Laserfiche WebLink
<br /> - ---- ----------- <br /> . <br /> OTHER CONSIDERATIONS . <br /> Following is a summary of key factors in the finance plan: <br /> . We recommend the following call feature: <br /> Bonds maturing February I, 2006 and thereafter will be subject to prepayment <br /> at the discretion of the City on February I, 2005. <br /> . We anticipate that the City (in combination with any subordinate taxing <br /> jurisdictions or debt issued in the City's name by SOI(c)3 corporations) will not <br /> issue more than a total of $10,000,000 in tax-exempt debt during this calendar <br /> year. This will allow the Bonds to be designated as bank qualified. Bank qualified <br /> status broadens the market and achieves lower interest rates. <br /> . Because the City is not issuing more than $5,000,000 in tax-exempt obligations <br /> during calendar year 1998, the debt will qualify for the small issuer exemption <br /> from arbitrage rebate. <br /> . The Bonds will be global book fntlY, As "paperless" bonds, you will avoid the costs <br /> of bond printing and the need for registrar/paying agent. The City will appoint . <br /> itself as registrarlpaying agent. <br /> . Standard and Poor's Corporation rated this issue an A+ in November, 1997. <br /> Previously the City had an Al Moody's Investors Service bond rating. <br /> Bonds rated A+ in the past month sold at a 4.90% TIC. These Bonds were <br /> similar in size with a slightly longer term than the schedule proposed for Arden <br /> Hills. Coupon rates ranged from 4.00% in 2001 to 5.10% in 2018. If current <br /> market conditions continue, we expect better results. <br /> . We will request that bond insurance companies review this issue and qualify it for <br /> bond insurance, If qualified and purchasers choose to purchase the bond <br /> insurance, the issue will be rated "Aaa" by Moody's Investors Service and/or "AAA" <br /> by Standard & Poor's Corporation, The estimated cost of the premium and the <br /> associated rating fees should be offset by the lower interest rates the community <br /> will receive by offering this issue "Aaa" rated and insured. It would be the option <br /> of the bidders if they purchase bond insurance. <br /> . <br /> Page 3 <br /> ----- <br />