HomeMy WebLinkAbout8.a. Accept Bids and Award Sale – G.O. Improvement Bonds, Series 2014AROSEMOLINT EXECUTIVE SUMMARY
CITY COUNCIL
City Council Meeting Date: September 16, 2014
AGENDA ITEM: Accept Bids and Award Sale — G.O. AGENDA SECTION:
Improvement Bonds, Series 2014A Old Business
PREPARED BY: Jeff May, Finance Director AGENDA NO.
ATTACHMENTS: Resolution, Moody's Rating Assignment
APPROVED BY:Press Release, and Official Statement
RECOMMENDED ACTION: Motion to adopt a Resolution Awarding the Sale of
2,400,000 General Obligation Improvement Bonds, Series 2014A; and Providing for their
Issuance.
ISSUE
Accept bids and award sale of improvement bonds for the construction of street and utility improvements
for the City projects Bella Vista 2"`'Addition, Prestwick Place 10`''Addition and Bacardi Avenue
Improvements.
BACKGROUND
This item is on the agenda for Council to formally- a vard the sale of the improvement bonds. At 10:30
A.M. Tuesday, SeptembeY 16, 2014, sealed bids for G.O. Improvement Bonds, Series 2014A,will be
opened and the results tabulated at the offices of Springsted, our financial advisors for the sale. A
representative from Springsted will be at the Council meeting that evening to give their recommendarion
for the issuance of these bonds and to answer any questions that you may have. A bond rating conference
call was held on Thursday, September 4, 2014,with a repxesentarive from Moody's and from Springsted
speaking with me regarcling the City of Rosemount. On Wednesday, SeptembeY 10`h, our Yating was taken
to a coininittee of Moody's for evaluation and our r1a2 rating was affirmed at that meeting for our new
debt as well as all of our e sting debt.
Because the bid operung is not until earlier in the day Tuesday, you will receive information regaYding the
bids at the meeting that evening.
SUMMARY
Recommend the above motion.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION NO.
A RESOLUTION AWARDING THE SALE OF $2,400,000 GENERAL
OBLIGATION BONDS, SERIES 2014A;
AND PROVIDING FOR THEIR ISSUANCE
BE IT RESOLVED By the City Council of the City of Rosemount, Dakota County, Minnesota
the "Citv") as follows:
Section 1. Sale of Bonds.
1.01 rluthorization. It is hereby determined that it is necessary and expedient that the City issue
appro nately $2,400,000 General Obligation Bonds, Series 2014r (the "Bonds") pursuant to
Minnesota Statutes, Chapters 429, 444 and 475 (the "rlct") to pxovide financing for various street
infrastructure improvement pxojects in the Cit (the "Improvement Project") and various water
system improvements (the "Water Project"). 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
fmancial 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 ward to the Purchaser and Interest Rates. The proposals weYe as set forth in EXHIBIT B
attached. The proposal of the "Purchaser") to purchase $2,400,000
General Obligation Bonds, Series 2014t1 (the "Bonds") of the Cit described in the Terms of
Proposal thereof is deteYmined to be the most favorable offer and is accepted, the proposal being to
purchase the Bonds at a price of $ plus accrued interest to date of delivery, fot
Bonds bearing interest as follows:
Year InteYest Rate YeaY Interest Rate
2016 2021
2017 2022
2018 2023
2019 2024
2020 2025
1.03. Purchase. Any original issue premium and any Younding amount shall be credited to the
Debt Service Fund hereinafter created, or deposited in the Construction Fund under Section 4.01
hereof, as determined by the City's fmancial advisor and the Ciry Finance Director. The City
Finance Director is directed to retain the good faith check of the Purchaser, pending completion of
the sale of the Bonds, and to return the good faith checks of the unsuccessful proposers. The
Mayor and Cit Clerk are authoxized to execute a contract with the Purchaser on behalf of the City.
1.04. Terms and Princi al Amount of the Bonds. The Cit will forthwith issue and sell the Bonds
puYSUant to the Act in the total principal amount of $2,400,000, originally dated the date of delivery,
in the denomination of 5,000 each or any integral multiple thereof, numbered No. R-1, upward,
bearing interest as above set forth, and which mature on February 1 in the years and amounts as
follows:
1
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Year Amount YeaY Amount
2016 380,000 2021 80,000
2017 395,000 2022 80,000
2018 395,000 2023 85,000
2019 400,000 2024 85,000
2020 410,000 2025 90,000
1,820,000 of the Bonds consritutes the "Impro ement Project Porrion", mat u-uig in the amounts and
on the dates set forth below:
Year Amount Year 1 mount
2016 330,000 2021 20,000
2017 340,000 2022 20,000
2018 340,000 2023 25,000
2019 345,000 2024 25,000
2020 350,000 2025 25,000
580,000 of the Bonds consritutes the "Water Project Porrion", matiii7ng in the amounts and on the
dates set forth below:
Year rlmount Year r mount
2016 50,000 2021 60,000
2017 55,000 2022 60,000
2018 55,000 2023 60,000
2019 55,000 2024 60,000
2020 60,000 2025 65,000
1.05. Optional Redem tion. The City may elect on February 1, 2023, and on any day thereafter to
prepay Bonds due on oY 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 will determine. If less than all Bonds
of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 hereo 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 inteYests in such maturity to be redeemed. PYepayments will be at a price
of par plus accrued interest.
Section 2. Registration and Pa,.
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 descxibed herein.
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 oY made available
for payment,unless (i) the date of authentication is an interest payment date to which interest has
been paid or made available for 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 first interest payment date,in which
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case the Bond will be dated as of the date of original issue. The interest on the Bonds is payable on
February 1 and August 1 of each year, commencing August 1, 2015, to the registered owneYS of
record 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 istration. The City will appoint, and will maintain, a bond registrar, 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 theYeto aYe as follows:
a) Register. The Registrar must keep at its principal corporate trust office a bond register in
which the Registrar provides for the registration of ownership of Bonds and the registration of
ttansfers and exchanges of Bonds entided to be registered, transferred or exchanged.
b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the registered
owner thereof or accompanied by a written instxument of transfer,in form satisfactory to the
Registrar, dul executed by the registered owner thereof or by an attorney duly authorized by the
registered owner in writing, the Registrax will authenticate and deliver,in the name of the
designated transferee or transferees, one or more new Bonds of a like aggregate principal amount
and maturity, as requested by the transferor. The RegistraY may, however, close the books for
registration of any transfer after the fifteenth day of the month preceding each interest pay ment
date and until that interest payment date.
c) Exchange of Bonds. When Bonds are surrendered by the registexed owner for exchange the
Registtar will authenucate and deliver one or more new Bonds of a like aggregate principal amount
and maturity as requested by the registered owner or the owner's attorney in writing.
d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by
the Registrar and thereafter disposed of as directed by the City.
e) Im ro eY or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer,
the Registrar mav refuse to transfer the Bond until the Registrar is satisfied that the endorsement on
the Bond or separate instYUment of transfer is valid and genuine and that the requested transfer is
legally authorized. The Registrar will incur no liability for the refusal, in good faith, to make
transfers which it, in its judgment, deems improper or unauthorized.
Persons Deemed Owners. The City and the Registrar may treat the person in whose name a
Bond is registered in the bond register as the absolute owner of the Bond,whether the Bond is
overdue or not, fox the purpose of Yeceiving payment of, or on account of, the principal of and
interest on the Bond and foY all other 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 or sums so paid.
g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a
transfeY or exchange of Bonds sufficient to reimburse the Registrar fox any tax, fee oY other
governmental charge xequired to be paid with respect to the transfeY or exchange.
h) Mutilated,Lost, Stolen or Destro ed Bonds. If a Bond becomes mutilated or is destroyed,
stolen or lost, the Registrar will deli-er 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
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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 ownership thereof, and upon furnishing to the Registrar an
appropriate bond or indemnity in form, substance and amount satisfactory to it and as pYOVided by
law, in which both the Citv and the Registrar must be named as obligees. Bonds so surrendered to
the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to
the Cit. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for
redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment.
2.04. r,ppointment of Initial Registrar. The City appoints U.S. Bank National Association,
St. Paul, Minnesota, as the initial Registrar. The Mayor and the City C1eYk aYe authorized to execute
and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of
the RegistraY with another corporation,if the resulting corporation is a bank or trust company
authorized by law to conduct such business, the resulting corporation is authorized to act as
successox Registrar. The City agrees to pay the reasonable and customary charges of the Registrar
for the services performed. The City reserves the right to remove the Registrar upon 30 days'notice
and upon the appointment of a successor Registrar,in which event the predecessoY Registrar must
deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond
registeY to the successor Registrar. On or before each principal or interest due date,without fuYther
order of this Council, the City Clerk must transmit to the Registrar monies sufficient for the
payment of all pYincipal and interest then due.
2.05. Execurion,r'uthentication and Deliver. The Bonds will be prepared under the direcrion of
the City Clerk and executed on behalf of the City by the signatures of the Mayor and the Cit Clerk,
provided that all signatuYes may be printed, engraved oY lithographed facsimiles of the originals. If
an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to be such
officer before the delivery of any Bond, that signature ox facsimile will nevertheless be valid and
sufficient for all purposes, the same as if the officer had remained in office until delivery.
Notwithstanding such execution, a Bond will not be valid or obligatory for an purpose or entitled
to any security or 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
repYesentative. The executed certificate of authentication on a Bond is conclusive evidence that it
has been authenticated and delivered under this Resolution. When the Bonds have been so
prepared, executed and authenticated, the City Finance Director will deliver the same to the
Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore
made and executed, and the Purchaser is not obligated to see to the application of the purchase
price.
2.06. Tem oYar 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 maturiry in a single temporaxy bond. L pon
the execurion and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and
cancelled.
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Section 3. Form of Bond.
3.01. Form. The Bonds will be printed or typewritten in substantially the form set forth in
EXHIBIT A.
3.02. ppTr roving Legal O uuon. The City Finance Director is authorized and directed to obtain a
copy of the proposed approving legal opinion of Kennedy& Graven, Chartered, Minneapolis,
Minnesota, which is to be complete except as to dating thereof and cause the opuuon to be printed
on or accompany each Bond.
Section 4. Pa ment; Securit;Pledges and Co renants.
4.01 Debt Service Fund. (a) The Bonds will be payable from the General Obligation Bonds,
Series 2014A Debt Service Fund (the "Debt Service Fund") hereby created. The Debt Service Fund
shall be administered and maintained by the Finance DirectoY as a bookkeeping account sepaYate
and apart from all other funds maintained in the official fmancial records of the City. The City will
maintain the following accounts in the Debt Service Fund: the "Improvement Account" and the
Water rlccount." rlmounts in the Improvement Account are irre Tocably pledged to the
Improvement PYOject Poruon of the Bonds, and amounts in the Water Account are irrevocably
pledged to the Water Pxoject Portion of the Bonds.
b) Im rovement ccount. The Finance Director shall timely deposit in the Improvement
Account of the Debt SeYVice Fund the special assessments (the "Assessments") and the ad valorem
taxes herein levied (the "Taxes"),which rlssessments and Taxes are pledged to the Improvement
Account. There is also appropriated to the Improvement r,ccount a pro rata portion of (i)
capitalized interest financed from the proceeds of the Bonds,if any; (u) amounts over the minimum
purchase price paid by the Purchaser, to the extent designated for deposit in the Debt Service Fund
in accordance with Section 1.03 hereof; and (iii) any accrued interest paid by the Purchaser upon
closing and delivery of the Bonds. If a payment of principal of or interest on the Improvement
Project Portion of the Bonds shall become due when there is not sufficient money in the
Improvement Account to pay the same, the Finance Director is directed to pay such principal or
interest fYOm the geneYal fund of the City, and the general fund will be reimbursed for such
advances out of the proceeds of the r ssessments when received.
c) Water rlccount. The City will continue to maintain and operate its Water Fund to which will
be credited all gross revenues of the water system and out of which will be paid all noxmal and
reasonable expenses of current operations of such system. Any balances therein are deemed net
revenues (the "Net Revenues") and will be transferYed, from time to time, to the Water Account of
the Debt Service Fund,which Water ccount will be used only to pay principal of and interest on
the Water Project Porrion of the Bonds and any other bonds sitnilarly authorized. There will always
be xetained in the Water r ccount a sufficient amount to pay principal of and interest on all the
Water Project PoYtion of the Bonds, and the Finance Director must report any curYent or
anticipated deficiency in the Water Account to the City Council. TheYe is also appropYiated to the
Water Account a pro rata portion of (i) capitalized interest financed fYOm the pxoceeds of the
Bonds, if any; (u) amounts over the minimum purchase price paid by the Purchaser, to the extent
designated for deposit in the Debt Service Fund in accordance with Secrion 1.03 hereof and an
collections of taxes hereafter levied foY the payment of the Water Project Portion of the Bonds and
interest thereon; and (iii) any accrued interest paid by the Purchaser upon closing and delivery of the
Bonds.
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4.02. Construction Fund. The City hereby creates the General Obligation Bonds, Series 2014A
Construction Fund (the "Construction Fund"). The Construction Fund shall be administered and
maintained by the Finance Director as a bookkeeping account separate and apart from all other
funds maintained in the official financial records of the City. The City will maintain the following
accounts in the Construction Fund: the "Improvement ccount" and the "Water r ccount."
Amounts in the Improvement r ccount are irrevocably pledged to the Improvement PYOject Portion
of the Bonds, and amounts in the Water r ccount are irrevocably pledged to the Water Project
Portion of the Bonds.
a) Im rovement r ccount. Proceeds of the Improvement Project Portion of the Bonds,less
the appropriations made in Section 4.01(a) hereof, together with any other funds appropriated for
the Improvement Project and special assessments and Taxes collected during the construction of
the ImpYOVement Project,will be deposited in the ImpYOVement r ccount of the Construction Fund
to be used solely to defray expenses of the Improvement PYOject described herein. When the
Improvement Project is completed and the cost theYeof paid, any balance remaining in the
Improvement Account after completion of the Assessable Improvements may be used to pay the
cost in whole or in part of any otheY unprovement instituted under Chapter 429 of the Act, under
the clirection of the City Council, otherwise the Improvement Account of the Construction Fund is
to be closed and any funds remaining may be deposited in the Improvement Account of the Debt
Service Fund.
b) Water ccount. Proceeds of the Water Project Portion of the Bonds, less the
appropriations made in Section 4.01(b) hereof,will be deposited in the Water Account of the
Construction Fund to be used solely to defray expenses of the Water Project. When the Watex
Project is completed and the cost thereof paid, any balance remaining in the Water rlccount after
completion of the Water Project may be used to pay the cost in whole or in part of any other water
system improvement instituted undeY Chapter 444 of the Act,undeY the direction of the City
Council, otherwise the Water Account of the Construction Fund is to be closed and any funds
Yemaining may be deposited in the Water ccount of the Debt Service Fund.
4.03. Cit Covenants with res ect to Im rovement Project. The City hereby covenants with the
holders from time to time of the Bonds as follows:
a) It is hereby determined that at least 20% of the costs of the Improvement Project to the
City will be paid by ssessments. The City has caused or will cause the r,ssessments for the
Improvement Project to be promptly levied so that the first installment will be collectible not later
than 2015 and will take all steps necessary to assure pxompt collection, and the levy of the
Assessments is hereby authorized. The City Council will cause to be taken with due diligence all
further actions that are required for the construction of each Improvement Project fmanced wholly
or pardy from the pYOCeeds of the Bonds, and will take all fuYther acrions necessaYy for the final and
valid lew of the r'ssessments and the appropriation of any otheY funds needed to pay the
Improvement Project Portion of the Bonds and interest thereon when due.
b) In the event of any current or anticipated deficiency in r ssessments or the Taxes, the City
Council will levy additional ad valorem taxes in the amount of the current or anticipated deficiency.
c) The City will keep complete and accurate books and records showing: receipts and
disbursements in connection with the Improvement Project,Assessments levied therefor and other
449460v1JSB RS125-15 6
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funds appropriated for their payment, collecuons thereof and disbursements thexefrom, monies on
hand and, the balance of unpaid ssessments.
d) The City will cause its books and records to be audited at least annually and will furnish
copies of such audit reports to any interested person upon request.
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4.04. Cit r Covenants with Res ect to the Water Project. The Cim Council covenants and agrees
with the holders of the Bonds that so long as any of the Bonds xemain outstanding and unpaid, it
will keep and enforce the following covenants and agreements:
a) The City will continue to maintain and efficiendy operate the water sy stem as a public utility
and convenience free from competition of other like municipal utilities and will cause all revenues
therefrom to be deposited in bank accounts and credited to the Water Account, as hereinabove
provided, and will make no expenditures from those accounts except for a duly authorized purpose
and in accordance with this resolution.
b) The City will also maintain the Water Account of the Debt Service Fund as a separate
account and will cause money to be credited thereto from time to time, out of net revenues from
the water system and the sanitary sewer system in sums sufficient to pay principal of and inteYest on
the Water Project Portion of the Bonds when due.
c) The City will keep and maintain proper and adequate books of records and accounts
separate from all other records of the City in which will be complete and correct entries as to all
transactions Yelating to the water system and which will be open to inspection and copying by any
Bondholder, or the Bondholder's agent or attorney, at any reasonable time, and it will furnish
certified transcYipts therefYOm upon request and upon payment of a Yeasonable fee theYefor, and
said account will be audited at least annually by a qualified public accountant and statements of such
audit and report will be furnished to all Bondholders upon request.
d) The City Council will cause peYSOns handling revenues of the water system to be bonded in
reasonable amounts foY the protection of the Cit and the Bondholders and will cause the funds
collected on account of the operations of such systems to be deposited in a bank whose deposits
are guaYanteed under the Federal Deposit Insurance Law
e) The City Council will keep the water system insured at all times against loss by fire, toYnado
and other risks customarily insured against with an insurer or insurers in good standing,in such
amounts as are customary for like plants, to protect the holders, from time to time, of the Water
PYOject Portion of the Bonds and the City from any loss due to any such casualty and will apply the
proceeds of such insurance to make good any such loss.
The City and each and all of its officers will punctually perform all duties with reference to
the water system as required by law
g) The City will impose and collect charges of the nature authorized by Minnesota Statutes,
Section 444.075, at the times and in the amounts required to produce Net Revenues adequate to pay
all principal and interest when due on the Water Project Portion of the Bonds and to create and
maintain such xeserves securing said payments as may be provided in this resolution.
h) The City Council will lew general ad valorem taxes on all taxable propeYty in the City when
required to meet any deficiency in net revenues.
i) The City hereby determines that the estimated collection of Net Revenues herein pledged
foY the payment of principal and interest on the Water Project Portion of the Bonds will produce at
least 5%in excess of the amount needed to meet,when due, the principal and interest payments on
such poxtion of the Bonds.
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4.05. General Obligation Pled e. For the prompt and full payment of the principal and interest
on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the
City will be and are hereby irrevocably pledged. If the balance in the Debt Service Fund is ever
insufficient to pay all principal and interest then due on the Bonds and any other bonds payable
therefrom, the deficiency will be pYOmptly paid out of monies in the general fund of the City which
are available for such purpose, and such general fund may be reimbursed with or without interest
from the Debt SeYVice Fund when a sufficient balance is available therein.
4.06. Pledge of Tax Lev. For the purpose of paying the principal of and interest on the
Improvement Project Portion of the Bonds, there is levied a direct annual irrepealable ad valoxem
tax (the "Taxes") upon all of the taxable property in the City,which will be spread upon the tax rolls
and collected with and as part of other general taxes of the City. The Taxes will be credited to the
Debt Service Fund above provided and will be in the years and amounts as follows (year stated
being year of collection:
Year Lev
See EXHIBIT C)
4.07. Certification to Count rluditor as to Debt Service Fund Amount. It is hereby determined
that the estimated collections of Assessments, the foregoing Taxes and Net Revenues will produce
at least 5%in excess of the amount needed to meet when due the principal and interest payments
on the Bonds. The tax levy herein provided is irrepealable until all of the Bonds are paid, provided
that at the time the City makes its annual tax levies the City Finance Director may certify to the
County Auditor of Dakota County the amount available in the Debt Service Fund to pay principal
and interest due during the ensuing year, and the County Auditor will thereupon reduce the levy
collectible during such year by the amount so certified.
4.08. Countv Auditor Certificate as to Registration. The Ciry Clerk is authorized and directed to
file a certified copy of this resolution with the County rluditor of Dakota County and to obtain the
certificate required by Minnesota Statutes, Section 475.63.
Section 5. Authentication of Transcript.
5.01. Citv Proceedings and Records. The officers of the City are authorized and ditected to
prepare and furnish to the Purchaser and to the attorneys appxoving the Bonds, certified copies of
proceedings and records of the City relating to the Bonds and to the fmancial condition and affairs
of the City, and such otheY certificates, affidavits and transcripts as may be required to show the
facts within their knowledge or as shown by the books and records in their custody and under their
control, relating to the validity and marketability of the Bonds and such instruments,including any
heretofore furnished,will be deemed repYesentations 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 circulated 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 theYein as of the date of the Official Statement.
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Section 6. Tax Covenant.
6.01. 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 any of its officers, employees or agents any
action which would cause the interest on the Bonds to become subject to taxation under the Internal
Revenue Code of 1986, as amended (the "Code"), and the Treasury 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 undeY the Code and applicable Treasury Regulations, as
presendy e sting or as hexeafter amended and made applicable to the Bonds.
6.02. No Rebate Required. (a) The City will comply with requirements necessary under 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 temporary periods for
investments and limitauons 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 arbitrage rebate
requirements, the Cit finds, determines and declares that the aggregate face amount of all tax-
exempt bonds (other than private acrivit bonds) issued by the Ciry (and all subordinate enriries of
the City) during the calendar year in which the Bonds are issued is not reasonably expected to exceed
5,000,000,within the meaning of Section 148((4)(C) of the Code.
6.03. Not Private Activity Bonds. The City further covenants not to use the proceeds of the
Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the
Bonds to be "private activit5 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"within
the meaning of Section 265(b)(3) of the Code, the City makes the following factual statements and
representations:
a) the Bonds are not "private activit bonds" as defined in Section 141 of the Code;
b) the City hereby designates the Bonds as "qualified tax-exempt obligauons" for purposes of
Section 265(b)(3) of the Code;
c) the reasonably anticipated amount of tax-exempt obligations (other than private activiry
bonds, that are not qualified 501(c)(3) bonds) which will be issued byr the City (and all suboYdinate
entities of the City) during calendar year 2014 will not exceed 10,000,000;and
d) not more than 10,000,000 of obligations issued by the City during calendar year 2014 have
been designated for 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
pYOCedural requirements which may apply in order to effectuate the designations made by this
section.
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RESOLUTION 2014 -
Section 7. Book-Entr stem;Limited Obligation of Citv.
7.01. DTC. The Bonds will be ulitially issued in the form of a separate single typewritten or
printed fully registered Bond for each of the maturities set forth in Section 1.04 hereo£ Upon irutial
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 Depository Trust Company, New York,
New York, and its successoxs and assigns ("DTC"). Except as provided in this section, all of the
outstanding Bonds will be registered in the registYation books kept by the Registrar in the name of
Cede & Co., as nominee of DTC.
7.02. Partici ants. With respect to Bonds registered in the registration books kept by the Registrar
in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent will
have no responsibility or obligation to any broker dealers, banks and other financial institutions from
time to time for 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 Yesponsibility or obligation with respect to (i) the accuracv of the records of DTC,
Cede & Co. ox any Participant with respect to any ownership interest in the Bonds, (u) the delivery
to any PaYticipant or any other person (other than a registered 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 (iu) 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 Ciry, the Registrar and the Paying Agent may tteat and consider the person in
whose name each Bond is registered in the registration books kept by the Registrax as the holder and
absolute owner of such Bond for the purpose of payment of principal,premium and interest with
respect to such Bond, for the purpose of registering transfers with respect to such Bonds, and foY all
other purposes. The Paying Agent will pa` all principal of, premium,if any, and interest on the
Bonds only to or on the order of the respective registered owners, as shown in the registration
books kept by the Registrar, and all such payments will be valid and effectual to fully satisfy and
dischaYge the City's obligations with respect to pay ment 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 registration books kept by the Registrar,will receive a certificated Bond
evidencing the obligation of this resolution. L?pon 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 woxds "Cede & Co.,"will refer to such new nominee of DTC; and upon receipt of such a
notice, the City Clerk will promptly delivex a cop of the same to the Registrar and Paying rlgent.
7.03. Re resentation Letter. The City has heretofore executed and delivered to DTC a Blanket
Issuer Letter of Representations (the "Repxesentation Letter") which will govern payment of
principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any
Paying r gent or Registrar subsequendy appointed by the City with respect to the Bonds will agree to
take all action necessary for all representarions of the City in the Representarion Letter with respect
to the Registxar 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 interests of the persons having beneficial interests in the
Bonds that they be able to obtain Bond certificates, the Cit will notify-DTC,whereupon DTC will
notify the Participants, of the availability through DTC of Bond certificates. In such event the City
will issue, transfer and exchange Bond certificates as requested by DTC and any other registered
owners in accoxdance 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
449460v1 JSB RS125-15 11
RESOLUTION 2014 -
discharging its responsibiliries with respect thereto undeY applicable law In such event,if no
successoY securiues depository is appointed, the City will issue and the Registrar will authenticate
Bond certificates in accordance 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. Notwithstanding any other provision of this Resolution to the
contrary, so long as a Bond is Yegistered 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, respecrively in the mannex provided in DTC's Operational
Arrangements as set forth in the Representation Letter.
Section 8. Continuing Disclosure.
8.01. Ci , Com liance with Provisions of Continuing Disclosure Certificate. The City hereby
covenants and agrees that it will compl5 with and carry out all of the provisions of the Continuing
DisclosuYe Certificate. Notwithstanding any otheY provision of this Resolution, failure of the City
to comply with the Continuing Disclosure Certificate will not be considered an event of default with
respect to the Bonds; however, any bondholder 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.
8.02. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate" means
that certain Continuing Disclosure Certificate executed by the Mayor and City Clerk and dated the
date of issuance and deliver of the Bonds, as originally executed and as it may be amended from
time to time in accoYdance with the terms thereof.
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 other rights granted by this resolution to the holders of the
Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and
full payment of the principal of and interest on the Bonds will remain in full force and effect. The
City may discharge all Bonds which are due on any date by depositing with the Registrar on or
before that date a sum sufficient fox 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 thereof in full with interest accrued to the date of such deposit.
The remainder of this page is intentionally left blank.)
449460v1 JSB RS125-15 12
RESOLUTION 2014 -
ADOPTED this 16th day of September, 2014, by the City Council of the City of Rosemount.
William H. Droste, Mayor
ATTEST:
Clarissa Hadler, City Clerk
449460v1JSB RS125-15 13
RESOLUTION 2014 -
CERTIFICATE
STATE OF MINNESOTA
COUNTY OF DAKOTA ss
CITY OF ROSEMOUNT
I am the duly appointed, acting and qualified City Clerk of the City of Rosemount, Dakota County,
Minnesota do hereby certify that I have examined the City of Rosemount records and the Minute
Book of said City for the meeting of the 16th of September, 2014 and that the attached copy of the
Resolution 2014- A RESOLUTION 1 W IRDING THE Sr1LE OF $2,400,000 GENERAL
OBLIG TION BONDS, SERIES 2014r1;ND PROVIDING FOR THEIR ISSUr NCE 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 City this day of
2014.
Cit Clerk
Ciry of Rosemount
Dakota County-, Minnesota
449460v1 JSB RS125-15 14
STATE OF MINNESOTA COUNTY r,UDITOR'S
CERTIFICATE AS TO TAX LEVY
COUNTY OF Dr,KOTr AND REGISTRATION
I, the undersigned County l uditor of Dakota County, Minnesota, hereby certify that a resolution
adopted by the Cit Council of the Citt of Rosemount, Minnesota, on September 16, 2014, levying
taxes for the payment of General Obligation Bonds, SeYies 2014A,in the amount of$2,400,000
dated the date of delivery,has been filed in my office and said obligarions have been registered on
the register of obligations in my office and that such tax has been levied as required by law.
WITNESS My hand and official seal this day of 2014.
Count 1 uditor
Dakota County, Minnesota
SEAL)
Deputy
449460v1 JSB RS125-15
EXHIBIT A
FORM OF BOND
No. R- L NITED S'Tr1TES OF r MERICr1
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF ROSEMOUNT
GENERr1L OBLIGATION BOND, SERIES 2014A
Date of
Rate Maturi OriginalIssue CUSIP
20_ OctobeY_, 2014
Registered Owner: Cede & Co.
The Ciry of Rosemount, Minnesota, a duly organized and e sting municipal corporation in Dakota
County, Minnesota (the "City"), acknowledges itself to be indebted and for value received promises
to pay to the Registered Owner specified above, or registered assigns, the principal sum set forth
above on the maturity date specified above,with interest thereon fYOm the date hereof at the annual
rate specified above, payable February 1 and r,ugust 1 in each yeaY, commencing rlugust 1, 2015, to
the person in whose name this Bond is registered at the close of business on the fifteenth day
whether or not a business day) of the immediately preceding month. The interest hereon and,
upon presentation and surrender hereof, the principal hereof aYe payable in lawful money of the
Lnited States of America by check or draft by U.S. Bank National r ssociarion, St. Paul, Minnesota,
as RegistraY, Paying rlgent,Transfer r gent and r uthenticating Agent, or its designated successor
under the Resolution described herein. For the prompt and full payment of such principal and
interest as the same respectively become due, the fizll faith and credit and ta ng powers of the City
have been and are hereby irrevocably pledged.
The City may elect on FebYUary 1, 2023, and on any day thereafter to prepay Bonds due on or after
February 1, 2024. Redemption ma r be in whole ox in part and if in part, at the option of the City
and in such manneY as the City will determine. If less than all Bonds of a maturity are called for
redemption, the City will norify The Depository Trust Company ("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. Prepayments will be at a price of par plus accrued
interest.
This Bond is one of an issue in the aggregate principal amount of $2,400,000 all of like original
issue date and tenor, except as to number, denominarion, maturity date, and interest rate, all issued
pursuant to a resolution adopted by the City Council on September 16, 2014 (the "Resolution"), fox
the purpose of providing money to fmance various street infrastructure and water utility
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, 444 and 475, and the
A-1
449460v1JSB RS125-15
principal hereof and interest hereon are payable in part from special assessments against property
specially benefited by local improvements, net revenues of the water utility and from ad valorem
taxes, as set forth in the Resolution to which reference is made for a full statement of rights and
powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment
of this Bond and the City Council has obligated itself to levy ad valoYem taxes on all taxable
property in the City in the event of any deficiency in taxes, special assessments, and net revenues
pledged,which taxes may be levied without limitation as to rate oY amount The Bonds of this
series are issued only as fully registered 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 Cit at the principal office of the Registrar, by the registered
owner hereof in person or by the owner's attorney duly authorized in writing,upon surrender
hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by
the registered owner or the owner's attorney;and may also be surYendered in exchange for Bonds of
other authorized denominarions. Upon such transfer or exchange the Cit 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 interest at the same rate and maturing on the same date, subject to
Yeimbursement for any tax, fee oY governmental charge Yequired to be paid with respect to such
transfer or exchange.
The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified
tax e:cempt obligations"within the meaning of Section 265(b)(3) of the Internal Revenue Code of
198G, 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 owner hereof,whether this Bond is overdue or not, for the purpose of receiving
payment and for all other purposes, and neither the Ciry nor the Registrar will be affected by any
notice to the contraYV.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the Constitution and laws of the State of Minnesota to be done,
to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to
make it a valid and binding geneYal obligation of the City in accordance with its terms, have been
done, do e st, 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 consriturional, or statutory
limitation of indebtedness.
This Bond is not valid or obligatory for any purpose or entided to any security or benefit under the
Resolution until the Certificate of uthentication hereon has been executed by the Registrar by
manual signature of one of its authorized representatives.
A-2
449460v1 JSB RS125-15
IN WITNESS WHEREOF, the City of Rosemount, Dakota Count, Minnesota, by its City Council,
has caused this Bond to be executed on its behalf by the facsunile or manual signatures of the
Mayor and City Clerk and has caused this Bond to be dated as of the date set forth below
Dated: 2014
CITY OF ROSEMOUNT, MINNESOTA
Facsimile) Facsimile)
City Clerk Mayor
CERTIFICATE OF r,UTHENTICr,TION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S. Br1NK Nr TIONr,L ASSOCIATION
Bv
uthorized Representative
The following 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 or regulations:
TEN COM -- as tenants UNIF GIFT MIN r CT Custodian
in common Cust)I Zinor)
TEN ENT -- as tenants under Uniform Gifts or
by entireties Transfers to Minors
Act . . . . . . . . . . . .
JT TEN -- as joint tenants with
right of survivorship and
not as tenants in common State)
r,dditional abbreviations may also be used though not in the above list.
A-3
449460v1 JSB RS125-15
r1SSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and all rights thereunder, and
does hereby irrevocably constitute and appoint attorney to transfer
the said Bond on the books kept for registration of the within Bond,with full power of substitution
in the premises.
Dated:
Notice: The assignor's signature to this assignment must correspond with the name as it
appears upon the face of the within Bond in every parucular,without alteration or
an change whatever.
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a financial instituuon that is a member of the
Securities Transfer Agent Medallion Program ("STr MP"), the Stock Exchange Medallion Program
SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other
such "signature guarantee program" as may be determined by the Registrar in addition to, or in
substitution for, STr I 1P, SEMP or 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 rlddress:
Include information for all joint owners if this Bond
is held bv joint account.)
Please insert social security or other
identifying number of assignee
A-4
449460v1 JSB RS125-IS
PROVISIONS AS TO REGISTRr TION
The ownership of the principal of and interest on the within Bond has been xegistered on the books
of the Registrar in the name of the person last noted below
Date of Registration Registexed Owner Signature of Registrar
Cede & Co.
Federal ID #13-2555119
A-5
449460v1JS6 RS125-15
EXHIBIT B
PROPOSALS
B-1
449460v1JSB RS125-15
EXHIBIT C
TAX LEVY
Gl
449460v1JSB RS125-15
MOODY'S
INVESTORS SERVICE
New Issue: Moody's assigns Aa2 to Rosemount, MN's $2.4M GO Bonds Ser.
2014A
Global Credit Research-11 Sep 2014
Affects$17.5M including current offering
ROSEMOUNT(CITY OF)MN
Cities (including Towns,Villages and Townships)
MN
Mood s Rating
ISSUE RATING
General Obligation Bonds, Series 2014A Aa2
Sale Amount 2,400,000
Expected Sale Date 09/19/14
Rating Description General Obligation
Moody's Outlook NOO
Opinion
NEW YORK, September 11,2014--Moody's Investors Service has assigned a Aa2 rating to the City of
Rosemount, MN's$2.4 million General Obligation Bonds, Series 2014A. Proceeds of the bonds will finance
infrastructure improvements projects. Concurrently, Moody's has affirmed the Aa2 rating on the city's outstanding
general obligation debt.The bonds are secured by the city's general obligation unlimited tax pledge and proceeds
will finance street and infrastructure improvements. Post-sale,the city will have$17.5 million of general obligation
unlimited tax debt.
SUMMARY RATING RATIONALE
The Aa2 rating reflects the city's moderately-sized and concentrated tax base that is favorably located in the
southern Twin Cities metropolitan area;strong financial management team that has guided the city's favorable
financial operations and maintenance of ample reserves; and a modestly sized debt and pension burden.
STRENGTHS
Strong management practices, healthy General Fund reserves and substantial alternate liquidity
Availability of land for future development
Low debt burden
CHALLENGES
Tax base exhibits concentration,with oil refinery comprising 12.8%of assessed valuation
Tax base size is below national median for the rating category
DETAILED CREDIT DISCUSSION
CONCENTRATED TAX BASE FAVORABLY LOCATED IN TWIN CITIES METROPOLITAN AREA; RECENT
INCREASES IN TAX BASE VALUATIONS
We expect RosemounYs tax base will remain stable given its favorable location in the Twin Cities area and the
presence of ongoing residential and industrial development. Located in northern Dakota County(GO rated
Aaa/stable)in the southern suburbs of the Twin Cities metropolitan area,the city experienced rapid growth over
the past several decades, both in terms of population and full value.The city's population increased from 1,300 in
1970 to 21,800 in 2010, and estimates for the city's 2013 population of 22,711 indicate that the growth trend is
continuing.The city's full valuation growth was rapid in prior years,with the city's moderately sized tax base
currently$2.3 billion in full valuation)experiencing annual double digit annual growth through 2007,driven by both
construction and appreciation of residential property. However,during the national economic downturn,
development slowed and the residential property market softened.As a result,the city's full valuation declined
annually from 2008 through 2011. Favorably,the city's tax base has begun to stabilize with a 1.5%increase in
2012 and an additional 5.6%increase in 2013.Officials expect continued growth in valuations given new
development as well as an increase in the city's median home values.
RosemounYs tax base is concentrated,with an oil refinery owned by Flint Hills Resources, LLC(long-term rated
A1/stable)representing 12.8%of the ciry's assessed valuation in 2013.We note the presence of credit risk
associated with this degree of dependence on a single taxpayer. However,the refinery has operated in
Rosemount since 1955, and its oil producing capacity has since grown significantly.The plant is Minnesota's
largest source of gasoline for vehicular transportation and jet fuel for aircraft at the Minneapolis-St. Paul airport and
has approximately 1,100 employees.The company is undergoing a substantial multi-year$400 million facility
upgrade to increase efficiency .The plant's important role in the state's economy and the parent company's
continued investment in the plant demonstrate its relative stability as a taxpayer.
Development within the ciry has been ongoing,though at a slower pace prior to the recession.The city issued 96
single family building permits in 2013 compared to 53 in 2011.The city has substantial land available for new
development.The University of Minnesota(revenue rated Aa1/stable outlook)has a strong presence in
Rosemount,and owns a 3,200 acre parcel of land located in the city.While the parcel currently is devoted to
agricultural research, it also is one of the largest remaining sand and gravel sources in close proximity to the metro
area and the University has received the required permits to begin mining. Based on current plans,affirmed by the
University's Board of Regents in December 2006,the university expects to use the proceeds of the gravel mining
operation as start-up funds to begin developing a large environmentally sustainable mixed-use community on the
site.The timing of the project is yet to be determined.
At 4.3%in June 2014, Dakota County's unemployment rate was slightly lower than the state's rate of 4.6%and
well below the national rate of 6.3%for the same time period.The city's resident income levels are strong,with
median family income at 146%of the nation according to 2012 estimates from the American Community Survey.
WELL-MANAGED FINANCIAL OPERATIONS WITH AMPLE RESERVES
We expect the city's finances to continue to be healthy,given its strong management team, and the presence of
ample General Fund and other available sources of liquidity.The city's formal General Fund balance policy calls
for the maintenance of a General Fund unassigned balance at a maximum of 55%of the subsequent year's
budgeted General Fund expenditures.Amounts in excess of policy are typically transferred to the city's various
capital improvement projects funds or assigned for other one-time purposes.The city has a history of budgeting
conservatively, including a practice of budgeting zero for commercial and industrial permit revenues and for
collections of delinquent taxes.The city's conservative revenue-side budgeting,combined with maintenance of
essentially flat operating expenditures over the last four audited fiscal years, has grown its General Fund reserves
over time.As a result,the total General Fund balance increased to$8.4 million,or a strong 77.8%of revenues in
fiscal 2013 compared to$7 million,or 64.5%in fiscal 2008.The city adopted a balanced budget for fiscal 2014 and
notes that revenues are tracking above budget while expenditures are on target.The city is in the process of
developing its fiscal 2015 budget and balanced operations are expected.
The city's primary operating revenue source is property taxes,which represented 69%of General Fund revenues
in fiscal 2013,followed by charges for services (9.6%),and licenses and permits (4.9%).The city does not receive
Local Government Aid(LGA), insulating it from the state's cuts to LGA in recent years.The city also has alternate
liquidity available in its Building CIP, Streets CIP,and Equipment CIP capital projects funds. Collectively,the funds
held$6.4 million of cash at the end of fiscal 2013,which is available for operational contingencies with council
approval.
MANAGEABLE DEBT BURDEN WITH LIMITED FUTURE BORROWING PLANS
We expect the city's debt burden to remain manageable given limited future borrowing needs.At 0.8%and 1.7%of
full valuation,the city's direct and overall debt burdens compare favorably to state and national medians. Principal
amortization is sound with 79.9%of all debt retired in ten years.The city may issue$1 million to$2 million of bonds
for water utility improvements in 2015.All of the city's debt is in fixed rate mode,and the city is not a party to any
interest rate swap agreements.
The city has an above average employee pension burden,based on unfunded liabilities for its share of two
multiple-employer plans administered by the state and one single employer plan that it administers independently.
For analytic purposes, Moody's has allocated liabilities of state cost-sharing plans in proportion to the city's
contributions to each plan.
Moody's adjusted net pension liability(ANPL)for the city as of fiscal 2013 related to the statewide Government
Employees Retirement Fund(GERF)and Public Employees Police and Fire Fund(PEPFF),and the city's single
employer plan,the Rosemount Fire Department Relief Association Pension Plan, under our methodology for
adjusting reported pension data, is$20.5 million,or 1.73 times operating revenues and 0.96%of full value. Moody's
ANPL reflects certain adjustments we make to improve the comparability of reported pension liabilities.The
adjustments are not intended to replace the city's reported liability information, but to improve comparability with
other rated entities.
WHAT WOULD CHANGE THE RATING UP
Substantial growth and diversification of the city's tax base
Maintenance of healthy reserves and liquidity
WHAT WOULD CHANGE THE RATING DOWN:
Significant erosion of the ciry's tax base
Material deterioration in General Fund reserves to a level inconsistent with similarly rated credits
KEY STATISTICS
2013 Full valuation:$2.3 billion(1.6%average annual decrease since 2009)
Estimated full value per capita:$104,454
2012 American Community Survey median family income as a%of the state: 146%
Fiscal 2013 Available Operating Fund balance:$8.3 million(65.8%of revenues)
Five-year pollar Change in Operating Fund balance as a percent of revenues: 14.3%
Fiscal 2013 Net Operating cash balance: $8.2 million(65%)
Five-year Change in Cash Balance as a percent of revenues:9.5°/a
Institutional Framework:Aa
Operating History(Five-year average of operating revenues/operating expenditures): 0.99 times
Net Direct Debt/Full Value:0.77%
Net Direct Debt/Operating Revenues: 1.39 times
Three-year Average of Moody's AN PUFuII Value: 0.96%
Three year Average of Moody's ANPUOperating Revenues: 1.73 times
The principal methodology used in this rating was US Local Government General Obligation Debt published in
January 2014. Please see the Credit Policy page on www.moodys.com for a copy of this methodology.
REGULATORY DISCLOSURES
For ratings issued on a program, series or category/class of debt,this announcement provides certain regulatory
disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class
of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance
with Moody's rating practices. For ratings issued on a support provider,this announcement provides certain
regulatory disclosures in relation to the rating action on the support provider and in relation to each particular rating
action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings,
this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in
relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where
the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner
that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for
the respective issuer on www.moodys.com.
Regulatory disclosures contained in this press release apply to the credit rating and, if applicable,the related rating
outlook or rating review.
Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal
entity that has issued the rating.
Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for
each credit rating.
Malysts
Soo Yun Chun
Lead Analyst
Public Finance Group
Moody's Investors Service
Kathryn Gregory
Additional Contact
Public Finance Group
Moody's Investors Service
Contacts
Journalists: (212)553-0376
Research Clients: (212)553-1653
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
USA
MOODY'S
INVESTORS SERVICE
O 2014 Moody's Corporation, Moody's Investors Service, Inc., Moody's Analytics, Inc.and/or their licensors and
affiliates (collectively,"MOODY'S").All rights reserved.
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* Preliminary; subject to change.
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PRELIMINARY OFFICIAL STATEMENT D ATED AUGSUT 28 , 201 4
N EW ISSUE Moody’s Rating: Requested
BANK QUALIFIED
In the opinion of Kennedy & Graven, Chartered, Bond Counsel for the Bonds, based on present federal and Minnesota laws, regul ations, rulings and decisions (which exclude s any
pending legislation which may have a retroactive effect), and assuming compliance with certain covenants, interest to be paid on the Bond s is excluded from gross income for federal
income tax purposes and, to the same extent, from taxable net income o f individuals, estates and trusts for Minnesota income purposes, and is not a preference item for purposes of
computing the federal alternative minimum tax or the Minnesota alternative minimum tax imposed on individuals, trusts, and es tates. 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 an d is subject to Minnesota franchise taxes on corporations
(including financial institutions) m easured by income. No opinion will be expressed by Kennedy & Graven regarding other state or federal tax consequences caused by the receipt or
accrual of interest on the Bond s or arising with respect to ownership of the Bond s . The Bond s will be designated as "qualified tax -exempt Bond s" 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 federa l income tax purposes, interest expense that is allocable to
carrying and acquiring tax -exempt Bond s. See "TAX EXEMPTION" and "OTHER FEDERAL AND STATE TAX CONSIDERATIONS" herein.
$2,400,000 * City of Rosemount , Minnesota
General Obligation Bonds, Series 2014A
(Book Entry Only)
Dated Date: Date of Delivery Interest Due: Each February 1 and August 1 ,
commencing August 1 , 2015 The Bonds will mature February 1 in the years and amounts* as follows:
2016 $380,000
2017 $395,000
2018 $395,000
2019 $400,000
2020 $410,000
2021 $ 80,000
2022 $80,000
2023 $85,000
2024 $85,000
2025 $90,000
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 scheduled to conform to the maturity schedule set forth above. The City may elect on February 1, 2023 , and on any day thereafter, to prepay the Bonds due on or after
February 1, 2024 at a pri ce of par plus accrued interest
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
and net revenues of the City’s water utility fund for repayment of the Bonds . The proceeds will be used to
finance infrastructure improvement projects in various areas of the City .
Proposals shall be for not less than $2,373,600 plus accrued interest , if any, on the total principal amount of the
Bonds . Proposals shall specify rates in integral mu ltiples of 1 /100 or 1/8 of 1%. The initial price to the public for
each maturity must be 98.0% or greater. Proposals must be accompanied by a good faith deposit in the amount of
$24,000 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 made 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 alternat ive minimum tax for
indiv iduals .
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 . Individua l 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, St. Paul, Minnesota
will serve as registrar (the “Registrar”) for the Bonds . The Bonds will be available for delivery at DTC on or
about October 16, 2014 .
PROPOSALS RECEIVED: September 16, 201 4 (Tuesday) until 10 :30 A.M., Central Time AWARD: September 16 , 201 4 (Tuesday ) at 7 :00 P.M., Central Time
Further information may be obtained from SPRINGSTED Incorporated,
Municipal Advisor to the City , 380 Jackson Street, Suite 300, Saint Paul,
Minnesota 55101 -2887 (651) 223 -3000.
CITY OF ROSEMOUNT , MINNESOTA
CITY COUNCIL
Bill Droste Mayor
Mark DeBettignies Councilmember
Vanessa Demuth Councilmember
Kim Shoe -Corrigan Councilmember
Jeff Weisensel Councilmember
CITY ADMINISTRATOR
Dwight Johnson
FINANCE DIRECTOR
Jeff May
CITY CLERK
Clarissa Hadler
MUNICIPAL ADVISOR
Springsted Incorporated
St. Paul, Minnesota
BOND COUNSEL
Kennedy & Graven, Chartered
Minneapolis, Minnesota
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 City from time to time, may be treated as
a Pre liminary Official Statement with respect to the Bond s described herein that is deemed final as of the
date hereof (or of any such supplement or correction) by the City .
By awarding the Bond s to any underwriter or underwriting syndicate submitting a Propos al 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 Bond s are awarded copies of the
Final Official Statement in the amount specified in the Terms of Proposal.
No dealer, broker, salesman or other person has been authorized by the City to give any information or to
make any representations with respect to the Bond s, other than as contained in the Preliminary 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 City .
Certain information contained in the Preliminary Official Statement or th e Final Official Statement may
have been obtained from sources other than records of the City and, while believed to be reliable, is not
guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS OF OPINION
IN THE PRELIMINARY OFFICIAL STAT EMENT AND THE FINAL OFFICIAL STATEMENT ARE
SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE PRELIMINARY OFFICIAL
STATEMENT N OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER
EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO
C HANGE IN THE AFFAIRS OF THE CITY SINCE THE RESPECTIVE 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 have not been included as appendices to the
Preliminary Official Statemen t or the Final Official Statement, they will be furnished up on request.
Any CUSIP numbers for the Bond s included in the Final Official Statement are provided for convenience
of the owners and prospective investors. The CU SIP numbers for the Bond s are ass igned by an
organization unaffiliated with the City . The City is not responsible for the selection of the CUSIP
numbers and makes no representation as to the accuracy thereof as printed on the Bond s or as set forth in
the Final Official Statement. No ass urance can be given by the City that the CUSIP numbers for the
Bond s will remain the same after the delivery of the Final Official Statement or the date of issuance and
delivery of the Bond s.
TABLE OF CONTENTS
Page(s)
Terms of Proposal .............................................................................................................................. i -v
Introductory Statement ....................................................................................................................... 1
Continuing Disclosure ....................................................................................................................... 1
The B onds .......................................................................................................................................... 2
Authority and Purpose ....................................................................................................................... 4
Sources and Uses of Funds ................................................................................................................ 4
Security and Financing ...................................................................................................................... 5
Future Financing ................................................................................................................................ 5
Litigation ............................................................................................................................................ 5
Legality .............................................................................................................................................. 5
Tax Exemption ................................................................................................................................... 6
Other Federal and State Tax Considerations ...................................................................................... 6
Bank -Qualified Tax -Exempt Obligations .......................................................................................... 7
Rating ................................................................................................................................................. 7
Municipal Advisor ............................................................................................................................. 8
Certification ....................................................................................................................................... 8
City Property Values .......................................................................................................................... 9
City Indebtedness ............................................................................................................................... 10
City Tax Rates, Levies and Collections ............................................................................................. 13
Funds on Hand ................................................................................................................................... 14
Investments ........................................................................................................................................ 14
General Information Concerning the City ......................................................................................... 15
Governmental Organization and Services .......................................................................................... 21
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
Exce r p t of 2013 Comprehensive Annual Financial Report .................................................... Appendix IV
________________________________
* Preliminary; subject to change.
- i -
THE CITY HAS AUTHORI ZED SPRINGSTED INCOR PORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RE CEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$2,400,000* CITY OF ROSEMOUNT, M INNESOTA GENERAL OBLIGATION B ONDS, 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 Counci l 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
Springs ted. 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) 2 23 -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 constit ute the
official time with respect to all proposals submitted to PARITY ®. Each bidder shall be solely responsible
for making necessary arrangements to access PARITY ® for purposes of submitting its electronic proposal
in a timely manner and in compliance w ith 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 bi dder, 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 prov ided by PARITY ®, this Terms
of proposal shall control. Further information about PARITY ®, including any fee charged, may be
obtained from:
PARITY ®, 1359 Broadway, 2 nd Floor, New York, New York 10018
Customer Support: (212) 849 -5000
- ii -
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
2017 $395,000
2018 $395,000
2019 $400,000
2020 $410,000
2021 $ 80,000
2022 $80,000
2023 $85,000
2024 $85,000
2025 $90,000
* 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 amount of any maturity in multiples of $5,000. In the event the amount of any
maturity is modified, the aggregate purchase price will be adjusted to result in the same gross spread per
$1,000 of Bonds as that of the original proposal. Gross spread is the differential between the price paid to the
City for the new issue and the prices at which the securities are initially offered 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 iss ued 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 a s 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 a nd 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 beneficia l 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 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 matu rity 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.
- iii -
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 wil l 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 fo r 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 adjo urned, 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 deli vered 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 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 un successful bidder
will be returned to such bidder following City action relative to an award of the Bonds.
If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond
in the State of Minnesota and pre -approved by the City. Such bond must be submitted to Springsted
Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each
underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an
underwriter using a Financial Surety Bond, then that underwriter is required to submit its Deposit to the
City in the form of a certified or cashier’s check or wire transfer as instructed by Springsted Incorporated
not later than 3:30 P.M., Central Time o n 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.
- iv -
The Deposit received from the purchaser, the amount of which will be deducte d 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 calculated on the proposal prior to any adjustment made by the City. The City's computation
of the interest rate of each proposal, in accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non -substantive informalities of any proposal or of matters
relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and
(iii) reject any proposal that the City determines to have failed to comply with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
The City has not applied for or pre -approved a commitment for any policy of municipal bond insurance
with respect to the Bonds. If the Bonds qualify for municipal bond insurance and a bidder desires to
purchase a policy, such indication, the maturities to be insured, and the name of the desired insurer must
be set forth on the bidder’s proposal . The City specifically reserves the right to reject any bid specifying
municipal bond insurance, even though such bid may result in the lowest TIC to the City. All costs
associated with the issuance and administration of such policy and associated ratin gs and expenses (other
than any independent rating requested by the City) shall be paid by the successful bidder. Failure of the
municipal bond insurer to issue the policy after the award of the Bonds shall not constitute cause for
failure or refusal by t he successful bidder to accept delivery of the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but
neither the failure to print such numbers on any Bond nor any error with respect there to 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
O n 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 cus tomary 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,
Cent ral 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
unde rtaking is set forth in the Official Statement. The purchaser's obligation to purchase the Bonds will
be conditioned upon receiving evidence of this undertaking at or prior to delivery of the Bonds.
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OFFICIAL STATEMENT
The City has authorized the prepa ration 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 Com mission. 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, Minn esota 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 th e 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
/s/ Clarissa Hadler
City Clerk
____________________________
* Preliminary; subject to change.
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OFFICIAL STATEMENT
$2,400,000 *
CITY OF ROSEMOUNT , MINNESOTA
GENERAL OBLIGATION BONDS , SERIES 2014A
(BOOK ENTRY ONLY)
INTRODUCTORY STATEME NT
This Official Statement contains certain information relating to the City of Rosemount , Minnesota (the
“City ”) and its issuance of $2,400 ,000 * G eneral Obligation Bonds , Series 2014A (the “Bonds ”). The
Bonds are general obligations of the City for which it pled ges 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 for repayment of the Bonds .
Inquiries may be directed to Mr. Jeff May, Finance Director, City of Rosemount, 2875 145 th Street West,
Rosemount, Minnesota 55068 -4997 , by telephoning (651 ) 423 4411, or by e -mailing
jeff.may@ci.rosemount.mn.us . Inquiries may also be made to Springsted Incorporated, 380 Jackson
Street , Suite 3 00, St. Paul, Minnesota 55101 -2887, by telephoning (651) 223 -3000 , or by e -mailin g
bond _services@springsted.com .
CONTINUING DISCLOSUR E
In order to assist the Underwriters in complying with SEC Rule 15c2 -12 (the “Rule”), pursuant to the
Awarding Resolution, the City have covenanted to comply with the continuing disclosure undertaking (the
“Undertaking”) for the benefit of holders or benefi cial owners of the Bond s 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 Munici pal Securities
Rulemaking Board and to any state information depository. The specific nature of the Undertaking, as well
as the information to be contained in the annual report or the notices of material events, is set forth in the
Undertaking in substant ially 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
Bond s from the City , and (iii) acceptable to the Mayor and Clerk of the City .
To the best of its knowledge , the City has complied in the past five years in material respects with all
previous undertakings entered into pursuant to the Rule. A failure by the City to comply with the
Undertaking will not constit ute an event of default on the Bond s (although holders or other beneficial
owners of the Bond s will have the sole remedy of bringing an action for specific performance).
Nevertheless, such a failure 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 Bond s in the
secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the
Bond s and their market price.
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THE BONDS
General Description
The Bonds are dated as of the date of delivery and will mature annually on February 1 as set forth on the
front cover of this Official Statement. The Bonds are issued in book entry form. Interest on the Bonds is
payable on February 1 and August 1 of each year, commencing August 1 , 20 15 . 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.” U.S. Bank National Association,
St. Paul, Minnesota will serve as R egistrar for the Bonds , and the City will pay for registrar services .
Redemption Provisions
Thirty days’ written notice of redemption shall be given to the registered owner(s) of the Bond s. Failure
to give such written notice to any registered owner of the Bond s or any defect therein shall not affect the
validity of any proceedings for the redemption of the Bond s. All Bond s or portions thereof called for
redemption will cease to bear interest after the specified redemption date, provided funds for thei r
redemption are on deposit at the place of payment.
O ptional Redemption
The City may elect on February 1, 20 23 , and on any day thereafter, to prepay the Bond s due on or after
February 1, 20 24 . 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 the Bond s 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.
Book Entry System
The Depository Trust Company (“DTC”), New York, New York , will act as securities depository for the
Bond s. The Bond s 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 Bond s, 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 “b anking
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 over 3.5 million issues of U.S. and non -U.S. equity
issues, corporate and municipal debt issues, and money market instruments (from over 100 countries)that
D TC’s 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 an d pledges between Direct Participants’ accounts.
This eliminates the need for physical movement of securities certificates. Direct Participants include both
U.S. and non -U.S. 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 a re registered clearing agencies.
DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to
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others such as both U.S. and non -U.S. securities brokers and dealers, banks, trust companies and clearing
corporation s that clear through or maintain a custodial relationship with a Direct Participant, either
directly or indirectly (“Indirect Participants”). DTC has a Standard & Poor’s rating of AA+. The DTC
Rules applicable to its Participants are on file with the Sec urities and Exchange Commission. More
information about DTC can be found at www.dtcc.com .
Purchases of Bond s under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Bond s on DTC’s records. The ownership interest of each actual purchaser of each
Bond (“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 pu rchase. 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 in to the transaction. Transfers of ownership interests in the Bond s 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 Bond s, except
in the event that use of the book -entry system for the Bond s is discontinued.
To facilitate subsequent transfers, all Bond s deposited by Direct Participants with DTC are registered in
the name of DTC’s partne rship nominee, Cede & Co., or such other name as may be requested by an
authorized representative of DTC. The deposit of Bond s with DTC and their registration in the name of
Cede & Co. or such other DTC nominee do not effect any change in beneficial owner ship. DTC has no
knowledge of the actual Beneficial Owners of the Bond s; DTC’s records reflect only the identity of the
Direct Participants to whose accounts such Bond s 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 Participa nts 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 Bond s may wish to take certain steps to augment the
transmission to them of notices of significant events with respect to the Bond s, such as redemptions,
tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of
the B ond s may wish to ascertain that the nominee holding the Bond s 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 reques t that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bond s within a maturity are being
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participan t in
such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the
Bond s unless authorized by a Direct Participant in accordance with DTC’s MMI procedures. Under its
usual procedures, DTC ma ils an Omnibus Proxy to the City 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 Bond s are credited on the record date (identified in a listin g attached to the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Bond s 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 Parti cipants’ accounts upon DTC’s receipt of funds and corresponding detail information
from the City 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 go verned 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 or the City ,
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 other nominee as may
be requested by an authorized representative of DTC) is th e responsibility of the City or its agent ,
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d isbursement 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.
D TC may discontinue providing its services as depository with respect to the Bond s at any time by giving
reasonable notice to City or its agent. Under such circumstances, in the event that a successor depository
is not obtained, certificates are required t o be printed and delivered.
The City 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 City believes to be reliable, but the City takes no responsibility for the accuracy thereof.
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 , 444 , and 475 . The proceeds of
the Bonds, along with available City funds, will be used to finance infrastructure improvement projects in
various areas of the City .
SOURCES AND USES OF FUNDS
For purposes of this Official Statement, the composition of the Bonds has been broken out by the source
of payment for each portion of the Bonds . The Bonds consist of:
the portion of the Bonds bein g pledged by special assessments (the “Improvement Portion”); and
the portion of the Bonds being pledged by net revenues from the City ’s water utility fund (the
“Water Portion”).
The composition of the Bonds is estimated to be as follows:
Improvement Water
Portion Portion Total
Sources of Funds:
Principal Amount $1,820,000 $580,000 $2,400,000
Available City Funds 3,100,657 0 3,100,657
Total Sources of Funds $4,920,657 $580,000 $5,500,657
Uses of Funds:
Deposit for Project Fund $4,8 71,772 $564,014 $5,435,786
Costs of Issuance 28,865 9,606 38,471
Allowance for Discount Bidding 20,020 6,380 26,400
Total Uses of Funds $4,920,657 $580,000 $5,500,657
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SECURITY AND FINANCI NG
The Bonds will be 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 for the repayment of the Improvement Portion of the Bonds and net revenues
of the City ’s water utility fund for repayment of the Water Portion of the Bonds.
Special assessments in the principal amount of approximately $1,819,231 are expected to be filed in 2014
for first c ollection in 2015 for the Improvement Portion of the Bonds . Assessments will be filed over
term s of five and ten years with level annual payments of principal and interest. Interest on the unpaid
balance will be charged at an interest rate estimated to be 4.00 %.
Pursuant to Minnesota Statutes, Chapter 444, and the resolution awarding the sale of the Bonds , the City
will covenant to impose and collect charges for the service, use, availability and connection to the water
utility to produce net revenues in amounts sufficient to support the operation of the water utility and to
pay 105% of debt service on bonds to which it has pledged its water utility revenues, including the Water
Portion of the Bonds . 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 such rates and charges as necessary. The
City does not anticipate the need to levy taxes for repayment of the Water Portion of the Bonds .
The City will have the ability levy taxes for repayment of a portion of the Improvement Portion of the
Bonds, and may make its first levy in 2014 for collection in 2015 . Each year’s collection of taxes , special
assessments , and n et revenues , if collected in full, will be sufficient to pay 105% of the interest payment
due August 1 of the collection year and the principal and interest payment due February 1 of the
following year.
FUTURE FINANCING
The City does not anticipate issuing any additional long -term general obl igation 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 w ill express no opinion with respect thereto. A legal opinion in
substantially the form set out in Appendix I herein will be delivered at closing.
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TAX EXEMPTION
At closing Kennedy & Graven, Chartered, of Minneapolis, Minnesota, Bond Counsel for the Bond s , 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 ma y have a retroactive effect), the interest on the Bond s is excluded from gross income
for purposes of United States income tax and is excluded, to the same extent, from taxable net income of
individuals, estates and trusts for Minnesota income purposes, an d is not a preference item for purposes of
computing the federal alternative minimum tax or the Minnesota alternative minimum tax imposed on
individuals, trusts, and estates. 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. No opinion will be expressed by Kennedy & Grav en regarding other federal or
state tax consequences caused by the receipt or accrual of interest on the Bond s or arising with respect to
ownership of the Bond s . Preservation of the exclusion of interest on the Bond s from federal gross income
and state gr oss 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 Bond s 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 Bond s as tax -exempt under Section 103 thereof, includi ng without limitation, requirements relating to
temporary periods for investments and limitations on amounts invested at a yield greater than the yield on
the Bond s .
OTHER FEDERAL AND ST ATE TAX CONSIDERAT IONS
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 Bond s, including interest on the Bond s .
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
Bond s .
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 equiva lent 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 Bond s .
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Passive Investment Income of S Corporations
Passive investment income, including interest on the Bond s , 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.
Financial Institutions
Financial institutions are generally not entitled to a deduction for interest expenses allocable to the owners
of tax -e xempt Bond s purchased after August 7, 1986. The City will designate the Bond s as qualified tax -
exempt Bond s pursuant to Section 265(b)(3) of the Code.
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 Bond s . The receipt or accrual of interest on the Bond s 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 pro spective purchasers of the Bond s are advised to consult their
own tax advisors as to the tax consequences of, or tax considerations for, purchasing or holding the
Bond s .
BANK -QUALIFIED TAX -EXEMPT OBLIGATIONS
The Bond s will be designated as “qualified tax -exempt Bond s” 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, inter est expense that is allocable to carrying and acquiring tax -
exempt Bond s.
RATING
Application for a rating of the Bonds ha s been made to Moody’s I nvestors Service (“Moody’s”), 7 World
Trade Center, 250 Greenwich Street, 23 rd 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 ratings may be obtained
only from Moody’s .
There is no assurance that the rating, if assigned, will continue for any given p eriod of time, or that such
rating will not be revised, suspended or withdrawn, if, in the judgment of Moody’s , circumstances so
warrant. A revision, suspension or withdrawal of the rating may have an adverse effect on the market
price of the Bond s .
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MUNICIPAL ADVISOR
The City has retained Springsted Incorporated, Public Sector Advisors, of St. Paul, Minnesota
(“Springsted”), as municipal advisor in connection with certain aspects of the issuance of the Bond s . In
preparing th is Official Statement, Springsted has relied upon governmental officials, and other sources,
who have access to relevant data to prov ide accurate information for this Official Statement, and
Springsted has not been engaged, nor has it undertaken, to indepe ndently verify the accuracy of such
information. Springsted is not a public accounting firm and has not been engaged by the City to compile,
review, examine or audit any information in this Official Statement in accordance with accounting
standards. Springsted is an independent advisory firm , registered as a municipal advisor, and is not
engaged in the business of underwriting, trading or distributing municipal securities or other public
securities.
CERTIFICATION
The City has aut horized the distribution of the Preliminary Official Statement for use in connection with
the initial sale of the Bond s and a Final Official Statement following award of the Bond s . T he Purchaser
will be furnished with a certificate signed by the approp riate officers of the City stating that the City
examined each document and that, as of the respective date of each and the date of such certificate, each
document did not and does not contain any untrue statement of material fact or omit to state a materi al
fact necessary, in order to make the statements made therein, in light of the circumstances under which
they were made, not misleading.
(The Balance of This Page Has Been Intentionally Left Blank)
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CITY PROPERTY VALUES
Trend of Values (a)
Assessment/ Assessor’s Market Value Adjusted
Collection Estimated Sales Economic Homestead Taxable Taxable Net
Year Market Value Ratio (b) Market Value (c) Exclusion Market Value Tax Capacity
201 4 /1 5 (d) N/A N/A N/A N/A $2,135,652,918 N/A
201 3 /1 4 $2,092,544,000 91.31 % $2,284,831,130 $115,891,793 1,948,614,357 $22,216,867
201 2 /1 3 2,014,851,100 93.00 2,163,199,582 119,450,681 1,866,877,179 21,507,331
201 1 /1 2 2,060,480,700 96.10 2,132,239,231 115,495,251 1,914,176,616 22,124,926
20 10 /1 1 2,146,847,500 N/A N/A N/A 2,113,658,000 24,311,493
200 9 /10 2,277,122,400 N/A N/A N/A 2,238,851,500 25,430,852 (a) For a description of the Minnesota property tax system, see Appendix III. (b) Sales Ratio Study for the year of assessment as posted by the Minnesota Department of Revenue,
http://www.revenue.state.mn.us/propertytax/Pages/statistics -imv.aspx. Prior to 2011/12, a different
methodolo g y was used to calculate sales ratios. (c) Economi c market value s for the year of assessment as posted by the Minnesota Department of Revenue,
http://www.revenue.state.mn.us/propertytax/Pages/statistics -imv.aspx. (d) 201 4 /1 5 valuations are preliminary and are subject to change as provided by Dakota County, Minnesota ,
http://www.co.dakota.mn.us/homeproperty/assessing/marketvalues/pages/2015.aspx .
Source: Dakota County, Minnesota, July 2014 , except as otherwise noted.
201 3 /1 4 Adjusted Taxable Net Tax Capacity : $22,216,867 *
Real Estate:
Residen tial Homestead $15,343,175 67.6 %
Commercial/Industrial, Railroad ,
and Public Utility 5,608,398 24.7
Agricultural 517,646 2.3
Residential Non -Homestead 429,162 1.9
Personal Property 788,742 3.5
201 3 /1 4 Net Tax Capacity $22,687,123 100.0%
Less: Captured Tax Increment (572,445 )
Contribution to Fiscal Disparities (2,371,174)
Plus: Distribution from Fiscal Disparities 2,473,363
201 3 /1 4 Adjusted Taxable Net Tax Capacity $22,216,867
* Excl udes mobile home valuation of $35,063 .
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Ten of the Largest Taxpayers in the City 20 1 3 /1 4 Net
Taxpayer Type of Property Tax Capacity
Great Northern Oil Co./Flint Hills
Resources/Koch Refining Oil Refinery $2,839,168
Xcel Energy Utility 332,482
Clarel Corporation Retail 185,686
146 th Street Partners LP Commercial 163,180
CF Industries, Inc. (Cenex) Fertilizer 128,806
Northern Natural Gas Company Utility 125,768
Minnesota Pipeline Utility 119,141
Hawkins Inc. Industrial 102,642
Rosemount Crossing LLC Retail 85,250
Individuals Commercial 84,948
Total $4,167,071 *
* Great Northern Oil Co./Flint Hills Resources/Koch Refining represents 1 2.8 % of the City’s 201 3 /1 4 adjusted
taxable net tax capacity. The remaining nine taxpayers represent 6.0 % of the City’s 201 3 /1 4 adjusted taxable
net tax capacity.
CITY INDEBTEDNESS
Legal Debt Limit and Debt Margin*
Legal Debt Limit (3% of 201 3 /1 4 Estimated Market Value) $62,776,320
Less: Outstanding Debt Subject to Limit (3,115,000 )
Legal Debt Margin as of October 16, 2014 $5 9 ,661,320
* The legal debt margin is referred to statutorily as the “Net Debt Limit” and may be increased by debt service
funds and current revenues which are applicable to the payment of debt in the current fiscal year.
NOTES: Certa in types of debt are not subject to the legal debt limit. See Appendix I II – Debt Limitations.
The 2013 Minnesota Legislature clarified the definition of estimated market value and established it as
the basis for the calculation of the Net Debt Limit. A large contributing factor to the change was to
offset the effect of the Market Value Homestead Exclusion implemented by the 2012 Minnesota
Legislature, which had a significant impact on taxable market values.
General Obligation Debt Supported Solely by Taxes (a)
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 10 -1 6 -1 4
6 -15 -05 $2,630,000 Fire Station 2 -1 -2025 $1,755 ,000
11 -1 -05 1,115,000 Fire Station Refunding 2 -1 -2016 255 ,000
12 -1 -10 1,355,000 Public Facility Refunding 2 -1 -2022 1,105 ,000 (b )
Total $3,115 ,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.
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General Obligation Special Assessment Debt
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 10 -1 6 -1 4
6 -1 -06 $4,405,000 Local Improvements 2 -1 -2017 $1,365,000
11 -15 -11 2,080,000 Local Improvements 2 -1 -2017 1,260,000
9 -1 -12 810,000 Local Improvements 2 -1 -2018 655,000
10 -1 -13 1,500,000 Local Improvements 2 -1 -2019 1,500,000
10 -1 6 -14 1,820,000 Local Improvements (the Improvement
Portion of the Bonds) 2 -1 -2025 1,820,000
Total $6,600 ,000
General Obligation Tax Increment Debt *
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 10 -1 6 -1 4
4 -10 -08 $2,765,000 Taxable Tax Increment 2 -1 -2024 $2,545 ,000
4 -10 -08 3,275,000 Tax Increment 2 -1 -2032 3,275,000
Total $5,820 ,000
* These bonds were issued by the Rosemount Port Authority, but are secured by the general obligation pledge of
the City.
General Obligation Utility Revenue Debt
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 10 -1 6 -1 4
9 -1 -00 $1,160,000 Water Revenue 2 -1 -2016 $ 215 ,000
10 -15 -07 1,210,000 Water Revenue 2 -1 -2018 550 ,000
12 -1 -10 1,545,000 Storm Water and Water
Revenue Refunding 2 -1 -2018 635 ,000
1 0 -1 6 -1 4 580 ,000 Water Revenue (the Water Portion
of the Bonds) 2 -1 -2018 580,000
Total $1,980 ,000
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Estimated Calendar Year Debt Service Payments Including t he Bonds
G.O. Debt Supported G.O. Special
Solely by Taxes Assessment Debt
Principal Principal
Year Principal & Interest Principal & Interest (a)
201 4 (at 10 -16 ) (Paid) (Paid) (Paid) (Paid)
2015 $ 380,000 $ 486,291 $1,315,000 $1,409,979
2016 390,000 483,960 1,665,000 1,738,575
2017 275,000 358,220 1,690,000 1,734,039
2018 280,000 354,213 810,000 833,781
2019 290,000 354,423 655,000 668,883
2020 300,000 353,831 350,000 355,763
2021 310,000 352,491 20,000 22,588
2022 325,000 355,294 20,000 22,163
2023 180,000 200,268 25,000 26,631
2024 190,000 202,470 25,000 26,000
2025 195,000 199,193 25,000 25,338
Total $3,115,000 (b) $3,700,654 $6,600,000 (c ) $6,863,740
G.O. G.O.
Tax Increment Debt Utility Revenue Debt
Principal Principal
Year Principal & Interest Principal & Interest (d )
201 4 (at 10 -16 ) (Paid) (Paid) (Paid) (Paid)
2015 $ 150,000 $ 41 1,885 $ 410,000 $ 458,232
2016 195,000 448,260 475,000 510,973
2017 230,000 472,635 370,000 393,334
2018 245,000 475,760 305,000 318,748
2019 260,000 478,135 55,000 63,768
2020 270,000 474,716 60,000 67,845
2021 285,000 474,960 60,000 66,735
2022 300,000 473,873 60,000 65,460
2023 315,000 471,960 60,000 64,050
2024 330,000 469,485 60,000 62,535
2025 350,000 473,673 65,000 65,878
2026 365,000 474,373
2027 380,000 474,473
2028 395,000 473,874
2029 410,000 472,573
2030 430,000 475,563
2031 445,000 472,844
2032 465,000 474,416
Total $5,820,000 (e ) $8,443,458 $1,980,000 (f ) $2,137,558
(a) Includes the Improvement Portion of the Bonds at an assumed average annual interest rate of 1.48 %. (b) 93.7 % of this debt will be retired within ten years. (c ) 99.6 % of this debt will be retired within ten years. (d ) Includes the Water Portion of the Bonds at an assumed average annual interest rate of 2.15 %. (e ) 44.3 % of this debt will be retired within ten years. (f ) 96.7 % of this debt will be retired within ten years.
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Overlapping Debt
201 3 /1 4 Debt Applicable to
Adjusted Taxable Est. G.O. Debt Tax Capacity in City
Taxing Unit (a) Net Tax Capacity As of 10 -16 -1 4 (b) Percent Amount
Dakota County $ 395,154,046 $40,890 ,000 5.6% $ 2,289,840
I.S.D. No. 196 (Rosemount -
Apple Valley -Eagan ) 145,765,903 96,477,253 14.2 13,699,770
I.S.D. No. 199 (Inver Grove
Heights ) 25,505,658 67,040,000 6.0 4,022,400
I.S.D. No. 200 (Hastings ) 31,129,024 44,240,000 0.1 44,240
Metropolitan Council 2,999,061,916 21,040,000 (c ) 0.7 147,280
Total $20,203,530 (a) Only those units with outstanding general obligation debt are shown here. (b) Excludes general obligation tax and aid anticipation certificates and revenue -supported debt. (c) Excludes general obligation debt supported by wastewater revenues and housing rental payments. Includes
certificates of participation.
Debt Ratios *
G.O. G.O. Direct &
Direct Debt Overlapping Debt
To 2 01 3 /1 4 Estimated Market Value ($2,092,544,000 ) 0.74 % 1.71 %
Per Capita - (22,605 - 20 13 MN State
Demographer’s Estimate ) $687 $1,581 * Excludes general obligation utility revenue debt .
CITY TAX RATES, LEVIES AN D COLLECTIONS
Tax Capacity Rates for a Resident in City of Rosemount
201 3 /1 4
For
200 9 /10 20 10 /1 1 201 1 /1 2 201 2 /1 3 Total Debt Only
Dakota County 27.2 69 % 29.149 % 31.426 % 33.421 % 31.827 % 0.963 %
City of Rosemount 43.358 44.661 46.994 48.862 47.676 1.686
I .S .D . No. 196
(Rosemount -Apple
Valley -Eagan )(a ) 25.391 26.959 28.440 27.956 27.606 11.068
Special Districts (b ) 3.821 3.984 4.187 4.436 4.161 0.198
Total 99.839 % 104.753 % 111.047 % 114.675 % 111.270 % 13.915 %
(a) In addition, Independent School District No. 196 (Rosemount -Apple Valley -Eagan ) has a 201 3 /1 4 market value
tax rate of 0.25809 % spread across th e market value of property in support of an excess operating levy. (b ) Special districts include Metropolitan Council, Metropolitan 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.
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Tax Le vies and Collections
Collected During Collected and/or Abated
Net Collection Year a s of 7 -3 0 -14
Levy/Collect Levy * Amount Percent Amount Percent
201 3 /1 4 $9,412,887 (In Process of Collection)
201 2 /1 3 9,219,545 $9,139,370 99.1 % $9,210,983 99.9 %
201 1 /1 2 9,074,162 9,003,979 99.2 9,068,760 99.9
20 10 /1 1 9,220,079 9,135,672 99.1 9,214,528 99.9
200 9 /10 9,550,155 9,451,527 99.0 9,545,884 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.
FUNDS ON HAND
As of July 3 1 , 2014
General Fund $ 9,208,636
Special Revenue Funds 660,579
Port Authority Fund 834,599
Debt Service Funds 4,377,921
Capital Project Funds 8,319,268
Enterprise Funds 16,303,482
Arena Fund 194,689
Total Cash and Investments $39,899,174
INVESTMENTS
The City has a formal investment policy. 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 portfo lio. 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 a gencies. 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.
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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 requ ired 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 inte rest.
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 July 31, 2014, the City had a total of $35,164,352 invested funds as follows:
Amount Invested
Type of Security Length of Investment as of 7 -31 -14
Money Market Savings N/A $11,140,944
Certificates of Deposit Less than 12 months 5,171,000
Certificates of Deposit One to fifteen years 5,913,495
Government Asset Backed Securities Ten years or less 12,938,913
Total $35,164,352
GENERAL INFORMATION CONCERNING THE CITY
The City, located in northern Dakota County , is a southern suburb of the Minneapolis/Saint Paul
metropolitan area, and encompasses an area of approximately 35.3 square miles (22,560 acres).
Population
The City ’s population trend is shown below.
Percent
Population Change
20 13 MN State D emographer’s
Estimate 22,605 3.3 %
2010 U.S. Census 21,874 49.6
2000 U.S. Census 14,619 69.6
1990 U.S. Census 8,622 69.6
1980 U.S. Census 5,083 --
Sources: Minnesota State Demographic Center, http://www.demography.state.mn.us/ and
United States Census Bureau, http://www.census.gov/.
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The City ’s population by age group for the past two years is as follows:
0 -1 7 1 8 -34 3 5 -64 65 and Over
2013 6,639 4,748 9,875 2,066
2012 6,818 4,507 9,589 1,950
Source: Claritas, Inc.
Transportation
U.S. Highway 52 run s north -south through the City. In addition, Minnesota Highways 3 and 55 and
County Road 42 run through the City . Public transportation services are provided through the Minnesota
Valley Transit Authority. The City is located approximately 18 miles from the Minneapolis/St. Paul
International Airport. County Road 46 runs along the southern border and is as traveled as Co. Rd. 42.
Tax Base and Economy
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 Ind ustries, 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 stat ion 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 32 0,000 barrels of crude oil into gasoline each day. This Rosemount company employs
approximately 1,100 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 a re situated in the City. This facility is utilized by the University, other
research agencies, and private firms for agricultural and other research projects. The University has
complete the approval process to begin mining some of their land.
Major Employers
Approximate
Number
Employer Product/Service of Employees Independent School District No. 196
(Rosemount -Apple Valley -Eagan) Public education 3 ,600
Flint Hills Resources’ Pine Bend Refinery Oil refinery 1 ,100
Intermediate School District No. 917 Education 341
Wayne Transports General freight trucking 323
Dakota County Technical College Education 262
Bay & Bay Transportation Truck transportation services 241
Spectro Alloys Corporation Aluminum alloys 120
City of Rosemount Government 78
Endres Processing Ltd. Livestock feed 72
Cub Food’s Grocery store 1 20
Walbon & Company Freight shipping 1 10
Greif Brothers Corporation Multiwall bags 7 2
Source: T his does not purport to be a comprehensive list and is based on an August 2014 best efforts t elephone
survey of individual employers. Some employers do not respond to inquiries.
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Labor Force Data
Annual Average June
20 10 201 1 201 2 201 3 201 4
Labor Force:
Dakota County 229,733 230,864 231,946 232,407 236,813
State of Minnesota 2,962,633 2,969,696 2,969,366 2,973,987 3,022,726
Unemployment Rate:
Dakota County 7.1 % 6.1 % 5.3 % 4.7 % 4.3 %
State of Minnesota 7.4 6.5 5.6 5.1 4.6
Source: Minnesota Department of Employment and Economic Development,
http://www.positivelyminnesota.com . 201 4 data are preliminary.
Retail Sales and Effective Buying Income (EBI )
City of Rosemount
Data Ye ar/ Total Retail Total Median
Report Year Sales ($000) EBI ($000) Household EBI
2013 /14 $130,632 $605,047 $65,135
2012 /13 93,961 599,317 65,021
Dakota County
Data Year/ Total Retail Total Median
Report Year Sales ($000) EBI ($000) Household EBI
2013/14 $6,421,455 $10,844,223 $56,674
2012/13 5,794,034 10,770,815 55,539
2011/12 6,784,232 10,387,368 56,655
2010/11 6,786,831 10,287,060 56,964
2009/10 6,197,129 10,543,345 59,620
The 2013 Median Household EBI for the State of Minnesota wa s $48,180 . The 2013 Median Household
EBI for the United States was $43,715.
Source: Claritas, Inc.
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Permits Issued by the City
New/Substantial
New Single Commercial/Industrial
Family Residential Public/Institutional Total Value*
Year Number Value Number Value (All Permits)
2014 (to 7 -31) 56 $17,140,377 11 $13,113,355 $ 37,838,836
2013 96 26,136,626 11 8,771,350 42,084,362
2012 72 21,174,849 12 10,162,400 38,598,718
2011 53 14,240,000 11 6,580,535 28,753,846
2010 80 18,197,011 10 4 ,439,292 32,177,918
2009 88 19,190,195 7 1,749,865 31,839,499
2008 237 26,809,851 14 26,631,862 67,945,640
2007 143 27,084,690 14 23,648,245 63,085,633
2006 224 46,503,749 18 23,427,347 70,879,026
2005 454 88,551,982 23 28,054,869 123,374,042
* In addition to building permits, the total value includes all other permits issued by the City (ie. heating, lighting,
plumbing, roof replacement, etc.).
Source: City of Rosemount .
Recent and Proposed Development
City building levels for 2013 improved over those in 2012 , and the first six months of 2014 also show a
marked increase. The City is experiencing a steady increase in residential development, primarily single
family residential units. Current non -residential development permits and valuations are above previous
years with the first six months of 2014 above the non -residential permit valuation for all of 2013.
New dwelling unit construction increase d in 2013, fueled by small single -family development in the
Akron Avenue area. Two national bui lders generated the majority of activity and several regional
builders have entered the market with new subdivisions and the completion of pre -existing projects.
Additional planning approvals indicate that there will be available lots for construction hea ding into the
fall of 2014 and new subdivisions ready for the 2015 construction season. Bella Vista will provide an
upscale neighborhood with higher anticipated unit and land valuations. Infrastructure is currently being
installed and lots will be availa ble for the spring parade. The multi -family market continues to be slow;
however, there are signs that demand in this market may be occurring. Two senior housing projects
received planning approval in 2014 with an assisted living 90 -unit rental senior ho using project scheduled
to break ground in September . The second 60 -unit affordable senior housing project is scheduled to begin
construction in spring of 2015.
In 2013, approximately $42,000,000 of new valuation was added in the community. It is antic ipated that
new valuation in 2014 will be higher as current estimates for the first six months put construction value at
$33,864,000. Much of that value continues to come from residential development, through new
construction and remodeling projects on ex isting units. Flint Hills, one of the largest employers in the
community is in the process of significant reinvestment to increase efficiencies and plant capacity. Their
constructions projects are the majority of the $11,000,000 industrial construction v alue experience so far
in 2014.
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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/Developer Housing Approved 7 -3 1 -1 4 Bella Vista 2 nd Addition/Lennar Single Family 28 28
Connemara Crossing/Basic Builders Single Family 44 0
Glendalough 2 nd /Lennar Single Family 7 1
Glendalough 3 rd /Lennar Single Family 29 1
GlenRose of Rosemount/
Dean Johnson Homes Multi -Family 76 64
Greystone 1 st Addition/Ryland Single Family 23 2
Greystone 2 nd Addition/Ryland Single Family 31 13
Harmony 2 nd Addition/CPDC Multi -Family 81 6
Harmony 3 rd Addition/CPDC Single Family 14 0
Harmony 5 th Additi on/Rsmt Land Corp. Mixed 64 27
Harmony 6 th Addition/Rottlund Multi -Family 49 28
Prestwick Place 4 th Addition/DR Horton Single Family 28 0
Prestwick Place 5 th Addition/DR Horton Single Family 2 1
Prestwick Place 6 th Addition/DR Horton Single Family 4 1
Prestwick Place 7 th Addition/
US Home Corp. Single Family 37 10
Prestwick Place 8 th Addition/
Anderson/Keyland Single Family 33 33
Prestwick Place 9 th Addition/Lennar Single Family 8 8
Prestwick Place 10 th Addition/Lennar Single Family 26 26
Rosewood Estates/Progress Land Single Family 55 1
Financial Institutions *
Full service banking is provided by the First State Bank of Rosemount, which had deposits of
$60,928 ,000 as of March 31, 2014 . In addition, b ranches of Merchants Bank, National Association , TCF
National Bank, and Vermillion State Bank are also located in the City.
* This does not purport to be a comprehensive list.
Source: Federal Deposit Insurance Corporation, http://www2.fdic.gov/idasp/main.asp .
Health Care Services
The following is a summary of health care facilities located near the City :
Facility Location No. of Beds Augustana HCC of Apple Valley City of Apple Valley 178
Augustana HCC of Hastings City of Hastings 91
Ebenezer Ridges Geriatric CC C i ty of Burnsville 104
Fairview Ridges City of Burnsville 150
Northfield City Hospital City of Northfield 37 Hospital
40 Nursing Home
Regina Senior Living City of Hastings 61
Regina Hospital City of Hastings 57
Southview Acres Health Care Center City of West St. Paul 241
Trinity Care Center City of Farmington 65
Walker Methodist Westwood Ridge II City of West St. Paul 37
Woodlyn Heights Healthcare Center City of Inver Grove Heights 99
Source: Minn esota Department of Health, http://www.health.state.mn.us/.
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Education
Public Education
The following district s serve the residents of the City :
201 3 /1 4 *
School Grades Enrollment
ISD No. 196 (Rosemount -Apple Valley -Eagan) K -12 27,221
ISD No. 199 (Inver Grove Heights) K -12 3,873
ISD No. 200 (Hastings) K -12 4,554
* 201 4 /1 5 enrollment figures are not yet available.
The major portion of the City is part of Independent School District No. 196 (Rosemount -Apple Valley -
Eagan), headquartered in the City. The District is one of the largest employers in the City with
approximately 3,600 full -time and part -time employees District -wide. The physical plant of the District
consists of 18 elementary scho ols, six middle schools, four senior high schools, and three special education
schools. Of these schools, two elementary schools, one junior high school, and one senior high are located
in the City.
Non -Public Education
City residents are also served by the following private schools:
201 3 /1 4 *
School Grades Enrollment
Faithful Shepherd Catholic K -8 501
Trinity School at River Ridge 7 -12 279
St. Elizabeth Ann Seton K -8 273
St. Joseph’s Catholic K -8 221
First Baptist K -12 208
Good Shepherd Lutheran K -8 100
St. John the Baptist K -6 97
Pine Harbor Christian Academy K -6 86
Christian Heritage Academy K -8 72
Achiever Academy 7 -12 71
Bereau Lutheran K -8 32
Heritage Lutheran School K 10
Woodpark Montessori K 5
* 201 4 /1 5 enrollment figures are not yet available.
Post -Secondary Education
The Dakota County Technical College is 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.
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GOVERNMENTAL ORGANIZATION AND SERVICES
Organization
The City 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 following indiv iduals comprise the current City Council:
Expiration of Term Bill Droste Mayor December 31, 2014
Mark DeBettignies Council Member December 31, 2014
Vanessa Demuth Council Member December 31, 2016
Kim Shoe -Corrigan Council Member December 31, 2014
Jeff Weisensel Council Member December 31, 2016
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. Clarissa Handler 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 c ommunity, and is designed to
encourage and promote orderly development and growth, perpetuating a sound and steady growth in the
City tax base.
The City has 78 regular full -time and 166 seasonal full - and part -time employees.
Services
Police protection for the City is provided by 23 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
storag e capacity of 3,500,000 gallons. The maximum pumping capacity is 12,096,000 gallons per day with
an average demand of 2,412,638 gallons pumped daily in 2013.
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 charg es, 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 faciliti es through
the operation of a storm water utility. Each property in the City pays a quarterly “stormwater user fee”
and an initial connection charge to support the program.
Interceptor sewer lines and wastewater treatment plants in the seven -county metropolitan area, of which
the City is a part, are under the jurisdiction of the Metropolitan Council Environmental Services
(“MCES”). MCES finances its operations through user charges based on usage. The City is responsible
for the construction and mai ntenance of sewer laterals.
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Labor Contracts
The status of labor contracts in the City is as follows:
Expiration Date
Bargaining Unit No. of Employees of Current Contract
AFSCME 22 December 31, 2015
Teamsters 17 December 31, 2015
LELS – Supervisory 5 December 31, 2015
LELS – Patrol Officers 17 December 31, 2015
Subtotal 61
Non -unionized employees 17
Total employees 78
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 P ublic 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 m embers 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 ye ars are as follows:
GERF PEPFF
2013 $259,654 $275,788
2012 251,921 272,834
2011 268,848 256,236
2010 258,857 249,472
2009 248,891 240,374
City Firefighter’s Association
Volunteer firefighters of the City are eligible for pension benefits through membership in the Rosemount
Fire Department Relief Association Pension Plan organized under Minnesota Statutes, Chapter 69, and
administered by the Rosemount Fire Department Relie f Association (the “Association”). The Association
provides a lump -sum benefit to its members upon retirement, total disability, or death.
The contribution requirements are established and may be amended by the Minnesota State Legislature.
The Associa tion is comprised of volunteers. Therefore, there are no covered payroll amounts or member
contributions required. Individuals with at least 20 years of service who have reached age 50 are entitled
to a lump -sum payment of $6,900 per year of service. In the event an otherwise qualified member has
less than 20 years of service, the member is eligible for a pension payment of 60% after 10 years of
service, increasing 4% for each year of service after 10 years to a maximum of 100%. Members retiring
before 50 years of age do not receive distributions until age 50, but interest at 5% per year is added to
their retirement benefit until paid.
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The annual pension cost for the Rosemount Fire Department Relief Association Pension Plan for the past
five years are as follows:
State of Minnesota City
Contribution Contribution
2013 $125,632 $171,000
2012 91,845 171,000
2011 87,718 166,000
2010 73,399 161,200
2009 71,882 156,500
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, 2 012, included as Appendix IV of this Official
Statement.
Source s : City ’s Comprehensive Annual Financial Report s .
Other Post -Employment Benefits
The Governmental Accounting St andards 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 “O PEB”).
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 only cost to the City comes from the implicit rate
subsidy. Under GASB 45 such costs must be accounted for on an annual basis, however; manageme nt
has determined that any liability related to postemployment benefits is immaterial and is not reported the
City’s Comprehensive Annual Financial Report.
Sources: City ’s Comprehen sive Annual Financial Reports .
- 24 -
General Fund Budget Summary
201 3 Budge t 201 3 Actual 201 4 Budget
Revenues:
General Property Taxes $ 8,822,300 $ 8,865,223 $ 8,688,800
Licenses and Permits 382,300 522,131 438,300
Intergovernmental 300,100 318,986 580,800
Charges for Services 909,900 1,021,977 848,300
Fines and Forfeits 125,000 106,617 125,000
Special Assessments 1,000 4,470 0
Recreational Fees 0 0 253,600
Miscellaneous Revenues 197,305 (182,672) 160,300
Transfers In 3,500 3,931 3,500
Total Revenues $10,741,405 $10,660,663 $11,098,600
Expenditures:
General Government $ 2469,400 $ 2,304,202 $ 2,591,500
Public Safety 3,627,605 3,604,213 3,787,000
Public Works 3,197,000 3,179,136 3,363,300
Parks and Recreation 1,330,530 1,321,946 1,356,800
Capital Outlay 1,870 1,866 0
Transfers Out 115,000 115,000 0
Total Expenditures $10,741,405 $10,526,363 $11,098,600
Sources: City ’s Comprehensive Annual Financial Reports and 2014 Budget.
Major General Fund Revenue Sources
Revenue 200 9 20 10 201 1 201 2 201 3
General Property Taxes $8,308,935 $8,737,430 $9,032,354 $8,673,013 $8,865,223
Charges for Services 933,498 955,534 1,006,614 1,080,023 1,021,977
Licenses and Permits 430,551 453,900 388,615 484,644 522,131
Intergovernmental 345,100 306,892 306,727 340,218 318,986
Fines and Forfeits 121,618 113,675 123,245 129,343 106,617
Source s : City ’s Compreh ensive Annual Financial Reports .
APPENDIX I
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PROPOSED FORM OF LEGAL OPINION
$2,400,000
General Obligation Bonds , Series 2014A
City of Rosemount
Dakota County, Minnesota
We have acted as bond counsel to the City of Rosemount, Dakota County, Minnesota (the
“Issuer”) in conn ection with the issuance by the Issuer of its General Obligation Bonds , Series
2014A (the “Bonds”), originally dated the date hereof, an d issued in the original aggregate principal
amount of $2,400,000. 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 o ther 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 foregoi ng 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 s pecial assessments levied or
to be levied on property specially benefitted by local improvements, revenues of the water utility system
of the Issuer and ad valorem taxes required by law to be levied on all taxable property of the Issuer, which
taxes are no t 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 inte rest 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
institutio ns) 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 or der 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
w ith 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 opin ion 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 cir cumstances that may hereafter come to our attention
or any changes in law that may hereafter occur.
Dated __________, 2014 at Minneapolis, Minnesota.
APPENDIX I I
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CONTINUING DISCLOSUR E CERTIFICATE
$2,400,000
City of Rosemount, Minnesota
General Obligation Bonds, Series 2014A
_______, 2014
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
Bonds, Series 2014A, (the “Bonds”) in the original aggregate principal amount of $2,400,000. 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:
Sect ion 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 capital ized 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 statem ents 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 Bonds, Series 2014A, issu ed by the Issuer in the original
aggregate principal amount of $2,400,000.
“Disclosure Certificate” means this Continuing Disclosure Certificate.
“EMMA” means the Electronic Municipal Market Access system operated by the MSRB and
designated as a nation ally 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 _________, 2014, 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.
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“Issuer” means the City of Rosemount, Minnesota, which is the obligated person with respect to the
Bonds.
“Material Event” means any of the events listed in Section 5(a) of this Disclosure Certificate.
“MSRB” means the Municipal Securiti es 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 offerin g 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, 2014, an
Annual Report which is consistent with the requirements of Se ction 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
re quired 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 Is suer shall clearly identify each such other document so incorporated
by reference.
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Section 5. Reporting of Material Events .
(a) This Section 5 shall govern the giving of notice of the occurrence of any of the following
events (“Material Events”) with respect to the Bonds:
1. Principal and interest payment delinquencies;
2. Non -payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IR S 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, i f 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 t o 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.
Section 6. EMMA . The SEC has designated EMMA as a nationally recognized municipal
securities information repository and the exclusive portal for complying with the continuing disclosure
requirements of the Rule. Until the EMMA system is amended or altered by the MSRB and the SEC, the
Issuer shall make all filings required under this Disclosure Ce rtificate solely with EMMA.
Section 7. Termination of Reporting Obligation . The Issuer’s obligations under the
Resolutions and this Disclosure Certificate shall terminate upon the legal defeasance, redemption, 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 success or dissemination agent.
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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 d isclosure 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 th e 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 Resolut ions 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
preve nt 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 Mate rial 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 failur e 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 t he Holders from time to time of the Bonds, and shall create no
rights in any other person or entity.
IN WITNESS WHEREOF, we have executed this Disclosure Certificate in our official capacities
effective as of the date and year first written above.
CITY OF ROSEMOUNT, MINNESOTA
Mayor
City Clerk
APPENDIX III
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SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND
MINNESOTA REAL PROPERTY VALUATION
(effective through levy year 201 3 /payable year 201 4 )
Following is a summary of certain statutory provisions effective through levy year 201 3 /payable year
201 4 relative to tax levy procedures, tax payment and credit procedures, and the mechanics of real
property valuation. The summary d oes 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 valu ed 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.” The 2013
Minnesota Legislature established the Estimated Market Value as the valu e used to calculate a
municipality’s legal debt limit.
Economic Market Value . The Economic Market Value is the value of locally assessed real property
(Assessor’s Estimated Market Value) divided by the sales ratio as provided by the State of Minnesota
De partment of Revenue plus the estimated market value of personal property, utilities, railroad, and
minerals.
Taxable Market Value . The Taxable Market Value is the value that Net Tax Capacity is based on, after
all reductions, limitations, exemptions and deferrals.
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 a nd are subject to annual revisions by the State Legislature. Property taxes are the sum
of the amounts determined by (i) multiplying the Net Tax Capacity by the tax capacity rate, and
(ii) multiplying the referendum market value by the market value rate.
Market Value Homestead Exclusion . In 2011, the Market Value Homestead Exclusion Program (MVHE)
was implemented to offset the elimination of the Market Value Homestead Credit Program that provided
relief to certain homesteads. The MVHE reduces the taxabl e market value of a homestead with an
Assessor’s Estimated Market Value up to $413,800 in an attempt to result in a property tax similar to the
effective property tax prior to the elimination of the homestead credit. The MVHE applies to property
classifie d as Class 1a or 1b and Class 2a, and causes a decrease in the City ’s aggregate Taxable Market
Value, even if the Assessor’s Estimated Market Value on the same properties did not decline.
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 li sting 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.
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The county treasurer is responsible for collecting all property taxes within the county. Real estate and
p ersonal property tax statements are mailed out by March 31. One -half (1/2) of the taxes on real property
is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid
by their due date are assessed a penalty that , depending on the type of property, increases from 2% to 4%
on the day after the due date. In the case of the first installment of real property taxes due May 15, the
penalty increases to 4% or 8% on June 1. Thereafter, an additional 1% penalty shall ac crue 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 Decem ber 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 agreemen t, 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 n o 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 seas onal
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 tr ust 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 homestead credit refund and the
renter’s property tax refund , which relate proper ty taxes to income and provide relief on a sliding income
scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases.
The homestead credit refund, the renter’s property tax refund, and targeted credits are r eimbursed 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 municipaliti es (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 assessmen ts 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 Stat utes)
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
Washingt on 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 sh all be distributed back to each assessment district.
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STATUTORY FORMULAE: CONVERSION OF TAXABLE MARKET VALUE (TMV) TO
NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS
Local Tax
Payable
Local Tax
Payable
Property Type 2010 2011 -2014
Residential Homestead (1a)
Up to $500,000 1.00% 1.00%
Over $500,000 1.25% 1.25%
Residential Non -homestead
Single Unit (4bb1)
Up to $500,000 1.00% 1.00%
Over $500,000 1.25% 1.25%
1 -3 unit and undeveloped land (4b1) 1.25% 1.25%
Market Rate Apartments
Regular (4a) 1.25% 1.25%
Low -Income (4d) 0.75% 0.75%
Commercial/Industrial/Public Utility (3a)
Up to $150,000 1.50%(a) 1.50%(a)
Over $150,000 2.00%(a) 2.00%(a)
Electric Generation Machinery 2.00% 2.00%
Commercial Seasonal Residential
Homestead Resorts (1c)
Up to $600,000 0.50% 0.55%
$600,000 - $2,300,000 1.00% 1.00%
Over $2,300,000 1.25%(a) 1.25%(a)
Seasonal Resorts (4c)
Up to $500,000 1.00%(a) 1.00%(a)
Over $500,000 1.25%(a) 1.25%(a)
Non -Commercial (4c12)
Up to $500,000 1.00%(a)(b) 1.00%(a)(b)
Over $500,000 1.25%(a)(b) 1.25%(a)(b)
Disabled Homestead (1b)
Up to $50,000 0.45% 0.45%
$50,000 to $500,000 1.00% 1.00%
Over $500,000 1.25% 1.25%
Agricultural Land & Buildings
Homestead (2a)
Up to $500,000 1.00% 1.00%
Over $500,000 1.25% 1.25%
Remainder of Farm
Up to $1,500,000 (c) 0.50%(b) 0.55%(b)
Over $1,500,000 (c) 1.00%(b) 1.00%(b)
Non -homestead (2b) 1.00%(b) 1.00%(b)
(a) State tax is applicable to these classifications.
(b) Exempt from referendum market value based taxes.
(c) L egislative increases , payable 2014 . Historical valuations are: Payable 201 3 - $1,290,000 ; Payable 201 2 - $1,210,000;
Payable 201 1 - $1,140,000; and Payable 20 10 - $1,010,000.
APPENDIX IV
IV -1
EXCERPT OF 2013 COMPRE HENSIVE ANNUAL FINANCIAL REPORT
Data on the following pages was extracted from the City ’s Comprehensive Annual Financial Report for
fiscal year ended December 31, 20 13 . The reader should be aware that the complete financial statements
may contain additional information which may interpret, explain or modify the data presented here.
The City ’s comprehensive annual financial reports for the years ending 1996 through 2012 were awarded
the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance
Officers Association of the United States and Canada (GFOA). The Ce rtificate of Achievement is the
highest form of recognition for excellence in state and local government financial reporting. The City has
submitted its CAFR for the 20 13 fiscal year to GFOA.
In order to be awarded a Certificate of Achievement, a governm ent 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 require ments. A Certificate of Achievement is valid for a period of one year only.
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PROPOSAL SALE DATE: September 16, 2014
________________________________ Phone: 651 -223 -3000
* Preliminary; subject to change. Fax: 651 -223 -3046
Email: bond_services@springsted.com
Website: www.springsted.com
City of Rosemount , Minnesota
$2,400,000 * General Obligation Bonds, Series 2014A
For the Bonds of this Issue which shall mature and bear interest at the respective annual rates, as follow, we offer a price of
$_________________ (which may not be less than $2,373,600 ) plus accrued interest, if any, to the date of delivery.
Year
Interest
Rate (%)
Yield (%)
Dollar
Price
Year
Interest
Rate (%)
Yield (%)
Dollar
Price
2016 % % % 2021 % % %
2017 % % % 2022 % % %
2018 % % % 2023 % % %
2019 % % % 2024 % % %
2020 % % % 2025 % % %
Designation of Term Maturities
Years of Term Maturities
In making this offer on the sale date of September 16, 2014 we accept all of the terms and conditions of the Terms of Proposal published
in the Preliminary Official Statement dated August 28 , 2014 , including the City ’s right to modify the principal amount of the Bond s . (See
“Terms of Proposal” herein.) In the event of failure to deliver these Bond s in accordance with said Terms of Proposal, we reserve the
right to withdraw our offer, whereupon the deposit accompanyi ng it will be immediately returned. All blank spaces of this offer are
intentional and are not to be construed as an omission.
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: ______________ %
The Bidder will not will purchase municipal bond insurance from .
Account Members
______________________________
Account Manager
By: ___________________________
Phone: ________________________
...........................................................................................................................................................................................................................
The foregoing proposal has been accepted by the City .
Attest: _______________________________ Date: ________________________________
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_____ SURE -BID _____ Wire Transfer _____ Good Faith Check