09-26-2016 Council Packet - Laserfiche WebLink

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City of Lino Lakes, Minnesota Recommendations for Issuance of Bonds $1,420,000 General Obligation Water Utility Revenue Bonds, Series 2016A $1,980,000 Taxable General Obligation Refunding Improvement Bonds, Series 2016B $1,600,000 General Obligation Tax Abatement Refunding Bonds, Series 2016C The Council has under consideration the issuance of three series of bonds: (i) the 2016A Bonds will finance water system improvements within the City; (ii) the 2016B Bonds is a current refunding of the Series 2005A Bonds; and (iii) the 2016C Bonds is a current refunding of the Series 2006C Bonds. This document provides information relative to the proposed issuance. KEY EVENTS: The following summary schedule includes the timing of some of the key events that will occur relative to the bond issuance. September 26, 2016 Council sets sale date and terms Week of October 10, 2016 Rating conference is conducted October 24, 2016, 11:00 a.m. Competitive proposals are received October 24, 2016, 6:00 p.m. Council considers award of the Bonds November 23, 2016 Proceeds are received February 1, 2017 Redeem the 2005A and 2006C Bonds RATING: An application will be made to S&P Global Ratings (S&P) for a rating on the Bonds. The City’s general obligation debt is currently rated “AA” by S&P. THE MARKET: Performance of the tax-exempt market is often measured by the Bond Buyer’s Index (“BBI”) which measures the yield of high grade municipal bonds in the 20 th year for general obligation bonds (the BBI 20 Bond Index) and the 30th year for revenue bonds (the BBI 25 Bond Index). The following chart illustrates these two indices over the past five years. Study No.: 0502.132.133.134 September 22, 2016