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

2. 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%

3. G.O. Refunding Bonds, Series 2013A
2006 statutes changed to allow G.O. Bonds for public safety facilities (M.S 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

4. 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

5. Municipal Bond Market

6. 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