HomeMy WebLinkAbout6.d. 2014A G.O. Improvement Bonds – Authorizing Issuance and Setting Bond Sale 4ROSEMOUNTEXECUTIVE SUMMARY
CITY COUNCIL
City Council Meeting Date: August 19, 2014
AGENDA ITEM: 2014A G.O. Improvement Bonds - AGENDA SECTION:
Authorizing Issuance and Setting Bond Consent
Sale
PREPARED BY: Jeff May, Finance Director AGENDA NO.
ATTACHMENTS: Resolution and Recommendations APPROVED BY: QQJ
RECOMMENDED ACTION: Motion to adopt a Resolution Providing for the Competitive
Negotiated Sale of$2,400,000 General Obligation Improvement Bonds, Series 2014A.
ISSUE
The authorization to issue bonds for the construction of street and utility improvements for the Bella Vista
2nd Addition, the Prestwick Place 10`h Addition and the Bacardi Avenue Improvements.
BACKGROUND
This item is on the agenda for your consideration in authorizing the issuance and setting the sale of
General Obligation Improvement bonds for the Bella Vista 2nd Addition, the Prestwick Place 10`h Addition
and the Bacardi Avenue Improvements. The repayment of these bonds will be collected through special
assessments levied for these projects.
Bids will be open until Tuesday, September 16, 2014, at 10:30 A.M. at the offices of Springsted
Incorporated. The bids will be tabulated there and then consideration for award of the Bonds will be by
the City Council at 7:00 P.M., Central Time, of the same day.
SUMMARY
Recommend the above motion.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2014-
RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED
SALE OF $2,400,000 GENERAL OBLIGATION
BONDS, SERIES 2014A
WHEREAS, the City Council of the City of Rosemount, Minnesota (the "City"), has heretofore
determined that it is necessary and expedient to issue its $2,400,000 General Obligation Bonds,
Series 2014A (the "Bonds") to finance infrastructure improvement projects in various areas of the
City;
WHEREAS, the City has retained Springsted Incorporated,in Saint Paul,Minnesota ("Springsted"),
as its independent financial advisor and is therefore authorized to sell these obligations by a
competitive negotiated sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9);
and
NOW,THEREFORE,BE IT RESOLVED by the City Council of the City of Rosemount,
Minnesota, as follows:
1. Authorization; Findings. The City Council hereby authorizes Springsted to solicit bids for
the competitive negotiated sale of the Bonds.
2. Meeting;Bid Opening. This City Council shall meet at the time and place specified in the
Terms of Proposal attached hereto as Exhibit A for the purpose of considering sealed bids for, and
awarding the sale of, the Bonds. The Administrator, or designee, shall open bids at the time and
place specified in such Terms of Proposal.
3. Terms of Proposal. The terms and conditions of the Bonds and the negotiation thereof are
fully set forth in the "Terms of Proposal' attached hereto as Exhibit A and hereby approved and
made a part hereof.
4. Official Statement. In connection with said competitive negotiated sale, the Administrator,
Finance Director and other officers or employees of the City are hereby authorized to cooperate
with Springsted and participate in the preparation of an official statement for the Bonds, and to
execute and deliver it on behalf of the City upon its completion.
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448272V1 JSB RS125-15
RESOLUTION 2014-
ADOPTED this 19th day of August, 2014.
William H. Droste, Mayor
ATTEST:
Clarissa Hadler, City Clerk
CERTIFICATION
I hereby certify that the foregoing is a true and correct copy of a resolution presented to and
adopted by the City Council of Rosemount at a duly authorized meeting thereof, held on the 19th
day of August, 2014, as disclosed by the records of said City in my possession.
(SEAL)
Rosemount City Clerk
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448272V1 JSB RS125-15
RESOLUTION 2014-
EXHIBIT A
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE
FOLLOWING BASIS:
TERMS OF PROPOSAL
$2,400,000*
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION BONDS, SERIES 2014A
(BOOK ENTRY ONLY)
Proposals for the Bonds and the Good Faith Deposit ("Deposit") will be received on Tuesday,
September 16, 2014, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul,Minnesota, after which time proposals will be opened and
tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central
Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time
of sale specified above. All bidders are advised that each proposal shall be deemed to constitute a
contract between the bidder and the City to purchase the Bonds regardless of the manner in which
the proposal is submitted.
(a) Sealed Bidding Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to
Springsted. Signed proposals,without final price or coupons, may be submitted to Springsted prior
to the time of sale. The bidder shall be responsible for submitting to Springsted the final proposal
price and coupons,by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the
submitted proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via
PARITY°. For purposes of the electronic bidding process, the time as maintained by PARITY°
shall constitute the official time with respect to all proposals submitted to PARITY°. Each bidder
hall be solely responsible for making necessary arrangements to access PARITY®for purposes of submitting its
electronic proposal 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.
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448272V1 JSB RS125-15
RESOLUTION 2014-
If any provisions of this Terms of proposal conflict with information provided by PARITY°, this
Terms of proposal shall control. Further information about PARITY°,including any fee charged,
may be obtained from:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
DETAILS OF THE BONDS
The Bonds will be dated as of the date of delivery and will bear interest payable on February 1 and
August 1 of each year, commencing August 1, 2015. 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:
2016 $380,000 2018 $395,000 2020 $410,000 2022 $80,000 2024 $85,000
2017 $395,000 2019 $400,000 2021 $ 80,000 2023 $85,000 2025 $90,000
* The City reserves the right, afterproposals are opened and prior to award, to increase or reduce the principal
amount of the Bonds or the amount of any maturity in multoles of$5,000. In the event the amount of any
maturity zs mold, aed, the aggregate purchase price will be adjusted to result in the same gross spreadper$'1,000 of
Bonds as that o the original proposal. Gross spread is the di erential between the price paid to the City for the
new issue and the prices at which the securities are initially o�ed to the investing public.
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 scheduled to 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
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448272V1 JSB RS125-15
RESOLUTION 2014-
The City may elect on February 1, 2023, and on any day thereafter, to prepay Bonds due on or after
February 1, 2024. Redemption may be in whole or in part and if in part at the option of the City
and in such manner as the City shall determine. If less than all Bonds of a maturity are called for
redemption, the City will notify DTC of the particular amount of such maturity to be prepaid. DTC
will determine by lot the amount of each participant's interest in such maturity to be redeemed and
each participant will then select by lot the beneficial ownership interests in such maturity to be
redeemed. All prepayments shall be at a price of par plus accrued interest.
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 and net revenues of the City's water utility fund. The
proceeds will be used to finance infrastructure improvement projects in various areas of the City.
BIDDING PARAMETERS
Proposals shall be for not less than $2,373,600 plus accrued interest,if any, 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 1/100 or 1/8 of 1%. The initial price to the public for each maturity must be 98.0% or
greater. 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
$24,000,in the form of a certified or cashier's check, a wire transfer, or Financial Surety Bond and
delivered to Springsted Incorporated prior to the time proposals will be opened. Each bidder shall
be solely responsible for the timely delivery of their Deposit whether by check,wire transfer or
Financial Surety Bond. Neither the City nor Springsted Incorporated have any liability for delays in
the transmission of the Deposit.
Any Deposit made by certified or cashier's check should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul,Minnesota 55101.
Any Deposit sent via wire transfer should be sent to Springsted Incorporated as the City's agent
according to the following instructions:
Wells Fargo Bank,N.A., San Francisco, CA 94104
ABA #121000248
for credit to Springsted Incorporated,Account #635-5007954
Ref: Rosemount, Minnesota Series 2014A 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 (including the fed reference number and time released), (ii) the amount of
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448272V1 JSB RS125-15
RESOLUTION 2014-
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
On or about October 16, 2014, 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
In accordance with SEC Rule 15c2-12(b)(5), the City will undertake,pursuant to the resolution
awarding sale of the Bonds, to provide annual reports and notices of certain events. A description
of this undertaking is set forth in the Official Statement. The purchasers obligation to purchase the
Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery of the
Bonds.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent
information relative to the Bonds, and said Preliminary 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 Preliminary Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Municipal Advisor to the City, Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law. By awarding the Bonds to an underwriter or underwriting syndicate,
the City agrees that, no more than seven business days after the date of such award,it shall provide
without cost to the sole underwriter or to the senior managing underwriter of the syndicate (the
"Underwriter" for purposes of this paragraph) to which the Bonds are awarded up to 25 copies of
the Final Official Statement. The City designates the 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. Such Underwriter agrees that if its proposal is accepted by the City,
(i) it shall accept 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 August 19, 2014 BY ORDER OF THE CITY COUNCIL
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448272V1 JSB RS125-15
RESOLUTION 2014-
/s/ Clarissa Hadler
City Clerk
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448272V1 JSB RS125-15
City of Rosemount, Minnesota
Recommendations for Issuance of Bonds
$2,400,000 General Obligation Bonds, Series 2014A
The City Council has under consideration the issuance of bonds to finance infrastructure improvement projects in
various areas of the City. This document provides information relative to the proposed issuance.
KEY EVENTS: The following summary schedule includes the timing of some of the key events that will
occur relative to the bond issuance.
August 19, 2014 City Council sets sale date and terms
Week of September 1, 2014 Rating conference is conducted
September 16,2014, 10:30 AM Competitive bids are received
September 16,2014,7:00 PM City Council considers award of bonds
October 16, 2014(est.) Proceeds are received
RATING: An application will be made to Moody's Investors Service for a rating on the Bonds. The
City's general obligation debt is currently rated 'Aa2' by Moody's.
THE MARKET: Performance of the tax-exempt market is often measured by the Bond Buyer's Index("BBI")
which measures the yield of high grade municipal bonds in the 20th year for general
obligation bonds (the BBI 20 Bond Index) and the 30th year for revenue bonds (the BBI 25
Bond Index). The following chart illustrates these two indices over the past five years.
BBI 25-bond (Revenue) and 20-bond (G.O.) Rates for 5 Years
Ending 8/7/2014
6.5% ----BBI 25 Bond
—BBI 20 Bond
8/7/2014
6.0% 25 bond:4.89%
20 bond:4.31%
5.5%
H 5.0% r '�
t0 % Ar�
4.5%
4.0%
3.5%
3.0%
009 000 0�0 0�0 O^O O^� 01^ O^^ O^� O^� O�� O^O O^O OHO p^b pNN
~ "r Dates Prepared b S nn sted Incorporated
0 V_ P Y P 9 P
a, U
a C
Q Springsted
POST ISSUANCE The issuance of the Bonds will result in post-issuance compliance responsibilities. The
COMPLIANCE: responsibilities are in two primary areas: i)compliance with federal arbitrage requirements
and ii)compliance with secondary disclosure requirements.
Federal arbitrage requirements include a wide range of implications that have been taken
into account as your issue has been structured. Post-issuance compliance responsibilities
for your tax-exempt issue include both rebate and yield restriction provisions of the IRS
Code. In general terms the arbitrage requirements control the earnings on unexpended
bond proceeds, including investment earnings, moneys held for debt service payments
(which are considered to be proceeds under the IRS regulations), and/or reserves. An issue
qualifies for a small issuer exception from rebate if it is sold by a municipality with general
taxing powers that issues $5 million or less of certain tax-exempt obligations in a calendar
year. The City expects to qualify as a small issuer for the year. Yield restriction provisions
will apply to the debt service fund and any project proceeds unspent after three years under
certain conditions and the funds should be monitored throughout the life of the Bonds.
Secondary disclosure requirements result from an SEC requirement that underwriters
provide ongoing disclosure information to investors. To meet this requirement, the
underwriter will require the City to commit to providing the information needed to comply
under a continuing disclosure agreement. The agreement will require filing with the
Municipal Securities Rulemaking Board of the City's CAFR, an annual report of certain
supplemental information, and events that may occur from time to time that may be material
to bondholders. Failure to file when due will result in a requirement that the City disclose its
failure to file in any official statement issued during the subsequent five year period.
Springsted currently provides arbitrage and continuing disclosure compliance services to the
City under separate contracts. Contract amendments adding this issue will be provided to
City staff.
SUPPLEMENTAL Supplementary information will be available to staff including detailed terms and conditions
INFORMATION AND of sale, comprehensive structuring schedules and information to assist in meeting post-
BOND RECORD: issuance compliance responsibilities.
Upon completion of the financing, a bond record will be provided that contains pertinent
documents and final debt service calculations for the transaction.
PURPOSE: Proceeds of the Bonds, together with other available funds of the City ($2,691,643) and
developers ($409,014), will be used to finance various infrastructure improvements for
Bacardi Avenue, Bella Vista and Prestwick Place, including street, water, sewer and storm
water improvements.
AUTHORITY: Statutory Authority: The Bonds are being issued pursuant to Minnesota Statutes,
Chapters 475,444, and 429.
Statutory Requirements: Pursuant to Minnesota Statutes, Chapter 444 and the resolution
awarding the Bonds, the City will covenant to maintain rates in an amount sufficient to
generate revenues to support the operation of the water utility and to pay debt service on
the Water Portion of the Bonds(defined below). The City is required to annually review the
budget of the water utility to determine whether current rates and charges are sufficient and
to adjust them as necessary.
Springsted Page
The City currently has three other outstanding bond issues for which the net revenues of the
water utility fund are pledged. The table below shows the net revenues available for debt
service based on the audited financial statements of the City for the fiscal year ending
December 31, 2013. The maximum annual debt service payment on the Bonds and the
outstanding bonds is projected to be approximately$438,214.
City of Rosemount Water Utility
Net Revenues Available For Debt Service
Fiscal Year Ended December 31,2013
Operating Revenue $ 1,670,955
Operating Expense (1,850,283)
Net Operating Income(Loss) (179,328)
Add Back Depreciation and amortization 773,852
Add Connection Fees 206,625
Add Other income 58,227
Available for Debt Service 859,376
Debt Service(actual) 438,214
Surplus(Shortfall) $ 421,162
Coverage with connection fees 1.96 times
Coverage without connection fees 1.49 times
Source:City of Rosemount Comprehensive Annual Financial Reports,for the Year Ended
December 31,2013.
SECURITY AND The Bonds will be general obligations of the City, secured by its full faith and credit and
SOURCE OF taxing power. The Bonds will be paid from a combination of property taxes, special
PAYMENT: assessments against benefited properties and water utility core fund revenue.
Assessments in the principal amount of$1,482,057 will be spread over a term of 5 years.
Assessments in the principal amount of$337,174 will be spread over a term of 10 years.
Assessements will be colJecdted with level annual payments of principal and interest.
Interest will be charged on the unpaid balance at a rate of 2.00% over the rate on the
Bonds. Assessments are expected to be filed on or about November 1, 2014 for first
collection in 2015. The City will need to levy for a portion of debt service attributable to the
Improvement Portion of the Bonds(defined below), beginning with collection year 2015.
Each years collection of assessments, taxes and water utility revenues will be used to pay
the interest to come due on August 1 in the year of collection and the principal and interest
due February 1 in the following year. The City will make its first levy for the Improvement
Portion in 2014 for collection beginning in 2015.
STRUCTURING At the direction of the City, the Bonds have been structured with two purposes: $1,820,000
SUMMARY: to be paid from special assessments and tax levies (the "Improvement Portion")
and $580,000 to be paid by pledged revenues of the water utility core fund (the "Water
Portion"). The Improvement Portion was structured around the assessment income to result
in approximately even annual levies. The Water Portion was structured to provide for level
annual payments over a term of ten years.
Springsted Page
SCHEDULES Schedules attached include a sources and uses of funds, assessment income and
ATTACHED: estimated debt service requirements for the issue as a whole and by purpose, given the
current interest environment.
RISKS/SPECIAL The outcome of this financing will rely on the market conditions at the time of the sale. Any
CONSIDERATIONS: projections included herein are estimates based on current market conditions.
SALE TERMS AND Variability of Issue Size: A specific provision in the sale terms permits modifications to the
MARKETING: issue size and/or maturity structure to customize the issue once the price and interest rates
are set on the day of sale.
Prepayment Provisions: Bonds maturing on or after February 1, 2024 may be prepaid at a
price of par plus accrued interest on or after February 1, 2023.
Bank Qualification: The City does not expect to issue more than $10 million in tax-exempt
obligations that count against the $10 million limit for this calendar year; therefore, the
Bonds are designated as bank qualified.
Springsted Page
$2,400,000
City of Rosemount, Minnesota
General Obligation Bonds, Series 2014A
Issue Summary
Total Issue Sources And Uses
Dated 10116/2014 1 Delivered 10/16/2014
improvement water issue
Portion Portion Summary
Sources Of Funds
Par Amount of Bonds................................................... $1,820,000.00 $580,000.00 $2,400,000.00
MSA Funds and Street CIP........................................... 1,509,693.00 1,509,693.00
Sewer Core Fund........................................................ 1,117,791.00 1,117,791.00
Prestw ick Developer.................................................... 211,269.00 211,269.00
Bella Vista Developer................................................... 197,745.00 197,745.00
Storm Core Fund.......................................................... 64,159.00 64,159.00
Total Sources............................................................ $4,920,657.00 $580,000.00 $5,500,657.00
Uses Of Funds
Deposit to Project Construction Fund........................... 4,871,771.74 564,014.26 5,435,786.00
Costs of Issuance........................................................ 28,096.26 8,953.74 37,050.00
Total Underw riter's Discount (1.100%)...................... 20,020.00 6,380.00 26,400.00
Rounding Amount......................................................... 769.00 652.00 1,421.00
Total Uses.................................................................. $4,920,657.00 $580,000.00 $5,500,657.00
2014A GO Bands A—,S--y 8 8%20/4 135 PM
Springsted Page
$2,400,000
City of Rosemount, Minnesota
General Obligation Bonds, Series 2014A
Issue Summary
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I Net New D/S 105%of Total Assessment Water Core Levy
Income Fund Required
02/01/2015 - - - - - - -
02/01/2016 380,000.00 0.600% 42,211.67 422,211.67 422,211.67 443,322.25 375,328.62 66,737.23 1,256.40
02/01/2017 395,000.00 0.750% 30,400.00 425,400.00 425,400.00 446,670.00 375,328.62 68,457.38 2,884.00
02/01/2018 395,000.00 1.100% 27,437.50 422,437.50 422,437.50 443,559.38 375,328.62 68,024.25 206.50
02/01/2019 400,000.00 1.500% 23,092.50 423,092.50 423,092.50 444,247.13 375,328.61 67,389.00 1,529.52
02/01/2020 410,000.00 1.700% 17,092.50 427,092.50 427,092.50 448,447.13 375,328.62 71,772.75 1,345.76
02/01/2021 80,000.00 2.000% 10,122.50 90,122.50 90,122.50 94,628.63 41,640.52 70,701.75 (17,713.65)
02/01/2022 80,000.00 2.250% 8,522.50 88,522.50 88,522.50 92,948.63 41,640.51 69,441.75 (18,133.64)
02/01/2023 85,000.00 2.450% 6,722.50 91,722.50 91,722.50 96,308.63 41,640.53 68,024.25 (13,356.16)
02/01/2024 85,000.00 2.600% 4,640.00 89,640.00 89,640.00 94,122.00 41,640.52 66,480.75 (13,999.27)
02/01/2025 90,000.00 2.700% 2,430,00 92,430.00 92,430.00 97,051.50 41,640.52 70,092.75 (14,681.77)
Total $2,400,000.00 - $172,671.67 $2,572,671.67 $2,572,671.67 $2,701,305.25 $2,084,845.69 $687,121.86 (70,662.29)
Dated................................................................................................................................................................................................... 10/16/2014
DeliveryDate........................................................................................................................................................................................... 10/16/2014
FirstCoupon Date....................................................................................................................................................................................... 8/01/2015
Yield Statistics
BondYear Dollars....................................................................................................................................................................................... $10,090.00
AverageLife............................................................................................................................................................................................ 4.204 Years
AverageCoupon.......................................................................................................................................................................................... 1.7113149%
NetInterest Cost(NIC)................................................................................................................................................................................. 1.9729601%
TrueInterest Cost(TIC)................................................................................................................................................................................ 1.9722846%
BondYield for Arbitrage Purposes....................................................................................................................................................................... 1.6971360%
AllInclusive Cost(AIC)................................................................................................................................................................................ 2.3660305%
IRS Form 8038
NetInterest Cost....................................................................................................................................................................................... 1.7113149%
WeightedAverage Maturity............................................................................................................................................................................... 4.204 Years
2014.E GO B o nds Issue Summary l8 12014 2:34 BA9
Springsted Page
$1,819,231
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 2014A
Assessments
Aggregate Assessment Income
DATE 2014A 2014A TOTAL
Assessment Assessment
Bella and Bacardi
12/3112015 333,688.10 41,640.52 375,328.62
12/31/2016 333,688.10 41,640.52 375,328.62
12/31/2017 333,688.10 41,640.52 375,328.63
12/31/2018 333,688.10 41,640.52 375,328.62
12/31/2019 333,688.10 41,640.52 375,328.61
12/31/2020 - 41,640.52 41,640.52
12/31/2021 41,640.52 41,640.52
12/31/2022 41,640.53 41,640.53
12/31/2023 41,640.52 41,640.52
12/31/2024 41,640.53 41,640.53
Total $1,668,440.49 $416,405.21 $2,084,845.71
2014A Assessments-Bella and Prestw ick......................................................................................................... 1,482,057.00
2014A Assessments-Bacardi............................................................................................................................ 337,174.00
TOTAL................................................................................................................................................................ 1,819,231.00
Aggregate A.12014 2:34 PM
Springsted Pagel
$1,482,057
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 2014A
Assessments-Bella and Prestwick
ASSESSMENT INCOME
Date Principal Coupon Interest Total P+I
12/31/2014 - - -
12/31/2015 269,947.30 3.970% 63,740.80 333,688.10
12/31/2016 285,567.34 3.970% 48,120.76 333,688.10
12/31/2017 296,904.37 3.970% 36,783.73 333,688.10
12/31/2018 308,691.47 3.970% 24,996.63 333,688.10
12/31/2019 320,946.52 3.970% 12,741.58 333,688.10
Total $1,482,057.00 - $186,383.49 $1,668,440.49
SIGNNFICANT DATES
FilingDate............................................................................................................................................................ 11/30/2014
FirstPayment Date.............................................................................................................................................. 12/31/2015
2014A Assessments Bella and Prestwick 8 12014 2:34 PM
Springsted Page
$337,174
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 2014A
Assessments -Bacardi
ASSESSMENT INCOME
Date Principal Coupon Interest Total P+I
12/31/2014 - - -
12/31/2015 27,139.23 3.970% 14,501.29 41,640.52
12/31/2016 29,332.14 3.970% 12,308.38 41,640.52
12/31/2017 30,496.63 3.970% 11,143.89 41,640.52
12/31/2018 31,707.34 3.970% 9,933.18 41,640.52
12/31/2019 32,966.12 3.970% 8,674.40 41,640.52
12/31/2020 34,274.88 3.970% 7,365.54 41,640.52
12/31/2021 35,635.59 3.970% 6,004.93 41,640.52
12/31/2022 37,050.33 3.970% 4,590.20 41,640.53
12/31/2023 38,521.22 3.970% 3,119.30 41,640.52
12/31/2024 40,050.52 3.970% 1,590.01 41,640.53
Total $337,174.00 - $79,231.21 $416,405.21
SIGNFICANT DATES
FilingDate.............................................................................................................................................................. 11130/2014
FirstPayment Date................................................................................................................................................. 12/31/2015
2014A Assessments Bacardi 8,12014 2:3!PM
Springsted Page
$1,820,000
City of Rosemount, Minnesota
General Obligation Bonds, Series 2014A
Improvement Portion
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I Net New D/S 105%of Total Assessment Levy
Income Required
02/01/2015 - - - - - - -
02/01/2016 330,000.00 0.600% 28,652.40 358,652.40 358,652.40 376,585.02 375,328.62 1,256.40
02/01/2017 340,000.00 0.750% 20,202.50 360,202.50 360,202.50 378,212.63 375,328.62 2,884.01
02/01/2018 340,000.00 1.100% 17,652.50 357,652.50 357,652.50 375,535.13 375,328.62 206.51
02/01/2019 345,000.00 1.500% 13,912.50 358,912.50 358,912.50 376,858.13 375,328.61 1,529.51
02/01/2020 350,000.00 1.700% 8,737.50 358,737.50 358,737.50 376,674.38 375,328.62 1,345.76
02/01/2021 20,000.00 2.000% 2,787.50 22,787.50 22,787.50 23,926.88 41,640.52 (17,713.65)
02/01/2022 20,000.00 2.250% 2,387.50 22,387.50 22,387.50 23,506.88 41,640.51 (18,133.64)
02/01/2023 25,000.00 2.450% 1,937.50 26,937.50 26,937.50 28,284.38 41,640.53 (13,356.16)
02/01/2024 25,000.00 2.600% 1,325.00 26,325.00 26,325.00 27,641.25 41,640.52 (13,999.27)
02/01/2025 25,000.00 2.700% 675.00 25,675.00 25,675.00 26,958.75 41,640.52 (14,681.77)
Total $1,820,000.00 - $98,269.90 $1,918,269.90 $1,918,269.90 $2,014,183.40 $2,084,845.69 (70,662.29)
Dated.......................................................................................................................................................................................... 10/1612014
DeliveryDate.............................................................................................................................................................................. 10/16/2014
FirstCoupon Date...................................................................................................................................................................... 8/01/2015
Yield Statistics
BondYear Dollars...................................................................................................................................................................... $6,625.83
AverageLife.............................................................................................................................................................................. 3.641 Years
AverageCoupon........................................................................................................................................................................ 1.4831327%
NetInterest Cost(NIC)............................................................................................................................................................... 1.7852834%
TrueInterest Cost(TIC).............................................................................................................................................................. 1.7885693%
Bond Yield for Arbitrage Purposes............................................................................................................................................ 1.6971360%
AllInclusive Cost(AIC).............................................................................................................................................................. 2.2380088%
IRS Form 8038
NetInterest Cost........................................................................................................................................................................ 1.4831327%
WeightedAverage Maturity....................................................................................................................................................... 3.641 Years
2014A GOBonds I Assessed Portion 8.'12014 2:34 PM
Springsted Page 10
$580,000
City of Rosemount, Minnesota
General Obligation Bonds, Series 2014A
Water Portion
DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I 105%Levy
02/01/2015 - - - -
02/01/2016 50,000.00 0.600% 13,559.27 63,559.27 66,737.23
02/01/2017 55,000.00 0.750% 10,197.50 65,197.50 68,457.38
02/01/2018 55,000.00 1.100% 9,785.00 64,785.00 68,024.25
02/01/2019 55,000.00 1.500% 9,180.00 64,180.00 67,389.00
02/01/2020 60,000.00 1.700% 8,355.00 68,355.00 71,772.75
02/01/2021 60,000.00 2.000% 7,335.00 67,335.00 70,701.75
02/01/2022 60,000.00 2.250% 6,135.00 66,135.00 69,441.75
02/01/2023 60,000.00 2.450% 4,785.00 64,785.00 68,024.25
02/01/2024 60,000.00 2.600% 3,315.00 63,315.00 66,480.75
02/01/2025 65,000.00 2.700% 1,755.00 66,755.00 70,092.75
Total $580,000.00 - $74,401.77 $654,401.77 $687,121.86
SIGNIFICANT DATES
Dated.................................................................................................................................................................... 10/16/2014
DeliveryDate........................................................................................................................................................ 10/16/2014
FirstCoupon Date................................................................................................................................................ 8/01/2015
Yield Statistics
BondYear Dollars................................................................................................................................................ $3,464.17
AverageLife........................................................................................................................................................ 5.973 Years
AverageCoupon.................................................................................................................................................. 2.1477538%
Net Interest Cost(NIC)......................................................................................................................................... 2.3319250%
True Interest Cost(TIC)........................................................................................................................................ 2.3323833%
Bond Yield for Arbitrage Purposes...................................................................................................................... 1.6971360%
All Inclusive Cost(AIC)........................................................................................................................................ 2.6181041%
IRS Form 8038
NetInterest Cost.................................................................................................................................................. 2.1477538%
Weighted Average Maturity................................................................................................................................. 5.973 Years
Interest rates are estimates.Changes in rates may
cause significant alterations to this schedule.
The actual underwriter's discount bid may also vary.
2014A GOB onds Wa(er Portion,H 12014 2:34 PM
Springsted Page 11