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V.1. Public Hearing on Five-Year Street Reconstruction Plan & Resolution Adopting a Street Reconstruction Plan and Authorizing the Issuance of Street Reconstruction Bonds Thereunder; Harkess (CR2017-069) May 16, 2017 Council Report 2017-069 PUBLIC HEARING ON FIVE-YEAR STREET RECONSTRUCTION PLAN & RESOLUTION ADOPTING A STREET RECONSTRUCTION PLAN AND AUTHORIZING THE ISSUANCE OF STREET RECONSTRUCTION BONDS THEREUNDER Proposed Action Approve Resolution 2017-039 adopting a street reconstruction plan and authorizing the issuance of street reconstruction bonds thereunder. Overview Annually the City issues 429 General Obligation assessment bonds to complete the planned street reconstruction projects. Under the 429 process the City must assess a minimum of 20% of the project costs to benefitting property owners, which typically is not an issue. For the 2017 and 2018 street reconstruction improvements, the City is unable to meet the minimum assessment threshold and therefore will need to finance the project through the Street Reconstruction Bond process instead. The projects contemplated under the financing are for the 2017 street projects, 8th Avenue (2017) and Blake Road (2017 & 2018), of which the latter two the City is unable to assess the improvements to adjacent properties. However, the City is assessing benefitting property owners for the 2017 street projects ($1,453,700), but the assessment amount does not meet the aforementioned 20% threshold (only 17.6%). The City will utilize its authority to issue General Obligation Street Reconstruction Bonds to finance the project (City has done this for projects in 2014 and 2015). Similar to the 429 Bonds, the portion of the project not being paid by assessments will be paid by a general tax levy. This authority was granted to Cities in 2002 and it generally exempts city bonds issued under a street reconstruction and overlay program from the referendum requirements usually required for bonding expenditures (referendum generally required if 20% of the project is not/cannot be assessed). The City is required to hold a public hearing on its intent to issue these bonds and its 5-year Street Reconstruction and Overlay Plan (SROP). In order to utilize this type of financing, the City has to prepare a 5-Year SROP which is presented at a public hearing to solicit comment and feedback from the community. The SROP is included in the Council’s packet for review and consideration. Upon conclusion of the public hearing, the Council must approve the SROP via a unanimous vote of the members present. 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 the 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). Primary Issues to Consider  Funding for 2017 and 2018 street projects Supporting Information  2017-2021 Five-Year Street Reconstruction Overlay Plan  Resolution No. 2017-039 ______________________________________ Christine M. Harkess, CPA, CGFM Finance Director Financial Impact: $ 11.795 mill for 2017 Budgeted: Y/N N Source: Bond Proceeds Related Documents (CIP, ERP, etc.): CIP Notes: 498810v1 JAE HP110-97 CITY OF HOPKINS, MINNESOTA RESOLUTION NO. 2017-039 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 follows: 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 “2017 through 2021 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 2017 through 2021. The reconstruction activities described in the Plan include, but are not limited to, the 2017 Street Reconstruction Projects and the reconstruction of Eighth Avenue and Blake Road 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 $25,000,000 (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 ten (10) days but no more than twenty-eight (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 $25,000,000, in order to finance the Project described in the Plan. City staff, its municipal advisor, and its legal counsel 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. 498810v1 JAE HP110-97 2 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 thirty (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 thirty (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 16th day of May, 2017. Molly Cummings, Mayor ATTEST: Amy Domeier, City Clerk 2017 through 2021 Five-Year Street Reconstruction Overlay Plan for the City of Hopkins, Minnesota May 15, 2017 Prepared by: Ehlers & Associates, Inc. 3060 Centre Pointe Drive Roseville, MN 55113 Ehlers & Associates, Inc. Page 2 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 3 City of Hopkins Five-Year Street Reconstruction and Overlay Plan 2017 through 2021 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 4 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 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 5 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 6 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: 2017 Expenditures  2017 Street Reconstruction Projects  8th Avenue  Blake Road 2018 Expenditures  Blake Road 2019 Expenditures  No projects contemplated at this time 2020 Expenditures  No projects contemplated at this time 2021 Expenditures  No projects contemplated at this time Ehlers & Associates, Inc. Page 7 V. FINANCING THE STREET RECONSTRUCTION PLAN The total amount of requested expenditures under the Street Reconstruction and Overlay Plan is approximately $25,000,000. 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 $22,100,000 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 pay 2017 EMV is $1,791,172,100. Therefore, the total amount of outstanding debt cannot exceed $53,735,163. As of April 11, 2017 the City had $5,985,000 subject to the legal debt limit. Under the Street Reconstruction Plan, the City will secure approximately $17,000,000 in general obligation bonds in the year 2017 to finance the 2017 Street Reconstruction projects, along with reconstruction of 8th Avenue and Blake Road. In the year 2018, general obligation bonds in the amount of $5,195,000 will be secured to finalize the reconstruction of Blake Road. 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 8 APPENDIX A PROJECT COSTS (Capital Expenditures to be funded with Bond Proceeds) The 2017A capital expenditure of approximately $14,489,000 is to finance the City’s 2017 road reconstruction projects and is to be funded with $11,795,000 in bond proceeds. These expenditures are anticipated due to the need to reconstruct these roads and complete necessary utility replacement. Total Issue Sources And Uses Dated 07/15/2017 | Delivered 07/15/2017 2017 Road Reconstruction 8th Avenue Reconstruction Issue Summary Sources Of Funds Par Amount of Bonds $8,240,000.00 $3,555,000.00 $11,795,000.00 Prepaid Assessments 290,700.00 - 290,700.00 Grants - 2,780,500.00 2,780,500.00 Total Sources $8,530,700.00 $6,335,500.00 $14,866,200.00 Uses Of Funds Total Underwriter's Discount (1.000%) 82,400.00 35,550.00 117,950.00 Costs of Issuance 59,381.10 25,618.90 85,000.00 Deposit to Capitalized Interest (CIF) Fund 119,606.28 51,561.61 171,167.89 Deposit to Project Construction Fund 8,265,583.00 6,223,150.00 14,488,733.00 Rounding Amount 3,729.62 (380.51) 3,349.11 Total Uses $8,530,700.00 $6,335,500.00 $14,866,200.00 Ehlers & Associates, Inc. Page 9 The 2017C capital expenditure of approximately $5,000,000 is to finance the reconstruction of Blake Road is to be funded with approximately $5,110,000 in bond proceeds. These expenditures are anticipated due to the need to reconstruct these roads and complete necessary utility replacement. Sources & Uses Dated 09/30/2017 | Delivered 09/30/2017 Sources Of Funds Par Amount of Bonds $5,110,000.00 Total Sources $5,110,000.00 Uses Of Funds Total Underwriter's Discount (1.000%)51,100.00 Costs of Issuance 55,000.00 Deposit to Project Construction Fund 5,000,000.00 Rounding Amount 3,900.00 Total Uses $5,110,000.00 Ehlers & Associates, Inc. Page 10 The 2018 capital expenditure of approximately $5,000,000 is to finance the reconstruction of Blake Road is to be funded with approximately $5,195,000 in bond proceeds. These expenditures are anticipated due to the need to reconstruct these roads and complete necessary utility replacement. Sources & Uses Dated 06/15/2018 | Delivered 06/15/2018 Sources Of Funds Par Amount of Bonds $5,195,000.00 Total Sources $5,195,000.00 Uses Of Funds Total Underwriter's Discount (1.000%)51,950.00 Costs of Issuance 55,000.00 Deposit to Capitalized Interest (CIF) Fund 84,260.33 Deposit to Project Construction Fund 5,000,000.00 Rounding Amount 3,789.67 Total Uses $5,195,000.00 Ehlers & Associates, Inc. Page 11 APPENDIX B PROPOSED 2017A SROP BOND ISSUES Debt Service Schedule Date Principal Coupon Interest Total P+I 105% Overlevy Fiscal Total 07/15/2017 - - - - - 02/01/2018 - - 171,167.89 171,167.89 179,726.28 179,726.28 08/01/2018 - - 157,195.00 157,195.00 165,054.75 - 02/01/2019 675,000.00 1.400% 157,195.00 832,195.00 873,804.75 1,038,859.50 08/01/2019 - - 152,470.00 152,470.00 160,093.50 - 02/01/2020 680,000.00 1.550% 152,470.00 832,470.00 874,093.50 1,034,187.00 08/01/2020 - - 147,200.00 147,200.00 154,560.00 - 02/01/2021 695,000.00 1.800% 147,200.00 842,200.00 884,310.00 1,038,870.00 08/01/2021 - - 140,945.00 140,945.00 147,992.25 - 02/01/2022 705,000.00 2.000% 140,945.00 845,945.00 888,242.25 1,036,234.50 08/01/2022 - - 133,895.00 133,895.00 140,589.75 - 02/01/2023 715,000.00 2.200% 133,895.00 848,895.00 891,339.75 1,031,929.50 08/01/2023 - - 126,030.00 126,030.00 132,331.50 - 02/01/2024 735,000.00 2.350% 126,030.00 861,030.00 904,081.50 1,036,413.00 08/01/2024 - - 117,393.75 117,393.75 123,263.44 - 02/01/2025 750,000.00 2.550% 117,393.75 867,393.75 910,763.44 1,034,026.88 08/01/2025 - - 107,831.25 107,831.25 113,222.81 - 02/01/2026 775,000.00 2.650% 107,831.25 882,831.25 926,972.81 1,040,195.63 08/01/2026 - - 97,562.50 97,562.50 102,440.63 - 02/01/2027 795,000.00 2.800% 97,562.50 892,562.50 937,190.63 1,039,631.25 08/01/2027 - - 86,432.50 86,432.50 90,754.13 - 02/01/2028 815,000.00 2.900% 86,432.50 901,432.50 946,504.13 1,037,258.25 08/01/2028 - - 74,615.00 74,615.00 78,345.75 - 02/01/2029 835,000.00 3.050% 74,615.00 909,615.00 955,095.75 1,033,441.50 08/01/2029 - - 61,881.25 61,881.25 64,975.31 - 02/01/2030 865,000.00 3.150% 61,881.25 926,881.25 973,225.31 1,038,200.63 08/01/2030 - - 48,257.50 48,257.50 50,670.38 - 02/01/2031 890,000.00 3.350% 48,257.50 938,257.50 985,170.38 1,035,840.75 08/01/2031 - - 33,350.00 33,350.00 35,017.50 - 02/01/2032 915,000.00 3.500% 33,350.00 948,350.00 995,767.50 1,030,785.00 08/01/2032 - - 17,337.50 17,337.50 18,204.38 - 02/01/2033 950,000.00 3.650% 17,337.50 967,337.50 1,015,704.38 1,033,908.75 Total $11,795,000.00 - $3,175,960.39 $14,970,960.39 - Ehlers & Associates, Inc. Page 12 PROPOSED 2017C SROP BOND ISSUES Debt Service Schedule Date Principal Coupon Interest Total P+I 105% Overlevy Fiscal Total 09/30/2017 - - - - - - 08/01/2018 - - 118,823.93 118,823.93 124,765.13 - 02/01/2019 245,000.00 1.500% 71,057.50 316,057.50 331,860.38 456,625.50 08/01/2019 - - 69,220.00 69,220.00 72,681.00 - 02/01/2020 295,000.00 1.650% 69,220.00 364,220.00 382,431.00 455,112.00 08/01/2020 - - 66,786.25 66,786.25 70,125.56 - 02/01/2021 300,000.00 1.900% 66,786.25 366,786.25 385,125.56 455,251.13 08/01/2021 - - 63,936.25 63,936.25 67,133.06 - 02/01/2022 305,000.00 2.100% 63,936.25 368,936.25 387,383.06 454,516.13 08/01/2022 - - 60,733.75 60,733.75 63,770.44 - 02/01/2023 315,000.00 2.300% 60,733.75 375,733.75 394,520.44 458,290.88 08/01/2023 - - 57,111.25 57,111.25 59,966.81 - 02/01/2024 320,000.00 2.450% 57,111.25 377,111.25 395,966.81 455,933.63 08/01/2024 - - 53,191.25 53,191.25 55,850.81 - 02/01/2025 330,000.00 2.650% 53,191.25 383,191.25 402,350.81 458,201.63 08/01/2025 - - 48,818.75 48,818.75 51,259.69 - 02/01/2026 340,000.00 2.750% 48,818.75 388,818.75 408,259.69 459,519.38 08/01/2026 - - 44,143.75 44,143.75 46,350.94 - 02/01/2027 345,000.00 2.900% 44,143.75 389,143.75 408,600.94 454,951.88 08/01/2027 - - 39,141.25 39,141.25 41,098.31 - 02/01/2028 355,000.00 3.000% 39,141.25 394,141.25 413,848.31 454,946.63 08/01/2028 - - 33,816.25 33,816.25 35,507.06 - 02/01/2029 365,000.00 3.150% 33,816.25 398,816.25 418,757.06 454,264.13 08/01/2029 - - 28,067.50 28,067.50 29,470.88 - 02/01/2030 380,000.00 3.250% 28,067.50 408,067.50 428,470.88 457,941.75 08/01/2030 - - 21,892.50 21,892.50 22,987.13 - 02/01/2031 390,000.00 3.450% 21,892.50 411,892.50 432,487.13 455,474.25 08/01/2031 - - 15,165.00 15,165.00 15,923.25 - 02/01/2032 405,000.00 3.600% 15,165.00 420,165.00 441,173.25 457,096.50 08/01/2032 - - 7,875.00 7,875.00 8,268.75 - 02/01/2033 420,000.00 3.750% 7,875.00 427,875.00 449,268.75 457,537.50 Total $5,110,000.00 - $1,409,678.93 $6,519,678.93 $6,845,662.88 - Ehlers & Associates, Inc. Page 13 PROPOSED 2018 SROP BOND ISSUES Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Fiscal Total 06/15/2018 - - - - - - - - 02/01/2019 - - 84,260.33 84,260.33 (84,260.33) - - - 08/01/2019 - - 67,110.00 67,110.00 - 67,110.00 70,465.50 - 02/01/2020 295,000.00 1.600% 67,110.00 362,110.00 - 362,110.00 380,215.50 450,681.00 08/01/2020 - - 64,750.00 64,750.00 - 64,750.00 67,987.50 - 02/01/2021 300,000.00 1.750% 64,750.00 364,750.00 - 364,750.00 382,987.50 450,975.00 08/01/2021 - - 62,125.00 62,125.00 - 62,125.00 65,231.25 - 02/01/2022 305,000.00 1.950% 62,125.00 367,125.00 - 367,125.00 385,481.25 450,712.50 08/01/2022 - - 59,151.25 59,151.25 - 59,151.25 62,108.81 - 02/01/2023 310,000.00 2.150% 59,151.25 369,151.25 - 369,151.25 387,608.81 449,717.63 08/01/2023 - - 55,818.75 55,818.75 - 55,818.75 58,609.69 - 02/01/2024 320,000.00 2.250% 55,818.75 375,818.75 - 375,818.75 394,609.69 453,219.38 08/01/2024 - - 52,218.75 52,218.75 - 52,218.75 54,829.69 - 02/01/2025 325,000.00 2.350% 52,218.75 377,218.75 - 377,218.75 396,079.69 450,909.38 08/01/2025 - - 48,400.00 48,400.00 - 48,400.00 50,820.00 - 02/01/2026 335,000.00 2.450% 48,400.00 383,400.00 - 383,400.00 402,570.00 453,390.00 08/01/2026 - - 44,296.25 44,296.25 - 44,296.25 46,511.06 - 02/01/2027 340,000.00 2.550% 44,296.25 384,296.25 - 384,296.25 403,511.06 450,022.13 08/01/2027 - - 39,961.25 39,961.25 - 39,961.25 41,959.31 - 02/01/2028 350,000.00 2.650% 39,961.25 389,961.25 - 389,961.25 409,459.31 451,418.63 08/01/2028 - - 35,323.75 35,323.75 - 35,323.75 37,089.94 - 02/01/2029 360,000.00 2.750% 35,323.75 395,323.75 - 395,323.75 415,089.94 452,179.88 08/01/2029 - - 30,373.75 30,373.75 - 30,373.75 31,892.44 - 02/01/2030 370,000.00 2.850% 30,373.75 400,373.75 - 400,373.75 420,392.44 452,284.88 08/01/2030 - - 25,101.25 25,101.25 - 25,101.25 26,356.31 - 02/01/2031 380,000.00 2.950% 25,101.25 405,101.25 - 405,101.25 425,356.31 451,712.63 08/01/2031 - - 19,496.25 19,496.25 - 19,496.25 20,471.06 - 02/01/2032 390,000.00 3.100% 19,496.25 409,496.25 - 409,496.25 429,971.06 450,442.13 08/01/2032 - - 13,451.25 13,451.25 - 13,451.25 14,123.81 - 02/01/2033 400,000.00 3.250% 13,451.25 413,451.25 - 413,451.25 434,123.81 448,247.63 08/01/2033 - - 6,951.25 6,951.25 - 6,951.25 7,298.81 - 02/01/2034 415,000.00 3.350% 6,951.25 421,951.25 - 421,951.25 443,048.81 450,347.63 Total $5,195,000.00 - $1,333,317.83 $6,528,317.83 (84,260.33) $6,444,057.50 $6,766,260.38 - Ehlers & Associates, Inc. Page 14 APPENDIX C Pre-Sale Schedule dated April 18, 2017 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 18, 2017 City Council adopts Resolution calling for Public Hearing on issuance of Bonds and on Street Reconstruction Plan. April 18, 2017 City Council provides for sale of Bonds April 20, 2017 Close date to get Notice of Public Hearing on issuance of Bonds and on Street Reconstruction Plan to official newspaper for publication. April 27, 2017 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 15, 2017 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. June 15, 2017 Reverse referendum period ends (within 30 days of the public hearing). June 20, 2017 City Council accepts offer for Bonds and adopts Resolution-Approving sale of Bonds. July 13, 2017 Tentative closing/receipt of funds. Assessor's Estimated Market Value 1,791,172,100 Multiply by 3% 0.03 Statutory Debt Limit 53,735,163 Less: Debt Paid Solely from Taxes (5,985,000) Unused Debt Limit 47,750,163 Net Debt Limit