4.1 Bond Sale Summary Series 2021BBond Sale Summary
City of Otsego, Minnesota
$7,390,000
General Obligation Water and Sewer Refunding
Bonds, Series 2021B
August 23I 2021
NORTHLAND
SECURITIES
150 South 5th Street, Suite 3300
Minneapolis, MN 55402
www.northlandsecurities.corn
Member FINRA and SIPC � Registered with SEC and MSRB
i
NORTHLAND
SECURITIES
PURPOSE: Proceeds from the 2021A Bonds will be used to current refund the City's
General Obligation Water and Sewer Revenue Refunding Bonds, Series
2010C on December 1, 2021 and to pay costs associated with issuing the
2021A Bonds.
FINANCE PLAN: The Bonds have been structured to result in maximum savings, while
maintaining a Weighted Average Maturity (WAM) that is lower on the
2021B Bonds than the 2010C. By maintaining a lower WAM on the 2021B
Bonds, the City is able to issue both the City's 2021A and 2021B Bonds as
bank qualified and receive lower interest rates.
SECURITY: General Obligation of the City payable from net revenues of the City's
water and sewer utilities.
RESULTS:
• Method of Sale: Competitive. The Bonds were underwritten by
Raymond James & Associates, Inc., Memphis, Tennessee.
• S&P Rating: "AA+"
• Final Maturity: December 1, 2026
Final
on
OS 23 2021
Finance
Plan
OS 09 2021
Par Amount
$7,390,000
$7,595,000
All Inclusive Cost AIC
0.60%
0.84%
True Interest Cost TIC
0.34%
0.59%
Total 2010C Savings $
$496,333
$446,720
2010C Net Present Value Sa% s %
5.64%
5.06%
Page 2
NORTHLAND
SECURITIES
EXHIBIT A -BID SUMMARY
TABULATION OF BIDS
CITY OF OTSEGO, MINNESOTA
$7,595,0001'
GENERAL OBLIGATION WATER AND SEWER REVENUE REFUNDING BONDS, SERIES 2021B
AWARD: RAYMOND JAMES &ASSOCIATES, INC.
DATE OF SALE: MONDAY, AUGUST 23, 2021
S&P UNDERLYING RATING AA+
TRUE
PURCHASE NET INTEREST
BIDDER PRICE INTEREST COST COST (TIC)
RAYMOND JAMES &ASSOCIATES, INC. $8,453,148.65 $68,581.91 0.3416923%
Memphis, IN
D.A. DAVIDSON & CO. $8,263,845.20 $72,539.24 0.3676062%
Denver, CO
PIPER SANDLER & Co $8,445,977.50 $75,753.06 0.3776557%
Minneapolis, MN
ROBERT W. BAIRD & CO., INC. $85445,366.80 $76,363.76 0.3807204%
Milwaukee, WI
FHNFINANCIAL CAPITAL MARKETS $8,3713066.02 $150,664.54 0.7560362%
Memphis, TN
1• Par amount decreased from $7,595,000 to $7,390,000. The adjusted purchase price is $8,223,867.56, plus accrued interest from
the date of issue to the date of delivery, and the adjusted TIC is 0.3407420%.
Page 3
NORTHLAND
SECURITIES
EXHIBIT B -SOURCES AND USES
Sources Of Funds
Par Amount of Bonds _ $7,390>000_00
Reoffering Premium 851,086.85
Total Sow•ces
Uses Of Funds
TotalUndenvritees Discount
Costs of Issuance
17
Deposit to Current Refunding Fund __ 8,17Q,000.00
Rounding Amount 41759,56
Total iJses
EXHIBIT C -PRICING SUMMARY
Maturity Type ofBond Coupon Yield Maturity Value P►•ice Dollar Price
12/01/2022 Serial Coupon 5.000% 0.150010 22320,000.00 105.758% 2,453,585.60
12/01/2023 Serial Coupon 5.000% 0.180% 2,530,000.00 110.524% 2396,257.20
12/01/2024 Serial Coupon 5.000010 0.220% 1,475,000.00 115.1800/a 1,698,905.00
12/01/2025 Serial Coupon 5.000% 0.330% 520,000.00 119,411% 620,937.20
12/01/2026 Serial Coupon 5.000% 0.470% 545,000.00 123,t93% 671,401.85
Total $753905000.00 $852415086.85
Bid Information
Par Amount
of Bonds $7�3903000•00
Reofferurg Premiumor (Discount) _ 851,086.85
Gross Production $8,2411086.85
TotalUndenvriter's Discount (0.233%) $(17,219.29)
Bid (111,284%) ____ 8,223,867.56
Total Purchase Price _ $8,223,867.56
Page 4
ORTH
" SECURITIES
EXHIBIT D —DEBT SERVICE COMPARISON
Date Total P+I Existing D/S Net New D/S Old Net D/S Savings
12/01/2021 200,025.00 2,595,265.44 200,025.00 4,759.56
12/0t/2022 2,7595294.44 2175%294.44 20%SS0.00 50,255.56
12/01/2023 2,7833500.00 2,783,500.00 2,831,775.00 48,275.00
12/01/2024 1,6023000.00 1,602,000.00 1,653,300.00 51,300.00
12/01/2025 573,250.00 _ _ _573,250.00 _ 742,762.50 _ 169,512.50
12/01/2026 5721250,00 572,250.00 744,480,00 172,230.00
Total $81290,294.44 $2,6009025.00 $109885,559.88 $11,381,892.50 $496,332.62
PV Analysis Summary (Net to Net)
Gross PVDebt Service
Net PV Cashflow Savings @ 0.252%(Bond Yeld)..... __ _ _ 486,506.91
Contingency or Rounding Am_ou_nt.................... 4,759.56
Net Present Value Benefit $491,266.47
Net PVBenefit / $8,718,685.66 PV Refunded Debt Service 5.635%
Net PVBenefit / $8,17Q,000 Refunded Principal... _ 6.013%
Net PVBenefit / $7,390,000 Refunding Principal.. 6.648%
Page 5
NORTHLAND
SECURITIES
EXHIBIT E -DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I Fiscal Total
09/23/2021
06/01/2022 254,544,44 254,544.44
12/01/2022 2,320,000.00 5.000% 1843750,00 2,5043750.00 2,7593294.44
06/01/2023 1263750,00 126,750.00
12/O1/2023 2,530,000.00 5.000% 126,750,00 2,656,750.00 2,783,500.00
06/01/2024 63,500.00 63,500,00
12/01/2024 1,475,000.00 5.000% 633500,00 1,538,500.00 1,602,000.00
06/O1/2025 - 26,625.00 26,625.00
12/01/2025 520,000.00 5.000% 263625,00 546,625,00 5731250,00
06/O1/2026 133625,00 13,625.00 -
12/01/2026 5451000,00 5.000010 131625,00 558,625.00 572,2%00
Total $7,3901000400 $900,294,44 $89290,294A4
Yield Statistics
Bond Year Dollars _ _ _ a1s.Wo•by
Average Life _ __ _ 2.437 Years
Average Coupon 5.00000001/o
Net Tirterest Cost (NIC) _ u.joayi n"/o
Bond Yield forArbitrage Purposes _ _ 0.25202801/o
All Inclusive Cost (AICI 0.5952496%
Page 6
.I
4ORTHLAND
SECURITIES
EXHIBIT F -MUNICIPAL MARKET CONDITIONS
Bond Buyer's
Index
Trends
4,50%
4.00%
2021
0
2020
- 2019
m
Ol
----2010
b
3.00%
N
------•2017
2.50%
.... _
2,00%
�
a
m
E
0
Source: Data compiled by Northland Securities from published Bond Buyer's Index
NORTHLAND
150 South Sth Street, Suite 3300, Minneapolis, MN 55402
Main 612-851-5900 / www.northlandsecurities.com
Member FINRA and SIPC, Registered with SEC and MSRB
Chart for Illustration only. This Is no[ an offer to buy orsell securities .
Based on sources believed to be reliable, butno[ warranted orguaranteed by Northland Securities, Inc (RC 19-14A/Munl 19=10A)
Page 7
6.25%
6,00%
5,75%
5, 50%
5,25%
5,00%
4.75%
9
A 4.50%
z
4.25%
O
4,00%
a
}0 3,75%
N
3.50%
3,25%
3,00%
2,75%
2,50%
2.25%
. - SECURITIES
Bond Buyer's Index 2000 to Present
I
Y
2.00%
O
O
O
y
O
O
O
O
O
0
NN
mm
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
O
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
Source: Data compiled by Northland Securities from published Bond Buyer's GO 20-Bond Index
NORTHLAND
SECURITIES
150 South 5th Street, Suite 3300, Minneapolis, MN 55402
Main 612-851-5900/www.northlandsecuritiescom
Member FINRA and SIPC, Registered with SEC and MSRB
Chart for Illustration only. This is not an offer to buy orsell securities .
Based on sources believed to be tellable, but not warranted or guaranteed by Northland Securltles, Inc. (RC 19-i5A/ Mun! 19-T ]A)
Page 8