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RECOMMENDATIONS <br /> Re: Recommendations for the Issuance of$1,160,000 General Obligation Improvement <br /> Bonds, Series 2001 B <br /> We respectfully request your consideration of our recommendations for the above-named issue. <br /> Bond proceeds will be used to finance street, water and sewer improvement projects in various <br /> areas of the City. <br /> We recommend the following for the Bonds: <br /> 1. Action Requested To establish the date and time of receiving <br /> bids and establish the terms and conditions <br /> of the offering. <br /> 2. Sale Date and Time Tuesday, March 27, 2001 at 10:00 A.M., <br /> with consideration for award by the City <br /> Council at 7:00 P.M. that same day. <br /> 3. Authority and Purpose for the Bond Issue The Bonds are being issued pursuant to <br /> Minnesota Statutes, Chapters 475 and 429. <br /> Bond proceeds will be used to finance <br /> various improvement projects within the City, <br /> as listed on Page 5. <br /> 4. Principal Amount of Offering $1,160,000. <br /> 5. Repayment Term The Bonds will mature annually February 1, <br /> 2003 through 2017. Interest will be payable <br /> semi-annually each August 1 and February <br /> 1, commencing August 1, 2001. <br /> 6. Term Bonds We have included a provision that permits <br /> the underwriters to combine multiple <br /> maturity years into a term bond, subject to <br /> mandatory redemption on the same maturity <br /> schedule provided in the Terms of Proposal. <br /> The advantage to the underwriter is that it <br /> provides large blocks of bonds, which are <br /> more attractive to bond funds, and certain <br /> pension funds, which deal only with large <br /> blocks of bonds. This in turn is a benefit to <br /> the City since selling larger blocks of bonds <br /> reduces the risk to the underwriter, allowing <br /> them to lower their costs and the interest <br /> coupons. Since the Bonds are being offered <br /> on a competitive bid basis and awarded on <br /> the lowest true interest cost, the City will <br /> award the Bonds to the best bid regardless <br /> of whether term bonds are chosen or not. <br /> 7. First Levy and Levy Cycle The Bonds will be general obligations of the <br /> City and will be repaid with a combination of <br /> special assessments and ad valorem <br />