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City of Elk River, Minnesota <br /> Recommendations for Issuance of Bonds <br /> $10,000,000 Electric Revenue Bonds, Series 2018A <br /> The City Council and Utilities Commission have under consideration the issuance of bonds (the "Bonds")to finance <br /> the Elk River Municipal Utilities's (the "Utility") buy-in to become a member of the Minnesota Municipal Power <br /> Agency. 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 occur <br /> relative to the bond issuance. <br /> July 10, 2018 Utilities Commission sets sale date and terms <br /> July 16, 2018 City Council sets sale date and terms and authorizes <br /> Utilities Commission to award Bonds <br /> Week of August 13, 2018 Rating conference is conducted <br /> August 29,2018,9:30 AM Competitive bids are received <br /> August 29,2018,3:00 PM Utilities Commission considers award of Bonds <br /> September 26, 2018 Proceeds are received <br /> September 28, 2018 Payment to MMPA <br /> RATING: An application will be made to Moody's Investors Service for a rating on the Bonds. The City's <br /> electric revenue supported debt is currently rated 'Aa3' by Moody's. <br /> THE MARKET: General performance of the tax-exempt market is often measured by the Bond Buyer's Index <br /> ("BBI") 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 <br /> Revenue Bond Index). The following chart illustrates these two indices over the past five <br /> years. <br /> BBI 20-bond(G.O.)and Revenue Indices for 5 Years Ending <br /> 6/28/2018 <br /> 6.0% <br /> 6/28/2018 <br /> Revenue'. 4 36% <br /> 5.0% 20 bond'.3.87% <br /> fr as- <br /> x <br /> —BBI Revenue"Bond <br /> —BBI 20 Bond <br /> 3.0% <br /> 2.0% <br /> O^O O^O D e e O�� ^1c Ory O,3 ^y �y ^6 O^83 O^O ^O O.1 O�� O, <c ^O e <br /> Data Source:The Bond Buyer <br /> coco <br /> O <br /> . co <br /> Z N <br /> T <br /> Springsted <br /> 50 <br />