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CR2014-058 Approve First Reading of Ordinance amending section 1200 of the City Code (2)May 6, 2014 �6 Council Report 2014-045 City Of 11opkiP 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 ls` 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 • 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: S 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 21s` 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 443316v l JAB HP 110-86 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 443316v l JAB 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 " EHLERS & ASSOCIATES 1IVC 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 21st 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 • 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 14'h, 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 07/01/2014 1 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 .......�.... �..�. Cos.................................................................................................. ........................................................................................................................................................................................................................................................................................................................................................................................................................................................................................�...3.g.,....0�00 .......... ...'.... DePosittoCaPitalized Interest.(CIF).Fund.........................................................................................260.706.3 ...�... P.o sit taProJect Fundtgttg�g3�...... Total Uses Ehlers & Associates, Inc. $2,000,000.00 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 $6,000,000.00 Total Sources $6,000,000.00 Uses Of Funds Total DDCUnderwr.ite's Discot (1..000. %) 60,..000.00 ..... . u ........... o ssuan ..................................... posit Capital In(CIF)Fun. ....... ... ........ ePosittoJ Fund79 .. Total Uses Ehlers & Associates, Inc. $6,000,000.00 Page 9 APPENDIX B PROPOSED 2014 SROP BOND ISSUES Debt Service Schedule Total $2,000,000.00 - $463,450.63 $2,463,450.63 $2,586,623.16 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 ..............a.......................................................................................................................................................................................................................................................................... 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............................................................... ............ 9,586.25 .................................................................................... 19,586.25 ..�..................................................................._.., 20,65.56 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 a.......................................................................................................................................................................................................................................................................... 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 ................................................................_................................................._.............................1.2.. ....69 ........................................ ...7.50 �............................................. �.3................................................................. _., 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 ...............................................a............................................................................................................................................................................................................................................................................. 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 ................................................................_................................................._........................................... 2,518.75 ...........................................................................................� 2,518.75 ..644.................................................................._.., 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 Total $6,000,000.00 - $1,540,782.29 $7,540,782.29 $7,917,821.40 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 ..................a........................................................................................................................................................................................................................................................................................... 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 08/01/20...................................................................._................................................_..................................�4...� � ........................................4.............................................. 57.50 ,957.50 �....3..............................................................._... 02/01/2021 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 ..................a........................................................................................................................................................................................................................................................................................... 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 - 02/01/2024 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 08/01/20......................................................................_................................................_..................................42.......�..�. ...................................4......... .25 ..................................4.4..206...3..............................................................._... 2,101.25 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 ..................a........................................................................................................................................................................................................................................................................................... 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 08/01/20.3.............................................._................................._..............................400.00................................ ..............................8..820..0.........................................�_..� 8,400.00 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 ITFROM Ef LEADIERS IIN PUBLIC FINANCE *7#V =, I PM Stacie Kvilvang Senior Financial Advisor/Di rector m Jason Aarsvold IM Shelly Eldridge Executive 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 ands: 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 1jeconstruuclio Portion of theBonds: 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 theamount 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 ENIV 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 Term/Call Feature: The Bonds are being issued for a 16 year term. Principal on the Bonds will be due on February I in the years 2016 through 2030. Interest is payable every six months beginning February 1, 2015. The Bonds maturing oaa 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 " @iA/ +". 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 ids; 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 . ..... . ....... . .... a. ..... Presale Report May 6, 2014 City of Hopkins, Minnesota Rage 2 cast of the original bid either a � p or r down. Presale Report May 6, 2014 City of Hopkins, Minnesota Page 3 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. CO 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. �www� ............... .-------- ArbitrageMonitoring: . 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 hove 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 .- =25 = IT -To WA Send Public Hearing Notice to Newspaper .......... . . ..... . . . . . . . . . . . ........... . ...... . . . ....... . ............................ -------- -- .............................. . . . . . . . . . . . . . . . . . ..... (651) 697-8506 April 3, 2014 . . . ...... . ................... Date of Publication of Public Hearing Notice -1-111. 1 .............. . . . . ............ ..... ... ..... -------------------- Disclosure Coordinator: Jen Chapman April 11, 2014 Public Hearing on Street Reconstruction Plan (651) 697-8523 May 6, 2014 City Council Calls for Sale of Bonds .......... May 6, 2014 - — -------------- 30-Day Reverse Referendum Period Ends 11111-1111111- .................. .............. 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; June 17, 2014 . . ................. ..................................................... .. . . . . ..... ........ ..... Estimated Closing Date: ........... ..... .......... - ....... July 1, 2014 -------- . . . ............... .......... Attachments Sources and Uses of Funds Proposed Debt Service Schedule Resolution Authorizing Ehlers to Proceed With Bond Sale all 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, Minnesot.a $1,940,000 General Obligation Improvement Bonds, Series 2014A Issue Summary Assumes Current Market BQ AA Rates plus 25bps 111 Is =.- 411YAWK11 Else - - — I I . Street Improvement Reconstruction Issue Portion Portion Summary Par Arnount of'Bonds $7115,000 00 $1,940,000.00 Prepaid Assessinents 38,404.00 38,404,00 Sa.nitary Sewer F: unds 36,000.00 36,000 00 OusWe Fundng 89,000 00 8%o0a612 Total Sources $908,404.00 $1,195,000.00 $2,103,404.00 Ntal Undenwiter'sDiscount (1,200%) 8,94000 W,34(WO 23,28000 Costs of Issuance 16,128,87 25,87113 42,000A Deposit to CapAafiied lnterest (CIF) Fund 9,521,46 15,6 � 5 83 25,137,29 Deposit to Project Consb ueUon Furid 871,000,00 1,140,22S6 ",111,225,0 Rounding Airnount 2,81367 (1,051,96) 11,76171 Total Uses $908,404.00 $2,103,404.00 Sefies 20144 GO knp IBoinds I Vssue Suffmmaiiy 9 51212014 1 1238 RM E 1--11 E RIS LEADIERS II IN ILIRLIC n UIAINC,11 City of Hopkins, Minnesota $1,940,000 General Obligation Improvement Bonds, Series 2014A Issue Summary Assumes Current Market BQ AA Rates plus 25bps FIMIPWIMM�1=6 � Date Principal Coupon Interest Total P+1 CIF Net New D/S 105% of Total . ....... . . . . Fiscal Total 07/0 � /20 41 02/01/2015 25,13729 25,1;3"7.219 (25,137,29) 08/0112015 21,546 25 21,506,2.5 21,.`506.25 22,623.56 02./01/200 6 120,000 00 0,750% 2ll,54625 1.4 �,546.25 14^ ,5�6 25 148,623.56 ll711 247 1,3 08/01/2016 - 21_,096.25 2 1,09625 2 1,096 25 22.151.06 02/01/2017 120,00000 1000% 2109625 10V,096,25 101,096.25 1081,15'106 70,302,13 0 8/0 120 7 - - 20,496,25 20,49625 20,496.25 21,521,06 02/01/2018 120,000 00 1.300% 20,49625 140,496,25 140,496.25 1.47,52t 06 169,042,13 08/01/2018 - 19,716-25 1%7" 6,25 19,"716,2.5 20,702,06 02/01/2019 125,000,00 1550% 19,716.2.5 144,716,25 144,71625 V51,952.06 172,654 13 08/0 t/2019 - 18,74750 181,,"0"7,50 18,747.50 19,684,88 02/01/2020 M,000 00 1,800% 18,747,50 103,747.50 143,74T50 150,934 88 170,619,75 08/0112020 - 17,62250 17,62250 1 7,622 50 181,`503 63 02/01/202.1 M,000 00 2,000% 17,62150 137,622.50 137,62250 144,503.63 63,007.25 08/01/2021 - 16,422.50 16,422 50 d6,422 50 17,2413.63 02/01/2022 120,000.00 2. fl 00% 1 6,422,50 36,422,50 136,422,50 143,243.63 M,4187,25 08/W/2022 15J62,50 1.5,162..`10 15,16w2..50 15,920.63 02/0➢/2023 125,000,00 2.300% 15,16x2,.50 100,162,.50 100J62.50 147,P0.63 163,091.25 08/01/202.3 13;71.5.00 1,3.72:5,00 13,725,00 14,011,21r 02/01/2024 12..5,000.00 2450% 13,725,00 138,725,00 138,72`5,00 10`x,661.25 160,072,50 08/01/2024 11,193,"75 12,193,75 12,193.75 12,803.44 02/01/2025 130,000,00 2,550% 12,193'75 142,193.75 142,193."75 109,303.044 162,106.88 08101/2025 10,53625 W,536 25 W,536 25 11,06106 02/01/2026 135,000,00 2.700% 10,536,25 4 5,536 25 145,536,25 152,8 1 3 06 163,876.1::3 081/0112.026 8,71375 81,71'3.°7.5 8,71"1.7r 9,14904 02101/202'7 135,00000 2,800% 81;713.75 3,75 143,7 13,75 143,713.75 1150,899,44 16n0,0448881 08/01/2027 6,823,75 6,823,75 6,823.75 7,164,94 - 02/11/2028 105,000.00 2.950% 6,82375 151,823,75 151,823,75 1."19,410.94 166,57989 08/01/2028 4,68500 4,685,00 4,685.00 4,919,25 02/01/2029 W5,000 00 3.100°% 4,685,00 149,685 00 149,685 00 1:;7,169.25 162,088.50 08/M/2029 2,437,50 2,437,50 2,437.50 2,559,38 02/01!2030 150,000,00 3.250% 2,437.50 152,437,50 152,43750 160,05938 162,61835 Total $1,940,000.00 $444,987.29 $2,384,987.29 (25,137.29) $2,359,850,00 . .......... $2,477,842,50 Significant Dates ­ ..... . . . . .......... Dated Fu st (.2oupon Date Yield Statistics Bond Year Doflars Average I.Ate Average Coupon Net t nterest Cost (NIC) True lnmix eM Cost (11C) Bond Yidd for Ar Wrage Puilpms AH Inctusive Cost (AIC) Seidee 20MA GO Imp Bondz V Issue Summary � 51212014 � Q38 PIMA LEADERS 114 PUMAC HNAINCE 7/01 /2014 2/01/2015 $17,231,67 8,882 Years 2.58323810¢%1 I'M481 1% 2.7114443% 2,5560287% 2.9985114% A fn tIll C aIt "q "rr. I 1tl C{ C 10 cr� C, c Ill - 11 Cv FY j� 'Xl CA C", I a, I' -f- Fir I I m M. 'I llL "I In "I M 'R M �' "I M I'll "I 'I, m In "I "I :11 M I I X "I M 11 1, In I') c' In ... ...... ... llrY frl In qn 11%1%I 1% In' ll� c C? C" 1.1 c".1 1:1 rl C) Cl 1} 1:1, C", c -t 'n Cl 1-11 C", Cl 11-1 c J CCl CD C, C1 D C, RD 1:1 Cr C", C, Cl C" Cl C� k::R CJ rl I", C:71 I. "0 IC q, 11 � ll� 0, Cl .1 CP Cl Cl C� 01 CA C" Re, U ly esti 111), 2 12 '1 w '1� l"l tl C114 Ill "I - — I "I cl v ,I- Cl It "I Cl 1 4 1:1 lll� C� "I 1� N M �D n, cl� c �9 s9 �� �2 1 0 C> Z Cl CD "D 1=1r} C""1C, C' C' c C' llt In llY ac "Y C-� c., C} 'I n ' 'R C� --I CXti �y 1, M Cl� It 't Ir " Il 'j crt ,k. C"I IK' "i, M C) It lfl� 1% -1, "S 4 tl Y C'F "), 'J' �c' cq 'J1 �art � IQ I'll R. C4 I : 12 0, C,D ID "D C C, CD C, 'CY CJC' n. en 'D C'tl n CD C. C� CJ ":D! r� WI eD q:. (I C't 1, q (I �R I, K- c,' 0: " , , —rt '!" C � 11 CP, 19. 1 V, Il I q ^1- r- r - � C� ' " 't, I i w� 'l. In C� It- 'R, "�' Cato Re 1, "1 C4 Cl I i rl I I r, 4, 'D , i - 4 4 c 4 P^y'I l4"1 llV "n Cl C,C) llL In lllY In .� CJ � cq "I "n 0 I"- PVI I" r1� RRI CTI In Oe It - r - C -l. ID), It, ld� rli ea i1L I "I C'4 C' — C'3 r'4 e '. o I.-, a � e q 1 1.11 �� � I'll '.�e C> C) C> C, eZI "D Ca CD C, Cv I, `,', Cl CJ ML C, C:) ID In CJ eD 1J �R 11 t' IDllt 11 Cl 1� R7'Rr� II'0t . rq 11 — — — r3 fq " I q C4 rq fq CV' In I'l C. C" I'D c -' I a, Cl C, C I", C, ":y) C' c C, cl c :,} C, C. b C� c"I 17 1 C CD C, C, C", Ca Cl c' C'C CJ C, CD Cl C'J C." "I C, I.." l.", CS Cl. C'4 C C� C", CC"?� Cll � '-" c."' c.", C', eD el -I 11)Cl Ce "I "' 11 "1 'Il C." R'tl 'I ' N mW4 4 1 q ... ... ... q 1, 1 lltl Ile C 4 C'� C 4 C4 19 �l "I '5 C' C, C, 'D Cy cl c CD Cl C, c' C, c', CC, C' C, 'C" 'D Ptl ftV aha C", C" Cl Cl C" C" ¢w etl C=1 C, C' C, C' ID C' CD I In tYb C'l L KI It 1 4 Ir Ul cl a'R u Qt 9 to Ep T" City of Hopkins, Minnesota $745,000 General Obligation Improvement Bonds, Series 2014A Improvement Portion Assumes Current Market BQ AA Rates plus 25bps 'Slqr�fficant Dates Dated Frst Coupon Date Yield Statistics Bond Year D(fflars ki'moge �A'e d%vCmg'c cmpm Net Interest Cost (NIC) Tnx Interest Cost (TIC) Bond YieW for ArbWagc Pu rposcs AH InOusuvv. Cost (AK ) Sehes2N4AG0knjpBov)ds I IrnpvoveimrnVPoirfion 0 5/212014 � 112x38 FIM I ILERS LRJA,Wi IN NNfl l" NANCL 7/01/2014 2/91/1015 $6,49458 8,718 Years 25688940%, 23065471% 16997133% 25560287% 2.99168314% Net New 105% of Date P D/S Total Fiscal Total 07/01/2014 02/01/2015 9,521.46 9,521 46 (9,52146) 08/01/2015 8,16125 8, 61.25 - 8,161,25 5,5693) 02/01/2016 50,000 00 0750% 8,161,25 58,161 25 58,16125 61,06931 69,638.63 08/01/2016 - 7,973.'75 7,97375 7,973.75 8,37244 02101120 7 50,000.00 1000% 7,973,75 57,973 '75 57,973 75 60,87244 69,24488 05/01/2017 7,72375 "7,72'3.75 7,'423.75 8,109,94 02/01/2018 50,000,00 1,300% '7,723,75 57,72375 57,72375 60,609,94 68,719,88 08/01/2018 7,39575 7,398.75 7398,75 7,76869 02/01/2019 50,000,00 1,550% 7,395.75 57,39875 57,398.75 60,268,69 68,037.38 0810112,019 7,0111,2:.5 701 125 7,011 25 7,361,81 02/01/1020 50,000,00 1800% 7,01125 57,01125 57011,25 59,8M 81 67,223,63 08/01/1020 6,561.25 6,56125 6,56125 6,88931 02/01/2021 45,000.00 2,000% 6,561.25 51,561 25 51,56125 54,13931 61,028,63 08/01/2021 6,111 25 6,111.25 6,111,25 6,416,81 02/01/2022 45000,00 2,100% 6,11'1.25 51,1 1125 51,111.25 53,666,81 60,083,63 08/01/2022 -5,638 75 5,63875 5,638, 75 5,92069 02/01/2023 45,00000 25300% 5,638,75 50,63875 50,638,75 53,1'89.69 59,091.38 08/01/2023 5,121.25 5,121,25 5,12125 5,.377_.31 - 02../91/2024 45,(9)0,00 24150%5,'121.25 S), 1'21.25 50,12125 52,62731 58,004.63 08/01/2024 4,570,00 4,570 00 4,57000 4,79850 02/011'2025 50,000.00 2550% 4,570M 54,57000 54,57000 57,298,50 62,097 00 08/01/2025 - 3,932.50 3,932,50 3,932.50 4,129,13 02/01/2026 50'009.0) 2700% 3,932,50 53,932 50 53,93250 56,629,13 60,75825 08/01/2026 3,257.50 3,257 50 3,25750 3,420,39 - 02/01/202.,B 50,000,00 2,800% 3,257,50 53,25750 53,257.50 55,920,38 59,34075 08/01/2027 - 2,557,50 2,557 50 2,557.50 2,685 38 02/01/2028 55,000.00 2950% 2,557,50 51',55/.50 57,557.50 69,4,'3535 63,129.75 08/01/2028 1,746,25 1,74625 1,746,25 1,833.56 02101/2029 35,000,00 :3100% 1,746.25 56,74625 56,74625 59,583,56 61,417 13 08()112029 893.75 893,75 893.75 938,44 02/01/2030 55,00000 3250% 893.75 55,89335 55,893.75 58,68844 59,626M Total $745,000.00 - $166,838.96 $911,838.96 (9,521.46) $902,317.50 $947,433.38 'Slqr�fficant Dates Dated Frst Coupon Date Yield Statistics Bond Year D(fflars ki'moge �A'e d%vCmg'c cmpm Net Interest Cost (NIC) Tnx Interest Cost (TIC) Bond YieW for ArbWagc Pu rposcs AH InOusuvv. Cost (AK ) Sehes2N4AG0knjpBov)ds I IrnpvoveimrnVPoirfion 0 5/212014 � 112x38 FIM I ILERS LRJA,Wi IN NNfl l" NANCL 7/01/2014 2/91/1015 $6,49458 8,718 Years 25688940%, 23065471% 16997133% 25560287% 2.99168314% Improvement Portion Assumes Current Market BQ AA Rates plus 25bps Debt Service Schedule §1�1 Dated 7/01/2114 Nt Ccue�on Date 2/04(201.`4 Yield Statistics Net New 105% of A,..p,, Li& 11186 Aveya4,,c Cuiqe�n 2 %U940% Date Principal Coupon Interest Total P+l CIF DIS Total Assessments Water Storm.maSewer Levy/(Surplus) 02/0 120 It 9,52146 'P,'5214r, (9,52146) 02/01/2016 50,000 (10 !1.751 K1,322 50, 66,322'.50 66,32250 61,63K63 11^3,348.76 114,557 .01 6,020 CXP 29, W 81 02/01/20117 90,110 .102 I ON% 1',5„94750 6,,947'rO 62.,94"2.50 69,244 83 119,34876 114'9152 (W 6,4X200(4 29,92412 02/01/2WH 50,100.11 1.3101% 15,447 50 rvtijl f 50 65,44750 68,719 89 1'9,548 76 114,952 oo 6,020 00 m,399 12 02/0112.0111) 51,001.071 1..550%, 4,V97 50 64,797'-°i1 64,TP7 T0 6x8,037.326 119,_g48.75 H,9.52.01 6,02000 27,71663 02/01/2020 50,00000 11 800% 114,022 50 e4,022 5m 64,02250 67,223 63 fl9,348 75 H,952 00 6,020 00 26,902: 88 02/0 U2021 45,00000 2000% 13,122502 5t,',, 1122 w 59,122 50 611,02863 � .51549 id,x4t2 00 6;020.121 28,541 14 02/011/24222 45,CKN) 00 2100% 12,222 to 2,7„722,15'0 57,222 50 60,03 63 11 ,0 114,9',"1211 6,02D 00 2'7,5'xj, 13 02/N/2,023 45,000 00 2301' 1111,277 50 56,2177% 56,277 50 59,0911 38 11,511548 t4,952 00 61,020.00 26,60190 02/01/2024 45,00000 2450% 110„24250 55,242 50 55,24225 '186,41124.63 J 1 fl 5 49 04,952:.10 6,020 00 ?5,511'14 02/011/20425 50,00000 255'0% 1), 111000 55„140100 114000 62,09700 11,511549 114,9'1200 4"020 oo 29,6x'79 111 02M/2026 501,001 :044 2700% 7,865 00 57,865 W 57,865 00 (,O,Yi�e 216 11,51 5 50 Do ("o2.o oo 28,270 75 02/011 /2027 50,000 oo 2 900% 6j IIt 00 56,51500 56;,51.5.04,7 59,,340 7.5 11,51.5.4^9 14,952 oo ("020 0o 26,953 26 02M/2.028 5t,010000 7950% 5,1114'.041 60,11: 00 w, 115 oo 63,11:11.7,4 11,51549 14,9,j2 go 6"020 oo 30,6-0 26 0X1./01(2029 55,000 0o 3 MIX, 1,492 50 58,492 50 '59,4°,1250 61,M H ➢,51 5 49 14,95'200 6,022.11 28,°;725.64 02M/2030 r,,,0410 00 1250% 11,71711, 56,787 50 56,797'..x0 88 11,515 50 14,9.'12.00' 6,020 w 27„1;69.38 rMA $745,Owno S�66,838,96 $9 � IA39,96 (9,5M,46) $902,317,50 $947,433,38 S21 �,WJS,70 S224,280 GO �'90,3co,00 $420,954,68 §1�1 Dated 7/01/2114 Nt Ccue�on Date 2/04(201.`4 Yield Statistics MjiM YciK D011ais $6,494 5'A A,..p,, Li& 11186 Aveya4,,c Cuiqe�n 2 %U940% Net IntcrcS1 co,,,C (Mc) 2,7065471°/ 11,11- miOuEna CWt (FIC) 26997133% J3nnd Vcld foii Aibitaf,,v, Puipuvnq 2 5560287% AM Co,� (AIQ 29916814% I hiljam(" 11 W212M 1 MISPIM EJIIi 117, E, It "S" I [AIRFU M 110131,10 1 WAHU� City of Hopkins, Minnesota .. . ............. ........... ... ..... Date Principal Coupon Interest Total P+l CIF Net New D/S 105%® of Total Fiscal Total 07/01/2014 02/00015 15,615,83 15,615 83 (15,6 It 5 83) 28/21/2215 13,385,00 13,385 00 13,385,00 14,054,25 - 22/21/24116 70'222 00 0,750% 13,385.00 83,385,00 83,385 00 87,554,25 101,60850 08/0122016 13J22.50 13,122,52 13,12.2...52 13,778,63 02/01/2017 70,00000 1,0100% 13,1:_"3'_`0 83,122.50 83,12.3.50 87,278,63 W1,05°7,25 08/01/2017 112,77150 12,772.50 12,77150 13,4t L13 02/01/2018 70,00000 1.300% 12,772,50 82,77250 82,772.50 83x,911.13 1412,322..2.,5 08/01/2018 -12,317.50 12.,:117.50 1 2,'; 17.50 12,933,38 22/21./2.217 75,6922.22 1550% 12.,:'317.52 87,:117.52 87,3 t 7.5 091,68338 104,61635 08/21/2019 11,736 25 11736.215 17,736.2.5 12,323,06 22/2'1/2.220 75,00000 1.800% 11,736 25 86,736.25 86,73625 91,073 06 12'3,376.13 08/01/2020 11,261.215 t1,06t 25 t 1,061,25 11,5171.:#1 02/01/202 1 75,00000 1000% 11,261.2.5 86,061,25 86,26;1,25 90,364,31 10 1,978 63 0810 02021 10,31125 10,31 L25 10,311 25 10,8".5,8'1 02/0 02022 75,00000 2 100% 10,311 25 85,31'1,75 8"5,5:11'11,25 819,:577x.81 1610,403,63 08/0 02022 9,523,75 9,52375 9,523,75 9,99994 02/01/2023 80,000m 2.300% 9,523 75 89,52375 89,52335 93,999,94 123',999,88 28/21/222:3' 8,603,75 8,62_';,7`5 8,603,75 9,03194 02/21(:''024 80,000m 24520/ 8,603,75 88,60-3 75 88,603,75 93,033,94 102,067,88 08/01/2024 7,623.75 7,623,75 7,62375 8,004,94 02101/2025 80,000m 2550% 7,62375 87,62375 87,62375 92,004 94 122,207,813 08/411/2025 6,60375 6,60375 6,603,75 6,933,94 02/01/2026 85,00000 2.700% 6,603,75 91,603,75 91,603 75 96,183.94 103,117.818 08/01/2026 - 5,45625 5,456-25 5,456 25 5,729,06 02/01/2027 85,022 00 2800% 5,456.25 90,45625 90,415625 94,97906 120,"708.13 08/21/2027 4,266.25 4,26625 4,266.25 4,417956 02/01/2028 72,0120.00 2.950% 4,26625 94,26625 94,26625 98,979.56 1O3,457.1 3 08/01/2028 - 2,93875 2,938.75 2,938.75 3,08569 02/01/2029 761'000'612 3 100% 2,93835 92,938.75 92,938.75 7"7,5185,67 1.22,671,:38 08/01/2029 1,543,75 1,54375 1,54375 1,620.941 02/01/2030 95,000,00 1250% 1,543.75 96,543.75 96,543.75 . .......... 121,372,74 102,991,88 Total $1,195,000.00 . . ......... $278,148.33 $1,473,148.33 (15,615.83) $1,457,532.50 $1,530,409.13 Dated Fhst Cloupon Date Bond Ymn Doflais Average Lffe Average Coupon Net Interest Cost (NIQ Tyre 1111telles4 Coat ('11c) ]Bond YieW for Atbitrage Purposes AU IneNsive Cost (A K.1) Sei[Ies 209^ A GO hmp Bonds 11 &reet ReconstfuctIon Por � 5/ 212. a M 11 12:38 IFIM E11,1,111 n 1�Ei. IRS a E A DIFIRS IN PUM Ir F INA I 7/01/2014 2101/2015 $12,,73T08 8,985 Years 2,5905390% 23240948% 2.7185131341 % 2.5560287% '3.0026511% Street Reconstruction Portion Assumes Current Market BQ AA Rates plus 25bps Daie,d Fi sP Coqpon, Dale Yield Statistic Bond y eclair 7fDsb11[,ys, A lcitllcUE'v, Aveiaj:, e, 0m0ion No hdciesl (-,olil (10(") I'll uI nlee,,e ("osP (11Q Bund Yicld fiC, A rblihige 111w0poses AII fi-kniv,, CmC (AH,) I I 50MM I 17, 18 F-1,II-L-E-RIS IEMD'ERS IN RUM, FINANGE 7/011/2;0114 2/0 02015 510,73"1'.08 995 'Nems, 25905390% 2 7240948%. 2..7105553 f 2 5560287% 3.0026151 I,/,, Storm Date Principal Coupon Interest Total P+1 wwwClF Flet New DIS 105%ofTotal Water Sewer Levy/ Surplus) 1,6158 115,6 PP 93 05,615,83) 02/01/201(, 7 ,000 Da 0 750%, 26,77000 96,77000 96,77000 1 CJ I,(jng 50 20,648 00 8,-" 13 3 72,617 17 02101/2017 70,000 00 10001/1, 26,24500 96621500 96,245.O`0 171,057,25 20,648 00 0,313,:13 72,09592 02/011/20 1 9 70,000,00 1.30'0'%„ 25,,,4°x 00 95,515 00 95,545 00 100,322: 25 20,649 00 0,313 33 71,36092 02/01/2019 "?5.,000 .00 1.550% 24,615 00 9)9,663:5.00 "5 w 1/614116 Tr 20,648,4W0 ...0,31"4 33 75,655 42 02/0112020 75,1Lm Cio 6 U001/1 23,472 50 98,472 50 98,47250 03,396 13 20,648 (KP 8,-113 -33 74,4:14.79 (12/010,021 75,000 00 2.000 1.2,1225O 97,112250 97,12250 1611,978 61 20,618 00 7,3 13 -"3 73,01729 02/0112022 75,000 00 212667"l. 20,622 50 95,02.5O 95,622 MJ 11004036:1 20,61800 0,31"1,33 71,442 21) 02AW2023 8IIP,wo 00 2 AM 119,04750 99,047 50 5O 1101,x199 88 20,648 00 8,113 33 75,038 51 02101/2024 40,000,00 2450% 117,207 50 97,207 50 97,207 50 11 02,0l67 F 9 20,648 00 '8,b13 33 73,10651 02M 11/2.02"'d HO,O41CP w 255O1, 115,24750 95,24750 95,247!50 1 00,mg F, 11 2C�,648 00 43',4113.3:1 711,04954 02/0 1112,026 V,5,wo 00 27001 1113,20"1.50 10,2:6"F,50 a 99,207 50 103,117 88 211,440'.00 8,3113 33 74,115f, 54 021011/2027 85,CPw 00 2800% 10,911250 95")1250 '95,91250 100,708 113 20,648 CPO '8,3113.'33 7'1,Y14679 02/0112028 90,O000 2950% 8,512 50 98,512 50 98,532 50 103,459.11:1 20,648 CPO '0,343.'33 74,49779 02/01/2029 911,000 00 3 1O0% 5,877 SO 95,37'1,50 95,877 50 100,671 I0 20,648 00 8,31133 71,7W 04 02/01/2030 95,000 00 3 2501/6 1,08750 98,087 50 99,087 50 102,991 20,648 00 8131",4.33 X4,030.",'54 $I,19.5,0l 00 S278,14833 M,473,14833 (15A,15.83) $1,457,532,50 9+1,530,409. d3.........%3019,720 O S124,70000 $110K98933 Daie,d Fi sP Coqpon, Dale Yield Statistic Bond y eclair 7fDsb11[,ys, A lcitllcUE'v, Aveiaj:, e, 0m0ion No hdciesl (-,olil (10(") I'll uI nlee,,e ("osP (11Q Bund Yicld fiC, A rblihige 111w0poses AII fi-kniv,, CmC (AH,) I I 50MM I 17, 18 F-1,II-L-E-RIS IEMD'ERS IN RUM, FINANGE 7/011/2;0114 2/0 02015 510,73"1'.08 995 'Nems, 25905390% 2 7240948%. 2..7105553 f 2 5560287% 3.0026151 I,/,, 1FjffMT-- =0 $156,988 General Obligation Improvement Bonds, Series 2014A Issue Summary Equal P&I - 2% over TIC Assessments Date Principal CouponInterest Total P+l 12/31/2015 12,260 82 4,.25'1 % 7,087.94 19,348,76 12/31/2.016 12,783.30 4.263% 6,56546 19,34876 12/3112017 13,328.26 4.265% 6,020,50 19,34876 12/311161111 13,896,67 4,266% 5,45208 19,348,75 12/3112"7117 14,489.55 4268%, 4,85920 19,348,75 12/3 1 /2020 7,27431 4,700% 4,24078 11,515,4,61 11/31/26111 7„516,52 4.700% 3,898 89 11,51550 12/31/2022 7,97460 4,700% 3,540.88 11,5 1 5.48 12:/.31 /2023 8;,347.41 4.700% 3,16608 11,51549 1.2/:3 fl /2024 8,741.83 4.700% 2,773 66 11,515.468 12/31/2,025 9,1501.'73 4."71D61% 2,362.80 11,515,50 12/31126125 9,582.87 4,700% 1,932,62 11 ,515 49 12/31/2027 10,03327 4300% 1,442' 22 11,515.49 12/31 /2028 110,504,83 4300% 1,010,66 11,51549 12/_31 /2029 10,998.56 4,700% 516.94 11,515,50 `Total $156,988M $54,910.70 $2111,898.70 Fdingl.)atc Fr,,A Payment Date SeHes2014AGOWF.Olainds 0 UssueSunwaiiy 1 5/2/2014 � 9:15 ISM EIH L 1/31/2315 12/31/2015 City of Hopkins, Minnesota $121,988 General Obligation Improvement Bonds, Series 2014 Assessments Equal P&I - 2% over TIC Assessments Date Principal Coupon Interest Total P+I 12/31122015 5,782,06 4700% 5,733,44 11,595,50 12/31/2016 6,053. 8 1 4,700% 5,461.68 99,515 49 12/31/20Y7 6,33834 4300% `b,177,116 1,515.50 ti 2/31/20 18 6,636,24 4.700% 4,87924 11,51548 9.2/31 /2181 9 6,948 15 4.700% 4,56734 11,5 9 5.49 12/31/2,020 7,274,71 4,700% 4,24038 1'1,515.17,4 12/3112021 7,6 6,62 4,71141% 3,898 88 11,515,50 12/3'1f2022 7,974M 4,700% 3,540,88 11,515,48 12/31/2,023 8,349.41 4 700% 3,16608 11,51549 12/31 /`21121 8,741, 83 4700% 2,773.66 11,515.49 12/31112,02<5 9952,70 441100 b 2,36280 11,515,50 12'/:3'1/2026 9,582,87 4300% 1,932 62 11,51549 1.2/31/10'27 W,033 27 43(10% 1,4 82.22 11 ,515 49 1.2/31/2.02.81 0,504,83 4.700% %010.66 11,515A9 12/31/2.029 10,171981.56 4300% 516.94 11,515.50 Total $121,988.00 - $50,74438 $172,73238 Significant Dates F)hing, Date Hrst Payment Date Sehes 20MA GO hPIP Bonds U AssessirneMs U 5/ ?J2014 � 12:39 FIM IE H L E 1111M I W � AIN �: IIIDPKNI� UVIANIA 1/0 U20 5 12/.31/2,015 City of Hopkins, Minnesota . . . ........ — N.T.M411IMOTM M-, 01,P] 0*N1R7UPTr*M--=M M [Q 17 0 Ig VAT -T - a Assessments Date Principal Coupon Interest Total P+I 12/3'1/'2015 6,47836 3 870% 1,354.50 7,833.26 12/31/2016 6,729 49 1870% 1,103.78 7,83127 12./31/'2.6117 6,9839.92 3.870% 84334 7,83126 12/31/20118 7,260,43 3,870% 572.84 7,83127 12/31/2019 7,541.40 3.8370% 29'1.86 7,833.26_ Total $35,000.00 $4,16632 $39,166.32 Fifing IDate 1/01/2015 First Payment Date 12/31/2611.5 Series 20144 GO Pon p Bonds U Church Assessmenirs 1 5/ MOM 1 1:: M PM E Iii, 1E RS LEADIMS M PUBLIC FINANCE