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Investment of monies in the debt service sinking funds is unrestricted for a period of 13 months,
<br />and the earliest of (a) the first call date, or (b) 10 years, whichever is first; however, the issuer
<br />must make a reasonable effort to match the projected income to the debt service prior to the
<br />first call date.
<br />
<br />Grant anticipation notes or bonds are limited in amount to the maximum cumulative projected
<br />deficit plus the next month's expenditures. In addition, such bonds or notes must mature within
<br />six months of the last reasonably projected receipt of grant monies but in no event more than 30
<br />months from the date of issuance. Tax or revenue anticipation notes also are limited to the sum
<br />of the maximum deficit cash flow plus one month's expenditures. However, the term of the notes
<br />is limited to (a) 13 months or (b) 00 days after the anticipated final receipt of taxes or revenues,
<br />not to exceed 24 months.
<br />
<br />The arbitrage rules are very complicated and require careful additional planning by the issuer.
<br />The IRS will not accept ignorance of the regulations as an excuse for failure to comply. In fact,
<br />each bond issue requires a certificate, signed by the officers of the issuer, stating that there wJl[
<br />be no violation.
<br />
<br />Because bright people have tampered with the intent of the regulations by finding loopholes in
<br />them, the regulations include a little gem to hold off future abuses. This is referred to as the
<br />"artifice or device" section, which states that if an issuer has attempted to circumvent the
<br />intentions of the regulations, it may have violated the regulations and may lose its ability to sell
<br />tax-exempt bonds.
<br />
<br />.91 STATISTICAL SAMPLER FOR SEPTEMBER
<br />
<br /> Bond Buyer Placement
<br />For the Week Endinq. index RQtio
<br />
<br /> Treasury Bills
<br />13-Week 2~-Week
<br />
<br />September 7 6.47% 8~. I%
<br />September 14 6.49% 89.3%
<br />September 21 6.57% 87.7%
<br />September 28 6.56% ~0.4%
<br />
<br />10.27% 10.45%
<br />I I, 00% I I, 04%
<br />10.81% II .06%
<br />10.42% 10.84%
<br /> (Effective Yields)
<br />
<br /> Bond Buyer Index - Ten Year Summary
<br />
<br />Year Range Year Range
<br />
<br />1970 7.12% - 5.33% 1975 7,67% ~ 6.27%
<br />1971 6.23% - 4.97% 1976 7.13% - 5,83%
<br />1972 5.54% - 4.96% 1977 5,93% - 5.45%
<br />1973 5.59% - 4.99% 1978 6.67% - 5.58%
<br />t974 7.15% - 5,16% 1979 6,64% - 6,09%
<br />
<br />Municipal Certificate of Deposit Rates
<br />Current Random Sampling
<br />
<br /> MN WI
<br />
<br /> 30-day 12.500% 12.750%
<br /> 60-day 12. 875% 13.000%
<br /> 90-day - 13.000% 13.000%
<br /> 180-day - 12.750% 13,000%
<br /> ($100,000 minimum investment)
<br />
<br />Municipality
<br />
<br />Saul Rapids~ MN
<br />Albertville, MN
<br />White Bear Town, MN
<br />Mountaln Lake, MN
<br />Deer River lSD 317, MN
<br />Duluth, MN
<br />Superior, WI
<br />East Grand Forks, MN
<br />Spring Lake Park, MN
<br />Little Falls, MN
<br />Elk River, MN
<br />Andover, MN
<br />St. Cloud, MN
<br />Kondiyobi County, MN
<br />Eyota, MN
<br />Dover, Eyota, St. Chas,
<br /> Sanitary District, MN
<br />State of Wisconsin
<br />Mahtomedi, MN
<br />
<br />5~LECTED SEPTFJ~4BER SALES
<br />
<br />Sale
<br />Date Type Amount
<br />
<br />9/04 G.O. Improvement $ 150,000
<br />9/10 G.O. Improvement $ I, 145,000
<br />9/10 G.O. Temp. Imp. I 840,000
<br />9/10 G.O. Improvement 800,000
<br />9/I I G.O. School Bldg. Bonds $ 1,360,000
<br />9/12 G.O. Bonds $ 2,845,000
<br />9/12 G.O. Corp. Purpose $ 5,675,000
<br />9/13 G.O. Improvement $ 540,000
<br />9/17 G.O. Water Revenue $ 750,000
<br />9/17 G.O. Improvement I 500,000
<br />9/17 G,O. Improvement 380,000
<br />9/18 G.O, Improvement $ 270,000
<br />9/19 G.O, Improvement $ 1,100,000
<br />9/20 G.O. Drainage Bands $ 2,640,000
<br />9/25 G.O. Improvement $ 190,000
<br />
<br />9/25 G.O. Short-Term Bonds $ 195,000
<br />9/25 Various, Series 1979 $90,000,000
<br />9/26 G.O. Improvement $ 635,000
<br />
<br />Final Mo~d~s Rate
<br />Maturity Rating BBI (NIC)
<br />
<br /> 1991 A 6.36% 5.94%
<br /> 2001 NR 6.47% 6,86%
<br /> 1982 Boo-I 6.47% 6.48%
<br /> J992 A 6.47% 6.05%
<br /> 1999 A 6.47% 6.28%
<br /> 1995 A-I 6,47% 5.94%
<br /> 1998 A 6.47% 6.07%
<br /> 200l Boo-I 6.49% 6.45%
<br /> 1999 Boo-I 6.49% 6.42%
<br /> 2001 Boo-I 6,49% 6.40%
<br /> 1997 Boo-I 6.49% 6.43%
<br /> I995 Boo 6,49% 6.65%
<br /> I991 A-I 6.49% 5.91%
<br /> 2000 A-I 6,57% 6.17%
<br /> 1990 Baa-I 6.57% 6,34%
<br />
<br /> 1980 Boo-I 6.57% 6.59%
<br /> 2004 Aaa 6.57% 5.71%
<br /> 1996 Boo-I 6.57% 6.33%
<br />
<br />
<br />
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