The City of Sioux Falls, South Dakota (the “City”) is seeking proposals from qualified firms to provide either a credit and liquidity facility services or solely liquidity facility services for up to $30 million of variable rate bonds (“2009 Variable Rate Bonds”) plus 34 days interest to fund a portion of a flood control project including the construction of a new dam at the confluence of Skunk Creek and the Big Sioux River, the construction of improvements to the existing diversion dam, rebuilding the 41st Street Bridge and raising the levees to provide adequate flood risk reduction along the Big Sioux River, Skunk Creek and diversion channel in the City (the “Project”) to be issued pursuant to the Fourteenth Supplemental Indenture to be dated as of March 1, 2009 to an Indenture of Trust dated as of August 15, 1998 (collectively, the “Indenture”). The City Council has passed an Ordinance approving up to $38 million of bonds for Project costs and capitalized interest. Debt service reserve funds and costs of issuance are considered outside the $38 million maximum. The City expects that the costs of a portion of the Project may be reimbursed by the U.S. Army Corps of Engineers (the “Corps”) which proceeds may be used to pay principal of the 2009 Variable Rate Bonds.

The 2009 Variable Rate Bonds will be issued on a parity basis with the City’s outstanding Sales Tax Revenue Bonds which are backed by proceeds of the City’s second penny sales tax, currently imposed at a rate of 1.00% (the “Second Penny Sales Tax”). The City’s outstanding Sales Tax Revenue Bonds are rated “Aa3” by Moody’s Investors Service. Request for Proposals (RFP) packages are available and may be obtained by contacting the City’s financial advisor, Public Financial Management.