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• • City of Lino Lakes, Minnesota September 18, 2006 13. Attachments The Series 2006E Bonds Springsted currently provides continuing disclosure services for the City under a separate contract. An amendment to that contract adding these Issues has been provided to City staff. • Refunding Schedules — the Series 2006E Bonds • Refunding Schedules — the Series 2006F Bonds • Terms of Proposals DISCUSSION The proceeds of the Series 2006E Bonds will be used to refund the a portion of the February 1, 2010 maturity and all of the February 1, 2011 through 2019 maturities of the Lino Lakes Economic Development Authority's Lease Revenue Bonds, Series 1998A, dated August 1, 1998, (City of Lino Lakes, Minnesota Lease Obligation), (the "Series 1998A Bonds "), currently outstanding in the aggregate principal amount of $4,210,000. This refunding is being undertaken to allow the City to take advantage of lower interest rates. The Series 1998A Bonds were originally issued by the Lino Lakes Economic Development Authority to finance the construction of a city hall, a police facility, and an early childhood center (the "Project "). The City, pursuant to a lease - purchase agreement, made lease payments for payment of debt service on the Series 1998A Bonds. Issuance of the Series 2006E Bonds is being undertaken as part of the City's capital improvement plan. By refunding the Series 1998A Bonds as a capital improvement plan bond, the City can use their general obligation pledge thereby realizing lower interest rates and making this refunding transaction more desirable. Capital improvement plan bonds can be issued for eligible improvements which include city halls, public safety facilities and public works facilities, but would not include financing of an early childhood education center. The portion of the proceeds of the Series 1998A Bonds that were used for financing of the early childhood education center is estimated to be 20.55 %. Therefore, the issuance of the Series 2006E Bonds will be a partial refunding in which 79.45% of the Series 1998A Bonds will be refunded. The original transaction was issued as a revenue bond; therefore a debt service reserve fund was required and funded at $479,342.50 with proceeds of the Series 1998A Bonds, Since the Series 2006E Bonds will be a general obligation debt of the City, a reserve fund is not required, therefore $392,342.50 will be used as a cash contribution to reduce the amount of the refunding and $86,500 will remain in the debt service reserve fund for the outstanding maturities attributable to the non - refunded portion of the Series 1998A Bonds. - 6 1 - Page 5