2018-130 Council Resolution - Laserfiche WebLink

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City of Lino Lakes, Minnesota Recommendations for Issuance of Bonds $7,169,000 General Obligation Bonds, Series 2018A The Council has under consideration the issuance of bonds to finance (i) various street reconstruction projects (the "Street Reconstruction Portion"); (ii) various water and sewer utility projects related to West Shadow Lake Drive (the "West Shadow Utility Portion"); and (iii) various water utility projects on Lake Drive (the "Lake Drive Utility Portion"), collectively the "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. October 8, 2018 Week of October 29, 2018 November 13, 2018, 11:00 a.m. November 13, 2018, 6:30 p.m. December 19, 2018 Council sets sale date and terms Rating conference is conducted Competitive proposals are received Council considers award of the Bonds Proceeds are received RATING: An application will be made to S&P Global Ratings (S&P) for ratings 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 20th year for general obligation bonds rated Aa2 by Moody's or AA by S&P (the BBI 20-Bond GO Index) and the 30th year for revenue bonds rated Al by Moody's or A+ by S&P (the BBI 25-Bond Revenue Index). The following chart illustrates these two indices over the past five years. prin BBI 20-Bond (GO) and 25-Bond (Revenue) Indices for 5 Years Ending 9/27/2018 6.o% 5.0 x 4.0% 3.0% 2.0 O^O �O Orb Orb Orb ^� O^O O^O O^O ^y OHO O^ OHO � 0�1 O�� O^1 Off^ OHO O^O n0`�O ati� ti��ry6�,�a��ti�<t' 41' �ti��rye�ti4 4tiA\� '\<1' \\rye�� ti, n:1/4�b��ry41, 4ti�ry ��4ti' 41' ed 9/27/2018 Resenue: 4.69% GO: 4.18% ----Revenue —GO Data Source:. The Bond Buyer