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<br /> <br /> <br />Northland Securities, Inc. Page 2 <br />Executive Summary <br />The following is a summary of the recommended terms for the issuance of $5,230,000 General <br />Obligation Improvement & Water Revenue Bonds, Series 2024A (the “Bonds”). Additional <br />information on the proposed finance plan and issuing process can be found after the Executive <br />Summary, in the Issue Overview and Attachment 3 – Related Considerations. <br />Purpose Proceeds from the Bonds will be used to finance the City’s 2024 <br />street and water utility projects and to pay costs associated <br />with the issuance of the Bonds. <br /> <br />Security The Bonds will be a general obligation of the City. The City <br />will pledge special assessments collected from benefitted <br />properties, net revenues of the water utilities and ad valorem <br />taxes for payment on the Bonds. <br /> <br />Repayment Term The Bonds will mature annually each February 1 in the years <br />2025 through 2039. Interest on the Bonds will be payable on <br />February 1, 2025, and semiannually thereafter on each <br />February 1 and August 1. <br /> <br />Estimated Interest Rate True interest cost (TIC): 3.65% <br /> <br />Prepayment Option Bonds maturing on and after February 1, 2033, will be subject <br />to redemption on February 1, 2032, and any day thereafter at a <br />price of par plus accrued interest. <br /> <br />Rating A rating will be requested from Moody’s Investor Services <br />(“Moody’s”). The City’s general obligation debt is currently <br />rated "Aa1” by Moody’s. <br /> <br />Tax Status The Bonds will be tax-exempt, bank qualified obligations. <br /> <br />Risk Factors There are certain risks associated with all debt. Risk factors <br />related to the Bonds are discussed in Attachment 5. <br /> <br />Type of Bond Sale Public Sale – Competitive Bids <br /> <br />Proposals Received Tuesday, June 4, 2024 @ 10:00 A.M. <br /> <br />Council Consideration Tuesday, June 4, 2024 @ 7:00 P.M. <br /> <br />