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E-4. Approve Resolution Providing for the Sale of: $3,630,000 General Obligation Water Revenue Bonds, Series 2016B; and $10,000,000 General Obligation Water Revenues Bonds, Series 2017A. 0� 101 w CITY OF ClIANHASSEN q S Chanhassen is a Community for Life-ProvidingforToday and PlanningforTomorrow NH K MEMORANDUM TO: Mayor& City Council Members FROM: Greg Sticha, Finance Director DATE: November 14, 2016 SUBJ: Approval of Resolution Providing for the Sale of: $3,630,000 General Obligation Water Revenue Bonds, Series 2016B, and $10,000,000 General Obligation Water Revenue Bonds, Series 2017A PROPOSED MOTION "The City Council approves a resolution providing for the Sale of$3,630,000 General Obligation Water Revenue Bonds, Series 2016B; and $10,000,000 General Obligation Water Revenues Bonds, Series 2017A." Approval of this item requires a simple majority vote of the City Council. BACKGROUND This bond issuance will be for the construction of the West Water Treatment Plant. Total anticipated cost will most likely be just under$17M. These two issuances will account for the majority of the debt needed on the new facility; however, one additional smaller issuance will probably take place in early 2018. The bonds will be issued and awarded on December 12, 2016 and January 9, 2017. RECOMMENDATION Staff recommends that the City Council adopt a resolution providing for the sale of$3,630,000 General Obligation Water Revenue Bonds, Series 2016B; and $10,000,000 General Obligation Water Revenue Bonds, Series 2017A. ATTACHMENTS 1. Resolution. 2. Pre-Sale Report. f:\gregs\bonding\2016 bonding\call for sale memo 11-14 2016b&2017a.docx PH 952.227.1100• www.ci.chanhassen.mn.us• FX 952.227.1110 7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES,MINNESOTA DATE: November 14,2016 RESOLUTION NO: 2016- MOTION BY: SECONDED BY: RESOLUTION PROVIDING FOR THE SALE OF $3,630,000 GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2016B; AND $10,000,000 GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2017A WHEREAS, the City Council of the City of Chanhassen, Minnesota has heretofore determined that it is necessary and expedient to issue the City's $3,630,000 General Obligation Water Revenue Bonds, Series 2016B (the "2016B Bonds") and $10,000,000 General Obligation Water Revenue Bonds, Series 2017A (the "2017A Bonds")to finance the West Water Treatment Plant project in the City; and WHEREAS,the City has retained Ehlers &Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent municipal advisor for the 2016B Bonds and 2017A Bonds in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9). NOW THEREFORE,BE IT RESOLVED by the City Council of the City of Chanhassen, Minnesota, as follows: 1. Authorization; Findings. The City Council hereby authorizes Ehlers to assist the City for the sale of the 2016B Bonds and 2017A Bonds. 2. Meeting; 2016B Bonds Proposal Opening. The City Council shall meet at 7:00 p.m. on December 12, 2016, for the purpose of considering proposals for and awarding the sale of the 2016B Bonds, 3. Meeting; 2017A Bonds Proposal Opening. The City Council shall meet at 7:00 p.m. on January 9, 2017, for the purpose of considering proposals for and awarding the sale of the 2017A Bonds. 4. Official Statement. In connection with said sales, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the 2016B Bonds and 2017A Bonds, and to execute and deliver it on behalf of the City upon its completion. 1 Passed and adopted by the Chanhassen City Council this 14th day of November,2016. ATTEST: Todd Gerhardt, City Manager Denny Laufenburger,Mayor YES NO ABSENT 2 ›• EHLERS , ... LEADERS IN PUBLIC FINANCE November 14, 2016 Pre-Sale Report for City of Chanhassen, Minnesota $3,630,000 General Obligation Water Revenue Bonds, Series 2016B 101 CITY OF CHANHASSEN Prepared by: Nick Anhut, CIPMA Municipal Advisor And Bruce Kimmel, CIPMA Senior Municipal Advisor MEP - --i --- 1-800-552-1171 I www.ehlers-inc.com Executive Summary of Proposed Debt Proposed Issue: $3,630,000 General Obligation Water Revenue Bonds, Series 2016B (the "Bonds") Purposes: The proposed issue includes financing for a portion of the costs of construction of the West Water Treatment Plant and related utility system improvements. Total project costs are estimated to be $17 million with the remainder to be financed by future bond issuance. Debt service will be paid from net revenues of the water utility system. Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters 444 and 475. Chapter 444 allows cities to issue debt without limitation as long as debt service is expected to be paid from water revenues. The Bonds will be general obligations of the City for which its full faith, credit and taxing powers are pledged. Bank Qualification: If the City issues no more than$10,000,000 in tax exempt debt during a calendar year, it can designate those bonds as "Bank Qualified" obligations. Bank qualified status broadens the market for the Bonds, which can result in lower interest rates. The City issued$6,370,000 in tax-exempt bonds earlier in 2016. For the West Water Treatment Plant costs,the City will designate this$3,630,000 bond issue in 2016, with the remaining project costs are intended to be financed in future calendar years. Term/Call Feature: The Bonds are being issued for a 25-year term. Principal on the Bonds will be due on February 1 in the years 2038 through 2042. Interest is payable every six months beginning August 1,2017. Repayment of the Bonds is being structured such that,together with the 2017A Bonds and any future issuance,the full amount will be retired over the 25-year term. The Bonds maturing on and after February 1,2026 will be subject to prepayment at the discretion of the City on February 1,2025 or any date thereafter. Rating: The City's most recent bond issues were rated "AAA" by Standard & Poor's. The City will request a new rating for the Bonds. Basis for Recommendation: Based on our knowledge of your situation,your objectives communicated to us, our advisory relationship as well as characteristics of various municipal financing options; we are recommending the issuance of general obligation bonds as a suitable financing option because: - This financing option is expected to yield the lowest possible interest costs while retaining future flexibility for the repayment of debt. - The City's existing practice and policy to finance its water utility projects with this type of debt issue. Alak Presale Report November 14, 2016 City of Chanhassen, Minnesota Page 1 - The competitive sale approach described below is consistent with the City's historical debt issuance method as well as best practices published by the Government Finance Officers Association(GFOA). Method of Sale/Placement: In order to obtain the lowest interest cost to the City, we will competitively bid the purchase of the Bonds from local and national underwriters/banks. We have included an allowance for discount bidding equal to 1.20% of the principal amount of the issue. The discount is treated as an interest item and provides the underwriter with all or a portion of their compensation in the transaction. If the Bonds are purchased at a price greater than the minimum bid amount(maximum discount),the unused allowance may be used to lower your borrowing amount. Premium Bids: Under current market conditions,most investors in municipal bonds prefer "premium" pricing structures. A premium is achieved when the coupon for any maturity (the interest rate paid by the issuer) exceeds the yield to the investor,resulting in a price paid that is greater than the face value of the bonds. The sum of the amounts paid in excess of face value is considered "reoffering premium." The amount of the premium varies,but it is not uncommon to see premiums for new issues in the range of 2.00%to 10.00%of the face amount of the issue. This means that an issuer with a$2,000,000 offering may receive bids that result in proceeds of$2,040,000 to$2,200,000. Due to the nature of the financing, we are expecting to use any premium as additional net proceeds for the project and reduce the size of future debt issuance. You have the choice to limit the amount of premium in the bid specifications. This may result in fewer bids, but it may also eliminate large adjustments on the day of sale and other uncertainties. Review of Existing Debt: We have reviewed all outstanding indebtedness for the City and find that there are no refunding opportunities at this time. We will continue to monitor the market and the call dates for the City's outstanding debt and will alert you to any future refunding opportunities. Continuing Disclosure: Because the City has more than$10,000,000 in outstanding debt(including this issue) and this issue is over $1,000,000, the City will be agreeing to provide certain updated Annual Financial Information and its Audited Financial Statement annually as well as providing notices of the occurrence of certain reportable events to the Municipal Securities Rulemaking Board(the"MSRB"), as required by rules of the Securities and Exchange Commission (SEC). The City is already obligated to provide such reports for its existing bonds, and has contracted with Ehlers to prepare and file the reports. Arbitrage Monitoring: Because the Bonds are tax-exempt securities/tax credit securities,the City must ensure compliance with certain Internal Revenue Service(IRS)rules throughout the life of the issue. These rules apply to all gross proceeds of the issue, including initial bond proceeds and investment earnings in construction, escrow, debt service,and any reserve funds. How issuers spend bond Presale Report November 14, 2016 City of Chanhassen, Minnesota Page 2 proceeds and how they track interest earnings on funds(arbitrage/yield restriction compliance)are common subjects of IRS inquiries. Your specific responsibilities will be detailed in the Nonarbitrage Certificate prepared by your Bond Attorney and provided at closing. You have retained Ehlers to assist you with compliance with these rules. Risk Factors: Utility Revenue: The City expects to pay the Bonds' debt service with utility funds. If utility revenue is inadequate, the City may have to levy taxes to pay debt service on the Bonds. Market Volatility: The City expects future bond issuance to finance the remainder of the project's costs in 2017 and/or 2018. The decision to issue a portion of the overall financing in future years is being made under the assumption that interest rates for bank qualified bonds offers a lower overall debt cost than issuing the full amount up front. Other Service Providers: This debt issuance will require the engagement of other public finance service providers. This section identifies those other service providers, so Ehlers can coordinate their engagement on your behalf. Where you have previously used a particular firm to provide a service, we have assumed that you will continue that relationship. For services you have not previously required, we have identified a service provider. Fees charged by these service providers will be paid from proceeds of the obligation,unless you notify us that you wish to pay them from other sources. Our pre-sale bond sizing includes a good faith estimate of these fees, so their final fees may vary. If you would like to use a different service provider or have questions on their role please contact us. Bond Attorney: Briggs and Morgan,Professional Association Paying Agent: Bond Trust Services Corporation Rating Agency: Standard&Poor's Global Ratings (S&P) This presale report summarizes our understanding of the City's objectives for the structure and terms of this financing as of this date. As additional facts become known or capital markets conditions change,we may need to modify the structure and/or terms of this financing to achieve results consistent with the City's objectives. Aft Presale Report November 14, 2016 City of Chanhassen, Minnesota Page 3 Proposed Debt Issuance Schedule Pre-Sale Review by City Council: November 14,2016 Distribute Official Statement: Week of November 28,2016 Conference with Rating Agency: Week of November 28,2016 City Council Meeting to Award Sale of the Bonds: December 12,2016 Estimated Closing Date: December 29,2016 Attachments Sources and Uses of Funds Proposed Debt Service Schedule Resolution Authorizing Ehlers to Proceed With Bond Sale Ehlers Contacts Municipal Advisors: Nick Anhut (651)697-8507 Bruce Kimmel (651)697-8572 Disclosure Coordinator: Meghan Lindblom (651)697-8549 Financial Analyst: Alicia Gage (651)697-8551 The Official Statement for this financing will be sent to the City Council at their home or e-mail address for review prior to the sale date. GPresale Report November 14, 2016 City of Chanhassen, Minnesota Page 4 City of Chanhassen, Minnesota $3,630,000 General Obligation Bonds, Series 2016B Assumes Current Market BQ "AAA" Rates plus 25bps Sources & Uses Dated 12/29/2016 I Delivered 12/29/2016 Sources Of Funds Par Amount of Bonds $3,630,000.00 Total Sources $3,630,000.00 Uses Of Funds Total Underwriter's Discount (1.200%) 43,560.00 Costs of issuance 42,000.00 Deposit to Project Fund 3,544,440.00 Total Uses $3,630,000.00 Series 2016B GO Bonds-P I Series 2016 I 11/2/2016 I 4:07 PM 01* EHLERS 3'I1 ,,, LEADERS IN PUBLIC FINANCE City of Chanhassen, Minnesota $3,630,000 General Obligation Bonds, Series 2016B Assumes Current Market BQ"AAA"Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 12/29/2016 - - - - - 08/01/2017 - - 61,410.81 61,410.81 - 02/01/2018 - - 52,141.25 52,141.25 113,552.06 08/01/2018 - - 52,141.25 52,141.25 - 02/01/2019 - - 52,141.25 52,141.25 104,282.50 08/01/2019 - - 52,141.25 52,141.25 - 02/01/2020 - - 52,141.25 52,141.25 104,282.50 08/01/2020 - - 52,141 25 52,141.25 - 02/01/2021 - - 52,141.25 52,141.25 104,282.50 08/01/2021 - - 52,141.25 52,141.25 - 02/01/2022 - - 52,141.25 52,141.25 104,282.50 08/01/2022 - - 52,141 25 52,141.25 - 02/01/2023 - - 52,141.25 52,141.25 104,282.50 08/01/2023 - - 52,141.25 52,141.25 - 02/01/2024 - - 52,141.25 52,141.25 104,282.50 08/01/2024 - - 52,141.25 52,141.25 - 02/01/2025 - - 52,141.25 52,141.25 104,282.50 08/01/202552,141.25 52,141.25 - 02/01/2026 - - 52,141.25 52,141.25 104,282.50 08/01/2026 - - 52,141.25 52,141.25 - 02/01/2027 - - 52,141.25 52,141.25 104,282.50 08/01/2027 - - 52,141.25 52,141.25 - 02/01/2028 - - 52,141.25 52,141.25 104,282.50 08/01/2028 - - 52,141.25 52,141.25 - 02/01/2029 - - 52,141.25 52,141.25 104,282.50 08/01/2029 - - 52,141.25 52,141.25 - 02/01/2030 - - 52,141.25 52,141.25 104,282.50 08/01/2030 - - 52,141.25 52,141.25 - 02/01/2031 - - 52,141.25 52,141.25 104,282.50 08/01/2031 - - 52,141.25 52,141.25 - 02/01/2032 - - 52,141.25 52,141.25 104,282.50 08/01/2032 - - 52,141.25 52,141.25 - 02/01/2033 - - 52,141.25 52,141.25 104,282.50 08/01/2033 - - 52,141.25 52,141.25 - 02/01/2034 - - 52,141.25 52,141.25 104,282.50 08/01/2034 - - 52,141.25 52,141.25 - 02/01/2035 - - 52,141.25 52,141.25 104,282.50 08/01/2035 - - 52,141.25 52,141.25 - 02/01/2036 - - 52,141.25 52,141.25 104,282.50 08/01/2036 - - 52,141.25 52,141.25 - 02/01/2037 - - 52,141.25 52,141.25 104,282.50 08/01/2037 - - 52,141.25 52,141.25 - 02/01/2038 140,000.00 2.800% 52,141.25 192,141.25 244,282.50 08/01/2038 - - 50,181.25 50,181.25 - 02/01/2039 835,000.00 2.850% 50,181.25 885,181.25 935,362.50 08/01/2039 - - 38,282.50 38,282.50 - 02/01/2040 860,000.00 2.850% 38,282.50 898,282.50 936,565.00 08/01/2040 - - 26,027.50 26,027.50 - 02/01/2041 885,000.00 2.900% 26,027.50 911,027.50 937,055.00 08/01/2041 - - 13,195.00 13,195.00 - 02/01/2042 910,000.00 2.900% 13,195.00 923,195.00 936,390.00 Total $3,630,000.00 - $2,454,574.56 $6,084,574.56 - Yield Statistics Bond Year Dollars $85,402.67 Average Life 23.527 Years Average Coupon 2.8741193% Net Interest Cost(NIC) 2.9251248% True Interest Cost(TIC) 2.9446947% Bond Yield for Arbitrage Purposes 2.4999263% All Inclusive Cost(AIC) 3.0142637% IRS Form 8038 Net Interest Cost 2.8741193% Weighted Average Maturity 23.527 Years Series 2016B GO Bonds-P I Series 2016 I 11/2/2016 I 4-07 P1,1 0 EHLERS LEADERS IN PUBLIC FINANCE 1 >:' EHLERS LEADERS IN PUBLIC FINANCE November 14, 2016 Pre-Sale Report for City of Chanhassen, Minnesota $10,000,000 General Obligation Water Revenue Bonds, Series 2017A 11111111 CITY OF CNANBASSEN Prepared by: Nick Anhut, CIPMA Municipal Advisor And Bruce Kimmel, CIPMA Senior Municipal Advisor • • • • — 1-800-552-1171 I www.ehlers-inc.com Executive Summary of Proposed Debt Proposed Issue: $10,000,000 General Obligation Water Revenue Bonds, Series 2017A (the "Bonds") Purposes: The proposed issue includes financing for a portion of the costs of construction of the West Water Treatment Plant and related utility system improvements. Total project costs are estimated to be $17 million with the remainder to be financed by the Series 2016B Bonds and a potential future bond issuance. Debt service will be paid from net revenues of the water utility system. Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters 444 and 475. Chapter 444 allows cities to issue debt without limitation as long as debt service is expected to be paid from water revenues. 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 21-year term. Principal on the Bonds will be due on February 1 in the years 2018 through 2038. Interest is payable every six months beginning August 1,2017. Repayment of the Bonds is being structured together with that of the 2016B Bonds and any future issuance for an overall 25-year term. The Bonds maturing on and after February 1,2026 will be subject to prepayment at the discretion of the City on February 1,2025 or any date thereafter. Bank Qualification: Because the City is expecting to issue no more than$10,000,000 in tax exempt debt during the 2017 calendar year,the City will be able to designate the Bonds as"bank qualified"obligations. Bank qualified status broadens the market for the Bonds,which can result in lower interest rates. Rating: The City's most recent bond issues were rated "AAA" by Standard & Poor's. The City will request a new rating for the Bonds. Basis for Recommendation: Based on our knowledge of your situation,your objectives communicated to us, our advisory relationship as well as characteristics of various municipal financing options; we are recommending the issuance of general obligation bonds as a suitable financing option because: - This financing option is expected to yield the lowest possible interest costs while retaining future flexibility for the repayment of debt. - The City's existing practice and policy to finance its water utility projects with this type of debt issue. - The competitive sale approach described below is consistent with the City's historical debt issuance method as well as best practices published by the Government Finance Officers Association(GFOA). Presale Report November 14, 2016 City of Chanhassen, Minnesota Page 1 Method of Sale/Placement: In order to obtain the lowest interest cost to the City,we will competitively bid the purchase of the Bonds from local and national underwriters/banks. We have included an allowance for discount bidding equal to 0.70% of the principal amount of the issue. The discount is treated as an interest item and provides the underwriter with all or a portion of their compensation in the transaction. If the Bonds are purchased at a price greater than the minimum bid amount(maximum discount),the unused allowance may be used to lower your borrowing amount. Premium Bids: Under current market conditions,most investors in municipal bonds prefer "premium" pricing structures. A premium is achieved when the coupon for any maturity (the interest rate paid by the issuer) exceeds the yield to the investor,resulting in a price paid that is greater than the face value of the bonds. The sum of the amounts paid in excess of face value is considered "reoffering premium." The amount of the premium varies, but it is not uncommon to see premiums for new issues in the range of 2.00%to 10.00%of the face amount of the issue. This means that an issuer with a$2,000,000 offering may receive bids that result in proceeds of$2,040,000 to$2,200,000. Due to the nature of the financing, we are expecting to use any premium as additional net proceeds for the project and reduce the size of future debt issuance. You have the choice to limit the amount of premium in the bid specifications. This may result in fewer bids, but it may also eliminate large adjustments on the day of sale and other uncertainties. Review of Existing Debt: We have reviewed all outstanding indebtedness for the City and find that there are no refunding opportunities at this time. We will continue to monitor the market and the call dates for the City's outstanding debt and will alert you to any future refunding opportunities. Continuing Disclosure: Because the City has more than$10,000,000 in outstanding debt(including this issue) and this issue is over $1,000,000, the City will be agreeing to provide certain updated Annual Financial Information and its Audited Financial Statement annually as well as providing notices of the occurrence of certain reportable events to the Municipal Securities Rulemaking Board(the"MSRB"), as required by rules of the Securities and Exchange Commission (SEC). The City is already obligated to provide such reports for its existing bonds, and has contracted with Ehlers to prepare and file the reports. Arbitrage Monitoring: Because the Bonds are tax-exempt securities/tax credit securities,the City must ensure compliance with certain Internal Revenue Service(IRS)rules throughout the life of the issue. These rules apply to all gross proceeds of the issue,including initial bond proceeds and investment earnings in construction, escrow,debt service,and any reserve funds. How issuers spend bond proceeds and how they track interest earnings on funds(arbitrage/yield restriction compliance)are common subjects of IRS inquiries. Your specific responsibilities will be detailed in the Nonarbitrage Certificate prepared by Presale Report November 14, 2016 City of Chanhassen, Minnesota Page 2 your Bond Attorney and provided at closing. You have retained Ehlers to assist you with compliance with these rules. Risk Factors: Utility Revenue: The City expects to pay the Bond debt service with utility funds. If utility revenue is inadequate,the City may have to levy taxes to pay debt service on the Bonds. Market Volatility: The City expects future bond issuance to finance the remainder of the project's costs in 2018. The decision to issue a portion of the overall financing in future years is being made under the assumption that interest rates for bank qualified bonds offers a lower overall debt cost than issuing the full amount up front. Other Service Providers: This debt issuance will require the engagement of other public finance service providers. This section identifies those other service providers, so Ehlers can coordinate their engagement on your behalf. Where you have previously used a particular firm to provide a service, we have assumed that you will continue that relationship. For services you have not previously required, we have identified a service provider. Fees charged by these service providers will be paid from proceeds of the obligation,unless you notify us that you wish to pay them from other sources. Our pre-sale bond sizing includes a good faith estimate of these fees, so their final fees may vary. If you would like to use a different service provider or have questions on their role please contact us. Bond Attorney: Briggs and Morgan,Professional Association Paying Agent: Bond Trust Services Corporation Rating Agency: Standard&Poor's Global Ratings(S&P) This presale report summarizes our understanding of the City's objectives for the structure and terms of this financing as of this date. As additional facts become known or capital markets conditions change, we may need to modify the structure and/or terms of this financing to achieve results consistent with the City's objectives. ask Presale Report November 14, 2016 ArAir City of Chanhassen, Minnesota Page 3 Proposed Debt Issuance Schedule Pre-Sale Review by City Council: November 14,2016 Distribute Official Statement: Week of November 28,2016 Conference with Rating Agency: Week of November 28,2016 City Council Meeting to Award Sale of the Bonds: January 9,2017 Estimated Closing Date: February 1,2017 Attachments Sources and Uses of Funds Proposed Debt Service Schedule Resolution Authorizing Ehlers to Proceed With Bond Sale Ehlers Contacts Municipal Advisors: Nick Anhut (651)697-8507 Bruce Kimmel (651)697-8572 Disclosure Coordinator: Meghan Lindblom (651)697-8549 Financial Analyst: Alicia Gage (651)697-8551 The Official Statement for this financing will be mailed to the City Council at their home address or e-mailed for review prior to the sale date. Presale Report November 14, 2016 City of Chanhassen, Minnesota Page 4 City of Chanhassen, Minnesota $10,000,000 General Obligation Bonds, Series 2017A Assumes Current Market BQ "AAA" Rates plus 25bps Sources & Uses Dated 02/01/2017 I Delivered 02/01/2017 Sources Of Funds Par Amount of Bonds $10,000,000.00 Total Sources 810,000,000.00 Uses Of Funds Total Underwriter's Discount (0.700%) 70,000.00 Costs of Issuance 66,000.00 Deposit to Project Fund 9,864,000.00 Total Uses $10,000,000.00 Series 2017A GO Bonds-P I Series 2017 I 11/2/2016 I 4:11 PM EHLERS e,. LEADERS IN PUBLIC FINANCE City of Chanhassen, Minnesota $10,000,000 General Obligation Bonds, Series 2017A Assumes Current Market BQ "AAA"Rates plus 25bps Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 02/01/2017 - - - - - 08/01/2017 - - 112,305.00 112,305.00 - 02/01/2018 400,000.00 1.000% 112,305.00 512,305.00 624,610.00 08/01/2018 - - 110,305.00 110,305.00 - 02/01/2019 140,000.00 1.100% 110,305.00 250,305.00 360,610.00 08/01/2019 - - 109,535.00 109,535.00 - 02/01/2020 140,000.00 1.150% 109,535.00 249,535.00 359,070.00 08/01/2020 - - 108,730.00 108,730.00 - 02/01/2021 140,000.00 1.300% 108,730.00 248,730.00 357,460.00 08/01/2021 - - 107,820.00 107,820.00 - 02/01/2022 140,000.00 1.400% 107,820.00 247,820.00 355,640.00 08/01/2022 - - 106,840.00 106,840.00 - 02/01/2023 145,000.00 1.500% 106,840.00 251,840.00 358,680.00 08/01/2023 - - 105,752.50 105,752.50 - 02/01/2024 145,000.00 1.600% 105,752.50 250,752.50 356,505.00 08/01/2024 - - 104,592.50 104,592.50 - 02/01/2025 150,000.00 1.700% 104,592.50 254,592.50 359,185.00 08/01/2025 - - 103,317.50 103,317.50 - 02/01/2026 150,000.00 1.800% 103,317.50 253,317.50 356,635.00 08/01/2026 - - 101,967.50 101,967.50 - 02/01/2027 635,000.00 1.850% 101,967.50 736,967.50 838,935.00 08/01/2027 - - 96,093.75 96,093.75 - 02/01/2028 645,000.00 1.950% 96,093.75 741,093.75 837,187.50 08/01/2028 - - 89,805.00 89,805.00 - 02/01/2029 660,000.00 2.050% 89,805.00 749,805.00 839,610.00 08/01/2029 - - 83,040.00 83,040.00 02/01/2030 670,000.00 2.200% 83,040.00 753,040.00 836,080.00 08/01/2030 - - 75,670.00 75,670.00 02/01/2031 685,000.00 2.300% 75,670.00 760,670.00 836,340.00 08/01/2031 - - 67,792.50 67,792.50 - 02/01/2032 705,000.00 2.400% 67,792.50 772,792.50 840,585.00 08/01/2032 - - 59,332.50 59,332.50 - 02/01/2033 720,000.00 2.500% 59,332.50 779,332.50 838,665.00 08/01/2033 - - 50,332.50 50,332.50 - 02/01/2034 735,000.00 2.600% 50,332.50 785,332.50 835,665.00 08/01/2034 - - 40,777.50 40,777.50 - 02/01/2035 755,000.00 2.650% 40,777.50 795,777.50 836,555.00 08/01/2035 - - 30,773.75 30,773.75 - 02/01/2036 775,000.00 2.700% 30,773.75 805,773.75 836,547.50 08/01/2036 - - 20,311.25 20,311.25 - 02/01/2037 795,000.00 2.750% 20,311.25 815,311.25 835,622.50 08/01/2037 - - 9,380.00 9,380.00 02/01/2038 670,000.00 2.800% 9,380.00 679,380.00 688,760.00 Total $10,000,000.00 - $3,388,947.50 $13,388,947.50 - Yield Statistics Bond Year Dollars $139,335.00 Average Life 13.934 Years Average Coupon 2.4322299% Net Interest Cost(NIC) 2.4824685% True Interest Cost(TIC) 2.4769499% Bond Yield for Arbitrage Purposes 2.4163142% All Inclusive Cost(AIC) 2.5346311% IRS Form 8038 Net Interest Cost 2.4322299% Weighted Average Maturity 13.934 Years Series 2017A GO Bonds-P I Series 2017 1 11/2/2016 I 4:11 PM 0 EHLERS LEADERS IN PUBLIC FINANCE