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<br /> <br /> <br /> <br />City of Elk River, Minnesota <br />Pre-Sale Summary for Issuance of Bonds <br /> <br />$5,225,000 General Obligation Capital Improvement Plan and Equipment Bonds, Series 2021A <br />The City Council has under consideration the issuance of bonds to finance (i) a capital improvement identified in the <br />City’s 2020-2025 Capital Improvement Plan (the “Capital Improvement Plan Portion”); and the purchase of various <br />capital equipment (the “Equipment Portion). Together the Capital Improvement Plan Portion and the Equipment <br />Portion are referred to as (the “Bonds”). 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 /> <br />March 15, 2021 Council sets sale date and terms <br />Week of April 5, 2021 Rating conference is conducted <br />April 19, 2021, 10:30 a.m. Competitive proposals are received <br />April 19, 2021, 6:30 p.m. Council considers award of the Bonds <br />May 20, 2021 Proceeds are received <br /> <br />RATING: An application will be made to S&P Global Ratings (S&P) for a rating on the Bonds. The <br />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 (“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.: 0894.137_1723822 Date: March 11, 2021