VII.1. Authorize Sale of $8,425,000 General Obligation Bonds Series 2021A; BishopFebruary 16, 2021 Council Report 2021-013
AUTHORIZE SALE OF $8,425,000 GENERAL
OBLIGATION BONDS SERIES, 2021A
Proposed Action.
Staff recommends that the Council approve the following motion: Resolution 2021-007
Providing for the Sale of $8,425,000 General Obligation Bonds, Series 2021A.
Overview:
The Series 2021A 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 two purposes
• A portion of the 2020/2021 street improvement project for Preston Lane, Boyce Street,
Goodrich Street, Ashley Road, Holly Road, Oakwood Road, Interlachen Road, Maple
Hill Road, Homedale Road, Hawthorne Road, Meadowbrook Road, and Blake Road from
Spruce Road to Boyce Street
• Mill and overlay projects in the Knollwood neighborhood.
The bonds are being issued with a 15 year term with payments to come from a tax levy and
special assessments. They will be issued pursuant to MN statutes 429 (street and special
assessment) and 469.1814 (tax abatement bonds). The City’s last bond rating was AA+ with a
stable outlook. Standard and Poor’s will update the rating before bonds are sold on March 9th.
Primary Issues to Consider
• None
Supporting Information:
• Resolution No. 2021-007
• Bond Pre-Sale Report
________________________________________
Nick Bishop, CPA
Finance Director
Financial Impact $8,425,000 Bond Proceeds Source:Tax Levy & Special Assessments
Budgeted: Y/N Y Related Documents:
Capital Improvement Plan &
Equipment Replacement Plan
Notes:
-
-
City of Hopkins, Minnesota
$8,425,000 General Obligation Bonds, Series 2021A
Issue Summary
Assumes Current Market BQ AA+ Rates plus 15bps
Total Issue Sources And Uses
Dated 04/06/2021 | Delivered 04/06/2021
Improvements Utilities
Mill/Overlay
(Tax Abate)
Issue
Summary
Sources Of Funds
Par Amount of Bonds $3,090,000.00 $4,605,000.00 $730,000.00 $8,425,000.00
Prepaid Assessments 253,267.00 --253,267.00
Other City Funds (2020A Bond Proceeds)3,086.04 784,641.35 20,777.70 808,505.09
Total Sources $3,346,353.04 $5,389,641.35 $750,777.70 $9,486,772.09
Uses Of Funds
Total Underwriter's Discount (1.000%)30,900.00 46,050.00 7,300.00 84,250.00
Costs of Issuance 29,341.24 43,727.01 6,931.75 80,000.00
Deposit to Capitalized Interest (CIF) Fund 50,976.28 32,785.97 12,026.53 95,788.78
Deposit to Project Construction Fund 3,232,500.00 5,267,500.00 725,000.00 9,225,000.00
Rounding Amount 2,635.52 (421.63)(480.58)1,733.31
Total Uses $3,346,353.04 $5,389,641.35 $750,777.70 $9,486,772.09
Series 2021A GO Bonds - P | Issue Summary | 2/10/2021 | 2:37 PM
City of Hopkins, Minnesota
$8,425,000 General Obligation Bonds, Series 2021A
Issue Summary
Assumes Current Market BQ AA+ Rates plus 15bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
04/06/2021 -----
02/01/2022 --61,161.28 61,161.28 61,161.28
08/01/2022 --37,318.75 37,318.75 -
02/01/2023 315,000.00 0.350%37,318.75 352,318.75 389,637.50
08/01/2023 --36,767.50 36,767.50 -
02/01/2024 600,000.00 0.350%36,767.50 636,767.50 673,535.00
08/01/2024 --35,717.50 35,717.50 -
02/01/2025 605,000.00 0.400%35,717.50 640,717.50 676,435.00
08/01/2025 --34,507.50 34,507.50 -
02/01/2026 605,000.00 0.500%34,507.50 639,507.50 674,015.00
08/01/2026 --32,995.00 32,995.00 -
02/01/2027 605,000.00 0.600%32,995.00 637,995.00 670,990.00
08/01/2027 --31,180.00 31,180.00 -
02/01/2028 610,000.00 0.700%31,180.00 641,180.00 672,360.00
08/01/2028 --29,045.00 29,045.00 -
02/01/2029 615,000.00 0.800%29,045.00 644,045.00 673,090.00
08/01/2029 --26,585.00 26,585.00 -
02/01/2030 615,000.00 0.950%26,585.00 641,585.00 668,170.00
08/01/2030 --23,663.75 23,663.75 -
02/01/2031 625,000.00 1.050%23,663.75 648,663.75 672,327.50
08/01/2031 --20,382.50 20,382.50 -
02/01/2032 630,000.00 1.100%20,382.50 650,382.50 670,765.00
08/01/2032 --16,917.50 16,917.50 -
02/01/2033 640,000.00 1.150%16,917.50 656,917.50 673,835.00
08/01/2033 --13,237.50 13,237.50 -
02/01/2034 645,000.00 1.250%13,237.50 658,237.50 671,475.00
08/01/2034 --9,206.25 9,206.25 -
02/01/2035 655,000.00 1.350%9,206.25 664,206.25 673,412.50
08/01/2035 --4,785.00 4,785.00 -
02/01/2036 660,000.00 1.450%4,785.00 664,785.00 669,570.00
Total $8,425,000.00 -$765,778.78 $9,190,778.78 -
Yield Statistics
Bond Year Dollars $73,023.82
Average Life 8.668 Years
Average Coupon 1.0486699%
Net Interest Cost (NIC)1.1640432%
True Interest Cost (TIC)1.1650995%
Bond Yield for Arbitrage Purposes 1.0429265%
All Inclusive Cost (AIC)1.2825939%
IRS Form 8038
Net Interest Cost 1.0486699%
Weighted Average Maturity 8.668 Years
Series 2021A GO Bonds - P | Issue Summary | 2/10/2021 | 2:37 PM
City of Hopkins, Minnesota
$8,425,000 General Obligation Bonds, Series 2021A
Issue Summary
Assumes Current Market BQ AA+ Rates plus 15bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF Net New D/S Fiscal Total
04/06/2021 -------
02/01/2022 --61,161.28 61,161.28 (61,161.28)--
08/01/2022 --37,318.75 37,318.75 (17,313.75)20,005.00 -
02/01/2023 315,000.00 0.350%37,318.75 352,318.75 (17,313.75)335,005.00 355,010.00
08/01/2023 --36,767.50 36,767.50 -36,767.50 -
02/01/2024 600,000.00 0.350%36,767.50 636,767.50 -636,767.50 673,535.00
08/01/2024 --35,717.50 35,717.50 -35,717.50 -
02/01/2025 605,000.00 0.400%35,717.50 640,717.50 -640,717.50 676,435.00
08/01/2025 --34,507.50 34,507.50 -34,507.50 -
02/01/2026 605,000.00 0.500%34,507.50 639,507.50 -639,507.50 674,015.00
08/01/2026 --32,995.00 32,995.00 -32,995.00 -
02/01/2027 605,000.00 0.600%32,995.00 637,995.00 -637,995.00 670,990.00
08/01/2027 --31,180.00 31,180.00 -31,180.00 -
02/01/2028 610,000.00 0.700%31,180.00 641,180.00 -641,180.00 672,360.00
08/01/2028 --29,045.00 29,045.00 -29,045.00 -
02/01/2029 615,000.00 0.800%29,045.00 644,045.00 -644,045.00 673,090.00
08/01/2029 --26,585.00 26,585.00 -26,585.00 -
02/01/2030 615,000.00 0.950%26,585.00 641,585.00 -641,585.00 668,170.00
08/01/2030 --23,663.75 23,663.75 -23,663.75 -
02/01/2031 625,000.00 1.050%23,663.75 648,663.75 -648,663.75 672,327.50
08/01/2031 --20,382.50 20,382.50 -20,382.50 -
02/01/2032 630,000.00 1.100%20,382.50 650,382.50 -650,382.50 670,765.00
08/01/2032 --16,917.50 16,917.50 -16,917.50 -
02/01/2033 640,000.00 1.150%16,917.50 656,917.50 -656,917.50 673,835.00
08/01/2033 --13,237.50 13,237.50 -13,237.50 -
02/01/2034 645,000.00 1.250%13,237.50 658,237.50 -658,237.50 671,475.00
08/01/2034 --9,206.25 9,206.25 -9,206.25 -
02/01/2035 655,000.00 1.350%9,206.25 664,206.25 -664,206.25 673,412.50
08/01/2035 --4,785.00 4,785.00 -4,785.00 -
02/01/2036 660,000.00 1.450%4,785.00 664,785.00 -664,785.00 669,570.00
Total $8,425,000.00 -$765,778.78 $9,190,778.78 (95,788.78)$9,094,990.00 -
Significant Dates
Dated 4/06/2021
First Coupon Date 2/01/2022
Yield Statistics
Bond Year Dollars $73,023.82
Average Life 8.668 Years
Average Coupon 1.0486699%
Net Interest Cost (NIC)1.1640432%
True Interest Cost (TIC)1.1650995%
Bond Yield for Arbitrage Purposes 1.0429265%
All Inclusive Cost (AIC)1.2825939%
IRS Form 8038
Net Interest Cost 1.0486699%
Weighted Average Maturity 8.668 Years
Series 2021A GO Bonds - P | Issue Summary | 2/10/2021 | 2:37 PM
City of Hopkins, Minnesota
$8,425,000 General Obligation Bonds, Series 2021A
Issue Summary
Assumes Current Market BQ AA+ Rates plus 15bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Assessments
Utility
Revenue
Tax
Abatement
Revenue
Levy/
(Surplus)
02/01/2022 --61,161.28 61,161.28 (61,161.28)------
02/01/2023 315,000.00 0.350%74,637.50 389,637.50 (34,627.50)355,010.00 372,760.50 110,382.34 372,760.50 -(110,382.34)
02/01/2024 600,000.00 0.350%73,535.00 673,535.00 -673,535.00 707,211.75 110,382.34 371,602.88 55,000.00 170,226.54
02/01/2025 605,000.00 0.400%71,435.00 676,435.00 -676,435.00 710,256.75 110,382.34 375,695.25 55,000.00 169,179.16
02/01/2026 605,000.00 0.500%69,015.00 674,015.00 -674,015.00 707,715.75 110,382.34 374,351.25 55,000.00 167,982.16
02/01/2027 605,000.00 0.600%65,990.00 670,990.00 -670,990.00 704,539.50 110,382.34 372,671.25 55,000.00 166,485.91
02/01/2028 610,000.00 0.700%62,360.00 672,360.00 -672,360.00 705,978.00 110,382.34 375,905.25 55,000.00 164,690.41
02/01/2029 615,000.00 0.800%58,090.00 673,090.00 -673,090.00 706,744.50 110,382.33 373,516.50 55,000.00 167,845.67
02/01/2030 615,000.00 0.950%53,170.00 668,170.00 -668,170.00 701,578.50 110,382.34 370,786.50 55,000.00 165,409.66
02/01/2031 625,000.00 1.050%47,327.50 672,327.50 -672,327.50 705,943.88 110,382.34 372,794.63 55,000.00 167,766.91
02/01/2032 630,000.00 1.100%40,765.00 670,765.00 -670,765.00 704,303.25 110,382.35 374,406.38 55,000.00 164,514.53
02/01/2033 640,000.00 1.150%33,835.00 673,835.00 -673,835.00 707,526.75 110,382.33 375,787.13 55,000.00 166,357.30
02/01/2034 645,000.00 1.250%26,475.00 671,475.00 -671,475.00 705,048.75 110,382.33 371,681.63 60,000.00 162,984.80
02/01/2035 655,000.00 1.350%18,412.50 673,412.50 -673,412.50 707,083.13 110,382.34 372,469.13 60,000.00 164,231.66
02/01/2036 660,000.00 1.450%9,570.00 669,570.00 -669,570.00 703,048.50 110,382.34 372,828.75 60,000.00 159,837.41
Total $8,425,000.00 -$765,778.78 $9,190,778.78 (95,788.78)$9,094,990.00 $9,549,739.50 $1,545,352.74 $5,227,257.00 $730,000.00 $2,047,129.76
Significant Dates
Dated 4/06/2021
First Coupon Date 2/01/2022
Yield Statistics
Bond Year Dollars $73,023.82
Average Life 8.668 Years
Average Coupon 1.0486699%
Net Interest Cost (NIC)1.1640432%
True Interest Cost (TIC)1.1650995%
Bond Yield for Arbitrage Purposes 1.0429265%
All Inclusive Cost (AIC)1.2825939%
Series 2021A GO Bonds - P | Issue Summary | 2/10/2021 | 2:37 PM
City of Hopkins, Minnesota
$8,425,000 General Obligation Bonds, Series 2021A
Issue Summary
Assumes Current Market BQ AA+ Rates plus 15bps
Detail Costs Of Issuance
Dated 04/06/2021 | Delivered 04/06/2021
COSTS OF ISSUANCE DETAIL
Municipal Advisor $50,000.00
Bond Counsel $14,000.00
Rating Agency Fee $15,000.00
Miscellaneous $1,000.00
TOTAL $80,000.00
Series 2021A GO Bonds - P | Issue Summary | 2/10/2021 | 2:37 PM
City of Hopkins, Minnesota
$3,090,000 General Obligation Bonds, Series 2021A
Improvements
Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Assessments Levy/(Surplus)
02/01/2022 --22,958.78 22,958.78 (22,958.78)----
02/01/2023 --28,017.50 28,017.50 (28,017.50)--110,382.34 (110,382.34)
02/01/2024 230,000.00 0.350%28,017.50 258,017.50 -258,017.50 270,918.38 110,382.34 160,536.04
02/01/2025 230,000.00 0.400%27,212.50 257,212.50 -257,212.50 270,073.13 110,382.34 159,690.79
02/01/2026 230,000.00 0.500%26,292.50 256,292.50 -256,292.50 269,107.13 110,382.34 158,724.79
02/01/2027 230,000.00 0.600%25,142.50 255,142.50 -255,142.50 267,899.63 110,382.34 157,517.29
02/01/2028 230,000.00 0.700%23,762.50 253,762.50 -253,762.50 266,450.63 110,382.34 156,068.29
02/01/2029 235,000.00 0.800%22,152.50 257,152.50 -257,152.50 270,010.13 110,382.33 159,627.80
02/01/2030 235,000.00 0.950%20,272.50 255,272.50 -255,272.50 268,036.13 110,382.34 157,653.79
02/01/2031 240,000.00 1.050%18,040.00 258,040.00 -258,040.00 270,942.00 110,382.34 160,559.66
02/01/2032 240,000.00 1.100%15,520.00 255,520.00 -255,520.00 268,296.00 110,382.35 157,913.65
02/01/2033 245,000.00 1.150%12,880.00 257,880.00 -257,880.00 270,774.00 110,382.33 160,391.67
02/01/2034 245,000.00 1.250%10,062.50 255,062.50 -255,062.50 267,815.63 110,382.33 157,433.30
02/01/2035 250,000.00 1.350%7,000.00 257,000.00 -257,000.00 269,850.00 110,382.34 159,467.66
02/01/2036 250,000.00 1.450%3,625.00 253,625.00 -253,625.00 266,306.25 110,382.34 155,923.91
Total $3,090,000.00 -$290,956.28 $3,380,956.28 (50,976.28)$3,329,980.00 $3,496,479.00 $1,545,352.74 $1,951,126.26
Significant Dates
Dated 4/06/2021
First Coupon Date 2/01/2022
Yield Statistics
Bond Year Dollars $27,602.08
Average Life 8.933 Years
Average Coupon 1.0541099%
Net Interest Cost (NIC)1.1660579%
True Interest Cost (TIC)1.1671822%
Bond Yield for Arbitrage Purposes 1.0429265%
All Inclusive Cost (AIC)1.2812356%
Series 2021A GO Bonds - P | Improvements | 2/10/2021 | 2:37 PM
City of Hopkins, Minnesota
$4,605,000 General Obligation Bonds, Series 2021A
Utilities
Debt Service Schedule
Utility Rev
Date Principal Coupon Interest Total P+I CIF Net New D/S
105% of
Total
02/01/2022 --32,785.97 32,785.97 (32,785.97)--
02/01/2023 315,000.00 0.350%40,010.00 355,010.00 -355,010.00 372,760.50
02/01/2024 315,000.00 0.350%38,907.50 353,907.50 -353,907.50 371,602.88
02/01/2025 320,000.00 0.400%37,805.00 357,805.00 -357,805.00 375,695.25
02/01/2026 320,000.00 0.500%36,525.00 356,525.00 -356,525.00 374,351.25
02/01/2027 320,000.00 0.600%34,925.00 354,925.00 -354,925.00 372,671.25
02/01/2028 325,000.00 0.700%33,005.00 358,005.00 -358,005.00 375,905.25
02/01/2029 325,000.00 0.800%30,730.00 355,730.00 -355,730.00 373,516.50
02/01/2030 325,000.00 0.950%28,130.00 353,130.00 -353,130.00 370,786.50
02/01/2031 330,000.00 1.050%25,042.50 355,042.50 -355,042.50 372,794.63
02/01/2032 335,000.00 1.100%21,577.50 356,577.50 -356,577.50 374,406.38
02/01/2033 340,000.00 1.150%17,892.50 357,892.50 -357,892.50 375,787.13
02/01/2034 340,000.00 1.250%13,982.50 353,982.50 -353,982.50 371,681.63
02/01/2035 345,000.00 1.350%9,732.50 354,732.50 -354,732.50 372,469.13
02/01/2036 350,000.00 1.450%5,075.00 355,075.00 -355,075.00 372,828.75
Total $4,605,000.00 -$406,125.97 $5,011,125.97 (32,785.97)$4,978,340.00 $5,227,257.00
Significant Dates
Dated 4/06/2021
First Coupon Date 2/01/2022
Yield Statistics
Bond Year Dollars $38,908.54
Average Life 8.449 Years
Average Coupon 1.0437964%
Net Interest Cost (NIC)1.1621509%
True Interest Cost (TIC)1.1631607%
Bond Yield for Arbitrage Purposes 1.0429265%
All Inclusive Cost (AIC)1.2836466%
Series 2021A GO Bonds - P | Utilities | 2/10/2021 | 2:37 PM
City of Hopkins, Minnesota
$730,000 General Obligation Bonds, Series 2021A
Mill/Overlay (Tax Abate)
Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF
Net New
D/S
105% of
Total
Tax Abatement
Revenue
Levy/
(Surplus)
02/01/2022 --5,416.53 5,416.53 (5,416.53)----
02/01/2023 --6,610.00 6,610.00 (6,610.00)----
02/01/2024 55,000.00 0.350%6,610.00 61,610.00 -61,610.00 64,690.50 55,000.00 9,690.50
02/01/2025 55,000.00 0.400%6,417.50 61,417.50 -61,417.50 64,488.38 55,000.00 9,488.38
02/01/2026 55,000.00 0.500%6,197.50 61,197.50 -61,197.50 64,257.38 55,000.00 9,257.38
02/01/2027 55,000.00 0.600%5,922.50 60,922.50 -60,922.50 63,968.63 55,000.00 8,968.63
02/01/2028 55,000.00 0.700%5,592.50 60,592.50 -60,592.50 63,622.13 55,000.00 8,622.13
02/01/2029 55,000.00 0.800%5,207.50 60,207.50 -60,207.50 63,217.88 55,000.00 8,217.88
02/01/2030 55,000.00 0.950%4,767.50 59,767.50 -59,767.50 62,755.88 55,000.00 7,755.88
02/01/2031 55,000.00 1.050%4,245.00 59,245.00 -59,245.00 62,207.25 55,000.00 7,207.25
02/01/2032 55,000.00 1.100%3,667.50 58,667.50 -58,667.50 61,600.88 55,000.00 6,600.88
02/01/2033 55,000.00 1.150%3,062.50 58,062.50 -58,062.50 60,965.63 55,000.00 5,965.63
02/01/2034 60,000.00 1.250%2,430.00 62,430.00 -62,430.00 65,551.50 60,000.00 5,551.50
02/01/2035 60,000.00 1.350%1,680.00 61,680.00 -61,680.00 64,764.00 60,000.00 4,764.00
02/01/2036 60,000.00 1.450%870.00 60,870.00 -60,870.00 63,913.50 60,000.00 3,913.50
Total $730,000.00 -$68,696.53 $798,696.53 (12,026.53)$786,670.00 $826,003.50 $730,000.00 $96,003.50
Significant Dates
Dated 4/06/2021
First Coupon Date 2/01/2022
Yield Statistics
Bond Year Dollars $6,513.19
Average Life 8.922 Years
Average Coupon 1.0547287%
Net Interest Cost (NIC)1.1668089%
True Interest Cost (TIC)1.1678654%
Bond Yield for Arbitrage Purposes 1.0429265%
All Inclusive Cost (AIC)1.2820580%
Series 2021A GO Bonds - P | Mill/Overlay (Tax Abate) | 2/10/2021 | 2:37 PM
City of Hopkins, Minnesota
$1,234,233 General Obligation Bonds, Series 2021A
Assessments
2.0% over TIC - Equal Principal
Assessments
Date Principal Coupon Interest Total P+I
12/31/2022 71,504.00 3.150%38,878.34 110,382.34
12/31/2023 73,756.38 3.150%36,625.96 110,382.34
12/31/2024 76,079.70 3.150%34,302.64 110,382.34
12/31/2025 78,476.22 3.150%31,906.12 110,382.34
12/31/2026 80,948.22 3.150%29,434.12 110,382.34
12/31/2027 83,498.08 3.150%26,884.26 110,382.34
12/31/2028 86,128.27 3.150%24,254.06 110,382.33
12/31/2029 88,841.32 3.150%21,541.02 110,382.34
12/31/2030 91,639.82 3.150%18,742.52 110,382.34
12/31/2031 94,526.47 3.150%15,855.88 110,382.35
12/31/2032 97,504.05 3.150%12,878.28 110,382.33
12/31/2033 100,575.43 3.150%9,806.90 110,382.33
12/31/2034 103,743.56 3.150%6,638.78 110,382.34
12/31/2035 107,011.48 3.150%3,370.86 110,382.34
Total $1,234,233.00 -$311,119.74 $1,545,352.74
Significant Dates
Filing Date 1/01/2022
First Payment Date 12/31/2022
Series 2021A GO Bonds - A | SINGLE PURPOSE | 2/10/2021 | 2:36 PM
Resolution No. 2021-007
Councilmember _________________ introduced the following resolution and moved its adoption:
Resolution Providing for the Sale of
$8,425,000 General Obligation Bonds, Series 2021A
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 $8,425,000 General Obligation Bonds, Series 2021A (the
"Bonds"), to finance the 2021 road improvement, mill/overlay and utility projects 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 March 16, 2021, 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 16th day of February, 2021.
_____________________________________________
Amy Domeier, City Clerk