HomeMy WebLinkAbout4.a. 2015 Refunding-Port-Award Sale SUMEXECUTIVE SUMMARY
Port Authority Meeting Date: October 20, 2015
AGENDA ITEM: Accept Bids and Award Sale G.O. TIF
AGENDA SECTION:
Refunding Bonds, Series 2015A
Old Business
PREPARED BY: AGENDA NO. 4.a.
Jeff May, Finance Director
ATTACHMENTS: Resolution, Escrow Agreement and
APPROVED BY:
ddj
Official Statement
RECOMMENDED ACTION:
Motion to adopt a Resolution Awarding the Sale of
$3,460,000 General Obligation Tax Increment Refunding Bonds, Series 2015A; and
Providing for their Issuance.
ISSUE
Accept bids and award sale of bonds for the crossover refunding of one current Port Authority bond
issue.
BACKGROUND
This item is on the agenda for formally award the sale of General Obligation Tax Increment (TIF)
Refunding bonds for the current bonds (G.O. Tax Increment Bonds, Series 2008B). At 10:00 A.M.
Tuesday, October 20, 2015, sealed bids for G.O. Tax Increment Refunding Bonds, Series 2015A, 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 recommendation
for the issuance of these bonds and to answer any questions that you may have. A bond rating conference
call was held
th
speaking with me regarding the City of Rosemount and its Port Authority. On Tuesday, October 13, our
Aa2 rating was affirmed at that
meeting for our new debt as well as all of our existing debt.
The main reason for doing this refunding is because of the market today and the lower interest rates that
should be available to us. These lower interest rates will result in present value savings and actual interest
savings on the payments that we will make over the life of the bonds. The refunding will keep the
remaining life of the current bonds in place we will not be extending any of our debt to do these
refundings. The estimated actual interest savings that will be realized over the life of the issue is
$370,742.25 (approximately $17,000 - $22,000 per year over the remaining 15 years after the crossover
refunding takes place in 2017). This is also the approximate extra amount that we will have available for
future TIF district projects over and above previous calculations.
Because the bid opening is not until earlier in the day Tuesday, you will receive information regarding the
bids at the meeting that evening.
SUMMARY
Recommend the above motion.
Rosemount Port Authority
Dakota County, Minnesota
Resolution No. 2015-02
Resolution Awarding the Sale of $3,460,000 General
Obligation Tax Increment Refunding Bonds, Series 2015A;
and Providing for their Issuance
BE IT RESOLVED By the Board of Commissioners of the Rosemount Port Authority, Dakota
County, Minnesota (the
Section 1. Sale of Bonds.
1.01. Background; Findings. It is hereby determined that:
(a) the Authority is authorized by the provisions of Minnesota Statutes, Chapter 475 (the
and Section 469.060 to issue and sell its general obligation bonds to refund outstanding bonds when
determined by the Board of Commissioners to be necessary and desirable;
(b) it is necessary and desirable that the Authority issue approximately $3,460,000 General
Obligation Tax Increment Refunding Bonds, Series 2015A (the
maturity the outstanding General Obligation Tax Increment Bonds, Series 2008B, dated April 10,
2008 (the 3,275,000 in principal amount is callable on February 1,
2017
Downtown-Brockway Tax Increment .
1.02. Award to the Purchaser and Interest Rates. The proposal of ________________________
(the 3,460,000 General Obligation Tax Increment Refunding Bonds, Series
2015A (the e Authority described in the Official Terms of Proposal thereof is
determined 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, for Bonds bearing interest as
follows:
Year Interest Rate Year Interest Rate
2018 2026
2019 2027
2020 2028
2021 2029
2022 2030
2023 2031
2024 2032
2025
1.03. Purchase. The Executive 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 Chair and Executive Director are directed to execute a contract with the Purchaser on
behalf of the Authority.
468196v1 JSB RS125-18
RESOLUTION 2015-02
1.04. Terms and Principal Amounts of the Bonds. The Authority will forthwith issue and sell the
Bonds in the total principal amount of $3,460,000 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 maturing serially on February 1 in the years and amounts as follows:
Year Amount Year Amount
2018 $ 20,000 2026 $380,000
2019 20,000 2027 390,000
2020 20,000 2028 400,000
2021 25,000 2029 410,000
2022 25,000 2030 425,000
2023 25,000 2031 435,000
2024 60,000 2032 450,000
2025 375,000
As may be requested by the Purchaser, one or more term Bonds may be issued having mandatory
sinking fund redemption and final maturity amounts conforming to the foregoing principal
repayment schedule, and corresponding additions may be made to the provisions of the applicable
Bond(s).
1.05. Optional Redemption. The Authority may elect on February 1, 2024, and on any day
thereafter to prepay Bonds due on or after February 1, 2025. Redemption may be in whole or in
part and if in part, at the option of the Authority and in such manner as the Authority will
determine. If less than all Bonds of a maturity are called for redemption, the Authority will notify
DTC (as defined in Section 7 hereof) 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.
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest thereon
and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued by
the Registrar described herein.
2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment date
preceding the date of authentication to which interest on the Bond has been paid or 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
(ii) the date of authentication is prior to the first interest payment date, in which 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, 2016, to the registered owners 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. Registration. The Authority will appoint a bond registrar, transfer agent, authenticating agent
and paying agent (the ty
and the Registrar with respect thereto are as follows:
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RESOLUTION 2015-02
(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 transfers and
exchanges of Bonds entitled 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 instrument of transfer, in form satisfactory to the Registrar,
duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner
in writing, the Registrar 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 Registrar may, however, close the books for registration of any transfer after the
fifteenth day of the month preceding each interest payment date and until that interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered owner for exchange the
Registrar will authenticate and deliver one or more new Bonds of a like aggregate principal amount and
maturity as requested by the reg
(d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by the
Registrar and thereafter disposed of as directed by the Authority.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for transfer,
the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the endorsement on the
Bond or separate instrument 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.
(f) Persons Deemed Owners. The Authority 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, for the purpose of receiving payment of, or on account of, the principal of and interest
on the Bond and for all other purposes, and payments so made to a registered owner or upon 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
transfer or exchange of Bonds sufficient to reimburse the Registrar for any tax, fee or other
governmental charge required to be paid with respect to the transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is destroyed,
stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity date and tenor in
exchange and substitution for and upon cancellation of the mutilated Bond or in lieu of and in
substitution for any Bond destroyed, stolen or lost, upon the payment of the reasonable expenses and
charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost,
upon filing with the Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost,
and of the ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in
form, substance and amount satisfactory to it and as provided by law, in which both the Authority 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 Authority. If the mutilated, destroyed,
stolen or lost Bond has already matured or been called for redemption in accordance with its terms it is
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RESOLUTION 2015-02
not necessary to issue a new Bond prior to payment.
2.04. Appointment of Initial Registrar. The Authority appoints U.S. Bank National Association, St.
Paul, Minnesota, as the initial Registrar. The Chair and the Executive Director are authorized to
execute and deliver, on behalf of the Authority, a contract with the Registrar. Upon merger or
consolidation of the Registrar with another corporation, if the resulting corporation is a bank or trust
company authorized by law to conduct such business, the resulting corporation is authorized to act as
successor Registrar. The Authority agrees to pay the reasonable and customary charges of the Registrar
for the services performed. The Authority reserves the ri
notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar
must deliver all cash and Bonds in its possession to the successor Registrar and must deliver the bond
register to the successor Registrar. On or before each principal or interest due date, without further
order of this Board, the Executive Director must transmit to the Registrar moneys sufficient for the
payment of all principal and interest then due.
2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the direction of the
Executive Director and executed on behalf of the Authority by the signatures of the Chair and
Executive Director, provided that those signatures may be printed, engraved or 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 a Bond, that signature or 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 any 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 representative. 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 Executive 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. Temporary Bonds. The Authority may elect to deliver in lieu of printed definitive Bonds one
or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such changes
as may be necessary to reflect more than one maturity in a single temporary bond. Upon the execution
and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and cancelled.
Section 3. Form of Bond.
3.01. Form of Bond. The Bonds will be printed or typewritten in substantially the form attached
hereto as Exhibit B.
3.02. Approving Legal Opinion. The Executive Director of the Authority 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 opinion to
be printed on or accompany each Bond.
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RESOLUTION 2015-02
Section 4. Bonds; Security; Escrow.
4.01. Funds and Accounts. For the convenience and proper administration of the moneys to be
borrowed and repaid on the Bonds and the Refunded Bonds (as defined in the resolution providing for
the issuance and sale of the Bonds), and to provide adequate and specific security for the Purchaser and
holders from time to time of the Bonds and Refunded Bonds, there is hereby created a special fund to
be designated the General Obligation Tax Increment Refunding Bonds, Series 2015A Fund
(the he Treasurer as a bookkeeping account separate
and apart from all other funds maintained in the official financial records of the Authority. The Fund
will be maintained in the manner herein specified until all of the Refunded Bonds have been paid and
until all of the Bonds and the interest thereon will have been fully paid. There will be maintained in the
Fund two separate accounts, to be designated the Escrow Account and Debt Service Account.
(a) Escrow Account. The Escrow Account will be maintained as an Escrow Account
(the
financial institution within the State, whose deposits are insured by the Federal Deposit Insurance
Corporation, whose combined capital and surplus is not less than $500,000 and said financial institution
is hereby designated escrow agent (the
sale of the Bonds (less amounts deposited in the Debt Service Account under Section 4.01(b) or used to
pay costs of issuance) will be received by the Escrow Agent and applied to fund the Escrow Account.
Such net proceeds are hereby irrevocably pledged and appropriated to the Escrow Account, together
with all investment earnings thereon. The Escrow Account will be invested in securities maturing or
callable at the option of the holder on such dates and bearing interest at such rates as will be required to
provide sufficient funds, together with any cash or other funds retained in the Escrow Account, to pay
when due prior to February 1, 2017 (the the interest accruing on each Bond, and
to pay on the Redemption Date the principal amount of each of the Refunded Bonds then outstanding.
From the Escrow Account there will be paid (i) all interest paid on, or to be paid on, or to accrue on,
the Bonds to and including the Redemption Date, and (ii) the principal of the Refunded Bonds due by
reason of redemption on the Redemption Date. The Escrow Account will be irrevocably appropriated
to the payment of the principal of and interest on the Bonds until the proceeds of the Bonds therein are
applied to prepayment of the Refunded Bonds. The moneys in the Escrow Account will be used solely
for the purposes herein set forth and for no other purpose, except that any surplus in the Escrow
Account may be remitted to the Authority, all in accordance with the Escrow Agreement (hereafter
defined) by and between the Authority and the Escrow Agent. Any moneys remitted to the Authority
upon termination of the Escrow Agreement will be deposited in the Debt Service Account.
(b) Debt Service Account. To the Debt Service Account there is hereby pledged and irrevocably
appropriated and there will be credited: (i) any balance remitted to the Authority upon the termination
of the Escrow Agreement; (ii) any balance remaining on February 2, 2017, in the Debt Service Fund
created by the Board of Commissioners resolution authorizing the issuance and sale of the Refunded
Bonds (the ii) Tax Increments at the times and in the amounts sufficient to pay
the annual principal and interest payments of the Bonds; (iv) any collections of all taxes hereafter levied
in the event that the Tax Increments herein pledged to the payment of the principal and interest on the
Bonds are insufficient therefore; (v) all investment earnings on funds in the Debt Service Account; (vi)
accrued interest (if any) received upon delivery of the Bonds and any other proceeds of the Bonds, to
the extent not required to fund the Escrow Account; and (vii) any and all other moneys which are
properly available and are appropriated by the Board of Commissioners to the Debt Service Account.
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RESOLUTION 2015-02
The amount of any surplus remaining in the Debt Service Account when the Bonds and interest
thereon are paid will be used as provided in Section 475.61, Subdivision 4 of the Act.
4.02. Findings. It is hereby found and determined that based upon information presently available
e Bonds will result in a reduction of debt
service cost to the Authority on the Refunded Bonds, such that the present value of such debt service
or interest cost savings (the
The Reduction, after the inclusion of all authorized expenses of refunding in the computation of the
effective interest rate on the Bonds, is adequate to authorize the issuance of the Bonds as provided by
Minnesota Statutes, Section 475.67, Subdivisions 12 and 13.
4.03. Investment of Funds. Moneys in the Debt Service Account will be used solely to pay the
principal of and interest on the Bonds or any other bonds hereafter issued and made payable from the
Fund. No portion of the proceeds of the Bonds will be used directly or indirectly to acquire higher
yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding
investments, except (i) for a reasonable temporary period until such proceeds are needed for the
purpose for which the Bonds were issued, and (ii) in addition to the above, in an amount not greater
than the lesser of 5% of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the
Bonds and any sums from time to time held in the Fund (or any other Authority account which will be
used to pay principal and interest to become due on the Bonds) in excess of amounts which under the
applicable federal arbitrage regulations may be invested without regard as to yield will not be invested at
a yield in excess of the applicable yield restrictions imposed by the arbitrage regulations on such
investments after taking into account any applicable temporary periods or minor portion made available
under the federal arbitrage regulations. In addition, the proceeds of the Bonds and money in the Fund
will not be invested in obligations or deposits issued by, guaranteed by or insured by the United States
or any agency or instrumentality thereof if and to the extent that such investment would cause the
Bonds to be federally guaranteed within the meaning of Section 149(b) of the Internal Revenue Code of
1986, as amended (the
4.04. General Obligation Pledge.. For the prompt and full payment of the principal and interest on
the Bonds, as the same respectively become due, pursuant to Ordinance No. XVII.106, approved by
the Rosemount City Council on August 7, 2001, the full faith, credit and taxing powers of the City of
e in the
Escrow Account or Debt Service Account is ever insufficient to pay all principal and interest then due
on the Bonds and any other bonds payable therefrom, the deficiency will be promptly paid out of
monies in the general fund of the Authority which are available for such purpose, and such general fund
may be reimbursed with or without interest from the Escrow Account or Debt Service Account when a
sufficient balance is available therein. To the extent that it shall ever be necessary to provide for full and
timely payment of the debt service on the Bonds, the Authority shall, pursuant to the authority
heretofore described in this paragraph, levy an ad valorem tax upon all taxable property within the City
of Rosemount, Minnesota, sufficient for such purposes.
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RESOLUTION 2015-02
4.05. Pledge of Tax Increments. It is hereby determined that the estimated collection of available
Tax Increments for payment of principal and interest on the Bonds will produce at least five percent in
excess of the amount needed to meet, when due, the principal and interest payments on the Bonds and
that no tax levy is needed at this time.
4.06. Filing. The Executive Director is authorized and directed to file a certified copy of this
resolution with the County Auditor of Dakota County and to obtain the certificate required by Section
475.63 of the Act.
Section 5. Refunding; Findings; Redemption of Refunded Bonds.
5.01. Deposit of Funds. As of the date of delivery of and payment for the Bonds proceeds of the
Bonds, plus accrued interest on the Bonds less necessary expenses of the issuance of the Bonds
(the
Proceeds of the Bonds in excess of amount needed to fund the Escrow Account and pay costs of
issuance are appropriated to the Debt Service Account in accordance with Section 4.01(b).
5.02. Payment of Bonds and Refunded Bonds. It is hereby found and determined that money
available and appropriated to the Escrow Account will be sufficient, together with the permitted
earnings on the investment of the Escrow Account, to pay principal of and interest on the Bonds
through the Redemption Date, and to pay at maturity or redemption all of the principal of and
redemption premium (if any) on the Refunded Bonds maturing after the Redemption Date.
5.03. Permitted Investments. Securities purchased from the monies in the Escrow Account will be
limited to securities specified in Section 475.67, Subdivision 8 of the Act. Springsted Incorporated, as
agent for the Authority is hereby authorized and directed to purchase for and on behalf of the
Authority and in its name, appropriate securities to fund the Escrow Account. Upon the issuance and
delivery of the Bonds, the securities so purchased will be deposited with the Escrow Agent and held
pursuant to the terms of the Escrow Agreement and the Resolution.
5.04. Notice of Redemption.. The Refunded Bonds maturing on February 1, 2024 and thereafter will
be redeemed and prepaid on February 1, 2017 Redemption Date. The Refunded Bonds will be
redeemed and prepaid in accordance with their terms and in accordance with the terms and conditions
set forth in the form of Notice of Call for Redemption attached hereto as EXHIBIT B to the Escrow
Agreement which terms and conditions are hereby approved and incorporated herein by reference.
The Registrar for the Refunded Bonds is authorized and directed to send a copy of the Notice of
Redemption to each registered holder of the Refunded Bonds.
5.05. Escrow Agreement. On or prior to the delivery of the Refunding Bonds, the Chair and
Executive Director are hereby authorized and directed to execute on behalf of the Authority an escrow
agreement (the n file with
the Executive Director. All essential terms and conditions of the Escrow Agreement including
payment by the Authority of reasonable charges for the services of the Escrow Agent, are hereby
approved and adopted and made a part of this resolution, and the Authority covenants that it will
promptly enforce all provisions thereof in the event of default thereunder by the Escrow Agent.
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Section 6. Authentication of Transcript.
6.01. Authority Proceedings and Records. The officers of the Authority are authorized and directed
to prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of
proceedings and records of the Authority relating to the Bonds and to the financial condition and
affairs of the Authority, and such other 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 representations of the Authority as to the facts stated therein.
6.02. Certificate as to Official Statement. The Chair, Executive Director and Treasurer 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 therein as of the date of the Official Statement.
Section 7. Tax Covenant.
7.01. Tax Exempt Bonds. The Authority 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
thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees or
agents to take, all affirmative action within its power that may be necessary to ensure that such interest
will not become subject to taxation under the Code and applicable Treasury Regulations, as presently
existing or as hereafter amended and made applicable to the Bonds.
7.02. Rebate. The Authority 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,
limitations on amounts invested at a yield greater than the yield on the Bonds and the rebate of excess
investment earnings to the United States.
7.03. Not Private Activity Bonds. The Authority 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
7.04. Qualified Tax Exempt Obligation-exempt
Authority makes the following
factual statements and representations:
(a)
(b) -
of Section 265(b)(3) of the Code;
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RESOLUTION 2015-02
(c) the reasonably anticipated amount of t ax-exempt obligations (other than private activity bonds,
that are not qualified 501(c)(3) bonds) which will be issued by the Authority (and all subordinate entities
of the Authority) during calendar year 2015 will not exceed $10,000,000; and
(d) not more than $10,000,000 of obligations issued by the Authority during calendar year 2015
have been designated for purposes of Section 265(b)(3) of the Code.
7.05. Procedural Requirements. The Authority will use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate the designations made by this section.
Section 8. Book-Entry System; Limited Obligation of Authority.
8.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten or printed
fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial issuance,
the ownership of each such 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
be registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of
DTC.
8.02. Participants. With respect to Bonds registered in the registration books kept by the Registrar in
the name of Cede & Co., as nominee of DTC, the Authority, 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
person on behalf of which a Participant holds an interest in the Bonds, including but not limited to any
responsibility or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any
Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any Participant 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 (iii) 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 Authority, the Registrar and
the Paying Agent may treat and consider the person in whose name each Bond is registered in the
registration books kept by the Registrar as the holder and absolute 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 for all other purposes. The Paying Agent will pay 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
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. Upon delivery by
DTC to the Authority Executive Director of a written notice to the effect that DTC has determined to
nominee of DTC; and upon receipt of such a notice, the Authority Executive Director will promptly
deliver a copy of the same to the Registrar and Paying Agent.
8.03. Representation Letter. The Authority has heretofore executed and delivered to DTC a Blanket
Issuer Letter of Representations (the
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RESOLUTION 2015-02
of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying
Agent or Registrar subsequently appointed by the Authority with respect to the Bonds will agree to take
all action necessary for all representations of the Authority in the Representation letter with respect to
the Registrar and Paying Agent, respectively, to be complied with at all times.
8.04. Transfers Outside Book-Entry System. In the event the Authority, by resolution of the Board
of Commissioners, determines that it is in the best interests of the persons having beneficial interest, in
the Bonds that they be able to obtain Bond certificates, the Authority will notify DTC, whereupon
DTC will notify the Participants, of the availability through DTC of Bond certificates. In such event
the Authority will issue, transfer and exchange Bond certificates as requested by DTC and any other
registered owners in accordance with the provisions of this Resolution. DTC may determine to
discontinue providing its services with respect to the Bonds at any time by giving notice to the
Authority and discharging its responsibilities with respect thereto under applicable law. In such event, if
no successor securities depository is appointed, the Authority 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.
8.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to the
contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments
with respect to principal of, premium, if any, and interest on the Bond and notices with respect to the
Bond will be made and given, respectively in
Arrangements, as set forth in the Representation Letter.
Section 9. Continuing Disclosure.
9.01. Authority Compliance with Provisions of Continuing Disclosure Certificate. The Authority
hereby covenants and agrees that it will comply with and carry out all of the provisions of the
Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution, failure of
the Authority to comply with the Continuing Disclosure Certificate is not to be considered an event of
default with respect to the Bonds; however, any Bond holder may take such actions as may be necessary
and appropriate, including seeking mandate or specific performance by court order, to cause the
Authority to comply with its obligations under this section.
9.02. Execution of Continuing Disclosure Certificate
that certain Continuing Disclosure Certificate executed by the Chair and Executive Director and dated
the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from
time to time in accordance with the terms thereof.
9.03. Compliance with Provisions of Continuing Disclosure Certificate. The Authority hereby
covenants and agrees that it will comply with and carry out all of the provisions of the Continuing
Disclosure Certificate. The Chair and Executive Director are authorized to execute the Continuing
Disclosure Certificate on behalf of the Authority. Notwithstanding any other provision of this
Resolution, failure of the Authority 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 Authority to comply with its obligations under this section.
468196v1 JSB RS125-18
10
RESOLUTION 2015-02
9.04. City Approval. The Authority hereby requests the City, at the meeting of the City Council on
this date, to approve and consent to the issuance of the Bonds, their date, denominations, place of
payment, form and other details, as required by Minnesota Statutes, Section 469.060, and the issuance
of the Bonds pursuant to this Resolution shall be subject to and contingent upon such consent and
approval. The Authority also request the City to execute the Continuing Disclosure Certificate.
Section 10. Defeasance.
10.01. 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 Authority for the prompt and full
payment of the principal of and interest on the Bonds will remain in full force and effect. The
Authority may discharge all Bonds which are due on any date by depositing with the Registrar on or
before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid when
due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment
thereof in full with interest accrued to the date of such deposit.
468196v1 JSB RS125-18
11
RESOLUTION 2015-02
ADOPTED this 20th day of October, 2015.
Jeff Weisensel, Chair
ATTEST:
________________________
Dwight Johnson, Executive Director
468196v1 JSB RS125-18
12
RESOLUTION 2015-____
CERTIFICATE
STATE OF MINNESOTA )
COUNTY OF DAKOTA ) ss
ROSEMOUNT PORT AUTHORITY )
I am the duly appointed, acting and qualified Executive Director of the Rosemount Port Authority
do hereby certify that I have examined the Rosemount Port Authority records and the Minute Book
of said Authority for the meeting of the 20th of October, 2015 and that the attached copy of the
Resolution 2015-___ RESOLUTION AWARDING THE SALE OF $3,460,000 GENERAL
OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2015A; AND
PROVIDING FOR THEIR ISSUANCE was approved and is a true and correct copy of the
Authority Proceedings relating to said Resolution.
IN WITNESS WHEREOF, I have hereunto set my hand and seal of said Authority this ____ day
of ______________, 2015.
Executive Director
Rosemount Port Authority
Dakota County, Minnesota
468196v1 JSB RS125-18
RESOLUTION 2015-____
EXHIBIT A
PROPOSALS
A-1
RESOLUTION 2015-____
EXHIBIT B
FORM OF BOND
No. R-____ UNITED STATES OF AMERICA $__________
STATE OF MINNESOTA
COUNTY OF DAKOTA
ROSEMOUNT PORT AUTHORITY
GENERAL OBLIGATION TAX INCREMENT REFUNDING BOND,
SERIES 2015A
Date of
Rate Maturity Original Issue CUSIP
__________, 20__ __________, 2015
Registered Owner: Cede & Co.
The Rosemount Port Authority, Minnesota, a duly organized and existing politic subdivision
corporation in Dakota County, Minnesota (the
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 without option of prior payment,
with interest thereon from the date hereof at the annual rate specified above, payable February 1 and
August 1 in each year, commencing August 1, 2016, 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 are payable in lawful money of the United States of America by check or draft by U.S.
Bank National Association, St. Paul, Minnesota, as Registrar, Paying Agent, Transfer Agent and
Authenticating 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 full
faith and credit and taxing powers of the Authority have been and are hereby irrevocably pledged.
The Board of Commissioners has designated the issue of Bonds of which this Bond forms a part as
Code of 1986, as amended (the
This Bond is one of an issue in the aggregate principal amount of $3,460,000 all of like original issue
date and tenor, except as to number, maturity date, and interest rate, all issued pursuant to a resolution
adopted by the Board of Commissioners on October 20, 2015 (the
providing money to refund in advance of maturity the General Obligation Tax Increment Bonds, Series
2008B of the Authority pursuant to and in full conformity with the Constitution and laws of the State
468196v1 JSB RS125-18 B-1
RESOLUTION 2015-____
of Minnesota, including Minnesota Statutes, Sections 475.67, Subdivision 13 and Section 469.060.
Pursuant to a certain resolution adopted by the City Council of the City of Rosemount, Minnesota (the
October 20, 2015, specifically approving and consenting to the issuance and details of the
Bonds; and pursuant to Minnesota Statutes, Section 469.060, this Bond constitutes a general obligation
out of the Escrow Account aTax
Increment Refunding Bonds, Series 2015A Debt Service Fund 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 Board of Commissioners has
obligated itself to levy ad valorem taxes on all taxable property in the City, which taxes may be levied
without limitation as to rate or amount. The Bonds of this series are issued only as fully 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 Authority at the principal office of the Registrar, by the registered
together with a written instrument of transfer satisfactory to the Registrar, duly executed by the
authorized denominations. Upon such transfer or exchange the Authority 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 reimbursement for
any tax, fee or governmental charge required to be paid with respect to such transfer or exchange.
The Authority 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 Authority nor the Registrar will be affected by any
notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the Constitution and 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 general obligation of the Authority in accordance with its terms, have been done, do
exist, have happened and have been performed as so required, and that the issuance of this Bond does
not cause the indebtedness of the Authority to exceed any constitutional, or statutory limitation of
indebtedness.
This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the
Resolution until the Certificate of Authentication hereon has been executed by the Registrar by manual
signature of one of its authorized representatives.
468196v1 JSB RS125-18 B-2
RESOLUTION 2015-____
IN WITNESS WHEREOF, the Rosemount Port Authority, Dakota County, Minnesota, by its Board
of Commissioners, has caused this Bond to be executed on its behalf by the facsimile or manual
signatures of the Chair and Executive Director and has caused this Bond to be dated as of the date set
forth below.
Dated: _______________________
ROSEMOUNT PORT AUTHORITY,
MINNESOTA
(Facsimile) (Facsimile)
Executive Director Chair
468196v1 JSB RS125-18 B-3
RESOLUTION 2015-____
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
By
______________________________________
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 ACT _________ Custodian _________
in common (Cust) (Minor)
TEN ENT -- as tenants under Uniform Gifts or
by entireties Transfers to Minors
JT TEN -- as joint tenants with
right of survivorship and Act . . . . . . . . . . . .
not as tenants in common (State)
Additional abbreviations may also be used though not in the above list.
______________________________________
ASSIGNMENT
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:
appears upon the face of the within Bond in every particular, without alteration
or any change whatever.
Signature Guaranteed:
________________________________
468196v1 JSB RS125-18 B-4
RESOLUTION 2015-____
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities
STAMP, 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 Address:
(Include information for all joint owners if this Bond
is held by joint account.)
Please insert social security or other identifying
number of assignee
468196v1 JSB RS125-18 B-5
RESOLUTION 2015-____
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on the books of
the Registrar in the name of the person last noted below.
Date of Registration Registered Owner Signature of Registrar
Cede & Co.
Federal ID #13-2555119
468196v1 JSB RS125-18 B-6
CROSSOVER REFUNDING ESCROW AGREEMENT
General Obligation Tax Increment Bonds, Series 2008B
THIS CROSSOVER REFUNDING ESCROW AGREEMENT, dated November 19,
2015, made pursuant to Minnesota Statutes, Section 475.67, Subdivision 13 (the Act) and
executed by and between the Rosemount Port Authority, Dakota County, Minnesota
(the Authority), and U.S. Bank National Association, St. Paul, Minnesota, a banking
corporation whose deposits are insured by the Federal Deposit Insurance Corporation and whose
capital and surplus is not less than $500,000 (the Escrow Agent):
WITNESSETH: That the parties hereto recite and, in consideration of the mutual
covenants contained herein, covenant and agree as follows:
1. The Authority, in accordance with a resolution adopted by its governing body on
October 20, 2015, entitled Resolution Awarding the Sale of $3,460,000 General Obligation Tax
Increment Refunding Bonds, Series 2015A; Fixing Their Form and Specifications; Directing
Their Execution and Delivery; Providing for Their Payment; and Providing for the Redemption
of Bonds Refunded Thereby (the Resolution), a certified copy of which has been filed with
the Escrow Agent, has provided for the refunding of the Authority $3,275,000 General
Obligation Tax Increment Bonds, Series 2008B, dated April 10, 2008, of which $3,275,000 in
principal amount is subject to redemption and prepayment on February 1, 2017 (the Refunded
Bonds), by the issuance and sale of refunding obligations, designated as General Obligation
Tax Increment Refunding Bonds, Series 2015A (the Refunding Bonds).
2. The Authority has also, in accordance with the Resolution, issued and sold the
Refunding Bonds in the principal amount of $3,460,000, and has received proceeds of the
Refunding Bonds in the amount of $_______ (par amount of the Refunding Bonds of $_____,
plus a premium/discount of $________ less underwriters discount of $________). The City
has deposited proceeds of the Bonds in the amount of $___________ to the Escrow Account (as
defined herein) to be allocated as follows: (i) the amount of $__________ shall be invested in
securities which are general obligations of the United States, securities whose principal and
interest payments are guaranteed by the United States, and securities issued by agencies of the
Escrow Verification
ExhibitA
Report which is attached hereto, marked and made a part hereof; and (ii) the amount
of $________ to be held by the Escrow Agent as the initial cash deposit in the Escrow Account
to remain uninvested. The Federal Securities and initial cash deposit will be irrevocably
deposited with the Escrow Agent on the date of this Agreement. It is understood and agreed that
the dates and amounts of payments of principal and interest due on the Federal Securities so
Exhibit A
deposited are as indicated in , and that the principal and interest payments due on such
securities together with the initial cash deposit are such as to provide the funds required to pay
all interest payable on the Refunding Bonds to the date on which any of the Refunded Bonds
469353v1 JSB RS125-18
have been directed to be prepaid, as stated in the Resolution and to pay the redemption price of
the Refunded Bonds on such date.
3. The Federal Securities have been irrevocably deposited with the Escrow Agent
who acknowledges receipt of the deposits described in paragraph 2 hereof and agrees that it will
hold such amounts, in a special escrow account (the Escrow Account) created by the
Resolution in the name of the Authority, and will collect and receive on behalf of the Authority
all payments of principal of and interest on any investment of such amounts and securities and
will remit from the Escrow Account (i) to the paying agent (the Paying Agent) for the
Refunding Bonds the funds required for the payment, when due, of interest on the Refunding
Bonds to the date of the redemption of the Refunded Bonds which is February 1, 2017
(the Redemption Date); and (ii) to the Paying Agent for the Refunded Bonds the funds needed
for the redemption and prepayment of the outstanding principal amount of the Refunded Bonds
on the Redemption Date. After provision for payment of all remaining Refunded Bonds, the
Escrow Agent will remit any remaining funds in the Escrow Account to the Authority.
4. In order to ensure continuing compliance with the Internal Revenue Code of
1986, as amended, and regulations promulgated thereunder (collectively, the Code), the
Escrow Agent agrees that it will not invest any cash deposits or reinvest any cash received in
payment of the principal of and interest on the Federal Securities held in the Escrow Account
unless and until an opinion is received by the Escrow Agent from nationally recognized bond
counsel that reinvestments, as specified in said opinion, may be made in a manner consistent
with the Code. Reinvestment, if any, of amounts in the Escrow Account made pursuant to this
paragraph may be made only at the further direction of the City Finance Director and in
securities maturing or callable at the option of the holder on such dates and bearing interest at
such rates as will be required to provide sufficient funds, together with any cash or other funds
retained in the Escrow Fund, to pay when due the interest to accrue on the Refunding Bonds, and
to pay when due on the Redemption Date, the principal amount of the Refunded Bonds then
outstanding. Securities purchased from the monies in the Escrow Fund will be limited to
securities specified in Minnesota Statutes, Section 475.67, Subdivision 8. The Escrow Agent, as
agent for the Authority, shall purchase any such securities for and on behalf of the Authority and
in its name.
5. The Escrow Agent expressly waives any lien upon or claim against the moneys
and investments in the Escrow Account.
6. If at any time it shall appear to the Escrow Agent that the money in the Escrow
Account allocable for such use hereunder will not be sufficient to make any interest payment due
to the holders of any of the Refunding Bonds, or principal payment due to the holders of any of
the Refunded Bonds, the Escrow Agent shall immediately notify the Authority. The Authority
thereupon shall forthwith deposit in Escrow Account from funds on hand and legally available to
it such additional funds as may be required to meet fully the amount to become due and payable.
The Authority acknowledges its obligation to levy ad valorem taxes on all taxable property in the
Authority to the extent required to produce moneys necessary for this purpose. The Authority
and Escrow Agent acknowledge receipt of a verification report from
2
469353v1 JSB RS125-18
__________________________ certified public accountants, dated November __, 2015, which
Exhibit A
is attached hereto, marked and made a part hereof, to the effect that such cash and
securities are sufficient to comply with the requirements of the Act.
7. The Authority will not repeal or amend the Resolution which calls the Refunded
Bonds for redemption on the Redemption Date. The Escrow Agent shall cause the Notice of
Exhibit B
Call for Redemption attached hereto as to be mailed not more than 60 days prior to the
Redemption Date to the paying agent for the Refunded Bonds for the purpose of giving notice
not less than 30 days prior to the Redemption Date to the registered owners of the Refunded
Bonds to be redeemed, at their addresses appearing in the bond register and also to the bank at
which the principal and interest on the Refunded Bonds are then payable.
8. Within 30 days after December 31, 2015, and each December 31 thereafter until
termination of the Escrow Account, the Escrow Agent shall submit to the Authority a report
covering all money it shall have received and all payments it shall have made or caused to be
made hereunder during the preceding 12 months. Such report shall also list all obligations held
in the Escrow Account and the amount of money on hand in the Escrow Account on the last day
of December of each year.
9. It is recognized and agreed that title to the Federal Securities and cash, if any,
held in the Escrow Account from time to time shall remain vested in the Authority but subject
always to the prior charge and lien thereon of this Agreement and the use thereof required to be
made by this Agreement. The Escrow Agent shall hold all such money and obligations in a
special trust fund and account separate and wholly segregated from all other funds and securities
of the Escrow Agent, and shall never commingle such money or securities with other money or
securities; provided, however, that nothing herein contained shall be construed to require the
Escrow Agent to keep the identical monies, or any part thereof, received for the Escrow Account
on hand, but moneys of an equal amount (except to the extent such are represented by
investments permitted under this Agreement) shall always be maintained on hand as funds held
by the Escrow Agent, belonging to the Authority, and a special account shall at all times be
maintained on the books of the Escrow Agent, together with such investments. In the event of
the Escrow Agents failure to account for any money or obligations held by it in the Escrow
Account, such money and obligations shall be and remain the property of the Authority. It is
understood and agreed that the responsibility of the Escrow Agent under this Agreement is
limited to the safekeeping and segregation of the funds and securities deposited with it in the
Escrow Account, and the collection of and accounting for the principal and interest payable with
respect thereto , the reinvestment of certain funds in Federal Securities to the extent not being
held as uninvested cash and the remittance of the funds to the paying agent as provided in this
Agreement.
10. This Agreement is made by the Authority for the benefit of the holders of the
Refunded Bonds, and is not revocable by the Authority, and the investments and other funds
deposited in the Escrow Account and all income therefrom have been irrevocably appropriated
for the payment of the callable principal amount of the Refunded Bonds at the Redemption Date
and interest on the Refunding Bonds to the Redemption Date in accordance with this Agreement.
3
469353v1 JSB RS125-18
11. This Agreement shall be binding upon and shall inure to the benefit of the
Authority and the Escrow Agent and their respective successors and assigns. In addition, this
Agreement shall constitute a third party beneficiary contract for the benefit of the holders of the
Refunded Bonds and said third party beneficiaries shall be entitled to enforce performance and
observance by the Authority and the Escrow Agent of the respective agreements and covenants
herein contained as fully and completely as if said third party beneficiaries were parties hereto.
Any bank into which the Escrow Agent may be merged or with which it may be consolidated or
any bank resulting from any merger or consolidation to which it shall be a party or any bank to
which it may sell or transfer all or substantially all of its corporate trust business shall, if the
Authority approves, be the successor agent without the execution of any document or the
performance of any further act.
12. The Escrow Agent may at any time resign and be discharged of its obligations
hereunder by giving to the Executive Director of the Authority written notice of such resignation
not less than 60 days before the date when the same is to take effect, provided that the Escrow
Agent shall return to the Authority the pro rata portion of its fee which is allocable to the period
of time commencing on the effective date of such resignation. Such resignation shall take effect
upon the date specified in the notice, or upon the appointment and qualification of a successor
prior to that date. In the event of such resignation, a successor shall promptly be appointed by
the Authority, and the Executive Director of the Authority shall immediately give written notice
thereof to the predecessor escrow agent and publish the notice in the manner described in this
paragraph 12. If, in a proper case, no appointment of a successor agent is made within 45 days
after the receipt by the Authority of notice of such resignation, the Escrow Agent or the holder of
any Refunded Bond may apply to any court of competent jurisdiction to appoint a successor
escrow agent, which appointment may be made by the Court after such notice, if any, as the
Court may prescribe. Any successor escrow agent appointed hereunder shall execute,
acknowledge and deliver to its predecessor escrow agent and to the Authority a written
acceptance of such appointment, and shall thereupon without any further act, deed or conveyance
become fully vested with all moneys, properties, duties and obligations of its predecessor, but the
predecessor shall nevertheless pay over, transfer, assign and deliver all moneys, securities or
other property held by it to the successor escrow agent, shall execute, acknowledge and deliver
such instruments of conveyance and do such other things as may reasonably be required to vest
and confirm more fully and certainly in the successor escrow agent all right, title and interest in
and to any property held by it hereunder. Any bank into which the Escrow Agent may be
merged or with which it may be consolidated or any bank resulting from any merger or
consolidation to which it shall be a party or any bank to which it may sell or transfer all or
substantially all of its corporate trust business shall, if the Authority approves, be the successor
escrow agent without the execution of any document or the performance of any further act.
13. The Escrow Agent acknowledges receipt of the sum of $_____ as its full
compensation for its services to be performed under this Agreement.
14. The duties and obligations of the Agent shall be as prescribed by the provisions of
this Agreement and the Agent shall not be liable hereunder except for failure to perform its
4
469353v1 JSB RS125-18
duties and obligations as specifically set forth herein or to act in good faith in the performance
thereof and no implied duties or obligations shall be incurred by the Agent other than those
specified herein.
15. Any notice, authorization, request or demand required or permitted to be given in
accordance with the terms of this Agreement shall be in writing and sent by registered or
certified mail addressed:
If to the Authority: Rosemount Port Authority
th
2875 145 Street West
Rosemount, Minnesota 55068-4997
Attn: _______________
If to the Escrow Agent: U.S. Bank National Association
Corporate Trust Services
EP-MN-WS3C
rd
60 Livingston Avenue, 3 Floor
Saint Paul, Minnesota 55107
Attn: Corporate Trust Department
16. The exhibits which are a part of this Agreement are as follows:
Exhibit A Escrow Verification Report
Exhibit B Notice of Call for Redemption
5
469353v1 JSB RS125-18
IN WITNESS WHEREOF the parties hereto have caused this instrument to be duly
executed by their duly authorized officers, in counterparts, each of which is deemed to be an
original agreement, on this ______ day of November, 2015.
ROSEMOUNT PORT AUTHORITY,
MINNESOTA
By
Its Chair
By
Its Executive Director
Security Advice Waiver:
The Authority acknowledges that to the extent regulations of the Comptroller of the Currency or
any other regulatory entity grant the Authority the right to receive brokerage confirmations of the
security transactions as they occur, the Authority specifically waives receipt of such
confirmations to the extent permitted by law. The Escrow Agent will furnish the Authority with
period cash transaction statements that include the detail for all investment transactions made by
the Escrow Agent for all current and future accounts.
IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW
ACCOUNT:
To help the government fight the funding of terrorism and money laundering activities, Federal
law requires all financial institutions to obtain, verify and record information that identifies each
person who opens an account. For a non-individual person such as a business entity, a charity, a
Trust or other legal entity we will ask for documentation to verify its formation and existence as
a legal entity. We may also ask to see financial statements, licenses, and identification and
authorization documents from individuals claiming authority to represent the entity or other
relevant documentation.
(Signature Page to the Crossover Refunding Escrow Agreement)
S-1
469353v1 JSB RS125-18
U.S. BANK NATIONAL ASSOCIATION
By
Its Corporate Trust Officer
(Signature Page to the Refunding Escrow Agreement)
S-2
469353v1 JSB RS125-18
EXHIBIT A
ESCROW VERIFICATION REPORT
A-1
469353v1 JSB RS125-18
EXHIBIT B
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION TAX INCREMENT BONDS, SERIES 2008B
ROSEMOUNT PORT AUTHORITY
DAKOTA COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that, by order of the Board of Commissioners of the
Rosemount Port Authority, Dakota County, Minnesota, there have been called for redemption and
prepayment on
February 1, 2017
all outstanding bonds of the Authority designated as General Obligation Tax Increment Bonds,
Series 2008B, dated, April 10, 2008, having stated maturity dates of February 1 in the years 2024
through 2032, both inclusive, totaling $3,275,000 in principal amount, and with the following
CUSIP numbers:
Year of Maturity Amount CUSIP
2025* $385,000 777602 ET6
2026 365,000 777602 EU3
2027 380,000 777602 EV1
2032* 2,145,000 777602 FA6
*Term Bond
The bonds are being called at a price of par plus accrued interest to February 1, 2017, on
which date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for
redemption are requested to present their bonds for payment at the main office of U.S. Bank
National Association, in the City of St. Paul, Minnesota, on or before February 1, 2017, at the
following address:
If by mail: If by hand:
60 Livingston Avenue
60 Livingston Avenue -
EP-MN-WS3C
St. Paul, MN 55107
Important Notice: In compliance with the Jobs and Growth Tax Relief Reconciliation Act
of 2003, federal backup withholding tax will be withheld at the applicable backup withholding rate
in effect at the time the payment by the redeeming institutions if they are not provided with your
social security number or federal employer identification number, properly certified. This
requirement is fulfilled by submitting a W-9 Form, which may be obtained at a bank or other
financial institution.
B-1
469353v1 JSB RS125-18
The Registrar will not be responsible for the selection or use of the CUSIP number, nor is
any representation made as to the correctness indicated in the Redemption Notice or on any Bond.
It is included solely for convenience of the Holders.
Additional information may be obtained from:
U.S. Bank National Association
Corporate Trust Division
Bondholder Relations (800) 934-6802
Dated: October 20, 2015
BY ORDER OF THE BOARD OF
COMMISSIONERS
B-2
469353v1 JSB RS125-18
PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 30, 2015
NEW AND REFUNDING ISSUES s: Requested
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n
BANK QUALIFIED
ta
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b
s
In the opinion of Kennedy & Graven, Chartered, Bond Counsel for the Bonds, based on present federal and Minnesota laws, regulations, rulings and decisions
u
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i
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t
(which excludes any pending legislation which may have a retroactive effect), and assuming compliance with certain covenants, interest to be paid on the Bonds is
i
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i
excluded from gross income for federal income tax purposes and, to the same extent, from taxable net income of individuals, estates and trusts for Minnesota
u
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e
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
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individuals, trusts, and estates. Such interest is taken into account in determining adjusted current earnings for the purpose of computing the federal alternative
e
a
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m
minimum tax imposed on certain corporations and is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income.
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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 Bonds or
f
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arising with respect to ownership of the Bonds. The Bonds will be designated as "qualified tax-exempt Bonds" for purposes of Section 265(b)(3) of the Internal
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The Series 2015B City Bonds 1,433,080
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available for delivery at DTC on or about November 19, 2015.
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PROPOSALS RECEIVED: October 20, 2015 (Tuesday) until 10:00 A.M., Central Time
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AWARD BY THE AUTHORITY: October 20, 2015 (Tuesday) at 6:00 P.M., Central Time
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AWARD BY THE CITY: October 20, 2015 (Tuesday) at 7:00 P.M., Central Time
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Further information may be obtained from SPRINGSTED Incorporated,
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Municipal Advisor to the City and the Authority, 380 Jackson Street, Suite
300, Saint Paul, Minnesota 55101-2887 (651)223-3000.
* Preliminary; subject to change.
City of Rosemount, Minnesota
$1,525,000* General Obligation Utility Revenue Bonds, Series 2015A
Series 2015A City Bonds
The will mature February 1 in the years and amounts* as follows:
2017 $140,000 2019 $145,000 2021 $150,000 2023 $155,000 2025 $160,000
2018 $145,000 2020 $150,000 2022 $155,000 2024 $160,000 2026 $165,000
The City may elect on February 1, 2024, and on any day thereafter, to prepay the Series 2015A City
Bonds due on or after February 1, 2025 at a price of par plus accrued interest.
$1,445,000* General Obligation Capital Improvement Plan Refunding Bonds, Series 2015B
Series 2015B City Bonds
The will mature February 1 in the years and amounts* as follows:
2017 $150,000 2020 $155,000 2023 $165,000
2018 $155,000 2021 $160,000 2024 $170,000
2019 $155,000 2022 $160,000 2025 $175,000
The City may elect on February 1, 2023, and on any day thereafter, to prepay the Series 2015B City
Bonds due on or after February 1, 2024 at a price of par plus accrued interest.
Port Authority of Rosemount, Minnesota
$3,460,000* General Obligation Tax Increment Refunding Bonds, Series 2015A
Authority Bonds
The will mature February 1 in the years and amounts* as follows:
2018 $20,000 2021 $25,000 2024 $ 60,000 2027 $390,000 2030 $425,000
2019 $20,000 2022 $25,000 2025 $375,000 2028 $400,000 2031 $435,000
2020 $20,000 2023 $25,000 2026 $380,000 2029 $410,000 2032 $450,000
The Authority may elect on February 1, 2024, and on any day thereafter, to prepay the Authority Bonds
due on or after February 1, 2025 at a price of par plus accrued interest.
Common to all Issues
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.
* Preliminary; subject to change.
CITY OF ROSEMOUNT, MINNESOTA
CITY COUNCIL
William Droste Mayor
Mark DeBettignies Councilmember
Vanessa Demuth Councilmember
Shaun Nelson Councilmember
Jeff Weisensel Councilmember
CITY ADMINISTRATOR/ PORT AUTHORITY EXECUTIVE DIRECTOR
Dwight Johnson
FINANCE DIRECTOR
Jeffrey May
PORT AUTHORITY OF ROSEMOUNT, MINNESOTA
BOARD OF COMMISSIONERS
Jeff Weisensel Chair
Daniel Wolf Vice Chair
Mark DeBettignies Commissioner
William Droste Commissioner
Jamal Abdulahi Commissioner
Tom Luing Commissioner
Bob Smith Commissioner
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 or the Authority from time to time,
may be treated as a Preliminary Official Statement with respect to the Bonds described herein that is
deemed final as of the date hereof (or of any such supplement or correction) by the City or the Authority.
By awarding the Bonds to any underwriter or underwriting syndicate submitting a Proposal therefor, the
City and the Authority agree that, no more than seven business days after the date of such award, they
shall provide without cost to the senior managing underwriter of the syndicate to which Bonds are
awarded copies of the Final Official Statement in the amount specified in each Terms of Proposal.
No dealer, broker, salesman or other person has been authorized by the City or the Authority to give any
information or to make any representations with respect to the Bonds, 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 or the
Authority.
Certain information contained in the Preliminary Official Statement or the Final Official Statement may
have been obtained from sources other than records of the City or the Authority and, while believed to be
reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS
OF OPINION IN THE PRELIMINARY OFFICIAL STATEMENT AND THE FINAL OFFICIAL
STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE
PRELIMINARY OFFICIAL STATEMENT NOR THE FINAL OFFICIAL STATEMENT NOR ANY
SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT
THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE CITY OR THE AUTHORITY 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 Statement or the Final Official Statement, they will be furnished upon request.
Any CUSIP numbers for the Bonds included in the Final Official Statement are provided for convenience
of the owners and prospective investors. The CUSIP numbers for the Bonds are assigned by an
organization unaffiliated with the City or the Authority. The City or the Authority are not responsible for
the selection of the CUSIP numbers and makes no representation as to the accuracy thereof as printed on
the Bonds or as set forth in the Final Official Statement. No assurance can be given by the City or the
Authority that the CUSIP numbers for the Bonds will remain the same after the delivery of the Final
Official Statement or the date of issuance and delivery of the Bonds.
TABLE OF CONTENTS
Page(s)
Terms of Proposal:
$1,525,000* General Obligation Utility Revenue Bonds, Series 2015A ...................................... i-v
$1,445,000* General Obligation Capital Improvement Plan Refunding Bonds, Series 2015B.... vi-x
$3,460,000* General Obligation Tax Increment Refunding Bonds, Series 2015A ...................... xi-xv
Introductory Statement ....................................................................................................................... 1
Continuing Disclosure ....................................................................................................................... 1
The Bonds .......................................................................................................................................... 2
Rosemount Port Authority, Minnesota .............................................................................................. 5
The Series 2015A City Bonds ............................................................................................................ 5
The Series 2015B City Bonds ............................................................................................................ 6
The Authority Bonds .......................................................................................................................... 7
Future Financing ................................................................................................................................ 8
Litigation ............................................................................................................................................ 8
Legality .............................................................................................................................................. 8
Tax Exemption ................................................................................................................................... 8
Other Federal and State Tax Considerations ...................................................................................... 9
Bank-Qualified Tax-Exempt Obligations .......................................................................................... 10
Ratings ............................................................................................................................................... 10
Municipal Advisor ............................................................................................................................. 10
Certification ....................................................................................................................................... 10
City Property Values .......................................................................................................................... 11
City Indebtedness ............................................................................................................................... 12
City Tax Rates, Levies and Collections ............................................................................................. 16
Funds on Hand ................................................................................................................................... 17
Investments ........................................................................................................................................ 17
General Information Concerning the City ......................................................................................... 18
Governmental Organization and Services .......................................................................................... 24
Proposed Forms of Legal Opinions ........................................................................................ Appendix I
Continuing Disclosure Certificates ......................................................................................... Appendix II
Summary of Tax Levies, Payment Provisions, and
Minnesota Real Property Valuation ..................................................................................... Appendix III
Excerpt of 2014 Comprehensive Annual Financial Report .................................... Appendix IV
____________________________
* Preliminary; subject to change.
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,525,000*
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION UTILITY REVENUE BONDS, SERIES 2015A
(BOOK ENTRY ONLY)
Proposals for the Series 2015A City Bonds will be received on Tuesday, October 20, 2015, until
10:00A.M., Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300,
SaintPaul, Minnesota, after which time proposals will be opened and tabulated. Consideration for award
of the Series 2015A City Bonds will be by the City Council at7:00 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 Series 2015A City Bonds regardless of the manner in
which the proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to
Springsted. Signed proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final proposal price and
coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted proposal.
OR
®
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via PARITY.
®
For purposes of the electronic bidding process, the time as maintained by PARITY shall constitute the
®
official time with respect to all proposals submitted to PARITY. Each bidder 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 with the requirements of the Terms of proposal. Neither the City,
®
its agents nor PARITY shall have any duty or obligation to undertake registration to bid for any
prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and
®
neither the City, its agents nor PARITY shall
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 Series 2015A City Bonds, and
®
PARITY is not an agent of the City.
®
If any provisions of this Terms of proposal conflict with information provided by PARITY, this Terms
®
of proposal shall control. Further information about PARITY, including any fee charged, may be
obtained from:
®nd
PARITY, 1359 Broadway, 2 Floor, New York, New York 10018
Customer Support: (212) 849-5000
________________________________
*
Preliminary; subject to change.
- i -
DETAILS OF THE SERIES 2015A CITY BONDS
The Series 2015A City 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, 2016. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.
The Series 2015A City Bonds will mature February 1 in the years and amounts* as follows:
2017 $140,000 2019 $145,000 2021 $150,000 2023 $155,000 2025 $160,000
2018 $145,000 2020 $150,000 2022 $155,000 2024 $160,000 2026 $165,000
*
The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal
amount of the Series 2015A City 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 Series 2015A City 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 Series 2015A City 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
the proposal form.
BOOK ENTRY SYSTEM
The Series 2015A City Bonds will be issued by means of a book entry system with no physical
distribution of Series 2015A City Bonds made to the public. The Series 2015A City Bonds will be issued
in fully registered form and one Series 2015A City Bond, representing the aggregate principal amount of
the Series 2015A City Bonds maturing in each year, will be registered in the name of Cede & Co. as
will act as securities
depository of the Series 2015A City Bonds. Individual purchases of the Series 2015A City Bonds may be
made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries
made on the books and records of DTC and its participants. Principal and interest are payable by the
registrar to DTC or its nominee as registered owner of the Series 2015A City Bonds. Transfer of
principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of
principal and interest payments to beneficial owners by participants will be the responsibility of such
participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the
Series 2015A City Bonds, will be required to deposit the Series 2015A City 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, 2024, and on any day thereafter, to prepay Series 2015A City Bonds
due on or after February 1, 2025. 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 Series 2015A City Bonds of a
maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to
be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be
redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to
be redeemed. All prepayments shall be at a price of par plus accrued interest.
- ii -
SECURITY AND PURPOSE
The Series 2015A City Bonds will be general obligations of the City for which the City will pledge its full
faith and credit and power to levy direct general ad valorem taxes. In addition, the City will pledge net
. The proceeds will be used to finance the drilling of a water
well.
BIDDING PARAMETERS
Proposals shall be for not less than $1,508,225 plus accrued interest, if any, on the total principal amount
of the Series 2015A City 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 Series 2015A City Bonds is
adjourned, recessed, or continued to another date without award of the Series 2015A City 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. Series 2015A City Bonds of the same maturity shall bear a single
rate from the date of the Series 2015A City Bonds to the date of maturity. No conditional proposals will
be accepted.
GOOD FAITH DEPOSIT
To have its proposal considered for award, the lowest bidder is required to submit a good faith deposit to
the City in the amount of $15,250 1:00 P.M., Central Time on the day of
check payable to the City; or (ii) a wire transfer. The lowest bidder shall be solely responsible for the
timely delivery of their Deposit whether by check or wire transfer. Neither the City nor
SpringstedIncorporated have any liability for delays in the receipt of the Deposit. If the Deposit is not
received by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder,
direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder.
eck will be considered timely
delivered to the City if it is made payable to the City and delivered to Springsted Incorporated,
380 Jackson Street, Suite 300, St. Paul, Minnesota 55101 by the specified time.
Wire Transfer. A Deposit made by wire will be considered timely delivered to the City upon submission
of a federal wire reference number by the specified time. Wire transfer instructions will be available from
Springsted Incorporated following the receipt and tabulation of proposals. The successful bidder must
send an e-mail including the following information: (i) the federal reference number and time released;
(ii) the amount of the wire transfer; and (iii) the issue to which it applies.
Once an award has been made, the Deposit received from the will be
retained by the City and no interest will accrue to the purchaser. The amount of the Deposit will be
deducted at settlement from the purchase price. In the event the purchaser fails to comply with the
accepted proposal, said amount will be retained by the City.
AWARD
The Series 2015A City 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 Series 2015A City 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.
- iii -
BOND INSURANCE AT PURCHASER'S OPTION
not
The City has applied for or pre-approved a commitment for any policy of municipal bond insurance
with respect to the Series 2015A City Bonds. If the Series 2015A City Bonds qualify for municipal bond
insurance and a bidder desires to purchase a policy, such indication, the maturities to be insured, and the
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
ratings 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
Series 2015A City Bonds shall not constitute cause for failure or refusal by the successful bidder to accept
delivery of the Series 2015A City Bonds.
CUSIP NUMBERS
If the Series 2015A City Bonds qualify for assignment of CUSIP numbers such numbers will be printed
on the Series 2015A City Bonds, but neither the failure to print such numbers on any
Series2015ACityBond nor any error with respect thereto will constitute cause for failure or refusal by
the purchaser to accept delivery of the Series 2015A City Bonds. The CUSIP Service Bureau charge for
the assignment of CUSIP identification numbers shall be paid by the purchaser.
SETTLEMENT
On or about November 19, 2015, the Series 2015A City Bonds will be delivered without cost to the
purchaser through DTC in New York, New York. Delivery will be subject to receipt by the purchaser of
an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of
customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the
Series 2015A City Bonds shall be made in federal, or equivalent, funds that shall be received at the
offices of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the
terms of payment for the Series 2015A City 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 Series 2015A City Bonds, to provide annual reports and notices of certain events. A
description of this undertaking is set forth in the Official Statement. The purchaser's obligation to
purchase the Series 2015A City Bonds will be conditioned upon receiving evidence of this undertaking at
or prior to delivery of the Series 2015A City Bonds.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent
information relative to the Series 2015A City Bonds, and said Preliminary Official Statement will serve
as a nearly final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange
Commission. For copies of the Preliminary Official Statement or for any additional information prior to
sale, any prospective purchaser is referred to the Municipal Advisor to the City, Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the
maturity dates, principal amounts and interest rates of the Series 2015A City Bonds, together with any
other information required by law. By awarding the Series 2015A City Bonds to an underwriter or
underwriting syndicate, the City agrees that, no more than seven business days after the date of such
award, it shall provide without cost to the sole underwriter or to the senior managing underwriter of the
syndicate to which the Series 2015A City Bonds are
- iv -
awarded up to 25 copies of the Final Official Statement. The City designates the Underwriter of the
syndicate to which the Series 2015A City 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 Series 2015A City Bonds for purposes of assuring
the receipt by each such Participating Underwriter of the Final Official Statement.
Dated September 15, 2015 BY ORDER OF THE CITY COUNCIL
/s/ Clarissa Hadler
City Clerk
- v -
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,445,000*
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN
REFUNDING BONDS, SERIES 2015B
(BOOK ENTRY ONLY)
Proposals for the Series 2015B City Bonds will be received on Tuesday, October 20, 2015, until
10:00A.M., Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300,
SaintPaul, Minnesota, after which time proposals will be opened and tabulated. Consideration for award
of the Series 2015B City Bonds will be by the City Council at7:00 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 Series 2015B City Bonds regardless of the manner in
which the proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to
Springsted. Signed proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final proposal price and
coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted proposal.
OR
®
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via PARITY.
®
For purposes of the electronic bidding process, the time as maintained by PARITY shall constitute the
®
official time with respect to all proposals submitted to PARITY. Each bidder 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 with the requirements of the Terms of proposal. Neither the City,
®
its agents nor PARITY shall have any duty or obligation to undertake registration to bid for any
prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and
®
neither the City, its agents nor PARITY
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 Series 2015B City Bonds, and
®
PARITY is not an agent of the City.
®
If any provisions of this Terms of proposal conflict with information provided by PARITY, this Terms
®
of proposal shall control. Further information about PARITY, including any fee charged, may be
obtained from:
®nd
PARITY, 1359 Broadway, 2 Floor, New York, New York 10018
Customer Support: (212) 849-5000
___________________________
*
Preliminary; subject to change
- vi -
DETAILS OF THE SERIES 2015B CITY BONDS
The Series 2015B City 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, 2016. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.
The Series 2015B City Bonds will mature February 1 in the years and amounts* as follows:
2017 $150,000 2020 $155,000 2023 $165,000
2018 $155,000 2021 $160,000 2024 $170,000
2019 $155,000 2022 $160,000 2025 $175,000
*
The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal
amount of the Series 2015B City 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 Series 2015B City 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 Series 2015B City 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.
proposal form.
BOOK ENTRY SYSTEM
The Series 2015B City Bonds will be issued by means of a book entry system with no physical
distribution of Series 2015B City Bonds made to the public. The Series 2015B City Bonds will be issued
in fully registered form and one Series 2015B Bond, representing the aggregate principal amount of the
Series 2015B City Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee
depository of the Series 2015B City Bonds. Individual purchases of the Series 2015B City Bonds may be
made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries
made on the books and records of DTC and its participants. Principal and interest are payable by the
registrar to DTC or its nominee as registered owner of the Series 2015B City Bonds. Transfer of
principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of
principal and interest payments to beneficial owners by participants will be the responsibility of such
participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the
Series 2015B City Bonds, will be required to deposit the Series 2015B City 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 Series 2015B City 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 Series 2015B City Bonds of a
maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to
be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be
redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to
be redeemed. All prepayments shall be at a price of par plus accrued interest.
- vii -
SECURITY AND PURPOSE
The Series 2015B City 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. The proceeds of the
Series 2015BCityBonds will be used to refund the February 1, 2017 through February 1, 2025
Bonds, Series 2005A, dated
June 15, 2005.
BIDDING PARAMETERS
Proposals shall be for not less than $1,433,080 plus accrued interest, if any, on the total principal amount
of the Series 2015B City 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 Series 2015B City Bonds is
adjourned, recessed, or continued to another date without award of the Series 2015B City 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. Series 2015B City Bonds of the same maturity shall bear a single
rate from the date of the Series 2015B City Bonds to the date of maturity. No conditional proposals will
be accepted.
GOOD FAITH DEPOSIT
To have its proposal considered for award, the lowest bidder is required to submit a good faith deposit to
the City in the amount of $14,450 than 1:00 P.M., Central Time on the day of
check payable to the City; or (ii) a wire transfer. The lowest bidder shall be solely responsible for the
timely delivery of their Deposit whether by check or wire transfer. Neither the City nor
SpringstedIncorporated have any liability for delays in the receipt of the Deposit. If the Deposit is not
received by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder,
direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder.
. A Deposit made by certified
delivered to the City if it is made payable to the City and delivered to Springsted Incorporated,
380 Jackson Street, Suite 300, St. Paul, Minnesota 55101 by the specified time.
Wire Transfer. A Deposit made by wire will be considered timely delivered to the City upon submission
of a federal wire reference number by the specified time. Wire transfer instructions will be available from
Springsted Incorporated following the receipt and tabulation of proposals. The successful bidder must
send an e-mail including the following information: (i) the federal reference number and time released;
(ii) the amount of the wire transfer; and (iii) the issue to which it applies.
Once an award has been made, the Deposit received from the will be
retained by the City and no interest will accrue to the purchaser. The amount of the Deposit will be
deducted at settlement from the purchase price. In the event the purchaser fails to comply with the
accepted proposal, said amount will be retained by the City.
AWARD
The Series 2015B City 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 Series 2015B City 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.
- viii -
BOND INSURANCE AT PURCHASER'S OPTION
not
The City has applied for or pre-approved a commitment for any policy of municipal bond insurance
with respect to the Series 2015B City Bonds. If the Series 2015B City Bonds qualify for municipal bond
insurance and a bidder desires to purchase a policy, such indication, the maturities to be insured, and the
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
ratings 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
Series2015B City Bonds shall not constitute cause for failure or refusal by the successful bidder to
accept delivery of the Series 2015B City Bonds.
CUSIP NUMBERS
If the Series 2015B City Bonds qualify for assignment of CUSIP numbers such numbers will be printed
on the Series 2015B City Bonds, but neither the failure to print such numbers on any
Series2015BCityBond nor any error with respect thereto will constitute cause for failure or refusal by
the purchaser to accept delivery of the Series 2015B City Bonds. The CUSIP Service Bureau charge for
the assignment of CUSIP identification numbers shall be paid by the purchaser.
SETTLEMENT
On or about November 19, 2015, the Series 2015B City Bonds will be delivered without cost to the
purchaser through DTC in New York, New York. Delivery will be subject to receipt by the purchaser of
an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of
customary closing papers, including a no-litigation certificate. On the date of settlement, payment for the
Series 2015B City Bonds shall be made in federal, or equivalent, funds that shall be received at the offices
of the City or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of
payment for the Series 2015B City 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 Series 2015B City Bonds, to provide annual reports and notices of certain events. A
description of this undertaking is set forth in the Official Statement. The purchaser's obligation to
purchase the Series 2015B City Bonds will be conditioned upon receiving evidence of this undertaking at
or prior to delivery of the Series 2015B City Bonds.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent
information relative to the Series 2015B City Bonds, and said Preliminary Official Statement will serve as
a nearly final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange
Commission. For copies of the Preliminary Official Statement or for any additional information prior to
sale, any prospective purchaser is referred to the Municipal Advisor to the City, Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the
maturity dates, principal amounts and interest rates of the Series 2015B City Bonds, together with any
other information required by law. By awarding the Series 2015B City Bonds to an underwriter or
underwriting syndicate, the City agrees that, no more than seven business days after the date of such
award, it shall provide without cost to the sole underwriter or to the senior managing underwriter of the
syndicate to which the Series 2015B City Bonds are
- ix -
awarded up to 25 copies of the Final Official Statement. The City designates the Underwriter of the
syndicate to which the Series 2015B City 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 Series 2015B City Bonds for purposes of assuring
the receipt by each such Participating Underwriter of the Final Official Statement.
Dated September 15, 2015 BY ORDER OF THE CITY COUNCIL
/s/ Clarissa Hadler
City Clerk
- x -
THE AUTHORITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING
BASIS:
TERMS OF PROPOSAL
$3,460,000*
ROSEMOUNT PORT AUTHORITY, MINNESOTA
GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2015A
(BOOK ENTRY ONLY)
Proposals for the Authority Bonds will be received on Tuesday, October 20, 2015, until 10:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint Paul,
Minnesota, after which time proposals will be opened and tabulated. Consideration for award of the
Authority Bonds will be by the Board of Commissioners at6:00 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 Authority to purchase the Authority Bonds regardless of the manner in which
the proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to
Springsted. Signed proposals, without final price or coupons, may be submitted to Springsted prior to the
time of sale. The bidder shall be responsible for submitting to Springsted the final proposal price and
coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the submitted proposal.
OR
®
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via PARITY.
®
For purposes of the electronic bidding process, the time as maintained by PARITY shall constitute the
®
official time with respect to all proposals submitted to PARITY. Each bidder 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 with the requirements of the Terms of proposal. Neither the
®
Authority, its agents nor PARITY shall have any duty or obligation to undertake registration to bid for
any prospective bidder or to provide or ensure electronic access to any qualified prospective bidder, and
®
neither the Authority, its agents nor PARITY
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 Authority is using the services of PARITY solely as
®
a communication mechanism to conduct the electronic bidding for the Authority Bonds, and PARITY is
not an agent of the Authority.
®
If any provisions of this Terms of proposal conflict with information provided by PARITY, this Terms
®
of proposal shall control. Further information about PARITY, including any fee charged, may be
obtained from:
®nd
PARITY, 1359 Broadway, 2 Floor, New York, New York 10018
Customer Support: (212) 849-5000
________________________________
*
Preliminary; subject to change.
- xi -
DETAILS OF THE AUTHORITY BONDS
The Authority 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, 2016. Interest will be computed on the basis of a
360-day year of twelve 30-day months.
The Authority Bonds will mature February 1 in the years and amounts* as follows:
2018 $20,000 2021 $25,000 2024 $ 60,000 2027 $390,000 2030 $425,000
2019 $20,000 2022 $25,000 2025 $375,000 2028 $400,000 2031 $435,000
2020 $20,000 2023 $25,000 2026 $380,000 2029 $410,000 2032 $450,000
*
The Authority reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Authority 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 Authority Bonds as that of the original proposal. Gross spread is the differential between
the price paid to the Authority for the new issue and the prices at which the securities are initially offered to the
investing public.
Proposals for the Authority 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
the spaces provided on the proposal form.
BOOK ENTRY SYSTEM
The Authority Bonds will be issued by means of a book entry system with no physical distribution of
Authority Bonds made to the public. The Authority Bonds will be issued in fully registered form and one
Authority Bond, representing the aggregate principal amount of the Authority Bonds maturing in each
year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company
Authority Bonds.
Individual purchases of the Authority Bonds may be made in the principal amount of $5,000 or any
multiple thereof of a single maturity through book entries made on the books and records of DTC and its
participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner
of the Authority Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will
be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a
condition of delivery of the Authority Bonds, will be required to deposit the Authority Bonds with DTC.
REGISTRAR
The Authority will name the registrar which shall be subject to applicable SEC regulations. The
Authority will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Authority may elect on February 1, 2024, and on any day thereafter, to prepay Authority Bonds due
on or after February 1, 2025. Redemption may be in whole or in part and if in part at the option of the
Authority and in such manner as the Authority shall determine. If less than all Authority Bonds of a
maturity are called for redemption, the Authority 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.
- xii -
SECURITY AND PURPOSE
The Authority Bonds are full faith and credit obligations of the City of Rosemount, Minnesota (the
property within the City for their payment. In addition, the Authority will pledge tax increment revenue
from the Downtown/Brockway Tax Increment District. The proceeds of the Authority Bonds will be used
to
Tax Increment Bonds, Series 2008B, dated April 10, 2008.
BIDDING PARAMETERS
Proposals shall be for not less than $3,420,210 plus accrued interest, if any, on the total principal amount
of the Authority Bonds. No proposal can be withdrawn or amended after the time set for receiving
proposals unless the meeting of the Authority scheduled for award of the Authority Bonds is adjourned,
recessed, or continued to another date without award of the Authority 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. Authority Bonds of the same maturity shall bear a single rate from the date of the
Authority Bonds to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
To have its proposal considered for award, the lowest bidder is required to submit a good faith deposit to
the Authority in the amount of $34,600 than 1:00 P.M., Central Time on the day
of sale. The Deposit may be delivered as described herein in t
check payable to the Authority; or (ii) a wire transfer. The lowest bidder shall be solely responsible for
the timely delivery of their Deposit whether by check or wire transfer. Neither the Authority nor
Springsted Incorporated have any liability for delays in the receipt of the Deposit. If the Deposit is not
received by the specified time, the Authority may, at its sole discretion, reject the proposal of the lowest
bidder, direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder.
delivered to the Authority if it is made payable to the Authority and delivered to Springsted Incorporated,
380 Jackson Street, Suite 300, St. Paul, Minnesota 55101 by the specified time.
Wire Transfer. A Deposit made by wire will be considered timely delivered to the Authority upon
submission of a federal wire reference number by the specified time. Wire transfer instructions will be
available from Springsted Incorporated following the receipt and tabulation of proposals. The successful
bidder must send an e-mail including the following information: (i) the federal reference number and time
released; (ii) the amount of the wire transfer; and (iii) the issue to which it applies.
Once an award has been made, the Deposit received from the will be
retained by the Authority and no interest will accrue to the purchaser. The amount of the Deposit will be
deducted at settlement from the purchase price. In the event the purchaser fails to comply with the
accepted proposal, said amount will be retained by the Authority.
AWARD
The Authority 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 Authority. The
Authority's computation of the interest rate of each proposal, in accordance with customary practice, will
be controlling.
The Authority 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 Authority Bonds, (ii) reject all proposals
without cause, and (iii) reject any proposal that the Authority determines to have failed to comply with the
terms herein.
- xiii -
BOND INSURANCE AT PURCHASER'S OPTION
not
The Authority has applied for or pre-approved a commitment for any policy of municipal bond
insurance with respect to the Authority Bonds. If the Authority Bonds qualify for municipal bond
insurance and a bidder desires to purchase a policy, such indication, the maturities to be insured, and the
proposal. The Authority specifically
reserves the right to reject any bid specifying municipal bond insurance, even though such bid may result
in the lowest TIC to the Authority. All costs associated with the issuance and administration of such
policy and associated ratings and expenses (other than any independent rating requested by the Authority)
shall be paid by the successful bidder. Failure of the municipal bond insurer to issue the policy after the
award of the Authority Bonds shall not constitute cause for failure or refusal by the successful bidder to
accept delivery of the Authority Bonds.
CUSIP NUMBERS
If the Authority Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Authority Bonds, but neither the failure to print such numbers on any Authority Bond nor any error with
respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Authority Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
On or about November 19, 2015, the Authority Bonds will be delivered without cost to the purchaser
through DTC in New York, New York. Delivery will be subject to receipt by the purchaser of an
approving legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, and of customary
closing papers, including a no-litigation certificate. On the date of settlement, payment for the Authority
Bonds shall be made in federal, or equivalent, funds that shall be received at the offices of the Authority
or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of payment
for the Authority Bonds has been made impossible by action of the Authority, or its agents, the purchaser
shall be liable to the Authority for any loss suffered by the Authority 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 Authority will undertake, pursuant to the resolution
awarding sale of the Authority Bonds, to provide annual reports and notices of certain events. A
description of this undertaking is set forth in the Official Statement. The purchaser's obligation to
purchase the Authority Bonds will be conditioned upon receiving evidence of this undertaking at or prior
to delivery of the Authority Bonds
OFFICIAL STATEMENT
The Authority has authorized the preparation of a Preliminary Official Statement containing pertinent
information relative to the Authority Bonds, and said Preliminary Official Statement will serve as a nearly
final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Preliminary Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Municipal Advisor to the Authority, Springsted Incorporated,
380Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the
maturity dates, principal amounts and interest rates of the Authority Bonds, together with any other
information required by law. By awarding the Authority Bonds to an underwriter or underwriting
syndicate, the Authority agrees that, no more than seven business days after the date of such award, it
shall provide without cost to the sole underwriter or to the senior managing underwriter of the syndicate
to which the Authority Bonds are awarded up to
- xiv -
25 copies of the Final Official Statement. The Authority designates the Underwriter of the syndicate to
which the Authority 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 Authority, (i) it shall accept designation and (ii) it shall enter into a contractual
relationship with all Participating Underwriters of the Authority Bonds for purposes of assuring the
receipt by each such Participating Underwriter of the Final Official Statement.
Dated September 15, 2015 BY ORDER OF THE BOARD OF COMMISSIONERS
/s/ Clarissa Hadler
City Clerk
- xv -
OFFICIAL STATEMENT
CITY OF ROSEMOUNT, MINNESOTA
$1,525,000*
GENERAL OBLIGATION UTILITY REVENUE BONDS, SERIES 2015A
$1,445,000*
GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN
REFUNDING BONDS, SERIES 2015B
ROSEMOUNT PORT AUTHORITY, MINNESOTA
$3,460,000*
GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2015A
(BOOK ENTRY ONLY)
INTRODUCTORY STATEMENT
This Official Statement contains certain information relating to the City of Rosemount, Minnesota (the
1,525,000* General Obligation Utility Revenue Bonds, Series 2015A (the
Series 2015A City Bonds1,445,000* General Obligation Capital Improvement Plan Refunding
BondsSeries 2015B City Bonds
City . This Official Statement also contains certain information relating to the Rosemount Port
Authority, Minnesota Authority and its issuance of $3,460,000* General Obligation Tax
Increment Refunding Bonds, Series 2015A Authority , and, together with City Bonds, the
City Bonds are general obligations of the City for which it pledges its full faith and credit
and power to levy direct general ad valorem taxes. The Authority Bonds are full faith and credit
obligations of the City for which the City has consented to the Autho
taxes on all property within the City for their payment. Additional sources of security to the Bonds are
discussed herein.
th
Inquiries may be directed to Mr. Jeffrey May, Finance Director, City of Rosemount, 2875 145 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 300, St. Paul, Minnesota 55101-2887, by telephoning (651) 223-3000, or by e-mailing
bond_services@springsted.com.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with SEC Rule 15c2-
Awarding Resolutions, the City and the Authority have covenanted to comply with the continuing
Bonds to
provide certain financial information and operating data relating to the City and the Authority to the
Municipal Securities Rulemaking Board annually, and to provide notices of the occurrence of certain events
enumerated in the Rule to the Municipal Securities Rulemaking Board and to any state information
depository. The specific nature of the Undertaking, as well as the information to be contained in the annual
report or the notices of material events, is set forth in the Undertaking in substantially the form attached
hereto as Appendix II, subject to such modifications thereof or additions thereto as: (i) consistent with
requirements under the Rule, (ii) required by the purchaser of the Bonds from the City and the Authority,
and (iii) acceptable to the Mayor and Clerk of the City, and the Chair and Secretary of the Authority .
________________________________
*
Preliminary; subject to change.
- 1 -
To the best of their knowledge, the City and the Authority have complied for the past five years in all
material respects in accordance with the terms of its previous continuing disclosure undertakings entered
into pursuant to the Rule. In the interest of full disclosure, the City and Authority notem the following,
which is presented irrespective of materiality:
municipal bond insurance firms, which resulted in the change of the insured ratings of certain debt
issues of the City and the Authority. Material event notices regarding certain insurance rating
changes have not been filed; however, the information was publicly available through other sources.
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
inside 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, 2016. 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. Interest will be computed on the basis of
a 360-day year of twelve 30-day months. Principal of and interest on the Bonds will be paid as described
U.S. Bank National Association, St. Paul, Minnesota
will serve as Registrar for the Bonds, and the City and the Authority will pay for registrar services.
Redemption Provisions
Bonds. Failure
to give such written notice to any registered owner of the Bonds or any defect therein shall not affect the
validity of any proceedings for the redemption of the Bonds. All Bonds or portions thereof called for
redemption will cease to bear interest after the specified redemption date, provided funds for their
redemption are on deposit at the place of payment.
Optional Redemption
The City may elect on February 1, 2024, and on any day thereafter, to prepay the Series 2015A
City Bonds due on or after February 1, 2025.
The City may elect on February 1, 2023, and on any day thereafter, to prepay the Series 2015B
City Bonds due on or after February 1, 2024.
The Authority may elect on February 1, 2024, and on any day thereafter, to prepay the Authority
Bonds due on or after February 1, 2025.
Redemption may be in whole or in part and if in part at the option of the City or the Authority and in such
manner as the City or the Authority shall determine. If less than all the Bonds of a maturity are called for
redemption, the City or the Authority will notify DTC of the particular amount of 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.
- 2 -
Book Entry System
York, New York, will act as securities depository for the
Bonds. The Bonds will be issued as fully-registered securities registered in the name of Cede & Co.
e of
DTC. One fully-registered certificate will be issued for each maturity of each series of the Bonds, each in
the aggregate principal amount of such maturity, and will be deposited with DTC.
DTC is a limited-
m Commercial Code, and a
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
-trade
settlement among Direct Participants of sales and other securities transactions in deposited securities
through electronic computerized book-
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
rities Clearing
Corporation, and Fixed Income Clearing Corporation all of which are registered clearing agencies.
DTCC is owned by the users of its regulated subsidiaries. Access to the DTC system is also available to
others such as both U.S. and non-U.S. securities brokers and dealers, banks, trust companies and clearing
corporations that clear through or maintain a custodial relationship with a Direct Participant, either
Participants are on file
with the Securities and Exchange Commission. More information about DTC can be found at
www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Bond
Bond
Beneficial Owners will not receive written confirmation from DTC of their purchase. Beneficial Owners
are, however, expected to receive written confirmations providing details of the transaction, as well as
periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial
Owner entered into the transaction. Transfers of ownership interests in the Bonds 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 Bonds, except
in the event that use of the book-entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Direct Participants with DTC are registered in
authorized representative of DTC. The deposit of Bonds with DTC and their registration in the name of
Cede & Co. or such other DTC nominee do not effect any change in beneficial ownership. DTC has no
knowledge of the actual Beneficial Owners of the Bond
Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial
Owners. The Direct and Indirect Participants will remain responsible for keeping account of their
holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to
Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be
governed by arrangements among them, subject to any statutory or regulatory requirements as may be in
effect from time to time. Beneficial Owners of Bonds may wish to take certain steps to augment the
transmission to them of notices of significant events with respect to the Bonds, such as redemptions,
tenders, defaults, and proposed amendments to the Bond documents. For example, Beneficial Owners of
the Bonds may wish to ascertain that the nominee holding the Bonds for their benefit has agreed to obtain
- 3 -
and transmit notices to Beneficial Owners. In the alternative, Beneficial Owners may wish to provide
their names and addresses to the registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Bonds within a maturity are being
n
such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the
BondMMI procedures. Under its
usual procedures, DTC mails an Omnibus Proxy to the City and the Authority as soon as possible after
Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to
the Omnibus Proxy).
Redemption proceeds, distributions, and dividend payments on the Bonds will be made to Cede & Co. or
cred
from the City and the Authority or their agents on the payable date in accordance with their respective
ants to Beneficial Owners will be governed by
standing instructions and customary practices, as is the case with securities held for the accounts of
and not of DTC or the City and the Authority, 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 the
responsibility of the City and the Authority or their agents, disbursement of such payments to Direct
Participants will be the responsibility of DTC, and disbursement of such payments to the Beneficial
Owners will be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as depository with respect to the Bonds at any time by giving
reasonable notice to City and the Authority or their agents. Under such circumstances, in the event that a
successor depository is not obtained, certificates are required to be printed and delivered.
The City and the Authority 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.
-entry system has been obtained from
sources that the City and the Authority believe to be reliable, but the City and the Authority take no
responsibility for the accuracy thereof.
- 4 -
ROSEMOUNT PORT AUTHORITY, MINNESOTA
The Authority is a public body politic and corporate and a political subdivision of the State of Minnesota
duly organized and existing under the laws of the State of Minnesota. The Authority was established on
September 3, 1991 and is governed by a seven-member Board. The current Board members are as
follows:
Expiration of Term
Jeff Weisensel* Chair December 31, 2016
Daniel Wolf Vice Chair December 31, 2016
Mark DeBettignies* Commissioner December 31, 2018
William Droste* Commissioner December 31, 2018
Jamal Abdulahi Commissioner December 31, 2018
Tom Luing Commissioner March 31, 2020
Bob Smith Commissioner March 31, 2017
* Chair Weisensel; Commissioner DeBettignies; and Commissioner Droste also serve on the City Council.
Mr. Dwight Johnson serves as the City Administrator and Executive Director to the Authority.
THE SERIES 2015A CITY BONDS
Authority and Purpose
The Series 2015A City Bonds are being issued pursuant to Minnesota Statutes, Chapters 444 and 475.
The proceeds of the Series 2015A Bonds will be used to finance the drilling of a water well.
Sources and Uses of Funds
The composition of the Series 2015A City Bonds is estimated to be as follows:
Sources of Funds:
Principal Amount $1,525,000
Total Sources of Funds $1,525,000
Uses of Funds:
Deposit to Project Fund $1,450,000
Costs of Issuance 58,225
Allowance for Discount Bidding 16,775
Total Uses of Funds $1,525,000
- 5 -
Security and Financing
The Series 2015A City 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; however, the City does not anticipate
the need to levy taxes for repayment of the Series 2015A City Bonds.
Pursuant to Minnesota Statutes, Chapter 444, and the resolution awarding the sale of the Series 2015A
City Bonds, the City will covenant to impose and collect charges for the service, use, availability and
connection to the Water Utility fund to produce net revenues in amounts sufficient to support the
operation of the Water Utility fund to pay 105% of debt service on obligations to which it has pledged its
Water Utility fund revenues, including the Series 2015A City Bonds. The City is required to annually
review the budget of the utility to determine whether current rates and charges are sufficient and to adjust
such rates and charges as necessary.
THE SERIES 2015B CITY BONDS
Authority and Purpose
The Series 2015B City Bonds are being issued pursuant to Minnesota Statutes, Chapter 475. The
Series 2015B City Bonds have been structured as a current refunding, and are being issued to achieve
debt service savings. The proceeds of the Series 2015B City Bonds, along with available City funds, will
be used to redeem the February 1, 2017 through February 1, 2025 Series 2005A
CityCapital Improvement Plan Bonds, Series 2005A,
dated June 15, 2005 Series 2005A Specifically, it is anticipated that the Series 2005A
Refunded Maturities will be called and prepaid at a price of par plus accrued interest on February 1, 2016,
which is within 90 days of settlement of the Series 2015B City Bonds.
Sources and Uses of Funds
The composition of Series 2015B City Bonds is estimated to be as follows:
Sources of Funds:
Principal Amount $1,445,000
Available City Funds 100,000
Total Sources of Funds $1,545,000
Uses of Funds:
Deposit for Refunding Purposes $1,490,000
Costs of Issuance 43,080
Allowance for Discount Bidding 11,920
Total Uses of Funds $1,545,000
Security and Financing
The Series 2015B City 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. The City will make its first levy for
the Series 2015B City Bonds in 2015 for collection in 2016. E
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.
- 6 -
THE AUTHORITY BONDS
Authority and Purpose
The Authority Bonds are being issued pursuant to Minnesota Statutes, Chapters 469 and 475. The
Authority Bonds have been structured as a crossover refunding, and are being issued to achieve debt
service savings. The proceeds of the Authority Bonds will be used to redeem the February 1, 2024
through the February 1, 2032 maturitieSeries 2008B Authority
General Obligation Tax Increment Bonds, Series 2008B, dated April 10, 2008 2008B
Specifically, the proceeds of the Authority Bonds will be placed in an escrow account with U.S. Bank
National Association, St. Paul, Minnesota . The amounts on deposit with the
Escrow Agent will be (i) used to pay the costs associated with the issuance of the Authority Bonds; and
(ii) will be invested in special obligations of the United States Treasury or other obligations of the United
States or of its agencies, which shall mature in such amounts and at such times as to be available to:
pay the interest on the Authority Bonds to and including February 1, 2017, the anticipated call
date of the Series 2008B Bonds;
redeem the Series 2008B Refunded Maturities on the anticipated call date of February 1, 2017 at
a price of par plus accrued interest.
Verification services necessary to insure the adequacy of the escrow account to provide timely payment
of the principal and interest for which the escrow account is obligated will be performed by a certified
public accounting firm.
Sources and Uses of Funds
The composition of the Authority Bonds is estimated to be as follows:
Sources of Funds:
Principal Amount $3,460,000
Total Sources of Funds $3,460,000
Uses of Funds:
Deposit to Escrow Fund $3,368,514
Cost of Issuance 51,696
Allowance for Discount Bidding 39,790
Total Uses of Funds $3,460,000
Security and Financing
The Authority Bonds are full faith and credit obligations of the City for which the City has consented to
within the City for their payment.
However, the Authority does not anticipate the need to levy taxes for repayment of the Authority Bonds.
The Authority will pledge tax increment revenue derived from the Downtown/Brockway Tax Increment
District for repayment of the Authority Bonds.
- 7 -
The escrow account established with the proceeds of the Authority Bonds will make the interest payments
due on the Authority Bonds through February 1, 2017tax increment
revenue, if collected in full, will be sufficient to pay 105% of the debt service due on the Authority Bonds
in each year.
FUTURE FINANCING
Neither the City nor the Authority anticipate issuing any additional long-term general obligation debt
within the next 90 days.
LITIGATION
Neither the City nor the Authority are aware of any threatened or pending litigation affecting the validity
of the Bonds or the City ability to meet their financial obligations.
LEGALITY
The Bonds are subject to approval as to certain matters by Kennedy & Graven, Chartered, of
Minneapolis, Minnesota, as Bond Counsel. Bond Counsel has not participated in the preparation of this
Official Statement and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has
not examined nor attempted to examine or verify, any of the financial or statistical statements, or data
contained in this Official Statement and will express no opinion with respect thereto. Legal opinions in
substantially the forms set out in Appendix I herein will be delivered at closing.
TAX EXEMPTION
At closing Kennedy & Graven, Chartered, of Minneapolis, Minnesota, Bond Counsel for the Bonds, will
render an opinion that, at the time of their issuance and delivery to the original purchaser, under present
federal and State of Minnesota laws, regulations, rulings and decisions (which excludes any pending
legislation which may have a retroactive effect), the interest on the Bonds 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, 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 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 & Graven regarding other federal or
state tax consequences caused by the receipt or accrual of interest on the Bonds or arising with respect to
ownership of the Bonds. Preservation of the exclusion of interest on the Bonds from federal gross income
and state gross and taxable net income, however, depends upon compliance by the City and the Authority
satisfied subsequent to the issuance of the Bonds in order that interest thereon be (or continue to be)
excluded from federal gross income and state gross and taxable net income.
- 8 -
The City and the Authority will covenant to comply with requirements necessary under the Code to
establish and maintain the Bonds as tax-exempt under Section 103 thereof, including without limitation,
requirements relating to temporary periods for investments and limitations on amounts invested at a yield
greater than the yield on the Bonds.
OTHER FEDERAL AND STATE TAX CONSIDERATIONS
Property and Casualty Insurance Companies
Property and casualty insurance companies are required to reduce the amount of their loss reserve
deduction by 15% of the amount of tax-exempt interest received or accrued during the taxable year on
certain Bonds, including interest on the Bonds.
Foreign Insurance Companies
Foreign companies carrying on an insurance business in the United States are subject to a tax on income
which is effectively connected with their conduct of any trade or business in the United States, including
me includes tax-exempt interest such as interest on the
Bonds.
Branch Profits Tax
A foreign corporation is subject to a branch profits tax equal to 30% of the
for the taxable year. The
earnings and profits may include tax-exempt municipal bond interest, such as interest on the Bonds.
Passive Investment Income of S Corporations
Passive investment income, including interest on the Bonds, may be subject to federal income taxation
under Section 1375 of the Code for an S corporation that has Subchapter C earnings and profits at the
close of the taxable year if more than 25% of the gross receipts of such S corporation is passive
investment income.
Financial Institutions
Financial institutions are generally not entitled to a deduction for interest expenses allocable to the owners
of tax-exempt Bonds purchased after August 7, 1986. The City and the Authority will designate the
Bonds as qualified tax-exempt Bonds 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 Bonds. The receipt or accrual of interest on the Bonds may
otherwise affect the federal income tax (or Minnesota income tax or franchise tax) liability of the
recipient based on the particular taxes to which the recipient is subject and the particular tax status of
other items of income or deductions. All prospective purchasers of the Bonds are advised to consult their
own tax advisors as to the tax consequences of, or tax considerations for, purchasing or holding the
Bonds.
- 9 -
BANK-QUALIFIED TAX-EXEMPT OBLIGATIONS
-exempt obligation 265(b)(3) of
the Internal Revenue Code of 1986, as amended, relating to the ability of financial institutions to deduct
from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring
tax-exempt obligations.
RATINGS
Application for ratings of the Bonds have been made to World
rd
Trade Center, 250 Greenwich Street, 23 Floor, New York, New York. If ratings are assigned, they will
. Any explanation of the significance of the ratings may be obtained
only from .
There is no assurance that a rating, if assigned, will continue for any given period of time, or that such
rating will not be revised, suspended or withdrawn, if, in the judgment of , circumstances so
warrant. A revision, suspension or withdrawal of a rating may have an adverse effect on the market price
of the Bonds.
MUNICIPAL ADVISOR
The City and the Authority have retained Springsted Incorporated, Public Sector Advisors, of St. Paul,
Minnesota , as municipal advisor in connection with certain aspects of the issuance of the
Bonds. In preparing this Official Statement, Springsted has relied upon governmental officials, and other
sources, who have access to relevant data to provide accurate information for this Official Statement, and
Springsted has not been engaged, nor has it undertaken, to independently verify the accuracy of such
information. Springsted is not a public accounting firm and has not been engaged by the City or the
Authority 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 and the Authority have authorized the distribution of the Preliminary Official Statement for use
in connection with the initial sale of the Bonds and a Final Official Statement following award of the
Bonds. The Purchaser(s) will be furnished with a certificate signed by the appropriate officers of the City
and the Authority stating that the City and the Authority 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 material fact necessary, in order to make the statements
made therein, in light of the circumstances under which they were made, not misleading.
- 10 -
CITY PROPERTY VALUES
(a)
Trend of Values
Assessment/ Market Value Adjusted
Collection Estimated Sales Economic Homestead Taxable Taxable Net
(b)(c)
Year Market Value Ratio Market Value Exclusion Market Value Tax Capacity
2014/15 $2,269,343,100 94.0% $2,410,722,215 $106,173,765 $2,127,597,965 $23,843,274
2013/14 2,092,544,000 91.3 2,284,831,130 115,891,793 1,948,614,357 22,216,867
2012/13 2,014,851,100 93.0 2,163,199,582 119,450,681 1,866,877,179 21,507,331
2011/12 2,060,480,700 96.1 2,132,239,231 115,495,251 1,914,176,616 22,124,926
2010/11 2,146,847,500 N/A N/A N/A 2,113,658,000 24,311,493
(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
methodology was used to calculate sales ratios.
(c)
Economic market values for the year of assessment as posted by the Minnesota Department of Revenue,
http://www.revenue.state.mn.us/propertytax/Pages/statistics-imv.aspx.
Source: Dakota County, Minnesota, May 2015, except as otherwise noted.
2014/15 Adjusted Taxable Net Tax Capacity: $23,843,274*
Real Estate:
Residential Homestead $17,060,986 69.6%
Commercial/Industrial, Railroad,
and Public Utility 5,658,338 23.1
Residential Non-Homestead 501,789 2.1
Agricultural 485,331 2.0
Personal Property 797,258 3.2
2014/15 Net Tax Capacity $24,503,702 100.0%
Less: Captured Tax Increment (700,911)
Contribution to Fiscal Disparities (2,418,195)
Plus: Distribution from Fiscal Disparities 2,458,678
2014/15 Adjusted Taxable Net Tax Capacity $23,843,274
* Excludes mobile home valuation of $23,136.
- 11 -
Ten of the Largest Taxpayers in the City
2014/15 Net
Taxpayer Type of Property Tax Capacity
Great Northern Oil Co./Flint Hills
Resources/Koch Refining Oil Refinery $2,947,426
Xcel Energy Utility 345,068
Clarel Corporation Retail 185,686
th
146 Street Partners LP Commercial 168,254
CF Industries, Inc. (Cenex) Fertilizer 128,806
Northern Natural Gas Company Utility 127,292
Minnesota Pipeline Utility 111,575
Hawkins Inc. Industrial 102,642
MN Energy Resources Corp Utility 89,200
Rosemount Crossing LLC Retail 85,250
*
Total $4,291,199
*
Great Northern Oil Co./Flint Hills Resources/Koch Refining represents 12.44/15 adjusted
taxable net tax capacity. The remaining nine taxpayers represent 5.64/15 adjusted taxable
net tax capacity.
CITY INDEBTEDNESS
Legal Debt Limit and Debt Margin*
Legal Debt Limit (3% of 2014/15 Estimated Market Value) $68,080,293
Less: Outstanding Debt Subject to Limit (including the Series 2015B
City Bonds) (2,690,000)
Legal Debt Margin as of November 19, 2015 $65,390,293
* The legal debt margin is referred to 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: Certain types of debt are not subject to the legal debt limit. See Appendix III 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. Previously, the Net Debt Limit was calculated on
Taxable Market Value. 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.
- 12 -
(a)
General Obligation Debt Supported Solely by Taxes
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-19-15
(b)
6-15-05 $2,630,000 Fire Station 2-1-2016 $ 135,000
11-1-05 1,115,000 Fire Station Refunding 2-1-2016 130,000
(c)
12-1-10 1,355,000 Public Facility Refunding 2-1-2022 980,000
11-19-15 1,445,000 Fire Station Refunding
(the Series 2015B City Bonds) 2-1-2025 1,445,000
Total $2,690,000
(a)
These issues are subject to the legal debt limit.
(b)
Excludes the Series 2005A Refunded Maturities.
(b)
These bonds were issued by the Rosemount Port Authority and are being repaid from ad valorem taxes levied
by the City.
General Obligation Special Assessment Debt
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-19-15
6-1-06 $4,405,000 Local Improvements 2-1-2017 $ 915,000
11-15-11 2,080,000 Local Improvements 2-1-2017 845,000
9-1-12 810,000 Local Improvements 2-1-2018 495,000
10-1-13 1,500,000 Local Improvements 2-1-2019 1,210,000
10-16-14 1,820,000 Local Improvements 2-1-2025 1,820,000
Total $5,285,000
(a) (b)
General Obligation Tax Increment Debt
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-19-15
4-10-08 $2,765,000 Taxable Tax Increment 2-1-2024 $2,545,000
11-19-15 3,460,000 Tax Increment Refunding
(the Authority Bonds) 2-1-2032 3,460,000
Total $5,855,000
(a)
These bonds were issued by the Rosemount Port Authority, but are secured by the general obligation pledge of
the City.
(b)
Excludes the Series 2008B Refunded Maturities.
- 13 -
General Obligation Utility Revenue Debt
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-19-15
9-1-00 $1,160,000 Water Revenue 2-1-2016 $ 110,000
10-15-07 1,210,000 Water Revenue 2-1-2018 420,000
12-1-10 1,545,000 Storm Water and Water
Revenue Refunding 2-1-2018 460,000
10-16-14 580,000 Water Revenue 2-1-2018 580,000
11-19-15 1,525,000 Water Revenue
(the Series 2015A City Bonds) 2-1-2026 1,525,000
Total $3,095,000
Estimated Calendar Year Debt Service Payments Including the Bonds
and Excluding the Refunded Maturities
G.O. Debt Supported G.O. Special
Solely by Taxes Assessment Debt
Principal Principal
*
Year Principal & Interest Principal & Interest
2015 (at 11-19) (Paid) (Paid) (Paid) (Paid)
2016 $ 390,000 $ 438,024 $1,665,000 $1,733,500
2017 285,000 331,188 1,690,000 1,729,716
2018 290,000 331,618 810,000 830,224
2019 295,000 331,023 655,000 666,440
2020 300,000 329,516 350,000 354,710
2021 305,000 327,334 20,000 22,245
2022 315,000 329,404 20,000 21,865
2023 165,000 173,689 25,000 26,438
2024 170,000 175,463 25,000 25,900
2025 175,000 176,881 25,000 25,300
Total $2,690,000 $2,944,140 $5,285,000 $5,436,338
*
Includes the Series 2015B City Bonds at an assumed average annual interest rate of 1.70% and excludes the
Series 2005A Refunded Maturities.
- 14 -
Estimated Calendar Year Debt Service Payments Including the Bonds
and Excluding the Refunded Maturities
G.O. G.O.
Tax Increment Debt Utility Revenue Debt
Principal Principal
(a)(c)
Year Principal & Interest Principal & Interest
2015 (at 11-19) (Paid) (Paid) (Paid) (Paid)
2016 $ 195,000 $ 448,260 $ 475,000 $ 528,336
2017 230,000 461,563 510,000 558,314
2018 265,000 455,295 450,000 487,389
2019 280,000 457,470 200,000 230,848
2020 290,000 453,831 210,000 238,088
2021 310,000 458,815 210,000 234,690
2022 325,000 457,365 215,000 235,765
2023 340,000 455,040 215,000 231,564
2024 355,000 452,103 220,000 231,925
2025 375,000 456,490 225,000 231,785
2026 380,000 453,315 165,000 167,063
2027 390,000 454,275
2028 400,000 454,516
2029 410,000 453,813
2030 425,000 456,928
2031 435,000 453,874
2032 450,000 454,984
(b)(d)
Total $5,855,000 $7,737,973 $3,095,000 $3,375,767
(a)
Includes the Authority Bonds at an assumed average annual interest rate of 2.75%, and excludes the
Series 2008B Refunded Maturities.
(b)
50.6% of this debt will be retired within ten years.
(c)
Includes the Series 2015A City Bonds at an assumed average annual interest rate of 2.03%.
(d)
94.7% of this debt will be retired within ten years.
Overlapping Debt
2014/15 Debt Applicable to
Adjusted Taxable Est. G.O. Debt Tax Capacity in City
(a)(b)
Taxing Unit Net Tax Capacity As of 11-19-15 Percent Amount
Dakota County $ 428,390,275 $30,490,000 5.6% $ 1,707,440
I.S.D. No. 196 (Rosemount-
Apple Valley-Eagan) 158,591,651 82,720,000 14.0 11,580,800
I.S.D. No. 199 (Inver Grove
Heights) 26,694,505 64,175,000 5.9 3,786,325
I.S.D. No. 200 (Hastings) 29,921,691 39,225,000 0.1 39,225
(c)
Metropolitan Council 3,284,372,173 20,500,000 0.7 143,500
Total $17,257,290
(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.
- 15 -
Debt Ratios*
G.O. G.O. Direct &
Direct Debt Overlapping Debt
To 2014/15 Estimated Market Value ($2,269,343,100) 0.61% 1.37%
Per Capita - (22,490- 2014 MN State
Estimate) $615 $1,382
*
Excludes general obligation utility revenue debt.
CITY TAX RATES, LEVIES AND COLLECTIONS
Tax Capacity Rates for a Resident in City of Rosemount
2014/15
For
2010/11 2011/12 2012/13 2013/14 Total Debt Only
Dakota County 29.149% 31.426% 33.421% 31.827% 29.633% 0.005%
City of Rosemount 44.661 46.994 48.862 47.676 45.125 0.016
I.S.D. No.196
(Rosemount-Apple
(a)
Valley-Eagan)26.959 28.440 27.956 27.606 23.271 0.029
(b)
Special Districts 3.984 4.187 4.436 4.161 3.741 0.194
Total 104.753% 111.047% 114.675% 111.270% 101.770% 0.243%
(a) In addition, Independent School District No. 196 (Rosemount-Apple Valley-Eagan) has a 2014/15 market value
tax rate of 0.25484% spread across the 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 Levies and Collections
Collected During Collected and/or Abated
Net Collection Year as of 4-30-15
*
Levy/Collect Levy Amount Percent Amount Percent
2014/15 $10,827,747 (In Process of Collection)
2013/14 9,412,887 $9,374,606 99.7% $9,397,716 99.9%
2012/13 9,219,545 9,139,370 99.1 9,210,983 99.9
2011/12 9,074,162 9,003,979 99.2 9,068,760 99.9
2010/11 9,220,079 9,135,672 99.1 9,214,528 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 31, 2015
General Fund $10,045,485
Special Revenue Funds 921,051
Port Authority Fund 812,051
Debt Service Funds 4,521,237
Capital Project Funds 9,472,681
Enterprise Funds 18,921,569
Arena Fund 404,377
Total Cash and Investments $45,098,451
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 portfolio. The Finance Director or the City Administrator is responsible for
investing all funds, including making investment decisions on a daily basis and monitoring the portfolio.
Pursuant to the City's investment policy the City is authorized to invest in the following:
1. Governmental Securities: Instruments such as bonds, notes, bills, mortgages and other securities
which are direct obligations of the federal government or its agencies, with the principal fully
guaranteed by the U.S. government or its agencies. The City will not invest in any mortgage or
mortgage-related security unless a return of principal is completely guaranteed by a federal entity.
2. Certificate of Deposit.
3. Repurchase Agreement.
4. Reverse Repurchase Agreement.
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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 required on two types of investments, certificates of deposit and repurchase
agreements. In order to anticipate market changes and provide a level of security for all funds, the
collateralization level is 110% of the market value of principal and accrued interest.
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, should 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, 2015, the City had a total of $38,988,616 invested funds as follows:
Amount Invested
Type of Security Length of Investment as of 7-31-15
Money Market Savings N/A $11,997,867
Certificates of Deposit Less than 12 months 5,151,285
Certificates of Deposit One to fifteen years 8,666,120
Government Asset Backed Securities Ten years or less 13,173,344
Total $38,988,616
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 Citypopulation trend is shown below.
Percent
Population Change
2014
Estimate 22,490 2.8%
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/.
- 18 -
The Citythree years is as follows:
Data Year/
Report Year 0-17 18-34 35-64 65 and Over
2014/15 6,645 4,873 10,116 2,240
2013/14 6,639 4,748 9,875 2,066
2012/13 6,818 4,507 9,589 1,950
Source: Claritas, Inc.
Transportation
U.S. Highway 52 runs 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 County
Road 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
Inc.; Continental Nitrogen & Resource Corporation;
Endres Processing Ltd.; SKB (industrial waste containment facility); and Spectro Alloys Corporation.
Mid-American Pipeline Company transports gas from southern states and operates a bottling station at
Pine Bend. Minnesota Pipeline Company transports Canadian and North Dakota crude oil to the Flint
converting 320,000 barrels of crude oil into gasoline each day. This 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 are 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.
- 19 -
Major Employers
Approximate
Number
Employer Product/Service of Employees
Independent School District No. 196
(Rosemount-Apple Valley-Eagan) Public education 4,000
Oil refinery 1,100
Wayne Transports General freight trucking 400
Intermediate School District No. 917 Education 390
Dakota County Technical College Education 294
Bay & Bay Transportation Truck transportation services 200
Grocery store 140
Walbon & Company Freight shipping 130
Spectro Alloys Corporation Aluminum alloys 120
Endres Processing Ltd. Livestock feed 80
Greif Brothers Corporation Multiwall bags 85
City of Rosemount Government 79
Source: This does not purport to be a comprehensive list and is based on an September 2015 best efforts
telephone survey of individual employers. Some employers do not respond to inquiries.
Labor Force Data
Annual Average August
2011 2012 2013 2014 2015
Labor Force:
Dakota County 227,827 228,710 230,288 231,677 234,996
State of Minnesota 2,944,331 2,954,948 2,965,675 2,974,102 3,017,314
Unemployment Rate:
Dakota County 6.1% 5.2% 4.5% 3.7% 3.2%
State of Minnesota 6.5 5.6 4.9 4.1 3.5
Source: Minnesota Department of Employment and Economic Development,
http://www.positivelyminnesota.com. 2015 data are preliminary.
Retail Sales and Effective Buying Income (EBI)
City of Rosemount
Data Year/ Total Retail Total Median
Report Year Sales ($000) EBI ($000) Household EBI
2014/15 $136,258 $677,628 $70,189
2013/14 130,632 605,047 65,135
2012/13 93,961 599,317 65,021
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Dakota County
Data Year/ Total Retail Total Median
Report Year Sales ($000) EBI ($000) Household EBI
2014/15 $7,887,872 $11,518,560 $59,260
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
The 2014/15 Median Household EBI for the State of Minnesota was $50,560. The 2014/15 Median
Household EBI for the United States was $45,448.
Source: Claritas, Inc.
Permits Issued by the City
New/Substantial
New Single Commercial/Industrial
Family Residential Public/Institutional Total Value*
Year Number Value Number Value (All Permits)
2015 67 $17,083,613 13 $12,993,500 $35,631,804
(to 7-31)
2014 180 36,843,535 23 29,065,856 75,168,593
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
* In addition to building permits, the total value includes all other permits issued by the City (i.e. heating,
lighting, plumbing, roof replacement, etc.).
Source: The City.
Recent and Proposed Development
City building levels for 2014 improved over those in 2013, with more residential and commercial
development than experienced in several years. The City is experiencing a steady increase in residential
development, primarily single family residential units. Commercial and industrial development is
increasing while the City is experiencing a decrease in public or institutional development.
New dwelling unit construction increased in 2014 and 2015, fueled by a small single-family development
in the Akron Avenue area. National and regional builders continue to be the primary source of
construction although the City is experiencing some local builders purchasing individual lots from land
developers. The biggest increase in units occurred in December 2014, when a 92-unit senior housing
project pulled a building permit. The privately-owned senior assisted living complex is scheduled to be
open in late fall of 2015. A public senior project started construction in June 2015 with a footings and
foundation permit. The remainder of the permit was issued in August 2015. This 60-unit project will be
an affordable senior rental building owned and operated by the Dakota County Community Development
Agency.
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Additional planning approvals indicate that there will be available lots for construction heading into the
2016 construction season. Bella Vista, a new Lennar subdivision provides an upscale neighborhood with
higher anticipated unit and land valuations. Infrastructure is currently being installed and six lots are
under construction. There appears to be some interest in finishing projects left unfinished during the
economic downturn. The property owner of the Harmony townhome project has found a builder to
continue constructing previously approved townhouse units. A builder has received approval to finish the
GlenRose project, building out the approved townhome project with 44 attached units.
In 2014, approximately $75,168,000 of new valuation was added in the community. Much of that value
continues to come from residential development, through new construction and remodeling projects on
existing 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 construction projects are the majority of
the $24,345,000 industrial construction value experienced in 2014. In the first half of 2015, there was
more commercial than experienced in the previous years. These values are a combination of new
commercial construction and also rehabilitation and expansion of existing buildings. There has been a lot
42 commercial corridor. For 2015, it is anticipated that new residential growth will meet or slightly
exceed the number of units that occurred in 2014, which was 180. Similarly, for 2015 it is anticipated
that industrial expansions will meet the new industrial valuations experienced in 2014, approximately
$10,000,000.
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 7-31-15
nd
Bella Vista 2 Addition/Lennar Single Family 28 18
nd
Glendalough 2/Lennar Single Family 7 0
rd
Glendalough 3/Lennar Single Family 29 0
GlenRose of Rosemount/
Dean Johnson Homes Multi-Family 76 44
st
Greystone 1 Addition/Ryland Single Family 23 0
nd
Greystone 2 Addition/Ryland Single Family 31 2
rd
Greystone 3 Addition/Ryland Single Family 19 7
th
Greystone 4 Addition/Ryland Single Family 47 47
nd
Harmony 2 Addition/CPDC Multi-Family 81 5
th
Harmony 5 Addition/Rsmt Land Corp. Mixed 64 14
th
Harmony 6 Addition/Waconia Development Multi-Family 49 28
th
Prestwick Place 5 Addition/DR Horton Single Family 2 0
th
Prestwick Place 6 Addition/DR Horton Single Family 4 0
th
Prestwick Place 7 Addition/
US Home Corp. Single Family 37 0
th
Prestwick Place 8 Addition/
Anderson/Keyland Single Family 33 18
th
Prestwick Place 9 Addition/Lennar Single Family 8 2
th
Prestwick Place 10 Addition/Lennar Single Family 26 15
Rosewood Estates/Progress Land Single Family 55 1
Wilde Lake Estates/Friedges Single Family 14 14
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Financial Institutions
*
Full service banking is provided by the First State Bank of Rosemount, which had deposits of
$55,526,000 as of June 30, 2015. In addition, branches 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 City of Burnsville 104
Fairview Ridges City of Burnsville 198
Northfield City Hospital City of Northfield
Hospital 49
Nursing Home 40
Regina Senior Living City of Hastings 61
Regina Hospital City of Hastings 69
Southview Acres Health Care Center City of West St. Paul 241
Trinity Care Center City of Farmington 65
Woodlyn Heights Healthcare Center City of Inver Grove Heights 99
Source: Minnesota Department of Health, http://www.health.state.mn.us/.
Education
Public Education
The following districts serve the residents of the City:
*
2014/15
School Grades Enrollment
ISD No. 196 (Rosemount-Apple Valley-Eagan) K-12 27,221
ISD No. 199 (Inver Grove Heights) K-12 3,853
ISD No. 200 (Hastings) K-12 4,548
*
2015/16 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 4,000 full-time and part-time employees District-wide. The physical plant of the
District consists of 18 elementary schools, 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.
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Non-Public Education
City residents are also served by the following private schools:
*
2014/15
School Grades Enrollment
Faithful Shepherd Catholic K-8 464
Trinity School at River Ridge 7-12 293
St. Elizabeth Ann Seton K-8 242
K-8 215
First Baptist K-12 197
Good Shepherd Lutheran K-8 122
St. John the Baptist K-6 95
Christian Heritage Academy K-8 89
Pine Harbor Christian Academy K-6 76
Bereau Lutheran K-8 33
Heritage Lutheran School K 7
Woodpark Montessori K 2
*
2015/16 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.
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 individuals comprise the current City Council:
Expiration of Term
William Droste Mayor December 31, 2018
Mark DeBettignies Councilmember December 31, 2018
Vanessa Demuth Councilmember December 31, 2016
Shaun Nelson Councilmember December 31, 2018
Jeff Weisensel Councilmember 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.
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Growth and development of the City is guided by the Comprehensive Land Use Plan, most recently
adopted in 2009, covering development expectations until the year 2030. The Comprehensive Plan
outlines the long-range land use plan and development policies of the community, and is designed to
encourage and promote orderly development and growth, perpetuating a sound and steady growth in the
City tax base.
The City has 79 regular full-time and 150 seasonal full- and part-time employees.
Services
Police protection for the City is provided by 23 full-time officers, and five other police personnel. Fire
protection is provided by 42 trained volunteers. The City has class 4, 5, and 10 insurance ratings,
depending on the availability of hydrants and location in relation to a fire station.
Municipal water, sanitary sewer and storm water services are provided to virtually all of the developed areas
of the City. The municipal water service is provided by eight wells with four water towers having a total
storage capacity of 3,500,000 gallons. The maximum pumping capacity is 12,096,000 gallons per day with
an average demand of 2,233,593 gallons pumped daily in 2014.
It is the City's policy to finance all of its lateral sanitary sewer and water improvements by special
assessments filed against benefited property; however, there is a provision for deferred assessments, in
which case it may be necessary to provide some tax support. Core facilities are intended to be financed
from water and sewer connection charges, but these too may require some tax support in the event
sufficient connections do not occur in a timely manner. To date, tax support has not been necessary.
The City finances the construction and long-term maintenance of its storm water core facilities through
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
for the construction and maintenance of sewer laterals.
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 18
Total employees 79
*
Does not include part-time AFSCME Employees.
- 25 -
Employee Pensions
All full-time and certain part-time employees of the City are covered by defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers
the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund
(PEPFF), which are cost-sharing multiple-employer public employees retirement plans. GERF members
belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social
Security and Basic members are not. All employees of the City covered by GERF belong to the
Coordinated Plan. All police officers, fire fighters and peace officers who qualify for membership by
GERF PEPFF
2014 $264,550 $303,908
2013 259,654 275,788
2012 251,921 272,834
2011 268,848 256,236
2010 258,857 249,472
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
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 Association 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.
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
2014 $125,594 $171,000
2013 125,632 171,000
2012 91,845 171,000
2011 87,718 166,000
2010 73,399 161,200
For more information regarding the liability of the City with respect to its employees, please reference
Financial Report for fiscal year ended December 31, 2014, included as Appendix IV of this Official
Statement.
Sources: Citys.
- 26 -
Other Post-Employment Benefits
The Governmental Accounting Standards Board (GASB) has issued Statement No. 45, Accounting and
Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions (GASB 45),
which addresses how state and local governments must account for and report their obligations related to
post employment healthcare and other non-pension benefits (referred to as Other Post-Employment
The City does not fund health insurance for retired City employees. All former employees who were
eligible to participate in the
continue their coverage after employment has ended through COBRA. However, this coverage is to be
from the implicit rate
subsidy. Under GASB 45 such costs must be accounted for on an annual basis, however; management
has determined that any liability related to postemployment benefits is immaterial and is not reported the
inancial Report.
Sources: CityComprehensive Annual Financial Reports.
General Fund Budget Summary
2014 Budget 2014 Actual 2015 Budget
Revenues:
General Property Taxes $ 8,688,800 $ 8,645,713 $ 8,827,500
Licenses and Permits 438,300 730,765 535,800
Intergovernmental 580,800 756,579 670,200
Charges for Services 848,300 1,037,621 900,800
Fines and Forfeits 125,000 116,384 125,000
Special Assessments 1,000 4,457 1,000
Recreational Fees 253,600 217,377 248,000
Miscellaneous Revenues 159,300 505,734 111,700
Transfers In 3,500 3,500 3,500
Total Revenues $11,098,600 $12,018,130 $11,423,500
Expenditures:
General Government $ 2,591,500 $ 2,950,084 $ 2,507,300
Public Safety 3,787,000 3,769,187 3,955,500
Public Works 3,363,300 3,234,114 3,457,400
Parks and Recreation 1,356,800 1,304,867 1,373,300
Capital Outlay 0 0 0
Transfers Out 0 475,000 130,000
Total Expenditures $11,098,600 $11,733,252 $11,423,500
Sources: CityComprehensive Annual Financial Reports and 2015 Budget.
- 27 -
Major General Fund Revenue Sources
Revenue 2010 2011 2012 2013 2014
General Property Taxes $8,737,430 $9,032,354 $8,673,013 $8,865,223 $9,060,134
Charges for Services 955,534 1,006,614 1,080,023 1,021,977 1,253,601
Licenses and Permits 453,900 388,615 484,644 522,131 730,765
Intergovernmental 306,892 306,727 340,218 318,986 342,158
Fines and Forfeits 113,675 123,245 129,343 106,617 116,384
Sources: Cityensive Annual Financial Reports.
(The Balance of This Page Has Been Intentionally Left Blank)
- 28 -
APPENDIX I
PROPOSED FORMS OF LEGAL OPINIONS
The Series 2015A City Bonds
$1,525,000
General Obligation Utility Revenue Bonds, Series 2015A
City of Rosemount
Dakota County, Minnesota
We have acted as bond counsel to the City of Rosemount, Dakota County, Minnesota (the
the issuance by the Issuer of its General Obligation Utility Revenue Bonds,
amount of $1,525,000. In such capacity and for the purpose of rendering this opinion we have examined
certified copies of certain proceedings, certifications and other documents, and applicable laws as we
have deemed necessary. Regarding questions of fact material to this opinion, we have relied on certified
proceedings and other certifications of public officials and other documents furnished to us without
undertaking to verify the same by independent investigation. Under existing laws, regulations, rulings
and decisions in effect on the date hereof, and based on the foregoing we are of the opinion that:
1. The Bonds have been duly authorized and executed, and are valid and binding general
obligations of the Issuer, enforceable in accordance with their terms.
2. The principal of and interest on the Bonds are payable primarily from revenues of the
water utility systems of the Issuer, but if necessary for the payment thereof additional valorem taxes are
required by law to be levied on all taxable property of the Issuer, which taxes are not subject to any
limitation as to rate or amount.
3. Interest on the Bonds is excludable from gross income of the recipient for federal income
tax purposes and, to the same extent, is excludable from taxable net income of individuals, trusts, and
estates for Minnesota income tax purposes, and is not a preference item for purposes of the computation
of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax
imposed on individuals, trusts and estates. However, such interest is taken into account in determining
adjusted current earnings for the purpose of computing the federal alternative minimum tax imposed on
certain corporations and is subject to Minnesota franchise taxes on corporations (including financial
institutions) measured by income and the alternative mnimum tax base. The opinion set forth in this
paragraph is subject to the condition that the Issuer comply with all requirements of the Internal Revenue
Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that
interest thereon be, or continue to be, excludable from gross income for federal income tax purposes and
from taxable net income for Minnesota income tax purposes. The Issuer has covenanted to comply with
all such requirements. Failure to comply with certain of such requirements may cause interest on the
Bonds to be included in gross income for federal income tax purposes and taxable net income for
I-1
Minnesota income tax purposes retroactively to the date of issuance of the Bonds. We express no opinion
regarding tax consequences arising with respect to the Bonds other than as expressly set forth herein.
4. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited
generally and by equitable principles, whether considered at law or in equity.
We have not been asked and have not undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we
express no opinion with respect thereto.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or
any changes in law that may hereafter occur.
Dated ______________, 2015 at Minneapolis, Minnesota.
I-2
The Series 2015B City Bonds
$1,445,000
General Obligation Capital Improvement Plan Refunding Bonds, Series 2015B
City of Rosemount
Dakota County, Minnesota
connection with the issuance by the Issuer of its General Obligation Capital Improvement Plan
Refunding Bonds, Series 2015B and issued in the
original aggregate principal amount of $1,445,000. In such capacity and for the purpose of rendering
this opinion we have examined certified copies of certain proceedings, certifications and other documents,
and applicable laws as we have deemed necessary. Regarding questions of fact material to this opinion,
we have relied on certified proceedings and other certifications of public officials and other documents
furnished to us without undertaking to verify the same by independent investigation. Under existing laws,
regulations, rulings and decisions in effect on the date hereof, and based on the foregoing we are of the
opinion that:
1. The Bonds have been duly authorized and executed, and are valid and binding general
obligations of the Issuer, enforceable in accordance with their terms.
2. The principal of and interest on the Bonds are payable primarily from ad valorem
taxes levied by the Issuer, but if necessary for the payment thereof additional ad valorem taxes are
required by law to be levied on all taxable property of the Issuer, which taxes are not subject to any
limitation as to rate or amount.
3. Interest on the Bonds is excludable from gross income of the recipient for federal income
tax purposes and, to the same extent, is excludable from taxable net income of individuals, trusts, and
estates for Minnesota income tax purposes, and is not a preference item for purposes of the computation
of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax
imposed on individuals, trusts and estates. However, such interest is taken into account in determining
adjusted current earnings for the purpose of computing the federal alternative minimum tax imposed on
certain corporations and is subject to Minnesota franchise taxes on corporations (including financial
institutions) measured by income and the alternative minimum tax base. The opinion set forth in this
paragraph is subject to the condition that the Issuer comply with all requirements of the Internal Revenue
Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that
interest thereon be, or continue to be, excludable from gross income for federal income tax purposes and
from taxable net income for Minnesota income tax purposes. The Issuer has covenanted to comply with
all such requirements. Failure to comply with certain of such requirements may cause interest on the
Bonds to be included in gross income for federal income tax purposes and taxable net income for
Minnesota income tax purposes retroactively to the date of issuance of the Bonds. We express no opinion
regarding tax consequences arising with respect to the Bonds other than as expressly set forth herein.
The rights of the owners of the Bonds and the enforceability of the Bonds may be limited by
I-3
generally and by equitable principles, whether considered at law or in equity.
We have not been asked and have not undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly
we express no opinion with respect thereto.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention
or any changes in law that may hereafter occur.
Dated _______________, 2015 at Minneapolis, Minnesota.
I-4
The Authority Bonds
$3,460,000
General Obligation Tax Increment
Refunding Bonds, Series 2015A
Rosemount Port Authority
Dakota County, Minnesota
We have acted as bond counsel to the Rosemount Port Authority, Dakota County, Minnesota (the
originally dated the date hereof and issued in the original aggregate principal amount of $3,460,000. In
such capacity and for the purpose of rendering this opinion we have examined certified copies of certain
proceedings, certifications and other documents, and applicable laws as we have deemed necessary.
Regarding questions of fact material to this opinion, we have relied on certified proceedings and other
certifications of public officials and other documents furnished to us without undertaking to verify the
same by independent investigation. Under existing laws, regulations, rulings and decisions in effect on
the date hereof, and based on the foregoing we are of the opinion that:
1. The Bonds have been duly authorized and executed, and are valid and binding general
obligations of the Issuer, enforceable in accordance with their terms.
2. The principal of and interest on the Bonds are payable primarily from tax increments
resulting from increases in the taxable value of real property in a tax increment financing district of the
Issuer, but if necessary for the payment thereof ad valorem taxes are required by law to be levied on all
taxable property of the Issuer, which taxes are not subject to any limitation as to rate or amount.
3. Interest on the Bonds is excludable from gross income of the recipient for federal income
tax purposes and, to the same extent, is excludable from taxable net income of individuals, trusts, and
estates for Minnesota income tax purposes, and is not a preference item for purposes of the computation
of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax
imposed on individuals, trusts and estates. However, such interest is taken into account in determining
adjusted current earnings for the purpose of computing the federal alternative minimum tax imposed on
certain corporations and is subject to Minnesota franchise taxes on corporations (including financial
institutions) measured by income and the alternative mnimum tax base. The opinion set forth in this
paragraph is subject to the condition that the Issuer comply with all requirements of the Internal Revenue
Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that
interest thereon be, or continue to be, excludable from gross income for federal income tax purposes and
from taxable net income for Minnesota income tax purposes. The Issuer has covenanted to comply with
all such requirements. Failure to comply with certain of such requirements may cause interest on the
Bonds to be included in gross income for federal income tax purposes and taxable net income for
Minnesota income tax purposes retroactively to the date of issuance of the Bonds. We express no opinion
regarding tax consequences arising with respect to the Bonds other than as expressly set forth herein.
I-5
4. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited
generally and by equitable principles, whether considered at law or in equity.
We have not been asked and have not undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we
express no opinion with respect thereto.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or
any changes in law that may hereafter occur.
Dated ______________, 2015 at Minneapolis, Minnesota.
I-6
APPENDIX II
CONTINUING DISCLOSURE CERTIFICATES
The Series 2015A City Bonds
$1,525,000
City of Rosemount, Minnesota
General Obligation Utility Revenue Bonds,
Series 2015A
______, 2015
Revenue Bonds, Series 2015A, (the in the original aggregate principal amount of $1,525,000. The
Bonds are being issued pursuant to resolutions adopted by the City Council of the Issuer (the
ursuant to the
Resolutions, the Issuer has covenanted and agreed to provide continuing disclosure of certain financial
information and operating data and timely notices of the occurrence of certain events. The Issuer hereby
covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed
and delivered by the Issuer for the benefit of the Holders (as defined herein) of the Bonds in order to provide
for the public availability of such information and assist the Participating Underwriter(s) (defined herein) in
complying with the Rule (as defined herein). This Disclosure Certificate, together with the Resolutions,
constitutes the written agreement or contract for the benefit of the Holders of the Bonds that is required by the
Rule.
Section 2. Definitions. In addition to the defined terms set forth in the Resolutions, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the
following capitalized terms shall have the following meanings:
Sections 3 and 4 of this Disclosure Certificate.
nual financial statements, prepared in
nds, Series 2015A, issued by the Issuer in
the original aggregate principal amount of $1,525,000.
designated as a nationally recognized municipal securities information repository and the exclusive portal for
complying with the continuing disclosure requirements of the Rule.
__________, 2015, which
constitutes the final official statement delivered in connection with the Bonds, which is available from the
MSRB.
II-1
ed or a beneficial owner of such a
security.
Bonds.
Alexandria, VA 22314.
Purchaser) required to comply with the Rule in connection with the offering of the Bonds.
-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.
Section 3. Provision of Annual Financial Information and Audited Financial Statements.
(a) The Issuer shall provide, as soon as available, but not later than 12 months after the end of
the Fiscal Year commencing with the year that ends December 31, 2015, the Repository
with an Annual Report which is consistent with the requirements of Section 4 of this
Disclosure Certificate. The Annual Report may be submitted as a single document or as
separate documents comprising a package, and may cross-reference other information as
provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial
Statements of the Issuer may be submitted separately from the balance of the Annual Report
and will be submitted as soon as available.
(b) If the Issuer is unable or fails to provide to the Repository an Annual Report by the date
required in subsection (a), the Issuer shall send a notice of that fact to the Repository and the
MSRB.
(c) The Issuer shall determine each year prior to the date for providing the Annual Report the
name and address of each Repository.
Section 4. Content of Annual Reports
by reference the following sections of the Final Official Statement:
1. City Property Values
2. City Indebtedness
3. City Tax Rates, Levies and Collections
II-2
In addition to the items listed above, the Annual Report shall include Audited Financial Statements
submitted in accordance with Section 3 of this Disclosure Certificate.
Any or all of the items listed above may be incorporated by reference from other documents,
including official statements of debt issues of the Issuer or related public entities, which have been submitted
to the Repository or the SEC. If the document incorporated by reference is a final official statement, it must
also be available from the MSRB. The Issuer shall clearly identify each such other document so incorporated
by reference.
Section 5. Reporting of Material Events.
(a)This Section 5 shall govern the giving of notice of the occurrence of any of the following
spect to the Bonds:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701TEB) or other
material notices or determinations with respect to the tax status of the security, or other
material events affecting the tax status of the security;
7. Modifications to rights of security holders, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the securities, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of the obligated person;
13. The consummation of a merger, consolidation, or acquisition involving an obligated
person or the sale of all or substantially all of the assets of the obligated person, other
than in the ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such actions,
other than pursuant to its terms, if material;
14. Appointment of a successor or additional trustee or the change of name of a trustee, if
material; and
15. Failure of an issuer or obligated person to provide annual financial information as
required.
II-3
(b) The Issuer shall file a notice of such occurrence with the Repository or with the MSRB
within 10 business days of the occurrence of the Material Event.
(c) Unless otherwise required by law and subject to technical and economic feasibility, the
Issuer shall employ such methods of information transmission as shall be requested or
Section 6. EMMA. The SEC has designated EMMA as a nationally recognized municipal
securities information repository and the exclusive portal for complying with the continuing disclosure
requirements of the Rule. Until the EMMA system is amended or altered by the MSRB and the SEC, the
Issuer shall make all filings required under this Disclosure Certificate solely with EMMA.
Section 7. Termination of Reporting Obligation
Resolutions and this Disclosure Certificate shall terminate upon the legal defeasance, the redemption in full
of all Bonds, or payment in full of all the Bonds.
Section 8. Agent. The Issuer may, from time to time, appoint or engage a dissemination agent
to assist it in carrying out its obligations under the Resolutions and this Disclosure Certificate, and may
discharge any such agent, with or without appointing a successor dissemination agent.
Section 9. Amendment; Waiver. Notwithstanding any other provision of the Resolutions or
this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this
Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of nationally
recognized bond counsel to the effect that such amendment or waiver would not, in and of itself, cause a
violation of the Rule. The provisions of the Resolutions constituting the undertaking and this Disclosure
Certificate, or any provision hereof, shall be null and void in the event that the Issuer delivers to the
Repository an opinion of nationally recognized bond counsel to the effect that those portions of the Rule
which require the Resolutions and this Disclosure Certificate are invalid, have been repealed retroactively or
otherwise do not apply to the Bonds. The provisions of the Resolutions and this Disclosure Certificate may
be amended without the consent of the Holders of the Bonds, but only upon the delivery by the Issuer to the
Repository of the proposed amendment and an opinion of nationally recognized bond counsel to the effect
that such amendment, and giving effect thereto, will not adversely affect the compliance of the Resolutions
and this Disclosure Certificate and by the Issuer with the Rule.
Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to
prevent the Issuer from disseminating any other information, using the means of dissemination set forth in
this Disclosure Certificate or any other means of communication, or including any other information in any
Annual Report or notice of occurrence of a Material Event, in addition to that which is required by this
Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of
occurrence of a Material Event in addition to that which is specifically required by this Disclosure Certificate,
the Issuer shall have no obligation under this Disclosure Certificate to update such information or include it in
any future Annual Report or notice of occurrence of a Material Event.
Section 11. Default. In the event of a failure of the Issuer to comply with any provision of this
Disclosure Certificate any Holder of the Bonds may take such actions as may be necessary and appropriate,
including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its
obligations under the 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.
II-4
Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the
Issuer, the Participating Underwriters and Holders from time to time of the Bonds, and shall create no rights
in any other person or entity.
IN WITNESS WHEREOF, we have executed this Disclosure Certificate in our official capacities
effective as of the date and year first written above.
CITY OF ROSEMOUNT, MINNESOTA
Mayor
City Clerk
II-5
The Series 2015B City Bonds
$1,445,000
City of Rosemount, Minnesota
General Obligation Capital Improvement Plan Refunding Bonds,
Series 2015B
______, 2015
Capital Improvement Plan Refunding Bonds, Series 2015B, (the
amount of $1,445,000. The Bonds are being issued pursuant to resolutions adopted by the City Council of
the Issuer (the the date
hereof. Pursuant to the Resolutions, the Issuer has covenanted and agreed to provide continuing disclosure of
certain financial information and operating data and timely notices of the occurrence of certain events. The
Issuer hereby covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed
and delivered by the Issuer for the benefit of the Holders (as defined herein) of the Bonds in order to provide
for the public availability of such information and assist the Participating Underwriter(s) (defined herein) in
complying with the Rule (as defined herein). This Disclosure Certificate, together with the Resolutions,
constitutes the written agreement or contract for the benefit of the Holders of the Bonds that is required by the
Rule.
Section 2. Definitions. In addition to the defined terms set forth in the Resolutions, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the
following capitalized terms shall have the following meanings:
Sections 3 and 4 of this Disclosure Certificate.
Capital Improvement Plan Refunding Bonds, Series 2015B,
issued by the Issuer in the original aggregate principal amount of $1,445,000.
Access system operated by the MSRB and
designated as a nationally recognized municipal securities information repository and the exclusive portal for
complying with the continuing disclosure requirements of the Rule.
constitutes the final official statement delivered in connection with the Bonds, which is available from the
MSRB.
he Issuer.
II-6
security.
Bonds.
of the events listed in Section 5(a) of this Disclosure Certificate.
Alexandria, VA 22314.
r(s) of the Bonds (including the
Purchaser) required to comply with the Rule in connection with the offering of the Bonds.
c2-12(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.
Section 3. Provision of Annual Financial Information and Audited Financial Statements.
(a) The Issuer shall provide, as soon as available, but not later than 12 months after the end of
the Fiscal Year commencing with the year that ends December 31, 2015, the Repository
with an Annual Report which is consistent with the requirements of Section 4 of this
Disclosure Certificate. The Annual Report may be submitted as a single document or as
separate documents comprising a package, and may cross-reference other information as
provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial
Statements of the Issuer may be submitted separately from the balance of the Annual Report
and will be submitted as soon as available.
(b) If the Issuer is unable or fails to provide to the Repository an Annual Report by the date
required in subsection (a), the Issuer shall send a notice of that fact to the Repository and the
MSRB.
(c) The Issuer shall determine each year prior to the date for providing the Annual Report the
name and address of each Repository.
Section 4. Content of Annual Reports
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.
II-7
Any or all of the items listed above may be incorporated by reference from other documents,
including official statements of debt issues of the Issuer or related public entities, which have been submitted
to the Repository or the SEC. If the document incorporated by reference is a final official statement, it must
also be available from the MSRB. The Issuer shall clearly identify each such other document so incorporated
by reference.
Section 5. Reporting of Material Events.
(a)This Section 5 shall govern the giving of notice of the occurrence of any of the following
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701TEB) or other
material notices or determinations with respect to the tax status of the security, or other
material events affecting the tax status of the security;
7. Modifications to rights of security holders, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the securities, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of the obligated person;
13. The consummation of a merger, consolidation, or acquisition involving an obligated
person or the sale of all or substantially all of the assets of the obligated person, other
than in the ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such actions,
other than pursuant to its terms, if material;
14. Appointment of a successor or additional trustee or the change of name of a trustee, if
material; and
15. Failure of an issuer or obligated person to provide annual financial information as
required.
(b) The Issuer shall file a notice of such occurrence with the Repository or with the MSRB
within 10 business days of the occurrence of the Material Event.
II-8
(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
Section 6. EMMA. The SEC has designated EMMA as a nationally recognized municipal
securities information repository and the exclusive portal for complying with the continuing disclosure
requirements of the Rule. Until the EMMA system is amended or altered by the MSRB and the SEC, the
Issuer shall make all filings required under this Disclosure Certificate solely with EMMA.
Section 7. Termination of Reporting Obligation
Resolutions and this Disclosure Certificate shall terminate upon the legal defeasance, or upon the redemption
or payment in full of all the Bonds.
Section 8. Agent. The Issuer may, from time to time, appoint or engage a dissemination agent
to assist it in carrying out its obligations under the Resolutions and this Disclosure Certificate, and may
discharge any such agent, with or without appointing a successor dissemination agent.
Section 9. Amendment; Waiver. Notwithstanding any other provision of the Resolutions or
this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this
Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of nationally
recognized bond counsel to the effect that such amendment or waiver would not, in and of itself, cause a
violation of the Rule. The provisions of the Resolutions constituting the undertaking and this Disclosure
Certificate, or any provision hereof, shall be null and void in the event that the Issuer delivers to the
Repository an opinion of nationally recognized bond counsel to the effect that those portions of the Rule
which require the Resolutions and this Disclosure Certificate are invalid, have been repealed retroactively or
otherwise do not apply to the Bonds. The provisions of the Resolutions and this Disclosure Certificate may
be amended without the consent of the Holders of the Bonds, but only upon the delivery by the Issuer to the
Repository of the proposed amendment and an opinion of nationally recognized bond counsel to the effect
that such amendment, and giving effect thereto, will not adversely affect the compliance of the Resolutions
and this Disclosure Certificate and by the Issuer with the Rule.
Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to
prevent the Issuer from disseminating any other information, using the means of dissemination set forth in
this Disclosure Certificate or any other means of communication, or including any other information in any
Annual Report or notice of occurrence of a Material Event, in addition to that which is required by this
Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of
occurrence of a Material Event in addition to that which is specifically required by this Disclosure Certificate,
the Issuer shall have no obligation under this Disclosure Certificate to update such information or include it in
any future Annual Report or notice of occurrence of a Material Event.
Section 11. Default. In the event of a failure of the Issuer to comply with any provision of this
Disclosure Certificate any Holder of the Bonds may take such actions as may be necessary and appropriate,
including seeking mandamus or specific performance by court order, to cause the Issuer to comply with its
obligations under the 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 Holders from time to time of the Bonds, and shall create no rights
in any other person or entity.
II-9
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
II-10
The Authority Bonds
$3,460,000
Rosemount Port Authority, Minnesota
General Obligation Tax Increment
Refunding Bonds, Series 2015A,
______, 2015
connection with the issuance of its General Obligation Tax Increment Refunding Bonds, Series 2015A,
(the
to resolutions adopted by the Board of Commissioners of the Issuer (the ds are
covenanted and agreed to provide continuing disclosure of certain financial information and operating data
and timely notices of the occurrence of certain events. In addition, the City has adopted a resolution,
authorizing, among other things, the execution of this Continuing Disclosure Certificate. The Issuer hereby
covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed
and delivered by the Issuer and the City for the benefit of the Holders (as defined herein) of the Bonds in
order to provide for the public availability of such information and assist the Participating Underwriter(s)
(defined herein) in complying with the Rule (as defined herein). This Disclosure Certificate, together with
the Resolutions, constitutes the written agreement or contract for the benefit of the Holders of the Bonds that
is required by the Rule.
Section 2. Definitions. In addition to the defined terms set forth in the Resolutions, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the
following capitalized terms shall have the following meanings:
Sections 3 and 4 of this Disclosure Certificate.
ed in accordance
by
the Issuer in the original aggregate principal amount of $3,460,000.
persons with respect to the Bonds.
isclosure Certificate.
designated as a nationally recognized municipal securities information repository and the exclusive portal for
complying with the continuing disclosure requirements of the Rule.
II-11
constitutes the final official statement delivered in connection with the Bonds, which is available from the
MSRB.
security.
obligated persons with respect to the Bonds.
unicipal Securities Rulemaking Board located at 1900 Duke Street, Suite 600,
Alexandria, VA 22314.
Purchaser) required to comply with the Rule in connection with the offering of the Bonds.
-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.
Section 3. Provision of Annual Financial Information and Audited Financial Statements.
(a) The Issuer or the City shall provide, as soon as available, but not later than 12 months after
the end of the Fiscal Year commencing with the year that ends December 31, 2015, the
Repository with an Annual Report which is consistent with the requirements of Section 4 of
this Disclosure Certificate. The Annual Report may be submitted as a single document or as
separate documents comprising a package, and may cross-reference other information as
provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial
Statements of the Issuer may be submitted separately from the balance of the Annual Report
and will be submitted as soon as available.
(b) If the Issuer or the City are unable or fails to provide to the Repository an Annual Report by
the date required in subsection (a), the Issuer or the City 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
by reference the following sections of the Final Official Statement:
1. City Property Values
II-12
2. City Indebtedness
3. City Tax Rates, Levies and Collections
In addition to the items listed above, the Annual Report shall include Audited Financial Statements
submitted in accordance with Section 3 of this Disclosure Certificate.
Any or all of the items listed above may be incorporated by reference from other documents,
including official statements of debt issues of the Issuer or related public entities, which have been submitted
to the Repository or the SEC. If the document incorporated by reference is a final official statement, it must
also be available from the MSRB. The Issuer or the City shall clearly identify each such other document so
incorporated by reference.
Section 5. Reporting of Material Events.
(a)This Section 5 shall govern the giving of notice of the occurrence of any of the following
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701TEB) or other
material notices or determinations with respect to the tax status of the security, or other
material events affecting the tax status of the security;
7. Modifications to rights of security holders, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the securities, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of the obligated person;
13. The consummation of a merger, consolidation, or acquisition involving an obligated
person or the sale of all or substantially all of the assets of the obligated person, other
than in the ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such actions,
other than pursuant to its terms, if material;
14. Appointment of a successor or additional trustee or the change of name of a trustee, if
material; and
II-13
15. Failure of an issuer or obligated person to provide annual financial information as
required.
(b) The Issuer or the City shall file a notice of such occurrence with the Repository or with the
MSRB within 10 business days of the occurrence of the Material Event.
(c) Unless otherwise required by law and subject to technical and economic feasibility, the
Issuer or the City shall employ such methods of information transmission as shall be
requested or recomm
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 and the City shall make all filings required under this Disclosure Certificate solely with EMMA.
Section 7. Termination of Reporting Obligation. T
the Resolutions and this Disclosure Certificate shall terminate upon the legal defeasance, the redemption in
full of all Bonds, or payment in full of all the Bonds.
Section 8. Agent. The Issuer and the City may, from time to time, appoint or engage a
dissemination agent to assist it in carrying out its obligations under the Resolutions and this Disclosure
Certificate, and may discharge any such agent, with or without appointing a successor dissemination agent.
Section 9. Amendment; Waiver. Notwithstanding any other provision of the Resolutions or
this Disclosure Certificate, the Issuer and City 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 constituting the undertaking and this
Disclosure Certificate, or any provision hereof, shall be null and void in the event that the Issuer and City
deliver to the Repository an opinion of nationally recognized bond counsel to the effect that those portions of
the Rule which require the Resolutions and this Disclosure Certificate are invalid, have been repealed
retroactively or otherwise do not apply to the Bonds. The provisions of the Resolutions and this Disclosure
Certificate may be amended without the consent of the Holders of the Bonds, but only upon the delivery by
the Issuer and City to the Repository of the proposed amendment and an opinion of nationally recognized
bond counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the
compliance of the Resolutions and this Disclosure Certificate and by the Issuer and the City with the Rule.
Section 10. Additional Information. Nothing in this Disclosure Certificate shall be deemed to
prevent the Issuer and City from disseminating any other information, using the means of dissemination set
forth in this Disclosure Certificate or any other means of communication, or including any other information
in any Annual Report or notice of occurrence of a Material Event, in addition to that which is required by this
Disclosure Certificate. If the Issuer and City choose 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 and City shall have no obligation under this Disclosure Certificate to update such
information or include it in any future Annual Report or notice of occurrence of a Material Event.
Section 11. Default. In the event of a failure of the Issuer or City 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 or City
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 or City to comply with this
Disclosure Certificate shall be an action to compel performance.
II-14
Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the
Issuer, the City, the Participating Underwriters and Holders from time to time of the Bonds, and shall create
no rights in any other person or entity.
IN WITNESS WHEREOF, we have executed this Disclosure Certificate in our official capacities
effective as of the date and year first written above.
ROSEMOUNT PORT AUTHORITY,
MINNESOTA
___________________________________
Chair
___________________________________
Secretary
CITY OF ROSEMOUNT, MINNESOTA
Mayor
City Clerk
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APPENDIX III
SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND
MINNESOTA REAL PROPERTY VALUATION
Following is a summary of certain statutory provisions relative to tax levy procedures, tax payment and
credit procedures, and the mechanics of real property valuation. The summary does not purport to be
inclusive of all such provisions or of the specific provisions discussed, and is qualified by reference to the
complete text of applicable statutes, rules and regulations of the State of Minnesota.
Property Valuations (Chapter 273, Minnesota Statutes)
Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by statute, be
appraised at least once every five years as of January 2 of the year of appraisal. With certain exceptions,
all property is valued at its market value, which is the value the assessor determines to be the price the
Minnesota Legislature established the Estimated Market Value as the value used to calculate a
Economic Market Value. The Economic Market Value is the value of locally assessed real property
vided by the State of Minnesota
Department 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 and 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 taxable market value of a homestead with an
effective property tax prior to the elimination of the homestead credit. The MVHE applies to property
Property Tax Payments and Delinquencies
(Chapters 275, 276, 277, 279-282 and 549, Minnesota Statutes)
Ad valorem property taxes levied by local governments in Minnesota are extended and collected by the
various counties within the State. Each taxing jurisdiction is required to certify the annual tax levy to the
county auditor within five (5) working days after December 20 of the year preceding the collection year.
A listing of property taxes due is prepared by the county auditor and turned over to the county treasurer
on or before the first business day in March.
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The county treasurer is responsible for collecting all property taxes within the county. Real estate and
personal property tax statements are mailed out by March 31. One-half (1/2) of the taxes on real property
is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid
by their due date are assessed a penalty on homestead property of 2% until May 31 and increased to 4%
on June 1. The penalty on nonhomestead property is assessed at a rate of 4% until May 31 and increased
to 8% on June 1. Thereafter, an additional 1% penalty shall accrue each month through October 1 of the
collection year for unpaid real property taxes. In the case of the second installment of real property taxes
due October 15, a penalty of 2% on homestead property and 4% on nonhomestead property is assessed.
The penalty for homestead property increases to 6% on November 1 and again to 8% on December 1.
The penalty for nonhomestead property increases to 8% on November 1 and again to 12% on
December 1. Personal property taxes remaining unpaid on May 16 are deemed to be delinquent and a
penalty of 8% attaches to the unpaid tax. However, personal property that is owned by a tax-exempt
entity, but is treated as taxable by virtue of a lease agreement, is subject to the same delinquent property
tax penalties as real property.
On the first business day of January of the year following collection all delinquencies are subject to an
additional 2% penalty, and those delinquencies outstanding as of February 15 are filed for a tax lien
judgment with the district court. By March 20 the county auditor files a publication of legal action and a
mailing of notice of action to delinquent parties. Those property interests not responding to this notice
have judgment entered for the amount of the delinquency and associated penalties. The amount of the
judgment is subject to a variable interest determined annually by the Department of Revenue, and equal to
the adjusted prime rate charged by banks but in no event is the rate less than 10% or more than 14%.
Property owners subject to a tax lien judgment generally have three years (3) to redeem the property.
After expiration of the redemption period, unredeemed properties are declared tax forfeit with title held in
trust by the State of Minnesota for the respective taxing districts. The county auditor, or equivalent
thereof, then sells those properties not claimed for a public purpose at auction. The net proceeds of the
sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any
remaining balance in most cases being divided on the following basis: county - 40%; town or city - 20%;
and school district - 40%.
Property Tax Credits (Chapter 273, Minnesota Statutes)
In addition to adjusting the taxable value for various property types, primary elements of Minnesota's
property tax relief system are: property tax levy reduction aids; the homestead credit refund and the
scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases.
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
defined as the
amount remaining after deducting from gross debt the amount of current revenues that are applicable
within the current fiscal year to the payment of any debt and the aggregate of the principal of the
following:
1. Obligations issued for improvements that are payable wholly or partially from the proceeds of
special assessments levied upon benefited property.
2. Warrants or orders having no definite or fixed maturity.
3. Obligations payable wholly from the income from revenue producing conveniences.
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4. Obligations issued to create or maintain a permanent improvement revolving fund.
5. Obligations issued for the acquisition and betterment of public waterworks systems, and public
lighting, heating or power systems, and any combination thereof, or for any other public
convenience from which revenue is or may be derived.
6. Certain debt service loans and capital loans made to school districts.
7. Certain obligations to repay loans.
8. Obligations specifically excluded under the provisions of law authorizing their issuance.
9. Certain obligations to pay pension fund liabilities.
10. Debt service funds for the payment of principal and interest on obligations other than those
described above.
11. Obligations issued to pay judgments against the municipality.
Levies for General Obligation Debt
(Sections 475.61 and 475.74, Minnesota Statutes)
Any municipality that issues general obligation debt must, at the time of issuance, certify levies to the
county auditor of the county(ies) within which the municipality is situated. Such levies shall be in an
amount that if collected in full will, together with estimates of other revenues pledged for payment of the
obligations, produce at least five percent in excess of the amount needed to pay principal and interest
when due. Notwithstanding any other limitations upon the ability of a taxing unit to levy taxes, its ability
to levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is without
limitation as to rate or amount.
Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes)
orty percent of the increase in
commercial-industrial (including public utility and railroad) net tax capacity valuation since 1971 in each
assessment district in the Minneapolis/St. Paul seven-county metropolitan area (Anoka, Carver, Dakota,
excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and
Washington Counties) is contributed to an area-wide tax base. A distribution index, based on the factors
of population and real property market value per capita, is employed in determining what proportion of
the net tax capacity value in the area-wide tax base shall be distributed back to each assessment district.
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STATUTORY FORMULAE: CONVERSION OF TAXABLE MARKET VALUE (TMV) TO
NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS
Local Tax Local Tax
Payable Payable
Property Type 2011-2014 2015
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
1.25% 1.25%
Regular (4a)
0.75%
Low-Income (4d)
Up to $100,000 0.75%
Over $100,000 0.25%
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 0.55% 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%
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 $1,900,000(c) 0.50%(b) 0.50%(b)
Over $1,900,000(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)
Legislative increases, payable 2015. Historical valuations are: Payable 2014 - $1,500,000; Payable 2013 - $1,290,000;
Payable 2012 - $1,210,000; and Payable 2011 - $1,140,000.
NOTE: For purposes of the State general property tax only, the net tax capacity of non-commercial class 4c(1) seasonal
residential recreational property has the following class rate structure: First $76,000 0.40%; $76,000 to $500,000
1.00%; and over $500,000 1.25%. In addition to the State tax base exemptions referenced by property classification,
airport property exempt from city and school district property taxes under M.S. 473.625 is exempt from the State
general property tax (MSP International Airport and Holman Field in St. Paul are exempt under this provision).
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APPENDIX IV
EXCERPT OF 2014 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Data on the following pages was extracted from the City Comprehensive Annual Financial Report for
fiscal year ended December 31, 2014. 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 comprehensive annual financial reports for the years ending 1996 through 2013 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 Certificate 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 2014 fiscal year to GFOA.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable
and efficiently organized comprehensive annual financial report (CAFR), whose contents conform to
program standards. Such CAFR must satisfy both generally accepted accounting principles and
applicable legal requirements. A Certificate of Achievement is valid for a period of one year only.
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PROPOSAL SALE DATE: October 20, 2015
City of Rosemount, Minnesota
*
$1,525,000General Obligation Utility Revenue Bonds, Series 2015A
For the Series 2015A City 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 $1,508,225) plus accrued interest, if any, to the date of delivery.
Interest Dollar Interest Dollar
Year Rate (%) Yield (%) Price Year Rate (%) Yield (%) Price
2017 % % % 2022 % % %
2018 % % % 2023 % % %
2019 % % % 2024 % % %
2020 % % % 2025 % % %
2021 % % % 2026 % % %
Designation of Term Maturities
Years of Term Maturities
In making this offer on the sale date of October 20, 2015 we accept all of the terms and conditions of the Terms of Proposal published in
the Preliminary Official Statement dated September 30
Series 2015A City BondsSeries 2015A City Bonds in
accordance with said Terms of Proposal, we reserve the right to withdraw our offer, whereupon the deposit accompanying it will be
immediately returned. All blank spaces of this offer are intentional and are not to be construed as an omission.
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: ________________________________
......................................................................................................................................................................................................
.....................
________________________________ Phone: 651-223-3000
*
Preliminary; subject to change. Fax: 651-223-3046
Email: bond_services@springsted.com
Website: www.springsted.com
PROPOSAL SALE DATE: October 20, 2015
City of Rosemount, Minnesota
$1,445,000*General Obligation Capital Improvement Plan Bonds, Series 2015B
For the 2015B City 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 $1,433,080) plus accrued interest, if any, to the date of delivery.
Interest Dollar Interest Dollar
Year Rate (%) Yield (%) Price Year Rate (%) Yield (%) Price
2017 % % % 2022 % % %
2018 % % % 2023 % % %
2019 % % % 2024 % % %
2020 % % % 2025 % % %
2021 % % %
Designation of Term Maturities
Years of Term Maturities
In making this offer on the sale date of October 20, 2015 we accept all of the terms and conditions of the Terms of Proposal published in
the Preliminary Official Statement dated September 30of the
Series 2015B City BondsSeries 2015B City Bonds in
accordance with said Terms of Proposal, we reserve the right to withdraw our offer, whereupon the deposit accompanying it will be
immediately returned. All blank spaces of this offer are intentional and are not to be construed as an omission.
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: ________________________________
......................................................................................................................................................................................................
.....................
________________________________ Phone: 651-223-3000
*
Preliminary; subject to change. Fax: 651-223-3046
Email: bond_services@springsted.com
Website: www.springsted.com
PROPOSAL SALE DATE: October 20, 2015
Rosemount Port Authority, Minnesota
$3,460,000*General Obligation Tax Increment Refunding Bonds, Series 2015A
For the Authority 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 $3,420,210) plus accrued interest, if any, to the date of delivery.
Interest Dollar Interest Dollar
Year Rate (%) Yield (%) Price Year Rate (%) Yield (%) Price
2018 % % % 2026 % % %
2019 % % % 2027 % % %
2020 % % % 2028 % % %
2021 % % % 2029 % % %
2022 % % % 2030 % % %
2023 % % % 2031 % % %
2024 % % % 2032 % % %
2025 % % %
Designation of Term Maturities
Years of Term Maturities
In making this offer on the sale date of October 20, 2015 we accept all of the terms and conditions of the Terms of Proposal published in
the Preliminary Official Statement dated September 30mount of the
ith said
Terms of Proposal, we reserve the right to withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All
blank spaces of this offer are intentional and are not to be construed as an omission.
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 Authority.
Attest: _______________________________ Date: ________________________________
......................................................................................................................................................................................................
.....................
________________________________ Phone: 651-223-3000
*
Preliminary; subject to change. Fax: 651-223-3046
Email: bond_services@springsted.com
Website: www.springsted.com