02-11-2003 HUCM
Special Meeting
February 11, 2003
Members present: President David Wetterling; Vice President Craig Lenz;
Secretary Donald Walser; Commissioner Paul Ackland; Commissioner Marlin
Torgerson; and Interim General Manager Patrick Spethman.
President Wetterling called the meeting to order at 3:35 p.m.
Steve Apfelbacher from Ehlers & Associates Inc. explained the bond financing;
the results of the bond sale; and the debt service coverage calculations.
Vice President Lenz made a motion to adopt resolution relating to $31,725,000
public utility revenue bonds, series 2003B; and to authorize the Hutchinson City
Council to provide for the issuance and sale of the bonds. Commissioner
Torgerson seconded the motion and it passed unanimously.
Secretary Walser made a motion to adjourn the meeting at 3:50 p.m.
Commissioner Ackland seconded the motion and it passed unanimously.
Donald H. Walser, Secretary
ATTEST
David J. Wetterling, President
Special Meeting
February 11, 2003
Members present: President David Wetterling; Vice President Craig Lenz;
Secretary Donald Walser; Commissioner Paul Ackland; Commissioner Marlin
Torgerson; and Interim General Manager Patrick Spethman.
President Wetterling called the meeting to order at 3:35 p.m.
Steve Apfelbacher from Ehlers & Associates Inc. explained the bond financing;
the results of the bond sale; and the debt service coverage calculations.
Vice President Lenz made a motion to adopt resolution relating to $31,725,000
public utility revenue bonds, series 20036; and to authorize the Hutchinson City
Council to provide for the issuance and sale of the bonds. Commissioner
Torgerson seconded the motion and it passed unanimously.
Secretary Walser made a motion to adjourn the meeting at 3:50 p.m.
Commissioner Ackland seconded the motion and it passed unanimously.
i
ATTEST
Donald H. Walser, Secretary
/2
City of Hutchinson, Minnesota
Results of Bond Sale
February 11, 2003
$31,725,000 Public Utility Revenue Bonds, Series 2003B
Low Bidder U.S. Bancorp Piper Jaffray, Minneapolis,
Minnesota
True Interest Rate 4.2940%
Number of Bids 5
Moody's Rating Reconfirmed Underlying A -1
MBIA Insurance results "Aaa"
Range of Bids 4.29% to 4.37% or $835,767
Results Estimated* Results of Sale
Principal Amount $31,725,000 $31,725,000
Discount Allowance $348,975 $317,567 (1.00 %)
Costs of Issuance $85,000 $79,915
Coupon Interest $20,319,844 $18,148,280
Coupon Rates 1.25% - 5.20% 2.00% - 4.625%
True Interest Rate 4.7988% 4.2940%
Project Construction Amount $26,750,000 $26,925,000
Commission Action Adopt "Resolution Relating to $31,725,000 Public Utility Revenue
Bonds, Series 2003B; Authorizing The Hutchinson City Council To
Provide For The Issuance And Sale Thereof'
Council Action Adopt "Resolution Relating to $31,725,000 Public Utility Revenue
Bonds, Series 200311; Authorizing The Issuance, Awarding The Sale,
Fixing The Form And Details, Providing For The Execution And
Delivery Thereof And The Security Therefor"
*The amount of the bond issue was increased from $29,955,000, as presented in the Pre -Sale
Report dated January 14, 2002, to $31,725,000 to refund the 2001 Bonds so the new issue can use
a surety bond for a debt reserve and be sold with a first lien on revenues.
1 40
Prepared by Ehlers & Associates, Inc.
Attachments
■ Market Graph
■ Bid Tabulation
■ Debt Schedule
■ Revised Debt Service Coverage Calculations
I a
Prepared by Ehlers & Associates, Inc.
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BID TABULATION
$31,725,000 Public Utility Revenue Bonds, Series 2003B
CITY OF HUTCHINSON, MINNESOTA
SALE: February 11, 2003
AWARD: U.S. BANCORP PIPER JAFFRAY
RATING: MBIA Insured by Issuer (Moody's Investors Service "Aaa ")
BBI: 4.88'
NET TRUE
NAME OF BIDDER MATURITY RATE REOFFERING PRICE INTEREST INTERES-
(December 1) YIELD COST RATE
U.S. BANCORP PIPER JAFFRAY
Minneapolis, Minnesota
WELLS FARGO BROKERAGE SERVICES LLC
Minneapolis, Minnesota
EDWARD JONES
St. Louis, Missouri
I
2003
2.000%
1.125%
2004
2.000%
1.200%
2005
2.000%
1.400%
2006
2.000%
1.750%
2007
2.500%
2.150%
2008
3 -000%
2.600%
2009
3.250%
2.950%
2010
3.250%
3.250%
2011
3.750%
3.500%
2012
3.750%
3.650%
2013
3.800%
3.800%
2014
3.900%
3.950%
2015
4.000%
4.050%
2016
4.100%
4.170%
2017
4.200%
4.250%
2018
4.250%
4.330%
2019
4.300%
4.420%
2020
4.400%
4.500%
2021
4.500%
4.600%
2022*
4.625%
4.720%
2023*
4.625%
4.720%
2024
4.625%
4.770%
2025
4.625%
4.800%
$3,810,000 Term Bond due 2023 with mandatory redemption in 2022
$31,407,432.75$18,465,847.15 4.2940%
L E A D E R S I N P U B L I C F I N A N C E
E H L E R S 3060 Centre Point Drive, Roseville, MN 55113 -1105
651.697.8500 fax 651.697.8555 www.ehlers - inc.com
& A S S O C I A T E S I N C Offices in Roseville, MN, Brookfield, WI and Naperville, IL
. _ ..................... _.............
$31,725,000 Public Utility Revenue Bonds, Series 2003B Page
City of Hutchinson, Minnesota Alk
NAME OF BIDDER
MATURITY
(December 1)
RATE
NET TR
REOFFERING PRICE INTEREST INTE
YIELD COST RATE
SALOMON SMITH BARNEY
2003
2.000%
$31,585,057.05$18,630,131.55 4.3075%
Chicago, Illinois
2004
2.000%
2005
2.000%
2006
2.000%
2007
2.250%
2008
2.750%
2009
3.000%
2010
3.250%
2011
3.750%
2012
4.000%
2013
4.000%
2014
4.000%
2015
4.000%
2016
4.100%
2017
4.200%
2018
4.250%
2019
4.375%
2020
4.400%
2021
4.500%
2022
4.500%
2023
4.600%
2024
5.000%
2025
5.000%
MERRILL LYNCH & CO. 2003
New York, New York 2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
1.100% $31,721,064.67$18,819,955.33 4.3389%
1.500%
2.000%
2.000%
3.000%
3.000%
3.750%
3.750%
3.750%
3.750%
3.750%
3.900%
4.000%
4.125%
4.250%
4.300%
4.400%
4.500%
4.500%
4.625%
5.000%
5.000%
5.000%
$31,725,000 Public Utility Revenue Bonds, Series 2003B Page
City of Hutchinson, Minnesota
NET TRUE
NAME OF BIDDER _ MATURITY RATE REOFFERING PRICE INTEREST INTEREST
(December 1) YIELD COST RATE
UBS PAINEWEBBER INC.
Chicago, Illinois
113C DAIN RAUSCHER INC.
Denver, CO
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2.000%
2.000%
2.000%
2.250%
2.250%
3.000%
3.000%
4.000%
4.000%
4.000%
4.000%
4.000%
4.000%
4.125%
4.250%
4.300%
4.375%
4.500%
4.500%
4.500%
4.625%
5.000%
5.000%
1.200%
2.500%
2.500%
2.500%
3.000%
3.000%
3.250%
3.500%
3.750%
4.000%
4.000%
4.000%
5.000%
5.000%
5.000%
5.000%
5.000%
5.000%
5.000%
5.000%
5.000%
5.000%
5.000%
$31,535,854.75$18,859,013.23 4.3699%
$32,593,124.70$19,301,614.68 4.3720%
City of Hutchinson, Minnesota
$31,725, 000" Public Utility Revenue Bonds, Series 2003B
U.S. Bancorp Piper Jaffray
DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P +I FISCAL TOTAL
3/11/2003 - -
12/01/2003 1,020,000.00 2.000% 913,913.44 1,933,913.44 1,933,913.44
6101/2004 - - 599,075.63 599,075.63 -
12/01/2004 955,000.00 2.000% 599,075.63 1,554,075.63 2,153,151.26
6/01/2005 - - 589,525.63 589,525.63 -
12/01/2005 970,000.00 2.000% 589,525.63 1,559,525.63 2,149,051.26
6/01/2006 - - 579,825.63 579,825.63 -
12/01/2006 975,000.00 2.000% 579,825.63 1,554,825.63 2,134,651.26
6/01/2007 - - 570,075.63 570,075.63 -
12/01/2007 995,000.00 2.500% 570,075.63 1,565,075.63 2,135,151.26
6/01/2008 - - 557,638.13 557,638.13 -
12/01/2008 1,025,000.00 3.000% 557,638.13 1,582,638.13 2,140,276.26
6/01/2009 - - 542,263.13 542,263.13
12/01/2009 1,055,000.00 3.250% 542,263.13 1,597,263.13 2,139,526.26
6/01/2010 - - 525,119.38 525,119.38 -
12/01/2010 1,090,000.00 3.250% 525,119.38 1,615,119.38 2,140,238.76
6/01/2011 - - 507,406.88 507,406.88 -
12/01/2011 1,130,000.00 3.750% 507,406.88 1,637,406.88 2,144,813.76
6/01/2012 - - 486,219.38 486,219.38 -
12/01/2012 1,180,000.00 3.750% 486,219.38 1,666,219.38 2,152,438.76
6/01/2013 - - 464,094.38 464,094.38
12101/2013 1,230,000.00 3.800% 464,094.38 1,694,094.38 2,158,188.76
6101%2014 - - 440,724.38 440,724.38 -
12/01/2014 1,280,000.00 3.900% 440,724.38 1,720,724.38 2,161,448.76
6/0112015 - - 415,764.38 415,764.38 -
12/01/2015 1,335,000.00 4.00011/o 415,764.38 1,750,764.38 2,166,528.76
6/01/2016 - - 389,064.38 389,064.38 -
12/01/2016 1,400,000.00 4.100% 389,064.38 1,789,064.38 2,178,128.76
6/01/2017 - - 360,364.38 360,364.38 -
12101/2017 1,465,000.00 4.200% 360,364.38 1,825,364.38 2,185,728.76
6/01/2018 - 329,599.38 329,599.38 -
12/01/2018 1,535,000.00 4.250% 329,599.38 1,864,599.38 2,194,198.76
6/01/2019 - - 296,980.63 296,980.63 -
12/01/2019 1,605,000.00 4.300% 296,980.63 1,901,980.63 2,198,961.26
6/0112020 - - 262,473.13 262,473.13 -
12/01/2020 1,685,000.00 4.400% 262,473.13 1,947,473.13 2,209,946.26
6/01/2021 - - 225,403.13 225,403.13 -
12/01/2021 1,770,000.00 4.500% 225,403.13 1,995,403.13 2,220,806.26
6/01/2022 - - 185,578.13 185,578.13 -
12/01/2022 1,860,000.00 4.625% 185,578.13 2,045,578.13 2,231,156.26
6/01/2023 - - 142,565.63 142,565.63
12/01/2023 1,950,000.00 4.625% 142,565.63 2,092,565.63 2,235,131.26
6/01/2024 - 97,471.88 97,471.88 -
12/01/2024 2,055,000.00 4.625% 97,471.88 2,152,471.88 2,249,943.76
6/01/2025 - - 49,950,00 49,950.00 -
12101/2025 2,160,000.00 4.625% 49,950.00 2,209,950.00 2,259,900.00
Total 31,725,000.00 - 18,148,279.90 49,873,279.90 -
Ferrand Jordan & Company File = Hutchinson. sf-03$31775m. mar- SINGLE PURPOSE
Public Finance 211112003 12:15 PM