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<br />- iii - <br />SECURITY AND PURPOSE <br /> <br />The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and <br />power to levy direct general ad valorem taxes. In addition, the City will pledge net revenues of the City’s <br />water and sewer utilities for repayment of a portion of the Bonds. The proceeds of the Bonds will be used <br />to finance (i) various street reconstruction projects; (ii) various water and sewer utility projects related to <br />West Shadow Lake Drive; and (iii) various water utility projects on Lake Drive, as described in the City’s <br />2017-2021 Five-Year Street Reconstruction Plan adopted by the City on June 12, 2017. <br /> <br />BIDDING PARAMETERS <br /> <br />Proposals shall be for not less than $7,169,000 (Par) plus accrued interest, if any, on the total principal <br />amount of the Bonds. No proposal can be withdrawn or amended after the time set for receiving proposals <br />on the Sale Date unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or <br />continued to another date without award of the Bonds having been made. Rates shall be in integral multiples <br />of 1/100 or 1/8 of 1%. The initial price to the public for each maturity as stated on the proposal must be <br />98.0% or greater. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date <br />of maturity. No conditional proposals will be accepted. <br /> <br />ESTABLISHMENT OF ISSUE PRICE <br /> <br />In order to provide the City with information necessary for compliance with Section 148 of the Internal <br />Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder (col lectively, <br />the “Code”), the Purchaser will be required to assist the City in establishing the issue price of the Bonds <br />and shall complete, execute, and deliver to the City prior to the closing date, a written certification in a form <br />acceptable to the Purchaser, the City, and Bond Counsel (the “Issue Price Certificate”) containing the <br />following for each maturity of the Bonds (and, if different interest rates apply within a maturity, to each <br />separate CUSIP number within that maturity): (i) the interest rate; (ii) the reasonably expected initial <br />offering price to the “public” (as said term is defined in Treasury Regulation Section 1.148 -1(f) <br />(the “Regulation”)) or the sale price; and (iii) pricing wires or equivalent communications supporting such <br />offering or sale price. Any action to be taken or documentation to be received by the City pursuant hereto <br />may be taken or received on behalf of the City by Springsted. <br /> <br />The City intends that the sale of the Bonds pursuant to this Terms of Proposal shall constitute a “competitive <br />sale” as defined in the Regulation based on the following: <br /> <br /> (i) the City shall cause this Terms of Proposal to be disseminated to potential bidders in a <br />manner that is reasonably designed to reach potential bidders; <br /> (ii) all bidders shall have an equal opportunity to submit a bid; <br /> (iii) the City reasonably expects that it will receive bids from at least three bidders that have <br />established industry reputations for underwriting municipal bonds such as the Bonds; and <br /> (iv) the City anticipates awarding the sale of the Bonds to the bidder who provides a proposal <br />with the lowest true interest cost, as set forth in this Terms of Proposal (See “AWARD” <br />herein). <br /> <br />Any bid submitted pursuant to this Terms of Proposal shall be considered a firm offer for the purchase of <br />the Bonds, as specified in the proposal. The Purchaser shall constitute an “underwriter” as said term is <br />defined in the Regulation. By submitting its proposal, the Purchaser confirms that it shall require any <br />agreement among underwriters, a selling group agreement, or other agreement to which it is a party relating <br />to the initial sale of the Bonds, to include provisions requiring compliance with the provisions of the Code <br />and the Regulation regarding the initial sale of the Bonds. <br /> <br />If all of the requirements of a “competitive sale” are not satisfied, the City shall advise the Purchaser of <br />such fact prior to the time of award of the sale of the Bonds to the Purchaser. In such event, any proposal <br />submitted will not be subject to cancellation or withdrawal. Within twenty-four (24) hours of the notice <br />of award of the sale of the Bonds, the Purchaser shall advise the City and Springsted if 10% of any maturity