3. Award of Sale, Bonds of 2009A
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952,227,1100
Fax: 952,227.1110
Building Inspections
Phone: 952,227,1180
Fax: 952,227,1190
Engineering
Phone: 952,227.1160
Fax: 952,227,1170
Finance
Phone: 952,227.1140
Fax: 952,227.1110
Park & Recreation
Phone: 952,227,1120
Fax: 952,227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952,227.1400
Fax: 952,227.1404
Planning &
Natural Resources
Phone: 952,227,1130
Fax: 952,227,1110
Public Works
1591 Park Road
Phone: 952,227,1300
Fax: 952,227.1310
Senior Center
Phone: 952,227,1125
Fax: 952,227,1110
Web Site
www.ci.chanhassen.mn.us
3
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MEMORANDUM
TO:
Mayor & City Council Members
Greg Sticha, Finance Director ~.?
FROM:
DA TE:
May 11,2009
SUBJ:
Award of Bid, $6,265,000 General Obligation Improvement
Refunding Bonds, Series 2009A
PROPOSED MOTION
"Staff recommends that the City Council awards the bid for issuance of
$6,265,000 General Obligation Improvement Refunding Bonds, Series 2009A to the
low bidder (to be announced at the meeting that evening)."
Approval of this resolution requires a simple majority vote of those City
Council. members present.
BACKGROUND
At our April 13th meeting, Ehler's & Associates and staff presented the
advantages of refunding the G.O. Improvement Bonds, Series 2006A, and the 2005
MnDOT loan. In both cases, refinancing would allow the city to restructure the
debt to ensure that deferred special assessments will be available to make the
future bond payments, and it will also generate a net present value of savings of
2.7% or $237,000. Attached is the staff report from the work session on
April 13th for more background on this refinancing.
During the past week, Standard & Poors (our bond rating agency) conducted
their review process. The results of that rating call and the bids received will be
announced at the council meeting. Representatives from Ehler's & Associates,
will be present on Monday night to discuss the bid results.
RECOMMENDA TION
Staff recommends that the City Council award the bid for issuance of $6,265,000
General Obligation Improvement Refunding Bonds, Series 2009A to the lowest
bidder.
ATTACHMENT
1. Staff Report dated April 13, 2009
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952.227,1100
Fax: 952.227.1110
Building Inspections
Phone: 952.227.1180
Fax: 952.227.1190 .
Engineering
Phone: 952.227,1160
Fax: 952.227.1170
Finance
Phone: 952.227.1140
Fax: 952.227.1110
Park & Recreation
Phone: 952.227.1120
Fax: 952.227.1110
Recreation Center
2310 Coulter Boulevard
Phone: 952,227,1400
Fax: 952.227,1404
Planning &
Natural Resources
Phone: 952,227.1130
Fax: 952.227.1110
Public Works
1591 Park Road
Phone: 952.227.1300
Fax: 952,227,1310
Senior Center
Phone: 952.227.1125
Fax: 952.227.1110 ,
Web Site
www.ci.chanhassen.mn.us
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MEMORANDUM
TO: Mayor & City Council Members
FROM:
Greg Sticha, Finance Director
DA TE:
D~
&~.
April 13, 2009
SUBJ:
Refunding 2005 (MnDOT Loan) & 2006A GO Improvement Bonds
BACKGROUND
On the consent agenda later this evening, staff will be requesting that the City
Council call for the sale of $6,265,000 General Obligation Improvement Refunding
Bonds, Series 2009A. This call for sale is to refund the outstanding G.O. Improvement
Bonds, Series 2006A, and the 2005 MnDOT loan.
2006A
The 2006A GO Improvement Bonds were issued to pay for improvements to the
2005 MUSA area. These improvements are to be paid mostly by special
assessments. The remaining portions not paid by special assessments was paid by
the city's utility funds or MSA funding from the state received back ii12006.
There are really two advantages to refinancing these bonds. One is to take advantage
of the current interest rate environment. The TIC (True Interest Cost) of the 2006A
bonds was 3.79%. The anticipated TIC for the new bonds is expected to be just over
2.8%. Based on that rate, the Net Present Value of Savings would be 2.76%, or
approximately $153,000.
In addition, a portion of the special assessments that are used to payoff the debt are
in "green acres" status. When a property has "green acres" status, special
assessments payments (with interest) are deferred until the property is developed, at
which point the "green acres" status is removed and all assessments and accumulated
interest must be paid.
To date, approximately $2.4 million in special assessments have not been paid on
properties related to this project. Because staff is uncertain as to when the properties
will develop, it would be best to delay the payment of the principal on those bonds
until later in the term of the bonds. By deferring the principal payments on these
bonds, it allows time for the properties to develop and have those eventual special
assessments pay for the final portion of the remaining debt in 2014.
Currently the fund has $2 million in reserves. This refunding calls for the use of
those reserves to pay down a portion of the principal and bond for the remaining
Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow
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Mayor & City Council
April 13, 2009
Page 2
portion of $3.4 million. The special assessments and interest on those assessments
will pay for the majority of the new debt. The remaining portion of the debt not
covered by the special assessments will be paid by unspent proceeds in the
construction fund, therefore not requiring the city to levy for any portion of the bond
payment.
This refinancing brings cost savings to the fund and restructures the debt to match
the eventual collection of the deferred special assessments.
2005 MnDOT LOAN
The 2005 MnDOT Loan was for improvements in the 2005 MUSA area related to
the development and construction of Highway 212. The debt was issued by the state
and repayment is being made for the improvements.
This loan was to be re-paid with a combination of special assessments and an annual
levy of $285,000 for the city's share of the costs of the project. Again with these
special assessments, similar to the 2006A special assessments, a number are in green
acres status and payment has not yet been received. Once these properties develop,
the special assessments will be re-paid with interest.
The refinancing of this loan will accomplish two things as well. One, we will
achieve a lower interest rate with a TIC of 3.2% (the MnDOT Loan had a combined
interest rate of just over 4%). Based on that rate, the Net Present Value of Savings
for this portion of the debt would be 2.6% or approximately $84,000. In addition, the
new bonds will allow the city to restructure the debt for special assessment payments
in years 2015, 2016 and 2017.
SUMMARY
One additional item of note is that since this is a regular refunding and not an
advanced refunding, as was the case with the 2002A GO Library Bonds we discussed
a month ago, there are no statutory requirements to meet a minimum net present
value savings, nor are there any requirements for a minimum savings in our debt
policy.
The total net present value benefit savings for both issues combined would be 2.7%
and the net present value benefit dollar savings would be $237,000. Our financial
Advisers from Ehler's and Associates will be at the meeting to review the potential
call for sale and refunding this evening.
ATTACHMENTS
1. Pres ale Report Prepared by Ehler's.
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Debt Issuance Services
April 13, 2009
Pre-Sale Report
City of Chanhassen, Minnesota
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Debt Issuance Services
Proposed Issue:
Purpose:
Term/Call Feature:
Funding Sources:
Discussion Issues:
$6,265,000 G.O. Improvement Refunding Bonds, Series 2009A to be
secured by the full faith and credit of the taxpayers of the City of
Chanhassen.
The purpose is to provide funds sufficient for a combined current
refunding of the following bond issues:
1) All of the City's callable General Obligation Improvement Bonds,
Series 2006A, dated June 13, 2006 (the "Prior 2006 Bonds"). The Prior
2006 Bonds were issued in the amount of $6,640,000 and are callable in
the amount of $5,330,000. The savings will begin with a lower interest
payment on August 1, 2009. Current interest rates are 3.75% to 3.80%
(outstanding true interest cost of 3.79%).
2) All of the City's callable General Obligation Bond Local Loan
Program, Series 2005, dated April 19, 2005 (the "Prior 2005 Bonds").
The 2005 Prior Bonds were issued in three series in the amount of
$3,654,677 and are callable in the amount of $3,057,124. The savings
will begin with a lower interest payment on August 1, 2009. Current
interest rates are 3.81 % to 4.30%.
Interest is payable each six months. Principal on the 2009A Bonds will
be due on February 1 in the years 2010 through 2017. The 2009A Bonds
maturing February 1, 2016, and thereafter will be subject to prepayment
at the discretion of the City on February 1,2015. This will allow the City
some flexibility with regards to restructuring based on deferred special
assessments.
The Bonds will be general obligations of the City and as such are secured
by a pledge of the City's full faith, credit, and taxing powers. It is the
intent of the City to utilize special assessment revenues and MSA funds to
write down the annual scheduled tax levy.
Total savings are expected to be over $230,000. For the refunding of the
Prior 2006 Bonds, the City will use $2 million in pre-paid special
assessments to write down the cost of the debt service through a cash
deposit at closing. Based on interest rates of 2.30% (TIC of 2.52%), the
estimated savings as a result of the refunding is approximately $153,479
excluding the cash deposit, after all fees and expenses. This savings
expressed in present value terms is 2.8% percent of the principal of the
Prior Bonds.
For the Prior 2005 Bonds, based on interest rates of 1.20% to 3.65% (TIC
of 3.21%), the estimated savings as a result of the refunding is
approximately $84,300. The City will use $300,000 cash to write down
the debt service. This savings expressed in present value terms is 2.60%
of the principal of the Prior Bonds.
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Debt Issuance Services
The 2009A Bonds are also restructuring the payments to defer principal
until 2014. Almost all of the remaining special assessments are in Green
Acres status and are not currently payable. In the attached cash flow are
the expected sources of assessment revenues. MSA funds in the
construction fund are expected to make the interest payments in the
interim.
Risk Factors: It is not certain when the special assessments that are outstanding will be
paid. It is estimated that a likely date is late 2013 or early 2014. If the
assessments are not paid then, the 2009A Bonds will need to be refunded
or paid with other City funds.
Arbitrage: The City will also need to continue to keep its debt service funds within
IRS parameters to avoid penalties on carrying too high of a balance
during the life of the issue.
Bank Qualification: Because the City is issuing less than $30,000,000 in the calendar year, the
City will be able to designate the Bonds as "bank qualified" obligations.
Bank qualified status broadens the market for the Bonds, but the new
federal legislation expanding the cap on bank qualification has increased
the supply of eligible debt. This supply has increased interest rates for
bank qualified bonds
Authority and Rating: The Bonds are being issued pursuant to Minnesota Statues, Chapter 475.
The Bonds are anticipated to be rated by Standard & Poor's at an "AA+"
level. The low bidder of the Bonds may elect to purchase bond insurance
to bring the rating to a "AAA" level.
Proposed Debt Issuance Schedule
Pre-Sale Review:
April 13, 2009
Distribute Official Statement:
April 30, 2009
Rating Agency Conference
Week of May 4,2009
Bond Sale:
May 11,2009
Estimated Closing Date:
Week of June 1, 2009
Attachments:
Sources and Uses of Funds
Proposed Debt Service Schedule
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Debt Issuance Services
Ehlers Contacts:
Financial Advisors: Mark Ruff
Dave Callister
(651) 697-8505
(651-697-8553
(651) 697-8534
(651) 697-8536
(651) 697-8527
Bond Analysts: Diana Lockard
Debbie Holmes
Bond Sale Coordinator: Connie Kuck
The Official Statement for this financing will be mailed to the Council Members at their home
address for review prior to the sale date.
City of Chanhassen, MN
$6,265,000 G.O. Refunding Bonds, Series 2009
Proposed Current Refunding of
Series 2005 Loan & Series 2006A
Table of Contents
Report
ISSUE SUMMARY
Total Issue Sources And Uses
Debt Service Schedule
2
Current Refunding Escrow
4
REF SER 06A
Prior Original Debt Service
5
Debt Service Schedule
6
REF SER 2005 LOAN
Prior Original Debt Service
8
Debt Service Schedule
II
Debt Service Comparison
12
08 cur Ser 06A $6.64M GO I Issue Summary I 3131/2009 I 2:50 PM
Ehlers & Associates, Inc.
Leaders in Public Finance
City of Chanhassen, MN
$6,265,000 G.O. Refunding Bonds, Series 2009
Proposed Current Refunding of
Series 2005 Loan & Series 2006A
Total Issue Sources And Uses
Dated 06/01/20091 Delivered 06/01/2009
Uses Of Funds
Total Underwriter's Discount (1.000%)
Costs ofIssuance
Deposit to Current Refunding Fund
Rounding Amount
34,600.00
25,404.63
5,397,183.33
2,812.04
Ref Ser 2005 Issue
Loan Summary
$2,805,000.00 $6,265,000.00
300,000.00 2,300,000.00
$3,105,000.00 $8,565,000.00
28,050.00 62,650.00
20,595.37 46,000.00
3,056,872.55 8,454,055.88
(517.92) 2,294.12
$3,105,000.00 $8.565,000.00
Ref Ser 06A
Sources Of Funds
Par Amount of Bonds
Transfers from Prior Issue Debt Service Funds
$3,460,000.00
2,000,000.00
Total Sources
$5,460,000.00
Total Uses
$5,460,000.00
08 cur Ser 06A $6.64M GO I Issue Summary I 3/31/2009 I 2:50 PM
Ehlers & Associates, Inc.
Leaders in Public Finance Page 1
City of Chanhassen, MN
$6,265,000 G.O. Refunding Bonds, Series 2009
Proposed Current Refunding of
Series 2005 Loan & Series 2006A
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
06/01/2009
02/01/2010 225,000.00 1.200% 102,933.33 327,933.33 327,933.33
08/01/2010 75,850.00 75,850.00
02/01/2011 200,000.00 1.600% 75,850.00 275,850.00 351,700.00
08/01/2011 74,250.00 74,250.00
02/01/2012 205,000.00 1.750% 74,250.00 279,250.00 353,500.00
08/01/2012 72,456.25 72,456.25
02/01/2013 210,000.00 2.000% 72,456.25 282,456.25 354,912.50
08/01/2013 70,356.25 70,356.25
02/01/2014 3,675,000.00 2.300% 70,356.25 3,745,356.25 3,815,712.50
08/01/2014 28,093.75 28,093.75
02/01/2015 565,000.00 2.700% 28,093.75 593,093.75 621,187.50
08/01/2015 20,466.25 20,466.25
02/01/2016 580,000.00 3.250% 20,466.25 600,466.25 620,932.50
08/01/2016 11,041.25 11,041.25
02/01/2017 605,000.00 3.650% 11,041.25 616,041.25 627,082.50
Total $6,265,000.00 $807,960.83 $7,072,960.83
Yield Statistics
Bond Year Dollars
Average Life
Average Coupon
$30,656.67
4.893 Years
2.6355143%
Net Interest Cost (NIC)
True Interest Cost (TIC)
Bond Yield for Arbitrage Purposes
All Inclusive Cost (Ale)
2.8398744%
2.8463959%
2.6254598%
3.0103851%
IRS Form 8038
Net Interest Cost
Weighted Average Maturity
2.6355143%
4.893 Years
08 cur Ser 06A $6.64M GO I Issue Summary I 3/31/2009 I 2:50 PM
Ehlers & Associates, Inc.
Leaders in Public Finance Page 2
City of Chanhassen, MN
$6,265,000 G.O. Refunding Bonds, Series 2009
Proposed Current Refunding of
Series 2005 Loan & Series 2006A
Debt Service Comparison
Date Total P+I Net New DIS Old Net DIS
02/01/2010 327,933.33 325,639.21 1,076,550.00
02/01/2011 351,700.00 351,700.00 1,784,640.61
02/01/2012 353,500.00 353,500.00 1,725,697.49
02/0112013 354,912.50 354,912.50 1,731,711.81
02/01/2014 3,815,712.50 3,815,712.50 1,485,814.48
02/01/2015 621,187.50 621,187.50 447,505.00
02/01/2016 620,932.50 620,932.50 447,182.92
02/01/2017 627,082.50 627,082.50 446,847.68
02/01/2018 446,498.79
Total $7,072,960.83 $7,070,666.71 $9,592,448.78
PV Analysis Summary (Net to Net)
Savings
750,910.79
1,432,940.61
1,372,197.49
1,376,799.31
(2,329,898.02)
(173,682.50)
(173,749.58)
(180,234.82)
446,498.79
$2,521,782.07
Net PV Cashflow Savings (jiJ 3.000%(User Defined)...
2,535,484.93
Transfers from Prior Issue Debt Service Fund......
Contingency or Rounding Amount....................
Net Present Value Benefit
(2,300,000.00)
2,294.12
$237,779.05
Net PV Benefit / $8,799,672.19 PV Refunded Debt Service
Net PV Benefit / $8,325,000 Refunded Principal...
Net PV Benefit / $6,265,000 Refunding Principal..
2.702%
2.856%
3.795%
Refunding Bond Information
Refunding Dated Date
Refunding Delivery Date
6/01/2009
6/01/2009
08 cur Ser 06A $6.64M GO I Issue Summary I 3/31/2009 I 2:50 PM
Ehlers & Associates, Inc.
Leaders in Public Finance Page 3
City of Cbanbassen, MN
$6,265,000 G.O. Refunding Bonds, Series 2009
Proposed Current Refunding of
Series 2005 Loan & Series 2006A
Current Refunding Escrow
Date Principal Rate Interest Receipts Disbursements
06/01/2009 5,397,183.88 5,397,183.33
07/01/2009 3,056,872.00 0.100% 251.24 3,057,123.24 3,057,123.79
Total $3,056,872.00 $251.24 $8,454,307.12 $8,454,307.12
Cash
Balance
0.55
Investment Parameters
Investment Model [PV, GIC, or Securities]
Default investment yield target
Securities
Unrestricted
Cash Deposit
Cost of Investments Purchased with Bond Proceeds
Total Cost ofInvestments
5,397,183.88
3,056,872.00
$8,454,055.88
Target Cost ofInvestments at bond yield
Actual positive or (negative) arbitrage
$8,447,669.23
(6,386.65)
Yield to Receipt
Yield for Arbitrage Purposes
0.0986466%
2.6254598%
State and Local Government Series (SLGS) rates for
3/16/2009
08 cur Ser 06A $6.64M GO I Issue Summary I 3/31/2009 I 2:50 PM
Ehlers & Associates, Inc.
Leaders in Public Finance Page 4
City of Chanhassen, MN
$6,640,000 General Obligation Improvement Bonds, Series 2006A
Prior Original Debt Service
Date Principal Coupon Interest Total P+I Fiscal Total
02/01/2009
08/01/2009 100,775.00 100,775.00
02/01/2010 875,000.00 3.750% 100,775.00 975,775.00 1,076,550.00
08/01/20 I 0 84,368.75 84,368.75
02/01/20 II 1,105,000.00 3.750% 84,368.75 1,189,368.75 1,273,737.50
08/01/2011 63,650.00 63,650.00
02/01/2012 1,150,000.00 3.800% 63,650.00 1,213,650.00 1,277,300.00
08/01/2012 41,800.00 41,800.00
02/01/2013 1,200,000.00 3.800% 41,800.00 1,241,800.00 1,283,600.00
08/01/2013 19,000.00 19,000.00
02/01/2014 1,000,000.00 3.800% 19,000.00 1,019,000.00 1,038,000.00
Total $5,330,000.00 $619,187.50 $5,949,187.50
Yield Statistics
Base date for A vg. Life & A vg. Coupon Calculation
Average Life
Average Coupon
Weighted Average Maturity (Par Basis)
6/01/2009
2.731 Years
3.7916714%
2.731 Years
Refunding Bond Information
Refunding Dated Date
Refunding Delivery Date
6/01/2009
6/01/2009
Ser 06A $6.64M GO Imp Bds I SINGLE PURPOSE I 3/31/2009 I 2:50 PM
Ehlers & Associates, Inc.
Leaders in Public Finance Page 5
City of Chanhassen, MN
Purpose One - $3,460,000
Proposed Current Refunding of
$6,640,000 General Obligation Improvement Bonds, Series 2006A
Debt Service Schedule
Date
06/01/2009
02/01/2010
08/01/2010
02/01/2011
08/01/2011
02/01/2012
08/01/2012
02/01/2013
08/01/2013
02/01/2014
Total
Principal
Coupon
3,460,000.00
$3,460,000.00
2.300%
Interest Total P+I Fiscal Total
53,053.33 53,053.33 53,053.33
39,790.00 39,790.00
39,790.00 39,790.00 79,580.00
39,790.00 39,790.00
39,790.00 39,790.00 79,580.00
39,790.00 39,790.00
39,790.00 39,790.00 79,580.00
39,790.00 39,790.00
39,790.00 3,499,790.00 3,539,580.00
$371,373.33 $3,831,373.33
Yield Statistics
Bond Year Dollars
Average Life
Average Coupon
$16,146.67
4.667 Years
2.3000000%
Net Interest Cost (NIC)
True Interest Cost (TIC)
Bond Yield for Arbitrage Purposes
All Inclusive Cost (AIC)
2.5142857%
2.5277991%
2.6254598%
2.6972234%
IRS Form 8038
Net Interest Cost
Weighted Average Maturity
2.3000000%
4.667 Years
08 cur Ser 06A $6.64M GO I Ref Ser 06A I 3/31/2009 I 2:50 PM
Ehlers & Associates, Inc.
Leaders in Public Finance Page 6
City of Chanhassen, MN
Purpose One - $3,460,000
Proposed Current Refunding of
$6,640,000 General Obligation Improvement Bonds, Series 2006A
Debt Service Comparison
Date Total P+I Net New D/S Old Net D/S
02/01/2010 53,053.33 50,241.29 1,076,550.00
02/01/2011 79,580.00 79,580.00 1,273,737.50
02/01/2012 79,580.00 79,580.00 1,277,300.00
02/01/2013 79,580.00 79,580.00 1,283,600.00
02/01/2014 3,539,580.00 3,539,580.00 1,038,000.00
Total $3,831,373.33 $3,828,561.29 $5,949,187.50
Savings
1,026,308.71
1,194,157.50
1,197,720.00
1,204,020.00
(2,501,580.00)
$2,120,626.21
PV Analysis Summary (Net to Net)
Gross PV Debt Service Savings.....................
2,150,667.38
Net PV Cashflow Savings @ 3.000%(User Defined)...
2,150,667.38
Transfers from Prior Issue Debt Service Fund......
Contingency or Rounding Amount....................
Net Present Value Benefit
(2,000,000.00)
2,812.04
$153,479.42
Net PV Benefit / $5,558,437.51 PV Refunded Debt Service
Net PV Benefit / $5,330,000 Refunded Principal...
Net PV Benefit / $3,460,000 Refunding Principal..
2.761%
2.880%
4.436%
Refunding Bond Information
Refunding Dated Date
Refundinlt Delivery Date
6/01/2009
6/01/2009
08 cur Ser 06A $6.64M GO I Ref Ser 06A I 3/31/2009 I 2:50 PM
Ehlers & Associates, Inc.
Leaders in Public Finance Page 7
City of Chanhassen, MN
Series 2005 Loan 1 st Draw 2005
Prior Original Debt Service
Date Principal Coupon Interest Total P+I Fiscal Total
07/01/2009
07/01/2010 61,417.64 3.810% 21,415.98 82,833.62 82,833.62
01/01/2011 9,537.98 9,537.98
07/01/2011 63,757.64 3.810% 9,537.98 73,295.62 82,833.60
01/01/2012 8,323.40 8,323.40
07/01/2012 66,186.81 3.810% 8,323.40 74,510.21 82,833.61
01/01/2013 7,062.54 7,062.54
07/01/2013 68,708.53 3.810% 7,062.54 75,771.07 82,833.61
01/01/2014 5,753.64 5,753.64
07/01/2014 71,326.32 3.810% 5,753.64 77,079.96 82,833.60
01/01/2015 4,394.88 4,394.88
07/01/2015 74,043.86 3.810% 4,394.88 78,438.74 82,833.62
01/01/2016 2,984.34 2,984.34
07/01/2016 76,864.92 3.810% 2,984.34 79,849.26 82,833.60
01/01/2017 1,520.07 1,520.07
07/01/2017 79,793.49 3.810% 1,520.07 81,313.56 82,833.63
Total $562,099.21 $100,569.68 $662,668.89
Yield Statistics
Base date for Avg. Life & Avg. Coupon Calculation 6/01/2009
Average Life 4.779 Years
Average Coupon 3.7435677%
Weighted Average Maturity (Par Basis) 4.779 Years
Refunding Bond Information
Refundingpated Date 6/01/2009
Refunding Delivery Date 6/01/2009
Ser 05 Loan 1st Draw I SINGLE PURPOSE I 3/31/2009 I 2:50 PM
Ehlers & Associates, Inc.
Leaders in Public Finance Page 8
City of Chanhassen, MN
Series 2005 Loan 2nd Draw 2006
Prior Original Debt Service
Date Principal Coupon Interest Total P+I Fiscal Total
07/01/2009
07/01/2010 241,229.95 4.110% 91,713.75 332,943.70 332,943.70
01/01/2011 40,899.60 40,899.60
07/01/2011 251,144.50 4.110% 40,899.60 292,044.1 0 332,943.70
01/01/2012 35,738.58 35,738.58
07/01/2012 261,466.53 4.110% 35,738.58 297,205.11 332,943.69
01/01/2013 30,365.44 30,365.44
07/01/2013 272,212.81 4.110% 30,365.44 302,578.25 332,943.69
01/01/2014 24,771.47 24,771.47
07/01/2014 283,400.75 4.110% 24,771.47 308,172.22 332,943.69
01/01/2015 18,947.58 18,947.58
07/01/2015 295,048.53 4.110% 18,947.58 313,996.11 332,943.69
01/01/2016 12,884.33 12,884.33
07/01/2016 307,175.02 4.110% 12,884.33 320,059.35 332,943.68
01/01/2017 6,571.89 6,571.89
07/01/2017 319,799.91 4.110% 6,571.89 326,371.80 332,943.69
Total $2,231,478.00 $432,071.53 $2,663,549.53
Yield Statistics
Base date for Avg. Life & Avg. Coupon Calculation 6/01/2009
Average Life 4.794 Years
Average Coupon 4.0385629%
Weighted Average Maturity (Par Basis) 4.794 Years
Refunding Bond Information
Refunding Dated Date 6/0 I /2009
Refunding Delivery Date 6/01/2009
Ser 05 Loan 2nd Draw I SINGLE PURPOSE I 3/31/2009 I 2:50 PM
Ehlers & Associates, Inc.
Leaders in Public Finance Page 9
City of Chanhassen, MN
Series 2005 Loan 3rd Draw 2007
Prior Original Debt Service
Date Principal Coupon Interest Total P+I Fiscal Total
07/01/2009
07/01/2010 28,297.86 4.300% I 1,332.50 39,630.36 39,630.36
01/01/201 I 5,057.85 5,057.85
07/01/201 I 29,514.66 4.300% 5,057.85 34,572.51 39,630.36
01/01/2012 4,423.28 4,423.28
07/01/2012 30,783.80 4.300% 4,423.28 35,207.08 39,630.36
01/01/2013 3,761.43 3,761.43
07/01/2013 32,107.50 4.300% 3,761.43 35,868.93 39,630.36
01/01/2014 3,07 I.I 2 3,07I.I2
07/01/2014 33,488.12 4.300% 3,07I.I2 36,559.24 39,630.36
01/01/2015 2,35 I.I2 2,35I.I2
07/01/2015 34,928. I I 4.300% 2,35 I.I 2 37,279.23 39,630.35
01/01/2016 1,600.17 1,600.17
07/01/2016 36,430.02 4.300% 1,600.17 38,030. I 9 39,630.36
01/01/2017 816.92 816.92
07/01/2017 37,996.51 4.300% 816.92 38,813.43 39,630.35
Total $263,546.58 $53,496.28 $317,042.86
Yield Statistics
Base date for A vg. Life & A vg. Coupon Calculation 6/01/2009
Average Life 4.804 Years
Average Coupon 4.2254067%
Weighted Average Maturity (Par Basis) 4.804 Years
Refunding Bond Information
Refunding Dated Date 6/01/2009
Refunding Delivery Date 6/01/2009
Ser 05 Loan 3rd Draw I SINGLE PURPOSE I 3/31/2009 I 2:50 PM
Ehlers & Associates, Inc.
Leaders in Public Finance Page 10
City of Chanhassen, MN
Purpose Two - $2,805,000
Proposed Current Refunding of Series 2005 State Loan
Debt Service Schedule
Date Principal Coupon Interest Total P+I Fiscal Total
06/01/2009
02/01/20 I 0 225,000.00 1.200% 49,880.00 274,880.00
07/01/2010 274,880.00
08/01/2010 36,060.00 36,060.00
02/01/2011 200,000.00 1.600% 36,060.00 236,060.00
07/01/2011 272,120.00
08/01/2011 34,460.00 34,460.00
02/01/2012 205,000.00 1.750% 34,460.00 239,460.00
07/01/2012 273,920.00
08/01/2012 32,666.25 32,666.25
02/01/2013 210,000.00 2.000% 32,666.25 242,666.25
07/01/2013 275,332.50
08/01/2013 30,566.25 30,566.25
02/01/2014 215,000.00 2.300% 30,566.25 245,566.25
07/01/2014 276,132.50
08/01/2014 28,093.75 28,093.75
02/01/2015 565,000.00 2.700% 28,093.75 593,093.75
07/01/2015 621,187.50
08/01/2015 20,466.25 20,466.25
02/01/2016 580,000.00 3.250% 20,466.25 600,466.25
07/01/2016 620,932.50
08/01/2016 11,041.25 11,041.25
02/01/2017 605,000.00 3.650% 11,041.25 616,041.25
07/01/2017 627,082.50
Total $2,805,000.00 $436,587.50 $3,241,587.50
Yield Statistics
Bond Year Dollars $14,510.00
Average Life 5.173 Years
Average Coupon 3.0088732%
Net Interest Cost (NIC) 3.2021881%
True In~res~ Cost (TIC) .H"_........___._.___ . 3.2066984%
Bond Yield for Arbitrage Purposes 2.6254598%
All Inclusive Cost (AIC) 3.3651857%
IRS Form 8038
Net Interest Cost 3.0088732%
Weighted Average Maturity 5.173 Years
08 cur Ser 06A $6.64M GO I Ref Ser 2005 Loan I 3131/2009 I 2:50 PM
Ehlers & Associates, Inc.
Leaders in Public Finance Page 11
City of Chanhassen, MN
Purpose Two - $2,805,000
Proposed Current Refunding of Series 2005 State Loan
Debt Service Comparison
Date Total P+I Net New DIS Old Net DIS Savinas
02/01/2010 274,880.00 275,397.92 (275,397.92)
02/01/2011 272,120.00 272,120.00 510,903.11 238,783.11
02/01/2012 273,920.00 273,920.00 448,397.49 174,477.49
02/01/2013 275,332.50 275,332.50 448,111.81 172,779.31
02/01/2014 276,132.50 276,132.50 447,814.48 171,681.98
02101/2015 621,187.50 621,187.50 447,505.00 (173,682.50)
02/01/2016 620,932.50 620,932.50 447,182.92 (173,749.58)
02/01/2017 627,082.50 627,082.50 446,847.68 (180,234.82)
02/01/2018 446,498.79 446,498.79
Total $3,241,587.50 $3,242,105.42 $3,643,261.28 $401,155.86
PV Analvsis Summary (Net to Net)
Gross PV Debt Service Savings.....................
384,817.55
Net PV Cashflow Savings (iiJ 3.000%(User Defined)...
384,817.55
Transfers from Prior Issue Debt Service Fund......
Contingency or Rounding Amount....................
Net Present Value Benefit
(300,000.00)
(517.92)
$84,299.63
Net PV Benefit / $3,241,234.68 PV Refunded Debt Service
Net PV Benefit / $2,995,000 Refunded Principal...
Net PV Benefit / $2,805,000 Refunding Principal..
2.601%
2.815%
3.005%
Refundina Bond Information
Refunding Dated Date
Refunding Delivery Date
6/01/2009
6/01/2009
08 cur Ser 06A $6.64M GO I Ref Ser 2005 Loan I 3131/2009 I 2:50 PM
Ehlers & Associates, Inc.
Leaders in Public Finance Page 12