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MMUA <br /> MINNESOTA MUNICIPAL UTLLITIES ASSOCIATION <br /> MMUA Finance Program <br /> To assist municipal electric, water and wastewater utilities throughout the State <br /> of Minnesota, the Minnesota Municipal Utilities Association is developing a <br /> program to provide low-cost financing to its members. Tax-exempt bonds will be <br /> issued by the Midwest Consortium of Municipal Utilities, a nonprofit organization <br /> being created by MMUA members. The bond proceeds will fund the financing <br /> program, from which individual members can then borrow within one year after <br /> the bond issue date (expected to be in June 2004). <br /> The MMUA Finance Program will make municipal utility financing more <br /> affordable and easy and have a number of attractive features, including: <br /> • Flexible amounts from $200,000 or less to $10 million or more <br /> • Terms up to 30 years <br /> • Flexible repayment <br /> • No prepayment penalty <br /> > Fixed or variable rates <br /> • Simple application <br /> > Low transaction costs <br /> • Insulation of city from risk of bond pool default <br /> • Borrowing through loans or leases <br /> The MMUA Financing Program takes advantage of the economies of scale <br /> offered through pooled financing, which allows municipal utilities to: <br /> • Reduce individual cities' transaction costs by sharing bond issuance costs <br /> > Participate in bond issues of sufficient size to achieve the lowest cost of <br /> borrowing through favorable pricing <br /> Funds will be available for municipal utility purposes, including: <br /> • New construction <br /> • Equipment <br /> Refinancing of existing debt <br /> For additional information on the MMUA Finance Program, contact MMUA. <br />