VII.1. Authorize the Sale of $6,645,000 General Obligation Bonds, Series 2018A and $3,355,000 General Obligation Tax Abatement Bonds, Series 2018B; BishopMarch 20, 2018 City Council Report 2018-037
AUTHORIZE THE SALE OF $6,645,000 GENERAL OBLIGATION BONDS, SERIES 2018A
AND $3,355,000 GENERAL OBLIGATION TAX ABATEMENT BONDS, 2018B
Proposed Action
Staff recommends approval of the following motions:
Adopt Resolution 2018-025 Providing for the Sale of $6,645,000 General Obligation Bonds Series 2018A.
Adopt Resolution 2018-027 Providing for the Sale of $3,355,000 General Obligation Tax Abatement Bonds, 2018B.
Overview
The Series 2018A bonds will be general obligations of the city for which it’s full faith, credit and taxing authority
powers are pledged. The bonds are being sold to finance three projects:
• Blake Road will be reconstructed from Excelsior Boulevard to state trunk Highway 7. The project will span
2018/2019 and will receive approximately $6.3 million from Hennepin County. Bonds will also be issued in
2019 to finance the remainder of Hopkins’s project costs.
• 2018 street improvements located at Oxford/Cambridge Street, reduced by prepaid assessments of $193,004
• Capital equipment described in the 2018-2022 Equipment Replacement Plan
The Series 2018B bonds will be general obligations of the city for which it’s full faith, credit and taxing authority
powers are pledged. The bonds are being sold to finance the Pavilion upgrade project. The current refrigeration system
will be replaced to comply with federal mandates. The Pavilion will also be expanded, upgraded and incorporate a
warming house. The City has received funding commitments from the Hopkins Youth Hockey Association
($1,000,000) and Hopkins School District ($1,000,000). The City will also use $600,000 from the Park Improvement
Fund for the warming house.
The bonds are being issued with a 16 year term (equipment certificate portion is being issued with a 10 year term)
with payments to come from a tax levy and special assessments. They will be issued pursuant to MN statues
469.1814 (tax abatement bonds), 429 (street and special assessment), 475.58 (street reconstruction) and 412.301
(equipment certificates). The city continues to maintain an AA+ bond rating with a stable outlook.
Primary Issues
• None
Staff Recommendation
Staff recommends approval of the resolution 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
• Resolution No. 2018-025 & 2018-027
• Bond Pre-Sale Report for both the 2018A & B issues
______________________________
Nicholas Bishop, CPA
Finance Director
Financial Impact: $ 10,000,000 bond issue
Budgeted: Y/N Yes
Source: Bond Funds
Related Documents: None
Resolution No. 2018-025
Council Member _________________ introduced the following resolution and moved its adoption:
Resolution Providing for the Sale of
$6,645,000 General Obligation Bonds, Series 2018A
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 $6,645,000 General Obligation Bonds, Series 2018A (the
"Bonds"), to finance the City’s portion of Blake Road reconstruction, the City’s 2018 road
reconstruction projects and purchase of equipment 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 April 17, 2018, 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 20th day of March, 2018.
_____________________________________________
Amy Domeier, City Clerk
Resolution No. 2018-027
Council Member _________________ introduced the following resolution and moved its adoption:
Resolution Providing for the Sale of
$3,355,000 General Obligation Tax Abatement Bonds, Series 2018B
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 $3,355,000 General Obligation Tax Abatement Bonds,
Series 2018B (the "Bonds"), to finance the City’s portion of the improvements to the City Ice Arena
(Pavilion); 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 April 17, 2018, 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 20th day of March, 2018.
_____________________________________________
Amy Domeier, City Clerk
March 20, 2018
Pre-Sale Report for
City of Hopkins, Minnesota
$6,645,000 General Obligation Bonds, Series 2018A
Prepared by:
Stacie Kvilvang, CIPMA
Senior Municipal Advisor
And
Jason Aarsvold, CIPMA
Senior Municipal Advisor
And
James Lehnhoff,
Municipal Advisor
Presale Report
City of Hopkins, Minnesota
March 20, 2018
Page 1
Executive Summary of Proposed Debt
Proposed Issue: $6,645,000 General Obligation Bonds, Series 2018A
Purposes: The proposed issue includes financing for the following purposes:
1. 2018 Street Projects ($4,305,000)
This portion of the bonds is to finance the City’s 2018 street and utility
reconstruction projects. Debt service will be paid from special
assessments and ad valorem property taxes.
2. Blake Road ($1,725,000)
This portion of the Bonds is being issued to pay for the City’s portion
of costs to reconstruct Blake Road. Debt service will be paid from ad
valorem property taxes.
3. Equipment Certificate ($615,000)
This portion of the Bonds is being used to finance various equipment
needs of the City. Debt service will be paid from ad valorem property
taxes.
Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters:
429 – 2018 Street Projects
475.58 – Blake Road Street Reconstruction
412.301 – Equipment Certificate
475 – General bonding authority
2018 Street Projects Portion. Because the City is assessing at least 20% of the
project costs, the Bonds can be a general obligation without a referendum and will
not count against the City’s debt limit. The City intends to levy a total of $965,020
in special assessments to benefitting property owners, of which $193,004 (20%) is
anticipated to be collected in pre-paid assessments (this portion of the Bond issue
was reduced accordingly). The remaining $772,016 of special assessments will be
collected in years 2019 to 2033 at a rate of 2% over the True Interest Costs (TIC)
of the Bonds. Annual assessments are paid on an equal principal basis.
Blake Road Street Reconstruction Portion. This portion of the Bonds are being
issued under a Street Reconstruction and Overlay Plan (SROP) that was approved
in 2017. Projects that are part of an approved SROP can be a general obligation
without a referendum. However, this portion of the Bonds will count toward the
City’s statutory debt limit, which is 3% of estimated market value (EMV). The
City’s EMV for pay 2018 is $1,899,079,300, and 3% of EMV produces a debt
limit of $56,972,379. This portion of the bonds ($1,725,000), plus the City’s
equipment certificate portion of the bonds noted below ($615,000) plus the City’s
current outstanding debt that is subject to this limit as of March 14, 2018 of
$14,850,000 equals a total debt amount of $17,190,000. This is well below the
$56.9 million statutory debt limit noted above.
Presale Report
City of Hopkins, Minnesota
March 20, 2018
Page 2
Equipment Certificate Portion. Chapter 412.301 allows cities to issue debt for
the purchase of capital equipment. The amount of bonds being issued for this
purpose (and any outstanding equipment certificates) does not exceed .25% of the
City’s EMV as required by Statute. The City’s outstanding equipment certificate
debt along with this issue totals $2,730,000 which is .14% of the City’s EMV. In
addition, this portion of the Bonds counts against the City’s statutory debt limit,
which is 3% of EMV. Based upon the above referenced Street Reconstruction
Bond portion, the City’s outstanding equipment certificate debt and the 2018A and
2018B bonds, the City currently has approximately $39.8 million of unused debt
limit.
The Bonds will be general obligations of the City for which its full faith, credit
and taxing powers are pledged.
Term/Call Feature: The Bonds are being issued for a 16-year term (Equipment Certificate portion if
for 10 years). Principal on the Bonds will be due on February 1 in the years 2020
through 2034. Interest is payable every six months beginning February 1, 2019.
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 expecting to issue no more than $10,000,000 in tax exempt
debt during 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: 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:
- This is the only viable option 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 1.00% 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
Presale Report
City of Hopkins, Minnesota
March 20, 2018
Page 3
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 reduce the size of the Bonds on
the day of sale. 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: We have assumed $193,004 of pre-paid special assessments (20%) and have
assumed that the remaining $772,016 of assessments are levied as projected. If the
Presale Report
City of Hopkins, Minnesota
March 20, 2018
Page 4
City receives significantly more of pre-paid assessments above this amount or does
not levy the projected assessments, the City may need to increase the levy portion
of the debt service to make up for the lower interest earnings than the expected
assessment interest rate.
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: Standard & Poor's Global Ratings (S&P)
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.
Presale Report
City of Hopkins, Minnesota
March 20, 2018
Page 5
Proposed Debt Issuance Schedule
Pre-Sale Review by City Council: March 20, 2018
Distribute Official Statement: Week of April 2, 2018
Conference with Rating Agency: Week of April 9, 2018
Public Hearing on Issuance of 501c3 Bonds (Tax
Abatement Portion) April 17, 2018
City Council Meeting to Award Sale of the Bonds: April 17, 2018
Estimated Closing Date: May 15, 2018
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: Silvia Johnson (651) 697-8580
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
$6,645,000 General Obligation Bonds, Series 2018A
Issue Summary
Assumes Current Market BQ AA+ Rates plus 25bps
Total Issue Sources And Uses
Dated 05/15/2018 | Delivered 05/15/2018
2018 Street
Projects -
Improvement
Blake Road -
Street
Reconstructi
on
Equipment
Certificate
Issue
Summary
Sources Of Funds
Par Amount of Bonds $4,305,000.00 $1,725,000.00 $615,000.00 $6,645,000.00
Prepaid Assessments 193,004.00 --193,004.00
County Funds -6,333,745.00 -6,333,745.00
Total Sources $4,498,004.00 $8,058,745.00 $615,000.00 $13,171,749.00
Uses Of Funds
Total Underwriter's Discount (1.000%)43,050.00 17,250.00 6,150.00 66,450.00
Costs of Issuance 39,551.58 15,848.19 5,650.23 61,050.00
Deposit to Capitalized Interest (CIF) Fund 83,827.56 33,589.33 10,400.00 127,816.89
Deposit to Project Construction Fund 4,329,400.00 7,992,500.00 592,000.00 12,913,900.00
Rounding Amount 2,174.86 (442.52)799.77 2,532.11
Total Uses $4,498,004.00 $8,058,745.00 $615,000.00 $13,171,749.00
Series 2018A GO Bonds - P | Issue Summary | 3/15/2018 | 11:12 AM
Page 1
City of Hopkins, Minnesota
$6,645,000 General Obligation Bonds, Series 2018A
Issue Summary
Assumes Current Market BQ AA+ Rates plus 25bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
05/15/2018 -----
02/01/2019 --127,816.89 127,816.89 127,816.89
08/01/2019 --89,871.25 89,871.25 -
02/01/2020 395,000.00 1.800%89,871.25 484,871.25 574,742.50
08/01/2020 --86,316.25 86,316.25 -
02/01/2021 410,000.00 1.950%86,316.25 496,316.25 582,632.50
08/01/2021 --82,318.75 82,318.75 -
02/01/2022 415,000.00 2.100%82,318.75 497,318.75 579,637.50
08/01/2022 --77,961.25 77,961.25 -
02/01/2023 425,000.00 2.250%77,961.25 502,961.25 580,922.50
08/01/2023 --73,180.00 73,180.00 -
02/01/2024 440,000.00 2.350%73,180.00 513,180.00 586,360.00
08/01/2024 --68,010.00 68,010.00 -
02/01/2025 445,000.00 2.500%68,010.00 513,010.00 581,020.00
08/01/2025 --62,447.50 62,447.50 -
02/01/2026 455,000.00 2.650%62,447.50 517,447.50 579,895.00
08/01/2026 --56,418.75 56,418.75 -
02/01/2027 475,000.00 2.750%56,418.75 531,418.75 587,837.50
08/01/2027 --49,887.50 49,887.50 -
02/01/2028 480,000.00 2.850%49,887.50 529,887.50 579,775.00
08/01/2028 --43,047.50 43,047.50 -
02/01/2029 420,000.00 2.950%43,047.50 463,047.50 506,095.00
08/01/2029 --36,852.50 36,852.50 -
02/01/2030 430,000.00 3.050%36,852.50 466,852.50 503,705.00
08/01/2030 --30,295.00 30,295.00 -
02/01/2031 440,000.00 3.150%30,295.00 470,295.00 500,590.00
08/01/2031 --23,365.00 23,365.00 -
02/01/2032 455,000.00 3.200%23,365.00 478,365.00 501,730.00
08/01/2032 --16,085.00 16,085.00 -
02/01/2033 470,000.00 3.300%16,085.00 486,085.00 502,170.00
08/01/2033 --8,330.00 8,330.00 -
02/01/2034 490,000.00 3.400%8,330.00 498,330.00 506,660.00
Total $6,645,000.00 -$1,736,589.39 $8,381,589.39 -
Yield Statistics
Bond Year Dollars $59,115.33
Average Life 8.896 Years
Average Coupon 2.9376294%
Net Interest Cost (NIC)3.0500367%
True Interest Cost (TIC)3.0482926%
Bond Yield for Arbitrage Purposes 2.9163867%
All Inclusive Cost (AIC)3.1711091%
IRS Form 8038
Net Interest Cost 2.9376294%
Weighted Average Maturity 8.896 Years
Series 2018A GO Bonds - P | Issue Summary | 3/15/2018 | 11:12 AM
Page 2
City of Hopkins, Minnesota
$6,645,000 General Obligation Bonds, Series 2018A
Issue Summary
Assumes Current Market BQ AA+ Rates plus 25bps
Net Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF Net New D/S
Fiscal
Total
05/15/2018 -------
02/01/2019 --127,816.89 127,816.89 (127,816.89)--
08/01/2019 --89,871.25 89,871.25 -89,871.25 -
02/01/2020 395,000.00 1.800%89,871.25 484,871.25 -484,871.25 574,742.50
08/01/2020 --86,316.25 86,316.25 -86,316.25 -
02/01/2021 410,000.00 1.950%86,316.25 496,316.25 -496,316.25 582,632.50
08/01/2021 --82,318.75 82,318.75 -82,318.75 -
02/01/2022 415,000.00 2.100%82,318.75 497,318.75 -497,318.75 579,637.50
08/01/2022 --77,961.25 77,961.25 -77,961.25 -
02/01/2023 425,000.00 2.250%77,961.25 502,961.25 -502,961.25 580,922.50
08/01/2023 --73,180.00 73,180.00 -73,180.00 -
02/01/2024 440,000.00 2.350%73,180.00 513,180.00 -513,180.00 586,360.00
08/01/2024 --68,010.00 68,010.00 -68,010.00 -
02/01/2025 445,000.00 2.500%68,010.00 513,010.00 -513,010.00 581,020.00
08/01/2025 --62,447.50 62,447.50 -62,447.50 -
02/01/2026 455,000.00 2.650%62,447.50 517,447.50 -517,447.50 579,895.00
08/01/2026 --56,418.75 56,418.75 -56,418.75 -
02/01/2027 475,000.00 2.750%56,418.75 531,418.75 -531,418.75 587,837.50
08/01/2027 --49,887.50 49,887.50 -49,887.50 -
02/01/2028 480,000.00 2.850%49,887.50 529,887.50 -529,887.50 579,775.00
08/01/2028 --43,047.50 43,047.50 -43,047.50 -
02/01/2029 420,000.00 2.950%43,047.50 463,047.50 -463,047.50 506,095.00
08/01/2029 --36,852.50 36,852.50 -36,852.50 -
02/01/2030 430,000.00 3.050%36,852.50 466,852.50 -466,852.50 503,705.00
08/01/2030 --30,295.00 30,295.00 -30,295.00 -
02/01/2031 440,000.00 3.150%30,295.00 470,295.00 -470,295.00 500,590.00
08/01/2031 --23,365.00 23,365.00 -23,365.00 -
02/01/2032 455,000.00 3.200%23,365.00 478,365.00 -478,365.00 501,730.00
08/01/2032 --16,085.00 16,085.00 -16,085.00 -
02/01/2033 470,000.00 3.300%16,085.00 486,085.00 -486,085.00 502,170.00
08/01/2033 --8,330.00 8,330.00 -8,330.00 -
02/01/2034 490,000.00 3.400%8,330.00 498,330.00 -498,330.00 506,660.00
Total $6,645,000.00 -$1,736,589.39 $8,381,589.39 (127,816.89)$8,253,772.50 -
Series 2018A GO Bonds - P | Issue Summary | 3/15/2018 | 11:12 AM
Page 3
City of Hopkins, Minnesota
$6,645,000 General Obligation Bonds, Series 2018A
Issue Summary
Assumes Current Market BQ AA+ Rates plus 25bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Assessments Levy/(Surplus)
02/01/2019 --127,816.89 127,816.89 (127,816.89)----
02/01/2020 395,000.00 1.800%179,742.50 574,742.50 -574,742.50 603,479.63 74,597.12 528,882.51
02/01/2021 410,000.00 1.950%172,632.50 582,632.50 -582,632.50 611,764.13 74,597.11 537,167.02
02/01/2022 415,000.00 2.100%164,637.50 579,637.50 -579,637.50 608,619.38 74,597.12 534,022.26
02/01/2023 425,000.00 2.250%155,922.50 580,922.50 -580,922.50 609,968.63 74,597.12 535,371.51
02/01/2024 440,000.00 2.350%146,360.00 586,360.00 -586,360.00 615,678.00 74,597.12 541,080.88
02/01/2025 445,000.00 2.500%136,020.00 581,020.00 -581,020.00 610,071.00 74,597.12 535,473.88
02/01/2026 455,000.00 2.650%124,895.00 579,895.00 -579,895.00 608,889.75 74,597.11 534,292.64
02/01/2027 475,000.00 2.750%112,837.50 587,837.50 -587,837.50 617,229.38 74,597.13 542,632.25
02/01/2028 480,000.00 2.850%99,775.00 579,775.00 -579,775.00 608,763.75 74,597.12 534,166.63
02/01/2029 420,000.00 2.950%86,095.00 506,095.00 -506,095.00 531,399.75 74,597.11 456,802.64
02/01/2030 430,000.00 3.050%73,705.00 503,705.00 -503,705.00 528,890.25 74,597.12 454,293.13
02/01/2031 440,000.00 3.150%60,590.00 500,590.00 -500,590.00 525,619.50 74,597.12 451,022.38
02/01/2032 455,000.00 3.200%46,730.00 501,730.00 -501,730.00 526,816.50 74,597.13 452,219.37
02/01/2033 470,000.00 3.300%32,170.00 502,170.00 -502,170.00 527,278.50 74,597.12 452,681.38
02/01/2034 490,000.00 3.400%16,660.00 506,660.00 -506,660.00 531,993.00 74,597.12 457,395.88
Total $6,645,000.00 -$1,736,589.39 $8,381,589.39 (127,816.89)$8,253,772.50 $8,666,461.13 $1,118,956.79 $7,547,504.34
Significant Dates
Dated 5/15/2018
First Coupon Date 2/01/2019
Yield Statistics
Bond Year Dollars $59,115.33
Average Life 8.896 Years
Average Coupon 2.9376294%
Net Interest Cost (NIC)3.0500367%
True Interest Cost (TIC)3.0482926%
Bond Yield for Arbitrage Purposes 2.9163867%
All Inclusive Cost (AIC)3.1711091%
Series 2018A GO Bonds - P | Issue Summary | 3/15/2018 | 11:12 AM
Page 4
City of Hopkins, Minnesota
$6,645,000 General Obligation Bonds, Series 2018A
Issue Summary
Assumes Current Market BQ AA+ Rates plus 25bps
Detail Costs Of Issuance
Dated 05/15/2018 | Delivered 05/15/2018
COSTS OF ISSUANCE DETAIL
Municipal Advisor $41,350.00
Bond Counsel $13,000.00
Rating Agency Fee (S&P)$5,700.00
Miscellaneous $1,000.00
TOTAL $61,050.00
Series 2018A GO Bonds - P | Issue Summary | 3/15/2018 | 11:12 AM
Page 9
City of Hopkins, Minnesota
$4,305,000 General Obligation Bonds, Series 2018A
2018 Street Projects - Improvement
Assumes Current Market BQ AA+ Rates plus 25bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
05/15/2018 -----
02/01/2019 --83,827.56 83,827.56 83,827.56
08/01/2019 --58,941.25 58,941.25 -
02/01/2020 240,000.00 1.800%58,941.25 298,941.25 357,882.50
08/01/2020 --56,781.25 56,781.25 -
02/01/2021 245,000.00 1.950%56,781.25 301,781.25 358,562.50
08/01/2021 --54,392.50 54,392.50 -
02/01/2022 250,000.00 2.100%54,392.50 304,392.50 358,785.00
08/01/2022 --51,767.50 51,767.50 -
02/01/2023 255,000.00 2.250%51,767.50 306,767.50 358,535.00
08/01/2023 --48,898.75 48,898.75 -
02/01/2024 265,000.00 2.350%48,898.75 313,898.75 362,797.50
08/01/2024 --45,785.00 45,785.00 -
02/01/2025 270,000.00 2.500%45,785.00 315,785.00 361,570.00
08/01/2025 --42,410.00 42,410.00 -
02/01/2026 275,000.00 2.650%42,410.00 317,410.00 359,820.00
08/01/2026 --38,766.25 38,766.25 -
02/01/2027 285,000.00 2.750%38,766.25 323,766.25 362,532.50
08/01/2027 --34,847.50 34,847.50 -
02/01/2028 290,000.00 2.850%34,847.50 324,847.50 359,695.00
08/01/2028 --30,715.00 30,715.00 -
02/01/2029 300,000.00 2.950%30,715.00 330,715.00 361,430.00
08/01/2029 --26,290.00 26,290.00 -
02/01/2030 305,000.00 3.050%26,290.00 331,290.00 357,580.00
08/01/2030 --21,638.75 21,638.75 -
02/01/2031 315,000.00 3.150%21,638.75 336,638.75 358,277.50
08/01/2031 --16,677.50 16,677.50 -
02/01/2032 325,000.00 3.200%16,677.50 341,677.50 358,355.00
08/01/2032 --11,477.50 11,477.50 -
02/01/2033 335,000.00 3.300%11,477.50 346,477.50 357,955.00
08/01/2033 --5,950.00 5,950.00 -
02/01/2034 350,000.00 3.400%5,950.00 355,950.00 361,900.00
Total $4,305,000.00 -$1,174,505.06 $5,479,505.06 -
Yield Statistics
Bond Year Dollars $39,621.33
Average Life 9.204 Years
Average Coupon 2.9643249%
Net Interest Cost (NIC)3.0729785%
True Interest Cost (TIC)3.0719033%
Bond Yield for Arbitrage Purposes 2.9163867%
All Inclusive Cost (AIC)3.1912342%
IRS Form 8038
Net Interest Cost 2.9643249%
Weighted Average Maturity 9.204 Years
Series 2018A GO Bonds - P | 2018 Street Projects - Im | 3/15/2018 | 11:12 AM
Page 10
City of Hopkins, Minnesota
$4,305,000 General Obligation Bonds, Series 2018A
2018 Street Projects - Improvement
Assumes Current Market BQ AA+ Rates plus 25bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Assessments Levy/(Surplus)
02/01/2019 --83,827.56 83,827.56 (83,827.56)----
02/01/2020 240,000.00 1.800%117,882.50 357,882.50 -357,882.50 375,776.63 74,597.12 301,179.51
02/01/2021 245,000.00 1.950%113,562.50 358,562.50 -358,562.50 376,490.63 74,597.11 301,893.52
02/01/2022 250,000.00 2.100%108,785.00 358,785.00 -358,785.00 376,724.25 74,597.12 302,127.13
02/01/2023 255,000.00 2.250%103,535.00 358,535.00 -358,535.00 376,461.75 74,597.12 301,864.63
02/01/2024 265,000.00 2.350%97,797.50 362,797.50 -362,797.50 380,937.38 74,597.12 306,340.26
02/01/2025 270,000.00 2.500%91,570.00 361,570.00 -361,570.00 379,648.50 74,597.12 305,051.38
02/01/2026 275,000.00 2.650%84,820.00 359,820.00 -359,820.00 377,811.00 74,597.11 303,213.89
02/01/2027 285,000.00 2.750%77,532.50 362,532.50 -362,532.50 380,659.13 74,597.13 306,062.00
02/01/2028 290,000.00 2.850%69,695.00 359,695.00 -359,695.00 377,679.75 74,597.12 303,082.63
02/01/2029 300,000.00 2.950%61,430.00 361,430.00 -361,430.00 379,501.50 74,597.11 304,904.39
02/01/2030 305,000.00 3.050%52,580.00 357,580.00 -357,580.00 375,459.00 74,597.12 300,861.88
02/01/2031 315,000.00 3.150%43,277.50 358,277.50 -358,277.50 376,191.38 74,597.12 301,594.26
02/01/2032 325,000.00 3.200%33,355.00 358,355.00 -358,355.00 376,272.75 74,597.13 301,675.62
02/01/2033 335,000.00 3.300%22,955.00 357,955.00 -357,955.00 375,852.75 74,597.12 301,255.63
02/01/2034 350,000.00 3.400%11,900.00 361,900.00 -361,900.00 379,995.00 74,597.12 305,397.88
Total $4,305,000.00 -$1,174,505.06 $5,479,505.06 (83,827.56)$5,395,677.50 $5,665,461.38 $1,118,956.79 $4,546,504.59
Significant Dates
Dated 5/15/2018
First Coupon Date 2/01/2019
Yield Statistics
Bond Year Dollars $39,621.33
Average Life 9.204 Years
Average Coupon 2.9643249%
Net Interest Cost (NIC)3.0729785%
True Interest Cost (TIC)3.0719033%
Bond Yield for Arbitrage Purposes 2.9163867%
All Inclusive Cost (AIC)3.1912342%
Series 2018A GO Bonds - P | 2018 Street Projects - Im | 3/15/2018 | 11:12 AM
Page 12
City of Hopkins, Minnesota
$1,725,000 General Obligation Bonds, Series 2018A
Blake Road - Street Reconstruction
Assumes Current Market BQ AA+ Rates plus 25bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF Net New D/S
105% of
Total
02/01/2019 --33,589.33 33,589.33 (33,589.33)--
02/01/2020 95,000.00 1.800%47,235.00 142,235.00 -142,235.00 149,346.75
02/01/2021 100,000.00 1.950%45,525.00 145,525.00 -145,525.00 152,801.25
02/01/2022 100,000.00 2.100%43,575.00 143,575.00 -143,575.00 150,753.75
02/01/2023 105,000.00 2.250%41,475.00 146,475.00 -146,475.00 153,798.75
02/01/2024 105,000.00 2.350%39,112.50 144,112.50 -144,112.50 151,318.13
02/01/2025 105,000.00 2.500%36,645.00 141,645.00 -141,645.00 148,727.25
02/01/2026 110,000.00 2.650%34,020.00 144,020.00 -144,020.00 151,221.00
02/01/2027 115,000.00 2.750%31,105.00 146,105.00 -146,105.00 153,410.25
02/01/2028 115,000.00 2.850%27,942.50 142,942.50 -142,942.50 150,089.63
02/01/2029 120,000.00 2.950%24,665.00 144,665.00 -144,665.00 151,898.25
02/01/2030 125,000.00 3.050%21,125.00 146,125.00 -146,125.00 153,431.25
02/01/2031 125,000.00 3.150%17,312.50 142,312.50 -142,312.50 149,428.13
02/01/2032 130,000.00 3.200%13,375.00 143,375.00 -143,375.00 150,543.75
02/01/2033 135,000.00 3.300%9,215.00 144,215.00 -144,215.00 151,425.75
02/01/2034 140,000.00 3.400%4,760.00 144,760.00 -144,760.00 151,998.00
Total $1,725,000.00 -$470,676.83 $2,195,676.83 (33,589.33)$2,162,087.50 $2,270,191.88
Significant Dates
Dated 5/15/2018
First Coupon Date 2/01/2019
Yield Statistics
Bond Year Dollars $15,876.67
Average Life 9.204 Years
Average Coupon 2.9645822%
Net Interest Cost (NIC)3.0732322%
True Interest Cost (TIC)3.0721482%
Bond Yield for Arbitrage Purposes 2.9163867%
All Inclusive Cost (AIC)3.1914810%
Series 2018A GO Bonds - P | Blake Road - Street Recon | 3/15/2018 | 11:12 AM
Page 15
City of Hopkins, Minnesota
$615,000 General Obligation Bonds, Series 2018A
Equipment Certificate
Assumes Current Market BQ AA+ Rates plus 25bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF
Net New
D/S
105% of
Total
02/01/2019 --10,400.00 10,400.00 (10,400.00)--
02/01/2020 60,000.00 1.800%14,625.00 74,625.00 -74,625.00 78,356.25
02/01/2021 65,000.00 1.950%13,545.00 78,545.00 -78,545.00 82,472.25
02/01/2022 65,000.00 2.100%12,277.50 77,277.50 -77,277.50 81,141.38
02/01/2023 65,000.00 2.250%10,912.50 75,912.50 -75,912.50 79,708.13
02/01/2024 70,000.00 2.350%9,450.00 79,450.00 -79,450.00 83,422.50
02/01/2025 70,000.00 2.500%7,805.00 77,805.00 -77,805.00 81,695.25
02/01/2026 70,000.00 2.650%6,055.00 76,055.00 -76,055.00 79,857.75
02/01/2027 75,000.00 2.750%4,200.00 79,200.00 -79,200.00 83,160.00
02/01/2028 75,000.00 2.850%2,137.50 77,137.50 -77,137.50 80,994.38
Total $615,000.00 -$91,407.50 $706,407.50 (10,400.00)$696,007.50 $730,807.88
Significant Dates
Dated 5/15/2018
First Coupon Date 2/01/2019
Yield Statistics
Bond Year Dollars $3,617.33
Average Life 5.882 Years
Average Coupon 2.5269305%
Net Interest Cost (NIC)2.6969453%
True Interest Cost (TIC)2.7049964%
Bond Yield for Arbitrage Purposes 2.9163867%
All Inclusive Cost (AIC)2.8790412%
Series 2018A GO Bonds - P | Equipment Certificate | 3/15/2018 | 11:12 AM
Page 18
City of Hopkins, Minnesota
$772,016 General Obligation Bonds, Series 2018A
Assessments
2.00% over TIC - Equal P&I
Assessments
Date Principal Coupon Interest Total P+I
12/31/2019 35,644.13 5.050%38,952.99 74,597.12
12/31/2020 37,444.15 5.050%37,152.96 74,597.11
12/31/2021 39,335.08 5.050%35,262.04 74,597.12
12/31/2022 41,321.50 5.050%33,275.62 74,597.12
12/31/2023 43,408.24 5.050%31,188.88 74,597.12
12/31/2024 45,600.36 5.050%28,996.76 74,597.12
12/31/2025 47,903.17 5.050%26,693.94 74,597.11
12/31/2026 50,322.29 5.050%24,274.84 74,597.13
12/31/2027 52,863.56 5.050%21,733.56 74,597.12
12/31/2028 55,533.17 5.050%19,063.94 74,597.11
12/31/2029 58,337.60 5.050%16,259.52 74,597.12
12/31/2030 61,283.64 5.050%13,313.48 74,597.12
12/31/2031 64,378.47 5.050%10,218.66 74,597.13
12/31/2032 67,629.58 5.000%6,967.54 74,597.12
12/31/2033 71,011.06 5.050%3,586.06 74,597.12
Total $772,016.00 -$346,940.79 $1,118,956.79
Significant Dates
Filing Date 1/01/2019
First Payment Date 12/31/2019
Series 2018A GO Bonds - A | SINGLE PURPOSE | 3/15/2018 | 11:14 AM
Page 1
March 20, 2018
Pre-Sale Report for
City of Hopkins, Minnesota
$3,355,000 General Obligation Tax Abatement Bonds,
Series 2018B
Prepared by:
Stacie Kvilvang, CIPMA
Senior Municipal Advisor
And
Jason Aarsvold, CIPMA
Senior Municipal Advisor
And
James Lehnhoff,
Municipal Advisor
Presale Report
City of Hopkins, Minnesota
March 20, 2018
Page 1
Executive Summary of Proposed Debt
Proposed Issue: $3,355,000 General Obligation Tax Abatement Bonds, Series 2018A
Purposes: The proposed issue includes financing for improvements to the City Ice Arena
(Pavilion). Debt service will be paid from tax abatement revenues and ad valorem
property taxes (tax abatement revenues will pay for principal on the Bonds).
Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters:
469.1814 – Tax Abatement
475 – General bonding authority
The City held the required public hearing on the tax abatement and public purpose
it serves in 2017. 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 2018 NTC is $21,691,670 and 10% equates to 2,169,167.
Therefore, the greater of these two calculations is 10% of the NTC.
The City’s payment on the proposed 2018B Tax Abatement Bond issue plus the
other outstanding abatement bond payments is approximately $702,000/year,
which is well below the statutory maximum of $2,169,167
The Bonds will be general obligations of the City for which its full faith, credit
and taxing powers are pledged.
Term/Call Feature: The Bonds are being issued for a 16-year term. Principal on the Bonds will be due
on February 1 in the years 2020 through 2034. Interest is payable every six months
beginning February 1, 2019.
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 expecting to issue no more than $10,000,000 in tax exempt
debt during 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: 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
Presale Report
City of Hopkins, Minnesota
March 20, 2018
Page 2
options, we are recommending the issuance of general obligation bonds as a
suitable financing option for the following reasons:
- This is the only viable option 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 1.00% 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 reduce the size of the Bonds on
the day of sale. 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.
Presale Report
City of Hopkins, Minnesota
March 20, 2018
Page 3
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.
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: Standard & Poor's Global Ratings (S&P)
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.
Presale Report
City of Hopkins, Minnesota
March 20, 2018
Page 4
Proposed Debt Issuance Schedule
Pre-Sale Review by City Council: March 20, 2018
Distribute Official Statement: Week of April 2, 2018
Conference with Rating Agency: Week of April 9, 2018
City Council Meeting to Award Sale of the Bonds: April 17, 2018
Estimated Closing Date: May 15, 2018
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: Silvia Johnson (651) 697-8580
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
$3,355,000 General Obligation Tax Abatement Bonds, Series 2018B
Assumes Current Market BQ AA+ Rates plus 25bps
Sources & Uses
Dated 05/15/2018 | Delivered 05/15/2018
Sources Of Funds
Par Amount of Bonds $3,355,000.00
Hockey Assn Funds 1,000,000.00
School District Funds 1,000,000.00
Park Funds 600,000.00
Total Sources $5,955,000.00
Uses Of Funds
Total Underwriter's Discount (1.000%)33,550.00
Costs of Issuance 52,025.00
Deposit to Capitalized Interest (CIF) Fund 65,319.11
Deposit to Project Construction Fund 5,800,000.00
Rounding Amount 4,105.89
Total Uses $5,955,000.00
Series 2018B GO Tax Abate | Pavillion - Tax Abatement | 3/15/2018 | 11:16 AM
Page 1
City of Hopkins, Minnesota
$3,355,000 General Obligation Tax Abatement Bonds, Series 2018B
Assumes Current Market BQ AA+ Rates plus 25bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
05/15/2018 -----
02/01/2019 --65,319.11 65,319.11 65,319.11
08/01/2019 --45,927.50 45,927.50 -
02/01/2020 190,000.00 1.800%45,927.50 235,927.50 281,855.00
08/01/2020 --44,217.50 44,217.50 -
02/01/2021 190,000.00 1.950%44,217.50 234,217.50 278,435.00
08/01/2021 --42,365.00 42,365.00 -
02/01/2022 195,000.00 2.100%42,365.00 237,365.00 279,730.00
08/01/2022 --40,317.50 40,317.50 -
02/01/2023 200,000.00 2.250%40,317.50 240,317.50 280,635.00
08/01/2023 --38,067.50 38,067.50 -
02/01/2024 205,000.00 2.350%38,067.50 243,067.50 281,135.00
08/01/2024 --35,658.75 35,658.75 -
02/01/2025 210,000.00 2.500%35,658.75 245,658.75 281,317.50
08/01/2025 --33,033.75 33,033.75 -
02/01/2026 215,000.00 2.650%33,033.75 248,033.75 281,067.50
08/01/2026 --30,185.00 30,185.00 -
02/01/2027 220,000.00 2.750%30,185.00 250,185.00 280,370.00
08/01/2027 --27,160.00 27,160.00 -
02/01/2028 225,000.00 2.850%27,160.00 252,160.00 279,320.00
08/01/2028 --23,953.75 23,953.75 -
02/01/2029 230,000.00 2.950%23,953.75 253,953.75 277,907.50
08/01/2029 --20,561.25 20,561.25 -
02/01/2030 240,000.00 3.050%20,561.25 260,561.25 281,122.50
08/01/2030 --16,901.25 16,901.25 -
02/01/2031 245,000.00 3.150%16,901.25 261,901.25 278,802.50
08/01/2031 --13,042.50 13,042.50 -
02/01/2032 255,000.00 3.200%13,042.50 268,042.50 281,085.00
08/01/2032 --8,962.50 8,962.50 -
02/01/2033 265,000.00 3.300%8,962.50 273,962.50 282,925.00
08/01/2033 --4,590.00 4,590.00 -
02/01/2034 270,000.00 3.400%4,590.00 274,590.00 279,180.00
Total $3,355,000.00 -$915,206.61 $4,270,206.61 -
Yield Statistics
Bond Year Dollars $30,870.78
Average Life 9.201 Years
Average Coupon 2.9646374%
Net Interest Cost (NIC)3.0733162%
True Interest Cost (TIC)3.0722343%
Bond Yield for Arbitrage Purposes 2.9440209%
All Inclusive Cost (AIC)3.2746002%
IRS Form 8038
Net Interest Cost 2.9646374%
Weighted Average Maturity 9.201 Years
Series 2018B GO Tax Abate | Pavillion - Tax Abatement | 3/15/2018 | 11:16 AM
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City of Hopkins, Minnesota
$3,355,000 General Obligation Tax Abatement Bonds, Series 2018B
Assumes Current Market BQ AA+ Rates plus 25bps
Net Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF Net New D/S
Fiscal
Total
05/15/2018 -------
02/01/2019 --65,319.11 65,319.11 (65,319.11)--
08/01/2019 --45,927.50 45,927.50 -45,927.50 -
02/01/2020 190,000.00 1.800%45,927.50 235,927.50 -235,927.50 281,855.00
08/01/2020 --44,217.50 44,217.50 -44,217.50 -
02/01/2021 190,000.00 1.950%44,217.50 234,217.50 -234,217.50 278,435.00
08/01/2021 --42,365.00 42,365.00 -42,365.00 -
02/01/2022 195,000.00 2.100%42,365.00 237,365.00 -237,365.00 279,730.00
08/01/2022 --40,317.50 40,317.50 -40,317.50 -
02/01/2023 200,000.00 2.250%40,317.50 240,317.50 -240,317.50 280,635.00
08/01/2023 --38,067.50 38,067.50 -38,067.50 -
02/01/2024 205,000.00 2.350%38,067.50 243,067.50 -243,067.50 281,135.00
08/01/2024 --35,658.75 35,658.75 -35,658.75 -
02/01/2025 210,000.00 2.500%35,658.75 245,658.75 -245,658.75 281,317.50
08/01/2025 --33,033.75 33,033.75 -33,033.75 -
02/01/2026 215,000.00 2.650%33,033.75 248,033.75 -248,033.75 281,067.50
08/01/2026 --30,185.00 30,185.00 -30,185.00 -
02/01/2027 220,000.00 2.750%30,185.00 250,185.00 -250,185.00 280,370.00
08/01/2027 --27,160.00 27,160.00 -27,160.00 -
02/01/2028 225,000.00 2.850%27,160.00 252,160.00 -252,160.00 279,320.00
08/01/2028 --23,953.75 23,953.75 -23,953.75 -
02/01/2029 230,000.00 2.950%23,953.75 253,953.75 -253,953.75 277,907.50
08/01/2029 --20,561.25 20,561.25 -20,561.25 -
02/01/2030 240,000.00 3.050%20,561.25 260,561.25 -260,561.25 281,122.50
08/01/2030 --16,901.25 16,901.25 -16,901.25 -
02/01/2031 245,000.00 3.150%16,901.25 261,901.25 -261,901.25 278,802.50
08/01/2031 --13,042.50 13,042.50 -13,042.50 -
02/01/2032 255,000.00 3.200%13,042.50 268,042.50 -268,042.50 281,085.00
08/01/2032 --8,962.50 8,962.50 -8,962.50 -
02/01/2033 265,000.00 3.300%8,962.50 273,962.50 -273,962.50 282,925.00
08/01/2033 --4,590.00 4,590.00 -4,590.00 -
02/01/2034 270,000.00 3.400%4,590.00 274,590.00 -274,590.00 279,180.00
Total $3,355,000.00 -$915,206.61 $4,270,206.61 (65,319.11)$4,204,887.50 -
Series 2018B GO Tax Abate | Pavillion - Tax Abatement | 3/15/2018 | 11:16 AM
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City of Hopkins, Minnesota
$3,355,000 General Obligation Tax Abatement Bonds, Series 2018B
Assumes Current Market BQ AA+ Rates plus 25bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Levy/(Surplus)
02/01/2019 --65,319.11 65,319.11 (65,319.11)---
02/01/2020 190,000.00 1.800%91,855.00 281,855.00 -281,855.00 295,947.75 295,947.75
02/01/2021 190,000.00 1.950%88,435.00 278,435.00 -278,435.00 292,356.75 292,356.75
02/01/2022 195,000.00 2.100%84,730.00 279,730.00 -279,730.00 293,716.50 293,716.50
02/01/2023 200,000.00 2.250%80,635.00 280,635.00 -280,635.00 294,666.75 294,666.75
02/01/2024 205,000.00 2.350%76,135.00 281,135.00 -281,135.00 295,191.75 295,191.75
02/01/2025 210,000.00 2.500%71,317.50 281,317.50 -281,317.50 295,383.38 295,383.38
02/01/2026 215,000.00 2.650%66,067.50 281,067.50 -281,067.50 295,120.88 295,120.88
02/01/2027 220,000.00 2.750%60,370.00 280,370.00 -280,370.00 294,388.50 294,388.50
02/01/2028 225,000.00 2.850%54,320.00 279,320.00 -279,320.00 293,286.00 293,286.00
02/01/2029 230,000.00 2.950%47,907.50 277,907.50 -277,907.50 291,802.88 291,802.88
02/01/2030 240,000.00 3.050%41,122.50 281,122.50 -281,122.50 295,178.63 295,178.63
02/01/2031 245,000.00 3.150%33,802.50 278,802.50 -278,802.50 292,742.63 292,742.63
02/01/2032 255,000.00 3.200%26,085.00 281,085.00 -281,085.00 295,139.25 295,139.25
02/01/2033 265,000.00 3.300%17,925.00 282,925.00 -282,925.00 297,071.25 297,071.25
02/01/2034 270,000.00 3.400%9,180.00 279,180.00 -279,180.00 293,139.00 293,139.00
Total $3,355,000.00 -$915,206.61 $4,270,206.61 (65,319.11)$4,204,887.50 $4,415,131.88 $4,415,131.88
Significant Dates
Dated 5/15/2018
First Coupon Date 2/01/2019
Yield Statistics
Bond Year Dollars $30,870.78
Average Life 9.201 Years
Average Coupon 2.9646374%
Net Interest Cost (NIC)3.0733162%
True Interest Cost (TIC)3.0722343%
Bond Yield for Arbitrage Purposes 2.9440209%
All Inclusive Cost (AIC)3.2746002%
Series 2018B GO Tax Abate | Pavillion - Tax Abatement | 3/15/2018 | 11:16 AM
Page 4
City of Hopkins, Minnesota
$3,355,000 General Obligation Tax Abatement Bonds, Series 2018B
Assumes Current Market BQ AA+ Rates plus 25bps
Detail Costs Of Issuance
Dated 05/15/2018 | Delivered 05/15/2018
COSTS OF ISSUANCE DETAIL
Municipal Advisor $27,325.00
Bond Counsel $18,000.00
Rating Agency Fee (S&P)$5,700.00
Miscellaneous $1,000.00
TOTAL $52,025.00
Series 2018B GO Tax Abate | Pavillion - Tax Abatement | 3/15/2018 | 11:16 AM
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