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<br />  <br /> <br />Presale Report <br />City of St. Anthony, Minnesota <br />March 27, 2018 <br />Page 1 <br /> <br />Executive Summary of Proposed Debt <br /> <br />Proposed Issue: $2,705,000 General Obligation Improvement Bonds, Series 2018A <br />Purposes: The purpose of the proposed issue is to finance the 2018 road reconstruction <br />projects in the City. <br />Debt service will be paid from tax levy and special assessments. The City intends <br />to levy a total of $649,900 in special assessments to benefitting property owners, <br />of which $64,990 (10%) is anticipated to be collected in pre-paid assessments (the <br />pre-paid assessments reduced the Bond amount accordingly). The remaining <br />$584,910 of special assessments will be collected in years 2019 to 2033 at a rate <br />of 2% over the True Interest Costs of the Bonds. Annual assessments are paid on <br />an equal principal basis. <br />Authority: The Bonds are being issued pursuant to Minnesota Statutes, Chapter(s): <br /> 429 – Improvement Bonds <br /> 475 – General Bonding Authority <br /> Because the City is assessing at least 20% of the project costs, the Bonds can be <br />a general obligation without a referendum and will not count against the City’s <br />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 in the years 2020 through 2034. Interest is payable every six <br />months beginning February 1, 2019. We have capitalized interest in the amount <br />of approximately $54,466 to pay interest costs until adequate tax and special <br />assessment funds are received. <br />The Bonds maturing on and after February 1, 2027 will be subject to prepayment <br />at the discretion of the City on February 1, 2026 or any date 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 “bank <br />qualified” obligations. Bank qualified status broadens the market for the Bonds, <br />which can result in lower interest rates. <br />Rating: The City’s most recent bond issues were rated AA by Standard & Poor’s. The <br />City will request a new rating for the Bonds. <br />If the winning bidder on the Bonds elects to purchase bond insurance, the rating <br />for the issue may be higher than the City’s bond rating in the event that the bond <br />rating of the insurer is higher than that of the City.  <br />38