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CR 2012-079 Authorize the sale of Bondsi3210 - July 17, 2012 City of Hopkins City Council Report 2012-079 AUTHORIZE THE SALE OF $1,985,000 G.O. CIP BONDS, SERIES 2012A AND $5,650,000 G.O. BONDS, SERIES 2012B Proposed Action Staff recommends approval of the following motion: Adopt Resolution 2012-048 Providing for the Sale of $1,985,000 G.O. CIP Bonds, Series 2012A and $5,650,000 G.O. Bonds, Series 2012B. Adoption of this motion will result in the bonds being offered for sale on August 21, 2012. Overview The City of Hopkins has the authority to issue GO bonds to pay for street improvements and equipment needs within the city. The last bond issue was done in 2010 and was for street improvements. In 2011 and 2012 the city has undergone almost $5 million in street improvements which were financed by past bond proceeds, special assessments and fund balance. We need to provide financing for projects scheduled in the city's capital improvement plan. After evaluation of the PIR Fund cash flow, impact on the tax levy and future needs we are proposing a bond issue of $5.65 million. This will include funds for the PIR, water, sewer and storm sewer components of the project as well as provide funds for equipment needs identified in the 2012 ERP. Due to low interest rates as a result of current market conditions this is an excellent opportunity to sell bonds. In addition to bonding for new money we are recommending the refinancing of the 2003 GO HRA Revenue Bonds for an estimated savings of $141,800. Primary Issues • Street Improvement funding needs • Equipment Replacement fund, funding needs • Savings on refunded issue Staff Recommendation Staff recommends approval of the resolution and further recommends, along with the City's financial advisor, that we ask for a rating from Standard & Poors for the issue. The cost of the rating will be paid with bond proceeds. Supporting Information • Resolution No. 2012-048 • Bond Sale Reports • ERP & CIP Cash Flow Statements Christine M. Harkess, CPA, CGFM Finance Director Financial Impact: $ 7,635,000 in bond proceeds, est $141,831 savings in refunding Budgeted: Y/N No Source: PIR, ERP and Enterprise Funds Related Documents (CIP, ERP, etc.): _Capital Improvement Plan Notes: CITY OF HOPKINS HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2012-048 Resolution Providing for the Sale of $19,9859000 G.O. CIP Bonds, Series 2012A and $5,650,000 G.O. Bonds, Series 2012B 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 $1,985,000 General Obligation CIP Bonds, Series 2012A and the City's $5,650,000 General Obligation Bonds, Series 2012B (the "Bonds"), to finance a net cash refunding of the 2003 HRA Public Project Lease Revenue Bonds and to finance the 2011 and 2012 road reconstruction projects, water meter replacement and major capital equipment purchases in the City; and B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, 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 solicit proposals for the sale of the Bonds. 2. Meeting; Proposal Opening. The City Council shall meet at 7:30 p.m. on August 21, 2012, for the purpose of considering sealed proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. Adopted by the City Council of the City of Hopkins this 17th day of July 2012. LIM ATTEST: Kristine A Luedke, City Clerk Eugene J. Maxwell, Mayor Debt Issuance Services July 17, 2012 Pre -Sale Report for $1,985,000 General Obligation CIP Bonds, Series 2012A And $5,650,000 General Obligation Bonds, Series 2012B Hopkins, Minnesota Prepared and Presented by: Stacie Kvilvang And Shelly Eldridge \mm.ehlers-inc,com EH L E R S Minnesota phone 651-697-8500 3060 Centre Pointe Drive LEADERS IN PUBLIC FINANCE Offices also in Wisconsin and Illinois fax 651-697-8555 Roseville, MN 55113-1122 toll free 800-552-1171 Executive Summary of Proposed Debt Debt Issuance Services Proposed Issue:I $1,985,000 GO CIP Bonds, Series, 2012A and $5,650,000 GO Bonds, Series 2012B Authority: Series 2012A: These Bonds are being issued pursuant to Minnesota Statutes, and Chapter 475.521 (refunding of HRA public project lease revenue bonds to CIP bonds) and 475 (general bond statute). These Bonds are a refunding of the 2003 HRA Public Project Lease Revenue Bonds ($3,050,000). The City held the required public hearing on July 10, 2012. CIP debt is limited to 3% of annual taxable market value. In the City, the taxable market value is $1,471,076,286. Therefore, the total amount of outstanding debt paid by taxes cannot exceed $44,132,289. As of June 30, 2012, the City had approximately $9,809,083 subject to the legal debt limit (this amount includes the 2003 Bonds that are being refunded). As such, issuance of the CIP Bonds will be within the overall statutory debt limit for the City. A separate limitation under the CIP Act is that, without referendum, the total amount of principal and interest in any one year on all CIP Bonds issued by the City debt cannot exceed 0.16% of the total taxable market value in the municipality. In the City, that maximum annual debt service amount is $2,353,722 for the proposed 2012 tax year ($1,471,076,286 X .0016). The annual principal and interest payments on the CIP Bonds proposed to be issued under this CIP will average approximately $220,000. As such, debt service on the CIP Bonds will be well within the annual limits under the CIP Act. Series 2012B These Bonds are being issued pursuant to Minnesota Statues, Chapter 429 (street and assessment portion), Chapter 444 (utility debt), Chapter 412.301 (equipment certificate) and 475 (general bond statute). Because the City is assessing at least 20% of the improvement project costs to be financed with the improvement bond portion of the Bonds, the Bonds can be a general obligation without a referendum and will not count against the City's debt limit. Because the utility portions of the Series 2012B Bonds are paid 100% with revenues, there is no requirement for a referendum nor does the Chapter 444 portion of the Bonds count against the City's debt limit. For the equipment certificate portion of the Bonds, the total amount of this Certificate is under .25% of the City's taxable market value Presale Report July 17, 2012 City of Hopkins, Minnesota Page 1 Debt Issuance Services and therefore does not require a publication of "intent to issue" or a public hearing. However, this portion of the Bonds does count against the City's debt limit. As noted under the discussion of the 2012A Bonds, there is approximately $34 million of debt that still could be issued. By deducting the equipment certificate portion from this amount, this reduces the available debt limit to approximately $33 million. Purposes/Funding Sources: Series 2012A: The purpose is to provide funds sufficient for a net cash refunding of the 2013 through 2024 maturities of the 2003 HRA Public Project Lease Revenue (the "Prior Bonds"). Interest rates on the Prior Bonds proposed to be refunded average 4.17%. The new rates are expected to be approximately 1.95%. The Net Present Value Benefit of the refunding is estimated to be approximately $141,831, equal to 6.919% of the refunded principal (approximately $15,000 per year over the next 11 years). The HRA will be utilizing $238,955 from the existing Debt Service Reserve Fund (DSRF) held in escrow to buy down the bonds The Bonds will be paid by a tax levy. Series 2012B: These Bonds are being issued for a 15 -year period and are intended to pay for the costs of the 2011 and 2012 street and utility reconstruction projects and water meter replacement ($4,640,000), and major capital equipment including a quick attach pumper, single axel dump truck, front end loader, regenerative air sweeper, ice resurfacer and backhoe loader ($1,010,000). The Bonds will be paid with water utility revenues, storm sewer utility revenues, sanitary sewer utility revenues (for the utility portion of the Bonds), Ice Arena revenues (for ice resurfacer), special assessments, and a tax levy (for the equipment certificate and improvement portion of the bonds not paid for by special assessments). Attached to this report is a schedule of annual debt service costs and the specific revenues available in each fiscal year to pay the debt. The first principal payment will be on February 1, 2014 and will continue for 15 years of payments through February 1, 2028. It is the intent of the City to levy approximately $1,919,403 in special assessments against benefitting property owners at 5% ($946,365 for the 2011 projects and $973,038 for the 2012 projects). 42% of the special assessments were prepaid for the 2011 street' project ($410,051) and staff expects approximately 22% or $219,911 in prepaid special assessments for the 2012 improvement project. This leaves a net amount of special assessments outstanding of approximately $1,289,441. The assessments will be levied for a 15 -year term, commencing in 2012, for collection in the years 2013 through 2027 for payment on the Bonds in 2014 through 2028. Presale Report July 17, 2012 City of Hopkins, Minnesota Page 2 Debt Issuance Services Presale Report July 17, 2012 City of Hopkins, Minnesota Page 3 Term/Call Feature Series 2012A: The term of these Bonds will be reduced by one (1) year, due to utilizing the DSRF to buy down the Bonds (terminate in 2023). Series 2012B: The improvement and utility portion of the Bonds are being issued for a 15 year term, the equipment certificate portion of the Bonds are being issued for a 10 year period Principal on the Bonds will be due on February 1 in the years 2014 through 2028. The Bonds will be structured to have a seven (7) or eight (8) year call dependent upon market conditions. Bank Qualification Since the City is issuing less than $10,000,000 in the calendar year, the City will be able to designate the Bonds as "bank qualified" obligations since the current refunding portion of the Bonds were originally designated as Bank Qualified. Bank qualified status broadens the market for the Bonds, which can result in lower interest rates. Rating: The City's most recent bond issue was rated "AA" by Standard & Poor's. 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. Method of Sale/Placement: In order to obtain the lowest interest cost to the City, we will solicit competitive bids for purchase of the Bonds from national and regional bidders. We have included an allowance for discount bidding equal to 1.25% of the principal amount of the issue for the Series 2012A Bonds and 1% for the 2012B Bonds. The discount is treated as an interest item and provides the underwriter with all or a portion of its 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 lower your borrowing amount. Review of Existing Debt: We have reviewed all outstanding indebtedness for the City and find that there are no other refunding opportunities at this time, other than Presale Report July 17, 2012 City of Hopkins, Minnesota Page 3 Debt Issuance Services Presale Report July 17, 2012 City of Hopkins, Minnesota Page 4 the obligation proposed to be refunded. 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 "material 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: Because the Bonds are tax-exempt securities/tax credit securities, the Issuer must ensure compliance with certain Internal Revenue Service (IRS) rules throughout the life of the issue. These rules apply to all gross proceeds of the issue, including initial bond proceeds and investment earnings in construction, escrow, debt service, and any reserve funds. How issuers spend bond proceeds and how they track interest earnings on funds (arbitrage/yield restriction compliance) are common subjects of IRS inquiries. Your specific responsibilities will be detailed in the Arbitrage Certificate prepared by your Bond Attorney and provided at closing. You have not retained Ehlers to assist you with compliance with these rules. Presale Report July 17, 2012 City of Hopkins, Minnesota Page 4 a- _0 0 Proposed Debt Issuance Schedule Pre -Sale Review by Council: Distribute Official Statement: Conference with Rating Agency: City Council Meeting to Award Sale of the Bonds: Estimated Closing Date: Attachments Sources and Uses of Funds Proposed Debt Service Schedules Refunding Savings Analysis Resolution Authorizing Ehlers to Proceed With Bond Sale Ehlers Contacts: Debt Issuance Services July 17, 2012 Week of August 9, 2012 Week of August 13, 2012 August 21, 2012 September 13, 2012 Financial Advisors: Stacie Kvilvang (651)-697-8506 Shelly Eldridge (651)-697-8504 Bond Analyst: Kara Meverden (651) 697-8545 Bond Sale Coordinator: Alicia Aulwes (651) 697-8523 Financial Analyst: Brian Shannon (651) 697-8515 The Official Statement for this financing will be mailed to the City Council at their home address or e- mailed. Presale Report July 17, 2012 City of Hopkins, Minnesota Page 5 PROPOSED DEBT SERVICE SCHEDULES City of Hopkins, Minnesota $5,650,000 General Obligation Bonds, Series 2012 Issue Summary - Dated: October 1, 2012 Current Market Rates ("AA") as of 7/10/2012 + 35 by Table of Contents Report ISSUE SUMMARY Total Issue Sources And Uses I Debt Service Schedule '- EQUIPMENT CERTIFICATES Net Debt Service Schedule 3 Levy Schedule 4 EQUIPMENT CERTIFICATES ICE RESURFACER Net Debt Service Schedule 5 Levy Schedule 6 IMPROVEMENT PORTION Net Debt Service Schedule 7 Levy Schedule K WATER PORTION Net Debt Service Schedule 9 Levy Schedule 10 SEWER PORTION Net Debt Service Schedule I I Levy Schedule 12 STORM SEWER PORTION Net Debt Service Schedule 13 Levy Schedule 14 Ser 2012A Impry 1 Issue Summary 1 7/12/2012 1 4:36 PM EHLERS LEADERS IN PUBLIC f NANC[ City of Hopkins, Minnesota $5,650,000 General Obligation Bonds, Series 2012 Issue Summary - Dated: October 1, 2012 Current Market Rates ("AA") as of 7/10/2012 + 35 by Total Issue Sources And Uses Dated 10/01/2012 1 Delivered 1 0/0112 01 2 Equipment Certificates Storm Equipment Ice Improvement Water Sewer Sewer Issue Certificates Resurfacer Portion Portion Portion Portion Summary Sources Of Funds Par Amount of Bonds $825,000.00 $185,000.00 $3,355,000.00 $780,000.00 $175.000.00 $330.0011.00 55.650,000.00 Prepaid Special Assessments 629,961.83 629.961.83 Total Sources $825,000.00 $185,000.00 $3,984,961.83 $780,000.00 $175,000.00 $330,000.00 $6,279,961.83 Uses Of Funds Total Undemriter's Discount (1.000%) 8.250.00 1,850.00 33,550.00 7,800.00 1,750.00 3,300.00 56,500.00 Costs of Issuance 9,491.15 2,128.32 38,597.35 8,973.45 2,013.27 3,796.46 65.000.00 Deposit to Project Construction Fund 804,400.00 180,000.00 3,916,471.86 760,518.83 170,520.61 321,841.13 6,153,752.43 Rounding Amount 2,858.85 1,021.68 (3,657.38) 2,707.72 716.12 1,062.41 4,709.40 Total Uses $825,000.00 $185,000.00 $3,984,961.83 $780,000.00 $175,000.00 $330,000.00 _1§479,W.83 Ser 2012A Impry I Issue Summary 1 71122012 1 4:36 PM EHLERS LEARRS IN PUBLIC FINANCE Page 1 City of Hopkins, Minnesota $5,650,000 General Obligation Bonds, Series 2012 Issue Summary - Dated: October 1, 2012 Current Market Rates ("AX) as of 7/10/2012 + 35 by Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 10/01/2012 8.208 Years Average Coulon - - 2.7039408% 08/01/2013 - - 102,468.74 102,468.74 - 02/01/2014 340,000.00 0.950% 61,481.25 401,481.25 503,949.99 08/01/2014 - - 59,866.25 59,866.25 - 02/01/2015 385,000.00 1.050% 59,866.25 444,866.25 504,732.50 08/01/2015 - - 57,845.00 57,845.00 - 02/01/2016 390,000.00 1.150% 57,845.00 447,845.00 505,690.00 08/01/2016 - - 55,602.50 55,602.50 - 02/01/2017 395,000.00 1.350% 55,602.50 450,602.50 506,205.00 08/01/2017 - - 52,936.25 52,936.25 _ 02/01/2018 400,000.00 1.600% 52,936.25 452,936.25 505,872.50 08/01/2018 - - 49,736.25 49,736.25 - 02/01/2019 405,000.00 1.850% 49,736.25 454,736.25 504,472.50 08/01/2019 - - 45,990.00 45,990.00 - 02/01/2020 410,000.00 2.100% 45,990.00 455,990.00 501,980.00 08/01/2020 - - 41,685.00 41,685.00 - 02/01/2021 415,000.00 2.300% 41,685.00 456,685.00 498,370.00 08/01/2021 - - 36,912.50 36,912.50 - 02/01/2022 440,000.00 2.500% 36,912.50 476,912.50 513,825.00 08/01/2022 - 31,412.50 31.412.50 - 02/01/2023 320,000.00 2.700% 31,412.50 351,412.50 382,825.00 08/01/2023 - - 27,092.50 27,092.50 - 02/01/2024 330,000.00 2.850% 27,092.50 357,092.50 384,185.00 08/01/2024 - - 22,390.00 22,390.00 - 02/01/2025 340,000.00 3.000% 22,390.00 362,390.00 384,780.00 08/01/2025 - - 17,290.00 17,290.00 - 02/01/2026 350,000.00 3.100% 17,290.00 367,290.00 384,580.00 08/01/2026 - - 11,865.00 11,865.00 - 02/01/2027 360,000.00 3.200% 11,865.00 371,865.00 383,730.00 08/01/2027 - - 6,105.00 6,105.00 - 02/01/2028 370,000.00 3.300% 6,105.00 376,105.00 382,210.00 Total $5,650,000.00 - $1,197,407.49 $6,847,407.49 - Yield Statistics Bond Year Dollars $46,373.33 Average Life 8.208 Years Average Coulon 2.5821036% Net Interest Cost (NIC) 2.7039408% True Interest Cost (TIC) 2.6896611% Bond Yield for Arbitrage Purposes 2.5510175% All Inclusive Cost (AIC) 2.8516037% IRS Form 8038 Net Interest Cost 2.5821036% Weighted Average Maturity 8.208 Years, Ser 2012A Impry I Issue Summary 1 7/12/2012 1 4:36 PM FREERS I I AN W- IN PQu nt I NAr;,,I Page 2 City of Hopkins, Minnesota $825,000 - Purpose 1 Equipment Certificates Net Debt Service Schedule Ser 2012A Impry I Equipment Certificates 1 7/12/2012 1 4:36 PM EHLERS Lu,m ire iri •r:nki it i ir,IAN( i Page 3 Net New Fiscal Date Principal Coupon Interest Total P+I D/S Total 10/01/2012 - - - 08/01/2013 - - 11,527.08 11,527.08 11,527.08 02/01/2014 80,000.00 0.950% 6,916.25 86,916.25 86,916.25 98,443.33 08/01/2014 - - 6,536.25 6,536.25 6,536.25 - 02/01/2015 90,000.00 1.050% 6,536.25 96,536.25 96,536.25 103,072.50 08/01/2015 - - 6,063.75 6,063.75 6,063.75 - 02/01/2016 90,000.00 1.150% 6,063.75 96,063.75 96,063.75 102,127.50 08/01/2016 - - 5,546.25 5,546.25 5,546.25 - 02/01/2017 90,000.00 1.350% 5,546.25 95,546.25 95,546.25 101,092.50 08/01/2017 - -- — - - -- ___--------- 4,938.75 — 4,938.75 _ 4,938.75 --------------- - 02/01/2018 90,000.00 1.600% 4,938.75 94,938.75 94,938.75 99,877.50 08/01/2018 - - 4,218.75 4,218.75 4,218.75 - 02/01/2019 95,000.00 1.850% 4,218.75 99,218.75 99,218.75 103,437.50 08/01/2019 - - 3,340.00 3,340.00 3,340.00 - 02/01/2020 95,000.00 2.100% 3,340.00 98,340.00 98,340.00 101,680.00 08/01/2020 - - 2,342.50 2,342.50 2,342.50 - 02/01/2021 95,000.00 2.300% 2,342.50 97,342.50 97,342.50 99,685.00 08/01/2021 - - 1,250.00 1,250.00 1,250.00 - 02/01/2022 100,000.00 2.500% 1,250.00 101,250.00 101,250.00 102,500.00 Total $825,000.00 - $86,915.83 $911,915.83 $911,915.83 - Ser 2012A Impry I Equipment Certificates 1 7/12/2012 1 4:36 PM EHLERS Lu,m ire iri •r:nki it i ir,IAN( i Page 3 City of Hopkins, Minnesota $825,000 - Purpose 1 Equipment Certificates Levy Schedule Ser 2012A Impry I Equipment Certificates 1 7/12/2012 1 4:36 PM EHLERS LEADERS IN PUBLIC FINANCE Page 4 Net DS * Levy Date CUSIP Principal Coupon Interest Total P+I Net D/S 1.05% Amount 02/01/2013 - - - - - 02/01/2014 80,000.00 0.950% 18,443.33 98,443.33 98,443.33 103,365.50 103,365.50 02/01/2015 90,000.00 1.050% 13,072.50 103,072.50 103,072.50 108,226.13 108,226.13 02/01/2016 90,000.00 1.150% 12,127.50 102,127.50 102,127.50 107,233.88 107,233.88 02/01/2017 90,000.00 1.350% 11,092.50 101,092.50 101,092.50 106,147.13 106,147.13 02/01/2018 90,000.00 1.600% 9,877.50 99,877.50 99,877.50 104,871.38 104,871.38 02/01/2019 95,000.00 1.850% 8,437.50 103,437.50 103,437.50 108,609.38 108,609.38 02/01/2020 95,000.00 2.100% 6,680.00 101,680.00 101,680.00 106,764.00 106,764.00 02/01/2021 95,000.00 2.300% 4,685.00 99,685.00 99,685.00 104,669.25 104,669.25 02/01/2022 100,000.00 2.500% 2,500.00 102,500.00 102,500.00 107,625.00 107,625.00 Total - $825,000.00 - $86,915.83 $911,915.83 $911,915.83 $957,511.62 $957,511.62 Ser 2012A Impry I Equipment Certificates 1 7/12/2012 1 4:36 PM EHLERS LEADERS IN PUBLIC FINANCE Page 4 City of Hopkins, Minnesota $185,000 - Purpose 2 Equipment Certificates Ice Resurfacer Net Debt Service Schedule Net New Fiscal Date Principal Coupon Interest Total P+l D/S Total 10/01/2012 08/01/2013 02/01/2014 08/01/2014 02/01/2015 08/01/2015 02/01/2016 08/01/2016 02/01/2017 08/01/2017 02/01/2018 08/01/2018 02/01/2019 08/01/2019 02/01/2020 08/01/2020 02/01/2021 08/01/2021 02/01/2022 2,579.17 20,000.00 0.950% 1,547.50 - - 1,452.50 20,000.00 1.050% 1,452.50 - - 1,347.50 20,000.00 1.150% 1,347.50 - - 1,232.50 20,000.00 1.350% 1232.50 - - 1,097.50 20,000.00 1.600% 1,097.50 - - 937.50 2,579.17 2,579.17 937.50 21,547.50 21,547.50 24,126.67 1,452.50 1,452.50 - 21,452.50 21,452.50 22,905,00 1,347.50 1,347.50 - 21,347.50 21,347.50 22,695.00 1,232.50 1232.50 - 21,232.50 21,232.50 22,465.00 1,097.50 1,097.50 - 21,097.50 21,097.50 22,195.00 937.50 937.50 - 20,000.00 1.850% 937.50 20,937.50 20,937.50 - - 752.50 752.50 752.50 20,000.00 2.100% 752.50 20,752.50 20,752.50 - - _ 542.50 542.50 542.50 20,000.00 2.300% 542.50 20,542.50 20,542.50 - - 312.50 312.50 312.50 25,000.00 2.500% 312.50 25,312.50 25,312.50 21,875.00 21,505.00 21,085.00 25,625.00 Total $185,000.00 - $19,476.67 $204,476.67 $204,476.67 - Ser 2012A Impry I Equipment Certificates Ic 1 7/12/2012 1 4:36 PM EHLERS LEADERS IN PUBLIC FINANCE Page 5 City of Hopkins, Minnesota $185,000 - Purpose 2 Equipment Certificates Ice Resurfacer Levy Schedule Ser 2012A Impry I Equipment Certificates Ic 1 7/12/2012 1 4:36 PM EHLERS LEADERS IN PUBLIC FINANCE Page 6 Net DS * Levy Date CUSIP Principal Coupon Interest Total P+I Net D/S 1.05% Revenue Amount 02/01/2013 - - - - - - 02/01/2014 20,000.00 0.950% 4,126.67 24,126.67 24,126.67 25,333.00 (25,333.00) 0.00 02/01/2015 20,000.00 1.050% 2,905.00 22,905.00 22,905.00 24,050.25 (24,050.25) - 02/01/2016 20,000.00 1.150% 2,695.00 22,695.00 22,695.00 23,829.75 (23,829.75) 02/01/2017 20,000.00 1.350% 2,465.00 22,465.00 22,465.00 23,588.25 (23,588.25) 02/01/2018 20,000.00 1.600% 2,195.00 22,195.00 22,195.00 23,304.75 (23,304.7.5) 02/01/2019 20,000.00 1.850% 1,875.00 21,875.00 21,875.00 22,968.75 (22,968.75) 02/01/2020 20,000.00 2.100% 1,505.00 21,505.00 21,505.00 22,580.25 (22,580.25) 02/01/2021 20,000.00 2.300% 1,085.00 21,085.00 21,085.00 22,139.25 (22,139.25) 02/01/2022 25,000.00 2.500% 625.00 25,625.00 25,625.00 26,906.25 (26,906.25) Total - $185,000.00 - $19,476.67 $204,476.67 $204,476.67 $214,700.50 (214,700.50) Ser 2012A Impry I Equipment Certificates Ic 1 7/12/2012 1 4:36 PM EHLERS LEADERS IN PUBLIC FINANCE Page 6 City of Hopkins, Minnesota $3,355,000 - Purpose 3 Improvement Portion Net Debt Service Schedule Ser 2012A Impry I Improvement Portion 1 7/12.2012 1 4:36 PM EHLERS LLAOLRS IN PUBLIC FINANCE Page 7 Fiscal Date Principal Coupon Interest Total P+1 Net New D/S Total 10/01/2012 - - - 08/01/2013 - - 63,808.33 63,808.33 63,808.33 , 02/01/2014 175,000.00 0.950% 38,285.00 213,285.00 213,285.00 277,093.33 08/01/2014 - - 37,453.75 37,453.75 37,453.75 - 02/01/2015 200,000.00 1.050% 37,453.75 237,453.75 237,453.75 274,907.50 08/01/2015 - - 36,403.75 36,403.75 36,403.75 - 02/01/2016 205,000.00 1.150% 36,403.75 241,403.75 241,403.75 277,807.50 08/01/2016 - - 35,225.00 35,225.00 35,225.00 - 02/01/2017 205,000.00 1.350% 35,225.00 240,225.00 240,225.00 275,450.00 08/01/2017 - - 33,841.25 33,841.25 33,841.25 02/01/2018 210,000.00 1.600% 33,841.25 243,841.25 243,841.25 277,682.50 08/01/2018 - - 32,161.25 32,161.25 32,161.25 - 02/01/2019 210,000.00 1.850% 32,161.25 242,161.25 242,161.25 274,322.50 08/01/2019 - - 30,218.75 30,218.75 30,218.75 - 02/01/2020 215,000.00 2.100% 30,218.75 245,218.75 245,218.75 275,437.50 08/01/2020 - - 27,961.25 27,961.25 27,961.25 02/01/2021 220,000.00 2.300% 27,961.25 247,961.25 247,961.25 275,922.50 08/01/2021 - - 25,431.25 25,431.25 25,431.25 - 02/01/2022 225,000.00 2.500% 25,431.25 250,431.25 250,431.25 275,862.50 08/01/2022 - - 22,618.75 22,618.75 22,618.75 - 02/01/2023 230,000.00 2.700% 22,618.75 252,618.75 252,618.75 275,237.50 08/01/2023 - - 19,513.75 19,513.75 19,513.75 - 02/01/2024 235,000.00 2.850% 19,513.75 254,513.75 254,513.75 274,027.50 08/01/2024 - - 16,165.00 16,165.00 16,165.00 - 02/01/2025 245,000.00 3.000% 16,165.00 261,165.00 261,165.00 277,330.00 — 08/01/2025 - - 12,490.00 12,490.00 12,490.00 02/01/2026 250,000.00 3.100% 12,490.00 262,490.00 262,490.00 274,980.00 08/01/2026 - - 8,615.00 8,615.00 8,615.00 - 02/01/2027 260,000.00 3.200% 8,615.00 268,615.00 268,615.00 277,230.00 08/01/2027 — - - ---- 4,455.00 4,455.00 — 4,455.00 ---- 02/01/2028 270,000.00 3.300% 4,455.00 274,455.00 274,455.00 278,910.00 Total $3,355,000.00 - $787,200.83 $4,142,200.83 $4,1429200.83 - Ser 2012A Impry I Improvement Portion 1 7/12.2012 1 4:36 PM EHLERS LLAOLRS IN PUBLIC FINANCE Page 7 City of Hopkins, Minnesota $3,355,000 - Purpose 3 Improvement Portion Levy Schedule Ser 2012A Impry I Improvement Portion 1 7/122012 1 4:36 PM E H L E_RS LEAMRS IN PUBLIC I INANCE Page 8 Net DS Special Date CUSIP Principal Coupon Interest Total P+I Net D/S 1.05% Asmnt Levy Amount 02/01/2013 - - - - - - 02/01/2014 175,000.00 0.950% 102,093.33 277,093.33 277,093.33 290,948.00 (124,211.30) 166,736.70 02/01/2015 200,000.00 1.050% 74,907.50 274,907.50 274,907.50 288,652.88 (124,211.30) 164,441.58 02/01/2016 205,000.00 1.150% 72,807.50 277,807.50 277,807.50 291,697.88 (124,211.31) 167,486.57 02/01/2017 205,000.00 1.350% 70,450.00 275,450.00 275,450.00 289,222.50 (124,211.30) 165,011.20 02/01/2018 210,000.00 1.600% 67,682.50 277,682.50 277,682.50 291,566.63 (124,211.31) 167,355.32 02/01/2019 210,000.00 1.850% 64,322.50 274,322.50 274,322.50 288,038.63 (124,211.31) 163,827.32 02/01/2020 215,000.00 2.100% 60,437.50 275,437.50 275,437.50 289,209.38 (124,211.30) 164,998.08 02/01/2021 220,000.00 2.300% 55,922.50 275,922.50 275,922.50 289,718.63 (124,211.29) 165,507.34 02/01/2022 225,000.00 _ 2.500% 50,862.50 275,862.50 275,862.50 289,655.63 (124,211.30) 165,444.33 02/01/2023 230,000.00 2.700% 45,237.50 275,237.50 275,237.50 288,999.38 (124,211.29) 164,788.09 02/01/2024 235,000.00 2.850% 39,027.50 274,027.50 274,027.50 287,728.88 (124,211.30) 163,517.58 02/01/2025 245,000.00 3.000% 32,330.00 277,330.00 277,330.00 291,196.50 (124,211.31) 166,985.19 02/01/2026 250,000.00 3.100% 24,980.00 274,980.00 274,980.00 288,729.00 (124,211.30) 164,517.70 02/01/2027 260,000.00 3.2001/6 17,230.00 277,230.00 277,230.00 291,091.50 (124,211.31) 166,880.19 02/01/2028 270,000.00 3.300% 8,910.00 278,910.00 278,910.00 291855.50 (124,211.30) 168.644.20 Total $3,355,000.00 - $787,200.83 $4,142,200.83 $4,142,200.83 $4,349,310.87 (1,863,169.53) $2,486,141.34 Ser 2012A Impry I Improvement Portion 1 7/122012 1 4:36 PM E H L E_RS LEAMRS IN PUBLIC I INANCE Page 8 City of Hopkins, Minnesota $780,000 - Purpose 4 Water Portion Net Debt Service Schedule Total $780,000.00 - $182,640.83 $962,640.83 $962,640.83 - Ser 2012A Impry I Water Portion 1 7/12/2012 1 4:36 PM EHLERS LEADERS IN PUBt w FINANCE Page 9 Net New Fiscal Date Principal Coupon Interest Total P+I D/S Total 10/01/2012 - - - 08/01/2013 - - 14,839.58 14,839.58 14,839.58 02/01/2014 40,000.00 0.950% 8,903.75 48,903.75 48,903.75 63,743.33 08/01/2014 - - 8,713.75 8,713.75 8,713.75 - 02/01/2015 45,000.00 _ 1.050% 8,713.75 53,713.75 53,713.75 62,427.50 08/01/2015 - - 8,477.50 8,477.50 8,477.50 - 02/01/2016 45,000.00 1.150% 8,477.50 53,477.50 53,477.50 61,955.00 08/01/2016 - - 8,218.75 8,218.75 8,218.75 - 02/01/2017 50,000.00 1.350% 8,218.75 58,218.75 58,218.75 66,437.50 08/01/2017 - - 7,881.25 7,881.25 7,881.25 02/01/2018 50,000.00 1.600% 7,881.25 57,881.25 57,881.25 65,762.50 08/01/2018 - - 7,481.25 7,481.25 7,481.25 - 02/01/2019 50,000.00 1.850% 7,481.25 57,481.25 57,481.25 64,962.50 08/01/2019 - - 7,018.75 7,018.75 7,018.75 - 02/01/2020 50,000.00 2.100% 7,018.75 57,018.75 57,018.75 64,037.50 08/01/2020 - - 6,493.75 6,493.75 6,493.75 - 02/01/2021 50,000.00 2.300% 6,493.75 56,493.75 56,493.75 62,987.50 08/01/2021 - - 5,918.75 5,918.75 5,918.75 - 02/01/2022 55,000.00 2.500% 5,918.75 60,918.75 60,918.75 66,837.50 08/01/2022 - 5,231.25 5,231.25 5,231.25 - 02/01/2023 55,000.00 2.700% 5,231.25 60,231.25 60,231.25 65,462.50 08/01/2023 - - 4,488.75 4,488.75 4,488.75 - 02/01/2024 55,000.00 2.850% 4,488.75 59,488.75 59,488.75 63,977.50 08/01/2024 - - 3,705.00 3,705.00 3,705.00 - 02/01/2025 55 000.00 3.000% 3,705.00 58,705.00 58,705.00 62,410.00 08/01/2025 - - 2,880.00 2,880.00 2,880.00 - 02/01/2026 60,000.00 3.100% 2,880.00 62,880.00 62,880.00 65,760.00 08/01/2026 - - 1,950.00 1,950.00 1,950.00 - 02/01/2027 60,000.00 3.200% 1,950.00 61,950.00 61,950.00 63,900.00 08/01/2027 - 990.00 990.00 990.00 - 02/01/2028 60,000.00 3.300% 990.00 60,990.00 60,990.00 61,980.00 Total $780,000.00 - $182,640.83 $962,640.83 $962,640.83 - Ser 2012A Impry I Water Portion 1 7/12/2012 1 4:36 PM EHLERS LEADERS IN PUBt w FINANCE Page 9 City of Hopkins, Minnesota $780,000 - Purpose 4 Water Portion Levy Schedule Ser 2012A Impry I Water Portion 1 7/12/2012 1 4:36 PM EHLERS LEADERS IN PUBLIC FINANCE Page 10 Levy Date CUSIP Principal Coupon Interest Total P+I Net D/S Revenue Amount 02/01/2013 - - - - - 02/01/2014 40,000.00 0.950% 23,743.33 63,743.33 63,743.33 (63,743.33) (0.00) 02/01/2015 45,000.00 1.050% 17,427.50 62,427.50 62,427.50 (62,427.50) 02/01/2016 45,000.00 1.150% 16,955.00 61,955.00 61,955.00 (61,955.00) 02/01/2017 50,000.00 1.350% 16,437.50 66,437.50 66,437.50 X6,437.50) 02/01/2018 50,000.00 1.600% 15,762.50 65,762.50 65,762.50 (65,762.50) 02/01/2019 50,000.00 1.850% 14,962.50 64,962.50 64,962.50 (64,962.50) 02/01/2020 50,000.00 2.100% 14,037.50 64,037.50 64,037.50 (64,037.50) 02/01/2021 50,000.00 2.300% 12,987.50 62,987.50 62,987.50 (62,987.50) 02/01/2022 55,000.00 2.500% 11,837.50 66,837.50 66,837.50 (66,837.50) 02/01/2023 55,000.00 2.700% 10,462.50 65,462.50 65,462.50 (65,462.50) 02/01/2024 55,000.00 2.850% 8,977.50 63,977.50 63,977.50 (63,977.50) 02/01/2025 55,000.00 3.000% 7,410.00 62,410.00 62,410.00 (62,410.00) 02/01/2026 60,000.00 3.100% 5,760.00 65,760.00 65,760.00 (65,760.00) 02/01/2027 60,000.00 3.200% 3,900.00 63,900.00 63,900.00 (63,900.00) 02/01/2028 60,000.00 3.300% 1,980.00 61,980.00 61,980.00 (61,980.00) Total - $780,000.00 - $182,640.83 $962,640.83 $962,640.83 (962,640.83) - Ser 2012A Impry I Water Portion 1 7/12/2012 1 4:36 PM EHLERS LEADERS IN PUBLIC FINANCE Page 10 City of Hopkins, Minnesota $175,000 - Purpose 5 Sewer Portion Net Debt Service Schedule Total $175,000.00 - $43,010.00 $218,010.00 $218,010.00 Ser 2012A Impry I Sewer Portion 1 7/12/2012 1 4.36 PM EHLERS LLAOLRS IN ;'UR11G FINANCE Page 11 Net New Fiscal Date Principal Coupon Interest Total P+I D/S Total 10/01/2012 08/01/2013 - - 3,393.75 3,393.75 3,393.75 02/01/2014 10,000.00 0.950% 2,036.25 12,036.25 12,036.25 15,430.00 08/01/2014 - - 1,988.75 1,988.75 1,988.75 - 02/01/2015 10,000.00 1.050% 1,988.75 11,988.75 11,988.75 13,977.50 08/01/2015 - - 1,936.25 1,936.25 1,936.25 - 02/01/2016 10,000.00 1.150% 1,936.25 11,936.25 11,936.25 13,872.50 08/01/2016 - - 1,878.75 1,878.75 1,878.75 - 02/01/2017 10,000.00 1.350% 1,878.75 11,878.75 11,878.75 13,757.50 08/01/2017 1,811.25 1,811.25 1,811.25 - 02/01/2018 10,000.00 1.600% 1,811.25 11,811.25 11,811.25 13,622.50 08/01/2018 - - 1,731.25 1,731.25 1,731.25 - 02/01/2019 10,000.00 1.850% 1,731.25 11,731.25 11,731.25 13,462.50 08/01/2019 - - 1,638.75 1,638.75 1,638.75 - 02/01/2020 10,000.00 2.100% 1,638.75 11,638.75 11,638.75 13,277.50 08/01/2020 - - 1,533.75 1,533.75 1,533.75 - 02/01/2021 10,000.00 2.300% 1,533.75 11,533.75 11,533.75 13,067.50 08/01/2021 - - 1,418.75 1,418.75 1,418.75 - 02/01/2022 10,000.00 2.500% 1,418.75 11,418.75 11,418.75 12,837.50 08/01/2022 - - 1,293.75 1,293.75 1,293.75 02/01/2023 10,000.00 2.700% 1,293.75 11,293.75 11,293.75 12,587.50 08/01/2023 - - 1,158.75 1,158.75 1,158.75 - 02/01/2024 15,000.00 2.850% 1,158.75 16,158.75 16,158.75 17,317.50 08/01/2024 - - 945.00 945.00 945.00 - 02/01/2025 15,000.00 3.000% 945.00 15,945.00 15,945.00 16,890.00 08/01/2025 - - 720.00 720.00 720.00 - 02/01/2026 15,000.00 3.100% 720.00 15,720.00 15,720.00 16,440.00 08/01/2026 - - 487.50 487.50 487.50 - 02/01/2027 15,000.00 3.200% 487.50 15,487.50 15,487.50 15,975.00 08/01/2027 - - 247.50 247.50 247.50 - 02/01/2028 15,000.00 3.300% 247.50 15,247.50 15,247.50 15,495.00 Total $175,000.00 - $43,010.00 $218,010.00 $218,010.00 Ser 2012A Impry I Sewer Portion 1 7/12/2012 1 4.36 PM EHLERS LLAOLRS IN ;'UR11G FINANCE Page 11 City of Hopkins, Minnesota $175,000 - Purpose 5 Sewer Portion Levy Schedule Ser 2012A Impry I Sewer Portion 1 7/12/2012 1 4:36 PM EHLERS LEADERS IN PUBLIC FINANCE Page 12 Levy Date CUSIP Principal Coupon Interest Total P+I Net D/S Revenue Amount 02/01/2013 - - - - - 02/01/2014 10,000.00 0.950% 5,430.00 15,430.00 15,430.00 (15,430.00) 02/01/2015 10,000.00 1.050% 3,977.50 13,977.50 13,977.50 (13,977.50) 02/01/2016 10,000.00 1.150% 3,872.50 13,872.50 13,872.50 (13,872.50) 02/01/2017 10,000.00 1.350% 3,757.50 13,757.50 13,757.50 (13,757.50)_ 02/01/2018 10,000.00 1.600% 3,622.50 13,622.50 13,622.50 (13,622.50) 02/01/2019 10,000.00 1.850% 3,462.50 13,462.50 13,462.50 (13,462.50) 02/01/2020 10,000.00 2.100% 3,277.50 13,277.50 13,277.50 (13,277.50) 02/01/2021 10,000.00 2.300% 3,067.50 13,067.50 13,067.50 (13,067.50) 02/01/2022 10,000.00 2.500% 2,837.50 12,837.50 12,837.50 (12,837.50) - 02/01/2023 10,000.00 2.700% 2,587.50 12,587.50 12,587.50 (12,587.50) - 02/01/2024 15,000.00 2.850% 2,317.50 17,317.50 17,317.50 (17,317.50) - 02/01/2025 15,000.00 3.000% 1,890.00 16,890.00 16,890.00 (16,890.00) - 02/01/2026 15,000.00 3.100% 1,440.00 16,440.00 16,440.00 (16,440.00) - 02/01/2027 15,000.00 3.200% 975.00 15,975.00 15,975.00 (15,975.00) - 02/01/2028 15,000.00 3.300% 495.00 15,495.00 15,495.00 (15,495.00) - Total - $175,000.00 - $43,010.00 $218,010.00 $218,010.00 (218,010.00) - Ser 2012A Impry I Sewer Portion 1 7/12/2012 1 4:36 PM EHLERS LEADERS IN PUBLIC FINANCE Page 12 City of Hopkins, Minnesota $330,000 - Purpose 6 Storm Sewer Portion Net Debt Service Schedule Total $330,000.00 - $78,163.33 $408,163.33 $408,163.33 - Ser 2012A Impry I Storm Sewer Portion 1 7/12/2012 1 4:36 PM EHLERS LLADERS IN PUBLIC FINANCE Page 13 Net New Fiscal Date Principal Coupon Interest Total P+I D/S Total 10/01/2012 - - - 08/01/2013 - - 6,320.83 6,320.83 6,320.83 02/01/2014 15,000.00 0.950% 3,792.50 18,792.50 18,792.50 25,113.33 08/01/2014 - - 3,721.25 3,721.25 3,721.25 - 02/01/2015 20,000.00 1.050% 3,721.25 23,721.25 23,721.25 27,442.50 08/01/2015 - - 3,616.25 3,616.25 3,616.25 - 02/01/2016 20,000.00 1.150% 3,616.25 23,616.25 23,616.25 27,232.50 08/01/2016 - - 3,501.25 3,501.25 3,501.25 - 02/01/2017 20,000.00 1.350% 3,501.25 23,501.25 23,501.25 27,002.50 08/01/2017 3,366.25 3,366.25 3,366.25 - 02/01/2018 20,000.00 1.600% 3,366.25 23,366.25 23,366.25 26,732.50 08/01/2018 - - 3,206.25 3,206.25 3,206.25 - 02/01/2019 20,000.00 1.850% 3,206.25 23,206.25 23,206.25 26,412.50 08/01/2019 - - 3,021.25 3,021.25 3,021.25 - 02/01/2020 — 20,000.00 2.100% 3,021.25 23,021.25 23,021.25 262_0.42.50 08/01/2020 - 2,811.25 2,811.25 2,811.25 - 02/01/2021 20,000.00 2.300% 2,811.25 22,811.25 22,811.25 25,622.50 08/01/2021 - - 2,581.25 2,581.25 2,581.25 02/01/2022 25,000.00 2.500% 2,581.25 27,581.25 27,581.25 30,162.50 08/01/2022 - _ - 2,268.75 2,268.75 2,268.75 - 02/01/2023 25,000.00 2.700% 2,268.75 27,268.75 27,268.75 29,537.50 08/01/2023 - - 1,931.25 1,931.25 1,931.25 - 02/01/2024 25,000.00 2.850% 1,931.25 26,931.25 26,931.25 28,862.50 08/01/2024 - - 1,575.00 1,575.00 1,575.00 - 02/01/2025 25,000.00 3.000% 1,575.00 26,575.00 26,575.00 28,150.00 08/01/2025 - - 1,200.00 1,200.00 1,200.00 - 02/01/2026 25,000.00 3.100% 1,200.00 26,200.00 26,200.00 27,400.00 08/01/2026 - - 812.50 .812.50 812.50 - 02/01/2027 25,000.00 3.200% 812.50 25,812.50 25,812.50 26,625.00 08/01/2027 - 412.50 412.50 412.50 - 02/01/2028 25,000.00 3.300% 412.50 25,412.50 25,412.50 25,825.00 Total $330,000.00 - $78,163.33 $408,163.33 $408,163.33 - Ser 2012A Impry I Storm Sewer Portion 1 7/12/2012 1 4:36 PM EHLERS LLADERS IN PUBLIC FINANCE Page 13 City of Hopkins, Minnesota $330,000 - Purpose 6 Storm Sewer Portion Levy Schedule Total - $330,000.00 - x78,163.33 $408,163.33 $408,163.33 (408,163.33) - Ser 2012A Impry I Storm Sewer Portion 1 7/12/2012 1 4:36 PM EHLERS Ll AM RS IN TUR! 11= I INAN(:I Page 14 Levy Date CUSIP Principal Coupon Interest Total P+I Net D/S Revenue Amount 02/01/2013 - - - - 02/01/2014 15,000.00 0.950% 10,1'13.33 25,113.33 25,113.33 (25,113.33) 02/01/2015 20,000.00 1.050% 7,442.50 27,442.50 27,442.50 (27,442.50) 02/01/2016 20,000.00 1.150% 7,232.50 27,232.50 27,232.50 (27,232.50) 02/01/2017 20,000.00 1.350% 7,002.50 27,002.50 27,002.50 (27,002.50) 02/01/2018 20,000.00 1.600% 6,732.50 26,732.50 26,732.50 (26,732.50) 02/01/2019 20,000.00 1.850% 6,412.50 26,412.50 26,412.50 (26,412.50) 02/01/2020 20,000.00 2.100% 6,042.50 26,042.50 26,042.50 (26,042.50) 02/01/2021 20,000.00 2.300% 5,622.50 25,622.50 25,622.50 (25,622.50) 02/01/2022 25,000.00 2.500% 5,162.50 30,162.50 30,162.50 (30,162.50) 02/01/2023 25,000.00 2.700% 4,537.50 29,537.50 29,537.50 (29,537.50) 02/01/2024 25,000.00 2.850% 3,862.50 28,862.50 28,862.50 (28,862.50) 02/01/2025 25,000.00 3.000% 3,150.00 28,150.00 28,150.00 (28,150.00) - 02/01/2026 25,000.00 3.100% 2,400.00 27,400.00 27,400.00 (27,400.00) - 02/01/2027 25,000.00 3.200% 1,625.00 26,625.00 26,625.00 (26,625.00) - 02/01/2028 25,000.00 3.300% 825.00 25,825.00 25,825.00 (25,825.00) Total - $330,000.00 - x78,163.33 $408,163.33 $408,163.33 (408,163.33) - Ser 2012A Impry I Storm Sewer Portion 1 7/12/2012 1 4:36 PM EHLERS Ll AM RS IN TUR! 11= I INAN(:I Page 14 REFUNDING SAVINGS ANALYSIS City of Hopkins, MN $1,985,000 G.O. CIP Bonds, Dated September 15, 2012 Proposed Net Cash Refunding of HRA Public Project Lease Rev Bonds, Series 2003A Assuming "AX Rated, B.Q. Market Rates +15 Basis Points Sources & Uses Dated 09/15/2012 1 Delivered 09/15/2012 Sources Of Funds Par Amount of Bonds $1,985,000.00 Transfers from Prior Issue DSR Funds 238,955.00 Total Sources Uses Of Funds Deposit to Net Cash Escrow Fund Costs of Issuance Total Underwriter's Discount (1.250%) Rounding Amount Total Uses 12 ntcsh Ser 03A $3.05M I SINGLE PURPOSE 1 6/12/2012 1 4:01 PM FREERS $2,223,955.00 2,160,353.05 36,000.00 24,812.50 2,789.45 $2,223,955.00 City of Hopkins, MN $1,985,000 G.O. CIP Bonds, Dated September 15, 2012 Proposed Net Cash Refunding of HRA Public Project Lease Rev Bonds, Series 2003A Assuming "AA" Rated, B.Q. Market Rates +15 Basis Points Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 09/15/2012 - - - - - 02/01/2013 150,000.00 0.600% 10,450.28 160,450.28 160,450.28 08/01/2013 - - 13,381.25 13,381.25 - 02/01/2014 175,000.00 0.650% 13,381.25 188,381.25 201,762.50 08/01/2014 - - 12,812.50 12,812.50 - 02/01/2015 170,000.00 0.750% 12,812.50 182,812.50 195,625.00 08/01/2015 - - 12,175.00 12,175.00 - 02/01/2016 180,000.00 0.850% 12,175.00 192,175.00 204,350.00 08/01/2016 - - 11,410.00 11,410.00 - 02/01/2017 180,000.00 1.050% 11,410.00 191,410.00 202,820.00 08/01/2017 - - 10,465.00 10,465.00 - 02/01 /2018 180,000.00 1.300% 10,465.00 190,465.00 200,930.00 08/01/2018 - - 9,295.00 9,295.00 - 02/01/2019 180,000.00 1.550% 9,295.00 189,295.00 198,590.00 08/01/2019 - - 7,900.00 7,900.00 - 02/01/2020 190,000.00 1.800% 7,900.00 197,900.00 205,800.00 08/01/2020 - - 6,190.00 6,190.00 - 02/01 /2021 190,000.00 2.000% 6,190.00 196,190.00 202,380.00 08/01/2021 - - 4,290.00 4,290.00 - 02/01/2022 195,000.00 2.150% 4,290.00 199,290.00 203,580.00 08/01/2022 - - 2,193.75 2,193.75 - 02/01/2023 195,000.00 2.250% 2,193.75 197,193.75 199,387.50 Total $1,985,000.00 - $190,675.28 $2,175,675.28 - Yield Statistics Bond Year Dollars $11,059.89 Average Life 5.572 Years Average Coupon 1.7240253% Net Interest Cost (NIC) 1.9483720% True Interest Cost (TIC) 1.9539053% Bond Yield for Arbitrage Purposes 1.7135336% All Inclusive Cost (AIC) 2.3105850% IRS Form 8038 Net Interest Cost 1.7240253% Weighted Average Maturity 5.572 Years 12 nt csh Ser 03A $3.05M I SINGLE PURPOSE 1 6/12/2012 1 4:01 PM i FREERS City of Hopkins, MN $1,985,000 G.O. CIP Bonds, Dated September 15, 2012 Proposed Net Cash Refunding of HRA Public Project Lease Rev Bonds, Series 2003A Assuming "AX Rated, B.Q. Market Rates +15 Basis Points Debt Service Comparison Date Total P+I Net New D/S Old Net D/S Savings 02/01/2013 160,450.28 216,120.44 157,660.83 02/01/2022 203,580.00 178,865.85 21,205.02 02/01/2014 201,762.50 199,387.50 201,762.50 15,957.94 218,111.70 16,349.20 02/01/2015 195,625.00 Total $2,175,675.28 195,625.00 $2,323,876.95 213,217.94 17,592.94 02/01/2016 204,350.00 204,350.00 218,142.94 13,792.94 02/01/2017 202,820.00 202,820.00 Gross PV Debt Service Savings ..................... 217,562.94 14,742.94 02/01/2018 200,930.00 200,930.00 (221,688.80) 216,562.94 15,632.94 02/01/2019 198,590.00 Contingency or Rounding Amount .................... 198,590.00 215,210.44 16,620.44 02/01/2020 205,800.00 $141,830.61 205,800.00 218,410.44 12,610.44 02/01/2021 202,380.00 202,380.00 216,120.44 13,740.44 02/01/2022 203,580.00 203,580.00 218,535.44 14,955.44 02/01/2023 199,387.50 199,387.50 215,345.44 15,957.94 02/01/2024 - - (22,209.56) (22,209.56) Total $2,175,675.28 $2,172,885.83 $2,323,876.95 $150,991.12 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings ..................... 360,729.96 Effects of changes in DSR investments ............. (221,688.80) Net PV Cashflow Savings ai 1.714%(Bond Yield)..... 139,041.16 Contingency or Rounding Amount .................... 2,789.45 Net Present Value Benefit $141,830.61 Net PV Benefit / $2,345,729.96 PV Refunded Debt Service 6.046% Net PV Benefit / $2,050,000 Refunded Principal... 6.919% Net PV Benefit/ $1,985,000 Refunding Principal.. 7.145% Refunding Bond Information Refunding Dated Date 9/15/2012 Refunding Delivery Date 9/15/2012 12 ntcsh Ser 03A $3.05M I SINGLE PURPOSE 1 6/12/2012 1 4:01 PM i FREERS City of Hopkins, MN $1,985,000 G.O. CIP Bonds, Dated September 15, 2012 Proposed Net Cash Refunding of HRA Public Project Lease Rev Bonds, Series 2003A Assuming "AX Rated, B.Q. Market Rates +15 Basis Points Escrow Fund Cashflow Date Principal Rate Interest +Transfers Receipts Disbursements Cash Balance 09/15/2012 - - - - 0.05 - 0.05 02/01/2013 158,842.00 0.100% 1,302.52 19,916.98 180,061.50 180,060.63 0.92 08/01/2013 31,888.00 0.150% 1,686.06 4,175.68 37,749.74 37,750.63 0.03 02/01/2014 1,730,668.00 0.190% 1,644.13 215,438.47 1,947,750.60 1,947,750.63 - Total $1,921,398.00 - $4,632.71 $239,531.13 $2,165,561.89 $2,165,561.89 - Investment Parameters Investment Model [PV, GIC, or Securities] Securities Default investment yield target Bond Yield Cost of Investments Purchased with Fund Transfers 238,955.00 Cash Deposit 0.05 Cost of Investments Purchased with Bond Proceeds 1,921,398.00 Total Cost of Investments $2,160,353.05 Target Cost of Investments at bond yield $1,884,254.25 Actual positive or (negative) arbitrage (37,143.80) Yield to Receipt 0.1793722% Yield for Arbitrage Purposes 1.7135336% State and Local Government Series (SLGS) rates for 6/12/2012 12 ntcsh Ser 03A $3.05M I SINGLE PURPOSE 1 6/12/2012 1 4:01 PM i FREERS City of Hopkins, MN $3,050,000 Public Project Lease Revenue Bonds, Series 2003A Prior Original Debt Service Date Principal Coupon Interest Total P+I Fiscal Total 02/01/2013 140,000.00 3.300% 40,060.63 180,060.63 180,060.63 08/01/2013 - - 37,750.63 37,750.63 - 02/01/2014 145,000.00 3.375% 37,750.63 182,750.63 220,501.26 08/01/2014 - - 35,303.75 35,303.75 - 02/01/2015 145,000.00 3.500% 35,303.75 180,303.75 215,607.50 08/01/2015 - - 32,766.25 32,766.25 - 02/01/2016 155,000.00 3.600% 32,766.25 187,766.25 220,532.50 08/01/2016 - - 29,976.25 29,976.25 - 02/01/2017 160,000.00 3.750% 29,976.25 189,976.25 219,952.50 08/01/2017 - - 26,976.25 26,976.25 - 02/01/2018 165,000.00 3.850% 26,976.25 191,976.25 218,952.50 08/01/2018 - - 23,800.00 23,800.00 - 02/01/2019 170,000.00 4.000% 23,800.00 193,800.00 217,600.00 08/01/2019 - - 20,400.00 20,400.00 - 02/01/2020 180,000.00 4.050% 20,400.00 200,400.00 220,800.00 08/01/2020 - - 16,755.00 16,755.00 - 02/01/2021 185,000.00 4.100% 16,755.00 201,755.00 218,510.00 08/01/2021 - - 12,962.50 12,962.50 - 02/01/2022 195,000.00 4.200% 12,962.50 207,962.50 220,925.00 08/01/2022 - - 8,867.50 8,867.50 - 02/01/2023 200,000.00 4.300% 8,867.50 208,867.50 217,735.00 08/01/2023 - - 4,567.50 4,567.50 - 02/01/2024 210,000.00 4.350% 4,567.50 214,567.50 219,135.00 Total $2,050,000.00 - $540,311.89 $2,590,311.89 - Yield Statistics Base date for Avg. Life & Avg. Coupon Calculation Average Life Average Coupon Weighted Average Maturity (Par Basis) Refunding Bond Information 9/15/2012 6.324 Years 4.1676440% 6.324 Years Refunding Dated Date 9/15/2012 Refunding Delivery Date 9/15/2012 Ser 03A $3.05M Pub Fac Le I SINGLE PURPOSE 1 6/12/2012 1 4:01 PM EHLERS City of Hopkins, MN $3,050,000 Public Project Lease Revenue Bonds, Series 2003A Debt Service To Maturity And To Call Yield Statistics Base date for Avg. Life & Avg. Coupon Calculation Average Life Average Coupon Weighted Average Maturity (Paz Basis) Refunding Bond Information 9/15/2012 6.324 Years 4.1676440% 6.324 Years Refunding Dated Date 9/15/2012 Refunding Delivery Date 9/15/2012 Ser 03A $3.05M Pub Fac Le I SINGLE PURPOSE 1 6/12/2012 1 4:01 PM 4& EHLERS Refunded Refunded Refunded Date Bonds Interest D/S To Call Principal Coupon Interest D/S 02/01/2013 140,000.00 40,060.63 180,060.63 140,000.00 3.300% 40,060.63 180,060.63 08/01/2013 - 37,750.63 37,750.63 - - 37,750.63 37,750.63 02/01/2014 1,910,000.00 37,750.63 1,947,750.63 145,000.00 3.375% 37,750.63 182,750.63 08/01/2014. - - - - - 35,303.75 35,303.75 02/01/2015 - - 145,000.00 3.500% 35,303.75 180,303.75 08/01/2015 - - - - 32,766.25 32,766.25 02/01/2016 - - 155,000.00 3.600% 32,766.25 187,766.25 08/01/2016 - - - - 29,976.25 29,976.25 02/01/2017 - - - 160,000.00 3.750% 29,976.25 189,976.25 08/01/2017 - - - - - 26,976.25 26,976.25 02/01/2018 - - 165,000.00 3.850% 26,976.25 191,976.25 08/01/2018 - - - - 23,800.00 23,800.00 02/01/2019 - 170,000.00 4.000% 23,800.00 193,800.00 08/01/2019 - - - 20,400.00 20,400.00 02/01/2020 - 180,000.00 4.050% 20,400.00 200,400.00 08/01/2020 - - - 16,755.00 16,755.00 02/01/2021 - - 185,000.00 4.100% 16,755.00 201,755.00 08/01/2021 - - - - 12,962.50 12,962.50 02/01/2022 - - 195,000.00 4.200% 12,962.50 207,962.50 08/01/2022 - - - - 8,867.50 8,867.50 02/01/2023 - - 200,000.00 4.300% 8,867.50 208,867.50 08/01/2023 - - - - 4,567.50 4,567.50 02/01/2024 - 210,000.00 4.350% 4,567.50 214,567.50 Total $2,050,000.00 $115,561.89 $2,165,561.89 $2,050,000.00 - $540,311.89 $2,590,311.89 Yield Statistics Base date for Avg. Life & Avg. Coupon Calculation Average Life Average Coupon Weighted Average Maturity (Paz Basis) Refunding Bond Information 9/15/2012 6.324 Years 4.1676440% 6.324 Years Refunding Dated Date 9/15/2012 Refunding Delivery Date 9/15/2012 Ser 03A $3.05M Pub Fac Le I SINGLE PURPOSE 1 6/12/2012 1 4:01 PM 4& EHLERS Impact on General Fund Rate Change Working Capital Begin Year Revenues from charges Transfer in General Fund Transfer In - Pavilion - Capital I -ease Transfer In - Pavilion - Hockey Loan Federal & State Grants Interest earnings Other revenues (sale of assets) Equipment Certificates (Bonds) Total Revenues Expenditures (excludes Depr.) (1) Fire Truck Financing Pymnts(2009-2018) Adj - Fire Quick Attach Pumper Capital Outlay - Equipment 2012 Equip Certificate Pymnts (I Oyr) Total Expenses Working Capital Ending Balance Cash balance EQUIPMENT REPLACEMENT FUND (602) 07/11/2012 47,555 28,938 35,160 38,313 41,773 2% 3% 5% 15% 8% 9% 9% 9% ACTUAL BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET BUDGET 2010 2011 2012 2013 2014 2015 2016 2017 1,161,011 921,831 890,189 1,284,861 914,971 670,680 506,253 30,160 292,867 302,012 317,113 364,679 393,854 429,301 467,938 510,052 20,000 20,000 20,000 15,609 3,143 3,143 3,143 3,143 3,142 6,720 6,662 9,021 12,967 9,268 6,826 5,181 420 13,760 42,343 199,462 25,000 30,000 30,000 30,000 30,000 804,400 336,490 374,160 1,353,138 421,399 4369264 4669126 5039119 5409473 24,743 23,995 18,250 18,798 19,361 19,942 20,541 21,157 53,891 53,874 54,217 54,217 54,217 54,217 54,217 54.217 245,000 497,036 327,933 641,000 718,275 512,500 462,500 811,400 429,007 - 94,477 93,895 93,055 92,135 575,670 405,802 958,467 791,289 680,555 630,554 979,212 596,515 921,831 890,189 1,284,861 914,971 670,680 506,253 30,160 (25,883) 919,273 902,064 1,296,736 926,846 682,55,5 518,127 42,034 (14,008) Cash Flow Analysis P.I.R. FUND (501) 07/12/2012 Working Capital Beginning Year Revenues: Special Assessment Revenues (1) Franchise Fees Refunds & Reimbursements Interest Transfers In Bond Proceeds (2) Total Revenues Expenditures: C.I.P. Projects C.I.P. Projects - Special Assm Transfers for SA Debt collected thru Assm Debt Service Transfers - 2002B Debt Service Transfers - 2007B Debt Service Transfers - 2010A - Impry Debt Service Transfers - 2010B - Rfdg Debt Service Transfers - 2012 debt ($1.289M) Debt Service Transfers - 2014 debt ($1.125M) Debt Service Transfers - 2016 debt ($1.7M) Total Expenditures Working Capital Year End (1) Includes current, delinquent and penalties (2) The 2014 and 2016 bonds have each been reduced by $500,000 to account for the franchise fee collections. Actual Projected Projected Projected Projected Projected Projected 2011 2012 2013 2014 2015 2016 2017 1,814,430 563,533 2,467,527 709,471 2,408,251 108,961 2,203,258 788,484 700,668 568,551 558,298 725,584 754,518 821,876 196,000 210,000 210,000 210,000 210,000 210,000 6,440 2,536 11,104 3,193 10,837 490 9,915 3,286,510 3,500,000 4,500,000 794,924 4,185,714 789,655 4,271,491 946,421 5,465,008 1,041,791 1,795,110 1,095,000 1,395,000 1,520,000 1,600,000 1,865,000 19566,000 900,000 800,000 700,000 1,200,000 1,060,000 1,064,000 71,900 71,900 71,900 71,900 71,900 71,900 71,900 120,592 156,600 156,600 156,600 156,600 156,600 156,600 58,219 58,219 124,211 124,211 124,211 124,211 124,211 93,000 93,000 93,000 135,000 2,045,821 2,281,719 2,547,711 2,572,711 3,245,711 3,370,711 3,210,711 563,533 2,467,527 709,471 2,408,251 108,961 2,203,258 34,338 Total Projects Scheduled (CIP & SA) 1,795,110 1,995,000 2,195,000 2,220,000 2,800,000 2,925,000 2,630,000