|
PRELIMINARY OFFICIAL STATEMENT DATED AUGUST 9,2018
<br /> NEW ISSUE Moody's Rating: Requested
<br /> __ BANK QUALIFIED
<br /> 12. In t e opinion of Kennedy&Graven, Chartered,Bond Counsel for the Bonds, based on present federal and Minnesota laws, regulations,rulings and decisions
<br /> (w ich excludes any pending legislation which may have a retroactive effect),and assuming compliance with certain covenants,interest to be paid on the Bonds is
<br /> o N exc uded from gross income for federal income tax purposes and, to the same extent,from taxable net income of individuals, estates and trusts for Minnesota
<br /> , income purposes,and is not a preference item for purposes of computing the federal alternative minimum tax(although interest on the Bonds is included in adjusted
<br /> _ c ent earnings in calculating corporate alternative minimum taxable income for taxable years that began prior to January 1,2018)or the Minnesota alternative
<br /> wmi imum tax imposed on individuals, trusts,and estates. Such interest is subject to Minnesota franchise taxes on corporations(including financial institutions)
<br /> 9.
<br /> . o measured by income. No opinion will be expressed by Kennedy&Graven regarding other state or federal tax consequences caused by the receipt or accrual of
<br /> own int- est on the Bonds or arising with respect to ownership of the Bonds. The Bonds will be designated as "qualified tax-exempt obligations"for purposes of
<br /> " Sec On 265(b)(3)of the Internal Revenue Code of 1986,as amended,relating to the ability of financial institutions to deduct from income for federal income tax
<br /> pu poses,interest expense that is allocable to carrying and acquiring tax-exempt obligations.See"TAX EXEMPTION"and"OTHER FEDERAL AND STATE TAX
<br /> n CO'SIDERATIONS"herein.
<br /> $10,000,000*
<br /> o City of Elk River, Minnesota
<br /> s N Electric Revenue Bonds, Series 2018A
<br /> ao
<br /> (Book Entry Only)
<br /> T
<br /> 3
<br /> .o D.ted Date: Date of Delivery Interest Due: Each February 1 and August 1,
<br /> 3 .s commencing February 1,2019
<br /> R., T e Bonds(as defined herein)will mature August 1 in the years and amounts* as follows:
<br /> o T 2019 $260,000 2025 $235,000 2031 $285,000 2037 $350,000 2043 $445,000
<br /> w 2020 $210,000 2026 $240,000 2032 $295,000 2038 $365,000 2044 $460,000
<br /> O y 2021 $210,000 2027 $250,000 2033 $305,000 2039 $375,000 2045 $480,000
<br /> ' 2022 $215,000 2028 $255,000 2034 $315,000 2040 $390,000 2046 $500,000
<br /> O 3
<br /> S ,
<br /> : 2023 $225,000 2029 $265,000 2035 $325,000 2041 $410,000 2047 $525,000
<br /> 7d 8:1E
<br /> 2024 $230,000 2030 $275,000 2036 $335,000 2042 $425,000 2048 $545,000
<br /> o ti
<br /> ' T e City may elect on August 1, 2028 and on any day thereafter, to redeem Bonds due on or after August 1, 2029
<br /> t at . price of par plus accrued interest.
<br /> g o Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term
<br /> =
<br /> boi ds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued interest
<br /> to he date of redemption scheduled to conform to the respective maturity schedule set forth above.
<br /> 8 R
<br /> 7
<br /> The Bonds will be special obligations of the City of Elk River, Minnesota (the "City") payable solely from net
<br /> c0 e
<br /> o re enues of the electric system of the Elk River Municipal Utilities Commission (the "Commission") and shall not
<br /> co stitute a debt for which the full faith and credit or taxing powers of the City will be pledged. The proceeds of
<br /> the Bonds, along with available City funds, will be used to finance the remaining cost of acquisition of the
<br /> o Commission's membership interest in the Minnesota Municipal Power Agency (MMPA).
<br /> mo.`s
<br /> .2 a Proposals shall be for not less than $9,850,000 plus accrued interest, if any, on the total principal amount of the
<br /> .N 3 Bonds. Proposals shall specify rates in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for
<br /> a • ea h maturity as stated on the proposal must be 98.0% or greater. Following receipt of proposals, a good faith
<br /> deposit will be required to be delivered to the Issuer by the lowest bidder as described in the "Terms of Proposal"
<br /> he ein. Award of the Bonds will be made on the basis of True Interest Cost(TIC).
<br /> d N E
<br /> I T e Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the
<br /> ° na e of Cede& Co., as nominee of The Depository Trust Company ("DTC"). DTC will act as securities
<br /> depository for the Bonds. Individual purchases may be made in book entry form only, in the principal amount of
<br /> E $5,000 and integral multiples thereof. Investors will not receive physical certificates representing their interest in
<br /> ° the Bonds purchased. (See "Book Entry System" herein.) U.S. Bank National Association, Saint Paul, Minnesota
<br /> wil 1 serve as registrar(the "Registrar") for the Bonds. The Bonds will be available for delivery at DTC on or about
<br /> o September 26,2018.
<br /> bt
<br /> y
<br /> PROPOSALS RECEIVED: Wednesday,August 29,2018 until 9:30 A.M., Central Time
<br /> CONSIDERATION OF AWARD: Commission meeting commencing at 3:00 P.M., Central Time on
<br /> s a Wednesday,August 29,2018
<br /> Hoo
<br /> -
<br /> a D Further information may be obtained from SPRINGSTED Incorporated,
<br /> S p r n q s t e d Municipal Advisor to the City, 380 Jackson Street, Suite 300, Saint Paul,
<br /> H u.? N Minnesota 55101-2887(651)223-3000.
<br /> * Preliminary;subject to change.
<br /> 1
<br />
|