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N <br />ti <br />0 <br />Q <br />N <br />City of Lino Lakes, Minnesota <br />Recommendations for Issuance of Bonds <br />$2,030,000 General Obligation Bonds, Series 2012A <br />The Council has under consideration the issuance of bonds to (i) fund traffic signal improvements to various street <br />and roads within the City (the "Signal Improvement Portion ") and (ii) refund an outstanding bond issue of the City (the <br />"Refunding Portion "). This document provides information relative to the proposed issuance. <br />KEY EVENTS: The following summary schedule includes the timing of some of the key events that will <br />occur relative to the bond issuance. <br />September 24, 2012 <br />Week of October 15, 2012 <br />October 22, 2012, 11:30 a.m. <br />October 22, 2012, 6:30 p.m. <br />Mid November, 2012 <br />Council sets sale date and terms <br />Rating conference is conducted <br />Competitive proposals are received <br />Council considers award of Bonds <br />Proceeds are received <br />RATING: An application will be made to Moody's Investors Service for a rating on the Bonds. The <br />City's general obligation debt is currently rated "Aa2" by Moody's. <br />THE MARKET: Performance of the tax - exempt market is often measured by the Bond Buyer's Index ( "BBI ") <br />which measures the yield of high grade municipal bonds in the 20th year for general <br />obligation bonds (the BBI 20 Bond Index) and the 30th year for revenue bonds (the BBI 25 <br />Bond Index). The following chart illustrates these two indices over the past five years. <br />BBI 25 -bond (Revenue) and 20 -bond (G.O.) Rates for 5 Years <br />Ending 9113/2012 <br />6.5% <br />6_0% <br />5.5% <br />5.0% <br />co <br />CG <br />4.5% <br />4.0% <br />3.5% <br />01 QO Ob <br />O O 41,0 00 <br />� <br />O� O '3 - it <br />i1 S en <br />040 040 0,"4 0,\0 0�0 4 ^'* ^ <br />ti <br />O O p O ....\N4t. <br />,� 1� ^� ,O � <br />BBI 25 Bond <br />---- BBI 20 Bond <br />Dates Prepared by Sprrngsted Incorporated <br />1 <br />;' <br />1;V % <br />917 3 /2012 <br />25 bond: 4.42% <br />20 bond: 3 79% <br />1 a r.% 04i <br />.00 <br />; �1 <br />, <br />r 1v "0 iI <br />h <br />I AM 1 1 Ie6 <br />i iea.' wP� <br />vas i <br />rk <br />i1 S en <br />040 040 0,"4 0,\0 0�0 4 ^'* ^ <br />ti <br />O O p O ....\N4t. <br />,� 1� ^� ,O � <br />BBI 25 Bond <br />---- BBI 20 Bond <br />Dates Prepared by Sprrngsted Incorporated <br />