Laserfiche WebLink
■ _-EIiu - <br />Debt Issuance ServiceV <br />Presale Report <br />City of St. Anthony, Minnesota <br />November 13, 2012 <br />Page 2 <br />City. <br />Method of Sale/Placement: <br />In order to obtain the lowest interest cost to the City, we will solicit <br />competitive bids for purchase of the Bonds from local banks in your <br />area and regional underwriters. <br />We have included an allowance for discount bidding equal to 1.0% of <br />the principal amount of the issue. The discount is treated as an <br />interest item and provides the underwriter with all or a portion of its <br />compensation in the transaction. <br />If the Bonds are purchased at a price greater than the minimum bid <br />amount (maximum discount), the unused allowance will be used to <br />lower your borrowing amount. <br />Review of Existing Debt: <br />We have reviewed all outstanding indebtedness for the City and find <br />that the 2008A Bonds callable on February 1, 2015 provide the City <br />with an opportunity for savings. We will discuss the opportunity in <br />2013 if the City wants to refinance. <br />Continuing Disclosure: <br />Because the City has more than $10,000,000 in outstanding debt <br />(including this issue) and this issue is over $1;000,000, the City will <br />be agreeing to provide certain updated Annual Financial Information <br />and its Audited Financial Statement annually as well as providing <br />notices of the occurrence of certain "material events" to the <br />Municipal Securities Rulemaking Board (the "MSRB"), as required <br />by rules of the Securities and Exchange Commission (SEC). The <br />City is already obligated to provide such reports for its existing <br />bonds, and has contracted with Ehlers to prepare and file the reports. <br />Arbitrage Monitoring: <br />Because the Bonds are tax-exempt securities/tax credit securities, the <br />Issuer must ensure compliance with certain Internal Revenue Service <br />(IRS) rules throughout the life of the issue. These rules apply to all <br />gross proceeds of the issue, including initial bond proceeds and <br />investment earnings in construction, escrow, debt service, and any <br />reserve funds. How issuers spend bond proceeds and how they track <br />interest earnings on funds (arbitrage/yield restriction compliance) are <br />common subjects of IRS inquiries. Your specific responsibilities will <br />be detailed in the Signature, No -Litigation, Arbitrage Certificate and <br />Purchase Price Receipt prepared by your Bond Attorney and provided <br />at closing. You have retained Ehlers to assist you with compliance <br />with these rules. <br />Presale Report <br />City of St. Anthony, Minnesota <br />November 13, 2012 <br />Page 2 <br />