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City of Elk River, Minnesota <br /> Recommendations for Issuance of Bonds <br /> $10,000,000 General Obligation Sewer Revenue Bonds, Series 20148 <br /> The City Council has under consideration the issuance of bonds to finance a portion of the construction of waste <br /> water facility improvements. 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 /> June 16, 2014 City Council sets sale date and terms <br /> July 8, 2014 Rating tour and conference are conducted <br /> July 21, 2014, 10:00 AM Competitive bids are received <br /> July 21, 2014, 6:00 PM City Council considers award of bonds <br /> August 21, 2014(est.) Proceeds are received <br /> RATING: An application will be made to Standard & Poor's Ratings Services for a rating on the <br /> Bonds. The City's general obligation debt is currently rated 'AA+' by S&P. <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 301h 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.O.) Rates for 5 Years <br /> Ending 6/5/2014 <br /> 6.5% ----BBI 25 Bond <br /> —BBI 20 Bond <br /> 6/5/2014 <br /> 6.0% 25 bond:4.79% <br /> 20 bond:4.26% <br /> 5.5% <br /> cc iy. <br /> .! ► <br /> 4.5% <br /> r ! <br /> 4.0% <br /> iAi <br /> 3.5% <br /> 3.0% <br /> 11� ^ ©O �ti O HO �ti O H^O �l O HO h�ti O4 a HO O h�ti O 4O a <br /> 0 0\ <br /> O\h�ti <br /> 0 <br /> Dates Prepared by Springsted Incorporated <br /> °O o <br /> N <br /> O <br /> Z <br /> 5pringsted <br />