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PRELIMINARY OFFICIAL STATEMENT DATED JUNE 7, 2018
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<br />E ° In the opinion of Kennedy & Graven, Chartered, Bond Counsel, based on present federal and Minnesota laws, regulations, rulings and decisions (which exclude any
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<br />opending legislation which may have a retroactive effect), and assuming compliance with certain covenants, interest to be paid on the Bonds is excludedfrom gross income
<br />a a for federal income tax purposes and, to the same extent. from taxable net income of individuals, estates and trusts for Minnesota income tax purposes, and is not a
<br />„ preference item for purposes of computing the federal alternative minimum tax (although interest on the Bonds is included in adjusted current earnings in calculating
<br />o E corporate alternative minimum taxable income for taxable years that began prior to January 1. 2018) or the Minnesota alternative minimum tax imposed on tndrorduals,
<br />a ° m trusts, and estates. Such interest is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income. No opinion will be
<br />" .2 ' terest on the Bonds or arisingwith respect to ownership
<br />expressed by Bond Counsel regarding other state orfederal tax consequences caused by the receipt or accrual of in
<br />E d of the Bonds. See "Tax Exemption" herein.
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<br />° The City will designate the Bonds as "qualified lax -exempt obligations"for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating
<br />to the ability offtnancial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring lax -exempt
<br />° .215 5 obligations.
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<br />New Issue Rating Application Made: S&P Global Ratings
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<br />CITY OF GEM LAKE, MINNESOTA
<br />q� (Ramsey County)
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<br />o (Minnesota City Credit Enhancement Program)
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<br />a�a $665,000* GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2018A
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<br />E PROPOSAL OPENING: June 19, 2018, 10:00 A.M., C.T. CONSIDERATION: June 19, 2018, 7:00 P.M., C.T.
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<br />" q PURPOSE/AUTHORITY/SECURITY: The $665,000* General Obligation Improvement Bonds, Series 2018A (the "Bonds") are being
<br />t v issued pursuant to Minnesota Statutes, Chapters 429 and 475, by the City of Gem Lake, Minnesota (the "City") for the purpose of
<br />E g a financing various public improvements within the City. The Bonds will be general obligations of the City for which its full faith, credit
<br />€ and taxing powers are pledged. Delivery is subject to receipt of an approving legal opinion of Kennedy & Graven, Chartered,
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<br />Minneapolis, Minnesota.
<br />T E DATE OF BONDS: July 12, 2018
<br />MATURITY: February 1 as follows:
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<br />Year Amount* Year Amount* Year Amount*
<br />0 2020 $35,000 2025 $40,000 2030 $45,000
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<br />E 2021 40,000 2026 45,000 2031 50,000
<br />2022 40,000 2027 45,000 2032 50,000
<br />o .L 2023 40,000 2028 45,000 2033 50,000
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<br />2024 40,000 2029 45,000 2034 55,000
<br />s W MATURITY * The City reserves the right to increase or decrease the principal amount of the Bonds on the day of
<br />o t ADJUSTMENTS: sale, in increments of $5,000 each. Increases or decreases may be made in any maturity. If any principal
<br />R ' amounts are adjusted, the purchase price proposed will be adjusted to maintain the same gross spread
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<br />per $1,000.
<br />TERM BONDS: See "Term Bond Option" herein.
<br />o E.2 INTEREST: February 1, 2019 and semiannually thereafter.
<br />E N OPTIONAL REDEMPTION: Bonds maturing February 1, 2028 and thereafter are subject to call for prior redemption on February 1,
<br />2027 and any date thereafter, at a price of par plus accrued interest.
<br />=° ° MINIMUM PROPOSAL: $655,025.
<br />o GOOD FAITH DEPOSIT: A good faith deposit in the amount of $13,300 shall be made by the winning bidder by wire transfer of
<br />E funds.
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<br />N 5 1 PAYING AGENT: Bond Trust Services Corporation
<br />82 BOND COUNSEL: Kennedy & Graven, Chartered
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<br />MUNICIPAL ADVISOR: Ehlers and Associates, Inc.
<br />« BOOK -ENTRY -ONLY: See "Book -Entry -Only System" herein (unless otherwise specified by the purchaser).
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<br />PEEE RECEIVED
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