CR 95-110 Authorize Sale Of Bonds - Meadow Creek
\ y
o
June 26, 1995
o
.y ~
o P K \ ~
Council Rpt #95-110
.
AUTHORIZE SALE OF BONDS - MEADOW CREEK CONDOMINIUMS
ProDosed Action
Staff recommends approval of the following motion: Adopt resolution number 95-55 authorizing
the sale of General Obligation Bonds for the Meadow Creek Housing Improvement proiect.
With this motion, the bonds will be offered for sale.
Overview
The City of Hopkins has the authority to establish housing improvement areas under the Housing
Improvement Act (1994 Minnesota Laws, Chapter 587, Article 9, Section 22 through 31).
Within a housing improvement area, the City can sell bonds to pay for various improvements to
individual housing units and common areas. Those bonds are then repaid through fees imposed on
the owners of the units.
.
The City has held the necessary public hearings and has authorized the creation of the Meadow
Creek Housing Improvement Area and the fees. An executed development agreement between the
Association and the City requires the City to sell bonds before September 30, 1995, subject to
unavoidable delays and the City's ability to issue the Bonds under existing market conditions.
Because market conditions are favorable, it is being recommended that the bonds are issued and
dated September 1, 1995.
Primary Issues to Consider
The financing structure is very similar to that outlined in the March 2, 1995 Plall for HOlls;ng
Improvement Area No.1, however, it has been modified to account for the prepayments which have
been received and adjusted to reflect current interest rates (down approximately 1 %). The debt
service payments were again calculated at 105% to account for any delinquencies which may be
experienced.
SUDDortine: Information
o Resolution 95-55
o Pre-sale Report
/ .,/ /~,.,/
L /-;/ /<~;/ /:./;~S. I~/I. >1 )
M~ I ,,/ l~ ,( ....(.~ ~ t- ,.. 't )"____
.. Kerstell"blverum /
_ Housf~g Coordin~tor
(
TERlVIS OF PROPOSAL
e
$815,000 TAXABLE GENERAL OBLIGATION
IMPROVEMENT AREA BONDS, SERIES 1995
CITY OF HOPKlL'lS, MINNESOTA
Sealed proposals for the purchase of $815,000 Ta.xable General Obligation Improvement Area Bonds, Series
1995 (the "Bonds") of the City of Hopkins, Minnesota (the "City") will be received at the offices of Ehlers and
Associates, Inc., 2950 Norwest Center, 90 South Seventh Street, .Minneapolis, :Minnesota, until 12:00 o'clock Noon,
Central Time, on August 15, 1995, when they will be opened, read and tabulated for presentation to the City Council.
The proposals will be presented to the City Council for consideration for award at a meeting to be held in the City
at 7:30 o'clock P.M., Central Time, on the same date. The Bonds will be general obligations of the City for which
the City will pledge its full faith, credit and ta.xing powers. The proposal offering to purchase the Bonds upon the
terms specified herein and most favorable to the City will be accepted unless all proposals are rejected.
Purpose
The Bonds are being issued pursuant to the provisions of 1994 Minnesota Laws, Chapter 587, Article 9,
Sections 22 through 31 and Minnesota Statutes, Chapter 475, to fmance impr:ovements in the City's Housing
Improvement Area No.1.
Dates and Maturities
.
The Bonds will be dated September 1, 1995 as the date of original issue, will be issued as fully registered
Bonds in the denomination of $5,000 each, or any integral multiple thereof, and will mature on February 1 in the
following years and amounts:
Year Amount Year Amount
1998 $25,000 2006 $55,000
1999 30,000 2007 60,000
2000 35,000 2008 65,000
2001 35,000 2009 70,000
2002 40,000 2010 80,000
2003 45,000 2011 85,000
2004 45,000 2012 95,000
2005 50,000
Redemption
At the option of the City, Bonds maturing on or after February 1,2005 shall be subject to prior payment on
February 1,2004 or any date thereafter, at a price of par and accrued interest. Redemption may be in whole or in part
of the Bonds subject to prepayment. If redemption is in part, the selection of the Bonds remaining unpaid to be
prepaid shall be at the discretion of the City. If only part of the Bonds having a common maturity date are called for
prepayment, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine
by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select
by lot the beneficial ownership interest in such maturity to be redeemed.
.
Notice of such call shall be given by mailing a notice thereof by certified mail at least thirty (30) days prior
to the date fixed for redemption to the registered owner of each Bond to be redeemed at the address shown on the
registration books.
.
.
.
Interest Pavment Dates and Rates
Interest will be payable on February 1 and August 1 of each year, commencing August 1, 1996, to the
registered owners of the Bonds appearing of record in the bond register as of the close of business on the 15th day
(whether or not a business day) of the immediately preceding month. Interest will be computed upon the basis of a
360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. All Bonds of the same
maturity must bear interest from date of issue until paid at a single, uniform rate, not exceeding the rate specified for
Bonds of any subsequent maturity. Each rate must be expressed in an integral multiple of 5/1 00 or 1/8 of 1 %.
Book EntfY Format
The Bonds will be designated in the name of Cede & Co., as nominee for The Depository Trust Company
("DTC"), New York, New York. DTC will act as securities depository for the Bonds, and will be responsible for
maintaining a book-entry system for recording the interest of its participants and the transfers of interests between
its participants. The participants will be responsible for maintaining records regarding the beneficial interests of the
individual purchasers of the Bonds. So long as Cede & Co. is the registered owner of the Bonds, all payments of
principal and interest will be made to the depository which, in turn, will be obligated to remit such payments to its
Participants for subsequent disbursement to the beneficial owners of the Bonds.
Deliverv
Within 40 days after the sale, the Bonds will be delivered without cost to the original purchaser at DTe. On
the day of closing, the City will furnish to the purchaser the opinion of bond counsel hereinafter described,
appropriate arbitrage certifications and a certificate verifying that no litigation in any manner questioning the validity
of the Bonds is then pending or, to the best knowledge of officers of the City, threatened. Payment for the Bonds
must be received by the City at its designated depository on the date of closing in immediately available funds
Legal Opinion
An opinion as to the validity of the Bonds will be furnished by Kennedy & Graven of i'vlinneapolis,
Minnesota, bond counsel to the City, and will accompany the Bonds. The interest to be paid on the Bonds is
includable in gross income of the recipient for United States and State of Minnesota income tax purposes, and is
subject to Minnesota corporate and bank excise taxes measured by net income. The legal opinion will state that the
Bonds are valid and binding general obligations of the City enforceable in accordance with their terms, except to the
extent to which enforceability may be limited by Minnesota or United States laws relating to bankruptcy,
reorganization, moratorium or creditors' rights generally.
Tvpe of Proposal
Proposals for not less than $802,545 plus accrued interest on the principal sum of $815,000 from date of
original issue of the Bonds to date of delivery must be tiled with the undersigned prior to the time of sale. Proposals
must be submitted to Ehlers and Associates, Inc. either:
2
.
.
.
1) In a sealed envelope to Ehlers and Associates, Inc. as described herein;
2)
A facsimile submission to Ehlers and Associates, Inc., Financial Advisors, Facsimile Number: (612)
339-0854; or
3) Electronically via PARlTY, in accordance with PARITY Rules of Participation and this notice of sale, within
a one-hour period prior to the time of sale, but no proposals will be received after the time established above
for reed ving proposals. If any provisions in this notice are conflicting with those PARITY Rules of
Participation, this sale notice shall control. The normal fee for use of PARITY may be obtained from
PARITY, and such fee shall be the responsibility of the bidder. For further information about PARITY,
potential bidders may contact the financial advisor to the issuer, Ehlers and Associates, Inc., 2950 Norwest
Center, 90 South Seventh Street, Minneapolis, Minnesota 55402, Telephone (612) 339-8291, or PARITY
at 100 - 116th Avenue SE, Suite 100, Bellevue, Washington 98004, Telephone (206) 635-3545. The Issuer
and Ehlers and Associates, Inc. assume no liability if there is a malfunction of PARITY.
Proposals must be submitted to Ehlers and Associates, Inc. as described above and must be received prior
to the time established above for the opening of proposals. Each proposal must be unconditional except as to legality.
A good faith deposit (the "Deposit") in the amount of $16,300, or a financial surety bond complying with the
provisions below, must be submitted with each proposal. The Deposit must be in the form of a certified or cashiers
check or bank draft or a wire transfer of funds to Resource Bank & Trust Company, of Minneapolis, Minnesota., ABA
#09- I 0-0550-6 for further credit to Ehlers and Associates, Inc., Bond Issue Escrow Account #850-788-1, Attn: Dawn
Oberle, or a financial surety bond. The Deposit will be retained by the City as liquidated damages if the proposal is
accepted and the bidder fails to comply therewith. The Deposit will be returned to the Purchaser at the closing for
the Bonds. Proposals for the Bonds should be addressed to:
James GeneIlie
City Clerk
City Hall
10 10 1 st S treeet
Hopkins, lv1N 55343-7573
If a financial surety bond is used, it must be from an insurance company licensed to issue such a bond in the
State of Minnesota., and preapproved by the City. Such bond must be submitted to Ehlers and Associates, Inc. prior
to the opening of the proposals. Such bond must identify each bidder whose deposit is guaranteed by such financial
surety bond. If the Bonds are awarded to a bidder using a financial surety bond, then that purchaser is required to
submit its Deposit to Ehlers and Associates, Inc. in the form of a certified or cashier's check or wire transfer as
instructed by Ehlers and Associates, Inc. not later than 3 :00 P.M., Central Time, on the next business day following
the award. If such deposit is not received by that time, the financial surety bond may be drawn by the City to satisfy
the deposit requirement. In the event the purchaser fails to comply with the accepted proposal, said amount will be
retained by the City. No proposal can be withdrawn after the time set for receiving proposals unless the meeting of
the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the
Bonds having been made.
,
J
.
a
.
:. . . ~'. :;. ~ .:-:
.
'.. . :. ::~:.:",
.. ..,....,. ,"
.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 95-55
RESOLUTION PROVIDING FOR THE SALE OF $815,000 TAXABLE G.O. HOUSING
ThAPROVEMENT AREA BONDS, SERIES 1995
WHEREAS, the City Council of the City of Hopkins, :MN, has heretofore determined that it is
necessary and expedient to issue the City's $815,000 Taxable G.O. Housing Improvement Area
Bonds, Series 1995 (the "Bonds"), to finance the construction of improvements in the City's Housing
Improvement Area No.1; and
WHEREAS, the City has retained Ehlers and Associates, Inc., in Minneapolis, Minnesota ("Ehlers")
as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals 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, :MN., as
follows:
Authorization: Findings The City Council hereby authorizes Ehlers to solicit proposals for the
sale of the Bonds.
.
Meeting: Proposal Opening. The City Council shall meet at the time and place specified in the
Terms of Proposal attached hereto for the purpose of considering sealed proposals for and awarding
the sale of, the Bonds. The City Clerk, or designee, shall open proposals at the time and place
specified in such Terms of Proposal.
Terms of Proposal. The terms and conditions of the Bonds and the sale thereof are fully set forth
in the Terms of Proposal attached hereto and approved and made a part hereof
Official Statement. In connection with the 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.
Adopted this 5th day of July, 1995.
Charles D. Redepenning, Mayor
Attest
. James A. Genellie, City Clerk
.
PRE-SALE REPORT
TAXABLE G.O. HOUSING IMPROVEMENT AREA BONDS, SERIES 1995
CITY OF HOPKINS, MINNESOTA
JULY 5, 1995
.
.
. Ehlers and Associates. Inc.
lEAOERS IN PUBLIC FINANCE
2950 Nor west GRille,
9U SOlltll Seventh Street
MlllllPapalrs MN 55402-4100
16121339-8291 FAX [61213390854
.
.
.
.
.
.
OVERVIEW
This report describes the proposed plan for the City of Hopkins to issue $815,000 Ta..\':able
General Obligation Housing Improvement Area Bonds, Series 1995. This report has been
prepared by Ehlers and Associates, in consultation with City Staff and bond counsel. This
report deals with:
· Purpose and components of bond issue.
· Structure.
· Other considerations in issuing bonds.
Rating.
· Market conditions.
· Issuing process.
PROPOSED FINANCE PlAN
PURPOSE
The General Obligation Housing Improvement i\rea Bonds, Series 1995 (hereafter referred
to as the "Bonds") are being issued to finance improvements in the City's Housing
Improvement l\.rea No.1 (the "Area). The improvement~ are being made to the housing
units, garage units and common property of the Meadow Creek Condominiums. The City
has entered into an agreement with the Westbrooke Condominium Association to provide
51,100,000 to make the following improvements:
. Rehabilitation of garages.
. Rebuild trash and recycling areas.
. Upgrade building exteriors.
. Replacement of lighting fL\':hlres.
. Installation of new signage.
. Parking lot repairs.
. Site improvements.
A more complete description of the project can be found in the Plan for Housing
Improvement Area No. 1.
Page I
tit
PREliMINARY ANALYSIS
Attachment 1 contains the preliminary analysis of the bond issue. This analysis shows the
projected debt service expenses and dle flow of revenues to meet this obligation. The analysis
is based on the follov.'ing assumptions:
· The initial analysis projected a bond issue of $1,165,000. Accounting for pre-paid
fees, the amount ofdle bond issue drops to $815,000. The table below contains the
sources and uses of funds for the project.
Sources of Funds
Par Amount of Bonds
Pre-paid fees
815,000
341,526
Uses of Funds
Project Costs
Costs of Issuance
Capitalized Interest
Disoount
Other
Total Sources
1,156,526
Total Uses
1,107,500
33,000
3,571
12,455
o
1,156,526
· Interest rates on the bond issue have been revised to reflect current market conditions.
· The cash flow projections use total outstanding fees of $816,873. This amount equals
dle total levied fees of S 1,165,000 minus pre-paid fees and the credit for pre-payment.
The pre-payment credit equals 56,601 (541 per unit for 161 units).
.
.
The projected annual revenue from fees is based on the average annual payment on
5816,873 over 16 years at an interest rate of9.08%. This rate represents the rate
needed to produce annual revenue equal to 105% of the average annual debt service
payment. For comparison, the Housing Improvement Area Plan lLSed an interest rate
of 10.115% to calculate annual fees.
This analysis shows dlat revenues from the collection of fees will exceed debt service
requirements for the life of dle Bonds.
STRUCTURE
The Bonds will be dated September 1, 1995. The first interest payment on dle Bonds will be
due on August I, 1996, and semiannually thereafter on February 1 and August 1. Principal on
dle Bonds will be due on FcbrualY 1 in the years 1998 through 2012.
The Bonds have been structured to create relatively constant annual debt service payments and
to match dle anticipated flow of fee revenue.
.
We recommend making bonds maturing in dle years 2005 dlrough 2012 subject to
prepayment at the discretion of the City. Beginning on February 1, 2004 (the "call date"),
the City could prepay all or a portion of the outstanding bonds without penalty. Setting the
call date seeks to balance the needs of dle City widl the desires of the investor. The City
wants the greatest amount of flexibility in managing its debt and seeks the earliest possible call
date. The investor wants to limit the ability of the City to payoff the bonds prior to their
Page 2
.
.
.
final maturity. \Ve believe this structure strikes an appropriate balance.
A complete description of the terms and conditions related to the Bonds can be found in
Attachment 2.
AUTHORITY AND SECURITY
The Bonds are being issued pursuant to the provisions of 1994 ~Minnesota Laws, Chapter
587, Article 9, Sections 22 through 31 (the "Housing Improvement Act") and Minnesota
Statutes Chapter 475. On June 7, 1994, the City Council adopted Resolution #94-55
approving the speciallcgislation and making it effective.
Pursuant to the Housing Improvement Act, the City initiated the process for the housing
improvement area after receiving a petition representing over 35% of the property owners in
the Area. The City created Housing Improvement Area No.1 by ordinance pursuant to the
procedures in the Housing Improvement Act. Following the establishment of the Area, the
City adopted a resolution imposing fees needed to pay for the improvements proposed in the
Area. Property owners did exercise the right to veto either the ordinance or the resolution.
The Bonds are general obligations of the City, backed by its full faith, credit and ta.xing
powers to repayment. Revenue to pay debt service will come from the fees levied and
collected on properties in the Area. The fee is a form of taxation created by the HOllsing
Improvement Act to finance improvements in hOllsing improvement areas. The City has
adopted a resolution imposing fees against each housing unit in the Area. Prior to the
issuance of the Bonds, owners of 161 units prepaid their fee. The fees on the remaining units
will be paid in equal annll:1I installments over a 16 year period at an interest rate sufficient to
105% of the a\'erage annual debt service payment on the Bonds. Following the sale of the
Bonds, the annual fee for each unit will be certified to the County for collection in the years
1996 through 2011. The fees will be levied and collected in the same manner as general ad
valorem ta.xes. The County \-vill include the fees on the property t~'( statements under special
taxing districts.
In addition, the agreement with the Associ~ltion provides for payments for the Association in
the event of deficiencies in fee revenues.
OTHER CONSIDERATIONS
The key factors in the finance plan include:
· These oonds are not exempt from State or Federal income ta.'Xcs. The issuance of the
Bonds will not affect the City's annual limit on bank qualified bonds or bonds eligible
for the smaller issuer exemption from arbitrage rebate.
.
On July 3, 1995, new regulations of the Securities and Exchange Commission on the
continuing disclosure of municipal securities will take effect. Since the Bonds are less
than 51,000,000, they are not subject to thcse regulations.
Page 3
e
.
.
RATING
The general obligation bonds of the City of Hopkins are currently rated "AI" by Moody's
Investors Service, Ine. Part of the issuing process is thc presentation of information to the
rating agency to achieve the best possible rating for this issue. The key factors in the rating
strategy include:
· Provide a clear and tllOrough explanation of the finance plan. This issue is the first of
its type. We will make sure that finance plan is understood. We will pay particular
attention to the use of fees and the security of tllC Bonds.
· Update tlle financial condition of the City. Moody's last rated G.O. Bonds of
Hopkins in 1993.
· Discuss current economic development activities and upcoming capital improvements.
MARKET CONDITIONS
This year has been marked by generally falling interest rates. The graph in Attachment 3
shows the trends in the Bond Buyer's lO-Year G.O. Index (BEl) since 1990. While the BBl
represents tax-exempt rates, interest rates from t~\'"able municipal bonds follow similar trends.
The BBI rose sharply during the last quarter of 1994, but has fallen during 1995. Since
November, the BBI has gone from 7.06% to the current rate of 5.86%. Wc do not expect
significant changes in rates prior to tlle sale.
Page 4
.
.
.
ISSUING PROCESS
At its meeting on July 5, the City Council will be asked to adopt a resolution calling for the
sale of the Bonds. This resolution authorizes and directs Ehlers and Associates to take the
steps necessary to issue the bonds. In the coming weeks, we will prepare an official
statement and obtain a bond rating. We will solicit bids from banks and underwriters
throughout the region. The bond sale is scheduled for August 15. Bids will be received by
EWers and Associates at 12:00 and presented to the Council for consideration at 7:30. The
table below lists the steps in the issuing process.
July 5
City Council considers finance plan and
adopts resolution calling for sale of
bonds.
July 6 through
July 28
Data collection
Preparation of Official Statement
Submission of rating application
Week of July 24
Distribute draft 0.5.
Week of July 31
Distribute 0.5.
Week of August 7
Receive rating
August 15
Bond sale
Open 12:00
Consider bids 7:30
Week of September
11
Tentative closing/receipt of funds
Page 5
Preliminary - For Illustration Only
ATTACHMENT 1
.
~ of Hopkins, Minnesota
G.O. Housing Improvement Area Bonds (Meadow Creek)
Capitalized Interest
Gap on 8/1/96
Collection Factor
3,571
(2,780)
100%
~
Total
Prepaid $
Prepaid #
Net Fees
1,165,000
341,526
161
816,873
Total Fee Other Cumulative Fiscal
Date ~ .a.m. In.!emit f...ll AnrniiII ~ ~ ~ fiar
Of-Aug-96 55,728.75 55,728.75
01-feb-97 30,397 .50 30,397.50 86,126 98.755 3,571 16,2.00 1996
01-Aug-97 30,397.50 30,397.50
01-Feb-98 25,000 6.600 30,397.50 55,397.50 85,795 98,755 810 29,970 1997
01-Aug-98 29,572.50 29,572.50
01-Feb-GG 30,000 6.700 29,572.50 59.572.50 89,145 98.755 1 ,499 41,079 1998
01-Aug-99 28,567.50 28,567.50
o Heb.2000 35,000 6.800 28,567.50 63,567.50 92.,135 98.755 2,054 49.753 1999
01-Aug-2000 V,377.5O 27,377.50
OHeb-200 1 35.000 6.000 27,377.50 62,377.50 89,755 98,755 2,488 61,241 2000
01-Aug-2001 26,170.00 26,170.00
o Heb.2002 40,000 7.000 2.6,170.00 66,170.00 92,340 98.755 3,062 70,719 2001
01-Aug.2002 24,770.00 24,770.00
01-Feb-2.003 45,000 7.100 24,770.00 69,770.00 94,540 98.755 3,536 78,470 2002
01-Aug-2003 23,172.50 23,172.50
01-Feb.2004 45,000 7.200 23,172.50 68,172.50 91,345 98,755 3,923 89,804 2003
Ot-Aug-2004 21,552.50 21,552.50
OHeb-2005 50,000 7.300 21,552.50 71,552.50 93,105 98,755 4,490 99,944 2004
01-Aug-2005 19,727.50 19,727.50
01-Feb-2000 55,000 7.400 19,727 .50 74,727.50 94,455 98.755 4,997 109,241 2005
01-Aug-2006 17,692.50 17,692.50
OHeb-2007 60,000 7.WO 17,692..50 77,692.W 95,385 98,755 5,462 118,074 2006
01-Aug-2007 15,442.50 15,442.50
. o l-Feb-2008 65,000 7.600 15,442.50 80,442.50 95.885 98,755 5,904 126,848 2007
01-Aug-2008 12,972.50 12,972.W
01-Feb-2009 70,000 7.700 12,972.50 82,972.50 95,945 98,755 6,342. 136,000 2008
01.Aug-2009 10,277 .50 10,277.50
01-Feb-2010 80,000 7800 10,277.50 90,277.50 100,555 98,755 6,800 141.001 2009
01-Aug-2010 7,15750 7,157.50
01-Feb-2011 85,000 7.900 7,157.50 92,157.50 99,315 98,755 7,050 147,491 2010
01-Aug'2011 3,800 00 3,800.00
01-Feb-2012 95.000 8.000 3,800.00 98,800.00 102.600 98,755 7,m 151,021 2011
815,000 683,426.25 l,dJM?Ji:.25 1,~~~_, 69,363
Dated: 09/01195 Bond Years: 8.e7 ~ 58 Investment 5.00%
IntBfesl Start: 08/01/96 Average Ute; 110118
Dis.::ount: 12,455.00 Average Coupon: 7.61513%
Net InlBfest Cost: 7.75391%
NOTES
1. Interest rates based on currenl condilions. Actual resulls based on inlerest rates at time of sale.
2. Interest Rate on Annual Fee: 9.08%
3. Cumulabve balance earns income at rate of 5.00%.
.
Prepare<J by Ehlers and Associates
06.'23. 95
(GOHIA95'wK4)
.
.
.
ATTACHl\1ENT 2
SALE DETAILS
DATE:
June 23, 1995
ISSUER:
City of Hopkins, MN
BOND NAME:
$815,000 Taxable G. O. Improvement area Bonds, Series 1995
BOND ATTORNEY:
Steve BubuI - Kennedy & Graven
PURPOSE:
Finance Improvements in the City's Housing Improvement Area No.1
Sale Date:
Est Closing Date:
Bid Opening:
Bid Award:
Type of Sale:
Bonds Dated:
Maturity:
August 15, 1995
Week of September 11,1995
12:00 Noon, office of Ehlers & Associates, Inc.
7:30 p.m., City offices
Independent Financial Advisory Provision
September 1, 1995
February 1 as follows:
Year Amount
1998 $25,000
1999 30,000
2000 35,000
2001 35,000
2002 40,000
2003 45,000
2004 45,000
2005 50,000
Year Amount
2006 $55,000
2007 60,000
2008 65,000
2009 70,000
2010 80,000
2011 85,000
2012 95,000
First Interest:
August 1, 1996. Interest will be computed on the basis of a 360-day year
of twelve 30-day months and will be rounded pursuant to rules of the
MSRB.
.
.
.
Sale Details Continued:
Call Feature:
Minimum Proposal:
Good Faith:
Record Date:
CUSIP Numbers:
Regis tra tion/
Book Entry Only:
Paying Agent:
Financial Advisor;
Rating Requested:
Qualified Tax-Exempt
Obligations;
Bonds maturing on February 1,2005 and thereafter shall be subject to call
and prior payment on February 1,2004 or any date thereafter at par plus
accrued interest. Notice of such call shall be given by mailing a notice
thereof by registered or certified mail at least thirty (30) days prior to the
date fixed for redemption to the registered owner of each bond to be
redeemed at the address shown on the registration
$802,545
$16,300, payable to the Issuer.
Close of business on the 15th day (whether or not a business day) of the
immediately preceding month.
The Issuer will assume no obligation for the assignment or printing of
CUSIP numbers on the Bonds or for the correctness of any numbers printed
thereon, but will pennit such numbers to be printed at the expense of the
purchaser, if the purchaser waives any delay in delivery occasioned
thereby.
This offering will be issued as fully registered Bonds and, when issued, will
be registered in the name of Cede & Co., as nominee of The Depository
Trust Company, New Yark, New York.
To be determined -- whether City will act as paying agent or if the City will
name a bank
Ehlers and Associates, Inc.
Moody's Investors Service
These Bonds will be designated as qualified tax-exempt obligations.
N:\ WPDA T A \HOPKINS\HSGBONDS\SALEDET.
.
ATTACHMENT 3
8.00%
7.50%
7.00"/"
x 6.50%
Q.l
""0
C
q
CJ 6.00%
>-
co
Q.l
>-
. 6
C\J 5.50% .
5.00%
4.50%
4.00%
L.
.
Trends in Bond Buyers Index
1990 to Present
L__
I '
i
1990
1991
1992
1994
1995
1993
Ehlers and Associates
-
i