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City of Elk River, Minnesota <br /> Recommendations for Issuance of Bonds <br /> $2,125,000 Electric Revenue Refunding Bonds, Series 2014 <br /> The City Council and Utilities Commission have under consideration the issuance of bonds to refund an outstanding <br /> series of electric revenue bonds. This document provides information relative to the proposed issuance. <br /> KEY EVENTS: The following summary schedule includes the timing of some of the key events that will <br /> occur relative to the bond issuance. <br /> January 14,2014 Utilities Commission sets sale date and terms <br /> January 21,2014 City Council sets sale date and terms and authorizes <br /> Utilities Commission to award Bonds <br /> Week of January 27,2014 Rating conference is conducted <br /> February 11,2014,10:00 AM Competitive bids are received <br /> February 11,2014,3:30 PM Utilities Commission considers award of Bonds <br /> March 13, 2014(est.) Proceeds are received <br /> RATING: An application will be made for a rating on the Bonds. The City's electric revenue supported <br /> debt is currently rated 'Aa3' by Moody's Investors Service. The City and the Utility are in <br /> discussions with Springsted to determine which is in the best interest of both entities - to <br /> have the Bonds rated by Moody's or by Standard&Poor's Ratings Services. <br /> THE MARKET: Performance of the tax-exempt market is often measured by the Bond Buyer's Index("BBI") <br /> which measures the yield of high grade municipal bonds in the 201h year for general <br /> obligation bonds (the BBI 20 Bond Index) and the 30th year for revenue bonds (the BBI 25 <br /> Bond Index). The following chart illustrates these two indices over the past five years. <br /> BBI 25-bond(Revenue)and 20-bond(G.0.) Rates for 5 Years <br /> Ending 1/2/2014 <br /> ----BBI 25 Bond <br /> 6.5% <br /> —BB120 Bond <br /> 1/2/2014 <br /> 6.0% ...._.. _... .. __.. ....__. 26 band:5.69% .. .. <br /> 20 bond:4.75% <br /> Yip•L <br /> 11. <br /> Y• ` _._ <br /> 5.5% ( <br /> r.. <br /> r^/ <br /> Ir 4.5% • r, r <br /> ,4\ nr• <br /> ,.,\\ oy.,` p9 ,,{L'.O A.�o ^o ^s .�% ,��),./.14,\ ,pry,,\ 611 A.Z49,,\ ,9 4er ca0Sr (2(1517 CIF <br /> g <br /> CO N <br /> o Dates Prepared by Springsted Incorporated <br /> Z <br /> Springsted <br /> 67 <br /> • <br />