HomeMy WebLinkAbout2018-130 Council ResolutionRESOLUTION NO. 18-130
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE
OF GENERAL OBLIGATION BONDS, SERIES 2018A, IN THE
PROPOSED AGGREGATE PRINCIPAL AMOUNT OF $7,169,000
BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County, Minnesota
(the "City") as follows:
1. Street Reconstruction Bonds.
(a) Pursuant to Minnesota Statutes, Chapter 475, as amended (the "Municipal Debt
Act"), specifically Section 475.58, subdivision 3b, the City is authorized to fmance all or a
portion of the cost of street reconstruction projects by the issuance of general obligation bonds of
the City payable from ad valorem taxes.
(b) On June 12, 2017, following a duly noticed public hearing, the City Council of
the City adopted the "2017-2021 Five -Year Street Reconstruction Plan for the City of Lino
Lakes, Minnesota" (the "Plan") describing the streets to be reconstructed, estimated costs, and
any planned reconstruction of other streets in the City and approved the issuance of obligations
by vote of at least a two-thirds majority of the members of the City Council, all pursuant to the
Municipal Debt Act.
(c) Expenditures described in the Plan for 2018 include, among other projects, the
reconstruction projects designated as West Shadow Lake Drive, Sandpiper Drive, Shadow Court,
LaMotte Drive, and LaMotte Circle (collectively, the "Street Reconstruction"). The City
estimates that the total cost of the Street Reconstruction for 2018 is $5,124,000.
(d) The City Council has determined that, within thirty (30) days after the hearing,
no petition for a referendum on the issuance of bonds to pay costs of the Street Reconstruction
was received by the City in accordance with Section 475.58, subdivision 3b or the Municipal
Debt Act.
(e) The City Council finds it necessary and expedient to the sound financial
management of the affairs of the City to issue obligations in the proposed principal amount of
$5,124,000 (the "Street Reconstruction Bonds"), pursuant to the Municipal Debt Act, to provide
financing for the Street Reconstruction.
2. Utility Revenue Bonds.
(a) The City engineer has recommended the construction of various improvements to
the City's sanitary sewer and water systems, including but not limited to the construction of water
and sanitary sewer improvements related to the Street Reconstruction (the "Utility
Improvements"), pursuant to the Municipal Debt Act and Minnesota Statutes, Chapter 444, as
amended (collectively, the "Utility Revenue Act").
(b) The City Council finds it necessary and expedient to the sound financial
management of the affairs of the City to issue obligations in the proposed principal amount of
$2,045,000 (the "Utility Revenue Bonds"), pursuant to the Utility Revenue Act, to provide
financing for the Utility Improvements.
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3. Sale of Bonds.
(a) It is necessary and expedient to the sound financial management of the affairs of
the City to issue its General Obligation Bonds, Series 2018A (the `Bonds"), in the proposed
aggregate principal amount of $7,169,000, pursuant to the Municipal Debt Act, including Section
475.58, subdivision 3b, and the Utility Revenue Act (collectively, the "Act") to provide financing
for the Street Reconstruction and the Utility Improvements. The Bonds will be issued, sold, and
delivered in accordance with the Terms of Proposal attached hereto as EXHIBIT A (the "Terms
of Proposal").
(b) The City is authorized by Section 475.60, subdivision 2(9) of the Act to negotiate
the sale of the Bonds, it being determined that the City has retained an independent municipal
advisor in connection with such sale.
4. Authority of Municipal Advisor. Springsted Incorporated is authorized and directed to
negotiate the Bonds on behalf of the City in accordance with the Terms of Proposal. The City Council
will meet at 6:30 P.M. on Tuesday, November 13, 2018, to consider proposals on the Bonds and take any
other appropriate action with respect to the Bonds.
5. Authority of Bond Counsel. The law firm of Kennedy & Graven, Chartered, as bond
counsel for the City, is authorized to act as bond counsel and to assist in the preparation and review of
necessary documents, certificates, and instruments relating to the Bonds. The officers, employees, and
agents of the City are hereby authorized to assist Kennedy & Graven, Chartered in the preparation of such
documents, certificates, and instruments.
6. Covenants. In the resolution awarding the sale of the Bonds the City Council will set
forth the covenants and undertakings required by the Act.
7. Official Statement. In connection with the sale of the Bonds, the officers or employees of
the City are authorized and directed to cooperate with Springsted Incorporated and participate in the
preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon
its completion.
8 Amendments to Street Reconstruction Plan. The City Council hereby amends the Plan so
that the amount of the Bonds to be expended on the West Shadow Lake Drive Improvements shall be
$3,927,399 and the amount of the Bonds to be expended on the LaMotte Drive Improvements shall be
$1,197,778.
Adopted by the Council of the City of Lino Lakes this 8th day of October, 2018.
The motion for the adoption of the foregoing resolution was introduced by Council Member
Rafferty and was duly seconded by Council Member Maher and upon
vote being taken thereon, the following voted in favor thereof:
Rafferty, Stoesz, Manthey, Maher, Reinert
The following voted against same:
None
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ATTEST:
Ju i e Bartell. City C rk
Jeff Reinert, ►- a •r
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EXIT A
TERMS OF PROPOSAL
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THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWLNG BASIS:
TERMS OF PROPOSAL
$7,169,000*
CITY OF LINO LAKES, MINNESOTA
GENERAL OBLIGATION BONDS, SERIES 2018A
(BOOK ENTRY ONLY)
Proposals for the above -referenced obligations (the "Bonds") will be received by the City of Lino Lakes,
Minnesota (the "City") on Tuesday. November 13, 2018 (the "Sale Date") until 11:00 A.M., Central Time
at the offices of Springsted Incorporated ("Springsted"), 380 Jackson Street, Suite 300, Saint Paul,
Minnesota, 55101, after which time proposals will be opened and tabulated. Consideration for award of
the Bonds will be by the City Council at its meeting commencing at 6:30 P.M., Central Time, of the same
day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of a bidder to reach Springsted prior to the time of sale
specified above. All bidders are advised that each proposal shall be deemed to constitute a contract
between the bidder and the City to purchase the Bonds regardless of the manner in which the proposal is
submitted.
(a) Sealed Biddin. Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to
Springsted. Signed proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final proposal price and
coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via PARITY®.
For purposes of the electronic bidding process, the time as maintained by PARITY' shall constitute the
official time with respect to all proposals submitted to PARITY®. Each bidder shall be solely responsible
for making necessanv arrangements to access PARITY"' for purposes of submitting its electronic proposal
in a timely manner and in compliance -with the requirements of the Terms of Proposal. Neither the City,
its agents, nor PARITY® shall have any duty or obligation to undertake registration to bid for any
prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and
neither the City, its agents, nor PARITY® shall be responsible for a bidder's failure to register to bid or
for any failure in the proper operation of, or have any liability for any delays or interruptions of or any
damages caused by the services of PARITY®. The City is using the services of PARITY® solely as a
communication mechanism to conduct the electronic bidding for the Bonds, and PARITY'® is not an agent
of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY®", this Terms
of Proposal shall control. Further information about PARITY®, including any fee charged, may be
obtained from:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
* Preliminary; subject to change.
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DETAILS OF THE BONDS
The Bonds will be dated as of the date of delivery and will bear interest payable on February 1 and
August 1 of each year, commencing August 1, 2019. Interest will be computed on the basis of a 360-day
year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts* as follows:
2020 S110,000 2023 S445,000 2026 S490,000 2029 $535,000 2032 S555,000
2021 S419,000 2024 S460,000 2027 S505,000 2030 $520,000 2033 S575,000
2022 S435,000 2025 S470,000 2028 S520,000 2031 S535,000 2034 S595,000
* The City reserves the right, after proposals are opened and prior to award, to (i) increase or reduce the
principal amount of the February I, 2021 maturity in multiples of $1,000; and (ii,) increase or reduce the
principal amount of the February 1, 2020 and February 1, 2022 through February 1, 2034 maturities in
multiples of $5,000. In the event the amount of any maturity is modified, the aggregate purchase price will be
adjusted to result in the same gross spread per $1,000 of Bonds as that of the original proposal. Gross spread
for this purpose is the differential between the price paid to the Ciiy for the new issue and the prices at which
the proposal indicates the securities will be initially offered to the investing public.
Proposals for the Bonds may contain a maturity schedule which provides for term bonds for the
February 1, 2022 through February 1, 2034 maturities. Any term bonds shall be subject to mandatory
sinking fund redemption at a price of par plus accrued interest to the date of redemption scheduled to
conform to the maturity schedule set forth above. In order to designate term bonds, the proposal must
specify "Years of Term Maturities" in the spaces provided on the proposal form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made
to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate
principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as
nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securities
depository for the Bonds. Individual purchases .of the Bonds maturing on February 1, 2021 may be made
in the principal amount of S 1,000 or any multiple thereof of a single maturity through book entries made
on the books and records of DTC and its participants. Individual purchases of the Bonds maturing on
February 1, 2020 and February 1, 2022 through February 1, 2034 may be made in the principal amount of
S5,000 or any multiple thereof of a single maturity through book entries made on the books and records of
DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as
registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be
the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants
will be the responsibility of such participants and other nominees of beneficial owners. The lowest bidder
(the "Purchaser"), as a condition of delivery of the Bonds, will be required to deposit the Bonds with
DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable regulations of the Securities and
Exchange Cornrnission. The City will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2028, and on any day thereafter, to redeem Bonds due on or after
February 1, 2029. Redemption may be in whole or in part and if in part at the option of the City and in
such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption,
the City will notify DTC of the particular amount of such maturity to be redeemed. DTC will determine
by lot the amount of each participant's interest in such maturity to be redeemed and each participant will
then select by lot the beneficial ownership interests in such maturity to be redeemed. All redemptions
shall be at a price of par plus accrued interest.
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SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and credit
and power to levy direct general ad valorem taxes. In addition, the City will pledge net revenues of the
City's water and sewer utilities for repayment of a portion of the Bonds. The proceeds of the Bonds will
be used to finance (i) various street improvements; and (ii) various utility improvements within the City.
BIDDING PARAMETERS
Proposals shall be for not less than $7,169,000 (Par) plus accrued interest, if any, on the total principal
amount of the Bonds. No proposal can be withdrawn or amended after the time set for receiving
proposals on the Sale Date unless the meeting of the City scheduled for award of the Bonds is adjourned,
recessed, or continued to another date without award of the Bonds having been made. Rates shall be in
integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity as stated on the
proposal must be 98.0% or greater. Bonds of the same maturity shall bear a single rate from the date of
the Bonds to the date of maturity. No conditional proposals will be accepted.
ESTABLISHMENT OF ISSUE PRICE
In order to provide the City with information necessary for compliance with Section 148 of the internal
Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder (collectively,
the "Code"), the Purchaser will be required to assist the City in establishing the issue price of the Bonds
and shall complete, execute, and deliver to the City prior to the closing date, a written certification in a
form acceptable to the Purchaser, the City, and Bond Counsel (the "Issue Price Certificate") containing
the following for each maturity of the Bonds (and, if different interest rates apply within a maturity, to
each separate CUSIP number within that maturity): (i) the interest rate; (ii) the reasonably expected
initial offering price to the "public" (as said term is defined in Treasury Regulation Section 1.148-1(f)
(the "Regulation")) or the sale price; and (iii) pricing wires or equivalent communications supporting such
offering or sale price. Any action to be taken or documentation to be received by the City pursuant hereto
may be taken or received on behalf of the City by Springsted.
The City intends that the sale of the Bonds pursuant to this Terms of Proposal shall constitute a
"competitive sale" as defined in the Regulation based on the following:
(i) the City shall cause this Terms of Proposal to be disseminated to potential bidders in a
manner that is reasonably designed to reach potential bidders;
(ii) all bidders shall have an equal opportunity to submit a bid;
(iii) the City reasonably expects that it will receive bids from at least three bidders that have
established industry reputations for underwriting municipal bonds such as the Bonds; and
(iv) the City anticipates awarding the sale of the Bonds to the bidder who provides a proposal
with the lowest true interest cost, as set forth in this Terms of Proposal (See "AWARD"
herein).
Any bid submitted pursuant to this Terms of Proposal shall be considered a firm offer for the purchase of
the Bonds, as specified in the proposal. The Purchaser shall constitute an "underwriter" as said term is
defined in the Regulation. By submitting its proposal, the Purchaser confirms that it shall require any
agreement among underwriters, a selling group agreement, or other agreement to which it is a party
relating to the initial sale of the Bonds, to include provisions requiring compliance with the provisions of
the Code and the Regulation regarding the initial sale of the Bonds.
If all of the requirements of a "competitive sale" are not satisfied, the City shall advise the Purchaser of
such fact prior to the time of award of the sale of the Bonds to the Purchaser. In such event, any
proposal submitted will not be subject to cancellation or withdrawal. Within twenty-four (24) hours
of the notice of award of the sale of the Bonds, the Purchaser shall advise the City and Springsted if 10%
of any maturity of the Bonds (and, if different interest rates apply within a maturity, to each separate
CUSLP number within that maturity) has been sold to the public and the price at which it was sold. The
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City will treat such sale price as the "issue price" for such maturity, applied on a maturity -by -maturity
basis. The City will not require the Purchaser to comply with that portion of the Regulation commonly
described as the "hold -the -offering -price" requirement for the remaining maturities, but the Purchaser
may elect such option. If the Purchaser exercises such option, the City will apply the initial offering price
to the public provided in the proposal as the issue price for such maturities. If the Purchaser does not
exercise that option, it shall thereafter promptly provide the City and Springsted the prices at which 10%
of such maturities are sold to the public; provided such determination shall be made and the City and
Springsted notified of such prices whether or not the closing date has occurred, until the 10% test has
been satisfied as to each maturity of the Bonds or until all of the Bonds of a maturity have been sold.
GOOD FAITH DEPOSIT
To have its proposal considered for award, the Purchaser is required to submit a good faith deposit to the
City in the amount of $71,690 (the "Deposit") no later than 2:00 PM., Central Time on the Sale Date.
The Deposit may be delivered as described herein in the form of either (i) a certified or cashier's check
payable to the City; or (ii) a wire transfer. The Purchaser shall be solely responsible for the timely
delivery of its Deposit whether by check or wire transfer. Neither the City nor Springsted have any
liability for delays in the receipt of the Deposit. If the Deposit is not received by the specified time, the
City may, at its sole discretion, reject the proposal of the lowest bidder, direct the second lowest bidder to
submit a Deposit, and thereafter award the sale to such bidder.
Certified or Cashier's Check. A Deposit made by certified or cashier's check will be considered timely
delivered to the City if it is made payable to the City and delivered to Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101 by the time specified above.
Wire Transfer. A Deposit made by wire will be considered timely delivered to the City upon submission
of a federal wire reference number by the specified time. Wire transfer instructions will be available from
Springsted following the receipt and tabulation of proposals. The successful bidder must send an e-mail
including the following information: (i) the federal reference number and time released; (ii) the amount of
the wire transfer; and (iii) the issue to which it applies.
Once an award has been made, the Deposit received from the Purchaser will be retained by the City and
no interest will accrue to the Purchaser. The amount of the Deposit will be deducted at settlement from
the purchase price. In the event the Purchaser fails to comply with the accepted proposal, said amount
will be retained by the City.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost
(TIC) basis calculated on the proposal prior to any adjustment made by the City. The City's computation
of the interest rate of each proposal, in accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non -substantive informalities of any proposal or of matters
relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and
(iii) reject any proposal that the City determines to have failed to comply with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
The City has not applied for or pre -approved a commitment for any policy of municipal bond insurance
with respect to the Bonds. If the Bonds qualify for municipal bond insurance and a bidder desires to
purchase a policy, such indication, the maturities to be insured, and the name of the desired insurer must
be set forth on the bidder's proposal. The City specifically reserves the right to reject any bid specifying
municipal bond insurance, even though such bid may result in the lowest TIC to the City. All costs
associated with the issuance and administration of such policy and associated ratings and expenses (other
than any independent rating requested by the City) shall be paid by the successful bidder. Failure of the
municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for
failure or refusal by the successful bidder to accept delivery of the Bonds.
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CUSIP NUMBERS
If the Bonds qualify for the assignment of CUSIP numbers such numbers will be printed on the Bonds;
however, neither the failure to print such numbers on any Bond nor any error with respect thereto will
constitute cause for failure or refusal by the Purchaser to accept delivery of the Bonds. Springsted will
apply for CUSIP numbers pursuant to Rule G-34 implemented by the Municipal Securities Rulemaking
Board. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be
paid by the Purchaser.
SETTLEMENT
On or about December 19, 2018, the Bonds will be delivered without cost to the Purchaser through DTC
in New York, New York. Delivery will be subject to receipt by the Purchaser of an approving legal
opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary closing papers,
including a no -litigation certificate. On the date of settlement, payment for the Bonds shall be made in
federal, or equivalent, funds that shall be received at the offices of the City or its designee not later than
12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has been made
impossible by action of the City, or its agents, the Purchaser shall be liable to the City for any loss
suffered by the City by reason of the Purchaser's non-compliance with said terms for payment.
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution awarding
sale of the Bonds, to provide annual reports and notices of certain events. A description of this
undertaking is set forth in the Official Statement. The Purchaser's obligation to purchase the Bonds will
be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Bonds.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent
information relative to the Bonds, and said Preliminary Official Statement has been deemed final by the
City as of the date thereof within the meaning of Rule 15c2-12 of the Securities and Exchange
Commission. For copies of the Preliminary Official Statement or for any additional information prior to
sale, any prospective purchaser is referred to the Municipal Advisor to the City, Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the
maturity dates, principal amounts, and interest rates of the Bonds, together with any other information
required by law. By awarding the Bonds to the Purchaser, the City agrees that, no more than seven
business days after the date of such award, it shall provide without cost to the Purchaser up to 25 copies
of the Final Official Statement. The City designates the Purchaser as its agent for purposes of distributing
copies of the Final Official Statement to each syndicate member, if applicable. The Purchaser agrees that
if its proposal is accepted by the City, (i) it shall accept designation and (ii) it shall enter into a contractual
relationship with its syndicate members for purposes of assuring the receipt of the Final Official
Statement by each such syndicate member.
Dated October 8, 2018 BY ORDER OF THE CITY COUNCIL
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/s/ Julie Bartell
City Clerk
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CITY COUNCIL
AGENDA ITEM 2A
STAFF ORIGINATOR: Sarah Cotton, Finance Director
MEETING DATE: October 8, 2018
TOPIC: Consider Resolution No. 18-130, Providing for the Issuance and
Sale of General Obligation Bonds, Series 2018A, in the Proposed
Aggregate Principal Amount of $7,169,000
VOTE REQUIRED: 3/5
BACKGROUND
At the September, 10, 2018, City Council Meeting, the City Council accepted bids and awarded
a construction contract for the 2018 LaMotte Area Street and Utility Improvement project. The
project includes street reconstruction, drainage and sanitary sewer improvements. To finance
the street reconstruction and drainage improvements, the City will issue General Obligation
Street Reconstruction Bonds. The bonds will be repaid over a 15-year period through a general
debt service tax levy.
At the July 23, 2018, City Council Meeting, the City Council approved the plans and
specifications and authorized the advertisement of bids related to the 2018 West Shadow Lake
Drive Area Street and Utility Improvement Project. The project includes street reconstruction,
drainage improvements, and sanitary sewer and watermain extension. The Street Reconstruction
portion of the bonds will be repaid over a 15-year period through a general debt service tax
levy. The utility portion of the bonds will be repaid over a 15-year period through special
assessments in the principal amount of $943,343 and by utilizing revenues from the City's Area
and Unit Trunk fund. The City Council will consider accepting bids and awarding a
construction contract for the 2018 West Shadow Lake Drive Area Street and Utility
Improvement Project at the October 8, 2018, City Council Meeting.
Finally, at the September 24, 2018, City Council Meeting, the City Council accepted bids and
awarded a construction contract related to Trunk Watermain improvements along Lake Drive.
The project provides improved water quality supply and adequate pressure for fire demand.
The project includes installation of trunk watermain from Marshan Lane to Park Court and
from an existing line from Well No. 6 to Well No. 3. To finance the construction of the
watermain improvements, the City will issue General Obligation Utility Revenue Bonds. The
bonds will be repaid over a 10-year period utilizing revenues from the City's Area and Unit
Trunk fund.
The City's fiscal advisor, Springsted, Inc., has made its recommendations for the issuance of
General Obligation bonds to finance these improvements. Terri Heaton of Springsted, Inc. will
be present to answer any questions that the City Council may have relative to the recommended
financing.
Approval of Resolution No. 18-130 provides for the issuance and sale of General Obligation
Bonds, Series 2018A, in the proposed aggregate principal amount of $7,169,000. If approved,
bids would be received on November 13, 2018, with consideration of award and sale by the
City Council at its meeting the same day.
RECOMMENDATION
Staff is recommending approval of Resolution No. 18-130.
ATTACHMENTS
Springsted's Recommendations for the Issuance of Bonds
Resolution No. 18-130
City of Lino Lakes, Minnesota
Recommendations for Issuance of Bonds
$7,169,000 General Obligation Bonds, Series 2018A
The Council has under consideration the issuance of bonds to finance (i) various street reconstruction projects (the
"Street Reconstruction Portion"); (ii) various water and sewer utility projects related to West Shadow Lake Drive (the
"West Shadow Utility Portion"); and (iii) various water utility projects on Lake Drive (the "Lake Drive Utility Portion"),
collectively the "Bonds". This document provides information relative to the proposed issuance.
KEY EVENTS: The following summary schedule includes the timing of some of the key events that will occur
relative to the bond issuance.
October 8, 2018
Week of October 29, 2018
November 13, 2018, 11:00 a.m.
November 13, 2018, 6:30 p.m.
December 19, 2018
Council sets sale date and terms
Rating conference is conducted
Competitive proposals are received
Council considers award of the Bonds
Proceeds are received
RATING: An application will be made to S&P Global Ratings (S&P) for ratings on the Bonds. The City's
general obligation debt is currently rated "AA" by S&P.
THE MARKET: Performance of the tax-exempt market is often measured by the Bond Buyer's Index ("BBI")
which measures the yield of high grade municipal bonds in the 20th year for general obligation
bonds rated Aa2 by Moody's or AA by S&P (the BBI 20-Bond GO Index) and the 30th year for
revenue bonds rated Al by Moody's or A+ by S&P (the BBI 25-Bond Revenue Index). The
following chart illustrates these two indices over the past five years.
prin
BBI 20-Bond (GO) and 25-Bond (Revenue) Indices for 5 Years
Ending 9/27/2018
6.o%
5.0
x
4.0%
3.0%
2.0
O^O �O Orb Orb Orb ^� O^O O^O O^O ^y OHO O^ OHO � 0�1 O�� O^1 Off^ OHO O^O n0`�O
ati� ti����ry6�,�a���ti�<t' 41' �ti��rye�ti4 4tiA\� '\<1' \\rye�� ti, n:1/4�b���ry41, 4ti�ry ���4ti' 41'
ed
9/27/2018
Resenue: 4.69%
GO: 4.18%
----Revenue
—GO
Data Source:. The Bond Buyer
POST ISSUANCE The issuance of the Bonds will result in post -issuance compliance responsibilities. The
COMPLIANCE: responsibilities are in two primary areas: i) compliance with federal arbitrage requirements
and ii) compliance with secondary disclosure requirements.
Federal arbitrage requirements include a wide range of implications that have been taken
into account as this issue has been structured. Post -issuance compliance responsibilities
for this tax-exempt issue include both rebate and yield restriction provisions of the IRS
Code. In general terms the arbitrage requirements control the earnings on unexpended
bond proceeds, including investment earnings, moneys held for debt service payments
(which are considered to be proceeds under the IRS regulations), and/or reserves. Under
certain circumstances any "excess earnings" will need to be paid to the IRS to maintain the
tax-exempt status of the Bonds. Any interest earnings on gross bond proceeds or debt
service funds should not be spent until it has been determined based on actual facts that
they are not "excess earnings" as defined by the IRS Code.
The arbitrage rules provide for spend -down exceptions for proceeds that are spent within
either a 6-month, 18-month or, for certain construction issues, a 24-month period each in
accordance with certain spending criteria. Proceeds that qualify for an exception will be
exempt from rebate. These exceptions are based on actual expenditures and not based
on reasonable expectations, and expenditures, including any investment proceeds will
have to meet the spending criteria to qualify for the exclusion. The City expects to meet
the 18-month spending exception.
Regardless of whether the issue qualifies for an exemption from the rebate provisions,
yield restriction provisions will apply to Bond proceeds (including interest earnings) unspent
after three years and the debt service fund throughout the term of the Bonds. These
moneys should be monitored until the Bonds are retired.
Secondary disclosure requirements result from an SEC requirement that underwriters
provide ongoing disclosure information to investors. To meet this requirement, any
prospective underwriter will require the City to commit to providing the information needed
to comply under a continuing disclosure agreement.
Springsted currently provides both arbitrage and continuing disclosure services to the City.
Springsted will work with City staff to include the Bonds under the existing Agreement for
Municipal Advisor Services.
SUPPLEMENTAL
INFORMATION AND
BOND RECORD:
Supplementary information will be available to staff including detailed terms and conditions
of sale, comprehensive structuring schedules and information to assist in meeting post -
issuance compliance responsibilities.
Upon completion of the financing, a bond record will be provided that contains pertinent
documents and final debt service calculations for the transaction.
PURPOSE: Proceeds of the Bonds will be used to finance the following:
Street Reconstruction Portion — Costs associated with the City's 2018 street projects as
identified in the City's 2017-2021 Five Year Street Reconstruction Plan, including West
Shadow Lake Drive, Shadow Court, Sandpiper Drive, LaMotte Drive, and LaMotte Circle.
prin
West Shadow Utility Portion — Water and sewer utility improvements associated with the
West Shadow Lake Drive project.
e d Page 2
AUTHORITY:
P
in seed
Lake Drive Utility Portion — Water utility improvements associated with the Lake Drive
Project.
Statutory Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters
475 and 444 and Section 475.58, Subd. 3.
Statutory Requirements: Pursuant to Minnesota Statutes, Section 475.58, Subd. 3, the
City can issue bonds for street reconstruction projects in accordance with an approved 5-
year street reconstruction plan and in compliance with the public hearing requirements.
The City has fulfilled these requirements.
As part of the City Council's Resolution No. 17-54, Approving Five Year Street
Reconstruction Plan and Preliminary Approval of the Issuance of Street Reconstruction
Bonds, a not -to -exceed principal amount of $5,124,000 was established to finance the
Street Reconstruction Portion.
Pursuant to Minnesota Statutes, Chapter 444 and the resolution awarding the Bonds, the
City will covenant to maintain rates in an amount sufficient to generate revenues to support
the operation of its water and sewer utility funds (the "Utility Funds") and to pay debt
service. The City is required to annually review the budget of their Utility Funds to
determine whether current rates and charges are sufficient and to adjust them as
necessary.
In addition to the West Shadow Utility Portion and Lake Drive Utility Portion of the Bonds,
the City currently has three other bond issues outstanding payable from the City's water
utility funds. The West Shadow Utility portion will be the only portion of any outstanding
bond issue payable from the City's sewer utility funds. The table below shows net
revenues available to pay debt service from the Utility Funds based on calendar year
ended December 31, 2017 and the projected debt service payable from utility revenues,
including the West Shadow Utility Portion and Lake Drive Utility Portion of the Bonds.
Water and Sewer Funds - Net Revenues as of
December 31, 2017
Opergng Revenues
Opergng Expenses
Opergng Incane
Add: Depreciation
Investrnent Earnings
Net Revenues Available for Debt Sery
P.. _ Max DS
R. forA LS
r Fund Sewer Fund
1,150,834 1,698,
(1,245,249) (1,01,821)
(94,415) (202,858)
580,.r 477,094
39,612
66,876
526,001 341,112
483,677 71,714
42,324 269,398
Page 3
SECURITY AND
SOURCE OF
PAYMENT:
The Bonds will be general obligations of the City, secured by its full faith and credit and
taxing power. In addition, the City will pledge net revenues of its Utility Funds.
Security and source of payment information specific to each portion of the Bonds is
outlined below:
Street Reconstruction Portion — The City made its first levy for the Street Reconstruction
Portion of the Bonds in 2018 in the amount of $200,000 for collection in 2019. The taxes
collected in 2019 are projected to cover the interest payments due on August 1, 2019 and
February 1, 2020. Thereafter, each year's collection of taxes will be used to make the
August 1 interest payment due in the collection year and the February 1 principal and
interest payment due the following year.
West Shadow Utility Portion — Net revenues of the City's water and sewer utility funds are
pledged to the payment of the West Shadow Utility Portion of the Bonds. In addition, the
City expects to pay a portion of the debt service on the West Shadow Utility Portion of the
Bonds with assessments filed against benefited properties. Special assessments in the
principal amount of $943,343 are expected to be filed in the fall of 2019 for collection in
2020. Interest on the unpaid balance will be charged at a rate of 5%. It is expected that
each year's collection of assessments will be used to reimburse a portion of the city's debt
service payment from the prior year. Debt service net of the special assessments is
anticipated to be paid from the City's Trunk Utility Fund.
Lake Drive Utility Portion — Net revenues of the City's water utility fund are pledged to the
payment of the Lake Drive Utility Portion of the Bonds. However, debt service is anticipated
to be paid from the City's Trunk Utility Fund.
STRUCTURING In consultation with the City, the Bonds have been structured as follows:
SUMMARY:
P
ined
Street Reconstruction Portion — Debt service on the Street Reconstruction Portion of the
Bonds has been structured to provide one year of interest -only payments ending February
1, 2020. The interest only payments are forecasted to equal approximately $200,000 in
alignment with taxes levied in 2018. If the Bond pricing results in first year interest
payments exceeding $200,000, excess reoffering premium, if any, will be allocated to
make up the difference. Following the first year of interest -only payments, the Street
Reconstruction Portion is structured to provide an approximately level annual levy
requirement for a term of 14 years.
West Shadow Utility Portion — Debt service on the West Shadow Utility Portion of the
Bonds has been structured for a term of 15 years with approximately level annual
payments of debt service.
Lake Drive Utility Portion — Debt service on the Lake Drive Utility Portion of the Bonds has
been structured for a term of 10 years with approximately level annual payments of debt
service.
Page 4
SCHEDULES
ATTACHED:
Schedules attached for the Bonds include:
• Sources and uses of funds
• Pricing Summary
• Net debt service for the Bonds as a whole
• Net debt service for the West Shadow Utility Portion
• Debt service for the West Shadow Utility Portion broken out by water fund and
sewer fund pledge
• Debt service for the Street Reconstruction Portion and Lake Drive Utility Portion
• Projected assessment income
• Aggregate outstanding debt supported by the City's water fund
RISKS/SPECIAL The Bonds have been structured to result in additional proceeds generated from a
CONSIDERATIONS: premium bid. There is no guaranty that the winning bidder will price this issue with a
premium in the amount that we have estimated, which could result in less or more
proceeds than estimated. Adjustments will be made on the day of sale to allocate any
excess premium received to either cover interest costs for the Street Reconstruction
Portion of the Bonds in excess of $200,000 through February 1, 2020 or to provide
additional project cost moneys.
The outcome of this financing will rely on the market conditions at the time of the sale. Any
projections included herein are estimates based on current market conditions.
Principal payments on the West Shadow Utility Portion of the Bonds have been structured
with the assumption of future assessment collections. If actual assessment collections are
different than projected (lower annual collections due to delinquencies or prepayments),
the debt service requirements net of the assessments will differ from what is shown in
these Recommendations.
SALE TERMS AND Variability of Issue Size: A specific provision in the sale terms permits modifications to the
MARKETING: issue size and/or maturity structure to customize the issue once the price and interest rates
are set on the day of sale.
Bid Parameters: In order to maximize the amount of bond proceeds for the Street
Reconstruction Project, the Bonds are being marketed with a minimum permitted bid
requirement of par (100%). This bid requirement is in alignment with the not -to -exceed
principal amount identified in the "AUTHORITY" section of the Recommendations. The
attached schedules illustrate one potential result reflecting these constraints, but actual
results will vary
PREPAYMENT
PROVISIONS:
Springed
Bonds maturing on or after February 1, 2029 may be prepaid at a price of par plus accrued
interest on or after February 1, 2028.
Bank Qualification: The City does not expect to issue more than $10 million in tax-exempt
obligations that count against the $10 million limit for this calendar year; therefore, the
Bonds are designated as bank qualified.
Page 5
$7,169,000
City of Lino Lakes, Minnesota
General Obligation Bonds, Series 2018A
Issue Summary
Total Issue Sources And Uses
Dated 12/19/2018 ( Delivered 12/19/2018
Street Lake Drive
Reconstruction West Shadow Utillity Issue
Portion Utility Portion Portion Summary
Sources Of Funds
Par Amount of Bonds $5,124,000 $1,730,000 $315,000 $7,169,000
Reoffering Premium $89,021 $29,614 $8,835 $127,470
Total Sources $5,213,021 $1,759,614 $323,835 $7,296,470
Uses Of Funds
Deposit to Project Construction Fund $5,125,177 $1,726,760 $317,956 $7,169,893
Costs of Issuance $46,851 $15,818 $2,880 $65,550
Total Underwriter's Discount (0.800%) $40,992 $13,840 $2,520 $57,352
Rounding Amount - $3,196 $479 $3,675
Total Uses $5,213,021 $1,759,614 $323,835 $7,296,470
2018A GO Bonds (9,27.18) I Issue Summary 19/2712018 1 12:56 PM
pringsted
Page 6
$7,169,000
City of Lino Lakes, Minnesota
General Obligation Bonds, Series 2018A
Issue Summary
Pricing Summary
Maturity Type of Bond Coupon Yield Maturity Price YTM Call Date Call Price Dollar Price
Value
02/01/2020 Serial Coupon 3.000% 2.199% 110,000.00 100.877% 110,964.70
02/01/2021 Serial Coupon 3.000% 2.299% 419,000.00 101.438% 425,025.22
02/01/2022 Serial Coupon 3.000% 2.399% 435,000.00 101.791% 442,790.85
02/01/2023 Serial Coupon 3.000% 2.500% 445,000.00 101.944% 453,650.80
02/01/2024 Serial Coupon 3.000% 2.600% 460,000.00 101.904% 468,758.40
02/01/2025 Serial Coupon 3.000% 2.700% 470,000.00 101.681% 477,900.70
02/01/2026 Serial Coupon 3.000% 2.800% 490,000.00 101.282% 496,281.80
02/01/2027 Serial Coupon 4.000% 2.900°/0 505,000.00 107.904% - 544,915.20
02/01/2028 Serial Coupon 4.000% 3.000% 520,000.00 107.924% 561,204.80
02/01/2029 Serial Coupon 3.100% 3.100% 535,000.00 100.000% 535,000.00
02/01/2030 Serial Coupon 3.200% 3.200% 520,000.00 100.000% - 520,000.00
02/01/2031 Serial Coupon 3.250% 3.250% 535,000.00 99.999% c 3.250% 02/01/2028 100.000% 534,994.65
02/01/2032 Serial Coupon 3.300% 3.300% 555,000.00 99.999% c 3.300% 02/01/2028 100.000% 554,994.45
02/01/2033 Serial Coupon 3.350% 3.350% 575,000.00 99.999% c 3.350% 02/01/2028 100.000% 574,994.25
02/01/2034 Serial Coupon 3.400% 3.400% 595,000.00 99.999% c 3.400% 02/01/2028 100.000% 594,994.05
Total - $7,169,000.00 - $7,296,469.87
Bid Information
Par Amount of Bonds $7,169,000.00
Reoffering Premium or (Discount) 127,469.87
Gross Production $7,296,469.87
Total Underwriter's Discount (0.800%) $(57,352.00)
Bid (100.978%) 7,239,117.87
Total Purchase Price $7,239,117.87
Bond Year Dollars $63,819.38
Average Life 8.902 Years
Average Coupon 3.3256101%
Net Interest Cost (NC) 3.2157408%
True Interest Cost (TIC) 3.1912493%
2018A GO Bonds (9.27.18) I Issue Summary 19/27/2018 1 12:56 PM
P
incsted
Page 7
$7,169,000
City of Lino Lakes, Minnesota
General Obligation Bonds, Series 2018A
Issue Summary
NET DEBT SERVICE vs. REVENUE
Date Principal Coupon Interest Total P+l 105% D/S Assessments Water & Sewer Anticipated
Revenue Net Levy
02/01/2019 - - -- -
02/01/2020 110,000.00 3.000% 261,623.83 371,623.83 390,205.02 193,594.36 196,610.66
02/01/2021 419,000.00 3.000% 230,990.00 649,990.00 682,489.50 91,965.78 105,754.47 484,769.25
02/01/2022 435,000.00 3.000% 218,420.00 653,420.00 686,091.00 91,965.77 107,066.98 487,058.25
02/01/2023 445,000.00 3.000% 205,370.00 650,370.00 682,888.50 91,965.77 102,971.98 487,950.75
02/01/2024 460,000.00 3.000% 192,020.00 652,020.00 684,621.00 91,965.77 104,126.98 488,528.25
02/01/2025 470,000.00 3.000% 178,220.00 648,220.00 680,631.00 91,965.77 99,874.48 488,790.75
02/01/2026 490,000.00 3.000% 164,120.00 654,120.00 686,826.00 91,965.78 106,121.97 488,738.25
02/01/2027 505,000.00 4.000% 149,420.00 654,420.00 687,141.00 91,965.78 106,804.47 488,370.75
02/01/2028 520,000.00 4.000% 129,220.00 649,220.00 681,681.00 91,965.77 105,754.48 483,960.75
02/01/2029 535,000.00 3.100% 108,420.00 643,420.00 675,591.00 91,965.78 99,244.47 484,380.75
02/01/2030 520,000.00 3.200% 91,835.00 611,835.00 642,426.75 91,965.78 62,699.22 487,761.75
02/01/2031 535,000.00 3.250% 75,195.00 610,195.00 640,704.75 91,965.77 63,749.23 484,989.75
02/01/2032 555,000.00 3.300% 57,807.50 612,807.50 643,447.88 91,965.77 64,562.98 486,919.13
02/01/2033 575,000.00 3.350% 39,492.50 614,492.50 645,217.13 91,965.77 65,135.23 488,116.13
02/01/2034 595,000.00 3.400% 20,230.00 615,230.00 645,991.50 91,965.78 65,460.72 488,565.00
02/01/2035 - 91,965.77 -
Total $7,169,000.00 - $2,122,383.83 $9,291,383.83 $9,755,953.02 $1,379,486.61 $1,452,922.02 $7,015,510.16
Dated 12/19/2018
Delivery Date 12/19/2018
First Coupon Date 8/01/2019
Yield Statistics
Bond Year Dollars
Average Life
Average Coupon
Net Interest Cost (NIC)
True Interest Cost (11C)
Bond Yield for Arbitrage Purposes
All Inclusive Cost (AIC)
2016A GO Bonds (9.27. /8) I Issue Summary 19/27/2018 112:56 PM
$63,819.38
8.902 Years
3.3256101%
3.2157408%
3.1912493%
3.0859406%
3.3130213%
ingsted Page8
Air
$1,730,000
City of Lino Lakes, Minnesota
General Obligation Bonds, Series 2018A
West Shadow Utility Portion
NET DEBT SERVICE vs. REVENUE
Date Principal Coupon Interest Total P+I 105% D/S Assessments 105% D/S Net of
Assessments
02/01/2019 - -
02/01/2020 85,000.00 3.000% 63,002.33 148,002.33 155,402.45 - 155,402.45
02/01/2021 95,000.00 3.000% 53,870.00 148,870.00 156,313.50 91,965.78 64,347.72
02/01/2022 100,000.00 3.000% 51,020.00 151,020.00 158,571.00 91,965.77 66,605.23
02/01/2023 100,000.00 3.000% 48,020.00 148,020.00 155,421.00 91,965.77 63,455.23
02/01/2024 105,000.00 3.000% 45,020.00 150,020.00 157,521.00 91,965.77 65,555.23
02/01/2025 105,000.00 3.000% 41,870.00 146,870.00 154,213.50 91,965.77 62,247.73
02/01/2026 110,000.00 3.000% 38,720.00 148,720.00 156,156.00 91,965.78 64,190.22
02/01/2027 115,000.00 4.000% 35,420.00 150,420.00 157,941.00 91,965.78 65,975.22
02/01/2028 120,000.00 4.000% 30,820.00 150,820.00 158,361.00 91,965.77 66,395.23
02/01/2029 120,000.00 3.100% 26,020.00 146,020.00 153,321.00 91,965.78 61,355.22
02/01/2030 125,000.00 3.200% 22,300.00 147,300.00 154,665.00 91,965.78 62,699.22
02/01/2031 130,000.00 3.250% 18,300.00 148,300.00 155,715.00 91,965.77 63,749.23
02/01/2032 135,000.00 3.300% 14,075.00 149,075.00 156,528.75 91,965.77 64,562.98
02/01/2033 140,000.00 3.350% 9,620.00 149,620.00 157,101.00 91,965.77 65,135.23
02/01/2034 145,000.00 3.400% 4,930.00 149,930.00 157,426.50 91,965.78 65,460.72
02/01/2035 - 91,965.77 (91,965.77)
Total $1,730,000.00
- $503,007.33 $2,233,007.33 $2,344,657.70 $1,379,486.61 $965,171.09
Dated
Delivery Date
First Coupon Date
Yield Statistics
Bond Year Dollars
Average Life
Average Coupon
Net Interest Cost (NIC)
True Interest Cost (TIC)
Bond Yield for Arbitrage Purposes
All Inclusive Cost (AIC)
2018A GO Bonds (9.27.18) I Utilities - Water & Sewer 19/27/2018 112:56 PM
12/19/2018
12/19/2018
8/01/2019
$15,126.83
8.744 Years
3.3252652%
3.2209876%
3.1973058%
3.0859406%
3.3214822%
ingsted
Page 9
$1,730,000
City of Lino Lakes, Minnesota
General Obligation Bonds, Series 2018A
West Shadow Utility Portion
DEBT SERVICE SCHEDULE
Water Fund
Date
Sewer Fund West Shadow Utility
02/01/2019 - -
02/01/2020 84,365.48 71,036.96 155,402.45
02/01/2021 89,570.25 66,743.25 156,313.50
02/01/2022 87,837.75 70,733.25 158,571.00
02/01/2023 86,105.25 69,315.75 155,421.00
02/01/2024 89,622.75 67,898.25 157,521.00
02/01/2025 87,732.75 66,480.75 154,213.50
02/01/2026 85,842.75 70,313.25 156,156.00
02/01/2027 89,202.75 68,738.25 157,941.00
02/01/2028 91,722.75 66,638.25 158,361.00
02/01/2029 88,782.75 64,538.25 153,321.00
02/01/2030 86,504.25 68,160.75 154,665.00
02/01/2031 89,402.25 66,312.75 155,715.00
02/01/2032 86,842.88 69,685.88 156,528.75
02/01/2033 84,244.13 72, 856.88 157,101.00
02/01/2034 86,856.00 70,570.50 157,426.50
Total $1,314,634.73 $1,030,022.96 $2,344,657.70
2018A GO Bonds (9.27.18 v l Utilities - Water (W. Sha l 9/27/2018 1 2:03 PM
pringsted
Page 10
$5,124,000
City of Lino Lakes, Minnesota
General Obligation Bonds, Series 2018A
Street Reconstruction Portion
DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I
105% Levy
02/01/2019 - -
02/01/2020 - - 187,248.25 187,248.25 196,610.66
02/01/2021 294,000.00 3.000% 167,685.00 461,685.00 484,769.25
02/01/2022 305,000.00 3.000% 158,865.00 463,865.00 487,058.25
02/01/2023 315,000.00 3.000% 149,715.00 464,715.00 487,950.75
02/01/2024 325,000.00 3.000% 140,265.00 465,265.00 488,528.25
02/01/2025 335,000.00 3.000% 130,515.00 465,515.00 488,790.75
02/01/2026 345,000.00 3.000% 120,465.00 465,465.00 488,738.25
02/01/2027 355,000.00 4.000% 110,115.00 465,115.00 488,370.75
02/01/2028 365,000.00 4.000% 95,915.00 460,915.00 483,960.75
02/01/2029 380,000.00 3.100% 81,315.00 461,315.00 484,380.75
02/01/2030 395,000.00 3.200% 69,535.00 464,535.00 487,761.75
02/01/2031 405,000.00 3.250% 56,895.00 461,895.00 484,989.75
02/01/2032 420,000.00 3.300% 43,732.50 463,732.50 486,919.13
02/01/2033 435,000.00 3.350% 29,872.50 464,872.50 488,116.13
02/01/2034 450,000.00 3.400% 15,300.00 465,300.00 488,565.00
Total $5,124,000.00
$1,557,438.25
$6,681,438.25 $7,015,510.16
SIGNIFICANT DATES
Dated 12/19/2018
Delivery Date 12/19/2018
First Coupon Date 8/01/2019
Yield Statistics
Bond Year Dollars
Average Life
$46,840.80
9.141 Years
Average Coupon 3.3249608%
Net Interest Cost (NC) 3.2224245%
True Interest Cost (TIC) 3.1992056%
Bond Yield for Arbitrage Purposes 3.0859406%
All Inclusive Cost (AIC) 3.3180973%
IRS Form 8038
Net Interest Cost 3.0926580%
Weighted Average Maturity 9.108 Years
Interest rates are estimates. Changes in rates may
cause significant alterations to this schedule.
The actual underwriter's discount bid may also vary.
2018A GO Bonds (9.27.18) I Street Reconstruction - ( 19/27/2018 112:56 PM
Springsted
Page 11
P
1•
$315,000
City of Lino Lakes, Minnesota
General Obligation Bonds, Series 2018A
Lake Drive Utility Portion
DEBT SERVICE SCHEDULE
Date
Principal Coupon Interest Total P+I
105% D/S
02/01/2019 - -
02/01/2020 25,000.00 3.000% 11,373.25 36,373.25 38,191.91
02/01/2021 30,000.00 3.000% 9,435.00 39,435.00 41,406.75
02/01/2022 30,000.00 3.000% 8,535.00 38,535.00 40,461.75
02/01/2023 30,000.00 3.000% 7,635.00 37,635.00 39,516.75
02/01/2024 30,000.00 3.000% 6,735.00 36,735.00 38,571.75
02/01/2025 30,000.00 3.000% 5,835.00 35,835.00 37,626.75
02/01/2026 35,000.00 3.000% 4,935.00 39,935.00 41,931.75
02/01/2027 35,000.00 4.000% 3,885.00 38,885.00 40,829.25
02/01/2028 35,000.00 4.000% 2,485.00 37,485.00 39,359.25
02/01/2029 35,000.00 3.100% 1,085.00 36,085.00 37,889.25
Total $315,000.00
$61,938.25
$376,938.25 $395,785.16
SIGNIFICANT DATES
Dated 12/19/2018
12/19/2018
First Coupon Date 8/01/2019
Yield Statistics
Delivery Date
Bond Year Dollars $1,851.75
Average Life 5.879 Years
Average Coupon 3.3448495%
Net Interest Cost (NIC) 3.0038126%
True Interest Cost (TIC) 2.9557608%
Bond Yield for Arbitrage Purposes 3.0859406%
All Inclusive Cost (AIC) 3.1278313%
IRS Form 8038
Net Interest Cost 2.7745697%
Weighted Average Maturity 5.910 Years
Interest rates are estimates. Changes in rates may
cause significant alterations to this schedule.
The actual underwriter's discount bid may also vary.
2018A GO Bonds (9.27.18) I Utilities - Water (Lake D 19272018 112:56 PM
ingsted Page12
$943, 343
City of Lino Lakes, Minnesota
General Obligation Bonds, Series 2018A
West Shadow Utility Portion - Assessments
ASSESSMENT INCOME
Date
Principal Coupon Interest Total P+I
12/31 /2019
12/31/2020 33,006.84 5.000% 58,958.94 91,965.78
12/31/2021 46,448.96 5.000% 45,516.81 91,965.77
12/31/2022 48, 771.41 5.000% 43,194.36 91, 965.77
12/31/2023 51,209.98 5.000% 40,755.79 91,965.77
12/31/2024 53,770.48 5.000% 38,195.29 91,965.77
12/31/2025 56,459.01 5.000% 35,506.77 91,965.78
12/31/2026 59,281.96 5.000% 32,683.82 91,965.78
12/31/2027 62,246.05 5.000% 29,719.72 91,965.77
12/31/2028 65,358.36 5.000% 26,607.42 91,965.78
12/31/2029 68,626.28 5.000% 23,339.50 91,965.78
12/31/2030 72,057.59 5.000% 19,908.18 91,965.77
12/31/2031 75,660.47 5.000% 16,305.30 91,965.77
12/31/2032 79,443.49 5.000% 12,522.28 91,965.77
12/31/2033 83,415.67 5.000% 8,550.11 91,965.78
12/31/2034 87,586.45 5.000% 4,379.32 91,965.77
Total $943,343.00 $436,143.61 $1,379,486.61
SIGNIFICANT DATES
Filing Date 10/01/2019
First Payment Date 12/31/2020
2018A GO Assessments I SINGLE PURPOSE 19/252018 12:54 PM
Springsted
Page 13
City of Lino Lakes, Minnesota
Outstanding Water Revenue Debt
Aggregate Debt Service
Calendar 2010A 2014A 2016A 2018A W. 2018A Lake TOTAL
Year Shadow* Dr.*
2018 62,396.25 130,685.63 164,955.00 - 358,036.88
2019 60,663.75 129,617.25 167,422.50 20,496.61 6,594.79 384,794.90
2020 69,273.75 128,289.00 169,785.00 79,779.00 36,550.50 483,677.25
2021 - 131,881.31 166,845.00 88,704.00 40,934.25 428,364.56
2022 129,888.94 163,905.00 86,971.50 39,989.25 420,754.69
2023 127,655.06 166,162.50 85,239.00 39,044.25 418,100.81
2024 130,373.25 163,117.50 88,677.75 38,099.25 420,267.75
2025 132,759.38 160,072.50 86,787.75 37,154.25 416,773.88
2026 162,225.00 84,897.75 41,380.50 288,503.25
2027 159,075.00 87,837.75 40,094.25 287,007.00
2028 - 90,252.75 38,624.25 128,877.00
2029 87,643.50 37,319.63 124,963.13
2030 85, 328.25 85, 328.25
2031 - 88,122.56 88,122.56
2032 85, 543.50 85, 543.50
2033 - 82,925.06 82,925.06
2034 85,428.00 85,428.00
$192,333.75
$1,041,149.81 $1,643,565.00 $1,314,634.73 $395,785.16 $4,587,468.46
*Estimate
Aggregate 19/28/2018 19:39 AM
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