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05.a Sale Day Report Sale Day Report for City of Scandia, Minnesota 1 Sale Day Report for City of Scandia, Minnesota 2 • • • • • BID TABULATION $3,975,000* General Obligation Bonds, Series 2024A City of Scandia, Minnesota SALE: May 1, 2024 AWARD: TD SECURITIES (USA) LLC Rating: S&P Global Ratings "AA+" Tax Exempt - Bank Qualified NAME OF BIDDER MATURITY (February 1) COUPON RATE REOFFERING YIELD PRICE TRUE INTEREST RATE TD SECURITIES (USA) LLC $4,298,813.60 3.5701% New York, New York 2026 4.000% 3.360% 2027 4.000% 3.230% 2028 4.000% 3.070% 2029 4.000% 2.990% 2030 4.000% 2.950% 2031 4.000% 2.950% 2032 4.000% 2.990% 2033 4.000% 3.000% 2034 4.000% 3.000% 2035 5.000% 3.070% 2036 5.000% 3.140% 2037 5.000% 3.260% 2038 5.000% 3.360% 2039 5.000% 3.450% 2040 5.000% 3.550% NORTHLAND SECURITIES, INC. 3.5706% Minneapolis, Minnesota BAIRD 3.5753% Milwaukee, Wisconsin STIFEL, NICOLAUS 3.6313% Birmingham, Alabama * Subsequent to bid opening the issue size was decreased to $3,635,000. Adjusted Price: $3,934,841.90 Adjusted Net Interest Cost: $1,309,376.85 Adjusted TIC: 3.5804% NAME OF BIDDER TRUE INTEREST RATE Bid Tabulation May 1, 2024 City of Scandia, Minnesota $3,975,000* General Obligation Bonds, Series 2024A Page 2 PNC CAPITAL MARKETS LLC 3.6608% Philadelphia, Pennsylvania HILLTOPSECURITIES 3.6840% Dallas, Texas KEYBANC CAPITAL MARKETS INCORPORATED 3.7570% Cleveland, Ohio BNY MELLON CAPITAL MANAGEMENT 4.7142% Pittsburgh, Pennsylvania City of Scandia, Minnesota $3,635,000 General Obligation Bonds, Series 2024A Issue Summary Total Issue Sources And Uses Dated 05/22/2024 | Delivered 05/22/2024 Street Reconstruction Tax Abatement Issue Summary Sources Of Funds Par Amount of Bonds $3,195,000.00 $440,000.00 $3,635,000.00 Reoffering Premium 298,942.10 41,030.20 339,972.30 Total Sources $3,493,942.10 $481,030.20 $3,974,972.30 Uses Of Funds Total Underwriter's Discount (1.104%)35,272.80 4,857.60 40,130.40 Costs of Issuance 58,753.23 7,546.77 66,300.00 Deposit to Capitalized Interest (CIF) Fund 98,942.92 13,625.83 112,568.75 Deposit to Project Construction Fund 3,300,973.15 455,000.00 3,755,973.15 Total Uses $3,493,942.10 $481,030.20 $3,974,972.30 Series 2024 GO Bonds - FI | Issue Summary | 5/ 1/2024 | 11:04 AM City of Scandia, Minnesota $3,635,000 General Obligation Bonds, Series 2024A Issue Summary Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 05/22/2024 ----- 02/01/2025 --112,568.75 112,568.75 112,568.75 08/01/2025 --81,375.00 81,375.00 - 02/01/2026 180,000.00 4.000%81,375.00 261,375.00 342,750.00 08/01/2026 --77,775.00 77,775.00 - 02/01/2027 190,000.00 4.000%77,775.00 267,775.00 345,550.00 08/01/2027 --73,975.00 73,975.00 - 02/01/2028 195,000.00 4.000%73,975.00 268,975.00 342,950.00 08/01/2028 --70,075.00 70,075.00 - 02/01/2029 200,000.00 4.000%70,075.00 270,075.00 340,150.00 08/01/2029 --66,075.00 66,075.00 - 02/01/2030 210,000.00 4.000%66,075.00 276,075.00 342,150.00 08/01/2030 --61,875.00 61,875.00 - 02/01/2031 215,000.00 4.000%61,875.00 276,875.00 338,750.00 08/01/2031 --57,575.00 57,575.00 - 02/01/2032 225,000.00 4.000%57,575.00 282,575.00 340,150.00 08/01/2032 --53,075.00 53,075.00 - 02/01/2033 240,000.00 4.000%53,075.00 293,075.00 346,150.00 08/01/2033 --48,275.00 48,275.00 - 02/01/2034 245,000.00 4.000%48,275.00 293,275.00 341,550.00 08/01/2034 --43,375.00 43,375.00 - 02/01/2035 255,000.00 5.000%43,375.00 298,375.00 341,750.00 08/01/2035 --37,000.00 37,000.00 - 02/01/2036 265,000.00 5.000%37,000.00 302,000.00 339,000.00 08/01/2036 --30,375.00 30,375.00 - 02/01/2037 280,000.00 5.000%30,375.00 310,375.00 340,750.00 08/01/2037 --23,375.00 23,375.00 - 02/01/2038 295,000.00 5.000%23,375.00 318,375.00 341,750.00 08/01/2038 --16,000.00 16,000.00 - 02/01/2039 315,000.00 5.000%16,000.00 331,000.00 347,000.00 08/01/2039 --8,125.00 8,125.00 - 02/01/2040 325,000.00 5.000%8,125.00 333,125.00 341,250.00 Total $3,635,000.00 -$1,609,218.75 $5,244,218.75 - Yield Statistics Bond Year Dollars $34,444.21 Average Life 9.476 Years Average Coupon 4.6719574% Net Interest Cost (NIC)3.8014427% True Interest Cost (TIC)3.5804987% Bond Yield for Arbitrage Purposes 3.1944619% All Inclusive Cost (AIC)3.8046318% IRS Form 8038 Net Interest Cost 3.3128894% Weighted Average Maturity 9.638 Years Series 2024 GO Bonds - FI | Issue Summary | 5/ 1/2024 | 11:04 AM City of Scandia, Minnesota $3,195,000 General Obligation Bonds, Series 2024A Street Reconstruction Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total 02/01/2025 --98,942.92 98,942.92 (98,942.92)-- 02/01/2026 160,000.00 4.000%143,050.00 303,050.00 -303,050.00 318,202.50 02/01/2027 165,000.00 4.000%136,650.00 301,650.00 -301,650.00 316,732.50 02/01/2028 170,000.00 4.000%130,050.00 300,050.00 -300,050.00 315,052.50 02/01/2029 175,000.00 4.000%123,250.00 298,250.00 -298,250.00 313,162.50 02/01/2030 185,000.00 4.000%116,250.00 301,250.00 -301,250.00 316,312.50 02/01/2031 190,000.00 4.000%108,850.00 298,850.00 -298,850.00 313,792.50 02/01/2032 200,000.00 4.000%101,250.00 301,250.00 -301,250.00 316,312.50 02/01/2033 210,000.00 4.000%93,250.00 303,250.00 -303,250.00 318,412.50 02/01/2034 215,000.00 4.000%84,850.00 299,850.00 -299,850.00 314,842.50 02/01/2035 225,000.00 5.000%76,250.00 301,250.00 -301,250.00 316,312.50 02/01/2036 235,000.00 5.000%65,000.00 300,000.00 -300,000.00 315,000.00 02/01/2037 245,000.00 5.000%53,250.00 298,250.00 -298,250.00 313,162.50 02/01/2038 260,000.00 5.000%41,000.00 301,000.00 -301,000.00 316,050.00 02/01/2039 275,000.00 5.000%28,000.00 303,000.00 -303,000.00 318,150.00 02/01/2040 285,000.00 5.000%14,250.00 299,250.00 -299,250.00 314,212.50 Total $3,195,000.00 -$1,414,142.92 $4,609,142.92 (98,942.92)$4,510,200.00 $4,735,710.00 Significant Dates Dated 5/22/2024 First Coupon Date 2/01/2025 Yield Statistics Bond Year Dollars $30,269.88 Average Life 9.474 Years Average Coupon 4.6717832% Net Interest Cost (NIC)3.8007214% True Interest Cost (TIC)3.5797927% Bond Yield for Arbitrage Purposes 3.1944619% All Inclusive Cost (AIC)3.8057999% Series 2024 GO Bonds - FI | Street Reconstruction | 5/ 1/2024 | 11:04 AM City of Scandia, Minnesota $440,000 General Obligation Bonds, Series 2024A Tax Abatement Debt Service Schedule Date Principal Coupon Interest Total P+I CIF Net New D/S 105% of Total Tax Abatement Revenue Levy/ (Surplus) 02/01/2025 --13,625.83 13,625.83 (13,625.83)---- 02/01/2026 20,000.00 4.000%19,700.00 39,700.00 -39,700.00 41,685.00 29,333.33 12,351.67 02/01/2027 25,000.00 4.000%18,900.00 43,900.00 -43,900.00 46,095.00 29,333.33 16,761.67 02/01/2028 25,000.00 4.000%17,900.00 42,900.00 -42,900.00 45,045.00 29,333.33 15,711.67 02/01/2029 25,000.00 4.000%16,900.00 41,900.00 -41,900.00 43,995.00 29,333.33 14,661.67 02/01/2030 25,000.00 4.000%15,900.00 40,900.00 -40,900.00 42,945.00 29,333.33 13,611.67 02/01/2031 25,000.00 4.000%14,900.00 39,900.00 -39,900.00 41,895.00 29,333.33 12,561.67 02/01/2032 25,000.00 4.000%13,900.00 38,900.00 -38,900.00 40,845.00 29,333.33 11,511.67 02/01/2033 30,000.00 4.000%12,900.00 42,900.00 -42,900.00 45,045.00 29,333.33 15,711.67 02/01/2034 30,000.00 4.000%11,700.00 41,700.00 -41,700.00 43,785.00 29,333.33 14,451.67 02/01/2035 30,000.00 5.000%10,500.00 40,500.00 -40,500.00 42,525.00 29,333.33 13,191.67 02/01/2036 30,000.00 5.000%9,000.00 39,000.00 -39,000.00 40,950.00 29,333.33 11,616.67 02/01/2037 35,000.00 5.000%7,500.00 42,500.00 -42,500.00 44,625.00 29,333.33 15,291.67 02/01/2038 35,000.00 5.000%5,750.00 40,750.00 -40,750.00 42,787.50 29,333.33 13,454.17 02/01/2039 40,000.00 5.000%4,000.00 44,000.00 -44,000.00 46,200.00 29,333.33 16,866.67 02/01/2040 40,000.00 5.000%2,000.00 42,000.00 -42,000.00 44,100.00 29,333.33 14,766.67 Total $440,000.00 -$195,075.83 $635,075.83 (13,625.83)$621,450.00 $652,522.50 $440,000.00 $212,522.50 Significant Dates Dated 5/22/2024 First Coupon Date 2/01/2025 Yield Statistics Bond Year Dollars $4,174.33 Average Life 9.487 Years Average Coupon 4.6732212% Net Interest Cost (NIC)3.8066732% True Interest Cost (TIC)3.5856214% Bond Yield for Arbitrage Purposes 3.1944619% All Inclusive Cost (AIC)3.7961622% Series 2024 GO Bonds - FI | Tax Abatement | 5/ 1/2024 | 11:04 AM City of Scandia, Minnesota $3,635,000 General Obligation Bonds, Series 2024A Issue Summary Detail Costs Of Issuance Dated 05/22/2024 | Delivered 05/22/2024 COSTS OF ISSUANCE DETAIL Municipal Advisor $33,500.00 Bond Counsel (Taft stettinius & Hollister)$16,250.00 Rating Agency Fee (S&P)$15,250.00 Washington County Fee $375.00 Paying Agent (Bond Trust Services)$925.00 TOTAL $66,300.00 Series 2024 GO Bonds - FI | Issue Summary | 5/ 1/2024 | 11:04 AM Summary: Scandia, Minnesota; General Obligation Primary Credit Analyst: Rebecca Y Roman, Chicago (1) 708-219-0455; rebecca.roman@spglobal.com Secondary Contact: Emma Drilias, Madison (1) 312-233-7132; emma.drilias@spglobal.com Table Of Contents Credit Highlights Outlook Related Research WWW.STANDARDANDPOORS.COM/RATINGSDIRECT APRIL 24, 2024 1 Summary: Scandia, Minnesota; General Obligation Credit Profile US$4.135 mil GO bnds ser 2024A dtd 05/22/2024 due 02/01/2040 Long Term Rating AA+/Stable New Scandia GO str reconstruction bnds Long Term Rating AA+/Stable Affirmed Credit Highlights • S&P Global Ratings assigned its 'AA+' rating to Scandia, Minn.'s approximately $4.1 million series 2024A general obligation (GO) bonds. • S&P Global Ratings also affirmed its 'AA+' rating on the city's existing GO debt. • The outlook is stable. Security The bonds are a valid and binding GO of the city, payable from ad valorem taxes. Officials intend to use series 2024 bond proceeds to fund street improvement projects. Credit overview Scandia is a rural, predominantly residential community with a small industrial park that benefits from access to the Twin Cities. Its very strong and stable economic metrics and very strong reserves at more than 60% of expenditures continue to support the current rating. Although we view nominally small reserves, roughly $1.3 million, as a somewhat limiting credit factor, we think forward-looking management will likely maintain a stable budget and manageable debt. The city budgets for break-even operations with a history of substantially outperforming its budget. If revenue exceeds expenditures, the city council may transfer excess funds to capital funds, which it has done in recent years. The fiscal 2023 audit reflects positive general fund results after a capital-related transfer. The fiscal 2024 budget reflects a near break-even surplus. Due to management's history of outperforming conservative budgets, we expect general fund operations will likely remain stable during the next few fiscal years. As management continues using reserves for capital needs, we expect a slight decrease in the available fund balance while it remains above 50% of expenditures. The rating reflects our assessment of Scandia's: • Very strong economic metrics with consistent historical growth, supported by participation in the broad, diverse Minneapolis-St. Paul-Bloomington metropolitan area, and while the city expects assessed valuation will decrease by 1.5% due to housing market stagnation, we posit this will be a temporary decrease because Washington County's WWW.STANDARDANDPOORS.COM/RATINGSDIRECT APRIL 24, 2024 2 expected population growth remains strong; • Favorable finances, supporting very strong budgetary flexibility; during the past three fiscal years, officials have strategically drawn down available reserves to fund capital projects, although management is dedicated to maintaining reserves at more than 50% of general fund expenditures; • Strong management with good financial-management policies and practices under our Financial Management Assessment (FMA) methodology, and a strong Institutional Framework score; practices include monthly budget-to-actual and investment reporting to the city council, multiyear financial planning, long-term capital planning and formal reserve policy to maintain 50% to 65% of expenditures; and • Adequate debt profile with rapid amortization and manageable debt service carrying charges near 10% of expenditures, coupled with no additional debt plans beyond the current issuance. Annual pension contributions are just 1% of expenditures, and the three plans the city participates in are well-funded. Environmental, social, and governance We have analyzed environmental, social, and governance (ESG) factors relative to Scandia's economy, management, financial measures, and debt and liability profile; we view them all as neutral in our credit analysis. Outlook The stable outlook reflects S&P Global Ratings' expectation that Scandia will likely continue to manage current debt while maintaining reserves at more than the 50% formal policy. Downside scenario We could lower the rating if available general fund reserves were to deteriorate below its formal policy or if unexpected capital needs were to pressure operations. Upside scenario With all other factors being equal, we could raise the rating if the city's economy were to diversify, coupled with substantial nominal reserve growth. Scandia, MN -- Key credit metrics Most recent Historical information 2023 2022 2021 Very strong economy Projected per capita EBI % of U.S.141 Market value per capita ($)253,229 Population 4,260 4,182 County unemployment rate(%)2.6 2.6 2.3 3.3 Market value ($000)1,078,757 1,078,757 949,396 809,778 Ten largest taxpayers % of taxable value 5.1 5.1 4.4 4.5 Adequate budgetary performance Operating fund result % of expenditures 0.5 (0.1)(10.7) Total governmental fund result % of expenditures (12.5)(8.9)(9.5) WWW.STANDARDANDPOORS.COM/RATINGSDIRECT APRIL 24, 2024 3 Summary: Scandia, Minnesota; General Obligation Scandia, MN -- Key credit metrics (cont.) Most recent Historical information 2023 2022 2021 Very strong budgetary flexibility Available reserves % of operating expenditures 63.2 68.6 76.5 Total available reserves ($000)1,336 1,333 1,331 Very strong liquidity Total government cash % of governmental fund expenditures 85 120 122 Total government cash % of governmental fund debt service 918 1,011 1,069 Strong management Financial Management Assessment Good Adequate debt & long-term liabilities Debt service % of governmental fund expenditures 9.2 11.9 11.4 Net direct debt % of governmental fund revenue 188 Overall net debt % of market value 2.5 Direct debt 10-year amortization (%)69 Required pension contribution % of governmental fund expenditures 1.1 OPEB actual contribution % of governmental fund expenditures Strong institutional framework EBI--Effective buying income. OPEB--Other postemployment benefits. Related Research • S&P Public Finance Local GO Criteria: How We Adjust Data For Analytic Consistency, Sept. 12, 2013 • Incorporating GASB 67 And 68: Evaluating Pension/OPEB Obligations Under Standard & Poor's U.S. Local Government GO Criteria, Sept. 2, 2015 • Criteria Guidance: Assessing U.S. Public Finance Pension And Other Postemployment Obligations For GO Debt, Local Government GO Ratings, And State Ratings, Oct. 7, 2019 • 2023 Update Of Institutional Framework For U.S. Local Governments, Nov. 28, 2023 • Through The ESG Lens 3.0: The Intersection Of ESG Credit Factors And U.S. Public Finance Credit Factors, March 2, 2022 Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.spglobal.com/ratings for further information. Complete ratings information is available to RatingsDirect subscribers at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.spglobal.com/ratings. WWW.STANDARDANDPOORS.COM/RATINGSDIRECT APRIL 24, 2024 4 Summary: Scandia, Minnesota; General Obligation WWW.STANDARDANDPOORS.COM/RATINGSDIRECT APRIL 24, 2024 5 STANDARD & POOR’S, S&P and RATINGSDIRECT are registered trademarks of Standard & Poor’s Financial Services LLC. S&P may receive compensation for its ratings and certain analyses, normally from issuers or underwriters of securities or from obligors. S&P reserves the right to disseminate its opinions and analyses. S&P's public ratings and analyses are made available on its Web sites, www.spglobal.com/ratings (free of charge), and www.ratingsdirect.com (subscription), and may be distributed through other means, including via S&P publications and third-party redistributors. 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