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EXHIBIT A . OFFICIAL TERMS OF OFFERING $850,000 CITY OF ELK RIVER, MINNESOTA GEf'.ERAL OBLIGATION TAX INCREMENT BONDS, SERIES I985A Sealed bids for the Bonds will be opened by the City Administrator or his designee on Monday, August 12, 1985, at 1:00 P.M., Central Time, at the office of SPRINGSTED Incorporated, 800 Osborn Building, Saint Paul, Minnesota. Consideration for award of the Bonds will be by the City Council at 7:30 P.M.f Central Time, of the same day. DET AILS OF THE BONDS The Bonds will be dated September I, 1985 and will bear interest payable on February I and August I of each year, commencing August I, 1986. Interest will be computed upon the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the MSRB. The Bonds will be issued in integral multiples of $5,000, as requested by the Purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the Registrar and interest on each Bond will be payable by check or draft of the Registrar mailed the last business day prior to the interest payment date to the registered holder thereof at his address as it appears on the books of the Registrar as of the 15th of the calendar month next preceding the interest payment. The Bonds will mature February I in the amounts and years as follows: , $30,000 $55,000 $60,000 1988 1989 1990 $65,000 $70,000 $75,000 1991 1992 1993 $ 80,000 $ 85,000 $110,000 1994 1995 1996 $110,000 $110,000 1997 1998 The City may elect on February I, 1994, and on any interest payment date thereafter, to prepay Bonds due on or after February I, 1995. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date will be prepaid first. If only part of the Bonds having a common maturity date are called for prepayment the specific Bonds to be prepaid will be chosen by lot by the Registrar. All prepayments shall be at a price of par and accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge tax increment income from the City's Tax Increment Financing District No. I. The proceeds will be used to defray the expense of acquiring and constructing a new water tower. TYPE OF BID A sealed bid for not less than $833,400 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for the opening of bids. Also prior to the time set for bid opening, a certified or cashier's check in the amount of $8,500, payable to the order of the City, shall have been filed with the undersigned or SPRINGSTED Incorporated, the City's Financial Advisor. No bid will be considered for which said check has not been filed. The check of the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply with the accepted bid. The City will deposit the check of the . Purchaser, the amount of which will be deducted at settlement. No bid shall be withdrawn after the time set for opening bids, unless the meeting of the City scheduled for consideration of the bids is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates offered by Bidders shall be in integral multiples of 5/ I 00 or 1/8 of I %. No rate for