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In addition, this portion of the Bonds counts towards the City's statutory debt limit, which is <br />3% of EMV. Therefore, the total amount of outstanding debt paid solely be taxes cannot <br />exceed $123,743,010. If we include this portion of the Bonds and other bonds outstanding <br />pursuant to this limitation (approximately $33.465 million), the City will still be well below the <br />aforementioned legal debt limit. <br />The Bonds will be general obligations of the City for which its full faith, credit and taxing <br />powers are pledged. <br />Term/Call Feature: <br />The Bonds are being issued for a term of 15 years. Principal on the Bonds will be due on <br />December 15 in the years 2024 through 2038. Interest is payable every six months beginning <br />June 15, 2024. <br />The Bonds will be subject to prepayment at the discretion of the City on December 15, 2032, <br />or any date thereafter. <br />Bank Qualification: <br />Because the City is expecting to issue no more than $10,000,000 in tax exempt debt during <br />the calendar year, the City will be able to designate the Bonds as "bank qualified" obligations. <br />Bank qualified status broadens the market for the Bonds, which can result in lower interest <br />rates. <br />Rating: <br />The City's most recent bond issues were rated by S&P Global Ratings. The current rating on <br />those bonds is "AA+". The City will request a new rating for the Bonds. <br />If the winning bidder on the Bonds elects to purchase bond insurance, the rating for the issue <br />may be higher than the City's bond rating in the event that the bond rating of the insurer is <br />higher than that of the City. <br />Basis for Recommendation: <br />Based on your objectives, financial situation and need, risk tolerance, liquidity needs, <br />experience with the issuance of Bonds and long-term financial capacity, as well as the tax <br />status considerations related to the Bonds and the structure, timing and other similar matters <br />related to the Bonds, we are recommending the issuance of Bonds as a suitable option. <br />Presale Report September 26, 2023 <br />City of Ramsey, Minnesota Page 2 <br />