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Presale Report <br />City of Ramsey, Minnesota <br />Debt Issuance Services <br />February 28 <br />Page 2 <br />permanent financing to pay the Bonds in their entirety on June 1, <br />2015. <br />The cost difference between the 2 options is that it will cost the City <br />approximately $240,000 more to issue a 10 year bond now versus a 3 <br />year temporary bond. However, this amount decreases to <br />approximately $130,000 if the temporary bond is not paid in full on <br />June 1, 2015 and the City has to issue another temporary bond and /or <br />long term bond. Further reducing this difference would be the impact <br />of higher interest rates in 2015. <br />Term /Call Feature <br />If the Bonds are issued for a temporary 3 year term, they can be <br />prepaid at any time after February 1, 2013. Interest is payable every <br />six months on February 1 and August 1 and principal on the Bonds <br />will be due on February 1, 2015. <br />If the Bonds are issued for a 10 year term, they would contain a 3 <br />year call date, meaning that they cannot be prepaid until February 1, <br />2015. <br />Bank Qualification <br />Because the Bonds are taxable obligations they will not be designated <br />as "bank qualified" obligations. <br />Rating: <br />The City's most recent bond issue was rated AA+ by Standard & <br />Poor's. The City will request a new rating for the Bonds. <br />If the winning bidder on the Bonds elects to purchase bond insurance, <br />the rating for the issue may be higher than the City's bond rating in <br />the event that the bond rating of the insurer is higher than that of the <br />City. <br />Method of sale /Placement: <br />In order to obtain the lowest interest cost to the City, we will solicit <br />competitive bids for purchase of the Bonds from local banks in your <br />area and national and regional underwriters. <br />We have included an allowance for discount bidding equal to .5% of <br />the principal amount of the issue. The discount is treated as an <br />interest item and provides the underwriter with all or a portion of its <br />compensation in the transaction. <br />If the Bonds are purchased at a price greater than the minimum bid <br />amount (maximum discount), the unused allowance may be used to <br />lower your borrowing amount. <br />Continuing Disclosure: <br />Because the City has more than $10,000,000 in outstanding debt <br />(including this issue) and this issue is over $1,000,000, the City will <br />be agreeing to provide certain updated Annual Financial Information <br />and its Audited Financial Statement annually as well as providing <br />notices of the occurrence of certain "material events" to the <br />Municipal Securities Rulemaking Board (the "MSRB "), as required <br />Presale Report <br />City of Ramsey, Minnesota <br />Debt Issuance Services <br />February 28 <br />Page 2 <br />