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07. Pre-Sale Meeting PresentationStreet Financing– 2024A Bonds City of Scandia – March 19, 2024 2 Street Reconstruction Plan Tax Abatement Requirements 2024A Bond Details Next Steps Overview 3 • 5 year plan that establishes the City’s authority to issue bonds without a referendum May issue bonds for street reconstruction and bituminous overlay • Requires a public hearing to solicit any input on the Plan Noticed published for hearing on March 6th, 2024 • Must be approved by the 2/3 of council members present at the meeting (one of tonight’s actions) • Subject to 30 day reverse referendum period Street Reconstruction Plan 4 • City of Scandia 2024 – 2028 Street Reconstruction Plan Includes only 2024 projects • Authorizes up to $3.48 million in debt issuance for street reconstruction/overlay projects Does not include crack filling and sealing • Subject to 3% of market value debt limit City will have over $26 million in remaining debt limit after this bond issue Street Reconstruction Plan 5 Street Reconstruction Plan 6 • Using tax abatement only as the authority for issuance of G.O. debt This is not being used in an economic development context Identification of these parcels does NOT impact that taxes paid by these parcels in any way Simply a tax levy that shows it can be supported by identified parcels • Requires a public hearing, identification of parcels to “abate”, and passage of a resolution (one of tonight’s actions) Establishes legal authority to issue bonds without a referendum Authorizing up to $655,000 in total tax abatement issuance Tax Abatement Requirements 7 2024A Bond Details (Presale Report) • Total par amount of the bonds is $4,135,000 $3,480,000 for street reconstruction, funds $3.3 million in projects $655,000 for crack filling and sealing (tax abatement), funds $620,000 in projects • Issued for a 16 year term (15 years of principal) • Callable on February 1, 2034 • Bank Qualified-less than $10 million issued in 2024 8 2024A Bond Details (Presale Report) • Rating requested from Standard and Poor’s Currently rated “AA+” one notch below the highest rating • Bonds will be sold competitively Award will be made to the underwriter’s bid with the lowest true interest costs • Council can accept or modify Presale Report assumption Passage of resolution providing for the sale of bonds (one of tonight’s actions) 9 Next Steps • Prepare for Bond Sale • Call with rating agency (Standard and Poor’s) Likely the week of April 22, 2024 • May 1, 2024 – Council approves sale of the bonds • May 22, 2024 – closing (receipt of funds) 10 & 11 Ehlers is the joint marketing name of the following affiliated businesses (collectively, the “Affiliates”): Ehlers & Associates, Inc. (“EA”), a municipal advisor registered with the Municipal Securities Rulemaking Board (“MSRB”) and the Securities and Exchange Commission (“SEC”); Ehlers Investment Partners, LLC (“EIP”), an SEC registered investment adviser; and Bond Trust Services Corporation (“BTS”), a holder of a limited banking charter issued by the State of Minnesota. Where an activity requires registration as a municipal advisor pursuant to Section 15B of the Exchange Act of 1934 (Financial Management Planning and Debt Issuance & Management), such activity is or will be performed by EA; where an activity requires registration as an investment adviser pursuant to the Investment Advisers Act of 1940 (Investments and Treasury Management), such activity is or will be performed by EIP; and where an activity requires licensing as a bank pursuant to applicable state law (paying agent services shown under Debt Issuance & Management), such activity is or will be performed by BTS. Activities not requiring registration may be performed by any Affiliate. This communication does not constitute an offer or solicitation for the purchase or sale of any investment (including without limitation, any municipal financial product, municipal security, or other security) or agreement with respect to any investment strategy or program. This communication is offered without charge to clients, friends, and prospective clients of the Affiliates as a source of general information about the services Ehlers provides. This communication is neither advice nor a recommendation by any Affiliate to any person with respect to any municipal financial product, municipal security, or other security, as such terms are defined pursuant to Section 15B of the Exchange Act of 1934 and rules of the MSRB. This communication does not constitute investment advice by any Affiliate that purports to meet the objectives or needs of any person pursuant to the Investment Advisers Act of 1940 or applicable state law. Important Disclosures