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HomeMy WebLinkAbout9A General Obligation BondsPRIO 4r U try \ I NNESO 4646 Dakota Street SE Prior Lake. MN 55372 CITY COUNCIL AGENDA REPORT MEETING DATE: DECEMBER 5, 2011 AGENDA #: 9A PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR PRESENTED BY: JERILYN ERICKSON AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $5,780,000 GENERAL OBLIGATION BONDS, SERIES 2011B DISCUSSION: Introduction The City's bond and financial advisor, Steve Mattson from Northland Securities Inc., will present to the Council a completed resolution formally authorizing the is- suance of $5,780,000 in general obligation bonds for the following: Finance improvements associated with 2012 Reconstruction $ 1,730,000 project for Boudin, Timothy, Denese, Lois and Natalie Streets (Boudin's Phase 11, Project 12 -011) CR21 /Arcadia intersection project less right -of -way costs 550,000 bonded for in September, 2011 Project 11 -001 Refund General Obligation Fire Hall Bonds, Series 2006A $ 3,500,000 Total Bond Issue $ 5,780,000 A copy of the resolution is attached for the Council's review. History The City Council approved Resolution 11 -136 on November 7, 2011 which autho- rized a negotiated bond sale designed to time the sale in the market to obtain the optimum interest rate on these bonds. The original sale was anticipated to be $5,845,000 but due to market conditions and buyers willing to pay a premium for the bonds, the City was able to reduce the total amount of bonds being sold. Current Circumstances The bonds have been rated Aa2 by Moody's Investor Service. The report issued by Moody's is attached to this agenda report. Also attached is the final analysis and summaries for the bonds. Conclusion The City Council will consider a resolution approving the issuance and sale of bonds. ISSUES The sale of these bonds in the present bond climate will save taxpayer dollars in excess of $200,000 in interest costs over the life of the bonds where refunding is taking place. Where new bonds are being issued, the interest rates are very fa- vorable. As the council is aware, the timing for this bond issuance is part of a two step process which is intended to minimize interest costs and save tax payers hun- dreds of thousands of dollars in interest over the life of the bonds. Of course, our future actions will be tempered by bond market conditions. ALTERNATIVES: The following alternatives are available to the City Council: 1. Adopt a Resolution Providing for the Issuance and Sale of $5,780,000 General Obligation Bonds, Series 2011 B. 2. Reject bond sale for a specific reason. RECOMMENDED Alternative #1. MOTION: 2 MOODY'S INVESTORS SERVICE New Issue: MOODY'S ASSIGNS Aa2 RATING TO CITY OF PRIOR LAKE'S (MN) $5.8 MILLION GO BONDS, SERIES 2011B Global Credit Research - 16 Nov 2011 Aa2 RATING APPLIES TO $30.6 MILLION OF POST SALE GO DEBT PRIOR LAKE (CITY OF) MN Cities (including Towns, Villages and Townships) MV Moodys Rating ISSUE RATING General Obligation Bonds, Series 2011B Pat Sale Amount $5,845,000 Expected Sale Date 11/22/11 Rating Description General Obligation Moodys Outlook NOO Opinion NEW YORK, November 16, 2011 — Moodys Investors Service has assigned a Aa2 rating to the City of Prior Lake's (MN) $5.8 million General Obligation Bonds, Series 2011 B. kbodys maintains the Aa2 rating on the City of Prior Lake's outstanding general obligation debt and the Aa3 rating on the citys lease revenue debt. Post -sale, the city will have $30.6 million of outstanding long -term general obligation debt and $9.3 million of lease revenue debt. SUMMARY RATINGS RATIONALE The current bonds are secured by the city's general obligation unlimited tax pledge. Aportion of the proceeds will crossover refund certain maturities of the citys $3.7 million General Obligation Fire Hall Bonds, Series 2006A, for estimated present value savings of $180,000 or 4.9% of par. The remaining portion of bond proceeds will finance the second phase of a two year infrastructure reconstruction project and an intersection signal /turn lane construction project. Assignment of the Aa2 general obligation rating reflects the citys proximity to the Twin Cities (Minneapolis: GO rated Aaa/negative outlook; St. Paul: GO rated Aa1 /positive outlook); Prior Lake's declining valuation following several years of strong tax base growth; strong financial operations supported by healthy reserves; and above - average, yet manageable, debt burden typical of a growing municipality. STRENGTHS - Proximity to the employment centers throughout the Twin Cities metropolitan region -Multi -year trend of strong and improving reserve levels CHALLENGES - Valuation declines driven by declines in residential home values - Above- average overall debt burden DETAILED CREDIT DISCUSSION ADVANTAGEOUS LOCATION NEAR TWIN CITIES WITH ABOVE AVERAGE WEALTH LEVELS; SIGNIFICANT VALUATION DECLINES DURING PAST TWO YEARS We expect the city's tax base to remain stable over the long -term, due to its favorable location 25 miles southwest of Minneapolis in Scott County (general obligation rated Aa1) and strong resident socio- economic profile. However, in line with broader trends, the tax base experienced recent declines in valuation driven by declines in residential home values. Full valuation (Indicated Market Value), currently a medium sized $2.8 billion, declined in 2010 and 2011, by 4.3% and 3.8% respectively and officials expect continued declines in 2012. Tax base declines followed a long -term trend of rapid growth. The city's population increased by 43.2% from 2000 (15,917) to 2010 (22,796). Several factors are expected to drive future valuation growth for Prior Lake, including an annexation agreement with Spring Lake Township that calls for up to 3,000 acres to be annexed by 2024, which should nearly double the 2010 population. Wealth indices track above national averages, with per capita and median family income levels at 148.6% and 161.9 %, respectively. At 5.5% in September 2011, Scott County's unemployment rate tracks well below state and national levels at 5.9% and 8.8% respectively. HEALTHY FINANCIAL OPERATIONS SUPPORTED BY STRONG FUND BALANCES We believe the citys financial position will continue to remain strong, as the result of prudent management practices, the maintenance of strong fund balances and adherence to a comprehensive financial management policy which includes the city's minimum fund balance policy. Favorably, the General Fund balance has increased from $5.3 million in 2006 (or a strong 43.8% of total General Fund revenues) to $7.1 million in 2010 (or an even stronger 56% of total General Fund revenues). This reflects a significant positive variance over the city's minimum fund balance policy of maintaining 40% of total operating expenses in reserve. The city's General Fund cash level has also steadily increased, from $5.5 million in 2006 to $7.5 million in 2010. At the end of fiscal 2011, officials project the General Fund balance will increase by $550,000 over 2010 levels, ending the year at $7.6 million (or 60.1% of 2010 level General Fund revenues) as the result of positive budget variances in building permit revenues, franchise fees and revenues generated by leases with several telecommunications companies. For fiscal year 2012, officials further project the General Fund balance to end the year at $6.8 million (or 53.7% of 2010 level General Fund revenues), reflecting a planned drawdown for capital expenditures. The city has limited exposure to the State of Minnesota's (GO rated Aa1 /negative) budgetary pressures. The city does not receive Local Government Aid (LGA); however, the city had received a modest amount of annual Market Value Homestead Credit (MVHC). Prior Lake did not receive MVHC allocations for 2010 ($258,000) or 2011 ($272,000). Favorably, since 2009, city officials have budgeted for the city not to receive any revenue from the MVHC. The MVHC program was eliminated for 2012. ABOVE- AVERAGE OVERALL DEBT BURDEN WITH SOME FUTURE BORROWING PLANNED We believe the city's overall debt burden will remain high but manageable. At 1.0% of full value, the citys direct debt position is low, though the city's overall debt burden of 4.5% of full value tracks above state and national averages, at 3.8% and 2.6% respectively. Moody's believes the city's direct debt burden will remain manageable given the citys limited plans to issue new debt, which are projected to equal $2 million to $3 million per year over the next ten years for routine capital expenditures outlined in the city's multi -year capital improvement plans. The majority of the city's overlapping debt burden is due to borrowing by Prior Lake - Salvage Independent School District No. 719 (GO rated Aa3). Amortization of the city's direct debt is sound, with 63.3% of principal retired in ten years. All of the city's outstanding debt is fixed rate, and the city is not a party to any interest rate swap agreements. WHAT COULD CHANGE THE RATING - UP - Valuation increases to levels commensurate with higher rated cities; stabilization of city's residential housing market values - Improvement in residents' median income levels WHAT COULD CHANGE THE RATING- DOWN - Continued decline in property values or weakening of the city's demographic profile - Declines in the city's fund balances and /or liquidity KEY STATISTICS Census 2010 population: 22,796 (43.2% increase from 2000 population) 2011 full market valuation: $2.8 billion (2% average annual increase since 2006) Estimated full value per capita: $121,299 Per capita income as % of U.S. (1999): 148.6% Median family income as % of U.S. (1999):161.9% Scott County unemployment rate (September 2011): 5.5% (MN at 5.9 %; U.S. at 8.8 %) FY 2010 General Fund balance (GAAP): $7.1 million (56% of General Fund revenues) Debt burden: 4.5% (1.1% direct) Principal amortization (10 years): 63.3% Post -Sale GOULT debt: $30.6 million Lease revenue debt outstanding: $9.3 million PRINCIPAL METHODOLOGY USED The principal methodology used in this rating was General Obligation Bonds Issued by U.S. Local Governments published in October 2009. 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In such a case, "MIS" in the foregoing statements shall be deemed to be replaced with "WKK ". WKK is a wholly-owned credit rating agency subsidiary of Moodys Group Japan G.K., which is wholly owned by MDodys Overseas Holdings Inc., a wholly -owned subsidiary of MCO. This credit rating is an opinion as to the creditworthiness or a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors. It would be dangerous for retail investors to make any investment decision based on this credit rating. If in doubt you should contact your financial or other professional adviser. APPLICATION OF FUNDS (ESTIMATED COSTS) EST. CONSTRUCTION COSTS (INCLUDING ENGINEERING & ADMIN.) PREMIUM ON BOND SALE 0.00 BOUDINS PHASE 2 1,700,000.00 ARCADIA INTERSECTION 535,000.00 TOTAL EST. HARD COSTS 2,235,000.00 ADD: (SOFT COSTS) ESTIMATED LEGAL OPINION 8,000.00 ESTIMATED OFFICIAL STATEMENT PRINTING 0.00 EST. REGISTRATION P/A (PREPAID TO CALL) 2,000.00 CAPITAL INTEREST (0 MONTHS) 46,413.78 ESTIMATED FISCAL FEE 0.00 ESTIMATED BOND RATING FEE 8,500.00 ESTIMATED FAIRNESS OPINION 1,000.00 REOFFERING PREMIUM (46,747.10) EST. DISCOUNT FACTOR (1.25% OF PAR) 28,363.20 TOTAL SOFT COSTS OF ISSUANCE 47,529.88 GRAND TOTAL 2,282,529.88 ROUNDED FOR ISSUANCE $2,280,000.00 CITY OF PRIOR LAKE, MINNESOTA GENERAL OBLIGATION BONDS, SERIES 201111 PAR AMOUNT: $2,280,000 YEAR AMOUNT BONDS DATED: BONDS MATURE: 2011 2012 0 INTEREST: 2013 205,000 2014 215,000 2015 220,000 OPTION: 2016 225,000 2017 225,000 2018 230,000 2019 230,000 2020 240,000 2021 245,000 2022 245,000 2023 0 2024 0 PAYING AGENT & 2025 0 REGISTRAR: 2026 0 2027 0 BOND SALE TRIGGER DATE: 2028 0 BOND MARKETING DATE: 2029 0 EST. BOND CLOSING DATE: TOTALS $2,280,000 FINAL ANALYSIS DECEMBER 15, 2011 DECEMBER 15, 2013 THROUGH 2022 .TUNE 15, 2012 AND SEMIANNUALLY THEREAFTER ON EACH JUNE 15 AND DECEMBER 15. ALL BONDS MATURING IN THE YEARS 2017 THROUGH 2022 ARE CALLABLE @ THE OPTION OF THE CITY ON DECEMBER 15, 2016 @ PAR NORTHLAND TRUST SERVICES NOVEMBER 7, 2011 NOVEMBER 21, 2011 DECEMBER 20, 2011 DATE OF ANALYSIS: Nov -22 -2011 DATED DATE OF BOND ISSUE: Dec -15 -2011 FILE: PRIOR LAKE 429 2011 FINAL FINAL (12 -15) INTEREST YEAR PRINCIPAL RATES INTEREST Name of Issuer CITY OF PRIOR LAKE, MINNESOTA Type of Bond GENERAL OBLIGATION BONDS, SERIES 2011B PAR AMOUNT: $2,280,000 TOTAL STATUATORY CAPITALIZED DEBT COVERAGE INTEREST SERVICE (a). 105.00% 12 MONTHS ASSESSMENTS ASSESSMENT INTEREST @ ASSESSMENT PRINCIPAL 4.00% INCOME FINAL ANALYSIS ANNUAL TAX I SURPLUS CUMULATIVE LEVY /DEFICIT BALANCE 2011 $550,000.00 PERCENTAGE OF ISSUE ASSESSED: 24.12% NORTHLAND SECURITIES INC. 0.00 $46,413.78 N'U RT H LAND SECURITIES STEVEN J. MATTSON FIRST INSTALLMENT COLLECTION: 2013 EXECUTIVE VICE PRESIDENT # OF ANNUAL INSTALLMENTS: 10 46,413.78 46,413.78 2012 47,067.50 47,067.50 47,067.50 (47,067.50) (653.72) 2013 205,000.00 2.00% 47,067.50 252,067.50 264,670.88 $55,000.00 $25,666.67 $80,666.67 201,000.00 16,995.79 16,342.07 2014 215,000.00 2.00% 42,967.50 257,967.50 270,865.88 55,000.00 19,800.00 74,800.00 201,000.00 4,934.12 21,276.19 2015 220,000.00 2.00% 38,667.50 258,667.50 271,600.88 55,000.00 17,600.00 72,600.00 201,000.00 1,999.12 23,275.31 2016 225,000.00 2.00% 34,267.50 259,267.50 272,230.88 55,000.00 15,400.00 70,400.00 201,000.00 (830.88) 22,444.43 2017 225,000.00 2.00% 29,767.50 254,767.50 267,505.88 55,000.00 13,200.00 68,200.00 201,000.00 1,694.12 24,138.55 2018 230,000.00 2.00% 25,267.50 255,267.50 268,030.88 55,000.00 11,000.00 66,000.00 201,000.00 (1,030.88) 23,107.67 2019 230,000.00 2.00% 20,667.50 250,667.50 263,200.88 55,000.00 8,800.00 63,800.00 201,000.00 1,599.12 24,706.79 2020 240,000.00 2.05% 16,067.50 256,067.50 268,870.88 55,000.00 6,600.00 61,600.00 201,000.00 (6,270.88) 18,435.91 2021 245,000.00 2.20% 11,147.50 256,147.50 268,954.88 55,000.00 4,400.00 59,400.00 201,000.00 (8,554.88) 9,881.03 2022 245,000.00 2.35% 5,757.50 250,757.50 263,295.38 55,000.00 2,200.00 57,200.00 201 000.00 (5,095.38) 4,785.65 2023 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,785.65 2024 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,785.65 2025 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,785.65 2026 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,785.65 2027 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,785.65 2028 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,785.65 2029 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 4,785.65 2,280,000.00 318,712.50 2,598,712.50 2,726,294.80 46,413.78 550,000.00 124,666.67 674,666.67 $2,010,000.00 $4,785.65 AMOUNT OF ASSESSMENTS: $550,000.00 PERCENTAGE OF ISSUE ASSESSED: 24.12% NORTHLAND SECURITIES INC. INTEREST RATE ON ASSESSMENTS: 4.00% N'U RT H LAND SECURITIES STEVEN J. MATTSON FIRST INSTALLMENT COLLECTION: 2013 EXECUTIVE VICE PRESIDENT # OF ANNUAL INSTALLMENTS: 10 612- 851 -5919 START DATE OF ASSESSMENTS: 11/1/2012 APPLICATION OF FUNDS (ESTIMATED COSTS) EST. CONSTRUCTION COSTS (INCLUDING ENGINEERING & ADMIN.) BOUDINS PHASE 2 ARCADIA INTERSECTION TOTAL EST. HARD COSTS 1,700,000.00 1,700,000.00 ADD: (SOFT COSTS) ESTIMATED LEGAL OPINION ESTIMATED OFFICIAL STATEMENT PRINTING EST. REGISTRATION P/A (PREPAID TO CALL) CAPITAL INTEREST (12 MONTHS) ESTIMATED FISCAL FEE ESTIMATED BOND RATING FEE ESTIMATED FAIRNESS OPINION REOFFERING PREMIUM EST. DISCOUNT FACTOR (1.25% OF PAR) TOTAL SOFT COSTS OF ISSUANCE GRAND TOTAL ROUNDED FOR ISSUANCE 4,000.00 0.00 1,000.00 35,211.56 0.00 5,000.00 500.00 (35,547.40) 21,521.20 31,685.36 1,731,685.36 $1,730,000.00 CITY OF PRIOR LAKE, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, 2011B PARAMOUNT: $1,730,000 YEAR AMOUNT BONDS DATED: BONDS MATURE: 2011 2012 0 INTEREST: 2013 160,000 2014 165,000 2015 165,000 2016 170,000 2017 170,000 2018 175,000 2019 175,000 2020 180,000 2021 185,000 2022 185,000 2023 0 2024 0 2025 0 2026 0 2027 0 2028 0 2029 0 OPTION: FINAL ANALYSIS AUGUST 15, 2011 DECEMBER 15, 2012 THROUGH 2021 .TUNE 15, 2012 AND SEMIANNUALLY THEREAFTER ON EACH JUNE 15 AND DECEMBER 15. ALL BONDS MATURING IN THE YEARS 2017 THROUGH 2021 ARE CALLABLE @ THE OPTION OF THE CITY ON DECEMBER 15, 2016 @ PAR EST. AVERAGE COUPON RATE: 2.1057% NET INTEREST COST: 1.9832% PAYING AGENT & REGISTRAR: NORTHLAND TRUST SERVICES BOND SALE TRIGGER DATE: NOVEMBER 7, 2011 BOND MARKETING DATE: NOVEMBER 21, 2011 EST. BOND CLOSING DATE: DECEMBER 20, 2011 TOTALS $1,730,000 DATE OF ANALYSIS: Nov -22 -2011 DATED DATE OF BOND ISSUE: Dec -15 -2011 FILE: PR10R LAKE 429 2011 FINAL FINAL (12 -15) INTEREST :INCIPAL RATES INTEREST Name of Issuer CITY OF PRIOR LAKE, MINNESOTA Type of Bond GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2011B PAR AMOUNT: $1,730,000 FINAL ANALYSIS TOTAL STATUATORY CAPITALIZED ASSESSMENTS ANNUAL DEBT COVERAGE INTEREST ASSESSMENT INTEREST @ ASSESSMENT TAX SURPLUS CUMULATIVE SERVICE 0, 105.00% 12 MONTHS PRINCIPAL 4.00% INCOME LEVY /DEFICIT BALANCE 2011 $35,211.56 35,211.56 35,211.56 2012 35,707.50 35,707.50 35,707.50 (35,707.50) (495.94) 2013 160,000.00 2.00% 35,707.50 195,707.50 205,492.88 $55,000.00 $25,666.67 $80,666.67 136,000.00 11,173.79 10,677.85 2014 165,000.00 2.00% 32,507.50 197,507.50 207,382.88 55,000.00 19,800.00 74,800.00 136,000.00 3,417.12 14,094.97 2015 165,000.00 2.00% 29,207.50 194,207.50 203,917.88 55,000.00 17,600.00 72,600.00 136,000.00 4,682.12 18,777.09 2016 170,000.00 2.00% 25,907.50 195,907.50 205,702.88 55,000.00 15,400.00 70,400.00 136,000.00 697.12 19,474.21 2017 170,000.00 2.00% 22,507.50 192,507.50 202,132.88 55,000.00 13,200.00 68,200.00 136,000.00 2,067.12 21,541.33 2018 175,000.00 2.00% 19,107.50 194,107.50 203,812.88 55,000.00 11,000.00 66,000.00 136,000.00 (1,812.88) 19,728.45 2019 175,000.00 2.00% 15,607.50 190,607.50 200,137.88 55,000.00 8,800.00 63,800.00 136,000.00 (337.88) 19,390.57 2020 180,000.00 2.05% 12,107.50 192,107.50 201,712.88 55,000.00 6,600.00 61,600.00 136,000.00 (4,112.88) 15,277.69 2021 185,000.00 2.20% 8,417.50 193,417.50 203,088.38 55,000.00 4,400.00 59,400.00 136,000.00 (7,688.38) 7,589.31 2022 185,000.00 2.35% 4,347.50 189,347.50 198,814.88 55,000.00 2,200.00 57,200.00 136 000.00 (5,614.88) 1,974.43 2023 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,974.43 2024 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,974.43 2025 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,974.43 2026 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,974.43 2027 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,974.43 2028 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,974.43 2029 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,974.43 1,730,000.00 241,132.50 1,971,132.50 2,067,903.80 35,211.56 550,000.00 124,666.67 674,666.67 $1,360,000.00 $1,974.43 ( +) ( +) AMOUNT OF ASSESSMENTS: $550,000.00 PERCENTAGE OF ISSUE ASSESSED: 31.79% NORTHLAND SECURITIES INC. INTEREST RATE ON ASSESSMENTS: 4.00% NORTH LAND SECURITIES STEVEN J. MATTSON FIRST INSTALLMENT COLLECTION: 2013 EXECUTIVE VICE PRESIDENT # OF ANNUAL INSTALLMENTS: 10 612- 851 -5919 START DATE OF ASSESSMENTS: 11/1/2012 APPLICATION OF FUNDS (ESTIMATED COSTS) EST. CONSTRUCTION COSTS (INCLUDING ENGINEERING & ADMIN.) ARCADIA INTERSECTION TOTAL EST. HARD COSTS ADD: (SOFT COSTS) ESTIMATED LEGAL OPINION ESTIMATED OFFICIAL STATEMENT PRINTING EST. REGISTRATION P/A (PREPAID TO CALL) CAPITAL INTEREST (12 MONTHS) ESTIMATED FISCAL FEE ESTIMATED BOND RATING FEE ESTIMATED FAIRNESS OPINION REOFFERING PREMIUM EST. DISCOUNT FACTOR (1.25% OF PAR) TOTAL SOFT COSTS OF ISSUANCE GRAND TOTAL 6liil - 1 138M ft 535,000.00 4,000.00 0.00 1,000.00 11,202.22 0.00 3,500.00 500.00 (11,199.70) 6,842.00 535,000.00 15,844.52 550,844.52 $550,000.00 CITY OF PRIOR LAKE, MINNESOTA GENERAL OBLIGATION STREET RECONSTRUCTION BONDS, 2011B PAR AMOUNT: $550,000 YEAR AMOUNT BONDS DATED: BONDS MATURE: 2011 2012 0 INTEREST: 2013 45,000 2014 50,000 2015 55,000 2016 55,000 2017 55,000 2018 55,000 2019 55,000 2020 60,000 2021 60,000 2022 60,000 2023 0 2024 0 2025 0 2026 0 2027 0 2028 0 2029 0 TOTALS $550,000 OPTION: FINAL ANALYSIS DECEMBER 15, 2011 DECEMBER 15, 2013 THROUGH 2022 JUNE 15, 2012 AND SEMIANNUALLY THEREAFTER ON EACH JUNE 15 AND DECEMBER 15. ALL BONDS MATURING IN THE YEARS 2017 THROUGH 2022 ARE CALLABLE @ THE OPTION OF THE CITY ON DECEMBER 15, 2016 @ PAR EST. AVERAGE COUPON RATE: 2.1068% NET INTEREST COST: 1.9884% PAYING AGENT & REGISTRAR: NORTHLAND TRUST SERVICES BOND SALE TRIGGER DATE: NOVEMBER 7, 2011 BOND MARKETING DATE: NOVEMBER 21, 2011 EST. BOND CLOSING DATE: DECEMBER 20, 2011 DATE OF ANALYSIS: Nov -22 -2011 DATED DATE OF BOND ISSUE: Dec -15 -2011 PR LAKE ST RECON 2011B FINAL FINAL (12 -15) INTEREST YEAR PRINCIPAL RATES INTEREST Name of Issuer CITY OF PRIOR LAKE, MINNESOTA Type of Bond GENERAL OBLIGATION STREET RECONSTRUCTION BONDS, 2011B PAR AMOUNT: $550,000 FINAL ANALYSIS TOTAL STATUATORY CAPITALIZED ASSESSMENTS ANNUAL DEBT COVERAGE INTEREST ASSESSMENT INTEREST @ ASSESSMENT TAX I SURPLUS CUMULATIVE SERVICE 0(.105.00% 12 MONTHS PRINCIPAL 6.00% INCOME LEVY /DEFICIT BALANCE 2011 $11,202.22 11,202.22 11,202.22 2012 11,360.00 11,360.00 11,360.00 $0.00 $0.00 $0.00 (11,360.00) (157.78) 2013 45,000.00 2.00% 11,360.00 56,360.00 59,178.00 0.00 0.00 0.00 65,000.00 5,822.00 5,664.22 2014 50,000.00 2.00% 10,460.00 60,460.00 63,483.00 0.00 0.00 0.00 65,000.00 1,517.00 7,181.22 2015 55,000.00 2.00% 9,460.00 64,460.00 67,683.00 0.00 0.00 0.00 65,000.00 (2,683.00) 4,498.22 2016 55,000.00 2.00% 8,360.00 63,360.00 66,528.00 0.00 0.00 0.00 65,000.00 (1,528.00) 2,970.22 2017 55,000.00 2.00% 7,260.00 62,260.00 65,373.00 0.00 0.00 0.00 65,000.00 (373.00) 2,597.22 2018 55,000.00 2.00% 6,160.00 61,160.00 64,218.00 0.00 0.00 0.00 65,000.00 782.00 3,379.22 2019 55,000.00 2.00% 5,060.00 60,060.00 63,063.00 0.00 0.00 0.00 65,000.00 1,937.00 5,316.22 2020 60,000.00 2.05% 3,960.00 63,960.00 67,158.00 0.00 0.00 0.00 65,000.00 (2,158.00) 3,158.22 2021 60,000.00 2.20% 2,730.00 62,730.00 65,866.50 0.00 0.00 0.00 65,000.00 (866.50) 2,291.72 2022 60,000.00 2.35% 1,410.00 61,410.00 64,480.50 0.00 0.00 0.00 65 000.00 519.50 2,811.22 2023 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,811.22 2024 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,811.22 2025 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,811.22 2026 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,811.22 2027 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,811.22 2028 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,811.22 2029 0.00 0.00% 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,811.22 550,000.00 77,580.00 627,580.00 658,391.00 11,202.22 0.00 0.00 0.00 $650,000.00 $2,811.22 ( +) AMOUNT OF ASSESSMENTS: $0.00 PERCENTAGE OF ISSUE ASSESSED: 0.00% NORTHLAND SECURITIES INC. INTEREST RATE ON ASSESSMENTS: 6.00% NORTHLAND SECURITIES STEVEN J. MATTSON FIRST INSTALLMENT COLLECTION: 2012 EXECUTIVE VICE PRESIDENT # OF ANNUAL INSTALLMENTS: 10 612 -851 -5919 START DATE OF ASSESSMENTS: 11/1/2011 ■ City of Prior Lake, Minnesota G.O. Bonds, Series 2011B Table of Contents Report ISSUE SUMMARY Project Summary Debt Service Schedule 2 Pricing Summary _ 3 Proof Of Bond Yield @ 2.5451225% 4 Detail Costs Of Issuance 5 2006A Refunding Summary 6 Debt Service Comparison 7 Debt Service Schedule 8 Total Prior Net Debt Service 9 Debt Service To Maturity And To Call 10 _ Crossover Escrow Fund Cashflow 11 Crossover Escrow Summary Cost 12 Primary Purpose Fund Proof Of Yield @ 0.3453336 _ 13 i SLGS Subscription Forms _ 14 _ Net Debt Service Schedule 14 $550,000 NEW Project Summary 15 Debt Service Schedule 16 Net Debt Service Schedule 17 $1,730,000 NEW Project Summary 18. Debt Service Schedule 19 Net Debt Service Schedule 20 Ref 5 I Issue Summary 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011 B ■ i Project Summary Dated 12/15120111 Delivered 1212012011 2006A $550,000 New $1,730,000 New Issue Summary Sources Of Funds Par Amount of Bonds $3,500,000.00 $550,000.00 $1,730,000.00 $5,780,000.00 Reoffering Premium 19,420.90 11,199.70 35,547.40 66,168.00 Accrued Interest from 12/15/2011 to 12/20/2011 1,319.69 157.78 495.94 1,973.41 Total Sources $3,520,740.59 $561,357.48 $1,766,043.34 $5,848,141.41 Uses Of Funds Deposit to Crossover Escrow Fund 3,465,396.74 - - 3,465,396.74 Deposit to Project Construction Fund - 535,000.00 1,700,000.00 2,235,000.00 Total Underwriter's Discount (1.244 %) 43,540.00 6,842.00 21,521.20 71,903.20 Deposit to Capitalized Interest (CIF) Fund - 11,202.22 35,211.56 46,413.78 Costs of Issuance 9,270.00 9,000.00 10,500.00 28,770.00 Deposit to Debt Service Fund - 157.78 495.94 653.72 Rounding Amount 2,533.85 (844.52) (1,685.36) 3.97 Total Uses $3,520,740.59 $561,357.48 $1,766,043.34 $5,848,141.41 Flow of Funds Detail State and Local Government Series (SLGS) rates for 11/22/2011 Date of OMP Candidates Primary Purpose Fund Solution Method Net Funded Net Funded Net Funded Net Funded Total Cost of Investments $3,465,396.74 $535,000.00 $1,700,000.00 $5,700,396.74 Interest Earnings @ 0.345% 34,655.76 - 34,655.76 Total Draws $3,500,052.50 $535,000.00 $1,700,000.00 $5,735,052.50 _ Capitalized Interest Fund Solution Method Net Funded Net Funded Net Funded Net Funded Original Bond Proceeds 11,202.22 35,211.56 46,413.78 _ Accrued Interest 157.78 495.94 _ 653.72 Total Draws $11,360.00 $35,707.50 $47,067.50 PV Analysis Summary (Net to Net) Net PV Cashfiow Savings @ 2.545 %(Bond Yield) 160,514.37 - Contingency or Rounding Amount 2,533.85 Net Present Value Benefit $163,048.22 Net PV Benefit / - Refunded Principal 5.071% - _ Net PV Benefit/ - Refunding Principal Bond Statistics 4.659% _ __ _ __ - Average Life 13.435 Years 6.695 Years 6.619 Years 10.753 Years Average Coupon _ 2.8978461% 2.1068004% 2.1057819% 2.7050559% _ _ Net Interest Cost (NIC) 2.9491400% 1.9 1.9832927% 2.7142832% Bond Yield for Arbitrage Purposes True Interest Cost (TIC) 2.5451225% 2.9321729% 2.5451225% 1.9717966% 2.5451225% 1.9663148% 2.5451225% 2.6802311% _ All Inclusive Cost (AIC) 2.9568389% 2.2377674% 2.0652264% 2.7353756% Ref 5 i Issue Summary i 11/2212011 i 12:48 PM Northland Securities Public Finance Page 1 Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011B Debt Service Schedule Date Principal Coupon Interest Total P +I Fiscal Total 12/20/2011 - - 06/15/2012 71,042.50 71,042.50 - 12/15/2012 71,042.50 71,042.50 142,085.00 06/15/2013 - - 71,042.50 71,042.50 - 12/15/2013 205,000.00 2.000% 71,042.50 276,042.50 347,085.00 06/15/2014 - - 68,992.50 68,992.50 - 12/15/2014 215,000.00 2.000% 68,992.50 283,992.50 352,985.00 06/15/2015 - - 66,842.50 66,842.50 - 12/15/2015 340,000.00 2.000% 66,842.50 406,842.50 473,685.00 06/15/2016 - - 63,442.50 63,442.50 - 12/15/2016 360,000.00 2.000% 63,442.50 423,442.50 486,885.00 06/15/2017 - - 59,842.50 59,842.50 - 12/15/2017 360,000.00 2.000% 59,842.50 419,842.50 479,685.00 06/15/2018 - - 56,242.50 56,242.50 - 12/15/2018 370,000.00 2.000% 56,242.50 426,242.50 482,485.00 06/15/2019 - - 52,542.50 52,542.50 - 12/15/2019 380,000.00 2.000% 52,542.50 432,542.50 485,085.00 06/15/2020 - - 48,742.50 48,742.50 _ - 12/15/2020 400,000.00 2.050% 48,742.50 448,742.50 497,485.00 06/15/2021 - - 44,642.50 44,642.50 - 12/15/2021 420,000.00 2.200% 44,642.50 464,642.50 509,285.00 06/15/2022 - - 40,022.50 40,022.50 - 12/15/2022 425,000.00 2.350% 40,022.50 465,022.50 505,045.00 06/15/2023 - - 35,028.75 35,028.75 12/15/2023 195,000.00 2.500% _ 35,028.75 230,028.75 265,057.50 06/15/2024 - - 32,591.25 32,591.25 - 12/15/2024 215,000.00 2.650% 32,591.25 247,591.25 280,182.50 06/15/2025 - - 29,742.50 29,742.50 - 12/15/2025 230,000.00 2.750% 29,742.50 259,742.50 289,485.00 06/15/2026 - 26,580.00 26,580.00 12/15/2026 240,000.00 2.850% 26,580.00 266,580.00 293,160.00 06/15/2027 - - 23,160.00 23,160.00 - 12/15/2027 255,000.00 3.000% 23,160.00 278,160.00 301,320.00 06/15/2028 - - 19,335.00 19,335.00 - 12/15/2028 270,000.00 3.200% 19,335.00 289,335.00 308,670.00 06/15/2029 15,015.00 15,015.00 _ - 12/15/2029 285,000.00 3.200% 15,015.00 300,015.00 315,030.00 06/15/2030 10,455.00 10,455.00 - - - 12/15/2030 10,455.00 310,455.00 320,910.00 300,000.00 3.400% 06/15/2031 - - 5,355.00 5,355.00 - 12/15/2031 315,000.00 3.400 5,355.00 320,355.00 325,710.00 Total $5,780,000.00 $1,681,320.00 $7,461,320.00 - Dated 12/15/2011 Delivery Date 12/20/2011 First Coupon Date 6115/20 First available call date -__ 12/15/2020 Call Price 100.0000000% Accrued Interest from 12/15/2011 to 12/20/2011 _ 1,973.41 Bond Year Dollars $62,154.72 Average Life -_ _- _. 10.753 Years Average Coupon 2.7050559% Net Interest Cost (NIC) _ 2.7142832% True Interest Cost (TIC) _ - _ 2.6802311% Bond Yield for Arbitrage Purposes _ 2.5451225% Net Interest Cost 2.5821160% Weighted A verage Maturity 10.686 Years Ref 5 1 Issue Summary 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Page 2 1 Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011B Pricing Summary Maturity Maturity Type of Bond Coupon Yield Value Price Dollar Price 12/15/2013 Serial Coupon 2.000% 0.550% 205,000.00 102.860% 210,863.00 12/15/2014 Serial Coupon 2.000% 0.750% 215,000.00 103.684% 222,920.60 12/15/2015 Serial Coupon 2.000% 0.950% 340,000.00 104.097% 353,929.80 12/15/2016 Serial Coupon 2.000% 1.150% 360,000.00 104.107% 374,785.20 12/15/2017 Serial Coupon 2.000% 1.400% 360,000.00 103.433% 372,358.80 12115/2018 Serial Coupon 2.000% 1.650% 370,000.00 102.300% 378,510.00 12/15/2019 Serial Coupon 2.000% 1.900% 380,000.00 100.737% 382,800.60 12/15/2020 Serial Coupon 2.050% 2.050% 400,000.00 100.000% 400,000.00 12/15/2021 Serial Coupon 2.200% 2.200% 420,000.00 100.000% 420,000.00 12/15/2022 Serial Coupon 2.350% 2.350% 425,000.00 100.000% 425,000.00 12/15/2023 Serial Coupon 2.500% 2.500% 195,000.00 100.000% 195,000.00 12/15/2024 Serial Coupon 2.650% 2.650% 215,000.00 100.000% 215,000.00 12/15/2025 Serial Coupon 2.750% 2.750% 230,000.00 100.000% 230,000.00 12/15/2026 Serial Coupon 2.850% 2.850% 240,000.00 100.000% 240,000.00 12/15/2027 Serial Coupon 3.000% 3.000% 255,000.00 100.000% 255,000.00 12/15/2029 Term 1 Coupon 3.200% 3.200% 555,000.00 100.000% 555,000.00 12/15/2031 Term 2 Coupon 3.400% 3.400% 615,000.00 100.000% 615,000.00 Total - - - $5,780,000.00 - $5,846,168.00 Dated 12/15/2011 Delivery Date _ 12/20/2011 First Coupon Date 6/15/2012 First available call date 12/15/2020 Call Price 100.0000000% Par Amount of Bonds $5,780,000.00 Reoffering Premium or (Discount) _ _ 66,168.00 Gross Produc _ _ $5,846,168.00 Total Underwriter's Discount (1.244 %) _ $(71,903.20) Bid (99.901 %) 5,774,264.80 Accrued Interest from 12/15/2011 to 12/20/2011 1,973.41 Total Purchase Price - $5,776,238.21 Bond Year Dollars $62,154.72 Average Life 10.753 Years Average Coupon 2.7050559% Net Interest Cost (NIC) 2.7142832% True Interest Cost (TIC) _ 2.6802311% Ref 5 1 Issue Summary 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Page 3 Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011 B Proof Of Bond Yield @ 2.5451225% I Issue Proceeds Ref 5 1 Issue Summary 1 11/22/2011 1 12:48 PM Northland Securities Public Finance $5,848,141.41 Page 4 Cumulative Date Cashflow PV Factor Present Value PV 12/20/2011 - 1.000000ox - - 06/15/2012 71,042.50 0.9877812x 70,174.45 70,174.45 12/15/2012 71,042.50 0.9753690x 69,292.65 139,467.10 06/15/2013 71,042.50 0.9631128x 68,421.94 207,889.04 12/15/2013 276,042.50 0.9510106x 262,519.35 470,408.40 06/15/2014 68,992.50 0.9390605x 64,788.13 535,196.53 12/15/2014 283,992.50 0.9272606x 263,335.04 798,531.57 06/15/2015 66,842.50 0.9156089x 61,201.59 859,733.16 12/15/2015 406,842.50 0.9041036x 367,827.77 1,227,560.93 06/15/2016 63,442.50 0.8927429x 56,637.84 1,284,198.77 12/15/2016 423,442.50 0.8815250x 373,275.13 1,657,473.90 06/15/2017 59,842.50 0.8704480x 52,089.78 1,709,563.69 12/15/2017 419,842.50 0.8595102x 360,858.90 2,070,422.59 06/15/2018 56,242.50 0.8487098x 47,733.56 2,118,156.15 12/15/2018 426,242.50 0.8380452x 357,210.48 2,475,366.63 06/15/2019 52,542.50 0.8275146x 43,479.68 2,518,846.31 12/15/2019 432,542.50 0.8171163x 353,437.51 2,872,283.82 06/15/2020 48,742.50 0.8068486x 39,327.82 2,911,611.64 12/15/2020 448,742.50 0.7967100x 357,517.63 3,269,129.27 06/15/2021 44,642.50 0.7866988x 35,120.20 3,304,249.47 12/15/2021 464,642.50 0.7768133x 360,940.49 3,665,189.96 06/15/2022 40,022.50 0.7670521x 30,699.34 3,695,889.31 12/15/2022 465,022.50 0.7574136x 352,214.36 4,048,103.66 06/15/2023 35,028.75 0.7478961x 26,197.87 4,074,301.53 12/15/2023 230,028.75 0.7384983x 169,875.84 4,244,177.37 06/15/2024 32,591.25 0.7292185x 23,766.14 4,267,943.51 12/15/2024 247,591.25 0.7200554x 178,279.42 4,446,222.93 06/15/2025 29,742.50 0.7110074x 21,147.14 4,467,370.07 12/15/2025 259,742.50 0.7020731x 182,358.22 4,649,728.29 06/15/2026 26,580.00 0.6932510x 18,426.61 4,668,154.90 12/15/2026 266,580.00 0.6845399x 182,484.63 4,850,639.53 06/15/2027 23,160.00 0.6759381x 15,654.73 4,866,294.26 12/15/2027 278,160.00 0.6674445x 185,656.36 5,051,950.62 06/15/2028 19,335.00 0.6590576x 12,742.88 5,064,693.50 12/15/2028 289,335.00 0.6507761x 188,292.29 5,252,985.78 06/15/2029 15,015.00 0.6425986x 9,648.62 5,262,634.40 12/15/2029 300,015.00 0.6345239x 190,366.68 5,453,001.09 06/15/2030 10,455.00 0.6265506x 6,550.59 5,459,551.67 12/15/2030 310,455.00 0.6186776x 192,071.55 5,651,623.22 06/15/2031 5,355.00 0.6109035x 3,271.39 5,654,894.61 12/15/2031 320,355.00 0.6032270x 193,246.80 5,848,141.41 Total $7,461,320.00 - $5,848,141.41 - Derivation Of Target Amount Par Amount of Bonds $5,780,000.00 Reoffering Premium or (Discount) 66,168.00 Accrued Interest from 12/15/2011 to 12/20/2011 _ _ _ 1.973.41 I Issue Proceeds Ref 5 1 Issue Summary 1 11/22/2011 1 12:48 PM Northland Securities Public Finance $5,848,141.41 Page 4 ■ Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011B Detail Costs Of Issuance Dated 12/15/20111 Delivered 12/20/2011 COSTS OF ISSUANCE DETAIL Bond Counsel $11,000.00 Rating Agency Fee $9,350.00 Registrar/ Paying Agent _ $2,820.00 Pricing Opinion $1,500.00 _ _ Escrow Agent _ _ $1,600.00 CPA / Verification _ $2,500.00 TOTAL $28,770.00 Ref 5 1 Issue Summary 1 11122/2011 1 12:48 PM Northland Securities Public Finance Page 5 Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011B 2-vvoH Kerunaing Refunding Summary Dated 12115120111 Delivered 12/20/2011 Sources Of Funds Par Amount of Bonds $3,500,000.00 Reoffering Premium 19,420.90 _ Accrued Interest from 12/15/2011 to 12/20/2011 1,319.69 Total Sources $3,520,740.59 Uses Of Funds Deposit to Crossover Escrow Fund _ 3,465,396.74 Total Underwriter's Discount (1.244 %) 43,540.00 Costs of Issuance 9,270.00 _ _ Rounding Amount 2,533.85 Total Uses $3,520,740.59 Flow of Funds Detail State and Local Government Series (SLGS) rates for 11/22/2011 Date of OMP Candidates Crossover Escrow Fund Solution Method Net Funded Total Cost of Investments $3,465,396.74 Interest Earnings @ 0.345% 34,655.76 Total Draws $3,500,052.50 Issues Refunded And Call Dates 06aold 12/15/2014 PV Analysis Summary (Net to Net) Net PV Cashflow Savings @ 2.545 %(Bond Yield) 160,514.37 Contingency or Rounding Amount 2,533.85 Net Present Value Benefit $163,048.22 Net PV Benefit / $3,215,000 Refunded Principal 5.071% Net PV Benefit / $3,500,000 Refunding Principal __ 4.659% Bond Statistics Average Life _ 13.435 Years Average Coupon 2.8978461% Net Interest Cost (NIC) 2.9491400% Bond Yield for Arbitrage Purposes 2.5451225% _ True Interest Cost (TIC) 2.9321729% _ _ All Inclusive Cost (AIC) 2.9568389% Ref 5 i 2006A i 11/22/2011 i 12:48 PM Northland Securities Public Finance Page 6 1 C Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011B 2006A Refunding Debt Service Comparison Date Total P +I PCF Existing D/S Net New D/S Old Net D/S Savings 12/15/2012 95,017.50 (95,017.50) 216,280.00 213,746.15 216,280.00 2,533.85 12/15/2013 95,017.50 (95,017.50) 223,680.00 223,680.00 223,680.00 - 12/15/2014 95,017.50 (3,310,017.50) 3,435,680.00 220,680.00 220,680.00 - 12/15/2015 215,017.50 - - 215,017.50 227,680.00 12,662.50 12/15/2016 227,617.50 - - 227,617.50 239,280.00 11,662.50 12/15/2017 224,917.50 - - 224,917.50 235,030.00 10,112.50 12/15/2018 227,217.50 - - 227,217.50 _ 240,780.00 13,562.50 12/15/2019 234,417.50 - - 234,417.50 246,105.00 11,687.50 12/15/2020 241,417.50 - - 241,417.50 256,005.00 14,587.50 12/15/2021 253,137.50 - - 253,137.50 265,200.00 12,062.50 12/15/2022 254,287.50 - - 254,287.50 268,675.00 14,387.50 12/15/2023 265,057.50 - - 265,057.50 276,475.00 11,417.50 12/15/2024 280,182.50 - 280,182.50 _ 293,600.00 13,417.50 12/15/2025 289,485.00 - 289,485.00 299,600.00 10,115.00 12/15/2026 293,160.00 - 293,160.00 304,925.00 11,765.00 12/15/2027 301,320.00 - - 301,320.00 314,575.00 13,255.00 12/15/2028 308,670.00 - - 308,670.00 323,325.00 14,655.00 12/15/2029 315,030.00 - - 315,030.00 326,175.00 11,145.00 _ 12/15/2030 320,910.00 - - 320,910.00 333,350.00 12,440.00 12/15/2031 325,710.00 - 325,710.00 339,625.00 13,915.00 Total $4,862,607.50 (3,500,052.50) $3,875,640.00 $5,235,661.15 $5,451,045.00 $215,383.85 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings ..................... 160,514.37 Net PV Cashflow Savings @ 2.545 %(Bond Yield) ..... 160,514.37 Contingency or Rounding Amount .................... 2,533.85 Net Present Value Benefit $163,048.22 Net PV Benefit / $3,516,084.38 PV Refunded Debt Service 4.637% —. - - - - Net PV Benefit / $3,215,000 Refunded Principal... -- ------._..--_.— 5.071% Net PV Benefit / $3,500,000 Refunding Principal- _ 4.659% Refunding Bond Information Refunding Dated Date 12/15/2011 Refunding Delivery Date 12/20/2011 Ref 5 1 2006A 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Page 7 1 ■ Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011B 2006A Refunding Debt Service Schedule Date Principal Coupon Interest Total P +I Fiscal Total 12/20/2011 - - 06/15/2012 47,508.75 47,508.75 - 12/15/2012 47,508.75 47,508.75 95,017.50 06/15/2013 47,508.75 47,508.75 - 12/15/2013 47,508.75 47,508.75 95,017.50 06/15/2014 47,508.75 47,508.75 - 12/15/2014 47,508.75 47,508.75 95,017.50 06/1512015 - - 47,508.75 47,508.75 - 12/15/2015 120,000.00 2.000% 47,508.75 167,508.75 215,017.50 06/15/2016 - - 46,308.75 46,308.75 - 12/15/2016 135,000.00 2.000% 46,308.75 181,308.75 227,617.50 06/15/2017 - 44,958.75 44,958.75 12/15/2017 135,000.00 2.000% 44,958.75 179,958.75 224,917.50 06/15/2018 - - 43,608.75 43,608.75 - 12/15/2018 140,000.00 2.000% 43,608.75 183,608.75 227,217.50 06/15/2019 - - 42,208.75 42,208.75 - 12/15/2019 150,000.00 2.000% 42,208.75 192,208.75 234,417.50 06/15/2020 - 40,708.75 40,708.75 - 12/15/2020 160,000.00 2.050% 40,708.75 200,708.75 241,417.50 06/15/2021 - - 39,068.75 39,068.75 - 12/15/2021 175,000.00 2.200% 39,068.75 214,068.75 253,137.50 06/15/2022 - - 37,143.75 37,143.75 - 12/15/2022 180,000.00 2.350% 37,143.75 217,143.75 254,287.50 06/15/2023 - 35,028.75 35,028.75 _ 12/15/2023 195,000.00 2.500% 35,028.75 230,028.75 265,057.50 06/15/2024 - - 32,591.25 32,591.25 - 12/15/2024 215,000.00 2.650% 32,591.25 247,591.25 280,182.50 06/15/2025 - - 29,742.50 29,742.50 - 12/15/2025 230,000.00 2.750% 29,742.50 259,742.50 289,485.00 06/15/2026 - 26,580.00 26,580.00 - 12/15/2026 240,000.00 2.850% 26,580.00 266,580.00 293,160.00 06/15/2027 - - 23,160.00 23,160.00 - 12/15/2027 255,000.00 3.000% 23,160.00 278,160.00 301,320.00 06/15/2028 - - 19,335.00 19,335.00 - 12/15/2028 270,000.00 3.200% 19,335.00 289,335.00 308,670.00 06/15/2029 - - 15,015.00 15,015.00 12/15/2029 285,000.00 3.200% 15,015.00 300,015.00 315,030.00 06/15/2030 - - 10,455.00 10,455.00 - 12/15/2030 300,000.00 3.400% 10,455.00 310,455.00 320,910.00 06/15/2031 - - 5,355.00 5,355.00 - 12/15/2031 315,000.00 3.400% 5,355.00 320,355.00 325,710.00 Total $3,500,000.00 $1,362,607.50 $4,862,607.50 - Dated 12/15/2011 Delivery Date - 12/20/2011 First Coupon Date 6/15/2012 First available call date _ 12/15/2020 Call Price 100.0000000% Accrued Interest from 12/15/2011 to 12/20/2011 1,319.69 Bond Year Dollars _ _ — $47,021.39 - - -- Average Life --- - - - - -- -----------_..__ 13.435 Years Average Coupon 2.8978461 Net Interest Cost (NIC) 2.9491400% _ True Interest Cost (TIC) 2.9321729% Bond Yield for Arbitrage Purposes 2.5451225% Net Interest Cost _ 2.8472999% Weighted Average Maturity 13.391 Years Ref 5 12006A 1 11122/2011 1 12:48 PM Northland Securities Public Finance Page 8 1 Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011 B 2006A Refunding Total Prior Net Debt Service Fiscal Date Principal Coupon Interest Total P +I Net D/S Total 12/20/2011 - - - - - 06/15/2012 - - 75,640.00 75,640.00 75,640.00 - 12/15/2012 65,000.00 4.000% 75,640.00 140,640.00 140,640.00 216,280.00 06/15/2013 - - 74,340.00 74,340.00 74,340.00 - 12/15/2013 75,000.00 4.000% 74,340.00 149,340.00 149,340.00 223,680.00 06/15/2014 - - 72,840.00 72,840.00 72,840.00 _ - 12/15/2014 75,000.00 4.000% 72,840.00 147,840.00 147,840.00 220,680.00 06/15/2015 - - 71,340.00 71,340.00 71,340.00 - 12/15/2015 85,000.00 4.000% 71,340.00 156,340.00 156,340.00 227,680.00 06/15/2016 - - 69,640.00 69,640.00 69,640.00 - 12/15/2016 100,000.00 4.250% 69,640.00 169,640.00 169,640.00 239,280.00 06/15/2017 - - 67,515.00 67,515.00 67,515.00 - 12/15/2017 100,000.00 4.250% 67,515.00 167,515.00 167,515.00 235,030.00 06/15/2018 - - 65,390.00 65,390.00 65,390.00 - 12/15/2018 110,000.00 4.250% 65,390.00 175,390.00 175,390.00 240,780.00 06/15/2019 - - 63,052.50 63,052.50 63,052.50 - 12/15/2019 120,000.00 4.250% 63,052.50 183,052.50 183,052.50 246,105.00 06/15/2020 - - 60,502.50 60,502.50 60,502.50 - _ 12/15/2020 135,000.00 4.300% 60,502.50 195,502.50 195,502.50 256,005.00 06/15/2021 - - 57,600.00 57,600.00 57,600.00 - 12/15/2021 150,000.00 4.350% 57,600.00 207,600.00 207,600.00 265,200.00 06/15/2022 - - 54,337.50 54,337.50 54,337.50 - 12/15/2022 160,000.00 4.500% 54,337.50 214,337.50 214,337.50 268,675.00 06/15/2023 - - 50,737.50 50,737.50 50,737.50 - 12/15/2023 175,000.00 4.500% 50,737.50 225,737.50 225,737.50 276,475.00 06/15/2024 - - 46,800.00 46,800.00 46,800.00 - 12/15/2024 200,000.00 4.500% 46,800.00 246,800.00 246,800.00 293,600.00 06/15/2025 - - 42,300.00 42,300.00 42,300.00 - 12/15/2025 215,000.00 4.500% 42,300.00 257,300.00 257,300.00 299,600.00 06/15/2026 - - 37,462.50 37,462.50 37,462.50 - 12/15/2026 230,000.00 _ 4.500% 37,462.50 267,462.50 267,462.50 304,925.00 06/15/2027 - - 32,287.50 32,287.50 32,287.50 - 12/15/2027 250,000.00 4.500% 32,287.50 282,287.50 282,287.50 314,575.00 06/15/2028 - - 26,662.50 26,662.50 26,662.50 - 12/15/2028 270,000.00 4.500% 26,662.50 296,662.50 296,662.50 323,325.00 06/15/2029 - - 20,587.50 20,587.50 20,587.50 - 12/15/2029 285,000.00 4.500% 20,587.50 305,587.50 305,587.50 326,175.00 06/15/2030 - - 14,175.00 14,175.00 14,175.00 - 12/15/2030 305,000.00 4.500% 14,175.00 319,175.00 319,175.00 333,350.00 06/15/2031 - - 7,312.50 7,312.50 7,312.50 - 12/15/2031 325,000.00 4.500% 7,312.50 332,312.50 332,312.50 339,625.00 Total $3,430,000.00 - $2,021,045.00 $5,451,045.00 $5,451,045.00 - Sources Of Funds Total Sources Uses Of Funds Total Uses - Ref 5 1 2006A 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Page 9 1 Final City of Prior Lake, Minnesota G.O. Bonds of 2006A Debt Service To Maturity And To Call Refunded Interest to Refunded Date Bonds Call D/S To Call Principal Coupon Interest D/S Fiscal Total 06/1512012 71,340.00 71,340.00 - 71,340.00 71,340.00 - 12/15/2012 71,340.00 71,340.00 4.000% 71,340.00 71,340.00 142,680.00 06/15/2013 71,340.00 71,340.00 - 71,340.00 71,340.00 - 12/15/2013 71,340.00 71,340.00 4.000% 71,340.00 71,340.00 142,680.00 06/15/2014 71,340.00 71,340.00 - 71,340.00 71,340.00 - 12/15/2014 3,215,000.00 71,340.00 3,286,340.00 4.000% 71,340.00 71,340.00 142,680.00 06/15/2015 - - 71,340.00 71,340.00 - 12/15/2015 85,000.00 4.000% 71,340.00 156,340.00 227,680.00 06/15/2016 - - 69,640.00 69,640.00 - 12/15/2016 100,000.00 4.250% 69,640.00 169,640.00 239,280.00 06/15/2017 - - 67,515.00 67,515.00 - 12/15/2017 100,000.00 4.250% 67,515.00 167,515.00 235,030.00 06/15/2018 - - 65,390.00 65,390.00 - 12/15/2018 110,000.00 4.250% 65,390.00 175,390.00 240,780.00 06/15/2019 - - 63,052.50 63,052.50 - 12/15/2019 120,000.00 4.250% 63,052.50 183,052.50 246,105.00 06/15/2020 - - 60,502.50 60,502.50 - 12/15/2020 135,000.00 4.300% 60,502.50 195,502.50 256,005.00 06/15/2021 - - 57,600.00 57,600.00 - 12/15/2021 150,000.00 4.350% 57,600.00 207,600.00 265,200.00 06/15/2022 - - 54,337.50 54,337.50 - 12/15/2022 160,000.00 4.500% 54,337.50 214,337.50 268,675.00 06/15/2023 - - 50,737.50 50,737.50 - 12/15/2023 175,000.00 4.500% 50,737.50 225,737.50 276,475.00 06/15/2024 - - 46,800.00 46,800.00 - 12/15/2024 200,000.00 4.500% 46,800.00 246,800.00 293,600.00 06/15/2025 - - 42,300.00 42,300.00 - 12/15/2025 215,000.00 4.500% 42,300.00 257,300.00 299,600.00 06/15/2026 - - 37,462.50 37,462.50 - 12/15/2026 230,000.00 4.500% 37,462.50 267,462.50 304,925.00 06/15/2027 - - 32,287.50 32,287.50 - 12/15/2027 250,000.00 4.500% 32,287.50 282,287.50 314,575.00 06/15/2028 - - 26,662.50 26,662.50 - 12/15/2028 270,000.00 4.500% 26,662.50 296,662.50 323,325.00 06115/2029 - - 20,587.50 20,587.50 - 12/15/2029 __ 285,000.00 4.500% 20,587.50 305,587.50 326,175.00 _ 06/15/2030 - - 14,175.00 14,175.00 - 12/15/2030 305,000.00 4.500% 14,175.00 319,175.00 333,350.00 06/15/2031 - - 7,312.50 7,312.50 - 12/15/2031 325,000.00 4.500% 7,312.50 332,312.50 339,625.00 Total $3,215,000.00 $428,040.00 $3,643,040.00 $3,215,000.00 - $2,003,445.00 $5,218,445.00 - Yield Statistics Average Life 13.941 Years Weighted Average Maturity (Par Basis) 13.927 Years Average Coupon _ 4.4699799% Refunding Bond Information Refunding Dated Date 12/15/2011 Refunding Delivery Date _ 12/20/2011 _ 06aold I SINGLE PURPOSE i 11/2212011 i 12:48 PM Northland Securities Public Finance Page 10 ■ Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011B 2006A Refunding Crossover Escrow Fund Cashflow Date Principal Rate Interest Receipts Disbursements Cash Balance 12/20/2011 - - - 06/15/2012 41,825.00 0.040% 5,683.68 12/15/2012 41,637.00 0.090% 5,871.94 06/15/2013 41,673.00 0.140% 5,834.98 12/15/2013 41,703.00 0.220% 5,805.81 06/15/2014 41,749.00 0.290% 5,759.94 0.74 47,508.68 47,508.94 47,507.98 47,508.81 47,508.94 - 47,508.75 47,508.75 47,508.75 47,508.75 47,508.75 0.74 0.67 0.86 0.09 0.15 0.34 12/15/2014 3,256,809.00 0.350% 5,699.41 3,262,508.41 3,262,508.75 - Total $3,465,396.00 - $34,655.76 $3,500,052.50 $3,500,052.50 - Investment Parameters Investment Model [PV, GIC, or Securities] _ Securities Default investment yield target Bond Yield Cash Deposit 0.74 Cost of Investments Purchased with Bond Proceeds 3,465,396.00 Total Cost of Investments $3,465,396.74 Target Cost of Investments at bond yield $3,254,013.70 Actual positive or (negative) arbitrage (211,383.04) _ Yield to Receipt _ _ 0.3453336% Yield for Arbitrage Purposes 2.5451225% State and Local Government Series (SLGS) rates for 11/22/2011 Ref 5 1 2006A 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Page 11 Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011B 2006A Refunding Crossover Escrow Summary Cost Crossover Escrow Cash Deposit 0.74 Cost of Investments Purchased with Bond Proceeds 3,465,396.00 Total Cost of Investments $3,465,396.74 Date 1 2/20/2011 Ref 5 1 2006A 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Page 12 Par Principal +Accrued Maturity Type Coupon Yield Price Amount Cost Interest = Total Cost Crossover Escrow 06/15/2012 SLGS -CI 0.040% 0.040% 100 - .000000 41,825 41,825.00 - 41,825.00 12/15/2012 SLGS -CI 0.090% 0.090% 100 - .000000 41,637 41,637.00 - 41,637.00 06/15/2013 SLGS -NT 0.140% 0.140% 100 - .000000 41,673 41,673.00 - 41,673.00 12/15/2013 SLGS -NT 0.220% 0.220% 100 - .000000 41,703 41,703.00 - 41,703.00 06/15/2014 SLGS -NT 0.290% 0.290% 100- .000000 41,749 41,749.00 - 41,749.00 12/15/2014 SLGS -NT 0.350% 0.350% 100 - .000000 3,256,809 3,256,809.00 - 3,256,809.00 Subtotal - - - $3,465,396 $3,465,396.00 - $3,465,396.00 Total - - - $3,465,396 $3,465,396.00 - $3,465,396.00 Crossover Escrow Cash Deposit 0.74 Cost of Investments Purchased with Bond Proceeds 3,465,396.00 Total Cost of Investments $3,465,396.74 Date 1 2/20/2011 Ref 5 1 2006A 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Page 12 Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011B 2006A Refunding Primary Purpose Fund Proof Of Yield @ 0.3453336% Cumulative Date Cashflow PV Factor Present Value PV 12/20/2011 - 1.000000ox - - 06/15/2012 47,508.68 0.9983241x 47,429.06 47,429.06 12115/2012 47,508.94 0.9966033x 47,347.57 94,776.63 06/15/2013 47,507.98 0.9948855x 47,265.00 142,041.63 12/15/2013 47,508.81 0.9931706x 47,184.35 189,225.99 06/15/2014 47,508.94 0.9914587x 47,103.15 236,329.14 12/1 3,2 0.9897497x 3,229,066.86 3,465,396.00 Total $3,500,051.76 - $3,465,396.00 - Composition Of Initial Deposit Cost of Investments Purchased with Bond Proceeds 3,465,396.00 Adjusted Cost of Investments 3 ,465,396.00 Ref 5 12006A 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Page 13 PD F 4144 -2 Final Department of the Treasury STATE AND LOCAL GOVERNMENT SERIES Bureau of the Public Debt TIME DEPOSIT (Revised July 1999) OMB No. 1535 -0092 The United States Treasury Securities - State and Local Governement Series subscribed for on PD F 4144 and account information furnished on PD F 4144 -1 to which this schedule is attached and incorporated, are requested to be issued and held in book -entry accounts on the books of the Department of the Treasury. PRINCIPAL AMOUNT INTEREST RATE ISSUE DATE (MMDDYY) MATURITY DATE (MMDDYY) FIRST INTEREST' PAYMENT DATE (MMDDYY) 41,825 0.040% 12/20/2011 6/15/2012 41,637 0.090% 12/20/2011 12/15/2012 41,673 0.140% 12/20/2011 6/15/2013 6/1512012 41,703 0.220% 12/20/2011 12/15/2013 6/1512012 41,749 0.290% 12/20/2011 6/1512014 6/1512012 3,256,809 0.350% 12/20/2011 12/1512014 6/15/2012 'A first interest payment date must be specked for interest bearing securities with a maturity date greater than one year. Taxpayer Identification Number: Name of State or Local Government Body: Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011B 2006A Refunding Net Debt Service Schedule Date Principal Coupon Interest Total P +I PCF Existing D/S Net New D/S 12/15/2012 - - 95,017.50 95,017.50 (95,017.50) 216,280.00 213,746.15 12/15/2013 - - 95,017.50 95,017.50 (95,017.50) 223,680.00 223,680.00 12/15/2014 - - 95,017.50 95,017.50 (3,310,017.50) 3,435,680.00 220,680.00 12/1512015 120,000.00 2.000% 95,017.50 215,017.50 - 215,017.50 12/15/2016 135,000.00 2.000% 92,617.50 227,617.50 - - 227,617.50 12/15/2017 135,000.00 2.000% 89,917.50 224,917.50 _ - - 224,917.50 12/15/2018 140,000.00 2.000% 87,217.50 227,217.50 - - 227,217.50 12/15/2019 150,000.00 2.000% 84,417.50 234,417.50 - - 234,417.50 12/15/2020 160,000.00 2.050% 81,417.50 241,417.50 - - 241,417.50 12/15/2021 175,000.00 2.200% 78,137.50 253,137.50 - 253,137.50 12/1512022 180,000.00 2.350% 74,287.50 254,287.50 - - 254,287.50 12/15/2023 195,000.00 2.500% 70,057.50 265,057.50 - - 265,057.50 12/15/2024 215,000.00 2.650% 65,182.50 280,182.50 - - 280,182.50 12/15/2025 230,000.00 2.750% 59,485.00 289,485.00 - - 289,485.00 12/15/2026 240,000.00 2.850% 53,160.00 293,160.00 - - 293,160.00 12/15/2027 255,000.00 3.000% 46,320.00 301,320.00 - 301,320.00 12/15/2028 270,000.00 3.200% 38,670.00 308,670.00 - - 308,670.00 12/15/2029 285,000.00 3.200% 30,030.00 315,030.00 - - 315,030.00 12/15/2030 300,000.00 3.400% 20,910.00 320,910.00 - 320,910.00 12/15/2031 315,000.00 3.400% 10,710.00 3 2 5, 710.00 - 325,710.00 Total $3,500,000.00 - $1,362,607.50 $4,862,607.50 (3,500,052.50) $3,875,640.00 $5,235,661.15 Ref 5 1 2006A 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Page 14 1 Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011 B $550,000 New Money Project Summary Dated 12/15/20111 Delivered 12/20/2011 Sources Of Funds Par Amount of Bonds $550,000.00 Reoffering Premium _ 11,199.70 Accrued Interest from 12/15/2011 to 12/20/2011 157.78 Total Sources $561,357.48 Uses Of Funds Deposit to Project Construction Fund 535,000.00 Deposit to Capitalized Interest (CIF) Fund 11,202.22 Costs of Issuance 9,000.00 Total Underwriters Discount (1.244 %) 6,842.00 Deposit to Debt Service Fund __ 157.78 Rounding Amount (844.52) _ Total Uses $561,357 Flow of Funds Detail State and Local Government Series (SLGS) rates for Date of OMP Candidates Project Construction Fund Solution Method _ Net Funded Total Cost of Investments $535,000.00 Total Draws $535,000.00 Capitalized Interest Fund Solution Method Net Funded Original Bond Proceeds 11,202.22 Accrued Interest _ __ 157.78 Total Draws $11,360.00 Bond Statistics Average Life _ 6.695 Years Average Coupon _ 2.1068004% Net Interest Cost (NIC) 1.9884606% Bond Yield for Arbitrage Purposes _ 2 .5451225% True Interest Cost (TIC) _ 1.9717966% All Inclusive Cost (AIC) _ _ 2.2377674% Ref 5 1 $550,000 New 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Page 15 1 Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011 B $550,000 New Money Debt Service Schedule Date Principal Coupon Interest Total P +I Fiscal Total 12/20/2011 - - - - - 06/15/2012 - - 5,680.00 5,680.00 - 12/15/2012 - - 5,680.00 5,680.00 11,360.00 06/15/2013 - - 5,680.00 5,680.00 - 12/15/2013 45,000.00 2.000% 5,680.00 50,680.00 56,360.00 06/15/2014 - - 5,230.00 5,230.00 - 12/15/2014 50,000.00 2.000% 5,230.00 55,230.00 60,460.00 06/15/2015 - - 4,730.00 4,730.00 - 12/15/2015 55,000.00 2.000% 4,730.00 59,730.00 64,460.00 06/15/2016 - - 4,180.00 4,180.00 - 12/15/2016 55,000.00 2.000% 4,180.00 59,180.00 63,360.00 06/15/2017 - - 3,630.00 3,630.00 - 12/15/2017 55,000.00 2.000% 3,630.00 58,630.00 62,260.00 06/15/2018 - - 3,080.00 3,080.00 - 12/15/2018 55,000.00 2.000% 3,080.00 58,080.00 61,160.00 06/15/2019 - - 2,530.00 2,530.00 - 12/15/2019 55,000.00 2.000% 2,530.00 57,530.00 60,060.00 06/15/2020 - - 1,980.00 1,980.00 - 12/15/2020 60,000.00 2.050% 1,980.00 61,980.00 63,960.00 06/15/2021 - - 1,365.00 1,365.00 - 12/15/2021 60,000.00 2.200% 1,365.00 61,365.00 62,730.00 06/15/2022 - - 705.00 705.00 - 12/15/2022 60,000.00 2.350% 705.00 60,705.00 61,410.00 Total $550,000.00 - $77,580.00 $627,580.00 - Dated 12/15/2011 Delivery Date 12/20/2011 Fir Coupon Date _ _ 6/15/2012 First available call date 12/15/2020 Call Price 100.0000000% Accrued Interest from 12/15/2011 to 12/20/2011 _ _ 157.78 Bond Year Dollars $3,682.36 Average Life _ _ _ 6.695 Years Average Coupon 2.1068004% Net Interest Cost (NIC) _ 1.9884606% True Interest Cost (TIC) 1.9717966% Bond Yield for Arbitrage Purposes 2.5451225% Net Interest Cost 1.7734818% Weighted Average Maturity _ 6.654 Years _ Ref 5 1 $550,000 New 1 11122/2011 1 12:48 PM Northland Securities Public Finance Page 16 Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011 B $550,000 New Money Net Debt Service Schedule Net New Date Principal Coupon Interest Total P +I CIF D/S 12/15/2012 - - 11,360.00 11,360.00 (11,360.00) - 12/15/2013 45,000.00 2.000% 11,360.00 56,360.00 - 56,360.00 12/15/2014 50,000.00 2.000% 10,460.00 60,460.00 - 60,460.00 12/15/2015 55,000.00 2.000% 9,460.00 64,460.00 - 64,460.00 12/15/2016 55,000.00 2.000% 8,360.00 63,360.00 - 63,360.00 12/15/2017 55,000.00 2.000% 7,260.00 62,260.00 - 62,260.00 12/15/2018 55,000.00 2.000% 6,160.00 61,160.00 - 61,160.00 12/15/2019 55,000.00 2.000% 5,060.00 60,060.00 - 60,060.00 12/15/2020 60,000.00 2.050% 3,960.00 63,960.00 - 63,960.00 12115/2021 60,000.00 2.200% 2,730.00 62,730.00 - 62,730.00 12/15/2022 60,000.00 2.350% 1,410.00 61,410.00 - 61,410.00 Total $550,000.00 - $77,580.00 $627,580.00 (11,360.00) $616,220.00 Ref 5 1 $550,000 New 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Page 17 1 Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011 B $1,730,000 New Money Project Summary Dated 12/15/20111 Delivered 12/20/2011 Sources Of Funds Par Amount of Bonds $1,730,000.00 Reoffering Premium 35,547.40 Accrued Interest from 12/15/2011 to 12/20/2011 495.94 Total Sources $1,766,043.3 Uses Of Funds Deposit to Project Construction Fund 1,700,000.00 Deposit to Capitalized Interest (CIF) Fund 35,211.56 Total Underwriter's Discount (1.244 %) 21,521.20 Costs of Issuance 10,500.00 Deposit to Debt Service F und – - -- - 495.94 — -- - -- Rounding Amount - (1,685.36) _ _ Total Uses $1,766,043.34 Flow of Funds Detail State and Local Government Series (SLGS) rates for Date of OMP Candidates Project Construction Fund Solution Method Net Funded Total Cost of Investments $1,700,000.00 Total Draws $1,700,000.00 Capitalized Interest Fund Solution Method Net Funded Original Bond Proceeds _ 35,211.56 Accrued Interest _ 495.94 Total Draws $35,707.50 Bond Statistics Average Life 6.619 Years Average Coupon 2.1057819% Net Interest Cost (NIC) 1.9832927% Bond Yield for Arbitrage Purposes _ _ 2.5451225% True Interest Cost (TIC) 1.9663148% All Inclusive Cost (AIC) 2.0652264% Ref 5 i $1,730,000 New i 11122/2011 i 12:48 PM Northland Securities Public Finance Page 18 r I Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011B $1,730,000 New Money Debt Service Schedule Date Principal Coupon Interest Total P +I Fiscal Total 12/20/2011 - - - - - 06/15/2012 - - 17,853.75 17,853.75 - 12/15/2012 - - 17,853.75 17,853.75 35,707.50 06/15/2013 - - 17,853.75 17,853.75 - 12/15/2013 160,000.00 2.000% 17,853.75 177,853.75 195,707.50 06/15/2014 - - 16,253.75 16,253.75 _ 12/15/2014 165,000.00 2.000% 16,253.75 181,253.75 197,507.50 06/15/2015 - - 14,603.75 14,603.75 - 12/15/2015 165,000.00 2.000% 14,603.75 179,603.75 194,207.50 06/15/2016 - - 12,953.75 12,953.75 - 12/15/2016 170,000.00 2.000% 12,953.75 182,953.75 195,907.50 06/15/2017 - - 11,253.75 11,253.75 - 12/15/2017 170,000.00 2.000% 11,253.75 181,253.75 192,507.50 06/15/2018 - - 9,553.75 9,553.75 - 12/15/2018 175,000.00 2.000% 9,553.75 184,553.75 194,107.50 06/15/2019 - - 7,803.75 7,803.75 - 12/15/2019 175,000.00 2.000% 7,803.75 182,803.75 190,607.50 06/15/2020 - - 6,053.75 6,053.75 - 12/15/2020 180,000.00 2.050% 6,053.75 186,053.75 192,107.50 06/15/2021 - - 4,208.75 4,208.75 - 12/15/2021 185,000.00 2.200% 4,208.75 189,208.75 193,417.50 06/15/2022 - - 2,173.75 2,173.75 - 12/15/2022 185,000.00 2.350% 2,173.75 187,173.75 189,347.50 Total $1,730,000.00 - $241,132.50 $1,971,132.50 - Dated 12/15/2011 Delivery Date 12/20/2011 _ _ First Coupon Date 6/15/2012 First available call date 12/15/2020 Call Price 100.0000000% Accrued Interest from 12/15/2011 to 12/20/2011 495.94 Bond Year Dollars _ $11,450.97 Average Life 6.619 Years Average Coupon 2.1057819% Net Interest Cost (NIC) 1.9832927% True Interest Cost (TI 1.9663148% Bond Yield for Arbitrage Purposes 2.5451225% Net Interest Cost 1.7659813% Weighted Average Maturity 6.578 Years Ref 5 1 $1,730,000 New 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Page 19 Final City of Prior Lake, Minnesota G.O. Bonds, Series 2011B $1,730,000 New Money Net Debt Service Schedule Date Principal Coupon Interest Total P +I CIF Net New D/S 12/15/2012 - - 35,707.50 35,707.50 (35,707.50) - 12/15/2013 160,000.00 2.000% 35,707.50 195,707.50 - 195,707.50 12/15/2014 165,000.00 2.000% 32,507.50 197,507.50 - 197,507.50 12/15/2015 165,000.00 2.000% 29,207.50 194,207.50 - 194,207.50 12/15/2016 170,000.00 2.000% 25,907.50 195,907.50 - 195,907.50 12/15/2017 170,000.00 2.000% 22,507.50 192,507.50 - 192,507.50 12/15/2018 175,000.00 2.000% 19,107.50 194,107.50 - 194,107.50 12/15/2019 175,000.00 2.000% 15,607.50 190,607.50 - 190,607.50 12/15/2020 180,000.00 2.050% 12,107.50 192,107.50 - 192,107.50 12/15/2021 185,000.00 2.200% 8,417.50 193,417.50 - 193,417.50 12/15/2022 185,000.00 2.350% 4,347.50 189,347.50 - 189,347.50 Total $1,730,000.00 - $241,132.50 $1,971,132.50 (35,707.50) $1,935,425.00 Ref 5 1 $1,730,000 New 1 11/22/2011 1 12:48 PM Northland Securities Public Finance Page 20