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Public Hearing for Street ReconstructionMay 6, 2014 fia Council Report 2014-045 City of Hopkins PUBLIC HEARING ON FIVE-YEAR STREET RECONSTRUCTIN PLAN & RESOLUTION ADOPTING A STREET RECONSTRUCTION PLAN AND AUTHORIZING THE ISSUANCE OF STREET RECONSTRUCTION BONDSTHEREUNDER Proposed Action Approve Resolution 2014-022 adopting a street reconstruction plan and authorizing the issuance of street reconstruction bonds thereunder. Overview A Street Reconstruction and Overlay Plan (SROP) is a document designed to anticipate street reconstruction and overlay expenditures and schedule them over a five-year period so that they may be purchased in the most efficient and cost effective method possible. A SROP allows the matching of expenditures with anticipated income. As potential expenditures are reviewed, the city considers the benefits, costs, alternatives and impact on operating expenditures. The street reconstruction and overlay planning process is as follows; the City Council authorizes the preparation of the SROP, which was done at the April 1s` council meeting. City staff was instructed to assemble the capital expenditures to be undertaken within the next five years. The City Council then reviewed the expenditures according to their priority, fiscal impact, and available funding. From this information, a preliminary street reconstruction and overlay plan was prepared. A public hearing is then held to solicit input from citizens and other governmental units. Changes, if any are made based on that input, and a final project list is established. The City Council then prepares a plan based on the available funding sources. It has been determined that general obligation bonding is necessary, therefore at the conclusion of the public hearing if there are no changes to the SROP the council will authorize the issuance of street reconstruction bonds. City staff will work with Ehlers, its financial advisors to prepare the bond documents. A pre -sale report on the expected bond sale is attached. We are looking to size the bond at $1,940,000. Over the life of the SROP, once the funding, including proceeds from the bond sales becomes available, the individual capital expenditures can be made. Primary Issues to Consider 0 Funding for 2014 street projects Supporting Information 2014-2018 Five -Year Street Reconstruction Overlay Plan Resolution No. 2014-022 Bond Pre -Sale Report Christine M. Harkess, CPA, CGFM Finance Director Financial Impact: $ 2 mill for 2014 Budgeted: Y/N N Source: Bond Proceeds Related Documents (CIP, ERP, etc.): CIP Notes: follows: CITY OF HOPKINS, MINNESOTA RESOLUTION NO. 2014-022 RESOLUTION ADOPTING A STREET RECONSTRUCTION PLAN AND AUTHORIZING ISSUANCE OF STREET RECONSTRUCTION BONDS THEREUNDER BE IT RESOLVED by the City Council of the City of Hopkins, Minnesota (the "City"), as Section 1. Background. 1.01. The City is authorized under Minnesota Statutes, Section 475.58, subdivision 3b (the "Act"), to prepare a plan for street reconstruction in the City over the next five years that will be financed under the Act, including a description of the proposed work and estimated costs, and to issue general obligation bonds to finance the cost of street reconstruction activities described in the plan. 1.02. Before the issuance of any bonds under the Act, the City is required to hold a public hearing on the plan and issuance of the bonds. 1.03. Pursuant to the Act, the City, in consultation with its City engineer, has caused preparation of the "2014 through 2018 Five -Year Street Reconstruction Overlay Plan for the City of Hopkins, Minnesota" (the "Plan"), which describes certain street reconstruction and overlay activities in the City for the years 2014 through 2018. The reconstruction activities described in the Plan include, but are not limited to, the West Park Road and 21" Avenue street and utility improvement project, the Hobby Acres and Trail and 13"' Avenue drainage project, and the reconstruction and overlay of certain portions of Main Street in the City (collectively, the "Project"). 1.04. The City has determined that it is in the best interests of the City to authorize the issuance and sale of general obligation street reconstruction bonds pursuant to the Act in the maximum principal amount of $8,000,000 (the "Bonds"). The purpose of the Bonds is to finance the costs of the Project as described in the Plan. 1.05. On this date, the City Council held a public hearing on the Plan and the issuance of the Bonds, after publication in the City's official newspaper of a notice of public hearing at least 10 days but no more than 28 days before the date of the hearing. Section 2. Plan Approved. 2.01. The City Council finds that the Plan will improve the City's street and utility systems, which serves the interests of the City as a whole. 2.02. The Plan is approved in the form on file in City Hall. Section 3. Bonds Authorized. 3.01. The City is authorized to issue the Bonds in a maximum principal amount of $8,000,000, in order to finance the Project described in the Plan. City staff, its financial advisor, and its legal counsel 4433160 JAE HPI 10-86 are authorized to take all actions needed to call for the sale of the Bonds, subject to the contingency described in Section 3.02 hereof. 3.02. If a petition requesting a vote on the issuance of the Bonds, signed by voters equal to five percent (5%) of the votes cast in the last municipal general election, is filed with the City Clerk within 30 days after the date of the public hearing, the City may issue the Bonds only after obtaining approval of a majority of voters voting on the question at an election. The authorization to issue the Bonds is subject to expiration of the 30 -day period without the City's receipt of a qualified petition under the Act, or if a qualified petition is filed, upon the approving vote of a majority of the voters voting on the question of issuance of the Bonds. 3.03. City staff are authorized and directed to take all other actions necessary to carry out the intent of this resolution. Adopted by the City Council of the City of Hopkins, Minnesota this 6th day of May, 2014. Eugene J. Maxwell, Mayor ATTEST: Deborah L. Sperling, Deputy City Clerk 443316v1 JAE HP 110-86 2014 through 2018 Five -Year Street Reconstruction Overlay Plan for the City of Hopkins, Minnesota May 6, 2014 Prepared by: Ehlers & Associates, Inc. 3060 Centre Pointe Drive Roseville, MN 55113 FREERS & ASSOCIATES INC Table of Contents I. INTRODUCTION................................................................................ 3 II. PURPOSE.............................................................................................4 III. THE STREET RECONSTRUCTION AND OVERLAY PLANNING PROCESS............................................................................................. 5 IV. PROJECT SUMMARY........................................................................6 V. FINANCING THE STREET RECONSTRUCTION AND OVERLAY PLAN.................................................................................................... 7 PROJECT COSTS........................................................... APPENDIX A PROPOSED SRP BOND ISSUES .................................. APPENDIX B PRE -SALE SCHEDULE ................................................. APPENDIX C Ehlers & Associates, Inc. Page 2 City of Hopkins Five -Year Street Reconstruction and Overlay Plan 2014 through 2018 I. INTRODUCTION In 2002, the Minnesota State Legislature passed into law a bill which generally exempts city bonds issued under a street reconstruction program from the referendum requirements usually required for bonding expenditures. In 2013, the Legislature amended the law to allow bituminous overlays to be included in the street reconstruction program. Ehlers & Associates, Inc. Page 3 II. PURPOSE Street reconstruction or bituminous overlay is a major expenditure of city funds for the reconstruction or overlay of streets. Street reconstruction and bituminous overlay may include utility replacement and relocation and other incidental costs, turn lanes and other improvements having a substantial public safety function, realignments, other modifications to intersect with state and county roads, and the local share of state and county road projects. Except in the case of turn lanes, safety improvements, realignments, intersection modifications, and local share of state and county road projects, street reconstruction does not include the portion of project costs allocable to widening a street or adding curbs and gutters where none previously existed. A Street Reconstruction and Overlay Plan (SROP) is a document designed to anticipate street reconstruction and overlay expenditures and schedule them over a five-year period so that they may be purchased in the most efficient and cost effective method possible. A SROP allows the matching of expenditures with anticipated income. As potential expenditures are reviewed, the city considers the benefits, costs, alternatives and impact on operating expenditures. The City of Hopkins, Minnesota (the "City") believes the street reconstruction and overlay process is an important element of responsible fiscal management. Major capital expenditures can be anticipated and coordinated so as to minimize potentially adverse financial impacts caused by the timing and magnitude of capital outlays. This coordination of capital expenditures is important to the City in achieving its goals of adequate physical assets and sound fiscal management. In these financially difficult times good planning is essential for the wise use of limited financial resources. The Street Reconstruction and Overlay Plan is designed to be updated on an annual basis. In this manner, it becomes an ongoing fiscal planning tool that continually anticipates future capital expenditures and funding sources. Ehlers & Associates, Inc. Page 4 III. THE STREET RECONSTRUCTION AND OVERLAY PLANNING PROCESS The street reconstruction and overlay planning process is as follows; the City Council authorizes the preparation of the SROP. The City staff is instructed to assemble the capital expenditures to be undertaken within the next five years. The City Council then reviews the expenditures according to their priority, fiscal impact, and available funding. From this information, a preliminary street reconstruction and overlay plan is prepared. A public hearing is held to solicit input from citizens and other governmental units. Changes are made based on that input, and a final project list is established. The City Council then prepares a plan based on the available funding sources. If general obligation bonding is necessary, the City works with its financial advisor to prepare a bond sale and repayment schedule. Over the life of the SROP, once the funding, including proceeds from the bond sales becomes available, the individual capital expenditures can be made. In subsequent years, the process is repeated as expenditures are completed as new needs arise. Street reconstruction planning looks five years into the future. For a city to use its authority to finance expenditures under Chapter 475.58, Subdivision 3b, it must meet the requirements provided therein. Specifically, the city council must approve the sale of street reconstruction bonds by a unanimous vote of its membership present. In addition, it must hold a public hearing for public input. Notice of such hearing must be published in the official newspaper of the city at least 10, but not more than 28 days prior to the date of the public hearing. The city council approves the SROP unanimously following the public hearing. Although a referendum is not required, a reverse referendum is allowable. If a petition bearing the signatures of at least 5 percent of the votes cast in the last general election requesting a vote on the issuance of bonds is received by the municipal clerk within 30 days after the public hearing, a referendum vote on the issuance of the bonds shall be called (if a vote is taken and the referendum passes, the taxes would be levied on market value rather than tax capacity). Ehlers & Associates, Inc. Page 5 IV. PROJECT SUMMARY The expenditures to be undertaken with this Street Reconstruction and Overlay Plan (SROP) are limited to those listed in Appendix A. All other foreseeable capital expenditures within the City government will come through other means. The following expenditures have been submitted for inclusion in this SROP: 2014 Expenditures • West Park Road and 21" Avenue street and utility improvement project • Hobby Acres and Trail and 13th Avenue drainage 2015 Expenditures • Mainstreet from 5th Avenue to Shady Oak Road • Oakridge Road mill and overlay 2016 Expenditures • No projects contemplated at this time 2017 Expenditures • No projects contemplated at this time 2018 Expenditures o No projects contemplated at this time Ehlers & Associates, Inc. Page 6 V. FINANCING THE STREET RECONSTRUCTION PLAN The total amount of requested expenditures under the Street Reconstruction and Overlay Plan is approximately $7,712,000. If these expenditures are to be funded, that amount of money is anticipated to be generated through the tax levy and the sale of approximately $8,000,000 in bonds over the five-year period. In the financing of the Street Reconstruction Plan, one statutory limitation applies. Under Chapter 475, with few exceptions, cities cannot incur debt in excess of 3% of the assessor's estimated market value for the city. In the City the EMV is $1,462,274,500. Therefore, the total amount of outstanding debt cannot exceed $43,868,235. As of April 10, 2014 the City had $7,865,000 subject to the legal debt limit. Under the Street Reconstruction Plan, the City will secure $2,000,000 in general obligation bonds in the year 2014 to finance the West Park Road and 21st Avenue street and utility improvement project, Hobby Acres and Trail and 13th Avenue drainage. In the year 2015, general obligation bonds in the amount of $6,000,000 will be secured for the Mainstreet project from 5th Avenue to Shady Oak Road and Oakridge Road mill and overlay. Both general obligation bond issues will be repaid over a 15 -year period. The par amount of each issue is based on the amounts listed in Appendix A plus estimated issuance costs. The proposed general obligation street reconstruction bonds (including issuance costs) are shown in Appendix B. Continuation of the Street Reconstruction and Overlay Plan This Street Reconstruction and Overlay Plan should be reviewed annually by the City Council using the process outlined in this Plan. It should review proposed expenditures, make priority decisions, and seek funding for those expenditures it deems necessary for the City. ' If deemed appropriate, the Council should prepare an update to this Plan. Ehlers & Associates, Inc. Page 7 APPENDIX A PROJECT COSTS (Capital Expenditures to be funded with Bond Proceeds) The 2014 capital expenditure of approximately $1,912,000 is to finance the City's 2014 road reconstruction projects and is to be funded with $2,000,000 in bond proceeds. These expenditures are anticipated due to the need to reconstruct these roads and complete necessary utility replacement. Sources & Uses Dated 07/01/20141 Delivered 07/01/2014 Sources Of Funds Par Amount of Bonds $2,000,000.00 Total Sources Uses Of Funds $2,000,000.00 Total Underwriter's Discount (1.200%) 24,000.00 Costs of Issuance 38,000.00 Deposit to Capitalized Interest (CIF) Fund 26.070.63 Deposit to Project Fund 1,911,929.37 Total Uses $2,000,000.00 Ehlers & Associates, Inc. Page 8 The 2015 capital expenditure of approximately $5,800,000 is to finance the City's 2015 road reconstruction projects and is to be funded with $6,000,000 in bond proceeds. These expenditures are anticipated due to the need to reconstruct these roads and complete necessary utility replacement. Sources & Uses Dated 07/01/2015 1 Delivered 07/01/2015 Sources Of Funds Par Amount of Bonds 56.000.000.00 Total Sources Uses Of Funds $6,000,000.00 Total Underwriter's Discount (1.000%) 60,000.00 Costs of Issuance 53,000.00 _Deposit to Capitalized Interest (CIF) Fund 87,367.29 Deposit to Project Fund 5,799,632.71 Total Uses Ehlers & Associates, Inc. $6,000,0011.110 Page 9 PROPOSED 2014 SROP BOND ISSUES Debt Service Schedule Ehlers & Associates, Inc. Page 10 105% Date Principal Coupon Interest Total P+I Overlevy Fiscal Total 07/01/2014 - - - - 02/01/2015 26,070.63 26,070.63 27,374.16 27,374.16 08/01/2015 22,346.25 22,346.25 23,463.56 - 02/01/2016 120,000.00 0.750% 22,346.25 142,346.25 149,463.56 172,927.13 08/01/2016 - - 21,896.25 21,896.25 22,991.06 - 02/01/2017 120,000.00 1.000% 21,896.25 141,896.25 148,991.06 171,982.13 08/01/2017 - - 21,296.25 21,296.25 22,361.06 - 02/01/2018 120,000.00 1.300% 21,296.25 141,296.25 148,361.06 170,722.13 08/01/2018 - - 20,516.25 20,516.25 21,542.06 - 02/01/2019 120,000.00 1.550% 20,516.25 140,516.25 147,542.06 169,_084.13 08/01/2019 - - 19,586.25 19,586.25 20,565.56 - 02/01/2020 125,000.00 1.800% 19,586.25 144,586.25 151,815.56 172,381.13 08/01/2020 - - 18,461.25 18,461.25 19,384.31 - 02/01/2021 125,000.00 2.000% 18,461.25 143,461.25 150,634.31 170,018.63 08/01/2021 - - 17,211.25 17,211.25 18,071.81 - 02/01/2022 130,000.00 2.100% 17,211.25 147,211.25 154,571.81 172,643.63 08/01/2022 - - 15,846.25 15,846.25 16,638.56 - 02/01/2023 130,000.00 2.300% 15,846.25 145,846.25 153,138.56 169,777.13 08/01/2023 - - 14,351.25 14,351.25 15,068.81 - 02/01/2024 135,000.00 2.450% 14,351.25 149,351.25 156,818.81 171,887.63 08/01/2024 - - 12,697.50 12,697.50 13,332.38 - 02/01/2025 135,000.00 2.550% 12,697.50 147,697.50 155,082.38 168,414.75 08/01/2025 - - 10,976.25 10,976.25 11,525.06 - 02/01/2026 140,000.00 2.700% 10,976.25 150,976.25 158,525.06 170,050.13 08/01/2026 - - 9,086.25 9,086.25 9,540.56 - 02/01/2027 145,000.00 2.800% 9,086.25 154,086.25 161,790.56 171,331.13 08/01/2027 - - 7,056.25 7,056.25 7,409.06 - 02/01/2028 150,000.00 2.950% 7,056.25 157,056.25 164,909.06 172,318.13 08/01/2028 - - 4,843.75 4,843.75 5,085.94 - 02/01/2029 150,000.00 3.100% 4,843.75 154,843.75 162,585.94 167,671.88 08/01/2029 - - 2,518.75 2,518.75 2,644.69 - 02/01/2030 155,000.00 3.250% 2,518.75 157,518.75 165,394.69 168,039.38 Total $2,000,000.00 - $463,450.63 $2,463,450.63 $2,586,623.16 - Ehlers & Associates, Inc. Page 10 PROPOSED 2015 SROP BOND ISSUES Debt Service Schedule Ehlers & Associates, Inc. Page 11 105% Date Principal Coupon Interest Total P+I Overlevy Fiscal Total 07/01/2015 - - - - 02/01/2016 87,367.29 87,367.29 91,735.65 91,735.65 08/01/2016 - - 74,886.25 74,886.25 78,630.56 - 02/01/2017 350,000.00 1.000% 74,886.25 424,886.25 446,130.56 524,761.13 08/01/2017 - - 73,136.25 73,136.25 76,793.06 - 02/01/2018 350,000.00 1.250% 73,136.25 423,136.25 444,293.06 521,086.13 08/01/2018 - - 70,948.75 70,948.75 74,496.19 - 02/01/2019 355,000.00 1.550% 70,948.75 425,948.75 447,246.19 521,742.38 08/01/2019 - - 68,197.50 68,197.50 71,607.38 - 02/01/2020 360,000.00 1.800% 68,197.50 428,197.50 449,607.38 521,214.75 08/01/2020 - - 64,957.50 64,957.50 68,205.38 - 02/0l/2021 365,000.00 2.050% 64,957.50 429,957.50 451,455.38 519,660.75 08/01/2021 - - 61,216.25 61,216.25 64,277.06 - 02/01/2022 375,000.00 2.250% 61,216.25 436,216.25 458,027.06 522,304.13 08/01/2022 - - 56,997.50 56,997.50 59,847.38 - 02/01/2023 385,000.00 2.350% 56,997.50 441,997.50 464,097.38 523,944.75 08/01/2023 - - 52,473.75 52,473.75 55,097.44 - 02/0l/2024 390,000.00 2.550% 52,473.75 442,473.75 464,597.44 519,694.88 08/01/2024 - - 47,501.25 47,501.25 49,876.31 - 02/01/2025 400,000.00 2.700% 47,501.25 447,501.25 469,876.31 519,752.63 08/01/2025 - - 42,101.25 42,101.25 44,206.31 02/01/2026 415,000.00 2.800% 42,101.25 457,101.25 479,956.31 524,162.63 08/01/2026 - - 36,291.25 36,291.25 38,105.81 - 02/01/2027 425,000.00 2.950% 36,291.25 461,291.25 484,355.81 522,461.63 08/01/2027 - - 30,022.50 30,022.50 31,523.63 - 02/01/2028 435,000.00 3.050% 30,022.50 465,022.50 488,273.63 519,797.25 08/01/2028 - - 23,388.75 23,388.75 24,558.19 - 02/01/2029 450,000.00 3.200% 23,388.75 473,388.75 497,058.19 521,616.38 08/01/2029 - - 16,188.75 16,188.75 16,998.19 - 02/01/2030 465,000.00 3.350% 16,188.75 481,188.75 505,248.19 522,246.38 08/01/2030 - - 8,400.00 8,400.00 8,820.00 - 02/01/2031 480,000.00 3.500% 8,400.00 488,400.00 512,820.00 521,640.00 Total $6,000,000.00 - $1,540,782.29 $7,540,782.29 $7,917,821.40 - Ehlers & Associates, Inc. Page 11 APPENDIX C Pre -Sale Schedule dated April 1, 2014 5 -Year City Street Reconstruction Plan Bond Issuance City of Hopkins, Minnesota The City Council must take the following actions before Bonds can be issued: • City Council directs preparation of a 5 -Year Street Reconstruction Plan. • City Council conducts a Public Hearing on issuance of Bonds and Street Reconstruction Plan. • City Council approves Bonds and Street Reconstruction Plan by unanimous vote. The table below lists the steps in the issuing process: April 1, 2014 City Council adopts Resolution calling for Public Hearing on issuance of Bonds and on Street Reconstruction Plan. April 3, 2014 Close date to get Notice of Public Hearing on issuance of Bonds and on Street Reconstruction Plan to official newspaper for publication. April 11, 2014 Publish Notice of Public Hearing on issuance of Bonds and on Street Reconstruction Plan (publication no more than 28 days and no less than 10 days prior to hearing date). May 6, 2014 City Council holds Public Hearing on Bonds and on Street Reconstruction Plan and adopts Resolution giving preliminary approval for their issuance and approving Street Reconstruction Plan by unanimous vote of its membership present. May 6, 2014 City Council provides for sale of Bonds. June 6, 2014 Reverse referendum period ends (within 30 days of the public hearing). June 17, 2014 City Council accepts offer for Bonds and adopts Resolution -Approving sale of Bonds. July 1, 2014 Tentative closing/receipt of funds. Net Debt Limit Assessor's Estimated Market Value 1,462,274,500 Multiply by 3% 0.03 Statutory Debt Limit 43,868,235 Less: Debt Paid Solely from Taxes -7,865,000 Unused Debt Limit 36,003,235 Ehlers & Associates, Inc. Page 12 EHLERS LEADERS IN PUBLIC FINANCE May 6, 2014 Pre -Sale Report for City of Hopkins, Minnesota $1,940,000 General Obligation Bonds, Series 2014A City of uop�m Prepared by: Stacie Kvilvang Senior Financial Advisor/Director Jason Aarsvold Financial Advisor And Shelly Eldridge Senior Financial Advisor Executive Summary of Proposed Debt Proposed Issue: $1,940,000 General Obligation, Series 2014A Purposes: The proposed issue includes financing for the 2014 road reconstruction projects Improvement Portion of the Bonds: It is the intent of the City to levy approximately $160,392 in special assessments against benefitting property owners in 2014 for collection in years 2015 through 2029, at 2% above the True Interest Cost (TIC) of the Bonds. The City anticipates receiving approximately $38,404 (24%) in prepayments on the special assessments from the project this year. The improvement portion of the Bonds has been reduced by the aforementioned prepayment amounts. In addition, the City will be utilizing $89,000 in funds from the church for their portion of the project, and $36,000 in sanitary sewer funds. Remaining debt service will be paid from utility funds and a tax levy, which will not be required for collection until 2015. We have assumed capitalized interest through the February 1, 2015 payment in order to offset any immediate levy requirement. Attached to this report is a schedule of annual debt service costs and the specific revenues available in each fiscal year to pay the debt. In addition, the City has entered into a lease agreement with the Church for their portion of the project. The total cost was $124,000, of which they prepaid $89,000 (as noted above). The remaining $35,000 will be paid over a 5 -year period at 3.87% interest. Street Reconstruction Portion of the Bonds: Debt service on this portion of the Bonds will be paid with utility funds and a tax levy, which will not be required for collection until 2015. We have assumed capitalized interest through the February 1, 2015 payment in order to offset any immediate levy requirement. Attached to this report is a schedule of annual debt service costs and the specific revenues available in each fiscal year to pay the debt. Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapter 429, 475.58 and 475. The Bonds will be general obligations of the City for which its full faith, credit and taxing powers are pledged. For the improvement portion of the Bonds, the City is assessing 20% of the costs to benefitting property owners. The Street Reconstruction portion of the Bonds are restricted by the amount of net debt the City can issue. The City cannot issue debt in excess of 3% of the assessor's estimated market value for the city. In the City the EMV is $1,462,274,500. Therefore, the total amount of outstanding debt cannot exceed $43,868,235. As of April 14, 2014 the City had $7,865,000 subject to the legal debt limit (approximately $36 million in capacity available). Presale Report May 6, 2014 City of Hopkins, Minnesota Page 1 Presale Report May 6, 2014 City of Hopkins, Minnesota Page 2 Term/Call Feature: The Bonds are being issued for a 16 year term. Principal on the Bonds will be due on February 1 in the years 2016 through 2030. Interest is payable every six months beginning February 1, 2015. The Bonds maturing on and after February 1, 2023 will be subject to prepayment at the discretion of the City on February 1, 2022 or any date thereafter. Bank Qualification: Because the City is issuing less than $10,000,000 in the calendar year, the City will be able to designate the Bonds as "bank qualified" obligations. Bank qualified status broadens the market for the Bonds, which can result in lower interest rates. Rating: Based upon a rating surveillance completed on the City's outstanding debt by Standard & Poor's in January 2014, the City's outstanding debt was rated "AA+". The City will request a new rating for the Bonds. If the winning bidder on the Bonds elects to purchase bond insurance, the rating for the issue may be higher than the City's bond rating in the event that the bond rating of the insurer is higher than that of the City. Method of Sale/Placement: In order to obtain the lowest interest cost to the City, we will solicit competitive bids for purchase of the Bonds from local banks in your area and regional underwriters. We have included an allowance for discount bidding equal to 1.2% of the principal amount of the issue. The discount is treated as an interest item and provides the underwriter with all or a portion of their compensation in the transaction. If the Bonds are purchased at a price greater than the minimum bid amount (maximum discount), the unused allowance may be used to lower your borrowing amount. Premium Bids: The current generational low in interest rates has caused concerns amongst investors as to the impacts to the value of existing bonds in the case interest rates generally increase in the future. When interest rates rise, the value of existing bonds generally falls. In order to mitigate the decline in value of existing bonds, many investors are demanding "premium" pricing structures. A premium is achieved when the coupon for any maturity exceeds the yield, resulting in a price greater than the face value. The amount of the premium varies, but it is not uncommon to see premiums for new issues in the range of 2.00% to 10.00% of the face amount of the issue. This means that an issuer with a $2,000,000 offering may receive bids that result in proceeds of $2,040,000 to $2,200,000. For this issue of Bonds we have been directed to use the premium to reduce the size of the issue. The adjustments may slightly change the true interest Presale Report May 6, 2014 City of Hopkins, Minnesota Page 2 Presale Report May 6, 2014 City of Hopkins, Minnesota Page 3 cost of the original bid, either up or down. You have the choice to limit the amount of premium in the bid specifications. This may result in fewer bids, but it may also eliminate large adjustments on the day of sale and other uncertainties. Review of Existing Debt: We have reviewed all outstanding indebtedness for the City and find that there are refunding opportunities for this fall. GO debt that will be a candidate for a current refunding this fall is the 2007A bonds. In addition, the 2007 and 2008 TIF revenue bonds will be candidates for current refundings as well. We will continue to discuss these options with the City staff on how and when to proceed this fall. We will continue to monitor the market and the call dates for the City's outstanding debt and will alert you to any future refunding opportunities. Continuing Disclosure: Because the City has more than $10,000,000 in outstanding debt (including this issue) and this issue is over $1,000,000, the City will be agreeing to provide certain updated Annual Financial Information and its Audited Financial Statement annually as well as providing notices of the occurrence of certain "material events" to the Municipal Securities Rulemaking Board (the "MSRB"), as required by rules of the Securities and Exchange Commission (SEC). The City is already obligated to provide such reports for its existing bonds, and has contracted with Ehlers to prepare and file the reports. Arbitrage Monitoring: Because the Bonds are tax-exempt securities/tax credit securities, the City must ensure compliance with certain Internal Revenue Service (IRS) rules throughout the life of the issue. These rules apply to all gross proceeds of the issue, including initial bond proceeds and investment earnings in construction, escrow, debt service, and any reserve funds. How issuers spend bond proceeds and how they track interest earnings on funds (arbitrage/yield restriction compliance) are common subjects of IRS inquiries. Your specific responsibilities will be detailed in the Tax Certificate prepared by your Bond Attorney and provided at closing. You have retained Ehlers to assist you with compliance with these rules. Risk Factors: Special Assessments: We have assumed $38,404 in pre -paid special assessments and that the remaining assessments are levied as projected. If the City receives a significant amount of pre -paid assessments above what was anticipated or does not levy the assessments, it may need to increase the levy portion of the debt service to make up for lower interest earnings than the expected assessment interest rate. Presale Report May 6, 2014 City of Hopkins, Minnesota Page 3 Proposed Debt Issuance Schedule City Council Calls For Public Hearing on Issuance of Bonds Send Public Hearing Notice to Newspaper April 1, 2014 April 3, 2014 Date of Publication of Public Hearing Notice April 11, 2014 Public Hearing on Street Reconstruction Plan May 6, 2014 City Council Calls for Sale of Bonds May 6, 2014 30 -Day Reverse Referendum Period Ends June 6, 2014 Distribute Official Statement: Week of May 26, 2014 Conference with Rating Agency: Week of June 9, 2014 City Council Meeting to Award Sale of the Bonds: Estimated Closing Date: June 17, 2014 July 1, 2014 Attachments Sources and Uses of Funds Proposed Debt Service Schedule Resolution Authorizing Ehlers to Proceed With Bond Sale Ehlers Contacts Financial Advisors: Stacie Kvilvang (651) 697-8506 Jason Aarsvold (651) 697-8512 Disclosure Coordinator: Jen Chapman (651) 697-8566 Bond Sale Coordinator: Alicia Baldwin (651) 697-8523 Financial Analyst: Alicia Gage (651) 697-8551 The Official Statement for this financing will be mailed to the City Council at their home address or e-mailed for review prior to the sale date. Presale Report May 6, 2014 City of Hopkins, Minnesota Page 4 City of Hopkins, Minnesota $1,940,000 General Obligation Improvement Bonds, Series 2014A Issue Summary Assumes Current Market BQ AA Rates plus 25bps Total Issue Sources And Uses Dated 07/01/2014 1 Delivered 07/01/2014 Sources Of Funds Par Amount of Bonds Prepaid Assessments Sanitary Sewer Funds Outside Funding Total Sources Uses Of Funds Street Improvement Reconstruction Issue Portion Portion Summary $745,000.00 $1,195,000 38,404.00 36,000.00 89,000.00 $908.404.00 $1,195,000.00 1,940,000.00 38,404.00 36,000.00 89,000,00 $2,103,404.00 Total Underwriter's Discount (1200%) 8,940.00 14,340.00 23,280,00 Costs of Issuance 16,128 87 25,871.13 42,000.00 Deposit to Capitalized Interest (CIF) Fund 9,52146 15,615 83 25,13729 Deposit to Project Construction Fund 871,000 00 1,140,225.00 2,011,225.00 Rounding Amount 2,81367 (1,051.96) 1,761.71 Total Uses 3908,404.00 $1,195,000.00 $2,103,404.00 Series 2014A GO Imp Bonds I Issue Summary 1 51212014 1 12:38 PM EHLERS LEADERS IN PUBLIC FINANCE City of Hopkins, Minnesota $1,940,000 General Obligation Improvement Bonds, Series 2014A Issue Summary Assumes Current Market BQ AA Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Fiscal Total 07/01/2014 $2,384,987.29 (25,137.29) 52,359,850.00 $2,477,842.50 - Significant Dates Dated 7/01/2014 02/01/2015 2/01/2015 Yield Statistics 25,13729 25,13729 (25,13729) - Average Life 8.882 Years 08/01/2015 2.5823810% Net Interest Cost (NIQ 21,546 25 21,54625 21,546.25 22,623.56 - 02/01/2016 120,000.00 0.750% 21,546.25 141,546.25 141,546.25 148,623.56 171,247.13 08/01/2016 - 21,096.25 21,096.25 21,096 25 22,151.06 - 02/01/2017 120,00000 1.000% 21,096.25 141,096.25 141,096.25 148,15106 170,302.13 08/01/2017 - - 20,496.25 20,49625 20,496.25 21,521.06 02/01/2018 120,000,00 1.300% 20,496,25 140,496.25 140,496.25 147,52106 169,042.13 08/01/2018 19,716.25 19,71625 19,71625 20,702.06 - 02/01/2019 125._00000 1.550% 19,716.25 144,716,25 144,716.25 151,952.06 172,654.13 08/01/2019 - 18,747.50 18,747.50 18,747.50 19,684.88 02/01/2020 125,000.00 1800% 18,747.50 143,747.50 143,747.50 150,934.88 170,619.75 08/01/2020 - 17,622.50 17,622.50 17,622 50 18,503.63 02/01/2021 120,000.00 2,000% 17,622.50 137,622.50 137,622.50 144,503.63 163,007.25 08/01/2021 - 16,422.50 16,422 50 16,422.50 17,243.63 02/01/2022 120,00000 2.100% 16,422.50 136,422.50 136,422.50 143,243.63 160,487.25 08/01/2022 - 15,162.50 15,162,50 15,162.50 15,920.63 02/01/2023 125,000.00 2.300% 15,162,50 140,162.50 140,162.50 147,170.63 163,091.25 08/01/2023 - 13,72500 13,725.00 13,725.00 14,41125 - 02/01/2024 125,000.00 2,450% 13,725,00 138,725,00 138,725 00 145,661.25 160,07250 08/01/2024 12,193.75 12,193,75 12,193.75 12,803.44 - 02/01/2025 130,000.00 2.550% 12,193,75 142,193.75 142,19375 149,303.44 162,106.88 08/01/2025 - - 10,536.25 10,53625 10,536.25 11,063.06 - 02/01/2026 135,000.00 2.700% 10,536.25 145,536 25 145,536.25 152,813.06 163 876.13 08/01/2026 - 8,713.75 8,713.75 8,713.75 9,149,44 - 02/01/2027 135,000.00 2.R00% 8,713.75 143,713.75 143,713.75 150,89944 160,048.88 08/01/2027 - 6,823.75 6,823,75 6,823.75 7,16494 02/01/2028 145,000.00 2.950% 6,823.75 151,823.75 151,823.75 159,414.94 166,579,88 08/01/2028 - 4,685 00 4,68500 4,685.00 4,919.25 02/01/2029 145,000.00 3.100% 4,685.00 149,685.00 149,685+00 157,169 25 162,088.50 08/01/2029 - 2,437.50 2,43750 2,437.50 2,559,38 - 02/01/2030 150,000.00 3.250% 2,437,50 152,437 50 152,437 50 160,059.38 162,618.75 Total $1,940,000.00 - $444,987.29 $2,384,987.29 (25,137.29) 52,359,850.00 $2,477,842.50 - Significant Dates Dated 7/01/2014 First Coupon Date 2/01/2015 Yield Statistics Bond Year Dollars 517,231 67 Average Life 8.882 Years Average Coupon 2.5823810% Net Interest Cost (NIQ 2.7174811% True Interest Cost (TIC) 2.7114443% Bond Yield for Arbitrage Purposes 2.5560287% All Inclusive Cost (AIC) 29985114% Series 2014A GO Imp Bonds I Issue Summary 1 51 211014 1 12:38 PM EHLERS LEADERS IN PUBLIC FINANCE U 2 s V C0 0 M M M y h M N 7 00 V1 O� h Y1 OO N O O O O �O 7 7 7 �D O N O O •O U O O Obi O O O 0 0i O Q, O 0( O O O M M M M M M T M M T M T M M M M M M M M M M M T M M M T M M M M M T M M M M T M M M M M M M M M r'1 rn M M M M M M M M 7 7 at It n: V d' 7 7 7 7 7 7 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O C o 0 0 g S O O O O O O O O O O O O O %C lc •C `c lO 'O lc lc I .O lc lc lc lc h h v1 V1 V1 Y1 h V1 vl. h h •r. h h h M T M T T M M M M M M M M M M h b 00 00 00 00 00 V1 h .h Y1 hy1 h h h h M M M M M Vl V� Vl Yl 1/1 V1 h Vl h h -+ h N N N •/t o0 00 aD .n h h N 7 0 7 vi O ao N C M O �D `O 0 7 0 00 0 In O •O O M 0 O 0 0 0 0 0 0 0 0 0 1/O1 0 0 O. P a. M o. 7 7 N •n oo h N 7 h h O Ow 7 7 N v0 M 7 M 0 7 •O M� M N O <h N ./i N •/'i N a �O N oD � 7 N .n v vl h 0 0 0 V1 V'i h h O O MfV fJ /V N vi Vi V1 V1 (� N h n O h �nT N O 7 N� N •/i N a `O N� 7 7 N �D ^ �O .O �O h vl ./� h h h V•V1.. N ./Oi vOi vOi O O O O S VOi vOi voi vOi O 8 1� fV rV fV fJ V1 V1 V1 V1 O M O� lT T M T 7 7 N •/1 0o I� N 7 h h ee<e: CD000 00 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 vl pp O N 0 0 0 0 V1 •n O2 V1 O h h O M •/1 Oo O M 7 '/• h � N 0o88g000g888808 b h m O. O-- N M 7 �n 10 h - O, O N N- N N N- N N N M 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N N N N N r4 Q Q Q N N N N N 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -C 00 0 0 0 0 0 0 W i W City of Hopkins, Minnesota $745,000 General Obligation Improvement Bonds, Series 2014A Improvement Portion Assumes Current Market BQ AA Rates plus 25bps Debt Service Schedule Total $745,000.00 $166,838.96 $911,838.96 (9,521.46) 5902,317.50 5947,433.38 - Significant Dates Dated Net New 105% of 2/01/2015 Date Principal Coupon Interest Total P+I CIF DIS Total Fiscal Total 07/01/2014 Net Interest Cost (NIC) 2.7065471% - - Bond Yield for Arbitrage Purposes 2.5560287% All Inclusive Cost (AIC) 02/01/2015 9,521.46 9,52146 (9,521,46) 08/01/2015 - 8,16125 8,161.25 8,161.25 8,569.31 - 02/01/2016 50,000.00 0750% 8,16125 58,16125 58,16125 61,06931 69,638.63 08/01/2016 - 7,973 75 7,97375 7,973.75 8,37244 02/01/2017 50,000.00 1000% 7,97375 57,973 75 57,973 75 60,872 44 69,244.88 08/01/2017 - 7,723 75 7,723.75 7,723,75 8,109.94 - 02/01/2018 50,000 00 1300% 7,72375 57,723.75 57,723.75 60,609 94 68,719 88 08/01/2018 - - 7,398.75 7,398.75 7,39875 7,768.69 02/01/2019 50,000.00 1 550% 7,398.75 57,398 75 57,398.75 60,268.69 68,037.38 08/01/2019 7,01125 7,01125 7,01125 7,361.81 02/01/2020 50,00000 1.800% 7,011,25 57,01125 57,01125 59,861.81 67,223.63 08/01/2020 - - 6,561.25 6,56125 6,56125 6,88931 02/01/2021 45,000.00 2.000% 6,561.25 51,561.25 51,561 25 54,139 31 61,028 63 08/01/2021 - - 6,111.25 6,111.25 6,11125 6,416.81 02/01/2022 45,00000 2.100% 6,111.25 51,111.25 51,111.25 53,666.81 60,083.63 08/01/2022 - 5,638.75 5,63875 5,638.75 5,920.69 02/01/2023 45,000.00 2.300% 5,638.75 50,638.75 50,63875 53,170.69 59,091.38 08/01/2023 - 5,121.25 5,12125 5,121.25 5,377.31 02/01/2024 45,000,00 2450% 5,121.25 50,121.25 50,12125 52,627.31 58,004.63 08/01/2024 - - 4,57000 4,57000 4,57000 4,798.50 02/01/2025 50,000.00 2.550% 4,570.00 54,570 00 54,570 00 57,298.50 62,097.00 08/01/2025 - 3,932.50 3,932,50 3,932.50 4,129.13 - 02/01/2026 50,000.00 2.700% 3,932.50 53,932 50 53,932.50 56,629 13 60,758.25 08/01/2026 - 3,257.50 3,25750 3,257.50 3,420.38 02/01/2027 50,000.00 2.800% 3,257.50 53,257 50 53,257.50 55,920 38 59,340.75 08/01/2027 - - 2,557.50 2,55750 2,557.50 2,685.38 - 02/01/2028 55,000.00 2.950% 2,557,50 57,557.50 57,557.50 60,43538 63,120.75 08/01/2028 - - 1,746.25 1,74625 1,746.25 1,833.56 02/01/2029 55,000.00 3100% 1,746.25 56,74625 - 56,746.25 59,58356 61,417.13 08/01/2029 - 893.75 893.75 893.75 938.44 02/01/2030 55,000 00 3.250% 893.75 55,893.75 55,893.75 58,688.44 59,626.88 Total $745,000.00 $166,838.96 $911,838.96 (9,521.46) 5902,317.50 5947,433.38 - Significant Dates Dated 7/01/2014 First Coupon Date 2/01/2015 Yield Statistics Bond Year Dollars $6,494.58 Average Life 8.718 Years Average Coupon 2.5688940% Net Interest Cost (NIC) 2.7065471% True Interest Cost (TIC) 2.6997133% Bond Yield for Arbitrage Purposes 2.5560287% All Inclusive Cost (AIC) 2.9916814% Series 2014A GO Imp Bonds I Improvement Portion 1 5/ 212014 1 12;38 PM EHLERS ttAUI HS. IN F:.i ii L I ( 1 1 t N A N , : F City of Hopkins, Minnesota $745,000 General Obligation Improvement Bonds, Series 2014A Improvement Portion Assumes Current Market BQ AA Rates plus 25bps Debt Service Schedule Dated First Coupon Date Yield Statistics 7/012014 21012015 Bond Year Dollars $6.49458 Averye Life_ _ 8.718 Years Net New 105% of Net Interest Cost (NIC) 27065471% True interest Cost (TIC) 26997133% Date Principal Coupon Interest Total P+I CIF DIS Total Assessments Water Storrs Sewer Levy/(Surplus) 02/0112015 9,52146 9,52146 (9,52146) - 02/01/2016 50,00000 0 750 % 16,322 50 66,322 50 - 66,322 50 69,638 63 19,348 76 14,952 DO 6,02000 29,317 87 02/0112017 50,000 00 1 000% 15,947 50 65,94750 - 65,947 50 69,244 88 19,348 76 14,952 00 6,02000 28,924 12 02/01/2018 50,000 00 1300% 15,447 50 65,447 50 65,447 50 68,719 88 19,348 76 14,95200 6,02000 28,399 12 02/01/2019 50,000 00 1 550% 14,797 50 64,797 50 64,797 50 68,037 38 19,348 75 14,95200 6.02000 27,716 63 02/01/2020 50,00000 1 ROD% 14,022 50 64,022 50 - 64,022 50 67,223 63 19,348 75 14,95200 6,02000 26,90288 02/DI/2021 45,00000 2000% 13,12250 58,12250 - 58,12250 61,02863 11,51549 14,95200 6,02000 28,54114 02/01/2022 45,00000 2 100% 12,222 50 57,222 50 57,222 50 60,083 63 11,515 50 14,95200 6,02000 27,5% 13 02/01/2023 45,00000 2 300% 11,277 50 56,277 50 - 56,277 50 59,091 38 11,515 48 14,952 00 6,02000 26,603 90 02/01/2024 45,000 00 2 450°/ 10,242 50 55,242 50 - 55,242 50 58.00,11 63 11,515 49 14 95200 6,02000 25,517 14 02/01/2025 50,00000 2550% 9,14000 59,14000 - 59,140 UU 62,09700 11,51549 14,95200 6,02000 29,60951 02/01/2026 50,00000 2 MI 7,86500 57,865 00 - 57,865 00 60,758 25 11,515 50 14,95200 6,020.00 28,270.75 02/01/2027 50,000 00 2 80011. 6,51500 56,515.110 56,515 00 59,340 75 11,515 49 14,95200 6,02000 26,853 26 02/DI2028 55,00000 2950% 5,11500 60,11500 - 60,115 DD 63,12075 11,51549 14,95200 6,02000 30,63326 02/012029 55,000 00 3 100°/. 3,49250 58,492 50 - 58,492 50 61,417 13 11,515 49 14,95200 6,02000 28,92964 02/012030 55,000 00 3 250% 1,78750 56,787 50 56,787 50 59,626 88 11,515 50 14,95200 6,02000 27,139 38 Total S745,000.00 5166,838.96 5911,838.96 (9,521.46) 5902,317.50 S947A33.38 5211,898.70 5224,280.00 $90,300.00 $420,954.68 Significant Dates Dated First Coupon Date Yield Statistics 7/012014 21012015 Bond Year Dollars $6.49458 Averye Life_ _ 8.718 Years Average Coupon 2 5688940% Net Interest Cost (NIC) 27065471% True interest Cost (TIC) 26997133% Bond Yield for Arbitrage Purposes 2 5560287/ All Inclusive Cost (AIC) 29916914% SaAr%2010 GO Imp Bonds I Imporemanl Poruw 1 5/212018 1 12.38 PM 'EHLERS I.rADI.NS IN PUNI.IC IINANI.1 City of Hopkins, Minnesota $1,195,000 General Obligation Improvement Bonds, Series 2014A Street Reconstruction Portion Assumes Current Market BQ AA Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New DIS 105% of Total Fiscal Total 07/01/2014 7/01/2014 2/01/2015 Bond Year Dollars $10,737.08 Average Life 8,985 Years Average Coupon 25905390% 02/01/2015 2.7240948% True Interest Cost (TIC) 15,615.83 15,615 83 (15,615 83) 2.5560287% - 3.0026511% 08/01/2015 - - 13,385.00 13,385 00 - 13,385.00 14,054.25 02/01/2016 70,000 00 0.750% 13,385.00 83,385 00 83,385 00 87,554.25 101,608.50 08/01/2016 - 13,122.50 13.12250 13,122.50 13,77863 02/01/2017 70,000 00 1000% 13,122 50 83,122.50 83,122 50 87,278.63 101,057 25 08/01/2017 - 12,772.50 12,772.50 12,772.50 13,411.13 02/01/2018 70,000 00 1300% 12,772 50 82,772.50 82,772.50 86,911.13 100,322 25 08/01/2018 - 12 317.50 12,317.50 12,317.50 12,933.38 02/01/2019 75,000.00 1.550% 12,317.50 87,317.50 87,317.50 91,683.38 104,616.75 08/01/2019 11,736.25 11,736.25 11,736.25 12,323 06 02/01/2020 75,000.00 1,800% 11,736.25 86,736.25 86,73625 91,07306 103,396.13 08/01/2020 11,061.25 11,061.25 11,061.25 11,614.31 - 02/01/2021 75,00000 2.000% 11,061.25 86,06125 86,061.25 90,364.31 101,978.63 08/01/2021 - - 10,311.25 10,311 25 10,311 25 10,826 81 02/01/2022 75,000.00 2.100% 10,311.25 85,31125 85,311.25 89,576.81 100,403.63 08/01/2022 - 9,523.75 9,52375 9,523.75 9,999.94 - 02/01/2023 80,000.00 2300% 9,523.75 89,523 75 89,523.75 93,999 94 103,999.88 08/01/2023 - 8,603.75 8,603.75 8,603,75 9,033.94 02/01/2024 80,000,00 2.450% 8,603.75 88,603,75 88,603 75 93,033.94 102 067,89 08/01/2024 - 7,623.75 7,623,75 7,623.75 8,00494 - 02/01/2025 80,000.00 2.550% 7,623.75 87,623 75 87,623 75 92,004 94 100,009.88 08/01/2025 - 6,60375 6,603.75 6,603.75 6,933.94 02/01/2026 85,000,00 2700% 6,603.75 91,603.75 91,603.75 96,183.94 103,117.88 08/01/2026 - 5,456.25 5,456.25 5.456-25 5,729.06 - 02/01/2027 85,000.00 2.800% 5,456.25 90,456.25 90,456 25 94,979 06 100,708.13 08/01/2027 - 4,266.25 4,266.25 4,266.25 4,479.56 02/01/2028 90,000.00 2.9500/6 4,266.25 94,266.25 94,266.25 98,979.56 103,459.13 08/01/2028 2,93875 2,938.75 2,938.75 3,085.69 02/01/2029 90,000.00 3.100% 2,938.75 92,938.75 92,938.75 97,585.69 100,671,38 08/01/2029 - 1,543,75 1,543.75 1,543.75 1,620.94 02/01/2030 95,000.00 3.250% 1,543.75 96,543.75 96,543.75 101,370,94 102,991.88 Total $1,195,000.00 - $278,148.33 $1,473,148.33 (15,615.83) $1,457,532.50 $1,530,409.13 - Significant Dates Dated First Coupon Date Yield Statistics 7/01/2014 2/01/2015 Bond Year Dollars $10,737.08 Average Life 8,985 Years Average Coupon 25905390% Net Interest Cost (NIC) 2.7240948% True Interest Cost (TIC) 2.7185553% Bond Yield for Arbitrage Purposes 2.5560287% All Inclusive Cost (AIC) 3.0026511% Series 2014A GO Imp Bonds I Street RecanstruMlon Por 1 512W 14 1 12:38 PM EHLERS LE.ADFRS IN PURI IC FIN ANCF City of Hopkins, Minnesota $1,195,000 General Obligation Improvement Bonds, Series 2014A Street Reconstruction Portion Assumes Current Market BQ AA Rates plus 25bps Debt Service Schedule Total 51,195,000.00 $278,148.33 51,473.148.33 (15,615.83) $1,457,532.50 $1,530,409.13 3309,720.00 5124,700.00 51.095,989.13 Significant Dates Dated 7/01/2014 First Coupon Date 2/01/2015 Storm Date Principal Coupon Interest Total P+l CIF Net New DIS 105% of Total Water Sewer Levyl(Surplus) 02/01/2015 - Bund Yield for Arbitrage Purposes 15,61583 15,615 83 (15,615 83) - - 02/01/2016 7000000 0750% 26,770.00 96,77000 - 96,77000 101,60850 20,64800 8,31333 72,64717 02/01/2017 70,000 00 1000% 26,245.00 96,245 00 - 96,245 00 101,057.25 20,64800 8,313 33 72,095 92 02/01/2018 70,00000 1 300% 25,545 00 95,545 00 - 95,545 00 100,322 25 20,648 00 8,313 33 71,360 92 02/01/1019 75,000 00 1 550% 24,635 00 99,635 00 99,635 00 104.61675 20,648.00 8,31333 75,655 42 02/01/2020 75,000 00 1 800°/ 23,472 50 98,472 50 98,472 50 103,396 13 20,648 00 8,313 33 74,434 79 02/01/2021 75,000 00 2000% 22,122.50 97,122 50 - 97,122 50 101,978 63 20,648 00 8,31333 73,017 29 02/01/2022 75,000 00 2 100% 20,622 50 95,622 50 95,622 50 100,403 63 20,648 00 8,313 33 71,442 29 02/01/2023 80,000 00 2300% 19,047 50 99,047 50 - 99,047 50 103,999 88 20,648 00 8,313 33 75,038 54 02101/2024 80,000.00 2.450% 17,207 50 97,207 50 - 97,207 50 102,067 88 20,648.00 8,317 33 73,106.54 02/01/2025 80,00000 2 550% 15,247 50 95,247 50 - 95,247 50 100,009 88 20,648 00 8,313 33 71,048 54 02101/2026 85,00000 2 700% 13,207 50 98,207 50 98,207 50 103,117 88 20,648.00 8,313 33 74,156 54 02/01/2027 85,000 00 2 80000/ 10,912 50 95,912 50 - 95,912 50 100,708 13 20,648 00 8,313 33 71,746 79 02/01/2028 90,000 00 2 950% 8,532,50 98,532 50 - 98,532 50 103,459 13 20,648 00 8,313 33 74,497 79 02/01/2029 90.000 00 3 100°/ 5,877 50 95,R77 50 - 95,877 50 100,671 38 20,648 00 8,313 33 71,71004 02/01/2030 95,000 00 3 250% 3,08750 98,087 50 98,087 50 102,991 88 20,648 00 8,313 33 74,030 54 Total 51,195,000.00 $278,148.33 51,473.148.33 (15,615.83) $1,457,532.50 $1,530,409.13 3309,720.00 5124,700.00 51.095,989.13 Significant Dates Dated 7/01/2014 First Coupon Date 2/01/2015 Yield Statistics Bond Year Dollars $10,73708 Average Life 8 985 Years Average Coupon 2 59053901/6 Net Interest Cost (NIC) 27240948% True Interest Cost (TIC) 27195553% Bund Yield for Arbitrage Purposes 2 5560287% All Indusive Cost (A1C) 30026511% Sertes 2014A GO Imp Bonds I SI -n Roc Wmckn Per 1 512!20°4 1 12:38 PNI E_H LE_RS LEADERS IN PUBLIC FINANCE City of Hopkins, Minnesota $156,988 General Obligation Improvement Bonds, Series 2014A Issue Summary Equal P&I - 2% over TIC Assessments Date Principal Coupon Interest Total PA 12/31/2015 12,260 82 4.261% 7,087.94 19,348.76 12/31/2016 12,783.30 4.263% 6,56546 19,348 76 12/31/2017 13,328.26 4.265% 6,020,50 19,348.76 12/31/2018 13,896 67 4266% 5,45208 19,348.75 12/31/2019 14,489.55 4268% 4,85920 19,348 75 12/31/2020 7,274.71 4.700% 4,24078 11,515.49 12/31/2021 7,616.62 4.700% 3,89888 11,515.50 12/31/2022 7,974.60 4700% 3,540.88 11,515.48 12/31/2023 8,349.41 4.700% 3,16608 11,515 49 12/31/2024 8,741.83 4.700% 2,77366 11,515.49 12/31/2025 9,152.70 4.700% 2,362.80 11,515.50 12/31/2026 9,582.87 4.700% 1,93262 11,515 49 12/31/2027 10,033.27 4.700% 1,482 22 11,515.49 12/31/2028 10,504.83 4.700% 1,01066 11,515 49 12/31/2029 10,998.56 4.700% 516.94 11,515.50 Total $156,988.00 - $54,910.70 5211,898.70 Significant Dates Filing Date First Payment Date Series 2014A GO Imp Bonds I Issue Summary 1 5/ 2/2014 1 1:15 PM EHLERS tA[)i i .i Iri !'tilt. if: I Ir,ANCI 1/01/2015 12/31/2015 City of Hopkins, Minnesota $121,988 General Obligation Improvement Bonds, Series 2014A Assessments Equal P&I - 2% over TIC Assessments Date Principal Coupon Interest Total P+I 12/31/2015 5,78206 4,700% 5,73344 11,515.50 12/31/2016 6,053.81 4.70M. 5,461.68 11,515 49 12/31/2017 6,33934 4.700% 5,177 16 11,515.50 12/31/2018 6,63624 4.700% 4,87924 11,515 48 12/31/2019 6,948 15 4.700% 4,56734 11,515.49 12/31/2020 7,274.71 4,700% 4,240.78 11,515.49 12/31/2021 7,616.62 4.700% 3,89888 11,515.50 12/31/2022 7,974.60 4.700% 3,54088 11,515 48 12/31/2023 8,349.41 4.700% 3,16608 11,515 49 12/31/2024 8,741 83 4.700% 2,773.66 11,515.49 12/31/2025 9,152.70 4.700% 2,36280 11,515 50 12/31/2026 9,58287 4.700% 1,93262 11,515 49 12/31/2027 10,033 27 4.700% 1,482.22 11,515 49 12/3112028 10,504.83 4.700% 1,010.66 11,515.49 12/31/2029 10,998.56 4.700% 516.94 11,515.50 Total $121,988.00 - $50,744.38 $172,732.38 Dates Filing Date First Payment Date Series 2014A GO Imp Bonds I Assessments 1 5/ 2/2014 1 12:39 PM EHLERS 1 (6 N RS IN Pt! I; M, I INA WE 1/01/2015 12/31/2015 City of Hopkins, Minnesota $35,000 General Obligation Improvement Bonds, Series 2014A Church Assessments Assessments Date Principal Coupon Interest Total P+I 12/31/2015 6,478.76 3.870% 1,354.50 7,833.26 12/31/2016 6,729.49 3.870% 1,103.78 7,833.27 12/31/2017 6,989.92 3.870% 843.34 7,833.26 12/31/2018 7,26043 3.870% 572.84 7,833.27 12/31/2019 7,541.40 3.870% 291.86 7,833.26 Total $35,000.00 $4,166.32 $39,166.32 Significant Dates Filing Date First Payment Date Series 2014A GO Imp Bonds I Church Assessments 1 5/ 2/2014 1 1:14 PM EHLERS LEADERS IN PUBIC FINANCE 1/01/2015 12/31/2015