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Northland Securities, Inc. Page 3
<br />Issue Overview
<br />Purpose
<br />Proceeds from the Bonds will be used to finance the City’s 2024 street and water utility projects
<br />(the “Projects”) and to pay costs associated with issuing the Bonds. The Projects consist of the
<br />following portions:
<br />•The Street Improvement Portion will finance the Carriage Station, Jamaca Court, 15th
<br />Street North, and Hudson Boulevard; and
<br />•The Water Revenue Portion will finance the water portion of the Carriage Station and
<br />Jamaca Court street improvements.
<br />The Bonds have been sized based on estimates provided by City staff and the City Engineer as
<br />of April 25, 2024. The table below contains the sources and uses of funds for the bond issue.
<br />Authority
<br />The Bonds will be issued pursuant to the authority of Minnesota Statutes, Chapters 429, 444,
<br />and 475.
<br />Improvement Portion
<br />Under Chapter 429, an Improvement means any type of improvement made under authority
<br />granted by section 429.021, which includes, but is not limited to, improvements to streets and
<br />sidewalks, storm and sanitary sewer systems, and street lighting systems.
<br />Before issuing bonds under Chapter 429, the City must hold a public hearing on the
<br />Improvements and the proposed bonds, and must then pass a resolution ordering the
<br />improvements by at least a 4/5 majority. Public hearings have been held for the Improvement
<br />Portion and all corresponding resolutions have passed with at least a 4/5 majority.
<br />Water Revenue Portion
<br />Under Chapter 444, general obligation utility revenue bonds may be issued to build, construct,
<br />reconstruct, repair, enlarge, improve, or in any other manner obtain sanitary sewer, water and
<br />storm sewer facilities, and maintain and operate the facilities inside or outside a city’s corporate
<br />limits.
<br />Street
<br />Improvements
<br />Water
<br />Revenue
<br />Issue
<br />Summary
<br />Sources Of Funds
<br />Par Amount of Bonds $4,730,000.00 $500,000.00 $5,230,000.00
<br />Total Sources $4,730,000.00 $500,000.00 $5,230,000.00
<br />Uses Of Funds
<br />Deposit to Project Construction Fund 4,515,600.00 487,400.00 5,003,000.00
<br />Deposit to Capitalized Interest (CIF) Fund 93,382.36 -93,382.36
<br />Total Underwriter's Discount (1.300%)61,490.00 6,500.00 67,990.00
<br />Costs of Issuance 57,221.24 6,048.76 63,270.00
<br />Rounding Amount 2,306.40 51.24 2,357.64
<br />Total Uses $4,730,000.00 $500,000.00 $5,230,000.00
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