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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 20th year for general <br /> obligation bonds (the BBI 20 Bond Index) and the 301h year for revenue bonds (the BBI 25 <br /> Bond Index). The following chart illustrates these two indices over the past five years. <br /> BBII 25-bond(Revenue)and 20-bond(G.O.) Rates for 5 Years <br /> Ending 1/2/2014 <br /> 6.5% --- 68125 Bond <br /> BBI 20 Bond <br /> 102014 <br /> 6.0% 25 bond:5.39% <br /> 1'Ia1 1� <br /> 20 bond:4.75% <br /> 5.5% <br /> 1 �r �a 1 •i11 <br /> i <br /> l� P <br /> 4.5% <br /> •r <br /> 4.0% _ <br /> 3.5% <br /> 3.{1% <br /> 'p! Q� "�° <br /> C) tip°� tiQ^ 10 q �°,t �ti°���°1 °yf��°y���° °' ti°g �° , �° <br /> 00 o <br /> 00 N <br /> o r,: Dates Prepared by Springsted Incorporated <br /> z i- <br /> >, ca <br /> 1 Springsted <br />