4.1 GO Water and Sewer Refunding Bonds, Series 2021B 2021.08.23Bond 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
612-851-5900 800-851-2920
www.northlandsecurities.com
Member FINRA and SIPC � Registered with SEC and MSRB
.*IV iwlkw`
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
08 23 2021
Finance
Plan
08 09 2021
Par Amount
$7,390,000
$71595,000
All Inclusive Cost AIC
0.60%
0.84%
True Interest Cost TIC
0.34%
0.59%
Total 2010C Savings $
$496,333
1 $446,720
2010C Net Present Value Savings %
5.64%
1 5.06%
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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:
DATE OF SALE:
S&P UNDERLYING RATING
BIDDER
RAYMOND JAMES &ASSOCIATES, INC.
Memphis, TN
D.A. DAVIDSON & CO.
Denver, CO
PIPER SANDL-PP & CO.
Minneapolis, MN
ROBERT W. BAIlZD & CO., INC.
Milwaukee, WI
FHN FINANCIAL CAPITAL MARKETS
Memphis, TN
RAYMOND JAMES &ASSOCIATES, INC.
MONDAY, AUGUST 23, 2021
AA+
TRUE
PURCHASE NET INTEREST
PRICE INTEREST COST COST (TIC)
$8,453,148.65 468,581.91 0.3416923%
$8,263,845.20 $72,539.24 0.3676062%
$8,445,977.50 $75,753.06 0.3776557%
$8,445,366.80 $76,363.76 0.3807204%
$8,371,066.02 $150,664.54 0.7560362%
i' 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%.
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NORTHLAND
'*`rr SECURITIES
EXHIBIT B -SOURCES AND USES
Sources Of Funds
Par Amount of Bonds $7>390,000.00
Reoffering Premium - 851,086.85
Total Sources $8,2415086.85
Uses Of Funds
Total Underwrites
Costs of Issuance
Deposit to Current Refunding Fund
Rounding Amount
Total iJses
EXHIBIT C -PRICING SUMMARY
17,219.29
492108,00
8,1702000.00
4,759.56
Maturity Type of Bond Coupon Yield MMaturity Value Price Do1larPrice
12/01/2022 Serial Coupon 5.000% 0015OVo 22320,000,00 105,758% 2,453,585.60
12/01/2023 Serial Coupon 5.0000/6 0,18OVo 2,530,000.00 110.524% 2,796,257.20
12/01/2024 Serial Coupon 5.000% 0.220% 1,4757000.00 115,1800/0 1,698,905.00
12/01/2025 Serial Coupon 5.000% 0.330% 5202000.00 119,411% 6202937,20
12/01/2026 Serial Coupon 5.000% 0.470% 545,000.00 123,193% 671,401.85
Total - - $793905000M - $8,241,086.85
Bid Information
Par Amount of Bonds
Reoffering Premium or (Discount) 851,086.85
Cross Production $8,2412086.85
Total Underwriter's Discount (0233%) $(17219.29)
Bid (111.284%) 8,223,867.56
Total Purchase Price $8,223,867.56
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NORTHLAND
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 2,600,025.00 2,595,265.44 2,600,025.00 42759.56
12/01/2022 2,75%294.44 2,7590294.44 2080%550.00 502255,56
12/01/2023 %7833500.00 22783500.00 2,831,775.00 483275,00
12/01/2024 1,602,000.00 - 1,602,000.00 126532300,00 51,300.00
_12101/2025 573,250.00 - 573,250.00 _ 742,762.50 1692512,50
12/01/2026 5722250.00 - 572,250.00 744,480.00 1722230,00
Total $8,290,294.44 $25600,025.00 $10,8855559.88 $111381,892.50 $496,332.62
PV Analysis Summary (Net to Net)
Caoss PVDebt Service
Net PV Cashflow Savings 0.252%(Bond Yeld)..... _ 486,506.91
Contingency or Rounding Amount .................... 42759.56
Net Present Value Benefit $4913266.47
Net PVBenefit / $8,718,685.66 PV Refunded Debt Service 5.635%
Net PV Benefrt ! $8 170 000 Refunded Principal 6.013%
Net PV Benefit / $7,390,000 Refunding Principal. _ 6 648%
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NORTHLAND
mNka SECURITIES
EXHIBIT E -DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I Fiscal Total
-
06/01/2022
2542544,44
254,544.44
12/01/2022
2,3207000.00
5.000%
1942750,00
225042750,00
2,7597294.44
06/01/2023
1267750.00
126,750.00
-
12/01/2023
2,530,000.00
5.00001a
1262750,00
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
13538,500.00
1,602,000.00
06/01/2025
-
26,625.00
26,625.00
-
12/01/2025
5202000.00
5.00091a
26,625,00
5465625,00
573,250,00
06/O1/2026
-
13,625.00
13,625.00
_ _
-
12/01/2026
_
5452000.00
5.000%
13,625.00
558,625.00
57%250.00
Total $79390,000.00 - $900,294.44 $892909294.44 -
Yield Statistics
Bond Year Dollars �1n,Wo.tSY
Average Life 2_437 Years
A.rAmaA rm„nnn 5.0000000%
Net Interest Cost (NIC) 0.3689175%_
True interest Cost(TICL _ 0.3407420%
Bond Yield for Arbitrage Purposes 0.25202801/o
All Inclusive Cost (AICI 0.5952496%
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NORTHLAND
SECURITIES
EXHIBIT F -MUNICIPAL MARKET CONDITIONS
Bond Buyer's Index Trends
4,5096
4.0096 -
v �
3.50% - — - '--
a
zozl
0 2020
m 2019
W
d 3.00%-- - -zota
2017
2,5096
2.0030
r � v
a
U
Source: Data compiled by Northland Securities from published Bond Buyer's Index
NORTHLAND
. SECURITIES
150 South Sth Street, Suite 3300, Minneapolis, MN 55402
Main 612-851-6900 / wwvtnorth landsecurities.com
Member FI N RA and SI PC, Registered with SEC and MSRB
Chart for illustration only. This is not an offer to buy orsell securities .
Based on sources believed to be reliable, but not warranted orguaranteed by Northland Securities, Inc. (Rf 19-14A/Muni 19-_10A)
Page 7
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NORTHLAND
_�r�. SECURITIES
Bond Buyer's Index 2000 to Present
6.25%
6.00%
5.75%
5.50%
5.25%
5.00%
4.75%
9
4.50%
C
4.25%
O
4.00%
m
m
c 3.75%
N
3.50%
3.25%
3.00%
2.75%
2.50%
2.25%
2.00%
N N N N N N N N N N N N
Source: Data compiled by Northland Securities from published Bond Buyer's G010-Bond Index
NORTHLAND
r• SECURITIES
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 forlllustration only. This (s no[ an offer to buy orsell securities .
Based on sources believed [o be Tellable, but not warranted or guaranteed by Northland Securities, Inc. (RC 19-15A/ Muni 79-11A)