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SPRINGSTED PUBLIC FINANCE ADVISORS • 85 East Seventh Place, Suite 100 Saint Paul, MN 55101.2143 612.2233000 Fax: 612.223.3002 February 5, 1990 Mr. Robert Sundland, Mayor Members, City Council Mr. Thomas Burt, City Manager 3301 Silver Lake Road St. Anthony, MN 55418-1699 Re: Recommendations for the Issuance of $315,000 General Obligation Equipment Certificates of Indebtedness, Series 1990A We respectfully request your consideration of our recommendations for the issuance of these certificates as described in the attached "Official Terms of Offering." Mr. Burt has provided us with a list of equipment the City plans to purchase with the proceeds of this Issue (Appendix 1). While the equipment costs total $304,000 the City plans to provide funds to reduce equipment costs to $300,000. The total equipment certificate • issue consists of the following: Total Equipment Costs $304,000 Less: Funds on Hand (4,000) Net Equipment Costs $300,000 Allowance for Discount Bidding 2,362 Issuance Costs - 12,638 Net Certificate Issue 315 000 Minnesota Statutes, Chapter 412.301 permits the issue to extend not longer than five years nor longer than the useful life of the equipment purchased. This issue is dated April 1, 1990 and has a final maturity of February 1, 1995, a term of four years and ten months. Minnesota Statutes also permit the City to borrow for equipment without a referendum and not subject to a petition if the total size of the issue does not exceed 0.25% of the market value of taxable property in the City. The City's payable taxable market value is $301,196,200; of which $752,990 is 1/4 of 1%. This Issue is well within the statutory limits. Appendix II is our recommended maturity schedule for the certificates. The certificates will be dated April 1, 1990 and mature each February 1, 1992 through 1995. Column 4 represents the interest rates at the current market and are subject to change between now and the sale date. Column 6 is the total principal and interest, and Column 7 represents the statutory required 105% overlevy. The first interest payment, in the estimated amount of $16,000 due February 1, 1991 will be made from a temporary transfer of funds on hand which will later be reimbursed from the • Indiana Office: Kansas Office: Wisconsin Office: 135 North Pennsylvania Street 6800 College Boulevard 500 Elm Grove Road Suite 2015 Suite 600 Suite 101 Indianapolis, IN 46204.2498 Overland Park, KS 66211.1533 Elm Grove, WI 53122.0037 317.684.6000 913.345.8062 414.782.8222 Fax: 317.684.6004 Fax: 913345.1770 Fax: 414.782.2904