VII.2 Authorize the Sale of $3,490,000 General Obligation Improvement Bonds, Series 2017B, and Call for Public Hearing on Proposed Property Tax Abatement; Harkess (CR2017-067)April 18, 2017 City Council Report 2017-067
AUTHORIZE THE SALE OF $3,490,000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 2017B AND CALL FOR PUBLIC HEARING
ON PROPOSED PROPERTY TAX ABATEMENT
Proposed Action
Staff recommends approval of the following motions: (two separate motions)
Adopt Resolution 2017-036 Providing for the Sale of $3,490,000 General Obligation Series 2017B
Adopt Resolution 2017-037 Calling Public Hearing on Proposed Property Tax Abatement and Providing
for the Sale of General Obligations Tax Abatement Bonds, Series 2017B.
Overview
The 2017B Bonds will be issued for the Burns Park project and for various utility needs as outlined in the
City’s Capital Improvement Plan for 2017. The bonds are being issued pursuant to MS444 (utility bonds),
469.1814 (tax abatement bonds) and 475 (general bonding authority).
Financing for the projects will be through tax abatement and utility fund revenues. The City is required to
hold a public hearing on the abatement and the public purpose it serves. The hearing is scheduled for May
16, 2017.
The bond will have a 16 year life, maturing in 2032 with a call date of Feb 1, 2027 and are being issued
pursuant to Minnesota Statutes, Chapter 444 and 469 as referenced above. To obtain the lowest possible
interest cost we will solicit competitive bids for the purchase of the bonds. We will be requesting a rating
from Standard and Poor’s for these bonds.
Primary Issues
None
Staff Recommendation
Staff recommends approval of the resolutions and further recommends, along with the City’s financial
advisor, that we ask for a rating from Standard & Poors for the issue. The cost of the rating will be paid
with bond proceeds.
Supporting Information
Resolutions No. 2017-036 and 2017-038
Bond Pre-Sale Report
______________________________
Christine M. Harkess, CPA, CGFM
Finance Director
Financial Impact: $ 3,490,000
Budgeted: Y/N Yes
Source: Bond funds
Related Documents (CIP, ERP, etc.): CIP
Resolution No. 2017-036
Council Member _________________ introduced the following resolution and moved its adoption:
Resolution Providing for the Sale of
$3,490,000 General Obligation Bonds, Series 2017B
A. WHEREAS, the City Council of the City of Hopkins, Minnesota has heretofore determined that it is
necessary and expedient to issue the City's $3,490,000 General Obligation Bonds, Series 2017B (the
"Bonds"), to finance various utility projects and improvements to Burns Park in the City; and
B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its
independent municipal advisor for the Bonds in accordance with Minnesota Statutes, Section 475.60,
Subdivision 2(9);
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hopkins, Minnesota, as
follows:
1. Authorization; Findings. The City Council hereby authorizes Ehlers to assist the City for the sale of
the Bonds.
2. Meeting; Proposal Opening. The City Council shall meet at 7:00 p.m. on June 20, 2017, for the purpose
of considering proposals for and awarding the sale of the Bonds.
3. Official Statement. In connection with said sale, the officers or employees of the City are hereby
authorized to cooperate with Ehlers and participate in the preparation of an official statement for the
Bonds and to execute and deliver it on behalf of the City upon its completion.
The motion for the adoption of the foregoing resolution was duly seconded by City Council Member
_______________________ and, after full discussion thereof and upon a vote being taken thereon, the
following City Council Members voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted.
Dated this 18th day of April, 2017.
_____________________________________________
Amy Domeier, City Clerk
497900v2 JAE HP110-97
CITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2017-037
RESOLUTION CALLING PUBLIC HEARING ON A PROPOSED
PROPERTY TAX ABATEMENT AND PROVIDING FOR THE
SALE OF GENERAL OBLIGATION TAX ABATEMENT BONDS,
SERIES 2017B
BE IT RESOLVED By the City Council of the City of Hopkins, Minnesota (the “City”), as follows:
1. Pursuant to Minnesota Statutes, Sections 469.1812 through 469.1815, as amended (the
“Act”), the City may grant an abatement of all or a part of the taxes levied by the City on real property
within its boundaries (the “Abatement”) and issue general obligation bonds to finance public infrastructure
improvements; provided, however, that the City Council first holds a public hearing regarding the proposed
Abatement.
2. The City proposes to issue its General Obligation Tax Abatement Bonds, Series 2017B
(the “Bonds”), in the proposed aggregate principal amount of $1,905,000, to finance improvements to
Burnes Park in the City.
3. In accordance with the Act, the City Council hereby calls for a public hearing on Tuesday,
May 16, 2017, at approximately 7:00 P.M., to consider the proposed Abatement for the purposes described
herein.
4. The City Clerk is authorized and directed to publish a notice of public hearing in
substantially the form set forth in EXHIBIT A attached hereto in the official newspaper of the City more
than 10 days but less than 30 days before the date of the public hearing.
5. The City has retained Ehlers & Associates, Inc., in Roseville, Minnesota (“Ehlers”), as its
independent financial advisor for the Bonds and Ehlers is therefore authorized to solicit proposals in
accordance with Minnesota Statutes, Section 475.60, subdivision 2(9).
6. The City Council shall meet on Tuesday, June 20, 2017, at 7:00 PM, for the purpose of
considering sealed proposals for and awarding the sale of the Bonds.
7. In connection with said sale, the officers or employees are hereby authorized to take all
other actions needed to bring the proposed Abatement before the City Council and to cooperate with Ehlers
and participate in the preparation of an official statement for the Bonds and to execute and deliver it on
behalf of the City upon its completion.
Adopted by the City Council of the City of Hopkins, Minnesota, this 18th day of April, 2017.
Molly Cummings, Mayor
ATTEST:
Amy Domeier, City Clerk
A-1
497900v2 JAE HP110-97
EXHIBIT A
FORM OF NOTICE OF PUBLIC HEARING
CITY OF HOPKINS
COUNTY OF HENNEPIN
STATE OF MINNESOTA
NOTICE OF PUBLIC HEARING REGARDING A PROPOSED PROPERTY TAX
ABATEMENT
NOTICE IS HEREBY GIVEN that the City Council of the City of Hopkins, Minnesota (the “City”)
will hold a public hearing on Tuesday, May 16, 2017, at or after 7:00 P.M. in the City Council Chambers
at City Hall, 1010 First Street South in the City, concerning a proposal that the City abate all or a portion
of property taxes levied by the City on the properties located in the following areas of the City (the
“Property”):
24-117-22-12-0007 24-117-22-14-0091 24-117-22-14-0011
24-117-22-13-0004 24-117-22-14-0092 24-117-22-14-0010
24-117-22-14-0007 24-117-22-14-0093 24-117-22-14-0009
24-117-22-14-0101 24-117-22-41-0038 24-117-22-41-0039
24-117-22-14-0005 24-117-22-41-0027 24-117-22-41-0060
24-117-22-14-0100 24-117-22-14-0013
24-117-22-14-0004 24-117-22-14-0012
The total amount of the taxes proposed to be abated by the City on the Property is estimated to be
approximately $1,905,000. The City Council will consider the property tax abatement in connection with
financing certain public infrastructure improvements, including but not limited to improvements to Burnes
Park in the City.
At the time and place fixed for the public hearing, the City Council will give all persons who appear
at the hearing an opportunity to express their views with respect to the proposal. In addition, interested
persons may direct any questions or file written comments respecting the proposal with the City Clerk, at
or prior to said public hearing.
Dated: April 27, 2017
BY ORDER OF THE CITY COUNCIL OF THE
CITY OF HOPKINS, MINNESOTA
/s/ Amy Domeier
City Clerk
City of Hopkins, Minnesota
April 18, 2017
Pre-Sale Report for
City of Hopkins, Minnesota
$3,490,000 General Obligation Bonds, Series 2017B
Prepared by:
Stacie Kvilvang, CIPMA
Senior Municipal Advisor/Director
And
Jason Aarsvold, CIPMA
Municipal Advisor
And
James Lehnhoff
Municipal Advisor
Executive Summary of Proposed Debt
Proposed Issue: $3,490,000 General Obligation Bonds, Series 2017B
Purposes: The proposed 2017B Bond series includes two projects:
1. Tax Abatement Bonds ($1,905,000)
This portion of the Bonds is being issued for improvements to Burns Park.
The debt service will be paid from the City’s portion of property taxes
abated from specific parcels near and adjacent to Burns Park.
2. Utility Bonds ($1,585,000)
This portion of the Bonds is being issued for various utility needs in the
City. The debt service will be paid from sanitary sewer, water, and storm
sewer utility revenue.
Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters:
444 – Utility bonds
469.1814 – Tax abatement bonds
475 – General bonding authority
The Bonds will be general obligations of the City for which its full faith, credit and
taxing powers are pledged.
1. Tax Abatement Bonds ($1,905,000)
The City is required to hold a public hearing on the tax abatement and public
purpose it serves. The hearing is scheduled for May 16, 2017. In addition,
the amount of property taxes abated in any year may not exceed (1) 10% of
the net tax capacity (NTC) of the City or (2) $200,000, whichever is greater.
The City’s pay 2017 NTC is $20,507,581 and 10% equates to 2,050,758.
Therefore, the greater of these two calculations is 10% of the NTC.
The City’s payment on the proposed 2017B Tax Abatement Bond issue plus
the other outstanding abatement bond payments is approximately
$478,000/year, which is well below the statutory maximum of $2,050,758.
2. Utility Bonds ($1,585,000)
Minnesota Statutes Chapter 444 allows cities to issue debt without
limitations provided the debt service is expected to be paid from water and
sewer revenues.
Term/Call Feature: The Bonds are being issued for a(n) 16-year term. Principal on the Bonds will be
due on February 1 in the years 2019 through 2033. Interest is payable every six
months beginning February 1, 2018.
The Bonds maturing on and after February 1, 2027 will be subject to prepayment at
the discretion of the City on February 1, 2026 or any date thereafter.
Bank Qualification: Because the City is issuing, or expects to issue, more than $10,000,000 in tax-
exempt obligations during the calendar year, the City will be not able to designate
the Bonds as “bank qualified” obligations.
Rating: The City’s most recent bond issues were rated AA+ by Standard & Poor’s. 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.
Basis for
Recommendation:
Based on our knowledge of your situation, your objectives communicated to us, our
advisory relationship as well as characteristics of various municipal financing
options, we are recommending the issuance of general obligation bonds as a suitable
financing option for the following reasons:
- These are viable options available to finance these types of projects under
State law
- This is the most overall cost effective option that still maintains future
flexibility for the repayment of debt
- This coincides with the City’s past practices to finance these types of
projects with this type of debt issue.
Method of
Sale/Placement:
In order to obtain the lowest interest cost to the City, we will competitively bid the
purchase of the Bonds from local and national underwriters/banks.
We have included an allowance for discount bidding equal to 1.20000% 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: Under current market conditions, most investors in municipal
bonds prefer “premium” pricing structures. A premium is achieved when the
coupon for any maturity (the interest rate paid by the issuer) exceeds the yield to the
investor, resulting in a price paid that is greater than the face value of the bonds. The
sum of the amounts paid in excess of face value is considered “reoffering premium.”
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 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
no refunding opportunities at this time.
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 reportable 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 obligations/tax credit obligations, 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: The City expects to pay the Utility Bond debt service with utility funds. If utility
revenue is inadequate, the City may have to levy taxes to pay debt service on the
Bonds.
Other Service
Providers:
This debt issuance will require the engagement of other public finance service
providers. This section identifies those other service providers, so Ehlers can
coordinate their engagement on your behalf. Where you have previously used a
particular firm to provide a service, we have assumed that you will continue that
relationship. For services you have not previously required, we have identified a
service provider. Fees charged by these service providers will be paid from
proceeds of the obligation, unless you notify us that you wish to pay them from other
sources. Our pre-sale bond sizing includes a good faith estimate of these fees, so
their final fees may vary. If you have any questions pertaining to the identified
service providers or their role, or if you would like to use a different service provider
for any of the listed services please contact us.
Bond Attorney: Kennedy & Graven, Chartered
Paying Agent: Bond Trust Services Corporation
Rating Agency: S&P Global Markets
This presale report summarizes our understanding of the City’s objectives for the structure and terms of
this financing as of this date. As additional facts become known or capital markets conditions change, we
may need to modify the structure and/or terms of this financing to achieve results consistent with the City’s
objectives.
Proposed Debt Issuance Schedule
Pre-Sale Review by City Council and Call for
Public Hearing on Tax Abatement: April 18, 2017
Public Hearing on Tax Abatement: May 16, 2017
Distribute Official Statement: Week of June 5, 2017
Conference with Rating Agency: Week of June 12, 2017
City Council Meeting to Award Sale of the Bonds: June 20, 2017
Estimated Closing Date: July 13, 2017
Attachments
Sources and Uses of Funds
Proposed Debt Service Schedule
Resolution Authorizing Ehlers to Proceed with Bond Sale
Ehlers Contacts
Municipal Advisors: Stacie Kvilvang (651) 697-8506
Jason Aarsvold (651) 697-8512
James Lehnhoff (651) 697-8552
Disclosure Coordinator: Meghan Lindblom (651) 697-8549
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.
City of Hopkins, Minnesota
$3,490,000 General Obligation Bonds, Series 2017B
Issue Summary
Assumes Current Market Non-BQ AA+ Rates plus 25bps
Total Issue Sources And Uses
Dated 07/15/2017 | Delivered 07/15/2017
Tax
Abatement
Bonds Utility Bonds
Issue
Summary
Sources Of Funds
Par Amount of Bonds $1,905,000.00 $1,585,000.00 $3,490,000.00
Total Sources $1,905,000.00 $1,585,000.00 $3,490,000.00
Uses Of Funds
Total Underwriter's Discount (1.200%)22,860.00 19,020.00 41,880.00
Costs of Issuance 27,838.11 23,161.89 51,000.00
Deposit to Capitalized Interest (CIF) Fund 27,663.22 -27,663.22
Deposit to Project Construction Fund 1,826,000.00 1,542,973.00 3,368,973.00
Rounding Amount 638.67 (154.89)483.78
Total Uses $1,905,000.00 $1,585,000.00 $3,490,000.00
Series 2017B GO Bonds | Issue Summary | 4/11/2017 | 8:42 AM
City of Hopkins, Minnesota
$3,490,000 General Obligation Bonds, Series 2017B
Issue Summary
Assumes Current Market Non-BQ AA+ Rates plus 25bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
07/15/2017 -----
02/01/2018 --50,685.05 50,685.05 50,685.05
08/01/2018 --46,547.50 46,547.50 -
02/01/2019 200,000.00 1.400%46,547.50 246,547.50 293,095.00
08/01/2019 --45,147.50 45,147.50 -
02/01/2020 200,000.00 1.550%45,147.50 245,147.50 290,295.00
08/01/2020 --43,597.50 43,597.50 -
02/01/2021 205,000.00 1.800%43,597.50 248,597.50 292,195.00
08/01/2021 --41,752.50 41,752.50 -
02/01/2022 210,000.00 2.000%41,752.50 251,752.50 293,505.00
08/01/2022 --39,652.50 39,652.50 -
02/01/2023 210,000.00 2.200%39,652.50 249,652.50 289,305.00
08/01/2023 --37,342.50 37,342.50 -
02/01/2024 220,000.00 2.350%37,342.50 257,342.50 294,685.00
08/01/2024 --34,757.50 34,757.50 -
02/01/2025 220,000.00 2.550%34,757.50 254,757.50 289,515.00
08/01/2025 --31,952.50 31,952.50 -
02/01/2026 230,000.00 2.650%31,952.50 261,952.50 293,905.00
08/01/2026 --28,905.00 28,905.00 -
02/01/2027 230,000.00 2.800%28,905.00 258,905.00 287,810.00
08/01/2027 --25,685.00 25,685.00 -
02/01/2028 240,000.00 2.900%25,685.00 265,685.00 291,370.00
08/01/2028 --22,205.00 22,205.00 -
02/01/2029 245,000.00 3.050%22,205.00 267,205.00 289,410.00
08/01/2029 --18,468.75 18,468.75 -
02/01/2030 255,000.00 3.150%18,468.75 273,468.75 291,937.50
08/01/2030 --14,452.50 14,452.50 -
02/01/2031 265,000.00 3.350%14,452.50 279,452.50 293,905.00
08/01/2031 --10,013.75 10,013.75 -
02/01/2032 275,000.00 3.500%10,013.75 285,013.75 295,027.50
08/01/2032 --5,201.25 5,201.25 -
02/01/2033 285,000.00 3.650%5,201.25 290,201.25 295,402.50
Total $3,490,000.00 -$942,047.55 $4,432,047.55 -
Yield Statistics
Bond Year Dollars $31,500.11
Average Life 9.026 Years
Average Coupon 2.9906166%
Net Interest Cost (NIC)3.1235685%
True Interest Cost (TIC)3.1189936%
Bond Yield for Arbitrage Purposes 2.9623991%
All Inclusive Cost (AIC)3.3132693%
IRS Form 8038
Net Interest Cost 2.9906166%
Weighted Average Maturity 9.026 Years
Series 2017B GO Bonds | Issue Summary | 4/11/2017 | 8:42 AM
City of Hopkins, Minnesota
$3,490,000 General Obligation Bonds, Series 2017B
Issue Summary
Assumes Current Market Non-BQ AA+ Rates plus 25bps
Detail Costs Of Issuance
Dated 07/15/2017 | Delivered 07/15/2017
COSTS OF ISSUANCE DETAIL
Municipal Advisor $36,000.00
Bond Counsel $10,000.00
Rating Agency Fee (S&P)$4,000.00
Miscellaneous $1,000.00
TOTAL $51,000.00
Series 2017B GO Bonds | Issue Summary | 4/11/2017 | 8:42 AM
City of Hopkins, Minnesota
$3,490,000 General Obligation Bonds, Series 2017B
Issue Summary
Assumes Current Market Non-BQ AA+ Rates plus 25bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total
Sanitary
Sewer
Revenue
Water
Revenue
Storm
Sewer
Revenue
Levy/
(Surplus)
02/01/2018 --50,685.05 50,685.05 (27,663.22)23,021.83 24,172.92 24,172.92 -0.00
02/01/2019 200,000.00 1.400%93,095.00 293,095.00 -293,095.00 307,749.75 108,976.57 27,384.98 4,540.15 166,848.05
02/01/2020 200,000.00 1.550%90,295.00 290,295.00 -290,295.00 304,809.75 108,976.57 27,384.98 4,540.15 163,908.05
02/01/2021 205,000.00 1.800%87,195.00 292,195.00 -292,195.00 306,804.75 108,976.57 27,384.99 4,540.14 165,903.05
02/01/2022 210,000.00 2.000%83,505.00 293,505.00 -293,505.00 308,180.25 108,976.57 27,384.99 4,540.14 167,278.55
02/01/2023 210,000.00 2.200%79,305.00 289,305.00 -289,305.00 303,770.25 108,976.57 27,384.98 4,540.15 162,868.55
02/01/2024 220,000.00 2.350%74,685.00 294,685.00 -294,685.00 309,419.25 108,976.56 27,384.98 4,540.15 168,517.56
02/01/2025 220,000.00 2.550%69,515.00 289,515.00 -289,515.00 303,990.75 108,976.57 27,384.98 4,540.15 163,089.05
02/01/2026 230,000.00 2.650%63,905.00 293,905.00 -293,905.00 308,600.25 108,976.56 27,384.98 4,540.14 167,698.57
02/01/2027 230,000.00 2.800%57,810.00 287,810.00 -287,810.00 302,200.50 108,976.56 27,384.98 4,540.14 161,298.82
02/01/2028 240,000.00 2.900%51,370.00 291,370.00 -291,370.00 305,938.50 108,976.57 27,384.98 4,540.15 165,036.80
02/01/2029 245,000.00 3.050%44,410.00 289,410.00 -289,410.00 303,880.50 108,976.56 27,384.99 4,540.15 162,978.80
02/01/2030 255,000.00 3.150%36,937.50 291,937.50 -291,937.50 306,534.38 108,976.56 27,384.98 4,540.15 165,632.69
02/01/2031 265,000.00 3.350%28,905.00 293,905.00 -293,905.00 308,600.25 108,976.57 27,384.99 4,540.14 167,698.55
02/01/2032 275,000.00 3.500%20,027.50 295,027.50 -295,027.50 309,778.88 108,976.56 27,384.98 4,540.14 168,877.20
02/01/2033 285,000.00 3.650%10,402.50 295,402.50 -295,402.50 310,172.63 108,976.57 27,384.97 4,540.15 169,270.94
Total $3,490,000.00 -$942,047.55 $4,432,047.55 (27,663.22)$4,404,384.33 $4,624,603.55 $1,658,821.41 $410,774.73 $68,102.19 $2,486,905.22
Significant Dates
Dated 7/15/2017
First Coupon Date 2/01/2018
Yield Statistics
Bond Year Dollars $31,500.11
Average Life 9.026 Years
Average Coupon 2.9906166%
Net Interest Cost (NIC)3.1235685%
True Interest Cost (TIC)3.1189936%
Bond Yield for Arbitrage Purposes 2.9623991%
All Inclusive Cost (AIC)3.3132693%
Series 2017B GO Bonds | Issue Summary | 4/11/2017 | 8:42 AM
City of Hopkins, Minnesota
$1,905,000 General Obligation Bonds, Series 2017B
Tax Abatement Bonds
Assumes Current Market Non-BQ AA+ Rates plus 25bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF Net New D/S
105% of
Total
02/01/2018 --27,663.22 27,663.22 (27,663.22)--
02/01/2019 110,000.00 1.400%50,810.00 160,810.00 -160,810.00 168,850.50
02/01/2020 110,000.00 1.550%49,270.00 159,270.00 -159,270.00 167,233.50
02/01/2021 110,000.00 1.800%47,565.00 157,565.00 -157,565.00 165,443.25
02/01/2022 115,000.00 2.000%45,585.00 160,585.00 -160,585.00 168,614.25
02/01/2023 115,000.00 2.200%43,285.00 158,285.00 -158,285.00 166,199.25
02/01/2024 120,000.00 2.350%40,755.00 160,755.00 -160,755.00 168,792.75
02/01/2025 120,000.00 2.550%37,935.00 157,935.00 -157,935.00 165,831.75
02/01/2026 125,000.00 2.650%34,875.00 159,875.00 -159,875.00 167,868.75
02/01/2027 125,000.00 2.800%31,562.50 156,562.50 -156,562.50 164,390.63
02/01/2028 130,000.00 2.900%28,062.50 158,062.50 -158,062.50 165,965.63
02/01/2029 135,000.00 3.050%24,292.50 159,292.50 -159,292.50 167,257.13
02/01/2030 140,000.00 3.150%20,175.00 160,175.00 -160,175.00 168,183.75
02/01/2031 145,000.00 3.350%15,765.00 160,765.00 -160,765.00 168,803.25
02/01/2032 150,000.00 3.500%10,907.50 160,907.50 -160,907.50 168,952.88
02/01/2033 155,000.00 3.650%5,657.50 160,657.50 -160,657.50 168,690.38
Total $1,905,000.00 -$514,165.72 $2,419,165.72 (27,663.22)$2,391,502.50 $2,511,077.63
Significant Dates
Dated 7/15/2017
First Coupon Date 2/01/2018
Yield Statistics
Bond Year Dollars $17,192.17
Average Life 9.025 Years
Average Coupon 2.9906976%
Net Interest Cost (NIC)3.1236652%
True Interest Cost (TIC)3.1191116%
Bond Yield for Arbitrage Purposes 2.9623991%
All Inclusive Cost (AIC)3.3134160%
Series 2017B GO Bonds | Tax Abatement Bonds | 4/11/2017 | 8:42 AM
City of Hopkins, Minnesota
$1,585,000 General Obligation Bonds, Series 2017B
Utility Bonds
Assumes Current Market Non-BQ AA+ Rates plus 25bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
07/15/2017 -----
02/01/2018 --23,021.83 23,021.83 23,021.83
08/01/2018 --21,142.50 21,142.50 -
02/01/2019 90,000.00 1.400%21,142.50 111,142.50 132,285.00
08/01/2019 --20,512.50 20,512.50 -
02/01/2020 90,000.00 1.550%20,512.50 110,512.50 131,025.00
08/01/2020 --19,815.00 19,815.00 -
02/01/2021 95,000.00 1.800%19,815.00 114,815.00 134,630.00
08/01/2021 --18,960.00 18,960.00 -
02/01/2022 95,000.00 2.000%18,960.00 113,960.00 132,920.00
08/01/2022 --18,010.00 18,010.00 -
02/01/2023 95,000.00 2.200%18,010.00 113,010.00 131,020.00
08/01/2023 --16,965.00 16,965.00 -
02/01/2024 100,000.00 2.350%16,965.00 116,965.00 133,930.00
08/01/2024 --15,790.00 15,790.00 -
02/01/2025 100,000.00 2.550%15,790.00 115,790.00 131,580.00
08/01/2025 --14,515.00 14,515.00 -
02/01/2026 105,000.00 2.650%14,515.00 119,515.00 134,030.00
08/01/2026 --13,123.75 13,123.75 -
02/01/2027 105,000.00 2.800%13,123.75 118,123.75 131,247.50
08/01/2027 --11,653.75 11,653.75 -
02/01/2028 110,000.00 2.900%11,653.75 121,653.75 133,307.50
08/01/2028 --10,058.75 10,058.75 -
02/01/2029 110,000.00 3.050%10,058.75 120,058.75 130,117.50
08/01/2029 --8,381.25 8,381.25 -
02/01/2030 115,000.00 3.150%8,381.25 123,381.25 131,762.50
08/01/2030 --6,570.00 6,570.00 -
02/01/2031 120,000.00 3.350%6,570.00 126,570.00 133,140.00
08/01/2031 --4,560.00 4,560.00 -
02/01/2032 125,000.00 3.500%4,560.00 129,560.00 134,120.00
08/01/2032 --2,372.50 2,372.50 -
02/01/2033 130,000.00 3.650%2,372.50 132,372.50 134,745.00
Total $1,585,000.00 -$427,881.83 $2,012,881.83 -
Yield Statistics
Bond Year Dollars $14,307.94
Average Life 9.027 Years
Average Coupon 2.9905192%
Net Interest Cost (NIC)3.1234524%
True Interest Cost (TIC)3.1188519%
Bond Yield for Arbitrage Purposes 2.9623991%
All Inclusive Cost (AIC)3.3130931%
IRS Form 8038
Net Interest Cost 2.9905192%
Weighted Average Maturity 9.027 Years
Series 2017B GO Bonds | Utility Bonds | 4/11/2017 | 8:42 AM
City of Hopkins, Minnesota
$1,585,000 General Obligation Bonds, Series 2017B
Utility Bonds
Assumes Current Market Non-BQ AA+ Rates plus 25bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I Net New D/S 105% of Total
Sanitary Sewer
Revenue
Water
Revenue
Storm
Sewer
Revenue
Levy/
(Surplus)
02/01/2018 --23,021.83 23,021.83 23,021.83 24,172.92 24,172.92 -0.00
02/01/2019 90,000.00 1.400%42,285.00 132,285.00 132,285.00 138,899.25 108,976.57 27,384.98 4,540.15 (2,002.45)
02/01/2020 90,000.00 1.550%41,025.00 131,025.00 131,025.00 137,576.25 108,976.57 27,384.98 4,540.15 (3,325.45)
02/01/2021 95,000.00 1.800%39,630.00 134,630.00 134,630.00 141,361.50 108,976.57 27,384.99 4,540.14 459.80
02/01/2022 95,000.00 2.000%37,920.00 132,920.00 132,920.00 139,566.00 108,976.57 27,384.99 4,540.14 (1,335.70)
02/01/2023 95,000.00 2.200%36,020.00 131,020.00 131,020.00 137,571.00 108,976.57 27,384.98 4,540.15 (3,330.70)
02/01/2024 100,000.00 2.350%33,930.00 133,930.00 133,930.00 140,626.50 108,976.56 27,384.98 4,540.15 (275.19)
02/01/2025 100,000.00 2.550%31,580.00 131,580.00 131,580.00 138,159.00 108,976.57 27,384.98 4,540.15 (2,742.70)
02/01/2026 105,000.00 2.650%29,030.00 134,030.00 134,030.00 140,731.50 108,976.56 27,384.98 4,540.14 (170.18)
02/01/2027 105,000.00 2.800%26,247.50 131,247.50 131,247.50 137,809.88 108,976.56 27,384.98 4,540.14 (3,091.81)
02/01/2028 110,000.00 2.900%23,307.50 133,307.50 133,307.50 139,972.88 108,976.57 27,384.98 4,540.15 (928.83)
02/01/2029 110,000.00 3.050%20,117.50 130,117.50 130,117.50 136,623.38 108,976.56 27,384.99 4,540.15 (4,278.33)
02/01/2030 115,000.00 3.150%16,762.50 131,762.50 131,762.50 138,350.63 108,976.56 27,384.98 4,540.15 (2,551.07)
02/01/2031 120,000.00 3.350%13,140.00 133,140.00 133,140.00 139,797.00 108,976.57 27,384.99 4,540.14 (1,104.70)
02/01/2032 125,000.00 3.500%9,120.00 134,120.00 134,120.00 140,826.00 108,976.56 27,384.98 4,540.14 (75.68)
02/01/2033 130,000.00 3.650%4,745.00 134,745.00 134,745.00 141,482.25 108,976.57 27,384.97 4,540.15 580.56
Total $1,585,000.00 -$427,881.83 $2,012,881.83 $2,012,881.83 $2,113,525.92 $1,658,821.41 $410,774.73 $68,102.19 (24,172.41)
Significant Dates
Dated 7/15/2017
First Coupon Date 2/01/2018
Yield Statistics
Bond Year Dollars $14,307.94
Average Life 9.027 Years
Average Coupon 2.9905192%
Net Interest Cost (NIC)3.1234524%
True Interest Cost (TIC)3.1188519%
Bond Yield for Arbitrage Purposes 2.9623991%
All Inclusive Cost (AIC)3.3130931%
Series 2017B GO Bonds | Utility Bonds | 4/11/2017 | 8:42 AM
City of Hopkins, Minnesota
$1,669,973 General Obligation Bonds, Series 2017B
Utility Revenues - Issue Summary
Rate = TIC
Assessments
Date Principal Coupon Interest Total P+I
12/31/2018 89,132.53 3.100%51,769.17 140,901.70
12/31/2019 91,895.64 3.100%49,006.06 140,901.70
12/31/2020 94,744.40 3.100%46,157.30 140,901.70
12/31/2021 97,681.48 3.100%43,220.22 140,901.70
12/31/2022 100,709.60 3.100%40,192.10 140,901.70
12/31/2023 103,831.61 3.100%37,070.08 140,901.69
12/31/2024 107,050.38 3.100%33,851.32 140,901.70
12/31/2025 110,368.94 3.100%30,532.74 140,901.68
12/31/2026 113,790.38 3.100%27,111.30 140,901.68
12/31/2027 117,317.88 3.100%23,583.82 140,901.70
12/31/2028 120,954.74 3.100%19,946.96 140,901.70
12/31/2029 124,704.33 3.100%16,197.36 140,901.69
12/31/2030 128,570.18 3.100%12,331.52 140,901.70
12/31/2031 132,555.84 3.100%8,345.84 140,901.68
12/31/2032 136,665.07 3.100%4,236.62 140,901.69
Total $1,669,973.00 -$443,552.41 $2,113,525.41
Significant Dates
Filing Date 1/01/2018
First Payment Date 12/31/2018
Series 2017 GO Bonds - As | Issue Summary | 4/11/2017 | 8:41 AM
City of Hopkins, Minnesota
$1,291,595 General Obligation Bonds, Series 2017
Utility Revenues - Sanitary Sewer
Rate = TIC
Assessments
Date Principal Coupon Interest Total P+I
12/31/2018 68,937.12 3.100%40,039.45 108,976.57
12/31/2019 71,074.17 3.100%37,902.40 108,976.57
12/31/2020 73,277.47 3.100%35,699.10 108,976.57
12/31/2021 75,549.07 3.100%33,427.50 108,976.57
12/31/2022 77,891.09 3.100%31,085.48 108,976.57
12/31/2023 80,305.72 3.100%28,670.84 108,976.56
12/31/2024 82,795.19 3.100%26,181.38 108,976.57
12/31/2025 85,361.84 3.100%23,614.72 108,976.56
12/31/2026 88,008.06 3.100%20,968.50 108,976.56
12/31/2027 90,736.31 3.100%18,240.26 108,976.57
12/31/2028 93,549.14 3.100%15,427.42 108,976.56
12/31/2029 96,449.16 3.100%12,527.40 108,976.56
12/31/2030 99,439.09 3.100%9,537.48 108,976.57
12/31/2031 102,521.70 3.100%6,454.86 108,976.56
12/31/2032 105,699.87 3.100%3,276.70 108,976.57
Total $1,291,595.00 -$343,053.49 $1,634,648.49
Significant Dates
Filing Date 1/01/2018
First Payment Date 12/31/2018
Series 2017 GO Bonds - As | Sanitary Sewer | 4/11/2017 | 8:41 AM
City of Hopkins, Minnesota
$324,568 General Obligation Bonds, Series 2017
Utility Revenues - Water
Rate = TIC
Assessments
Date Principal Coupon Interest Total P+I
12/31/2018 17,323.37 3.100%10,061.61 27,384.98
12/31/2019 17,860.40 3.100%9,524.58 27,384.98
12/31/2020 18,414.07 3.100%8,970.92 27,384.99
12/31/2021 18,984.91 3.100%8,400.08 27,384.99
12/31/2022 19,573.44 3.100%7,811.54 27,384.98
12/31/2023 20,180.22 3.100%7,204.76 27,384.98
12/31/2024 20,805.80 3.100%6,579.18 27,384.98
12/31/2025 21,450.78 3.100%5,934.20 27,384.98
12/31/2026 22,115.76 3.100%5,269.22 27,384.98
12/31/2027 22,801.34 3.100%4,583.64 27,384.98
12/31/2028 23,508.19 3.100%3,876.80 27,384.99
12/31/2029 24,236.94 3.100%3,148.04 27,384.98
12/31/2030 24,988.29 3.100%2,396.70 27,384.99
12/31/2031 25,762.92 3.100%1,622.06 27,384.98
12/31/2032 26,561.57 3.100%823.40 27,384.97
Total $324,568.00 -$86,206.73 $410,774.73
Significant Dates
Filing Date 1/01/2018
First Payment Date 12/31/2018
Series 2017 GO Bonds - As | Water | 4/11/2017 | 8:41 AM
City of Hopkins, Minnesota
$53,810 General Obligation Bonds, Series 2017
Utility Revenues - Storm Sewer
Rate = TIC
Assessments
Date Principal Coupon Interest Total P+I
12/31/2018 2,872.04 3.100%1,668.11 4,540.15
12/31/2019 2,961.07 3.100%1,579.08 4,540.15
12/31/2020 3,052.86 3.100%1,487.28 4,540.14
12/31/2021 3,147.50 3.100%1,392.64 4,540.14
12/31/2022 3,245.07 3.100%1,295.08 4,540.15
12/31/2023 3,345.67 3.100%1,194.48 4,540.15
12/31/2024 3,449.39 3.100%1,090.76 4,540.15
12/31/2025 3,556.32 3.100%983.82 4,540.14
12/31/2026 3,666.56 3.100%873.58 4,540.14
12/31/2027 3,780.23 3.100%759.92 4,540.15
12/31/2028 3,897.41 3.100%642.74 4,540.15
12/31/2029 4,018.23 3.100%521.92 4,540.15
12/31/2030 4,142.80 3.100%397.34 4,540.14
12/31/2031 4,271.22 3.100%268.92 4,540.14
12/31/2032 4,403.63 3.100%136.52 4,540.15
Total $53,810.00 -$14,292.19 $68,102.19
Significant Dates
Filing Date 1/01/2018
First Payment Date 12/31/2018
Series 2017 GO Bonds - As | Storm Sewer | 4/11/2017 | 8:41 AM