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<br />* Preliminary; subject to change.
<br /> The information contained in this Preliminary Official Statement is deemed by the City to be final as of the date hereof; however, the pricing and underwriting information is subject to completion or amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
<br />PRELIMINARY OFFICIAL STATEMENT DATED OCTOBER 7, 2016 NEW ISSUES S&P Ratings: Requested
<br />BANK QUALIFIED – SERIES 2016A BONDS AND SERIES 2016C BONDS In the opinion of Kennedy & Graven, Chartered, Bond Counsel, based on present federal and Minnesota laws, regulations, rulings and decisions (which excludes any pending legislation which may have a retroactive effect) and assuming compliance with certain covenants, interest to be paid on the Series 2016A Bonds and the Series 2016C Bonds is excluded from gross income for federal income tax purposes and, to the same extent, is excluded from taxable net income of individuals, estates, and trusts for Minnesota income tax purposes, and is not a preference item for purposes of computing the federal alternative minimum tax or the Minnesota alternative minimum tax imposed on individuals, trusts, and estates. Such interest is taken into account in determining adjusted current earnings for the purpose of computing the federal alternative minimum tax imposed on certain corporations and is subject to Minnesota franchise taxes on certain corporations (including financial institutions) measured by income. No opinion will be expressed by Bond Counsel regarding the other state or federal tax consequences caused by the receipt or accrual of interest on the Series 2016A Bonds and the Series 2016C Bonds or arising with respect to ownership of the Series 2016A Bonds and the Series 2016C Bonds. See “TAX EXEMPTION – SERIES 2016A BONDS” and “TAX EXEMPTION – SERIES 2016C BONDS” herein. Interest on the Series 2016B Bonds is includable in gross income for federal income tax purposes and is includable in taxable net income for Minnesota income tax purposes. See “TAXABILITY OF INTEREST – SERIES 2016B BONDS” herein. No opinion will be expressed by Bond Counsel regarding other state or federal tax consequences caused by the receipt or accrual of interest on the Series 2016A Bonds and the Series 2016C Bonds or arising with respect to ownership of the Series 2016A Bonds and the Series 2016C Bonds. City of Lino Lakes, Minnesota
<br />$1,420,000*
<br />General Obligation Water Utility Revenue
<br />Bonds, Series 2016A
<br />(the “Series 2016A Bonds”)
<br />$1,980,000*
<br />Taxable General Obligation Improvement
<br />Refunding Bonds, Series 2016B
<br />(the “Series 2016B Bonds”)
<br />$1,600,000*
<br />General Obligation Tax Abatement Refunding Bonds, Series 2016C
<br />(the “Series 2016C Bonds”) (Book Entry Only) Dated Date: Date of Delivery Interest Due: Each February 1 and August 1,
<br /> commencing August 1, 2017 The Bonds (as defined herein) will mature as shown on the inside front cover of this Official Statement.
<br />Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds.
<br />All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of
<br />redemption scheduled to conform to the respective maturity schedules set forth on the following page.
<br />The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct
<br />general ad valorem taxes. Additional sources of security for the Bonds are discussed herein.
<br />A separate proposal must be submitted for each issue subject to the minimum bid amounts shown below, plus accrued
<br />interest, if any. Proposals shall specify rates in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public
<br />for each maturity of each issue must be 98.0% or greater. Following receipt of proposals, a good faith deposit for each
<br />issue will be required to be delivered to the City by the lowest bidder as described in each “Terms of Proposal” herein.
<br />Award of the Bonds will be made on the basis of True Interest Cost (TIC). Minimum Bid The Series 2016A Bonds $1,407,930
<br />The Series 2016B Bonds $1,966,140
<br />The Series 2016C Bonds $1,590,400 The City will designate the Series 2016A Bonds and the Series 2016C Bonds as “qualified tax-exempt obligations”
<br />pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, and the Series 2016A Bonds and the
<br />Series 2016C Bonds will not be subject to the alternative minimum tax for individuals.
<br />The Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the name of
<br />Cede & Co., as nominee of The Depository Trust Company (“DTC”). DTC will act as securities depository for the
<br />Bonds. Individual purchases may be made in book entry form only, in the principal amount of $5,000 and integral
<br />multiples thereof. Investors will not receive physical certificates representing their interest in the Bonds purchased. (See
<br />“Book Entry System” herein.) U.S. Bank National Association, St. Paul, Minnesota will serve as registrar (the
<br />“Registrar”) for the Bonds. The Bonds will be available for delivery at DTC on or about November 23, 2016. PROPOSALS RECEIVED: October 24, 2016 (Monday) until 11:00 A.M., Central Time AWARD: October 24, 2016 (Monday) at 6:30 P.M., Central Time
<br /> Further information may be obtained from SPRINGSTED Incorporated,
<br />Municipal Advisor to the City, 380 Jackson Street, Suite 300, Saint Paul,
<br />Minnesota 55101-2887 (651) 223-3000.
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