The URL can be used to link to this page

Home My WebLink About10C - General Obligation Refunding BondsCERTIFICATION OF MINUTES RELATING TO GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2009B ISSUER: City of Prior Lake, Minnesota BODY: City Council KIND, DATE, TIME AND PLACE OF MEETING: A regular meeting held on Monday, July 20, 2009, at 6:00 o'clock p.m., in the City Offices MEMBERS PRESENT: MEMBERS ABSENT: Documents Attached: Extract of Minutes of said meeting. RESOLUTION APPROVING THE ISSUANCE OF GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2009B • I, the undersigned, being the duly qualified and acting recording officer of the public corporation issuing the obligations referred to in the title of this certificate, certify that the documents attached hereto, as described above, have been carefully compared with the original records of said corporation in my legal custody, from which they have been transcribed; that said documents are a correct and complete transcript of the minutes of a meeting of the governing body of said corporation, and correct and complete copies of all resolutions and other actions taken and of all documents approved by the governing body at said meeting, so far as they relate to said obligations; and that said meeting was duly held by the governing body at the time and place and was attended throughout by the members indicated above, pursuant to call and notice of such meeting given as required by law. WITNESS MY HAND officially as .such recording officer on July , 2009. City Manager • EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, STATE OF MINNESOTA HELD: Monday, July 20, 2009 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Prior Lake, Minnesota, was duly held on Monday, July 20, 2009 at 6:00 o'clock p.m. Member adoption: introduced the following resolution and moved its RESOLUTION APPROVING THE ISSUANCE OF GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 2009B BE IT RESOLVED by the City Council of the City of Prior Lake, Minnesota (herein, the "City"), as follows: 1. The City Council hereby finds and declares that it is necessary and expedient for the City to sell and issue its fully registered general obligation refunding bonds in the total aggregate principal amount of not to exceed $1,300,000 (herein, the "Bonds"). The proceeds of the Bonds will be used, together with any additional funds of the City which might be required, for (i) the current refundings of all or a portion of the callable • maturities of the City's General Obligation Improvement Bonds of 2000, dated October 1, 2000, General Obligation Improvement Bonds of 2002, dated October 1, 2002, and General Obligation Improvement Bonds of 2003, dated April 1, 2003, and (ii) to pay the costs associated with issuing the Series 2009B Bonds. 2. The. City desires to proceed with the sale of the Bonds by direct negotiation to Northland Securities, Inc. (herein, "NSI") and it does hereby retain Sound Capital Management, Inc. (herein, "Sound Capital") to act as an independent financial advisor to provide bond pricing opinion services for the issuance of the Bonds for the purpose set forth in Minnesota Statutes, Section 475.60, Subdivision 2(9), as amended. 3. The Mayor and the City Manager are hereby authorized to approve the sale of the Bonds in an aggregate principal amount of not to exceed $1,300,000 and to execute a bond purchase agreement for the purchase of the Bonds with NSI, provided the total net savings is at least $ 4. Upon approval of the sale of the Bonds by the Mayor and the City Manager, the City Council will take action at its next regularly scheduled meeting thereafter to adopt the necessary approving resolutions as prepared by the City's bond counsel. 5. NSI is authorized to prepare an Official Statement related to the sale of the Bonds. • 6. If the Mayor and the City Manager have not approved the sale of the Bonds to NSI and executed the related bond purchase agreement by December 1, 2009, this resolution shall expire. The motion for the adoption of the foregoing resolution was duly seconded by Member and upon vote being taken thereon, the following voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. C, Preliminary City of Prior Lake, Minnesota G.O. Refunding Bonds of 2009 2000 / 2002 / 2003 Refunding Summary Dated 09/01/2009 I Delivered 09/03/2009 2000 2002 2003 Issue Sum Sources Of Funds Par Amount of Bonds $125,000.00 $355,000.00 $815,000.00 $1,295,000.00 Transfers from Prior Issue Debt Service Funds 131,093.75 107,662.50 - 238,756.25 Accrued Interest from 09/01/2009 to 09/03/2009 5.21 21.88 55.51 82.60 Total Sources $256,098.96 $462,684.38 $815,055.51 $1,533,838.85 Uses Of Funds Deposit to Current Refunding Fund 253,114.58 453,916.39 799,267.69 1,506,298.66 Total Underwriter's Discount (1.325%) 1,656.25 4,703.75 10,798.75 17,158.75 Costs of Issuance 984.55 2,796.14 6,419.31 10,200.00 Rounding Amount 338.37 1,246.22 (1,485.75) 98.84 Deposit to Debt Service Fund 5.21 21.88 55.51 82.60 Total Uses $256,098.96 $462,684.38 $815,055.51 $1,533,838.85 Flow of Funds Detail State and Local Government Series (BEGS) rates for Date of OMP Candidates Primary Purpose Fund Solution Method Net Funded Net Funded Net Funded Net Funded Total Cost of Investments $253,114.58 $453,916.39 $799,267.69 $1,506,298 66 Interest Earnings @ 0.375% - - 732.31 732.31 Total Draws $253,114.58 $453,916.39 $800,000.00 $1,507,030.97 PV Analysis Summary (Net to Net) Net PV Cashflow Savings @ 1.301%(Bond Yield) 135,567.96 118,093.34 20,993.19 274,654 50 Accrued Interest Credit to Debt Service Fund 5.21 21.88 55.51 82.60 Transfers from Prior Issue Debt Service Fund (131,093.75) (107,662.50) - (238,756.25) Contingency or Rounding Amount 338.37 1,246.22 (1,485.75) 98.84 Net Present Value Benefit $4,817.79 $11,698.94 $19,562.95 ~ ' $36,079 69 Net PV Benefit / $1,500,000 Refunded Principal 1.927% 2.600% 2.445% 2 405% Net PV Benefit / $1,295,000 Refunding Principal 3.854% 3.295% 2.400% 2 786% Bond Statistics Average Life 1.250 Years 2.377 Years 2.716 Years 2 482 Years Average Coupon 0.7500032% 1.2055561% 1.3792492% 1.3030538% Net Interest Cost (NIC) 1.8100032% 1.7630376% 1 8670527%~ ~ { ~_~~.~ Bond Yield for Arbitrage Purposes 1.3005046% 1.3005046% 1.3005046% 1 3005046% True Interest Cost (TIC) 1.8307238% 1.7779723% 1.8811922% 1 8515564% All Inclusive Cost (AIC) 2.4831149% 2.1240166% 2.1855999% 2.1840642% Ref Imp I Issue Summary 1 7/16/2009 1 9:56 AM Northland Securities Public Finance Page 1 Preliminary City of Prior Lake, Minnesota G.O. Refunding Bonds of 2009 2000 / 2002 / 2003 Debt Service Comparison Date Total P+I Existing D/S Net New D/S Old Net D/S Savings 12/01 /2009 - 216,100.00 215,918.56 216,100.00 181.44 12/01/2010 458,584.39 - 458,584.39 469,650.00 11,065.61 12/01/2011 321,567.50 - 321,567.50 328,975.00 7,4Q7.50 12/01/2012 358,312.50 - 358,312.50 369,025.00 10;712.50 12/01/2013 198,412.50 - 198,412.50 207,000.00 =- 8,587.50 Total $1,336,876.89 $216,100.00 $1,552,795.45 $1,590,750.00 $37,954.55 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings ..................... 274,654.50 Net PV Cashflow Savings @ 1.301%(Bond Yield)..... 274,654.50 Accrued Interest Credit to Debt Service Fund...... 82.60 Transfers from Prior Issue Debt Service Fund...... (238,756.25) Contingency or Rounding Amount .................... 98.84 Net Present Value Benefit $36,079.69 Net PV Benefit / $1,569,737.10 PV Refunded Debt Service 2.298% Net PV Benefit / $1,500,000 Refunded Principal... 2.405% Net PV Benefit / $1,295,000 Refunding Principal.. 2.786% Refunding Bond Information Refunding Dated Date 9/01/2009 Refunding Delivery Date 9/03/2009 Ref Imp I Issue Summary ~ 7/16/2009 19:56 AM Northland Securities Public Finance Page 2 Preliminary City of Prior Lake, Minnesota G.O. Refunding Bonds of 2009 2000 / 2002 / 2003 Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 09/03/2009 - - 06/01 /2010 - - 12/01/2010 440,000.00 0.750% 06/01/2011 - - 12/01/2011 310,000.00 1.050% 06/01 /2012 - - - 11,150.64 7,433.75 5,783.75 5,783.75 4,156.25 - 11,150.64 447,433.75 5,783.75 315,783.75 4,156.25 _ - 458,584.39 - 321,567.50 - 12/01/2012 350,000.00 1.400% 06/01/2013 - - 12/01/2013 195,000.00 1.750% 4,156.25 1,706.25 1,706.25 354,156.25 1,706.25 196,706.25 358,312.50 - 198,412.50 Total $1,295,000.00 - $41,876.89 $1,336,876.89 - Dated 9/01 /2009 Delivery Date 9/03/2009 First Coupon Date 6!01/2010 First available call date Call Price _ Accrued Interest from 09/01/2009 to 09/03/2009 82.60 Bond Year Dollars $3,213.75 Average Life 2.482 Years Average Coupon 1.3030538% NetlnterestCost(NIC) 1.8369705% True Interest Cost (TIC) 1.8515564% Bond Yield for Arbitrage Purposes 1.3005046% Net Interest Cost 1.3034014% Weighted Average Maturity 2.476 Years I Ref Imp ~ Issue Summary 1 7/16/2009 1 9:56 AM Northland Securities Public Finance aaa 3 Preliminary City of Prior Lake, Minnesota G.O. Bonds of 2000 Debt Service To Maturity And To Call Refunded Interest to Date Bonds Call D/S To Call Principal Coupon Interest Refunded D/S Fiscal Total 09/03/2009 250,000.00 3,114.58 253,114.58 - - - - _ 12/01/2009 - - - 125,000.00 4.850% 6,093.75 131,093.75 131,093.75 06/01/2010 - - - - - 3,062.50 3,062.50 - 12/01/2010 - - - 125,000.00 4.900% 3,062.50 128,062.50 131,125.00 Total $250,000.00 $3,114.58 $253,114.58 $250,000.00 - $12,218.75 $262,218.75 - Yield Statistics Average Life 0.750 Years Weighted Average Maturity (Par Basis) 0.744 Years Average Coupon 4.8916667% Refunding Bond Information Refunding Dated Date 9/01/2009 Refunding Delivery Date 9/03/2009 OOimpold i SINGLE PURPOSE ~ 7/16/2009 i 9:56 AM Northland Securities Public Finance Page 4 L C Preliminary City of Prior Lake, Minnesota G.O. Bonds of 2002 Debt Service To Maturity And To Call Refunded Interest to Date Bonds Call D/S To Call Principal Coupon Interest Refunded D/S Fiscal Total 09/03/2009 450,000.00 3,916.39 453,916.39 - - - _ _ 12/01/2009 - - - 100,000.00 3.200% 7,662.50 107,662.50 107,662.50 06/01/2010 - - - - - 6,062.50 6,062.50 - 12/01/2010 - - - 100,000.00 3.350% 6,062.50 106,062.50 112,125.00 06/01/2011 - - - - - 4,387.50 4,387.50 - 12/01/2011 - - - 100,000.00 3.450% 4,387.50 104,387.50 108,775 00 06/01/2012 - - - - - 2,662.50 2,662.50 - 12/01/2012 - - - 150,000.00 3.550% 2,662.50 152,662.50 155,325.00 Total $450,000.00 $3,916.39 $453,916.39 $450,000.00 - $33,887.50 $483,887.50 - Yield Statistics Average Life 1.917 Years Weighted Average Maturity (Par Basis) 1 911 Years Average Coupon 3 9289855% Refunding Bond Information Refunding Dated Date 9/01/2009 Refunding Delivery Date 9/03/2009 02impold ~ SINGLE PURPOSE i 7/16/2009 i 9:56 AM Northland Securities Public Finance p,,,e t Preliminary ' City of Prior Lake, Minnesota '~~ G.O. Bonds of 2003 Debt Service To Maturity And To Call Refunded Date Bonds D/S To Call Principal Coupon Interest Refunded D/S Fiscal Total 09/03/2009 - - _ _ _ _ _ 12/01/2009 800,000.00 800,000.00 - 2.900% - - _ 06/01/2010 - - - - 13,200.00 13,200.00 - 12/01/2010 - - 200,000.00 3.100% 13,200.00 213,200.00 226,400.00 06/01 /2011 - - - - 10,100.00 10,100.00 - 12/01/2011 - - 200,000.00 3.250% 10,100.00 210,100.00 220,200.00 06/01/2012 - - - - 6,850.00 6,850.00 - 12/01/2012 - - 200,000.00 3.350% 6,850.00 206,850.00 213,700.00 06/01/2013 - - - - 3,500.00 3,500.00 - 12/01/2013 - - 200,000.00 3.500% 3,500.00 203,500.00 207,000.00 Total $800,000.00 $800,000.00 $800,000.00 - $67,300.00 $867,300.00 - Yield Statistics Average Life 2.750 Years Weighted Average Maturity (Par Basis) 2.744 Years Average Coupon 3.0590909% Refunding Bond Information Refunding Dated Date 9/01/2009 Refunding Delivery Date 9/03/2009 03impold i SINGLE PURPOSE ~ 7/16/2009 i 9:56 AM Northland Securities Public Finance p,,,e Preliminary City of Prior Lake, Minnesota G.O. Refunding Bonds of 2009 2000 / 2002 / 2003 Current Refunding Escrow Date Principal Rate Interest Receipts Disbursements Cash Balance 09/03/2009 - - - 707,030.98 707,030.97 0.01 12/01/2009 799,267.68 0.3750000% 732.31 799,999.99 800,000.00 - Total $799,267.68 - $732.31 $1,507,030.97 $1,507,030.97 - Investment Parameters Investment Model [PV, GIC, or Securities] PV Discount Default investment yield target User Defined Cash Deposit 707,030.98 Cost of Investments Purchased with Bond Proceeds 799,267 68 Total Cost of Investments $1.506.298.66 Target Cost of Investments at bond yield $1,504,500.01 Actual positive or (negative) arbitrage (1,798.65) Yield to Receipt 0.3749993% Yield for Arbitrage Purposes 1.3005046% State and Local Government Series (BEGS) rates for Ref Imp ~ Issue Summary 17/16/2009 ~ 9:56 AM Northland Securities Public Finance Page 7 7/15/2009