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City of Elk River, Minnesota <br />Pre-Sale Summaryfor Issuance of Bonds <br />$9,895,000 General Obligation Capital Improvement Plan Bonds,Series2020A <br />(the “2020A Bonds”) <br />$5,970,000 General Obligation Capital Improvement Plan Refunding Bonds, Series 2020B <br />(the “2020B Bonds” <br />$7,295,000 Taxable General Obligation Sewer Revenue Refunding Bonds, Series 2020C <br />(the “2020C Bonds”) <br />Collectively the 2020A Bonds, the 2020B Bonds and the 2020C Bonds are referred to as the “Bonds” <br />The City Council has under consideration the issuance of the(i)2020A Bonds to finance various capital <br />improvements identified in the City’s 2020-2025 Capital Improvement Plan;(ii)the 2020B Bonds tocurrent refund <br />two outstanding bond issuesof the City;and (iii)the 2020C Bonds toadvance refund one outstanding bond issue <br />of the City. 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 />November 2, 2020Councilholds Public Hearing on the 2020A Bonds <br />and setssale date and termsfor all series of Bonds <br />Week ofNovember 23,2020Rating conferenceis conducted <br />December 7,2020, 10:30a.m.Competitive proposals are received <br />December 7,2020,6:30p.m.Council considers award of the Bonds <br />December 29,2020Proceeds are received <br />February 1, 2021Redemption of the 2010A and 2012A Bonds <br />RATING:An applicationwill be made toS&PGlobal Ratings(S&P)for a ratingon the Bonds. <br />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 <br />th <br />(“BBI”) which measures the yield of high grade municipal bonds in the 20year for <br />general obligation bondsrated Aa2 by Moody’s or AA by S&P (the BBI 20-Bond GO <br />th <br />Index)and the 30year for revenue bondsrated A1 by Moody’s or A+ by S&P (the BBI <br />25-Bond Revenue Index). The following chart illustrates these two indices over the past <br />five years: <br />_1582775 <br />.135.136 <br />894.134 <br />: October 29, 2020 <br />Study No.: 0Date <br />