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City of Lino Lakes, Minnesota <br />Recommendations for Issuance of Bonds <br />$1,420,000 General Obligation Water Utility Revenue Bonds, Series 2016A <br />$1,980,000 Taxable General Obligation Refunding Improvement Bonds, Series 2016B <br />$1,600,000 General Obligation Tax Abatement Refunding Bonds, Series 2016C <br />The Council has under consideration the issuance of three series of bonds: (i) the 2016A Bonds will finance water <br />system improvements within the City; (ii) the 2016B Bonds is a current refunding of the Series 2005A Bonds; and (iii) <br />the 2016C Bonds is a current refunding of the Series 2006C Bonds. This document provides information relative to <br />the proposed issuance. <br />KEY EVENTS: The following summary schedule includes the timing of some of the key events that will <br />occur relative to the bond issuance. <br />September 26, 2016 <br />Week of October 10, 2016 <br />October 24, 2016, 11:00 a.m. <br />October 24, 2016, 6:00 p.m. <br />November 23, 2016 <br />February 1, 2017 <br />Council sets sale date and terms <br />Rating conference is conducted <br />Competitive proposals are received <br />Council considers award of the Bonds <br />Proceeds are received <br />Redeem the 2005A and 2006C Bonds <br />RATING: An application will be made to S&P Global Ratings (S&P) for a rating on the Bonds. The <br />City's general obligation debt is currently rated "AA" by S&P. <br />THE MARKET: Performance of the tax-exempt market is often measured by the Bond Buyer's Index ("BBI") <br />which measures the yield of high grade municipal bonds in the 20th year for general <br />obligation bonds (the BBI 20 Bond Index) and the 30th year for revenue bonds (the BBI 25 <br />Bond Index). The following chart illustrates these two indices over the past five years. <br />BBI 25 -bond (Revenue) and 20 -bond (G.O.) Rates for 5 Years Ending <br />9/15/2016 <br />N <br />CO <br />VN <br />Sprin <br />6.0% <br />5.0% <br />4.0% <br />3.0% <br />2.0% <br />41, �.y �.ti `b .y �..5 .S �5 Na �a ^b NI* 4) 4) �h ^h 46 4) 46 <br />Kyo ,yo Kyo Kyo Kyo pyo ,zo19 Kyo Kyo ,yo Kyo Kyo Kyo pyo Kyo Kyo Kyo ,yo Kyo Kyo Kyo <br />sted <br />Dates <br />----BBI 25 Bond <br />—BBI 20 Bond <br />Prepared by Springsted Incorporated <br />9/15/2016 <br />25 bond: 3.10% <br />20 bond: 2.96% <br />6.- <br />V <br />t <br />. <br />\ <br />, • <br />\ /1 <br />1 ,, <br />M <br />1142 " <br />1 <br />r <br />sted <br />Dates <br />----BBI 25 Bond <br />—BBI 20 Bond <br />Prepared by Springsted Incorporated <br />