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<br /> <br /> <br /> <br /> <br />City of Elk River, Minnesota <br />Pre-Sale Summary for Issuance of Bonds <br />$14,460,000 Electric Revenue Bonds, Series 2021B <br />The City Council and Utilities Commission have under consideration the issuance of bonds (the “Bonds”) to finance <br />the construction of a field house facility to accommodate service trucks, inventory, and offices. This document <br />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 /> <br />March 9, 2021 Utilities Commission sets sale date and terms <br />March 15, 2021 City Council sets sale date and terms and authorizes <br />Utilities Commission to award the Bonds <br />Week of March 29, 2021 Rating conference is conducted <br />April 13, 2021, 10:30 a.m. Competitive bids are received <br />April 13, 2021, 3:30 p.m. Utilities Commission considers award of the Bonds <br />May 13, 2021 Proceeds are received <br /> <br />RATING: An application will be made to Moody’s Investors Service (Moody’s) for a rating on the <br />Bonds. The 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 rated Aa2 by Moody’s or AA by S&P (the BBI 20-Bond GO Index) and the <br />30th year for revenue bonds rated A1 by Moody’s or A+ by S&P (the BBI 25-Bond Revenue <br />Index). The following chart illustrates these two indices over the past five years: <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> <br /> Study No.: 0894.138_1723355 Date: March 4, 2021