09-22-14 Council Packet - Laserfiche WebLink

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City of Lino Lakes, Minnesota Recommendations for Issuance of Bonds $2,645,000 General Obligation Bonds, Series 2014A The Council has under consideration the issuance of bonds to (i) fund various street, utility and sidewalk/trail improvements within the City (the "Improvement Portion") and (ii) fund a new well and well house (the "Utility Portion"). This document provides information relative to the proposed issuance. KEY EVENTS: The following summary schedule includes the timing of some of the key events that will occur relative to the bond issuance. RATING: September 22, 2014 Week of October 20, 2014 October 27, 2014, 10:30 a.m. October 27, 2014, 6:30 p.m. November 20, 2014 Council sets sale date and terms Rating conference is conducted Competitive proposals are received Council considers award of Bonds Proceeds are received The City's general obligation debt is currently rated "Aa2" by Moody's Investors Service. The City is currently determining if they will apply to Moody's or Standard & Poor's Ratings Services for a credit rating on the Bonds. THE MARKET: Performance of the tax-exempt market is often measured by the Bond Buyer's Index ("BBI") which measures the yield of high grade municipal bonds in the 20th year for general obligation bonds (the BBI 20 Bond Index) and the 30th year for revenue bonds (the BBI 25 Bond Index). The following chart illustrates these two indices over the past five years. BBI 25 -bond (Revenue) and 20 -bond (G.0.) Rates for 5 Years Ending 9/11/2014 6.5% 6.0% 5.5% d 50% 4.5% 4.0% 3.5% 3.0% Springsted q� ti� ^ ^ N � NY. N.O NCO NZ, A fl ^1ti0 ��Ct� NY- 4. Y- g 1cp. c ----581 25 Bond -BBI 20 Bond Dates Prepared by sprrngsted Incorporated 5/1112014 25 band: 4.56% 20 band: 4.14% IA I --'I A ''~..�i ii + t 9.r h q� ti� ^ ^ N � NY. N.O NCO NZ, A fl ^1ti0 ��Ct� NY- 4. Y- g 1cp. c ----581 25 Bond -BBI 20 Bond Dates Prepared by sprrngsted Incorporated