4.1 General Obligation Sewer Revenue Note of 2023A
Request for
City Council Action
DEPARTMENT INFORMATION
ORIGINATING DEPARTMENT REQUESTOR: MEETING DATE:
Administration City Administrator/Finance Director Flaherty October 23, 2023
PRESENTER(s) REVIEWED BY: ITEM #:
Administration Municipal Advisor, Northland Securities, Inc.
Bond Counsel, Taft
4.1 – PFA Note Issuance
STRATEGIC VISION
MEETS: THE CITY OF OTSEGO:
Is a strong organization that is committed to leading the community through innovative communication.
X Has proactively expanded infrastructure to responsibly provide core services.
Is committed to delivery of quality emergency service responsive to community needs and expectations in a
cost-effective manner.
Is a social community with diverse housing, service options, and employment opportunities.
Is a distinctive, connected community known for its beauty and natural surroundings.
AGENDA ITEM DETAILS
RECOMMENDATION:
City staff is recommending the City Council adopt a resolution issuing the G.O. Sewer Revenue Note of 2023A.
ARE YOU SEEKING APPROVAL OF A CONTRACT? IS A PUBLIC HEARING REQUIRED?
No No
BACKGROUND/JUSTIFICATION:
The City is progressing with the West Wastewater Treatment Facility Liquid Phase 1 project, which was a key component
of the Wastewater Master Plan (the Plan) supporting long term goals and implementation phasing to meet growth
expectations. The project began construction in the fall of 2022 and is expected to be completed in the spring of 2025.
During the 2022 Legislative Session, the Minnesota Legislature failed to approve a Bonding Bill which historically provides
the funding into the State Revolving Fund (SRF). Without the funding into the SRF, the MPFA was unable to provide loan
funding for the project until additional funding would be allocated in a future bonding bill.
The City issued G.O. Temporary Sewer Revenue Bonds, Series 2022A so that construction could initiate in the fall of 2022.
This temporary financing would then roll into the City’s permanent loan financing through MPFA. The Legislature
approved a bonding bill during the 2023 Session which provided the necessary funding to the SRF which allows MPFA to
provide the permanent financing of the project.
The attached resolution provides for the issuance of G.O. Sewer Revenue Note, 2023A, in the amount of $34,045,359.
The note will bear an interest rate of 2.843% and repayment of the note will commence in August 2024. The estimated
savings of the Note are $3,991,897 compared to if the City were to finance the project through a typical bond issue.
The West Wastewater Treatment Facility Liquid Phase 1 project costs a total of $42,045,359. The City was awarded with
Point Source Implementation and Green Project Reserve Forgiveness Grants that total $8,000,000 which provides a
reduction in the amount of borrowing to the net amount of $34,045,359 included in the attached resolution.
The attached resolution also sets a call date of November 30, 2023, on which date the City will pay $26,215,000 of
principal and accrued interest from November 1, 2023 through the call date of November 30, 2023. The funding to
provide this payment will be sourced through the unspent bond proceeds of the 2022A issue and the balance through a
SRF loan draw. By calling the bond before final maturity, the City will be saving interest on the 2022A issue.
The resolution has been prepared by the City’s Bond Counsel, Taft Law, and has been reviewed by the City’s Municipal
Advisor, Northland Securities, Inc., with recommendation for approval.
SUPPORTING DOCUMENTS ATTACHED:
• Notice of Funding Award
• Resolution 2023-68
• Draft Amortization Schedule
POSSIBLE MOTION
PLEASE WORD MOTION AS YOU WOULD LIKE IT TO APPEAR IN THE MINUTES:
Motion to adopt Resolution 2023-68 accepting the offer of the Minnesota Public Facilities Authority to purchase a
$34,045,359 General Obligation Sewer Revenue Note of 2023A, providing for its issuance, and authorizing execution
of a bond purchase and project loan agreement with point source implementation grant.
BUDGET INFORMATION
FUNDING: BUDGETED:
Funds 361 & 602 – Sanitary Sewer Utility
N/A
Minnesota Public Facilities Authority
1st National Bank Building • 332 Minnesota St. • Suite W820 • Saint Paul, MN 55101-1378 • USA
651-259-7469 • 800-657-3858 TOLL FREE • 651-296-8833 FAX • mn.gov/pfa
An equal opportunity employer and service provider
October 12, 2023
The Honorable Jessica Stockamp
Mayor, City of Otsego
13400 90th Street NE
Otsego, MN 55330-7259
Dear Mayor Stockamp:
I am pleased to inform you that the Minnesota Public Facilities Authority (PFA) approved project
financing for the City of Otsego on October 2, 2023. The Project consists of wastewater
improvements including phosphorus treatment at the West Treatment Plant. PFA’s financing is as
follows:
Point Source Implementation-Grant $7,000,000
Clean Water SRF-Loan $34,045,359
Clean Water SRF-Principal Forgiveness Grant $1,000,000
$42,045,359
In addition to the grant dollars awarded, we conservatively estimate that the PFA loan (20 years at
2.843%) will save local taxpayers approximately $3,991,897 in interest costs compared to market
rate financing.
We congratulate The City of Otsego for its successful application and its financial commitment to
improve its wastewater infrastructure.
The financial assistance contract will be sent to you shortly. Loan disbursements are contingent upon
our receipt of the City of Otsego’s general obligation bond and related documents.
If you have any questions about this project financing or about the PFA’s programs in general, please
feel free to contact Jeff Freeman, Executive Director at 651/259-7465.
Regards,
Matt Varilek, Chair
MN Public Facilities Authority
C: Rep. Walter Hudson, Paul Novotny
Sen. Eric Lucero
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EXTRACT OF MINUTES OF A MEETING
CITY COUNCIL OF THE
CITY OF OTSEGO, MINNESOTA
HELD: OCTOBER 23, 2023
Pursuant to due call and notice thereof, a regular or special meeting of the City Council
of the City of Otsego, Wright County, Minnesota, was duly held at the City Hall on October 23,
2023, at 7:00 P.M., for the purpose in part of awarding the sale of a $34,045,359 General
Obligation Sewer Revenue Note of 2023A.
The following members were present: ______________________________________
and the following were absent: __________________________________________________
Member _____________ introduced the following resolution and moved its adoption:
RESOLUTION NO. 2023-68
RESOLUTION ACCEPTING THE OFFER OF THE MINNESOTA PUBLIC FACILITIES
AUTHORITY TO PURCHASE A $34,045,359 GENERAL OBLIGATION SEWER REVENUE
NOTE OF 2023A, PROVIDING FOR ITS ISSUANCE AN D AUTHORIZING EXECUTION
OF A BOND PURCHASE AND PROJECT LOAN AGREEMENT WITH POINT SOURCE
IMPLEMENTATION GRANT
A. WHEREAS, the City of Otsego, Minnesota (the "City") has heretofore issued
$26,215,000 original principal amount of General Obligation Temporary Sewer Revenue Bonds,
Series 2022A, dated November 8, 2022 (the "Temporary Bonds"), pursuant to Minnesota
Statutes, Chapter 475 and Section 444.075, particularly Section 475.61(5), for the purpose of
providing money to temporarily finance costs relating to improvements to the municipal sanitary
sewer system, in anticipation of a loan from the Minnesota Public Facilities Authority (the
"PFA"); and
B. WHEREAS, the Temporary Bonds matures on November 1, 2024 (the “Maturity
Date”) and the City has determined to pay the Temporary Bonds on the November 30, 2023 (the
“Call Date”); and are callable November 1, 2023, and on any date thereafter, as provided in the
resolution of the City Council (the "City Council") adopted on October 11, 2022, authorizing the
issuance of the Temporary Bonds (the "Prior Resolution"); and
C. WHEREAS, the City Council of the City has heretofore applied for a loan from
the Minnesota Public Facilities Authority (the "PFA") to provide financing pursuant to
Minnesota Statutes, Chapters 475 and Sections 115.46 and 444.075, to pay the outstanding
Temporary Bonds on the Call Date (the “Refunding”) and to provide funds for wastewater
improvements including phosphorus treatment at the West Treatment Plant, as detailed in the
Minnesota Pollution Control Agency’s certification dated, May 25, 2023 (the "Project"); and
D. WHEREAS, the PFA is authorized pursuant to Minnesota Statutes,
Chapter 446A, as amended, to issue its bonds (the "PFA Bonds") and to use the proceeds thereof,
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together with certain other funds, to provide loans and other assistance to municipalities to fund
eligible costs of construction of publicly owned clean water systems in accordance with the
federal Safe Drinking Water Act and the federal Clean Water Act; and
E. WHEREAS, the City has applied for a loan from the PFA pursuant to such
program and the PFA has committed to make a loan to the City in the principal amount of
$34,045,359, to be disbursed and repaid in accordance with the terms of a Minnesota Public
Facilities Authority Bond Purchase and Project Loan Agreement with Point Source
Implementation Grant, dated October 2, 2023 (the "PFA Loan Agreement"), a copy of which has
been presented to the City Council and is on file with the Administrator. In addition, PFA will be
providing a Point Source Implementation Grant to the City in the amount of $7,000,000 (the
“Grant”) to help finance the Project, pursuant to the PFA Loan Agreement (with respect to the
Grant, the “Grant Agreement”); and
F. WHEREAS, the $34,045,359 General Obligation Sewer Revenue Note of 2023A
(the "Note") of the City is tax-exempt, and in addition the City will need to assure the tax-
exemption of the PFA Bonds; and
G. WHEREAS, in accordance with Minnesota Statutes, Section 475.60, Subdivision
2(4), the City is authorized to issue obligations to a board, department or agency of the State of
Minnesota by negotiation and without advertisement for bids and the PFA is, and has represented
that it is, a board, department or agency of the State of Minnesota; and
H. WHEREAS, the City owns and operates a municipal water system (the "Water
System") and a municipal sanitary sewer system (the "Sewer System" and together with the
Water System, the "System"), as separate revenue producing public utilities; and
I. WHEREAS, the net revenues of the System are pledged to the payment of the
City's outstanding (i) General Obligation Water and Sewer Revenue Refunding Bonds, Series
2019A, in the original principal amount of $3,525,000, dated December 19, 2019; and (ii)
General Obligation Water and Sewer Revenue Refunding Bonds, Series 2021B, in the original
principal amount of $7,390,000, dated September 23, 2021 (the "Outstanding System Bonds");
and
J. WHEREAS, the net revenues of the Sewer System are pledged to the payment of
the City's outstanding General Obligation Sewer Revenue Note of 2020, in the original principal
amount of $17,273,277, dated June 3, 2020 (the "Outstanding Sewer Note"); and
K. WHEREAS, a contract or contracts for the Project have been made by the City
with the approval of the PFA and all other state and federal agencies of which approval is
required:
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Otsego,
Wright County, Minnesota, as follows:
1. Acceptance of Offer; Payment. The offer of the PFA to purchase a $34,045,359
General Obligation Sewer Revenue Note of 2023A of the City, at the rate of interest hereinafter
set forth, and to pay therefor the sum of $34,045,359 as provided below, is hereby accepted, and
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the sale of the Note is hereby awarded to the PFA. The proceeds of the Note shall be disbursed
to pay the Temporary Bonds on the Call Date and payment for the Note shall be disbursed in
installments as eligible costs of the Project are reimbursed or paid, all as provided in the PFA
Loan Agreement.
2. Title; Date; Denomination; Interest Rates; Maturities. The Note shall be a fully
registered negotiable obligation, shall be titled "General Obligation Sewer Revenue Note of
2023A," shall be dated as of the date of delivery and shall be issued forthwith. The Note shall be
in the principal amount of $34,045,359, or so much thereof as shall be disbursed pursuant to the
PFA Loan Agreement, shall bear interest on so much of the principal amount of the Note as may
be disbursed and remains unpaid until the principal amount of the Note has been paid or has been
provided for, at the rate of 2.843% per annum (calculated on the basis of a 360-day year of
twelve 30-day months). Interest on the Note is payable semi-annually on February 20 and
August 20, commencing August 20, 2024. Interest starts accruing as of the date of the initial
disbursement. Principal on the Note shall mature on August 20 of the years and in the
installments as follows:
Year Amount Year Amount
2024 $673,359 2034 $1,736,000
2025 1,349,000 2035 1,785,000
2026 1,387,000 2036 1,836,000
2027 1,427,000 2037 1,888,000
2028 1,467,000 2038 1,942,000
2029 1,509,000 2039 1,997,000
2030 1,552,000 2040 2,054,000
2031 1,596,000 2041 2,112,000
2032 1,641,000 2042 2,172,000
2033 1,688,000 2043 2,234,000
Interest shall accrue only on the aggregate amount of the Note which has been disbursed
and is unpaid under the PFA Loan Agreement. The principal installments shall be paid in the
amounts scheduled above even if at the time of payment the full principal amount of the Note
has not been disbursed; provided that if the full principal amount of the Note is never disbursed,
the amount of the principal not disbursed shall be applied to reduce each unpaid principal
installment in the proportion that such installment bears to the total of all unpaid principal
installments (i.e., the remaining principal payment schedule shall be reamortized to provide
similarly level annual installments of total debt service payments). Principal, interest and any
premium due under the Note will be paid on each payment date by wire payment, or by check or
draft mailed at least five business days prior to the payment date to the person in whose name the
Note is registered, in any coin or currency of the United States which at the time of payment is
legal tender for public and private debts.
Interest on the Note includes amounts treated by the PFA as service fees.
3. Purpose; Cost. The proceeds of the Note shall provide funds to finance
construction of the Project and to pay the costs of the Refunding. The total cost of the
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construction of the Project, including legal and other professional charges, publication and
printing costs, interest accruing on money borrowed for the Project before the collection of net
revenues pledged and appropriated therefor, and all other costs necessarily incurred and to be
incurred from the inception to the completion of the Project, is estimated to be at least equal to
the amount of the Note. The City covenants that it shall do all things and perform all acts
required of it to assure that work on the Project proceeds with due diligence to completion and
that any and all permits and studies required under law for the Project are obtained.
4. Redemption. The Note shall be subject to redemption and prepayment in whole
or in part at the option of the City, subject to the written consent of the PFA, or mandatorily as
provided in the PFA Loan Agreement.
5. Registration of Note. At the time of issuance and delivery of the Note, the officer
of the City performing the functions of the treasurer (the "Administrator") shall register the Note
in the name of the payee in a note register which the Administrator and the officer's successors in
office shall maintain for the purpose of registering the ownership of the Note. The Note shall be
prepared for execution with an appropriate text and spaces for notation of registration. The force
and effect of such registration shall be as stated in the form of Note hereinafter set forth.
Payment of principal installments and interest, whether upon redemption or otherwise, made
with respect to the Note, may be made to the registered holder thereof or to the registered
holder's legal representative, without presentation or surrender of the Note.
6. Form of Note. The Note, together with the Certificate of Registration attached
thereto, shall be in substantially the following form:
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UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF OTSEGO
$34,045,359 GENERAL OBLIGATION SEWER REVENUE NOTE OF 2023A
THE CITY OF OTSEGO, WRIGHT COUNTY, MINNESOTA (the "City"), certifies that
it is indebted and for value received promises to pay to the Minnesota Public Facilities Authority
or the registered assign, the principal sum of THIRTY FOUR MILLION FORTY-FIVE
THOUSAND THREE HUNDRED FIFTY-NINE DOLLARS, or so much thereof as may have
been disbursed, on August 20 of the years and in the installments as follows:
Year Amount Year Amount
2024 $673,359 2034 $1,736,000
2025 1,349,000 2035 1,785,000
2026 1,387,000 2036 1,836,000
2027 1,427,000 2037 1,888,000
2028 1,467,000 2038 1,942,000
2029 1,509,000 2039 1,997,000
2030 1,552,000 2040 2,054,000
2031 1,596,000 2041 2,112,000
2032 1,641,000 2042 2,172,000
2033 1,688,000 2043 2,234,000
and to pay interest on so much of the principal amount of the debt as may be disbursed and
remains unpaid until the principal amount hereof is paid or has been provided for, at the rate of
2.843% per annum (calculated on the basis of a 360-day year of twelve 30-day months). Interest
on the Note is payable semi-annually on February 20 and August 20, commencing August 20,
2024. Interest starts accruing as of the date of the initial disbursement.
Principal and Interest Payments. Interest shall accrue only on the aggregate amount of
this Note which has been disbursed under the Minnesota Public Facilities Authority Bond
Purchase and Project Loan Agreement with Point Source Implementation Grant, dated as of
October 2, 2023, by and between the City and the Minnesota Public Facilities Authority (the
"PFA Loan Agreement"). The principal installments shall be paid in the amounts scheduled
above even if at the time of payment the full principal amount of this Note has not been
disbursed; provided that if the full principal amount of this Note is never disbursed, the amount
of the principal not disbursed shall be applied to reduce each unpaid principal installment in the
proportion that such installment bears to the total of all unpaid principal installments (i.e., the
remaining principal payment schedule shall be reamortized to provide similarly level annual
installments of total debt service payments). Interest on this Note includes amounts treated by
the Minnesota Public Facilities Authority as service fees. Principal, interest and any premium
due under this Note will be paid on each payment date by wire payment, or by check or draft
mailed at least five business days prior to the payment date to the person in whose name this
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Note is registered, in any coin or currency of the United States of America which at the time of
payment is legal tender for public and private debts.
Redemption. This Note shall be subject to redemption and prepayment in whole or in
part at the option of the City, subject to the written consent of the Minnesota Public Facilities
Authority, or mandatorily as provided in the PFA Loan Agreement.
Purpose; General Obligation. This Note has been issued pursuant to and in full
conformity with the Constitution and laws of the State of Minnesota for the purpose of providing
money to refund the outstanding $26,215,000 General Obligation Temporary Sewer Revenue
Bonds, Series 2022A; and to provide funds to finance the construction of improvements to the
municipal sanitary sewer system (the "Sewer System") specifically for the purpose of providing
money for wastewater improvements including phosphorus treatment at the West Treatment
Plant as detailed in the Minnesota Pollution Control Agency's certification dated, May 25, 2023
(the "Project") and is payable out of the PFA Debt Service Account of the Sewer Fund of the
City, to which account have been pledged net revenues of the Sewer System. This Note
constitutes a general obligation of the City, and to provide moneys for the prompt and full
payment of said principal installments and interest when the same become due, the full faith,
credit and taxing powers of the City have been and are hereby irrevocably pledged.
Registration; Transfer. This Note shall be registered in the name of the payee on the
books of the City by presenting this Note for registration to the Administrator, who will endorse
his or her name and note the date of registration opposite the name of the payee in the certificate
of registration attached hereto. Thereafter this Note may be transferred to a bona fide purchaser
only by delivery with an assignment duly executed by the registered owner or the registered
owner's legal representative, and the City may treat the registered owner as the person
exclusively entitled to exercise all the rights and powers of an owner until this Note is presented
with such assignment for registration of transfer, accompanied by assurance of the nature
provided by law that the assignment is genuine and effective, and until such transfer is registered
on said books and noted hereon by the Administrator.
Fees Upon Transfer or Loss. The Administrator may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection with the transfer of this
Note and any legal or unusual costs regarding transfers and lost notes.
Bond Purchase and Project Loan Agreement with Point Source Implementation Grant.
The terms and conditions of the PFA Loan Agreement are incorporated herein by reference and
made a part hereof. The PFA Loan Agreement may be attached to this Note, and shall be
attached to this Note if the holder of this Note is any person other than the Minnesota Public
Facilities Authority.
Tax-Exempt Obligation. The City intends that the interest on this Note will be excluded
from gross income for United States income tax purposes or from both gross income and taxable
net income for State of Minnesota income tax purposes.
Not Qualified Tax-Exempt Obligation. This Note has not been designated by the City as
a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended.
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IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things
required by the Constitution and laws of the State of Minnesota to be done, to happen and to be
performed, precedent to and in the issuance of this Note, have been done, have happened and
have been performed, in regular and due form, time and manner as required by law; that the City
has covenanted and agreed with the holder of this Note that it will impose and collect charges for
the service, use and availability of and connection to the Sewer System at the times and in
amounts necessary to produce net revenues adequate to pay all principal and interest when due
on this Note; that the City will levy a direct, annual, irrepealable ad valorem tax upon all of the
taxable property in the City, without limitation as to rate or amount, for the years and in amounts
sufficient to pay the installments of principal and interest on this Note as they respectively
become due, if the net revenues from the Sewer System and any other revenues irrevocably
appropriated to said PFA Debt Service Account are insufficient therefor; and that this Note,
together with all other debts of the City outstanding on the date hereof, being the date of its
actual issuance and delivery, does not exceed any constitutional or statutory limitation of
indebtedness.
IN WITNESS WHEREOF, the City of Otsego, Wright County, Minnesota, by its City
Council has caused this Note to be executed on its behalf by the manual signatures of its Mayor
and of its Administrator, and the corporate seal of the City having been intentionally omitted as
permitted by law, all as of (DO NOT DATE) , 2023.
CITY OF OTSEGO, WRIGHT COUNTY,
MINNESOTA
(DO NOT SIGN)
Mayor
(DO NOT SIGN)
Administrator
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CERTIFICATE OF REGISTRATION
The transfer of ownership of the principal amount of the attached Note may be made only
by the registered owner or his, her or its legal representative last noted below.
DATE OF
REGISTRATION
REGISTERED OWNER
SIGNATURE OF
ADMINISTRATOR
(DO NOT DATE)
Minnesota Public Facilities
Authority
Saint Paul, Minnesota
Federal Employer Identification
No. 41-6007162
(DO NOT SIGN)
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7. Execution. The Note shall be executed on behalf of the City by the electronic
signatures or manual signatures of its Mayor and Administrator; the seal of the City has been
intentionally omitted as permitted by law. The electronic signature of the Mayor and/or the
Administrator to this resolution and to any certificate authorized to be executed hereunder shall
be as valid as an original signature of such party and shall be effective to bind the City thereto.
For purposes hereof, (i) “electronic signature” means (a) a manually signed original signature
that is then transmitted by electronic means or (b) a signature obtained through DocuSign or a
similarly digitally auditable signature gathering process; and (ii) “transmitted by electronic
means” means sent in the form of a facsimile or sent via the internet as a portable document
format (“pdf”) or other replicating image attached to an electronic mail or internet message. In
the event of disability or resignation or other absence of either such officer, the Note may be
signed by electronic signature or manual signature of that officer who may act on behalf of such
absent or disabled officer. In case either such officer whose signature shall appear on the Note
shall cease to be such officer before the delivery of the Note, such signature shall nevertheless be
valid and sufficient for all purposes, the same as if such officer had remained in office until
delivery.
8. Delivery; Application of Proceeds. The Note when so prepared and executed
shall be delivered by the Administrator to the purchaser thereof prior to disbursements pursuant
to the PFA Loan Agreement, and the purchaser shall not be obliged to see to the proper
application thereof.
9. Fund and Accounts. There has heretofore been created a separate fund in the City
treasury designated the Sewer Fund (the "Fund"). The Administrator and all municipal officials
and employees concerned therewith shall maintain financial records of the receipts and
disbursements of the Sewer System in accordance with the resolutions establishing the Fund.
The Operation and Maintenance Account heretofore established by the City for the Sewer
System shall continue to be maintained in the manner heretofore and herein provided by the City.
All moneys remaining after paying or providing for the items set forth in the resolution
establishing the Operation and Maintenance Account shall constitute and are referred to as "net
revenues" until the Note has been paid. There shall be maintained in the Fund the following
accounts:
(a) A "Payment Account", to which shall be credited the proceeds of the Note
advanced in an amount sufficient to refund the Temporary Bonds on the Call Date after
taking into account unspent proceeds of the Temporary Bonds held in the Construction
Account for the Temporary Bonds and any sums on deposit in the Debt Service Account
established for the Temporary Bonds. On or prior to the Call Date, the Administrator
shall transfer the funds in the Payment Account to the paying agent of the Temporary
Bonds.
(b) A "PFA Construction Account", to which shall be credited the proceeds
received from the sale of the Note, less the funds deposited in the Payment Account. The
Note shall be the only source of moneys credited to the PFA Construction Account. It is
recognized that the sale proceeds of the Note are received in reimbursement for costs
expended on the Project or in direct payment of such costs, and that accordingly the
moneys need not be placed in the PFA Construction Account upon receipt but may be
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applied immediately to reimburse the source from which the expenditure was made. The
moneys in the PFA Construction Account shall be used solely for the purpose of paying
for the cost of constructing the Project and refunding the Temporary Bonds, including all
costs enumerated in Minnesota Statutes, Section 475.65, provided that such moneys shall
only be expended for costs and expenses which are permitted under the PFA Loan
Agreement. The PFA prohibits the use of proceeds of the Note to reimburse costs
initially paid from proceeds of other obligations of the City unless otherwise specifically
approved. Upon completion of the Project and the payment of the costs thereof, any
surplus shall be transferred to the PFA Debt Service Account.
(c) A "PFA Debt Service Account", to which shall be irrevocably
appropriated, pledged and credited: (1) net revenues of the Sewer System in an amount
sufficient to pay the principal of, and interest on, the Note when due; (2) any collection of
taxes which may hereafter be levied in the event the net revenues of the Sewer System
herein pledged for the payment of the Note are insufficient therefor; (3) all investment
earnings on moneys held in the PFA Debt Service Account; (4) any amounts transferred
from the Payment Account and the PFA Construction Account; and (5) any other moneys
which are properly available and are appropriated by the City Council to the PFA Debt
Service Account. The moneys in the PFA Debt Service Account shall be used only to
pay or prepay the principal of, and interest on, the Note and any other general obligation
bonds hereafter issued and made payable from the PFA Debt Service Account, and to pay
any rebate due to the United States with respect to the PFA Bonds in connection with the
Note.
No portion of the proceeds of the Note shall be used directly or indirectly to acquire
higher yielding investments or to replace funds which were used directly or indirectly to acquire
higher yielding investments, except (1) for a reasonable temporary period until such proceeds are
needed for the purpose for which the Note was issued, and (2) in addition to the above in an
amount not greater than the lesser of five percent of the proceeds of the Note or $100,000. To
this effect, any proceeds of the Note or any sums from time to time held in the Payment Account,
PFA Construction Account, Operation and Maintenance Account or PFA Debt Service Account
(or any other City account which will be used to pay principal or interest to become due on the
Note) in excess of amounts which under then applicable federal arbitrage regulations may be
invested without regard to yield shall not be invested at a yield in excess of the applicable yield
restrictions imposed by said arbitrage regulations on such investments after taking into account
any applicable "temporary periods" or "minor portion" made available under the federal arbitrage
regulations. In addition, moneys in the Fund shall not be invested in obligations or deposits
issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof
if and to the extent that such investment would cause the Note to be "federally guaranteed"
within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended
(the "Code").
The City shall observe the covenants of paragraphs 20, 21 and 22 of this resolution and of
Article 3 of the PFA Loan Agreement with regard to the Fund.
10. Coverage Test; Pledge of Net Revenues; Excess Revenues. It is hereby found,
determined and declared that the net revenues of the System are sufficient in amount to pay when
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due the principal of and interest on the Note and the Outstanding System Bonds and a sum at
least five percent in excess thereof. It is hereby found, determined and declared that the net
revenues of the Sewer System is sufficient in amount to pay when due the principal of and
interest the Outstanding System Note and a sum at least five percent in excess thereof. The net
revenues of the System are hereby pledged on a parity lien with the Outstanding System Bonds
and the Outstanding System Note, and shall be applied for that purpose, but solely to the extent
required to meet, together with other pledged sums, the principal and interest requirements of the
Note as the same become due.
Nothing contained herein shall be deemed to preclude the City from making further
pledges and appropriations of the net revenues of the System for the payment of other or
additional obligations of the City, provided that it has first been determined by the City Council
that estimated net revenues of the System will be sufficient, in addition to all other sources, for
the payment of the Note and such additional obligations, and any such pledge and appropriation
of net revenues may be made superior or subordinate to, or on a parity with, the pledge and
appropriation herein. Net revenues in excess of those required for the foregoing may be used for
any proper purpose.
11. Pledge to Produce Revenues. In accordance with Minnesota Statutes,
Section 444.075, the City hereby covenants and agrees with the holder of the Note that it will
impose and collect charges for the service, use and availability of and connection to the Sewer
System at the times and in the amounts required to produce net revenues adequate to pay,
together with other pledged sums, all principal and interest when due on the Note. However,
nothing herein shall preclude the City from levying taxes for the payment of the Note as
permitted by Minnesota Statutes, Section 115.46.
12. General Obligation Pledge. The full faith, credit and taxing powers of the City
shall be, and are hereby, irrevocably pledged for the prompt and full payment of the principal
and interest on the Note as the same respectively become due. If the net revenues of the Sewer
System appropriated and pledged to the payment of principal and interest on the Note, together
with other funds irrevocably appropriated to the PFA Debt Service Account, shall at any time be
insufficient to pay such principal and interest when due, the City covenants and agrees to levy,
without limitation as to rate or amount, an ad valorem tax upon all taxable property in the City
sufficient to pay such principal and interest as they become due. If the balance in the PFA Debt
Service Account is ever insufficient to pay all principal and interest then due on the Note and any
other obligations payable therefrom, the deficiency shall be promptly paid out of any other funds
of the City which are available for such purpose, and such other funds may be reimbursed, with
or without interest, from the PFA Debt Service Account when a sufficient balance is available
therein.
13. Certificate of Registration. The Administrator is hereby directed to file a certified
copy of this resolution with the County Auditor of Wright County, Minnesota, together with such
other information as the County Auditor shall require, and to obtain the County Auditor's
certificate that the Note has been entered in the County Auditor's Bond Register.
14. Bond Purchase and Project Loan Agreement with Point Source Implementation
Grant. The PFA Loan Agreement is hereby approved in substantially the form presented to the
129319483v1
12
City Council, and in the form executed by electronic signatures or manual signatures is hereby
incorporated by reference and made a part of this resolution. The electronic signature of the
Mayor and/or the Administrator to this PFA Loan Agreement and to any certificate authorized to
be executed hereunder shall be as valid as an original signature of such party and shall be
effective to bind the City thereto. For purposes hereof, (i) “electronic signature” means (a) a
manually signed original signature that is then transmitted by electronic means or (b) a signature
obtained through DocuSign or a similarly digitally auditable signature gathering process; and (ii)
“transmitted by electronic means” means sent in the form of a facsimile or sent via the internet as
a portable document format (“pdf”) or other replicating image attached to an electronic mail or
internet message. Each and all of the provisions of this resolution relating to the Note are
intended to be consistent with the provisions of the PFA Loan Agreement, and to the extent that
any provision in the PFA Loan Agreement is in conflict with this resolution as it relates to the
Note, that provision shall control and this resolution shall be deemed accordingly modified. The
City's execution and delivery of the PFA Loan Agreement by the Mayor and Administrator is
hereby approved, ratified and authorized. The execution of the PFA Loan Agreement by the
appropriate officers shall be conclusive evidence of the approval of the PFA Loan Agreement in
accordance with the terms hereof. The PFA Loan Agreement may be attached to the Note, and
shall be attached to the Note if the holder of the Note is any person other than the PFA.
15. Principal Forgiveness. In addition to the Note, the City is obligated to repay the
Principal Forgiveness (as defined in the PFA Loan Agreement) in accordance with Section 9.2,
Article 9 of the PFA Loan Agreement. Notwithstanding any provision to the contrary in the PFA
Loan Agreement, the Principal Forgiveness is payable solely from legally available funds and is
a special, limited revenue obligation and not a general obligation of the City. Neither the full
faith and credit nor the taxing powers of the City are pledged to the payment of the Principal
Forgiveness.
16. Point Source Implementation Grant. In addition to the Note, if an Event of
Default occurs under Section 9.1 of the PFA Loan Agreement, the City is obligated to repay the
Grant in accordance with Section 9.2 of the PFA Loan Agreement. Notwithstanding any
provision to the contrary in the PFA Loan Agreement, the Grant repayment is payable solely
from legally available funds and is a special, limited revenue obligation and not a general
obligation of the City. Neither the full faith and credit nor the taxing powers of the City are
pledged to the payment of the Grant.
17. Records and Certificates. The officers of the City are hereby authorized and
directed to prepare and furnish to the PFA, and to the attorneys approving the legality of the
issuance of the Note, certified copies of all proceedings and records of the City relating to the
Note and to the financial condition and affairs of the City, and such other affidavits, certificates
and information as are required to show the facts relating to the legality and marketability of the
Note as the same appear from the books and records under their custody and control or as
otherwise known to them, and all such certified copies, certificates and affidavits, including any
heretofore furnished, shall be deemed representations of the City as to the facts recited therein.
18. Payment of the Temporary Bonds. The Temporary Bonds shall be redeemed and
prepaid on the Call Date in accordance with the terms and conditions set forth in the Notice of
129319483v1
13
Call for Redemption attached hereto as Exhibit A, which terms and conditions are hereby
approved and incorporated herein by reference.
19. Temporary Bonds; Security. Until retirement of the Temporary Bonds, all
provisions theretofore made for the security thereof shall be observed by the City and all of its
officers and agents.
20. Negative Covenants as to Use of Proceeds and Project. The City hereby
covenants not to use the proceeds of the Note or to use the Project, or to cause or permit them to
be used, or to enter into any deferred payment arrangements for the cost of the Project, in such a
manner as to cause the Note to be a "private activity bond" within the meaning of Sections 103
and 141 through 150 of the Code. The City reasonably expects that no actions will be taken over
the term of the Note that would cause it to be a private activity bond, and the average term of the
Note is not longer than reasonably necessary for the governmental purpose of the issue. The
City hereby covenants not to use the proceeds of the Note in such a manner as to cause the Note
to be a "hedge bond" within the meaning of Section 149(g) of the Code.
The City hereby covenants not to use the proceeds of the Note or to use the Project, or to
cause or permit them to be used, or to enter into any deferred payment arrangement for the cost
of the Project, in such a manner as to cause the PFA Bonds to be "private activity bonds" within
the meaning of Sections 103 and 141 through 150 of the Code. The City reasonably expects that
it will take no actions over the term of the Note that would cause the PFA Bonds to be private
activity bonds, and the average term of the Note is not longer than reasonably necessary for its
governmental purpose.
21. Tax-Exempt Status of the Note; Rebate. The City shall comply with requirements
necessary under the Code to establish and maintain the exclusion from gross income under
Section 103 of the Code of the interest on the Note, including without limitation (i) requirements
relating to temporary periods for investments, (ii) limitations on amounts invested at a yield
greater than the yield on the Note, and (iii) the rebate of excess investment earnings to the United
States. The City expects to satisfy the twenty-four month exemption for gross proceeds of the
Note as provided in Section 1.148-7(e) of the Regulations. The Mayor and/or the Administrator,
are hereby authorized and directed to make such elections as to arbitrage and rebate matters
relating to the Note as they deem necessary, appropriate or desirable in connection with the Note,
and all such elections shall be, and shall be deemed and treated as, elections of the City.
22. Tax-Exempt Status of the PFA Bonds; Rebate. The City with respect to the Note
shall comply with requirements necessary under the Code to establish and maintain the exclusion
from gross income under Section 103 of the Code of the interest on the PFA Bonds, including
without limitation (a) requirements relating to temporary periods for investments, (b) limitations
on amounts invested at a yield greater than the yield on the PFA Bonds, and (c) the rebate of
excess investment earnings to the United States. The City covenants and agrees with the PFA
and holders of the Note that the investments of proceeds of the Note, including the investment of
any revenues pledged to the Note which are considered gross proceeds of the PFA Bonds under
the applicable regulations, and accumulated sinking funds, if any, shall be limited as to amount
and yield in such manner that the PFA Bonds shall not be arbitrage bonds within the meaning of
Section 148 of the Code and any regulations thereunder. On the basis of the existing facts,
129319483v1
14
estimates and circumstances, including the foregoing findings and covenants, the City hereby
certifies that it is not expected that the proceeds of the Note will be used in such manner as to
cause the PFA Bonds to be arbitrage bonds under Section 148 of the Code and any regulations
thereunder. The Mayor and Administrator shall furnish a certificate to the PFA embracing or
based on the foregoing certification at the time of delivery of the Note to the PFA. The proceeds
of the Note will likewise be used in such manner that the Note is not a private activity bond
under Section 103(b) of the Code.
23. Not Designated as Qualified Tax-Exempt Obligations. The City will not
designate the Note as a "qualified tax exempt obligation" for purposes of Section 265(b)(3) of the
Code.
24. Compliance With Reimbursement Bond Regulations. The provisions of this
paragraph are intended to establish and provide for the City's compliance with United States
Treasury Regulations Section 1.150-2 (the "Reimbursement Regulations") applicable to the
"reimbursement proceeds" of the Note, being those portions thereof which will be used by the
City to reimburse itself for any expenditure which the City paid or will have paid prior to the
Closing Date (a "Reimbursement Expenditure").
The City hereby certifies and/or covenants as follows:
(a) Not later than sixty days after the date of payment of a Reimbursement
Expenditure, the City (or person designated to do so on behalf of the City) has made or will have
made a written declaration of the City's official intent (a "Declaration") which effectively (i)
states the City's reasonable expectation to reimburse itself for the payment of the Reimbursement
Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional
description of the property, project or program to which the Declaration relates and for which the
Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the
general functional purpose thereof from which the Reimbursement Expenditure was to be paid
(collectively the "Project"); and (iii) states the maximum principal amount of debt expected to be
issued by the City for the purpose of financing the Project; provided, however, that no such
Declaration shall necessarily have been made with respect to: (i) "preliminary expenditures" for
the Project, defined in the Reimbursement Regulations to include engineering or architectural,
surveying and soil testing expenses and similar preliminary costs, which in the aggregate do not
exceed twenty percent of the "issue price" of the Note, and (ii) a de minimis amount of
Reimbursement Expenditures not in excess of the lesser of $100,000 or five percent of the
proceeds of the Note.
(b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of
the Note or any of the other types of expenditures described in Section 1.150-2(d)(3) of the
Reimbursement Regulations.
(c) The "reimbursement allocation" described in the Reimbursement Regulations for
each Reimbursement Expenditure shall and will be made forthwith following (but not prior to)
the issuance of the Note, and not later than 18 months after the later of (i) the date of the
payment of the Reimbursement Expenditure, or (ii) the date on which the Project to which the
Reimbursement Expenditure relates is first placed in service, but in no event more than three
years after the date of payment of the Reimbursement Expenditure.
129319483v1
15
(d) Each such reimbursement allocation will be made in a writing that evidences the
City's use of note proceeds to reimburse the Reimbursement Expenditure and, if made within 30
days after the Note is issued, shall be treated as made on the day the Note is issued.
Provided, however, that the City may take action contrary to any of the foregoing
covenants in this paragraph upon receipt of an opinion of its Bond Counsel for the Note stating
in effect that such action will not impair the tax-exempt status of the Note.
25. Severability. If any section, paragraph or provision of this resolution shall be held
to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this resolution.
26. Headings. Headings in this resolution are included for convenience of reference
only and are not a part hereof, and shall not limit or define the meaning of any provision hereof.
The motion for the adoption of the foregoing resolution was duly seconded by member
_________ and, after full discussion thereof and upon a vote being taken thereon, the following
voted in favor thereof: _________________________________________________________
and the following voted against the same: _________________________________________
Whereupon the resolution was declared duly passed and adopted.
129319483v1
16
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF OTSEGO
I, the undersigned, being the duly qualified and acting Clerk of the City of Otsego,
Minnesota DO HEREBY CERTIFY that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that the same is a full, true and
complete transcript of the minutes of a meeting of the City Council, duly called and held on the
date therein indicated, insofar as such minutes relate to the $34,045,359 General Obligation
Sewer Revenue Note of 2023A.
WITNESS my hand and the City’s seal on October 23, 2023.
____________________________________
Clerk
(SEAL)
129319483v1
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION TEMPORARY SEWER REVENUE BONDS, SERIES 2022A
CITY OF OTSEGO, WRIGHT COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Otsego,
Wright County, Minnesota, there have been called for redemption and prepayment on
November 30, 2023
those outstanding bonds of the City designated as General Obligation Temporary Sewer Revenue
Bonds, Series 2022A, dated as of November 8, 2022, having stated maturity date in the year
2024, inclusive, and totaling $1,095,000 in principal amount and having the CUSIP number
listed below:
Year Amount CUSIP
2024 $26,215,000 689146PP7
The bonds are being called at a price of par plus accrued interest to November 30, 2023, on
which date all interest on the bonds will cease to accrue. Holders of the bonds hereby called for
redemption are requested to present their bonds for payment, at the office of the Northland Trust
Services, Inc., 150 S 5th Street, #3300, Minneapolis, Minnesota 55402.
Dated: October 23, 2023 BY ORDER OF THE CITY COUNCIL
/s/ Adam Flaherty, Administrator
*The City shall not be responsible for the selection of or use of the CUSIP numbers, nor is any
representation made as to their correctness indicated in the notice. They are included solely for
the convenience of the holders.
129319483v1
MN Public Facilities Authority Exhibit A
Loan Amortization Schedule
Clean Water State Revolving Fund
Otsego_CWRF_02 MPFA-CWRF-L-021-FY24 34,045,359.00
Rate: 2.843%West WWTP
Date:
Maturity: 08/20/43 final loan amount:34,045,359.00
Date Effective Source Disbursement Repayment Interest Principal Loan Balance Annl Debt Srv
projected 10/25/23 Op Res 34,045,359.00 34,045,359.00
projected 11/29/23 Op Res 91,413.68 34,045,359.00
projected 12/27/23 Op Res 166,695.53 34,045,359.00
projected 01/24/24 Op Res 239,288.75 34,045,359.00
projected 02/28/24 Op Res 330,702.43 34,045,359.00
projected 03/26/24 Op Res 405,984.28 34,045,359.00
projected 04/23/24 Op Res - 478,577.50 34,045,359.00
08/20/24 1,466,507.11 793,148.11 673,359.00 33,372,000.00 1,466,507.11
02/20/25 474,382.98 474,382.98 33,372,000.00
08/20/25 1,823,382.98 474,382.98 1,349,000.00 32,023,000.00 2,297,765.96
02/20/26 455,206.95 455,206.95 32,023,000.00
08/20/26 1,842,206.95 455,206.95 1,387,000.00 30,636,000.00 2,297,413.90
02/20/27 435,490.74 435,490.74 30,636,000.00
08/20/27 1,862,490.74 435,490.74 1,427,000.00 29,209,000.00 2,297,981.48
02/20/28 415,205.94 415,205.94 29,209,000.00
08/20/28 1,882,205.94 415,205.94 1,467,000.00 27,742,000.00 2,297,411.88
02/20/29 394,352.53 394,352.53 27,742,000.00
08/20/29 1,903,352.53 394,352.53 1,509,000.00 26,233,000.00 2,297,705.06
02/20/30 372,902.10 372,902.10 26,233,000.00
08/20/30 1,924,902.10 372,902.10 1,552,000.00 24,681,000.00 2,297,804.20
02/20/31 350,840.42 350,840.42 24,681,000.00
08/20/31 1,946,840.42 350,840.42 1,596,000.00 23,085,000.00 2,297,680.84
02/20/32 328,153.28 328,153.28 23,085,000.00
08/20/32 1,969,153.28 328,153.28 1,641,000.00 21,444,000.00 2,297,306.56
02/20/33 304,826.46 304,826.46 21,444,000.00
08/20/33 1,992,826.46 304,826.46 1,688,000.00 19,756,000.00 2,297,652.92
02/20/34 280,831.54 280,831.54 19,756,000.00
08/20/34 2,016,831.54 280,831.54 1,736,000.00 18,020,000.00 2,297,663.08
02/20/35 256,154.30 256,154.30 18,020,000.00
08/20/35 2,041,154.30 256,154.30 1,785,000.00 16,235,000.00 2,297,308.60
02/20/36 230,780.53 230,780.53 16,235,000.00
08/20/36 2,066,780.53 230,780.53 1,836,000.00 14,399,000.00 2,297,561.06
02/20/37 204,681.79 204,681.79 14,399,000.00
08/20/37 2,092,681.79 204,681.79 1,888,000.00 12,511,000.00 2,297,363.58
02/20/38 177,843.87 177,843.87 12,511,000.00
08/20/38 2,119,843.87 177,843.87 1,942,000.00 10,569,000.00 2,297,687.74
02/20/39 150,238.34 150,238.34 10,569,000.00
08/20/39 2,147,238.34 150,238.34 1,997,000.00 8,572,000.00 2,297,476.68
02/20/40 121,850.98 121,850.98 8,572,000.00
08/20/40 2,175,850.98 121,850.98 2,054,000.00 6,518,000.00 2,297,701.96
02/20/41 92,653.37 92,653.37 6,518,000.00
08/20/41 2,204,653.37 92,653.37 2,112,000.00 4,406,000.00 2,297,306.74
02/20/42 62,631.29 62,631.29 4,406,000.00
08/20/42 2,234,631.29 62,631.29 2,172,000.00 2,234,000.00 2,297,262.58
02/20/43 31,756.31 31,756.31 2,234,000.00
08/20/43 2,265,756.31 31,756.31 2,234,000.00 - 2,297,512.62
totals 34,045,359.00 45,120,074.55 11,074,715.55 34,045,359.00 45,120,074.55
Type of Note:Tax Exempt
General Obligation Revenue Note
THIS SCHEDULE IS NOT TO BE USED
TO DETERMINE EXACT REPAYMENTS DUE
UNTIL THE LOAN IS FULLY DISBURSED
cw_Otsego_02.xlsm 10/04/23 page 1 of 2
MN Public Facilities Authority RATE CALC Clean Water State Revolving Fund
Calculation of Loan Rate for Otsego_CWRF_02
MPFA-CWRF-L-021-FY24
Cash flow using principal Present Value of Cash Flows
Rate Scales schedule and these rate scales:and these rate scales *:
Date Principal PFA Bonds MMD AAA PFA Bonds MMD AAA PFA Bonds MMD AAA
10/25/23 (34,045,359.00) (34,045,359.00) (34,045,359.00) (34,045,359.00) (34,045,359.00)
08/20/24 673,359.00 3.729%673,359.00 1,717,193.51 673,359.00 1,664,451.56
02/20/25 - - 624,361.20 - 593,774.03
08/20/25 1,349,000.00 3.652%1,349,000.00 1,973,361.20 1,349,000.00 1,841,302.98
02/20/26 - - 599,728.46 - 549,043.43
08/20/26 1,387,000.00 3.512%1,387,000.00 1,986,728.46 1,387,000.00 1,784,530.34
02/20/27 - - 575,372.74 - 507,070.19
08/20/27 1,427,000.00 3.430%1,427,000.00 2,002,372.74 1,427,000.00 1,731,398.74
02/20/28 - - 550,899.69 - 467,367.03
08/20/28 1,467,000.00 3.382%1,467,000.00 2,017,899.69 1,467,000.00 1,679,648.85
02/20/29 - - 526,092.72 - 429,649.77
08/20/29 1,509,000.00 3.383%1,509,000.00 2,035,092.72 1,509,000.00 1,630,684.25
02/20/30 - - 500,567.98 - 393,533.87
08/20/30 1,552,000.00 3.379%1,552,000.00 2,052,567.98 1,552,000.00 1,583,251.75
02/20/31 - - 474,346.94 - 358,989.63
08/20/31 1,596,000.00 3.389%1,596,000.00 2,070,346.94 1,596,000.00 1,537,313.03
02/20/32 - - 447,302.72 - 325,877.29
08/20/32 1,641,000.00 3.394%1,641,000.00 2,088,302.72 1,641,000.00 1,492,723.55
02/20/33 - - 419,454.95 - 294,174.23
08/20/33 1,688,000.00 3.442%1,688,000.00 2,107,454.95 1,688,000.00 1,450,143.50
02/20/34 - - 390,404.47 - 263,572.95
08/20/34 1,736,000.00 3.519%1,736,000.00 2,126,404.47 1,736,000.00 1,408,527.43
02/20/35 - - 359,859.55 - 233,876.10
08/20/35 1,785,000.00 3.637%1,785,000.00 2,144,859.55 1,785,000.00 1,367,681.72
02/20/36 - - 327,399.33 - 204,831.78
08/20/36 1,836,000.00 3.789%1,836,000.00 2,163,399.33 1,836,000.00 1,327,974.16
02/20/37 - - 292,616.31 - 176,232.02
08/20/37 1,888,000.00 3.907%1,888,000.00 2,180,616.31 1,888,000.00 1,288,543.07
02/20/38 - - 255,734.23 - 148,266.12
08/20/38 1,942,000.00 3.991%1,942,000.00 2,197,734.23 1,942,000.00 1,250,148.51
02/20/39 - - 216,981.62 - 121,099.61
08/20/39 1,997,000.00 4.029%1,997,000.00 2,213,981.62 1,997,000.00 1,212,347.71
02/20/40 - - 176,752.05 - 94,962.26
08/20/40 2,054,000.00 4.057%2,054,000.00 2,230,752.05 2,054,000.00 1,175,902.30
02/20/41 - - 135,086.66 - 69,865.98
08/20/41 2,112,000.00 4.103%2,112,000.00 2,247,086.66 2,112,000.00 1,140,266.88
02/20/42 - - 91,758.98 - 45,684.48
08/20/42 2,172,000.00 4.152%2,172,000.00 2,263,758.98 2,172,000.00 1,105,817.92
02/20/43 - - 46,668.26 - 22,367.04
08/20/43 2,234,000.00 4.178%2,234,000.00 2,280,668.26 2,234,000.00 1,072,462.98
02/20/44 - - - - -
totals - - 15,066,612.14 - -
* yields that equates PV of cash flows to $-0-:0.000%3.843%
less discounts applied to the higher of the two yields: base discount: 1.000%
MHI below average:
Avg residential cost:
resulting loan rate (min=1%): 2.843%
09/29/23
estimated savings:$3,991,897 WAM:
11.4 years
FINAL
cw_Otsego_02.xlsm 10/04/23 page 2 of 2