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REFUNDING ISSUES
<br />OFFICIAL STATEMENT DATED OCTOBER 12, 2006
<br />Ratings: Requested from Moody's
<br />Investors Service
<br />In the opinion of Kennedy & Graven, Chartered, Bond Counsel for the City, under existing laws, regulations, rulings and decisions, assuming compliance
<br />with the covenants set forth in the Resolutions, the interest on the Bonds is not includable in the gross income of the owners thereof for federal income
<br />tax purposes or in taxable net income of individuals, estates or trusts for Minnesota income tax purposes, and is not includable in the computation of the
<br />alternative minimum tax imposed on individuals under the Internal Revenue Code of 1986, as amended, and on individuals, trusts and estates under
<br />Minnesota law. Interest on the Bonds is includable in the calculation of certain federal and Minnesota taxes imposed on corporations. (See "Tax
<br />Exemption" herein.)
<br />City of Lino Lakes, Minnesota
<br />$3,025,000*
<br />General Obligation
<br />Capital Improvement Plan
<br />Refunding Bonds, Series 2006E
<br />(the "Series 2006E Bonds ")
<br />$1,745,000*
<br />General Obligation Water
<br />Revenue Refunding Bonds,
<br />Series 2006F
<br />(the "Series 2006F Bonds ")
<br />(collectively referred to as the "Bonds," the "Obligations" or the "Issues ")
<br />(Book Entry Only)
<br />Dated Date: November 1, 2006
<br />The Bonds will mature as shown on the inside front cover of this Official Statement.
<br />Proposals for the Series 2006E Bonds may contain a maturity schedule providing for any combination of serial
<br />bonds and term bonds. Any term bonds will be subject to mandatory sinking fund redemption at a price of par
<br />plus accrued interest to the date of redemption and must conform to the maturity schedules set forth on the
<br />inside front cover of this Official Statement.
<br />The Bonds will be general obligations of the City for which the City pledges its full faith and credit and power to
<br />levy direct general ad valorem taxes. Additional security for the Bonds is discussed herein.
<br />A separate proposal, for not less than the amounts shown below, must be submitted for each Issue, along with
<br />a good faith deposit in the form of a certified or cashier's check, or a Financial Surety Bond, payable to the
<br />order of the City. Rates shall be specified in integral multiples of 5/100 or 1/8 of 1% and must be in level or
<br />ascending order. The Bonds will be awarded on the basis of True Interest Cost (TIC).
<br />Minimum Bid Good Faith Deposit
<br />The Series 2006E Bonds $2,996,263 $30,250
<br />The Series 2006F Bonds 1,735,839 17,450
<br />The City will designate the Series 2006F Bonds as "qualified tax - exempt obligations" pursuant to
<br />Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. The Series 2006E Bonds are not
<br />designated as "qualified tax - exempt obligations." The Bonds will not be subject to the alternative minimum tax
<br />for individuals.
<br />The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the
<br />name of Cede & Co., as nominee of The Depository Trust Company ( "DTC "). DTC will act as securities
<br />depository for the Bonds. Individual purchases may be made in book entry form only, in the principal amount
<br />of $5,000 and integral multiples thereof. Investors will not receive physical certificates representing their
<br />interest in the Bonds purchased. (See "Book Entry System" herein.) U.S. Bank National Association, St. Paul,
<br />Minnesota will serve as the registrar (the "Registrar ") for the Bonds. Bonds will be available for delivery at DTC
<br />on or about November 21, 2006.
<br />Preliminary; subject to change.
<br />PROPOSALS RECEIVED: October 23, 2006 (Monday) until 10:30 A.M., Central Time
<br />CITY AWARD: October 23, 2006 (Monday) at 6:30 P.M., Central Time
<br />® Springsted
<br />Further information may be obtained from SPRINGSTED Incorporated,
<br />Financial Advisor to the Issuer, 380 Jackson Street, Suite 300,
<br />Saint Paul, Minnesota 55101 -2887 (651) 223 -3000
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