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<br />* Preliminary; subject to change. 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 23, 2018
<br />NEW ISSUE S&P Rating: Requested
<br />BANK QUALIFIED
<br />In the opinion of Kennedy & Graven, Chartered, Bond Counsel to the City, based on present federal and Minnesota laws, regulat ions, rulings and decisions,
<br />and assuming compliance with certain covenants, interest on the Bonds is excluded from gross income for federal income tax purposes and, to the same extent,
<br />from taxable net income of individuals, estates and trusts for Minnesota income purposes, and is not a preference item for pu rposes of computing the federal
<br />alternative minimum tax (although interest is included in adjusted current earnings in calculating corporate alternative minimum taxable inc ome for taxable
<br />years that began prior to January 1, 2018) or the Minnesota alternative minimum tax imposed on individuals, trusts, and estates. Such interest is subject to
<br />Minnesota franchise taxes on corporations (including financial institutions) measured by income. No opinion will be expressed by Bond Counsel regarding
<br />other state or federal tax consequences caused by the receipt or accrual of interest on the Bonds or arising with respect to ownership of the Bonds. The City
<br />will designate the Bonds as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the Code relating to the ability of financial institution s to
<br />deduct from income for federal income tax purposes interest that is allocable to carrying and acquiring tax-exempt obligations. See “TAX EXEMPTION” and
<br />“RELATED TAX CONSIDERATIONS” herein.
<br />$7,169,000* City of Lino Lakes, Minnesota
<br />General Obligation Bonds, Series 2018A
<br />(the “Bonds”)
<br />
<br />(Book Entry Only)
<br />
<br />Dated Date: Date of Delivery Interest Due: Each February 1 and August 1,
<br /> commencing August 1, 2019
<br />
<br />The Bonds will mature as shown on the inside front cover of this Official Statement.
<br />
<br />Proposals for the Bonds may contain a maturity schedule which provides for term bonds for the February 1, 2022
<br />through February 1, 2034 maturities. Any term bonds shall be subject to mandatory sinking fund redemption at a
<br />price of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule set forth
<br />on the following page.
<br />
<br />The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy
<br />direct general ad valorem taxes. In addition, the City will pledge net revenues of the City’s water and sewer utilities
<br />for repayment of a portion of the Bonds. The proceeds of the Bonds will be used to finance (i) various street
<br />reconstruction projects; (ii) various water and sewer utility projects related to West Shadow Lake Drive; and
<br />(iii) various water utility projects on Lake Drive, all as described in the City’s 2017-2021 Five-Year Street
<br />Reconstruction Plan adopted by the City on June 12, 2017.
<br />
<br />Proposals shall be for not less than $7,169,000 (Par) plus accrued interest, if any, on the total principal amount of the
<br />Bonds. Proposals shall specify rates in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for
<br />each maturity as stated on the proposal must be 98.0% or greater. Following receipt of proposals, a good faith deposit
<br />will be required to be delivered to the City by the lowest bidder as described in the “Terms of Proposal” herein.
<br />Award of the Bonds will be made on the basis of True Interest Cost (TIC).
<br />
<br />The Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the name
<br />of Cede & Co., as nominee of The Depository Trust Company (“DTC”). DTC will act as securities depository for
<br />the Bonds. Individual purchases of the Bonds maturing on February 1, 2021 may be made in the principal amount
<br />of $1,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC
<br />and its participants. Individual purchases of the Bonds maturing on February 1, 2020 and February 1, 2022 through
<br />February 1, 2034 may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through
<br />book entries made on the books and records of DTC and its participants. Investors will not receive physical
<br />certificates representing their interest in the Bonds purchased. (See “Book Entry System” herein.) U.S. Bank
<br />National Association, Saint Paul, Minnesota will serve as registrar (the “Registrar”) for the Bonds. The Bonds will
<br />be available for delivery at DTC on or about December 19, 2018.
<br /> PROPOSALS RECEIVED: Tuesday, November 13, 2018 until 11:00 A.M., Central Time CONSIDERATION OF AWARD: City Council meeting commencing at 6:30 P.M., Central Time on
<br />Tuesday, November 13, 2018
<br />
<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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