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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 MAY 19, 2020 NEW ISSUE S&P Rating: Requested BANK QUALIFIED 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 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 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 Bonds or arising with respect to ownership of the Bonds. See “TAX EXEMPTION” herein. $4,800,000* City of Lino Lakes, Minnesota General Obligation Utility Revenue Bonds, Series 2020A (the “Bonds”) (Book Entry Only)
<br /> Dated Date: Date of Delivery Interest Due: Each February 1 and August 1, commencing February 1, 2021 The Bonds will mature February 1 in the years and amounts* as follows:
<br />2021 $320,000
<br />2022 $290,000
<br />2023 $295,000
<br />2024 $300,000
<br />2025 $305,000
<br />2026 $305,000
<br />2027 $310,000
<br />2028 $315,000
<br />2029 $320,000
<br />2030 $325,000
<br />2031 $330,000
<br />2032 $335,000
<br />2033 $345,000
<br />2034 $350,000
<br />2035 $355,000
<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
<br />date of redemption scheduled to conform to the maturity schedule set forth above. The City may elect on February 1, 2029, and on any day thereafter, to redeem Bonds due on or after February 1, 2030 at a price of par plus accrued interest. 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 utility for repayment
<br />the Bonds. The proceeds of the Bonds will be used to finance Water Tower #3 located within the City. Proposals shall be for not less than $4,737,600 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). The City will designate the Bonds as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of the
<br />Internal Revenue Code of 1986, as amended, relating to the ability of financial institutions to deduct from income for
<br />federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations.
<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 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.
<br />(See “Book Entry System” herein.) U.S. Bank National Association, Saint Paul, Minnesota will serve as registrar
<br />(the “Registrar”) for the Bonds. The Bonds will be available for delivery at DTC on or about July 8, 2020.
<br /> PROPOSALS RECEIVED: Monday, June 8, 2020 until 10:00 A.M., Central Time
<br /> CONSIDERATION OF AWARD: Council meeting commencing at 6:30 P.M., Central Time on
<br />Monday, June 8, 2020
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<br />Further information may be obtained from Baker Tilly Municipal Advisors,
<br />LLC, 380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101-2887
<br />(651) 223-3000.
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