HomeMy WebLinkAbout11A General Obligation Improvement Bonds Series 2016B .�
�� EHLERS
'����'�' LEADERS IN PUBLIC FINANCE
October 19, 2016
Sale Day Report for
City of Cottage Grove, Minnesota
$4,275,000 General Obligation Improvement
Bonds, Series 2016B
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Prepared by:
Shelly Eldridge, CIPMA
Senior Municipal Advisor
Sean Lentz, CIPMA
Senior Municipal Advisor
and
Stacie Kvilvang, CIPMA
Senior Municipal Advisor
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Sale Day Report — October 19, 2016
City of Cottage Grove, Minnesota
$4,275,000 General Obligation Improvement Bonds, Series 2016B
Purpose: For the purpose of financing for the City's 2016 and 2017 Pavement
Management Improvement Projects.
Rating: Standard & Poor's Credit Markets "AA+"
Number of Bids: 6
Low Bidder: FTN Financial Capital Markets, Memphis, Tennessee
Comparison from Low Bid High Bid
Lowest to Highest Bid: 1.7944% 1.9072%
(TIC as bid)
Summa of Results: Results of Sale
Principal Amount*: ' $4,275,000
Underwriter's Discount: $22,959
Reoffering Premium: $97,920
True Interest Cost: 1.7953%
Costs of Issuance: $48,217
Yield: 0.900% - 2.100%
Total Net P&I $5,030,820
Notes: *The size of the bond issue was reduced from the projected amount
due to a reduction in underwriter's discount, less in cost of issuance
and a premium bid.
Closing Date: November 16, 2016
City Council Action: Resolution authorizing issuance, awarding the sale, prescribing the
form and details and providing for the payment of$4,275,000 General
Obligation Improvement Bonds, Series 2016B.
Attachments: • Bid Tabulation
• Sources and Uses of Funds
• Updated Debt Service Schedules
• BBI Graph
• Draft Bond Resolution (Distributed in City Council Packets)
� Sale Day Report
City of Cottage Grove, Minnesota
$4,275,000 General Obligation Improvement Bonds, Series 2016B October 19, 2016
r EHLERS
LEADERS IN PUBLIC FINANCE
BID TABULATION
$4,400,000* General Obligation Improvement Bonds, Series 2016B
City of Cottage Grove, Minnesota
SALE: October 19, 2016
AWARD: FTN FINANCIAL CAPITAL MARKETS
� Rating: Standard&Poor's Credit Markets "AA+" BBI: 3.28%
Bank Qualified
NET TRUE
MATURITY REOFFERING INTEREST INTEREST
NAME OF BIDDER Februar 1) RATE YIELD PRICE COST RATE
FTN FINANCIAL $4,477,151.13 $697,846.79 1.7944%
CAPITAL MARKETS
Memphis,Tennessee 2018 2.000% 0.900%
2019 2.000% 1.000%
2020 2.000% 1.120%
2021 2.000% 1.170%
2022 2.000% 1.250%
2023 2.000% 1.300°/a
2024 2.000% 1.400%
2025 2.000% 1.500%
2026 2.000% 1.600%
2027 2.000% 1.700%
2028 2.000% 1.800%
2029 2.000% 1.850%
2030 2.000% 1.900%
2031 2.000% 2.000%
2032t 2.100% 2.100%
2033t 2.100% 2.100%
� Subsequent to bid opening the issue size was decreased to $4,275,000.
Adjusted Price - $4,349,960.06 Adjusted Net Interest Cost - $680,859.94 Adjusted TIC - 1.7953%
'$420,000 Term Bond due 2033 with mandatory redemption in 2032.
�--�-��;� - 1-800-552-1171 I www.ehlers-inc.com
NET TRUE
MATURITY REOFFERING INTEREST INTEREST
NAME OF BIDDER (February 1) RATE YIELD PRICE COST RATE
PIPER JAFFRAY $4,600,638.70 $711,734.84 1.8094%
Minneapolis,Minnesota 2018 3.000%
2019 3.000%
2020 3.000%
2021 3.000%
2022 3.000%
2023 3.000%
2024 3.000%
2025 3.000°/a
2026 3.000%
2027 2.000%
2028 2.000%
2029 2.000%
2030 2.000%
2031 2.050%
2032 2.100%
2033 2.150%
NORTHLAND SECURITIES,INC. $4,472,932.70 $720,011.59 1.8508%
Minneapolis,Minnesota 2018 2.000%
2019 2.000%
2020 2.000%
2021 2.000%
2022 2.000%
2023 2.000%
2024 2.000%
2025 2.000°/a
2026 2.000°/a
2027 2.000°/a
2028 2.000%
2029 2.000%
2030 2.000%
2031 2.125%
2032 2.250%
2033 2.375%
� Bid Tabulation October 19, 2016
City of Cottage Grove, Minnesota
$4,400,000* General Obligation Improvement Bonds, Series 2016B
NET TRUE
MATURITY REOFFERING INTEREST INTEREST
NAME OF BIDDER (February 1) RATE YIELD PRICE COST RATE
STIFEL,NICOLAUS $4,467,365.95 $725,578.34 1.8667%
Birmingham,Alabama 2018 2.000%
2019 2.000%
2020 2.000%
2021 2.000%
2022 2.000%
2023 2.000%
2024 2.000%
2025 2.000%
2026 2.000%
2027 2.000%
2028 2.000%
2029 2.000%
2030 2.000%
2031 2.125%
2032 2.250%
2033 2.375%
RAYMOND JAMES& $4,545,827.85 $739,877.88 1.8874%
ASSOCIATES, INC.
Memphis,Tennessee 2018 2.000%
2019 2.000%
2020 2.000%
2021 2.000%
2022 2.000%
2023 3.000%
2024 3.000%
2025 3.000%
2026 3.000%
2027 2.000%
2028 2.000%
2029 2.000%
2030 2.000%
2031 2.250%
2032 2.250%
2033 2.250%
� Bid Tabulation October 19, 2016
City of Cottage Grove, Minnesota
$4,400,000* General Obligation Improvement Bonds, Series 2016B
NET TRUE
MATURITY REOFFERING INTEREST INTEREST
NAME OF BIDDER (February 1) RATE YIELD PRICE COST RATE
BAIRD $4,487,524.40 $745,002.16 1.9072%
Milwaukee,Wisconsin 2018 2.000%
2019 2.000%
2020 2.000%
2021 2.000%
2022 2.000°/a
2023 2.000°/a
2024 2.000%
2025 2.000%
2026 2.000%
2027 2.000%
2028 2.000%
2029 2.000%
2030 2.250%
2031 2.250%
2032 2.500%
2033 3.000%
� Bid Tabulation October 19, 2016
City of Cottage Grove, Minnesota
$4,400,000* General Obligation Improvement Bonds, Series 2016B
City of Cottage Grove, Minnesota
$4,275,000 General Obligation Improvement Bonds, Series 20166
Issue Summary
Total Issue Sources And Uses
Dated 11N6I2016� Delivered 11/16/2016
Issue
2016 Projects 2017 Projects Summary
Sources Of Funds
Par A,ttount��Fk3o�ids 52,555,0l1i1.0{] Sl,720,OOO.Up 54.Z75,p�p.t1(1
RcofT'cring I�rcmium 59,4G7.50 38,452.U5 97,919.55
C)�her Ci�y 9 f S,S�U.UO 21 S,a5U.U0 I,133,550.UU
Prcpasd Asscssmems 4fl�,00�.0U - a0�,00U,dD
MSA Funds 87U,U00.00 - 876.DOD.pp
Total Sources SS,8U5,967.5f1 $1,976,502.05 56,782,469.55
Uses Of Funds
Total Unden�mter's Discount (0.537%) 13,721.94 9,237.50 22,959.49
Costs of Issuance 32,237.30 15,979.70 48,217.00
Deposit to Project Construction Fund 4,7]8,7Sp.Q0 1,950,800.00 6,709,550.00
Rounding(Deposit to Project Fund) 1,258.2] 484.85 1,743.06
Total Uses $4,805,967.50 $1,976,5UZ.�5 SG,782,469.55
Series 2016B GO Imp Bonds � Issue Summary � 10I19I2016 � 11:18 AM
� EHLER�
LEADERS IN PUBLIC FINANCE
City of Cottage Grove, Minnesota
$4,275,000 General Obligation Improvement Bonds, Series 2016B
Issue Summary
Debt Service Schedule
Date Principal Coupvn Interest Total P+I Fiscal Total
11/16/2016 - - - - -
08/O1/2017 - - 60,860.00 60,860.00 -
02/O1/2018 150,000.00 2.000% 42,960.00 192,960.00 253,820.00
08/O1/2018 - - 41,460.00 41,460.00 -
02/O1/2019 275,000.00 2.000% 41,460.00 316,460.00 357,920.00
08/O1/2019 - - 38,710.00 38,710.00 -
02/O1/2020 275,000.00 2.000% 38,710.00 313,710.00 352,420.00
08/O1/2020 - - 35,960.00 35,960.00 -
02/O1/2021 275,000.00 2.000% 35,960.00 310,960.00 346,920.00
08/O1/2021 - • 33,210.00 33,210.00 -
02/O1/2022 275,000.00 2.000% 33,210.00 308,210.00 341,420.00
08/O1/2022 - - 30,460.00 30,460.00 -
02/O1/2023 285,000.00 2.000% 30,460.00 315,460.00 345,920.00
08/O1/2023 - - 27,610.00 27,610.00 -
02/O1/2024 285,000.00 2.000% 27,610.00 312,610.00 340,220.00
08/O1/2024 - - 24,760.00 24,760.00 -
02/O1/2025 285,000.00 2.000% 24,760.00 309,760.00 334,520.00
08/O1/2025 - - 21,910.00 21,910.00 -
02/O1/2026 285,000.00 2.000% 21,910.00 306,910.00 328,820.00
08/Ol/2026 - - 19,060.00 19,060.00 -
02/Ol/2027 290,000.00 2.000% 19,060.00 309,060.00 328,120.00
08/Ol/2027 - - 16,160.00 16,160.00 -
02/O1/2028 290,000.00 2.000% 16,160.00 306,160.00 322,320.00
08/O1/2028 - - 13,260.00 13,260.00 -
02/O1/2029 290,000.00 2.000% 13,260.00 303,260.00 316,520.00
08/O1/2029 - - 10,360.00 10,360.00 -
02/O1/2030 295,000.00 2.000% 10,360.00 305,360.00 315,720.00
08/O1/2030 - - 7,410.00 7,410.00 -
02/O]/2031 300,000.00 2.000% 7,410.00 307,410.00 314,820.00
08/O1/2031 - - 4,410.00 4,410.00 -
02/O1/2032 300,000.00 2.100% 4,410.00 304,410.00 308,820.00
08/O1/2032 - - 1,260.00 1,260.00 -
02/O1/2033 120,000.00 2.100% 1,260.00 121,260.00 122,520.00
Total $4,275,000.00 - $755,820.00 $5,030,820.00 -
Yield Statistics
Bond Year pollars $37,465.63
Average Life 8.764 Years
Average Coupon 2.0173693%
Net Interest Cost(NIC) I.8172974%
True Interest Cost(TIC) 1.7953D94".�0
Bond Yield for Arbitrage Purposes f.726750R%
All Inclusive Cost(AIC) I.936R I�2%
IRS Form 8038
Net Interest Cost 1.7247833%
Weighted Average Maturity 8.723 Years
Series 2016B GO Imp Bonds � Issue Summary � 1 011 9/2 0 1 6 � 11:18 AM
� EHLERS
LEADERS IN Pl1BLIC FINANCE
City of Cottage Grove, Minnesota
$4,275,000 General Obligation Improvement Bonds, Series 2016B
Issue Summary
Debt Service Schedule
Date Principal Coupon Interest Total P+I 105%of Total Assessments Levy/(Surplus)
oz/oi/zoi7 - - - - - • -
02/O1/2018 150,000.00 2.000% 103,820.00 253,820.00 266,511.00 96,090.82 17Q420.18
02/O1/2019 275,000.00 2.000% 82,920.00 357,920.00 375,816.00 177,275.86 198,540.14
02/O1/2020 275,000.00 2.000% 77,420.00 352,420.00 370,041.00 173,481.60 196,559.40
02/Ol/2021 275,000.00 2.000% 71,920.00 346,920.00 364,266.00 169,687.34 194,578.66
02/O]/2022 275,000.00 2.000% 66,420.00 341,420.00 358,491.00 165,893.10 192,597.90
02/Ol/2023 285,000.00 2.000% 60,920.00 345,920.00 363,216.00 162,098.84 201,117.16
02/Ol/2024 285,000.00 2.000% 55,220.00 340,220.00 357,231.00 158,304.55 198,926.45
02/01/2025 285,000.00 2.000°/a 49,520.00 334,520.00 351,246.00 154�510.29 196,735.71
02/Ol/2026 285,000.00 2.000°/a 43,820.00 328�820.00 345,26L00 ]50,716.05 194,544.95
02/O1/2027 290,000.00 2.000°/a 38,120.00 328,120.00 344,526.00 146,921,79 197,604.21
02/O1/2028 290,000.00 2.000°/a 32,320.00 322,320.00 338,436.00 143,127.53 195,308.47
02/O1/2029 290,000.00 2.000% 26,520.00 316,520.00 332,346.00 ]39,333.29 193,012.71
02/O1/2030 295,000.00 2.000% 20,720.00 315,720.00 331,506.00 135,539.03 195,966.97
02/O1/2031 300,000.00 2.000% 14,820.00 314,820.00 330,56t00 131,744.77 198,816.23
02/O1/2032 300,000.00 2.100% 8,820.00 308,820.00 324,261.00 127,950.51 196,310.49
02/Ol/2033 12Q000.00 2.100% 2,520.00 122,520.00 128,646.00 58,565.27 70,080.73
Total $4,275,000.00 - 5755,820.00 �5,630,826.OU $5,282,361.00 $2,291,240.64 $2,991,120.36
Significant Dates
Dated ll/l6/2016
First Coupon Date 8/O1/2017
Yield Statistics
Bond Year pollars $37,465.63
Average Life 8.764 Years
Average Coupon 2.0173693%
Ne[Interest Cost(NIC) L8172924%
True[nterest Cost(TIC) 1.7953094%
Bond Yield for Arbitrage Purposes 1.7267508%
All Inclusive Cost(AIC) L9368102%
Series 2016B GO Imp Bonds � Issue Summary� 10/19/2016 � 11:18 AM
� EHL_ERS
LEAOERS IN PUBLIC FINANCE
City of Cottage Grove, Minnesota
$1,835,930 General Obligation Improvement Bonds, Series 2016B
Issue Summary-Assessments
Equal Principal - Flat Rate 3.10%
Assessments
Date Principal Coupon Interest Total P+I
12/31/2017 65,591.00 3.100% 3Q499.82 96,090.82
12/31/2018 122,39534 3.100% 54,880.52 177,275.86
12/31/2019 122,39534 3.100% 51,086.26 173,481.60
12/31/2020 122,395.34 3.100% 47,292.00 169,68734
12/31/2021 122,39534 3.100% 43,497.76 165,893.10
12/31/2022 122,39534 3.100% 39,703.50 162,098.84
12/31/2023 122,395.33 3.100% 35,909.22 158,304.55
12/31/2024 122�39533 3.100% 32,114.96 154�510.29
12/31/2025 122,39533 3.100% 28,320.72 150,716.05
12/31/2026 122,39533 3.100% 24,526.46 146,921.79
12/31/2027 122,39533 3.100% 20,732.20 143,127.53
12/31/2028 122,39533 3.100% 16,937.96 139,333.29
12/31/2029 122,39533 3.100% 13,143.70 135,539.03
12/31/2030 122,39533 3.100% 9,349.44 131,744.77
12/31/2031 122,39533 3.100% 5,555.18 127,950.51
]2/31/2032 56,80433 3.100% 1,760.94 58,565.27
Total 51,835,930.00 - $455,310.64 $2,291,240.64
Significant Dates
Filing Date 1/O1/2017
First Payment Date 12/31/2017
I
Series 20168 GO Imp Bonds � Issue Summary � 10I19I2016 � 11:17 AM
� EHLERS
LEADERS IN PUBLIC FINANCE
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