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Presale Report City of St. Anthony, Minnesota May 28, 2019 Page 1 Executive Summary of Proposed Debt Proposed Issue: $2,975,000 General Obligation Bonds, Series 2019A Purposes: The proposed issue includes financing for the following purposes: New Money Portion: To finance various storm water improvements to address flooding issues and installation of utilities and a new sidewalk along County Road C Refunding Portion: To effect a current refunding of the 201A and 2011A GO Improvements bonds. Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters 469.1814 and 475. New Money Portion ($1,505,000): The City is required to hold a public hearing on the abatement and the public purpose it serves. The hearing will be held on June 11, 2019. In addition, the amount of property taxes abated in any year may not exceed (1) 10% of the net tax capacity (NTC) of the City or (2) $200,000, whichever is greater. The greater calculation is 10% of NTC. The City’s pay 2019 tax capacity is 9,094,737 and 10% would equate to 909,474. This portion of the Bonds and other outstanding abatement bonds (portion of the 2016 and 2017 bonds) is approximately $314,000/year, which is below the statutory maximum. Current Refunding of the 2010A and 2011A Bonds (201A portion - $620,000 and 2011A portion - $850,000): This portion of the Bonds is to complete a current refunding of the above referenced prior bonds. This portion of the Bonds is considered to be a current refunding as the prior bonds are callable (pre-payable) now, (call date of 2/1/18 and 2/1/19 respectively). This portion of the Bonds is paid from special assessments against benefitting property owners and a tax levy. The term of this portion of the Bonds coincides with the existing term of the prior bonds being refunded (7 and 8 years respectively). The City is bringing $121,000 and $318,000 in debt service fund balance for the 2010A and 2011A refundings respectively to buy down this portion of the Bonds. Interest rates on the existing 2010A portion of the Bonds are 3.1% to 3.625%. and 3.25% to 4% on the 2011A portion. The refunding is expected to reduce expenses by approximately $143,00 ($8,000/year) from 2020 to 2026 on the 2010A portion and $392,000 ($36,000/year) from 2020 to 2027 on the 2011 portion. The present value benefit of the refundings is estimated to be approximately 2.94% and 4.1% respectively of the refunded debt principal. The Bonds will be general obligations of the City for which its full faith, credit and taxing powers are pledged. Term/Call Feature: The Bonds are being issued for a term of 15 years, 7 months (7 years on the 2010A refunding portion and 8 years on the 2011A refunding protion). Principal on the 68