9.b 2 Bond Issue SummaryPage 1
City of Scandia, Minnesota
$4,400,000
General Obligation Street Reconstruction Bonds, Series 2018A
Bond Issue Summary
February 20, 2018
PURPOSE:Proceeds from the Bonds will be used to finance street reconstruction
projects including reclaiming existing streets, culvert replacement (as
needed), minor ditching and guard rail replacement and to pay costs
associated with the issuance of the Bonds. The Bonds have been sized
based on engineer estimates.
FINANCE PLAN:The Bonds will be issued pursuant to the authority of Minnesota Statutes,
Section 475.58, Subdivision 3b. The Bonds have been structured to result
in relatively level annual debt service payments over 15 years and will be
payable from property taxes. The structure includes a City contribution
of approximately $2,105,000 of cash on hand to cover a portion of the
construction costs.
Preliminary Terms:
A rating will be requested from Standard and Poor’s.
Bonds maturing on and after December 15, 2026 will be subject to
redemption on December 15, 2025 and any day thereafter at a
price of par plus accrued interest
Estimated Award Date: Wednesday, May 22, 2018
Estimated Closing Date: Tuesday, June 19, 2018
Preliminary
on
02/20/2018
Par Amount $4,400,000
Average Interest Rate 3.23%
True Interest Cost (TIC) 3.37%
Page 2
EXHIBIT A – SOURCES AND USES
Sources Of Funds
Par Amount of Bonds $4,400,000.00
Planned Issuer Equity Contribution 2,105,000.00
Total Sources $6,505,000.00
Uses Of Funds
Total Underwriter's Discount (1.250%)55,000.00
Costs of Issuance 23,500.00
Deposit to Project Construction Fund 6,425,650.00
Rounding Amount 850.00
Total Uses $6,505,000.00
Page 3
EXHIBIT B – DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I Fiscal Total
06/19/2018 -----
06/15/2019 --130,338.03 130,338.03 -
12/15/2019 185,000.00 2.050%65,901.25 250,901.25 381,239.28
06/15/2020 --64,005.00 64,005.00 -
12/15/2020 250,000.00 2.200%64,005.00 314,005.00 378,010.00
06/15/2021 --61,255.00 61,255.00 -
12/15/2021 260,000.00 2.300%61,255.00 321,255.00 382,510.00
06/15/2022 --58,265.00 58,265.00 -
12/15/2022 265,000.00 2.450%58,265.00 323,265.00 381,530.00
06/15/2023 --55,018.75 55,018.75 -
12/15/2023 270,000.00 2.550%55,018.75 325,018.75 380,037.50
06/15/2024 --51,576.25 51,576.25 -
12/15/2024 275,000.00 2.650%51,576.25 326,576.25 378,152.50
06/15/2025 --47,932.50 47,932.50 -
12/15/2025 285,000.00 2.800%47,932.50 332,932.50 380,865.00
06/15/2026 --43,942.50 43,942.50 -
12/15/2026 290,000.00 3.000%43,942.50 333,942.50 377,885.00
06/15/2027 --39,592.50 39,592.50 -
12/15/2027 300,000.00 3.100%39,592.50 339,592.50 379,185.00
06/15/2028 --34,942.50 34,942.50 -
12/15/2028 310,000.00 3.200%34,942.50 344,942.50 379,885.00
06/15/2029 --29,982.50 29,982.50 -
12/15/2029 320,000.00 3.300%29,982.50 349,982.50 379,965.00
06/15/2030 --24,702.50 24,702.50 -
12/15/2030 330,000.00 3.400%24,702.50 354,702.50 379,405.00
06/15/2031 --19,092.50 19,092.50 -
12/15/2031 340,000.00 3.500%19,092.50 359,092.50 378,185.00
06/15/2032 --13,142.50 13,142.50 -
12/15/2032 355,000.00 3.600%13,142.50 368,142.50 381,285.00
06/15/2033 --6,752.50 6,752.50 -
12/15/2033 365,000.00 3.700%6,752.50 371,752.50 378,505.00
Total $4,400,000.00 - $1,296,644.28 $5,696,644.28 -
Date And Term Structure
Dated 6/19/2018
Delivery Date 6/19/2018
First available call date 12/15/2025
Call Price 100.000%
YieldStatistics
Bond Year Dollars $40,136.11
Average Life 9.122 Years
Average Coupon 3.2306176%
Net Interest Cost (NIC)3.3676513%
True Interest Cost (TIC)3.3687373%
All Inclusive Cost (AIC)3.4395775%
Page 4
EXHIBIT C – PRELIMINARY LEVY SCHEDULE
Date Total P+I 105%Levy Levy Year
Collection
Year
12/15/2018 --
12/15/2019 381,239.28 400,301.24 2018 2019
12/15/2020 378,010.00 396,910.50 2019 2020
12/15/2021 382,510.00 401,635.50 2020 2021
12/15/2022 381,530.00 400,606.50 2021 2022
12/15/2023 380,037.50 399,039.38 2022 2023
12/15/2024 378,152.50 397,060.13 2023 2024
12/15/2025 380,865.00 399,908.25 2024 2025
12/15/2026 377,885.00 396,779.25 2025 2026
12/15/2027 379,185.00 398,144.25 2026 2027
12/15/2028 379,885.00 398,879.25 2027 2028
12/15/2029 379,965.00 398,963.25 2028 2029
12/15/2030 379,405.00 398,375.25 2029 2030
12/15/2031 378,185.00 397,094.25 2030 2031
12/15/2032 381,285.00 400,349.25 2031 2032
12/15/2033 378,505.00 397,430.25 2032 2033
Total $5,696,644.28 $5,981,476.49