2021-02-10 CC Packet - Laserfiche WebLink

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Issue Overview Purpose Proceeds from the Bonds will be used to current refund the 2022 through 2029 maturities of the 31, 2021 and to pay costs associated with issuing the Bonds. The Refunded Bonds were issued to finance various street improvements within the City. The Bonds have been sized based on proceeds required to refund the outstanding maturities of the Refunded Bonds. The table below contains the sources and uses of funds for the bond issue. Sources Of Funds Par Amount of Bonds$1,335,000.00 Total Sources $1,335,000.00 Uses Of Funds Deposit to Current Refunding Fund1,290,534.38 Costs of Issuance23,250.00 Total Underwriter's Discount (1.250%)16,687.50 Rounding Amount4,528.12 Total Uses $1,335,000.00 The Refunded Bonds became eligible for prepayment on February 1, 2020. The 2022 through 2029 maturities will be called for prepayment on Ma portion of the proceeds of the Bonds will be wired to Northland Trust Services, Inc., the Paying Agent on the Refunded Bonds, on March 31, 2021 to prepay the outstanding principal and accrued interest on the Refunded Bonds. Based on current market conditions, we have estimated total savings of $72,282 with a present value of $75,497, for the refunding of the Refunded Bonds. The projected annual savings are shown in Attachment 1. Authority The Bonds will be issued pursuant to the authority of Minnesota Statutes, Chapter 475. Structure The Bonds have been structured to result in certain targeted annual levy amounts as provided by the City, resulting in savings in the first 4 years of the structure with negative savings in the last 4 years of the Bonds structure, when compared to the Refunded Bonds, and extending the average maturity of the new issue slightly. Currently, this structure for the Bonds produces an overall positive savings result to the City. The proposed structure for the bond issue and preliminary debt service projections are illustrated in Attachment 2. Northland Securities, Inc. Page 2