HomeMy WebLinkAbout8.a. Accept Bids and Award Sale - G.O. Improvement Bonds, Series 2012A � ROSEMOLINT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Meeting Date: August 21, 2012
AGENDA ITEM: Accept Bids and Award Sale — G.O. AGENDA SECTION:
Improvement Bonds, Series 2012A Old Business
PREPARED BY: Jeff May, Finance Director AGENDA NO. .a,
ATTACHMENTS: Resolution and Official Statement APPROVED BY:
RECOMMENDED ACTION: Motion to adopt a Resolution Awarding the Sale of$810,000
General Obligation Improvement Bonds, Series 2012A; and Providing for their Issuance.
ISSUE
Accept bids and award sale of itnprovement bonds for the construction of street and utility improvements
for the City pxoject Gxeystone 15`Addition.
BACKGROUND
T'his item is on the agenda for Council to formally award the sale of the impxovement bonds. At 10:00
A.M.Tuesday,August 21,2012, sealed bids for G.O. Impxovement Bonds, Series 2012A,will be opened
and the xesults tabulated at the offices of Springsted, our financial advisors for the sa1e. A representa.tive
fYOm Springsted will be at the Council meeting that evening to give theit recommendation for the issuance
of these bonds and to answex any questions that you may have.
Because the bid opening is not until earlier in the day Tuesday,you will receive information regarding the
bids at the meeting that evening.
SUMMARY
Recommend the above motion.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2012-
A RESOLUTION AWARDING THE SALE OF $810,000 GENERAL
OBLIGATION IMPROVEMENT BONDS, SERIES 2012A;
AND PROVIDING FOR THEIR ISSUANCE
BE IT RESOLVED By the City Council of the City of Rosemount, Dakota County,Minnesota
(the "City") as follows:
Section 1. Sale of Bonds.
1.01 Authorization. It is hereby detexmined that it is necessary and expedient that the City issue
appro�mately$810,000 General Obligation Impxovement Bonds, Sexies 2012A (the`Bonds")
pu�suant to Minnesota Statutes, Chapters 429 and 475 (the"Act") to provide financing for various
improvements in the City (the "Improvements"). The City is authorized by Minnesota Statutes,
Section 475.60, Subdivision 2(9) to negotiate the sale of the Bonds if the City has retained an
independent financial advisor in connection with such sale. The City has retained Springsted
Incorporated as an independent financial consultant in connection with the sale of the Bonds.
1.02 Award to the Purchaser and Interest Rates. The pxoposal of
(the"Purchasex") to purchase $810,000 General Obligation Improvement Bonds, Series 2012A
(the"Bonds") of the Ciry described in the Texms of Proposal thereof is determined to be the most
favorable offex and is accepted,the proposal being to puxchase the Bonds at a price of
$ plus accxued interest to date of delivexy, for Bonds bearing interest as follows:
Yeax Intexest Rate Year Interest Rate
2014 2017
2015 2018
2016
1.03. Purchase. The sum of $ being the amount proposed by the Purcha,ser in excess
of $803,520 shall be credited to the Debt Service Fund hereinafter cxeated, or deposited in the
Construction Fund under Section 4.01 hereof,as determined bq the City's financial advisor and the
City Finance Dixector. The City Finance Director is directed to retain the good faith check of the
Purchasex,pending completion of the sale of the Bonds,and to return the good faith checks of the
unsuccessful proposers forthwith. The Mayor and City Clerk are directed to execute a contract with
the Purchaser on behalf of the City.
1.04. Terms and Princi�al Amount of the Bonds. The City will forthwith issue and sell the Bonds
pursuant to Minnesota Statutes, Chapter 475 (the `Ac�') in the total principal amount of $810,000,
originally dated September 1,2012,in the denomination of $5,000 each or any integxal multiple
thereof,nuxnbered No. R-1,upward,bearing interest as above set forth, and which mature serially
on Febxuary 1 without option of prior payment in the yeaxs and amounts as follows:
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407953v1JSB RS125-12
RESOLUTION 2012 -
Year Amount Year Amount
2014 $155,000 2016 $165,000
2015 160,000 2017 165,000
2016 165,000
As may be xequested by the Purchasex, one or moYe texm Bonds may be issued having mandatory
sinking fund redemption and final maturity amounts conforming to the foregoing principal
repayment schedule,and corresponding additions may be made to the provision of the applicable
Bond(s).
1.05. No O�tional Redem�tion. The Bonds are not subject to prepayment prior to their maturity
at the option of the Ciry.
Section 2. Registration and Pa�ment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest
thereon and,upon surrender of each Bond, the principal amount thereof,is payable by check or
draft issued by the Registrar described hexein.
2.02. Dates:Interest Pa�ment Dates. Each Bond will be dated as of the last interest payment date
preceding the date of authentication to which interest on the Bond has been paid or ma,de available
for payment,unless (i) the date of authentication is an interest payment date to which intetest has
been paid or made available fox payment,in which case the Bond will be dated as of the date of
authentication, or (u) the date of authentication is prior to the fixst interest payment date,in which
case the Bond will be dated as of the date of original issue. The intexest on the Bonds is payable on
Februaxy 1 and August 1 of each yeax,commencing August 1,2013,to the xegistered owners of
recoxd as of the close of business on the fifteenth day of the immediately preceding month,
whether or not that day is a business day.
2.03. Re�istxation. The City will appoint,and will maintain, a bond registtar,transfer agent,
authenticating agent and paying agent (the"Registrar"). The effect of registration and the rights and
duties of the City and the Registrar with respect thereto axe as follows:
(a) Re �ster. The Registrax must keep at its principal corporate trust office a bond register in
which the Registrar provides fox the registration of ownership of Bonds and the registration of
txansfers and exchanges of Bonds entided to be registered, transferred ox exchanged.
(b) Transfer of Bonds. Upon surrender fox ttansfer of a Bond duly endorsed by the registered
owner thereof or accompanied by a written instrument of transfer,in form satisfactory to the
RegistraY, duly executed by the registered ownex thereof or by an attoxney duly authorized bp the
registered owner in writing,the RegistYar will authenticate and deliver,in the name of the
designated transfexee or transfexees, one or more new Bonds of a like aggregate principal amount
and maturity, as requested by the transferor. The Registrar may,however, close the books for
registration of any transfer after the fifteenth day of the month preceding each interest payment
date and until that interest payment date.
(c) Exchange of Bonds. When Bonds are surrendexed by the registered ownex for exchange the
Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount
and mati.irity as requested by the registered owner or the owner's attorney in writing.
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RESOLUTION 2012 -
(d) Cancellation. Bonds surrendered upon transfer or exchange will be prompdy cancelled by
the Registrar and theYeaftex disposed of as dixected by the City.
(e) Im�ro�ex or Unauthorized TransfeY. When a Bond is presented to the Registrar for transfer,
the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on
the Bond or sepaYate instrument of transfer is valid and genuine and that the requested transfer is
legally authorized. The Registrax will incur no liability for the refusal,in good faith,to make
transfexs which it,in its judgment,deems impropex ox unauthorized.
(� Persons Deemed Owners. The City and the Registrar may treat the person in whose name a
Bond is registeYed in the bond Yegistex as the absolute owner of the Bond,whether the Bond is
ovexdue or not, for the purpose of receiving payment of,or on account of,the principal of and
interest on the Bond and fox all othex purposes,and payments so made to a registered owner or
upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the
Bond to the extent of the sum ox sums so paid.
(g� Taxes,Fees and Charees. The Registrar may impose a charge upon the ownex thereof fox a
transfer ox exchange of Bonds sufficient to xeimburse the Registrax fox any tax, fee or other
governmental charge required to be paid with respect to the transfer or exchange.
(h) Mutilated,LostJ Stolen or Destroved Bonds. If a Bond becomes mutilated or is destroyed,
stolen or lost, the Registrar will delivex a new Bond of like amount,number,maturity date and
tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of
and in substitution for any Bond destroyed, stolen or lost,upon the payment of the reasonable
expenses and charges of the Registrar in connection therewith;and,in the case of a Bond
destroyed, stolen or lost,upon filing with the Registrar of evidence satisfactory to it that the Bond
was destroyed, stolen or lost,and of the ownexship thereof, and upon fizrnishing to the Registrar an
appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by
law,in wl�ich both the City and the Registrar must be named as obligees. Bonds so surrendered to
the Registxar will be cancelled by the Registrar and evidence of such cancellation must be given to
the City. If the mutilated,destroyed, stolen or lost Bond has already matused or been called fox
redemption in accordance with its terms it is not necessaxy to issue a new Bond prior to payment.
2.04. A�vointment of Initial Registrar. The City appoints U.S. Bank National Association,
St. Paul,Minnesota, as the initial RegistraY. The MayoY and the City Clerk are authorized to execute
and delivex, on behalf of the City,a contract with the Registrar. Upon merger ox consolidation of
the Registrar with another corporation,if the resulting corporation is a bank or trust company
authorized by law to conduct such business, the xesulting corporation is authorized to act as
successor Registra,r. The City agYees to pay the xeasonable and customary chaxges of the Registrar
for the services pexformed. The City reserves the right to remove the Registrar upon 30 days'notice
and upon the appointment of a successox Registrar,in which event the predecessor Registrar must
delivex all cash and Bonds in its possession to the successor Registrar and must deliver the bond
register to the successor Registrar. On ox befoYe each principal or interest due date,without further
ordex of this Council, the City Clerk must ttansmit to the Registrar monies sufficient for the
payment of all principal and intexest then due.
2.05. Execution,Authentication and Deliverv. The Bonds will be prepared under the direction of
the City Clerk and executed on behalf of the City by the signatures of the Mayor and the City Clerk,
provided that all signatures may be printed, engraved or lithographed facsimiles of the originals. If
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RESOLUTION 2012 -
an officeY whose signatuYe or a facsimile of whose signatuYe appears on the Bonds ceases to be such
officer before the delivery of any Bond, that signatute ox facsimile will nevertheless be valid and
sufficient for all purposes, the same as if the officex had xemained in office until delivery.
Notwithstanding such execution, a Bond will not be valid or obligatory for any purpose or entided
to any security oY benefit under this Resolution unless and until a certificate of authentication on the
Bond has been duly executed by the manual signature of an authorized representative of the
Registrar. Certificates of authentication on different Bonds need not be signed by the same
repxesentative. The executed certificate of authentication on a Bond is conclusive evidence that it
has been authenticated and delivered undex this Resolution. When the Bonds have been so
prepaxed, executed and authenticated,the City Finance Director will deliver the same to the
Purchaser upon payment of the puxchase price in accordance with the contract of sale heretofore
made and executed,and the Purchasex is not obligated to see to the application of the putchase
price.
2.06. Tem�orary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or
more typewritten temporary Bonds in substantially the form set forth in Section 3 with such
changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon
the execution and delivery of definitive Bonds the temporaxy Bonds will be exchanged therefor and
cancelled.
Section 3. Foxm of Bond.
3.01. The Bonds will be printed or typewritten in substantially the following form:
No. R-_ UNITED STATES OF AMERICA $
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF ROSEMOUNT
GENERAL OBLIGATION IMPROVEMENT
BOND, SERIES 2012A
Date of
Rate Maturi OriginalIssue CUSIP
,20_ September 1,2012
Registered Ownex: Cede&Co.
The City of Rosemount,Minnesota,a duly organized and existing municipal coxporation in Dakota
County,Minnesota (the "City"), acknowledges itself to be indebted and for value received promises
to pay to the Registered Ownex specified above, or registered assigns,the principal sum set forth
above on the maturity date specified above without option of prior payment,with interest thexeon
from the date hereof at the annual rate specified above,payable February 1 and August 1 in each
year,commencing August 1, 2013,to the person in whose name this Bond is xegistered at the close
of business on the fifteenth day (whether or not a business day) of the immediately preceding
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RESOLUTION 2012 -
month. The interest hereon and,upon presentation and surrender heYeof, the principal hereof are
payable in lawful money of the United States of America by check or draft by U.S. Bank Narional
Association, St. Paul,Minnesota, as Registrar,Paying Agent,TransfeY Agent and Authenticating
Agent,ox its designated successox undex the Resolution described herein. Fox the prompt and full
payment of such principal and intexest as the same xespectively become due,the full faith and credit
and ta�ng powers of the City have been and axe hereby irYevocably pledged.
This Bond is one of an issue in the aggxegate principal amount of $810,000 all of like original issue
date and tenor,except as to number,maturity date, and interest rate, all issued pursuant to a
resolution adopted by the City Council on August 21,2012 (the"Resolution"), for the purpose of
providing money to finance various improvement projects within the City,pursuant to and in full
conformity with the Constitution and laws of the State of Minnesota,including Minnesota Statutes,
Chapters 429 and 475,and the principal hereof and interest hereon are payable from special
assessments against property specifically benefited by local improvements and from ad valorem
taxes, as set forth in the Resolution to which Yeferences is made for a full statement of rights and
powers thereby conferYed. The full faith and credit of the City axe ixrevocably pledged for payrnent
of this Bond and the City Council has obligated itself to levy ad valoxem taxes on all taxable
property in the City,which taxes may be levied without limitation as to rate or amount. The Bonds
of this series are issued only as fully Yegistered Bonds in denominations of $5,000 or any integral
multiple thereof of single maturities.
As provided in the Resolution and subject to certain limitations set forth therein,this Bond is
transferable upon the books of the City at the principal office of the Registrar,by the xegistered
ownex hereof in person or by the ownex's attorney duly authoxized in writing,upon surrender
hereof together with a written instrument of transfer satisfactory to the Registrat,duly executed by
the registered owner or the owner's attoxney;and may also be surxendered in exchange for Bonds of
other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or
Bonds to be issued in the name of the transferee or registered owner,of the same aggregate
principal amount,bearing inteYest at the same rate and maturing on the same date, subject to
reimbursement for any tax, fee or govexnmental charge xequired to be paid with respect to such
transfer ox exchange.
The City Council has designated the issue of Bonds of which this Bond forms a paxt as "qualified
tax exempt obligations"within the meaning of Section 265(b)(3) of the Internal Revenue Code of
1986, as amended (the"Code").
The City and the Registrar may deem and treat the person in whose name this Bond is registered as
the absolute ownex hereof,whether this Bond is oveYdue or not, for the purpose of receiving
payxnent and for all other purposes, and neither the City nor the Registrax will be affected by any
notice to the contrary.
IT IS HEREBY CERTIFIED,RECITED,COVENANTED AND AGREED that all acts,
conditions and things required by the Constitution and la.ws of the State of Minnesota to be done,
to e�st,to happen and to be performed preliminary to and in the issuance of this Bond in order to
make it a valid and binding general obligation of the City in accordance with its terms,have been
done, do exist,have happened and have been performed as so required,and that the issuance of this
Bond does not cause the indebtedness of the City to exceed any constitutional,or statutory
limitation of indebtedness.
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RESOLUTION 2012 -
This Bond is not valid or obligatory for any purpose or entided to any security or benefit undex the
Resolurion until the Certificate of Authentication hereon has been executed by the Registtar by
manual signature of one of its authorized representatives.
IN WITNESS WHEREOF,the City of Rosemount,Dakota County,Minnesota,by its City Council,
has caused this Bond to be executed on its behalf by the facsimile or manual signatutes of the
Mayor and City Clerk and has caused this Bond to be dated as of the date set forth below
Dated: ,2012
CITY OF ROSEMOUNT,MINNESOTA
(F'acsimile) (Facsitnile�
City Clerk Mayox
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S. BANK NATIONAL ASSOCIATION
By
Authorized Repxesentative
The followixig abbreviations,when used in the inscription on the face of this Bond,will be
construed as though they were written out in full according to applicable laws ot regulations:
TEN COM --as tenants UNIF GIFT MIN ACT Custodian
in common (Cust) (Minor)
TEN ENT--as tenants under Uniform Gifts or
by entixeties Transfers to Minors
Act. . . . . . . . Y . . .
JT TEN -- as joint tenants with
right of survivorship and
not as tenants in common (State)
Additional abbYeviations may also be used though not in the above list.
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RESOLUTION 2012 -
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and all rights thereunder, and
does hexeby irrevocably constitute and appoint attoxney to transfer
the said Bond on the books kept fox Yegistration of the within Bond,with full power of substitution
in the premises.
Dated:
Notice: The assignor's signature to this assignment must correspond cvith the name as it
appeaxs upon the face of the within Bond in every particular,without alteration or
any change whatevex.
Signatuxe Guaxanteed:
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the
Securities Txansfer Agent Medallion Program ("STAMP"),the Stock Exchange Medallion Program
("SEMP"),the New York Stock Exchange,Inc. Medallion Signatures Program ("MSP") ox other
such"signature guarantee pxogram" as may be determined by the Registrar in addition to, or in
substitution for, STAMP, SEMP oY MSP,all in accordance with the Securities Exchange Act of
1934, as amended.
The Registrar will not effect transfer of this Bond unless the information concerning the assignee
requested below is provided.
Name and Address:
(Include information for all joint owners if this Bond
is held by joint account.)
Please insert social security ox otheY
identifying number of assignee
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RESOLUTION 2012 -
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on the books
of the Registrax in the name of the person last noted below
Date of Registration Registered Owner Si2nature of Registrax
Cede&Co.
Federal ID #13-2555119
3.02. Avnx�g Lega1 O_n� The City Finance Director is authorized and directed to obtain a
copy of the proposed approving legal opinion of Kennedy&Graven,Chaxtered,Minneapolis,
Minnesota,which is to be complete except as to dating thereof and cause the opinion to be printed
on ox accompany each Bond.
Section 4. Pa�ment:Securit�;Pled�es and Covenants.
4.01 Debt Service Fund. (a) The Bonds are payable fxom the General Obligation
Improvement Bonds, Series 2012A Debt Service Fund (the"Debt Service Fund") hereby created,
and the proceeds of geneYal taxes hereinafter levied (the "Taxes"), and special assessments (the
"Assessments") levied or to be levied for the Impxovements are hereby pledged to the Debt Sexvice
Fund. If a payment of principal or interest on the Bonds becomes due when thexe is not sufficient
money in the Debt Service Fund to pay the same, the City Finance Director is directed to pay such
principal or interest from othex funds of the City,and such fund will be reixnbursed for those
advances out of the proceeds of Assessments and Taxes when collected. There is appropriated to
the Debt Service Fund (i) any amount ovex the muumum purchase price paid bp the Purchaser, to
the extent designated for deposit in the Debt Service Fund in accordance with Section 1.03,and (ii)
the accxued interest paid by the Purchaser upon closing and delivery of the Bonds.
(b) Construction Fund. The proceeds of the Bonds,less the appxopriations made in paxagraph
(a), together with (i) approximately$36,990 of storm sewer core funds, (u) approximately$14,877 of
sanitary sewer coxe funds, (iu) approximately$207,142 paid by the pxoperty owner pursuant to a
petition and waiver agreement, (iv) any othex funds appropriated for the Improvements and (v)
Assessments collected during the construction of the Improvements will be deposited in a separate
construction fund (the "Construction Fund") to be used solely to defray e�enses of the
Improvements and the payment of principal and interest on the Bonds prior to the completion and
payment of all costs of the Improvements. Any balance remaining in the Constxuction Fund after
completion of the Improvements may be used to pay the cost in whole or in part of any other
improvement instituted under the Act. When the Improvements axe completed and the cost thereof
paid, the Consttuction Fund is to be closed and subsequent collections of Assessments for the
Improvements are to be deposited in the Debt Service Fund.
4.02. City Covenants. The City hexeby covenants with the holders from time to time of the
Bonds as follows:
(a) It is hereby detexmined that at least 20% of the costs of the Impxovements to the City will
be paid by Assessments. The City has caused or will cause the Assessments for the Improvements
to be prompdy levied so that the fixst installment will be collectible not later than 2013 and will take
all steps necessary to assure prompt collection,and the levy of the Assessments is hexeby
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RESOLUTION 2012 -
authoYized. The City Council will cause to be taken with due diligence all further actions that are
required foY the construction of each ImpYOVement financed wholly or partly from the proceeds of
the Bonds,and will take all fi�ther actions necessary fox the final and valid levy of the Assessments
and the appropriation of any other funds needed to pay the Bonds and interest thereon when due.
(b) In the event of any cuxxent or anticipated deficiency in Assessments, the City Council will
levy ad valorem taxes in the amount of the current or anticipated deficiency.
(c) The City will keep complete and accurate books and Yecords showing: receipts and
disbursements in connection with the Improvements,Assessments levied therefor and othex funds
appropxiated for their payment,collections thereof and disbursements therefrom,monies on hand
and, the balance of unpaid Assessments.
(d) The City will cause its books and Yecords to be audited at least annually and will furnish
copies of such audit reports to any interested pexson upon request.
4.03. CeYtification to County Auditor as to Debt Sexvice Fund Amount. It is hereby determined
that the estimated collections of Assessments will produce at least 5%in excess of the amount
needed to meet when due the principal and interest payments on the Bonds.
4.04. Countv Auditor Cextificate as to Registtation. The City Administrator is authorized and
directed to file a certified copy of this resolution with the Counry Auditor of Dakota County and to
obtain the certificate required by Minnesota Statutes, Section 475.63.
Section 5. Authentication of Transcriut.
5.01. Authorit�Proceedings and Records. The officers of the City are authorized and directed to
prepare and furnish to the Purchaser and to the attorneys approving the Bonds,certified copies of
proceedings and records of the City relating to the Bonds and to the financial condition and affairs
of the City,and such other cextificates,affidavits and txanscripts as may be required to show the
facts within their knowledge or as shown by the books and records in their custody and under theit
control,xelating to the validity and maxketability of the Bonds and such instruments,including any
heretofore fi�nished,will be deemed xepresentations of the City as to the facts stated therein.
5.02. Certificate as to Official Statement. The Mayor and City Clerk are hereby authorized and
directed to certify that they have examined the Official Statement prepared and cixculated in
connection with the issuance and sale of the Bonds and that to the best of their knowledge and
belief the Official Statement is a complete and accurate representation of the facts and
representations made therein as of the date of the Official Statement.
Section 6. Tax Covenant.
67.01. Tax Exem�t Bonds. The City covenants and agrees with the holders from time to time of
the Bonds that it will not take or permit to be taken by anp of its officers,employees ox agents any
action which would cause the interest on the Bonds to become subject to taxation undex the Internal
Revenue Code of 1986,as amended (the "Code"),and the Txeasury Regulations promulgated
thereunder,in effect at the time of such actions,and that it will take or cause its officers, employees
or agents to take, all affirmative action within its power that may be necessary to ensure that such
interest will not become subject to taxation under the Code and applicable Treasury Regulations,as
presendy existing or as hereafter amended and made applicable to the Bonds.
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RESOLUTION 2012 -
6.02. No Rebate Rec�uired. (a) The City will comply with requirements necessary undex the Code
to establish and maintain the exclusion from gross income of the interest on the Bonds under
Section 103 of the Code,including without limitation requirements relating to temporaYy periods for
investments and limitations on amounts invested at a yield greater than the yield on the Bonds.
(b) For purposes of qualifying for the small-issuer exception to the federal axbitrage
rebate requirements, the City finds, determines and decla,res that the aggregate face amount of all
tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities
of the City) during the calendax year in which the Bonds are issued is not reasonably expected to
exceed$5,000,000,within the meaning of Section 148(fl(4)(C) of the Code.
6.03. Not Private Activity Bonds. The City fuxther covenants not to use the pxoceeds of the
Bonds ox to cause or permit them ox any of them to be used,in such a manner as to cause the
Bonds to be"private activity bonds"within the meaning of Sections 103 and 141 through 150 of
the Code.
6.04. Bank Oualified. In order to qualify the Bonds as "qualified tax-exempt obligations"withui
the meaning of Section 265(b)(3) of the Code,the City makes the following factual statements and
repxesenta,tions:
(a) the Bonds are not"private activity bonds" as defined in Section 141 of the Code;
(b) the City hexeby designates the Bonds as "qualified tax-exempt obligations" for purposes of
Section 265(b)(3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations (other than private activity
bonds,that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate
entities of the City) during calendar yeax 2012 will not exceed$10,000,000;and
(d) not more than$10,000,000 of obligations issued by the Ciry during calendar year 2012 have
been designated fox purposes of Section 265(b)(3) of the Code.
6.05. Procedural Rec�uirements. The City will use its best efforts to comply with any federal
procedural xequirements which may apply in order to effectuate the designations made by this
section.
Section 7. Book-Entry S�stem;Limited Obligation of Cit�
7.01. DTC. The Bonds will be initially issued in the form of a sepaxate single typewritten or
printed fully registered Bond for each of the maturities set forth in Section 1.02 hereof. Upon initial
issuance, the ownership of each Bond will be registered in the registration books kept by the
Registrar in the name of Cede&Co., as nominee for The Depositoxy Trust Company,New York,
New Yoxk,and its successors and assigns ("DTC"). Except as provided in this section,alt of the
outstanding Bonds will be registered in the registration books kept by the Registrar in the name of
Cede&Co.,as nominee of DTC.
7.02. Partici�ants. With respect to Bonds registexed in the registration books kept by the Registrax
in the name of Cede&Co., as nominee of DTC, the City, the Registrax and the Paying Agent will
have no responsibility or obligation to any broker dealexs,banks and other financial institutions from
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RESOLUTION 2012 -
time to time foY which DTC holds Bonds as securities depository (the "Participants") or to any
other person on behalf of which a Participant holds an interest in the Bonds,including but not
limited to any responsibility or obligation with respect to (i) the accuYacy of the records of DTC,
Cede &Co. ox any PaYricipant with respect to any owneYShip interest in the Bonds, (u) the delivery
to any Participant or any other pexson (other than a xegistered owner of Bonds,as shown by the
registration books kept by the Registrar), of any notice with respect to the Bonds,including any
notice of redemption, or (ui) the payment to any Participant or any other person, other than a
registered owner of Bonds, of any amount with respect to principal of,premium,if any, or interest
on the Bonds. The City, the Registrar and the Paying Agent may treat and consider the person in
whose name each Bond is registered in the registration books kept by the Registrar as the holder and
absolute owneY of such Bond for the purpose of payment of principal,premium and interest with
respect to such Bond, for the purpose of xegistering transfers with respect to such Bonds,and for all
other puxposes. The Paying Agent will pay all principal of,ptemium,if any,and interest on the
Bonds only to or on the order of the respective xegistexed owners,as shown in the registration
books kept by the Registrar,and all such payments will be valid and effectual to fully satisfy and
discharge the City's obligations with respect to payment of principal of,premium,if any, or interest
on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner
of Bonds, as shown in the xegisttation books kept by the Registrar,will receive a cextificated Bond
evidencing the obligation of this resolution. Upon delivery by DTC to the City Clerk of a written
notice to the effect that DTC has determined to substitute a new nominee in place of Cede&Co.,
the words "Cede&Co.,"will refer to such new nominee of DTC;and upon receipt of such a
notice,the City Clerk will promptly deliver a copy of the same to the Registrar and Paying Agent.
7.03. Re�resentation Letter. The Ciry has heretofore executed and delivered to DTC a Blanket
IssueY Letter of Representations (the"Repxesentation Letter")which will govern payment of
principal of,premium,if any, and intexest on the Bonds and notices with respect to the Bonds. Any
Paying Agent oY Registrar subsequendy appointed by the City with respect to the Bonds will agree to
take all action necessary for all representations of the City in the Representation letter with respect
to the Registrax and Paying Agent,respectively, to be complied with at all times.
7.04. Transfers Outside Book-Entr�S�stem. In the event the City,by resolution of the City
Council,determines that it is in the best inteYests of the persons having beneficial interests in the
Bonds that they be able to obtain Bond certificates,the City will notify DTC,whereupon DTC will
notify the Participants, of the availability thxough DTC of Bond certificates. In such event the City
will issue,transfer and exchange Bond certificates as requested by DTC and any othex registered
owners in accordance with the provisions of this Resolution. DTC may determine to discontinue
providing its services with respect to the Bonds at any time by giving notice to the City and
dischaxging its Yesponsibilities with Yespect thereto under applicable law In such event,if no
successor securities depository is appointed,the Ciry will issue and the Registrar will authenticate
Bond cextificates in accoxdance with this resolution and the provisions hereof will apply to the
transfer, exchange and method of payment thereof.
7.05. Pa�ments to Cede&Co. Notwithsta.nding any other provision of this Resolution to the
contraxy, so long as a Bond is registered in the name of Cede&Co., as nominee of DTC,payments
with respect to principal of,premium,if any, and interest on the Bond and notices with respect to
the Bond will be made and given,respectively in the manner provided in DTC's Opexational
Arxangements as set forth in the Representation Letter.
Section 8. Continuing Disclosure.
11
RESOLUTION 2012 -
8.01. City Com�liance with Pxovisions of Continuing Disclosute CeYtificate. The City hereby
covenants and agrees that it will comply with and carxy out all of the provisions of the Continuing -
DisclosuYe Cerrificate. Notwithstanding any other provision of this Resolution, failure of the City
to comply with the Continuing Disclosure Cerrificate will not be considered an event of default with
respect to the Bonds;however, any bondholdex may take such actions as may be necessary and
appropriate,including seeking mandate or specific performance by court order, to cause the City to
comply with its obligations under this section.
8A2. Execution of Continuing Disclosure Certificate. "Continuing Disclosuxe Certificate"means
that cextain Continuing Disclosure Cerrificate executed by the Mayor and City Clerk and dated the
date of issuance and delivexy of the Bonds,as originally executed and as it may be amended from
time to time in accordance with the texms thexeof.
Section 9. Defeasance.
9.01. Defeasance. When all Bonds and all interest thereon,have been discharged as provided in
this section, all pledges, covenants and othex rights granted by this xesolution to the holders of the
Bonds will cease, except that the pledge of the fu11 faith and cxedit of the City for the pxompt and
full payrnent of the principal of and intexest on the Bonds will remain in full force and effect. The
City may discharge all Bonds which axe due on any date by depositing with the Registrar on or
before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid
when due,it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the
payment thexeof in full with interest accrued to the date of such deposit.
(The remaindeY of this page is intenrionally left blank.)
12
RESOLUTION 2012 -
ADOPTED this 21 st day of August, 2012, by the City Council of the City of Rosemount.
William H. Droste, Mayor
ATTEST:
Jeffrey A. May, Deputy City Clerk
13
RESOLUTION 2012 -
CERTIFICATE
STATE OF MINNESOTA )
COUNTY OF DAKOTA ) ss
CITY OF ROSEMOUNT }
I am the duly appointed,acting and qualified City Clexk of the City of Rosemount,Da.kota County,
Minnesota do hereby cert'tfy that I have examined the City of Rosemount records and the Minute
Book of said City for the meeting of the of ,2012 and that the attached copy of
the Resolution 2012-_ A RESOLUTION AWARDING THE SALE OF $810,000 GENERAI.
OBLIGATION IMPROVEMENT BONDS,SERIES 2012A;AND PROVIDING FOR THEIR
ISSUANCE was approved and is a true and correct copy of the City Proceedings relating to said
Resolution.
IN WITNESS WHEREOF, I have hereunto set my hand and seal of said Ciry this day of
,2012.
Deputy City Clexk
City of Rosemount
Dakota,Counry,Minnesota,
14
STATE OF MINNESOTA COUNTY AUDITOR'S
CERTIFICATE AS TO
COUNTY OF DAKOTA REGISTRATION
I, the undersigned County Auditor of Dakota County,Minnesota, hereby certify that a resolution
adopted by the City Council of the City of Rosemount,Minnesota, on ,2012,
relating to General Obligation Utility Improvement Bonds, Series 2012A,in the amount of$810,000
dated , 2012,has been filed in my office and said obligations have been
registered on the register of obligations in my office.
WITNESS My hand and official seal this day of ,2012.
County Auditor
Dakota.County,Minnesota
(SEAL)
Deputy
EXHIBIT A
PROPOSALS
B-1
OFFICIAL STATEMENT DATED AUGUST 7, 2012
NEW 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
purposes 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 arising with respect to ownership of the Bonds. See “TAX
EXEMPTION” and “OTHER FEDERAL AND STATE TAX CONSIDERATIONS” herein.
$810,000*
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 2012A
(Book Entry Only)
1,
Dated Date: September 1, 2012 Interest Due: Each February 1 and August
commencing August 1, 2013
The Bonds will mature February 1 as follows:
2014$155,0002015$160,0002016$165,0002017$165,0002018$165,000
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 $803,520 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 $8,100
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 September 20, 2012.
* Preliminary; subject to change.
PROPOSALS RECEIVED: August 21, 2012 (Tuesday) until 10:00 A.M., Central Time
AWARD: August 21, 2012 (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.......................................................................... 20
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
Audited 2011 Comprehensive Annual Financial Report............................................ 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
*
$810,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2012A
(BOOK ENTRY ONLY)
Proposals for the Bonds and the Good Faith Deposit (“Deposit”) will be received on Tuesday,
August 21, 2012, until 10:00 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 at7:30P.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:
®nd
PARITY, 1359 Broadway, 2 Floor, New York, New York 10018
Customer Support: (212) 849-5000
*
Preliminary; subject to change.
- i -
DETAILS OF THE BONDS
The Bonds will be dated September 1, 2012, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2013. 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:
2014$155,0002015$160,0002016$165,0002017$165,0002018$165,000
*
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.
- ii -
BIDDING PARAMETERS
Proposals shall be for not less than $803,520 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 $8,100, 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.
certified or cashier’s check
Any Deposit made by should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota
55101.
wire transfer
Any Deposit sent via 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 2012A 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.
Financial Surety Bond
If a 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 3:30P.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.
- iii -
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.
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 Undertaking (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).
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
- iv -
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 30 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 July 11, 2012 BY ORDER OF THE CITY COUNCIL
/s/ Amy Domeier
City Clerk
- v -
OFFICIAL STATEMENT
$810,000*
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2012A
(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 $810,000* General Obligation
Improvement Bonds, Series 2012A (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,
2875145thStreet 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 “Certificate”) 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
Certificate, as well as the information to be contained in the annual report or the notices of
material events, is set forth in the Certificate 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 within the last five years. A failure by the
City to comply with the Certificate 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
* 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.
- 1 -
for specific 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
GeneralDescription
The Bonds are dated as of September 1, 2012 and issued in book entry form. Interest on the
Bonds is payable February 1 and August 1 of each year, commencing August 1, 2013. 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,
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
- 3 -
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 429 and 475. 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 $810,000
Available City Funds 259,009
Total Sources of Funds $1,069,009
Uses of Funds:
Deposit to Project Fund $1,035,711
Costs of Issuance 26,818
Allowance for Discount Bidding 6,480
Total Uses of Funds $1,069,009
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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 filed against benefited properties for repayment of the Bonds. Special
assessments in the total aggregate amount of the costs of the improvements are expected to be
filed on or about November 30, 2012 for first collection in 2013. Assessments will be spread
over a term of five years with equal annual payments of principal and interest. Interest on the
unpaid balance will be charged at a rate of 2.00% over the true interest rate received on the
Bonds.
Each year's collection of 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. The City does not anticipate the need to levy
taxes for repayment of the Bonds.
FUTURE FINANCING
The City does not anticipate issuing any additional long-term general obligation debt within 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
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same extent, in computing both gross income 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), 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 included in gross
income for federal income tax purposes and Minnesota laws providing that interest on the
obligations of the State is not included 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.
Bond Counsel's opinion is given as of its date and Bond Counsel assumes no obligation to
update, revise, or supplement such opinion to reflect any changes in facts or circumstances or
any changes in law that may hereafter occur. Proposals are regularly introduced in both the
United States House of Representatives and the United States Senate that, if enacted, could
alter or affect the tax-exempt status of municipal bonds. For example, legislation has been
proposed by President Obama that would, among other things, limit the amount of exclusions
(including tax-exempt interest) or deductions that certain higher-income taxpayers could use to
reduce their tax liability. The likelihood of adoption of this or any other such legislative proposal
relating to tax-exempt bonds cannot be reliably predicted. If enacted into law, current or future
proposals may have a prospective or retroactive effect and could affect the value or
marketability of tax-exempt bonds (including the Bonds). Prospective purchasers of the Bonds
should consult their own tax advisors regarding the impact of any such change in law.
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
rd
(“Moody's”), 7 World Trade Center, 250 Greenwich Street, 23 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
2011/12 City Property Values
$115,495,251 (57.9%) of the decline in the City’s taxable market value is caused by a legislated
change in the computation of taxable market value. The Market Value Homestead Credit
Program was eliminated in 2011 and replaced with the Market Value Homestead Exclusion
Program. The change was made to offset the elimination of a homestead credit that provided
property tax relief for certain homesteads. To minimize the impact of eliminating the credit, it
was replaced with a new “market value homestead exclusion” or MVHE. The MVHE reduces
the taxable market value of a homestead with an estimated market value of up to $413,800 so
that the resultant property tax attempts to mimic the previous property tax net of the now
eliminated homestead credit. A homestead that qualifies for the MVHE will cause a drop in the
City’s taxable market value even if the estimated market value of the same property does not
decline.
*
2011/12 Indicated Market Value of Taxable Property: $1,937,425,725
* Indicated market value is calculated by dividing the City’s taxable market value of $1,914,176,616 by
the 2010 sales ratio of 98.8% for the City as determined by the State Department of Revenue.
Excludes mobile home valuation of $2,247,760. (2011 sales ratios are not yet available.)
2011/12 Taxable Net Tax Capacity by Class of Property: $22,124,926*
Real Estate:
Residential Homestead $15,167,356 68.1%
Commercial/Industrial, Public Utility,
and Railroad 5,546,746 24.9
Agricultural 469,068 2.1
Residential Non-Homestead 407,531 1.8
Personal Property 689,3893.1
2011/12 Net Tax Capacity $22,280,090 100.0%
Less: Captured Tax Increment Tax Capacity (583,890)
Contribution to Fiscal Disparities (2,376,751)
Plus: Distribution from Fiscal Disparities 2,805,477
2011/12 Taxable Net Tax Capacity $22,124,926
* Excludes mobile home valuation of $22,321.
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Trend of Values
Indicated Taxable Taxable Net
(a)(b)
Market ValueMarket ValueTax Capacity
2011/12 $1,937,425,725 $1,914,176,616 $22,124,926
2010/11 2,139,329,960 2,113,658,000 24,311,493
2009/10 2,261,466,162 2,238,851,500 25,430,852
2008/09 2,481,136,059 2,367,003,800 26,648,399
2007/08 2,549,310,668 2,365,760,300 26,349,633
(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.
Ten of the Largest Taxpayers in the City
2011/12 Net
TaxpayerType of BusinessTax Capacity
Great Northern Oil Co./Flint Hills
Resources/Koch Refining Oil Refinery $2,823,629
Xcel Energy Utility294,308
th
146 Street Partners LP Commercial192,247
Clarel Corporation Retail187,560
CF Industries, Inc. (Cenex) Fertilizer151,554
Northern Natural Gas Company Utility 124,242
Rosemount Properties LLC Commercial112,640
Rosemount Crossing LLC Retail98,680
Webb Properties Manufacturing92,898
Individuals Commercial 87,938
*
Total $4,165,696
*
Great Northern Oil Co./Flint Hills Resources/Koch Refining represents 12.8% of the City’s 2011/12
taxable net tax capacity. The remaining nine taxpayers represent 6.1% of the City’s 2011/12 taxable
net tax capacity.
CITY INDEBTEDNESS
Legal Debt Limit*
Debt Limit (3% of Taxable Market Value) $57,425,298
(4,305,000)
Less: Outstanding Debt Subject to Limit
Legal Debt Margin at September 1, 2012 $53,120,298
*
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. No such offset has been used to increase the margin as shown above.
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(a)
General Obligation Debt Supported by Taxes
Est. Principal
Date Original Final Outstanding
AmountPurposeMaturityAs of 9-1-12
of Issue
12-1-01 $ 725,000 Community Center Refunding 2-1-2013 $85,000
6-15-05 2,630,000 Fire Station 2-1-2025 2,000,000
11-1-05 1,115,000 Fire Station Refunding 2-1-2016 490,000
(b)
5-1-07 360,000 Public Safety Revenue 2-1-2014 110,000
10-15-07 450,000 Equipment 2-1-2013 100,000
10-30-08 385,000 Equipment 2-1-2014 165,000
(c)
12-1-10 1,355,000 Public Facility Refunding 2-1-20221,355,000
Total$4,305,000
(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
Est. Principal
Date Original Final Outstanding
of IssueAmountPurposeMaturityAs of 9-1-12
6-1-06 $4,405,000 Local Improvements 2-1-2017 $2,250,000
11-15-11 2,080,000 Local Improvements 2-1-20172,080,000
9-1-12 810,000 Local Improvements (the Bonds) 2-1-2018 810,000
Total $5,140,000
General Obligation Debt Supported by Tax Increments*
Est. Principal
Date Original Final Outstanding
of IssueAmountPurposeMaturityAs of 9-1-12
4-10-08 $2,765,000 Taxable Tax Increment 2-1-2024 $2,730,000
4-10-08 3,275,000 Tax Increment 2-1-20323,275,000
Total $6,005,000
* 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
Est. Principal
Date Original Final Outstanding
of IssueAmountPurposeMaturityAs of 9-1-12
9-1-00 $1,160,000 Water Revenue 2-1-2016 $ 410,000
11-1-05 2,990,000 Water Revenue 2-1-2016 1,325,000
10-15-07 1,210,000 Water Revenue 2-1-2018 795,000
12-1-10 1,545,000 Storm Water and Water
Revenue Refunding 2-1-20181,255,000
Total $3,785,000
Estimated 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
(a)
YearPrincipal& InterestPrincipal& Interest
2012 (at 9-1) (Paid) (Paid)(Paid)(Paid)
2013 $ 680,000 $ 820,795 $ 845,000 $ 951,143
2014 510,000 630,810 1,015,000 1,101,441
2015 380,000 486,291 1,025,000 1,089,285
2016 390,000 483,960 1,040,000 1,080,520
2017 275,000 358,220 1,050,000 1,065,245
2018 280,000 354,213 165,000 166,114
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
(b)
Total $4,305,000 $5,152,259 $5,140,000 $5,453,748
(a)
Includes the Bonds at an assumed average annual interest rate of 1.08%.
(b)
86.9% of this debt will be retired within ten years.
- 12 -
Estimated Annual Calendar Year Debt Service Payments Including the Bonds(continued)
G.O. Debt Supported G.O. Debt Supported
by Revenues
by Tax Increments
Principal Principal
Principal& Interest Principal& Interest
Year
2012 (at 9-1) (Paid) (Paid)(Paid)(Paid)
75,000 $ 348,010 $ 840,000 $ 950,313
2013 $
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
465,000 474,416
2032
Total $6,005,000* $9,169,853* $3,785,000 $4,089,752
*
35.3% of this debt will be retired within ten years.
Indirect General Obligation Debt
Debt Applicable to
2011/12 Taxable Est. G.O. Debt Tax Capacity in City
(a)(b)
Taxing UnitNet Tax CapacityAs of 9-1-12PercentAmount
(c)
Dakota County $ 410,765,633 $52,415,000 5.4% $2,830,410
ISD No. 196 (Rosemount-
Apple Valley-Eagan) 148,664,489 101,792,334 13.9 14,149,134
ISD No. 199 (Inver Grove-
Heights) 26,536,989 48,680,000 5.3 2,580,040
ISD No. 200 (Hastings) 31,493,589 49,515,000 0.1 49,515
(d)
Metropolitan Council 3,088,480,725 21,200,000 0.7 148,400
Total$19,757,499
(a)
Only those units with general obligation 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. Includes certificates of participation.
- 13 -
Debt Ratios
G.O. G.O.Indirect
*
Direct Debt& Direct Debt
To 2011/12 Indicated Market Value ($1,937,425,725) 0.80% 1.82%
Per Capita (22,239 – Current City Estimate) $695$1,583
*
Excludes general obligation debt supported by revenues.
:
NOTENo offset of debt service funds on hand has been used in the above calculations.
CITY TAX RATES, LEVIES AND COLLECTIONS
Tax Capacity Rates
2011/12
For
2007/082008/092009/102010/11TotalDebt Only
(a)
Dakota County 25.184% 25.821% 27.269% 29.149% 31.426% -0-
City of Rosemount42.440 42.323 43.358 44.661 46.994 2.398%
ISD No. 196 (Rosemount-
(b)
Apple Valley-Eagan) 21.136 21.109 25.391 26.959 28.440 10.885
(c)
Special Districts4.9964.916 4.9875.1994.1871.521
Total93.756% 94.169% 101.005% 105.968% 111.047% 14.804%
(a)
Dakota County also has a 2011/12 tax rate of 0.00551% spread on the market value of property in
support of debt service.
(b)
Independent School District No. 196 (Rosemount-Apple Valley-Eagan) also has a 2011/12 tax rate of
0.22131% spread on the market value of property in support of an excess operating levy and buildings.
(c)
Special districts include Metropolitan Council, 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
as of 6-30-12
Net Collection Year
*
LevyAmountPercentAmountPercent
Levy/Collect
2011/12 $9,078,872 (In Process of Collection)
2010/11 9,220,079 $9,135,672 99.1% $9,192,266 99.7%
2009/10 9,550,155 9,451,527 99.0 9,533,682 99.8
2008/09 9,931,167 9,793,023 98.6 9,918,912 99.9
2007/08 10,013,396 9,849,067 98.4 10,003,730 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.
- 14 -
FUNDS ON HAND
As of June 30, 2012
FundCash and Investments
General $5,515,936
Special Revenue 610,985
Port Authority 518,425
Debt Service:
Tax Supported 972,920
Assessment Supported 1,799,921
Port Authority Supported 389,843
General Obligation Revenue Supported 1,768,007
Capital Projects 8,080,887
Water, Sewer and Storm Water 13,938,221
Arena235,925
Total$33,831,070
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.
- 15 -
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 June 30, 2012 the City had a total of $30,838,552 invested funds as follows:
Amount Invested
Type of SecurityLength of Investmentas of 6-30-12
Money Market Savings N/A$11,625,768
Certificates of Deposit Less than 12 months 5,184,000
Certificates of Deposit One to ten years 3,680,000
Government Asset Backed Securities Ten years or less 10,348,784
Total $30,838,552
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 estimates its current population to be 22,239. The City’s population trend is shown below.
Percent
PopulationChange
2011 City Estimate 22,239 1.7%
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 1,000 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.
- 16 -
Major Employers
Approximate
Number
EmployerProduct/Serviceof Employees
Independent School District No. 196
(a)
(Rosemount-Apple Valley-Eagan) Public education 3,500
Flint Hills Resources’ Pine Bend Refinery Oil refinery 1,000
Intermediate School District No. 917 Education 340
Wayne Transports General freight trucking 300
Dakota County Technical College Education260
(b)
Endres Processing Ltd. Livestock feed 145
Cub Food’s Grocery store 122
Spectro Alloys Corporation Aluminum alloys 120
(b)
Cannon Equipment Company Manufacturing of metal parts 100
City of Rosemount Government76
Greif Brothers Corporation Multiwall bags 72
(a)
Represents District-wide employment.
(b)
Most recent information available as of October 2011.
Source: Telephone survey of individual employers, August 2012.
Retail Sales and Effective Buying Income (EBI) for Dakota County
Total RetailTotalMedian
Sales ($000)EBI ($000)Household EBI
2011 $6,784,232 $10,387,368 $56,655
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
The 2011 median household EBI for Dakota County is 125% of the State of Minnesota’s median
of $45,084.
Source: Claritas, Inc.
Labor Force Data
June 2012 June 2011
Civilian UnemploymentCivilian Unemployment
Labor ForceRateLabor ForceRate
Dakota County 234,709 5.5% 232,093 6.5%
Minneapolis/St. Paul MSA 1,875,074 5.8 1,853,980 6.7
State of Minnesota 3,000,339 5.8 2,995,615 6.7
Source: Minnesota Department of Employment and Economic Development,
. 2012 figures are preliminary.
http://www.positivelyminnesota.com/
- 17 -
Building Permits Issued by the City
Total Permits New Single Family Homes
NumberValueNumberValue
2012 (to 6-30) 332 $22,127,93029 $9,177,400
2011 868 28,753,846 53 14,240,000
2010851 32,177,918 80 18,197,011
2009914 31,839,499 88 19,190,195
20081,649 67,945,640 237 26,809,851
20071,368 63,085,633 143 27,084,690
20061,055 70,879,026 224 46,503,749
20051,293 123,374,042 454 88,551,982
20041,329 126,348,047 551 110,674,682
20031,127 96,872,708 440 87,119,479
Recent and Proposed Development
The City’s total number of permits are down from July 2011; however, the value of the new
permits to-date are double the value of permits from 2011. Several large commercial and
industrial projects occurred in the first six months of 2012, raising the overall value of
construction in the community. The City has had fewer small projects in 2012 compared to
2011, and there continues to be investment in public sector buildings, which maintains the
strong increase in permit valuation and permit fees for the City.
Residential development for 2012 is similar to the trend experienced in the last two years. New
dwelling unit construction is anticipated to be similar to 2011, which yielded 53 new units. Most
of the new residential construction is small-lot, single-family detached housing in two new
subdivisions approved late in 2011. The new subdivisions represent the return of two national
builders to the community. These projects also consist of investing in green field development
and construction of new streets and utilities to provide developable pads for the subdivisions. A
third builder has received multiple approvals in the same general neighborhood and will be
installing streets and utilities in the fall of 2012.
(The Balance of This Page Has Been Intentionally Left Blank)
- 18 -
The following lists platted lots currently available for development. The majority of these lots are
approved as attached housing parcels:
Remaining
Units lots as of
Development/DeveloperHousingApproved5-31-12
th
Biscayne Pointe 4 Addition/Heritage
Development Single Family731
Biscayne Pointe North/Giles Property Single Family 221
Connemara Crossing/Basic Builders, Inc. Single Family 44 17
nd
Glendalough 2/Lennar Single Family 7 1
rd
Glendalough 3/Lennar Single Family 29 1
th
Glendalough 4/Lennar Single Family 25 8
GlenRose of Rosemount/
Dean Johnson Homes Multi-Family76 64
nd
Harmony 2 Addition/CPDC Multi-Family81 20
rd
Harmony 3 Addition/CPDC Single Family 173
th
Harmony 5 Addition/Rsmt Land Corp. Single Family 64 33
th
Harmony 6 Addition/Rottlund Single Family 49 28
Pickens/Rottlund Single Family 9 6
Rosewood Estates/Progress Land Single Family 551
nd
Prestwick Place 2 Addition/DR Horton Single Family 29 17
rd
Prestwick Place 3 Addition/DR Horton Single Family 27 26
st
Greystone 1 Addition/Ryland Group Single Family 23 23
In 2011, approximately $29 million of new valuation was added in the community. It is expected
in that new valuation will be approximately $35 million in 2012. 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. 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 2011/12 school year
was approximately 26,977 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
Heights) 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 and has a total enrollment of over 4,500 students. In
addition, the Technical College offers an extensive adult education program.
- 19 -
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 MayorDecember 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.
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 43 trained volunteers. The City has class 4,5, and 10 insurance
ratings, depending on the availability of hydrants and location in relation to a fire station.
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 2,344,546 gallons pumped daily in 2011.
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.
- 20 -
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 General Employees Retirement Fund (GERF) and the Public Employees
Police and Fire Fund (PEPFF), which are cost-sharing multiple-employer public employees
retirement plans. GERF 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 GERF 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 for the past five years are as follows:
GERFPEPFF
2011 $268,848 $256,236
2010 258,857 249,472
2009 248,891 240,374
2008 242,631 219,322
2007 222,179 178,096
For more information regarding the liability of the City with respect to its employees, please
reference “Note V, Other Information – A. Employees’ Retirement System”, of the City’s
Comprehensive Annual Financial Report for fiscal year ended December 31, 2011, included as
Appendix IV of this Official Statement.
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”).
The City does not fund 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.
- 21 -
General Fund Budget
2011 2012
Adopted BudgetProposed Budget
Revenues:
General Property Taxes $8,637,476 $8,296,900
Licenses and Permits 360,100362,300
Intergovernmental 624,700 634,500
Charges for Services 658,400668,400
Fines and Forfeits 125,000125,000
Recreational Fees 252,300254,900
Miscellaneous Revenues 181,300186,300
Transfers In 3,5003,500
Total Revenues $10,842,776$10,531,800
Expenditures:
General Government $2,990,076 $2,646,500
Public Safety 3,422,1003,439,200
Public Works 3,168,0003,200,300
Parks and Recreation 1,262,6001,245,800
Total Expenditures $10,842,776$10,531,800
(The Balance of This Page Has Been Intentionally Left Blank)
- 22 -
APPENDIX I
PROPOSED FORM OF LEGAL OPINION
$810,000
General Obligation Improvement
Bonds, Series 2012A
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 2012A (the “Bonds”), originally dated as of September 1, 2012, and issued in the
original aggregate principal amount of $810,000. 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 benefited 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.
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 ___________, 2012 at Minneapolis, Minnesota.
I-1
CONTINUING DISCLOSURE CERTIFICATE
$810,000
City of Rosemount, Minnesota
General Obligation Improvement
Bonds, Series 2012A
September ___, 2012
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 2012A, (the “Bonds”) in the original aggregate principal amount of $810,000.
The Bonds are being issued pursuant to resolutions adopted by the City Council of the Issuer
(the “Resolutions”). The Bonds are being delivered to _________________ (the “Purchaser”) on the date
hereof. Pursuant to the Resolutions, 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. 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 (as defined herein) of the Bonds in order to provide
for the public availability of such information and assist the Participating Underwriter(s) (defined herein) in
complying with the Rule (as defined herein). This Disclosure Certificate, together with the Resolutions,
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 Resolutions, 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 annual financial statements of the Issuer, prepared in
accordance with generally accepted accounting principles for governmental units (“GAAP”) as prescribed by
the Governmental Accounting Standards Board (“GASB”).
“Bonds” means the General Obligation Improvement Bonds, Series 2012A, issued by the Issuer in
the original aggregate principal amount of $810,000.
“Disclosure Certificate” means this Continuing Disclosure Certificate.
“EMMA” means the Electronic Municipal Market Access system operated by the MSRB and
designated as a nationally recognized municipal securities information repository and the exclusive portal for
complying with the continuing disclosure requirements of the Rule.
“Final Official Statement” means the deemed final Official Statement dated ________________,
2012, as supplemented by the Addendum, dated __________, 2012 which constitutes 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 Bond is registered or a beneficial owner of such a Bond.
“Issuer” means the City of Rosemount, Minnesota, which is the obligated person with respect to the
Bonds.
II-1
“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.
“Purchaser” means __________________.
“Repository” means EMMA, or any successor thereto designated by the SEC.
“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 Securities and Exchange Commission, and any successor thereto.
Section 3. Provision of Annual Financial Information and Audited Financial Statements.
(a) The Issuer shall provide to the Repository, as soon as available, but not later than twelve (12)
months after the end of the Fiscal Year commencing with the year that ends December 31, 2012, 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.
II-2
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 ten (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.
. The SEC has designated EMMA as a nationally recognized municipal
Section 6. EMMA
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.
II-3
Section 7. Termination of Reporting Obligation. The Issuer’s obligations under the
Resolutions and this Disclosure Certificate shall terminate upon [the legal defeasance,] the redemption in full
of all Bonds or payment in full of all 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 Resolutions 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 Resolutions 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 Resolutions requiring continuing disclosure pursuant to the Rule
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 impose the continuing disclosure requirements of the Resolutions and the execution and
delivery of this Disclosure Certificate are invalid, have been repealed retroactively or otherwise do not apply
to the Bonds. The provisions of the Resolutions requiring continuing disclosure pursuant to the Rule 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 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 Resolutions 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 the Holders from time to time of the Bonds, and shall create no
rights in any other person or entity.
[The remainder of this page is intentionally left blank.]
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APPENDIX III
SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND
MINNESOTA REAL PROPERTY VALUATION
(effective through levy year 2011/payable year 2012)
Following is a summary of certain statutory provisions effective through levy year 2011/payable
year 2012 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.
A homestead market value exclusion is applied prior to determining a property’s net tax
capacity, for property classified as Class 1a or 1b and Class 2a. 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,
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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%
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.
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.
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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.
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 Local Tax Local Tax Local Tax Local Tax
Payable Payable Payable Payable Payable
Property Type20082009201020112012
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 (4b1)
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 (4a) 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)
11111
Up to $150,000 1.50% 1.50% 1.50% 1.50% 1.50%
11111
Over$150,0002.00% 2.00% 2.00% 2.00% 2.00%
Electric Generation Machinery 2.00% 2.00% 2.00% 2.00% 2.00%
Commercial Seasonal Residential
Homestead Resorts (1c)
3
Up to $600,000 0.55% 0.55% 0.50% 0.50% 0.50%
3
$600,000 - $2,300,000 1.00% 1.00% 1.00% 1.00% 1.00%
311111
Over$2,300,0001.25% 1.25% 1.25% 1.25% 1.25%
Seasonal Resorts (4c)
11111
Up to $500,000 1.00% 1.00% 1.00% 1.00% 1.00%
11111
Over$500,0001.25% 1.25% 1.25% 1.25% 1.25%
Non-Commercial
(4c1)
1 21 21 21 21 2
Up to $500,000 1.00% 1.00% 1.00% 1.00% 1.00%
1 21 21 21 21 2
Over$500,0001.25% 1.25% 1.25% 1.25% 1.25%
Disabled Homestead
(1b)
3
Up to $50,000 0.45% 0.45% 0.45% 0.45% 0.45%
3
$50,000 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%
Agricultural Land & Buildings
Homestead (2a)
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%
Remainder of Farm
422222
Up to $1,140,0000.55%0.55%0.50%0.50%0.50%
422222
Over$1,140,0001.00% 1.00% 1.00% 1.00% 1.00%
22222
Non-homestead (2b) 1.00% 1.00% 1.00% 1.00% 1.00%
1
Subject to the State General Property Tax.
2
Exempt from referendum market value tax.
3
2008 legislative increases.
4
2010 legislative increases.
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APPENDIX IV
AUDITED 2011 COMPREHENSIVE ANNUAL FINANCIAL REPORT
The City is audited annually by an independent certified public accounting firm. This Appendix
includes the City’s audited Comprehensive Annual Financial Report for fiscal year ended
December 31, 2011.
For its comprehensive annual financial report for the fiscal years ended December 31, 1996
through 2010, 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 2011 fiscal year to GFOA.
The Governmental Accounting Standards Board (GASB) issued Statement 54, Fund Balance
Reporting and Governmental Fund Type Definitions for State and Local Governments in
February 2009. The statement establishes a new financial reporting model for state and local
governments to enhance the usefulness of fund balance information by providing clearer fund
balance classifications that can be more consistently applied and by clarifying the existing
governmental fund type definitions. This statement establishes fund balance classifications that
comprise a hierarchy based primarily on the extent to which a government is bound to observe
constraints imposed upon the use of the resources reported in governmental funds.
PROPOSAL SALEDATE:
August 21, 2012
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:
$810,000* General Obligation Improvement Bonds, Series 2012A
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 $803,520) and
accrued interest to the date of delivery.
%2014%2015%2016%2017%2018
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 August 7, 2012. In the event of failure to deliver these Bonds in accordance with
and made a part hereof, we reserve the right to
the Terms of Proposal as printed in the Official Statement
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
amended.
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