4.1. SR 08-27-2001 - Laserfiche WebLink

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Bond Sale Report OTHER CONSIDERATIONS Bank Qualified Bonds We anticipate that the City (in combination with any subordinate taxing jurisdictions or debt issued in the City's name by 501 (c)3 corporations) will not issue more than a total of $10,000,000 in tax-exempt debt during this calendar year. This will allow the Bonds to be designated as bank qualified. Bank qualified status broadens the market and achieves lower interest rates. Arbitrage Rebate: Since the City does not anticipate issuing more than $5,000,000 in tax-exempt bonds in this calendar year, the Bonds qualify for the small issuer exemption from arbitrage rebate. Ongoing: This exemption from rebate does not eliminate the need to comply with other arbitrage regulations governing the investment of bond proceeds and debt service funds. In particular, the City should become familiar with the requirements for maintaining a "bona fide" debt and the potential need to restrict the investment of monies in the debt service fund. These requirements will be explained in the bond record book received following closing. Global Book Entry The Bonds will be global book entry. As "paper less" bonds, you will avoid the costs of bond printing and annual registrar charges. The City will designate a Paying Agent for the issue. The Paying Agent will invoice you for the interest semi-annually and on an annual basis for the principal coming due. You will be charged only for paying agent/transfer agent services provided by the bank. Rating Moody's Investors Service will be asked to rate this issue. The City currently has an "A3" rating on its outstanding general obligation bonds. Ehlers will work with City staffto prepare and conduct the rating review for this issue. Continuing Disclosure Regulations of the Securities and Exchange Commission on the continuing disclosure of municipal securities apply to long-term securities with an aggregate principal amount of $1,000,000 or more. Since aggregate amount of this issue is over $1,000,000 and the City has more than $10,000,000 in total municipal obligations outstanding, you will be obligated to comply with Full Continuing Disclosure requirements as required by paragraph (b)(5) of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the Securities Exchange Act of 1934. You will be required to provide certain financial information and operating data relating to the Bonds annually and to provide notices of the occurrence of certain material events. In preparing for the sale of the Bonds, Ehlers will work with Staffand Bond Counsel to draft the certificate that describes the requirements for continuing disclosure related to this issue. Page 5