The City of Sioux Falls, South Dakota (the “City”) is seeking proposals from qualified firms to provide investment banking and remarketing services for up to three series of bonds (“2009 Bonds”) to fund 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 must be used to pay principal of the 2009 Bonds. To accommodate an unknown reimbursement schedule, maximize flexibility and minimize debt service costs, the City currently anticipates issuing a combination of fixed rate and variable rate bonds.

The 2009 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.

Investment banking firms may submit a proposal to serve as senior manager for fixed rate bonds, senior manager and remarketing agent for variable rate bonds or both.