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City of Elk River, Minnesota <br /> Recommendations for Issuance of Bonds <br /> $10,000,000 Electric Revenue Bonds, Series 2016A <br /> $1,460,000 Electric Revenue Refunding Bonds, Series 2016B <br /> The City Council and Utilities Commission have under consideration the issuance of bonds to (i)finance the Utility's <br /> buy-in to become a member of the Minnesota Municipal Power Agency(the"Series 2016A Bonds")and(ii)refund an <br /> outstanding series of electric revenue bonds (the "Series 2016B Bonds"). This document provides information <br /> 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 /> May 10,2016 Utilities Commission sets sale date and terms <br /> May 16,2016 City Council sets sale date and terms and authorizes <br /> .--A,1„ Utilities Commission to award Bonds <br /> Week of May 30,2016 Rating conference is conducted <br /> On or about June 10,2016 Rating received <br /> June 14,2016, 10:00 AM Competitive bids are received <br /> June 14,2016,3:30 PM Utilities Commission considers award of Bonds <br /> { <br /> July 14,2016(est.) Proceeds are received <br /> 4 RATING: An application will be made to Moody's Investors Service for a rating on the Bonds. The <br /> ,, City's electric revenue supported debt is currently rated'Aa3'by Moody's. <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 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.O.)Rates for 5 Years Ending <br /> 4/28/2016 <br /> 6.5% ----BBI 25 Bond <br /> -BBI20 Bond <br /> 4/25/2015 <br /> 6.0% 25 bond:371% <br /> 20 bond:3.32% <br /> 5.5% <br /> to 5 0% at.� i <br /> 124.5% <br /> 4.5% w. f 4 %.1 Y <br /> 4.0% , -\ <br /> 3.5%eeeeee <br /> el e <br /> cv ���ti� �ti tti� tti OG ry�ti t�b��i���'v ti0�ry�`1:v��t�tti���ti�� �'� .1P���\ry��ti 0P .RP <br /> a 1 ,z41' ^ NG 1 O N a 1 ,‘d N a 1 ,‘o a 1 ,\o <br /> 44 cc Dates <br /> .: Prepared by Springsted Incorporated <br /> O <br /> Z N <br /> >. <br /> (13 <br /> Springsted <br /> 166 <br />