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PRELIMINARY OFFICIAL STATEMENT DATEDMARCH 30, 2021
<br />NEWISSUEMoody’sRating: Requested
<br />NOT BANK QUALIFIED
<br />In the opinion of Kennedy & Graven, Chartered, Bond Counsel for the Series 2021B Bonds, based on present federal and Minnesota laws, regulations, rulings and decisions
<br />isdiction in
<br />(which excludes any pending legislation which may have a retroactive effect), and assuming compliance with certain covenants, interest to be paid on the Series 2021B Bonds is
<br />excluded from gross income for federal income tax purposes and, to the same extent, from taxable net income of individuals, estates and trusts for Minnesota income purposes,
<br />and is not a preference item for purposes of computing the federal alternative minimum tax or the Minnesota alternative minimum tax imposed on individuals, trusts, and estates.
<br />Such interest is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income. No opinion will be expressed by Kennedy & Graven,
<br />Charteredregarding other state or federal tax consequences caused by the receipt or accrual of interest on the Series 2021B Bonds or arising with respect to ownership of the
<br />Series 2021B Bonds. The Series 2021B Bonds will not be designated as "qualified tax-exempt obligations" for purposes of Section265(b)(3) of the Internal Revenue Code of
<br />1986, as amended, relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and
<br />acquiring tax-exempt obligations. See "TAX EXEMPTION" and "OTHER FEDERAL AND STATE TAX CONSIDERATIONS" herein.
<br />$12,620,000*
<br />City of Elk River, Minnesota
<br />Electric Revenue Bonds, Series 2021B
<br />underwriting information is subject to completion
<br />(Book Entry Only)
<br />Dated Date: Date of DeliveryInterest Due: Each February 1 and August 1,
<br /> commencingFebruary 1, 2022
<br />The Series 2021B Bonds (as defined herein)will mature August 1 in the years and amounts* as follows:
<br />2022$290,0002028$355,0002034$390,0002040$435,0002046$500,000
<br />2023$345,0002029$360,0002035$395,0002041$445,0002047$510,000
<br />2024$345,0002030$365,0002036$400,0002042$455,0002048$520,000
<br />2025$350,0002031$370,0002037$410,0002043$465,0002049$535,000
<br />on of an offer to buy, nor shall there be any sale of these securities in any jur
<br />2026$350,0002032$375,0002038$420,0002044$475,0002050$550,000
<br />any such jurisdiction.
<br />2027$355,0002033$380,0002039$425,0002045$485,0002051$565,000
<br />The City may elect on August1, 2031 and on any day thereafter, to redeem the Series 2021B Bonds due on or after August1,
<br />2032at a price of par plus accrued interest.
<br />to be final as of the date hereof; however, the pricing and
<br />Proposals for the Series 2021B Bondsmay contain a maturity schedule providing for a combination of serial bonds and term
<br />bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest to thedate
<br />of redemption scheduled to conform to therespectivematurity schedule set forth above.
<br />The Series 2021B Bonds will be special obligations of the City of Elk River, Minnesota (the “City”) payable solely from net
<br />revenues of the electric system of the Elk River Municipal Utilities Commission (the “Commission”) and shall not constitute a
<br />debt for which the full faith and credit or taxing powers of the City will be pledged. The proceeds of the Series 2021B Bonds,
<br />will be used to finance the construction of a field house facility to house service trucks, inventory and offices.
<br />Proposals shall be for not less than $12,418,080plus accrued interest, if any, on the total principal amount of the Series 2021B
<br />Bonds. Proposals shall specify rates in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity
<br />as stated on the proposal must be 98.0% or greater. Following receipt of proposals, a good faith deposit will be required to be
<br />delivered to the Cityby the lowest bidder as described in the “Terms of Proposal” herein. Award of the Series 2021B Bonds
<br />will be made on the basis of True Interest Cost (TIC).
<br />tatement is deemed by the City and the Commission
<br />The Series 2021B Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the
<br />name of Cede& Co., as nominee of The Depository Trust Company (“DTC”). DTC will act as securities depository for the
<br />Series 2021BBonds. Individual purchases may be made in book entry form only, in the principal amount of $5,000 and integral
<br />multiples thereof. Investors will not receive physical certificates representing their interest in the Series 2021B Bonds purchased.
<br />(See “Book Entry System” herein.) U.S. Bank National Association, Saint Paul, Minnesota will serve as registrar (the
<br />“Registrar”) for the Series 2021B Bonds. The Series 2021B Bondswill be available for delivery at DTC on or about May13,
<br />2021.
<br />PROPOSALS RECEIVED: Tuesday, April 13, 2021 until 10:30 A.M., Central Time
<br />CONSIDERATION OF AWARD: Commission meeting commencing at 3:30 P.M., Central Time on
<br />Tuesday, April 13, 2021
<br />Further information may be obtained from Baker Tilly Municipal Advisors,
<br />LLC, 380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101-2887
<br />(651)223-3000.
<br />The information contained in this Preliminary Official Sor amendment. Under no circumstances shall this Preliminary Official Statement constitute an offer to sell or the solicitatiwhich
<br /> such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of
<br />* Preliminary; subject to change.
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