CR 99-110 Auth Sale of Bonds-GO Storm Sewer Rev Bonds, series 1999C, GO Revolving Improvement Fund Bonds, series 1999D & Taxable GO Housing Improvement Area Bonds, Series 1999B
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June 10, 1999 o p 1< \ ~ Council Report 99-110
(>1 AUTHORIZE SALE OF BONDS - G.O. STORM SEWER REVENUE BONDS, SERIES R999C, G.O.
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REVOLVING IMPROVEMENT FUND BONDS, SERIES 1999D AND TAXABLE G.O. HOUSING
IMPROVEMENT AREA BONDS, SERIES 1999B
Propmled Action
Staff recommends approval ofthe following motion: Adopt Resolution No. 99-050 authorizing the sale of
General Obligation Bonds for the Storm Sewer fund proiects, the P.I.R. proiects and the Westbrooke Patio
Homes Housing Improvement Area.
Adoption of this motion will result in the bonds being offered for sale on July 20, 1999, dated August 1, 1999.
Overview
Housing Improvement Bonds: 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 anticipated
amount of the bonds is $3,210,000.
The City has held the necessary public hearings and has authorized the creation of the Westbrooke Patio Homes
Housing Improvement Area and established the fees. An executed development agreement between the Association
and the City requires the City to sell bonds before September 1, 1999, subject to unavoidable delays and the City's
Cj ability to issue the Bonds under existing market conditions.
Storm SeweR" Revenue Bondg: The City of Hopkins has the authority to issue revenue bonds to pay for any utility
or other public convenience from which a revenue is or may be derived. The current and future projects in the storm
sewer fund qualify for bond issuance. In order to pay for the bonds the storm sewer rate was increased in 1999 to
generate an additional $150,000 in revenues each year. TIle bonds being issued will pay for projects approved in
1999 and those listed in the preliminary capital improvement plan for the year 2000 and 2001, for a total of
approximately $1,660,500. The current Storm Sewer rate should be sufficient to maintain operating expenses and
pay for principal and interest on the new bonds. The last date the Storm Sewer fund issued bonds was back in Oct.
1993. Those bonds paid for projects in 1994, 1995 and 1996. The anticipated amount of the new bond issue is
$1,545,000.
Revolving Improvement Bonds: The City of Hopkins has the authority to issue Permanent Improvement Revolving
fund bonds to pay for any improvement of which the cost is to be partially assessed. The assessment of $170,573 for
the street improvement project #98-09 exceeds the 20% threshold required for the issuance of bonds. The P.J.R. fund
will have a negative working capital balance within one year unless we issue these bonds. The last time the city
issued improvement bonds was in 1992. The current debt levy of$330,000 along with the assessments collected
should be sufficient to pay for the principal and interest of the new bonds. The anticipated amount of the new bond
issue is $850,000.
Primary Issues to Considen-
The financing structure for the Housing Improvement bonds has not changed since the establishment ofthe fees
but it will be modified to account for the prepayments received by July 3, 1999. The debt service payments were
r"'j calculated at 105% to account for any delinquencies which, may be experienced on the Housing Improvement
"--_ J bonds. This bond is structured to mature within 22 years.
The Storm Sewer Revenue bond issuance is necessary to continue the storm sewer projects as approved and
planned in the capital improvement plan. This bond is structured to mature within 16 years.
() The Perman~nt Imp:ove~ent Revolving Fund.bond issue is needed to maint~in a positive fund bala~ce and t.o
,-' pay for ongoIng projects In the P.I.R. fund whIle assessments and taxes contInue to be collected. ThIS bond IS
structured to mature within 11 years.
Stmff Recommendation
Finance recommends, along with the City's financial advisor, that we ask for a rating from both Standard and Poor's
and Moody's for all three issues. The cost of the ratings will be paid for with project revenue.
Supporting Information
o Resolution No. 99-050
o Bond Sale Report
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CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
(~) RESOLUTION 99-050
RESOLUTION PROViDING FOR THE SALE OF
$3,210,000 TAXABLE GENERAL OBLIGATION HOUSING lIIVI.PROVEMENT AREA RONDS,
SERIES 1999B
$1,545,000 GENERAL OBLIGATION STORM SEWER REVENUE BONDS, SERIES 1999C
$850,000 GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND
BONDS, SERIES 1999D
WHEREAS, the City Council of the City of Hopkins, Minnesota has determined that it is necessary and
desirable to issue the City's $3,210,000 Taxable General Obligation Housing Improvement Area Bonds,
Series 1999B; the $1,545,000 General Obligation Storm Sewer Revenue Bonds, Series 1999C; and
$850,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 1999D
(collectively the "Bonds"); as described in the Bond Sale Report dated June 10, 1999; and
WHEREAS, the City has designated Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers") as its
independent financial advisor and is therefore authorized to solicit proposals in accordance with
Minnesota Statutes, Section 475.60, Suddivision 2(9);
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
'.. J sale of the Bonds.
2. Meeting; Proposal Opening. The City Council shall meet at the time and place specified in the
Terms of Proposal 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.
3. Terms of Proposal. The terms and conditions of the Bonds and the sale thereof are fully set forth
in the Bond"Sale Report dated June 10, 1999.
4. 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.
Adopted by the City Council of the City of Hopkins held this 15th day of June, 1999.
Charles D. Redepenning, Mayor
ATTEST:
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lJ Terry Obermaier, City Clerk
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{~] ~~ 3060 Centre POlnte Drive, Rosevllle, MN 55113-1105
.,(..;,~ ';...=...-.,.,1 ~\,,:.." & ASSOCIATES INC 651.697.8500 fax 651.697,8555 www.ehlers-Inc,com
l-Io\iljl;'~ .,j Offices In Rosevil/e, MN, Brookfield, WI and Naperv/lle, IL
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Bond Sale Report
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OVERVI EW
This report describes the proposed plan for the City of Hopkins to issue the
following
" $3,210,000 Taxable General Obligation Housing Improvement Area
Bonds, Series 1999B (the "Housing Bonds" or the "Series 1999B Bonds").
" $1,545,000 General Obligation Storm Sewer Revenue Bonds, Series
1999C (the "Storm Sewer Bonds" or the "Series 1999C Bonds").
" $850,000 General Obligation Permanent Improvement Revolving Fund
Bonds, Series 1999D (the "PIR Bonds" or the "Series 1999D Bonds").
The term "the Bonds" refers to conditions that apply to all three series of bonds
discussed in this Report.
The proposed plan has been prepared by Ehlers & Associates in consultation with
0 City Staff and bond counsel. This report deals with:
Purpose and components of the bond issues.
"
.. Other considerations in issuing bonds.
" Market conditions.
" Issuing process.
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HOUSING BONDS
Summary
The Housing Bonds are being issued to finance the second phase of improvements
to be undertaken in the City's Housing Improvement Area No.2 (the "Area") for
the Westbrooke Patio Homes. The ordinance establishing the Area was amended
by the City Council to authorize these improvements on January 19, 1999.
On April 6, 1999, the City Council approved an agreement with the Westbrooke
Patio Home Condominium Association to provide funds to make the following
improvements:
t'~
C~ Rebuild streets and drives.
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Add curb, gutter, sidewalks.
Correct site drainage.
Rebuild retaining walls.
Replace siding and doors and related improvements.
Financing these improvements requires a bond issue in the amount of $3,210,000
and the following sources and uses of funds:
SOURCES OF FUNDS USES OF FUNDS
Par Amount of Bonds $3,210,000 Construction $3,037,000
Up-Front Revenue 214,000 Professional Services 133,500
City Administration 10,000
Interim Interest 15,000
City Reserve 20,000
Costs of Issuance 43,240
Discount 61,000
Capitalized Interest 104,260
Total Sources $3,424,000 Total Uses $3,424,000
The amount of the Bonds will be reduced using the revenues collected during
() the prepayment period.
~._d A more complete description of the project can be found in the Plan for Housing
Improvement Area No.2.
fees
Revenue to pay debt service on the Bonds will come from the fees imposed upon
housing units in the Area. On January 19, 1999, the City Council adopted the
resolution imposing the fees. The statutory period to petition for veto of the fee
resolution has lapsed. The fees will be levied in 1999 for initial collection with
taxes payable in 2000. The fees will be levied annually through 2019. Monies
accumulated in the debt service fund will be sufficient to pay the final year's
principal and interest.
The City allowed the total fee for each housing unit to be prepaid in full or in part
until July 3, 1999. The amount of prepaid fees will be used to reduced the size of
the Housing Bonds. The initial sizing shown in this report assumes $50,000 in
prepaid fees.
All units not exercising the ability to prepay will pay fees on an annual basis. The
annual fee for each unit represents the payment of the total fee plus interest in
equal annual installments over a 20-year period. The rate of interest used to
C) determine the annual fee will be equal to the average interest rate on the Housing
Bonds plus an amount needed to produce total fee revenue collected from all units
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Bond Sale Report
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in each year that equals 105% of the average annual debt service on the Housing
Bonds. The interest rate on the annual fees will be set based on the results of sale.
Structure
The payment of principal on the Housing Bonds has been structured to produce
relatively constant annual debt service over the life of the Housing Bonds. The
repayment of principal is set to lag one year behind the collection of fee revenues.
The initial collection of fees occurs in 2000. The first principal payment is due on
February 1, 2002 payable from fee revenue collected in 2001. This stmcture
allows for the accumulation of a surplus in the debt service fund, providing a
buffer against delinquencies in fee payments. The City will deposit $20,000 of the
bond proceeds into the debt service fund to provide the initial cash flow buffer.
The preliminary projection of debt service and revenues for the Housing Bonds
appears in Attachment 1.
Terms of issue
The Bonds are issued under the authority of special legislation for the creation of
housing improvement areas in the City of Hopkins, Minnesota Laws 1994,
Chapter 587, Article 9, Sections 22 through 33. The Bonds are general
obligations of the City, backed by its full faith, credit and taxing powers to
C) repayment.
Sale Date July 20, 1999
Bonds Dated August 1, 1999
First Interest Payment February 1, 2000
Subsequent Interest Payments August 1 and February 1
Principal Payments February 1, 2002 through 2021
Call Provision Bonds maturing in 2010 through
2021 callable on Febmary 1, 2009
and any date thereafter.
The complete Sale Details for the Bonds are described in Attachment 2.
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STORM SEWER BONDS
Summary
The Storm Sewer Bonds are being issued to finance current and planned
improvements to the municipal storm water management system. Financing these
improvements requires a bond issue in the amount of $1,545,000 and the
following sources and uses of funds:
SOURCES OF FUNDS USES OF FUNDS
Par Amount of Bonds $1,545,000 Project Costs $1,500,000
Up-Front Revenue 0 Costs of Issuance 19,850
Discount 25,150
Capitalized Interest 0
Total Sources $1,545,000 Total Uses $1,545,000
Structure
The payment of principal on the Storm Sewer Bonds has been structured to
produce relatively constant annual debt service over the life of the Storm Sewer
Bonds. The projected annual debt service can be supported by current estimated
0 net revenues of the municipal storm sewer utility. The preliminary projection of
debt service and revenues for the Storm Sewer Bonds appears in Attachment 3.
These projections include existing debt supported by storm Sewer utility revenues
Terms of Issue
The Storm Sewer Bonds are issued under the authority of Minnesota Statutes,
Section 444.075 and Chapter 475. The Storm Sewer Bonds are general
obligations of the City, backed by its full faith, credit and taxing powers to
repayment. Principal and interest on the Storm Sewer Bonds will be paid from the
net revenues of the City's storm sewer utility.
Sale Date July 20, 1999
Bonds Dated August 1, 1999
First Interest Payment February 1, 2000
Subsequent Interest Payments August 1 and February 1
Principal Payments February 1,2000 through 2015
Call Provision Bonds maturing in 2008 through
2015 callable on February 1, 2007
and any date thereafter.
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The complete Sale Details for the Bonds are described in Attachment 4.
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PiR BONDS
Summary
The PIR Bonds are being issued to finance 1999 alley and street improvement
projects undertaken through the City's Permanent Improvement Revolving Fund.
Financing these improvements requires a bond issue in the amount of $850,000
and the following sources and uses of funds:
SOURCES OF FUNDS USES OF FUNDS
Par Amount of Bonds $850,000 Project Costs $803,000
Up-Front Revenue 0 Costs of Issuance 15,140
Discount 11,900
Capitalized Interest 19,960
Total Sources $850,000 Total Uses $850,000
Structure
The payment of principal on the PIR Bonds has been structured to match the
() anticipated flow of revenues from special assessments and property taxes over life
of the Storm Sewer Bonds. The City approved special assessments in the amount
of $170,573. The amount assessed exceeds to 20% threshold required for the
issuance of bonds. The assessments will be levied in 1999 for payment in the year
2000 through 2009. The assessments will be equal annual installments of
principal and interest with the interest accruing at a rate of 8.00%. The City will
levy general property taxes sufficient pay remaining debt service expense. The
preliminary projection of debt service and revenues for the PIR Bonds appears in
Attachment 5.
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Terms of Issue
The PIR Bonds are issued under the authority of Minnesota Statutes, Section
Chapter 475 and the City Charter. The PIR Bonds are general obligations of the
City, backed by its full faith, credit and taxing powers to repayment. Principal and
interest on the PIR Bonds will be paid from a combination of special assessments
and property taxes. The complete Sale Details for the Bonds are described in
Attachment 6.
Sale Date July 20, 1999
Bonds Dated August 1, 1999
First Interest Payment February 1, 2000
Subsequent Interest Payments August 1 and February 1
Principal Payments February 1
2001 through 2010
Call Provision Bonds maturing in 2007
through 2010 callable on
0 February 1, 2006 and any
date thereafter.
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RATING
On the City's behalf, we will request that the Bonds be rated by Moody's
Investors Service and Standard & Poor's. For the last issue of housing
improvement bonds (March, 1999), both agencies assigned comparable ratings of
Moody's Al and S&P A+. We do not anticipate that the Bonds will affect the
City's rating.
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OTHER CONSIDERATIONS
Taxable Bonds
Interest on the Series 1999B Bonds will not be exempt from taxation as income.
The taxable status of the Housing Bonds will affect the interest rates and other
provisions of the issue.
Bank Qualified Bonds
C) The City will designate the Series 1999C Bonds and Series 1999D Bonds as
qualified tax-exempt obligations pursuant to Section 265 of the Internal Revenue
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Code of 1986. The City does not expect to exceed the $10,000,000 limit on the
amount of bank qualified bonds in calendar year 1999.
Arbitrage Rebate
As taxable obligations, the Series 1999B Bonds are not subject to arbitrage rebate
and reporting. Since the total amount of the Series 1999C Bonds and Series
1999D Bonds does not exceed $5,000,000 and the City does not anticipate issuing
additional tax-exempt bonds in 1999, these bonds will qualify for the small issuer
exemption from arbitrage rebate. This exemption from rebate does not eliminate
the need to comply with other arbitrage regulations governing the investment of
bond proceeds and debt service funds. These requirements will be explained in
the bond record book received following closing.
Global Bool\ Entry
The Bonds will be global book entry. As "paper less" bonds, you will avoid the
costs of bond printing and annual registrar charges. The City will designate
Bankers Trust as Paying Agent. 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.
(\ Continuing iDisclosure
\... ,/ Regulations of the Securities and Exchange Commission on the continuing
disclosure of municipal securities apply to long-term securities with an aggregate
principal amount of $1,000,000 or more.
Since 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 for each issue 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
Certificate that you will enter into at the time of closing for this issue.
You are responsible for reporting any of the material events listed below and in
the Undertaking.
1. Principal and interest payment delinquencies;
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial
0 difficulties;
4. Unscheduled draws on credit enhancements reflecting financial
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difficul ties;
5. Substitution of credit of liquidity providers, or their failure to perform;
6. Adverse tax opinions or events affecting the tax-exempt status of the
securities;
7. Modification to rights of holders of the Securities;
8. Securities calls;
9. Defeasances;
10. Release, substitution or sale of property securing repayment of the
Securities;
11. Rating changes;
12. Failure to provide annual financial information as required; and
13. Other material events.
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MARKET CONDITIONS
Current interest rates provide an excellent environment for issuing the Bonds.
The Bond Buyer's 20-Year G.O. Index (BBI) has remained relatively constant
since late August. Rates in 1998 continued a multi-year downward trend. During
0 the year, the BBI fell to 4.82%, the lowest point in almost 30 years. In recent
weeks, the BBl has been on a slight upward trend. The BBBI currently stands at
5.29%. The graph below shows the trends for tax-exempt rates in the BBl since
1990. Depending on market conditions, taxable interest are typically 1.50% to
2.00% higher than tax-exempt rates for the same issue and credit.
Bond Buyer's Index
20-Vear G.O. Bonds
8.00%
7.50%
7.00%
6.50%
6.00%
5.50% ~
5.00% . f\~..L
4.50%
1990 1992 1994 1996 1998
1991 1993 1995 1997 1999
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~SSUING PROCESS
Following is a tentative schedule for the steps in the issuing process.
June 15, 1999 City Council adopts resolution calling for the
sale of the Bonds.
Week of July 5 Distribute Official Statement
Week of July 12 Receive bond rating
J lily 20 Bond sale
Week of August 9 Bond closing (estimated)
C:\PROJECfS\HOPKINS\98Bonds\PRE_SALE, WPD
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Resolution No.
n Council Member introduced the following resolution and moved its adoption:
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Resolution Providing for the Sale of
$3,2JlO,000 Taxable General Obligation Housing Improvement Area Bonds, Series 1999B
$1,545,000 General Obligation Storm Sewer Revenue Bonds, Series 1999C
$850,000 General Obligation Permanent improvement Revolving Fund Bonds, Series 1999D
WHEREAS, the City Council of the City of Hopkins, Minnesota, has determined that it is
necessary and desirable to issue the City's $3,210,000 Taxable General Obligation Housing Improvement
Area Bonds, Series 1999B; the $1,545,000 General Obligation Storm Sewer Revenue Bonds, Series
1999C; and $850,000 General Obligation Permanent Improvement Revolving Fund Bonds, Series 1999D
(collectively the "Bonds"); as described in the Bond Sale Report dated June 10, 1999; and
WHEREAS, the City has designated Ehlers & Associates, Inc., in Roseville, Minnesota
("Ehlers") as its independent financial advisor 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 City of Hopkins, Minnesota, as
follows:
1. Authorization: Findings. The City Council hereby authorizes Ehlers to solicit proposals for the
sale of the Bonds.
n 2. Meeting: Proposal Opening;. The City Council shall meet at the time and place specified in the
'~ ' Terms of Proposal 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.
3. Terms of Proposal. The terms and conditions of the Bonds and the sale thereof are fully set forth
in Bond Sale Report dated June 10, 1999.
4. 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 15th day of June, 1999.
0 City Clerk
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---------- --- --- - ---
A T1' ACHMENT 2
C\ TERMS AND CONillJlil'JIONS OF ]ISSUE
",-/ $3,210,000 Taxable Genera! Obligation Housing Improvement Area Bonds, Series 1999B
~ . ~~--~~, """ ~"""'-"'~ -~-~
DATE: June 10, 1999
ISSUER: City of Hopkins, Minnesota
BOND NAME: $3,210,000 Taxable General Obligation Housing Improvement Area
Bonds, Series 1999B
BOND ATTORNEY: Steve Bubul (Kennedy & Graven)
PURPOSE: Finance phase 2 of improvements in Housing Improvement Area No.3
(Westbrooke Patio Homes).
----~ ~,-- ~~ ~,=~~==O"
Sale Date: July 20, 1999
Est. Closing Date: August 10, 1999
n ]?["oposaH Opening: 11 :00 a.m., office of Ehlers & Associates, Inc.
-,~ -
PJroposai A ward: 7:30 p.m., municipal offices.
Type of Sale: Independent Financial Advisory Provision.
Bonds Dated: August 1, 1999
MatuR"ity: February 1, 2002 - 2021
Term Bond Option: All dates are inclusive. Bids for the bonds may contain a
maturity schedule providing for any combination of serial
bonds and term bonds, subject to mandatory redemption, so
long as the amounts of principal maturing or subject to
mandatory redemption in each year -conforms to the
maturity schedule set forth above.
First Interest: February 1, 2000. 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.
Cl Call Feature: Bonds maturing in the years 2010 through 2021 will be
subject to redemption prior to final maturity on February 1,
2009 and on any date thereafter. Notice of such call shall
be given by mailing a notice thereof by registered or
0 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.
Minimum Proposal: $3,149,000.
Good Faith: $64,200, payable to the Kssuer (Cashiers or Certified Good
Faith Check or wire transfer of funds to Ehlers Good Faith
Escrow or financial surety bond.
Record Date: Close of business on the 15th day (whether or not a
business day) of the immediately preceding month.
CUSIP Numbers: 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 permit
such numbers to be printed at the expense of the purchaser,
if the purchaser waives any delay in delivery occasioned
thereby.
Paying Agent: Bankers Trust - Des Moines
() Registration!
Book Entry Only: 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 York,
New York.
Fimmcnal Adviso:r: Ehlers & Associates, Inc. (Rusty Fifield/Mark Ruff)
# OIS to Purchaser: _ copIes.
Rating Requested: Moody's Investors Service and Standard & Poor's.
Qualified Tax-Exempt
ObUgations: These Bonds WILL NOT be designated as qualified tax-
exempt obligations.
Continuing Disdosmre: Full
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A 1fT ACHMENT 4
0 TERMS ANI[) CON])]I1rJIONS OF lISSlUE
$1,545,000 General Obligation Storm Sewer Revenue Bonds, Series 1999C
""""",-"",-"",,,w=.'illll.-'.I.~~.=r~_ """""' """'" ~...............~........=
]I) A 1I'lE: June 10, 1999
IlSSUlER: City of Hopkins, Minnesota
BOND NAME: $1,545,000 General Obligation Storm Sewer Revenue Bonds, Series 1999C
BOND ATTORNEY: Steve Bubul (Kennedy & Graven)
PURPOSE: Finance current and future improvements to the municipal storm water
management system.
-- - ~~"'~~
Sale Date: July 20, 1999
Est. Closing Date: August 10, 1999
Proposal Opening: 11 :00 a.m., office of Ehlers & Associates, Inc.
0 Proposal A ward: 7:30 p.m., municipal offices.
Type of Sale: Independent Financial Advisory Provision.
Bonds Dated: August 1, 1999
Maturity: February 1, 2000 - 2015
Term Bond Option: All dates are inclusive. Bids for the bonds may contain a
maturity schedule providing for any combination of serial
bonds and term bonds, subject to mandatory redemption, so
long as the amounts of principal maturing or subject to
mandatory redemption in each year conforms to the
maturity schedule set forth above.
First Interest: February 1, 2000. 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.
Call Feature: Bonds maturing in the years 2008 through 2015 will be subject
to redemption prior to final maturity on February 1, 2007 and on
any date thereafter. 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 books.
n Minimum Proposal: $1,519,850.
~'.'-- ....
Good Faith: $30,900, payable to the Issuer (Cashiers or Certified Good Faith
Check or wire transfer of funds to Ehlers Good Faith Escrow or
financial surety bond.
Record Date: Close of business on the 15th day (whether or not a business
day) of the immediately preceding month.
CUSIP Numbers: 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 permit such numbers to
be printed at the expense of the purchaser, if the purchaser
waives any delay in delivery occasioned thereby.
Paying Agent: Bankers Trust - Des Moines
Registration!
Book Entry Only: 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 York, New York.
Financial Advisor: Ehlers & Associates, Inc. (Rusty Fifield/Mark Ruff)
() # 0/8 to Purchaser: _ copIes.
Rating Requested: Moody's Investors Service and Standard & Poor's.
Qualified Tax-Exempt
Obligations: These Bonds WJ!LJL be designated as qualified tax-exempt
obligations.
Continuing Disclosure: Full
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A TT ACHMJENT 6
(") TERMS AND CONDli1I'JIONS OF ]ISSUE
""'...-"" $850,000 Genera! ObRigation Permanent Improvement Revolving Fund Bonds,
Series Jl999D
=~ .~=-~~ ~
DATE: June 10, 1999
ISSUER: City of Hopkins, Minnesota
lBOND NAME: $850,000 General Obligation Permanent Improvement Revolving Fund
Bonds, Series 1999D
BOND ATTORNEY: Steve Bubul (Kennedy & Graven)
PURPOSE: Finance 1999 street and alley improvements undertaken through the City's
Permanent Improvement Revolving Fund.
~oI..A'-"_='<>=''''=_ "'.~L~~~' ~ ~, .,"--.~ - ~"~ ",.. ~ ,~"""~ -'" -. ~~ .~
Sale Date: July 20, 1999
Est. Closing Date: August 10, 1999
() Proposal Opening: 11 :00 a.m., office of Ehlers & Associates, Inc.
Proposal A ward: 7:30 p.m., municipal offices.
Type of Sale: Independent Financial Advisory Provision.
Bonds Dated: August 1, 1999
Maturity: February 1,2001 - 2010
Term Bond Option: All dates are inclusive. Bids for the bonds may contain a
maturity schedule providing for any combination of serial
bonds and term bonds, subject to mandatory redemption, so
long as the amounts of principal maturing or subject to
mandatory redemption in each year conforms to the
maturity schedule set forth above.
First Interest: February 1, 2000. 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.
Call Feature: Bonds maturing in the years 2007 through 2010 will be subject
() to redemption prior to final maturity on February 1, 2006 and on
any date thereafter. 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
C) address shown on the registration books.
'-'
Minimum !Proposal: $838, 100.
Good Faith: $17,000, payable to the Kssuer (Cashiers or Certified Good Faith
Check or wire transfer of funds to Ehlers Good Faith Escrow or
financial surety bond.
Record Date: Close of business on the 15th day (whether or not a business
day) of the immediately preceding month.
CUSIP Numbers: 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 permit such numbers to
be printed at the expense of the purchaser, if the purchaser
waives any delay in delivery occasioned thereby.
!Paying Agent: Bankers Trust - Des Moines
Registration!
Book Entry Only: 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 York, New York.
r""1 Financial Advisor: Ehlers & Associates, Inc. (Rusty FifieldlMark Ruff)
C.j
# 0/8 to !Purchaser: _ COples.
Rating Requested: Moody's Investors Service and Standard & Poor's.
Qualified Tax-Exempt
Obligations: These Bonds WILL be designated as qualified tax-exempt
obligations.
Continuing Disclosure: Full
C:\PROJECTS\HOPKINS\9813onds\PRE_SALE,WPD
0
-------- -- -----------
'.
Bond Sale Report
C-'i
,j
The complete Sale Details for the Bonds are described in Attachment 4.
L___ _~-'_ .._~~~,~~ -~.._~
p~ ~ BONDS
Summary
The PIR Bonds are being issued to finance 1999 alley and street improvement
projects undertaken through the City's Permanent Improvement Revolving Fund-
lFinancing these improvements requires a bond issue in the amount of $850,000
and the following sources and uses of funds:
SOURCIES OF FUNDS USES Of fUNDS
"-'-"""""'~"'''''''''~~~'~~W,,,,,,",-_''''''-''''b'_ '..""e",'~~ '~~"-"~__~'d""'" ~ ~----"'"- --'--- =~ "_ ..._ ",,~_3'm!L.!1 = ~ ~ .!"-- -
Par Amount of Bonds $850,000 Project Costs $803,000
Up-Front Revenue 0 Costs of Issuance 15,140
Discolmt 11,900
Capitalized Interest 19,960
T eta I Sou fees $850,000 Total Uses $850,000
Sirudul'e
The payment of principal on the PIR Bonds has been s[rUctured to match the
0 anticipated flow of revenues from special assessments and property taxes over the
life of the PIR Bonds. The City approved special assessments in the amount of
$170,573. The amount assessed exceeds to 20% threshold required for the
issuance of bonds. The a."sessments will be levied in 1999 for payment in the year
2000 through 2009. The assessments will be equal annual installments of
principal and interest with the interest accruing at a rate of 8.00%. The City will
levy general property [axes sufficient pay remaining debt service expense. The
preliminary projection of debt service and revenues for the PIR Bonds appears in
Attachment 5.
0
Page 5
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