Each of the MVTA member municipalities (Apple Valley, Burnsville, Eagan, Prior Lake, Rosemount, Savage, and Shakopee, Minnesota and Scott County) is being asked to approve the attached resolution authorizing the issuance of the refunding bond. Dakota County has submitted its notice of withdrawal from the MVTA and will not be required to approve the issuance of the refunding bond.

The Minnesota Valley Transit Authority (MVTA) is proposing to refinance its Gross Revenue Bonds, Series 2013 (Minnesota Valley Transit Authority Project) (the “Series 2013 Bonds”), which were originally issued to finance an expansion to the Eagan Bus Garage operated by the MVTA. The issuance of the refunding bond was approved by the MVTA Board and the MVTA Bond Board on July 28, 2021, subject to the approval of all of the member municipalities.

Pursuant to an analysis performed by Baker Tilly, the refinancing will accomplish the following:

·         Refunding will provide present value savings of $257,140

·         Debt service reserve fund reduction of $349,943

·         Annual reduction of debt service of $166,500 (2022-2028) and total reduction of debt service of $1,165,138*

·         Callable on any payment date (each June 1 and December 1) without penalty

·         Interest rate of 1.52%

·         Private placement with continuing disclosure for the MVTA limited to providing the purchaser with annual financial reports and debt service coverage calculations

*The reduction in debt service includes the use of $500,000 of cash on hand to pay down the Series 2013 Bonds.