--- ## author: Kara Meverden date: D:20260826152945-05'00' --- August 26, 2026 ## SALE DAY REPORT FOR: ## Independent School District No. 727 ## (Big Lake), Minnesota ## $2,545,000 General Obligation Refunding Bonds, Series 2026A Prepared by: ## Ehlers ## 3001 Broadway Street, Suite 320 ## Minneapolis, MN 55413 ## Matthew Hammer, ## Senior Municipal Advisor ## Jodie Zesbaugh, ## Senior Municipal Advisor ## BUILDING COMMUNITIES. IT’S WHAT WE DO. Sale Day Report for Independent School District No. 727 (Big Lake), Minnesota 1 ## Competitive Sale Results PURPOSE: The issue finances a current refunding of the remaining maturities of ## the $4,000,000 General Obligation School Building Bonds, Series ## 2016B. ## RATING: MN Credit Enhancement Rating: Moody's Ratings "Aa1" ## Underlying Rating: Moody's Ratings "Aa3" ## NUMBER OF BIDS: 7 LOW BIDDER: ZIONS BANK division of ZB, N.A., Salt Lake City, Utah ## COMPARISON FROM LOWEST TO HIGHEST BID: (TIC as bid) ## LOW BID:* 2.8245% ## HIGH BID: 3.1901% ## Summary of Sale Results: ## Principal Amount*: $2,545,000 ## Underwriter’s Discount: $6,351 ## Reoffering Premium: $72,048 ## True Interest Cost*: 2.8248% Costs of Issuance: $69,425 Yield: 2.550%-2.700% ## Total Net Principal and Interest: $2,699,865 * The winning bidder submitted a bid with a premium price (a price greater than the par amount of the bonds) that was larger than the Pre-Sale Report estimates. The premium amount will be used to partially finance the prepayment of the 2016B Bonds, so the principal amount of the bonds was decreased from $2,570,000 (in the Pre-Sale Report and the Preliminary Official Statement) to $2,545,000 after receipt of the bids. This caused a slight change in the True Interest Cost. NOTES: The True Interest Cost of 2.82% is lower than the estimate of 3.61% included in the Pre-Sale Report. The net effect of the premium paid by the underwriter, the new interest rates, and district’s use of funds on hand in the debt service fund will reduce future debt service payments by approximately $1,186,000. Sale Day Report for Independent School District No. 727 (Big Lake), Minnesota 2 ## CLOSING DATE: ## REDEMPTION DATE: September 17, 2026 October 22, 2026 ## SCHOOL BOARD ## ACTION: Adopt the resolution awarding the sale of $2,545,000 General Obligation Refunding Bonds, Series 2026A. ## SUPPLEMENTARY ATTACHMENTS ## • Bid Tabulation ## • Updated Sources and Uses of Funds ## • Existing Debt Service Schedule for 2016B Bonds ## • Updated Debt Service Schedule for Refunding Bonds ## • Updated Current Refunding Escrow ## • Updated Debt Service Comparison/Refunding Savings Analysis • Updated Estimated Tax Rates for Capital and Debt Service Levies ## • Rating Report ## • Bond Resolution (Distributed Separately) ## BID TABULATION ## $2,570,000* General Obligation Refunding Bonds, Series 2026A ## Independent School District No. 727 (Big Lake), Minnesota SALE: August 26, 2026 ## AWARD: ZIONS BANK DIVISION OF ZB, N.A. ## MN Credit Enhancement Rating: Moody's Ratings "Aa1" ## Underlying Rating: Moody's Ratings "Aa3" ## Tax Exempt - Bank Qualified ## NAME OF INSTITUTION ## MATURITY (February 1) ## COUPON ## RATE ## REOFFERING ## YIELD ## PRICE ## TRUE ## INTEREST ## RATE ## ZIONS BANK DIVISION OF ZB, N.A. $2,636,536.44 2.8245% ## Salt Lake City, Utah 2027 5.000% 2.550% 2028 5.000% 2.610% 2029 5.000% 2.700% ## TD FINANCIAL PRODUCTS LLC 2.8630% ## New York, New York ## BOK FINANCIAL SECURITIES, ## INC. 2.8754% ## Milwaukee, Wisconsin ## HUNTINGTON SECURITIES, INC 2.8857% ## Chicago, Illinois ## HILLTOPSECURITIES 2.9379% ## Dallas, Texas ## BAIRD 2.9588% ## Milwaukee, Wisconsin ## RAYMOND JAMES & ## ASSOCIATES, INC. 3.1901% ## St. Petersburg, Florida * Subsequent to bid opening the issue size was decreased to $2,545,000. Adjusted Price: $2,610,696.88 Adjusted Net Interest Cost: $89,168.40 Adjusted TIC: 2.8248% ## Sale Day Attachments Page 1 ## Independent School District No. 727 (Big Lake), MN ## $2,545,000 General Obligation School Building Refunding Bonds, Series 2026A Dated: September 17, 2026 - Current Refunding of ## $4,000,000 General Obligation School Building Bonds, Series 2016B ## Sources & Uses Dated 09/17/2026 | Delivered 09/17/2026 ## Sources Of Funds ## Par Amount of Bonds$2,545,000.00 ## Reoffering Premium72,048.15 ## Funds on Hand - Debt Service Funds1,000,000.00 ## Total Sources $3,617,048.15 ## Uses Of Funds ## Total Underwriter's Discount (0.250%)6,351.27 ## Costs of Issuance69,425.00 ## Deposit to Current Refunding Fund3,539,817.82 ## Rounding Amount1,454.06 ## Total Uses $3,617,048.15 2026A FINAL Restructure 2 | SINGLE PURPOSE | 8/26/2026 | 11:17 AM ## Sale Day Attachments Page 2 ## Independent School District No. 727 (Big Lake), MN ## $2,545,000 General Obligation School Building Refunding Bonds, Series 2026A ## Prior Original Debt Service ## DatePrincipalCouponInterestTotal P+IFiscal Total 08/01/2026----- 02/01/2027505,000.002.000%39,218.75544,218.75544,218.75 08/01/2027--34,168.7534,168.75- 02/01/2028500,000.002.000%34,168.75534,168.75568,337.50 08/01/2028--29,168.7529,168.75- 02/01/2029490,000.002.000%29,168.75519,168.75548,337.50 08/01/2029--24,268.7524,268.75- 02/01/2030500,000.002.000%24,268.75524,268.75548,537.50 08/01/2030--19,268.7519,268.75- 02/01/2031505,000.002.250%19,268.75524,268.75543,537.50 08/01/2031--13,587.5013,587.50- 02/01/2032515,000.002.500%13,587.50528,587.50542,175.00 08/01/2032--7,150.007,150.00- 02/01/2033520,000.002.750%7,150.00527,150.00534,300.00 ## Total$3,535,000.00-$294,443.75$3,829,443.75- ## Yield Statistics ## Base date for Avg. Life & Avg. Coupon Calculation9/17/2026 ## Average Life 3.398 Years ## Average Coupon 2.3680442% ## Weighted Average Maturity (Par Basis) 3.398 Years ## Weighted Average Maturity (Original Price Basis) 3.398 Years ## Refunding Bond Information ## Refunding Dated Date 9/17/2026 ## Refunding Delivery Date 9/17/2026 2016B CR File | SINGLE PURPOSE | 8/26/2026 | 11:17 AM ## Sale Day Attachments Page 3 ## Independent School District No. 727 (Big Lake), MN ## $2,545,000 General Obligation School Building Refunding Bonds, Series 2026A Dated: September 17, 2026 - Current Refunding of ## $4,000,000 General Obligation School Building Bonds, Series 2016B ## Debt Service Schedule ## DatePrincipalCouponInterestTotal P+IFiscal Total 09/17/2026----- 02/01/2027495,000.005.000%47,365.28542,365.28542,365.28 08/01/2027--51,250.0051,250.00- 02/01/20281,950,000.005.000%51,250.002,001,250.002,052,500.00 08/01/2028--2,500.002,500.00- 02/01/2029100,000.005.000%2,500.00102,500.00105,000.00 ## Total$2,545,000.00-$154,865.28$2,699,865.28- ## Yield Statistics ## Bond Year Dollars$3,097.31 ## Average Life1.217 Years ## Average Coupon5.0000001% ## Net Interest Cost (NIC)2.8789023% ## True Interest Cost (TIC)2.8248904% ## Bond Yield for Arbitrage Purposes2.6186972% ## All Inclusive Cost (AIC)5.1313430% ## IRS Form 8038 ## Net Interest Cost2.5904813% ## Weighted Average Maturity1.222 Years 2026A FINAL Restructure 2 | SINGLE PURPOSE | 8/26/2026 | 11:17 AM ## Sale Day Attachments Page 4 ## Independent School District No. 727 (Big Lake), MN ## $2,545,000 General Obligation School Building Refunding Bonds, Series 2026A Dated: September 17, 2026 - Current Refunding of ## $4,000,000 General Obligation School Building Bonds, Series 2016B ## Current Refunding Escrow ## DatePrincipalRateInterestReceiptsDisbursementsCash Balance 09/17/2026---0.82-0.82 10/22/20263,539,817.003.780%12,830.623,552,647.623,552,648.44- ## Total$3,539,817.00-$12,830.62$3,552,648.44$3,552,648.44- ## Investment Parameters ## Investment Model [PV, GIC, or Securities]Securities Default investment yield targetUnrestricted ## Cash Deposit0.82 ## Cost of Investments Purchased with Bond Proceeds3,539,817.00 ## Total Cost of Investments$3,539,817.82 Target Cost of Investments at bond yield$3,543,673.61 Actual positive or (negative) arbitrage3,855.79 ## Yield to Receipt3.7563167% ## Yield for Arbitrage Purposes2.6186972% State and Local Government Series (SLGS) rates for 8/26/2026 2026A FINAL Restructure 2 | SINGLE PURPOSE | 8/26/2026 | 11:17 AM ## Sale Day Attachments Page 5 Independen Independent S Independen Independent School District No. 727 (Big Lake), Minnesota 2016B School Building Debt Outstanding as of 10/22/2026 ## Fiscal YearPrincipalInterestTotal P & I 105% ## Levy ## PrincipalInterestTotal P & I 105% ## Levy 2027$505,000$39,219$544,219$571,430$495,000$47,365$542,365$569,484 -$1,946 2028500,00068,338568,338596,7541,950,000102,5002,052,5002,155,125 1,558,371 2029490,00058,338548,338575,754100,0005,000105,000110,250 -465,504 2030500,00048,538548,538575,9640000 -575,964 2031505,00038,538543,538570,7140000 -570,714 2032515,00027,175542,175569,2840000 -569,284 2033520,00014,300534,300561,0150000 -561,015 ## Totals: 3,535,000294,4443,829,4444,020,9162,545,000154,8652,699,8652,834,859-1,186,057 ## Prior Debt Service ScheduleProposed Debt Service Schedule ## Levy ## Change Prepared 8/26/2026 ## Sale Day Attachments Page 6 ## PRELIMINARY INFORMATION - FOR DISCUSSION ONLY ## Big Lake Public School District No. 727 ## Estimated Tax Rates for Capital and Debt Service Levies ## Existing Commitments and Proposed New Debt ## Plan B Pay 2026 ## $2,410,000 Pay-Go Roofs ## Pay 2027 Lease Levy (Turf/Track) August 26, 2026 ## Date Prepared: - 5 10 15 20 25 30 35 40 45 ## Estimated Tax Rate ## Year Taxes are Payable ## Refunding Restructure (Reduction from Savings) ## Refunding Restructure (Move up Principal) ## Proposed Lease Levy LTFM - (Pay-Go) ## Capital Project Levy ## Existing Debt ## Level Tax Rate ## Debt Plan 26e Big Lake (Results).xlsx ## Sale Day Attachments Page 7 Rating Action: Moody's Ratings assigns Aa3 UND & Aa1 ENH to Big ## Lake Independent School District 727, MN's GO Refunding Bonds, Series 2026A 20 Aug 2026 New York, August 20, 2026 -- Moody's Ratings (Moody's) has assigned Aa3 underlying and Aa1 enhanced ratings to Big Lake Independent School District 727, MN's General Obligation Refunding Bonds, Series 2026A, which have a proposed par amount of $2,570,000. We maintain the district's outstanding Aa3 issuer and GOULT ratings. Following the sale, the district will have around $57 million in debt outstanding. ## RATINGS RATIONALE The Aa3 issuer rating reflects the district's strong local economy and stable enrollment, along with its healthy reserve position. Resident income and full value per capita are strong, and the district's economy benefits from its proximity to the twin cities metro area. The district projects continued stability in enrollment trends. Available fund balance and liquidity ratios are solidly in-line with peer medians at around 32% and 47% of revenues respectively as of fiscal 2025 (fiscal year-end June 30). The district currently projects a general fund deficit of around $3.5 million in fiscal 2026 following a one-time adjustment to salary expenses, which would bring available fund balance closer to 26% of revenues. Long-term liabilities will remain moderate. The Aa3 GOULT rating is equivalent to the issuer rating, reflecting the district's full faith and credit pledge with authority to raise ad valorem property taxes unlimited as to rate or amount. The Aa1 enhanced rating assigned to the GO bonds reflects the additional security provided by the State of Minnesota's School District Credit Enhancement Program (Aa1 stable). The Aa1 enhanced programmatic rating is notched once from the State of Minnesota's Aaa Issuer Rating. The enhanced rating reflects sound program mechanics and the state's pledge of an unlimited appropriation from its General Fund should the district be unable to meet debt service requirements. The program mechanics include a provision for third- party notification of pending deficiency. If the school district does not transfer funds necessary to pay debt to the paying agent at least three days prior to the payment due date, the state will appropriate the payment to the paying agent directly. We have received a copy of the signed program application. ## RATING OUTLOOK We do not assign outlooks to issuers with this amount of debt outstanding. ## FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS - Further bolstering of resident income and full value per capita - Increase in available fund balance to 40% of revenues or greater ## FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS - Decrease in available fund balance ratio below 20% - Long-term liabilities ratio increasing to 400% of revenues or higher ## Sale Day Attachments Page 8 ## PROFILE Big Lake Independent School District 727, MN is a K-12 district located in Sherbune County in Central Minnesota. The district serves the population of Big Lake, MN, which is located around 40 miles northwest of the twin cities metro area. 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