VII.2. Resolution Providing for the Sale of $9,375,000 General Obligation Bonds, Series 2024 A; Bishop
CITY OF HOPKINS
City Council Report 2023-015
To: Honorable Mayor and Council Members
Mike Mornson, City Manager
From: Nick Bishop, Finance Director
Date: April 16, 2024
Subject: Authorize Sale of $9,375,000 General Obligation Bonds Series 2024A
_____________________________________________________________________
RECOMMENDED ACTION
MOTION TO adopt Resolution 2024-030: Providing for the Sale of $9,375,000 General
Obligation Bonds, Series 2024A.
OVERVIEW
Purpose
The Series 2024A bonds will be general obligations of the City for which it’s full faith,
credit and taxing powers are pledged. The preliminary authorization is for $9.350 million
and has been adjusted to reflect actual costs based on approved bids. The bonds are
being sold to finance three purposes.
• 2024 street and utility reconstruction project in the Central Avenues. The
bonds for this purpose will be issued with a 16 year term to come from
general tax levy, special assessments and utility revenues. Principal
payments will be made over 12 years from 2029 through 2040.
• 2025 mill and overlay projects in the Central Avenues. The bonds for this
purpose will be issued with a 10 year term to come from a general tax levy.
Principal payments will be made over 7 years from 2029 through 2035.
Issuance for 2025 portion is being recommended based on timing of future
street projects.
• 2024 Water & Sewer Utility Projects: Meter Replacement, SCADA Fiber and
Lift Station #2 Rehabilitation. The bonds for this purpose will be issued with a
16 year term to come from utility revenues. Principal payments will be made
over 12 years from 2029 through 2040.
Finance Department
Schedule of Principal Payments
The bonds being proposed delay the first principal payment from 2026 to 2029. The
length of the bonds remains the same with a final payoff scheduled for 2/1/2040. The
delayed repayment schedule is being proposed based on near-term tax levy impacts.
The following chart shows the projections for the City’s debt service levy based on a
traditional repayment schedule and the delayed schedule being proposed. It does not
include projected debt levies for projects scheduled in 2025 and later.
Traditional
Repayment
Schedule
Increase
(Decrease)
Delayed
Repayment
Schedule
Increase
(Decrease)
2024 4,107,613.00 4,107,613.00
2025 4,420,921.00 7.63%4,149,491.00 1.02%
2026 4,373,199.00 (1.08%)4,101,395.00 (1.16%)
2027 4,227,292.00 (3.34%)4,014,952.00 (2.11%)
2028 3,917,856.00 (7.32%)4,032,637.00 0.44%
2029 3,878,428.00 (1.01%)3,985,460.00 (1.17%)
Debt Service Tax Levy
Existing Debt & 2024A Projections
The proposed repayment schedule also means that a larger amount of principal will be
outstanding at any given time. Based on current interest rates, the City would incur
$511,109 of additional interest costs over the life of the bonds.
Next Steps
Adopting the resolution will allow City Staff to work with its municipal advisor Ehlers &
Associates to prepare an official statement for the bond sale. The City’s last bond rating
was AA+ with a stable outlook. Standard and Poor’s will update the rating before the
bonds are sold. City Council is scheduled to award the sale of bonds on May 21.
SUPPORTING INFORMATION
• Resolution No. 2024-030
• Bond Pre-Sale Report
CITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2024-030
RESOLUTION PROVIDING FOR THE ISSUANCE AND
SALE OF GENERAL OBLIGATION BONDS,
SERIES 2024A, IN THE PROPOSED AGGREGATE
PRINCIPAL AMOUNT OF $9,375,000
BE IT RESOLVED By the City Council of the City of Hopkins, Minnesota (the
“City”), as follows:
Section 1. Authorization.
1.01. Improvement Bonds.
(a) Certain assessable public improvements within the City (the
“Assessable Improvements”) have been made, duly ordered or contracts let for
the construction thereof pursuant to the provisions of Minnesota Statutes,
Chapters 429 and 475, as amended (the “Improvement Act”).
(b) It is necessary and expedient to the sound financial management of
the affairs of the City to issue general obligation bonds in the proposed principal
amount of $3,225,000 (the “Improvement Bonds”), pursuant to the Improvement
Act, to provide financing for the Assessable Improvements.
1.02. Utility Revenue Bonds.
(a) The City engineer has recommended the construction of various
improvements to the City’s sewer, water, and storm sewer systems (the “Utility
Improvements”).
(b) It is necessary and expedient to the sound financial management of
the affairs of the City to issue general obligation bonds in the proposed principal
amount of $5,505,000 (the “Utility Revenue Bonds”), pursuant to Minnesota
Statutes, Chapters 444 and 475, as amended (the “Utility Revenue Act”), to
provide financing for the Utility Improvements.
1.03. Street Reconstruction Bonds.
(a) Pursuant to Minnesota Statutes, Chapter 475, as amended,
specifically Section 475.58, subdivision 3b (the “Street Reconstruction Act”), the
City is authorized to finance all or a portion of the cost of street reconstruction
projects by the issuance of general obligation bonds of the City payable from ad
valorem taxes.
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(b) On March 1, 2022, following a duly noticed public hearing, the City
Council adopted a five (5) year street reconstruction and bituminous overlay plan
for the years 2022 through 2026 (the “Street Reconstruction Plan”) describing the
streets to be reconstructed, estimated costs, and any planned reconstruction of
other streets in the City and approved the issuance of obligations by vote of at
least two-thirds of the members thereof, all pursuant to the Street Reconstruction
Act.
(c) Expenditures described in the Street Reconstruction Plan include
10th Avenue North and 1st Street North; 1st Street South and the South Central
Business District; 1st Street North and Lot 700; Robinwood Lane, Highway 7
Service Drive, and 5th Street North; and Washington Avenue North, Jackson
Avenue North, and St. Louis Street (the “Street Reconstruction”).
(d) The City Council has determined that, within thirty (30) days after
the hearing, no petition for a referendum on the issuance of bonds to pay costs of
the Street Reconstruction was received by the City in accordance with the Street
Reconstruction Act.
(e) It is necessary and expedient to the sound financial management of
the affairs of the City to issue general obligation bonds in the proposed principal
amount of $645,000 (the “Street Reconstruction Bonds”), pursuant to the Street
Reconstruction Act, to provide financing for a portion of the costs of the Street
Reconstruction.
Section 2. Sale of Bonds.
(a) To provide financing for the Assessable Improvements, the Utility
Improvements, and the Street Reconstruction (collectively, the “Projects”), the
City will therefore issue and sell its General Obligation Bonds, Series 2024A (the
“Bonds”), in the proposed aggregate principal amount of $9,375,000, pursuant to
the Improvement Act, the Utility Revenue Act, and the Street Reconstruction Act
(collectively, the “Act”). The principal amount of the Bonds is subject to
adjustment in accordance with the official Terms of Proposal to be prepared in
connection with the offering and the sale of the Bonds.
(b) The City is authorized by Section 475.60, subdivision 2(9) of the
Act to negotiate the sale of the Bonds, it being determined that the City has
retained an independent municipal advisor in connection with such sale. The
actions of the City staff and the City’s municipal advisor in negotiating the sale of
the Bonds are ratified and confirmed in all respects.
Section 3. Authority of Municipal Advisor. Ehlers and Associates, Inc. (the
“Municipal Advisor”) is authorized and directed to negotiate the sale of the Bonds. The
City Council will meet on Tuesday, May 21, 2024, or another date selected by City staff, to
3
consider proposals on the Bonds and take any other appropriate action with respect to the
Bonds.
Section 4. Authority of Bond Counsel. The law firm of Kennedy & Graven,
Chartered, as bond counsel for the City (“Bond Counsel”), is authorized to act as bond
counsel and to assist in the preparation and review of necessary documents, certificates
and instruments relating to the Bonds. The officers, employees and agents of the City
are hereby authorized to assist Bond Counsel in the preparation of such documents,
certificates, and instruments.
Section 5. Covenants. In the resolution awarding the sale of the Bonds, the
City Council will set forth the covenants and undertakings required by the Act.
Section 6. Official Statement. In connection with the sale of the Bonds, the
officers or employees of the City are authorized and directed to cooperate with the
Municipal Advisor and participate in the preparation of an official statement for the
Bonds and to deliver it on behalf of the City upon its completion.
Section 7. Declaration of Official Intent to Reimburse Expenditures.
(a) The Internal Revenue Service has issued Treas. Reg. § 1.150-2
(the “Reimbursement Regulations”) providing that proceeds of tax-exempt bonds
used to reimburse prior expenditures will not be deemed spent unless certain
requirements are met; the City expects to incur certain expenditures with respect
to projects that may be financed temporarily from sources other than bonds, and
reimbursed from the proceeds of tax-exempt bonds.
(b) The City has determined to make a declaration of official intent (the
“Declaration”) to reimburse certain costs with respect to the Projects from
proceeds of the Bonds in accordance with the Reimbursement Regulations.
(c) All reimbursed expenditures will be capital expenditures, costs of
issuance of the Bonds, or other expenditures eligible for reimbursement under
Section 1.150-2(d)(3) of the Reimbursement Regulations.
(d) This Declaration has been made not later than sixty (60) days after
payment of any original expenditure to be subject to a reimbursement allocation
with respect to the proceeds of the Bonds, except for the following expenditures:
(a) costs of issuance of bonds; (b) costs in an amount not in excess of $100,000
or five percent (5%) of the proceeds of an issue; or (c) “preliminary expenditures”
up to an amount not in excess of twenty percent (20%) of the aggregate issue
price of the issue or issues that finance or are reasonably expected by the City to
finance the project for which the preliminary expenditures were incurred. The
term “preliminary expenditures” includes architectural, engineering, surveying,
bond issuance, and similar costs that are incurred prior to commencement of
4
acquisition, construction or rehabilitation of a project, other than land acquisition,
site preparation, and similar costs incident to commencement of construction.
(e) This Declaration is an expression of the reasonable expectations of
the City based on the facts and circumstances known to the City as of the date
hereof. The anticipated original expenditures for the Projects and the principal
amount of the Bonds described herein are consistent with the City’s budgetary
and financial circumstances. No sources other than proceeds of the Bonds to be
issued by the City are, or are reasonably expected to be, reserved, allocated on
a long-term basis, or otherwise set aside pursuant to the City’s budget or
financial policies to pay such expenditures.
(f) This Declaration is intended to constitute a declaration of official
intent for purposes of the Reimbursement Regulations.
Adopted by the City Council of the City of Hopkins this 16th day of April, 2024..
By:
Patrick Hanlon, Mayor
Attest:
Amy Domeier, City Clerk
HP110-109 (JAE)
945446v1
April 16, 2024
PRE-SALE REPORT FOR
City of Hopkins, Minnesota
$9,375,000 General Obligation Bonds, Series 2024A
Prepared by:
Ehlers
3060 Centre Pointe Drive
Roseville, MN 55113
Advisors:
Stacie Kvilvang, Senior Municipal Advisor
Jason Aarsvold, Senior Municipal Advisor
Keith Dahl, Municipal Advisor
BUILDING COMMUNITIES. IT’S WHAT WE DO.
Presale Report
City of Hopkins, Minnesota
April 16, 2024
Page 1
Proposed Issue:
$9,375,000 General Obligation Bonds, Series 2024A
Purposes:
The proposed issue includes financing for the following purposes:
To finance the 2024 road and utility reconstruction projects and mill and overlay projects.
Road Improvements - $3,225,000. This portion of the Bonds is being issued for 16
years. Debt service will be paid from special assessments and ad valorem property
taxes.
Mill/Overlay - $645,000. This portion of the Bonds is being issued for 10 years.
Debt service will be paid from ad valorem property taxes.
Utilities - $5,505,000. This portion of the Bonds is being issued for 16 years. Debt
service will be paid from utility revenues.
Authority:
The Bonds are being issued pursuant to Minnesota Statutes, Chapters:
429 – Road Improvement
444 - Utilities
475.58, subd, 3b – Mill/Overlay
475 – General Bonding Authority
2024 Road Improvement Portion: Because the City is assessing at least 20% of the project
costs, this portion of the Bonds may 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 $768,978 in special
assessments to benefitting property owners, of which $153,796 (20%) is anticipated to be
collected in pre-paid assessments (this portion of the Bond issue was reduced accordingly).
The remaining $615,182 of special assessments will be collected in years 2025 to 2039 at a
rate of 2% over the True Interest Costs (TIC) of the Bonds. Annual assessments are paid on
an equal principal basis. In addition, we have capitalized interest through the 2/1/27 payment
and are paying interest only through 8/1/28 to offset the tax levy requirement.
Utility Portion: Chapter 444 allows cities to issue debt without limitation as long as debt
service is expected to be paid from water and sewer revenues.
Mill/Overlay Portion: The City held a public hearing on March 1, 2022, for the 2022-2026
Street Reconstruction and Overlay Plan (SROP) for the mill and overlay portion of the Bonds,
which provides the authority to issue this portion of the Bonds. In addition, we have
capitalized interest through the 2/1/27 payment and are paying interest only through 8/1/28
to offset the tax levy requirement.
EXECUTIVE SUMMARY OF PROPOSED DEBT
Presale Report
City of Hopkins, Minnesota
April 16, 2024
Page 2
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 term of 16 years. Principal on the Bonds will be due on
February 1 in the years 2029 through 2040. Interest will be due every six months beginning
February 1, 2025.
The Bonds will be subject to prepayment at the discretion of the City on February 1, 2032 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:
S&P Global Ratings "AA+"
The City’s most recent bond issues were rated by S&P Global Ratings. The current rating on
those bonds is “AA+”. 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 your objectives, financial situation and need, risk tolerance, liquidity needs,
experience with the issuance of Bonds and long-term financial capacity, as well as the tax
status considerations related to the Bonds and the structure, timing and other similar matters
related to the Bonds, we are recommending the issuance of Bonds as a suitable option.
Method of Sale/Placement:
We are recommending the Bonds be issued as municipal securities and offered through a
competitive underwriting process. You will solicit competitive bids, which we will compile on
your behalf, for the purchase of the Bonds from underwriters and banks.
An allowance for discount bidding will be incorporated in the terms 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 reduce your borrowing amount.
Presale Report
City of Hopkins, Minnesota
April 16, 2024
Page 3
Premium Pricing:
In some cases, 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 underwriter of the bonds will retain a portion of this reoffering premium as
their compensation (or “discount”) but will pay the remainder of the premium to the City. The
amount of the premium varies, but it is not uncommon to see premiums for new issues in the
range of 2.00% to 10.00% of the face amount of the issue. This means that an issuer with a
$2,000,000 offering may receive bids that result in proceeds of $2,040,000 to $2,200,000.
For this issue of Bonds we have been directed to use the net premium to reduce the size of
the issue for the project. The resulting adjustments may slightly change the true interest cost
of the issue, either up or down.
The amount of premium can be restricted in the bid specifications. Restrictions on premium
may result in fewer bids, but may also eliminate large adjustments on the day of sale and
unintended impacts with respect to debt service payment. Ehlers will identify appropriate
premium restrictions for the Bonds intended to achieve the City’s objectives for this financing.
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 are working with staff on possibly refinancing the
2023A temporary bonds later this year.
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:
The City must ensure compliance with certain sections of the Internal Revenue Code and
Treasury Regulations (“Arbitrage Rules”) throughout the life of the issue to maintain the tax-
exempt status of the Bonds. These Arbitrage Rules apply to amounts held in construction,
escrow, reserve, debt service account(s), etc., along with related investment income on each
fund/account.
IRS audits will verify compliance with rebate, yield restriction and records retention
requirements within the Arbitrage Rules. The City’s specific arbitrage responsibilities will be
Presale Report
City of Hopkins, Minnesota
April 16, 2024
Page 4
detailed in the Tax Certificate (the “Tax Compliance Document”) prepared by your Bond
Attorney and provided at closing.
The Bonds may qualify for one or more exception(s) to the Arbitrage Rules by meeting 1)
small issuer exception, 2) spend down requirements, 3) bona fide debt service fund limits, 4)
reasonable reserve requirements, 5) expenditure within an available period limitations, 6)
investments yield restrictions, 7) de minimis rules, or; 8) borrower limited requirements.
An Ehlers arbitrage expert will contact the City within 30 days after the sale date to review
the City’s specific responsibilities for the Bonds. The City is currently receiving arbitrage
services from Ehlers in relation to the Bonds.
Investment of Bond Proceeds:
Ehlers can assist the City in developing a strategy to invest your Bond proceeds until the
funds are needed to pay project costs.
Risk Factors:
Special Assessments: We have assumed $153,796 in pre-paid special assessments. If the City
receives a significant amount more of pre-paid assessments or does not levy the assessments,
it may need to increase the levy portion of the debt service to make up for 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, but the
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 Counsel: Kennedy & Graven, Chartered
Paying Agent: Bond Trust Services Corporation
Rating Agency: S&P Global Ratings (S&P)
Summary:
The decisions to be made by the City Council are as follows:
Accept or modify the finance assumptions described in this report
Adopt the resolution attached to this report.
Presale Report
City of Hopkins, Minnesota
April 16, 2024
Page 5
Pre-Sale Review by City Council: April 16, 2024
Conference with Rating Agency and Due Diligence Call to
Review Official Statement: Week of May 6th or 13th
Distribute Official Statement: Week of May 6, 2024
City Council Meeting to Award Sale of the Bonds: May 21, 2024
Estimated Closing Date: June 11, 2024
Attachments
Estimated Sources and Uses of Funds
Estimated Proposed Debt Service Schedule
Bond Buyer Index
Resolution Authorizing Ehlers to Proceed with Bond Sale
EHLERS’ CONTACTS
Stacie Kvilvang, Senior Municipal Advisor (651) 697-8506
Jason Aarsvold, Senior Municipal Advisor (651) 697-8512
Keith Dahl, Municipal Advisor (651) 697-8595
Silvia Johnson, Lead Public Finance Analyst (651) 697-8580
Alicia Gage, Senior Financial Analyst (651) 697-8551
PROPOSED DEBT ISSUANCE SCHEDULE
EHLERS’ CONTACTS
City of Hopkins, Minnesota
$9,375,000 General Obligation Bonds, Series 2024A
Issue Summary - Principal 2029-2040
Assumes Current Market BQ AA+ Rates plus 50bps
Total Issue Sources And Uses
Dated 06/11/2024 | Delivered 06/11/2024
Improvement
s
Street
Reconstruc
tion Plan Water Sewer Storm Sewer
Issue
Summary
Sources Of Funds
Par Amount of Bonds $3,225,000.00 $645,000.00 $2,520,000.00 $1,980,000.00 $1,005,000.00 $9,375,000.00
Prepaid Assessments 153,796.00 ----153,796.00
Total Sources $3,378,796.00 $645,000.00 $2,520,000.00 $1,980,000.00 $1,005,000.00 $9,528,796.00
Uses Of Funds
Total Underwriter's Discount (1.100%)35,475.00 7,095.00 27,720.00 21,780.00 11,055.00 103,125.00
Costs of Issuance 41,968.00 8,393.60 32,793.60 25,766.40 13,078.40 122,000.00
Deposit to Capitalized Interest (CIF) Fund 310,445.49 57,560.76 - - - 368,006.25
Deposit to Project Construction Fund 2,987,650.00 575,000.00 2,456,642.00 1,930,825.00 983,725.00 8,933,842.00
Rounding Amount 3,257.51 (3,049.36)2,844.40 1,628.60 (2,858.40)1,822.75
Total Uses $3,378,796.00 $645,000.00 $2,520,000.00 $1,980,000.00 $1,005,000.00 $9,528,796.00
2024A PRESALE GO Bonds | Issue Summary | 4/ 9/2024 | 4:50 PM
Page 1
City of Hopkins, Minnesota
$9,375,000 General Obligation Bonds, Series 2024A
Issue Summary - Principal 2029-2040
Assumes Current Market BQ AA+ Rates plus 50bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
06/11/2024 - - - - -
02/01/2025 - - 217,549.65 217,549.65 217,549.65
08/01/2025 - - 170,256.25 170,256.25 -
02/01/2026 - - 170,256.25 170,256.25 340,512.50
08/01/2026 --170,256.25 170,256.25 -
02/01/2027 - - 170,256.25 170,256.25 340,512.50
08/01/2027 - - 170,256.25 170,256.25 -
02/01/2028 - - 170,256.25 170,256.25 340,512.50
08/01/2028 - - 170,256.25 170,256.25 -
02/01/2029 615,000.00 3.350%170,256.25 785,256.25 955,512.50
08/01/2029 - - 159,955.00 159,955.00 -
02/01/2030 710,000.00 3.350% 159,955.00 869,955.00 1,029,910.00
08/01/2030 - - 148,062.50 148,062.50 -
02/01/2031 735,000.00 3.300% 148,062.50 883,062.50 1,031,125.00
08/01/2031 --135,935.00 135,935.00 -
02/01/2032 755,000.00 3.350% 135,935.00 890,935.00 1,026,870.00
08/01/2032 - - 123,288.75 123,288.75 -
02/01/2033 785,000.00 3.350% 123,288.75 908,288.75 1,031,577.50
08/01/2033 - - 110,140.00 110,140.00 -
02/01/2034 815,000.00 3.450%110,140.00 925,140.00 1,035,280.00
08/01/2034 - - 96,081.25 96,081.25 -
02/01/2035 835,000.00 3.500% 96,081.25 931,081.25 1,027,162.50
08/01/2035 - - 81,468.75 81,468.75 -
02/01/2036 765,000.00 3.650% 81,468.75 846,468.75 927,937.50
08/01/2036 --67,507.50 67,507.50 -
02/01/2037 790,000.00 3.850% 67,507.50 857,507.50 925,015.00
08/01/2037 - - 52,300.00 52,300.00 -
02/01/2038 820,000.00 3.950% 52,300.00 872,300.00 924,600.00
08/01/2038 - - 36,105.00 36,105.00 -
02/01/2039 860,000.00 4.050%36,105.00 896,105.00 932,210.00
08/01/2039 - - 18,690.00 18,690.00 -
02/01/2040 890,000.00 4.200% 18,690.00 908,690.00 927,380.00
Total $9,375,000.00 -$3,638,667.15 $13,013,667.15 -
Yield Statistics
Bond Year Dollars $97,604.58
Average Life 10.411 Years
Average Coupon 3.7279675%
Net Interest Cost (NIC)3.8336234%
True Interest Cost (TIC)3.8415336%
Bond Yield for Arbitrage Purposes 3.7106216%
All Inclusive Cost (AIC)3.9988346%
IRS Form 8038
Net Interest Cost 3.7279675%
Weighted Average Maturity 10.411 Years
2024A PRESALE GO Bonds | Issue Summary | 4/ 9/2024 | 4:50 PM
Page 3
City of Hopkins, Minnesota
$9,375,000 General Obligation Bonds, Series 2024A
Issue Summary - Principal 2029-2040
Assumes Current Market BQ AA+ Rates plus 50bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Assessments
Water
Revenue
Sewer
Revenue
Storm Sewer
Revenue
Levy/
(Surplus)
02/01/2025 --217,549.65 217,549.65 (89,096.25)128,453.40 134,876.07 -61,666.35 48,467.71 24,742.01 -
02/01/2026 --340,512.50 340,512.50 (139,455.00)201,057.50 211,110.38 77,000.29 96,521.25 75,862.50 38,726.63 (77,000.29)
02/01/2027 --340,512.50 340,512.50 (139,455.00)201,057.50 211,110.38 74,601.08 96,521.25 75,862.50 38,726.63 (74,601.08)
02/01/2028 --340,512.50 340,512.50 -340,512.50 357,538.13 72,201.86 96,521.25 75,862.50 38,726.63 74,225.89
02/01/2029 615,000.00 3.350%340,512.50 955,512.50 -955,512.50 1,003,288.13 69,802.66 280,271.25 217,612.50 38,726.63 396,875.09
02/01/2030 710,000.00 3.350%319,910.00 1,029,910.00 -1,029,910.00 1,081,405.50 67,403.44 279,365.63 218,113.88 117,476.63 399,045.94
02/01/2031 735,000.00 3.300%296,125.00 1,031,125.00 -1,031,125.00 1,082,681.25 65,004.23 278,284.13 218,439.38 120,088.50 400,865.02
02/01/2032 755,000.00 3.350%271,870.00 1,026,870.00 -1,026,870.00 1,078,213.50 62,605.01 277,123.88 218,665.13 117,316.50 402,502.99
02/01/2033 785,000.00 3.350%246,577.50 1,031,577.50 -1,031,577.50 1,083,156.38 60,205.81 275,690.63 218,638.88 119,752.50 408,868.57
02/01/2034 815,000.00 3.450%220,280.00 1,035,280.00 -1,035,280.00 1,087,044.00 57,806.59 279,331.50 218,436.75 122,012.63 409,456.54
02/01/2035 835,000.00 3.500%192,162.50 1,027,162.50 -1,027,162.50 1,078,520.63 55,407.39 277,155.38 217,890.75 118,752.38 409,314.74
02/01/2036 765,000.00 3.650%162,937.50 927,937.50 -927,937.50 974,334.38 53,008.17 279,937.88 217,077.00 120,694.88 303,616.46
02/01/2037 790,000.00 3.850%135,015.00 925,015.00 -925,015.00 971,265.75 50,608.97 276,756.38 221,061.75 117,054.00 305,784.66
02/01/2038 820,000.00 3.950%104,600.00 924,600.00 -924,600.00 970,830.00 48,209.75 278,160.75 219,035.25 118,463.63 306,960.63
02/01/2039 860,000.00 4.050%72,210.00 932,210.00 -932,210.00 978,820.50 45,810.55 278,914.13 221,862.38 119,566.13 312,667.33
02/01/2040 890,000.00 4.200%37,380.00 927,380.00 -927,380.00 973,749.00 43,411.33 278,995.50 218,820.00 120,351.00 312,171.17
Total $9,375,000.00 -$3,638,667.15 $13,013,667.15 (368,006.25)$12,645,660.90 $13,277,943.95 $903,087.13 $3,691,217.10 $2,901,708.83 $1,491,177.26 $4,290,753.62
Significant Dates
Dated 6/11/2024
First Coupon Date 2/01/2025
Yield Statistics
Bond Year Dollars $97,604.58
Average Life 10.411 Years
Average Coupon 3.7279675%
Net Interest Cost (NIC)3.8336234%
True Interest Cost (TIC)3.8415336%
Bond Yield for Arbitrage Purposes 3.7106216%
All Inclusive Cost (AIC)3.9988346%
Series 2024A GO Bonds #4 | Issue Summary | 4/ 8/2024 | 4:47 PM
City of Hopkins, Minnesota
$9,375,000 General Obligation Bonds, Series 2024A
Issue Summary - Principal 2029-2040
Assumes Current Market BQ AA+ Rates plus 50bps
Detail Costs Of Issuance
Dated 06/11/2024 | Delivered 06/11/2024
COSTS OF ISSUANCE DETAIL
Financial Advisor $78,000.00
Bond Counsel $21,000.00
Rating Agency Fee $21,000.00
Miscellaneous $2,000.00
TOTAL $122,000.00
2024A PRESALE GO Bonds | Issue Summary | 4/ 9/2024 | 4:50 PM
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