Memo - Bond Refunding
CITY OF HOPKINS
I FINANCE DEPARTMENT I
MEMORANDUM
Date: September 6, 2005
To: Mayor & City Council
From: Christine Harkess, Finance Director
Subject: Bond Refunding
Following a review of our outstanding bond issues Ehlers & Associates is recommending that we
refund four issues. We would refund those four issues and issue two new bond issues as follows:
Issue $1,640,000 GO Tax Increment Refunding Bonds to refund the following issues:
$500,000 GO Tax Increment Bonds of 1996C
$2,240,000 GO Tax Increment Bonds of 1997 A
Cost savings is estimated at $83,583.14 or approximately a 5% savings
Issue $1,775,000 GO Taxable Refunding Bonds to refund the following issues:
$1,700,000 GO Housing Improvement Bonds of 1997B
$680,000 Taxable GO Tax Increment Bonds of 1996D
Cost savings is estimated at $180,216.73 or approximately a 10% savings
We will be asking Standard & Poor's to rate this issue. We currently have an AA- rating on our
outstanding GO bonds.
We have the bond sale scheduled for the September 20,2005 council meeting and a
representative from Ehlers will be present to present the bids and assist with the sale.
In addition, attached is a resolution you will need to approve this evening providing
authorization for Ehlers to solicit bids on our behalf for the bond sale on September 20, 2005.
City of Hopkins, Minnesota
Pre-Sale Report
September 13, 2005
Proposed Issues:
. $1,640,000 General Obligation Tax Increment Refunding Bonds
. $1,775,000 General Obligation Taxable Refunding Bonds
Purpose:
The proposed $1,640,000 General Obligation Tax Increment Refunding Bonds are being issued to refund
the $500,000 General Obligation Tax Increment Bonds, Series 1996C and the $2,240,000 General
Obligation Tax Increment Bonds, Series 1997 A. The bonds are a current refunding of the issues and are
being issued pursuant to Minnesota Statutes, Chapters 475 and 469. They are estimated to provide the
City of Hopkins with a net present value benefit of$83,583.14 or approximately 5 percent.
The proposed $1,775,000 General Obligation Taxable Refunding Bonds are being issued to refund the
$1,700,000 Taxable General Obligation Housing Improvement Bonds, Series 1997B and the $680,000
Taxable General Obligation Tax Increment Bonds, Series 1996D. The bonds are a current refunding of
the issues and are being issued pursuant to Minnesota Statutes, Chapters 475, 469, and 428A. They are
estimated to provide the City with a net present value benefit of$180,216.73 or approximately 10 percent.
Term/Call Feature:
The proposed current refunding of the $500,000 General Obligation Tax Increment Bonds, Series 1996C
and the $2,240,000 General Obligation Tax Increment Bonds, Series 1997A, will have a lO-year term
with the first principal payment in February 2007. The bonds will mature in February 2016.
The proposed current refunding of the $1,700,000 Taxable General Obligation Housing Improvement
Bonds, Series 1997B and the $680,000 Taxable General Obligation Tax Increment Bonds, Series 1996D,
will have a 12-year term with the first principal payment in February 2007. The bonds will mature in
February 2018.
Funding Sources:
Refunding of the $500,000 General Obligation Tax Increment Bonds, Series 1996C and $2,240,000
General Obligation Tax Increment Bonds, Series 1997 A
Par Amount of Bonds
$1,640,000.00
$1,640,000.00
TOTAL SOURCES
Debt service will be paid through tax increment funds from TIF District 2-1 and a tax levy.
Refunding of the $1,700,000 Taxable General Obligation Housing Improvement Bonds, Series
1997B and $680,000 Taxable General Obligation Tax Increment Bonds, Series 1996D
Par Amouut of Bonds
$1,775,000.00
$1,775,000.00
TOTAL SOURCES
Debt service will be paid through tax increment funds, a tax levy and fees to the home owners that is
authorized by the Housing Improvement Act and adopted by resolution by the City.
Discussion Issues:
Following is a suuunary of key factors in the finance plan:
The City (in combination with any subordinate taxing jurisdictions or debt issued in the City's
name by 501(c)3 corporations) will not issue more than a total of $10,000,000 in tax-exempt debt
during this calendar year. This will allow the Bonds to be designated as bank qualified. Having
bank qualified status may reduce the interest rates.
Because the City is issuing less than $5,000,000 in tax-exempt obligations during calendar year
2005, the debt will qualify for the small issuer exemption from arbitrage rebate.
. The Bonds will be global book entry with a bank designated as the paying agent. As "paperless"
bonds, you will avoid the costs of bond printing and annual registrar charges. The Paying Agent
will invoice you for the interest semi-annually and on an annual basis for the principal coming
due. You will be charged only for paying agent/transfer agent services provided by the bank.
. Bidders on this issue may submit a bid, which contains a maturity schedule providing for any
combination of serial bonds and term bonds, subject to mandatory redemption. If the purchaser
of the Bonds designates certain of the maturities as Term Bonds, subject to a mandatory call, the
City will be responsible for providing a Notice of Call to holders of the Bonds at least 45 days
prior to the call date. Allowing potential purchasers the term bond option results in increased
bidder interest in this issue and possible lower interest rates.
. Standard & Poor's will be asked to rate this issue. The City currently has an "AA-" rating on its
outstanding general obligation bonds.
. Because the aggregate amount of this issue is over $1,000,000 and the City has more than
$10,000,000 in total municipal obligations outstanding, you will be obligated to comply with Full
Continuing Disclosure requirements as required by paragraph (b)( 5) of Rule 15c2-12
promulgated by the Securities and Exchange Commission under the Securities Exchange Act of
1934. You will be required to provide certain financial information and operating data relating to
the City annually and to provide notices of the occurrence of certain material events. The
specific nature of the Undertaking, as well as the information to be contained in the notices of
material events will be set forth in the Continuing Disclosure Undertaking that you will enter into
at the time of closing for this issue.
Schedule:
Distribute Official Statement:
September 8, 2005
September 13, 2005
Week of September 12, 2005
September 20, 2005
Post-November 5, 2005
Council Work Session:
Conference with Rating Agency:
Bond Sale:
Estimated Closing Date:
Attachments:
Issue Summary for the Proposed Current Refunding of Series 1996C and 1997 A
Issue Summary for the Proposed Current Refunding of Series 1997B and 1996D
Resolution authorizing Ehlers to proceed with bond sale
Ehlen Contacts:
Financial Advisors:
Sid Inman (651) 697-8507
Rebecca Kurtz (651) 697-8516
Diana Lockard (651) 697-8534
Debbie Holmes (651) 697-8536
Connie Kuck (651) 697-8527
Bond Analysts:
Bond Sale Coordinator:
The Official Statement for this financing will be mailed to the Council Members at their home address for
review prior to the sale date.
CITY OF HOPKINS
Hennepin County, Minnesota
RESOLUTON NO. 2005-086
Council Member
introduced the following resolution and moved its adoption:
Resolution Providing for the Sale of
$1,640,000 General Obligation Tax Increment Refunding Bonds
and $1,775,000 General Obligation Taxable Refunding Bonds
A. WHEREAS, the City Council of the City of Hopkins, Minnesota, has heretofore determined that it is
necessary and expedient to issue$1,640,000 General Obligation Tax Increment Refunding Bonds to
refund the City's $500,000 General Obligation Tax Increment Bonds, Series 1996C and the
$2,240,000 General Obligation Tax Increment Bonds, Series 1997A and to issue $1,775,000 General
Obligation Taxable Refunding Bonds to refund the City's $1,700,000 Taxable General Obligation
Housing Improvement Bonds, Series 1997B and the $680,000 Taxable General Obligation Tax
Increment Bonds, Series 1996D to provide an estimated net present value benefit of $83,583.14, or
approximately 5 percent, and $180,216.73, or approximately 10 percent, respectively.
B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its
independent financial advisor for the Bonds and is therefore authorized to solicit proposals in
accordance with Minnesota Statutes, Section 475, 469 and 428A;
NOW, THEREFORE, BE IT RESOLVED by the City Council of Hopkins, Minnesota, as follows:
1. Authorization: Findings. The City Council hereby authorizes Ehlers to solicit proposals for the sale
of the Bonds.
2. Meeting: Prooosa1 Ooening. The City Council shall meet at 7:30 p.m. on September 20,2005, for the
purpose of considering sealed 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 Council Member
and, after full discussion thereof and upon a vote being taken thereon, the
following Council Members voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted.
Dated this 13th day of September, 2005.
By
Eugene Maxwell, Mayor
ATTEST:
Terry Obermaier, City Clerk
Prepared by Ehlers & Associates, Inc.
City of Hopkins, MN
Issue Summary. Proposed Current Refunding of
Series 1996C ($500,000) & Series 1997A ($2,240,000)
Table of Contents
Report
ISSUE SUMMARY
Prior Original Debt SerVice............................................ .............................................................................................................................
Debt Service Schedule......................................................................................,........................................................................................ 3
Total fssue Sources And Uses................................;.................................................................................................................................. 4
Debt Service Comparison................................................. ................................................... ...................................................................... 5.
Current Refunding Escrow......................................................................................................................................................................... 6
CUR OF 96C
Debt Service Comparison.......................................................................................................................................................................... 7
CUR OF 97A
Debt Service Comparison.......................................................................................................................................................................... 8
OSCurofScr9GC&97A {lssueSummsty { 8/18/2005 {8:98PM
Ehlers & Associates, Inc.
Leaders in Public Finance
City of Hopkins, MN
$500,000 G.O. Tax Increment Bonds, Series 1996C
Prior Original Debt Service
Oat.
Princioal
COUDOn
Interest Total P+I
14,250.00 14.250.00
14,250.00 14,250.00
14,250.00 14,250.00
14,250.00 14,250.00
14,250.00 14,250.00
14.250.00 14,250.00
14.250.00 14,250.00
14,250.00 14,250.00
14,250.00 14,250.00
14,250.00 14,250.00
14.250.00 14.250.00
14,250.00 99.250.00
11,827.50 11,827.50
11,827.50 106,827.50
9,120.00 9.120.00
9.120.00 109,120.00
6,270.00 6,270.00
6,270.00 111,270.00
3.277.50 3,277.50
3,277.50 118,277.50
$231,990.00 $731.990.00
Fiscal Total
02101/2006
08/01/2006
0210112007
08/01/2007
02101/2008
08/01/2008
02101/2009
08/01/2009
02101/2010
08/01/2010
02101/2011
08/0112011
02101/2012
08/01/2012
02101/2013
08/01/2013
02101/2014
08/01/2014
02101/2015
08/01/2015
02101/2016
Total
28,500.00
28,500.00
28,500.00
28,500.00
28,500.00
85,000.00 5.700%
95,000.00 5.700%
100.000.00 5.700%
105.000.00 5.700%
115,000.00 5.700%
$500.000.00
113,500.00
118,655.00
118.240.00
117,540.00
121,555.00
Yield Statistics
Av.rag. Lif................................................................................................................................................................................ 8.379 Y.ars
Weight.d Av.rag. Maturity (Par 8O$i8)..........".......................................................................................................................... 8.379 Year8
Averag. Coupon....................... .................................................................................................................................................. 5.5374884%
Refunding Bond Information
Refunding Dated Date................................................................................................................................................................
Refunding Delivery Date.......................................... ...................................................................................................................
11/05/2005
11/05/2005
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City of Hopkins, MN
$2,240,000 G.O. Tax Increment Bonds, Series 1997A
Prior Original Debt Service
Dale Princioal GauDOn Interest Tolal P+I
02101/2006
08/01/2006 28,687.50 28,587.50
02101/2007 160,000.00 5.000% 28,587.50 188,587.50
08/01/2007 24.587.50 24,587.50
02101/2008 170,000.00 5.000% 24,587.50 194.587.50
08/01/2008 20,337.50 20,337.50
02101/2009 180,000.00 5.150% 20,337.50 200,337.50
08/01/2009 15,702.50 15.702.50
02101/2010 190,000.00 5.200% 15,702.50 205.702.50
08/01/2010 10.762.50 10,762.50
02101/2011 200,000.00 5.250% 10,762.50 210,762.50
08/01/2011 5,512.50 5,512.50
02101/2012 210,000.00 5.250% 5,512.50 215,512.50
Total $1,110,000.00 $210,980.00 $1,320,980.00
Yield Statistics
Fiscal TOlal
217,175.00
219,175.00
220,675.00
221,405.00
221,525.00
221,025.00
Average Life....................................................... ........................................................................................................................3.897Years
Welghled Average Malurity (Par 8asls)...................................................................................................................................... 3.897 Years
Average Coupon................................................... ......................................................................................................................4.87796230/0
Refunding Bond Information
Refunding Oaled Dale................................................................................................................................................................ 11/05/2005
Refunding Delivery Dale............................................................................................................................................................. 11/05/2005
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Page 2
City of Hopkins, MN
ISSue Summary - Proposed Current Refunding of
Series 1996C ($500,000) & Series 1997 A ($2,240,000)
Debt Service Schedule
Date Principal Coupon Interest Total P+I
11/05/2005
08/01/2006 42,726.26 42,728.26
02/01/2007 165,000.00 3.000% 28,912.50 193,912.60
08/01/2007 26,437.50 26,437.60
02/01/2008 180,000.00 3.150% 26,437.50 206,437.50
08101/2008 23,602.50 23,602.50
02/01/2009 185,000.00 3.300% 23,602.50 208,602.50
08/01/2009 20,550.00 20,550.00
02/01/2010 200.000.00 3.450% 20.550.00 220.550.00
08/01/2010 17,100.00 17,100.00
02/01/2011 205,000.00 3.550% 17,100.00 222,100.00
08101/2011 13,461.25 13,461.26
02/01/2012 295,000.00 3.700% 13,461.25 308,461.25
08/01/2012 8,003.75 8,003.75
02/01/2013 95,000.00 3.800% 8,003.75 103,003.75
08/01/2013 6,198.75 6,198.75
02/01/2014 100,000.00 3.850% 6,198.75 106.198.75
08/01/2014 4,273.75 4.273.75
02/01/2015 105.000.00 3.950% 4,273.75 109,273.75
08/01/2015 2,200.00 2.200.00
02/01/2016 110.000.00 4.000% 2.200.00 112,200.00
Total $1.640,000.00 $315.293.76 $1.955.293.76
Yield Statistics
Bond Year Dollars.................................................... ...................................................................................................................
Average Life........................................................ .......................................................................................................................
Average Coupon.................................................. .......................................................................................................................
Net Interest Cost (NIC)...............................................................................................................................................................
True Interest Cost (TIC)..............................................................................................................................................................
Bond Yield for Arbitrage Purposes..............................................................................................................................................
All Inclusive Cost (AI C).............. .................................................................................................................................................
IRS Form 8038
NetlnterestCost..................................................................................."....................................................................................
Weighted Average Maturity....... ..................................................................................................................................................
05CurofSerfJGC~fJ7A IISSIleSummmy I 8/18/2005 I 3:38PM
Fiscal Total
238,638.76
232,875.00
232,205.00
241,100.00
239,200.00
321,922.50
111.007.50
112,397.50
113.547.50
114,400.00
$8,576.78
5.230 Years
3.6761330%
3.8673470%
3.8799808%
3.6627405%
4.2035336%
3.6781330%
5.230 Years
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City of Hopkins, MN
Issue Summary. Proposed Current Refunding of
Series 1996C ($500,000) & Series 1997A ($2,240,000)
Total Issue Sources And Uses
Dated 11/0512005 J Delivered 11/05/2005
Cur of 96C
Cur of 97A
Issue
Summary
SOURCES OF FUNDS
Par Amount of Bonds.......................................................... $510,000.00
$1,130,000.00
$1,640.000.00
TOTAL SOURCES.............................................................. $510,000.00
$1,130,000.00
$1,640,000.00
USES OF FUNDS
Total Underwriter's Discount (1.000%)................................
Costs of Issuance................................................................
Deposit to Current Refunding Fund.....................................
Rounding Amount................................................................
5,100.00
7.463.41
495,934.71
1,501.88
11,300.00
16.536.59
1,100.975.03
1,188.38
16,400.00
24,000.00
1,596,909.74
2.690.26
TOTAL USES...................................................................... $510,000.00
$1,130,000.00
$1,640,000.00
OSCurofSer96C.R97A IlssueSummsty I 8/18/2005 I 3:38PM
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City of Hopkins, MN
Issue Summary - Proposed Current Refunding of
Series 1996C ($500,000) & Series 1997A ($2,240,000)
Debt Service Comparison
Date Total P+I Net New DIS Old Net DIS Savinas
0210112006 (2,690.26) 2,690.26
02101/2007 236,638.76 236,638.76 245,675.00 9,036.24
02101/2008 232,875.00 232,875.00 247,675.00 14,800.00
02101/2009 232,205.00 232.205.00 249,175.00 16,970.00
02101/2010 241,100.00 241,100.00 249,905.00 8,805.00
02101/2011 239,200.00 239,200.00 250,025.00 10,825.00
02101/2012 321,922.50 321,922.50 334,525.00 12.602.50
02101/2013 111,007.50 111,007.50 118,655.00 7,647.50
02101/2014 112,397.50 112,397.50 118,240.00 5,842.50
02101/2015 113,547.50 113,547.50 117,540.00 3,992.50
02101/2016 114,400.00 114,400.00 121,555.00 7,155.00
Total $1,955,293.76 $1,952,603.50 $2,052,970.00 $100.366.50
PV Analysis Summary (Net to Net)
Gross PV Debt Service Savings................................................................................................................................................... 80,892.88
Net PV Cashflow Savings @ 4.204%(AIC).................................................................................................................................. 80,892.88
Contingency or Rounding Amount................................................................................................................................................ 2,690.26
Net Present Value Benefit............................................................................................................................................................ $83,583.14
Net PV Benefit 1 $1,610.000 Refunded Principal.........................................................................................................................
Net PV Benefit 1 $1.640,000 Refunding Principal........................................................................................................................
5.191%
5.097%
Refunding Bond Information
Refunding Dated Dale.................................................................................................................................................................. 11/05/2005
Refunding Delivery Date........... .................................................................................................................................................... 11/05/2005
05CurofSer96C.f97A IIssueSummtuy I 8/18/2005 { 8:38PM
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City of Hopkins, MN
Issue Summary - Proposed Current-Refunding of
Series 1996C ($500,000) & Series 1997A ($2,240,000)
Current Refunding Escrow
Date Principal Rate Interest Recelots Disbursements Cash Balance
11/05/2005 0.74 0.74
02/01/2006 1,596,909.00 3.400% 13,090.26 1,609,999.26 1,610,000.00
Total $1,596,909.00 $13,090.26 $1,610,000.00 $1,610,000.00
Investment Parameters
Investment Model [PV, GIC. or Securitlesj...............................................................................................................................
Default investment yield target................ .................................................................................................................................
Securities
User Defined
Cash Oep05It.........................:.................................................................................................................................................
Cost of Investrnents Purchased with Bond Proceeds...............................................................................................................
Total Cost of Investments........................................................................................................................................................
0.74
1,596,909.00
$1.596,909.74
Target Cost of Investments at bond yle!d................................................................................................................................. $1,596.100.48
Actual positive or (negative) arbitrage,............................... ...................................................................................................... (809.26)
Yield to Receipt.......................... .......................................................................................................... .................................... 3.4467826%
Yield for Arbitrage Purposes.............................................................................................................................. ...................... 3.66274050/0
State and Local Government Series (SLGS) rates for.............................................................................................................. 8/18/2005
05CurofSU96C&97A flS$IJeSUmmfllY I 8/18/2005 I 9:98PM
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City of Hopkins, MN
Proposed Current Refunding of
$500,000 G.O. Tax Increment Bonds, Series 1996C
Purpose One
Debt Service Comparison
Dale Tolal P+I Net New D/S Old Net D/S Savlnas
02/0112006 (1,501.88) 1.501.88
02/01/2007 24,390.63 24,390.63 28,500.00 4,109.37
'02/01/2008 19,687.50 19,687.50 28,500.00 8,812.50
02/01/2009 19,687.50 19,687.50 28.500.00 8,812.50
02/01/2010 24,687.50 24,687.50 28,500.00 3,812.50
02/01/2011 24,515.00 24.515.00 28,500.00 3,985.00
02/0112012 109,337.50 109,337.50 113,500.00 4,162.50
02/01/2013 111,007.50 111,007.50 118,655.00 7,647.50
02/01/2014 112.397.50 112,397.50 118,240.00 5.842.50
02/01/2015 113,547.50 113,547.50 117,540.00 3,992.50
02/01/2016 114,400.00 114,400.00 121,555.00 7,155.00
Total $673.658.13 $672,156.25 $731,990.00 $59,833.75
PV Analysis Summary (Net to Net)
Gross PV Debt Service Savings........................... ......................................................................................................................... 46,906.77
Net PV Cashflow Savings @ 4.234%(AIC)................................................................................................................................... 46,906.77
Contingency or Rounding Amount................................................................................................................................................. 1,501.88
Net Present Value Benefit.................................. ........................................................................................................................... $48,408.65
Net PV Benefit/ $500,000 Refunded Prtncipal...........................................................................................................................
Net PV Benefit! $510.000 Refunding Prtncipal..........................................................................................................................
9.682%
9.492%
Refunding Bond Information
Refunding Dated Date................................................................................................................................................................... 11/05/2005
Refunding Delivery Date..........................................................................,..................................................................................... .11/05/2005
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City of Hopkins, MN
Proposed Current Refunding of
$2,240,000 G.O. Tax Increment Bonds, Series 1997A
Purpose Two
Debt Service Comparison
Date Total P+I Net New DIS Old Net DIS Savinas
02101/2006 (1,188.38) 1,188.38
02101/2007 212,248.13 212,248.13 217,175.00 4,926.87
02101/2008 213,187.50 213,187.50 219,175.00 5,987.50
0210112009 212,517.50 212,517.50 220,675.00 8.157.50
02101/2010 216,412.50 216,412.50 221,405.00 4,992.50
02101/2011 214,685.00 214,685.00 221,525.00 6,840.00
02101/2012 212,585.00 212,585.00 221.025.00 8,440.00
Total $1.281,635.63 $1.280,447.25 $1,320.980.00 $40,532.75
PV Analysis Summary (Net to Net)
Gross PV Debt Service Savings.................................................................................................................................................... 33.947.68
Net PV Cashflow Savings @ 4.176%(AIC)................................................................................................................................... 33,947.68
Contingency or Rounding Amount................................................................................................................................................ 1,188.38
Net Present Value Beneflt........................................................................................,.................................................................... $35,136.06
Net PV Benefit I $1,110,000 Refunded Principal..........................................................................................................................
Net PV Benefit I $1,130.000 Refunding Principal.........................................................................................................................
3,165%
3.109%
Refunding Bond Information
Refunding Dated Date............... .................................................................................................................................................... 11/05/2005
Refunding Delivery Date............................................................................................................................................................... 11/05/2005
05CurofSq96C.f97A I Curof97A {8/18/2005 I 8:88PM
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City of Hopkins, MN
Issue Summary - Proposed Current Refunding of
$1,700,000 Taxable G.O. Housing Improvement Bonds, Series 1997B
& $680,000 Taxable G.O. Tax Increment Bonds, Series 19960
Table of Contents
Report
ISSUE SUMMARY
Prior Original Debt Service......... ................................................................................................................................................................
Debt Service Schedule.............. ........................................................................................,........................................................................ 3
Total Issue Sources And Uses................................................................................................................................................................... 4
Debt Service Comparison.......................................................................................................................................................................... 5
Current Refunding Escrow......................................................................................................................................................................... 6
CUR OF 978
Debt Service Comparison.......................................................................................................................................................................... 7
CUR OF 960
Debt Service Comparison......................................... .................................................................................................................................8
05curofSer97B&9SD/ / l$SUcSummaty I 8//8/2005/ 4:26PM
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City of Hopkins, MN
$1,700,000 Taxable G.O. Housing Improvement Bonds, Series 1997B
Prior Original Debt Service
Date Princioal Couoon Interest Total P+I
0210112006
08/01/2006 49,348.75 49,348.75
02101/2007 70,000.00 7.100% 49,348.75 119,348.75
08/01/2007 46,863.75 46,863.75
0210112008 75.000.00 7.200% 46,863.75 121,863.75
08/01/2008 44,163.75 44,163.75
02101/2009 80,000.00 7.300% 44,163.75 124,163.75
08/0112009 41,243.75 41,243.75
02101/2010 85,000.00 7.400% 41.243.75 126,243.75
08/01/2010 38.098.75 38,098.75
02101/2011 95,000.00 7.400% 38,098.75 133,098.75
08/01/2011 34,583.75 34,583.75
02101/2012 100,000.00 7.500% 34.583.75 134,583.75
08/01/2012 30,833.75 30.833.75
0210112013 110,000.00 7.500% 30.833.75 140,833.75
08/0112013 26,708.75 26,708.75
0210112014 115.000.00 7.650% 26,708.75 141.708.75
08/01/2014 22,310.00 22,310.00
0210112015 125,000.00 7.750% 22,310.00 147.310.00
08/01/2015 17.466.25 17,466.25
0210112016 135,000.00 7.850% 17,466.25 152,466.25
08/01/2016 12.167.50 12,167.50
02101/2017 150,000.00 7.850% 12,167.50 162,167.50
08/01/2017 6.280.00 6,280.00
02101/2018 160,000.00 7.850% 6.280.00 166,280.00
Total $1,300,000.00 $740.137.50 $2,040.137.50
Yield Statistics
Fiscal Total
168,697.50
168,727.50
168.327.50
167,487.50
171.197.50
169,167.50
171.667.50
168,417.50
169,620.00
169,932.50
174,335.00
172.560.00
Average Life........................................................................................................... .................................................................... 7.631 Years
Weighted Average Maturity {Par 8as;s)...................................................................................................................................... 7.631 Years
Average Coupon...................................................... ...................................................................................................................7.46064570/0
Refunding Bond Information
Refunding Dated Date................................................................................................................................................................
Refunding Delivery Oats......................................... ....................................................................................................................
Scr97B$1,700K1'RxRbIr:T I SlNGLEFUKPOSE I B/18/200S/4:26PM
11105/2005
11/05/2005
Ehlers & Associates, Inc.
Leaders in Public Finance
Page 1
City of Hopkins, MN
$680,000 Taxable G.O. Tax Increment Bonds, Series 19960
Prior Original Debt Service
Date Princioal CouDon Interest Total P+I
02101/2006
08/01/2006 16,461.25 16,461.25
02101/2007 75,000.00 7.450% 16,461.25 91,461.25
08/0112007 13,667.50 13,667.50
0210112008 80,000.00 7.700% 13,667.50 93,667.50
08/01/2008 10,587.50 10.587.50
02101/2009 85,000.00 7.700% 10,587.50 95,587.50
08/01/2009 7,315.00 7,315.00
02101/2010 90,000.00 7.700% 7,315.00 97,315.00
08/01/2010 3,850.00 3,850.00
02101/2011 100.000.00 7.700% 3,850.00 103,850.00
Tolal $430.000.00 $103,762.50 $533,762.50
Yield Stalistics
Fiscol Totol
107,922.50
107,335.00
106,175.00
104,630.00
107,700.00
Average Life............................... ................................................................................................................................................ 3.378 Years
Weighted Average Maturity {Par 80sls)...................................................................................................................................... 3.378 Yeors
Average Coupon........................................................ .................................................................................................................7.14262500/0
Refunding Bond Information
Refunding Dated Date................................................................................................................................................................ 11/05/2005
Refunding Delivery Dale.................................................................................................................................. ........................... 11/05/2005
Ser96DI680KTaxsbkGO / SINGLEPlJRl'OSE /8/1812005/ 4:26PM
Ehlers & Associates, Inc.
Leaders in Public Finance
Page 2
City of Hopkins, MN
Issue Summary. Proposed Current Refunding of
$1,700,000 Taxable G.O. Housing Improvement Bonds, Series 1997B
& $680,000 Taxable G.O. Tax Increment Bonds, Series 1996D
Debt Service Schedule
Date Prinoipal Coupon Interest Total P+I
11/05/2005
OB/01/2006 60,928.77 60,928.77
02/01/2007 150,000.00 3.800% 41,230.00 191,230.00
08/01/2007 38,380.00 38,380.00
02/01/2008 175,000.00 4.000% 38,3BO.00 213,380.00
08/01/2008 34,880.00 34,880.00
02/01/2009 185,000.00 4.150% 34,880.00 219,880.00
08/01/2009 31,041.25 31,041.25
02/01/2010 185,000.00 4.350% 31,041.25 216.041.25
08/01/2010 27,017.50 27,017.50
02/01/2011 200,000.00 4.500% 27,017.50 227,017.50
OB/01/2011 22.517.50 22.517.50
02/01/2012 105,000.00 4.650% 22,517.50 127,517.50
08/01/2012 20,076.25 20,076.25
02/01/2013 115,000.00 4.800% 20,076.25 135.076.25
08/01/2013 17,316.25 17,316.26
02/01/2014 115.000.00 4.950% 17,316.25 132,316.25
08/01/2014 14,470.00 14,470.00
02/01/2015 125,000.00 5.100% 14,470.00 139,470.00
OB/Ol/2015 11,282.50 11.282.50
02/01/2016 130,000.00 5.250% 11,282.50 141,282.50
OB/Ol/2018 7,870.00 7,870.00
02/01/2017 140,000.00 5.350% 7,870.00 147,870.00
08/01/2017 4,125.00 4.125.00
02/01/2018 150,000.00 5.500% 4.125.00 154,125.00
Total $1.775,000.00 $560.111.27 $2,335,111.27
Yield Statistics
Fiscal Total
252,168.77
251,760.00
254,760.00
247,082.50
254,035.00
150,035.00
155,152.50
149.632.50
153,940.00
152,565.00
155,740.00
158,250.00
Bond Year Dollars...................... ................................................................................................................................................. $11,339.03
Average Life............................... ................................................................................................................................................ 6.388 Years
Average Coupon................................................................. ........................................................................................................4.9396763%
Net Interest Cost(NIC)...........................................................................................................................,................................... 5.1588309%
True Interest Cost (TIC).............................................................................................................................................................. 5.1708794%
Bond Yield for Arbitrage Purposes............................................................... ............................................................................... 4.9015828%
All Inclusive Cost (AIC)............................................................................................................. .................................................. 5.5036616%
IRS Form 8038
Net Interest Cos!........................ ................................................................................................................................................. 4.9396763%
Weighted Average Maturity...... ....................................................................................................................................... ............ 6.388 Years
05curofScr97B&96DlllssueSummlll)' / 8/18/2005 j4:26PM
Ehlers & Associates, Inc.
Leaders in Public Finance
Page 3
City of Hopkins, MN
Issue Summary - Proposed Current Refunding of
$1,700,000 Taxable G.O. Housing Improvement Bonds, Series 1997B
& $680,000 Taxable G.O. Tax Increment Bonds, Series 19960
Total Issue Sources And Uses
Dated 11/05/2005 I Delivered 11/05/2005
Cur of 97B
Cur of 960
SOURCES OF FUNDS
Par Amount of Bonds.......................................................... $1,335.000.00
$440,000.00
TOTAL SOURCES.............................................................. $1,335,000.00
$440,000.00
USES OF FUNDS
Total Und.rwrite~s Discount (1.400%)................................
Costs of Issuance................................................................
Deposit to Current Refunding Fund.....................................
Rounding Amount................................................................
18,690.00
22,563.38
1,289,430.21
4,316.41
6,160.00
7,436.62
426,503.85
(100.47)
TOTAL USES...................................................................... $1,335,000.00
$440,000.00
05curof&r97B.f96DII fssueSumm81Y / 8/18/2005 I 4:26PM
Issue
Summary
$1,775,000.00
$1,775,000.00
24,850.00
30,000.00
1,715,934.05
4,215.94
$1,775,000.00
Ehlers & Associates, Inc.
Leaders in Public Finance
Page 4
City of Hopkins, MN
Issue Summary - Proposed Current Refunding of
$1,700,000 Taxable G.O. Housing Improvement Bonds, Series 1997B
& $680,000 Taxable G.O. Tax Increment Bonds, Series 1996D
Debt Service Comparison
Date Total P+! Net New DIS Old Net DIS Savinas
0210112006
'02101/2007 252,158.77 252,158.77 276,620.00 24,461.23
02101/2008 251,760.00 251.760.00 276,062.50 24,302.50
0210112009 254,760.00 254,760.00 274,502.50 19,742.50
02101/2010 247,082.50 247,082.50 272.117.50 25.035.00
0210112011 254.035.00 254,035.00 278,897.50 24,862.50
0210112012 150,035.00 150,035.00 169,167.50 19,132.50
02101/2013 155,152.50 155.152.50 171,667.50 16.515.00
0210112014 149.632.50 149.632.50 168,417.50 18,785.00
02101/2015 153,940.00 153.940.00 169,620.00 15,680.00
0210112016 152,565.00 152,565.00 169,932.50 17,367.50
0210112017 155,740.00 155.740.00 174.335.00 18,595.00
0210112018 158,250.00 158,250.00 172.560.00 14,310.00
Total $2,335,111.27 $2,335,111.27 $2,573,900.00 $238,788.73
PV Analysis Summary (Net to Net)
Gross PV Debt SelVice Savings.................................................................................................................................................. 176,000.79
Net PV Cashflow Savings @ 5.504%(AIC)................................:................................................................................................ 176,000.79
Contingency or Rounding Amount............................................................................................................................................... 4,215.94
Net Present Value Benefit.......... ......................................................... ........................................................................................ $180,216.73
Net PV Benefitl $1,730,000 Refunded Prtncipal........................................................................................................................
Net PV Benefit I $1,775,000 Refunding Prtncipal.......................................................................................................................
10.417%
10.153%
Refunding Bond Information
Refunding Dated Date..............................................................."................................................................................................ 11/05/2005
Refunding Delivery Date........................................................ ...................................................,................................................. 11/05/2005
OScurcfW97B&9BDlllssuaSummRty / 8/18/2005 !4:26PM
Ehlers & Associates, Inc.
Leaders in Public Finance
Page 5
City of Hopkins, MN
Issue Summary - Proposed Current Refunding of
$1,700,000 Taxable G.O. Housing Improvement Bonds, Series 1997B
& $680,000 Taxable G.O. Tax Increment Bonds, Series 1996D
Current Refunding Escrow
Date Princioal Rate Interest Receiots Disbursements Cash Balance
11/05/2005 1.06 1.06
0210112006 1,715,933.00 3.400% 14,065.94 1,729.998.94 1,730,000.00
Total $1.715,933.00 $14,065.94 $1,730,000.00 $1,730,000.00
Investment Parameters
Investment Model [PV. GIC, 0' 8ecurilies]...............................................................................................................................
Default investment yield target... ..............................................................................................................................................
Securities
User Defined
Cash Deposit...................................................... .......:.............................................................................................................
Cost of Investments Purchased with Bond Proceeds...............................................................................................................
Total Cost of Investments.......... ..............................................................................................................................................
1.06
1.716,933.00
$1.715,934.08
Target Cost of Investments at bond yield...............................................................................................................,................. $1,710,102.41
Actual positive or (negative) arbitrage....................................................................................................................................;. (5,831.65)
Yield to Receipt........................................................................................................................................................................ 3.4467852%
Yield for Arbitrage Purposes....... ............................................................................................................................................. 4.9015828%
State and Local Government Se,ies (SLGS) rates 10'.....................................................................................................:........ 8/18/2005
05curafSer97BA98Dl / 1S$U~Summ81Y / 8/18/2005/4:28PM
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Leaders in Public Finance
Page 6
City of Hopkins, MN
Proposed Current Refunding of
$1,700,000 Taxable G.O. Housing Improvement Bonds, Series 1997B
Purpose One
Debt Service Comparison
Date Total P+I Net New D/S Old Net D/S Savinas
02/01/2006
02/0112007 149,406.58 149,406.58 168,697.50 19,290.92
02/01/2008 151,435.00 151,435.00 168,727.50 17.292.50
02/01/2009 152,835.00 152,835.00 168.327.50 15,492.50
02/01/2010 148.892.50 148,892.50 167,487.50 18,595.00
02/01/2011 154.760.00 154,760.00 171,197.50 16,437.50
02/01/2012 150,035.00 150.035.00 169,167.50 19,132.50
02/01/2013 155,152.50 155,152.50 171,667.50 16,515.00
02/0112014 149,632.50. 149,632.50 168,417.50 18,785.00
02/01/2015 153,940.00 153.940.00 169.620.00 15,680.00
02/01/2016. 152.565.00 152,565.00 169,932.50 17,367.50
02/01/2017 155,740.00 155,740.00 174,335.00 18,595.00
02/01/2018 158,250.00 158.250.00 172,560.00 14,310.00
Total $1,832,544.08 $1,832,544.08 $2.040,137.50 $207.493.42
PV Analysis Summary (Net to Net)
Gross PV Debt Service Savings..................................................u.............................................................................................. 149,234.24
Net PV Cashflow Savings @ 5.536%(AIC)................................................................................................................................. 149,234.24
Contingency or Rounding Amount............................................................................................................................................... 4,316.41
Net Present Value Benefit........................................................................................................................................................... $153,550.65
Net PV Benefit / $1,300,000 Refunded Principal........................................................................................................................
Net PV Benefit / $1,335.000 Refunding Principal.........................................................~.............................................................
11.812%
11.502%
Refunding Bond Information
Refunding Dated Date.............................................. ...................................................................................................................
Refunding Delivery Date........................................... ..................................................................................................................
11/05/2005
11/05/2005
05curof&r97B~9BDI/ Curof97B /8/18/200S!4:2BFM
Ehlers & Associates, Inc.
Leaders in Public Finance
Page 7
City of Hopkins, MN
Proposed Current Refunding of
$680,000 Taxable G.O. Tax Increment Bonds, Series 1996D
Purpose Two
Debt Service Comparison
Date Total P+I Net New D/S Old Net DIS Savinas
02101/2006 100.47 (100.47)
02101/2007 102,752.19 102,752.19 107,922.50 5.170.31
02101/2008 100,325.00 100,325.00 107,335.00 7,010.00
02101/2009 101,925.00 101.925.00 106.175.00 4,250.00
02101/2010 98,190.00 98,190.00 104.630.00 6,440.00
02101/2011 99,275.00 99,275.00 107,700.00 8,425.00
Total $502,467.19 $502,567.66 $533,762.50 $31,194.84
PV Analysis Summary (Net to Net)
Gross PV Debt Service Savings.................................................................................................................................................... 26,748.11
Net PV Cashflow Savings @ 5.308%(AIC)................................................................................................................................... 26,748.11
Contingency or Rounding Amount................................................................................................................................................. . (100.85)
Net Present Value Benefit.........................................;................................................................................................................... $26,647.26
Net PV Benefit / $430,000 Refunded Principal...........................................................................................................................
Net PV Benefit / $440,000 Refunding Principal..........................................................................................................................
6.197%
6.056%
Refunding Bond Information
Refunding Dated Date................................................................................................................................................................... 11/05/2005
Refunding Oeiivery Date................................................................................................................................................................ 11/05/2005
05CUl'ofSer97B.f9GDII Curo/9SD I a/I8/2005 I 4:26PM
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Leaders in Public Finance
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