6
$24,145,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2016B - Issue Summary
Total Issue Sources And Uses
Dated 07/21/2016 | Delivered 07/21/2016
Tax Levy
Project 15-02 -
Assessed
Projects 16-02
and 16-04 -
Assessed
Project 15-
16 - Sewer
Funds
Project 15-02
16-02 and 16-
04 - Water
Fund
Issue
Summary
Sources Of Funds
Par Amount of Bonds.....................................................................................................................................................................................$10,645,000.00 $3,110,000.00 $3,180,000.00 $560,000.00 $6,650,000.00 $24,145,000.00
Reoffering Premium......................................................................................................................................................................................141,315.85 37,828.80 39,635.15 14,557.65 85,317.50 318,654.95
City Equity Contribution - 15-02........................................................................................................................................................................200,000.00 ----200,000.00
Early Prepaid Assessments...............................................................................................................................................................................-142,853.00 22,960.00 --165,813.00
Late Prepaid Assessments................................................................................................................................................................................-72,835.00 ---72,835.00
City Equity Contribution - 16-02........................................................................................................................................................................50,000.00 ----50,000.00
Total Sources...........................................................................................................................................................................................$11,036,315.85 $3,363,516.80 $3,242,595.15 $574,557.65 $6,735,317.50 $24,952,302.95
Uses Of Funds
Deposit to Project Construction Fund....................................................................................................................................................................10,716,457.00 3,268,774.00 3,148,092.00 566,883.00 6,619,317.00 24,319,523.00
Total Underwriter's Discount (1.300%)..................................................................................................................................................................138,385.00 40,430.00 41,340.00 7,280.00 86,450.00 313,885.00
Deposit to Capitalized Interest (CIF) Fund..............................................................................................................................................................132,540.83 39,312.85 39,943.54 --211,797.22
Costs of Issuance.......................................................................................................................................................................................44,407.45 12,973.89 13,265.92 2,336.13 27,741.61 100,725.00
Rounding Amount.........................................................................................................................................................................................4,525.57 2,026.06 (46.31)(1,941.48)1,808.89 6,372.73
Total Uses..............................................................................................................................................................................................$11,036,315.85 $3,363,516.80 $3,242,595.15 $574,557.65 $6,735,317.50 $24,952,302.95
2016B GO Improvement Bond | Issue Summary | 5/18/2016 | 1:30 PM
Page 7
$24,145,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2016B - Issue Summary
Pricing Summary
Maturity Type of Bond Coupon Yield Maturity Value Price YTM Call Date Call Price Dollar Price
02/01/2018 Serial Coupon 1.250%0.950%1,075,000.00 100.453% ---1,079,869.75
02/01/2019 Serial Coupon 1.750%1.100%1,175,000.00 101.615% ---1,193,976.25
02/01/2020 Serial Coupon 1.750%1.200%1,380,000.00 101.894% ---1,406,137.20
02/01/2021 Serial Coupon 1.750%1.300%1,390,000.00 101.972% ---1,417,410.80
02/01/2022 Serial Coupon 1.750%1.450%1,400,000.00 101.587% ---1,422,218.00
02/01/2023 Serial Coupon 2.000%1.550%1,405,000.00 102.783% ---1,444,101.15
02/01/2024 Serial Coupon 2.500%1.700%1,420,000.00 105.630% ---1,499,946.00
02/01/2025 Serial Coupon 2.500%1.950%1,445,000.00 104.301% ---1,507,149.45
02/01/2026 Serial Coupon 2.500%2.150%1,395,000.00 102.713%c 2.183%02/01/2025 100.000%1,432,846.35
02/01/2027 Serial Coupon 2.250%2.250%1,410,000.00 100.000% ---1,410,000.00
02/01/2028 Serial Coupon 2.400%2.400%1,430,000.00 100.000% ---1,430,000.00
02/01/2029 Serial Coupon 2.550%2.550%1,455,000.00 100.000% ---1,455,000.00
02/01/2030 Serial Coupon 2.700%2.700%1,475,000.00 100.000% ---1,475,000.00
02/01/2031 Serial Coupon 2.750%2.750%1,500,000.00 100.000% ---1,500,000.00
02/01/2032 Serial Coupon 2.850%2.850%1,535,000.00 100.000% ---1,535,000.00
02/01/2033 Serial Coupon 2.900%2.900%1,565,000.00 100.000% ---1,565,000.00
02/01/2034 Serial Coupon 2.950%2.950%880,000.00 100.000% ---880,000.00
02/01/2035 Serial Coupon 3.250%3.250%275,000.00 100.000% ---275,000.00
02/01/2036 Serial Coupon 3.250%3.250%270,000.00 100.000% ---270,000.00
02/01/2037 Serial Coupon 3.250%3.250%265,000.00 100.000% ---265,000.00
Total ---$24,145,000.00 -----$24,463,654.95
Bid Information
Par Amount of Bonds.....................................................................................................................................................................................$24,145,000.00
Reoffering Premium or (Discount)........................................................................................................................................................................318,654.95
Gross Production........................................................................................................................................................................................$24,463,654.95
Total Underwriter's Discount (1.300%)..................................................................................................................................................................$(313,885.00)
Bid (100.020%)..........................................................................................................................................................................................24,149,769.95
Total Purchase Price....................................................................................................................................................................................$24,149,769.95
Bond Year Dollars.......................................................................................................................................................................................$241,223.19
Average Life............................................................................................................................................................................................9.991 Years
Average Coupon..........................................................................................................................................................................................2.5805638%
Net Interest Cost (NIC).................................................................................................................................................................................2.5785864%
True Interest Cost (TIC)................................................................................................................................................................................2.5582252%
2016B GO Improvement Bond | Issue Summary | 5/18/2016 | 2:18 PM
Page 8
City of Lakeville, Minnesota
General Obligation Improvement Bonds
2016B Assessments
Composition of Assessments
16-02
15-02 20
Years
15-02 29
Years 16-04
Issue
Summary
Sources Of Funds
Amount of Spread Assessments paid over time.....................................................................................................................................................................................$2,995,460.00 $2,883,023.00 $170,063.00 $129,672.00 $6,178,218.00
Prepaid Assessments.....................................................................................................................................................................................22,960.00 215,688.00 --238,648.00
City Assessed Portion...................................................................................................................................................................................-8,098.00 --8,098.00
Assessment Discount.....................................................................................................................................................................................-2,915.00 --2,915.00
Total Sources...........................................................................................................................................................................................$3,018,420.00 $3,109,724.00 $170,063.00 $129,672.00 $6,427,879.00
2016B Assessments | Issue Summary | 5/17/2016 | 11:08 AM
Page 9
City of Lakeville, Minnesota
General Obligation Improvement Bonds
2016B Assessments
Aggregate Assessment Income
DATE 16-02 15-02 20
Years
15-02 29
Years
16-04 TOTAL
12/31/2017 284,568.70 259,472.07 13,517.09 12,318.84 569,876.70
12/31/2018 277,828.92 253,706.03 13,253.19 12,027.08 556,815.22
12/31/2019 271,089.14 247,939.97 12,989.31 11,735.32 543,753.74
12/31/2020 264,349.34 242,173.93 12,725.41 11,443.56 530,692.24
12/31/2021 257,609.56 236,407.89 12,461.52 11,151.80 517,630.77
12/31/2022 250,869.78 230,641.85 12,197.62 10,860.04 504,569.29
12/31/2023 244,130.00 224,875.79 11,933.72 10,568.26 491,507.77
12/31/2024 237,390.20 219,109.75 11,669.84 10,276.50 478,446.29
12/31/2025 230,650.42 213,343.71 11,405.94 9,984.74 465,384.81
12/31/2026 223,910.64 207,577.65 11,142.06 9,692.98 452,323.33
12/31/2027 217,170.86 201,811.61 10,878.16 9,401.22 439,261.85
12/31/2028 210,431.06 196,045.57 10,614.28 9,109.46 426,200.37
12/31/2029 203,691.28 190,279.51 10,350.38 8,817.70 413,138.87
12/31/2030 196,951.50 184,513.47 10,086.50 8,525.94 400,077.41
12/31/2031 190,211.72 178,747.43 9,822.60 8,234.18 387,015.93
12/31/2032 183,471.92 172,981.39 9,558.72 7,942.42 373,954.45
12/31/2033 176,732.14 167,215.33 9,294.82 7,650.64 360,892.93
12/31/2034 169,992.36 161,449.29 9,030.92 7,358.88 347,831.45
12/31/2035 163,252.58 155,683.25 8,767.04 7,067.12 334,769.99
12/31/2036 156,512.78 149,917.19 8,503.14 6,775.36 321,708.47
12/31/2037 --8,239.26 -8,239.26
12/31/2038 --7,975.36 -7,975.36
12/31/2039 --7,711.48 -7,711.48
12/31/2040 --7,447.58 -7,447.58
12/31/2041 --7,183.70 -7,183.70
12/31/2042 --6,919.80 -6,919.80
12/31/2043 --6,655.92 -6,655.92
12/31/2044 --6,392.02 -6,392.02
12/31/2045 --6,128.14 -6,128.14
Total $4,410,814.90 $4,093,892.68 $284,855.52 $190,942.04 $8,980,505.14
Par Amounts Of Selected Issues
2016B Assessments -16-02...........................................................................................................................................................................2,995,460.00
2016B Assessme-15-02 20 Years...........................................................................................................................................................................2,883,023.00
2016B Assessme-15-02 29 Years...........................................................................................................................................................................170,063.00
2016B Assessments -16-04...........................................................................................................................................................................129,672.00
TOTAL...................................................................................................................................................................................................6,178,218.00
Aggregate | 5/17/2016 | 11:08 AM
Page 10
$2,995,460
City of Lakeville, Minnesota
General Obligation Improvement Bonds
2016B Assessments - 16-02
ASSESSMENT INCOME
Date Principal Coupon Interest Total P+I
12/31/2017 149,773.00 4.500%134,795.70 284,568.70
12/31/2018 149,773.00 4.500%128,055.92 277,828.92
12/31/2019 149,773.00 4.500%121,316.14 271,089.14
12/31/2020 149,773.00 4.500%114,576.34 264,349.34
12/31/2021 149,773.00 4.500%107,836.56 257,609.56
12/31/2022 149,773.00 4.500%101,096.78 250,869.78
12/31/2023 149,773.00 4.500%94,357.00 244,130.00
12/31/2024 149,773.00 4.500%87,617.20 237,390.20
12/31/2025 149,773.00 4.500%80,877.42 230,650.42
12/31/2026 149,773.00 4.500%74,137.64 223,910.64
12/31/2027 149,773.00 4.500%67,397.86 217,170.86
12/31/2028 149,773.00 4.500%60,658.06 210,431.06
12/31/2029 149,773.00 4.500%53,918.28 203,691.28
12/31/2030 149,773.00 4.500%47,178.50 196,951.50
12/31/2031 149,773.00 4.500%40,438.72 190,211.72
12/31/2032 149,773.00 4.500%33,698.92 183,471.92
12/31/2033 149,773.00 4.500%26,959.14 176,732.14
12/31/2034 149,773.00 4.500%20,219.36 169,992.36
12/31/2035 149,773.00 4.500%13,479.58 163,252.58
12/31/2036 149,773.00 4.500%6,739.78 156,512.78
Total $2,995,460.00 -$1,415,354.90 $4,410,814.90
SIGNIFICANT DATES
Filing Date.............................................................................................................................................................................................1/01/2017
First Payment Date......................................................................................................................................................................................12/31/2017
2016B Assessments | 16-02 | 5/17/2016 | 11:08 AM
Page 11
$2,883,023
City of Lakeville, Minnesota
General Obligation Improvement Bonds
2016B Assessments - 15-02 20 Years
ASSESSMENT INCOME
Date Principal Coupon Interest Total P+I
12/31/2017 144,151.15 4.000%115,320.92 259,472.07
12/31/2018 144,151.15 4.000%109,554.88 253,706.03
12/31/2019 144,151.15 4.000%103,788.82 247,939.97
12/31/2020 144,151.15 4.000%98,022.78 242,173.93
12/31/2021 144,151.15 4.000%92,256.74 236,407.89
12/31/2022 144,151.15 4.000%86,490.70 230,641.85
12/31/2023 144,151.15 4.000%80,724.64 224,875.79
12/31/2024 144,151.15 4.000%74,958.60 219,109.75
12/31/2025 144,151.15 4.000%69,192.56 213,343.71
12/31/2026 144,151.15 4.000%63,426.50 207,577.65
12/31/2027 144,151.15 4.000%57,660.46 201,811.61
12/31/2028 144,151.15 4.000%51,894.42 196,045.57
12/31/2029 144,151.15 4.000%46,128.36 190,279.51
12/31/2030 144,151.15 4.000%40,362.32 184,513.47
12/31/2031 144,151.15 4.000%34,596.28 178,747.43
12/31/2032 144,151.15 4.000%28,830.24 172,981.39
12/31/2033 144,151.15 4.000%23,064.18 167,215.33
12/31/2034 144,151.15 4.000%17,298.14 161,449.29
12/31/2035 144,151.15 4.000%11,532.10 155,683.25
12/31/2036 144,151.15 4.000%5,766.04 149,917.19
Total $2,883,023.00 -$1,210,869.68 $4,093,892.68
SIGNIFICANT DATES
Filing Date.............................................................................................................................................................................................1/01/2017
First Payment Date......................................................................................................................................................................................12/31/2017
2016B Assessments | 15-02 20 Years | 5/17/2016 | 11:08 AM
Page 12
$170,063
City of Lakeville, Minnesota
General Obligation Improvement Bonds
2016B Assessments - 15-02 29 Years
ASSESSMENT INCOME
Date Principal Coupon Interest Total P+I
12/31/2017 5,864.25 4.500%7,652.84 13,517.09
12/31/2018 5,864.25 4.500%7,388.94 13,253.19
12/31/2019 5,864.25 4.500%7,125.06 12,989.31
12/31/2020 5,864.25 4.500%6,861.16 12,725.41
12/31/2021 5,864.24 4.500%6,597.28 12,461.52
12/31/2022 5,864.24 4.500%6,333.38 12,197.62
12/31/2023 5,864.24 4.500%6,069.48 11,933.72
12/31/2024 5,864.24 4.500%5,805.60 11,669.84
12/31/2025 5,864.24 4.500%5,541.70 11,405.94
12/31/2026 5,864.24 4.500%5,277.82 11,142.06
12/31/2027 5,864.24 4.500%5,013.92 10,878.16
12/31/2028 5,864.24 4.500%4,750.04 10,614.28
12/31/2029 5,864.24 4.500%4,486.14 10,350.38
12/31/2030 5,864.24 4.500%4,222.26 10,086.50
12/31/2031 5,864.24 4.500%3,958.36 9,822.60
12/31/2032 5,864.24 4.500%3,694.48 9,558.72
12/31/2033 5,864.24 4.500%3,430.58 9,294.82
12/31/2034 5,864.24 4.500%3,166.68 9,030.92
12/31/2035 5,864.24 4.500%2,902.80 8,767.04
12/31/2036 5,864.24 4.500%2,638.90 8,503.14
12/31/2037 5,864.24 4.500%2,375.02 8,239.26
12/31/2038 5,864.24 4.500%2,111.12 7,975.36
12/31/2039 5,864.24 4.500%1,847.24 7,711.48
12/31/2040 5,864.24 4.500%1,583.34 7,447.58
12/31/2041 5,864.24 4.500%1,319.46 7,183.70
12/31/2042 5,864.24 4.500%1,055.56 6,919.80
12/31/2043 5,864.24 4.500%791.68 6,655.92
12/31/2044 5,864.24 4.500%527.78 6,392.02
12/31/2045 5,864.24 4.500%263.90 6,128.14
Total $170,063.00 -$114,792.52 $284,855.52
SIGNIFICANT DATES
Filing Date.............................................................................................................................................................................................1/01/2017
First Payment Date......................................................................................................................................................................................12/31/2017
2016B Assessments | 15-02 29 Years | 5/17/2016 | 11:08 AM
Page 13
$129,672
City of Lakeville, Minnesota
General Obligation Improvement Bonds
2016B Assessments - 16-04
ASSESSMENT INCOME
Date Principal Coupon Interest Total P+I
12/31/2017 6,483.60 4.500%5,835.24 12,318.84
12/31/2018 6,483.60 4.500%5,543.48 12,027.08
12/31/2019 6,483.60 4.500%5,251.72 11,735.32
12/31/2020 6,483.60 4.500%4,959.96 11,443.56
12/31/2021 6,483.60 4.500%4,668.20 11,151.80
12/31/2022 6,483.60 4.500%4,376.44 10,860.04
12/31/2023 6,483.60 4.500%4,084.66 10,568.26
12/31/2024 6,483.60 4.500%3,792.90 10,276.50
12/31/2025 6,483.60 4.500%3,501.14 9,984.74
12/31/2026 6,483.60 4.500%3,209.38 9,692.98
12/31/2027 6,483.60 4.500%2,917.62 9,401.22
12/31/2028 6,483.60 4.500%2,625.86 9,109.46
12/31/2029 6,483.60 4.500%2,334.10 8,817.70
12/31/2030 6,483.60 4.500%2,042.34 8,525.94
12/31/2031 6,483.60 4.500%1,750.58 8,234.18
12/31/2032 6,483.60 4.500%1,458.82 7,942.42
12/31/2033 6,483.60 4.500%1,167.04 7,650.64
12/31/2034 6,483.60 4.500%875.28 7,358.88
12/31/2035 6,483.60 4.500%583.52 7,067.12
12/31/2036 6,483.60 4.500%291.76 6,775.36
Total $129,672.00 -$61,270.04 $190,942.04
SIGNIFICANT DATES
Filing Date.............................................................................................................................................................................................1/01/2017
First Payment Date......................................................................................................................................................................................12/31/2017
2016B Assessments | 16-04 | 5/17/2016 | 11:08 AM
Page 14
$24,145,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2016B - Issue Summary
Aggregate Net Debt Service
DATE Tax Levy Project 15-02 -
Assessed
Projects 16-02
and 16-04 -
Assessed
Project 15-16 -
Sewer Funds
Project 15-02
16-02 and 16-
04 - Water
Fund
TOTAL
02/01/2017 ---5,686.81 81,879.44 87,566.25
02/01/2018 551,130.00 254,487.50 265,682.50 75,775.00 495,140.00 1,642,215.00
02/01/2019 647,380.00 247,237.50 263,307.50 74,962.50 495,890.00 1,728,777.50
02/01/2020 840,380.00 244,175.00 254,982.50 78,825.00 494,852.50 1,913,215.00
02/01/2021 839,880.00 236,112.50 246,745.00 77,600.00 498,727.50 1,899,065.00
02/01/2022 839,205.00 233,137.50 238,595.00 76,375.00 497,427.50 1,884,740.00
02/01/2023 838,355.00 225,162.50 230,532.50 75,150.00 496,040.00 1,865,240.00
02/01/2024 835,755.00 216,862.50 227,132.50 78,750.00 493,640.00 1,852,140.00
02/01/2025 839,755.00 212,862.50 217,882.50 76,875.00 494,265.00 1,841,640.00
02/01/2026 838,255.00 208,862.50 213,757.50 -494,640.00 1,755,515.00
02/01/2027 836,380.00 199,862.50 204,632.50 -494,765.00 1,735,640.00
02/01/2028 835,855.00 196,375.00 196,032.50 -495,652.50 1,723,915.00
02/01/2029 838,935.00 187,655.00 192,312.50 -495,692.50 1,714,595.00
02/01/2030 835,447.50 183,830.00 183,360.00 -494,855.00 1,697,492.50
02/01/2031 835,467.50 174,780.00 174,310.00 -498,110.00 1,682,667.50
02/01/2032 839,567.50 170,792.50 170,322.50 -495,735.00 1,676,417.50
02/01/2033 837,195.00 166,660.00 161,190.00 -497,625.00 1,662,670.00
02/01/2034 308,850.00 157,455.00 157,130.00 -308,850.00 932,285.00
02/01/2035 -153,325.00 148,000.00 --301,325.00
02/01/2036 -143,775.00 143,612.50 --287,387.50
02/01/2037 -139,387.50 134,225.00 --273,612.50
Total $13,237,792.50 $3,952,797.50 $4,023,745.00 $619,999.31 $8,323,786.94 $30,158,121.25
Par Amounts Of Selected Issues
2016B GO Improvement-Tax Levy...........................................................................................................................................................................10,645,000.00
2016-Project 15-02 - Assessed...........................................................................................................................................................................3,110,000.00
-Projects 16-02 and 16-04 - As..........................................................................................................................................................................3,180,000.00
2-Project 15-16 - Sewer Funds...........................................................................................................................................................................560,000.00
-Project 15-02 16-02 and 16-04..........................................................................................................................................................................6,650,000.00
TOTAL...................................................................................................................................................................................................24,145,000.00
Aggregate | 5/18/2016 | 1:30 PM
Page 15
$24,145,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2016B - Issue Summary
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Assessment
Income
Utility Fund
Revenue
Levy
Required
(Surplus)02/01/2017 --299,363.47 299,363.47 (211,797.22)87,566.25 91,944.56 -91,944.56 -
02/01/2018 1,075,000.00 1.250%567,215.00 1,642,215.00 -1,642,215.00 1,724,325.75 569,876.70 599,460.75 554,988.30
02/01/2019 1,175,000.00 1.750%553,777.50 1,728,777.50 -1,728,777.50 1,815,216.38 556,815.22 599,395.13 659,006.03
02/01/2020 1,380,000.00 1.750%533,215.00 1,913,215.00 -1,913,215.00 2,008,875.75 543,753.74 602,361.38 862,760.64
02/01/2021 1,390,000.00 1.750%509,065.00 1,899,065.00 -1,899,065.00 1,994,018.25 530,692.24 605,143.88 858,182.14
02/01/2022 1,400,000.00 1.750%484,740.00 1,884,740.00 -1,884,740.00 1,978,977.00 517,630.77 602,492.63 858,853.61
02/01/2023 1,405,000.00 2.000%460,240.00 1,865,240.00 -1,865,240.00 1,958,502.00 504,569.29 599,749.50 854,183.21
02/01/2024 1,420,000.00 2.500%432,140.00 1,852,140.00 -1,852,140.00 1,944,747.00 491,507.77 601,009.50 852,229.73
02/01/2025 1,445,000.00 2.500%396,640.00 1,841,640.00 -1,841,640.00 1,933,722.00 478,446.29 599,697.00 855,578.71
02/01/2026 1,395,000.00 2.500%360,515.00 1,755,515.00 -1,755,515.00 1,843,290.75 465,384.81 519,372.00 858,533.94
02/01/2027 1,410,000.00 2.250%325,640.00 1,735,640.00 -1,735,640.00 1,822,422.00 452,323.33 519,503.25 850,595.42
02/01/2028 1,430,000.00 2.400%293,915.00 1,723,915.00 -1,723,915.00 1,810,110.75 439,261.85 520,435.13 850,413.78
02/01/2029 1,455,000.00 2.550%259,595.00 1,714,595.00 -1,714,595.00 1,800,324.75 426,200.37 520,477.13 853,647.26
02/01/2030 1,475,000.00 2.700%222,492.50 1,697,492.50 -1,697,492.50 1,782,367.13 413,138.87 519,597.75 849,630.51
02/01/2031 1,500,000.00 2.750%182,667.50 1,682,667.50 -1,682,667.50 1,766,800.88 400,077.41 523,015.50 843,707.97
02/01/2032 1,535,000.00 2.850%141,417.50 1,676,417.50 -1,676,417.50 1,760,238.38 387,015.93 520,521.75 852,700.69
02/01/2033 1,565,000.00 2.900%97,670.00 1,662,670.00 -1,662,670.00 1,745,803.50 373,954.45 522,506.25 849,342.80
02/01/2034 880,000.00 2.950%52,285.00 932,285.00 -932,285.00 978,899.25 360,892.93 324,292.50 293,713.82
02/01/2035 275,000.00 3.250%26,325.00 301,325.00 -301,325.00 316,391.25 347,831.45 -(31,440.20)
02/01/2036 270,000.00 3.250%17,387.50 287,387.50 -287,387.50 301,756.88 334,769.99 -(33,013.11)
02/01/2037 265,000.00 3.250%8,612.50 273,612.50 -273,612.50 287,293.13 321,708.47 -(34,415.35)
02/01/2038 -------8,239.26 -(8,239.26)
02/01/2039 -------7,975.36 -(7,975.36)
02/01/2040 -------7,711.48 -(7,711.48)
02/01/2041 -------7,447.58 -(7,447.58)
02/01/2042 -------7,183.70 -(7,183.70)
02/01/2043 -------6,919.80 -(6,919.80)
02/01/2044 -------6,655.92 -(6,655.92)
02/01/2045 -------6,392.02 -(6,392.02)
02/01/2046 -------6,128.14 -(6,128.14)
Total $24,145,000.00 -$6,224,918.47 $30,369,918.47 (211,797.22)$30,158,121.25 $31,666,027.31 $8,980,505.14 $9,390,975.56 $13,294,546.61
Dated...................................................................................................................................................................................................7/21/2016
Delivery Date...........................................................................................................................................................................................7/21/2016
First Coupon Date.......................................................................................................................................................................................2/01/2017
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$241,223.19
Average Life............................................................................................................................................................................................9.991 Years
Average Coupon..........................................................................................................................................................................................2.5805638%
Net Interest Cost (NIC).................................................................................................................................................................................2.5785864%
True Interest Cost (TIC)................................................................................................................................................................................2.5582252%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4077229%
All Inclusive Cost (AIC)................................................................................................................................................................................2.6069379%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................2.4269119%
Weighted Average Maturity...............................................................................................................................................................................9.948 Years
2016B GO Improvement Bond | Issue Summary | 5/18/2016 | 1:30 PM
Page 16
$10,645,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2016B - Tax Levy
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Levy
Required02/01/2017 --132,540.83 132,540.83 (132,540.83)---
02/01/2018 300,000.00 1.250%251,130.00 551,130.00 -551,130.00 578,686.50 578,686.50
02/01/2019 400,000.00 1.750%247,380.00 647,380.00 -647,380.00 679,749.00 679,749.00
02/01/2020 600,000.00 1.750%240,380.00 840,380.00 -840,380.00 882,399.00 882,399.00
02/01/2021 610,000.00 1.750%229,880.00 839,880.00 -839,880.00 881,874.00 881,874.00
02/01/2022 620,000.00 1.750%219,205.00 839,205.00 -839,205.00 881,165.25 881,165.25
02/01/2023 630,000.00 2.000%208,355.00 838,355.00 -838,355.00 880,272.75 880,272.75
02/01/2024 640,000.00 2.500%195,755.00 835,755.00 -835,755.00 877,542.75 877,542.75
02/01/2025 660,000.00 2.500%179,755.00 839,755.00 -839,755.00 881,742.75 881,742.75
02/01/2026 675,000.00 2.500%163,255.00 838,255.00 -838,255.00 880,167.75 880,167.75
02/01/2027 690,000.00 2.250%146,380.00 836,380.00 -836,380.00 878,199.00 878,199.00
02/01/2028 705,000.00 2.400%130,855.00 835,855.00 -835,855.00 877,647.75 877,647.75
02/01/2029 725,000.00 2.550%113,935.00 838,935.00 -838,935.00 880,881.75 880,881.75
02/01/2030 740,000.00 2.700%95,447.50 835,447.50 -835,447.50 877,219.88 877,219.88
02/01/2031 760,000.00 2.750%75,467.50 835,467.50 -835,467.50 877,240.88 877,240.88
02/01/2032 785,000.00 2.850%54,567.50 839,567.50 -839,567.50 881,545.88 881,545.88
02/01/2033 805,000.00 2.900%32,195.00 837,195.00 -837,195.00 879,054.75 879,054.75
02/01/2034 300,000.00 2.950%8,850.00 308,850.00 -308,850.00 324,292.50 324,292.50
Total $10,645,000.00 -$2,725,333.33 $13,370,333.33 (132,540.83)$13,237,792.50 $13,899,682.13 $13,899,682.13
Dated...................................................................................................................................................................................................7/21/2016
Delivery Date...........................................................................................................................................................................................7/21/2016
First Coupon Date.......................................................................................................................................................................................2/01/2017
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$107,043.19
Average Life............................................................................................................................................................................................10.056 Years
Average Coupon..........................................................................................................................................................................................2.5460127%
Net Interest Cost (NIC).................................................................................................................................................................................2.5432747%
True Interest Cost (TIC)................................................................................................................................................................................2.5273770%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4077229%
All Inclusive Cost (AIC)................................................................................................................................................................................2.5755614%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................2.3923254%
Weighted Average Maturity...............................................................................................................................................................................10.014 Years
2016B GO Improvement Bond | Tax Levy | 5/18/2016 | 2:18 PM
Page 17
$3,110,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2016B - Project 15-02 - Assessed
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Assessment
Income
Surplus
02/01/2017 --39,312.85 39,312.85 (39,312.85)----
02/01/2018 180,000.00 1.250%74,487.50 254,487.50 -254,487.50 267,211.88 272,989.16 5,777.28
02/01/2019 175,000.00 1.750%72,237.50 247,237.50 -247,237.50 259,599.38 266,959.22 7,359.84
02/01/2020 175,000.00 1.750%69,175.00 244,175.00 -244,175.00 256,383.75 260,929.28 4,545.53
02/01/2021 170,000.00 1.750%66,112.50 236,112.50 -236,112.50 247,918.13 254,899.34 6,981.22
02/01/2022 170,000.00 1.750%63,137.50 233,137.50 -233,137.50 244,794.38 248,869.41 4,075.04
02/01/2023 165,000.00 2.000%60,162.50 225,162.50 -225,162.50 236,420.63 242,839.47 6,418.85
02/01/2024 160,000.00 2.500%56,862.50 216,862.50 -216,862.50 227,705.63 236,809.51 9,103.89
02/01/2025 160,000.00 2.500%52,862.50 212,862.50 -212,862.50 223,505.63 230,779.59 7,273.97
02/01/2026 160,000.00 2.500%48,862.50 208,862.50 -208,862.50 219,305.63 224,749.65 5,444.02
02/01/2027 155,000.00 2.250%44,862.50 199,862.50 -199,862.50 209,855.63 218,719.71 8,864.08
02/01/2028 155,000.00 2.400%41,375.00 196,375.00 -196,375.00 206,193.75 212,689.77 6,496.02
02/01/2029 150,000.00 2.550%37,655.00 187,655.00 -187,655.00 197,037.75 206,659.85 9,622.10
02/01/2030 150,000.00 2.700%33,830.00 183,830.00 -183,830.00 193,021.50 200,629.89 7,608.39
02/01/2031 145,000.00 2.750%29,780.00 174,780.00 -174,780.00 183,519.00 194,599.97 11,080.97
02/01/2032 145,000.00 2.850%25,792.50 170,792.50 -170,792.50 179,332.13 188,570.03 9,237.91
02/01/2033 145,000.00 2.900%21,660.00 166,660.00 -166,660.00 174,993.00 182,540.11 7,547.11
02/01/2034 140,000.00 2.950%17,455.00 157,455.00 -157,455.00 165,327.75 176,510.15 11,182.40
02/01/2035 140,000.00 3.250%13,325.00 153,325.00 -153,325.00 160,991.25 170,480.21 9,488.96
02/01/2036 135,000.00 3.250%8,775.00 143,775.00 -143,775.00 150,963.75 164,450.29 13,486.54
02/01/2037 135,000.00 3.250%4,387.50 139,387.50 -139,387.50 146,356.88 158,420.33 12,063.46
02/01/2038 -------8,239.26 8,239.26
02/01/2039 -------7,975.36 7,975.36
02/01/2040 -------7,711.48 7,711.48
02/01/2041 -------7,447.58 7,447.58
02/01/2042 -------7,183.70 7,183.70
02/01/2043 -------6,919.80 6,919.80
02/01/2044 -------6,655.92 6,655.92
02/01/2045 -------6,392.02 6,392.02
02/01/2046 -------6,128.14 6,128.14
Total $3,110,000.00 -$882,110.35 $3,992,110.35 (39,312.85)$3,952,797.50 $4,150,437.38 $4,378,748.20 $228,310.83
Dated...................................................................................................................................................................................................7/21/2016
Delivery Date...........................................................................................................................................................................................7/21/2016
First Coupon Date.......................................................................................................................................................................................2/01/2017
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$32,751.39
Average Life............................................................................................................................................................................................10.531 Years
Average Coupon..........................................................................................................................................................................................2.6933525%
Net Interest Cost (NIC).................................................................................................................................................................................2.7012948%
True Interest Cost (TIC)................................................................................................................................................................................2.6743332%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4135057%
All Inclusive Cost (AIC)................................................................................................................................................................................2.7214584%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................2.5584761%
Weighted Average Maturity...............................................................................................................................................................................10.483 Years
2016B GO Improvement Bond | Project 15-02 - Assessed | 5/18/2016 | 1:30 PM
Page 18
$3,180,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2016B - Projects 16-02 and 16-04 - Assessed
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Assessment
Income
Surplus
02/01/2017 --39,943.54 39,943.54 (39,943.54)----
02/01/2018 190,000.00 1.250%75,682.50 265,682.50 -265,682.50 278,966.63 296,887.54 17,920.92
02/01/2019 190,000.00 1.750%73,307.50 263,307.50 -263,307.50 276,472.88 289,856.00 13,383.13
02/01/2020 185,000.00 1.750%69,982.50 254,982.50 -254,982.50 267,731.63 282,824.46 15,092.84
02/01/2021 180,000.00 1.750%66,745.00 246,745.00 -246,745.00 259,082.25 275,792.90 16,710.65
02/01/2022 175,000.00 1.750%63,595.00 238,595.00 -238,595.00 250,524.75 268,761.36 18,236.61
02/01/2023 170,000.00 2.000%60,532.50 230,532.50 -230,532.50 242,059.13 261,729.82 19,670.70
02/01/2024 170,000.00 2.500%57,132.50 227,132.50 -227,132.50 238,489.13 254,698.26 16,209.14
02/01/2025 165,000.00 2.500%52,882.50 217,882.50 -217,882.50 228,776.63 247,666.70 18,890.08
02/01/2026 165,000.00 2.500%48,757.50 213,757.50 -213,757.50 224,445.38 240,635.16 16,189.79
02/01/2027 160,000.00 2.250%44,632.50 204,632.50 -204,632.50 214,864.13 233,603.62 18,739.50
02/01/2028 155,000.00 2.400%41,032.50 196,032.50 -196,032.50 205,834.13 226,572.08 20,737.96
02/01/2029 155,000.00 2.550%37,312.50 192,312.50 -192,312.50 201,928.13 219,540.52 17,612.40
02/01/2030 150,000.00 2.700%33,360.00 183,360.00 -183,360.00 192,528.00 212,508.98 19,980.98
02/01/2031 145,000.00 2.750%29,310.00 174,310.00 -174,310.00 183,025.50 205,477.44 22,451.94
02/01/2032 145,000.00 2.850%25,322.50 170,322.50 -170,322.50 178,838.63 198,445.90 19,607.28
02/01/2033 140,000.00 2.900%21,190.00 161,190.00 -161,190.00 169,249.50 191,414.34 22,164.84
02/01/2034 140,000.00 2.950%17,130.00 157,130.00 -157,130.00 164,986.50 184,382.78 19,396.28
02/01/2035 135,000.00 3.250%13,000.00 148,000.00 -148,000.00 155,400.00 177,351.24 21,951.24
02/01/2036 135,000.00 3.250%8,612.50 143,612.50 -143,612.50 150,793.13 170,319.70 19,526.58
02/01/2037 130,000.00 3.250%4,225.00 134,225.00 -134,225.00 140,936.25 163,288.14 22,351.89
Total $3,180,000.00 -$883,688.54 $4,063,688.54 (39,943.54)$4,023,745.00 $4,224,932.25 $4,601,756.94 $376,824.69
Dated...................................................................................................................................................................................................7/21/2016
Delivery Date...........................................................................................................................................................................................7/21/2016
First Coupon Date.......................................................................................................................................................................................2/01/2017
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$32,948.33
Average Life............................................................................................................................................................................................10.361 Years
Average Coupon..........................................................................................................................................................................................2.6820432%
Net Interest Cost (NIC).................................................................................................................................................................................2.6872175%
True Interest Cost (TIC)................................................................................................................................................................................2.6595319%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4135057%
All Inclusive Cost (AIC)................................................................................................................................................................................2.7072897%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................2.5417713%
Weighted Average Maturity...............................................................................................................................................................................10.314 Years
2016B GO Improvement Bond | Projects 16-02 and 16-04 | 5/18/2016 | 1:30 PM
Page 19
$560,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2016B - Project 15-16 - Sewer Funds
DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I 105% Levy
02/01/2017 --5,686.81 5,686.81 5,971.15
02/01/2018 65,000.00 1.250%10,775.00 75,775.00 79,563.75
02/01/2019 65,000.00 1.750%9,962.50 74,962.50 78,710.63
02/01/2020 70,000.00 1.750%8,825.00 78,825.00 82,766.25
02/01/2021 70,000.00 1.750%7,600.00 77,600.00 81,480.00
02/01/2022 70,000.00 1.750%6,375.00 76,375.00 80,193.75
02/01/2023 70,000.00 2.000%5,150.00 75,150.00 78,907.50
02/01/2024 75,000.00 2.500%3,750.00 78,750.00 82,687.50
02/01/2025 75,000.00 2.500%1,875.00 76,875.00 80,718.75
Total $560,000.00 -$59,999.31 $619,999.31 $650,999.28
SIGNIFICANT DATES
Dated...................................................................................................................................................................................................7/21/2016
Delivery Date...........................................................................................................................................................................................7/21/2016
First Coupon Date.......................................................................................................................................................................................2/01/2017
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$2,875.56
Average Life............................................................................................................................................................................................5.135 Years
Average Coupon..........................................................................................................................................................................................2.0865293%
Net Interest Cost (NIC).................................................................................................................................................................................1.8334426%
True Interest Cost (TIC)................................................................................................................................................................................1.8117729%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4135057%
All Inclusive Cost (AIC)................................................................................................................................................................................1.8971877%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................1.5311882%
Weighted Average Maturity...............................................................................................................................................................................5.165 Years
Interest rates are estimates. Changes in rates may
cause significant alterations to this schedule.
The actual underwriter's discount bid may also vary.
2016B GO Improvement Bond | Project 15-16 - Sewer Fun | 5/18/2016 | 1:30 PM
Page 20
$6,650,000
City of Lakeville, Minnesota
General Obligation Improvement Bonds
Series 2016B - Project 15-02 16-02 and 16-04 - Water Fund
DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I 105% Levy
02/01/2017 --81,879.44 81,879.44 85,973.41
02/01/2018 340,000.00 1.250%155,140.00 495,140.00 519,897.00
02/01/2019 345,000.00 1.750%150,890.00 495,890.00 520,684.50
02/01/2020 350,000.00 1.750%144,852.50 494,852.50 519,595.13
02/01/2021 360,000.00 1.750%138,727.50 498,727.50 523,663.88
02/01/2022 365,000.00 1.750%132,427.50 497,427.50 522,298.88
02/01/2023 370,000.00 2.000%126,040.00 496,040.00 520,842.00
02/01/2024 375,000.00 2.500%118,640.00 493,640.00 518,322.00
02/01/2025 385,000.00 2.500%109,265.00 494,265.00 518,978.25
02/01/2026 395,000.00 2.500%99,640.00 494,640.00 519,372.00
02/01/2027 405,000.00 2.250%89,765.00 494,765.00 519,503.25
02/01/2028 415,000.00 2.400%80,652.50 495,652.50 520,435.13
02/01/2029 425,000.00 2.550%70,692.50 495,692.50 520,477.13
02/01/2030 435,000.00 2.700%59,855.00 494,855.00 519,597.75
02/01/2031 450,000.00 2.750%48,110.00 498,110.00 523,015.50
02/01/2032 460,000.00 2.850%35,735.00 495,735.00 520,521.75
02/01/2033 475,000.00 2.900%22,625.00 497,625.00 522,506.25
02/01/2034 300,000.00 2.950%8,850.00 308,850.00 324,292.50
Total $6,650,000.00 -$1,673,786.94 $8,323,786.94 $8,739,976.29
SIGNIFICANT DATES
Dated...................................................................................................................................................................................................7/21/2016
Delivery Date...........................................................................................................................................................................................7/21/2016
First Coupon Date.......................................................................................................................................................................................2/01/2017
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$65,604.72
Average Life............................................................................................................................................................................................9.865 Years
Average Coupon..........................................................................................................................................................................................2.5513208%
Net Interest Cost (NIC).................................................................................................................................................................................2.5530471%
True Interest Cost (TIC)................................................................................................................................................................................2.5365171%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4135057%
All Inclusive Cost (AIC)................................................................................................................................................................................2.5857062%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................2.4002922%
Weighted Average Maturity...............................................................................................................................................................................9.826 Years
Interest rates are estimates. Changes in rates may
cause significant alterations to this schedule.
The actual underwriter's discount bid may also vary.
2016B GO Improvement Bond | Project 15-02 16-02 and 1 | 5/18/2016 | 1:30 PM
CITY OF LAKEVILLE
RESOLUTION NO. ______
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF
$24,145,000 GENERAL OBLIGATION BONDS, SERIES 2016B
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 Bonds, Series 2016B, in the aggregate principal amount of
$24,145,000 (the Bonds), pursuant to Minnesota Statutes, Chapters 475, 444 and 429, for the
purpose of (a) financing various street reconstruction projects in the City and (b) financing
various water and sewer utility improvements in the City.
SECTION 2. TERMS OF PROPOSAL. Springsted Incorporated, municipal advisor 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 6th day of June, 2016
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
$24,145,000*
CITY OF LAKEVILLE, MINNESOTA
GENERAL OBLIGATION BONDS, SERIES 2016B
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Monday, June 20, 2016, until 11:00 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 and
August 1 of each year, commencing February 1, 2017. 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:
2018 $1,075,000 2023 $1,405,000 2028 $1,430,000 2033 $1,565,000
2019 $1,175,000 2024 $1,420,000 2029 $1,455,000 2034 $880,000
2020 $1,380,000 2025 $1,445,000 2030 $1,475,000 2035 $275,000
2021 $1,390,000 2026 $1,395,000 2031 $1,500,000 2036 $270,000
2022 $1,400,000 2027 $1,410,000 2032 $1,535,000 2037 $265,000
* 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.
iii
OPTIONAL REDEMPTION
The City may elect on February 1, 2025, and on any day thereafter, to prepay Bonds due on or after
February 1, 2026. 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. Special assessments and general property taxes will be
pledged to the repayment of the Improvement Portion of the Bonds. In addition, the City will pledge net
revenues of the City’s water fund and sewer utility fund to repay the Utility Portion of the Bonds.
BIDDING PARAMETERS
Proposals shall be for not less than $23,831,115 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 $2,414,500 (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 July 21, 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 June 6, 2016 BY ORDER OF THE CITY COUNCIL
/s/ Charlene Friedges
City Clerk