03-23-2015 Council Packet - Laserfiche WebLink

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N O 0 T City of Lino Lakes, Minnesota Recommendations for Issuance of Bonds $3,645,000 General Obligation Bonds, Series 2015A The Council has under consideration the issuance of bonds to fund various road and street improvements and related infrastructure improvements. The Bonds are structured as two purposes; Abatement Bonds and Street Reconstruction Bonds as further described herein. 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. March 23, 2015 Week of April 13, 2015 Week of April 20, 2015 April 27, 2015, 10:00 a.m. April 27, 2015, 6:30 p.m. May 28, 2015 Council sets sale date and terms for the Bonds Rating conference is conducted Receipt of rating Competitive proposals are received Council considers award of the Bonds Proceeds are received RATING: An application will be made to Standard & Poor's Rating Services for a rating on the Bonds. The City's general obligation debt is currently rated "AA" by S&P. 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 311212015 5.5% 5.0% 45% 4.O'% 5% 112101 5 20 band. 3.62% , i -+tea_ A 1 A.. A !id.; 9 5 ■ ■ 1'hw l 1.1 • { .1) <09' ,vp h y NL 41' �'1P � � 4 ^=' 19 a� ,ppb yb 5pringsted Dates ----BBI 25 80fl0 —BBI 20 B6n Prep ieI by ,Sprir7gsted Prneooporated