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CITY COUNCIL AGENDA REPORT
MEETING DATE: MARCH 23, 2015
AGENDA#: 9A
PREPARED BY: JERILYN ERICKSON, FINANCE DIRECTOR
PRESENTED BY: JERILYN ERICKSON
AGENDA ITEM: CONSIDER APPROVAL OF A RESOLUTION(S)AUTHORIZING THE NEGOTI-
ATED SALE OF GENERAL OBLIGATION BONDS, SERIES 2015A& 2015B
DISCUSSION: Introduction
The City's fiscal consultants, Steve Mattson and Tammy Omdal, from Northland
Securities Inc., will be present during the Council meeting to request Council ap-
proval for the negotiated sale of general obligation bonds in the amount $15.2 mil-
lion for the following projects and the refunding of the 2007A Water Treatment Fa-
cility bonds:
• TH13/ 150th Street
• 2015 Reconstruction Project
• Mushtown / Maple/ Panama
• Credit River Road
Two resolutions are attached. The first approves the issuance of general obligation
bonds, 2015A. The second approves the issuance of taxable general obligation
bonds, series 2015B.The resolutions include a not-to-exceed amount of$10 million
and $5.2 million, respectively, to provide flexibility in the amount to bond based on
any last minute change orders, change in funding, rate fluctuation, etc.
History
The following table includes significant dates related to the new projects included
in this bond issue:
Council TH13/150th 2015 Recon Mushtown/ Credit
Action Maple/ River
Panama Road
Feasibility N/A 11/10/2014 11/12/2013, 11/24/2014
Report Res 14-177 Res 13-168 Res 14-183
Accepted
Public N/A 11/24/2014 12/09/2013 & 12/22/2014
Hearing for 03/10/2014
Improvement
Improvement N/A 11/24/2014, 03/10/2014, 12/22/2014
Ordered Res 14-182 Res 14-039 Res 14-202
Contract Cooperative 03/09/2015, 02/09/2015, Award in
Awarded Agreement with Res 15-140 Res 15-123 April/May?
City of Savage
Res 14-134
Res 14-139
Res 14-160
Current Circumstances
in previous sales the Council has authorized negotiated bond sales directly from
Northland Securities. The current economic market climate is favorable for the is-
suance of low cost bonds due to very low interest rates although rates have fluctu-
ated during recent weeks. Based upon current market conditions Northland Secu-
rities anticipates the actual sale in mid to late April, 2015 but will delay it if it ap-
pears that rates will be declining in the near future. Mr. Mattson and Ms. Omdal
will review the market conditions with the Mayor, City Manager and Finance Direc-
tor prior to marketing the bonds. Ultimately, the final purchase price and interest
rate will be subject to Council approval.
The structure of the bond issue itself will be based upon the following components
in rounded amounts for the new projects:
THIV 2015 Recon Mushtown Credit TOTAL
150th I Maple I River Road
Panama
Estimated $3,161,000 $4,201,957 $1,939,000 $2,660,277 $11,962,234
Project Costs
Less: <100,000> < 803,424> 0 <309,745> < 1,213,169>
Water Fund
Contribution
Less: <100,000> < 837,461> 0 <300,387> < 1,237,848>
Sewer Fund
Contribution
Less: < 60,000> < 180,884> <61,817> <16,421> <319,122>
Water Quality
Fund
Contribution
Less: 0 0 <196,600> <939,106> <1,135,706>
Think Fund
Less: 0 0 <249,930> 0 <249,930>
Grant Funding
Less: Capital 0 0 <62,356> 0 <62,356>
Park Fund
Less: Street <150,000> 0 <122,537> 0 <122,537>
Oversizing
Fund
Less: State- <500,000> 0 0 0 <500,000>
Aid
Project Costs $2,251,000 $2,380,188 $1,245,760 $1,094,618 $6,971,566
to Bond
Capitalized 181,693
Interest
Bond Issuance 126,830
Costs
Rounding for <5,089>
$5000
Increments
Total New $7,275,000
Money(')
2007 Bond 5,350,000
Refunding(2)
Total Bond $12,625,000
Issue
')Costs shown are for Scenario A(see details below);(2)Assumes partial refunding of 2007A;
Northland Securities has analyzed the combined use of tax exempt and taxable
bonds to achieve maximum interest savings on the new money portion (for pro-
jects) and the refunding portion. In addition, Northland Securities and City staff
have considered a revised debt service strategy in order to stabilize the debt ser-
vice levy over the next five years. Both of these topics will be discussed in detail
during the council workshop on March 23.
Attached are the bond analysis worksheets from Northland Securities Inc. that pro-
vides additional detail with respect to the estimated cost and net effective interest
rates for this bond issue (new money portion), financing costs, debt service princi-
pal/interest payments, projected assessment stream and annual special tax levies
necessary to amortize this bond issue, and other miscellaneous information.
Scenario A:
• Amortize new money portion over 15-year period;
Scenario B:
0 Amortize new money portion over 10-year period;
The 2007A Water Treatment Facility bond is funded by Water Fund revenues, not
property tax levies. If the 2007A bond issue is refunded as part of the 2015 bond
issuance, the refunding portion will continue to be funded by Water Fund reve-
nues.
It should be noted that the 2015B resolution does provide flexibility in refunding the
full amount of the 2007A (versus the partial refunding of$5.35M referred to earlier)
if interest rates decrease.
The City's bond counsel, Briggs & Morgan, has reviewed all of the necessary bond
documents. Northland Securities has prepared the attached resolution providing
for the issuance and sale of the general obligation bonds.
During the week of April 13, 2015 the City Manager, Finance Director, Mr. Mattson
and Ms. Omdal will participate in a bond rating call with the rating agency. The City
currently has AA+ from Standard & Poor's and an Aa2 bond rating from Moody's
Investor Rating Services.
Conclusion
The City Council should consider adopting the attached resolution which provides
for the issuance and sale of bonds.
ISSUES: The projects that are included in this bond issue are in varying stages. The coop-
erative agreement with the City of Savage was approved for the TH13/1501h Street
project and right-of-way acquisition is underway. The construction contracts for
the 2015 Reconstruction project and the Mushtown/Maple/Panama projects have
been awarded. The Credit River Road project will be bid and contract awarded in
late April/May.
City staff and Northland Securities will be presenting a new debt service strategy
and the corresponding impacts for the Council to consider and provide feedback
during the Council workshop. The primary purpose of the revised debt service
strategy is to stabilize the debt service levy over the next five years.
FINANCIAL The size of the bond issue was originally anticipated in the 2015-2019 CIP to be
IMPACT: approximately $10 million with tax levy supporting $4.2 million. Based on these
figures, the estimated annual tax levy was $505,000.
The bond issue has been significantly reduced primarily due to projects being de-
layed for a variety of reasons including funding concerns, etc. At the same time,
there have been increases in the project costs, most significantly in the TH13/150th
Street project.
Overall, the new money portion of the bond issue amount will be reduced to
$7,275,000 which will reduce the annual tax levy impact from $505,000 to approxi-
mately $128,000 (under Scenario A) or will increase it to $532,000 (under Scenario
B).
The following chart shows the estimated CHANGE in the debt service tax levy for
2016 as it pertains to the 2015 bond issue and existing bonds under the two sce-
narios:
Scenario Est Levy for Est Change in Estimated Total
2015 Bond Levy for Existing Change in Debt
Issue Bonds Service Levy for
2016
A $128,000 $162,000 $290,000
B $532,000 $162,000 $694,000
ALTERNATIVES: The following alternatives are available to the City Council:
1. Adopt two Resolutions Authorizing 1) the Issuance of General Obligation
Bonds, Series 2015A and 2) the Issuance of Taxable General Obligation
Bonds, Series 2015B.
2. Table this item for a specific reason.
RECOMMENDED Alternative 1.
MOTION:
ATTACHMENTS: 1) Resolution —2015A
2) Resolution —2016A
3) Scenario A ( 2 pages)
4) Scenario B (2 pages)
CERTIFICATION OF MINUTES
RELATING TO GENERAL OBLIGATION BONDS, SERIES 2015A
ISSUER: City of Prior Lake, Minnesota
BODY: City Council
KIND, DATE, TIME AND PLACE OF MEETING:
A regular meeting held on Monday, March 23, 2015, at 7:00 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 BONDS, SERIES 2015A
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 March , 2015.
City Manager
EXTRACT OF MINUTES OF A MEETING
OF THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, STATE OF MINNESOTA
HELD: Monday, March 23, 2015
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Prior Lake, State of Minnesota, was duly held on Monday, March 23, 2015 at 7:00 p.m.
Member introduced the following resolution and moved its
adoption:
RESOLUTION APPROVING THE ISSUANCE OF
GENERAL OBLIGATION BONDS, SERIES 2015A
BE IT RESOLVED by the City Council of the City of Prior Lake, State of 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 bonds in the total aggregate
principal amount of not to exceed $10,000,000 (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 costs of construction of street improvement and reconstruction within the
City (the "New Money Portion");
(ii) a crossover refunding of all or a portion of the December 15, 2023 through 2032
maturities, aggregating up to $5,050,000 in principal amount, of the City's
General Obligation Water Treatment Plant Revenue Bonds, Series 2007A, dated
May 15, 2007 as date of original issue (the "Refunding Portion"); and
(iii) to pay the costs associated with issuing the Series 2015A Bonds.
2. The City Council desires to proceed with the sale of the Bonds by direct negotiation with
Northland Securities, Inc. ("NSI"). NSI will purchase the Bonds in an arm's-length
commercial transaction with the City.
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 $10,000,000 and to execute a bond
purchase agreement for the purchase of the Bonds with NSI, for all or some of the
purposes listed in paragraph 1. (i)through(ii), provided the True Interest Cost of the New
Money Portion is no more than %, and the total net savings for the Crossover
Refunding Portion meets the 3% savings test as set forth in Minnesota Statutes 475.67,
subdivision 12.
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 or special 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 City Manager have not approved the sale of the bonds to NSI and
executed the related bond purchase agreement by December 31, 2015, 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.
CERTIFICATION OF MINUTES
RELATING TO TAXABLE GENERAL OBLIGATION BONDS, SERIES 2015B
ISSUER: City of Prior Lake, Minnesota
BODY: City Council
KIND, DATE, TIME AND PLACE OF MEETING:
A regular meeting held on Monday, March 23, 2015, at 7:00 p.m., in the City Offices
MEMBERS PRESENT:
MEMBERS ABSENT:
Documents Attached: Extract of Minutes of said meeting.
RESOLUTION APPROVING THE ISSUANCE OF
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2015B
1, 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 March 2015.
City Manager
EXTRACT OF MINUTES OF A MEETING
OF THE CITY COUNCIL OF THE CITY OF PRIOR LAKE, STATE OF MINNESOTA
HELD: Monday, March 23, 2015
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Prior Lake, State of Minnesota, was duly held on Monday, March 23, 2015 at 7:00 p.m.
Member introduced the following resolution and moved its
adoption:
RESOLUTION APPROVING THE ISSUANCE OF
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2015B
BE IT RESOLVED by the City Council of the City of Prior Lake, State of 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 taxable general obligation bonds in the total aggregate
principal amount of not to exceed $5,200,000 (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 costs of construction of street improvement and reconstruction within the City
(the "New Money Portion");
(ii) a crossover refunding of all or a portion of the December 15, 2015 through 2023
maturities,aggregating up to$2,460,000 in principal amount,of the City's General
Obligation Water Treatment Plant Revenue Bonds, Series 2007A, dated May 15,
2007 as date of original issue (the"Refunding Portion"); and
(iii) to pay the costs associated with issuing the Series 2015B Bonds.
2. The City Council desires to proceed with the sale of the Bonds by direct negotiation with
Northland Securities, Inc. ("NSI"). NSI will purchase the Bonds in an arm's-length
commercial transaction with the City.
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 $5,200,000 and to execute a bond
purchase agreement for the purchase of the Bonds with NSI, for all or a portion of the
purposes listed in paragraph 1, (i)through(ii),provided the True Interest Cost of the New
Money Portion is no more than % and the total net savings of the Refunding
Portion meets the 3% savings test as set forth in Minnesota Statutes 475.67, subdivision
12.
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 or special 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 City Manager have not approved the sale of the bonds to NSI and executed
the related bond purchase agreement by December 31, 2015, 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.
S(2 C--hl J4-ll-to )q-
3/20/2015 PRELIMINARY FOR DISCUSSION PURPOSES ONLY
CITY OF PRIOR LAKE,MINNESOTA
GENERAL OBLIGATION STREET RECONSTRUCTION BONDS OF 2015A
PARAMOUNT: $7,275,000
APPLICATION OF FUNDS
MUSHTOWN/MAPLE PANAMA 1,245,760.00 LEVY PRINCIPAL BONDS DATED: MAY 15,2015
TH#13/150TH 2,251,000.00 YEAR AMOUNT
DULUTH AVENUE 0.00 BONDS MATURE: DECEMBER 15,2016 THROUGH 2026
CREDIT RIVER ROAD 1,094,618.00 2016 $0
2015 STREET RECONSTRUCTION 2,380,188.00 2017 305,000 INTEREST: DECEMBER 15,2015 AND SEMIANNUALLY THEREAFTER ON EACH
2018 255,000 JUNE 15TH AND DECEMBER 15TH.
TOTAL PROJECT HARD COSTS 6,971,566.00 2019 675,000
ADD: (SOFT COSTS) 2020 375,000 OPTION: ALL BONDS ARE CALLABLE AT THE OPTION OF THE CITY
ESTIMATED LEGAL OPINION 8,900.00 2021 225,000 ON DECEMBER 15,2022 OR ANY DATE THEREAFTER AT PAR
ESTIMATED PREMIUM ON PURCHASE PRICE 0.00 call 2022 330,000 PLUS ACCRUED INTEREST.
CAPITAL INTEREST(13 MONTHS) 181,693.39 2023 460,000
ESTIMATED BOND RATING FEES 24,000.00 2024 410,000 RATING AGENCY: MOODY'S & S&P
ESTIMATED FAIRNESS OPINION 2,250.00 2025 580,000
EST.DISCOUNT FACTOR(1.45%) 87,300.00 2026 775,000 EST.PURCHASE PRICE: $7,169,512.50
EST.MISC.FEES/ROUNDING (5,089.39) 2027 610,000
EST.PAYING AGENT/REG.(PREPAY TO CALL) 4,380.00 2028 555,000 EST.AVERAGE COUPON RATE: 2.402
TOTAL SOFT COSTS OF ISSUANCE 303,434.00 2029 550,000
GRAND TOTAL HARD&SOFT COSTS 7,275,000.00 2030 600,000 PAYING AGENT&
LESS: ESTIMATED CONSTRUCTION FUND EARNINGS 0.00 2031 570,000 REGISTRAR: NORTHLAND TRUST SERVICES
NET GRAND TOTAL HARD&SOFT COSTS 7,275,000.00 2032 0
2033 0 BOND TRIGGER DATE: MARCH 23,2015
ROUNDED FOR ISSUE $7,275,000.00 2034 0 BOND MARKETING DATE: APRIL 21,2015
2035 0 CITY COUNCIL APPROVAL: APRIL 27,2015
TOTAL 7,275,000
EST.BOND CLOSING DATE: MAY_2015
Northland Securities,Inc.
Steve Mattson,Executive Vice President
NORTHLAND 46Sr CU 21TtcS Tammy Omdal,Senior Vice President
612-851-5900
5'0'L�%Pfzlo 1-
3/20/2015 PRELIMINARY FOR DISCUSSION PURPOSES ONLY
DATE OF ANALYSIS: Mar-20-2015 Name of Issuer: CITY OF PRIOR LAKE,MINNESOTA
DATED DATE OF BOND ISSUE: Apr-21-2015 Type of Bond: GENERAL OBLIGATION STREET RECONSTRUCTION BONDS OF 2015A"NEW MONEY"PORTION AND 2015B
*PAR AMOUNT: $7,275,000 *Includes portion of 2015A and all of 2015B
ESTIMATED
INTEREST TOTAL STATUATORY CAPITALIZED ASSESSMENTS SCHEDULE A ANNUAL
(12-15) RATES DEBT COVERAGE INTEREST ASSESSMENT ASSESSMENT TAX SURPLUS CUMULATIVE
2016-2020
YEAR PRINCIPAL TAXABLE INTEREST SERVICE @ 105.00% 13 MONTHS PRINCIPAL INTEREST INCOME LEVY /DEFICIT BALANCE YEAR
$0.00 $0.00
2015 100,740.89 100,740.89 100,740.89 $100,740.89 0.00 0.00 0.00 2015
2016 305,000.00 1.000% 161,905.00 466,905.00 490,250.25 $80,952.50 187,707.70 93,274.17 280,981.87 128,315.88 0.00 0.00 2016
2017 255,000.00 1.350% 158,855.00 413,855.00 434,547.75 187,707.70 72,910.25 260,617.95 173,929.80 0.00 0.00 2017
2018 675,000.00 1.700% 155,412.50 830,412.50 871,933.13 187,707.70 65,871.21 253,578.91 618,354.22 0.00 0.00 2018
2019 375,000.00 1.950% 143,937.50 518,937.50 544,884.38 187,707.70 58,832.17 246,539.87 298,344.50 0.00 0.00 2019
2020 225,000.00 2.200% 136,625.00 361,625.00 379,706.25 187,707.70 51,793.13 239,500.83 140,205.42 0.00 0.00 2020
2021 330,000.00 2.450% 131,675.00 461,675.00 484,758.75 187,707.70 44,754.09 232,461.79 252,296.96 0.00 0.00 2021
2022 460,000.00 2.650% 123,590.00 583,590.00 612,769.50 187,707.70 37,715.06 225,422.76 387,346.75 (0.00) 0.00 2022
2023 410,000.00 1.900% 111,400.00 521,400.00 547,470.00 187,707.70 30,676.02 218,383.72 329,086.28 0.00 0.00 2023
2024 580,000.00 2.050% 103,610.00 683,610.00 717,790.50 187,707.70 23,636.98 211,344.68 506,445.82 0.00 0.00 2024
2025 775,000.00 2.200% 91,720.00 866,720.00 910,056.00 187,707.70 16,597.94 204,305.64 705,750.36 0.00 0.00 2025
2026 610,000.00 2.350% 74,670.00 684,670.00 718,903.50 25,490.40 9,558.90 35,049.30 683,854.20 (0.00) 0.00 2026
2027 555,000.00 2.500% 60,335.00 615,335.00 646,101.75 25,490.40 8,603.01 34,093.41 612,008.34 (0.00) 0.00 2027
2028 550,000.00 2.600% 46,460.00 596,460.00 626,283.00 25,490.40 7,647.12 33,137.52 593,145.48 (0.00) 0.00 2028
2029 600,000.00 2.700% 32,160.00 632,160.00 663,768.00 25,490.40 6,691.23 32,181.63 631,586.37 (0.00) 0.00 2029
2030 570,000.00 2.800% 15,960.00 585,960.00 615,258.00 25,490.40 5,735.34 31,225.74 584,032.26 0.00 0.00 2030
2031 0.00 0.000% 0.00 0.00 0.00 25,490.40 4,779.45 30,269.85 0.00 30,269.85 30,269.85 2031
2032 0.00 0.000% 0.00 0.00 0.00 25,490.40 3,823.56 29,313.96 0.00 29,313.96 59,583.81 2032
2033 0.00 0.000% 0.00 0.00 0.00 25,490.40 2,867.67 28,358.07 0.00 28,358.07 87,941.88 2033
2034 0.00 0.000% 0.00 0.00 0.00 25,490.40 1,911.78 27,402.18 0.00 27,402.18 115,344.06 2034
2035 0.00 0.000% 0.00 0.00 0.00 25,490.40 955.89 26,446.29 0.00 1 26,446.29 141,790.35 2035
7,275,000.00 1,649,055.89 8,924,055.89 9,365,221.64 181,693.39 2,131,981.00 548,634.96 2,680,615.96 $6,644,702.64 $141,790.35
O (+) (+) (+)
I/10TH OF ONE PERCENT IS EQUAL TO-----> 68,640.87
Northland Securities,Inc.
Steve Mattson,Executive Vice President
NORTHLAND40 SECURtTi.ES Tammy Omdal,Senior Vice President
612-851-5900
3/20/2015 SCENARIO B
CITY OF PRIOR LAKE,MINNESOTA
GENERAL OBLIGATION STREET RECONSTRUCTION BONDS OF 2015A
PAR AMOUNT: $7,255,000
APPLICATION OF FUNDS
MUSHTOWN/MAPLE PANAMA 1,245,760.00 LEVY PRINCIPAL BONDS DATED: MAY 15,2015
TH 413/150TH 2,251,000.00 YEAR AMOUNT
DULUTH AVENUE 0.00 BONDS MATURE: DECEMBER 15,2016 THROUGH 2026
CREDIT RIVER ROAD 1,094,618.00 2016 $0
2015 STREET RECONSTRUCTION 2,380,188.00 2017 700,000 INTEREST: DECEMBER 15,2015 AND SEMIANNUALLY THEREAFTER ON EACH
2018 705,000 JUNE 15TH AND DECEMBER 15TH.
TOTAL PROJECT HARD COSTS 6,971,566.00 2019 710,000
ADD: (SOFT COSTS) 2020 720,000 OPTION: ALL BONDS ARE CALLABLE AT THE OPTION OF THE CITY
ESTIMATED LEGAL OPINION 8,900.00 2021 725,000 ON DECEMBER 15,2022 OR ANY DATE THEREAFTER AT PAR
ESTIMATED PREMIUM ON PURCHASE PRICE 0.00 call 2022 730,000 PLUS ACCRUED INTEREST.
CAPITAL INTEREST (13 MONTHS) 158,951.56 2023 735,000
ESTIMATED BOND RATING FEES 24,000.00 2024 745,000 RATING AGENCY: MOODY'S & S&P
ESTIMATED FAIRNESS OPINION 2,250.00 2025 750,000
EST.DISCOUNT FACTOR(1.45%) 87,060.00 2026 735,000 EST.PURCHASE PRICE: $7,149,802.50
EST.MISC.FEES/ROUNDING (2,107.56) 2027 0
EST.PAYING AGENT/REG.(PREPAY TO CALL) 4,380.00 2028 0 EST.AVERAGE COUPON RATE: 2.116
TOTAL SOFT COSTS OF ISSUANCE 283,434.00 2029 0
GRAND TOTAL HARD&SOFT COSTS 7,255,000.00 2030 0 PAYING AGENT&
LESS: ESTIMATED CONSTRUCTION FUND EARNINGS 0.00 2031 0 REGISTRAR: NORTHLAND TRUST SERVICES
NET GRAND TOTAL HARD&SOFT COSTS 7,255,000.00 2032 0
2033 0 BOND TRIGGER DATE: MARCH 23,2015
ROUNDED FOR ISSUE $7,255,000.00 2034 0 BOND MARKETING DATE: APRIL 21,2015
2035 0 CITY COUNCIL APPROVAL: APRIL 27,2015
TOTAL 7,255,000
EST.BOND CLOSING DATE: MAY ,2015
Northland Securities,Inc.
Steve Mattson,Executive Vice President
NUR 1"H LA N DSE C U R 1 T I F S Tammy Omdal,Senior Vice President
0- 612-851-5900
3/20/2015 SCENARIO B
DATE OF ANALYSIS: Mar-20-2015 Name of Issuer: CITY OF PRIOR LAKE,MINNESOTA
DATED DATE OF BOND ISSUE: Apr-21-2015 Type of Bond: GENERAL OBLIGATION STREET RECONSTRUCTION BONDS OF 2015A"NEW MONEY"PORTION AND 2015
*PAR AMOUNT: $7,255,000 *Includes portion of 2015A and all of 20l 5B
ESTIMATED 20,000.00
INTEREST TOTAL STATUATORY CAPITALIZED ASSESSMENTS SCHEDULE A ANNUAL
(12-15) RATES DEBT COVERAGE INTEREST ASSESSMENT ASSESSMENT TAX SURPLUS CUMULATIVE
2016-2020
YEAR PRINCIPAL TAXABLE INTEREST SERVICE a,105.00% 13 MONTHS PRINCIPAL INTEREST INCOME LEVY /DEFICIT BALANCE
$0.00 $0.00
2015 88,131.56 88,131.56 88,131.56 $88,131.56 0.00 0.00 0.00
2016 700,000.00 1.000% 141,640.00 841,640.00 883,722.00 $70,820.00 187,707.70 93,274.17 280,981.87 531,920.13 0.00 0.00
2017 705,000.00 1.350% 134,640.00 839,640.00 881,622.00 187,707.70 72,910.25 260,617.95 621,004.05 0.00 0.00
2018 710,000.00 1.700% 125,122.50 835,122.50 876,878.63 187,707.70 65,871.21 253,578.91 623,299.72 0.00 0.00
2019 720,000.00 1.950% 113,052.50 833,052.50 874,705.13 187,707.70 58,832.17 246,539.87 628,165.25 0.00 0.00
2020 725,000.00 2.200% 99,012.50 824,012.50 865,213.13 187,707.70 51,793.13 239,500.83 625,712.29 (0.00) 0.00
2021 730,000.00 2.450%1 83,062.50 813,062.50 853,715.63 187,707.70 44,754.09 232,461.79 621,253.83 0.00 0.00
2022 735,000.00 2.650% 65,177.50 800,177.50 840,186.38 187,707.70 37,715.06 225,422.76 614,763.62 (0.00) 0.00
2023 745,000.00 1.900% 45,700.00 790,700.00 830,235.00 187,707.70 30,676.02 218,383,72 611,851.28 0.00 0.00
2024 750,000.00 2.050% 31,545.00 781,545.00 820,622.25 187,707.70 23,636.98 211,344.68 609,277.57 0.00 0.00
2025 735,000.00 2.200% 16,170.00 751,170.00 788,728.50 187,707.70 16,597.94 204,305.64 584,422.86 0.00 0.00
2026 0.00 2.350% 0.00 0.00 0.00 25,490.40 9,558.90 35,049.30 0.00 35,049.30 35,049.30
2027 0.00 2.500% 0.00 0.00 0.00 25,490.40 8,603.01 34,093.41 0.00 34,093.41 69,142.71
2028 0.00 2.600% 0.00 0.00 0.00 25,490.40 7,647.12 33,137.52 0.00 33,137.52 102,280.23
2029 0.00 2.700% 0.00 0.00 0.00 25,490.40 6,691.23 32,181.63 0.00 32,181.63 134,461.86
2030 0.00 2.800% 0.00 0.00 0.00 25,490.40 5,735.34 31,225,74 0.00 31,225.74 165,687.60
2031 0.00 0.000% 0.00 0.00 0.00 25,490.40 4,779.45 30,269.85 0.00 30,269.85 195 957.45
2032 0.00 0.000% 0.00 0.00 0.00 25,490.40 3,823.56 29,313.96 0.00 29,313.96 225,271.41
2033 0.00 0.000% 0,00 0.00 0.00 25,490.40 2,867.67 28,358.07 0.00 28,358.07 253,629.48
2034 0.00 0.000% 0.00 0.00 0.00 25,490.40 1,911.78 27,402.18 0.00 27,402.18 281,031.66
2035 0.00 0.000% 0.00 0.00 0.00 25,490.40 955.89 26,446.29 0.00 26,446.29 307,477.95
7,255,000.00 943,254.06 8,198,254.06 8,603,760.18 158,951.56 2,131,981.00 548,634.96 2,680,615.96 $6,071,670.61 $307,477.95
1/10TH OF ONE PERCENT IS EQUAL TO-> 44,574.17
Northland Securities,Inc.
Steve Mattson,Executive Vice President
NOR"I"HLAN 1) 5E.C11 RI"I"IES Tammy 0mdal,Senior Vice President
612-851-5900