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<br /> <br /> <br /> <br />Presale Report <br />City of St. Anthony, Minnesota <br />November 10, 2015 <br />Page 1 <br /> <br />Executive Summary of Proposed Debt <br /> <br />Proposed Issue: $4,445,000 General Obligation TIF Refunding Bonds, Series 2015B <br />Purposes: The proposed issue includes refinancing of the HRA's Tax Increment Revenue <br />Bonds (Silver Lake Village Project), Series 2006 (Commercial TIF Revenue <br />Bonds). Debt service is paid from TIF revenues generated from the <br />commercial development and will continue to be paid from the same source. <br />Interest rates on the obligations proposed to be refunded are .4% to 2.7%. The <br />refunding is expected to reduce interest expense by approximately $1.1 million <br />dollars over the next 16 years. The Net Present Value Benefit of the refunding <br />is estimated to be approximately $947,264, equal to 22.992% of the refunded <br />principal. <br />This refunding is considered an Advance Refunding as the new Bonds will be <br />issued more than 90 days prior to the call date of the obligations being <br />refunded. <br />Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapters: <br /> 469 and 475 <br />Because the City paying for at least 20% of the project costs with TIF from <br />District No. 3-5, the Bonds can be a general obligation without a referendum <br />and will not count against the City’s debt limit. <br />The Bonds will be general obligations of the City for which its full faith, credit <br />and taxing powers are pledged. <br />Term/Call Feature: The Bonds are being issued for a 16 year term. Principal on the Bonds will be <br />due on February 1 and August 1 starting 2016 through 2031. Interest is <br />payable every six months beginning February 1, 2016. <br />The Bonds maturing on and after February 1, 2025 will be subject to <br />prepayment at the discretion of the City on February 1, 2024 or any date <br />thereafter. <br />Bank Qualification: Because the City is expecting to issue no more than $10,000,000 in tax exempt <br />debt during the calendar year, the City will be able to designate the Bonds as <br />“bank qualified” obligations. Bank qualified status broadens the market for <br />the Bonds, which can result in lower interest rates. <br />Rating: The City’s most recent bond issues were rated “AA” by Standard & Poor’s. <br />The City will request a new rating for the Bonds. <br />If the winning bidder on the Bonds elects to purchase bond insurance, the <br />rating for the issue may be higher than the City’s bond rating in the event that <br />the bond rating of the insurer is higher than that of the City. <br />116