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Debt Issuance Services <br />~~I -{~~ <br />City of Elk River, Minnesota <br />Results of Bond Sale -February 21, 2012 <br />$6,975,000 <br />General Obligation Capital Improvement Plan Bonds, Series 2012A <br />Purpose: To finance a public works facility expansion and renovation. <br />Rating: Standard & Poor's Credit Marke ts "AA+" <br />Number of Bids: 8 <br />Low Bidder: Morgan Keegan, Memphis, TN <br />True Interest Cost: 2.1852% <br />Interest Savings from Low Bid High Bid High/Low Difference <br />Lowest to Highest Bid: 2.2129% 2.4469% $205,192 <br />Summary of Results: Projected Results of Sale Difference <br />Principal Amount #: $7,300,000 $6,975,000 -$325,000 <br />Issuer Equity Contribution: $2,750,000 $2,750,000 $0 <br />Net Proceeds: $9,700,000 $9,600,154 -$99,846 <br />Reoffering Premium: $0 $84,822 $84,822 <br />Discount Allowance: $73,000 $39,409 -$33,591 <br />True Interest Cost: 3.47% 2.1852% -1.28% <br />Capitalized Interest: $194,878 $127,739 -$67,139 <br />Cost of Issuance: $79,750 $42,520 -$37,230 <br />Coupon Rates: 1.15% - 3.90% 1.00% - 2.50% <br />Closing Date: March 15, 2012 <br />Council Action: A Resolution Awarding The Sale Of $6,975,000 General Obligation <br />Capital Improvement Plan Bonds, Series 2012B Fixing Their Form <br />And Specifications; Directing Their Execution And Delivery; <br />And Providing For Their Payment <br />Attachments: Bid Tabulation <br />• Updated Debt Service Schedules <br />• Bond Resolution (Distributed in Council Packets) <br />"` The size of the bond issue changed because construction cost estimates were lowered by $100,000 by the City and <br />due to a premium bid, lower underwriter fees/discount, lower costs of issuance and lower capitalized interest. <br />E H L E RS Minnesota phone 651-697-8500 3060 Centre Pointe i7~ive <br />LEADERS IN PUBLIC FINANCE Offices also in Wisconsin and Illinois faX 651-697-8555 ROSevl~ie, MN 5511 3-11 22 <br />