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• City of Lino Lakes, Minnesota October 21, 2003 11. Continuing Disclosure 12. Attachments General The Bonds are subject to continuing disclosure requirements set forth by the Securities and Exchange Commission. The SEC rules require the City to undertake an annual update of certain Official Statement information and report any material events to the national repositories. Springsted currently provides continuing disclosure services for the City under a separate contract. An amendment to that contract adding this Issue has been provided to City staff. • Sources and Uses of Funds • Debt Service Schedules • Assessment Income Schedule • Refunding Schedules • Terms of Proposal DISCUSSION The Bonds are being issued to accomplish two primary objectives. First, $920,000, together with other funds of the City, will be used to finance infrastructure projects in various areas of the City, including street and utility improvements and is referred to herein as the Project Portion of the Issue. Second, $1,200,000 will be used to refinance an existing improvement bond of the City and is referred to herein as the Refunding Portion of the Issue. Both components of the Issue are 100% assessed and are expected to generate an annual surplus of assessment income over debt service. A detailed schedule of the sources and uses of the two components is shown on page 7. The net debt service schedule for the Bonds is shown on page 8 and shows the new assessment income, the remaining assessment income and the annual surplus for the Issue as a whole. Project Portion Proceeds of the Bonds attributable to new projects are being used to finance three street and utility projects in various areas of the City which include (i) the Elm Street project, (ii) the Twilight Acres Water Main project and (iii) the Century Farm Lift Station project. In addition to the bond proceeds, the City expects to contribute $2,014,930 from other funds of the City and various other sources. A detailed sources and uses of funds schedule is shown on page 7. The Bonds will be repaid from special assessments levied against benefited properties. Assessments in the aggregate amount of $894,616 will be filed on or about October 15, 2003. Assessments will be spread over a term of 15 years, with even annual total payments of principal and interest. Interest will be charged on the unpaid principal balance at a rate of 7 %. The projected aggregate assessment income schedule is shown on page 9 and projected assessment income schedules by project are shown on pages 10 - 12. Page 4