CC PACKET 10272009 - Laserfiche WebLink

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Debt Issuance Servicus ----._...... _-.._-.._ Details of Proposed debt Proposed Issue: $1,700,000 General Obligation Refunding Bonds, Series 2009B Purpose: The 2001A GO Abatement Bonds are a current refunding callable on February 1, 2009. The Bonds were originally issued in the amount of $625,000 with remaining rates ranging from 4.25% to 4.8%. The new principal amount will be $320,000 with the same term (ending on February 1, 2016) and the new rates should be 1.15% to 2.75%. The Bonds are being issued pursuant to Minnesota Statues, Chapter 469 and 475. The 2001B GO Improvement Bonds are a current refunding callable on February 1, 2010. The Bonds were originally issued in the amount of $1,160,000 with remaining rates ranging from 4.30% to 5.0%. The Bonds will be reduced by $58,000 from cash on hand as required by IRS regulations. The new principal amount will be $540,000 with the same term (ending on February 1, 2017) and the new rates should be 1.15% to 3.00%. The Bonds are being issued pursuant to Minnesota Statues, Chapter 475. The 2002A GO Improvement Bonds are a current refunding callable on February 1, 2010. The Bonds were originally issued in the amount of $1,500,000 with remaining rates ranging from 4.30% to 5.0%. The Bonds will be reduced by $57,000 from cash on hand as required by IRS regulations. The new principal amount will be $840,000 with the same term (ending on February 1, 2018) and the new rates should be 1.15% to 3.25%. The Bonds are being issued pursuant to Minnesota Statues, Chapter 475. Funding Source(s): These Bonds will be paid from the same source of payment originally pledged to them (tax abatement for the 2001A and special assessments and tax levy for the 2001B and 2002A). Arbitrage Monitoring: With increasing short-term investment rates, IRS rules regarding the amount of interest that the City may earn on bond proceeds must be taken into consideration. The City will need to keep its debt service funds within IRS parameters to avoid penalties for carrying too high of a balance during the life of the issue. Rating: It is anticipated that Standard & Poor's will rate the Bonds a "AA'. Bank Qualification: Because the City is issuing less than $30,000,000 in the calendar year, the City will be able to designate the Bonds as "bank qualified" obligations. Bank qualified status broadens the market for the Bonds, which can result. in lower interest rates. Presale Report October 8, 2009 Page 2