HomeMy WebLinkAbout8.a. Attachment - Official StatementOFFICIAL STATEMENT DATED OCTOBER 19, 2011
N EW ISSUE Rating: Requested from Moody's Investors Service
In the opinion of Kennedy & Graven, Chartered, Bond Counsel, based on present federal and Minnesota laws, regulations, rulings and decisions, at the time of their issuance
and delivery to the original purchaser, interest on the Bonds is excluded from gross income for purposes of United States income tax and is excluded, to the same extent, in
computing both gross and taxable net income for purposes of State of Minnesota income tax (other than Minnesota franchise taxes measured by income and imposed on
corporations and financial institutions). Interest on the Bonds is not an item of tax preference for purposes of the alternative minimum tax imposed on individuals and
corporations; however, interest is taken into account in determining adjusted current earnings for the purpose of computing the federal alternative minimum tax imposed on
corporations. No opinion will be expressed by Bond Counsel regarding other state or federal tax consequences caused by the receipt or accrual of interest on the Bonds or
rising with respect to ownership of the Bonds. See “TAX EXEMPTION” and “OTHER FEDERAL AND STATE TAX CONSIDERATIONS” herein. a
$2,080,000* City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 2011A
(Book Entry Only)
Dated Date: November 15, 2011 Interest Due: Each February 1 and August 1,
commencing August 1, 2012
The Bonds will mature February 1 as follows:
2013 $405,000 2014 $415,000 2015 $415,000 2016 $420,000 2017 $425,000
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term
bonds. All term bonds shall be subject to mandatory sinking fund redemption at a price of par plus accrued
interest to the date of redemption and must conform to the maturity schedule set forth above.
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to
levy direct general ad valorem taxes. In addition, the City will pledge special assessments against benefited
properties. The proceeds will be used to finance various improvement projects within the City.
Proposals shall be for not less than $2,063,360 and accrued interest on the total principal amount of the
Bonds. Proposals shall specify rates in integral multiples of 5/100 or 1/8 of 1%. Rates are not required to be
in level or ascending order; however, the rate for any maturity cannot be more than 1% lower than the highest
rate of any of the preceding maturities. Proposals must be accompanied by a good faith deposit in the amount
of $20,800 in the form of a certified or cashier’s check payable to the order of the City, a wire transfer, or a
Financial Surety Bond and delivered to Springsted Incorporated prior to the time proposals will be opened.
Award of the Bonds will be on the basis of True Interest Cost (TIC).
The City will designate the Bonds as “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the
Internal Revenue Code of 1986, as amended, and the Bonds will not be subject to the alternative minimum tax
for individuals.
The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the
name of Cede & Co., as nominee of The Depository Trust Company (“DTC”). DTC will act as securities
depository for the Bonds. Individual purchases may be made in book-entry form only, in the principal amount
of $5,000 and integral multiples thereof. Investors will not receive physical certificates representing their
interest in the Bonds purchased. (See “Book Entry System” herein.) U.S. Bank National Association, Saint
Paul, Minnesota will serve as registrar (the “Registrar”) for the Bonds. The Bonds will be available for delivery
at DTC on or about November 29, 2011.
* Preliminary; subject to change.
PROPOSALS RECEIVED: November 1, 2011 (Tuesday) until 10:30 A.M., Central Time
AWARD: November 1, 2011 (Tuesday) at 7:30 P.M., Central Time
Further information may be obtained from SPRINGSTED Incorporated,
Financial Advisor to the City, 380 Jackson Street, Suite 300,
Saint Paul, Minnesota 55101-2887 (651) 223-3000
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission,
this document, as the same may be supplemented or corrected by the Issuer from time to time
(collectively, the “Official Statement”), may be treated as an Official Statement with respect to
the Obligations described herein that is deemed final as of the date hereof (or of any such
supplement or correction) by the Issuer, except for the omission of certain information referred
to in the succeeding paragraph.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Obligations, together with any other
information required by law, shall constitute a “Final Official Statement” of the Issuer with
respect to the Obligations, as that term is defined in Rule 15c2-12. Any such addendum shall,
on and after the date thereof, be fully incorporated herein and made a part hereof by reference.
By awarding the Obligations to any underwriter or underwriting syndicate submitting a Proposal
therefor, the Issuer agrees that, no more than seven business days after the date of such
award, it shall provide without cost to the senior managing underwriter of the syndicate to which
the Obligations are awarded copies of the Official Statement and the addendum or addenda
described in the preceding paragraph in the amount specified in the Terms of Proposal.
The Issuer designates the senior managing underwriter of the syndicate to which the
Obligations are awarded as its agent for purposes of distributing copies of the Final Official
Statement to each Participating Underwriter. Any underwriter delivering a Proposal with respect
to the Obligations agrees thereby that if its bid is accepted by the Issuer (i) it shall accept such
designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters
of the Obligations for purposes of assuring the receipt by each such Participating Underwriter of
the Final Official Statement.
No dealer, broker, salesman or other person has been authorized by the Issuer to give any
information or to make any representations with respect to the Obligations, other than as
contained in the Official Statement or the Final Official Statement, and if given or made, such
other information or representations must not be relied upon as having been authorized by the
Issuer. Certain information contained in the Official Statement and the Final Official Statement
may have been obtained from sources other than records of the Issuer and, while believed to be
reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND
EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL
STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE
OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE
UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS
BEEN NO CHANGE IN THE AFFAIRS OF THE ISSUER SINCE THE DATE THEREOF.
References herein to laws, rules, regulations, resolutions, agreements, reports and other
documents do not purport to be comprehensive or definitive. All references to such documents
are qualified in their entirety by reference to the particular document, the full text of which may
contain qualifications of and exceptions to statements made herein. Where full texts of
documents prepared by or on behalf of the Issuer have not been included as appendices to the
Official Statement or the Final Official Statement, they will be furnished on request.
Any CUSIP numbers for the Obligations included in the Final Official Statement are provided for
convenience of the owners and prospective investors. The CUSIP numbers for the Obligations
have been assigned by an organization unaffiliated with the Issuer. The Issuer is not
responsible for the selection of the CUSIP numbers and makes no representation as to the
accuracy thereof as printed on the Obligations or as set forth in the Final Official Statement. No
assurance can be given that the CUSIP numbers for the Obligations will remain the same after
the date of issuance and delivery of the Obligations.
TABLE OF CONTENTS
Page(s)
Terms of Proposal............................................................................................................... i-v
Introductory Statement........................................................................................................ 1
Continuing Disclosure......................................................................................................... 1
The Bonds........................................................................................................................... 2
Authority and Purpose ........................................................................................................ 4
Security and Financing ....................................................................................................... 5
Future Financing................................................................................................................. 5
Litigation.............................................................................................................................. 5
Legality................................................................................................................................ 5
Tax Exemption.................................................................................................................... 5
Other Federal and State Tax Considerations ..................................................................... 6
Bank-Qualified Tax-Exempt Obligations............................................................................. 8
Rating.................................................................................................................................. 8
Financial Advisor................................................................................................................. 8
Certification......................................................................................................................... 8
City Property Values ........................................................................................................... 9
City Indebtedness............................................................................................................... 10
City Tax Rates, Levies and Collections .............................................................................. 14
Funds on Hand ................................................................................................................... 15
City Investments ................................................................................................................. 15
General Information Concerning the City............................................................................ 16
Governmental Organization and Services .......................................................................... 19
Proposed Form of Legal Opinion............................................................................... Appendix I
Continuing Disclosure Certificate............................................................................... Appendix II
Summary of Tax Levies, Payment Provisions, and
Minnesota Real Property Valuation ........................................................................ Appendix III
Excerpt of 2010 Annual Financial Statements........................................................... Appendix IV
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$2,080,000 * CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2011A
(BOOK ENTRY ONLY)
Proposals for the Bonds and the Good Faith Deposit (“Deposit”) will be received on Tuesday,
November 1, 2011, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals will be opened
and tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M.,
Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the
time of sale specified above. All bidders are advised that each Proposal shall be deemed to
constitute a contract between the bidder and the City to purchase the Bonds regardless of the
manner in which the Proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax
(651) 223-3046 to Springsted. Signed Proposals, without final price or coupons, may be
submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting
to Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax
(651) 223-3046 for inclusion in the submitted Proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via
PARITY®. For purposes of the electronic bidding process, the time as maintained by PARITY®
shall constitute the official time with respect to all Bids submitted to PARITY®. Each bidder shall
be solely responsible for making necessary arrangements to access PARITY® for purposes of
submitting its electronic Bid in a timely manner and in compliance with the requirements of the
Terms of Proposal. Neither the City, its agents nor PARITY® shall have any duty or obligation to
undertake registration to bid for any prospective bidder or to provide or ensure electronic access
to any qualified prospective bidder, and neither the City, its agents nor PARITY® shall be
responsible for a bidder’s failure to register to bid or for any failure in the proper operation of, or
have any liability for any delays or interruptions of or any damages caused by the services of
PARITY®. The City is using the services of PARITY® solely as a communication mechanism to
conduct the electronic bidding for the Bonds, and PARITY® is not an agent of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this
Terms of Proposal shall control. Further information about PARITY®, including any fee charged,
may be obtained from:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
* Preliminary; subject to change.
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DETAILS OF THE BONDS
The Bonds will be dated November 15, 2011, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2012. Interest will be
computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts* as follows:
2013 $405,000 2014 $415,000 2015 $415,000 2016 $420,000 2017 $425,000
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds or the maturity amounts offered for sale. Any such increase or
reduction will be made in multiples of $5,000 in any of the maturities. In the event the principal
amount of the Bonds is increased or reduced, any premium offered or any discount taken by the
successful bidder will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Bonds is increased or reduced.
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at
a price of par plus accrued interest to the date of redemption and must conform to the maturity
schedule set forth above. In order to designate term bonds, the proposal must specify “Years of
Term Maturities” in the spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company (“DTC”),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition, the City will pledge special
assessments against benefited properties. The proceeds will be used to finance various
improvement projects within the City.
BIDDING PARAMETERS
Proposals shall be for not less than $2,063,360 and accrued interest on the total principal
amount of the Bonds.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made. Rates shall be in integral multiples
of 5/100 or 1/8 of 1%. Rates are not required to be in level or ascending order; however, the
rate for any maturity cannot be more than 1% lower than the highest rate of any of the
preceding maturities. Bonds of the same maturity shall bear a single rate from the date of the
Bonds to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
Proposals, regardless of method of submission, shall be accompanied by a Deposit in the
amount of $20,800, in the form of a certified or cashier's check, a wire transfer, or Financial
Surety Bond and delivered to Springsted Incorporated prior to the time proposals will be
opened. Each bidder shall be solely responsible for the timely delivery of their Deposit whether
by check, wire transfer or Financial Surety Bond. Neither the City nor Springsted Incorporated
have any liability for delays in the transmission of the Deposit.
Any Deposit made by certified or cashier’s check should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota
55101.
Any Deposit sent via wire transfer should be sent to Springsted Incorporated as the City’s
agent according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
for credit to Springsted Incorporated, Account #635-5007954
Ref: Rosemount, MN Series 2011A Good Faith Deposit
Contemporaneously with such wire transfer, the bidder shall send an e-mail to
bond_services@springsted.com, including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies,
and (iv) the return wire instructions if such bidder is not awarded the Bonds.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the City
following the award of the Bonds. Any Deposit made by check or wire transfer by an
unsuccessful bidder will be returned to such bidder following City action relative to an award of
the Bonds.
If a Financial Surety Bond is used, it must be from an insurance company licensed to issue
such a bond in the State of Minnesota and pre-approved by the City. Such bond must be
submitted to Springsted Incorporated prior to the opening of the proposals. The Financial
Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial
Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then
that underwriter is required to submit its Deposit to the City in the form of a certified or cashier’s
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time on the next business day following the award. If such Deposit is not received by that time,
the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
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The Deposit received from the purchaser, the amount of which will be deducted at settlement,
will be deposited by the City and no interest will accrue to the purchaser. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and (iii) reject any proposal that the City determines to have failed to comply with
the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser through DTC in New York, New York. Delivery will be subject to receipt by the
purchaser of an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis,
Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of
settlement, payment for the Bonds shall be made in federal, or equivalent, funds that shall be
received at the offices of the City or its designee not later than 12:00 Noon, Central Time.
Unless compliance with the terms of payment for the Bonds has been made impossible by
action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by
the City by reason of the purchaser's non-compliance with said terms for payment.
CONTINUING DISCLOSURE
On the date of actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Certificate (the “Undertaking”) whereunder the City will covenant for the
benefit of the owners of the Bonds to provide certain financial and other information about the
City and notices of certain occurrences to information repositories as specified in and required
by SEC Rule 15c2-12(b)(5).
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OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent information
relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement
within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of
the Official Statement or for any additional information prior to sale, any prospective purchaser
is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson Street,
Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a “Final Official Statement” of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 80 copies of the
Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring
the receipt by each such Participating Underwriter of the Final Official Statement.
Dated October 4, 2011 BY ORDER OF THE CITY COUNCIL
/s/ Amy Domeier
City Clerk
OFFICIAL STATEMENT
$2,080,000 *
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2011A
(BOOK ENTRY ONLY)
INTRODUCTORY STATEMENT
This Official Statement contains certain information relating to the City of Rosemount,
Minnesota (the “City” or the “Issuer”) and its issuance of $2,080,000* General Obligation
Improvement Bonds, Series 2011A (the “Bonds,” the “Obligations” or the “Issue”). The Bonds
are general obligations of the City for which the City pledges its full faith and credit and power to
levy direct general ad valorem taxes. In addition, the City will pledge special assessments
against benefited properties.
Inquiries may be directed to Mr. Jeffrey May, Finance Director, City of Rosemount,
2875 145th Street West, Rosemount, Minnesota 55068-4997, or by telephoning
(651) 423-4411. Inquiries may also be made to Springsted Incorporated, 380 Jackson Street,
Suite 300, St. Paul, Minnesota 55101-2887, or by telephoning (651) 223-3000.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with SEC Rule 15c2-12 (the “Rule”), pursuant to
the Award Resolution and Continuing Disclosure Certificate to be executed on behalf of the City
on or before closing, the City has and will covenant (the “Undertaking”) for the benefit of holders or
beneficial owners of the Bonds to provide certain financial information and operating data relating
to the City to the Municipal Securities Rulemaking Board annually, and to provide notices of the
occurrence of certain events enumerated in the Rule to the Municipal Securities Rulemaking
Board and to any state information depository. The specific nature of the Undertaking, as well as
the information to be contained in the annual report or the notices of material events, is set forth in
the Undertaking in substantially the form attached hereto as Appendix II, subject to such
modifications thereof or additions thereto as: (i) consistent with requirements under the Rule, (ii)
required by the purchaser of the Bonds from the City and (iii) acceptable to the Mayor and Clerk of
the City.
The City is in compliance in all material respects with all previous undertakings under the Rule to
provide annual reports or notices of material events. A failure by the City to comply with the
Undertaking will not constitute an event of default on the Bonds (although holders or other
beneficial owners of the Bonds will have the sole remedy of bringing an action for specific
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds or the maturity amounts offered for sale. Any such increase or
reduction will be made in multiples of $5,000 in any of the maturities. In the event the principal
amount of the Bonds is increased or reduced, any premium offered or any discount taken by the
successful bidder will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Bonds is increased or reduced.
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performance). Nevertheless, any such failure within the last five years must be reported in
accordance with the Rule and must be considered by any broker, dealer or municipal securities
dealer before recommending the purchase or sale of the Bonds in the secondary market.
Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and
their market price.
THE BONDS
General Description
The Bonds are dated as of November 15, 2011 and issued in book entry form. Interest on the
Bonds is payable February 1 and August 1 of each year, commencing August 1, 2012. Interest
will be payable to the holder (initially Cede & Co.) registered on the books of the Registrar as of
the fifteenth day of the calendar month next preceding such interest payment date. Principal of
and interest on the Bonds will be paid as described in the section herein entitled “Book Entry
System.” Bonds will mature in the amounts and on the dates shown on the cover of this Official
Statement. U.S. Bank National Association, Saint Paul, Minnesota will serve as Registrar for
the Bonds. The City will pay for registration services.
Optional Redemption
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
Book Entry System
The Depository Trust Company (“DTC”), New York, New York, will act as securities depository
for the Obligations. The Obligations will be issued as fully-registered securities registered in the
name of Cede & Co. (DTC’s partnership nominee) or such other name as may be requested by
an authorized representative of DTC. One fully-registered certificate will be issued for each
maturity of the Obligations, each in the aggregate principal amount of such maturity, and will be
deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a
“banking organization” within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a “clearing corporation” within the meaning of the New York Uniform
Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section 17A
of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for securities
that its participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post-trade
settlement among Direct Participants of sales and other securities transactions in deposited
securities through electronic computerized book-entry transfers and pledges between Direct
Participants’ accounts. This eliminates the need for physical movement of securities
certificates. Direct Participants include securities brokers and dealers, banks, trust companies,
clearing corporations, and certain other organizations. DTC is a wholly-owned subsidiary of
The Depository Trust & Clearing Corporation (“DTCC”). DTCC is the holding company for DTC,
the National Securities Clearing Corporation, and Fixed Income Clearing Corporation, all of
which are registered clearing agencies. DTCC is owned by the users of its regulated
subsidiaries. Access to the DTC system is also available to others such as securities brokers
and dealers, banks, trust companies and clearing corporations that clear through or maintain a
custodial relationship with a Direct Participant, either directly or indirectly (“Indirect
Participants”). The DTC Rules applicable to its Participants are on file with the Securities and
Exchange Commission. More information about DTC can be found at www.dtcc.com.
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Purchases of Obligations under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Obligations on DTC’s records. The ownership
interest of each actual purchaser of each Obligation (“Beneficial Owner”) is in turn to be
recorded on the Direct and Indirect Participants’ records. Beneficial Owners will not receive
written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to
receive written confirmations providing details of the transaction, as well as periodic statements
of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner
entered into the transaction. Transfers of ownership interests in the Obligations are to be
accomplished by entries made on the books of Direct and Indirect Participants acting on behalf
of Beneficial Owners. Beneficial Owners will not receive certificates representing their
ownership interests in the Obligations, except in the event that use of the book-entry system for
the Obligations is discontinued.
To facilitate subsequent transfers, all Obligations deposited by Direct Participants with DTC are
registered in the name of DTC’s partnership nominee, Cede & Co., or such other name as may
be requested by an authorized representative of DTC. The deposit of Obligations with DTC and
their registration in the name of Cede & Co. or such other DTC nominee do not effect any
change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the
Obligations; DTC’s records reflect only the identity of the Direct Participants to whose accounts
such Obligations are credited, which may or may not be the Beneficial Owners. The Direct and
Indirect Participants will remain responsible for keeping account of their holdings on behalf of
their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time. Beneficial Owners of Obligations
may wish to take certain steps to augment the transmission to them of notices of significant
events with respect to the Obligations, such as redemptions, tenders, defaults, and proposed
amendments to the Obligation documents. For example, Beneficial Owners of the Obligations
may wish to ascertain that the nominee holding the Obligations for their benefit has agreed to
obtain and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may
wish to provide their names and addresses to the registrar and request that copies of the
notices be provided directly to them.
Redemption notices are required to be sent to DTC. If less than all of the Obligations within a
maturity are being redeemed, DTC’s practice is to determine by lot the amount of the interest of
each Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any such other DTC nominee) will consent or vote with
respect to the Obligations unless authorized by a Direct Participant in accordance with DTC’s
procedures. Under its usual procedures, DTC mails an Omnibus Proxy to the Issuer or Bond
Registrar as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.’s
consenting or voting rights to those Direct Participants to whose accounts the Obligations are
credited on the record date (identified in a listing attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Obligations will be made to
Cede & Co. or such other nominee as may be requested by an authorized representative of
DTC. DTC’s practice is to credit Direct Participants’ accounts, upon DTC’s receipt of funds and
corresponding detail information from the Issuer or its agent on the payable date in accordance
with their respective holdings shown on DTC’s records. Payments by Participants to Beneficial
Owners will be governed by standing instructions and customary practices, as is the case with
securities held for the accounts of customers in bearer form or registered in “street name,” and
will be the responsibility of such Participant and not of DTC, Agent, the Bond Registrar, or the
Issuer, subject to any statutory or regulatory requirements as may be in effect from time to time.
Payment of redemption proceeds, distributions, and dividend payments to Cede & Co. (or such
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other nominee as may be requested by an authorized representative of DTC) is the
responsibility of the Bond Registrar, Issuer, or the Issuer's agent. Disbursement of such
payments to Direct Participants will be the responsibility of DTC, and disbursement of such
payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
A Beneficial Owner shall give notice to elect to have its Obligations purchased or tendered,
through its Participant, to Agent, and shall effect delivery of such Obligations by causing the
Direct Participant to transfer the Participant’s interest in the Obligations, on DTC’s records, to
Agent. The requirement for physical delivery of Obligations in connection with an optional
tender or a mandatory purchase will be deemed satisfied when the ownership rights in the
Obligations are transferred by Direct Participants on DTC’s records and followed by a book-
entry credit of tendered Obligations to Trustee’s DTC account.
DTC may discontinue providing its services as securities depository with respect to the
Obligations at any time by giving reasonable notice to the Issuer or its agent. Under such
circumstances, in the event that a successor securities depository is not obtained, certificates
are required to be printed and delivered.
The Issuer may decide to discontinue use of the system of book-entry-only transfers through
DTC (or a successor securities depository). In that event, certificates will be printed and
delivered to DTC.
The information in this section concerning DTC and DTC’s book-entry system has been
obtained from sources that the Issuer believes to be reliable, but the Issuer takes no
responsibility for the accuracy thereof.
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to Minnesota Statues, Chapters 475 and 429. The
proceeds of the Bonds, along with available City funds, will be used to finance various
improvement projects within the City. The composition of the Bonds is as follows:
Sources of Funds:
Principal Amount $2,080,000
Available City Funds 316,620
Total Sources of Funds $2,396,620
Uses of Funds:
Project Costs $2,351,101
Costs of Issuance 28,879
Allowance for Discount Bidding 16,640
Total Uses of Funds $2,396,620
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SECURITY AND FINANCING
The Bonds are general obligations of the City for which the City pledges its full faith and credit
and power to levy direct general ad valorem taxes. In addition, the City will pledge special
assessments against benefited properties. Special assessments in the total aggregate amount
of the costs of the improvements are expected to be filed on or about November 30, 2011 for
first collection in 2012. Assessments will be spread over a term of five years with equal annual
payments of principal. Interest on the unpaid balance will be charged at a rate of 2.00% over
the true interest rate received on the Bonds.
The City expects to make its first levy for the Bonds in 2011 for collection in 2012. Each year's
collection of taxes and special assessments, if collected in full, will be sufficient to pay 105% of
the interest payment due August 1 in the collection year and the principal and interest payment
due February 1 of the following year.
FUTURE FINANCING
The City does not anticipate issuing any additional long-term general obligation debt for at least
the next 90 days.
LITIGATION
The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or
the City's ability to meet its financial obligations.
LEGALITY
The Bonds are subject to approval as to certain matters by Kennedy & Graven, Chartered, of
Minneapolis, Minnesota, as Bond Counsel. Bond Counsel has not participated in the
preparation of this Official Statement and will not pass upon its accuracy, completeness, or
sufficiency. Bond Counsel has not examined nor attempted to examine or verify, any of the
financial or statistical statements, or data contained in this Official Statement and will express
no opinion with respect thereto. A legal opinion in substantially the form set out in Appendix I
herein will be delivered at closing.
TAX EXEMPTION
At closing Kennedy & Graven, Chartered, of Minneapolis, Minnesota, Bond Counsel, will render
an opinion that, at the time of their issuance and delivery to the original purchaser, under
present federal and State of Minnesota laws, regulations, rulings and decisions (which excludes
any pending legislation which may have a retroactive effect), the interest on each Bond is
excluded from gross income for purposes of United States income tax and is excluded, to the
same extent, in computing both gross income and taxable net income for purposes of State of
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Minnesota income tax (other than Minnesota franchise taxes measured by income and imposed
on corporations and financial institutions), and that interest on the Bonds is not an item of tax
preference for purposes of computing the federal alternative minimum tax imposed on
individuals and corporations or the Minnesota alternative minimum tax applicable to individuals,
estates or trusts; however, interest on the Bonds is included as part of adjusted current earnings
for purposes of computing the alternative minimum tax imposed on certain corporations. No
opinion will be expressed by Bond Counsel regarding other federal or state tax consequences
caused by the receipt or accrual of interest on the Bonds or arising with respect to ownership of
the Bonds. Preservation of the exclusion of interest on the Bonds from federal gross income
and state gross and taxable net income, however, depends upon compliance by the City with all
requirements of the Internal Revenue Code of 1986, as amended, (the “Code”) that must be
satisfied subsequent to the issuance of the Bonds in order that interest thereon be (or continue
to be) excluded from federal gross income and state gross and taxable net income.
The City will covenant to comply with requirements necessary under the Code to establish and
maintain the Bonds as tax-exempt under Section 103 thereof, including without limitation,
requirements relating to temporary periods for investments and limitations on amounts invested
at a yield greater than the yield on the Bonds.
OTHER FEDERAL AND STATE TAX CONSIDERATIONS
Property and Casualty Insurance Companies
Property and casualty insurance companies are required to reduce the amount of their loss
reserve deduction by 15% of the amount of tax-exempt interest received or accrued during the
taxable year on certain obligations, including interest on the Bonds.
Foreign Insurance Companies
Foreign companies carrying on an insurance business in the United States are subject to a tax
on income which is effectively connected with their conduct of any trade or business in the
United States, including “net investment income.” Net investment income includes tax-exempt
interest such as interest on the Bonds.
Branch Profits Tax
A foreign corporation is subject to a branch profits tax equal to 30% of the “dividend equivalent
amount” for the taxable year. The “dividend equivalent amount” is the foreign corporation's
“effectively connected earnings and profits” adjusted for increase or decrease in “U.S. net
equity.” A branch's earnings and profits may include tax-exempt municipal bond interest, such
as interest on the Bonds.
Passive Investment Income of S Corporations
Passive investment income, including interest on the Bonds, may be subject to federal income
taxation under Section 1375 of the Code for an S corporation that has Subchapter C earnings
and profits at the close of the taxable year if more than 25% of the gross receipts of such
S corporation is passive investment income.
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Financial Institutions
Prior to the adoption of the Internal Revenue Code of 1986, as amended, (the “Code”), financial
institutions were generally permitted to deduct 80% of their interest expenses allocable to the
ownership of tax-exempt obligations. Under the Code, financial institutions are generally not
entitled to a deduction for tax-exempt obligations purchased after August 7, 1986. However, the
City will designate the Bonds as qualified tax-exempt obligations pursuant to Section 265(b)(3)
of the Code which permits financial institutions to deduct interest expenses allocable to the
Bonds to the extent permitted under prior law.
Future Tax Legislation
The exclusion of interest on the Bonds from gross income from federal income tax purposes
and the exclusion of interest on the Bonds from the net taxable income of individuals, estates,
and trusts for State income tax purposes is not mandated or guaranteed by the United States
Constitution or the Minnesota Constitution. Accordingly, federal laws providing that interest on
the obligations of the states and the political subdivisions of the states is not includable in gross
income for federal income tax purposes and Minnesota laws providing that interest on the
obligations of the State is not includable in the net taxable income of individuals, estates, and
trusts for State income tax purposes may be subject to change. In the event federal or
Minnesota law is amended in a manner that results in interest on the Bonds becoming subject
to federal or Minnesota income taxation, or if federal or Minnesota income tax rates are
reduced, the market value of the Bonds may be adversely affected.
On September 12, 2011, President Obama released a legislative proposal, entitled the
American Jobs Act of 2011 that would, among other things, subject interest on tax-exempt
bonds, including the Bonds, to a federal income tax for taxpayers with adjusted gross incomes
above certain thresholds for tax years beginning after 2012. The proposal has not yet been
passed by either the United States House of Representatives or the United State Senate and it
is not possible to predict whether this proposal will be enacted into law. The likelihood of such
legislation being enacted or whether the currently proposed terms will be altered or removed
during the legislative process cannot be reliably predicted. If enacted into law, such a proposal
could affect the value or marketability of tax-exempt bonds, including the Bonds. Each
prospective purchaser of the Bonds should consult their tax advisors regarding the impact of
such proposed legislation on such purchaser.
General
The preceding is not a comprehensive list of all federal or State tax consequences which may
arise from the receipt or accrual of interest on the Bonds. The receipt or accrual of interest on
the Bonds may otherwise affect the federal income tax (or Minnesota income tax or franchise
tax) liability of the recipient based on the particular taxes to which the recipient is subject and
the particular tax status of other items of income or deductions. All prospective purchasers of
the Bonds are advised to consult their own tax advisors as to the tax consequences of, or tax
considerations for, purchasing or holding the Bonds.
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BANK-QUALIFIED TAX-EXEMPT OBLIGATIONS
The City will designate the Bonds as “qualified tax-exempt obligations” for purposes of
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the ability of
financial institutions to deduct from income for federal income tax purposes, interest expense
that is allocable to carrying and acquiring tax-exempt obligations.
RATING
An application for a rating of the Bonds has been made to Moody's Investors Service
(“Moody's”), 7 World Trade Center, 250 Greenwich Street, 23rd Floor, New York, New York. If a
rating is assigned, it will reflect only the opinion of Moody's. Any explanation of the significance
of the rating may be obtained only from Moody's.
There is no assurance that the rating, if assigned, will continue for any given period of time, or
that such rating will not be revised or withdrawn if, in the judgment of Moody's, circumstances
so warrant. A revision or withdrawal of the rating may have an adverse effect on the market
price of the Bonds.
FINANCIAL ADVISOR
The City has retained Springsted Incorporated, Public Sector Advisors, of St. Paul, Minnesota,
as financial advisor (the “Financial Advisor”) in connection with the issuance of the Bonds. In
preparing the Official Statement, the Financial Advisor has relied upon governmental officials,
and other sources, who have access to relevant data to provide accurate information for the
Official Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to
independently verify the accuracy of such information. The Financial Advisor is not a public
accounting firm and has not been engaged by the City to compile, review, examine or audit any
information in the Official Statement in accordance with accounting standards. The Financial
Advisor is an independent advisory firm and is not engaged in the business of underwriting,
trading or distributing municipal securities or other public securities and therefore will not
participate in the underwriting of the Bonds.
CERTIFICATION
The City has authorized the distribution of this Official Statement for use in connection with the
initial sale of the Bonds. As of the date of the settlement of the Bonds, the Purchaser will be
furnished with a certificate signed by the appropriate officers of the City. The certificate will
state that as of the date of the Official Statement, the Official Statement did not and does not as
of the date of the certificate contain any untrue statement of material fact or omit to state a
material fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading.
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CITY PROPERTY VALUES
2010 Indicated Market Value of Taxable Property: $2,139,329,960*
* Indicated market value is calculated by dividing the City’s taxable market value of $2,113,658,000 by
the 2010 sales ratio of 98.8% for the City as determined by the State Department of Revenue.
Excludes mobile home valuation of $3,531,900.
2010 Taxable Net Tax Capacity: $24,311,493*
2010 Net Tax Capacity $24,321,601
Less: Captured Tax Increment Tax Capacity (601,475)
Contribution to Fiscal Disparities (2,406,274)
Plus: Distribution from Fiscal Disparities 2,997,641
2010 Taxable Net Tax Capacity $24,311,493
* Excludes mobile home valuation of $35,063.
2010 Taxable Net Tax Capacity by Class of Property
Real Estate:
Residential Homestead $17,137,970 70.5%
Commercial/Industrial, Public Utility,
and Railroad* 5,590,011 23.0
Agricultural 483,892 2.0
Residential Non-Homestead 413,899 1.7
Personal Property 685,721 2.8
Total $24,311,493 100.0%
* Reflects adjustments for fiscal disparities and captured tax increment tax capacity.
Trend of Values
Indicated Taxable Taxable Net
Market Value(a) Market Value Tax Capacity(b)
2010 $2,139,329,960 $2,113,658,000 $24,311,493
2009 2,261,466,162 2,238,851,500 25,430,852
2008 2,481,136,059 2,367,003,800 26,648,399
2007 2,549,310,668 2,365,760,300 26,349,633
2006 2,469,808,927 2,185,780,900 24,307,723
(a) Indicated market values are calculated by dividing the taxable market value by the sales ratio
determined for the City each year by the State Department of Revenue. (b) See Appendix III for a description of taxable net tax capacity and the Minnesota property tax system.
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Ten of the Largest Taxpayers in the City
2010 Net
Taxpayer Type of Business Tax Capacity
Great Northern Oil Co./Flint Hills
Resources/Koch Refining Oil Refinery $2,869,163
Xcel Energy Utility 297,424
Clarel Corporation Retail 189,250
146th Street Partners LP Commercial 152,550
Northern Natural Gas Company Utility 128,618
Rosemount Crossing LLC Retail 106,016
Webb Properties Manufacturing 96,494
Individuals Commercial 90,444
Bigos-Rosemount LLC
(Cannon Equipment) Manufacturing 87,660
CF Industries, Inc. (Cenex) Fertilizer 86,086
Total $4,103,705*
* Great Northern Oil Co./Flint Hills Resources/Koch Refining represents 11.8% of the City’s 2010
taxable net tax capacity. The remaining nine taxpayers represent 5.1% of the City’s 2010 taxable net
tax capacity.
CITY INDEBTEDNESS
Legal Debt Limit*
Debt Limit (3% of Taxable Market Value) $63,409,740
Less: Outstanding Debt Subject to Limit (5,020,000)
Legal Debt Margin at November 15, 2011 $58,389,740
* The legal debt margin is referred to statutorily as the “Net Debt Limit” and permits debt to be offset by
debt service funds and current revenues which are applicable to the payment of debt in the current
fiscal year. To conservatively state the legal debt margin, no such offset has been used to increase
the margin as shown above.
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General Obligation Debt Supported by Taxes(a)
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-15-11
8-15-01 $2,045,000 City Hall 2-1-2012 $ 95,000(b)
12-1-01 725,000 Community Center Refunding 2-1-2013 165,000
6-15-05 2,630,000 Fire Station 2-1-2025 2,115,000
11-1-05 1,115,000 Fire Station Refunding 2-1-2016 605,000
6-1-06 370,000 Equipment 2-1-2012 80,000
5-1-07 360,000 Public Safety Revenue 2-1-2014 165,000(c)
10-15-07 450,000 Equipment 2-1-2013 195,000
10-30-08 385,000 Equipment 2-1-2014 245,000
12-1-10 1,355,000 Public Facility Refunding 2-1-2022 1,355,000(b)
Total $5,020,000 (a) These issues are subject to the legal debt limit. (b) These bonds were issued by the Rosemount Port Authority and are being repaid from ad valorem
taxes levied by the City. (c) Represents the City’s proportionate share (4.90%) of the Dakota Communication Center’s
$7,315,000 Public Safety Revenue Bonds, Series 2007, dated May 1, 2007.
General Obligation Debt Supported Primarily by Special Assessments
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-15-11
7-1-02 $3,395,000 Local Improvements 2-1-2013 $ 100,000(a)
7-1-03 1,945,000 Local Improvements 2-1-2014 580,000(b)
6-1-06 4,405,000 Local Improvements 2-1-2017 2,685,000
11-15-11 2,080,000 Local Improvements (the Bonds) 2-1-2017 2,080,000
Total $5,445,000 (a) It is anticipated that the February 1, 2012 through February 1, 2013 maturities will be redeemed in full
by the City on December 1, 2011. (b) It is anticipated that the February 1, 2012 through February 1, 2014 maturities will be redeemed in full
by the City on December 1, 2011.
General Obligation Debt Supported by Tax Increments*
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-15-11
4-10-08 $2,765,000 Taxable Tax Increment 2-1-2024 $2,765,000
4-10-08 3,275,000 Tax Increment 2-1-2032 3,275,000
Total $6,040,000
* These bonds were issued by the Rosemount Port Authority, but are secured by the general obligation
pledge of the City.
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General Obligation Debt Supported by Revenues
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-15-11
9-1-00 $1,160,000 Water Revenue 2-1-2016 $ 500,000
11-1-05 2,990,000 Water Revenue 2-1-2016 1,630,000
10-15-07 1,210,000 Water Revenue 2-1-2018 910,000
12-1-10 1,545,000 Storm Water and Water
Revenue Refunding 2-1-2018 1,545,000
Total $4,585,000
Annual Calendar Year Debt Service Payments Including the Bonds
G.O. Debt Supported
G.O. Debt Supported Primarily by
by Taxes Special Assessments
Principal Principal
Year Principal & Interest Principal & Interest(a)
2011 (at 11-15) (Paid) (Paid) (Paid) (Paid)
2012 $ 715,000 $ 894,987 $ 675,000 $ 805,939
2013 680,000 820,795 1,090,000 1,199,813
2014 510,000 630,810 1,055,000 1,137,055
2015 380,000 486,291 865,000 922,721
2016 390,000 483,960 875,000 910,548
2017 275,000 358,220 885,000 897,069
2018 280,000 354,213
2019 290,000 354,423
2020 300,000 353,831
2021 310,000 352,491
2022 325,000 355,294
2023 180,000 200,268
2024 190,000 202,470
2025 195,000 199,193
Total $5,020,000(b) $6,047,246 $5,445,000 $5,873,145
(a) Includes the Bonds at an assumed average annual interest rate of 1.05%. (b) 82.3% of this debt will be retired within ten years.
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Annual Calendar Year Debt Service Payments Including the Bonds (continued)
G.O. Debt Supported G.O. Debt Supported
by Tax Increments by Revenues
Principal Principal
Year Principal & Interest Principal & Interest
2011 (at 11-15) -0- (Paid) (Paid) (Paid)
2012 $ 35,000 $ 310,760 $ 800,000 $ 933,478
2013 75,000 348,010 840,000 950,313
2014 110,000 378,385 860,000 945,315
2015 150,000 411,885 745,000 804,328
2016 195,000 448,260 775,000 807,188
2017 230,000 472,635 315,000 328,343
2018 245,000 475,760 250,000 254,265
2019 260,000 478,135
2020 270,000 474,716
2021 285,000 474,960
2022 300,000 473,873
2023 315,000 471,960
2024 330,000 469,485
2025 350,000 473,673
2026 365,000 474,373
2027 380,000 474,473
2028 395,000 473,874
2029 410,000 472,573
2030 430,000 475,563
2031 445,000 472,844
2032 465,000 474,416
Total $6,040,000* $9,480,613 $4,585,000 $5,023,230 * 26.0% of this debt will be retired within ten years.
Indirect General Obligation Debt
Debt Applicable to
2010 Taxable G.O. Debt Tax Capacity in City
Taxing Unit(a) Net Tax Capacity As of 11-15-11(b) Percent Amount
Dakota County $ 435,418,110 $ 58,115,000(c) 5.6% $ 3,254,440
ISD No. 196 (Rosemount-
Apple Valley-Eagan) 160,243,087 120,799,864 14.3 17,274,381
ISD No. 199 (Inver Grove-
Pine Bend) 29,025,315 50,620,000 4.9 2,480,380
ISD No. 200 (Hastings) 34,808,837 51,920,000 0.1 51,920
etropolitan Council 3,212,664,247 21,720,000(d) 0.8 173,760 M
Total $23,234,881 (a ) Only those units with debt outstanding are shown here.
(b) Excludes general obligation debt supported by revenues and tax and aid anticipation debt. Includes
annual appropriation lease revenue debt. (c) Includes Dakota County’s proportionate share ($305,000) of the Dakota Communication Center’s
$7,315,000 Public Safety Revenue Bonds, Series 2007. (d) Excludes general obligation debt payable from waste water revenues, 911 user fees, housing rental
payments, transit revenue debt and general obligation grant anticipation notes. Includes certificates
of participation.
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Debt Ratios
G.O. G.O. Indirect
Direct Debt* & Direct Debt
To 2010 Indicated Market Value ($2,139,329,960) 0.77% 1.86%
Per Capita (21,874 – 2010 U.S. Census Bureau) $755 $1,817 * Excludes general obligation debt supported by revenues.
NOTE: To conservatively state the debt ratios, no offset of debt service funds on hand has been used in
the above calculations.
CITY TAX RATES, LEVIES AND COLLECTIONS
Tax Capacity Rates
2010/11
For
2006/07 2007/08 2008/09 2009/10 Total Debt Only
Dakota County(a) 25.127% 25.184% 25.821% 27.269% 29.149% -0-
City of Rosemount(b) 42.521 42.440 42.323 43.358 44.661 1.052%
ISD No. 196 (Rosemount-
Apple Valley-Eagan)(c) 23.607 21.1.6 21.109 25.391 26.959 10.722
Special Districts(d) 5.024 4.996 4.916 4.987 5.199 1.424
Total 96.279% 93.756% 94.169% 101.005% 105.968% 13.198% (a) Dakota County also has a 2010/11 tax rate of 0.00537% spread on the market value of property in
support of debt service. (b) The City also has a 2010/11 tax rate of 0.00697% spread on the market value of property in support
of debt service on general obligation fire station bonds. (c) Independent School District No. 196 (Rosemount-Apple Valley-Eagan) also has a 2010/11 tax rate of
0.22601% spread on the market value of property in support of an excess operating levy and buildings. (d) Special districts include Metropolitan Council, Metropolitan Transit District, Mosquito Control, Dakota
County Community Development Agency, Dakota County Light Rail and Vermillion River Watershed
District.
NOTE: Taxes are determined by multiplying the net tax capacity by the tax capacity rate, plus multiplying
the referendum market value by the market value rate. This table does not include the market
value based rates. See Appendix III.
Tax Levies and Collections
Collected During Collected and/or Abated
Net Collection Year as of 3-31-11
Levy/Collect Levy* Amount Percent Amount Percent
2010/11 $ 9,662,434 (In Process of Collection)
2009/10 9,550,077 $9,451,527 99.0% $9,482,757 99.3%
2008/09 9,931,167 9,793,023 98.6 9,892,960 99.6
2007/08 10,013,396 9,849,067 98.4 9,994,195 99.8
2006/07 9,297,707 9,164,874 98.6 9,291,918 99.9
* The net levy excludes state aid for property tax relief and fiscal disparities, if applicable. The net levy
is the basis for computing tax capacity rates. See Appendix III.
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FUNDS ON HAND
As of August 31, 2011
Fund Cash and Investments
General $ 6,549,559
Special Revenue 652,915
Port Authority 414,745
Debt Service:
Tax Supported 1,533,723
Assessment Supported 1,892,495
Port Authority Supported 424,989
General Obligation Revenue Supported 1,688,675
Capital Projects 6,022,411
Water, Sewer and Storm Water 14,694,339
Arena 272,620
Total $34,146,471
CITY INVESTMENTS
City funds are invested in accordance with Minnesota Statutes, Section 118A and the City's
investment policy which is more restrictive than State statutes. The City investment portfolio is
managed in a manner to attain a market rate of return while preserving and protecting the capital
of the overall portfolio. The Finance Director or the City Administrator is responsible for investing
all funds, including making investment decisions on a daily basis and monitoring the portfolio.
Pursuant to the City's investment policy the City is authorized to invest in the following:
1. Governmental Securities: Instruments such as bonds, notes, bills, mortgages and other
securities which are direct obligations of the federal government or its agencies, with the
principal fully guaranteed by the U.S. government or its agencies. The City will not
invest in any mortgage or mortgage-related security unless a return of principal is
completely guaranteed by a federal entity.
2. Certificate of Deposit.
3. Repurchase Agreement.
4. Reverse Repurchase Agreement.
5. Prime Commercial Paper.
6. Any security which is a general obligation of the State of Minnesota or any of its
municipalities.
7. Bankers acceptances of United States banks eligible for purchase by the Federal
Reserve System.
Collateralization is required on two types of investments, certificates of deposit and repurchase
agreements. In order to anticipate market changes and provide a level of security for all funds,
the collateralization level is 110% of the market value of principal and accrued interest.
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The City attempts to diversify its investments according to type and maturity. The portfolio, as
much as possible, contains both short-term and long-term investments. The long-term portion
of the portfolio, meaning longer than five years, may not exceed 35% of the total funds in the
portfolio. This is done to reduce overall market risk of rates changing.
As of August 31, 2011, the City had a total of $30,015,928 invested funds as follows:
Amount Invested
Type of Security Length of Investment as of 8-31-11
Money Market Savings N/A $ 9,615,510
Certificates of Deposit Less than 12 months 5,848,000
Certificates of Deposit One to ten years 2,402,000
Government Asset Backed Securities Ten years or less 11,411,240
Government Asset Backed Securities Over ten years 739,178
Total $30,015,928
GENERAL INFORMATION CONCERNING THE CITY
The City of Rosemount, located in northern Dakota County, is a southern suburb of the
Minneapolis/Saint Paul metropolitan area. The City encompasses an area of 22,560 acres and
had a 2010 U.S. Census count of 21,874, a 49.6% increase from the City's 2000 Census count
of 14,619. The City’s population trend is shown below.
Percent
Population Change
2010 Census 21,874 49.6%
2000 Census 14,619 69.6
1990 Census 8,622 --
A major contributor to the City's tax base and economy is an industrial complex sited on 6,200
acres in the northeastern portion of the City near the Mississippi River. Firms located there
include Flint Hills Resources’ Pine Bend Refinery; CF Industries, Inc. ; Continental Nitrogen &
Resource Corporation; Endres Processing Ltd. ; SKB (industrial waste containment facility); and
Spectro Alloys Corporation. Mid-American Pipeline Company transports gas from southern
states and operates a bottling station at Pine Bend. Minnesota Pipeline Company transports
Canadian and North Dakota crude oil to the Flint Hills Resources’ Pine Bend Refinery.
Flint Hills Resources’ Pine Bend Refinery is a leading producer of petroleum products in
Minnesota converting 320,000 barrels of crude oil into gasoline each day. This Rosemount
company employs 875 full-time workers.
The University of Minnesota's Rosemount Research Center is located on a 7,500 acre tract of
land of which approximately 3,200 acres are situated in the City. This facility is utilized by the
University, other research agencies, and private firms for agricultural and other research
projects.
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Major Employers
Approximate
Number
Employer Product/Service of Employees
Independent School District No. 196
(Rosemount-Apple Valley-Eagan) Public education 3,500(a)
Flint Hills Resources’ Pine Bend Refinery Oil refinery 875
Dakota County Technical College Education 350(b)
Intermediate School District No. 917 Education 350
Wayne Transports General freight trucking 242
Endres Processing Ltd. Livestock feed 145
Cub Food’s Grocery store 127
Spectro Alloys Corporation Aluminum alloys 125
Cannon Equipment Company Manufacturing of metal parts 100
Greif Brothers Corporation Multiwall bags 85
City of Rosemount Government 79(c)
Applebee’s Restaurant 60
Reese Enterprises, Inc. Plastics manufacturing 36
(a) Represents District-wide employment. (b) Includes full- and part-time employees. 225 FTE employees. (c) Excludes over 160 part-time and seasonal employees.
Source: Telephone survey of individual employers, October 2011.
Retail Sales and Effective Buying Income (EBI) for Dakota County
Total Retail Total Median
Sales ($000) EBI ($000) Household EBI
2010 $6,786,831 $10,287,060 $56,964
2009 6,197,129 10,543,345 59,620
2008 6,694,404 10,270,100 57,581
2007 6,836,681 10,124,173 56,622
2006 6,874,945 9,764,823 55,575
The 2010 median household EBI for the State of Minnesota is $45,289.
Source: Claritas, Inc.
Labor Force Data
August 2011 August 2010
Civilian Unemployment Civilian Unemployment
Labor Force Rate Labor Force Rate
Dakota County 234,402 6.5% 233,550 7.0%
Minneapolis/St. Paul MSA 1,873,745 6.7 1,863,853 7.1
State of Minnesota 3,009,794 6.7 2,987,825 7.0
Source: Minnesota Department of Employment and Economic Development,
http://www.positivelyminnesota.com/. 2011 figures are preliminary.
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Building Permits Issued by the City
Total Permits New Single Family Homes
Number Value Number Value
2011 (to 8-31) 558 $ 18,311,833 36 $ 9,099,000
2010 851 32,177,918 80 18,197,011
2009 914 31,839,499 88 19,190,195
2008 1,649 67,945,640 237 26,809,851
2007 1,368 63,085,633 143 27,084,690
2006 1,055 70,879,026 224 46,503,749
2005 1,293 123,374,042 454 88,551,982
2004 1,158 126,348,047 551 110,674,682
2003 1,128 96,872,709 440 87,119,479
2002 1,398 82,398,820 330 61,571,739
Recent and Proposed Development
As the national and state economies continued to slip, non-residential construction in the City
also decreased. In 2010 and through the first six months of 2011, construction throughout the
City was primarily for remodeling, maintenance and repairs, with several retail tenant finishes
and two existing business expansions. Many of the larger construction projects continued to be
for institutional users who were maintaining existing buildings. A large multi-family remodel
occurred in 2010 after years of working with the owner and various state agencies.
Similarly, new residential development has also decreased. New dwelling units in 2010 totaled
80 and are projected to be similar in 2011. The City is anticipating more dwelling unit
construction in 2012 as three new subdivisions are in various stages of approval with a fourth
developer looking to gain entitlements over the winter for summer 2012 construction. New
subdivision approval is desired as vacant single family lots in the community become depleted.
The following lists platted lots available for development. The majority of these lots are
approved as attached housing parcels.
Remaining
Units lots as of
Development/Developer Housing Approved 8-31-11
Biscayne Pointe 4th Addition/Heritage
Development Single Family 73 1
Biscayne Pointe North/Giles Property Single Family 22 1
Connemara Crossing/Basic Builders, Inc. Single Family 44 19
Glendalough 2nd/Lennar Single Family 7 1
Glendalough 3rd/Lennar Single Family 29 4
Glendalough 4th/Lennar Single Family 25 25
GlenRose of Rosemount/
Dean Johnson Homes Multi-Family 76 64
Harmony 2nd Addition/CPDC Multi-Family 81 22
Harmony 3rd Addition/CPDC Single Family 17 3
Harmony 5th Addition/Rsmt Land Corp. Single Family 64 33
Harmony 6th Addition/Rottlund Single Family 50 28
Pickens/Rottlund Single Family 7 7
Rosewood Estates/Progress Land Single Family 55 1
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In 2010, there was approximately $32,000,000 of new value added in the community. Similarly,
it is expected that the valuation for 2011 will be approximately $30,000,000. Much of that value
continues to come from residential development but, rather than new dwelling units, there are
more permits drawn on existing residences.
Financial Institutions
Full service banking is provided by the First State Bank of Rosemount and Rosemount National
Bank, both located in the City. Branches of Central Bank, TCF National Bank and Vermillion
State Bank are also located in the City.
Source: Federal Deposit Insurance Corporation, http://www4.fdic.gov/.
Education
The major portion of the City is part of Independent School District No. 196 (Rosemount-Apple
Valley-Eagan), headquartered in the City. The District's enrollment for the 2010/11 school year
was approximately 27,496 students in grades kindergarten through twelve. The District is one of
the largest employers in the City with approximately 3,500 full-time and part-time employees
District-wide. The physical plant of the District consists of 19 elementary schools, six middle
schools, four senior high schools and three special education schools. Of these schools, two
elementary schools, one junior high, and one senior high are located in the City of Rosemount.
Small portions of the City are located in Independent School District No. 199 (Inver Grove-Pine
Bend) and Independent School District No. 200 (Hastings).
The Dakota County Technical College is also located in the City. The Technical College,
located on a 96-acre site, opened in 1973. The Technical College has a total enrollment of over
4,500 students. In addition, the Technical College offers an extensive adult education program.
GOVERNMENTAL ORGANIZATION AND SERVICES
Organization
Rosemount was established as a municipal corporation in 1858, and became a statutory City in
1974. The City has a Mayor-Council form of government, with the four Council members being
elected to overlapping four-year terms of office. The present City Council is listed below.
Expiration of Term
William H. Droste Mayor December 31, 2014
Matthew Kearney Council Member December 31, 2012
Mark DeBettignies Council Member December 31, 2014
Kimberly Shoe-Corrigan Council Member December 31, 2014
Jeffrey Weisensel Council Member December 31, 2012
The City's chief administrative officer is the City Administrator, who is appointed by and serves
at the discretion of the City Council. Mr. Dwight D. Johnson was appointed to the position of
City Administrator in August 2008. Mr. Jeffrey A. May, who has served in the City's Finance
Department since 1985, was appointed as the City's Finance Director in March 1991. Mr. May
also serves as the City Treasurer. Ms. Amy Domeier serves as the City Clerk.
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Growth and development of the City is guided by the Comprehensive Land Use Plan, most
recently adopted in 2009, covering development expectations until the year 2030. The
Comprehensive Plan outlines the long-range land use plan and development policies of the
community, and is designed to encourage and promote orderly development and growth,
perpetuating a sound and steady growth in the City tax base.
Services
Police protection for the City is provided by 22 full-time officers, and four other police personnel.
Fire protection is provided by 41 trained volunteers. The City has a class 5 insurance rating.
The City completed an expansion of its public works facility in 1999. The expansion was funded
by a 20-year internally funded lease-purchase agreement, effective January 20, 1999, in the
amount of $548,000.
Municipal water, sanitary sewer and storm water services are provided to virtually all of the
developed areas of the City. The municipal water service is provided by eight wells with four water
towers having a total storage capacity of 3,500,000 gallons. The maximum pumping capacity is
12,096,000 gallons per day with an average demand of 2,261,972 gallons pumped daily in 2010.
It is the City's policy to finance all of its lateral sanitary sewer and water improvements by
special assessments filed against benefited property; however, there is a provision for deferred
assessments, in which case it may be necessary to provide some tax support. Core facilities
are intended to be financed from water and sewer connection charges, but these too may
require some tax support in the event sufficient connections do not occur in a timely manner.
To date, tax support has not been necessary.
The City finances the construction and long-term maintenance of its storm water core facilities
through the operation of a storm water utility. Each property in the City pays a quarterly
“stormwater user fee” and an initial connection charge to support the program.
Interceptor sewer lines and wastewater treatment plants in the seven-county metropolitan area,
of which the City is a part, are under the jurisdiction of the Metropolitan Council Environmental
Services (“MCES”). MCES finances its operations through user charges based on usage. The
City is responsible for the construction and maintenance of sewer laterals.
Employee Pensions
All full-time and certain part-time employees of the City are covered by defined benefit pension
plans administered by the Public Employees Retirement Association of Minnesota (PERA).
PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees
Police and Fire Fund (PEPFF), which are cost-sharing multiple-employer public employees
retirement plans. PERF members belong to either the Coordinated Plan or the Basic Plan.
Coordinated members are covered by Social Security and Basic members are not. All
employees of the City covered by PERF belong to the Coordinated Plan. All police officers, fire
fighters and peace officers who qualify for membership by statute are covered by the PEPFF.
The City’s contributions to the PERF for the years ending December 31, 2010, 2009, and 2008
were $258,857, $248,891, and $242,631, respectively. The City’s contributions to the PEPFF
for the years ending December 31, 2010, 2009, and 2008 were $249,472, $240,374, and
$219,322 respectively.
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Other Post Employment Benefits
The Governmental Accounting Standards Board (GASB) has issued Statement No. 45,
Accounting and Financial Reporting by Employers for Post Employment Benefits Other Than
Pensions (GASB 45), which addresses how state and local governments must account for and
report their obligations related to post employment healthcare and other non-pension benefits
(referred to as Other Post Employment Benefits or “OPEB”). GASB 45 requires that local
governments account for and report the annual cost of OPEB and the outstanding obligations
and commitments related to OPEB in essentially the same manner as they currently do for
pensions.
The City does not provide health insurance for retired City employees. All former employees
who were eligible to participate in the City’s health insurance program while employed with the
City are allowed to continue their coverage after employment has ended through COBRA.
However, this coverage is to be paid in full at the former employee’s expense. The City’s
greatest liability under GASB 45 comes through an implicit rate subsidy. The implicit rate
subsidy is the additional cost of health insurance to current employees and the City as a result
of the higher cost of providing health insurance to retirees. The retiree benefits discussed
above are the City’s only OPEB.
General Fund Budget
2010 2011
Adopted Budget Adopted Budget
Revenues:
General Property Taxes $ 8,287,000 $ 8,275,100
Licenses and Permits 382,600 360,100
Intergovernmental 566,500 624,700
Charges for Services 655,900 658,400
Fines and Forfeits 125,000 125,000
Recreational Fees 267,300 252,300
Miscellaneous Revenues 178,200 181,300
Transfers In 3,500 3,500
Total Revenues $10,466,000 $10,480,400
Expenditures:
General Government $ 2,750,800 $ 2,512,700
Public Safety 3,295,700 3,422,100
Public Works 3,140,000 3,168,000
Parks and Recreation 1,279,500 1,377,600
Total Expenditures $10,466,000 $10,480,400
APPENDIX I
PROPOSED FORM OF LEGAL OPINION
Kennedy
Graven
CHARTERED
Offices in
Minneapolis
Saint Paul
St. Cloud
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
www.kennedy-graven.com
Affirmative Action Equal Opportunity Employer
&
$2,080,000
General Obligation Improvement
Bonds, Series 2011A
City of Rosemount
Dakota County, Minnesota
We have acted as bond counsel to the City of Rosemount, Dakota County, Minnesota (the
“Issuer”) in connection with the issuance by the Issuer of its General Obligation Improvement
Bonds, Series 2011A (the “Bonds”), originally dated as of November 15, 2011, and issued in the
original aggregate principal amount of $2,080,000. In such capacity and for the purpose of rendering
this opinion we have examined certified copies of certain proceedings, certifications and other documents,
and applicable laws as we have deemed necessary. Regarding questions of fact material to this opinion,
we have relied on certified proceedings and other certifications of public officials and other documents
furnished to us without undertaking to verify the same by independent investigation. Under existing
laws, regulations, rulings and decisions in effect on the date hereof, and based on the foregoing we are of
the opinion that:
1. The Bonds have been duly authorized and executed, and are valid and binding general
obligations of the Issuer, enforceable in accordance with their terms.
2. The principal of and interest on the Bonds are payable from special assessments levied or
to be levied on property specially benefitted by local improvements and ad valorem taxes required by law
to be levied on all taxable property of the Issuer, which taxes are not subject to any limitation as to rate or
amount.
3. Interest on the Bonds is excluded from gross income of the recipient for federal income
tax purposes and, to the same extent, is excluded from taxable net income of individuals, trusts, and
estates for Minnesota income tax purposes, and is not a preference item for purposes of the computation
of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax
imposed on individuals, trusts and estates. However, such interest is taken into account in determining
adjusted current earnings for the purpose of computing the federal alternative minimum tax imposed on
certain corporations and is subject to Minnesota franchise taxes on corporations (including financial
institutions) measured by income. The opinion set forth in this paragraph is subject to the condition that
the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be
satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be,
excluded from gross income for federal income tax purposes and from taxable net income for Minnesota
income tax purposes. The Issuer has covenanted to comply with all such requirements. Failure to comply
with certain of such requirements may cause interest on the Bonds to be included in gross income for
federal income tax purposes and taxable net income for Minnesota income tax purposes retroactively to
the date of issuance of the Bonds. We express no opinion regarding tax consequences arising with
respect to the Bonds other than as expressly set forth herein.
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4. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited
by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditor’s rights
generally and by equitable principles, whether considered at law or in equity.
We have not been asked and have not undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly
we express no opinion with respect thereto.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention
or any changes in law that may hereafter occur.
Dated _______, 2011 at Minneapolis, Minnesota.
APPENDIX II
CONTINUING DISCLOSURE CERTIFICATE
$2,080,000
City of Rosemount, Minnesota
General Obligation Improvement
Bonds, Series 2011A
_____________, 2011
This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and delivered by the
City of Rosemount, Minnesota (the “Issuer”) in connection with the issuance of its General Obligation
Improvement Bonds, Series 2011A, in the original aggregate principal amount of $2,080,000 (the “Bonds”).
The Bonds are being issued pursuant to an award resolution adopted by the City Council of the Issuer on
November 1, 2011 (the “Resolution”) and delivered to __________________ (the “Purchaser”) on the date
hereof. Pursuant to the Resolution, the Issuer has covenanted and agreed to provide continuing disclosure of
certain financial information and operating data and timely notices of the occurrence of certain events. In
addition, the Issuer hereby covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed
and delivered by the Issuer for the benefit of the Holders (defined herein) of the Bonds in order to assist the
Participating Underwriters (defined herein) in complying with SEC Rule 15c2-12(b)(5). This Disclosure
Certificate, together with the Resolution, constitutes the written agreement or contract for the benefit of the
Holders of the Bonds that is required by the Rule.
Section 2. Definitions. In addition to the defined terms set forth in the Resolution, which apply
to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the
following capitalized terms shall have the following meanings:
“Annual Report” means any annual report provided by the Issuer pursuant to, and as described in,
Sections 3 and 4 of this Disclosure Certificate.
“Audited Financial Statements” means the Issuer’s annual financial statements, prepared in
accordance with generally accepted accounting principles (“GAAP”) for Governmental Units as Prescribed by
the Governmental Accounting Standards Board (“GASB”).
“EMMA” means the Electronic Municipal Market Access system operated by the MSRB as the
primary portal for complying with the continuing disclosure requirements of the Rule.
“Final Official Statement” means the deemed final official statement dated ________________,
2011, plus the addendum thereto which together constitute the final official statement delivered in connection
with the Bonds, which is available from the MSRB.
“Fiscal Year” means the fiscal year of the Issuer.
“Holder” means the person in whose name a security is registered or a beneficial owner of such a
security.
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“Issuer” means the City of Rosemount, Minnesota, which is the obligated person with respect to the
Bonds.
“Material Event” means any of the events listed in Section 5(a) of this Disclosure Certificate.
“MSRB” means the Municipal Securities Rulemaking Board located at 1900 Duke Street, Suite 600,
Alexandria, VA 22314.
“Participating Underwriter” means any of the original underwriter(s) of the Bonds (including the
Purchaser) required to comply with the Rule in connection with the offering of the Bonds.
“Repository” means EMMA.
“Rule” means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities Exchange Act
of 1934, as the same may be amended from time to time, and including written interpretations thereof by the
SEC.
“SEC” means the Securities and Exchange Commission.
Section 3. Provision of Annual Financial Information and Audited Financial Statements.
(a) The Issuer shall provide, as soon as available, but not later than 12 months after the end of
the Fiscal Year commencing with the year that ends December 31, 2011, the Repository with
an Annual Report which is consistent with the requirements of Section 4 of this Disclosure
Certificate. The Annual Report may be submitted as a single document or as separate
documents comprising a package, and may cross-reference other information as provided in
Section 4 of this Disclosure Certificate; provided that the Audited Financial Statements of the
Issuer may be submitted separately from the balance of the Annual Report and will be
submitted as soon as available.
(b) If the Issuer is unable or fails to provide to the Repository an Annual Report by the date
required in subsection (a), the Issuer shall send a notice of that fact to the Repository and the
MSRB.
(c) The Issuer shall determine each year prior to the date for providing the Annual Report the
name and address of each Repository.
Section 4. Content of Annual Reports. The Issuer’s Annual Report shall contain or incorporate
by reference the following sections of the Final Official Statement:
1. City Property Values
2. City Indebtedness
3. City Tax Rates, Levies and Collections
In addition to the items listed above, the Annual Report shall include Audited Financial Statements
submitted in accordance with Section 3 of this Disclosure Certificate.
Any or all of the items listed above may be incorporated by reference from other documents,
including official statements of debt issues of the Issuer or related public entities, which have been submitted
to the Repository or the SEC. If the document incorporated by reference is a final official statement, it must
also be available from the MSRB. The Issuer shall clearly identify each such other document so incorporated
by reference.
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Section 5. Reporting of Material Events.
(a) This Section 5 shall govern the giving of notice of the occurrence of any of the following
events (“Material Events”) with respect to the Bonds:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701–TEB) or other
material notices or determinations with respect to the tax status of the security, or other
material events affecting the tax status of the security;
7. Modifications to rights of security holders, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the securities, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of the obligated person;
13. The consummation of a merger, consolidation, or acquisition involving an obligated
person or the sale of all or substantially all of the assets of the obligated person, other
than in the ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such actions,
other than pursuant to its terms, if material; and
14. Appointment of a successor or additional trustee or the change of name of a trustee, if
material.
(b) The Issuer shall file a notice of such occurrence with the Repository or with the MSRB
within 10 business days of the occurrence of the Material Event.
(c) Unless otherwise required by law and subject to technical and economic feasibility, the Issuer
shall employ such methods of information transmission as shall be requested or recommended by the
designated recipients of the Issuer’s information.
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Section 6. EMMA. The SEC has designated EMMA as a nationally recognized municipal
securities information repository and the exclusive portal for complying with the continuing disclosure
requirements of the Rule. Until the EMMA system is amended or altered by the MSRB and the SEC, the
Issuer shall make all filings required under this Disclosure Certificate solely with EMMA.
Section 7. Termination of Reporting Obligation. The Issuer’s obligations under the Resolution
and this Disclosure Certificate shall terminate upon the legal defeasance, or upon the redemption or payment
in full of all the Bonds.
Section 8. Agent. The Issuer may, from time to time, appoint or engage a dissemination agent
to assist it in carrying out its obligations under the Resolution and this Disclosure Certificate, and may
discharge any such agent, with or without appointing a successor dissemination agent.
Section 9. Amendment; Waiver. Notwithstanding any other provision of the Resolution or this
Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure
Certificate may be waived, if such amendment or waiver is supported by an opinion of nationally recognized
bond counsel to the effect that such amendment or waiver would not, in and of itself, cause a violation of the
Rule. The provisions of the Resolution constituting the undertaking and this Disclosure Certificate, or any
provision hereof, shall be null and void in the event that the Issuer delivers to the Repository an opinion of
nationally recognized bond counsel to the effect that those portions of the Rule which require the Resolution
and this Disclosure Certificate are invalid, have been repealed retroactively or otherwise do not apply to the
Bonds. The provisions of the Resolution and this Disclosure Certificate may be amended without the consent
of the Holders of the Bonds, but only upon the delivery by the Issuer to the Repository of the proposed
amendment and an opinion of nationally recognized bond counsel to the effect that such amendment, and
giving effect thereto, will not adversely affect the compliance of the Resolution and this Disclosure Certificate
and by the Issuer with the Rule.
Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to
prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this
Disclosure Certificate or any other means of communication, or including any other information in any
Annual Report or notice of occurrence of a Material Event, in addition to that which is required by this
Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of
occurrence of a Material Event in addition to that which is specifically required by this Disclosure Certificate,
the Issuer shall have no obligation under this Disclosure Certificate to update such information or include it in
any future Annual Report or notice of occurrence of a Material Event.
Section 11. Default. In the event of a failure of the Issuer to comply with any provision of this
Disclosure Certificate any Holder of the Bonds may take such actions as may be necessary and appropriate,
including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its
obligations under the Resolution and this Disclosure Certificate. A default under this Disclosure Certificate
shall not be deemed an event of default with respect to the Bonds and the sole remedy under this Disclosure
Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action
to compel performance.
Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the
Issuer, the Participating Underwriters and Holders from time to time of the Bonds, and shall create no rights in
any other person or entity.
IN WITNESS WHEREOF, we have executed this Disclosure Certificate in our official capacities
effective as of the date and year first written above.
CITY OF ROSEMOUNT, MINNESOTA
Mayor
City Clerk
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APPENDIX III
SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND
MINNESOTA REAL PROPERTY VALUATION
(effective through levy year 2010/payable year 2011)
Following is a summary of certain statutory provisions effective through levy year 2010/payable
year 2011 relative to tax levy procedures, tax payment and credit procedures, and the
mechanics of real property valuation. The summary does not purport to be inclusive of all such
provisions or of the specific provisions discussed, and is qualified by reference to the complete
text of applicable statutes, rules and regulations of the State of Minnesota.
Property Valuations (Chapter 273, Minnesota Statutes)
Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by
statute, be appraised at least once every five years as of January 2 of the year of appraisal.
With certain exceptions, all property is valued at its market value, which is the value the
assessor determines to be the price the property to be fairly worth, and which is referred to as
the “Estimated Market Value.”
Taxable Market Value. The Taxable Market Value is the value that property taxes are based
on, after all reductions, limitations, exemptions and deferrals. It is also the value used to
calculate a municipality’s legal debt limit.
Indicated Market Value. The Indicated Market Value is determined by dividing the Taxable
Market Value of a given year by the same year's sales ratio determined by the State
Department of Revenue. The Indicated Market Value serves to eliminate disparities between
individual assessors and equalize property values statewide.
Net Tax Capacity. The Net Tax Capacity is the value upon which net taxes are levied, extended
and collected. The Net Tax Capacity is computed by applying the class rate percentages
specific to each type of property classification against the Taxable Market Value. Class rate
percentages vary depending on the type of property as shown on the last page of this Appendix.
The formulas and class rates for converting Taxable Market Value to Net Tax Capacity
represent a basic element of the State's property tax relief system and are subject to annual
revisions by the State Legislature.
Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity rate, plus
multiplying the referendum market value by the market value rate.
Property Tax Payments and Delinquencies
(Chapters 275, 276, 277, 279-282 and 549, Minnesota Statutes)
Ad valorem property taxes levied by local governments in Minnesota are extended and collected
by the various counties within the State. Each taxing jurisdiction is required to certify the annual
tax levy to the county auditor within five (5) working days after December 20 of the year
preceding the collection year. A listing of property taxes due is prepared by the county auditor
and turned over to the county treasurer on or before the first business day in March.
The county treasurer is responsible for collecting all property taxes within the county. Real
estate and personal property tax statements are mailed out by March 31. One-half (1/2) of the
taxes on real property is due on or before May 15. The remainder is due on or before
October 15. Real property taxes not paid by their due date are assessed a penalty that,
depending on the type of property, increases from 2% to 4% on the day after the due date. In
the case of the first installment of real property taxes due May 15, the penalty increases to 4%
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or 8% on June 1. Thereafter, an additional 1% penalty shall accrue each month through
October 1 of the collection year for unpaid real property taxes. In the case of the second
installment of real property taxes due October 15, the penalty increases to 6% or 8% on
November 1 and increases again to 8% or 12% on December 1. Personal property taxes
remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the
unpaid tax. However, personal property that is owned by a tax-exempt entity, but is treated as
taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties
as real property.
On the first business day of January of the year following collection all delinquencies are subject
to an additional 2% penalty, and those delinquencies outstanding as of February 15 are filed for
a tax lien judgment with the district court. By March 20 the county auditor files a publication of
legal action and a mailing of notice of action to delinquent parties. Those property interests not
responding to this notice have judgment entered for the amount of the delinquency and
associated penalties. The amount of the judgment is subject to a variable interest determined
annually by the Department of Revenue, and equal to the adjusted prime rate charged by banks
but in no event is the rate less than 10% or more than 14%.
Property owners subject to a tax lien judgment generally have five years (5) in the case of all
property located outside of cities or in the case of residential homestead, agricultural homestead
and seasonal residential recreational property located within cities or three (3) years with
respect to other types of property to redeem the property. After expiration of the redemption
period, unredeemed properties are declared tax forfeit with title held in trust by the State of
Minnesota for the respective taxing districts. The county auditor, or equivalent thereof, then
sells those properties not claimed for a public purpose at auction. The net proceeds of the sale
are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any
remaining balance in most cases being divided on the following basis: county - 40%; town or
city - 20%; and school district - 40%.
Property Tax Credits (Chapter 273, Minnesota Statutes)
In addition to adjusting the taxable value for various property types, primary elements of
Minnesota's property tax relief system are: property tax levy reduction aids; the renters credit,
which relates property taxes to income and provides relief on a sliding income scale; and
targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The
circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application by
the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid,
equalization aid, county program aid and disparity reduction aid.
Levy Limitations for Counties and Cities (Chapter 275)
The 2008 Legislature enacted provisions to establish levy limitations for taxes levied
for collection in 2009, 2010, and 2011. Basically, levy increases for cities over 2,500 population
and for counties are limited to its levy aid base or levy limit base for collection in the prior
year, (1) plus the lesser of 3.9 percent or the percentage growth in the implicit price
deflator, (2) plus an adjustment for population increases and (3) plus increases in taxable
market value due to new construction of certain class 3 property (commercial/industrial).
Certain property tax levies are authorized outside of the new overall levy limitations
(“special levies”). Special levies can be made outside of levy limits for multiple purposes
including, but not limited to, bonded indebtedness, certificates of indebtedness, tax or aid
anticipation certificates of indebtedness, and to provide for the bonded indebtedness portion of
payments made to another political subdivision of the State of Minnesota. In order to receive
approval for any special levy claims outside of the overall levy limitation, requests for
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such special levies must be submitted to the Commissioner of Revenue by the date specified in
the year in which the levy is to be made for collection in the following year. The Commissioner
of Revenue has the authority to approve, reduce, or deny a special levy request.
Final adjustments to all levies must be made by the Department of Revenue on or before
December 10.
Debt Limitations
All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory
“net debt” limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is
defined as the amount remaining after deducting from gross debt the amount of current
revenues that are applicable within the current fiscal year to the payment of any debt and the
aggregate of the principal of the following:
1. Obligations issued for improvements that are payable wholly or partially from the
proceeds of special assessments levied upon benefited property.
2. Warrants or orders having no definite or fixed maturity.
3. Obligations payable wholly from the income from revenue producing conveniences.
4. Obligations issued to create or maintain a permanent improvement revolving fund.
5. Obligations issued for the acquisition and betterment of public waterworks systems,
and public lighting, heating or power systems, and any combination thereof, or for any
other public convenience from which revenue is or may be derived.
6. Certain debt service loans and capital loans made to school districts.
7. Certain obligations to repay loans.
8. Obligations specifically excluded under the provisions of law authorizing their
issuance.
9. Certain obligations to pay pension fund liabilities.
10. Debt service funds for the payment of principal and interest on obligations other than
those described above.
11. Obligations issued to pay judgments against the municipality.
Levies for General Obligation Debt
(Sections 475.61 and 475.74, Minnesota Statutes)
Any municipality that issues general obligation debt must, at the time of issuance, certify levies
to the county auditor of the county(ies) within which the municipality is situated. Such levies
shall be in an amount that if collected in full will, together with estimates of other revenues
pledged for payment of the obligations, produce at least five percent in excess of the amount
needed to pay principal and interest when due. Notwithstanding any other limitations upon the
ability of a taxing unit to levy taxes, its ability to levy taxes for a deficiency in prior levies for
payment of general obligation indebtedness is without limitation as to rate or amount.
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Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes)
“Fiscal Disparities Law”
The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as
“Fiscal Disparities,” was first implemented for taxes payable in 1975. Forty percent of the
increase in commercial-industrial (including public utility and railroad) net tax capacity valuation
since 1971 in each assessment district in the Minneapolis/St. Paul seven-county metropolitan
area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott,
excluding the City of New Prague, and Washington Counties) is contributed to an area-wide tax
base. A distribution index, based on the factors of population and real property market value
per capita, is employed in determining what proportion of the net tax capacity value in the area-
wide tax base shall be distributed back to each assessment district.
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STATUTORY FORMULAE: CONVERSION OF TAXABLE MARKET VALUE (TMV) TO
NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS
Local Tax
Payable
Local Tax
Payable
Local Tax
Payable
Local Tax
Payable
Local Tax
Payable
Property Type 2007 2008 2009 2010 2011
Residential Homestead (1a)
Up to $500,000 1.00% 1.00% 1.00% 1.00% 1.00%
Over $500,000 1.25% 1.25% 1.25% 1.25% 1.25%
Residential Non-homestead
Single Unit
Up to $500,000 1.00% 1.00% 1.00% 1.00% 1.00%
Over $500,000 1.25% 1.25% 1.25% 1.25% 1.25%
1-3 unit and undeveloped land (4b1) 1.25% 1.25% 1.25% 1.25% 1.25%
Market Rate Apartments
Regular (4b1) 1.25% 1.25% 1.25% 1.25% 1.25%
Low-Income (4d) 0.75% 0.75% 0.75% 0.75% 0.75%
Commercial/Industrial/Public Utility (3a)
Up to $150,000 1.50% 1.50%1 1.50%1 1.50%1 1.50%1
Over $150,000 2.00% 2.00%1 2.00%1 2.00%1 2.00%1
Electric Generation Machinery 2.00% 2.00% 2.00% 2.00% 2.00%
Commercial Seasonal Residential
Homestead Resorts (1c)
Up to $600,0003 0.55% 0.55% 0.55% 0.50% 0.50%
$600,000 - $2,300,0003 1.00% 1.00% 1.00% 1.00% 1.00%
Over $2,300,0003 1.25% 1.25%1 1.25%1 1.25%1 1.25%1
Seasonal Resorts (4c)
Up to $500,000 1.00% 1.00%1 1.00%1 1.00%1 1.00%1
Over $500,000 1.25% 1.25%1 1.25%1 1.25%1 1.25%1
Non-Commercial (4c1)
Up to $500,000 1.00%1 1.00%1 2 1.00%1 2 1.00%1 2 1.00%1 2
Over $500,000 1.25%1 1.25%1 2 1.25%1 2 1.25%1 2 1.25%1 2
Disabled Homestead (1b)
Up to $50,0003 0.45% 0.45% 0.45% 0.45% 0.45%
$50,000 to $500,0003 1.00% 1.00% 1.00% 1.00% 1.00%
Over $500,000 1.25% 1.25% 1.25% 1.25% 1.25%
Agricultural Land & Buildings
Homestead (2a)
Up to $500,000 1.00%1 1.00% 1.00% 1.00% 1.00%
Over $500,000 1.00%1 1.25% 1.25% 1.25% 1.25%
Remainder of Farm
Up to $1,240,0004 0.55%1 0.55%2 0.55%2 0.50%2 0.50%2
Over $1,240,0004 1.00%1 1.00%2 1.00%2 1.00%2 1.00%2
Non-homestead (2b) 1.00%1 1.00%2 1.00%2 1.00%2 1.00%2
1 Subject to the State General Property Tax.
2 Exempt from referendum market value tax.
3 2008 legislative increases.
4 2010 legislative increases.
APPENDIX IV
EXCERPT OF 2010 ANNUAL FINANCIAL STATEMENTS
The City is audited annually by an independent certified public accounting firm. Data on the
following pages has been extracted from the audited financial statements for fiscal year ended
December 31, 2010. The reader should be aware that the complete financial statements may
contain additional information which may interpret, explain or modify the data presented here.
For its comprehensive annual financial report for the fiscal years ended December 31, 1996
through 2009, the City was awarded the Certificate of Achievement for Excellence in Financial
Reporting by the Government Finance Officers Association of the United States and Canada
(GFOA). The Certificate of Achievement is the highest form of recognition for excellence in
state and local government financial reporting.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily
readable and efficiently organized comprehensive annual financial report (CAFR), whose
contents conform to program standards. Such CAFR must satisfy both generally accepted
accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. The City believes its CAFR
continues to conform to the Certificate of Achievement program requirements and has
submitted its CAFR for the 2010 fiscal year to GFOA.
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PROPOSAL SALE DATE: November 1, 2011
TO: Mr. Jeffrey May, Finance Director
City of Rosemount, Minnesota
c/o Springsted Incorporated
380 Jackson Street, Suite 300
St. Paul, MN 55101-2887
Phone: (651) 223-3000
Fax: (651) 223-3046
RE: $2,080,000* General Obligation Improvement Bonds, Series 2011A
For the Bonds of this Issue which shall mature and bear interest at the respective annual rates, as follow,
we offer a price of $______________________ (Note: This amount may not be less than $2,063,360)
and accrued interest to the date of delivery.
% 2013 % 2014 % 2015 % 2016 % 2017
Designation of Term Maturities
Years of Term Maturities
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal
amount of the Bonds or the maturity amounts offered for sale. Any such increase or reduction will be made in
multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or
reduced, any premium offered or any discount taken by the successful bidder will be increased or reduced by a
percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced.
In making this offer we accept all of the terms and conditions of the Terms of Proposal published in the
Official Statement dated October 19, 2011. In the event of failure to deliver these Bonds in accordance
with the Terms of Proposal as printed in the Official Statement and made a part hereof, we reserve the
right to withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All
blank spaces of this offer are intentional and are not to be construed as an omission.
Subject to any applicable exemption in the Rule, this offer to purchase/bid is subject to the City's
covenant and agreement to take all steps necessary to assist us in complying with SEC Rule 15c2-12, as
mended. a
Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification
of the offer, we have made the following computations:
NET INTEREST COST: $____________________________
TRUE INTEREST RATE: ______________ %
Account Members
Account Manager
By:
Phone:
........................................................................................................................................................................
The foregoing offer is hereby accepted by the City on the date of the offer by its following officers duly
authorized and empowered to make such acceptance.
Mayor Clerk
_____ SURE-BID _____ Wire Transfer ____ Good Faith Check Submitted