2013-025 Authorize the Sale of $3,770,000 G.O. Improvement Bonds, Series 2013AMarch 5, 2013 City Council Report 2013-025
City of Hopkins
AUTHORIZE THE SALE OF $3,770,000 G.O. IMPROVEMENT
BONDS, SERIES 2013A
Proposed Action
Staff recommends approval of the following motion: Adopt Resolution 2013-015 Providing for the Sale of
$3,770,000 G.O. Improvement Bonds, Series2013A.
Adoption of this motion will result in the bonds being offered for sale on April 2, 2013.
Overview
The City of Hopkins has the authority to issue GO bonds to pay for street improvements. The last two
bond issues sold were done in 2012 and were for street improvements, equipment needs and to refinance
the 2003 HRA Bonds. In 2013 the city will be doing a $4 million street improvement project which will be
financed by these bond proceeds and special assessments. After evaluation of the PIR Fund cash flow,
impact on the tax levy and future needs we are proposing a bond issue of $3.77 million. This will include
funds for the PIR, water, sewer and storm sewer components of the project.
We are proposing to issue the bonds for a 15 year .term with payments to come from a tax levy, special
assessments, and the water, sewer and storm sewer utility funds. The special assessments will be levied at
2% over the True Interest Cost or TIC. We received a AA rating from Standard & Poors on the 2012 bonds
and we will be asking for a new rating on these bonds.
Primary Issues
• Street Improvement funding needs
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. 2013-015
• Bond Sale Report
• Proposed Debt Service Schedules
Christine M. Harkess, CPA, CGFM
Finance Director
Financial Impact: $ 3,770,000 in bond proceeds Budgeted: Y/N Yes
Source: PIR and Enterprise Funds
Related Documents (CIP, ERP, etc.): Capital Improvement Plan Notes:
Debt Issuance Services
March 5, 2013
Pre -Sale Report for
$3,770,000 General Obligation Improvement
Bonds, Series 2013A
Hopkins, Minnesota
19 EHLERS
LEADERS IN PUBLIC FINANCE
Prepared and Presented by:
Stacie Kvilvang
And
Shelly Eldridge
Minnesota phone 651-697-8500
Offices also in Wisconsin and Illinois fax 651-697-8555
toll free 800-552-1171
www.ehlers-inc.com
3060 Centre Pointe Drive
Roseville, MN 55113 -1122
Executive Summary of Proposed Debt
Debt Issuance Services
Proposed Issue:
$3,770,000 GO Improvement Bonds, Series 2013A
Authority:
These Bonds are being issued pursuant to Minnesota Statues, Chapter
429 (street and assessment portion), Chapter 444 (utility debt), 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 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.
Purposes/Funding Sources:
The Bonds are being issued for a 15 -year period and are intended to
pay for the costs of the 2013 street and utility reconstruction projects.
It is the intent of the City to levy approximately $961,146.94 in
special assessments against benefitting property owners in 2013 for
collection in years 2014 through 2028, at 2% above the True Interest
Cost (TIC) of the Bonds. The City anticipates receiving
approximately $203,811.63 (21%) in prepayments on the special
assessments from the projects this year.
The issue size has been reduced the aforementioned prepayment
amounts. Remaining debt service will be paid from a tax levy and
utility revenues. 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.
Term/Call Feature
The Bonds are being issued for a 15 year term. Principal on the
Bonds will be due on February 1 in the years 2015 through 2029.
Interest is payable every 6 months beginning on February 1, 2014.
The Bonds maturing on February 1, 2021, and thereafter will be
subject to prepayment at the discretion of the City on February 1,
2020 or any date thereafter.
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.
Presale Report March 5, 2013
City of Hopkins, Minnesota Page 2
Debt Issuance Services
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.
Other Considerations:
Because yields for investors are very low at this time, a bank or
underwriter may choose to submit a bid for your competitive sale
with higher coupon rates than the yield on the bonds. Higher coupons
are valuable for institutional and retail investors who may either trade
bonds in the future or may want a higher yield if you as the issuer
choose not to call the bonds at the call date.
For example, the coupon rate may be 3% but the yield may only be
1.5%. To achieve the lower yield of 1.5%, the investor will pay you,
the issuer, a "premium" at the time of closing.
In other words, they will pay more than $5,000 for a $5,000 block of
bonds in exchange for more tax-exempt interest at a later date. The
amount of the premium varies, but can be as high as 10% of the bond
issue. This means for a $2,000,000 issue, you may end up with a bid
that offers $2,200,000 in proceeds.
The amount of the bond will be reduced if a premium bid is received.
The adjustment may slightly change the true interest cost of the
original bid, either up or down.
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 1.00%
of the principal amount of the issue for the 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. There
may be refunding opportunities for the 2007 and 2008 TIF revenue
bonds for Excelsior Crossing later this year as well as the City's
2007A GO PIR Bonds. We will continue to discuss these Bonds with
staff and will bring them forward for refunding as appropriate.
40 Presale Report March 5, 2013
City of Hopkins, Minnesota Page 3
Debt Issuance Services
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 retained Ehlers to assist
you with compliance with these rules.
Presale Report March 5, 2013
City of Hopkins, Minnesota Page 4
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
Resolution Authorizing Ehlers to Proceed With Bond Sale
Ehlers Contacts:
Debt Issuance Services
March 5, 2013
March 21, 2013
Week of March 25, 2013
April 2, 2013
April 25, 2013
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: Alicia Gage (651) 697-8551
The Official Statement for this financing will be mailed to the City Council at their home address or e-
mailed.
Presale Report March 5, 2013
City of Hopkins, Minnesota Page 5
City of Hopkins, Minnesota
$3,770,000 General Obligation Improvement Bonds, Series 2013A
Issue Summary
Assuming Current Revenue BQ "AX Market Rates plus 20bps
Total Issue Sources And Uses
Dated 04/25/20131 Delivered 04/25/2013
Storm
Improvement Water Sewer Sewer Issue
Portion Portion Portion Portion Summary
Sources Of Funds
Par Amount of Bonds
$1,980,000.00
$890,000.00
$505,000.00
$395,000.00
$3,770,000.00
Prepaid Assessments
203,811.63
203,811.63
Total Sources
$2,183,811.63
$890,000.00
$505,000.00
$395,000.00
$3,973,811.63
Uses Of Funds
Total Underwriter's Discount (1.000%)
19,800.00
8,900.00
5,050.00
3,950.00
37,700.00
Costs of Issuance
22,215.91
9,985.95
5,666.18
4,431.96
42,300.00
Deposit to Capitalized Interest (CIF) Fund
29,691.08
-
-
-
29,691.08
Deposit to Project Construction Fund
2,110,108.08
871,342.00
492,524.00
386,214.29
3,860,188.37
Rounding Amount
1,996.56
(227.95)
1,759.82
403.75
3,932.18
Total Uses $2,183,811.63 $890,000.00 $505,000.00 $395,000.00 $3,973,811.63
Series 2013 GO Imp Bonds I Issue Summary 1 2/20/2013 1 1:46 PM
40 EHLERS
LEADERS IN PUBLIC FINANCE
ig Current Revenue BQ "AX Market Rates plus 20bps
:rvice Schedule
it Dates
Date
istics
)ollars
tpon
�ost (NIC)
Cost (TIC)
.or Arbitrage Purposes
Cost (AIC)
) Imp Bonds I Issue Summary 1 2/20/2013 1 1:46 PM
EHLERS
EADERS IN PUBLIC FINANCE
4/25/201
2/01/201
$34,345.3:
9.110 Year.
2.25240180/
2.3621693%
2.35666610/
2.23238900i
2.49814230/
Storm
Water
Sewer
Sewer
a Principal
Coupon
Interest
Total P+I
CIF Net New D/S
105% of Total
Assessments
Revenue
Revenue
Revenue
Levy/(Surplus;
4 -
-
56,489.92
56,489.92
(29,691.08) 26,798.84
28,138.78
-
13,978.83
7,983.59
6,176.36
5 230,000.00
0.800%
73,682.50
303,682.50
- 303,682.50
318,866.63
69,793.07
75,983.25
41,913.38
34,306.13
96,870.81
6 230,000.00
1.000%
71,842.50
301,842.50
- 301,842.50
316,934.63
69,793.07
75,521.25
41,661.38
34,096.13
95,862.81
7 230,000.00
1.100%
69,542.50
299,542.50
- 299,542.50
314,519.63
69,793.07
74,943.75
41,346.38
33,833.63
94,602.81
8 230,000.00
1.250%
67,012.50
297,012.50
- 297,012.50
311,863.13
69,793.07
74,308.50
40,999.88
33,544.88
93,216.8(
9 235,000.00
1.400%
64,137.50
299,137.50
- 299,137.50
314,094.38
69,793.06
73,586.63
40,606.13
33,216.75
96,891.8:
0 235,000.00
1.650%
60,847.50
295,847.50
- 295,847.50
310,639.88
69,793.07
72,778.13
40,165.13
32,849.25
95,054.31
1 240,000.00
1.850%
56,970.00
296,970.00
- 296,970.00
311,818.50
69,793.06
71,825.25
44,895.38
32,416.13
92,888.65
2 250,000.00
2.050%
52,530.00
302,530.00
- 302,530.00
317,656.50
69,793.06
76,006.88
44,215.50
31,930.50
95,710.5'
3 250,000.00
2.250%
47,405.00
297,405.00
- 297,405.00
312,275.25
69,793.07
74,715.38
43,462.13
31,392.38
92,912.3(
4 255,000.00
2.350%
41,780.00
296,780.00
- 296,780.00
311,619.00
69,793.07
73,297.88
42,635.25
30,801.75
95,091.0:
5 260,000.00
2.450%
35,787.50
295,787.50
- 295,787.50
310,576.88
69,793.07
71,817.38
41,771.63
30,184.88
97,009.91
6 270,000.00
2.500%
29,417.50
299,417.50
- 299,417.50
314,388.38
69,793.07
75,523.88
40,871.25
34,791.75
93,408.4_
7 275,000.00
2.600%
22,667.50
297,667.50
- 297,667.50
312,550.88
69,793.07
73,817.63
39,952.50
34,004.25
94,983.4-
8 285,000.00
2.650%
15,517.50
300,517.50
- 300,517.50
315,543.38
69,793.07
72,043.13
44,247.00
33,185.25
96,274.9:
9 295,000.00
2.700%
7,965.00
302,965.00
- 302,965.00
318,113.25
69,793.07
75,484.50
43,134.00
32,350.50
97,351.1f
it $3,770,000.00
-
$773,594.92
$4,543,594.92
(29,691.08) $4,513,903.84
$4,739,599.03
$1,046,896.02
$1,125,632.20
$639,860.47
$499,080.49
$1,428,129.81
it Dates
Date
istics
)ollars
tpon
�ost (NIC)
Cost (TIC)
.or Arbitrage Purposes
Cost (AIC)
) Imp Bonds I Issue Summary 1 2/20/2013 1 1:46 PM
EHLERS
EADERS IN PUBLIC FINANCE
4/25/201
2/01/201
$34,345.3:
9.110 Year.
2.25240180/
2.3621693%
2.35666610/
2.23238900i
2.49814230/
City of Hopkins, Minnesota
$1,980,000 General Obligation Improvement Bonds, Series 2013A
Improvement Portion
Assuming Current Revenue BQ "AX Market Rates plus 20bps
Debt Service Schedule
Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Assessments Levy/(Surplus)
02/01/2014
-
-
29,691.08
29,691.08 (29,691.08)
-
-
-
02/01/2015
120,000.00
0.800%
38,727.50
158,727.50
158,727.50
166,663.88
69,793.07
96,870.81
02/01/2016
120,000.00
1.000%
37,767.50
157,767.50
157,767.50
165,655.88
69,793.07
95,862.81
02/01/2017
120,000.00
1.100%
36,567.50
156,567.50
156,567.50
164,395.88
69,793.07
94,602.81
02/01/2018
120,000.00
1.250%
35,247.50
155,247.50
155,247.50
163,009.88
69,793.07
93,216.81
02/01/2019
125,000.00
1.400%
33,747.50
158,747.50
158,747.50
166,684.88
69,793.06
96,891.82
02/01/2020
125,000.00
1.650%
31,997.50
156,997.50
156,997.50
164,847.38
69,793.07
95,054.31
02/01/2021
125,000.00
1.850%
29,935.00
154,935.00
154,935.00
162,681.75
69,793.06
92,888.69
02/01/2022
130,000.00
2.050%
27,622.50
157,622.50
157,622.50
165,503.63
69,793.06
95,710.57
02/01/2023
130,000.00
2.250%
24,957.50
154,957.50
154,957.50
162,705.38
69,793.07
92,912.31
02/01/2024
135,000.00
2.350%
22,032.50
157,032.50
157,032.50
164,884.13
69,793.07
95,091.06
02/01/2025
140,000.00
2.450%
18,860.00
158,860.00
158,860.00
166,803.00
69,793.07
97,009.93
02/01/2026
140,000.00
2.500%
15,430.00
155,430.00
155,430.00
163,201.50
69,793.07
93,408.43
02/01/2027
145,000.00
2.600%
11,930.00
156,930.00
156,930.00
164,776.50
69,793.07
94,983.43
02/01/2028
150,000.00
2.650%
8,160.00
158,160.00
158,160.00
166,068.00
69,793.07
96,274.93
02/01/2029
155,000.00
2.700%
4,185.00
159,185.00
159,185.00
167,144.25
69,793.07
97,351.18
Total $1,980,000.00 - $406,858.58 $2,386,858.58 (29,691.08) $2,357,167.50 $2,475,025.88 $1,046,896.02 $1,428,129.86
Significant Dates
Dated
First Coupon Date
Yield Statistics
Bond Year Dollars
Average Life
Average Coupon
Net Interest Cost (NIC)
True Interest Cost (TIC)
Bond Yield for Arbitrage Purposes
All Inclusive Cost (AIC)
Series 2013 GO Imp Bonds I Improvement Portion 1 2/20/2013 1 1:46 PM
EHLERS
LEADERS IN PUBLIC FINANCE
4/25/2013
2/01/2014
$18,058.00
9.120 Years
2.2530656%
2.3627123%
2.3572377%
2.2323890%
2.4985711%
City of Hopkins, Minnesota
$890,000 General Obligation Improvement Bonds, Series 2013A
Water Portion
Assuming Current Revenue BQ "AA" Market Rates plus 20bps
Debt Service Schedule
Significant Dates
Dated
First Coupon Date
4/25/2013
2/01/2014
Yield Statistics
Bond Year Dollars $8,087.33
Average Life 9.087 Years
Average Coupon 2.2508120%
Net Interest Cost (NIC)
2.3608606%
True Interest Cost (TIC)
2.3553048%
Bond Yield for Arbitrage Purposes
105% Water
Date
Principal
Coupon
Interest
Total P+I
Revenue
02/01/2014
-
-
13,313.17
13,313.17
13,978.83
02/01/2015
55,000.00
0.800%
17,365.00
72,365.00
75,983.25
02/01/2016
55,000.00
1.000%
16,925.00
71,925.00
75,521.25
02/01/2017
55,000.00
1.100%
16,375.00
71,375.00
74,943.75
02/01/2018
55,000.00
1.250%
15,770.00
70,770.00
74,308.50
02/01/2019
55,000.00
1.400%
15,082.50
70,082.50
73,586.63
02/01/2020
55,000.00
1.650%
14,312.50
69,312.50
72,778.13
02/01/2021
55,000.00
1.850%
13,405.00
68,405.00
71,825.25
02/01/2022
60,000.00
2.050%
12,387.50
72,387.50
76,006.88
02/01/2023
60,000.00
2.250%
11,157.50
71,157.50
74,715.38
02/01/2024
60,000.00
2.350%
9,807.50
69,807.50
73,297.88
02/01/2025
60,000.00
2.450%
8,397.50
68,397.50
71,817.38
02/01/2026
65,000.00
2.500%
6,927.50
71,927.50
75,523.88
02/01/2027
65,000.00
2.600%
5,302.50
70,302.50
73,817.63
02/01/2028
65,000.00
2.650%
3,612.50
68,612.50
72,043.13
02/01/2029
70,000.00
2.700%
1,890.00
71,890.00
75,484.50
Total
$890,000.00
-
$182,030.67
$1,072,030.67
$1,125,632.20
Significant Dates
Dated
First Coupon Date
4/25/2013
2/01/2014
Yield Statistics
Bond Year Dollars $8,087.33
Average Life 9.087 Years
Average Coupon 2.2508120%
Net Interest Cost (NIC)
2.3608606%
True Interest Cost (TIC)
2.3553048%
Bond Yield for Arbitrage Purposes
2.2323890%
All Inclusive Cost (AIC)
2.4971099%
IRS Form 8038
Net Interest Cost 2.2508120%
Weighted Average Maturity 9.087 Years
Series 2013 GO Imp Bonds I Water Portion 1 2/20/2013 1 1:52 PM
E_HL E_ R_S__
LEADERS IN PUBLIC FINANCE
City of Hopkins, Minnesota
$505,000 General Obligation Improvement Bonds, Series 2013A
Sewer Portion
Assuming Current Revenue BQ "AA" Market Rates plus 20bps
Debt Service Schedule
105% Sewer
Date Principal Coupon Interest Total P+I Revenue
02/01/2014
-
-
7,603.42
7,603.42
7,983.59
02/01/2015
30,000.00
0.800%
9,917.50
39,917.50
41,913.38
02/01/2016
30,000.00
1.000%
9,677.50
39,677.50
41,661.38
02/01/2017
30,000.00
1.100%
9,377.50
39,377.50
41,346.38
02/01/2018
30,000.00
1.250%
9,047.50
39,047.50
40,999.88
02/01/2019
30,000.00
1.400%
8,672.50
38,672.50
40,606.13
02/01/2020
30,000.00
1.650%
8,252.50
38,252.50
40,165.13
02/01/2021
35,000.00
1.850%
7,757.50
42,757.50
44,895.38
02/01/2022
35,000.00
2.050%
7,110.00
42,110.00
44,215.50
02/01/2023
35,000.00
2.250%
6,392.50
41,392.50
43,462.13
02/01/2024
35,000.00
2.350%
5,605.00
40,605.00
42,635.25
02/01/2025
35,000.00
2.450%
4,782.50
39,782.50
41,771.63
02/01/2026
35,000.00
2.500%
3,925.00
38,925.00
40,871.25
02/01/2027
35,000.00
2.600%
3,050.00
38,050.00
39,952.50
02/01/2028
40,000.00
2.650%
2,140.00
42,140.00
44,247.00
02/01/2029
40,000.00
2.700%
1,080.00
41,080.00
43,134.00
Total $505,000.00 - $104,390.92 $609,390.92 $639,860.47
Significant Dates
Dated 4/25/2013
First Coupon Date 2/01/2014
Yield Statistics
Bond Year Dollars $4,627.17
Average Life 9.163 Years
Average Coupon 2.2560441%
Net Interest Cost (NIC)
2.3651821%
True Interest Cost (TIC)
2.3599773%
Bond Yield for Arbitrage Purposes
2.2323890%
All Inclusive Cost (AIC)
2.5007116%
IRS Form 8038
Net Interest Cost
2.2560441%
Weighted Average Maturity
9.163 Years
Series 2013 GO Imp Bonds I Sewer Portion 1 2/20/2013 1 1:52 PM
EHLERS
LEADERS IN PUBLIC FINANCE
City of Hopkins, Minnesota
$395,000 General Obligation Improvement Bonds, Series 2013A
Storm Sewer Portion
Assuming Current Revenue BQ "AA" Market Rates plus 20bps
Debt Service Schedule
105% Storm
Sewer
Date Principal Coupon Interest Total P+I Revenue
02/01/2014
-
-
5,882.25
5,882.25
6,176.36
02/01/2015
25,000.00
0.800%
7,672.50
32,672.50
34,306.13
02/01/2016
25,000.00
1.000%
7,472.50
32,472.50
34,096.13
02/01/2017
25,000.00
1.100%
7,222.50
32,222.50
33,833.63
02/01/2018
25,000.00
1.250%
6,947.50
31,947.50
33,544.88
02/01/2019
25,000.00
1.400%
6,635.00
31,635.00
33,216.75
02/01/2020
25,000.00
1.650%
6,285.00
31,285.00
32,849.25
02/01/2021
25,000.00
1.850%
5,872.50
30,872.50
32,416.13
02/01/2022
25,000.00
2.050%
5,410.00
30,410.00
31,930.50
02/01/2023
25,000.00
2.250%
4,897.50
29,897.50
31,392.38
02/01/2024
25,000.00
2.350%
4,335.00
29,335.00
30,801.75
02/01/2025
25,000.00
2.450%
3,747.50
28,747.50
30,184.88
02/01/2026
30,000.00
2.500%
3,135.00
33,135.00
34,791.75
02/01/2027
30,000.00
2.600%
2,385.00
32,385.00
34,004.25
02/01/2028
30,000.00
2.650%
1,605.00
31,605.00
33,185.25
02/01/2029
30,000.00
2.700%
810.00
30,810.00
32,350.50
Total $395,000.00 - $80,314.75 $475,314.75 $499,080.49
Significant Dates
Dated
First Coupon Date
Yield Statistics
4/25/2013
2/01/2014
Bond Year Dollars
$3,572.83
Average Life
9.045 Years
Average Coupon
2.2479288%
Net Interest Cost (NIC)
2.3584853%
True Interest Cost (TIC)
2.3525735%
Bond Yield for Arbitrage Purposes
2.2323890%
All Inclusive Cost (AIC)
2.4949878%
IRS Form 8038
Net Interest Cost 2.2479288%
Weighted Average Maturity 9.045 Years
Series 2013 GO Imp Bonds I Storm Sewer Portion 1 2/20/2013 1 1:52 PM
EHLERS
LEADERS IN PUBLIC FINANCE
City of Hopkins, Minnesota
$757,335
General Obligation Improvement Bonds, Series 2013A
Assuming Current Revenue BQ "AA" Market Rates plus 20bps
Assessments
Date Principal Coupon Interest Total P+I
12/31/2014
36,848.98
4.350%
32,944.09
69,793.07
12/31/2015
38,451.91
4.350%
31,341.16
69,793.07
12/31/2016
40,124.57
4.350%
29,668.50
69,793.07
12/31/2017
41,869.99
4.350%
27,923.08
69,793.07
12/31/2018
43,691.33
4.350%
26,101.73
69,793.06
12/31/2019
45,591.91
4.350%
24,201.16
69,793.07
12/31/2020
47,575.15
4.350%
22,217.91
69,793.06
12/31/2021
49,644.67
4.350%
20,148.39
69,793.06
12/31/2022
51,804.22
4.350%
17,988.85
69,793.07
12/31/2023
54,057.70
4.350%
15,735.37
69,793.07
12/31/2024
56,409.21
4.350%
13,383.86
69,793.07
12/31/2025
58,863.01
4.350%
10,930.06
69,793.07
12/31/2026
61,423.55
4.350%
8,369.52
69,793.07
12/31/2027
64,095.48
4.350%
5,697.59
69,793.07
12/31/2028
66,883.63
4.350%
2,909.44
69,793.07
Total
$757,335.31
-
$289,560.71
$1,046,896.02
Significant Dates
Filing Date
First Payment Date
Series 2013 GO Imp Bonds I SINGLE PURPOSE 1 2/20/2013 1 9:08 AM
10 FREERS
LEADERS IN PUBLIC FINANCE
1/01/2014
12/31/2014
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2013-015
Resolution Providing for the Sale of
$3,770,000 G.O. Improvement Bonds, Series 2013A
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 $3,770,000 General Obligation Improvement Bonds,
Series 2013A (the "Bonds"), to finance the 2013 road reconstruction projects 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 April 25, 2013, 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 5th day of March 2013.
Eugene J. Maxwell, Mayor
ATTEST:
Kristine A Luedke, City Clerk