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1c Resolution/Dale of Assessment and Water Revenue Bonds CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone 952227.1100 Fax 952,227,1110 Building Inspections Phone 952.227.1180 Fax 952227.1190 Engineering Phone 952.227.1160 Fax 952227.1170 Finance Phone 952.227.1140 Fax: 952227.1110 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 .ie-, - MEMORANDUM TO: Mayor and City Council FROM: Greg Sticha, Finance Director O~ October 5,2005 DATE: SUBJ: Call for Sale of Water Revenue Bonds and Park Refunding Bonds. BACKGROUND Based on discussions with our financial advisors Ehlers & Associates, we are calling for the sale of Water Revenue Bonds and a Park Refunding Bond to refund the 1998A Park GO Bonds. Attached is a presale report from Ehlers for both bonding issues. The presale report describes the intent and background of each sale. Some key points of the sale are: · The water revenue bonds are to be used for the new water treatment plant, wells #10 & #11, acquisition of land for the second water treatment plant and other water system improvements. · The park refunding bonds keep the annual debt levy stable from year to year and achieve an estimated interest cost savings of about $15,500. RECOMMENDA TION Staff recommends that the Council approve the resolution providing for the sale on both bond issues. The actual sale of the bonds will take place at the next council meeting on October 24, 2005. Approval of this item requires a simple majority vote of those City Council members present. ATTACHMENTS 1. Pre-Sale Report dated October 4, 2005 2. Resolution Providing for the Sale of Water Revenue Bonds 3. Pre-Sale Report dated October 6, 2005 4. Resolution Providing for the Sale of Park Refunding Bonds The City 01 Chanhassen · A growing community with clean lakes, quality schools, a charming downtown, thriving businesses, winding trails, and beautiful parks A great place to live, work, and play, City of Chanhassen, Minnesota Pre-Sale Report October 4, 2005 Proposed Issue: $5,520,000 General Obligation Water Revenue, Series 2005B Purpose: The Series 2005B bonds will finance the completion of the new water treatment plant, wells #10 and #11, acquisition of land for the second treatment plant, and other water system improvements. Term/Call Feature: The 2005B Bonds will mature in 15 years, with annual principal payments each February 1st from 2007 through 2021. The bonds will be callable in seven years, meaning that bonds maturing on 2/1/2014 and after may be called on 2/1/2013. Funding Sources: Water revenues (user fees and connection fees). Discussion Issues: The bonds will be sold by competitive bids. The City will issue less than $10 million of tax-exempt debt during 2005. This will make the water revenue bonds and the refunding bonds "bank qualified" and achieve the most competitive interest rates. The debt service on these bonds is included in the update to the water rate study the Council discussed earlier this fall. The study is scheduled to be reviewed at the November 14,2005 work session. Schedule: Pre-Sale Review: October 10,2005 Week of October 17, 2005 Week of October 17, 2005 October 24, 2005 November 16,2005 Distribute Official Statement: Rating Agency Interview Bond Sale: Estimated Closing Date: Attachment: Resolution authorizing Ehlers to proceed with bond sale Proposed debt schedule Ehlers Contacts: Financial Advisors: Mark Ruff (651) 697-8505 Jessica Cook (651) 697-8546 Bruce Dejong (651) 697-8548 Diana Lockard (651) 697-8534 Debbie Holmes (651) 697-8536 Connie Kuck (651) 697-8527 Bond Analysts: Bond Sale Coordinator: The Official Statement for this financing will be mailed to the Council Members at their home address for review prior to the sale date. e EHLERSIC. & ASSOCIATES tNC Resolution No. Council Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale of $5,520,000 General Obligation Water Revenue Bonds, Series 2005A A. WHEREAS, the City Council of the City of Chanhassen, Minnesota, has heretofore determined that it is necessary and expedient to issue the City's $5,520,000 General Obligation Water Revenue Bonds, Series 2005A (the "Bonds"), to finance a water treatment plant, wells, and other water improvements; and; B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOLVED by the City Council of Chanhassen, Minnesota, as follows: 1. Authorization; Findings. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 2. Meeting; Proposal Opening. The City Council shall meet at City Hall on October 24,2005, for the purpose of considering sealed proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, 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 Bonds and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and, after full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this _ day of '-' City Clerk Prepared by Ehlers & Associates, Inc. Chanhassen, MN $5,520,000 General Obligation Water Revenue Bonds, Series 2005B Table of Contents Report Sources & Uses.......................................................................................................................................... ............................................... Debt Service Schedule..................................................................................................................................... ......................................... 2 Net Debt Service Schedule..................................................................................................................................... ................................... 3 O.';C S2,.?lO GO W.'u Reven / SINGLE PURPOSE / 10/4/200.' / .':.'.' PM Ehlers & Associates, Inc. Leaders in Public Finance Chanhassen, MN $5,520,000 General Obligation Water Revenue Bonds, Series 2005B Sources & Uses Dated 11/16/20051 Delivered 11/16/2005 Sources Of Funds Par Amount of Bonds................................................................................................................................................. ........... T otal Sources...................................................................................................................................................................... Uses Of Funds Total Underwriter's Discount (1.200%)................................................................................................................................ Costs of Issuance.............................................................................................................................................. ..................., Deposit to Project Construction Fund................................................................................................................................... Rounding Amount............................................................................................................................................... .................. T otal Uses............................................................................................................................................................................. O!;C$2,.'IOGO W.ferReven / SINGLEPURl'OSE / 10/4/2005/ ..:.,.qPM $5,520,000.00 $5,520,000.00 66,240.00 40,650.00 5,410,000.00 3,110.00 $5,520,000.00 Ehlers & Associates, Inc. Leaders in Public Finance Page 1 Chanhassen, MN $5,520,000 General Obligation Water Revenue Bonds, Series 2005B Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 11/16/2005 08/01/2006 165,521.56 165,521.56 02/01/2007 230,000.00 3.350% 116,838.75 346,838.75 512,360.31 08/01/2007 112,986.25 112,986.25 02/01/2008 290,000.00 3.500% 112,986.25 402,986.25 515,972.50 08/01/2008 107,911.25 107,911.25 02/01/2009 300,000.00 3.650% 107,911.25 407,911.25 515,822.50 08/01/2009 102,436.25 102,436.25 02/01/2010 310,000.00 3.800% 102,436.25 412,436.25 514,872.50 08/01/2010 96,546.25 96,546.25 02/01/2011 320,000.00 3.950% 96,546.25 416,546.25 513,092.50 08/01/2011 90,226.25 90,226.25 02/01/2012 335,000.00 4.050% 90,226.25 425,226.25 515,452.50 08/01/2012 83,442.50 83,442.50 02/01/2013 350,000.00 4.150% 83,442.50 433,442.50 516,885.00 08/01/2013 76,180.00 76,180.00 02/01/2014 360,000.00 4.250% 76,180.00 436,180.00 512,360.00 08/01/2014 68,530.00 68,530.00 02/01/2015 380,000.00 4.350% 68,530.00 448,530.00 517,060.00 08/01/2015 60,265.00 60,265.00 02/01/2016 395,000.00 4.400% 60,265.00 455,265.00 515,530.00 08/01/2016 51,575.00 51,575.00 02/01/2017 410,000.00 4.450% 51,575.00 461,575.00 513,150.00 08/01/2017 42,452.50 42,452.50 02/01/2018 430,000.00 4.550% 42,452.50 472,452.50 514,905.00 08/01/2018 32,670.00 32,670.00 02/01/2019 450,000.00 4.600% 32,670.00 482,670.00 515,340.00 08/01/2019 22,320.00 22,320.00 02/01/2020 470,000.00 4.650% 22,320.00 492,320.00 514,640.00 08/01/2020 11,392.50 11,392.50 02/01/2021 490,000.00 4.650% 11,392.50 501,392.50 512,785.00 Total $5,520,000.00 $2,200,227.81 $7,720,227.81 Yield Statistics Bond Year DOllars....................................................................................................................................................... ............. Average Life.......................................................................................................................................................... ................... Average Coupon............................................................................................................................................. ......................... $49,860.00 9.033 Years 4.4128115% Net Interest Cost (NIC)............................................................................................................................................... .............. True Interest Cost (TIC)............................................... ............................................................................................................ Bond Yield for Arbitrage Purposes........................................................................................................................................... All Inclusive Cost (AIC)................................................................................................................................................ ............ 4.5456635% 4.5600813% 4.3909956% 4.6652947% IRS Form 8038 Net Interest cost................................................................................................................................................... ................... Weighted Average Maturity.................................................................................................................................................. .... 4.4128115% 9.033 Years 05H $5,520 GO WM'lcr Revcn / J1NGLE 1'l.fRPOJ'E / 10/4/2005 / 3:53 PM Ehlers & Associates, Inc. Leaders in Public Finance Page 2 Chanhassen, MN $5,520,000 General Obligation Water Revenue Bonds, Series 2005B Net Debt Service Schedule Date Principal Coupon Interest Total P+I Net New D/S Fiscal Total 11/16/2005 08/01/2006 165,521.56 165,521.56 165,521.56 02/01/2007 230,000.00 3.350% 116,838.75 346,838.75 346,838.75 512,360.31 08/01/2007 112,986.25 112,986.25 112,986.25 02/01/2008 290,000.00 3.500% 112,986.25 402,986.25 402,986.25 515,972.50 08/01/2008 107,911.25 107,911.25 107,911.25 02/01/2009 300,000.00 3.650% 107,911.25 407,911.25 407,911.25 515,822.50 08/01/2009 102,436.25 102,436.25 102,436.25 02/01/2010 310,000.00 3.800% 102,436.25 412,436.25 412,436.25 514,872.50 08/01/2010 96,546.25 96,546.25 96,546.25 02/01/2011 320,000.00 3.950% 96,546.25 416,546.25 416,546.25 513,092.50 08/01/2011 90,226.25 90,226.25 90,226.25 02/01/2012 335,000.00 4.050% 90,226.25 425,226.25 425,226.25 515,452.50 08/01/2012 83,442.50 83,442.50 83,442.50 02/01/2013 350,000.00 4.150% 83,442.50 433,442.50 433,442.50 516,885.00 08/01/2013 76,180.00 76,180.00 76,180.00 02/01/2014 360,000.00 4.250% 76,180.00 436,180.00 436,180.00 512,360.00 08/01/2014 68,530.00 68,530.00 68,530.00 02/01/2015 380,000.00 4.350% 68,530.00 448,530.00 448,530.00 517,060.00 08/01/2015 60,265.00 60,265.00 60,265.00 02/01/2016 395,000.00 4.400% 60,265.00 455,265.00 455,265.00 515,530.00 08/01/2016 51,575.00 51,575.00 51,575.00 02/01/2017 410,000.00 4.450% 51,575.00 461,575.00 461,575.00 513,150.00 08/01/2017 42,452.50 42,452.50 42,452.50 02/01/2018 430,000.00 4.550% 42,452.50 472,452.50 472,452.50 514,905.00 08/01/2018 32,670.00 32,670.00 32,670.00 02/01/2019 450,000.00 4.600% 32,670.00 482,670.00 482,670.00 515,340.00 08/01/2019 22,320.00 22,320.00 22,320.00 02/01/2020 470,000.00 4.650% 22,320.00 492,320.00 492,320.00 514,640.00 08/01/2020 11,392.50 11,392.50 11,392.50 02/01/2021 490,000.00 4.650% 11,392.50 501,392.50 501,392.50 512,785.00 Total $5,520,000.00 $2,200,227.81 $7,720,227.81 $7,720,227.81 05R $5,520 GO W.Ii'fcr Heven I SINCLE FllRl'OSE / 10/4/2005 / S:5S PM Ehlers & Associates, Inc. Leaders in Public Finance Page 3 City of Chanhassen, Minnesota Pre-Sale Report October 6, 2005 Proposed Issue: $2,630, 000 General Obligation Park Refunding Bonds, Series 2005C Purpose: The 2005C Bonds will be a current refunding of the City's General Obligation Park Bonds, Series 1998A. Term/Call Feature: The existing bonds mature in 2010. The 2005C Bonds will also mature on February 1,2010. The bonds will be callable in three years, meaning that the last maturity due on 2/1/2010 may be called on 2/1/2009. Funding Sources: The City collects a market value levy to pay the debt service on the bonds. Discussion Issues: The City is undertaking the refunding for two purposes: to keep the annual debt levy stable from year to year and to achieve interest rate savings. The City has discussed using $1,389,631 of its general fund balance to pay debt service over the next four years in order to reduce the annual debt levy to approximately $1,938,000. This year, $285,000 from the general fund will be used to pre-pay a portion of the 1998A Park Bonds. The remaining outstanding balance of the 1998A Bonds will be refunded and the principal payments will be restructured to keep the debt levy stable from year to year. The interest rate on the outstanding maturities of the existing 1998A Bonds are 4.40% - 4.625%. The anticipated interest rate on the 2005C Refunding Bonds is 3.10% to 3.55%. We expect the City will save approximately $15,600 in interest expense through the refunding. The 2005C Bonds will be sold by competitive bids. The City will issue less than $10 million of tax-exempt debt during 2005. This will make the water revenue bonds and the refunding bonds "bank qualified" and achieve the most competitive interest rates. Schedule: Pre-Sale Review: Distribute Official Statement: October 10,2005 Week of October 17, 2005 Week of October 17,2005 October 24,2005 November 16,2005 Rating Agency Interview Bond Sale: Estimated Closing Date: Attachments: Resolution authorizing Ehlers to proceed with bond sale Proposed debt schedule Ehlers Contacts: Financial Advisors: Bond Analysts: Mark Ruff(651) 697-8505 Jessica Cook (651) 697-8546 Bruce DeJong (651) 697-8548 Diana Lockard (651) 697-8534 Debbie Holmes (651) 697-8536 Connie Kuck (651) 697-8527 Bond Sale Coordinator: The Official Statement for this financing will be mailed to the Council Members at their home address for review prior to the sale date. - EHLERS & ASSOCIATES INC Resolution No. Council Member introduced the following resolution and moved its adoption: Resolution Providing for the Sale of $2,630,000 General Obligation Park Refunding Bonds, Series 2005B A. WHEREAS, the City Council of the City ofChanhassen, Minnesota, has heretofore determined that it is necessary and expedient to issue the City's $2,630,000 General Obligation Park Refunding Bonds, Series 2005B (the "Bonds"), to refund the City's General Obligation Park Bonds, Series 1998A; B. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent financial advisor for the Bonds and is therefore authorized to solicit proposals in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); NOW, THEREFORE, BE IT RESOL YED by the City Council of Chanhassen, Minnesota, as follows: 1. Authorization: Findings. The City Council hereby authorizes Ehlers to solicit proposals for the sale of the Bonds. 2. Meeting: Proposal Opening. The City Council shall meet at City Hall on October 24, 2005, for the purpose of considering sealed proposals for and awarding the sale of the Bonds. 3. Official Statement. In connection with said sale, 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 Bonds and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Council Member and, after full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. Dated this _ day of '_' City Clerk Prepared by Ehlers & Associates, Inc. Chanhassen, MN Proposed Current Refunding of $2,630,000 General Obligation Park Refunding Bonds, Series 2005C Table of Contents Report Prior Original Debt Service............................................................................................................................................................. ......... Debt Service Schedule............................................................................................................................................................ ................ 2 Sources & Uses........................................................................................................................................................................... ............ 3 Debt Service Comparison................................................................................................................................................................... ..... 4 Current Refunding Escrow...................................................................................................................................................................... , 5 0.5".rS"r .98A GO Park Bon / ~1NGLE PURI'OSE / 10/4/2005 / .':.52 PM Ehlers & Associates, Inc. Leaders in Public Finance Chanhassen, MN $2,630,000 General Obligation Park Refunding Bonds, Series 200Se Prior Original Debt Service Date Principal Coupon Interest Total P+/ Fiscal Total 02/01/2006 08/01/2006 64,675.00 64,675.00 02/01/2007 755,000.00 4.400% 64,675.00 819,675.00 884,350.00 08/01/2007 48,065.00 48,065.00 02/01/2008 835,000.00 4.450% 48,065.00 883,065.00 931,130.00 08/01/2008 29,486.25 29,486.25 02/01/2009 920,000.00 4.550% 29,486.25 949,486.25 978,972.50 08/01/2009 8,556.25 8,556.25 02/01/2010 370,000.00 4.625% 8,556.25 378,556.25 387,112.50 Total $2,880,000.00 $301,565.00 $3,181,565.00 Yield Statistics Average Life.................................................................................................................................................... ......................... Weighted Average Maturity {Par BaSiS).................................................................................................................................... Average Coupon....................................................................................................................................................... ............... 2.564 Years 2.564 Years 4.0834800% Refunding Bond Information Refunding Dated Date................................................................................................................................................... .......... Refunding Delivery Date................................................................................................................................................. ......... 11/01/2005 11/01/2005 Ser ose GO Fark Kefunding Fond< $2,630,000 / SINGLE FURl'OSE / 10/ ./200.1 I H:S2 FM Ehlers & Associates, Inc. Leaders in Public Finance Page 1 Chanhassen, MN Proposed Current Refunding of $2,630,000 General Obligation Park Refunding Bonds, Series 2005C Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 11/01/2005 08/01/2006 66,345.00 66,345.00 02/01/2007 495,000.00 3.100% 44,230.00 539,230.00 605,575.00 08/01/2007 36,557.50 36,557.50 02/01/2008 590,000.00 3.250% 36,557.50 626,557.50 663,115.00 08/01/2008 26,970.00 26,970.00 02/01/2009 605,000.00 3.400% 26,970.00 631,970.00 658,940.00 08/01/2009 16,685.00 16,685.00 02/01/2010 940,000.00 3.550% 16,685.00 956,685.00 973,370.00 Total $2,630,000.00 $271,000.00 $2,901,000.00 Yield Statistics Bond Year DOllars................................................................................................................................................ .................... Average Life......................................................................................................................................................... ........... ......... Average Coupon............................................................................................................................................... ....................... $7,907.50 3.007 Years 3.4271261% Net Interest Cost (NIC)................................................................................................................................................. ........... True Interest Cost (TIC)........................................................................................................................................................ ... Bond Yield for Arbitrage Purposes........................................................................................................................................... All Inclusive Cost (AIC).......................................................................................................................................................... .. 3.7597218% 3.7780153% 3.4209994% 4.1834371% IRS Form 8038 Net Interest cost............................................................................................................................................... ....................... Weighted Average Maturity...................................................................................................................................................... 3.4271261 % 3.007 Years Ser05CGOI'''l'kllcfundingBondrSZ,63O,OOO /.17NGLEI'UIII'OSE //0/4/2005 /.~:52I'M Ehlers & Associates, Inc. Leaders in Public Finance Page 2 Chanhassen, MN Proposed Current Refunding of $2,630,000 General Obligation Park Refunding Bonds, Series 2005C Sources & Uses Dated 11/01/20051 Delivered 11/01/2005 SOURCES OF FUNDS Par Amount of Bonds......................................................................................................................................................... .. Transfers from Prior Issue Debt Service Funds................................................................................................................... TOTAL SOURCES.............................................................................................................................................................. USES OF FUNDS Total Underwriter's Discount (1.000%)............................................................................................................................... Costs of Issuance................................................................................................................................................................. Deposit to Current Refunding Fund..................................................................................................................................... Rounding Amount................................................................................................................................................................ TOTAL USES...................................................................................................................................................................... 05curS,-r,/JA C;Ol'arkBvn / SINC;UFURI'OSE /10/4/2005/ 3S2FM $2,630,000.00 285,000.00 $2,915,000.00 26,300.00 29,440.00 2,855,685.53 3,574.47 $2,915,000.00 Ehlers & Associates, Inc. Leaders in Public Finance Page 3 Chanhassen, MN Proposed Current Refunding of $2,630,000 General Obligation Park Refunding Bonds, Series 2005C Debt Service Comparison Date Total P+I Net New D/S Old Net D/S Savings 02/01/2006 (3,574.47) (285,000.00) (281,425.53) 02/01/2007 605,575.00 605,575.00 884,350.00 278,775.00 02/01/2008 663,115.00 663,115.00 931,130.00 268,015.00 02/01/2009 658,940.00 658,940.00 978,972.50 320,032.50 02/01/2010 973,370.00 973,370.00 387,112.50 (586,257.50) Total $2,901,000.00 $2,897,425.53 $2,896,565.00 (860.53) PV Analysis Summary (Net to Net) Gross PV Debt Service Savings.............................................................................................................................................. 297,055.29 Net PV Cashflow Savings @ 4.183%(AIC)............................................................................................................................. 297,055.29 Transfers from Prior Issue Debt Service Fund......................................................................................................................... Contingency or Rounding Amount........................................................................................................................................... Net Present Value Benefit..................................................................................................................................................... ... (285,000.00) 3,574.47 $15,629.76 Net PV Benefit / $2,924,671.86 PV Refunded Debt Service................................................................................................... Net PV Benefit / $2,880,000 Refunded Principal.................................................................................................................... Net PV Benefit / $2,630,000 Refunding Principal................................................................................................................... 0.534% 0.543% 0.594% Refunding Bond Information Refunding Dated Date................................................................................................................................................. ............ Refunding Delivery Date................................................................................................................................................... ....... 11/01/2005 11/01/2005 .'Ier osc GO Forie Refunding Bond. J2,680,000 / J1NGLE FURI'OSE / 10/4/200S / 8..S2 FM Ehlers & Associates, Inc. Leaders in Public Finance Page 4 Chanhassen, MN Proposed Current Refunding of $2,630,000 General Obligation Park Refunding Bonds, Series 2005C Current Refunding Escrow Date Principal Rate Interest Receipts Disbursements Cash Balance 11/01/2005 0.53 0.53 02/01/2006 2,855,685.00 3.378% 24,314.47 2,879,999.47 2,880,000.00 Total $2,855,685.00 $24,314.47 $2,880,000.00 $2,880,000.00 Investment Parameters Investment Model [PV, GIC, or Securities]............. ............. ...................................................... ..... ..... ..... ........... ........ .... ...... Default investment yield target.............................................................................................................................................. Securities Bond Yield Cash Deposit.................................................................................................................................................... ..................... Cost of Investments Purchased with Bond Proceeds........................................................................................................... Total Cost of Investments................................................................................................................................................. .... 0.53 2,855,685.00 $2,855,685.53 Target Cost of Investments at bond yield.............................................................................................................................. Actual positive or (negative) arbitrage................................................................................................................................... $2,855,680.35 (5.18) Yield to Receipt....................................................................................................................................................... .............. Yield for Arbitrage Purposes............................................................................................................................................... .. 3.4202626% 3.4209994% State and Local Government Series (SLGS) rates for.......................................................................................................... 1 0/04/2005 SerO[lCGOPMrkRelUndi"SBondoS2,680,OOO 1 SINGLEPURI'OSE 1 IO/4/200[lI.';[l2PM Ehlers & Associates, Inc. Leaders in Public Finance Page 5