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6.1 ERMUSR 09-13-2005
I)IP Elk River Municipal Utilities 13069 Orono Parkway phone: 763.441.2020 Elk River, MN 55330 Fax.763 4418099 ' September 7, 2005 To: Elk River Municipal Utilities Commission ' From: Bryan Adams Subject: Proposed Electric Bond Issue As we have discussed previously, the Elk River Municipal Utilities will need to issue electric bonds to fund some of our capital projects in 2006. Preliminary analysis indicates a bond size of$3.5 to $4.0 million. We have two options to satisfy our bonding needs. ' They are using conventional electric revenue bonds or MMUA's Midwest Consortium of Municipal Utilities (MCMU) bond pool. We will require bond funds by early l s` quarter 2006. • Anthony Hedlof of the Midwest Consortium of Municipal Utilities will make a presentation of our meeting addressing what MCMU can offer. Theoretically, they should ' have fewer costs due to: a) Smaller issuing costs due to larger bond size ($50,000,000). ' b) Less interest costs due to MCMU utilizing variable rates, although we can lock our rates in at a fixed rate. c) We may not be requested to carry 10% reserve bond coverage. This will be verified. Attached is the following information for your review. ' 1) Conventional bonding alternative summary from Ehler's & Associates. Total principal and interest cost projected at $4,982,499.17 ' 2) MCMU bonding pool alternative. Total principal and interest cost projected at $4,661,954. 3) List of current participants in the Midwest Consortium of Municipal Utilities (MCMU). City of Elk River, MN $3,570,000 Electric Revenue Bonds, Series 2005A ' Sources & Uses Dated 10/01/2005 I Delivered 10/01/2005 ' Sources Of Funds Par Amount of Bonds 53,570,000 00 Cash For Debt Service Reserve 335,000.00 Total Sources _ $3,905,000,00 Uses Of Funds Total Underwriter's Discount (1.250%) 44,625.00 Costs of Issuance 24,000.00 Deposit to Debt Service Reserve Fund(DSRF) - 334,440 00 Depositto Project Construction Fund 3,500,000 00 Rounding Amount 1,935.00 Total Uses $3,905,000.00 S 1 2005 utility issue 3 5M t I SINGLE PURPOSE 1 8/23/2005 I 5 22 PM Ehlers & Associates Celebrating Our 50th Year Page 1 I IN) City of Elk River, MN $3,570,000 Electric Revenue Bonds, Series 2005A I IDebt Service Schedule Part 1 of 2 Date Principal Coupon Interest Total P+I Fiscal Total 10/01/2005 - - - - - I 08/01/2006 123,435 42 123,435 42 - 02/01/2007 135,000.00 3.350% 74,061 25 209,061.25 332,496.67 08/01/2007 71,800.00 71,800.00 - 02/01/2008 19.0,000.0.0 3.450% 71,800 00 2.61,800 00 33.3,60.0.00 08/01/2008 68,522 50 68,522 50 - I 02/01/2009 195,000.00 3.600% 68,522 50 263,522.50 332,045.00 08/01/2009 65,012 50 65,012 50 - 02/01/2010 200,000 00 3 750% 65,012 50 265,012.50 330,025.00 I 08/01/2010 - 61,262 50 61,262.50 - ------------ ------------------------------------------------------------------------------- 02/01/2011 210,000.00 3.850% 61,262 50 271,262 50 332,525.00 08/01/201 I 57,220,00 57,220.00 - 02/01/2012 220,000 00 3 950% 57,220 00 277,220.00 334,440.00 08/01/2012 52,875 00 52,875.00 - 02/01/2013 225,000 00 4 100% 52,875 00 277,875 00 330,750.00 08/01/2013 - - 48,262 50 48,262 50 - 02/01/2014 235,000.00 4 200% 48,262.50 283,262 50 331,525 00 08/01/2014 43,327 50 43,327 50 - • 02/01/2015 245,000.00 4 250% 43,327 50 288,327.50 331,655 00 08/01/2015 - - 38,121.25 38,121.25 - 02/01/2016 255,000 00 4 350% 38,121 25 293,121 25 331,242.50 I 08/01/2016 32,575 00 32,575 00 02/01/2017 265,000.00 4400% 32,575.00 297,575.00 - 330,150 08/01/2017 - - 26,745 00 26,745 00 - 02/01/2018 280,000 00 4 450% 26,745 00 306,745.00 333,490.00 I 08/01/2018 20,515 00 20,815.00 - 02/01/2019 290,000 00 4 450% 20,515.00 310,515.00 331,030.00 08/01/2019 - - 14,062 50 14,062.50 - 02/01/2020 305,000.00 4.500% 14,062.50 319,062.50 333,125.00 08/01/2020 - 7,200 00 7,200.00 - 02/01/2021 320,000.00 4.500% 7,200.00 327,200.00 334,400.00 Total $3,570,000.00 - $1,412,499.17 $4,982,499.17 - I I I 2005 utility issue 3 5M t I SINGLE PURPOSE I 8/23/2005 I 5 22 PM Ehlers & Associates Celebrating Our 50th Year Page 2 City of Elk River, MN $3,570,000 Electric Revenue Bonds, Series 2005A ' Debt Service Schedule Part 2 of 2 ' Yield Statistics Bond Year Dollars $32,785 00 Average Life _ 9 183 Years ' Average Coupon - 4.3083702% Net Interest Cost(NIC) _ 4.4444843% True Interest Cost(TIC)_ 4.4603557% Bond Yield for Arbitrage Purposes 4 2876289% All Inclusive Cost(AIC) 4.5545269% IRS Form 8038 ' Net Interest Cost 4 3083702% - - - ----------- --------- - --------- - --- Weighted Average Maturity 9.183 Years MP 1 2005 utility issue 3 5M t I SINGLE PURPOSE I 8/23/2005 I 5 22 PM Ehlers & Associates Celebrating Our 50th Year Page 3 Midwest Consortium of Municipal Utilities-Series 2005-8 Elk River-Substation&Feeders Variable Rate FnancIng Projection Financing Term(yrs) 15 r Pmts per Yr 12 2 Pnn per Yr ;IIIFinancing Size $3,550,000 UO LOC.-Liquidity Fee 0 600% Prop Share COI"' Prop Share Exp Fund ($55 377 78) Administrative Fee U 150% $U 00 Remarketing Fee (7 100% Legal Fees incl $3,504 622 Project Prop Share Yrly Trustee Fee(mit) 0 000% 847 yrs Wtd Avg Mal Net Fina ncm•Proceeds _ $3 504,620 22 +lyr Cap Int+Fees L Prop Share Yrly Rating Fee(end) 0 008% 3.637% All-in Yield I 00 Pmt Variable Rale Finanr inn Prc ecaon Principal I Investment I Total Total Annual 3 837 l_Date 9 Principal Rate' Interes�AcUAct� Balance Total Fees-J Earnings(est)"' Debt Service l Debt Service Present Value 15yrA,gBMA•lhp EYE Mo 9 911/2005 <-Fina r-e7q Clori'rq Dal, 53 560.000 DO (3,504 622 22) 1011/2005 1 5 00 2 945%I 8 617 15 3,560,000 00 2 597 76 (8,843 17) 2,371 74 2,364 18 11/12005 2 0 00 2 945% 8,904 39 3,560,000 00 2,657 02 (8,376 45) 3,164 96 3,164 69 121/2005 3 0 00 2 945% 8 617 15 3.560,000 00 2.597 76 (7 369 31) 3,645.60 3 808 94 1/1/2006 4 0(]0 2945% 6.960 39 3 560,000 00 2,657 02 (6,853 46) 4,707 95 4,648 21 2/12006 5 0 00 2 945% 8,904 39 3,560 000 00 2,657 02 (6,091 96) 5,469 45 5 382 83 3/1/2006 6 90,000 00 2 945% 8,042 67 3 470,000 00 2,479 25 (4,814 61) 95,707.31 93 891 36 I 4/1/2006 7 0 00 2 945% 8 679 28 3,470,000 00 2 591 83 (4,568 97) 6,702 14 6,554 01 5/1/2006 8 0 00 2 945% 6.399 30 3,470,000 00 2.534 07 (3,684 65) 7,24E 72 7,065 92 6!12006 9 0 O0 2945% B 679 28 3,470,000 W 2.591 83 (3,045 98) 6,225/3 7.992 15 7/12006 10 0 00 2 945% 8 399 30 3,470,000 00 2,534 07 (2.210 79) 6,722 58 8,448 49 8/12006 11 0 00 2 945% 8 679 28 3,470,000 00 2.591 83 (1 522 99) 9,748 12 9 411 71 I 9!12006 12 90 000 00 2 945% 8,679 28 3,380,000 00 2.591 63 (761-50) 100,509 61 256,443 31 96,737 68 10/1/2006 13 0 OU 2945% 8,181 45 3,380,000 00 2.470 38 • 10,651 53 10,218 77 11/1/2006 14 0(7U 2945% 6,454 17 3,380 000 00 2 526 64 10,960.61 10,500 80 12/1/2006 15 0 00 2 945% 8,181 45 3.380.000 00 2,470 38 - 10,651.63 10,153 73 1/1/2007 16 0 00 2 945% 8.454 17 3,380.000 00 2526 64 - 10,980 61 10,433 96 2/1/2007 17 0 UO 2945% 8,454 17 3.380 000 00 2,526 64 - 10,960 61 10.400 70 3/1/2007 18 50,000 00 2945% 7,636 02 3 290,000 00 2,357 85 99,993 67 94,409 36 4/1/2007 19 0 00 2945% 8.229 06 3,290,000 00 2,461 45 10,690 51 10,061 29 5/12007 20 0 00 2 945% 7,963 60 3,290000 00 2,406 68 - 10,370 26 9728 79 6/1/2007 21 0 00 2 945% 8,229 06 3 290 000 00 2.461 45 - 10,690 51 9 997 25 7/12007 22 0 00 2 945% 7,963 60 3,290,000 00 2 406 68 - 10,370.26 9,666 87 I8/12007 23 UCO 2945% 8.229 06 3,290,000 W 2 467 45 - 10,690 51 9,933 61 5/12007 24 95 000 00 2945% 8.229 06 3,195,000 00 2 461.45 105,690.51 312.742 56 97,894 49 10/1/2007 25 0 00 2945% 7,733 65 3,195 000 00 2 339 45 10,073.10 9 300 34 11/1/2007 26 0 00 2 945% 7 991 44 3,195,000 00 2,392 64 - 10,384 08 9 556 90 12/1/2007 27 0 00 2 945% 7,733 65 3,195,000 00 2339 45 - 10,073 10 9.241 14 I 1/1/2008 28 O 0(7 2945% 7,991 44 3.195 000 W 2,392 64 - 10,384 08 9 496 07 212006 29 0 00 2 945% 7 991 44 3,195,000 00 2,392 64 10,364 06 9 465 80 3112(708 30 95.000 00 2945% 7,455 44 3,100,000 00 2,282 O6 104,73750 95,171 08 4/1/2008 31 0 00 2 945% 7 732 64 3.100 000 00 2,319 44 - 10,052.08 9,104 84 5/1/2008 32 0 00 2 945% 7,483 20 3,100,000 00 2,267 98 - 9,751 18 8,804 14 IP 6/1/2008 33 0 00 2945% 7.732 64 3.100,000 00 2 319 44 10,052 06 9.046 88 7/12008 34 0 00 2945% 7 483 20 3 100 000 00 2.267 98 9,751 15 8,748 10 8112008 35 0 UO 2945% 7,732 64 3.100.000 00 2.319 44 10,052 W 8 989 30 9/1/2008 36 95 000 00 2 945% 7 732 64 3 005,000 00 2,319 44 - 105,052 08 310.746 62 93.645 74 10/1/2008 37 0 00 2 945% 7 253 87 3,005,000 00 2,200 89 - 9,454.76 8 401 32 11/1/2008 38 0 00 2 945% 7,495 67 3,005 000 00 2,250 78 - 9,746 45 8.632 90 I12/1/2008 39 0 00 2 945% 7,253 87 3,005.000 00 2.200 89 9,454.76 8,347 64 1/1/2009 40 0 00 2 945% 7 495 67 3005,000 00 2,250 78 9,746.45 8.577 95 2/1/2009 41 0 00 2945% 7,495 67 3,005.000 00 2,250 78 9,746 45 8,550 61 3/1/2009 42 100 000 00 2 945% 6,788 83 2,905,000 00 2,104 95 - 108,693 78 95 228 52 4/12009 43 0 00 2 945% 7.266 08 2,905,000 00 2182 57 - 9,44E 65 8,236 58 I 5/1/2009 44 0 00 2 945% 7.031 69 2,905,000 00 2.134 22 - 9,165.91 7,964 64 6112009 45 0 00 2945% 7,266 OB 2,905,000 00 2,162 57 9,44E 65 8,184 16 7/1/2009 46 C 00 2945% 7,031 69 2,905,000 00 2 134 22 9,165 91 7,913 95 8/12009 47 0 00 2 945% 7,266 08 2,905 000 00 2,182 57 - 9,448 65 8 132 07 9/1/2009 48 100 000 00 2 945% 7 266 08 2,805 000 00 2 182 57 109,446.65 313.169 07 93,897 69 10/1/2009 49 COU 2945% 6,789 64 2,805.000 00 2.063 45 - 6,653 09 7,570 99 11/1/2009 50 O UO 2945% 7,015 96 2.605.000 00 2,110 14 9,126 10 7,779 59 12/1/2009 51 0 00 2945% 6,789 64 2 805.000 00 2.063 45 6,653 09 7,522 80 1/1/2010 52 0 00 2 945% 7,015 96 2,805,000 00 2.110 14 - 9,126 10 7 730 07 2/1/2010 53 0 00 2 945% 7,015 96 2.805,000 00 2,110 14 - 9,126 10 7,705 43 I 3/1/2010 54 1(15 000 00 2945% 6,336 99 2.700,000 00 1 970 07 - 113,307.06 95 363 47 4/1/2010 55 C 00 2 945% 6.753 33 2 700,000 00 2,034 08 6,767 41 7,372 24 5/1/2010 56 0 00 2945% 6 535 48 2,700.000 00 1.989 14 6,524 62 7,128 97 6/12010 57 0 00 2 945% 6,753 33 2,700.000 00 2,034 08 - 6,787 41 7,325 31 7/1/2010 58 0 00 2 945% 6,535 48 2,700 000 00 1 989 14 - 8,524 62 7,083 60 8/12010 59 0 00 2 945% 6,753 33 2 700,000 00 2,034 08 6,787 41 7 278 69 I 9/12010 60 105,000 00 2945% 6,753 33 2 595 000 00 2,034 08 113,787,41 315 590 42 93,950 66 10/1/2010 61 0 00 2945% 6.281 32 2,595.000 W 1.914 83 6,79615 6,745 73 11/1/2010 62 0 00 2945% 6 490 70 2,595.000 00 1,958 03 6,14E 73 6,931 45 12/1/2010 63 0 00 2 945% 6.281 32 2,595,000 00 1 914 83 - 6,196 15 6.702 79 1/12011 64 0 00 2 945% 6 490 70 2 595.000 00 1,958 03 . 6,446 73 6,887 33 I 272011 65 0 00 2945% 6,490 70 2 595 000 00 1,958 03 - 6,448 73 6,865 37 3/1/2011 66 105,000 00 2945% 5 862 57 2,490 000 00 1,828 44 712,691 01 91,279 97 4/1/2011 67 0 OU 2945% 6.228 07 2,490,000 00 1,881 97 6,17004 6,548 21 II NOTE Interest computed et stemmed rats shown,actual rata well very over fao Lawranson Sernces Inc Page I nN 1112005 Model MMUA 058 F.nanang Eu River 53560K/5yr ver els I Midwest Consortium of Municipal Ut titles-Series 2005-8 ( I Elk River-Substation&Feeders Variable Rate Financing Projection Financing Term(yrs) 15 Pmts per Yr 12 2 Pen per Yr Financing Size 53,560,000 00 LOC+Liqurdny Fee 0 600% 11111111 Prop Share COI"' (£55,377 78) Administrative Fee 0 150% Prop Share Exp Fund $0 00 Remarketing Fee 0 100% Legal Fees incl 53,504,622 Project Prop Share Yrly Trustee Fee(mit) 0 006% 8 47 yrs Wtd Avg Mal Net Finance •Proceeds $3,504,622 22 +lyr Cap Int+Fees Prop Share Yrly Rating Fee(inn) 0 008% 3 837% All-in Yield So 00 Pint Variable Rate Financing Projection Principal I Investment I Total Total Annual 3 837% Date # Principal I Rate' 1 Interest(Act/Act)1Balance Total Fees" Earnings(est)" Debt Service Debt Service Present Value 16yr aero i3MA++rip FYE Mo 9 5/12011 68 0 00 2 945% 6,027 16 2,490,000 00 1.840 52 - 7,867.68 6,332 27 6/12011 69 0 00 2 945% 6,228 07 2,490,000 00 1,881 97 - 8,110.04 6.506 53 I 7/12011 70 0 00 2 945% 6,027 16 2,490,000 00 1.840 52 - 7,867.68 6,291 97 8/1/2011 71 0 00 2 945% 6,228 07 2,490,000 00 1.881 97 8,110.04 118,110.046,465 12 9/1/2011 72 110,000 00 2945% 6,228 07 2,380,000 00 1,861 97 312,605.02 93,854 17 10/12011 73 0 00 2 945% 5,760 90 2,380,000 00 1.762 67 - 7,523.57 5,959 42 11/1/2011 74 0 00 2 945% 5,952 93 2,380,000 00 1.802 29 - 7,755.22 6,123 33 I 12/1/2011 75 0 00 2 945% 5,760 90 2,380,000 00 1,762 67 - 7,523.57 5,921 49 1/1/2012 76 0 00 2945% 5.952.93 2.380,000 00 7,802 29 7,755.22 6,064 36 2/1/2012 77 0 00 2945% 5.952.93 2,380,000 00 1,602 29 7,755.22 117,273.586,064 96 3112012 78 110,000 00 2945% 5,553 66 2,270,000 00 1,719 92 91,421 32 4/1/2012 79 0 00 2 945% 5,662 29 2,270,000 00 1,719 42 - 7,381 71 5,736 11 I 5/1/2012 80 0 00 2 945% 5,479 63 2,270,000 00 1,681 73 - 7,161.36 5,547 15 6/1/2012 81 0 00 2945% 5,662.29 2.270,000 00 1,719 42 7,381.71 5,699 60 7/1/2012 82 0 00 2945% 5,479 63 2,270,000 00 1,681 73 7,161.36 5,511 84 8/12012 83 0 00 2945% 5,662 29 2,270,000 00 1.719 42 7,381.71 5.663 32 9/1/2012 84 115,000 00 2 945% 5,662 29 2,155,000 00 1.719 42 - 122,361.71 314,435 94 93,593.22 10/1/2012 85 0 00 2 945% 5,202 03 2,155,000 00 1,600 50 - 6,802.53 5,185.75 I 11/1/2012 86 0 00 2945% 5,375 43 2,155,000 00 1,636 28 - 7,011.71 5.328 18 1211/2012 87 0 00 2945% 5.202 03 2,155,000 00 1,600 50 6,602.53 5,152 74 1/1/2013 88 0 00 2945% 5.375 43 2,155,000 00 1,636 28 7,011 71 5,294 26 2/1/2013 89 0 00 2 945% 5,375 43 2,155.000 00 1,636 28 - 7,011 71 5,277 39 3/1/2013 90 115 000 00 2 945% 4.868.53 2.040,000 00 1,531 70 - 121,400.23 91,081.04 4/1/2013 91 0 00 2945% 5,102 52 2,040,000 00 1,556 01 - 6,658.53 4,979.67 5/1/2013 92 U 00 2945% 4,937 92 2,040.000 00 1,522 06 6,459.98 4,815 78 6712013 93 0 00 2945% 5,102 52 2,040.000 00 1,556 01 6,658.53 4,947 97 7/1/2013 94 0 00 2 945% 4,937 92 2,040,000 00 1,522 06 - 6,459.98 4,785 13 8/1/2013 95 0 00 2 945% 5,102.52 2.040,000 00 1,556 01 - 6,658.53 4,916 48 I 9/12013 96 120,000 00 2 945% 5,102 52 1,920.000 00 1,556 01 - 126,658.53 315.594 50 93.223 08 10/1/2013 97 0 00 2945% 4,647 45 1,920,000 00 1,437 13 6,084.58 4,464 09 11/1/2013 98 0 00 2945% 4,802.37 7,920.000 00 1,469 09 6,271.46 4,586 53 12/1/2013 99 0 00 2.945% 4,647 45 1,920,000.00 1,437 13 - 6,084.58 4,435 68 1/1/2014 100 0 00 2 945% 4,802 37 1,920,000 00 1,469 09 - 6,271.46 4,557 34 M 2/12074 101 0 00 2945% 3/1/20144,802 37 1.920.000 00 1.469 09 6,271.46 4.542 81 102 120 000 00 2945% 4,337 62 1,800,000 00 1,373 21 125,710.83 90,769 99 4/12014 103 0 00 2945% 4,502 22 1,800,000 00 1.382 17 5,884.39 4.235 30 5/1/2014 104 0 00 2945% 4,356 99 1,800,000 00 1,352 21 5,708.20 4,096 11 6/1/2014 105 0 00 2 945% 4,502 22 1,800,000 00 1,382 17 - 5,884 39 4,208 34 7/1/2014 106 0 00 2 945% 4,356 99 1,800,000 00 1,352 21 - 5,709 20 4,070 04 2014 107 000 2.945% 4,50222 1,800,000 00 1,38217 - 5,88439 4,18156 9/1/2014 108 125,000 00 2945% 4,502 22 1,675,000 00 1,382 17 730,684.39 376,650 33 92,71244 10/1/2014 109 0 00 2945% 4.054 42 1,675,000 00 1,263 75 5,318.17 3,755 14 11/1/2014 110 0 00 2 945% 4,189 57 1,675,000 00 1,29163 - 5,481.20 3,857 91 12/1/2014 111 0 00 2 945% 4,054 42 1,675,000 00 1,263 75 - 5,318 17 3,731 24 1/12015 112 0 00 2 945% 4,189 57 1,675,000 00 1,291 63 - 5,481.20 3,633 36 2/1/2015 113 0 00 2945% 4,189 57 1,675,000 00 1,291 63 5,461.20 129,992.113,821 14 3112015 114 725,000 00 2945% 3,784 12 1,550,000 00 1,207 99 90,333 26 4/1/2015 115 0 00 2 945% 3,876 91 1,550,000 00 1,201 09 - 5,078.00 3,517 52 5/1/2015 116 0 00 2 945% 3,751 85 1,550,000 00 1,175 29 - 4,927.14 3,402 14 6/1/2015 117 0 00 2945% 3,876 91 7,550,1700 00 1,201 09 - 5,076 00 3,495 13 7/1/2015 118 0 00 2945% 3,751 85 1.550,000 00 1,175 29 4,927.14 3,380 49 8/1/2015 119 0 00 2945% 3,876 91 1.550,000 00 1,201 09 5,078 00 135,076.003,472 89 9/1/2015 120 130,000 00 2.945% 3,876 91 1,420.000 00 1,201 09 317,238 33 92,086 48 10/1/2015 121 0 00 2.945% 3,437 18 1,420,000 00 1,083 28 - 4,520.46 3,071 90 11/1/2015 122 0 00 2 945% 3,551 75 1.420,000 00 1,106 92 - 4,658 67 3.155 73 I 12/1/2015 123 0 00 2945% 3,437 18 1,420.000 00 1,083 28 - 4,520.46 3.052 35 1/1/2016 124 0 00 2945% 3,551 75 1,420,000 00 1,106 92 4,658.67 3.135 65 2/1/2016 125 0 00 2945% 3,551 75 1,420,000 00 1,106 92 4,658.67 3.725 65 3/1/2016 126 130,000 00 2 945% 3.313 53 1,290,000 00 1,057 77 - 134,371.30 89.866 61 4/1/2016 127 0 00 2 945% 3.217 77 1,290,000 00 1,010 94 - 4,228 71 2.819 12 I 5/72016 128 0 00 2945% 3,173 98 1,290,000 00 989 52 - 4,103.50 2.726 92 6/1/2016 129 0 00 2945% 3,217 77 1.290,000 00 1,010 94 4,226 77 2.801 17 7/1/2016 130 0 00 2945% 3,173 98 1,290,000 00 989 52 4,103.50 2,709 57 8/1/2016 131 0 00 2 945% 3,217 77 1.290,000 00 1,010 94 - 4,228 71 2,783 34 9/1/2016 132 135,000 00 2 945% 3,217 77 1,155.000 00 1,010 94 - 139,228 71 317,510 07 91,348 45 I 10/1/2016 133 0 00 2945% 2,788 09 1,155,000 00 894 17 - 3,682.26 2,408 24 11/1/2016 134 0 00 2.945% 2.861.03 1,155,000.00 913 34 3,794 37 2,473 65 12/1/2016 135 0 00 2945% 2.788 09 1,155,000 00 894 17 3,682.26 2,392 91 MOTE.Interest computed at assumed rate shown,ecte i rata will vary over term Lawrenson Semcec Inc Page 2 8/11/2005 Model MMUA'058 Fnanarg Ell,River 83560K 15yr ver xis I mwwrat t.u„auruunr tri,wu„,t.iyai vunuuo•ua,,.o cvuu o 1 I Elk River-Substation 8 Feeders Variable Rate Financing Projection Financing Term(yrs) 15 Pmts per Yr- 12 2 Prin per Yr Financing Size $3,560,000 00 LOC+Liquidrty Fee 0 600% 111111 Prop Share COI^' ($55,377 78) Administrative Fee 0 150% Prop Share Exp Fund $0 00 Remarketing Fee 0 100% Legal Fees incl $3,504,622 Project Prop Share Yrly Trustee Fee(snit) 0 006% 8 47 yrs Wtd Avg Mat Net Financing Proceeds $3.504,622 22 +lyr Cap Int+Fees Prop Share Yrly Rating Fee(inn) 0 008% 3 837•/. All-in Yield $0 00 Pmt Variable Rate Financing Projection Principal Total Annual 3.837% I Investment � Total T Date # Principal I Rate' I Interest(AcVActil Balance Total Fees" Earnings(est)"' Debt Service [Debt Service Present Value lOyr Avg BMAilbp FYEMo 9 1/1/2017 136 0 00 2 945% 2,881 03 1.155,000 00 913.34 - 3,794.37 2,457 91 2/12017 137 0 00 2 945% 2,881 03 1,155,000 00 913.34 - 3,794.37 2,450 07 3/1/2017 138 135,000 00 2 945% 2,609 35 1.020.000 00 857 30 - 138,466.65 89,124 71 4/1/2017 139 0 00 2 945% 2,551 26 1.020,000 00 817 18 3,368.44 2,161 20 5/1/2017 140 0 00 2945% 2,468.96 1,020,000 00 800 20 3,269.16 2.090 82 6/1/2017 141 0 00 2945% 2.551 26 1,020,000 00 817 18 3,368.44 2,147 45 7/1/2017 142 0 00 2 945% 2,468 96 1,020,000 00 80020 - 3,269.16 2,077.51 8/1/2017 143 0 00 2 945% 2,551 26 1,020,000 00 817 18 - 3,368.44 2.133 78 I 9/12017 144 140 000 00 2 945% 2,551 26 880,000 00 817 16 - 143,368.44 317,226 36 90.528 87 10/1/2017 145 0 00 2945% 2,130 OB 880,000.00 701.12 2,831.20 1,782-04 11/1/2017 146 0 00 2 945% 2,201 08 880,000.00 715 77 2,916.85 1,830 10 12/1/2017 147 0 00 2 945% 2,130 08 880,000 00 701 12 - 2,831.20 1,770 70 1/1/2018 148 0 00 2 945% 2,201.08 880,000 00 715 77 - 2,916 85 1,818 45 I 2/12018 149 0 00 2 945% 2,201 08 880,00000 715 77 2,916.85 1,812 65 3/1/2018 150 140,000 00 2945% 1,988 08 740,00000 671 83 142,659.91 88.372 27 4/1/2018 151 0 00 2945% 1,850 91 740.000 00 614 37 2,465 28 1,522 28 5/1/2018 152 0 00 2 945% 1,791.21 740,000 00 602 05 - 2,393 26 1,473 10 6/12018 153 0 00 2 945% 1,850.91 740,000 00 614 37 - 2,465.28 1,512 59 I 7/12018 154 0 00 2945% 1,791.21 740,000 00 602 05 2,383.26 1,463 72 8/1/2018 155 0 00 2945% 1,850 91 740,000 00 614 37 2,465.28 147,465.281,502 96 9/1/2018 156 145 000 00 2945% 1,850.91 595.000 00 614 37 316,720 50 89,615 77 10/1/2018 157 0 00 2 945% 1,440.23 595,000 00 499 43 - 1,939.66 1,174 99 11/1/2018 158 0 00 2 945% 1,488 23 595,000 00 509 34 - 1,997.57 1.206 21 12/1/2018 159 0 00 2 945% 1,440 23 595,000 00 499 43 - 1,939.66 1.167.51 1112019 160 0 00 2945% 1,488 23 595,000.00 509 34 1,997.57 1.198 53 2)12019 161 0 00 2.945% 1,488 23 595,000 00 509 34 1,997.57 146,821831,194 71 3/1/2019 162 145,000 00 2945% 1,344 21 450,000 00 479 62 87.532 99 4/1/2019 163 0 00 2 945% 1,125 55 450,000 00 404 31 - 1,529.86 909.16 5/1/2019 164 0 00 2 945% 1,089 25 450,000 00 396 81 - 1,436.06 880 32 I 6112019 165 0 00 2945% 1,125 55 450,000 00 404 31 - 1,529.86 903 37 7/1/2019 166 0 00 2945% 1,089 25 450,000.00 396 81 1,486.06 874 71 8/1/2019 167 0 00 2945% 1,125 55 450,000 00 404 31 1,529.86 897 62 9/1/2019 168 150,000 00 2 945% 1,125 55 300,000 00 404 31 - 151,529.86 315,787 42 88,624 54 10/1/2019 169 0 00 2 945% 726 16 300,000 00 290 66 - 1,018 82 592 81 • 11/7/2019 170 0 00 2945% 750 37 300,000 00 295 65 - 1,046.02 607 89 12/1/2019 171 0 00 2945% 726 16 300,000.00 290.66 1,016.82 589 03 1/1/2020 172 0 00 2.945% 750 37 300,00000 295 65 1,046.02 604 02 2/1/2020 173 0 00 2 945% 750 37 300,000 00 295 65 - 1,046.02 602 09 3/1/2020 174 150,000 00 2 945% 700 04 150,000 00 285 27 - 150,985.31 86,630 54 t 4/12020 175 0 00 2945% 374 16 150.00000 186 79 - 560.95 320.83 5/1/2020 176 0 00 2 945% 362 09 150.000 00 184 30 546.39 311 51 6/12020 177 0 00 2945% 374 16 150,00000 186 79 560.95 318 79 7/1/2020 178 0 00 2 945% 362 09 150,000 00 184 30 - 546.39 309.52 8/1/2020 179 0 00 2 945% 374 16 150,000 00 186 79 - 560.95 316.76 9/1/2020 180 150,00000 2945% 374.16 - 18679 - 150,560.95 309,49359 84,747.96 3.560.000 00 887,536 99 272,560 89 (58,143 84) 4,661,954.04 4,661,954 04 Current Bond 15yr Avg BMA.1bp '-Fees include credit,liquidly,admin,remarketing,trustee,rating(last 3 at max proportion-mel be less) 2 620% 2 945% •••-Assumes even monthly draws over I year,10%reserve,investment rate or 3 07% I ""Assumes COI 5700,000•Creeping NABS or SO 00(poraon refundable)el Bond Sue of 550,000,000 I I I if° NOTE IMsnst computed at assumed rata shown,actual rate will vary over term. Lawrensor)Services Inc Page 3 8111/2005 Model MMUA'OSB Financing Elk River 535601(15yr oar xis I Midwest Consortium of Municipal Utilities Membership Roster le IClass A Members Alexandria I Blue Earth Delano Elk River I Hibbing Keewatin New Ulm I Princeton Rochester Wells IClass B Members ICentral Minnesota Municipal Power Agency I • Participants in the first issue for $16,690,000, January of 2005 Alexandria I Central Minnesota Municipal Power Agency Princeton Rochester IWells IAnticipated 1st group of$50,000,000 draw-down issue, September 2005 City of Delano I Delano Municipal Utilities Detroit Lakes IHibbing Sauk Centre Winton S . • Elk River Municipal Utilities January 1,2006 Employer and Employee Contributions 2005 Current 2006 Renewal CMM$15 Copay CMM$300 Ded Same%Contribution Single Family Single Family Single Family Single Family Total Employee Count 5 25 5 25 5 25 5 25 Total Premium Cost $258.00 $973.00 $311.00 $1,173.50 $293 00 $1,105.50 $276.00 $1,041.00 Annual Cost 307,380 370,710 349,230 328,860 Employer Contribution $198.66 $749.21 $239.47 $903.60 $225 61 $851.24 $212.52 $801.57 %of Premium Paid by Employer 77% 77% 77% 77% 77% 77% 77% 77% Employee Contribution $59.34 $223 79 $71.53 $269.91 $67.39 $254.27 $63.48 $239 43 Annual Paid by Employee $70,697 $85,263 $80,323 $75,638 Increase Paid by Employee 21% 14% 7% Annual Premium Paid by Employer $236,683 $285,447 $268,907 $253,222 %Increase Paid by Employer 21% 14% 7% 2005 Current 2006 Renewal CMM$15 Copay CMM$300 Ded Same ER Contribution Single Family Single Family Single Family Single Family Total Employee Count 5 25 5 25 5 25 5 25 Total Premium Cost $258 00 $973 00 $311 00 $1,173 50 $293 00 $1,105.50 $276 00 $1,041.00 Annual Cost 307,380 370,710 349,230 328,860 Employer Contribution $198.66 $749 21 $198.66 $749.21 $198.66 $749.21 $198.66 $749.21 %of Premium Paid by Employer 77% 77% 64% 64% 68% 68% 72% 72% Employee Contribution $59.34 $223.79 $112.34 $424.29 $94 34 $356.29 $77.34 $291 79 Annual Paid by Employee $70,697 $134,027 $112,547 $92,177 Increase Paid by Employee 90% 59% 30% Annual Premium Paid by Employer $236,683 $236,683 $236,683 $236,683 %Increase Paid by Employer 0% 0% 0% David Martin Agency,Inc C o n t r i b u t t o n M o d e l-06 9/12/2005