City of Blue Earth, Minnesota Public Project Revenue Bonds Series 2006B - Refunding January 22, 2013

Public Project Revenue Bonds, Series 2006B Original Par Amount: $1,185,000 Financed construction of public safety facility EDA owns facility and leases to City Only financing option available at the time Final maturity date: February 1, 2027 First redemption (early payment) date: February 1, 2013 Principal amount outstanding: $940,000 Average coupon on outstanding maturities: 4.7%

G.O. Refunding Bonds, Series 2013A 2006 statutes changed to allow G.O. Bonds for public safety facilities (M.S. 475.521 CIP Bonds) Principal amount of refunding: $995,000 Principal and interest outstanding: $950,895 Cost of Issuance: $32,000 Underwriter's Discount (Fee): $9,452 Round to $5,000 Increment: $2,652 Keep same repayment schedule (2027) Estimated interest rate: 2.0% Estimated present value savings: $149,000 Savings are net of all financing costs

M.S. 475.521 Capital Improvement Plan Bonds Allows cities to offer general obligation without a referendum. Must hold a public hearing to approve plan and bonds Subject to 30-day reverse referendum Never been used on refunding bonds Requires two-thirds majority vote Statutory limit on amount of G.O. CIP Bonds City is well below the limit

Municipal Bond Market

Schedule of Events Date Event Jan 22, 2013 City holds public hearings; Council sets sale date and terms Feb 11-15, 2013 Standard & Poor’s credit rating call and receipt of rating Feb 21, 2013 Competitive proposals are received at 10:00 a.m. City Council considers bids and awards bonds at 5:00 p.m. March 27, 2013 Bond proceeds are received May 1, 2013 2006 Bonds are redeemed