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REFUNDING ISSUE
<br />OFFICIAL STATEMENT DATED 4 °RIL 28, 2010
<br />Rating: Requested from Moody's
<br />Investors Service
<br />In the opinion of Kennedy & Graven, Chartered, Bond Counsel, based on present federal and Minnesota laws, regulations, rulings and decisions, and
<br />assuming compliance with certain covenants, interest to be paid on the Bonds is excluded from gross income for federal income tax purposes and from
<br />taxable net income of individuals, estates, and trusts for Minnesota income tax purposes, and is not an item of tax preference for federal or Minnesota
<br />altemative minimum tax purposes. Such interest is included in taxable income for purposes of the Minnesota franchise tax on corporations and financial
<br />institutions and in adjusted current eamings of corporations for federal alternative minimum tax purposes. See "TAX EXEMPTION AND RELATED TAX
<br />CONSIDERATIONS" herein.
<br />$1,015,000*
<br />City of Lino Lakes, Minnesota
<br />General Obligation Improvement and Utility
<br />Revenue Refunding Bonds, Series 2010A
<br />(Book Entry Only)
<br />Dated date: June 1, 2010 Interest Due: Each February 1 and August 1,
<br />commencing February 1, 2011
<br />The Bonds will mature February 1 as follows:
<br />2011 $105,000
<br />2012 $ 95,000
<br />2013 $ 95,000
<br />2014 $ 95,000
<br />2015 $100,000
<br />2016 $100,000
<br />2017 $100,000 2019 $110,000
<br />2018 $105,000 2020 $110,000
<br />Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds. All
<br />term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to the date of
<br />redemption and must conform to the maturity schedule set forth above.
<br />The Bonds will not be subject to payment in advance of their respective stated maturity dates.
<br />The Bonds will be general obligations of the City for which the City pledges its full faith and credit and power to levy direct
<br />general ad valorem taxes. In addition, the City will pledge special assessments against benefited properties to repay the
<br />Improvement Portion of the Bonds and net revenues of the City's water utility to repay the Revenue Portion of the Bonds.
<br />The proceeds will be used to refund the February 1, 2011 through February 1, 2020 maturities of the City's General
<br />Obligation Improvement and Utility Revenue Bonds, Series 2004A, dated November 15, 2004.
<br />Proposals must be for not less than $1,007,134 and accrued interest on the total principal amount of the Bonds. Proposals
<br />shall specify rates in integral multiples of 5/100 or 1/8 of 1 %. Rates are not required to be in level or ascending order;
<br />however, the rate for any maturity cannot be more than 1°/0 lower than the highest rate of any of the preceding maturities.
<br />Proposals must be accompanied by a good faith deposit in the amount of $10,150 in the form of a certified or cashier's check
<br />payable to the order of the City, a wire transfer, or a Financial Surety Bond, and delivered to Springsted Incorporated prior to
<br />the time proposals will be opened. The Bonds will be awarded on the basis of True Interest Cost (TIC).
<br />The City will designate the Bonds as "qualified tax - exempt obligations" pursuant to Section 265(b)(3) of the Internal
<br />Revenue Code of 1986, as amended. The Bonds will not be subject to the alternative minimum tax for individuals.
<br />The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the name of
<br />Cede & Co., as nominee of The Depository Trust Company (the "Depository"). The Depository will act as securities
<br />depository of the Bonds. Individual purchases may be made in book entry form only, in the principal amount of $5,000
<br />and integral multiples thereof. Investors will not receive physical certificates representing their interest in the Bonds
<br />purchased. (See "Book Entry System" herein.) U.S. Bank National Association, St. Paul, Minnesota will serve as
<br />registrar (the "Registrar") for the Bonds. Bonds will be available for delivery at DTC on or about June 8, 2010.
<br />Preliminary; subject to change.
<br />PROPOSALS RECEIVED: May 10, 2010 (Monday) until 10:30 A.M., Central Time
<br />AWARD: May 10, 2010 (Monday) at 6:30 P.M., Central Time
<br />Springsted
<br />Further information may be obtained from SPRINGSTED Incorporated,
<br />Financial Advisor to the City, 380 Jackson Street, Suite 300, Saint Paul,
<br />Minnesota 55101 -2887 (651) 223 -3000
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