HomeMy WebLinkAboutItem 06.dJuly 17, 2017 Item No.________
AUTHORIZING THE ISSUANCE AND SALE OF
$11,535,000 GENERAL OBLIGATION BONDS, SERIES 2017A
Proposed Action
Staff recommends adoption of the following motion: Move to approve a Resolution
Authorizing the Issuance and Sale of $11,535,000 General Obligation Bonds, Series 2017A.
Passage of this motion will result in the financing of the following projects:
• #17-02 – 2017 Street Reconstruction
• #17-04 – Holyoke Avenue Improvements
• #17-07 – 222nd Street and Utility Improvements (Launch Park)
This bond issuance will also refund the February 1, 2019 through February 1, 2028 maturities
of the City’s General Obligation Street Reconstruction Bonds, Series 2007H, dated December
15, 2007.
Overview
The debt will be repaid with a combination of property taxes, special assessments, Water
Operating Fund revenues and Street Light Operating Fund revenues.
The 222nd Street and Utility Improvement project (Launch Park) included a significant
contingency in the cost calculations. The bond issuance reflects only a portion of the
contingency; the remaining portion of the contingency is being funded by the Water Trunk
Fund. The special assessments have been allocated accordingly. Staff anticipates bringing the
final project costs and funding to the City Council in November 2017.
The bid opening for the bonds will be at 10:00 a.m. on Monday, August 7, 2017. The results of
the bid opening and recommendations will be presented to the City Council at its regular
meeting that same night.
Primary Issues to Consider
• Bond Structure – The structure of the 2017A 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 will be retired within 10 years.
• Call provisions. Bonds maturing on or after 2/1/2027 may be prepaid at a price of
par plus accrued interest on or after 2/1/2026.
Supporting Information
• Recommendations for Issuance of Bonds (Prepared by Springsted Inc.)
• Resolution (Prepared by Dorsey & Whitney, LLP)
Financial Impact: $ Budgeted: Y☒ N☐ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: Jerilyn Erickson, Finance Director
Varies Taxes, Assessments, Utilities
CIP
CITY OF LAKEVILLE
RESOLUTION NO. _____
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF
$11,535,000 GENERAL OBLIGATION BONDS, SERIES 2017A
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 2017A, in the aggregate principal amount of
$11,535,000 (the Bonds), pursuant to Minnesota Statutes, Chapters 475 and 429, for the
purpose of (a) financing various street and utility improvement projects in the City and
(b) refunding the February 1, 2019 through February 1, 2028 maturities of the City’s General
Obligation Street Reconstruction Bonds, Series 2007H, dated December 15, 2007.
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, with such changes thereto as the Administrator shall approve.
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.
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 this 17th day of July, 2017
CITY OF LAKEVILLE
By:
Douglas P. Anderson, Mayor
ATTEST:
Charlene Friedges, City Clerk
________________________________
* Preliminary; subject to change.
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THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$11,535,000* CITY OF LAKEVILLE, MINNESOTA GENERAL OBLIGATION BONDS, SERIES 2017A (BOOK ENTRY ONLY)
Proposals for the above-referenced obligations (the “Bonds”) will be received by City of Lakeville,
Minnesota (the “City”) on Monday, August 7, 2017, (the “Sale Date”) until 10:00 A.M., Central Time at
the offices of Springsted Incorporated (“Springsted”), 380 Jackson Street, Suite 300, Saint Paul, Minnesota,
55101, 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 a 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:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
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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 August 1, 2018. 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:
2019 $ 900,000
2020 $1,025,000
2021 $1,025,000
2022 $1,050,000
2023 $1,065,000
2024 $1,075,000
2025 $1,095,000
2026 $1,110,000
2027 $1,075,000
2028 $1,090,000
2029 $ 115,000
2030 $ 110,000
2031 $110,000
2032 $105,000
2033 $105,000
2034 $100,000
2035 $100,000
2036 $ 95,000
2037 $ 95,000
2038 $ 90,000
* 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 or maturities 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 for this purpose is the differential between the price paid to the City for the new issue and the prices at which the proposal indicates the securities will be 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 for 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 lowest bidder (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 regulations of the Securities and
Exchange Commission. The City will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2026, and on any day thereafter, to redeem Bonds due on or after
February 1, 2027. 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 redeemed. 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 redemptions shall be
at a price of par plus accrued interest.
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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 special assessments against
benefited properties and net revenues of the City’s water and street light utility funds for repayment of a
portion of the Bonds. The proceeds will be used to (i) finance street and utility improvement projects in the
City; and (ii) refund the February 1, 2019 through February 1, 2028 maturities of the City’s General
Obligation Street Reconstruction Bonds, Series 2007H, dated December 15, 2007.
BIDDING PARAMETERS
Proposals shall be for not less than $11,535,000 (Par) 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
on the Sale Date 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 as stated on the proposal 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.
ESTABLISHMENT OF ISSUE PRICE AT TIME OF AWARD
In order to establish the issue price of the Bonds for federal income tax purposes, the City requires bidders
to agree to the following, and by submitting a bid, each bidder agrees to the following. If a bid is submitted by a potential underwriter, the bidder confirms that (i) the underwriters have offered
or reasonably expect to offer the Bonds to the public on or before the date of the award at the offering price
(the “initial offering price”) for each maturity as set forth in the bid and (ii) the bidder, if it is the winning
bidder, shall require any agreement among underwriters, selling group agreement, retail distribution
agreement or other agreement relating to the initial sale of the Bonds to the public to which it is a party to
include provisions requiring compliance by all parties to such agreements with the provisions contained
herein. For purposes hereof, Bonds with a separate CUSIP number constitute a separate “maturity,” and
the public does not include underwriters (including members of a selling group or retail distribution group)
or persons related to underwriters. If, however, a bid is submitted for the bidder’s own account in a capacity other than as an underwriter of
the Bonds, and the bidder has no current intention to sell, reoffer, or otherwise dispose of the Bonds, the
bidder shall notify the City to that effect at the time it submits its bid and shall provide a certificate to that
effect in place of the certificate otherwise required below. If the winning bidder intends to act as an underwriter, prior to the time of award, the City shall advise the
winning bidder whether (i) the competitive sale rule or (ii) the “hold-the-offering price” rule applies. If the City advises the Purchaser that the requirements for a competitive sale have been satisfied and that
the competitive sale rule applies, the Purchaser will be required to deliver to the City at or prior to closing
a certification, substantially in the form attached hereto as Exhibit A, as to the reasonably expected initial
offering price as of the award date. If the City advises the Purchaser that the requirements for a competitive sale have not been satisfied and
that the hold-the-offering price rule applies, the Purchaser shall (1) at the earliest practicable time or upon
request from the City confirm that the underwriters did not offer or sell any maturity of the Bonds to any
person at a price higher than the initial offering price of that maturity during the period starting on the award
date and ending on the earlier of (a) the close of the fifth business day after the sale date or (b) the date on
which the underwriters have sold at least 10% of that maturity to the public at or below the initial offering
price; and (2) at or prior to closing, deliver to the City a certification substantially in the form attached
hereto as Exhibit B, together with a copy of the pricing wire.
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Any action to be taken or documentation to be received by the City pursuant hereto may be taken or received
on behalf of the City by Springsted.
Bidders should prepare their bids on the assumption that the Bonds will be subject to the “hold-the-offering-price” rule. Any bid submitted pursuant to the Terms of Proposal shall be considered a firm offer for the purchase of the Bonds, and bids submitted will not be subject to cancellation or withdrawal.
GOOD FAITH DEPOSIT
To have its proposal considered for award, the Purchaser is required to submit a good faith deposit to the
City in the amount of $115,350 (the “Deposit”) no later than 1:00 P.M., Central Time on the Sale Date.
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 Purchaser shall be solely responsible for the timely delivery
of its Deposit whether by check or wire transfer. Neither the City nor Springsted 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, Saint Paul, Minnesota 55101 by the time specified above.
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 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 Purchaser will be retained by the City and no
interest will accrue to the Purchaser. The amount of the Deposit will be 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.
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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 September 7, 2017, 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
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 near-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 the Purchaser, the City agrees that, no more than seven business days after
the date of such award, it shall provide without cost to the Purchaser up to 25 copies of the Final Official
Statement. The City designates the Purchaser as its agent for purposes of distributing copies of the Final
Official Statement to each syndicate member, if applicable. The Purchaser 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
its syndicate members for purposes of assuring the receipt of the Final Official Statement by each such
syndicate member.
Dated July 17, 2017 BY ORDER OF THE CITY COUNCIL
/s/ Charlene Friedges
City Clerk
A - 1
EXHIBIT A
ISSUE PRICE CERTIFICATE –COMPETITIVE SALES WITH FEWER THAN THREE BIDS FROM
ESTABLISHED UNDERWRITERS
$[PRINCIPAL AMOUNT]
[BOND CAPTION]
ISSUE PRICE CERTIFICATE
The undersigned, on behalf of [NAME OF UNDERWRITER/REPRESENTATIVE] ( [“[SHORT
NAME OF UNDERWRITER]”)][the “Representative”)][, on behalf of itself and [NAMES OF OTHER
UNDERWRITERS] (together, the “Underwriting Group”),] hereby certifies as set forth below with respect
to the sale of the obligations named above (the “Bonds”).
1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity
of the General Rule Maturities, the first price at which at least 10% of such Maturity was sold to the Public
is the respective price listed in Schedule A.
2. Initial Offering Price of the Hold-the-Offering-Price Maturities.
(a) [SHORT NAME OF UNDERWRITER][The Underwriting Group] offered the Hold-the-
Offering-Price Maturities to the Public for purchase at the specified initial offering prices listed in Schedule
B (the “Initial Offering Prices”) on or before the Sale Date. If there is a Hold-the-Offering-Price Maturity,
a copy of the pricing wire for the Bonds is attached to this certificate as Schedule C.
(b) As set forth in the [Bond Purchase Agreement][Notice of Sale and bid award], [SHORT
NAME OF UNDERWRITER][each member of the Underwriting Group] has agreed in writing that, (i) for
each Maturity of the Hold-the-Offering-Price Maturities it would neither offer nor sell any of the Bonds of
such Maturity to any person at a price that is higher than the Initial Offering Price for such Maturity during
the Holding Period for such Maturity (the “Hold-the-Offering-Price Rule”), and (ii) any selling group
agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail
distribution agreement shall contain the agreement of each broker-dealer who is a party to the retail
distribution agreement, to comply with the Hold-the-Offering-Price Rule. Based on its own knowledge
and, in the case of sales by other Underwriters, representations obtained from the other Underwriters, no
Underwriter has offered or sold any Maturity of the Hold-the-Offering-Price Maturities at a price that is
higher than the respective Initial Offering Price for that Maturity of the Bonds during the Holding Period.
3. Defined Terms.
(a) General Rule Maturities means those Maturities of the Bonds, if any, listed in Schedule A
hereto as the “General Rule Maturities.” If any Maturity is both a General Rule Maturity and a Hold-the-
Offering-Price Maturity, it is listed on both Schedule A and Schedule B.
(b) Hold-the-Offering-Price Maturities means those Maturities of the Bonds, if any, listed in
Schedule A hereto as the “Hold-the-Offering-Price Maturities.” If any Maturity is both a General Rule
Maturity and a Hold-the-Offering-Price Maturity, it is listed on both Schedule A and Schedule B.
A - 2
(c) Holding Period means, with respect to a Hold-the-Offering-Price Maturity, the period
starting on the Sale Date and ending on the earlier of (i) the close of the fifth business day after the Sale
Date ([DATE]), or (ii) the date on which [SHORT NAME OF UNDERWRITER][the Underwriters]
[has][have] sold at least 10% of such Hold-the-Offering-Price Maturity to the Public at one or more prices,
each of which is no higher than the Initial Offering Price for such Maturity.
(d) Issuer means [DESCRIBE ISSUER].
(e) Maturity means Bonds with the same credit and payment terms. Bonds with different
maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as
separate Maturities.
(f) Public means any person (i.e., an individual, trust, estate, partnership, association,
company, or corporation) other than an Underwriter or a related party to an Underwriter. Persons generally
are “related parties” for purposes of this certificate if they have more than 50 percent common ownership
or control, directly or indirectly.
(g) Sale Date means the first day on which there is a binding contract in writing for the sale of
the respective Maturity of the Bonds. The Sale Date of each Maturity of the Bonds is [DATE].
(h) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer
(or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds
to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a
person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public
(including a member of a selling group or a party to a retail distribution agreement participating in the initial
sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in this
certificate represents [NAME OF UNDEWRITING FIRM][the Representative’s] interpretation of any
laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and
the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be
relied upon by the Issuer[ and the Borrower] with respect to certain of the representations set forth in the
[Tax Certificate][Tax Exemption Agreement] and with respect to compliance with the federal income tax
rules affecting the Bonds, and by [BOND COUNSEL] in connection with rendering its opinion that the
interest on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the
Internal Revenue Service Form 8038[-G][-GC][-TC], and other federal income tax advice that it may give
to the Issuer [ and the Borrower] from time to time relating to the Bonds.
[UNDERWRITER][REPRESENTATIVE]
By:___________________________________
____
Name:________________________________
_____
Dated: [ISSUE DATE]
A - 3
SCHEDULE A
SALE PRICES OF THE GENERAL RULE MATURITIES
(Attached)
A - 4
SCHEDULE B
INITIAL OFFERING PRICES OF THE HOLD-THE-OFFERING-PRICE MATURITIES
(Attached)
A - 5
SCHEDULE C
PRICING WIRE
(Attached)
B - 1
EXHIBIT B
ISSUE PRICE CERTIFICATE FOR COMPETITIVE SALES WITH AT LEAST THREE BIDS FROM
ESTABLISHED UNDERWRITERS
$[PRINCIPAL AMOUNT]
[BOND CAPTION]
ISSUE PRICE CERTIFICATE
The undersigned, on behalf of [NAME OF UNDERWRITER] (“[SHORT NAME OF
UNDERWRITER]”), hereby certifies as set forth below with respect to the sale of the obligations named
above (the “Bonds”).
1. Reasonably Expected Initial Offering Price.
(a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the
Public by [SHORT NAME OF UNDERWRITER] are the prices listed in Schedule A (the “Expected
Offering Prices”). The Expected Offering Prices are the prices for the Maturities of the Bonds used by
[SHORT NAME OF UNDERWRITER] in formulating its bid to purchase the Bonds. Attached as Schedule
B is a true and correct copy of the bid provided by [SHORT NAME OF UNDERWRITER] to purchase the
Bonds.
(b) [SHORT NAME OF UNDERWRITER] was not given the opportunity to review other bids
prior to submitting its bid.
(c) The bid submitted by [SHORT NAME OF UNDERWRITER] constituted a firm offer to
purchase the Bonds.
2. Defined Terms.
(a) Maturity means Bonds with the same credit and payment terms. Bonds with different
maturity dates, or Bonds with the same maturity date but different stated interest rates, are treated as
separate Maturities.
(b) Public means any person (i.e., an individual, trust, estate, partnership, association,
company, or corporation) other than an Underwriter or a related party to an Underwriter. Persons generally
are “related parties” for purposes of this certificate if they have more than 50 percent common ownership
or control, directly or indirectly.
(c) Sale Date means the first day on which there is a binding contract in writing for the sale of
the respective Maturity of the Bonds. The Sale Date of each Maturity of the Bonds is [DATE].
(d) Underwriter means (i) any person that agrees pursuant to a written contract with the Issuer
(or with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds
to the Public, and (ii) any person that agrees pursuant to a written contract directly or indirectly with a
person described in clause (i) of this paragraph to participate in the initial sale of the Bonds to the Public
(including a member of a selling group or a party to a retail distribution agreement participating in the initial
sale of the Bonds to the Public).
B - 2
The representations set forth in this certificate are limited to factual matters only. Nothing in this
certificate represents [SHORT NAME OF UNDERWRITER]’s interpretation of any laws, including
specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended, and the Treasury
Regulations thereunder. The undersigned understands that the foregoing information will be relied upon
by the Issuer[ and the Borrower] with respect to certain of the representations set forth in the [Tax
Certificate][Tax Exemption Agreement] and with respect to compliance with the federal income tax rules
affecting the Bonds, and by [BOND COUNSEL] in connection with rendering its opinion that the interest
on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal
Revenue Service Form 8038[-G][-GC][-TC], and other federal income tax advice that it may give to the
Issuer [ and the Borrower] from time to time relating to the Bonds.
[UNDERWRITER]
By:___________________________________
____
Name:________________________________
_____
Dated: [ISSUE DATE]
B - 3
SCHEDULE A
EXPECTED OFFERING PRICES
(Attached)
B - 4
SCHEDULE B
COPY OF UNDERWRITER’S BID
(Attached)
Page 7
City of Lakeville, Minnesota
Recommendations for Issuance of Bonds
$11,535,000 General Obligation Bonds, Series 2017A
The City Council has under consideration the issuance of bonds to (i) finance street and utility improvement projects
in the City (the “New Money Portion”) and (ii) refund an outstanding general obligation bond (the “Refunding
Portion”). 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.
July 17, 2017 City Council sets sale date and terms
Week of July 24, 2017 Rating conference is conducted
On or about August 3, 2017 Receipt of rating
August 7, 2017, 10:00 AM Competitive proposals are received
August 7, 2017, 7:00 PM City Council considers award of bonds
On or about September 7, 2017 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.
Study No.: 0483.150 July 13, 2017
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. Since the proceeds of the Bonds are being used for two discreet purposes, each
purpose will be treated independently under the arbitrage rules.
The current expectations related to the Bond are as follows:
• The New Money Portion – the City expects to meet the 18-month spending
exception.
• The Refunding Portion – the City expects to meet the 6-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 have entered into an Agreement for Municipal Advisor Services,
under which Springsted will provide arbitrage and continuing disclosure compliance services
for the City.
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.
Principal payments have been structured around projected future assessment collections. If
actual assessment collections are different than projected (lower annual collections due to
delinquencies or prepayments), the levy requirements will differ from what is shown in these
Recommendations.
Page 3
SCHEDULES
ATTACHED:
In addition to schedules specific to each individual portion of the Bonds, we have attached
certain schedules that apply to the Bonds as a whole. Those schedules include the
following:
• Sources and Uses of Funds
• Estimated Pricing Summary
• Aggregate Debt Service and Principal Maturities by project and source of payment
• Issue Summary Net Debt Service
• Aggregate Assessment Income
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.
Par Bidding: The Bonds are being offered requiring a minimum bid of par. This requires the
underwriter to price the Bonds with premium coupons sufficient to generate an issue price
adequate to fund their underwriting compensation. In the current interest rate environment
we expect that the Bonds, given their size and term, would price with premium coupons in
any event.
Prepayment Provisions: Bonds maturing on or after February 1, 2027 may be prepaid at a
price of par plus accrued interest on or after February 1, 2026.
Bank Qualification: The City expects to issue more than $10 million in tax-exempt
obligations in the current calendar year; therefore the Bonds are not designated as bank
qualified.
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.
The New Money Portion
Description of Portion
PURPOSE: Proceeds of the New Money Portion of the Bonds will be used to finance (i) various street,
water and sanitary sewer improvement projects related to street reconstruction projects; (ii)
street, storm sewer, signage and street light improvements for Holyoke Avenue; and (iii)
infrastructure improvements for Launch Park First Addition development project, including
construction of 222nd Street, storm sewer and sanitary sewer improvements and watermain
extension.
Page 4
The table below describes the various projects, their statutory authority and sources of
payment.
STATUTORY
REQUIREMENTS:
Chapter 429: At least 20% of the City’s share of projected costs of the project must be paid
from special assessments. Each of the projects being financed under this statute meets that
requirement.
Chapter 444: The Street Reconstruction Water purpose is being financed under Chapter 444
which authorizes utility supported debt. The City currently has one other outstanding bond
issue payable from water utility revenues, its General Obligation Water Utility Revenue Bonds,
Series 2016A. In the resolution authorizing the sale of the Bonds, the City will covenant to
charge water fees, charges and/or rates sufficient to pay operations and debt service on the
respective Bonds and any additional water utility debt issued by the City in the future.
SECURITY AND
SOURCE OF
PAYMENT:
The New Money Portion of the Bonds will be general obligations of the City, secured by its full
faith and credit and taxing power. The Bonds will be paid from a combination of property
taxes, special assessments against benefited properties, net revenues of the Water Fund and
net revenues of the Street Light Fund.
The table below shows the special assessment terms for each of the projects. All special
assessments will be levied in 2017 for collection beginning in 2018. Interest will be charged on
the outstanding balance at the rate of 5% for all projects.
Purpose Assessed Amount Term Structure
Street Reconstruction
Assessment $2,341,166 20 Years
Equal principal
Holyoke Ave. Improvement
Assessment 507,656 10 Years
Equal principal
Launch Park Assessment 1,175,000 10 Years Level payments
Each year’s collection of Water Fund and Street Light Fund revenues, assessments and taxes
will be used to pay, for their respective purposes, the interest to come due on August 1 in the
year of collection and the principal and interest due the following February 1. The City will
make it’s first levy for the New Money Portion of the Bonds in 2017 for collection beginning in
2018. The City does not expect to levy for the purposes to which the Water and Street Light
Funds are pledged.
Project Statutory Authority Source of Payment
Street Reconstruction Levy MN Statutes Ch. 429, 475 Tax levy
Street Reconstruction Assessment MN Statutes Ch. 429, 475 Special assessments
Street Reconstruction Water MN Statutes Ch. 444, 475 Water Fund Revenues
Holyoke Ave. Improvement Levy MN Statutes Ch. 429, 475 Tax levy
Holyoke Ave. Improvement Assessment MN Statutes Ch. 429, 475 Special assessments
Holyoke Ave. Improvement Light Fund MN Statutes Ch. 429, 475 Street Light Fund Revenues
Launch Park Assessment MN Statutes Ch. 429, 475 Special assessments
Page 5
STRUCTURING
SUMMARY:
In consultation with the City, the New Money Portion of the Bonds has been structured with
seven individual purposes according to the related project and their source of payment and
with repayment terms as listed in the table below.
Project Repayment Term Principal Structure
Street Reconstruction Levy 10 Years Level payment
Street Reconstruction Assessment 20 Years Even levy/surplus
Street Reconstruction Water 10 Years Level payment
Holyoke Ave. Improvement Levy 10 Years Level payment
Holyoke Ave. Improvement Assessment 10 Years Even levy/surplus
Holyoke Ave. Improvement Light Fund 8 Years Level payment
Launch Park Assessment 10 Years Even levy/surplus
In the likely event the City receives a surplus premium bid for the Bonds, the City will decide at
the time of sale whether to keep any surplus bid premium and how much for each purpose.
SCHEDULES
ATTACHED:
For each of the project purposes we have attached schedules showing estimated debt service
requirements, given the current interest rate environment, and, where applicable, assessment
income.
The Refunding Portion
Description of Portion
PURPOSE: The proceeds of the Refunding Portion will be used to advance refund the February 1, 2019
through 2028 maturities of the City’s General Obligation Street Reconstruction Bonds, Series
2007H, dated December 15, 2007 (the “Prior Bonds”). The February 1, 2018 maturity is not
callable and will not be refunded. The maturities to be refunded are outstanding in the
aggregate principal amount of $1,740,000. The transaction is being undertaken to achieve
interest cost savings.
The Prior Bonds were originially issued to finance various street reconstruction projects
within the City.
AUTHORITY: Statutory Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapter
475.
Statutory Requirements: For advance refunding issues, a statutory test exists in Minnesota
which establishes a minimum present value interest cost savings of 3% of the present value
of refunded debt service. Based on current interest rates, the present estimate of the
refunding savings is 8%.
SECURITY AND
SOURCE OF
PAYMENT:
The Refunding Portion of the Bonds will be a general obligation of the City, secured by its ful l
faith and credit and taxing power. The Refunding Portion will be paid entirely from ad
valorem property taxes.
Page 6
The issuance of the Refunding Portion of the Bonds is being conducted as an advance
refunding in which the proceeds of the Refunding Portion of the Bonds are placed in an
escrow account with a major bank and invested in government securities. These investments
and their earnings are structured to prepay the principal due February 1, 2019 through 2028
of the Prior Bonds on their call date of February 1, 2018. The City will continue to pay the
originally scheduled debt service payments on the Prior Bonds through the February 1, 2018
call date. After the call date, the City will begin making debt service payments on the
Refunding Portion of the Bonds, taking advantage of the lower interest rates.
The City will make its first levy for the Refunding Portion of the Bonds in 2017 for collection in
2018. Each year’s collection of 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.
STRUCTURING
SUMMARY:
In consultation with the City, the Refunding Portion of the Bonds was structured to provide
approximately level annual savings over a term matching the remaining term of the Prior
Bonds.
Based on current interest rates, this refunding is projected to result in average annual
savings of $17,269 resulting in total future value savings of approximately $174,636, with a
net present value of $152,697. These saving are after payment of all expenses related to the
transaction.
SCHEDULES
ATTACHED:
Schedules attached include estimated debt service requirements and interest cost savings,
given the current interest rate environment.
FEDERAL
CONSIDERATIONS
AND/OR
REQUIREMENTS:
The Refunding Portion of the Bonds is being conducted as an advance refunding under
federal tax law and may not themselves be refunded using tax exempt bonds. Tax exempt
advance refunding transactions have more restrictive federal arbitrage limitations than
current refunding issues as they pertain to the escrow account. Coincident with the sale of
the Bonds, a verification agent will be retained to confirm that the refunding escrow is in
compliance with federal yield restrictions and will also verify the adequacy of the escrow to
satisfy its cash flow requirements.
Page 7
$11,535,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Issue Summary
Total Issue Sources And Uses
Dated 09/07/2017 | Delivered 09/07/2017
New Money Portion
Refunding
Portion
Street
Reconstruction
Levy
Street
Reconstruction
Assessment
Street
Reconstruction
Water
Holyoke Ave.
Improvement
Levy
Holyoke Ave.
Improvement
Assessment
Holyoke Ave.
Improvement
Light Fund
Launch Park
Assessment
Refund
Series 2007H
Issue
Summary
Sources Of Funds
Par Amount of Bonds.....................................................................................................................................................................................$3,275,000.00 $2,280,000.00 $955,000.00 $1,235,000.00 $485,000.00 $395,000.00 $1,160,000.00 $1,750,000.00 $11,535,000.00
Grants, etc.............................................................................................................................................................................................---531,367.00 145,000.00 27,607.00 --703,974.00
Planned Issuer Equity contribution......................................................................................................................................................................50,000.00 -----218,643.00 -268,643.00
Sanitary Sewer Fund.....................................................................................................................................................................................--246,486.00 -----246,486.00
Reoffering Premium......................................................................................................................................................................................42,148.75 17,211.80 12,322.55 15,871.65 6,608.85 6,484.90 15,024.05 22,547.10 138,219.65
Total Sources...........................................................................................................................................................................................$3,367,148.75 $2,297,211.80 $1,213,808.55 $1,782,238.65 $636,608.85 $429,091.90 $1,393,667.05 $1,772,547.10 $12,892,322.65
Uses Of Funds
Deposit to Project Construction Fund....................................................................................................................................................................3,299,607.00 2,256,022.00 -1,226,229.00 484,289.00 391,225.00 1,373,673.00 -9,031,045.00
Deposit to Refunding Escrow Fund........................................................................................................................................................................-------1,732,464.50 1,732,464.50
Water Improvements......................................................................................................................................................................................--946,489.00 -----946,489.00
Paid from Grants, Other.................................................................................................................................................................................---531,367.00 145,000.00 27,607.00 --703,974.00
Sewer Improvements......................................................................................................................................................................................--246,486.00 -----246,486.00
Total Underwriter's Discount (1.200%)..................................................................................................................................................................39,300.00 27,360.00 11,460.00 14,820.00 5,820.00 4,740.00 13,920.00 21,000.00 138,420.00
Costs of Issuance.......................................................................................................................................................................................24,122.84 16,793.93 7,034.29 9,096.73 3,572.40 2,909.47 8,544.27 17,140.07 89,214.00
Rounding Amount.........................................................................................................................................................................................4,118.91 (2,964.13)2,339.26 725.92 (2,072.55)2,610.43 (2,470.22)1,942.53 4,230.15
Total Uses..............................................................................................................................................................................................$3,367,148.75 $2,297,211.80 $1,213,808.55 $1,782,238.65 $636,608.85 $429,091.90 $1,393,667.05 $1,772,547.10 $12,892,322.65
2017A GO Bonds w. Ref | Issue Summary | 7/11/2017 | 8:28 AM
Page 8
$11,535,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Issue Summary
Pricing Summary
Maturity Type of Bond Coupon Yield Maturity Value Price Dollar Price
02/01/2019 Serial Coupon 1.750%1.250%900,000.00 100.691%906,219.00
02/01/2020 Serial Coupon 2.250%1.350%1,025,000.00 102.117%1,046,699.25
02/01/2021 Serial Coupon 2.250%1.500%1,025,000.00 102.476%1,050,379.00
02/01/2022 Serial Coupon 2.250%1.700%1,050,000.00 102.321%1,074,370.50
02/01/2023 Serial Coupon 2.250%1.850%1,065,000.00 102.045%1,086,779.25
02/01/2024 Serial Coupon 2.250%2.000%1,075,000.00 101.493%1,091,049.75
02/01/2025 Serial Coupon 2.500%2.250%1,095,000.00 101.694%1,113,549.30
02/01/2026 Serial Coupon 2.500%2.450%1,110,000.00 100.376%1,114,173.60
02/01/2027 Serial Coupon 2.550%2.550%1,075,000.00 100.000%1,075,000.00
02/01/2028 Serial Coupon 2.750%2.750%1,090,000.00 100.000%1,090,000.00
02/01/2029 Serial Coupon 2.850%2.850%115,000.00 100.000%115,000.00
02/01/2030 Serial Coupon 3.050%3.050%110,000.00 100.000%110,000.00
02/01/2031 Serial Coupon 3.250%3.250%110,000.00 100.000%110,000.00
02/01/2032 Serial Coupon 3.300%3.300%105,000.00 100.000%105,000.00
02/01/2033 Serial Coupon 3.350%3.350%105,000.00 100.000%105,000.00
02/01/2034 Serial Coupon 3.400%3.400%100,000.00 100.000%100,000.00
02/01/2035 Serial Coupon 3.450%3.450%100,000.00 100.000%100,000.00
02/01/2036 Serial Coupon 3.500%3.500%95,000.00 100.000%95,000.00
02/01/2037 Serial Coupon 3.550%3.550%95,000.00 100.000%95,000.00
02/01/2038 Serial Coupon 3.600%3.600%90,000.00 100.000%90,000.00
Total ---$11,535,000.00 -$11,673,219.65
Bid Information
Par Amount of Bonds.....................................................................................................................................................................................$11,535,000.00
Reoffering Premium or (Discount)........................................................................................................................................................................138,219.65
Gross Production........................................................................................................................................................................................$11,673,219.65
Total Underwriter's Discount (1.200%)..................................................................................................................................................................$(138,420.00)
Bid (99.998%)...........................................................................................................................................................................................11,534,799.65
Total Purchase Price....................................................................................................................................................................................$11,534,799.65
Bond Year Dollars.......................................................................................................................................................................................$79,409.00
Average Life............................................................................................................................................................................................6.884 Years
Average Coupon..........................................................................................................................................................................................2.6300306%
Net Interest Cost (NIC).................................................................................................................................................................................2.6302829%
True Interest Cost (TIC)................................................................................................................................................................................2.6069625%
2017A GO Bonds w. Ref | Issue Summary | 7/11/2017 | 8:28 AM
Page 9
$11,535,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Issue Summary
Aggregate Debt Service
DATE Street
Reconstruction
Levy
Street
Reconstruction
Assessment
Street
Reconstruction
Water
Holyoke Ave.
Improvement
Levy
Holyoke Ave.
Improvement
Assessment
Holyoke Ave.
Improvement
Light Fund
Launch Park
Assessment
Refund
Series 2007H
TOTAL
02/01/2019 377,733.50 203,462.50 111,398.50 140,659.50 65,746.50 57,495.00 133,132.50 202,568.00 1,292,196.00
02/01/2020 377,227.50 201,175.00 111,027.50 142,292.50 65,372.50 53,137.50 135,575.00 203,582.50 1,289,390.00
02/01/2021 375,365.00 193,025.00 109,002.50 139,705.00 59,135.00 57,125.00 133,100.00 199,870.00 1,266,327.50
02/01/2022 378,390.00 184,987.50 111,977.50 142,117.50 58,010.00 56,000.00 135,625.00 201,157.50 1,268,265.00
02/01/2023 376,190.00 182,062.50 109,840.00 144,417.50 56,885.00 54,875.00 133,037.50 202,332.50 1,259,640.00
02/01/2024 378,877.50 174,137.50 107,702.50 141,605.00 55,760.00 53,750.00 135,450.00 198,395.00 1,245,677.50
02/01/2025 376,340.00 171,325.00 110,565.00 143,792.50 49,635.00 52,625.00 132,750.00 204,457.50 1,241,490.00
02/01/2026 377,840.00 163,200.00 108,065.00 140,542.50 48,510.00 56,375.00 134,750.00 199,832.50 1,229,115.00
02/01/2027 374,090.00 160,200.00 110,565.00 142,292.50 47,385.00 -131,625.00 200,207.50 1,166,365.00
02/01/2028 375,037.50 152,140.00 107,887.50 143,850.00 46,237.50 -128,437.50 200,362.50 1,153,952.50
02/01/2029 -148,977.50 ------148,977.50
02/01/2030 -140,700.00 ------140,700.00
02/01/2031 -137,345.00 ------137,345.00
02/01/2032 -128,770.00 ------128,770.00
02/01/2033 -125,305.00 ------125,305.00
02/01/2034 -116,787.50 ------116,787.50
02/01/2035 -113,387.50 ------113,387.50
02/01/2036 -104,937.50 ------104,937.50
02/01/2037 -101,612.50 ------101,612.50
02/01/2038 -93,240.00 ------93,240.00
Total $3,767,091.00 $2,996,777.50 $1,098,031.00 $1,421,274.50 $552,676.50 $441,382.50 $1,333,482.50 $2,012,765.50 $13,623,481.00
Par Amounts Of Selected Issues
20-Street Reconstruction Levy...........................................................................................................................................................................3,275,000.00
-Street Reconstruction Assessm..........................................................................................................................................................................2,280,000.00
2-Street Reconstruction Water...........................................................................................................................................................................955,000.00
-Holyoke Ave. Improvement Levy..........................................................................................................................................................................1,235,000.00
-Holyoke Ave. Improvement Asse..........................................................................................................................................................................485,000.00
-Holyoke Ave. Improvement Ligh..........................................................................................................................................................................395,000.00
2017A -Launch Park Assessment...........................................................................................................................................................................1,160,000.00
2017A GO -Refund Series 2007H...........................................................................................................................................................................1,750,000.00
TOTAL...................................................................................................................................................................................................11,535,000.00
Aggregate | 7/11/2017 | 8:28 AM
Page 10
$11,535,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Issue Summary
Aggregate Principal Payments
DATE Street
Reconstruction
Levy
Street
Reconstruction
Assessment
Street
Reconstruction
Water
Holyoke Ave.
Improvement
Levy
Holyoke Ave.
Improvement
Assessment
Holyoke Ave.
Improvement
Light Fund
Launch Park
Assessment
Refund
Series 2007H
TOTAL
02/01/2019 270,000.00 115,000.00 80,000.00 100,000.00 50,000.00 45,000.00 95,000.00 145,000.00 900,000.00
02/01/2020 305,000.00 140,000.00 90,000.00 115,000.00 55,000.00 45,000.00 110,000.00 165,000.00 1,025,000.00
02/01/2021 310,000.00 135,000.00 90,000.00 115,000.00 50,000.00 50,000.00 110,000.00 165,000.00 1,025,000.00
02/01/2022 320,000.00 130,000.00 95,000.00 120,000.00 50,000.00 50,000.00 115,000.00 170,000.00 1,050,000.00
02/01/2023 325,000.00 130,000.00 95,000.00 125,000.00 50,000.00 50,000.00 115,000.00 175,000.00 1,065,000.00
02/01/2024 335,000.00 125,000.00 95,000.00 125,000.00 50,000.00 50,000.00 120,000.00 175,000.00 1,075,000.00
02/01/2025 340,000.00 125,000.00 100,000.00 130,000.00 45,000.00 50,000.00 120,000.00 185,000.00 1,095,000.00
02/01/2026 350,000.00 120,000.00 100,000.00 130,000.00 45,000.00 55,000.00 125,000.00 185,000.00 1,110,000.00
02/01/2027 355,000.00 120,000.00 105,000.00 135,000.00 45,000.00 -125,000.00 190,000.00 1,075,000.00
02/01/2028 365,000.00 115,000.00 105,000.00 140,000.00 45,000.00 -125,000.00 195,000.00 1,090,000.00
02/01/2029 -115,000.00 ------115,000.00
02/01/2030 -110,000.00 ------110,000.00
02/01/2031 -110,000.00 ------110,000.00
02/01/2032 -105,000.00 ------105,000.00
02/01/2033 -105,000.00 ------105,000.00
02/01/2034 -100,000.00 ------100,000.00
02/01/2035 -100,000.00 ------100,000.00
02/01/2036 -95,000.00 ------95,000.00
02/01/2037 -95,000.00 ------95,000.00
02/01/2038 -90,000.00 ------90,000.00
Total $3,275,000.00 $2,280,000.00 $955,000.00 $1,235,000.00 $485,000.00 $395,000.00 $1,160,000.00 $1,750,000.00 $11,535,000.00
Par Amounts Of Selected Issues
20-Street Reconstruction Levy...........................................................................................................................................................................3,275,000.00
-Street Reconstruction Assessm..........................................................................................................................................................................2,280,000.00
2-Street Reconstruction Water...........................................................................................................................................................................955,000.00
-Holyoke Ave. Improvement Levy..........................................................................................................................................................................1,235,000.00
-Holyoke Ave. Improvement Asse..........................................................................................................................................................................485,000.00
-Holyoke Ave. Improvement Ligh..........................................................................................................................................................................395,000.00
2017A -Launch Park Assessment...........................................................................................................................................................................1,160,000.00
2017A GO -Refund Series 2007H...........................................................................................................................................................................1,750,000.00
TOTAL...................................................................................................................................................................................................11,535,000.00
Aggregate | 7/11/2017 | 8:28 AM
Page 11
$4,023,822
City of Lakeville, Minnesota
General Obligation Bonds
2017A Assessments - Issue Summary
Aggregate Assessment Income
DATE Street
Assessment
s
Holyoke Ave.
Assessment
s
Launch Park
Assessment
s
TOTAL
12/31/2018 234,116.60 76,148.40 152,167.87 462,432.87
12/31/2019 228,263.68 73,610.12 152,167.87 454,041.67
12/31/2020 222,410.78 71,071.84 152,167.87 445,650.49
12/31/2021 216,557.86 68,533.56 152,167.87 437,259.29
12/31/2022 210,704.94 65,995.28 152,167.87 428,868.09
12/31/2023 204,852.02 63,457.00 152,167.87 420,476.89
12/31/2024 198,999.12 60,918.72 152,167.87 412,085.71
12/31/2025 193,146.20 58,380.44 152,167.87 403,694.51
12/31/2026 187,293.28 55,842.16 152,167.87 395,303.31
12/31/2027 181,440.36 53,303.88 152,167.87 386,912.11
12/31/2028 175,587.46 --175,587.46
12/31/2029 169,734.54 --169,734.54
12/31/2030 163,881.62 --163,881.62
12/31/2031 158,028.70 --158,028.70
12/31/2032 152,175.80 --152,175.80
12/31/2033 146,322.88 --146,322.88
12/31/2034 140,469.96 --140,469.96
12/31/2035 134,617.04 --134,617.04
12/31/2036 128,764.14 --128,764.14
12/31/2037 122,911.22 --122,911.22
Total $3,570,278.20 $647,261.40 $1,521,678.70 $5,739,218.30
Par Amounts Of Selected Issues
2017A Asse-Street Assessments...........................................................................................................................................................................2,341,166.00
2017-Holyoke Ave. Assessments...........................................................................................................................................................................507,656.00
2017A-Launch Park Assessments...........................................................................................................................................................................1,175,000.00
TOTAL...................................................................................................................................................................................................4,023,822.00
Aggregate | 7/11/2017 | 8:24 AM
Page 12
$11,535,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Issue Summary
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I PCF Existing D/S Net New D/S 105% of Total Assessment Water Fund
Revenue
Street Light
Fund Revenue
Levy
Required
02/01/2018 ----(1,740,000.00)1,920,122.50 180,122.50 189,128.63 ---189,128.63
02/01/2019 900,000.00 1.750%392,196.00 1,292,196.00 --1,292,196.00 1,356,805.80 462,432.87 116,968.43 60,369.75 717,034.76
02/01/2020 1,025,000.00 2.250%264,390.00 1,289,390.00 --1,289,390.00 1,353,859.50 454,041.67 116,578.88 55,794.38 727,444.58
02/01/2021 1,025,000.00 2.250%241,327.50 1,266,327.50 --1,266,327.50 1,329,643.88 445,650.49 114,452.63 59,981.25 709,559.51
02/01/2022 1,050,000.00 2.250%218,265.00 1,268,265.00 --1,268,265.00 1,331,678.25 437,259.29 117,576.38 58,800.00 718,042.59
02/01/2023 1,065,000.00 2.250%194,640.00 1,259,640.00 --1,259,640.00 1,322,622.00 428,868.09 115,332.00 57,618.75 720,803.16
02/01/2024 1,075,000.00 2.250%170,677.50 1,245,677.50 --1,245,677.50 1,307,961.38 420,476.89 113,087.63 56,437.50 717,959.36
02/01/2025 1,095,000.00 2.500%146,490.00 1,241,490.00 --1,241,490.00 1,303,564.50 412,085.71 116,093.25 55,256.25 720,129.29
02/01/2026 1,110,000.00 2.500%119,115.00 1,229,115.00 --1,229,115.00 1,290,570.75 403,694.51 113,468.25 59,193.75 714,214.24
02/01/2027 1,075,000.00 2.550%91,365.00 1,166,365.00 --1,166,365.00 1,224,683.25 395,303.31 116,093.25 -713,286.69
02/01/2028 1,090,000.00 2.750%63,952.50 1,153,952.50 --1,153,952.50 1,211,650.13 386,912.11 113,281.88 -711,456.14
02/01/2029 115,000.00 2.850%33,977.50 148,977.50 --148,977.50 156,426.38 175,587.46 --(19,161.09)
02/01/2030 110,000.00 3.050%30,700.00 140,700.00 --140,700.00 147,735.00 169,734.54 --(21,999.54)
02/01/2031 110,000.00 3.250%27,345.00 137,345.00 --137,345.00 144,212.25 163,881.62 --(19,669.37)
02/01/2032 105,000.00 3.300%23,770.00 128,770.00 --128,770.00 135,208.50 158,028.70 --(22,820.20)
02/01/2033 105,000.00 3.350%20,305.00 125,305.00 --125,305.00 131,570.25 152,175.80 --(20,605.55)
02/01/2034 100,000.00 3.400%16,787.50 116,787.50 --116,787.50 122,626.88 146,322.88 --(23,696.00)
02/01/2035 100,000.00 3.450%13,387.50 113,387.50 --113,387.50 119,056.88 140,469.96 --(21,413.09)
02/01/2036 95,000.00 3.500%9,937.50 104,937.50 --104,937.50 110,184.38 134,617.04 --(24,432.67)
02/01/2037 95,000.00 3.550%6,612.50 101,612.50 --101,612.50 106,693.13 128,764.14 --(22,071.01)
02/01/2038 90,000.00 3.600%3,240.00 93,240.00 --93,240.00 97,902.00 122,911.22 --(25,009.22)
Total $11,535,000.00 -$2,088,481.00 $13,623,481.00 (1,740,000.00)$1,920,122.50 $13,803,603.50 $14,493,783.68 $5,739,218.30 $1,152,932.55 $463,451.63 $7,138,181.20
Dated...................................................................................................................................................................................................9/07/2017
Delivery Date...........................................................................................................................................................................................9/07/2017
First Coupon Date.......................................................................................................................................................................................8/01/2018
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$79,409.00
Average Life............................................................................................................................................................................................6.884 Years
Average Coupon..........................................................................................................................................................................................2.6300306%
Net Interest Cost (NIC).................................................................................................................................................................................2.6302829%
True Interest Cost (TIC)................................................................................................................................................................................2.6069625%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4135976%
All Inclusive Cost (AIC)................................................................................................................................................................................2.7333829%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................2.4361228%
Weighted Average Maturity...............................................................................................................................................................................6.858 Years
2017A GO Bonds w. Ref | Issue Summary | 7/11/2017 | 8:28 AM
Page 13
$3,275,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Street Reconstruction Levy
DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I 105% Levy
02/01/2018 -----
02/01/2019 270,000.00 1.750%107,733.50 377,733.50 396,620.18
02/01/2020 305,000.00 2.250%72,227.50 377,227.50 396,088.88
02/01/2021 310,000.00 2.250%65,365.00 375,365.00 394,133.25
02/01/2022 320,000.00 2.250%58,390.00 378,390.00 397,309.50
02/01/2023 325,000.00 2.250%51,190.00 376,190.00 394,999.50
02/01/2024 335,000.00 2.250%43,877.50 378,877.50 397,821.38
02/01/2025 340,000.00 2.500%36,340.00 376,340.00 395,157.00
02/01/2026 350,000.00 2.500%27,840.00 377,840.00 396,732.00
02/01/2027 355,000.00 2.550%19,090.00 374,090.00 392,794.50
02/01/2028 365,000.00 2.750%10,037.50 375,037.50 393,789.38
Total $3,275,000.00 -$492,091.00 $3,767,091.00 $3,955,445.55
SIGNIFICANT DATES
Dated...................................................................................................................................................................................................9/07/2017
Delivery Date...........................................................................................................................................................................................9/07/2017
First Coupon Date.......................................................................................................................................................................................8/01/2018
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$20,060.00
Average Life............................................................................................................................................................................................6.125 Years
Average Coupon..........................................................................................................................................................................................2.4530957%
Net Interest Cost (NIC).................................................................................................................................................................................2.4388946%
True Interest Cost (TIC)................................................................................................................................................................................2.4301716%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4135976%
All Inclusive Cost (AIC)................................................................................................................................................................................2.5624748%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................2.2210091%
Weighted Average Maturity...............................................................................................................................................................................6.107 Years
Interest rates are estimates. Changes in rates may
cause significant alterations to this schedule.
The actual underwriter's discount bid may also vary.
2017A GO Bonds w. Ref | Street Reconstruction Lev | 7/11/2017 | 8:28 AM
Page 14
$2,280,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Street Reconstruction Assessment
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I Net New D/S 105% of Total Assessment Surplus
02/01/2018 --------
02/01/2019 115,000.00 1.750%88,462.50 203,462.50 203,462.50 213,635.63 234,116.60 20,480.98
02/01/2020 140,000.00 2.250%61,175.00 201,175.00 201,175.00 211,233.75 228,263.68 17,029.93
02/01/2021 135,000.00 2.250%58,025.00 193,025.00 193,025.00 202,676.25 222,410.78 19,734.53
02/01/2022 130,000.00 2.250%54,987.50 184,987.50 184,987.50 194,236.88 216,557.86 22,320.99
02/01/2023 130,000.00 2.250%52,062.50 182,062.50 182,062.50 191,165.63 210,704.94 19,539.32
02/01/2024 125,000.00 2.250%49,137.50 174,137.50 174,137.50 182,844.38 204,852.02 22,007.65
02/01/2025 125,000.00 2.500%46,325.00 171,325.00 171,325.00 179,891.25 198,999.12 19,107.87
02/01/2026 120,000.00 2.500%43,200.00 163,200.00 163,200.00 171,360.00 193,146.20 21,786.20
02/01/2027 120,000.00 2.550%40,200.00 160,200.00 160,200.00 168,210.00 187,293.28 19,083.28
02/01/2028 115,000.00 2.750%37,140.00 152,140.00 152,140.00 159,747.00 181,440.36 21,693.36
02/01/2029 115,000.00 2.850%33,977.50 148,977.50 148,977.50 156,426.38 175,587.46 19,161.09
02/01/2030 110,000.00 3.050%30,700.00 140,700.00 140,700.00 147,735.00 169,734.54 21,999.54
02/01/2031 110,000.00 3.250%27,345.00 137,345.00 137,345.00 144,212.25 163,881.62 19,669.37
02/01/2032 105,000.00 3.300%23,770.00 128,770.00 128,770.00 135,208.50 158,028.70 22,820.20
02/01/2033 105,000.00 3.350%20,305.00 125,305.00 125,305.00 131,570.25 152,175.80 20,605.55
02/01/2034 100,000.00 3.400%16,787.50 116,787.50 116,787.50 122,626.88 146,322.88 23,696.01
02/01/2035 100,000.00 3.450%13,387.50 113,387.50 113,387.50 119,056.88 140,469.96 21,413.09
02/01/2036 95,000.00 3.500%9,937.50 104,937.50 104,937.50 110,184.38 134,617.04 24,432.67
02/01/2037 95,000.00 3.550%6,612.50 101,612.50 101,612.50 106,693.13 128,764.14 22,071.02
02/01/2038 90,000.00 3.600%3,240.00 93,240.00 93,240.00 97,902.00 122,911.22 25,009.22
Total $2,280,000.00 -$716,777.50 $2,996,777.50 $2,996,777.50 $3,146,616.38 $3,570,278.20 $423,661.83
Dated...................................................................................................................................................................................................9/07/2017
Delivery Date...........................................................................................................................................................................................9/07/2017
First Coupon Date.......................................................................................................................................................................................8/01/2018
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$23,372.00
Average Life............................................................................................................................................................................................10.251 Years
Average Coupon..........................................................................................................................................................................................3.0668214%
Net Interest Cost (NIC).................................................................................................................................................................................3.1102417%
True Interest Cost (TIC)................................................................................................................................................................................3.0842128%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4135976%
All Inclusive Cost (AIC)................................................................................................................................................................................3.1719620%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................2.9831430%
Weighted Average Maturity...............................................................................................................................................................................10.208 Years
2017A GO Bonds w. Ref | Street Reconstruction Ass | 7/11/2017 | 8:28 AM
Page 15
$2,341,166
City of Lakeville, Minnesota
General Obligation Bonds
2017A Assessments - Street Assessments
ASSESSMENT INCOME
Date Principal Coupon Interest Total P+I
12/31/2018 117,058.30 5.000%117,058.30 234,116.60
12/31/2019 117,058.30 5.000%111,205.38 228,263.68
12/31/2020 117,058.30 5.000%105,352.48 222,410.78
12/31/2021 117,058.30 5.000%99,499.56 216,557.86
12/31/2022 117,058.30 5.000%93,646.64 210,704.94
12/31/2023 117,058.30 5.000%87,793.72 204,852.02
12/31/2024 117,058.30 5.000%81,940.82 198,999.12
12/31/2025 117,058.30 5.000%76,087.90 193,146.20
12/31/2026 117,058.30 5.000%70,234.98 187,293.28
12/31/2027 117,058.30 5.000%64,382.06 181,440.36
12/31/2028 117,058.30 5.000%58,529.16 175,587.46
12/31/2029 117,058.30 5.000%52,676.24 169,734.54
12/31/2030 117,058.30 5.000%46,823.32 163,881.62
12/31/2031 117,058.30 5.000%40,970.40 158,028.70
12/31/2032 117,058.30 5.000%35,117.50 152,175.80
12/31/2033 117,058.30 5.000%29,264.58 146,322.88
12/31/2034 117,058.30 5.000%23,411.66 140,469.96
12/31/2035 117,058.30 5.000%17,558.74 134,617.04
12/31/2036 117,058.30 5.000%11,705.84 128,764.14
12/31/2037 117,058.30 5.000%5,852.92 122,911.22
Total $2,341,166.00 -$1,229,112.20 $3,570,278.20
SIGNIFICANT DATES
Filing Date.............................................................................................................................................................................................1/01/2018
First Payment Date......................................................................................................................................................................................12/31/2018
2017A Assessments | Street Assessments | 7/11/2017 | 8:24 AM
Page 16
$955,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Street Reconstruction Water
DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I 105% Levy
02/01/2018 -----
02/01/2019 80,000.00 1.750%31,398.50 111,398.50 116,968.43
02/01/2020 90,000.00 2.250%21,027.50 111,027.50 116,578.88
02/01/2021 90,000.00 2.250%19,002.50 109,002.50 114,452.63
02/01/2022 95,000.00 2.250%16,977.50 111,977.50 117,576.38
02/01/2023 95,000.00 2.250%14,840.00 109,840.00 115,332.00
02/01/2024 95,000.00 2.250%12,702.50 107,702.50 113,087.63
02/01/2025 100,000.00 2.500%10,565.00 110,565.00 116,093.25
02/01/2026 100,000.00 2.500%8,065.00 108,065.00 113,468.25
02/01/2027 105,000.00 2.550%5,565.00 110,565.00 116,093.25
02/01/2028 105,000.00 2.750%2,887.50 107,887.50 113,281.88
Total $955,000.00 -$143,031.00 $1,098,031.00 $1,152,932.55
SIGNIFICANT DATES
Dated...................................................................................................................................................................................................9/07/2017
Delivery Date...........................................................................................................................................................................................9/07/2017
First Coupon Date.......................................................................................................................................................................................8/01/2018
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$5,832.00
Average Life............................................................................................................................................................................................6.107 Years
Average Coupon..........................................................................................................................................................................................2.4525206%
Net Interest Cost (NIC).................................................................................................................................................................................2.4377306%
True Interest Cost (TIC)................................................................................................................................................................................2.4289360%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4135976%
All Inclusive Cost (AIC)................................................................................................................................................................................2.5616121%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................2.2192012%
Weighted Average Maturity...............................................................................................................................................................................6.089 Years
Interest rates are estimates. Changes in rates may
cause significant alterations to this schedule.
The actual underwriter's discount bid may also vary.
2017A GO Bonds w. Ref | Street Reconstruction Wat | 7/11/2017 | 8:28 AM
Page 17
$1,235,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Holyoke Ave. Improvement Levy
DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I 105% Levy
02/01/2018 -----
02/01/2019 100,000.00 1.750%40,659.50 140,659.50 147,692.48
02/01/2020 115,000.00 2.250%27,292.50 142,292.50 149,407.13
02/01/2021 115,000.00 2.250%24,705.00 139,705.00 146,690.25
02/01/2022 120,000.00 2.250%22,117.50 142,117.50 149,223.38
02/01/2023 125,000.00 2.250%19,417.50 144,417.50 151,638.38
02/01/2024 125,000.00 2.250%16,605.00 141,605.00 148,685.25
02/01/2025 130,000.00 2.500%13,792.50 143,792.50 150,982.13
02/01/2026 130,000.00 2.500%10,542.50 140,542.50 147,569.63
02/01/2027 135,000.00 2.550%7,292.50 142,292.50 149,407.13
02/01/2028 140,000.00 2.750%3,850.00 143,850.00 151,042.50
Total $1,235,000.00 -$186,274.50 $1,421,274.50 $1,492,338.23
SIGNIFICANT DATES
Dated...................................................................................................................................................................................................9/07/2017
Delivery Date...........................................................................................................................................................................................9/07/2017
First Coupon Date.......................................................................................................................................................................................8/01/2018
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$7,589.00
Average Life............................................................................................................................................................................................6.145 Years
Average Coupon..........................................................................................................................................................................................2.4545329%
Net Interest Cost (NIC).................................................................................................................................................................................2.4406753%
True Interest Cost (TIC)................................................................................................................................................................................2.4319863%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4135976%
All Inclusive Cost (AIC)................................................................................................................................................................................2.5638976%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................2.2234493%
Weighted Average Maturity...............................................................................................................................................................................6.127 Years
Interest rates are estimates. Changes in rates may
cause significant alterations to this schedule.
The actual underwriter's discount bid may also vary.
2017A GO Bonds w. Ref | Holyoke Ave. Improvement | 7/11/2017 | 8:28 AM
Page 18
$485,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Holyoke Ave. Improvement Assessment
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I Net New D/S 105% of
Total
Assessment Surplus
02/01/2018 --------
02/01/2019 50,000.00 1.750%15,746.50 65,746.50 65,746.50 69,033.83 76,148.40 7,114.58
02/01/2020 55,000.00 2.250%10,372.50 65,372.50 65,372.50 68,641.13 73,610.12 4,969.00
02/01/2021 50,000.00 2.250%9,135.00 59,135.00 59,135.00 62,091.75 71,071.84 8,980.09
02/01/2022 50,000.00 2.250%8,010.00 58,010.00 58,010.00 60,910.50 68,533.56 7,623.06
02/01/2023 50,000.00 2.250%6,885.00 56,885.00 56,885.00 59,729.25 65,995.28 6,266.03
02/01/2024 50,000.00 2.250%5,760.00 55,760.00 55,760.00 58,548.00 63,457.00 4,909.00
02/01/2025 45,000.00 2.500%4,635.00 49,635.00 49,635.00 52,116.75 60,918.72 8,801.97
02/01/2026 45,000.00 2.500%3,510.00 48,510.00 48,510.00 50,935.50 58,380.44 7,444.94
02/01/2027 45,000.00 2.550%2,385.00 47,385.00 47,385.00 49,754.25 55,842.16 6,087.91
02/01/2028 45,000.00 2.750%1,237.50 46,237.50 46,237.50 48,549.38 53,303.88 4,754.51
Total $485,000.00 -$67,676.50 $552,676.50 $552,676.50 $580,310.33 $647,261.40 $66,951.08
Dated...................................................................................................................................................................................................9/07/2017
Delivery Date...........................................................................................................................................................................................9/07/2017
First Coupon Date.......................................................................................................................................................................................8/01/2018
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$2,784.00
Average Life............................................................................................................................................................................................5.740 Years
Average Coupon..........................................................................................................................................................................................2.4309088%
Net Interest Cost (NIC).................................................................................................................................................................................2.4025736%
True Interest Cost (TIC)................................................................................................................................................................................2.3923057%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4135976%
All Inclusive Cost (AIC)................................................................................................................................................................................2.5327335%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................2.1701716%
Weighted Average Maturity...............................................................................................................................................................................5.724 Years
2017A GO Bonds w. Ref | Holyoke Ave. Improvement | 7/11/2017 | 8:28 AM
Page 19
$507,656
City of Lakeville, Minnesota
General Obligation Bonds
2017A Assessments - Holyoke Ave. Assessments
ASSESSMENT INCOME
Date Principal Coupon Interest Total P+I
12/31/2018 50,765.60 5.000%25,382.80 76,148.40
12/31/2019 50,765.60 5.000%22,844.52 73,610.12
12/31/2020 50,765.60 5.000%20,306.24 71,071.84
12/31/2021 50,765.60 5.000%17,767.96 68,533.56
12/31/2022 50,765.60 5.000%15,229.68 65,995.28
12/31/2023 50,765.60 5.000%12,691.40 63,457.00
12/31/2024 50,765.60 5.000%10,153.12 60,918.72
12/31/2025 50,765.60 5.000%7,614.84 58,380.44
12/31/2026 50,765.60 5.000%5,076.56 55,842.16
12/31/2027 50,765.60 5.000%2,538.28 53,303.88
Total $507,656.00 -$139,605.40 $647,261.40
SIGNIFICANT DATES
Filing Date.............................................................................................................................................................................................1/01/2018
First Payment Date......................................................................................................................................................................................12/31/2018
2017A Assessments | Holyoke Ave. Assessments | 7/11/2017 | 8:24 AM
Page 20
$395,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Holyoke Ave. Improvement Light Fund
DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I 105% Levy
02/01/2018 -----
02/01/2019 45,000.00 1.750%12,495.00 57,495.00 60,369.75
02/01/2020 45,000.00 2.250%8,137.50 53,137.50 55,794.38
02/01/2021 50,000.00 2.250%7,125.00 57,125.00 59,981.25
02/01/2022 50,000.00 2.250%6,000.00 56,000.00 58,800.00
02/01/2023 50,000.00 2.250%4,875.00 54,875.00 57,618.75
02/01/2024 50,000.00 2.250%3,750.00 53,750.00 56,437.50
02/01/2025 50,000.00 2.500%2,625.00 52,625.00 55,256.25
02/01/2026 55,000.00 2.500%1,375.00 56,375.00 59,193.75
Total $395,000.00 -$46,382.50 $441,382.50 $463,451.63
SIGNIFICANT DATES
Dated...................................................................................................................................................................................................9/07/2017
Delivery Date...........................................................................................................................................................................................9/07/2017
First Coupon Date.......................................................................................................................................................................................8/01/2018
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$1,983.00
Average Life............................................................................................................................................................................................5.020 Years
Average Coupon..........................................................................................................................................................................................2.3390066%
Net Interest Cost (NIC).................................................................................................................................................................................2.2510136%
True Interest Cost (TIC)................................................................................................................................................................................2.2395434%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4135976%
All Inclusive Cost (AIC)................................................................................................................................................................................2.3971800%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................1.9816612%
Weighted Average Maturity...............................................................................................................................................................................5.015 Years
Interest rates are estimates. Changes in rates may
cause significant alterations to this schedule.
The actual underwriter's discount bid may also vary.
2017A GO Bonds w. Ref | Holyoke Ave. Improvement | 7/11/2017 | 8:28 AM
Page 21
$1,160,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Launch Park Assessment
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I Net New D/S 105% of Total Assessment Surplus
02/01/2018 --------
02/01/2019 95,000.00 1.750%38,132.50 133,132.50 133,132.50 139,789.13 152,167.87 12,378.75
02/01/2020 110,000.00 2.250%25,575.00 135,575.00 135,575.00 142,353.75 152,167.87 9,814.12
02/01/2021 110,000.00 2.250%23,100.00 133,100.00 133,100.00 139,755.00 152,167.87 12,412.87
02/01/2022 115,000.00 2.250%20,625.00 135,625.00 135,625.00 142,406.25 152,167.87 9,761.62
02/01/2023 115,000.00 2.250%18,037.50 133,037.50 133,037.50 139,689.38 152,167.87 12,478.50
02/01/2024 120,000.00 2.250%15,450.00 135,450.00 135,450.00 142,222.50 152,167.87 9,945.37
02/01/2025 120,000.00 2.500%12,750.00 132,750.00 132,750.00 139,387.50 152,167.87 12,780.37
02/01/2026 125,000.00 2.500%9,750.00 134,750.00 134,750.00 141,487.50 152,167.87 10,680.37
02/01/2027 125,000.00 2.550%6,625.00 131,625.00 131,625.00 138,206.25 152,167.87 13,961.62
02/01/2028 125,000.00 2.750%3,437.50 128,437.50 128,437.50 134,859.38 152,167.87 17,308.50
Total $1,160,000.00 -$173,482.50 $1,333,482.50 $1,333,482.50 $1,400,156.63 $1,521,678.70 $121,522.08
Dated...................................................................................................................................................................................................9/07/2017
Delivery Date...........................................................................................................................................................................................9/07/2017
First Coupon Date.......................................................................................................................................................................................8/01/2018
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$7,079.00
Average Life............................................................................................................................................................................................6.103 Years
Average Coupon..........................................................................................................................................................................................2.4506639%
Net Interest Cost (NIC).................................................................................................................................................................................2.4350678%
True Interest Cost (TIC)................................................................................................................................................................................2.4262568%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4135976%
All Inclusive Cost (AIC)................................................................................................................................................................................2.5589836%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................2.2163048%
Weighted Average Maturity...............................................................................................................................................................................6.085 Years
2017A GO Bonds w. Ref | Launch Park Assessment | 7/11/2017 | 8:28 AM
Page 22
$1,175,000
City of Lakeville, Minnesota
General Obligation Bonds
2017A Assessments - Launch Park Assessments
ASSESSMENT INCOME
Date Principal Coupon Interest Total P+I
12/31/2018 93,417.87 5.000%58,750.00 152,167.87
12/31/2019 98,088.77 5.000%54,079.10 152,167.87
12/31/2020 102,993.21 5.000%49,174.66 152,167.87
12/31/2021 108,142.87 5.000%44,025.00 152,167.87
12/31/2022 113,550.01 5.000%38,617.86 152,167.87
12/31/2023 119,227.51 5.000%32,940.36 152,167.87
12/31/2024 125,188.89 5.000%26,978.98 152,167.87
12/31/2025 131,448.33 5.000%20,719.54 152,167.87
12/31/2026 138,020.75 5.000%14,147.12 152,167.87
12/31/2027 144,921.79 5.000%7,246.08 152,167.87
Total $1,175,000.00 -$346,678.70 $1,521,678.70
SIGNIFICANT DATES
Filing Date.............................................................................................................................................................................................1/01/2018
First Payment Date......................................................................................................................................................................................12/31/2018
2017A Assessments | Launch Park Assessments | 7/11/2017 | 8:24 AM
Page 23
$1,750,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Advance Refunding of Series 2007H
DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I 105% Levy
02/01/2018 -----
02/01/2019 145,000.00 1.750%57,568.00 202,568.00 212,696.40
02/01/2020 165,000.00 2.250%38,582.50 203,582.50 213,761.63
02/01/2021 165,000.00 2.250%34,870.00 199,870.00 209,863.50
02/01/2022 170,000.00 2.250%31,157.50 201,157.50 211,215.38
02/01/2023 175,000.00 2.250%27,332.50 202,332.50 212,449.13
02/01/2024 175,000.00 2.250%23,395.00 198,395.00 208,314.75
02/01/2025 185,000.00 2.500%19,457.50 204,457.50 214,680.38
02/01/2026 185,000.00 2.500%14,832.50 199,832.50 209,824.13
02/01/2027 190,000.00 2.550%10,207.50 200,207.50 210,217.88
02/01/2028 195,000.00 2.750%5,362.50 200,362.50 210,380.63
Total $1,750,000.00 -$262,765.50 $2,012,765.50 $2,113,403.78
SIGNIFICANT DATES
Dated...................................................................................................................................................................................................9/07/2017
Delivery Date...........................................................................................................................................................................................9/07/2017
First Coupon Date.......................................................................................................................................................................................8/01/2018
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$10,710.00
Average Life............................................................................................................................................................................................6.120 Years
Average Coupon..........................................................................................................................................................................................2.4534594%
Net Interest Cost (NIC).................................................................................................................................................................................2.4390140%
True Interest Cost (TIC)................................................................................................................................................................................2.4302582%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................2.4135976%
All Inclusive Cost (AIC)................................................................................................................................................................................2.6066204%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................2.2209299%
Weighted Average Maturity...............................................................................................................................................................................6.102 Years
Interest rates are estimates. Changes in rates may
cause significant alterations to this schedule.
The actual underwriter's discount bid may also vary.
2017A GO Bonds w. Ref | Refund Series 2007H | 7/11/2017 | 8:28 AM
Page 24
$1,750,000
City of Lakeville, Minnesota
General Obligation Bonds
Series 2017A - Advance Refunding of Series 2007H
Debt Service Comparison
Date Total P+I PCF Existing D/S Net New D/S Old Net D/S Savings
02/01/2018 -(1,740,000.00)1,920,122.50 180,122.50 180,122.50 -
02/01/2019 202,568.00 --202,568.00 219,645.00 17,077.00
02/01/2020 203,582.50 --203,582.50 218,845.00 15,262.50
02/01/2021 199,870.00 --199,870.00 217,845.00 17,975.00
02/01/2022 201,157.50 --201,157.50 216,490.00 15,332.50
02/01/2023 202,332.50 --202,332.50 219,890.00 17,557.50
02/01/2024 198,395.00 --198,395.00 217,750.00 19,355.00
02/01/2025 204,457.50 --204,457.50 220,093.75 15,636.26
02/01/2026 199,832.50 --199,832.50 217,000.00 17,167.50
02/01/2027 200,207.50 --200,207.50 218,450.00 18,242.50
02/01/2028 200,362.50 --200,362.50 219,450.00 19,087.50
Total $2,012,765.50 (1,740,000.00)$1,920,122.50 $2,192,888.00 $2,365,581.25 $172,693.26
PV Analysis Summary (Net to Net)
Net FV Cashflow Savings.................................................................................................................................................................................172,693.26
Gross PV Debt Service Savings...........................................................................................................................................................................150,754.58
Net PV Cashflow Savings @ 2.414%(Bond Yield)...........................................................................................................................................................150,754.58
Contingency or Rounding Amount..........................................................................................................................................................................1,942.53
Net Future Value Benefit................................................................................................................................................................................$174,635.79
Net Present Value Benefit...............................................................................................................................................................................$152,697.11
Net PV Benefit / $402,376.62 PV Refunded Interest.......................................................................................................................................................37.949%
Net PV Benefit / $1,903,932.68 PV Refunded Debt Service.................................................................................................................................................8.020%
Net PV Benefit / $1,740,000 Refunded Principal.........................................................................................................................................................8.776%
Net PV Benefit / $1,750,000 Refunding Principal........................................................................................................................................................8.726%
Refunding Bond Information
Refunding Dated Date....................................................................................................................................................................................9/07/2017
Refunding Delivery Date.................................................................................................................................................................................9/07/2017
2017A GO Bonds w. Ref | Refund Series 2007H | 7/11/2017 | 8:28 AM