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In the opinion o( Briggs and Morgan, Professional Association. Bond Counsel. based an present federal and Minnesota tank regulations. rulings and decisions, tit the rime
<br />of their issuance and delivery to the original purchaser, interest on the Bonds is exchaded from gross income for proposes of United States income tax and is excluder, 10 the
<br />same extent, in computing both grass income and taxable net income for purposes of State of Minnesota income tax (other than Minnesota franchise taxes measured by income
<br />and imposed on corporations and financial institutions). Interest on the Bonds is not an item of tax preference for purposes of the alternative minimum tat imposed on
<br />individuals and corporations; however, interest on the Bonds is taken into account in determining adjusted current earnings for purposes of computing the federal alternative
<br />minimum tax imposed on corporations. No opinion will be expressed by Bond Counsel regarding other state or federal tax consequences caused by the receipt or accrual of
<br />interest an the Bonds or arising with respect to ownership of the Bonds. See "TAX EXEMPTION" and "OTHER FEDERAL TAX CONSEQUENCES" and Appendix B.
<br />The City will designate the Bonds as "qualified tax - exempt obligation "for purposes of Section 265 (6)(3) of the Internal Revenue Code of 1986, as amended, relating to the
<br />ability affinancial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations.
<br />New Issue Rating Application Made: Moody's Investors Service
<br />PRELIMINARY OFFICIAL STATEMENT DATED FEBRUARY 15, 2007
<br />CITY OF LITTLE CANADA, MINNESOTA
<br />$2,205,000* GENERAL OBLIGATION PERMANENT IMPROVEMENT REVOLVING FUND
<br />BONDS, SERIES 2007A
<br />PROPOSAL OPENING: February 28, 2007, 10:00 A.M., C.T.
<br />CONSIDERATION: February 28, 2007, 7:30 P.M., C.T.
<br />PURPOSE /AUTHORITY /SECURITY: The $2,205,000 General Obligation Permanent Improvement Revolving Fund Bonds,
<br />Series 2007A (the "Bonds ") are being issued pursuant to Minnesota Statutes, Chapters 429 and 475, by the City of Little Canada,
<br />Minnesota (the "City ") for the purpose of financing various public improvements within the City. The Bonds will be general
<br />obligations of the City for which its full faith, credit and taxing powers are pledged. Delivery is subject to receipt of an approving
<br />legal opinion of Briggs and Morgan, Professional Association, St. Paul, Minnesota.
<br />DATE OF BONDS: March 22, 2007
<br />MATURITY: February 1 as follows:
<br />MATURITY ADJUSTMENTS:
<br />TERM BONDS:
<br />INTEREST:
<br />OPTIONAL REDEMPTION:
<br />MINIMUM PROPOSAL:
<br />GOOD FAITH DEPOSIT:
<br />PAYING AGENT:
<br />BOOK - ENTRY -ONLY:
<br />Year
<br />2008
<br />2009
<br />2010
<br />2011
<br />Amount*
<br />$80,000
<br />180,000
<br />185,000
<br />190,000
<br />Year
<br />2012
<br />2013
<br />2014
<br />2015
<br />Amount*
<br />$200,000
<br />205,000
<br />215,000
<br />225,000
<br />* The City reserves the right to increase or decrease the principal amount of the Bonds on the
<br />day of sale, in increments of $5,000 each. Increases or decreases may be made in any
<br />maturity. If any principal amounts are adjusted, the purchase price proposed will be adjusted
<br />to maintain the same gross spread per $1,000.
<br />See "Term Bond Option" herein.
<br />August 1, 2007 and semiannually thereafter.
<br />Bonds maturing February 1, 2013 and thereafter are subject to call for prior redemption on
<br />February 1, 2012 and any date thereafter, at par.
<br />$2,178,540.
<br />$44,100.
<br />To be named by the City.
<br />See "Book -Entry-Only System" herein.
<br />Year
<br />2016
<br />2017
<br />2018
<br />Amount*
<br />$235,000
<br />240,000
<br />250,000
<br />This Preliminary Official Statement will be further supplemented by an addendum specifying the offering prices, interest rates,
<br />aggregate principal amount, principal amount per maturity, anticipated delivery date, and Syndicate Manager and Syndicate
<br />Members, together with any other information required by law, and, as supplemented, shall constitute a "Final Official Statement"
<br />of the City with respect to the Bonds, as defined in S.E.C. Rule 15c2 -I2.
<br />EHLERS
<br />& ASSOCIATES INC
<br />3060 Centre Pointe Drive, Roseville, MN 55113
<br />651.697.8500 fax 651.697.8555 www.ehlers- inc.com
<br />Offices in Roseville, MN Brookfield, WI and Lisle, IL
<br />
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