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<br />OFFICIAL STATEMENT DATED OCTOBER 4, 1999
<br />
<br />Rating: Requested from Moody's
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<br />Investors Service
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<br />the opinion of Briggs and Morgan, Professional Association, Bond Counsel, based on present federal and Minnesota laws, regulations, ruUngs and
<br />;;isions at the time of the issuance and delivery of the Bonds to the original purchaser thereof, the interest on the Bonds is excluded from gross income for
<br />united States income tax purposes and is excluded, to the same extent, from both gross income and taxable net income for State of Minnesota income tax
<br />purposes (other than Minnesota franchise taxes measured by income and imposed on corporations and financial institutions), and is not an item of tax
<br />preference for purposes of federal altemative minimum tax imposed on individuals and corporations or the Minnesota altemative minimum tax applicable to
<br />individuals, estates or trusts; provided, however, that for the purpose of computing the federal altemative minimum tax imAOsed on corporations, such
<br />interest is taken into account in determining adjusted current eamings. No opinion wiD be expressed by Bond Counsel regardmg other State or federal tax
<br />consequences caused by the receipt or accrual of interest on the Bonds or arising with respect to ownership of the Bonds. See .Tax Exemption. and .Other
<br />Federal Tax Considerations. herein.
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<br />NEW ISSUE
<br />
<br />$575,000*
<br />City of Elk River, Minnesota
<br />General Obligation Improvement Refunding Bonds, Series 19998
<br />(Book Entry Only)
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<br />Dated Date: November 1,1999
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<br />Interest Due: Each February 1 and August 1,
<br />commencing August 1, 2000
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<br />The Bonds will mature each February 1 as follows:
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<br />2002 $50,000 2005 $85,000
<br />2003 $65,000 2006 $75,000
<br />2004 $80,000 2007 $65,000
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<br />* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount
<br />of the Bonds offered for sale. Any such increase or reduction will be in a total amount not to exceed $15,000 and will
<br />be made in multiples of $5, 000 in any of the maturities. In the event the principal amount of the Bonds is increased or
<br />reduced, any premium offered or any discount taken by the successful bidder will be increased or reduced by a
<br />percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced.
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<br />fOposals for the Bonds may contail) a maturity schedule providing for a combination of serial bonds and term bonds,
<br />..,rovided that no serial bond may mature on or after the first mandatory sinking fund redemption date of any term bond.
<br />All term bonds shall be subject to mandatory sinking fund redemption and must conform to the maturity schedule set
<br />forth above at a price of par plus accrued interest to the date of redemption.
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<br />2008
<br />2009
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<br />$55,000
<br />$45,000
<br />
<br />2010
<br />2011
<br />
<br />$35,000
<br />$20,000
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<br />The City may elect on February 1, 2008, and on any day thereafter, to prepay the Bonds due on or after
<br />February 1, 2009 at a price of par plus accrued interest.
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<br />The Bonds will be general obligations of the City for which the City pledges its full faith and credit and power to levy
<br />direct general ad valorem taxes. In addition, the City will pledge special assessments against benefited property
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<br />Proposals shall be for not less than $569,825 and accrued interest on the total principal amount of the Bonds. Proposals
<br />shall be accompanied by a good faith deposit in the form of a certified or cashiers check or Financial Surety Bond,
<br />payable to the order of the City in the amount of $5,750. Proposals shall specify rates in integral multiples of 5/100 or
<br />1/8 of 1%. Rates must be designated in ascending order. The Bonds will be awarded on a True Interest Cost (TIC)
<br />basis.
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<br />The Bonds will be bank-qualified, tax-exempt obligations pursuant to Section 265(b)(3) of the Internal Revenue Code of
<br />1986, as amended, and will not be subject to the alternative minimum tax for individuals.
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<br />The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the name of
<br />Cede & Co., as nominee of The Depository Trust Company C'DTC'} DTC will act as securities depository of the Bonds.
<br />Individual purchases may be made in book-entry form only, in the principal amount of $5,000 and integral multiples
<br />thereof. Purchasers will not receive certificates representing their interest in the Bonds purchased. . (See "Book Entry
<br />System" herein.) U.S. Bank Trust National Association will serve as registrar and the City will pay for the registration
<br />services. Certificates will be available for delivery at DTC within 40 days after award.
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<br />PROPOSALS RECEIVED: October 18, 1999 (Monday) until 12:00 Noon, Central Time
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<br />AWARD: October 18,1999 (Monday) at 6:00 P.M., Central Time
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<br />~
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<br />SPRINGSTED
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<br />Further information may be obtained from SPRINGSTED
<br />Incorporated, Financial Advisor to the Issuer, 85 East
<br />Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2887
<br />(651) 223-3000
<br />
<br />Public Finance Advisors
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