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APPENDIX E <br />TERMS OF PROPOSAL <br />$2,205,000* GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND BONDS, <br />SERIES 2007A <br />CITY OF LITTLE CANADA, MINNESOTA <br />Proposals for the purchase of$2,205,000 General Obligation Permanent Improvement Revolving Funcl Bonds, Series <br />2007A (the "Bonds ") of the City of Little Canada, Minnesota (the "City ") will be received at the offices of Ehlers & <br />Associates, Inc. ( "Ehlers "), 3060 Centre Pointe Drive, Roseville, Minnesota 55113 -1105, Financial Advisors to the <br />City, until 10:00 A.M., Central Time, and ELECTRONIC PROPOSALS will be received via PARITY, in the <br />manner described below, until 10:00 A.M. Central Time, on February 28, 2007, at which time they will be opened, <br />read and tabulated. The proposals will be presented to the City Council for consideration for award at a meeting to <br />be held at 7:30 P.M., Central Time, on the same date. The proposal offering to purchase the Bonds upon the terms <br />specified herein and most favorable to the City will be accepted unless all proposals are rejected. <br />PURPOSE <br />The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475, by the City for the purpose of <br />financing various public improvements within the City. The Bonds will be general obligations of the City for which <br />its full faith, credit and taxing powers are pledged. <br />DATES AND MATURITIES <br />The Bonds will be dated March 22, 2007, will be issued as fully registered Bonds in the denomination of $5,000 each, <br />or any integral multiple thereof, and will mature on February 1 as follows: <br />Year Amount* Year Amount* Year Amount* <br />2008 $80,000 2012 $200,000 2016 $235,000 <br />2009 180,000 2013 205,000 2017 240,000 <br />2010 185,000 2014 215,000 2018 250,000 <br />2011 190,000 2015 225,000 <br />ADJUSTMENT OPTION <br />* The City reserves the right to increase or decrease the principal amount of the Bonds on the day of sale, in <br />increments of $5,000 each. Increases or decreases may be made in any maturity. If any principal amounts are <br />adjusted, the purchase price proposed will be adjusted to maintain the same gross spread per $1,000. <br />TERM BOND OPTION <br />All dates are inclusive. Proposals for the Bonds may contain a maturity schedule providing for any combination of <br />serial bonds and term bonds, subject to mandatory redemption, so long as the amount of principal maturing or subject <br />to mandatory redemption in each year conforms to the maturity schedule set forth above. <br />E -1 <br />