NOTICE OF SALE

$15,745,000*

GENERAL OBLIGATION TEMPORARY NOTES

SERIES 2004-II

$10,670,000^*

GENERAL OBLIGATION BONDS

SERIES 2004-B

$1,600,000^*

GENERAL OBLIGATION BONDS

SERIES 2004-C

(SUBJECT TO ALTERNATIVE MINIMUM TAX)

OF THE CITY OF LAWRENCE, KANSAS

(GENERAL OBLIGATIONS PAYABLE

FROM UNLIMITED AD VALOREM TAXES)

Bids. Sealed, facsimile and electronic (as explained below) bids for the purchase of General Obligation Temporary Notes, Series 2004-II (the "Notes") and General Obligation Bonds, Series 2004-B (the “Series 2004-B”) and General Obligation Bonds, Series 2004-C (Subject to Alternative Minimum Tax) (the "Series 2004-C Bonds," the Series 2004-B Bonds and Series 2004-C Bonds collectively referred to as the "Bonds") of the City of Lawrence, Kansas (the "City") will be received (1) in the case of sealed and facsimile bids by the City's Finance Director at the address and fax number hereinafter set forth and (2) in the case of electronic bids through the PARITY electronic bid submission system (“PARITY”), until 11:00 a.m., local time, for the Notes and until 11:30 a.m., local time, for the Bonds on

Tuesday, September 14, 2004

at which time such bids will be publicly read and will be acted upon by the governing body at its meeting to be held at 6:35 p.m. that day. No oral or auction bids will be considered.

THE NOTES

Note Details. The Notes will consist of fully registered notes in the denomination of $5,000 or any integral multiple thereof. Notes shall initially be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York, to which payment of principal of and interest on the Notes will be made. Individual purchases of Notes will be made in book-entry form only. Purchasers will not receive certificates representing their interest in Notes purchased. The Notes will be dated September 15, 2004. The Notes will become due on October 1, 2005. Notes will bear interest from the dated date at the rate determined when the Notes are sold. Interest on the Notes will be payable on April 1, 2005 and at maturity on October 1, 2005.

Place of Payment and Bond Registration. The interest on the Notes will be payable in lawful money of the United States of America by check, draft or wire transfer of funds of the Treasurer of the City (the "Note Paying Agent" and "Note Registrar"), to the registered owners whose names are on the registration books of the Note Registrar as of the fifteenth day (whether or not a business day) of the calendar month next preceding each interest payment date. The principal of the Notes will be payable to the registered owners thereof at the offices of the Note Paying Agent upon surrender of the Notes for cancellation and payment.

Redemption of Notes Prior to Maturity. The Notes are not subject to redemption prior to maturity.

Authority, Purpose and Security. The Notes are being issued pursuant to the Constitution and statutes of the State of Kansas, including, without limitation, K.S.A. 10-101 et seq. ~~{,}~~[(including] K.S.A. ~~{**}~~[10-123), K.S.A.] 12-6a01 et seq. and K.S.A. 12-685 et seq., Article 12, § 5 of the Constitution of the State of Kansas and Charter Ordinance ~~{Number}~~ [Numbers 28 and] 32 of the City~~{**}~~, all as amended and supplemented, for the purpose of paying the cost of making certain street, sewer, public building ~~{**}~~and other improvements in the City. The Notes will constitute general obligations of the City. The Notes and the interest thereon are payable in part from special assessments levied upon the property benefited by the construction of certain improvements, from general obligation bonds of the City or from both, and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal and interest on the Notes is payable from general obligation bonds and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Notes as the same become due.

THE BONDS

Bond Details. The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof. The Bonds shall initially be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York, to which payment of principal of and interest on the Bonds will be made. Individual purchases of Bonds will be made in book-entry form only. Purchasers will not receive certificates representing their interest in Bonds purchased. The Bonds will be dated September 15, 2004 and will become due on the stated maturities as follows:

SERIES 2004-B

MATURITY [SEPTEMBER 1]	PRINCIPAL AMOUNT*	MATURITY [SEPTEMBER 1]	PRINCIPAL AMOUNT^*

[2005	$795,000	2011	$885,000
2006	795,000	2012	910,000
2007	805,000	2013	940,000
2008	820,000	2014	970,000
2009	840,000	2015	1,005,000
2010	860,000	2016	1,045,000]

SERIES 2004-C

MATURITY [SEPTEMBER 1]	PRINCIPAL AMOUNT*	MATURITY [SEPTEMBER 1]	PRINCIPAL AMOUNT^*

[2005	$120,000	2011	$130,000
2006	120,000	2012	135,000
2007	120,000	2013	140,000
2008	125,000	2014	145,000
2009	125,000	2015	150,000
2010	130,000	2016	160,000]

The Bonds will bear interest from the dated date at rates to be determined when the Bonds are sold, which interest will be payable semiannually on March 1 and September 1 in each year, beginning on March 1, 2005.

Place of Payment and Bond Registration. The principal of and interest on the Bonds will be payable in lawful money of the United States of America by check, draft or wire transfer of funds of the Treasurer of the state of Kansas, Topeka, Kansas (the "Paying Agent" and "Bond Registrar"), to the registered owners thereof whose names are on the registration books of the Bond Registrar as of the fifteenth day (whether or not a business day) of the calendar month next preceding each interest payment date.

The City will pay for the fees of the Bond Registrar for registration and transfer of the Bonds and will also pay for printing a reasonable supply of registered bond blanks. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond Registrar, will be the responsibility of the bondowners.

Redemption of Bonds Prior to Maturity. At the option of the City, the Bonds maturing on September 1, 2015 and thereafter may be called for redemption and payment prior to maturity, on September 1, 2014, and thereafter, in whole or in part at any time (the maturities and principal amounts of the Bonds of each maturity to be redeemed will be determined by the City), at the redemption price of 100% (expressed as a percentage of the principal amount), plus accrued interest to the date of redemption.

Whenever the Bond Registrar is to select Bonds for the purpose of redemption, it will, in the case of Bonds in denominations greater than $5,000, if less than all of the Bonds then outstanding are to be called for redemption, treat each $5,000 of face value of each such fully registered Bond as though it were a separate Bond in the denomination of $5,000.

Unless waived by any owner of the Bonds to be redeemed, if the City elects to call any Bonds for redemption and payment prior to the maturity thereof, the City shall cause the Bond Registrar to give written notice of its intention to call and pay the Bonds on a specified date, the same being described by maturity, said notice to be mailed by United States first class mail addressed to the owners of said Bonds, such notice to be mailed not less than 30 days prior to the date fixed for redemption. The City shall also give such additional notice as may be required by Kansas law in effect on the date of such notice. If a Bond is called for redemption and payment, all interest on such Bond will cease from the date for which the call is made, provided funds are available for its payment at the redemption price.

Authority, Purpose and Security. The Series 2004-B Bonds are being issued pursuant to the Constitution and statutes of the State of Kansas, including, without limitation, K.S.A. 10-101 et seq., ~~{**}~~K.S.A. 12-6a01 et seq. and K.S.A. 12-685 et seq., Article 12, § 5 of the Constitution of the State of Kansas and Charter Ordinance ~~{Number}~~ [Numbers 28 and] 32 of the City~~{**}~~, all as amended and supplemented, for the purpose of paying the cost of certain street, sewer and other improvements in the City. The Series 2004-B Bonds will constitute general obligations of the City. The Series 2004-B Bonds and the interest thereon are payable in part from special assessments levied upon the property benefited by the construction of certain improvements, and, if not so paid, from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The balance of the principal and interest on the Series 2004-B Bonds is payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Series 2004-B Bonds as the same become due.

The Series 2004-C Bonds are being issued pursuant to the Constitution and statutes of the State of Kansas, including, without limitation, K.S.A. 10-101 et seq., Article 12, § 5 of the Constitution of the State of Kansas and Charter Ordinance Number 32 of the City, all as amended and supplemented, for the purpose of paying the cost of certain improvements to the City-owned airport. The Series 2004-C Bonds will constitute general obligations of the City. The Series 2004-C Bonds and the interest thereon are payable from ad valorem taxes which may be levied without limitation as to rate or amount upon all the taxable tangible property, real and personal, within the territorial limits of the City. The full faith, credit and resources of the City are irrevocably pledged for the prompt payment of the principal and interest on the Series 2004-C Bonds as the same become due.

BIDS FOR NOTES AND BONDS

Conditions of Bids. Bids may be submitted for the Notes and/or for one or both series of the Bonds. Proposals will be received for the Notes and the Bonds bearing such rate or rates of interest as may be specified by the bidders, subject to the following conditions:

For the Notes: The same rate shall apply to all Notes. The interest rate specified shall be a multiple of 1/100 of 1%. No interest rate may exceed a rate equal to the daily yield for 10-year treasury bonds published by The Bond Buyer in New York, New York, on the Monday next preceding the day of which the Notes are sold, plus 3%. No bid of less than 99.50% of the principal amount of the Notes and accrued interest thereon to the date of delivery will be considered and no supplemental interest payments will be considered.

Each bid for the Notes must specify the total interest cost to the City during the term of such Notes on the basis of such bid, the discount or premium, if any, offered by the bidder, and the net interest cost to the City on the basis of such bid, all certified by the bidder to be correct and the City will be entitled to rely on the certificate of correctness of the bidder. Each bid for the Notes must also specify the average annual net interest rate to the City on the basis of such bid.

For the Bonds: The same rate shall apply to all Bonds of a series of the same maturity. Each interest rate specified shall be a multiple of 1/8 or 1/20 of 1%. No interest rate may exceed a rate equal to the daily yield for 10-year treasury bonds published by The Bond Buyer in New York, New York, on the Monday next preceding the day of which the Bonds are sold, plus 3%. The difference between the highest rate specified and the lowest rate specified for a series of the Bonds cannot exceed 2%. No bid of less than the entire principal amount of a series of the Bonds and accrued interest thereon to the date of delivery will be considered and no supplemental interest payments will be considered.

Each bid for a series of the Bonds must specify the total interest cost to the City during the term of such Bonds on the basis of such bid, the premium, if any, offered by the bidder, the net interest cost on the basis of such bid and an estimate of the TIC (as hereinafter defined) on the basis of such bid, all certified by the bidder to be correct and the City will be entitled to rely on the certificate of correctness of the bidder.

A separate bid must be submitted for the Notes and for each series of the Bonds.

Good Faith Deposit.

For the Notes: A good faith deposit is not required for bids on the Notes.

For the Bonds: Each bid for a series of the Bonds shall be accompanied by a good faith deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of 2% of the principal amount of the applicable series of the Bonds, payable to the order of the City.

If a check is used for a Deposit, it must accompany each bid. If a Financial Surety Bond is used for a Deposit, it must be from an insurance company licensed to issue such a bond in the state of Kansas, and such bond must be submitted to the City prior to the opening of the bids. The Financial Surety Bond must identify each bidder whose Deposit is guaranteed by such Financial Surety Bond. If a series of the Bonds are awarded to a bidder utilizing a Financial Surety Bond, that purchaser is required to submit its Deposit to the City in form of a cashier's check (or wire transfer such amount as instructed by the City) not later than 2:00 P.M., local time on the next business day following the award. The Deposit of the successful bidder shall constitute a good faith deposit and shall be retained by the City to insure performance of the requirements of the sale by the successful bidder. In the event the successful bidder shall fail to comply with the terms of its bid, the Deposit will be forfeited as full and complete liquidated damagers. Upon delivery of a series of the Bonds, the Deposit for such series will be applied to the purchase price of such series of the Bonds but no interest shall be allowed thereon. After the award is made to the successful bidder, the Deposit of the unsuccessful bidders will be returned forthwith.

Basis of Award.

For the Notes: The award for the Notes will be made on the basis of the lowest net interest cost to the City, which will be determined by adding the amount of the discount bid, if any, and subtracting the amount of the premium bid, if any, from the total interest cost to the City. If there is any discrepancy between the stated net interest cost and the average annual net interest rate specified, the specified net interest cost shall govern and the interest rates specified in the bid shall be adjusted accordingly. If two or more proper bids providing for identical amounts for the lowest net interest cost are received, the governing body will determine which bid, if any, will be accepted, and its determination is final.

For the Bonds: The award for each series of the Bonds will be made on the basis of the lowest true interest cost (“TIC”) determined as follows: the TIC is the discount rate (expressed as a per annum percentage rate) which, when used in computing the present value of all payments of principal and interest to be paid on such series of the Bonds, from the payment dates to September 15, 2004 (the dated date), produces an amount equal to the principal amount of such series of the Bonds, plus a premium, if any. Payments of principal and interest on the Bonds will be based on the principal amounts set forth in this Notice and the interest rates specified by each bidder. Present value will be computed on the basis of semiannual compounding and a 360-day year of twelve 30-day months. Bidders are requested to supply an estimate of the TIC for a series of the Bonds on the official bid form for such series, computed as specified herein on the basis of their respective bids, which shall be considered as informative only and not binding on either the bidder or the City. In the event there is a discrepancy between the TIC specified by a bidder and their indicated interest rates and premium (if any), the indicated interest rates and premium shall govern and the TIC shall be adjusted accordingly. If two or more proper bids providing for the same lowest TIC are received, the governing body of the City will determine which bid, if any, will be accepted, and its determination is final.

The City reserves the right to reject any and/or all bids and to waive any irregularities in a submitted bid. Any bid for the Notes received after 11:00 a.m., local time, and any bid for a series of the Bonds received after 11:30 a.m., local time, on the date of sale will not be considered.

Submission of Bids. All sealed and facsimile bids must be submitted on the Official Bid Form which may be procured from the City's Director of Finance. No additions or alterations in such forms shall be made and any erasures may cause rejection of any bid. Sealed and facsimile bids must be submitted to the City's Director of Finance at the address and facsimile number shown below. Electronic bids via PARITY must be submitted in accordance with this Notice of Sale. If provisions of this Notice of Sale conflict with those of PARITY, this Notice of Sale shall control. Bids for the Notes must be received before 11:00 a.m., local time, and bids for the Bonds must be received before 11:30 a.m., local time, on Tuesday, September 14, 2004. The City shall not be responsible for any failure, misdirection, delay or error in the means of transmission selected by the bidder.

PARITY. Information about the electronic bidding services of PARITY may be obtained from i-Deal LLC, 40 West 23rd Street, 5th Floor, New York, New York 10010 (800/850-7422) and from the following web site: www.tm3.com.

CUSIP Numbers. It is anticipated that CUSIP identification numbers will be printed on or assigned to the Bonds and the Notes, but neither the failure to print such number on or assign such number to any Bond or Note nor any error with respect thereto will constitute cause for failure or refusal by the purchaser thereof to accept delivery of and pay for the Bonds or Notes in accordance with the terms of the purchase contract. All expenses in relation to the assignment and printing of CUSIP numbers on the Bonds and Notes will be paid by the City.

Delivery and Payment. The City will pay for preparing the Notes and the Bonds. The Notes and the Bonds will be delivered in book-entry form only through the facilities of The Depository Trust Company, New York, New York, on or around September 29, 2004. The successful bidder(s) will be furnished with a certified transcript of the proceedings evidencing the authorization and issuance of the Bonds or Notes, as applicable, and the usual closing documents, including a certificate that there is no litigation pending or threatened at the time of delivery of the Bonds or Notes affecting their validity and a certificate regarding the completeness and accuracy of the Official Statement. Payment for the Bonds and Notes must be made in funds immediately subject to use by the City.

The City will pay for the fees of the Bond and Note Registrar for registration and transfer of the Bonds and Notes. Any additional costs or fees that might be incurred in the secondary market, other than fees of the Bond and Note Registrar, will be the responsibility of the bond and note owners.

The reoffering prices to the public by the original purchaser(s) of the Bonds and the Notes must be furnished to the City within 48 hours of the opening of the bids. A certificate stating that at least 10 percent of the Bonds or Notes, as applicable, of each maturity has been sold to the public (excluding bond houses, brokers or similar persons or organizations acting in the capacity of underwriters or wholesalers) at such reoffering prices must be furnished to the City by the original purchaser at closing.

Ratings. The City has applied to Moody's Investors Service, Inc. for ratings on the Notes and the Bonds.

Official Statement. The City has prepared a Preliminary Official Statement dated August ~~{24}~~ [31], 2004, "deemed final" by the City except for the omission of certain information as provided in Securities and Exchange Commission Rule 15c2-12, copies of which may be obtained from the City's Director of Finance. Upon the sale of the Bonds and Notes, the City will adopt the final Official Statement and will furnish the successful bidder(s), within seven business days of the award of the bid, with a reasonable number of Official Statements at the City's expense. Additional copies may be ordered by the successful bidder at its expense.

Continuing Disclosure. The City has agreed to provide certain annual financial information and notices of certain events to certain national repositories in accordance with SEC Rule 15c2-12 as more particularly described in the Preliminary Official Statement accompanying this Notice of Sale under the heading "CONTINUING DISCLOSURE."

Assessed Valuation and Indebtedness. The Equalized Assessed Tangible Valuation for Computation of Bonded Debt Limitations is $743,219,623. The total general obligation bonded indebtedness of the City as of the date of the Bonds and Notes, including the Bonds and Notes being sold, but excluding the temporary notes to be retired with the proceeds of the Bonds and the Notes being sold, is ~~{$__________}~~[$90,700,000].

Legal Matters. The Bonds and Notes will be sold subject to the approving legal opinion of Gilmore & Bell, P.C., Kansas City, Missouri, Bond Counsel, which opinion will be furnished and paid for by the City and will accompany the Bonds and Notes and be delivered to the successful bidder when the Bonds/Notes are delivered. The opinion will also include the opinion of Bond Counsel relating to the exclusion of the interest on the Bonds/Notes from gross income for federal income tax purposes and from computation of Kansas adjusted gross income. Reference is made to the Preliminary Official Statement for further discussion of federal and Kansas income tax matters relating to the interest on each series of the Bonds and Notes.

Additional Information. Additional information regarding the Bonds and Notes may be obtained from the City Clerk, from the City's Director of Finance or from Gilmore & Bell, P.C., Bond Counsel, 2405 Grand Boulevard, Suite 1100, Kansas City, Missouri 64108 (816/221-1000).

DATED August ~~{24}~~ [31], 2004.

LAWRENCE, KANSAS

/s/ A. Ed Mullins

Director of Finance

Lawrence City Hall

Six East Sixth Street

Post Office Box 708

Lawrence, Kansas 66044

(785/832-3000)

Telecopy: (785/832-3231 or

785/832-3405)

$15,745,000*

GENERAL OBLIGATION TEMPORARY NOTES

SERIES 2004-II

$10,670,000^*

GENERAL OBLIGATION BONDS

SERIES 2004-B

$1,600,000^*

GENERAL OBLIGATION BONDS

SERIES 2004-C

(SUBJECT TO ALTERNATIVE MINIMUM TAX)

(GENERAL OBLIGATIONS PAYABLE FROM UNLIMITED AD VALOREM TAXES)

Bids. SUBJECT to the Notice of Sale and Preliminary Official Statement, sealed, facsimile and electronic bids for the purchase of General Obligation Temporary Notes, Series 2004-II (the “Notes”), General Obligation Bonds, Series 2004-B (the "Series 2004-B Bonds") and General Obligation Bonds, Series 2004-C (Subject to Alternative Minimum Tax) (the "Series 2004-C Bonds," the Series 2004-B Bonds and Series 2004-C Bonds collectively referred to as the "Bonds") of the city of Lawrence, Kansas (the "City") will be received (1) in the case of sealed bids and facsimile bids by the City's Finance Director at the address and facsimile number hereinafter set forth and (2) in the case of electronic bids through the PARITY electronic bid submission system (“PARITY”), until 11:00 a.m., local time for the Notes and until 11:30 a.m., local time, for the Bonds, on Tuesday, September 14, 2004 at which time such bids will be publicly read. No bid will be considered of (a) less than 99.50% of the principal amount of the Notes and accrued interest to the date of delivery and (b) less than 100% of the principal amount of the Bonds and accrued interest to the date of delivery.

Note Details. The Notes will consist of fully registered notes in the denomination of $5,000 or any integral multiple thereof. Notes shall initially be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York, to which payment of principal of and interest on the Notes will be made. Individual purchases of Notes will be made in book-entry form only. Purchasers will not receive certificates representing their interest in Notes purchased. The Notes will be dated September 15, 2004. The Notes will become due on October 1, 2005. Notes will bear interest from the dated date at the rate determined when the Notes are sold. Interest on the Notes will be payable at maturity on April 1, 2005 and October 1, 2005. The Treasurer of the City will be the Paying Agent and Note Registrar for the Notes.

Bond Details. The Bonds will consist of fully registered bonds in the denomination of $5,000 or any integral multiple thereof. The Bonds shall initially be registered in the name of Cede & Co., as nominee of The Depository Trust Company, New York, New York, to which payment of principal of and interest on the Bonds will be made. Individual purchases of Bonds will be made in book-entry form only. Purchasers will not receive certificates representing their interest in Bonds purchased. The Bonds will be dated September 15, 2004, and will become due on the stated maturities as follows, subject to redemption as set forth in the Preliminary Official Statement:

SERIES 2004-B

MATURITY [SEPTEMBER 1]	PRINCIPAL AMOUNT*	MATURITY [SEPTEMBER 1]	PRINCIPAL AMOUNT^*

[2005	$795,000	2011	$885,000
2006	795,000	2012	910,000
2007	805,000	2013	940,000
2008	820,000	2014	970,000
2009	840,000	2015	1,005,000
2010	860,000	2016	1,045,000]

SERIES 2004-C

MATURITY [SEPTEMBER 1]	PRINCIPAL AMOUNT*	MATURITY [SEPTEMBER 1]	PRINCIPAL AMOUNT^*

[2005	$120,000	2011	$130,000
2006	120,000	2012	135,000
2007	120,000	2013	140,000
2008	125,000	2014	145,000
2009	125,000	2015	150,000
2010	130,000	2016	160,000]

The Treasurer of the State of Kansas, Topeka, Kansas, will be the Paying Agent and Bond Registrar for the Bonds.

Redemption Prior to Maturity. The Bonds will be subject to optional redemption prior to maturity as provided in the Notice of Sale and Preliminary Official Statement.

Good Faith Deposit. A good faith deposit is not required for bids on the Notes. Each bid for a series of the Bonds shall be accompanied by a good faith cashier's or certified check or Financial Surety Bond in the amount of 2% of the principal amount of the appropriate series of Bonds.

Delivery. The City will pay for the preparation of the Notes and the Bonds. The City will deliver the Notes and the Bonds in book-entry form only through the facilities of The Depository Trust Company, New York, New York on or about September 29, 2004.

Approval of Bonds. The Bonds and Notes will be sold subject to the legal opinion of GILMORE & BELL, P.C., Kansas City, Missouri, Bond Counsel, whose approving legal opinion as to the validity of the Bonds/Notes will be furnished and paid for by the City and delivered to the successful bidder as and when the Bonds/Notes are delivered.

Additional Information. Additional information regarding the Bonds and Notes may be obtained from the City Clerk, the City's Director of Finance or from Gilmore & Bell, P.C., Bond Counsel, 2405 Grand Boulevard, Suite 1100, Kansas City, Missouri 64108 (816/221-1000).

DATED: August ~~{24}~~ [31], 2004.

LAWRENCE, KANSAS

By /s/ A. Ed Mullins

Director of Finance

Lawrence City Hall

Six East Sixth Street

Lawrence, Kansas 66044

(785/832-3000)

Telecopy: (785/832-3231 or

785/832-3405)

OFFICIAL BID FORM

PROPOSAL FOR THE PURCHASE OF BONDS OF

THE CITY OF LAWRENCE, KANSAS

TO: THE GOVERNING BODY September 14, 2004

SUBMITTED BY: _______________________________

SERIES 2004-B BONDS

For $10,670,000* principal amount of General Obligation Bonds, Series 2004-B (the “Bonds”), of the city of Lawrence, Kansas, to be dated September 15, 2004, as described in your Notice of Sale dated August ~~{24}~~ [31], 2004, the Bonds to bear interest as follows:

MATURITY [SEPTEMBER 1]	PRINCIPAL AMOUNT*	INTEREST RATE	MATURITY [SEPTEMBER 1]	PRINCIPAL AMOUNT*	INTEREST RATE

2005	$795,000	_______%	2011	$885,000	_______%
2006	795,000	_______%	2012	910,000	_______%
2007	805,000	_______%	2013	940,000	_______%
2008	820,000	_______%	2014	970,000	_______%
2009	840,000	_______%	2015	1,005,000	_______%
2010	860,000	_______%	2016	1,045,000]	_______%

We will pay the par value of the Bonds plus accrued interest to the date of delivery plus a total premium in the amount set forth below.

Based on a 360 day year, we calculate the net interest cost to the City to be as follows:

Total interest cost to maturity at the rates specified..... $_____________

Less Premium (if any) ............................................. ($____________)

Net interest cost ...................................................... $_____________

Estimate of true interest cost (TIC) on the basis of this

bid calculated as described in the Notice of Sale............ ___________%

This proposal is subject to all terms and conditions contained in the Notice of Sale, and if we are the successful bidder, we will comply with all of the provisions contained in the Notice of Sale. We hereby certify that the information we have provided in this bid is true and correct. A certified or cashier's check or Financial Surety Bond in the amount of 2% of the principal amount of the Bonds payable to the order of the city of Lawrence, Kansas, accompanies this proposal as an evidence of good faith.

Bidder hereby acknowledges sole responsibility for delivering its signed, completed bid form prior to the time of the sale and agrees to hold harmless the City for any error in a bid that is transmitted telephonically.

LIST ACCOUNT MEMBERS: Submitted by: ____________________

_________________________________

_________________________________ By: ____________________________

_________________________________

_________________________________ Phone (_____) ____________________

* * *

This proposal is accepted on September 14, 2004.

Attest:

___________________________________ ___________________________________

City Clerk Mayor

NOTE: No additions or alterations should be made to this proposal form and any erasures may cause rejection of any bid. Bids may be filed with the City's Director of Finance, Six East Sixth Street, Post Office Box 708, Lawrence, Kansas 66044, may be faxed to the City's Director of Finance at (785)832-3231 or (785)832-3405, or may be submitted electronically through PARITY, at or before 11:30 a.m., local time, on Tuesday, September 14, 2004. Any bid received after such time will not be considered.

OFFICIAL BID FORM

PROPOSAL FOR THE PURCHASE OF BONDS OF

THE CITY OF LAWRENCE, KANSAS

TO: THE GOVERNING BODY September 14, 2004

SUBMITTED BY: _______________________________

SERIES 2004-C BONDS

For $1,600,000* principal amount of General Obligation Bonds, Series 2004-C (Subject to Alternative Minimum Tax) (the “Bonds”), of the city of Lawrence, Kansas, to be dated September 15, 2004, as described in your Notice of Sale dated August ~~{24}~~ [31], 2004, the Bonds to bear interest as follows:

MATURITY [SEPTEMBER 1]	PRINCIPAL AMOUNT*	INTEREST RATE	MATURITY [SEPTEMBER 1]	PRINCIPAL AMOUNT*	INTEREST RATE

2005	$120,000	_______%	2011	$130,000	_______%
2006	120,000	_______%	2012	135,000	_______%
2007	120,000	_______%	2013	140,000	_______%
2008	125,000	_______%	2014	145,000	_______%
2009	125,000	_______%	2015	150,000	_______%
2010	130,000	_______%	2016	160,000]	_______%

We will pay the par value of the Bonds plus accrued interest to the date of delivery plus a total premium in the amount set forth below.

Based on a 360 day year, we calculate the net interest cost to the City to be as follows:

Total interest cost to maturity at the rates specified..... $_____________

Less Premium (if any) ............................................. ($____________)

Net interest cost ...................................................... $_____________

Estimate of true interest cost (TIC) on the basis of this

bid calculated as described in the Notice of Sale............ ___________%

LIST ACCOUNT MEMBERS: Submitted by: ____________________

_________________________________

_________________________________ By: ____________________________

_________________________________

_________________________________ Phone (_____) ____________________

* * *

This proposal is accepted on September 14, 2004.

Attest:

___________________________________ ___________________________________

City Clerk Mayor