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HomeMy WebLinkAbout[05] Monte Eastvold, 2009 Refunding Bond Issue (New Info)NORTHLAND SECURITIES Honorable City Council City of St. Joseph, Minnesota Dear City Officials: We understand that you desire to issue $3,010,000 General Obligation Crossover Refunding Bonds. Accordingly, we propose as follows: We agree to purchase $3,010,000 General Obligation Crossover Refunding Bonds, Series 2009A to be dated March 1, 2009, and to mature December 1, 2010 - 2021. We agree to pay for the Bonds $3,015,488.60 and accrued interest to the date of settlement. The Bonds are to be payable at Northland Trust Services, [nc., Minneapolis, Minnesota, as escrow agent, paying agent and registrar. Interest is to be payable on December 1, 2009, and semiannually thereafter. The Bonds will have the following interest rates and will mature or be subject to mandatory redemption on December 1 in the years and amounts as follows: 2010 $330,000 1.25 % 2016 $375,000 3.00 2011 335,000 1.55 2017 390,000 2.90 2012 345,000 1.75 2018 40,000 3.85 2013 350,000 2.75 2019 45,000 3.85 2014 350,000 3.00 2020 45,000 3.85 2015 365,000 3.00 2021 40,000 3.85 It is further understood that you authorize the escrow agent to purchase securities to fund the escrow account for the benefit of the Issuer. All Bonds will be Book Entry and in multiples of $5,000. The average interest rate is 2.8196% and the TIC is 2.7672% Mandatory Redemption: This issue shall have one term bond maturing December 1, 2021 (2018 through 2021 maturities), which will have mandatory redemptions equal to the annual principal due as stated above. Optional Redemption: Bonds maturing in the years 2017 through 2021, inclusive, are callable at the option of the Issuer in whole or in part on December 1, 2016, or on any date thereafter at a price of par plus accrued interest. This contract is made for prompt acceptance and subject to the approval of Briggs & Morgan, P.A. (Bond Counsel) of St. Paul, Minnesota, as to the legality and regularity of all proceedings taken in the issuance of the Bonds. The Issuer agrees to pay the expenses of registering the Bonds and the fee of Bond Counsel, recognized municipal bond attorneys, in furnishing the necessary proceedings required to authorize the issuance of the Bonds. The Issuer shall be responsible for paying agent fees on the Refunded Bonds when called and for the publication of the call notice. Respectfully submitted this 19th day of February, 2009 Northland Securities, Inc. The foregoing proposal was duly accepted by the City Council of the City of St. Joseph, Minne ota` at 7:00 p.m. this 19th day of February, 2009. - ~' /^ Attest: ' r " " ~~' ~Xdm'nistrat r i 1 By: a or Northland Securities, Inc. 45 South 7th Street, Suire ?500, Minneapolis, MN 55~i02 ~rr~il Fnr I-800-851-29?0 ~L~~~~ G12-851-5)00 F.~a C12-S51-5987 www.northlandsecurities.com Member FINRA and SIPC Final City of Saint Joseph, Minnesota G.O. Crossover Refunding Bonds, Series 2009A 2001 / 2002 Refunding Summary Dated 03/01/2009 i Delivered 0 3/1 912 0 0 9 2001 Sew 2002 Imp Issue Summary Sources Of Funds Par Amount of Bonds $455,000.00 $2,555,000.00 $3,010,000.00 Reoffering Premium 4,364.15 40,254.45 44,618.60 Accrued Interest from 03/01/2009 to 03/19/2009 670.50 3,106.25 3,776.75 Total Sources $460,034.65 $2,598,360.70 $3,058,395.35 Uses Of Funds Deposit to Crossover Escrow Fund 448,321.34 2,536,769.86 2,985,091.20 Total Underwriter's Discount (1.300%) 5,915.00 33,215.00 39,130.00 Costs of Issuance 3,293.19 16,676.81 19,970.00 Gross Bond Insurance Premium 2,276.68 11,699.03 13,975.71 Rounding Amount 228.44 - 228.44 Total Uses $460,034.65 $2,598,360.70 $3,058,395.35 Flow of Funds Detail State and Local Government Series (BEGS) rates for 2/19/2009 2/19/2009 2/19/2009 Date of OMP Candidates Primary Purpose Fund Solution Method Net Funded Net Funded Net Funded Total Cost of Investments $448,321.34 $2,536,769.86 $2,985,091.20 Interest Earnings @ 0.553% 1,736.16 9,823.89 11,560.05 Total Draws $450,057.50 $2,546,593.75 $2,996,651.25 PV Analysis Summary (Net to Net) Net PV Cashflow Savings @ 2.606%(Bond Yield) 30,224.25 90,604.28 120,828.53 Contingency or Rounding Amount 228.44 - 228.44 Net Present Value Benefit $30,452.69 $90,604.28 $121,056.97 Net PV Benefit / $2,940,000 Refunded Principal 6.921 % 3.624% 4.118% Net PV Benefit / $3,010,000 Refunding Principal 6.693% 3.546% 4.022% Bond Statistics Average Life 7.530 Years 5.376 Years 5.702 Years Average Coupon 3.3322145% 2.6918282% 2.8196723% Net Interest Cost (NIC) 3.3774783% 2.6405809% 2.7876921% Bond Yield for Arbitrage Purposes 2.6062085% 2.6062085% 2.6062085% True Interest Cost (TIC) 3.3562715% 2.6251346% 2.7672432% All Inclusive Cost (AIC) 3.5475312% 2.8528424% 2.9874614% Ref 1 ~ Issue Summary i 2/19/2009 12:22 PM Northland Securities Public Finance Page 1 Final City of Saint Joseph, Minnesota G.O. Crossover Refunding Bonds, Series 2009A 2001 / 2002 Debt Service Comparison Date Total P+I PCF Existing D/S Net New D/S Old Net D/S Savings 12/01/2009 56.651.25 (2,996,651.25) 12!01/2010 405,535.00 - 12/01/2011 406,410.00 - 12/01/2012 411,217.50 - 12/01/2013 410,180.00 - 12/01/2014 400,555.00 - 3.355,467.50 - - - - - 415,239.06 405,535.00 406,410.00 411,217.50 410,180.00 400,555.00 415,467.50 420,667.50 419,837.50 423,307.50 425,865.00 422,085.00 228.44 15,132.50 13,427.50 12,090.00 15,685.00 21,530.00 12/01/2015 405,055.00 - 12/01/2016 404,105.00 - 12/01/2017 407,855.00 - 12/01/2018 46,545.00 - 12/01/2019 50,005.00 - 12/01/2020 48,272.50 - - - - - - - 405,055.00 404,105.00 407,855.00 46,545.00 50,005.00 48,272.50 422,770.00 422,442.50 421,237.50 49,012.50 51,952.50 49,635.00 17,715.00 18,337.50 13,382.50 2,467.50 1,947.50 1,362.50 12/01/2021 41,540.00 - - 41,540.00 47,317.50 5,777.50 Total $3,493,926.25 (2,996,651.25) $3,355,467.50 $3,852,514.06 $3,991,597.50 $139,083.44 PV Analysis Summary (Net to Net) Gross PV Debt Service Savings ..................... 120,828.53 Net PV Cashflow Savings @ 2.606%(Bond Yield)..... 120,828.53 Contingency or Rounding Amount .................... 228.44 Net Present Value Benefit $121,056.97 Net PV Benefit / $3,109,614.51 PV Refunded Debt Service 3.893% Net PV Benefit / 82,940,000 Refunded Principal... 4.118% Net PV Benefit / $3,010,000 Refunding Principal.. 4.022% Refunding Bond Information Refunding Dated Date 3/01/2009 Refunding Delivery Date 3/19/2009 Ref 1 I Issue Summary 12/192009 ~ 222 PM Northland Securities Public Finance Page 2 Final City of Saint Joseph, Minnesota G.O. Crossover Refunding Bonds, Series 2009A 2001 / 2002 Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 03/19/2009 - - - - - 12/01/2009 - - 56,651.25 56,651.25 56,651.25 06/01/2010 - - 37,767.50 37,767.50 - 12/01/2010 330,000.00 1.250% 37,767.50 367,767.50 405,535.00 06/01/2011 - - 35,705.00 35,705.00 - 12/O1i2011 335,000.00 1.550% 35,705.00 370,705.00 406,410.00 06/01/2012 - - 33,108.75 33,108.75 - 12/01/2012 345,000.00 1.750% 33,108.75 378,108.75 411,217.50 06/01/2013 - - 30,090.00 30,090.00 - 12/01/2013 350,000.00 2.750% 30,090.00 380,090.00 410,180.00 06/01/2014 - - 25,277.50 25,277.50 - 12/O1/2014 350,000.00 3.000% 25,277.50 375,277.50 400,555.00 06/01/2015 - - 20,027.50 20,027.50 - 12/O1/2015 365,000.00 3.000% 20,027.50 385,027.50 405,055.00 06/01/2016 - - 14,552.50 14,552.50 - 12/01/2016 375,000.00 3.000% 14,552.50 389,552.50 404,105.00 06/01/2017 - - 8,927.50 8,927.50 - 12/01/2017 390,000.00 2.900% 8,927.50 398,927.50 407,855.00 06/01/2018 - - 3,272.50 3,272.50 - 12/01l2018 40,000.00 3.850% 3,272.50 43,272.50 46,545.00 06/01/2019 - - 2,502.50 2,502.50 - 12/O1/2019 45,000.00 3.850% 2,502.50 47,502.50 50,005.00 06/01 /2020 - - 1,636.25 1,636.25 - 12/01/2020 45,000.00 3.850% 1,636.25 46,636.25 48,272.50 06/01/2021 - - 770.00 770.00 - 12/O1/2021 40,000.00 3.850% 770.00 40,770.00 41,540.00 Total $3,010,000.00 - $483,926.25 $3,493,926.25 - Dated 3/01 /2009 Delivery Date 3/19/2009 First Coupon Date 12/01/2009 First available call date 12/01/2016 Call Price 100.0000000% Accrued Interest from 03/01/2009 to 03/19/2009 3,776.75 Bond Year Dollars $17,162.50 Average Life 5.702 Years Average Coupon 2.8196723% Net Interest Cost (NIC) 2.7876921 True Interest Cost (TIC) 2.7672432% Bond Yield for Arbitrage Purposes 2.6062085% Net Interest Cost 2.5202404% Weighted Average Maturity 5.657 Years Rei 1 ~ Issue Summary ~ 2/19!2009 ~ 2:22 PM Northland Securities Public Finance Page 3 Final City of Saint Joseph, Minnesota G.O. Sewer Revenue Bonds of 2001 Debt Service To Maturity And To Call Refunded Interest to Date Bonds Call D!S To Call Principal Coupon Interest Refunded D/S Fiscal Total 06/01/2009 - 10,818.75 10,818.75 - - 10,818.75 10,818.75 - 12/01/20D9 aao,ooo.o0 10,618.75 450,618.75 - 4.100% 10,818.75 10,818.75 21,637.50 06/01/2010 - - - - - 10,818.75 10,818.75 - 12/Ol/2D10 - - - 30,000.00 4.600% 10,816.75 40,818.75 51,637.50 06/01 /2011 - - - - - 10,128.75 10,128.75 - 12/01/2011 - - - 30,000.00 4.600% 10,128.75 40,128.75 50,257.50 06/01/2012 - - - - - 9,438.75 9,436.75 - 12/Ol/2012 - - - 30,000.00 4.600% 9,436.75 39,438.75 46,677.50 06/01/2013 - - - - - 8,748.75 8,748.75 - 12/O1/2013 - - - 30,000.00 4.600% 8,748.75 38,748.75 47,497.50 06/01/2014 - - - - - 8.056.75 8,058.75 - 12/01/2014 - - - 35.000.00 4.900% 8,058.75 43,058.75 51,117.50 06/01/2015 - - - - - 7,201.25 7,201.25 - 12/D1/2015 - - - 35,000.00 4.900% 7,201.25 42,201.25 49,402.50 06/01/2016 - - - - - 6,343.75 6,343.75 - 12/O1/2D16 - - - 35,000.00 4.900% 6,343.75 41,343.75 47,687.50 06/01/2017 - - - - - 5,466.25 5,486.25 - 12/01/2017 - - - 40,000.00 4.900% 5,486.25 45,486.25 50,972.80 06/01/2018 - - - - - 4,506.25 4,506.25 - 12/01/2018 - - - 40.000.00 5.150% 4,506.25 44,506.25 49,012.50 06/01/2019 - - - - - 3,476.25 3,476.25 - l2/D1/2019 - - - 45,000.00 5.150% 3,476.25 48,476.25 51,952.50 D6/01/2020 - - - - - 2,317.50 2,317.50 - 12I01/2020 - - - 45,000.00 5.150% 2,317.50 47,317.50 49,635.00 06/01/2021 - - - - - 1,158.75 1,158.75 - 12/Ol/2021 - - - 45,000.00 5.150% 1,158.75 46,158.75 47,317.50 Total $440,000.00 521,637.50 $461,637.50 $440,000.00 - $177,005.00 $617,005.00 - Yield Statistics Average Life 7.784 Years Weighted Average Maturity (Par Basis) 7.734 Years Average Coupon 5.0100912% Refunding Bond Information Refunding Dated Date 3/01/2009 Refunding Delivery Date 3/1 912 0 0 9 Ol oltl I SINGLE PURPOSE 1 717 92009 1 222 PM Northland Securities Public Finance Page a Yield for Arbitrage Purposes 2.6062085% State and Local Government Series (BEGS) rates for 2/19/2009 Ref 1 ~ Issue Summary ~ 2/19%2009 ~ 2.22 PM Northland Securities Public Finance Page 6 .~ C O Q ~ ~ Q~ ~ 0 r Z O to O N _a Q o U N cn N N ~ ~ O o H ~ m ~ ~ U_ . ~ ~ .>~ L 4- 0 ~_ U U .~ N N ~ 0 0 0 0 0 0 0 0 0 0 0 0 o v v U ~n o ~n o ~n ~n ~n ~n ~n ~n ~n ~n o v v _ I~ ~ ti O N ti N ti ti ti N ~ ~ O M ^ O N N 'CY' 07 Cp 07 M CO CO ~t CO I~ ~ N O T~ T N N ~ (D N ~ O N ~t O M i~ N N V V M N T ~ ~ M M N ~ ~ ~ CO C~ ~ M M O D ~ in~noo~n~noo~n~noooooOOOOOOO~n~noo 0 0~ U N N O O N N O O ti I~ ~ tf> ~~ tf) LCD ~ tf) lC) ~ LC) ~ N N O O O C _ Z T to ~ O O~~ 00 a0 ti ti N N~ ti N N N N N N CD (O O O I.C~ "O O M M O O N OO T T O O N N O O~ I~ tf) ~ ti~ O O M M 1~ ti ~ ~ O M M ti ti~~ N N O O~~ O O M M OJ of N N~~ CO Cfl I~ ~ ti ~ ~ r O O T (p r (p r LC) O In O '~ O C' O M M M M N I~ ~ O O O ~. ~ T M CT ~ 7 tT ~ M M ~ ~ '~ tY' ~ O O O ~ O . ~ .` p> O O tf) lC) 0 0 t[) X 0 0 O O O O O O O O O O~ u7 0 0 O C N U O O N N O O I~ ~ tf') ~ ~ to ~ ~ ~ ~ ~ ~ ~ ~ N N O O ~ O ~ ~~ (D CO ~~ O M ti~ N N ti ti N N N N N N O O O O N U C O O O o0 ap T T O O N N O O t~ I~ LC) ~~~ O O M M ti I~ ~ O 'j ~~ ~ I~ V~ N N O O~~ O O M M N O N N~~ CO CO t~ 1~ T O (~ ~ (p .- ~p S O T ~(~ O lL7 0~ O~ O M M M M N I~ ~ O O O ~ ~ ~ O ~ t7 ~ d' ~ M M ~ ~ V ~ ~ ~ T Q ~ ~ M O O ~ .-~ N L ~i C C O O U ~ U C .` d LC) U N ~..~ ~ M ~ ~ M T T N O N .-~ N ~7 N C N T M M r T O O ~~ O O lC) tC) O O O 0 0 0 0 0 0 0 0 0 lC) tI~ O O O O O N N O O I~ ti~~~~~~~~~~~~ N N O O ~~~ (D CO ~ tt~ 00 OO I~ ti N N ti ti N N N N N N O O O O T O O K o7 T T O O N N O O I~ ~ ~[~ ~~ ti O O M M I~ ~ O t~ t~ V A N N O O V~ 6~ O M M O~ OJ N N E u7 (O CO I~ ~ C`1 CD Cfl Cfl CO CO CO lC) lC) ~ In d' V ~ ~7 M M M M N N f ~ O Y (Q 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O ~ lf) ~ tf) t!7 O O O O i.f> lf) ~ ~ N ~n r~ ~ o O o rn o ~ ~ 00 U T T T N M M M N M M M M w 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 ~ri ~i ~ci ~ci ~ci ui ~ci o o ~ti ~tS o M M M M M M M d' V ~ ~ ~ I1 lC) LC') lf) l17 Ln In L!7 L!7 L(") Lf') Lf) L!~ L(7 lf7 lf~ lf> l(") lC') L!7 ~ O O ~ Lf) :V I~ !~ I~ !~ ~ ti~ ti ti~ N N ti ti N N N N N N~~ ti~ r o0 ap o0 00 CO o0 00 DO of CO ~ ~ M M CO CO CO CO CO Cfl ~ f~ 00 00 '~ T T N N M M~~ 1.C) In 0 0 ~T V o0 00 O O ~~ T T L(~ L() 0p 00 T T ~~~~ 0 0 N N M M~ 't7 ~~ V V M M T T :O 0 0 0 0 0 0 O O 00 M 1~ N O T L1') LC) ~~ M 00 N 1~ ~ O ?'~ T ~ ~"' ~ M M ~ cY tt ~' V ~ ~ ~ f1 In In lf') to tI> to t,n ~ tI~ ~ ~ tf> ~f') lf~ tf~ ~ tf) Lf') In tf~ O O Lf') Lf) V I~ ti~ ti~~~~ ti ti N N~ ti N N N N N N~~ ti~ . . . . . . . . . . . . . . . 00 Op OO 00 OO CO DO OJ OO DO T T M M f.0 CO CO CO CO (D f~ 1~ N 00 '7 T T N N M M~ ~' l!7 In 0 0~~ OO 00 0 0 1~ I T T LL) l() '7 O O T T t* ~ ti ti O O N N M M ~_ V ~_ ~~~ M M T T x 0 0 0 0 0 0 00 0~ N 00 I~ ~ O O~ Lf~ ~~ M M N N r r r T T T T M ~ CV ~U C a` ~I \° \ \° \° \° \° \° \° \° \° \° \° ~ 0 0 0 0 0 0 0 0 0 0 0 0 ~ O O O O O O O O O O O O O O O O O O O O O ~ ~ ~ ~ c0 (fl CO CO O) O O O T T T T ~ ~' ~ ~ ~ ~ ~ ~ ~ lf') lf") l!") 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JOSEPH, MINNESOTA HELD: February 19, 2009 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of St. Joseph, Stearns County, Minnesota, was duly called and held at the City Hall on February 19, 2009, at 7:00 P.M., for the purpose, in part, of authorizing the issuance and awarding the sale of $2,735,000 General Obligation Crossover Refunding Bonds, Series 2009A. The following members were present: and the follov~~ing were absent: Member introduced the following resolution and moved its adoption: ~ 3 , o/ch,o® o RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF S ~' GENERAL OBLIGATION CROSSOVER REFUNDING BONDS, SERIES 2009A AND PLEDGING FOR THE SECURITY THEREOF SEWER SYSTEM NET REVENUES, SPECIAL ASSESSMENTS AI~TD LEVYING A TAX FOR THE PAYMENT THEREOF A. WHEREAS, the City Council of the City of St. Joseph, Minnesota (the "City"), hereby determines and declares that it is necessary and expedient to provide moneys for a crossover refunding of the City's (i) $640,000 original principal amount of General Obligation Sewer Revenue Bonds of 2001, dated October 1, 2001 (the "Prior Sewer Revenue Bonds"), which mature on and after December 1, 2011, and (ii) $4,700,000 original principal amount of General Obligation Improvement Bonds of 2002, dated August 1, 2002 (the "Prior Improvement Bonds"), which mature on and after December 1, 2011; and B. WHEREAS, $410,000 aggregate principal amount of the Prior Sewer Revenue Bonds which matures on and after December 1, 2011, is callable on December 1, 2009 (the "Refunded Sewer Revenue Bonds"), at a price of par plus accrued interest, as provided in the resolution of the City Council adopted on September 20, 2001, authorizing the issuance of the Prior Sewer Revenue Bonds (the "Prior Sewer Revenue Bonds Resolution"), provided, $30,000 principal amount of the Prior Sewer Revenue Bonds maturing on December 1, 2010, will be paid on that date in accordance with the provisions of the Prior Sewer Revenue Bonds Resolution; and C. WHEREAS, $2,230,000 aggregate principal amount of the Prior Improvement Bonds which matures on and after December 1, 2011, is callable on December 1, 2009 (the "Refunded Improvement Bonds"), at a price of par plus accrued interest, as provided in the resolution of the City Council adopted on July 25, 2002, authorizing the issuance of the Prior Improvement Bonds (the "Prior Improvement Bonds Resolution"), provided, $270,000 principal amount of the Prior Improvement Bonds maturing on December 1, 2010, will be paid on that date in accordance with the provisions of the Prior Improvement Bonds Resolution; and 2144616v1 NORTHLAND SECURITIES Honorable City Council City of St. Joseph, Minnesota Dear City Officials: We understand that you desire to issue $3,O10,000 General Obligation Crossover Refunding Bonds. Accordingly, we propose as follows: We agree to purchase $3,010,000 General Obligation Crossover Refunding Bonds, Series 2009A to be dated March 1, 2009, and to mature December 1, 20] 0 - 2021. We agree to pay for the Bonds $3,0] 5,488.60 and accrued interest to the date of settlement. The Bonds are to be payable at Northland Trust Services, Inc., Minneapolis, Minnesota, as escrow agent, paying agent and registrar. Interest is to be payable on December 1, 2009, and semiannually thereafter. The Bonds will have the following interest rates and will mature or be subject to mandatory redemption on December 1 in the years and amounts as follows: 2010 $330,000 1.25 % 2016 $375,000 3.00 2011 335,000 1.55 2017 390,000 2.90 2012 345,000 1.75 2018 40,000 3.85 2013 350,000 2.75 2019 45,000 3.85 2014 350,000 3.00 2020 45,000 3.85 201 ~ 365,000 3.00 2021 40,000 3.85 It is further understood that you authorize the escrow agent to purchase securities to fund the escrow account for the benefit of the Issuer. All Bonds will be Book Entry and in multiples of $5,000. The average interest rate is 2.8196% and the TIC is 2.7672%. Mandatory Redemption: This issue shall have one term bond maturing December 1, 2021 (2018 through 2021 maturities), which will have mandatory redemptions equal to the annual principal due as stated above. Optional Redemption: Bonds maturing in the years 2017 through 2021, inclusive, are callable at the option of the Issuer in whole or in part on December 1, 2016, or on any date thereafter at a price of par plus accrued interest. This contract is made for prompt acceptance and subject to the approval of Briggs & Morgan, P.A. (Bond Counsel) of St. Paul, Minnesota, as to the legality and regularity of all proceedings taken in the issuance of the Bonds. The Issuer agrees to pay the expenses of registering the Bonds and the fee of Bond Counsel, recognized municipal bond attorneys, in furnishing the necessary proceedings required to authorize the issuance of the Bonds. The Issuer shall be responsible for paying agent fees on the Refunded Bonds when called and for the publication of the call notice. Respectfully submitted this 19th day of February, 2009. Northland curities, Inc. By: The foregoing proposal was duly accepted by the City Council of the City of St. Joseph, Minnesota, at 7:00 p.m. this 19th day of February, 2009. By: Mayor Attest: Administrator Northland Securities, Inc 45 South nth Street, Suite 2500, Minneapolis, MN 55'i02 tali Frrr- 1-800-851-2920 Ma~~ 61?-851-5900 >::~a 612-851-5987 www.north]andsecurities.com Member FINRA and SIPC