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Tom Kelly From: Todd Hagen �thagen@ehiers-inc.eorrl>. Sent:. Friday, January 23, 2015 4.K PM To: Tom Kelly Subject: City of Gem Lake, MN - Potential Bond Refunding Attachments: Gem take,. MN Proposed A 2007A Go CIP Bonds I-23-2015-pd.1 Hi Tout, I hope you a.re enjoying the.new year Q: With interest rates:th'rs low, it is.a:good time to consider ALL of the follbwingop#ions: • Payoff all or a part of your existing bonds by using accumulated cast in the.bond fund that is not being invested at its highest potential. • Refi na oce -higher irterest ratebonds by issuing new bonds at a lower interest rate. • Combine a new project financing.with an existing project.refinancirig. • Restructure bonds to meet budgetary constraints. The Refunding Opportunity. We.recentl.y.examined your Outstanding bonds with call dates within a year or two keeping, any negative arbitrage to a minimum andhave found that you mjght want to consider refunding. your 2007A CIP Bonds earlier than their -scheduled February.1,.2016 call date to lock -in today's low rates.. The Savings. Our attached refunding analysis shows an estimated savings of $57.443 or a U28% PV savings over the refunded principal, after all.fi?es and expenses. State law;generally requires.at least a 3%.PV savings, but we would.like to -see it be.between4/o to 6%. Howeveras:with any refundingdecision, this bond may be even a betterrefunding candidate as -we get closer to the Fe:bruary,i, 2016 call date acid/or if rates continue to fall. Ler me know if you are interested in pursuing this. Tha tilts, *Todd. }, EHLERS; '"}fr �Y1 � IfJ�I7t fia Fff pUttUi: :�:. t._r Todd Hagen, CIPJUTA SOni0rFtnmci4i I Ad': iSnf.'V iCm President SoCertrePointe-Driwe tt-a�ez-rr!ars•rrt�.corn I�:•.r,i ic, hi\ 531i3-tt'3 a•Sl l(•12�`7(,1.91.1 dual (65 t t 6.')7_$i;;s lull trcc. 0(00i i52• I t 7t furs a-tpail and any aa:tc.ltments niay.contaiii:ilifortittitiori tis•hicli is privileged or•conlidentini. If �ou arc nQt rite. iti[encledresipient, rtote that any riisclosarc, Copyimg, distribution -or -use oFihc contents.vi ti,is tncssat,e is prohibited. t.fyotl hguc reeeiygtl litis:e titai! id crror;.please destroy it acid notify us immediately by return a -,nail or atour telephone nuiiiber, 500-552-I 17.1.. Any vinws Oropinions. presented in this tmniail.are solely those of the author and may not mpresent the. views. orppinions of ElTlers CIninpanies.'Toview our complete disclaimer, please visit lutl�:.':`t�vt~ �t.ehlets ittc.ctrllrirerrns;,rert ail