HomeMy WebLinkAbout8.a. Accept Bids and Award Sale - G.O. Water Utility Revenue Bonds, Series 2015A
EXECUTIVE SUMMARY
City Council Meeting Date: October 20, 2015
AGENDA ITEM: Accept Bids and Award Sale – G.O.
Water Utility Revenue Bonds, Series
2015A
AGENDA SECTION:
Old Business
PREPARED BY: Jeff May, Finance Director AGENDA NO. 8.a.
ATTACHMENTS: Resolution and Official Statement APPROVED BY: ddj
RECOMMENDED ACTION: Motion to adopt a Resolution Awarding the Sale of
$1,525,000 General Obligation Water Utility Revenue Bonds, Series 2015A; and Providing
for their Issuance.
ISSUE
Accept bids and award sale of revenue bonds for the construction of Well #16 and well house.
BACKGROUND
This item is on the agenda for Council to formally award the sale of the water utility revenue bonds. At
10:00 A.M. Tuesday, October 20, 2015, sealed bids for G.O. Water Utility Revenue 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 on Tuesday, October 6, 2015, with a representative from Moody’s and from Springsted
speaking with me regarding the City of Rosemount. On Tuesday, October 13th, our rating was taken to a
committee of Moody’s for evaluation and our Aa2 rating was affirmed at that meeting for our new debt as
well as all of our existing debt.
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.
468491v2 JSB RS125-16
City of Rosemount
Dakota County, Minnesota
Resolution No. ______
A Resolution Awarding the Sale of $1,525,000
General Obligation Utility Revenue Bonds, Series 2015A;
And Providing for Their Issuance
BE IT RESOLVED By the City Council of the City of Rosemount, Dakota County, Minnesota
(the “City”) as follows:
Section 1. Sale of Bonds.
1.01 Authorization. It is hereby determined that:
(a) the City is authorized by Minnesota Statutes, Section 444.075 and Minnesota Statutes,
Chapter 475, as amended (collectively, the “Act”), to finance all or a portion of the cost of
improvements to the water utility system of the City, including the drilling of a new water well and
constructing a well house (the “Water Improvements”), by the issuance of general obligation bonds
of the City payable from the net revenues of the water utility system of the City; and
(b) it is necessary and desirable that the City issue its $1,525,000 General Obligation Utility
Revenue Bonds, Series 2015A (the “Bonds”) to finance the Water Improvements.
1.02. Award to the Purchaser and Interest Rates. The proposal of _______________________
(the “Purchaser”) to purchase the Bonds described in the 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, if any, for Bonds bearing interest as
follows:
Year Interest Rate Year Interest Rate
2017 % 2022 %
2018 % 2023 %
2019 % 2024 %
2020 % 2025 %
2021 % 2026 %
1.03. Purchase. Any original issue premium and any rounding amount shall be credited to the Debt
Service Fund hereinafter created or deposited in the Construction Fund hereinafter created, as
determined by the City Finance Director and in consultation with the City’s municipal advisor. The
City Finance Director is directed to retain the good faith check of the Purchaser, pending
completion of the sale of the Bonds, and to return the good faith checks of the unsuccessful
proposers. The Mayor and City Clerk are authorized to execute a contract with the Purchaser on
behalf of the City.
1.04. Terms and Principal Amount of the Bonds. The City will forthwith issue and sell the Bonds
pursuant to the Act in the total principal amount of $1,525,000, originally dated November 19,
2015, the Bonds being in fully registered form and issued in the denomination of $5,000 each or any
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integral multiple thereof, numbered No. R-1 and upward, bearing interest as above set forth, and
which mature on February 1 in the years and amounts as follows:
Year Amount Year Amount
2017 $140,000 2022 $155,000
2018 145,000 2023 155,000
2019 145,000 2024 160,000
2020 150,000 2025 160,000
2021 150,000 2026 165,000
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 provision of the applicable
Bond(s).
1.05. Optional Redemption. The City 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 City and in such manner as the City will determine. If less than all Bonds
of a maturity are called for redemption, the City will notify DTC (as defined in Section 7 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 15th day of the immediately preceding month, whether or
not that day is a business day.
2.03. Registration. The City will appoint, and will maintain, a bond registrar, transfer agent,
authenticating agent and paying agent (the “Registrar”). The effect of registration and the rights and
duties of the City and the Registrar with respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate trust office a bond register in
which the Registrar provides for the registration of ownership of Bonds and the registration of
transfers and exchanges of Bonds entitled to be registered, transferred or exchanged.
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(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 registered owner or the owner’s attorney in writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly cancelled by
the Registrar and thereafter disposed of as directed by the City.
(e) 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 City and the Registrar may treat the person in whose name a
Bond is registered in the bond register as the absolute owner of the Bond, whether the Bond is
overdue or not, 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 owner’s order will be valid and effectual to satisfy and discharge the liability upon the Bond
to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge upon the owner thereof for a
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
City 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 City. If the
mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in
accordance with its terms it is not necessary to issue a new Bond prior to payment.
(i) Redemption. In the event any of the Bonds are called for redemption, notice thereof
identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the
redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be
redeemed at the address shown on the registration books kept by the Registrar and by publishing the
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notice if required by law. Failure to give notice by publication or by mail to registered owners, or
any defect therein, will not affect the validity of the proceedings for the redemption of Bonds.
Bonds so called for redemption will cease to bear interest after the specified redemption date,
provided that the funds for the redemption are on deposit with the place of payment at that time.
2.04. Appointment of Initial Registrar. The City appoints U.S. Bank National Association, St.
Paul, Minnesota, as the initial Registrar. The Mayor and the City Clerk are authorized to execute and
deliver, on behalf of the City, 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 City agrees to pay the reasonable and customary charges of the Registrar
for the services performed. The City reserves the right to remove the Registrar upon 30 days’ notice
and upon the appointment of a successor Registrar, in which event the 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 Council, the City Clerk must transmit to the Registrar monies 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 City Clerk and executed on behalf of the City by the signatures of the Mayor and the City
Clerk., provided that all signatures may be printed, engraved or lithographed facsimiles of the
originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds
ceases to be such officer before the delivery of any Bond, that signature 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 City Finance Director will deliver the same to the
Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore
made and executed, and the Purchaser is not obligated to see to the application of the purchase
price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds one or
more typewritten temporary Bonds in substantially the form set forth in Section 3 with such
changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon
the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and
cancelled.
Section 3. Form of Bond.
3.01. Form. The Bonds will be printed or typewritten in substantially the form attached hereto as
Exhibit B.
3.02. Approving Legal Opinion. The City Clerk 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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Section 4. Payment; Security; Pledges and Covenants.
4.01. Debt Service Fund. The Bonds will be payable from the General Obligation Utility Revenue
Bonds, Series 2015A Debt Service Fund (the “Debt Service Fund”) hereby created. The Debt Service
Fund shall be administered and maintained by the City Finance Director as a bookkeeping account
separate and apart from all other funds maintained in the official financial records of the City.
The City will continue to maintain and operate its Water Fund, to which will be credited all gross
revenues of the water utility system and out of which will be paid all normal and reasonable expenses
of current operations of such water utility system. Any balances therein are deemed net revenues (the
“Net Revenues”) and will be transferred, from time to time, to the Debt Service Fund hereby created,
which fund will be used only to pay principal of and interest on the Bonds, and any other bonds
similarly authorized. There will always be retained in the Debt Service Fund a sufficient amount to
pay principal of and interest on all of the Bonds, and the Finance Director must report any current
or anticipated deficiency in the Debt Service Fund to the City Council. If a payment of principal or
interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund to
pay the same, the City Finance Director is directed to pay such principal or interest from the general
fund of the City, and the general fund will be reimbursed for the advances out of the proceeds of
Net Revenues of the Water Fund and taxes when collected. There is also appropriated to the Debt
Service Fund (i) capitalized interest financed from the Bond proceeds, if any; (ii) any amount over the
minimum purchase price of the Bonds paid by the Purchaser, to the extent designated for deposit in the
Debt Service Fund in accordance with Section 1.03, if any; and (iii) the accrued interest paid by the
Purchaser upon closing and delivery of the Bonds, if any.
4.02 Construction Fund. The City hereby creates the General Obligation Utility Revenue Bonds,
Series 2015A Construction Fund (the “Construction Fund”) to be administered and maintained by the
City Finance Director as a bookkeeping account separate and apart from all other funds maintained in
the official financial records of the City. Proceeds of the Bonds, less the appropriations made in
Section 4.01(a) hereof, together with any other funds appropriated during the construction of the Water
Improvements financed by the Bonds will be deposited in the Construction Fund to be used solely to
defray expenses of the Water Improvements. When the Water Improvements are completed and the
cost thereof paid, the Construction Fund is to be closed and any funds remaining may be deposited in
Debt Service Fund.
4.03. City Covenants. The City Council covenants and agrees with the holders of the Bonds that
so long as any of the Bonds remain outstanding and unpaid, it will keep and enforce the following
covenants and agreements:
(a) The City will continue to maintain and efficiently operate the water utility system as a public
utility and convenience free from competition of other like municipal utilities and will cause all
revenues therefrom to be deposited in bank accounts and credited to the Water Fund as
hereinabove provided, and will make no expenditures from that account except for a duly
authorized purpose and in accordance with this resolution.
(b) The City will also maintain the Debt Service Fund as a separate account and will cause
money to be credited thereto from time to time, out of Net Revenues from the water utility system
in sums sufficient to pay principal of and interest on the Bonds when due.
(c) The City will keep and maintain proper and adequate books of records and accounts
separate from all other records of the City in which will be complete and correct entries as to all
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transactions relating to the water utility system and which will be open to inspection and copying by
any bondholder, or the bondholder's agent or attorney, at any reasonable time, and it will furnish
certified transcripts therefrom upon request and upon payment of a reasonable fee therefor, and said
account will be audited at least annually by a qualified public accountant and statements of such
audit and report will be furnished to all bondholders upon request.
(d) The City Council will cause persons handling revenues of the water utility system to be
bonded in reasonable amounts for the protection of the City and the bondholders and will cause the
funds collected on account of the operations of the water utility system to be deposited in a bank
whose deposits are guaranteed under the Federal Deposit Insurance Law.
(e) The City Council will keep the water utility system insured at all times against loss by fire,
tornado and other risks customarily insured against with an insurer or insurers in good standing, in
such amounts as are customary for like plants, to protect the holders, from time to time, of the
Bonds and the City from any loss due to any such casualty and will apply the proceeds of such
insurance to make good any such loss.
(f) The City and each and all of its officers will punctually perform all duties with reference to
the water utility system as required by law.
(g) The City will impose and collect charges of the nature authorized by Minnesota Statutes,
Section 444.075 at the times and in the amounts required to produce Net Revenues adequate to pay
all principal and interest when due on the Bonds and to create and maintain such reserves securing
said payments as may be provided in this resolution.
(h) The City Council will levy general ad valorem taxes on all taxable property in the City, when
required to meet any deficiency in pledged Net Revenues.
(i) The City hereby determines that the estimated collection of Net Revenues herein pledged
for the payment of principal and interest on the Bonds will produce at least 5% in excess of the
amount needed to meet, when due, the principal and interest payments on such portion of the
Bonds.
4.03. Debt Service Coverage. It is determined that estimated collection of Net Revenues of the
water utility system will produce at least 5% 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.
4.05. General Obligation Pledge. For the prompt and full payment of the principal and interest
on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the
City will be and are hereby irrevocably pledged. If the balance in the Debt Service Fund is ever
insufficient to pay all principal and interest then due on the Bonds and any other bonds payable
therefrom, the deficiency will be promptly paid out of monies in the general fund of the City which
are available for such purpose, and such general fund may be reimbursed with or without interest
from the Debt Service Fund when a sufficient balance is available therein
4.06. County Auditor Certificate as to Registration. The City Clerk 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 Minnesota Statutes, Section 475.63.
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Section 5. Authentication of Transcript.
5.01. City Proceedings and Records. The officers of the City are authorized and directed to
prepare and furnish to the Purchaser and to the attorneys approving the Bonds, certified copies of
proceedings and records of the City relating to the Bonds and to the financial condition and affairs
of the City, and such other 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 City as to the facts stated therein.
5.02. Certificate as to Official Statement. The Mayor and City Clerk are hereby authorized and
directed to certify that they have examined the Official Statement prepared and circulated in
connection with the issuance and sale of the Bonds and that to the best of their knowledge and
belief the Official Statement is a complete and accurate representation of the facts and
representations made therein as of the date of the Official Statement.
5.03 Other Certificates. The Mayor and City Clerk are hereby authorized and directed to furnish
to the Purchaser at the closing such certificates as are required as a condition of sale. Unless
litigation shall have been commenced and be pending questioning the Bonds or the organization of
the City or incumbency of its officers, at the closing the Mayor and the City Clerk shall also execute
and deliver to the Purchaser a suitable certificate as to absence of material litigation and a certificate
as to payment for and delivery of the Bonds.
Section 6. Tax Covenant.
6.01. Tax Exempt Bonds. The City covenants and agrees with the holders from time to time of
the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any
action which would cause the interest on the Bonds to become subject to taxation under the Internal
Revenue Code of 1986, as amended (the “Code”), and the Treasury Regulations promulgated
thereunder, in effect at the time of such actions, and that it will take or cause its officers, employees
or agents to take, all affirmative action within its power that may be necessary to ensure that such
interest will not become subject to taxation under the Code and applicable Treasury Regulations, as
presently existing or as hereafter amended and made applicable to the Bonds.
6.02. Rebate. The City will comply with requirements necessary under the Code to establish and
maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the
Code, including without limitation requirements relating to temporary periods for investments,
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.
6.03. Not Private Activity Bonds. The City further covenants not to use the proceeds of the
Bonds or to cause or permit them or any of them to be used, in such a manner as to cause the
Bonds to be “private activity bonds” within the meaning of Sections 103 and 141 through 150 of
the Code.
6.04. Qualified Tax -Exempt Obligations. In order to qualify the Bonds as “qualified tax-exempt
obligations” within the meaning of Section 265(b)(3) of the Code, the City makes the following
factual statements and representations:
(a) the Bonds are not “private activity bonds” as defined in Section 141 of the Code;
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(b) the City hereby designates the Bonds as “qualified tax-exempt obligations” for purposes of
Section 265(b)(3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations (other than private activity
bonds, that are not qualified 501(c)(3) bonds) which will be issued by the City (and all subordinate
entities of the City) during calendar year 2015 will not exceed $10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City during calendar year 2015 have
been designated for purposes of Section 265(b)(3) of the Code.
6.05. Procedural Requirements. The City 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 7. Book-Entry System; Limited Obligation of City.
7.01. 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 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 successors and assigns (“DTC”). Except as provided in this section, all of the
outstanding Bonds will be registered in the registration books kept by the Registrar in the name of
Cede & Co., as nominee of DTC.
7.02. 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 City, the Registrar and the Paying Agent will
have no responsibility or obligation to any broker dealers, banks and other financial institutions from
time to time for which DTC holds Bonds as securities depository (the “Participants”) or to any
other person on behalf of which a Participant holds an interest in the Bonds, including but not
limited to any 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 City, the Registrar and the Paying Agent may treat and consider the person in
whose name each Bond is registered in the registration books kept by the Registrar as the holder and
absolute 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 and effectual to fully satisfy and
discharge the City’s obligations with respect to payment of principal of, premium, if any, or interest
on the Bonds to the extent of the sum or sums so paid. No person other than a registered owner
of Bonds, as shown in the registration books kept by the Registrar, will receive a certificated Bond
evidencing the obligation of this resolution. Upon delivery by DTC to the City Clerk of a written
notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co.,
the words “Cede & Co.,” will refer to such new nominee of DTC; and upon receipt of such a
notice, the City Clerk will promptly deliver a copy of the same to the Registrar and Paying Agent.
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7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket
Issuer Letter of Representations (the “Representation Letter”) which will govern payment of
principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any
Paying Agent or Registrar subsequently appointed by the City with respect to the Bonds will agree to
take all action necessary for all representations of the City in the Representation Letter with respect
to the Registrar and Paying Agent, respectively, to be complied with at all times.
7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the City
Council, determines that it is in the best interests of the persons having beneficial interests in the
Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will
notify the Participants, of the availability through DTC of Bond certificates. In such event the City
will issue, transfer and exchange Bond certificates as requested by DTC and any other registered
owners in accordance with the provisions of this Resolution. DTC may determine to discontinue
providing its services with respect to the Bonds at any time by giving notice to the City and
discharging its responsibilities with respect thereto under applicable law. In such event, if no
successor securities depository is appointed, the City will issue and the Registrar will authenticate
Bond certificates in accordance with this resolution and the provisions hereof will apply to the
transfer, exchange and method of payment thereof.
7.05. 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 the manner provided in DTC’s Operational
Arrangements as set forth in the Representation Letter.
Section 8. Continuing Disclosure.
8.01. City Compliance with Provisions of Continuing Disclosure Certificate. The City 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 City
to comply with the Continuing Disclosure Certificate will not be considered an event of default with
respect to the Bonds; however, such actions as may be necessary and appropriate, including seeking
mandate or specific performance by court order, to cause the City to comply with its obligations
under this section.
8.02. Execution of Continuing Disclosure Certificate. “Continuing Disclosure Certificate” means
that certain Continuing Disclosure Certificate executed by the Mayor and City Clerk and dated the
date of issuance and delivery of the Bonds, as originally executed and as it may be amended from
time to time in accordance with the terms thereof.
Section 9. Defeasance.
9.01. Defeasance. When all Bonds and all interest thereon, have been discharged as provided in
this section, all pledges, covenants and other rights granted by this resolution to the holders of the
Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and
full payment of the principal of and interest on the Bonds will remain in full force and effect. The
City may discharge all Bonds which are due on any date by depositing with the Registrar on or
before that date a sum sufficient for the payment thereof in full. If any Bond should not be paid
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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.
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RESOLUTION 2015-____
11
468491v2 JSB RS125-16
ADOPTED this 20th day of October, 2015, by the City Council of the City of Rosemount.
___________________________________
William H. Droste, Mayor
ATTEST:
_____________________________________
Clarissa Hadler, City Clerk
RESOLUTION 2015-____
468491v2 JSB RS125-16
CERTIFICATE
STATE OF MINNESOTA )
COUNTY OF DAKOTA ) ss
CITY OF ROSEMOUNT )
I am the duly appointed, acting and qualified City Clerk of the City of Rosemount, Dakota County,
Minnesota do hereby certify that I have examined the City of Rosemount records and the Minute
Book of said City for the meeting of the 20th of October, 2015 and that the attached copy of the
Resolution 2015-___ A RESOLUTION AWARDING THE SALE OF $1,525,000 GENERAL
OBLIGATION UTILITY REVENUE BONDS, SERIES 2015A; AND PROVIDING FOR
THEIR ISSUANCE was approved and is a true and correct copy of the City Proceedings relating to
said Resolution.
IN WITNESS WHEREOF, I have hereunto set my hand and seal of said City this ____ day of
______________, 2015.
City Clerk
City of Rosemount
Dakota County, Minnesota
RESOLUTION 2015-____
A-1
468491v2 JSB RS125-16
EXHIBIT A
PROPOSALS
RESOLUTION 2015-____
468491v2 JSB RS125-16 B-1
EXHIBIT B
FORM OF BOND
No. R -___ UNITED STATES OF AMERICA $___________
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF ROSEMOUNT
GENERAL OBLIGATION
UTILITY REVENUE BOND, SERIES 2015A
Rate
Maturity
Date of
Original Issue
CUSIP
February 1, 20__ November 19, 2015
Registered Owner: Cede & Co.
The City of Rosemount, Minnesota, a duly organized and existing municipal corporation in Dakota
County, Minnesota (the “City”), acknowledges itself to be indebted and for value received promises
to pay to the Registered Owner specified above, or registered assigns, the principal sum set forth
above on the maturity date specified above 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 City have been and are hereby irrevocably pledged.
This Bond is one of an issue in the aggregate principal amount of $1,525,000 all of like original
issue date and tenor, except as to number, maturity date, and interest rate, all issued pursuant to a
resolution adopted by the City Council on October 20, 2015 (the “Resolution”), for the purpose of
various utility improvements in the City pursuant to and in full conformity with the Constitution and
laws of the State of Minnesota, including Minnesota Statutes, Chapters 444 and 475. The principal
hereof and interest hereon are payable primarily from the net revenues of the water utility system of
the City in a special debt service fund of the City, as set forth in the Resolution to which reference is
made for a full statement of rights and powers thereby conferred. The full faith and credit of the
City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to
levy ad 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.
The City may elect on February 1, 2024, and on any date thereafter to prepay Bonds maturing on or
after February 1, 2025. Redemption may be in whole or in part and if in part, at the option of the
RESOLUTION 2015-____
468491v2 JSB RS125-16 B-2
City and in such order as the City will determine. If less than all Bonds of a maturity are called for
redemption, the City will notify The Depository Trust Company (“DTC”) of the particular amount
of such maturity to be prepaid. DTC will determine by lot the amount of each participant’s interest
in such maturity to be redeemed and each participant will then select by lot the beneficial ownership
interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued
interest.
As provided in the Resolution and subject to certain limitations set forth therein, this Bond is
transferable upon the books of the City at the principal office of the Registrar, by the registered
owner hereof in person or by the owner’s attorney duly authorized in writing, upon surrender
hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by
the registered owner or the owner’s attorney; and may also be surrendered in exchange for Bonds of
other authorized denominations. Upon such transfer or exchange the City will cause a new Bond or
Bonds to be issued in the name of the transferee or registered owner, of the same aggregate
principal amount, bearing 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 City Council has designated the issue of Bonds of which this Bond forms a part as “qualified
tax exempt obligations” within the meaning of Section 265(b)(3) of the Internal Revenue Code of
1986, as amended (the “Code”).
The City and the Registrar may deem and treat the person in whose name this Bond is registered as
the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving
payment and for all other purposes, and neither the City nor the Registrar will be affected by any
notice to the contrary.
IT IS HEREBY CERTIFIED AND RECITED That in and by the Resolution, the City has
covenanted and agreed that it will continue to own and operate the water utility system free from
competition by other like municipal utilities; that adequate insurance on said systems and suitable
fidelity bonds on employees will be carried; that proper and adequate books of account will be kept
showing all receipts and disbursements relating to the Water Fund, into which it will pay all of the
gross revenues from the water utility system; that it will also create and maintain the General
Obligation Utility Revenue Bonds, Series 2015A Debt Service Fund, into which it will pay, out of
the net revenues from the water utility system sums sufficient to pay principal of the Bonds and
interest on the Bonds when due; and that it will provide, by ad valorem tax levies, for any deficiency
in required net revenues of the water utility system.
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 City in accordance with its terms, have been
done, have happened and have been performed in regular and due form, time and manner, that
prior to the issuance of this bond the City Council of the City has provided funds for the payment
of principal and interest on the bonds of this issue as the same become due, but the full faith and
credit of the City is pledged for their payment and taxes will be levied, if required for such purpose,
without limitation as to the rate of amount; and that this bond, together with all other indebtedness
of the City outstanding on the date of its issuance, does not exceed any constitutional or statutory
limitation thereon.
RESOLUTION 2015-____
468491v2 JSB RS125-16 B-3
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.
IN WITNESS WHEREOF, the City of Rosemount, Dakota County, Minnesota, by its City Council,
has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the
Mayor and City Clerk and has caused this Bond to be dated as of the date set forth below.
Dated: November 19 2015
CITY OF ROSEMOUNT, MINNESOTA
(Facsimile) (Facsimile)
City Clerk Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S.BANK NATIONAL ASSOCIATION
By
Authorized Representative
_________________________________
The following abbreviations, when used in the inscription on the face of this Bond, will be
construed as though they were written out in full according to applicable laws or regulations:
TEN COM -- as tenants UNIF GIFT MIN ACT _________ Custodian _________
in common (Cust) (Minor)
TEN ENT -- as tenants under Uniform Gifts or
by entireties Transfers to Minors
Act . . . . . . . . . . . .
JT TEN -- as joint tenants with
right of survivorship and
not as tenants in common (State)
Additional abbreviations may also be used though not in the above list.
________________________________________
RESOLUTION 2015-____
468491v2 JSB RS125-16 B-4
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: The assignor’s signature to this assignment must correspond with the name as it
appears upon the face of the within Bond in every particular, without alteration or
any change whatever.
Signature Guaranteed:
____________________________
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the
Securities Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion Program
(“SEMP”), the New York Stock Exchange, Inc. Medallion Signatures Program (“MSP”) or other
such “signature guarantee program” as may be determined by the Registrar in addition to, or in
substitution for, 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
RESOLUTION 2015-____
468491v2 JSB RS125-16 B-5
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
468491v2 JSB RS125-16
STATE OF MINNESOTA COUNTY AUDITOR’S
CERTIFICATE AS TO
COUNTY OF DAKOTA REGISTRATION WHERE NO
AD VALOREM TAX LEVY
I, the undersigned County Auditor of Dakota County, Minnesota, hereby certify that a resolution
adopted by the City Council of the City of Rosemount, Minnesota, on October 20, 2015, relating to
the City’s General Obligation Utility Revenue Bonds, Series 2015A, in the amount of $1,525,000
dated November 19, 2015, has been filed in my office and said obligations have been registered on
the register of obligations in my office.
WITNESS My hand and official seal this ____ day of ____________, 2015.
County Auditor
Dakota County, Minnesota
(SEAL)
Deputy
* Preliminary; subject to change.
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PRELIMINARY OFFICIAL STATEMENT DATED SEPTEMBER 30, 2015
NEW AND REFUNDING ISSUES Moody’s Ratings: Requested
BANK QUALIFIED
In the opinion of Kennedy & Graven, Chartered, Bond Counsel for the Bonds, based on present federal and Minnesota laws, regulations, rulings and decisions
(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
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
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 state or federal tax consequences caused by the receipt or accrual of interest on the Bonds or
arising with respect to ownership of the Bonds. The Bonds will be designated as "qualified tax-exempt Bonds" for purposes of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended, relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is
allocable to carrying and acquiring tax-exempt Bonds. See "TAX EXEMPTION" and "OTHER FEDERAL AND STATE TAX CONSIDERATIONS" herein.
City of Rosemount, Minnesota
$1,525,000*
General Obligation Utility Revenue
Bonds, Series 2015A
(the “Series 2015A City Bonds”)
$1,445,000*
General Obligation Capital Improvement
Plan Refunding Bonds, Series 2015B
(the “Series 2015B City Bonds”)
Rosemount Port Authority, Minnesota
$3,460,000*
General Obligation Tax Increment Refunding Bonds, Series 2015A
(the “Authority Bonds”) (Book Entry Only)
Dated Date: Date of Delivery Interest Due: Each February 1 and August 1,
commencing August 1, 2016
The Bonds (as defined herein) will mature as shown on the inside front cover of this Official Statement.
The City Bonds (as defined herein) are general obligations of the City of Rosemount (the “City”) for which the City 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 Rosemount Port Authority, Minnesota ’s (the “Authority”) levy
of general ad valorem taxes on all property within the City for their payment. The Bonds will be used for various purposes as
discussed herein. Additional sources of security for the Bonds will be discussed herein .
A separate proposal must be submitted for each issue subject to the minimum bid amounts shown below, plus accrued interest,
if any. Proposals shall specify rates in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public for each maturity
of each issue must be 98.0% or greater. Following receipt of proposals, a good faith deposit for each issue will be required to
be delivered to the City for each series of the City Bonds and to the Authority for the Authority Bonds, by the lowest bidder as
described in each “Terms of Proposal” herein. Award of the Bonds will be made on the basis of True Interest Cost (TIC).
Minimum Bid
The Series 2015A City Bonds $1,508,225
The Series 2015B City Bonds 1,433,080
The Authority Bonds 3,420,210
The City and the Authority will designate the Bonds as “qualified tax-exempt obligations” pursuant to Section 265(b)(3) of the
Internal Revenue Code of 1986, as amended.
The Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered in the name of Cede &
Co., as nominee of The Depository Trust Company (“DTC”). DTC will act as securities depository for the Bonds. Individual
purchases may be made in book entry form only, in the principal amount of $5,000 and integral multiples thereof. Inve stors
will not receive physical certificates representing their interest in the Bonds purchased. (See “Book Entry System” herein.)
U.S. Bank National Association, St. Paul, Minnesota will serve as registrar (the “Registrar”) for the Bonds. The Bonds will be
available for delivery at DTC on or about November 19, 2015.
PROPOSALS RECEIVED: October 20, 2015 (Tuesday) until 10:00 A.M., Central Time
AWARD BY THE AUTHORITY: October 20, 2015 (Tuesday) at 6:00 P.M., Central Time
AWARD BY THE CITY: October 20, 2015 (Tuesday) at 7:00 P.M., Central Time
Further information may be obtained from SPRINGSTED Incorporated,
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
The Series 2015A City Bonds will mature February 1 in the years and amounts* as follows:
2017 $140,000
2018 $145,000
2019 $145,000
2020 $150,000
2021 $150,000
2022 $155,000
2023 $155,000
2024 $160,000
2025 $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
The Series 2015B City Bonds will mature February 1 in the years and amounts* as follows:
2017 $150,000
2018 $155,000
2019 $155,000
2020 $155,000
2021 $160,000
2022 $160,000
2023 $165,000
2024 $170,000
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
The Authority Bonds will mature February 1 in the years and amounts* as follows:
2018 $20,000
2019 $20,000
2020 $20,000
2021 $25,000
2022 $25,000
2023 $25,000
2024 $ 60,000
2025 $375,000
2026 $380,000
2027 $390,000
2028 $400,000
2029 $410,000
2030 $425,000
2031 $435,000
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.
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.
____________________________
* Preliminary; subject to change.
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 the City’s 2014 Comprehensive Annual Financial Report .................................... Appendix IV
________________________________
* Preliminary; subject to change.
- i -
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
10:00 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 Series 2015A City Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of
sale specified above. All bidders are advised that each proposal shall be deemed to constitute a contract
between the bidder and the City to purchase the 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 be responsible for a bidder’s failure to register to bid or for
any failure in the proper operation of, or have any liability for any delays or interruptions of or any
damages caused by the services of PARITY®. The City is using the services of PARITY® solely as a
communication mechanism to conduct the electronic bidding for the 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:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
- ii -
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
2018 $145,000
2019 $145,000
2020 $150,000
2021 $150,000
2022 $155,000
2023 $155,000
2024 $160,000
2025 $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 ag gregate 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
schedule set forth above. In order to designate term bonds, the proposal must specify “Years of Term
Maturities” in the spaces provided on the proposal form.
BOOK ENTRY SYSTEM
The 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
nominee of The Depository Trust Company (“DTC”), New York, New York, which 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 b e
redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to
be redeemed. All prepayments shall be at a price of par plus accrued interest.
- iii -
SECURITY AND PURPOSE
The 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
revenues of the City’s water utility system. 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 (the “Deposit”) no later than 1:00 P.M., Central Time on the day of
sale. The Deposit may be delivered as described herein in the form of either (i) a certified or cashier’s
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
Springsted Incorporated 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.
Certified or Cashier’s Check. A Deposit made by certified or cashier’s check 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 lowest bidder (the “purchaser”) 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.
- iv -
BOND INSURANCE AT PURCHASER'S OPTION
The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance
with respect to the 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
name of the desired insurer must be set forth on the bidder’s proposal. The City specifically reserves the
right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest
TIC to the City. All costs associated with the issuance and administration of such policy and associat ed
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
Series 2015A City Bond 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 (the “Underwriter” for purposes of this paragraph) to which the Series 2015A City Bonds are
- v -
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
- vi -
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
10:00 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 Series 2015B City Bonds will be by the City Council at 7:00 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of
sale specified above. All bidders are advised that each proposal shall be deemed to constitute a contract
between the bidder and the City to purchase the 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® shall be responsible for a bidder’s failure to register to bid or for
any failure in the proper operation of, or have any liability for any delays or interruptions of or any
damages caused by the services of PARITY®. The City is using the services of PARITY® solely as a
communication mechanism to conduct the electronic bidding for the 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:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
___________________________
* Preliminary; subject to change
- vii -
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
2018 $155,000
2019 $155,000
2020 $155,000
2021 $160,000
2022 $160,000
2023 $165,000
2024 $170,000
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. In order to designate term bonds, the proposal must specify “Years of Term
Maturities” in the spaces provided on the proposal form.
BOOK ENTRY SYSTEM
The 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
of The Depository Trust Company (“DTC”), New York, New York, which will act as securities
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.
- viii -
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 2015B City Bonds will be used to refund the February 1, 2017 through February 1, 2025
maturities of the City’s General Obligation Capital Improvement Plan 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 (the “Deposit”) no later than 1:00 P.M., Central Time on the day of
sale. The Deposit may be delivered as described herein in the form of either (i) a certified or cashier’s
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
Springsted Incorporated 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.
Certified or Cashier’s Check. A Deposit made by certified or cashier’s check 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 lowest bidder (the “purchaser”) 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.
- ix -
BOND INSURANCE AT PURCHASER'S OPTION
The City has not applied for or pre-approved a commitment for any policy of municipal bond insurance
with respect to the 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 ins ured, and the
name of the desired insurer must be set forth on the bidder’s proposal. The City specifically reserves the
right to reject any bid specifying municipal bond insurance, even though such bid may result in the lowest
TIC to the City. All costs associated with the issuance and administration of such policy and associated
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 2015B 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
Series 2015B City Bond 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 (the “Underwriter” for purposes of this paragraph) to which the Series 2015B City Bonds are
- x -
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
- xi -
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 at 6:00 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® shall be responsible for a bidder’s failure to register to bid
or for any failure in the proper operation of, or have any liability for any delays or interruptions of or any
damages caused by the services of PARITY®. The 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:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
________________________________
* Preliminary; subject to change.
- xii -
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
2019 $20,000
2020 $20,000
2021 $25,000
2022 $25,000
2023 $25,000
2024 $ 60,000
2025 $375,000
2026 $380,000
2027 $390,000
2028 $400,000
2029 $410,000
2030 $425,000
2031 $435,000
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 p rice
of par plus accrued interest to the date of redemption scheduled to conform to the maturity schedule set
forth above. In order to designate term bonds, the proposal must specify “Years of Term Maturities” in
the spaces provided on the proposal form.
BOOK ENTRY SYSTEM
The 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
(“DTC”), New York, New York, which will act as securities depository of the 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 inter ests in
such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest.
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SECURITY AND PURPOSE
The Authority Bonds are full faith and credit obligations of the City of Rosemount, Minnesota (the
“City”) for which the City has consented to the Authority’s levy of general ad valorem taxes on all
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 refund the February 1, 2024 through February 1, 2032 maturities of the Authority’s General Obligation
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 (the “Deposit”) no later than 1:00 P.M., Central Time on the day
of sale. The Deposit may be delivered as described herein in the form of either (i) a certified or cashier’s
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.
Certified or Cashier’s Check. A Deposit made by certified or cashier’s check will be considered timely
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 lowest bidder (the “purchaser”) 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.
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BOND INSURANCE AT PURCHASER'S OPTION
The Authority has not 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
name of the desired insurer must be set forth on the bidder’s 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,
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 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
(the “Underwriter” for purposes of this paragraph) to which the Authority Bonds are awarded up to
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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
________________________________
* Preliminary; subject to change.
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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
“City”) and its issuance of $1,525,000* General Obligation Utility Revenue Bonds, Series 2015A (the
“Series 2015A City Bonds”), $1,445,000* General Obligation Capital Improvement Plan Refunding
Bonds, Series 2015B (the “Series 2015B City Bonds”), and, together with the Series 2015A Bonds, (the
“City Bonds”). This Official Statement also contains certain information relating to the Rosemount Port
Authority, Minnesota (the “Authority”) and its issuance of $3,460,000* General Obligation Tax
Increment Refunding Bonds, Series 2015A (the “Authority Bonds”), and, together with City Bonds, the
“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 Authority’s levy of general ad valorem
taxes on all property within the City for their payment. Additional sources of security to the Bonds are
discussed herein.
Inquiries may be directed to Mr. Jeffrey May, Finance Director, City of Rosemount, 2875 145th 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 15c2-12 (the “Rule”), pursuant to the
Awarding Resolutions, the City and the Authority have covenanted to comply with the continuing
disclosure undertaking (the “Undertaking”) for the benefit of holders or beneficial owners of the Bonds to
provide certain financial information and operating data relating to the City 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 .
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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:
Within the past five years, Moody’s Investors Service has changed the credit ratings of certain
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
in the section herein entitled “Book Entry System.” 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
Thirty days’ written notice of redemption shall be given to the registered owner(s) of the 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
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.
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Book Entry System
The Depository Trust Company (“DTC”), New 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.
(DTC’s partnership nominee) or such other name as may be requested by an authorized representative of
DTC. One fully-registered certificate will be issued for each maturity of each series of the Bonds, each in
the aggregate principal amount of such maturity, and will be deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a “banking
organization” within the meaning of the New York Banking Law, a member of the Federal Reserve
System, a “clearing corporation” within the meaning of the New York Uniform Commercial Code, and a
“clearing agency” registered pursuant to the provisions of Section 17A of the Securities Exchange Act of
1934. DTC holds and provides asset servicing for 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
DTC’s participants (“Direct Participants”) deposit with DTC. DTC also facilitates the post -trade
settlement among Direct Participants of sales and other securities transactions in deposited securities
through electronic computerized book-entry transfers and pledges between Direct Participants’ accounts.
This eliminates the need for physical movement of securities certificates. Direct Participants include both
U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing corporations, and
certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation (“DTCC”). DTCC is the holding company for DTC, National Secu 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
directly or indirectly (“Indirect Participants”). The DTC Rules applicable to its Participants are on file
with the Securities and Exchange Commission. More information about DTC can be found at
www.dtcc.com.
Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will
receive a credit for the Bonds on DTC’s records. The ownership interest of each actual purchaser of each
Bond (“Beneficial Owner”) is in turn to be recorded on the Direct and Indirect Participants’ records.
Beneficial Owners will not receive written confirmation from DTC of their 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
the name of DTC’s partnership nominee, Cede & Co., or such other name as may be requested by an
authorized representative of DTC. The deposit of 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 Bonds; DTC’s records reflect only the identity of the
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
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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
redeemed, DTC’s practice is to determine by lot the amount of the interest of each Direct Participant i n
such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor any other DTC nominee) will consent or vote with respect to the
Bonds unless authorized by a Direct Participant in accordance with DTC’s MMI procedures. Under its
usual procedures, DTC mails an Omnibus Proxy to the City and the Authority as soon as possible after
the record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct
Participants to whose accounts the 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
such other nominee as may be requested by an authorized representative of DTC. DTC’s practice is to
credit Direct Participants’ accounts upon DTC’s receipt of funds and corresponding detail information
from the City and the Authority or their agents on the payable date in accordance with their respective
holdings shown on DTC’s records. Payments by Participants to Beneficial Owners will be governed by
standing instructions and customary practices, as is the case with securities held for the accounts of
customers in bearer form or registered in “street name,” and will be the responsibility of such Participant
and not of DTC 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.
The information in this section concerning DTC and DTC’s book-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.
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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
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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, ava ilability 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 maturities (the “Series 2005A
Refunded Maturities”) of the City’s General Obligation Capital Improvement Plan Bonds, Series 2005A,
dated June 15, 2005 (the “Series 2005A Bonds”). 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. Each year’s collection of taxes, if collected
in full, will be sufficient to pay 105% of the interest payment due August 1 of the collection year and the
principal and interest payment due February 1 of the following year.
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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 maturities (the “Series 2008B Refunded Maturities”) of the Authority’s
General Obligation Tax Increment Bonds, Series 2008B, dated April 10, 2008 (the “Series 2008B
Bonds”).
Specifically, the proceeds of the Authority Bonds will be placed in an escrow account with U.S. Bank
National Association, St. Paul, Minnesota (the “Escrow Agent”). 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
the Authority’s levy of general ad valorem taxes on all property 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.
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The escrow account established with the proceeds of the Authority Bonds will make the interest payments
due on the Authority Bonds through February 1, 2017. Thereafter, each year’s collection of tax 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 or the Authority’s 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 fe deral 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
with all requirements of the Internal Revenue Code of 1986, as amended, (the “Code”) that must be
satisfied subsequent to the issuance of the Bonds in order that interest thereon be (or continue to be)
excluded from federal gross income and state gross and taxable net income.
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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
“net investment income.” Net investment income includes tax-exempt interest such as interest on the
Bonds.
Branch Profits Tax
A foreign corporation is subject to a branch profits tax equal to 30% of the “dividend equivalent amount”
for the taxable year. The “dividend equivalent amount” is the foreign corporation's “effectively
connected earnings and profits” adjusted for increase or decrease in “U.S. net equity.” A branch's
earnings and profits may include tax-exempt municipal bond interest, such as interest on the Bonds.
Passive Investment Income of S Corporations
Passive investment income, including interest on the Bonds, may be subject to federal income taxation
under Section 1375 of the Code for an S corporation that has Subchapter C earnings and profits at the
close of the taxable year if more than 25% of the gross receipts of such S corporation is passive
investment income.
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 aris e from
the receipt or accrual of interest on the Bonds. The receipt or accrual of interest on the Bonds may
otherwise affect the federal income tax (or Minnesota income tax or franchise tax) liability of the
recipient based on the particular taxes to which the recipient is subject and the particular tax status of
other items of income or deductions. All prospective purchasers of the Bonds are advised to consult their
own tax advisors as to the tax consequences of, or tax considerations for, purchasing or holding the
Bonds.
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BANK-QUALIFIED TAX-EXEMPT OBLIGATIONS
The Bonds will be designated as “qualified tax-exempt obligations” for purposes of Section 265(b)(3) of
the Internal Revenue Code of 1986, as amended, relating to the ability of financial institutions to deduct
from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring
tax-exempt obligations.
RATINGS
Application for ratings of the Bonds have been made to Moody’s Investors Service (“Moody’s”), 7 World
Trade Center, 250 Greenwich Street, 23rd Floor, New York, New York. If ratings are assigned, they will
reflect only the opinion of Moody’s. Any explanation of the significance of the ratings may be obtained
only from Moody’s.
There is no assurance that 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 Moody’s, 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 (“Springsted”), 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.
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CITY PROPERTY VALUES
Trend of Values(a)
Assessment/ Assessor’s Market Value Adjusted
Collection Estimated Sales Economic Homestead Taxable Taxable Net
Year Market Value Ratio(b) Market Value(c) Exclusion Market Value Tax Capacity
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.
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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
146th 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 12.4% of the City’s 2014/15 adjusted
taxable net tax capacity. The remaining nine taxpayers represent 5.6% of the City’s 2014/15 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 statutorily as the “Net Debt Limit” and may be increased by debt service
funds and current revenues which are applicable to the payment of debt in the current fiscal year.
NOTES: 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.
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General Obligation Debt Supported Solely by Taxes(a)
Est. Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 11-19-15
6-15-05 $2,630,000 Fire Station 2-1-2016 $ 135,000(b)
11-1-05 1,115,000 Fire Station Refunding 2-1-2016 130,000
12-1-10 1,355,000 Public Facility Refunding 2-1-2022 980,000(c)
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
General Obligation Tax Increment Debt(a) (b)
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.
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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.
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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
Year Principal & Interest(a) Principal & Interest(c)
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
Total $5,855,000(b) $7,737,973 $3,095,000(d) $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
Taxing Unit(a) Net Tax Capacity As of 11-19-15(b) 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
Metropolitan Council 3,284,372,173 20,500,000(c) 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.
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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
Demographer’s 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
Valley-Eagan)(a) 26.959 28.440 27.956 27.606 23.271 0.029
Special Districts(b) 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 City’s population trend is shown below.
Percent
Population Change
2014 MN State Demographer’s
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/.
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The City’s population by age group for the past three 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
Resources’ Pine Bend Refinery; CF Industries, Inc.; Continental Nitrogen & Resource Corporation;
Endres Processing Ltd.; SKB (industrial waste containment facility); and Spectro Alloys Corporation.
Mid-American Pipeline Company transports gas from southern states and operates a bottling station at
Pine Bend. Minnesota Pipeline Company transports Canadian and North Dakota crude oil to the Flint
Hills Resources’ Pine Bend Refinery.
Flint Hills Resources’ Pine Bend Refinery is a leading producer of petroleum products in Minnesota
converting 320,000 barrels of crude oil into gasoline each day. This 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.
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Major Employers
Approximate
Number
Employer Product/Service of Employees Independent School District No. 196
(Rosemount-Apple Valley-Eagan) Public education 4,000
Flint Hills Resources’ Pine Bend Refinery 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
Cub Food’s 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 (to 7-31) 67 $17,083,613 13 $12,993,500 $35,631,804
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
of reinvestment into the City’s historic Downtown. New growth is also occurring along the County Road
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
Bella Vista 2nd Addition/Lennar Single Family 28 18
Glendalough 2nd/Lennar Single Family 7 0
Glendalough 3rd/Lennar Single Family 29 0
GlenRose of Rosemount/
Dean Johnson Homes Multi-Family 76 44
Greystone 1st Addition/Ryland Single Family 23 0
Greystone 2nd Addition/Ryland Single Family 31 2
Greystone 3rd Addition/Ryland Single Family 19 7
Greystone 4th Addition/Ryland Single Family 47 47
Harmony 2nd Addition/CPDC Multi-Family 81 5
Harmony 5th Addition/Rsmt Land Corp. Mixed 64 14
Harmony 6th Addition/Waconia Development Multi-Family 49 28
Prestwick Place 5th Addition/DR Horton Single Family 2 0
Prestwick Place 6th Addition/DR Horton Single Family 4 0
Prestwick Place 7th Addition/
US Home Corp. Single Family 37 0
Prestwick Place 8th Addition/
Anderson/Keyland Single Family 33 18
Prestwick Place 9th Addition/Lennar Single Family 8 2
Prestwick Place 10th 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) (the “District”), 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.
- 24 -
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
St. Joseph’s Catholic 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 (the “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.
- 25 -
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
the operation of a storm water utility. Each property in the City pays a quarterly “stormwater user fee”
and an initial connection charge to support the program.
Interceptor sewer lines and wastewater treatment plants in the seven -county metropolitan area, of which
the City is a part, are under the jurisdiction of the Metropolitan Council Environmental Services
(“MCES”). MCES finances its operations through user charges based on usage. The City is responsible
for the construction and maintenance of sewer laterals.
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.
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Employee Pensions
All full-time and certain part-time employees of the City are covered by defined benefit pension plans
administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers
the General Employees Retirement Fund (GERF) and the Public Employees Police and Fire Fund
(PEPFF), which are cost-sharing multiple-employer public employees retirement plans. GERF members
belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social
Security and Basic members are not. All employees of the City covered by GERF belong to the
Coordinated Plan. All police officers, fire fighters and peace officers who qualify for membership by
statute are covered by the PEPFF. The City’s contributions for the past five years are as follows:
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
City Firefighter’s Association
Volunteer firefighters of the City are eligible for pension benefits through membership in the Rosemount
Fire Department Relief Association Pension Plan organized under Minnesota Statutes, Chapter 69, and
administered by the Rosemount Fire Department Relief Association (the “Association”). The Association
provides a lump-sum benefit to its members upon retirement, total disability, or death.
The contribution requirements are established and may be amended by the Minnesota State Legislature.
The 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 ye ars 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
“Note V, Other Information – A. Employees’ Retirement System”, of the City’s Comprehensive Annual
Financial Report for fiscal year ended December 31, 2014, included as Appendix IV of this Official
Statement.
Sources: City’s Comprehensive Annual Financial Reports.
- 27 -
Other Post-Employment Benefits
The Governmental Accounting Standards Board (GASB) has issued Statement No. 45, Accounting and
Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions (GASB 45),
which addresses how state and local governments must account for and report their obligations related to
post employment healthcare and other non-pension benefits (referred to as Other Post-Employment
Benefits or “OPEB”).
The City does not fund health insurance for retired City employees. All former employees who were
eligible to participate in the City’s health insurance program while employed with the City are allowed to
continue their coverage after employment has ended through COBRA. However, this coverage is to be
paid in full at the former employee’s expense. The only cost to the City comes from the implicit rate
subsidy. Under GASB 45 such costs must be accounted for on an annual basis, however; management
has determined that any liability related to postemployment benefits is immaterial and is not reported the
City’s Comprehensive Annual Financial Report.
Sources: City’s Comprehensive 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: City’s Comprehensive Annual Financial Reports and 2015 Budget.
- 28 -
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: City’s Comprehensive Annual Financial Reports.
(The Balance of This Page Has Been Intentionally Left Blank)
APPENDIX I
I-1
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
“Issuer”) in connection with the issuance by the Issuer of its General Obligation Utility Revenue Bonds,
Series 2015A (the “Bonds”), originally dated the date hereof and issued in the original aggregate principal
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 inco me 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-2
Minnesota income tax purposes retroactively to the date of issuance of the Bonds. We express no opinion
regarding tax consequences arising with respect to the Bonds other than as expressly set forth herein.
4. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited
by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditor’s rights
generally and by equitable principles, whether considered at law or in equity.
We have not been asked and have not undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we
express no opinion with respect thereto.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or
any changes in law that may hereafter occur.
Dated ______________, 2015 at Minneapolis, Minnesota.
I-3
The Series 2015B City Bonds
$1,445,000
General Obligation Capital Improvement Plan Refunding Bonds, Series 2015B
City of Rosemount
Dakota County, Minnesota
We have acted as bond counsel to the City of Rosemount, Minnesota (the “Issuer”) in
connection with the issuance by the Issuer of its General Obligation Capital Improvement Plan
Refunding Bonds, Series 2015B (the “Bonds”), originally dated the date hereof 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 mi nimum 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-4
bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditor’s rights
generally and by equitable principles, whether considered at law or in equity.
We have not been asked and have not undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly
we express no opinion with respect thereto.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention
or any changes in law that may hereafter occur.
Dated _______________, 2015 at Minneapolis, Minnesota.
I-5
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
“Issuer”) in connection with the issuance by the Issuer of its General Obligation (the “Bonds”),
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 la w 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-6
4. The rights of the owners of the Bonds and the enforceability of the Bonds may be limited
by bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditor’s rights
generally and by equitable principles, whether considered at law or in equity.
We have not been asked and have not undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we
express no opinion with respect thereto.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or
any changes in law that may hereafter occur.
Dated ______________, 2015 at Minneapolis, Minnesota.
APPENDIX II
II-1
CONTINUING DISCLOSURE CERTIFICATES
The Series 2015A City Bonds
$1,525,000
City of Rosemount, Minnesota
General Obligation Utility Revenue Bonds,
Series 2015A
______, 2015
This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and delivered by the
City of Rosemount, Minnesota (the “Issuer”) in connection with the issuance of its General Obligation Utility
Revenue Bonds, Series 2015A, (the “Bonds”) 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 “Resolutions”).
The Bonds are being delivered to ________ (the “Purchaser”) on the date hereof. Pursuant to the
Resolutions, the Issuer has covenanted and agreed to provide continuing disclosure of certain financial
information and operating data and timely notices of the occurrence of certain events. The Issuer hereby
covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed
and delivered by the Issuer for the benefit of the Holders (as defined herein) of the Bonds in order to provide
for the public availability of such information and assist the Participating Underwriter(s) (defined herein) in
complying with the Rule (as defined herein). This Disclosure Certificate, together with the Resolutions,
constitutes the written agreement or contract for the benefit of the Holders of the Bonds that is required by the
Rule.
Section 2. Definitions. In addition to the defined terms set forth in the Resolutions, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the
following capitalized terms shall have the following meanings:
“Annual Report” means any annual report provided by the Issuer pursuant to, and as described in,
Sections 3 and 4 of this Disclosure Certificate.
“Audited Financial Statements” means the Issuer’s annual financial statements, prepared in
accordance with generally accepted accounting principles (“GAAP”) for Governmental Units as Prescribed
by the Governmental Accounting Standards Board (“GASB”).
“Bonds” means the General Obligation Utility Revenue Bonds, Series 2015A, issued by the Issuer in
the original aggregate principal amount of $1,525,000.
“Disclosure Certificate” means this Continuing Disclosure Certificate.
“EMMA” means the Electronic Municipal Market Access system operated by the MSRB and
designated as a nationally recognized municipal securities information repository and the exclusive portal for
complying with the continuing disclosure requirements of the Rule.
“Final Official Statement” means the deemed final official statement dated __________, 2015, which
constitutes the final official statement delivered in connection with the Bonds, which is available from the
MSRB.
II-2
“Fiscal Year” means the fiscal year of the Issuer.
“Holder” means the person in whose name a security is registered or a beneficial owner of such a
security.
“Issuer” means the City of Rosemount, Minnesota, which is the obligated person with respect to the
Bonds.
“Material Event” means any of the events listed in Section 5(a) of this Disclosure Certificate.
“MSRB” means the Municipal Securities Rulemaking Board located at 1900 Duke Street, Suite 600,
Alexandria, VA 22314.
“Participating Underwriter” means any of the original underwriter(s) of the Bonds (including the
Purchaser) required to comply with the Rule in connection with the offering of the Bonds.
“Purchaser” means ________.
“Repository” means EMMA, or any successor thereto designated by the SEC.
“Rule” means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities Exchange Act
of 1934, as the same may be amended from time to time, and including written interpretations thereof by the
SEC.
“SEC” means the Securities and Exchange Commission.
Section 3. Provision of Annual Financial Information and Audited Financial Statements.
(a) The Issuer shall provide, as soon as available, but not later than 12 months after the end of
the Fiscal Year commencing with the year that ends December 31, 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. The Issuer’s Annual Report shall contain or incorporate
by reference the following sections of the Final Official Statement:
1. City Property Values
2. City Indebtedness
3. City Tax Rates, Levies and Collections
II-3
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
events (“Material Events”) with respect to the Bonds:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701–TEB) or other
material notices or determinations with respect to the tax status of the security, or other
material events affecting the tax status of the security;
7. Modifications to rights of security holders, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the securities, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of the obligated person;
13. The consummation of a merger, consolidation, or acquisition involving an obligated
person or the sale of all or substantially all of the assets of the obligated person, other
than in the ordinary course of business, the entry into a definitive agreement to u ndertake
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-4
(b) The Issuer shall file a notice of such occurrence with the Repository or with the MSRB
within 10 business days of the occurrence of the Material Event.
(c) Unless otherwise required by law and subject to technical and economic feasibility, the
Issuer shall employ such methods of information transmission as shall be requested or
recommended by the designated recipients of the Issuer’s information.
Section 6. EMMA. The SEC has designated EMMA as a nationally recognized municipal
securities information repository and the exclusive portal for complying with the continuing disclosure
requirements of the Rule. Until the EMMA system is amended or altered by the MSRB and the SEC, the
Issuer shall make all filings required under this Disclosure Certificate solely with EMMA.
Section 7. Termination of Reporting Obligation. The Issuer’s obligations under the
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-5
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-6
The Series 2015B City Bonds
$1,445,000
City of Rosemount, Minnesota
General Obligation Capital Improvement Plan Refunding Bonds,
Series 2015B
______, 2015
This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and delivered by the
City of Rosemount, Minnesota (the “Issuer”) in connection with the issuance of its General Obligation
Capital Improvement Plan Refunding Bonds, Series 2015B, (the “Bonds”) in the original aggregate principal
amount of $1,445,000. The Bonds are being issued pursuant to resolutions adopted by the City Council of
the Issuer (the “Resolutions”). The Bonds are being delivered to ________ (the “Purchaser”) on the date
hereof. Pursuant to the Resolutions, the Issuer has covenanted and agreed to provide continuing disclosure of
certain financial information and operating data and timely notices of the occurrence of certain events. The
Issuer hereby covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being executed
and delivered by the Issuer for the benefit of the Holders (as defined herein) of the Bonds in order to provide
for the public availability of such information and assist the Participating Underwriter(s) (defined herein) in
complying with the Rule (as defined herein). This Disclosure Certificate, together with the Resolutions,
constitutes the written agreement or contract for the benefit of the Holders of the Bonds that is required by the
Rule.
Section 2. Definitions. In addition to the defined terms set forth in the Resolutions, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the
following capitalized terms shall have the following meanings:
“Annual Report” means any annual report provided by the Issuer pursuant to, and as described in,
Sections 3 and 4 of this Disclosure Certificate.
“Audited Financial Statements” means the Issuer’s annual financial statements, prepared in
accordance with generally accepted accounting principles (“GAAP”) for Governmental Units as Prescribed
by the Governmental Accounting Standards Board (“GASB”).
“Bonds” means the General Obligation Capital Improvement Plan Refunding Bonds, Series 2015B,
issued by the Issuer in the original aggregate principal amount of $1,445,000.
“Disclosure Certificate” means this Continuing Disclosure Certificate.
“EMMA” means the Electronic Municipal Market Access system operated by the MSRB and
designated as a nationally recognized municipal securities information repository and the exclusive portal for
complying with the continuing disclosure requirements of the Rule.
“Final Official Statement” means the deemed final official statement dated __________, 2015, which
constitutes the final official statement delivered in connection with the Bonds, which is available from the
MSRB.
“Fiscal Year” means the fiscal year of the Issuer.
II-7
“Holder” means the person in whose name a security is registered or a beneficial owner of such a
security.
“Issuer” means the City of Rosemount, Minnesota, which is the obligated person with respect to the
Bonds.
“Material Event” means any of the events listed in Section 5(a) of this Disclosure Certificate.
“MSRB” means the Municipal Securities Rulemaking Board located at 1900 Duke Street, Suite 600,
Alexandria, VA 22314.
“Participating Underwriter” means any of the original underwriter(s) of the Bonds (including the
Purchaser) required to comply with the Rule in connection with the offering of the Bonds.
“Purchaser” means ________.
“Repository” means EMMA, or any successor thereto designated by the SEC.
“Rule” means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities Exchange Act
of 1934, as the same may be amended from time to time, and including written interpretations thereof by the
SEC.
“SEC” means the Securities and Exchange Commission.
Section 3. Provision of Annual Financial Information and Audited Financial Statements.
(a) The Issuer shall provide, as soon as available, but not later than 12 months after the end of
the Fiscal Year commencing with the year that ends December 31, 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. The Issuer’s Annual Report shall contain or incorporate
by reference the following sections of the Final Official Statement:
1. City Property Values
2. City Indebtedness
3. City Tax Rates, Levies and Collections
In addition to the items listed above, the Annual Report shall include Audited Financial Statements
submitted in accordance with Section 3 of this Disclosure Certificate.
II-8
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
events (“Material Events”) with respect to the Bonds:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701–TEB) or other
material notices or determinations with respect to the tax status of the security, or other
material events affecting the tax status of the security;
7. Modifications to rights of security holders, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the securities, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of the obligated person;
13. The consummation of a merger, consolidation, or acquisition involving an obligated
person or the sale of all or substantially all of the assets of the obligated person, other
than in the ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such actions,
other than pursuant to its terms, if material;
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-9
(c) Unless otherwise required by law and subject to technical and economic feasibility, the
Issuer shall employ such methods of information transmission as shall be requested or
recommended by the designated recipients of the Issuer’s information.
Section 6. EMMA. The SEC has designated EMMA as a nationally recognized municipal
securities information repository and the exclusive portal for complying with the continuing disclosure
requirements of the Rule. Until the EMMA system is amended or altered by the MSRB and the SEC, the
Issuer shall make all filings required under this Disclosure Certificate solely with EMMA.
Section 7. Termination of Reporting Obligation. The Issuer’s obligations under the
Resolutions and this Disclosure Certificate shall terminate upon the legal defeasance, 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-10
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-11
The Authority Bonds
$3,460,000
Rosemount Port Authority, Minnesota
General Obligation Tax Increment
Refunding Bonds, Series 2015A,
______, 2015
This Continuing Disclosure Certificate (the “Disclosure Certificate”) is executed and delivered by the
Rosemount Port Authority, Minnesota (the “Issuer”) and the City of Rosemount, Minnesota (the “City”) in
connection with the issuance of its General Obligation Tax Increment Refunding Bonds, Series 2015A,
(the “Bonds”) in the original aggregate principal amount of $3,460,000. The Bonds are being issued pursuant
to resolutions adopted by the Board of Commissioners of the Issuer (the “Resolutions”). The Bonds are
being delivered to ________ (the “Purchaser”) on the date hereof. Pursuant to the Resolutions, the Issuer has
covenanted and agreed to provide continuing disclosure of certain financial information and operating data
and timely notices of the occurrence of certain events. 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:
“Annual Report” means any annual report provided by the City pursuant to, and as described in,
Sections 3 and 4 of this Disclosure Certificate.
“Audited Financial Statements” means the City’s annual financial statements, prepared in accordance
with generally accepted accounting principles (“GAAP”) for Governmental Units as Prescribed by the
Governmental Accounting Standards Board (“GASB”).
“Bonds” means the General Obligation Tax Increment Refunding Bonds, Series 2015A, issued by
the Issuer in the original aggregate principal amount of $3,460,000.
“City” means the City of Rosemount, Minnesota, which together with the Issuer are the obligated
persons with respect to the Bonds.
“Disclosure Certificate” means this Continuing Disclosure Certificate.
“EMMA” means the Electronic Municipal Market Access system operated by the MSRB and
designated as a nationally recognized municipal securities information repository and the exclusive portal for
complying with the continuing disclosure requirements of the Rule.
II-12
“Final Official Statement” means the deemed final official statement dated __________, 2015, which
constitutes the final official statement delivered in connection with the Bonds, which is available from the
MSRB.
“Fiscal Year” means the fiscal year of the City.
“Holder” means the person in whose name a security is registered or a beneficial owner of such a
security.
“Issuer” means the Rosemount Port Authority, Minnesota, which together with the City are the
obligated persons with respect to the Bonds.
“Material Event” means any of the events listed in Section 5(a) of this Disclosure Certificate.
“MSRB” means the Municipal Securities Rulemaking Board located at 1900 Duke Street, Suite 600,
Alexandria, VA 22314.
“Participating Underwriter” means any of the original underwriter(s) of the Bonds (including the
Purchaser) required to comply with the Rule in connection with the offering of the Bonds.
“Purchaser” means ________.
“Repository” means EMMA, or any successor thereto designated by the SEC.
“Rule” means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities Exchange Act
of 1934, as the same may be amended from time to time, and including written interpretations thereof by the
SEC.
“SEC” means the Securities and Exchange Commission.
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. The Issuer’s Annual Report shall contain or incorporate
by reference the following sections of the Final Official Statement:
1. City Property Values
II-13
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
events (“Material Events”) with respect to the Bonds:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults, if material;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final
determinations of taxability, Notices of Proposed Issue (IRS Form 5701–TEB) or other
material notices or determinations with respect to the tax status of the security, or other
material events affecting the tax status of the security;
7. Modifications to rights of security holders, if material;
8. Bond calls, if material, and tender offers;
9. Defeasances;
10. Release, substitution, or sale of property securing repayment of the securities, if material;
11. Rating changes;
12. Bankruptcy, insolvency, receivership or similar event of the obligated person;
13. The consummation of a merger, consolidation, or acquisition involving an obligated
person or the sale of all or substantially all of the assets of the obligated person, other
than in the ordinary course of business, the entry into a definitive agreement to undertake
such an action or the termination of a definitive agreement relating to any such actions,
other than pursuant to its terms, if material;
14. Appointment of a successor or additional trustee or the change of name of a trustee, if
material; and
II-14
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 recommended by the designated recipients of the Issuer’s information.
Section 6. EMMA. The SEC has designated EMMA as a nationally recognized municipal
securities information repository and the exclusive portal for complying with the continuing disclosure
requirements of the Rule. Until the EMMA system is amended or altered by the MSRB and the SEC, the
Issuer and the City shall make all filings required under this Disclosure Certificate solely with EMMA.
Section 7. Termination of Reporting Obligation. The Issuer’s and the City’s obligations under
the Resolutions and this Disclosure Certificate shall terminate upon the legal defeasance, the redemption in
full of all Bonds, or payment in full of all 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-15
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
APPENDIX III
III-1
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
property to be fairly worth, and which is referred to as the “Estimated Market Value.” The 2013
Minnesota Legislature established the Estimated Market Value as the value used to calculate a
municipality’s legal debt limit.
Economic Market Value. The Economic Market Value is the value of locally assessed real property
(Assessor’s Estimated Market Value) divided by the sales ratio as pro 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 provi ded
relief to certain homesteads. The MVHE reduces the taxable market value of a homestead with an
Assessor’s Estimated Market Value up to $413,800 in an attempt to result in a property tax similar to the
effective property tax prior to the elimination of the homestead credit. The MVHE applies to property
classified as Class 1a or 1b and Class 2a, and causes a decrease in the Issuer’s aggregate Taxable Market
Value, even if the Assessor’s Estimated Market Value on the same properties did not decline.
Property Tax Payments and Delinquencies
(Chapters 275, 276, 277, 279-282 and 549, Minnesota Statutes)
Ad valorem property taxes levied by local governments in Minnesota are extended and collected by the
various counties within the State. Each taxing jurisdiction is required to certify the annual tax levy to the
county auditor within five (5) working days after December 20 of the year preceding the collection year.
A 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.
III-2
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
renter’s property tax refund, which relate property taxes to income and provide relief on a sliding income
scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases.
The homestead credit refund, the renter’s property tax refund, and targeted credits are reimbursed to the
taxpayer upon application by the taxpayer. Property tax levy reduction aid includes educational aids,
local governmental aid, equalization aid, county program aid and disparity reduction aid.
Debt Limitations
All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory “net
debt” limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is defined as the
amount remaining after deducting from gross debt the amount of current revenues that are applicable
within the current fiscal year to the payment of any debt and the aggregate of the principal of the
following:
1. Obligations issued for improvements that are payable wholly or partially from the proceeds of
special assessments levied upon benefited property.
2. Warrants or orders having no definite or fixed maturity.
3. Obligations payable wholly from the income from revenue producing conveniences.
III-3
4. Obligations issued to create or maintain a permanent improvement revolving fund.
5. Obligations issued for the acquisition and betterment of public waterworks systems, and public
lighting, heating or power systems, and any combination thereof, or for any other public
convenience from which revenue is or may be derived.
6. Certain debt service loans and capital loans made to school districts.
7. Certain obligations to repay loans.
8. Obligations specifically excluded under the provisions of law authorizing their issuance.
9. Certain obligations to pay pension fund liabilities.
10. Debt service funds for the payment of principal and interest on obligations other than those
described above.
11. Obligations issued to pay judgments against the municipality.
Levies for General Obligation Debt
(Sections 475.61 and 475.74, Minnesota Statutes)
Any municipality that issues general obligation debt must, at the time of issuance, certify levies to the
county auditor of the county(ies) within which the municipality is situated. Such levies shall be in an
amount that if collected in full will, together with estimates of other revenues pledged for payment of the
obligations, produce at least five percent in excess of the amount needed to pay principal and interest
when due. Notwithstanding any other limitations upon the ability of a taxing unit to levy taxes, its ability
to levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is without
limitation as to rate or amount.
Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes)
“Fiscal Disparities Law”
The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as “Fiscal
Disparities,” was first implemented for taxes payable in 1975. Forty percent of the increase in
commercial-industrial (including public utility and railroad) net tax capacity valuation since 1971 in each
assessment district in the Minneapolis/St. Paul seven-county metropolitan area (Anoka, Carver, Dakota,
excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and
Washington Counties) is contributed to an area-wide tax base. A distribution index, based on the factors
of population and real property market value per capita, is employed in determining what proportion of
the net tax capacity value in the area-wide tax base shall be distributed back to each assessment district.
III-4
STATUTORY FORMULAE: CONVERSION OF TAXABLE MARKET VALUE (TMV) TO
NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS
Local Tax
Payable
Local Tax
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
Regular (4a) 1.25% 1.25%
Low-Income (4d) 0.75%
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).
APPENDIX IV
IV -1
EXCERPT OF THE CITY’S 2014 COMPREHENSIVE ANNUAL FINANCIAL REPORT
Data on the following pages was extracted from the City’s 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’s 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.
INDEPENDENT AUDITORS' REPORT
To the Honorable Mayor and Members of the City Council
City of Rosemount
Rosemount. Minnesota
Report on the Financial Statements
We have audited the accompanying financial statements of lhe governmental achvities. 1he business~type
activities. each major fund. and the aggregate remaining h.md information of the City of Rosemount. Minnesota
as of and for the year ended December 31. 2014. and the related notes to the financial statements. which
collectively comprise the City of Rosemount's basic f1nanc1a1 statements as listed 1n the table of contents
Management's Responsibility for the Financial Statements
Management 1s responsible for the preparation and fair presentation of these financial statements in accordance
with accountmg principles generally accepted 1n the United States of America: this includes the design.
implementation. and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement. \Nhether due to fraud or error.
Auditors' Responslbll/ty
Our responsibility ls to express optn1ons on these financial statements based on our audit. We conducted our
audit 1n accordance with auditing standards generally accepted m the United States of America. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the fmancial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditors' judgment. including the assessment of
the nsks of material misstatement of the financial statements. whether due lo fraud or error In making those risk
assessments, the auditor considers internal control relevant to the City of Rosemount's preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances but not for the purpose of expressing an op1mon on the effectiveness of the Cdy of Rosemount's
internal control. Accordingly, we express no such op1n1on. An audit also includes evaluating lhe appropnateness
of accounting pohcies used and the reasonableness of s1gn1ficant accounting esbmates made by management.
as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained Is sufficient and appropriate to provide a basis for our audit
opinions.
To the Honorable Mayor and Members of the City Council
City of Rosemount
Opinions
In our opinion, the financial statements referred to above present fairly, In all material respects, the respective
financial position of the governmental activities, the business-type activities, each major fund. and the aggregate
remaining fund infonnation of the City of Rosemount, Minnesota, as of December 31, 2014 and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance
with accounting principles generally accepted in the United States of America.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison information and schedule of funding progress as listed in the
table of contents be presented to supplement the basic financial statements. Such infonnation. although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board who
considers It to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to the
required suppiementary Information in accordance With auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not
express an opinion or provide any assurance on the information because the limlted procedures do not provide
us with sufficient evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of fonning opinions on the financial statements that collectively
comprise the City of Rosernount's basic financial statements. The combining and individual fund financial
statements and schedules as listed in the table of contents are presented for purposes of additional analysis and
are not a required part of the basic financial statements. Such information is the responsibility of management
and was derived from and relates directly to the underlying accounting and other records used to prepare the
basic financial statements. The information has been subjected to the auditing procedures applied in the audit of
the basic financial statements and certain additional procedures, including comparing and reconciling such
infonnation directly to the underlying accounting and other records used to prepare the basic financial
statements or to the basic financial statements themselves, and other additional procedures in accordance with
auditing standards generally accepted in the United States of America. In our opinion, the combining and
individual fund financial statements and schedules are fairly stated in aH material respects, in relation to the basic
financial statements as a whole.
Other Information
Our audit was conducted for the purpose of fonning opinions on the financial statements that collectively
comprise the City of Rosemount's basic financial statements. The introductory and statistical sections are
presented for purposes of addltional analysis and are not a required part of the basic financial statements. Such
Information has not been subjected to the auditing procedures applied in the audit of the basic financial
statements, and accordingly, we do not express an opinion or provide any assurance on it.
Prior-Year Comparatiw Information
We have previously audited the City of Rosemount's 2013 financial statements, and we expressed unmod~ied
audit opink>ns on the respective financial statements of the governmental activities, the business-type activities,
each major fund, and the aggregate remaining fund infonnation in our report dated May 12, 2014. In our opinion,
the summarized comparative information presented herein as of and for the year ended December 31, 2013, is
consistent, in all material respects, With the audited financial statements from which it has been derived.
Minneapolis, Minnesota
June 9, 2015
IV-2
CITY OF ROSEMOUNT
STATEMENT OF NET POSITION
As of December 31, 2014
(With Summarized Information as of December 31, 2013)
Business-
Governmental Type Totals
Activities Activities 2014 2013
ASSETS
Cash and investments $ 26,036,186 $ 18,018,833 $ 44,055,019 $ 38,461,166
Receivables
Taxes 688,001 688,001 696,006
Delinquent taxes 71,655 71,655 126,838
Accounts 246,064 915,809 1, 161,873 1,474,508
Special assessments 3,108,959 320,239 3,429,198 3,149,176
Due from other governmental units 434,404 351,694 786,098 669,753
Internal balances (85,103) 85,103
Prepaid items 191,815 115.419 307,234 288,174
Capital assets
Land 9,003,127 2,651,767 11,654,894 13,747,233
Construction in progress 1,923,887 3,350,466 5,274,353 3,502,975
Land improvements 4,997,104 4,997,104 3,293,796
Buildings 14,415,644 11,085,341 25,500,985 25,277,856
Machinery and equipment 10,651,996 3,503,715 14,155,711 13,017,783
Infrastructure 56,364,470 131,455,129 187,819,599 183,535,003
Less: accumulated depreciation (22,802,826) (52,452,010) (75,254,836) (71,624,345)
Total Assets 105,245,383 119,401,505 224,646,888 215,615,922
LIABILITIES
Accounts payable 1,155,643 180,327 1,335,970 909,528
Accrued payroll and payroll taxes 155,676 43,556 199,232 170,990
Other accrued liabilities and deposits 402,491 19,478 421,969 411,600
Noncurrent liabilities
Due within one year 2,312,499 513,343 2,825,842 2,679,775
Due in more than one year 14,776,073 1,101,956 15,878,029 15,726,837
Total Liabilities 18,802,382 1,858,660 20,661,042 19,898,730
DEFERRED INFLOWS OF RESOURCES
Unearned revenue 392,551 392,551 576,127
Total Deferred Inflows of Resources 392,551 392,551 576,127
NET POSITION
Net investment in capital assets 58,438,402 98,194,408 156,632,810 153,517,523
Restricted 6,687,958 6,687,958 7,148,774
Unrestricted 20,924,090 19,348,437 40,272,527 34,474,768
Total Net Position $ 86,050,450 $ 117,542,845 $ 203,593,295 $ 195,141,065
See accompanying notes to financial statements.
IV-3
CITY OF ROSEMOUNT
STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2014
(With Summarized Information for the Year Ended December 31, 2013)
Net (Expense) Revenue and
P!!!!!ram Revenues Changes In Net Position
Operating Capital Prima!}'. Government
Charges for Grants and Grants and Governmental Business-Type Totals
Functions/Proorams ~nses Services Contributions Contributions Activities Activities 2014 2013
Primary Government:
Governmental activities:
General government $ 2,961,500 $ 3,202,744 $ -$ 1,988,610 $ 2,229,854 $ -$ 2,229,854 $ (117,576)
Public safety 4,233,610 146,973 283,095 18, 131 (3,785,411) -(3,785,411) (3,648.405)
Public works 5,764,176 59,417 53,515 4,318,692 (1,332,552) (1,332,552) (1,393,595)
Culture, education and recreation 1,613,600 571,222 3,736 (1,038,642) -(1,038,642) (1,238, 108)
Conservation and economic development 1,032,304 -22,536 740,660 (269,108) -(269,108) 340,176
Interest and fiscal charges 501,682 !501,682) -!501,682) (517,067)
Total Governmental Activities ~106,872 3,980,356 362,882 7,Q66,Q_9~ (4,697,541) -(4,697,541) (6,574,575)
Business-Type activities
Water 1,962,833 2,379,147 9,901 180,588 -606,783 606,783 636,016
Sewer 2,522,913 1,733,646 -98,863 (690,404) (690,404) (625,980)
Storm Water 1,122,839 1,350,259 19,680 193,402 -440,502 440,502 720,355
Arena 493,943 392,631 --!101,312) (101,312) (202,287)
Total Business-Type Activities 6,102,528 5,855,683 29,581 -472,833 255,569 255,569 528,104
Total Primary Government $ 22,209,400 s 9,836,039 $ 392,463 s 7,538,926 (4,697,541) 255,569 (4,441,972) (6,046,471)
General revenues:
Taxes
Property taxes, levied for general purposes 10,328,709 10,328,709 10,123,158
Property taxes, levied for debt service 1,022,258 1,022,256 1,037,524
Other taxes 288,425 -288,425 259,064
Interest earnings 221.243 333,929 555,172 331,113
Change in fair value of investments 319,644 276,379 596,023 (849,194)
MlsceUaneous 103,615 -103,615 116,123
Gain on sale of capital assets --12,883
Transfers !2,314,720) 2,314,720
Total general revenues and transfers 9,969,174 2,925,028 12,894,202 11,030,671
Change In net position 5,271,633 3,180,597 8,452,230 4,984,200
Net position -beginning ~ 80,778,817 $ 114,362,248 $ 195,141,065 $ 190,156,865
Net Position -Ending $ 86,050,450 $ 117,542,845 $ 203,593.~95 $ 195,141,065
See accompanying notes to financial statements.
I
V
-
4
CITY OF ROSEMOUNT
BALANCE SHEET-GOVERNMENTAL FUNDS
As of December 31, 2014
Port Nonmajor Total
Authority Governmental Governmental
General Debt Service CaE!ital Pro~cts TIF Funds Funds
ASSETS
Cash and investments $ 9,145,098 $ 5,094,409 $ 9,945,837 $ 1,009,662 $ 207,106 $ 25,402,112
Receivables from:
Taxes 747,588 12,068 759,656
Accounts 68,399 156,270 224,669
Special assessments 1,908,447 1,192,920 3,101,367
Delinquent special assessments 5,670 1,922 7,592
Due from other governmental units 12,772 333,754 87,878 434,404
Prepaid items 66,238 10,000 549 76,787
Total assets $ 10,040,095 $ 7,008,526 $ 11,640,703 $ 1,021,730 $ 295,533 $ 30,006,587
LIABILITIES, DEFERRED INFLOWS OF RESOURCES,
AND FUND BALANCES
Liabilities
Accounts payable $ 376,050 $ -$ 763,411 $ -$ 4,150 $ 1,143,611
Accrued payroll and payroll taxes 155,676 155,676
Deposits payable 200,550 200,550
Advances from other funds 85,103 85,103
Total liabilities 732,276 848,514 4,150 1,584,940
Deferred Inflows of Resources
Unavailable revenue 144,172 1,913,977 1,188,939 3,247,088
Unearned revenue 118,412 274,139 392,551
Total deferred inflows of resources 144172 2,032,389 1,463,078 3,639,639
Fund Balances
Nonspendable 66,238 10,000 549 76,787
Restricted 4,976,137 1,988,610 1,021,730 7,986,477
Committed 290,834 290,834
Assigned 2,808,794 7,330,501 10,139,295
Unassigned 6,288,615 6,288,615
Total fund balances 9,163,647 4,976,137 9,329,111 1,021,730 291,383 24,782,008
Total liabilities, deferred inflows of resources,
and fund balances $ 10,040,095 $ 7,0081526 $ 11,640?03 $ 1,021?30 $ 295.533
Amounts reported for governmental activities in the statement of net position are different because:
Capital assets used in governmental funds are not financial resources and, therefore, are not reported in the funds. 74,553,402
Some receivables that are not currently available are reported as deferred inflows of resources in the fund financial
statements but are recognized as revenue when earned in the government-wide statements. 3,247,088
Internal service funds are reported in the statement of net position as governmental activities. 758,465
Some liabilities, including long-term debt, are not due and payable in the current period and, therefore, are not
reported in the funds. See Note II.A. (17,290,513)
NET POSITION OF GOVERNMENTAL ACTMTIES s 86,050,450
See accompanying notes to financial statements.
IV-5
CITY OF ROSEMOUNT
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES· GOVERNMENTAL FUNDS
For the Year Ended December 31, 2014
Port Non major Total
Authority Governmental Governmental
General Debt Service Ca~ital Projects TIF Funds Funds
REVENUES
Taxes $ 9,060,134 $ 375,622 $ 1,254,000 $ 646,636 $ 58,000 $ 11,394,392
Intergovernmental 342,158 1,427, 106 740,660 2,509,924
Public charges for services 1,253,601 1,873,663 5,292 3,132,556
Licenses and permits 730,765 730,765
Fines and forfeitures 116,384 116,384
Special assessments 4,652 1,528,454 590,093 2,123,199
Interest earnings 176,321 6,806 33,089 800 217,016
Change in fair value of investments 231,871 87,773 319,644
Donations/contributions 1,988,610 1,988,610
Miscellaneous 100,972 507,731 1,422 610,125
Total Revenues 12,016,858 1,910,882 7,762,065 647,436 805,374 23,142,615
EXPENDITURES
Current:
General government 2,509,554 8,448 158,910 75,241 2,752,153
Public safety 3,762,826 3,762,826
Public works 3,165,615 26,872 3,192,487
Parks and recreation 1,304,867 1,304,867
Conservation and development 376,496 376,496
Capital Outlay 8,777,373 40,278 652,781 9,470,432
Debt Service:
Principal retirement 1,470,000 110,000 1,580,000
Interest and fiscal charges 219,725 19,595 269,285 508,605
Total Expenditures 10,742,862 1,689,725 8,832,288 954,969 728,022 22,947,866
Excess (deficiency) of revenues
over expenditures 1,273,996 221,157 (1,070,223) (307,533) 77,352 194,749
OTHER FINANCING SOURCES (USES)
Issuance of long-term debt 2,400,000 2,400,000
Sale of capital assets 65,290 283,045 348,335
Transfers in 3,500 200,000 1,705,255 1,908,755
Transfers out (475,000) (24,617) (499,617)
Total Other Financing Sources (Uses) (471,500) 200,000 4,145,928 283,045 4,157,473
Net Change In Fund Balances 802,496 421, 157 3,075,705 (24,488) 77,352 4,352,222
FUND BALANCES -Beginning 8,361,151 4,554,980 6,253,406 1,046,218 214,031 20.429,786
FUND BALANCES -ENDING $ 9,163,647 $ 4,976,137 $ 9,329,111 $ 1,021,730 $ 291,383 $ 24,782,008
See accompanying notes to financial statements.
IV-6
CITY OF ROSEMOUNT
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended December 31, 2014
Net change in fund balances -total governmental funds
Amounts reported for governmental activities in the statement of activities
are different because:
Governmental funds report capital outlays as expenditures. However, in the
statement of net position the cost of these assets is capitalized and they are
depreciated over their estimated useful lives with depreciation expense reported
in the statement of activities.
Capital outlay is reported as an expenditure in the fund financial statements
but is capitalized in the government-wide financial statements
Some items reported as capital outlay but not capitalized
Some items reported as operating expenditures in the fund financial statements but
are capitalized in the government-wide statements
Depreciation is reported in the government-wide statements
Utility infrastructure constructed by capital projects funds not reported
as governmental activities
In the statement of activities, the loss of ($1,833, 139) on the disposal of
capital assets is reported. In the fund financial statements, proceeds from the sale
of capital assets $348,335 are reported because the proceeds increase
financial resources
Internal service funds are reported in the statement of activities.
Receivables not currently available are reported as unavailable revenue in the fund financial
statements but are recognized as revenue when earned in the government-wide
financial statements.
Issuing debt provides current financial resources to governmental funds, but issuing
debt increases long-term liabilities in the statement of net position.
This is the amount of debt issued during the year.
Repayment of debt principal is an expenditure in the governmental funds, but the
repayment reduces long-term liabilities in the statement of net position. This is the amount
of principal payments paid.
Some expenses in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures
in the governmental funds. This is the change in the following liabilities.
Compensated absences
Accrued interest on debt
CHANGE IN NET POSITION OF GOVERNMENTAL ACTIVITIES
See accompanying notes to financial statements.
$ 4,352,222
9,470,432
(940,385)
786,731
(1,902,760)
(3,723,858)
(2,181,474)
(67,755)
301,474
(2,400,000)
1,580,000
(9,919)
6,925
$ 5,271,633
IV-7
CITY OF ROSEMOUNT
STATEMENT OF NET POSITION -PROPRIETARY FUNDS
As of December 31, 2014
Business-T~ Activities -Enterl!rise Funds
Governmental
Activities -
Storm Non-major Internal Service
Water Sewer Water Arena Totals Fund
ASSETS
Current assets:
Cash and investments $ 6,929,741 $ 5,285,438 $ 5,498,362 $ 305,292 $ 18,Q18,833 $ 634,074
Accounts receivable 349,893 340,790 196,149 28,977 915,809 21,395
Special assessments receivable 122,053 91,908 106,278 320,239
Due from other governments 351,694 351,694
Prepaid and other assets 7,856 97,661 4,548 5,354 115,419 115,028
Total current assets 7,409,543 5,815,797 6,157,031 339,623 19,721,994 770,497
Non-current assets:
Advance to other funds 120,563 120,563
Property and equipment:
Land 1,008,628 547,158 1,095,981 2,651,767
Construction in progress 828,755 2,005,665 516,046 3,350,466
Buildings 6,794,504 401,414 1,489,523 2,399,900 11,085,341
Mains and lines 21,191,244 17,417,434 26,855,162 65,463,840
Other improvements 16,528,701 36,927,459 12,535,129 65,991,289
Machinery and equipment 1,906,993 743,320 716,802 136,600 3,503,715
Less accumulated depreciation (14,169,558) (28,222,220) (8,981,375) (1,078,857) (52,452,010)
Net property and equipment 34,089.267 29,820,230 34,227,268 1,457,643 99,594,408
Total non-current assets 34,089,267 29,940,793 34,227,268 1,457,643 99,714,971
Total Assets 41,498,810 35,756,590 40,384,299 1,797,266 119,436,965 770,497
LIABILITIES
Current liabilities:
Accounts payable 94,414 20,798 38,432 26.683 180,327 12,032
Accrued liabilities 26,612 7,412 4,325 5,207 43,556
Accrued interest 13,960 5,518 19,478
Current portion of long term obligations 273,146 38,146 190,055 11,996 513,343
Total current liabilities 408,132 66,356 238,330 43,886 756,704 12,032
Noncurrent liabilities:
Accrued compensated absences 41,325 41,325 16,310 12,996 111,956
General obligation debt 530,000 460,000 990,000
Advances from other funds 35,460 35,460
Total noncurrent liabilities 606,785 41,325 476,310 12,996 1,137,416
Total Liabilities 1,014,917 107,681 714,640 56,882 1,894,120 12,032
NET POSITION
Net investment in capital assets 33,324,267 29,820,230 33,592,268 1,457,643 98,194,408
Unrestricted 7,159,626 51828,679 6,077,391 282.741 19,348,437 758,465
TOTAL NET POSITION $ 40,483,893 $ 35,648,909 $ 39,669,659 $ 1,740,384 $ 1171542,845 $ 758,465
See accompanying notes to financial statements.
IV-8
CITY OF ROSEMOUNT
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the Year Ended December 31, 2014
Business-T:t(!!! Activities -Ente!Erise Funds
Governmental
Activities-
Storm Non-major Internal Service
water Sewer Water Arena Totals Funds
OPERATING REVENUES
Charges for services $ 1,576,742 $ 1,533,518 $ 1,044,770 $ 392,631 $ 4,547,661 $
Water meters 37,385 37,385
Miscellaneous 2,800 2,800
Total Operating Revenues 1,616,927 1,533,518 1,044,770 392,631 4,587,846
OPERATING EXPENSES
Personnel services 452,813 452,012 189,489 203,133 1,297,447
Supplies 177,496 8,274 8,150 21,932 215,852 28,417
Professional services and charges 170, 107 26,008 98,423 35,154 329,692 27,244
Other services and charges 342,773 80,118 167,014 176,109 766,014 261,230
Metro sewer charges 1,090,261 1,090,261
Depreciation 782,249 866,240 645,747 57,615 2,351,851
Total Operating Expenses 1,925,438 2,522,913 1,108,823 493,943 6,051,117 316,891
Operating Loss (308,511) (989,395) (64,053) (101,312) ( 1,463,271) (316,891)
NONOPERATING REVENUES (EXPENSES)
Connection fees 467,164 188,024 298,912 954,100
Taxes 245,000
Intergovernmental 9,901 19,680 29,581
Interest earnings 105,515 147,534 80,427 453 333,929 4,136
Change in fair value of investments 96,607 104,600 75,172 276,379
Surcharges and penalties 295,056 12, 104 6,577 313,737
Interest expense and fiscal agent fees {37,395) {14,016) {51,411)
Total Nonoperating Revenues 936,848 452,262 466,752 453 1,856,315 249,136
Income (loss) before contributions
and transfers 628,337 (537,133) 402.699 (100,859) 393,044 (67,755)
Capital contributions, including
special assessments 1,086,998 2,126,844 982,849 4,196,691
Transfers in 176,617 115,000 291,617
Transfers out {356,796) {1,152,551) {187,908) {3,500) {1,700,755)
Change in Net Position 1,358,539 437,160 1,374,257 10,641 3,180,597 (67,755)
TOTAL NET POSITION -Beginning 39,125,354 35,211,749 38,295,402 1,729,743 114,362,248 826,220
TOTAL NET POSITION ·ENDING $ 40,483,893 $ 35,648,909 $ 39,669,659 $ 1,740,384 $ 117,542,845 $ 758,465
See accompanying notes to financial statements.
IV-9
CITY OF ROSEMOUNT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2014
Buslness-T:te! Activities -Ente!]!rise Funds Governmental
Activities -
Storm Non major Internal
Water Sewer Water Arena Totals Service Fund
CASH FLOWS FROM OPERA TING ACTIVITIES
Cash received from customers $ 2,457,243 $ 1,750,106 $ 1,375,490 $ 419, 168 $ 6,002,007 $
Cash paid to suppliers for goods and services (673,482) (1, 187,856) (284,199) (226,587) (2,372, 124) (354,984)
Cash paid for employees (452,813) (452,012) (189,489) (203,133) (1,297,447)
Net Cash Flows From (Used by) Operating Activities 1,330,948 110,238 901,802 (10,552) 2,332,436 (354,984)
CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Property taxes 245,000
Repayment of advance to other funds 26,639 26,639
Repayment of advance from other funds (7,835) (7,835)
Repayment of advance to other governmental units 29,686 29,686
Transfers from other funds 176,617 115,000 291,617
Transfers to other funds (356,796) (1,152,551) (187,908) (3.500) (1,700,755)
Net Cash Rows From (Used by) Noncapital Financing Activities (364,631) (1, 125,912) 18,395 111,500 (1.360,648) 245,000
CASH FLOWS FROM INVESTING ACTIVITIES
Marketable securities purchased (1,339,089) (619,321) (1,033,070) (100,000) (3,091,480) (96,000)
Marketable securities sold 546,000 1,696,000 725,000 2,967,000 150,000
Interest earnings 105,515 147,534 80,427 453 333,929 4,136
Net Cash Flows From (Used by) Investing Activities (687,574) 1,224,213 (227,643) (99,547) 209,449 58,136
CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Debt retired (225,000) (310,000) (535,000)
Interest paid (41,645) (15,759) (57,404)
Capital contributions 233,470 134,849 226,304 594,623
Acquisition and construction of capital assets (123,401) (189,151) (190,311) (13,952) (516,815)
Net Cash Flows From (Used by) Capital and Related Financing Activities (156,576) (54,302) (289,766) (13,952) (514,596)
Net Increase (Decrease) in Cash and Cash Equivalents 122,167 154,237 402,788 (12,551) 666,641 (51,848)
CASH AND CASH EQUIVALENTS -Beginning of Year 1,955,881 851,095 1,063,197 217,843 4,088,016 341,922
CASH AND CASH EQUIVALENTS -END OF YEAR $ 2,078,048 $ 1,005,332 s 1,465,985 $ 205,292 $ 4,754,857 s 2901074
RECONCILIATION OF CASH ANO CASH EQUIVALENTS
Cash and Investments per Statement of Net Position s 6,929,741 $ 5,285,438 $ 5,498,362 $ 305,292 $ 18.018,833 s 634,074
Less: Non Cash Equivalents (4,851,693) (4,280.106) (4,032,377) (100,000) (13.264, 176) (344,000)
Cash and Cash Equivalents Per Statement of Cash Flows $ 2,078,048 $ 1,005,332 $ 1.465,985 $ 205,292 $ 4,754,657 $ 290,074
RECONCILIATION OF OPERATING INCOME (LOSS) TO NET CASH
FLOWS FROM (USED BY) OPERATING ACTIVITIES
Operating loss s (308,511) $ (989,395) $ (64,053) $ (101,312) $ ( 1,463,271) (316,891)
Non-operating income 772,121 200,128 325,169 1,297,418
Adjustments to Reconcile Operating Loss to Net Cash Flows
From (Used by) Operating Activities
Noncash Items included in income
Oepreciation 782,249 866.240 645,747 57,615 2,351,851
Change in assets and liabilities
Accounts receivable 51,669 16,460 5,551 73,680 (21,395)
Other receivables 26,537 26,537
Prepaid items (984) 86 (215) (306) (1,419) (18,120)
Accounts payable 27,789 12,353 (12,479) 10,476 38,139 1,422
Other current liablfities 4,004 1,755 585 1,169 7,513
Accrued llablllUes 2,611 2.611 1,497 (4,731) 1,988
NET CASH FLOWS FROM (USED BY) OPERATING ACTIVITIES $ 1,330,948 $ 110,238 $ 901,802 $ (10,552) $ 2,332,436 $ (354,984)
Non-cash capital, Investing and financing activities:
The Water Utility received contributed plant of $906,431 during the year. The Sewer Utility received contributed plant of $2,027 ,981 during the year.
The Storm Water utility received contributed plant of $789,447 during the year.
Unrealized gains on investments were $96,607 for the Water UUUty, $104,600 for the Sewer Utility, and $75, 172 for the Storm Water Utility for the year.
See accompanying notes to financial statements.
IV-10
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Rosemount, Minnesota (the "City") was formed and operates pursuant to applicable Minnesota
laws and statutes. The governing body consists of a fJVe-member City Council elected at large by voters of
the City. City Council members serve four-year staggered terms and the mayor serves a four-year term
coinciding with the terms of two of the Council members. Elections take place every two years.
The accounting policies of the City conform to accounting principles generally accepted in the United
States of America, as applicable to governmental units. The accepted standard-setting body for
establishing governmental accounting and financial reporting principles in the Governmental
Accounting Standards Board (GASB).
A. REPORTING ENTITY
This report includes all of the funds of the City. The reporting entity for the City consists of the primary
government and its component unit. Component units are legally separate organizations for which the
primary government is financially accountable or other organizations for which the nature and
significance of their relationship with the primary government are such that their exclusion would cause
the reporting entity's financial statements to be misleading. The primary government is financially
accountable if (1) it appoints a voting majority of the organization's governing body and it is able to
impose its will on that organization, (2) it appoints a voting majority of the organization's governing body
and there is a potential for the organization to provide specific financial benefits to, or impose specific
financial burdens on, the primary government, (3) the organization is fiscally dependent on and there is a
potential for the organization to provide specific financial benefits to, or impose specific financial burdens
on, the primary government. Certain legally separate, tax exempt organizations should also be reported
as a component unit if all of the following criteria are met: (1) the economic resources received or held
by the separate organization are entirely or almost entirely for the direct benefit of the primary
government, its component units, or its constituents; (2) the primary government or its component units,
is entitled to, or has the ability to access. a majority of the economic resources received or held by the
separate organization; and (3) the economic resources received or held by an individual organization
that the primary government, or its component units, is entttied to, or has the ability to otherwise access,
are significant to the primary government.
Component units are reported using one of two methods, discrete presentation or blending. Generally,
component units should be discretely presented in a separate column in the financial statements. A
component unit should be reported as part of the primary government using the blending method if it
meets any one of the following criteria: (1) the primary government and the component unit have
substantially the same governing body and a financial benefit or burden relationship exists, (2) the
primary government and the component unit have substantially the same governing body and
management of the primary government has operational responsibility for the component unit, (3) the
component unit serves or benefits, exclusively or almost exclusively, the primary government rather than
its citizens, or (4) the total debt of the component unit will be paid entirely or almost entirely from
resources of the primary government.
The financial statements include the Rosemount Port Authority as a blended component unit. The Port
Authority serves all the citizens of the government and is governed by a board comprised of three of five
of the primary government's elected council and four citizens appointed at large. The bond issuance
authorizations are approved by the primary government's council and the legal liability for the general
obligation portion of the Port Authority's debt remains with the primary government. The Port Authority is
reported in a special revenue fund and debt service fund. The Rosemount Port Authority does not issue
separate financial statements.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
8. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
Government-Wide Financial Statements
The statement of net position and statement of activities display information about the reporting
government as a whole. They include all funds of the reporting entity except for fiduciary funds. The
statements distinguish between governmental and business-type activities. Governmental activities
generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues.
Business-type activities are financed in whole or in part by fees charged to external parties for goods
or services.
The statement of activities demonstrates the degree to which the direct expenses of a given function, or
segment, are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. The City does not allocate indirect expenses to functions in the statement
of activities. Program revenues include 1) charges to customers or applicants who purchase, use or
directly benefit from goods, services, or privileges provided by a given function or segment, and 2)
grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not included among program revenues are
reported as general revenues. Internally dedicated resources are reported as general revenues rather
than as program revenues.
Fund Financial Statements
Financial statements of the reporting entity are organized into funds, each of which is considered to be a
separate accounting entity. Each fund is accounted for by providing a separate set of seif-balancing
accounts, which constitute its assets, deferred outflows or resources, liabilities, deferred inflows of
resources, net position/fund equity, revenues, and expenditures/expenses.
Funds are organized as major funds or non-major funds within the governmental and proprietary
statements. An emphasis is placed on major funds within the governmental and proprietary categories. A
fund is considered major if it is the primary operating fund of the City or meets the following criteria:
a. Total assets/deferred outflows of resources, liabilities/deferred inflows of resources, revenues, or
expenditures/expenses of that individual governmental or enterprise fund are at least 10% of the
corresponding total for all funds of that category or type, and.
b. The same element of the individual governmental fund or enterprise fund that met the 10% test is
at least 5% of the corresponding total for all governmental and enterprise funds combined.
c. In addition, any other governmental or enterprise fund that the City believes is particularly
important to financial statement users may be reported as a major fund.
Separate financial statements are provided for governmental funds, proprietary funds and fiduciary funds,
even though the latter are excluded from the government-wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
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CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE I -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.)
The City reports the following major governmental funds:
General Fund -accounts for the City's primary operating activities. It is used to account for and
report all financial resources except those accounted for and reported in another fund.
Debt Service Fund -used to account for and report financial resources that are restricted,
committed, or assigned to expenditure for the payment of general long-term debt principal,
interest, and related costs, other than enterprise debt.
Capital Projects Fund -used to account for and report financial resources that are restricted,
committed, or assigned to expenditures for capital outlays, including the acquisition or
construction of capital facilities and other capital assets. The capital projects fund consists of
one primary fund and three separate internal funds maintained by the City.
Port Authority TIF Fund -used to account for and report financial resources that are restricted,
committed, or assigned to expenditures related to the activities of the City's Downtown -
Brockway TIF District.
The City reports the following major enterprise funds:
Water Utility-accounts for operations of the water system.
Sewer Utility -accounts for operations of the sewer system.
Storm Water Utility-accounts for operations of the storm water drainage system.
The City reports the following non-major governmental and enterprise funds:
Special Revenue Funds -used to account for and report the proceeds of specific revenue
sources that are restricted or committed to expenditures for specified purposes (other than debt
service or capital projects).
Fire Safety Education Fund
GIS Fund
Port Authority General Fund
Enterprise Funds -may be used to report any activity for which a fee is charged to external
uses for goods or services, and must be used for activities which meet certain debt or cost
recovery criteria.
Arena Fund -accounts for the activities of the City's ice arena operations.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE,_ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
B. GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.)
Fund Financial Statements (cont.)
In addition, the City reports the following fund types:
Internal service funds are used to account for the financing of goods and services provided by
one department or agency to other departments or agencies of the City on a cost-
reimbursement basis.
Insurance Fund -accumulates resources to pay deductibles and uninsured claims, and
pays for a majority of the general liability insurance and workers compensation insurance
premiums for the City.
c. MEASUREMENT Focus, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION
Government-Wide Financial Statements
The government-wide statement of net position and statement of activities are reported using the
economic resources measurement focus and the accrual basis of accounting. Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when the liability is
incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting
from exchange and exchange-like transactions are recognized when the exchange takes place. Property
taxes are recognized as revenues in the year for which they are levied. Grants and similar items are
recognized as revenue as soon as all eligibility requirements imposed by the provider are met. Special
assessments are recorded as revenue when earned. Unbilled receivables are recorded as revenues
when services are provided.
As a general rule, the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions lo this general rule are charges between the City's water and sewer utility and
various other functions of the government. Elimination of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
Fund Financial Statements
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recorded when they are both
measurable and available. Available means collectible within the current period or soon enough thereafter
to be used to pay liabilities of the current period. For this purpose, the City considers revenues to be
available if they are collected within 60 days of the end of the current fiscal period. Expenditures are
recorded when the related fund liability is incurred, except for unmatured interest on long-term debt,
claims, judgments, compensated absences, and pension expenditures, which are recorded as a fund
liability when expected to be paid with expendable available financial resources.
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CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE I -SUMMARY OF SIGNIFICANT AcCOUNTING POLICIES (cont.)
c. MEASUREMENT Focus, BASIS OF ACCOUNTING ANO FINANCIAL STATEMENT PRESENTATION (cont.)
Fund Financial Statements (cont.)
Property taxes, special assessments, intergovernmental revenues, charges for services and interest
associated with the current fiscal period are all considered to susceptible to accrual and so have been
recognized as revenues of the current fiscal period. Only the portion of special assessments receivable
due within the current fiscal period is considered to be susceptible to accrual as revenue of the current
period. All other revenue items are considered to be measurable and available only when cash is received
by the City.
Proprietary fund financial statements are reported using the economic resources measurement focus and
the accrual basis of accounting, as described previously in this note. Agency funds follow the accrual basis
of accounting, and do not have a measurement focus.
The proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the water, sewer, storm water, and arena funds are charges to customers for sales and services.
Operating expenses for proprietary funds include the cost of sales and services, administrative
expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are
reported as nonoperating revenues and expenses.
All Financial Statements
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenditures/expenses during the reporting period. Actual results
could differ from those estimates.
D. ASSETS, LIABIUTIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION OR EQUITY
1. Deposits and Investments
For purposes of the statement of cash flows, the City considers all highly liquid investments with an initial
maturity of three months or less when acquired to be cash equivalents.
Investment of City funds is restricted by state statutes. Available investments are limited to:
1. Direct obligations or obligations guaranteed by the United States or its agencies, commercial
paper, repurchase or reverse repurchase agreements with banks that are members of the Federal
Reserve System with capitalization exceeding $10,000,000, a primary reporting dealer in U.S.
Government Securities to the Federal Reserve Bank of New York or certain Minnesota
brokers/dealers.
2. General obligations of the State of Minnesota or any of its municipalities.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE , _ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, LIAS/UT/ES, DEFERRED INFLOWS OF RESOURCES, AND NET PosmON OR EQUITY (cont.)
1. Deposits and Investments (cont.)
3. Bankers acceptances of United States banks eligible for purchase by the Federal Reserve System.
4. Shares of investment companies registered under the Federal Investment Company Act of 1940
and whose only investments are direct obligations guaranteed by the United States or its agencies.
The City has adopted an investment policy. The policy contains the following guidelines:
Credit Risk -The policy follows state statutes for allowable investments except that it does
not permit the purchase of shares of investment companies registered under the Federal
Investment Company Act of 1940 whose only investments are direct obligations guaranteed
by the United States or its agencies.
Concentration of Credit Risk -The policy does not limit the amount the City may invest in
any one issu,er.
Interest Rate Risk -As a means of limiting its exposure to fair value losses arising from
rising interest rates, the City's investment policy limits the amount of investments with
maturities of more than five years to 35% of the City's total investment portfolio (including
certificates of deposit).
Investments are stated at fair value, which is the amount at which an investment could be exchanged
in a current transaction between willing parties. Fair values are based on quoted market prices. No
investments are reported at amortized cost. Adjustments necessary to record investments at fair value
are recorded in the operating statement as increases or decreases in investment income. The
difference between the bank statement balance and carrying value is due to outstanding checks and/or
deposits in transit.
See Note IV.A. for further information.
2. Receivables
Property tax levies are set by the City Council in the fall each year and are certified to Dakota County for
collection in the following year. In Minnesota, counties act as collection agents for all property taxes.
The County spreads all levies over taxable property. Such taxes become a lien on January 1 and are
recorded as receivables by the City at that date. Property taxes are accrued and recognized as revenue in
the year collectible, net of delinquencies.
Real property taxes may be paid by taxpayers in two equal installments on May 15 and October 15.
Personal property taxes may be paid on February 28 and June 30. The County provides tax settlements to
the City three times per year, in January, July, and December.
Taxes which remain unpaid 60 days after year end are classified as delinquent taxes receivable and are
fully offset by unavailable revenue (deferred inflow of resources) because they are not known to be
available to finance current expenditures.
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CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE I -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSE7S, LIABIUTIES, DEFERRED INFLOWS OF RESOURCES, AND NET PosmoN OR EQUITY (cont.)
2. Receivables (cont.)
Special assessments are levied against the benefited properties for the assessable costs of special
assessments improvement projects in accordance with state statutes. The City usually adopts the
assessment rolls when the individual projects are complete. The assessments are collectible over a term
of years generally consistent with the term of years of the related bond issue. Collection of annual
installments (including interest) is handled by the County in the same manner as property taxes. Property
owners are allowed to prepay total future installments without interest or prepayment penalties.
Special assessments receivable includes the following components:
> Current -amount collected by Dakota County and not remitted to the City.
> Delinquent -amounts billed to property owners but not paid.
> Unavailable -assessment installments, which will be billed to property owners in future years.
> Other -assessments for which payment has been postponed based on council action.
Accounts receivable are considered to be 100% collectible.
During the course of operations, transactions occur between individual funds that may result in amounts
owed between funds. Short-term interfund loans are reported as "due to and from other funds.· Long-term
interfund loans (noncurrent portion) are reported as "advances from and to other funds: lnterfund
receivables and payables between funds within governmental activities are eliminated in the statement of
net position. Any residual balances outstanding between the governmental activities and business-type
actiVities are reported in the government-wide financial statements as internal balances.
In the governmental fund financial statements, advances to other funds are offset equally by a
nonspendable fund balance account which indicates that they do not constitute expendable available
financial resources and, therefore, are not available for appropriation or by a restricted fund balance
account, if the funds will ultimately be restricted when the advance is repaid.
3. Inventories and Prepaid Items
Governmental fund inventory items are charged to expenditure accounts when purchased. Year-end
inventory was not significant. Proprietary fund inventories are generally used for construction and for
operation and maintenance work. They are not for resale. They are valued at cost based on weighted
average, and charged to construction and/or operation and maintenance expense when used.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items in both government-wide and fund financial statements and expensed as the items are
used (consumption method).
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE I -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, LIABILmES, DEFERRED INFLOWS OF RESOURCES, AND NET PosmoN OR EQUITY (cont.)
'· Capital Assets
Government -Wide Statements
Capital assets, which include property, plant and equipment, are reported in the government-wide financial
statements. Capital assets are defined by the government as assets with an initial cost of more than
$5,000 for general capital assets and infrastructure assets, and an estimated useful life in excess of one
year. All capital assets are valued at historical cost or estimated historical cost if actual amounts are
unavailable. Donated capital assets are recorded at their estimated fair value at the date of donation.
Additions to and replacements of capital assets of business-type activities are recorded at original cost,
which includes material, labor, overhead, and an allowance for the cost of funds used during construction
when significant. For tax-exempt debt, the amount of interest capitalized equals the interest expense
incurred during construction netted against any interest revenue from temporary investment of borrowed
fund proceeds. No interest was capitalized during the current year. The cost of renewals and betterments
relating to retirement units is added to plant accounts. The cost of property replaced retired or otherwise
disposed of, is deducted from plant accounts and, generally, together with removal costs less salvage, is
charged to accumulated depreciation.
Depreciation of all exhaustible capital assets is recorded as an allocated expense in the statement of
activities, with accumulated depreciation reflected in the statement of net position. Depreciation is
provided over the assets' estimated useful lives using the straight-line method of depreciation. The range
of estimated useful lives by type of asset is as follows:
Buildings
Machinery and equipment
Other improvements
Utility system
Infrastructure
Fund Financial Statements
30-65 Years
4-20 Years
60Years
65 Years
35-50 Years
In the fund financial statements, capital assets used in governmental fund operations are accounted for as
capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary
fund operations are accounted for the same way as in the government-wide statements.
5. Compensated Absences
Under terms of employment, employees are granted vacation, sick and comp time benefits In varying
amounts. These benefits are based upon union contracts and City actions as applicable. Amounts carried
forward for vacation and comp time accruals are governed by these contracts and actions. Sick pay
accruals may be carried forward indefinitely.
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CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE I -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, LIABIUTIES, DEFERRED INFLOWS OF RESOURCES, AND NET PosmoN OR EQUITY (cont.)
5. Compensated Absences (cont.)
All vested vacation, sick leave and comp time pay is accrued when incurred in the government-wide and
proprietary fund financial statements. A liability for these amounts is reported in governmental funds only if
they have matured, for example, as a result of employee resignations and retirements, and are payable
with expendable available resources.
Payments for vacation, sick and comp time leave will be made at rates in effect when the benefits are
used. Accumulated vacation, sick and comp time leave liabilities at December 31, 2014 are determined on
the basis of current salary rates and include salary related payments.
6. Long· Term Obligations/Conduit Debt
All long-term obligations to be repaid from governmental and business-type resources are reported as
liabilities in the government-wide statements. The long-term obligations consist primarily of notes and
bonds payable, and accrued compensated absences.
Long-term obligations for governmental funds are not reported as liabilities in the fund financial
statements. The face value of debts (plus any premiums) are reported as another financing source and
payments of principal and interest are reported as expenditures. The accounting in proprietary funds is the
same as it is in the government-wide statements.
The City has approved the issuance of industrial revenue bonds (IRS) for the benefit of private business
enterprises. IRB's are secured by mortgages or revenue agreements on the associated projects, and do
not constitute indebtedness of the City. Accordingly, the bonds are not reported as liabilities in the
accompanying financial statements. At year end, the aggregate principal amount for the four issues
outstanding could not be determined; however, their original issue amounts totaled $13,094,720.
7. Deferred Inflows of Resources
A deferred inflow of resources represents an acquisition of net position that applies to a future period and
therefore will not be recognized as inflow of resources (revenue) until that future time.
8. Equity Classifications
Government-Wide Statements
Equity is classified as net position and displayed in three components:
a. Net investment in capital assets -Consists of capital assets including restricted capital assets,
net of accumulated depreciation and reduced by the outstanding balances (excluding unspent
debt proceeds) of any bonds, mortgages, notes, or other borrowings that are attributable to
the acquisition, construction, or improvement of those assets.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE I -SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, LIASIUTIES, DEFERRED INFLOWS OF RESOURCES, AND NET PosmoN OR EQUITY (cont.)
8. Equity Classifications (cont.)
Government-Wide Statements (cont.)
b. Restricted net position -Consists of net position with constraints placed on their use either by
1) external groups such as creditors, grantors, contributors, or laws or regulations of other
governments or, 2) law through constitutional provisions or enabling legislation.
c. Unrestricted net position -All other net positions that do not meet the definitions of ·restricted"
or "net investment in capital assets."
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed.
Fund Statements
Governmental fund equity is classified as fund balance and displayed as follows:
a. Nonspendable -Includes fund balance amounts that cannot be spent either because they are
not in spendable form or because legal or contractual requirements require them to be
maintained intact.
b. Restricted -Consists of fund balances with constraints placed on their use either by 1) external
groups such as creditors, grantors, contributors, or laws or regulations of other governments or 2)
law through constitutional provisions or enabling legislation.
c. Committed -Includes fund balance amounts that are constrained for specific purposes that are
internally imposed by the government through formal action of the highest level of decision
making authority. Fund balance amounts are committed through a formal action (resolution) of the
City Council. This formal action must occur prior to the end of the reporting period, but the amount
of the commitment, which will be subject to the constraints, may be determined in the subsequent
period. Any changes to the constraints imposed require the same formal action of the City Council
that originally created the commitment.
d. Assigned -Includes spendable fund balance amounts that are intended to be used for specific
purposes that are not considered restricted or committed. Fund balance may be assigned through
the following: 1) The City Council has authorized the Finance Director and/or Administrator to
assign amounts for a specific purpose. 2) All remaining positive spendable amounts in
governmental funds, other than the general fund, that are neither restricted or committed.
Assignments may take place after the end of the reporting period.
e. Unassigned -Includes residual positive fund balance within the general fund which has not been
classified within the other above mentioned categories. Unassigned fund balance may also
include negative balances for any governmental fund if expenditures exceed amounts restricted,
committed, or assigned for those purposes.
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5
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE , _ SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.)
D. ASSETS, LIABILmES, DEFERRED INFLOWS OF RESOURCES, AND NET PosmoN OR EQUfTY (cont.)
8. Equity Classifications (cont.)
Fund Statements (cont.)
Proprietary fund equity is classified the same as in the government-wide statements.
The City considers restricted amounts to be spent first when both restricted and unrestricted fund balance
is available unless there are legal documents I contracts that prohibit doing this, such as in grant
agreements requiring dollar for dollar spending. Additionally, the City would first use committed, then
assigned and lastly unassigned amounts of unrestricted fund balance when expenditures are made.
The City has a formal minimum fund balance policy. That policy is to maintain a working capital fund of 45
to 55 percent of the subsequent year's general fund expenditures. The balance at year end was
$6,288,615, or 55 percent, and is included in unassigned general fund balance.
9. Prior Period lnfonnatlon
The basic financial statements include certain prior-year summarized comparative information in total but
not at the level of detail required for a presentation in conformity with generally accepted accounting
principles. Accordingly, such information should be read in conjunction with the government's financial
statements for the year ended December 31, 2013, from which the summarized information was derived.
10. Basis for Existing Rates
Current utility rates were approved by the City Council on December 17, 2013.
NOTE II -RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS
A. ExPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUNDS BALANCE SHEET AND
THE STATEMENT OF NET POSITION
The governmental fund balance sheet includes a reconciliation between fund balance -total
governmental funds and net position -governmental activities as reported in the government-wide
statement of net position. One element of that reconciliation explains that "Some liabilities, including long-
term debt, are not due and payable in the current period and, therefore, are not reported in the funds". The
details of this $17,290,513 difference are as follows:
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE II -RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS (cont.)
A. ExPLANATION OF CERTAIN DIFFERENCES BETWEEN THE GOVERNMENTAL FUNDS BALANCE SHEET AND
THE STATEMENT OF NET POSITION (cont.)
Long-term liabilities applicable to the City's governmental activities are not due and payable in the current
period, and accordingly, are not reported as fund liabilities. Interest on long-term debt is not accrued in
governmental funds, but rather is recognized as an expenditure when due. All liabilities -both current and
long-term -are reported in the statement of net position.
Bonds and notes payable (excluding unspent capital related
proceeds)
Compensated absences
Accrued interest
Combined Adjustment for Long-Term Liabilities
NOTE Ill -STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. BUDGETARYINFORMATION
$ 16,115,000
973,572
201,941
$ 17,290,513
Annual budgets have been adopted for the general fund and the capital project fund that is created by the
following sub-funds, Building CIP, Street CIP and Equipment CIP. The remaining capital project sub funds
adopt project-length budgets and therefore are not included in the annual budgeting process. Formal
budgetary integration is not employed for debt service funds because effective budgetary control is
alternatively achieved through general obligation bond indenture provisions.
The budgeted amounts presented include any amendments made. The appropriated budget is prepared
by fund, department and function. The legal level of budgetary control is at the department level. The City
Council may authorize department heads to transfer budgeted appropriations within departments. The
Council approved several supplemental budgetary appropriations during the year, but they were not
considered material.
Appropriations lapse at year end unless specifically carried over. Carryovers to the following year were
$2,689,322.
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CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE IV -DETAILED NOT£S ON ALL FUNDS
A. DEPOSITS ANO INVESTMENTS
The City maintains a cash and investment pool that is available for use by all funds. Each fund type's
portion of this pool is displayed on the statement of net position and balance sheet as cash and
investments. In addition, investments are separately held by several of the City's funds.
The City's cash and investments at year end were comprised of the following:
Carrying Statement Associated
Value Balances Risks
Petty cash and cash on hand $ 2,400 $ 2,400 N/A
Demand deposits 30,461,318 32,109,232
Custodial credit, credit,
concentration of credit,
U.S. instrumentalities 13,591,301 13,591,301 interest rate
Total Cash and Investments $ 44,055,019 $ 45,702,933
Deposits in each local and area bank are insured by the FDIC in the amount of $250,000 for time and
savings accounts (including NOW accounts) and $250,000 for demand deposit accounts (interest-bearing
and noninterest-bearing). In addition, if deposits are held in an institution outside of the state in which the
government is located, insured amounts are further limited to a total of $250,000 for the combined amount
of all deposit accounts.
The Securities Investor Protection Corporation (SIPC), created by the Securities Investor Protection Act of
1970, is an independent government-sponsored corporation (not an agency of the U.S. government).
SIPC membership provides account protection up to a maximum of $500,000 per customer, of which
$100,000 may be in cash.
Custodia/ Credit Risk
Deposits
Custodial credit risk is the risk that in the event of a financial institution failure, the City's deposits may not
be returned to the City.
The City maintains collateral agreements with its banks. At December 31, 2014, the banks had pledged
various government securities in the amount of $25,856, 192 to secure the City's deposits. The City has no
custodial credit risk in regards to deposits at December 31, 2014.
Investments
For an investment, custodial credit risk is the risk that, in the event of the failure of the counterparty, the
City will not be able to recover the value of its investments or collateral securities that are in the
possession of an outside party. The City does not have any investments exposed to custodial credit risk.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE IV-DETAILED NOTES ON ALL FUNDS (cont.)
A. DEPOSITS AND INVESTMENTS (cont.)
Credit Risk
Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations.
As of December 31, 2014, all of the City of Rosemount's investments were U.S. agency obligations which
received AAA ratings from Standard & Poor's and/or Moody's Investors Service, respectively.
Concentration of Credit Risk
Concentration of credit risk is the risk of loss attributed to the magnitude of the City's investment in
a single issuer.
As of December 31, 2014, all of the City of Rosemounl's investments were U.S. agency obligations. as
follows:
Issuer
Federal Home Loan Bank
Federal Home Loan Mortgage Corporation
Federal Farm Credit Bank
Federal National Mortgage Association
Treasury Notes
Interest Rate Risk
$
Fair Value
8,063,062
3,062,916
1,748,594
394,416
322,313
$ 13,591,301
Percentage of Total
59%
23%
13%
3%
2%
Interest rate risk is the risk that changes in interest rates will adversely affect the value of an investment.
As of December 31, 2014, the City of Rosemounl's investments were as follows:
Investment Maturities (in years)
More
Investment Type
Total Fair
Value
Less
than 1 ~ 6-10 than10
U.S. Agency Obligations s 13,591,301 s -s 1,502,131 s 12.08e,564 ... s ___ _
At December 31, 2014, the City held $9, 152,057 in U.S. Agency Obligations that are callable at increasing
stepped interest rates.
See Note l.D.1 for further information on deposit and investment policies.
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CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December31, 2014
NOTE IV -DETAILED NOTES ON ALL FUNDS (cont.)
8. RECENABLES
Receivable amounts not expected to be collected within one year are listed below:
Debt Capital
Governmental Activities General Service ___l!Qiects Totals
Amounts not expected to be collected
within one year $ • $ 820,632 ~.956 $ 1,333,588
Water Sewer Storm Water
Business-Type Activities Utili~ Ulil~ ~ Totals
Amounts not expected to be collected
within one year $ 52,483 $ 39,520 $ 318,114 $ 410,117
Governmental funds report unavailable or unearned revenue in connection with receivables for revenues
that are not considered to be available to liquidate liabilities of the current period. Governmental funds also
defer revenue recognition in connection with resources that have been received, but not yet earned. At
the end of the current fiscal year, the various components of unavailable revenue and unearned revenue
reported in the governmental funds were as follows:
Unavailable Unearned Totals
Delinquent property taxes receivable $ 71,655 $ . $ 71,655
Delinquent special assessments 7,451 . 7,451
Special assessments not yet due 3,095,464 392,551 3,488,015
Donations receivable for future projects 72,518 . 72,518
Total Deferred/Unearned Revenue
for Governmental Funds $ 3,247,088 $ 392,551 $ 3,639,639
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE IV -DETAILED NOTES ON ALL FUNDS (cont.)
C. CAPITAL ASSETS
Capital asset activity for the year ended December 31, 2014 was as follows:
Governmental Activities
Capital assets not being depreciated
Land
Land improvements
Construction in progress
Total Capital Assets
Not Being Depreciated
Capital assets being depreciated
Improvements
Buildings
Machinery and equipment
Infrastructure
Roads
Bridges
Parking lots
Beginning
Balance
$ 11,103,466 $
622,770
1,983,060
13,709,296
2,671,026
14,192,515
9,718,650
90,941
51,496,028
1,887,923
580,449
on "~7.532 Total Capital Assets Being Depreciated-----""'=
Less: Accumulated depreciation for
Improvements
Buildings
Machinery and equipment
Infrastructure
Roads
Bridges
Parking lots
Total Accumulated Depreciation
Net Capital Assets
Being Depreciated
Total Governmental Activities
Capital Assets, Net of
Accumulated Depreciation
(1,033,623)
(4,390,440)
(6,389,998)
(1,865)
(8,891,291)
(384,828)
(210,067)
(21,302,112)
59,335,420
$ 73,044,716 $
Depreciation expense was charged to functions as follows:
Governmental Activities
General government
Public safety
Additions
12,900 $
1,212,317
2,356,366
3,581,583
490,991
223,129
1,396,291
118,096
2,191,033
4 419,540
(118,407)
(285,181)
(576,980)
(2,055)
(858,089)
(47,198)
{14,850)
{1,902,760)
2,516,780
~$
Public works, which includes the depreciation of roads, bridges and parking lots
Leisure activities
T otai Governmental Activities Depreciation Expense
Deletions
Ending
Balance
2,113,239 $ 9,003,127
1,835,087
1,923,887 2,415,539
4,528.778
462,945
462,945
402,046
402,046
60,899
12,762,101
3,162,017
14,415,644
10,651,996
209,037
53,687,061
1,887,923
580,449
84,594,127
(1, 152,030)
(4,675,621)
(6,564,932)
(3,920)
(9,749,380)
(432,026)
(224,917)
{22,802,826)
61,791,301
~ $ 74,553,402
$ 194,273
293,371
1,166,602
248,514
$ 1,902,760
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CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE IV -DETAILED NOTES ON ALL FUNDS (cont.)
c. CAPITAi. ASSETS (cont.)
Beginning
Balance
Business-Type Activities
Capital assets not being depreciated
land $ 2,643,767 $
Construction in progress 1,519,915
Total Capital Assets
Not Being Depreciated 4,163,682
Capital assets being depreciated
Buildings 11,085,341
Machinery and equipment 3,299,133
Mains and lines 129,479,662
Total Capital Assets
Being Depreciated 143,864, 136
less: Accumulated depreciation for
Buildings (2,933,518)
Machinery and equipment (2,018,580)
Mains and lines !45,370,135)
Total Accumulated Depreciation !50,322,233)
Net Capital Assets
Being Depreciated 93,541,903
Total Business-Type
Capital Assets, Net of
Accumulated Depreciation $ 97. 705,585 $
Depreciation expense was charged to functions as follows:
Business-Type Activities
Water
Sewer
Storm water
Arena
Total Business-type Activities Depreciation Expense
Additions
8,000 $
3,695,050
3,703,050
426,656
1,975,467
2,402,123
(236,588)
(116,602)
p ,998,661)
!2,351,851)
50,272
3,753,322 $
Deletions
-$
1,864,499
1,864,499
222,074
222,074
222,074
222,074
1,864,499 $
$
Ending
Balance
2,651,767
3,350,466
6,002,233
11,085,341
3,503,715
131,455,129
146,044, 185
(3,170,106)
(1,913,108)
!47,368,796)
!52,452,010)
93,592,175
99,594,408
782,249
866,240
645,747
57,615
$ 2,351,851
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE IV-DETAILED NOTES ON ALL FUNDS (cont.)
0. INTERFUND RECEIVABl.Es/PAYABl.ES AND TRANSFERS
The following is a schedule of interfund receivable/advances as of December 31, 2014:
Receivable Fund
Sewer
Sewer
Subtotal -Fund financial statements
Less: Fund eliminations
Pavable Fund
BuildingCIP
Water
Total -Government-Wide Statement of Net Position
Am~
$ 85,103
35,460
120,563
(35,460)
$ 85,103
Amount Not
Due Within
One Year
$ 65,338
27,242
g2,580
(27,242)
$ 65,338
The principal purpose of these interfund loans was to finance the public works building expansion in
1999, and to purchase and renovate a building in the Downtown-Brockway Tax Increment Financing
District in 2005.
For the statement of net position, interfund balances which are owed within the governmental activities or
business-type activities are netted and eliminated.
The sewer fund advanced funds to the water fund and capital projects fund. The sewer fund is charging
the other funds interest on the advance based on the average outstanding advance balance during the
year at a rate of 5%. Following is a detailed repayment schedule for the sewer fund advance:
2015
2016
2017
2018
Total
$
$
Princil!al
27,972 $
29,370
30,839
32,382
120,563 $
Interest Totals -
6,028 $ 34,000
4,630 34,000
3,161 34,000
1 618 34,000
15,437 $ 136,000
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CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE IV -DETAILED NOTES ON ALL FUNDS (cont.)
o. INTERFUND RECEIVABLESIPAYABLES AND TRANSFERS (cont.)
The following is a schedule of interfund transfers:
Fund Transferred To
General
Debt Service
Capita! Projects
Enterprise
Storm Waler
Storm Water
Arena
Less: Fund eliminations
Fund Transferred From
Arena
Water
Sewer
Storm Water
Water
General
Water
Capital Projects
General
Less: Contributed plant reclassified to a transfer
in the government-wide statements
Total Transfers -Government-Wide
Statement of Activities
$
Amount Principal Purpose
3,500 Building and grounds
maintenance
200,000
1,152,551
187,908
4,796
360,000
152,000
24,617
115,000
2,200,372
(791,233)
(3,723,859)
Waler share of debt payment
Sewer share of project
Storm water share of project
Water share of project
Future improvements
Water share of debt payments
Share of capital project costs
Operating expenses
$ (2,314,720)
The contributed plant figure above includes a slight difference from the amount disclosed in the non-
cash section of the statement of cash flows due to final cost allocation adjustments for the various
capital projects.
Generally, transfers are used to (1) move revenues from the fund that collects them to the fund that the
budget requires to expend them, (2) move receipts restricted to debt service from the funds collecting the
receipts to the debt service fund, and (3) use unrestricted revenues collected in the general fund to
finance various programs accounted for In other funds in accordance with budgetary authorizations.
For the statement of activities, interfund transfers within the governmental activities or business-type
activities are netted and eliminated.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE IV -DETAILED NOTES ON ALL FUNDS (cont.)
E. LONG-TERM OBUGATIONS
Long-term obligations activity for the year ended December 31, 2014 was as follows:
Amounts
Beginning Ending DueWtthin
Balance Increases Decreases Balance One Year
GOVERNMENTAL ACTIVITIES
Bonds and Notes Payable
General obligation debt $ 15,295,000 $ 2,400,000 $ 1,580,000 $ 16,115,000 $ 1,845,000
Other Liabilities
Vested compensated absences 963,300 472,657 462,385 973,572 ~499
Total Governmental Activities
Long-Term Liabilities $ 16.~fil!,300 ~_2,872,65? $ _2,042,385 $ . 17,088,572 $ 2,312,499
BUSINESS-TYPE ACTIVITIES
Bonds and Notes Payable
General obligation debt $ 1,935,000 $ -$ 535,000 $ 1,400,000 $ 410,000
Other Liabilities:
Vested compensated absences 213,312 104,377 102,390 215,299 ~343
Total Business-type Activities
Long-Term Liabilities $ 2,148,312 $ 104,377 $ 637,390 $ 1,615,299 ~343
Genera/ Ob/lgaUon Debt
All general obligation notes and bonds payable are backed by the full faith and credit of the City. Notes and bonds in
the governmental funds will be retired by future property tax levles or tax increments accumulated by the debt
service fund. Business-type activities debt is payable by revenues from user fees of those funds or, if the revenues
are not sufficient, by future tax levies.
Governmental Activtties Date of Final Interest Original Balance
General Obligation Debt Issue Maturi!l-: Rates Indebtedness 12-31-14
Fire Station CIP Bonds, Series 2005A 2005 2025 3.5%to4.3% $ 2,630,000 $ 1,755,000
Fire Station Refunding Bonds, Series 20050 2005 2016 3.2%to3.8% 1,115,000 255,000
Improvement Bonds, Series 2006B 2006 2017 4.0% 4,405,000 1,365,000
Port Authority TIF. Series 2008A 2008 2024 5.0%to5.5% 2,765,000 2,545,000
Port Authority TIF, Serles 2008B 2008 2032 4.0%to4.1% 3.275,000 3,275,000
Crossover Refunding Bonds, Series 201 OB 2010 2022 1.2%to3.7% 1,355,000 1,105,000
Improvement Bonds, Series 2011A 2011 2017 0.45% to 1.35% 2,080,000 1,260,000
Improvement Bonds, Series 2012A 2012 2018 0.4% to 1.0% 810,000 655,000
Improvement Bonds, Series 2013A 2013 2019 0.5% to 1.65% 1,500,000 1,500,000
Improvement Bonds, Series 2014A 2014 2025 0.35% to 2.4% 2,400,000 ~000
Total Governmental Activities -General Obligation Debt $ 16,115,000
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CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE IV-DETAILED NOTES ON ALL FUNDS (cont.)
E. LONG-TERM 08LIGA710NS (cont.)
Getlflra/ Obl/9atlon Debt (cont.)
Business-type Activities Date of
General Obligation Debi Issue
Water Revenue Bonds, Series 2000A
Water Revenue Bonds, Series 2007 A
Utility Rev Refunding Bonds, Series 201 DA
2000
2007
2010
Final
Maturity
2016
2018
2018
Total Business-type Actlvtlies -General Obligation Debt
Debt service requirements to maturity are as follows:
Governmental Activities
General Obligation Debi
Interest
Rates
4.4%105.4%
4.0%
0.8% lo2.6%
Original Balance
Indebtedness 12-31-14
$ 1,160,000 $ 215,000
1,210,000 550,000
1.545,000 635,000
$ 1,400,000
Business-Type Activities
General Obligation Debi
Year Princil!al Interest Princif)a! Interest
2015 $ 1,845,000
2016 2.300.000
2017 2,250,000
2018 1,390,000
2019 1,260,000
2020-2024 3,545,000
2025-2029 2,185,000
2030-2032 1,340.000
Totals $ 16,115,000
Other Debt lnfonnetlon
$ 465,738
424,383
375,496
333,235
301.501
1,056,725
474,236
82,823
$ 3,516,136
$
$
410,000 $
425,000
315,000
250,000
39,921
25,625
13,343
4.265
~ $ 83,154
Estimated payments of compensated absences are not included in the debt service requirement
schedules. The compensated absences liability attributable to governmental activities will be liquidated
primarily by the general fund.
There are a number of limitations and restrictions contained in the various bond indentures and loan
agreements. The City believes it is in compliance with all significant limitations and restrictions, including
federal arbitrage regulations.
The water and storm water utilities have pledged future water and storm water revenues, net of specified
operating expenses, to repay revenue bonds issued in 2000, 2007, and 2010. Proceeds from bonds
provided financing for utility improvements. The bonds are payable solely from water and storm water
revenues and are payable through 2018. Annual principal and interest payments on the bonds are
expected to require 16% of net revenues. The total principal and interest remaining to be paid on the
bonds is $1,509, 123. Principal and interest paid for the current year and the gross customer revenues
were $588,940 and $4,103,375, respectively.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE IV-DETAILED NOTES ON ALL FUNDS (cont.)
F. NET PosmoNIFUND BALANCES
Net position reported on the government-wide statement of net position at December 31, 2014 includes
the following:
Governmental Activities
Net Investment in Capital Assets
Land
Construction in progress
Other capital assets, net of accumulated depreciation
Less: related long-term debt outstanding (excluding unspent
capital related debt proceeds)
Total Net Investment in Capital Assets
Restricted
Debt service
Future construction donations
Total Restricted
Unrestricted
Total Governmental Activities Net Position
$ 9,003,127
1,923,887
63,626,388
(16, 115,000)
58,438,402
4,699,348
1,988,610
6,687,958
20,924,090
$ 86,050,450
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1
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE IV -DETAILED NOTES ON ALL FUNDS (cont.)
F. NET PosmoNIFUND BALANCES (cont.)
Governmental AcUvities (cont.)
Governmental fund balances reported on the fund financial statements at December 31, 2014 include
the following:
Port
General Debt Capital Authority Nonmajor
Fund Service ProJects TIF Funds Totals
Fund Balances
Nonspendable:
Prepaid items 66,238 10,000 549 76,787
Restricted for:
Debt service 4,976,137 4,976,137
capital Projects 1,988,610 1,988,610
Port Authority TIF 1,021,730 1,021,730
Committed for:
Fire safety education 1,836 1,836
GIS 18,893 18,893
POr! authority -general 270,105 270,105
Assigned for:
Compensated absences 973,572 973,572
Armory debt payments 345.612 345,612
Health insurance 225,000 225,000
Building maintenance 67,834 67,834
Park maintenance 185,544 185,544
Election equipment 131,733 131,733
Various projects I equipment 879,499 5,656,185 6,535,684
BuildingCIP 849,652 849,652
StreetCIP 429,203 429,203
Equipment CIP 595,461 595,461
Unuslgned: 6,288,615 6,288.615
Total Fund Balances $ 9,163,847 $ 4,976,137 $ 9.329,111 $ 1,021,730 $ 291,363 $ 24,782,008
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE IV-DETAILED NOTES ON ALL FUNDS (cont.)
F. NET PosmoNIFUND BALANCES (cont.)
Business-Type Activities
Net Investment in Capital Assets
Land $ 2,651,767
3,350,466
93,592,175
Construction in progress
Other capital assets, net of accumulated depreciation
Less: related long-term debt outstanding (excluding unspent
capital related debt proceeds) (1,400,000)
98,194,408 Total Net Investment in Capital Assets
Unrestricted 19,348,437
Total Business-Type Activities Net Position $ 117,542,845
NOTE V -OTHER INFORMATION
A. EMPLOYEES' RETIREMENT SYSTEM
City employees and firefighters participate in the pension plans administered by the Public Employees
Retirement Association of Minnesota (PERA) and the Rosemount Volunteer Fire Relief Association. In
accordance with GASB Statement No. 27, the PERA plans are classified as multiple-employer, cosl-
sharing plans, and the Association's plan is classified as a single-employer plan.
1. Public Employees Retirement Association
a. Pian Description
All full-time and certain part-time employees of the City of Rosemount, Minnesota are covered
by defined benefit 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, mulliple-
employer retirement plans. These plans are established and administered in accordance with
Minnesota Statutes, Chapters 353 and 356.
GERF members belong lo either the Coordinated Plan or the Basic Plan. Coordinated Plan
members are covered by Social Security and Basic Plan members are not. All new members
must participate in the Coordinated Plan. All police officers, firefighters and peace officers
who qualify for membership by statute are covered by the PEPFF.
PERA provides retirement benefits as well as disability benefits to members, and benefits to
survivors upon death of eligible members. Benefits are established by state statute, and vest
after five years of credited service. The defined retirement benefits are based on a member's
highest average salary for any five successive years of allowable service, age, and years of
credit at termination of service.
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CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE V -OTHER INFORMATION
A. EMPLOYEES' RETIREMENT SYSTEM(cont.)
1. Publlc Employees Retirement Association (cont.)
a. Plan Description (cont.)
Two methods are used to compute benefits for PERA's Coordinated and Basic Plan
members. The retiring member receives the higher of a step-rate benefit accrual formula
(Method 1) or a level accrual formula (Method 2). Under Method 1, the annuity accrual rate for
a Basic Plan member is 2.2 percent of average salary for each of the first 10 years of service
and 2. 7 percent for each remaining year. The annuity accrual rate for Coordinated Plan
member is 1 .2 percent of average salary for each of the first 1 O years and 1. 7 percent for
each remaining year. Under Method 2, the annuity accrual rate is 2.7 percent of average
salary for Basic Plan members and 1. 7 percent for Coordinated Plan members for each year
of service. For PEPFF members, the annuity accrual rate is 3.0 percent for each year of
service. For all PEPFF members and for GERF members whose annuity is calculated using
Method 1, a full annuity is available when age plus years of service equal 90. A reduced
retirement annuity is also available to eligible members seeking early retirement.
There are different types of annuities available to members upon retirement. A single-life
annuity is a lifetime annuity that ceases upon the death of the retiree -no survivor annuity is
payable. There are also various types of joint and survivor annuity options available which will
be payable over joint lives. Members may also leave their contributions in the fund upon
termination of public service in order to qualify for a deferred annuity at retirement age.
Refunds of contributions are available at any time to members who leave public service, but
before retirement benefits begin.
The benefit provisions stated in the previous paragraphs of this section are current provisions
and apply to active plan participants.
PERA issues a publicly available financial report that includes financial statements and
required supplementary information for GERF and PEPFF. That report may be obtained on
the Internet at www.mnoera.org, by writing to PERA at 60 Empire Drive #200, St. Paul,
Minnesota, 55103-2088 or by calling (651 ) 296-7 460 or 1-800-652-go26.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE V-OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
1. Publlc Employees Retirement Association (cont.)
b. Funding Policy
Minnesota Statutes Chapter 353 sets the rates for employer and employee contributions.
These statutes are established and amended by the state legislature. The City makes annual
contributions to the pension plans equal to the amount required by state statutes. GERF Basic
Plan members and Coordinated Plan members were required to contribute 9.1% and 6.25%,
respectively, of their annual covered salary in 2014. PEPFF members were required to
contribute 10.2% of their annual covered salary in 2014. In 2014, the City of Rosemount was
required to contribute the following percentages of annual covered payroll: 11.78% for Basic
Plan members, 7.25% for Coordinated Plan members, and 15.3% for PEPFF members. The
City's contributions to the GERF for the years ending December 31, 2014, 2013 and 2012
were $264,550, $259,654 and $251,921, respectively. The City's contributions to the PEPFF
for the years ending December 31, 2014, 2013 and 2012 were $303,908, $275,788 and
$272,834, respectively. The City's contributions were equal to the contractually required
contributions for each year as set by state statute. Contribution rates will increase on January
1, 2015 in the Coordinated Plan (6.5% for members and 7.5% for employers) and the Police
and Fire Fund (10.8% for members and 16.2% for employers).
2. Rosemount Fire Department Relief Association-Defined Benefit Pension Plan
a. Plan Description
The City of Rosemount contributes to the Rosemount Fire Department Relief Association
Pension Plan; a single-employer retirement system administered by the Rosemount Fire
Department Relief Association. The Rosemount Fire Department Relief Association provides
a lump-sum benefit to its members upon retirement, total disability or death. These benefit
provisions are established and can be amended by the Rosemount Fire Department Relief
Association's Board of Trustees with approval by the Rosemount City Council. The
Rosemount Fire Department Relief Association issues a publicly available financial report that
includes financial statements and required supplementary information for the Rosemount Fire
Department Relief Association Pension Plan. That report may be obtained by writing to City of
Rosemount, 2875 1451" Street West, Rosemount, Minnesota 55068-4997, or by calling (651)
423-4411.
b. Funding Policy
The contribution requirements are established and may be amended by the Minnesota State
Legislature. The Rosemount Fire Department Relief 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 percent after
1 O years of service, increasing 4 percent for each year of service after 1 O years to a
maximum of 100 percent. Members retiring before 50 do not receive distributions until age 50,
but interest at 5% per year is added to their retirement benefit until paid.
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CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE V-OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
2. Rosemount Fire Department Relief Association-Defined Benefit Pension Plan (cont.)
c. Annual Pension Cost and Net Pension Obligations
Financial requirements of the Association are determined based on a formula prescribed in
Minnesota Statues 69.772. Those statutes prescribe a set amount offunding, per $100 of
lump-sum benefits payable per year of service. For associations with assets exceeding the
statutory pension liability, the financial requirements shall be the increase in the statutory
pension liability for the next year over the current year, reduced by an amount equal to one-
tenth of the surplus. For associations with a deficit of assets to fund the statutory pension
liability, the financial requirements shall be the increase in the statutory pension liability for
the next year over the current year, Increased by an amount equal to one-tenth the deficit.
The City's minimum obligation is the financial requirement for the year less anticipated state
aids and interest on investments calculated at a rate of 5 percent. The value of assets was
determined using fair value. Securities traded on national exchanges are valued at the last
reported sales price. Investments that do not have an established market value are reported
at estimated fair value.
The annual pension cost for the Rosemount Fire Department Relief Association Pension Plan
for the year ended December 31, 2014 was as follows:
State of Minnesota contribution
City of Rosemount contribution
$
$
Amount
125,594
171,000
296,594
The City recognizes the State of Minnesota's contributions to the Rosemount Fire Department
Relief Association Pension Plan as revenue and expense.
Three Year Trend Information
Percentage
Fiscal Year Annual Pension ofAPC Net Pension
Ending Cost(APC) Contribution ~!ion
2014 $ 296,594 100.0% $ 0
2013 296,632 100.0% 0
2012 262,845 100.0% 0
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE v -OTHER INFORMATION (cont.)
A. EMPLOYEES' RETIREMENT SYSTEM (cont.)
2. Rosemount Fire Department Relief Association-Defined Benefit Pension Plan (cont.)
d. Required Supplementary Information, Schedule of Funding Progress
Ten-year historical trend information is presented in the Rosemount Firefighters Relief
Association's Annual Financial Report. This information is useful in assessing the pension
plan's accumulation of sufficient assets to pay pension benefrts as they become due.
The following historical trend information was obtained from the Association's financial report
for the year ended December 31, 2014:
Assets as a Overfunded
Percentage of (Underfunded)
Accrued Accrued Accrued
Date Assets Liabilities Liabilities Liabilities
12-31-14 $ 3,348,776 $ 2,609,887 128% $ 738,889
12-31-13 2,874,130 2,468,808 116% 405,322
12-31-12 2,504,97g 2,523,870 99% (18,891)
Computations of the unfunded net pension obligation and employer contributions as a percent
of covered payroll are not applicable since the fire department is a volunteer organization and
no covered payroll exists. The accrued liabilities were determined pursuant to state statutes.
Significant assumptions include: the entry age normal actuarial cost method was used to
determine the normal cost of all benefits, level dollar amortization method, the rate of
investment return used in making the valuation was 5% per annum compounded annually,
age and service at retirement was assumed to occur at age 50, no turnover or early
retirements, projected salary increases and inflationary increases do not apply, no
postretirement benefit increases, and the amortization period is 20 years for normal cost and
10 years for prior service cost. The equivalent single amortization period was not made
available.
e. Related Party Transactions
As of December 31, 2014 and for the year then ended, the Association held no securities
issued by City or other related parties.
8. RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, or destruction of assets;
errors and omissions; workers compensation; and health care of its employees. The City purchases
commercial insurance and participates in a public entity risk pool called the Minnesota League of Cities
Insurance Trust to provide coverage for these various risks of loss. Settled claims have not exceeded
coverage in any of the past three years. There were no significant reductions in coverage compared to the
prior year.
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CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE V-OTHER INFORMATION (cont.)
B. RISK MANAGEMENT(cont.)
The City has established an internal service fund (Insurance Fund) to account for and finance uninsured
risks of loss related to torts, theft of, damage to and destruction of assets, including deductibles. The
majority of the City's general liability and workers compensation insurance premiums are paid for by this
fund. At December 31, 2014, there are no claims liabilities in the Insurance Fund based on the
requirements of Governmental Accounting Standards Board Statement Number 10, which requires that a
liability for claims be reported if information prior to the issuance of the financial statements indicates that
it is probable a liability has been incurred at the date of the financial statements and the amount of loss
can be reasonably estimated.
C. COMMITllENTS AND CONTINGENCIES
Claims and judgments are recorded as liabilities if all the conditions of Governmental Accounting
Standards Board pronouncements are met. The liability and expenditure for claims and judgments are
only reported in governmental funds if it has matured. Claims and judgments are recorded in the
government-wide statements and proprietary funds as expenses when the related liabilities are incurred.
From time to time, the City is party to various pending claims and legal proceedings. Although the
outcome of such matters cannot be forecasted with certainty, it is the opinion of management and the City
attorney that the likelihood is remote that any such claims or proceedings will have a material adverse
effect on the City's financial position or results of operations.
The City has received federal and state grants for specific purposes that are subject to review and audit by
the grantor agencies. Such audits could lead to requests for reimbursements to the grantor agency for
expenditures disallowed under terms of the grants. Management believes such disallowances, if any,
would be immaterial.
The City has active construction projects as of December 31, 2014. Work that has been completed on
these projects but not yet paid for (including contract relainages) is reflected as accounts payable and
expenditures.
In 2007, the City committed to a municipal revenue obligation as part of a development agreement with
146'" Street Partners, Limited Partnership. The amount of the obligation is $1,500,000, and is payable to
the developer solely from available lax increments collected from a specific portion of the development.
Payments are scheduled through the year 2032, and carry an interest rate of 4.96%. The obligation does
not constitute a charge upon any funds of the city. In the event that future tax Increments are not sufficient
to pay off the obligation, the obligation terminates with no further liability to the city. Since the amount of
future payments Is contingent on the collection of future TIF increments, the obligation is not reported as a
liability in the accompanying financial statements. The balance of the commitment outstanding at year end
has not been determined.
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
As of and for the Year Ended December 31, 2014
NOTE V-OTHER INFORMATION (cont.)
D. RELATED ORGANIZATION
The City entered into an agreement with SKB Environmental, Inc. for the purpose of providing for the
construction and maintenance of facilities for public recreation, to improve living and working conditions
within the City, further public educational opportunities, and to provide for the charitable needs of the City.
This agreement created a trust called the City of Rosemount -SKB Environmental Trust Fund. Beginning
in 2011, the amount of distributions to the City would be equal to the excess of the trust value over
$1,525,000. The trust agreement states the funds can be used by the City for any lawful public purpose.
During 2014, the trust was liquidated and the City received a total of $1,588,610. In addition, SKB
Environmental, Inc. donated $400,000 to the City to be used toward the Rosemount Activity Center
project.
E. EFFECT OF NEW ACCOUNTING STANDARDS ON CURRENT-PERIOD FINANCIAL STATEMENTS
The Governmental Accounting Standards Board (GASS) has approved the following:
> Statement No. 68, Accounting and Financial Reporting for Pensions -en amendment of GASB
Statement No. 27
> Statement No. 71, Pension -Transition for Contributions Made Subsequent to the Measurement
Date -an amendment of GASB No. 68
When they become effective, application of these standards may restate portions of these financial
statements.
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CITY OF ROSEMOUNT CITY OF ROSEMOUNT
REQUIRED SUPPLEMENTARY INFORMATION REQUIRED SUPPLEMENTARY INFORMATION
GENERAL FUND GENERAL FUND
SCHEDULE OF REVENUES COMPARED TO BUDGET (BUDGETARY BASIS) -BUDGET AND ACTUAL SCHEDULE OF EXPENDITURES AND OTHER USES (BUDGETARY BASIS)-BUDGET AND ACTUAL
For the Year Ended December 31, 2014 For the Year Ended December 31, 2014
Budgeted Amounts Variance with Budgeted Amounts Variance with
REVENUES Original Final Actual Final Budget CURRENT EXPENDITURES Original Final Actual Final Budget
TAXES GENERAL GOVERNMENT
General property tax $ 7,480,265 $ 7,480.265 $ 7,550,917 $ 70,652 Mayor and council $ 346,200 $ 346,200 $ 740,961 $ (394,761)
Fiscal disparities 1,208,535 1,208,535 1,208,535 Executive 502,000 502,000 482,980 19,020
Other 280,000 280,000 300.682 20.682 Elections 40,000 40,000 27.562 12.438
Total Taxes 8,968,800 8,968,800 ~.060,134 91.334 Finance 464,800 464,800 460,919 3,881
Community development 929.300 929,300 894,997 34,303
INTERGOVERNMENTAL REVENUES General government 374,200 374,200 348.418 25,782
State aid -police 150,000 150,000 160,347 10,347
TOTAL GENERAL GOVERNMENT 2,656,500 2,656,500 2,955,837 (299,337) State aid -general government 30,000 30,000 58,620 28,620
State aid -highway 32,600 32,600 32,790 190 PUBLIC SAFETY Other 88,200 88,200 90,401 2.201
Total Intergovernmental Revenues 300,800 300,800 342,158 41,358 Police department 3,352,042 3,358,109 3,334,014 24,095
Fire department 434,958 443,670 433,812 ___ 9_,858
PUBLIC CHARGES FOR SERVICES
General government 792,900 792,900 947,615 154,715 TOTAL PUBLIC SAFETY 3,787,000 3,801,779 3,767,826 ~953
Public safety 37,400 37.400 30,589 (6,811)
Highways and streets 16,000 16,000 57,108 41,108 PUBLIC WORKS
Parks and recreation 247.800 247,800 215,980 (31,820) Government building maintenance 555,200 555,200 513,951 41,249
SAC 2,000 2,000 2,309 309 Fleet maintenance 675,500 675,500 625,398 50,102
Total Charges for Services 1,096,100 1,096,100 1,253,601 157,501 Street maintenance 1,348,300 1,348,300 1,302.271 46,029
Park maintenance 833.400 833,400 793,855 ~545
LICENSES AND PERMITS
Business 57,000 57,000 57,185 185 TOT AL PUBLIC WORKS 3,412,400 3.412,400 3,235.475 176,925
Non-business 381,300 381,300 673,580 292,280
Total Licenses and Permits 438,300 438,300 730,765 292.465 PARKS AND RECREATION 1,307,700 1,321,677 1,304,867 ___ 16_,810
FINES AND FORFEITURES
County 125,000 125,000 116,384 (8,616) OTHER FINANCING USES
Transfers out 11:1000 115000 475000 (360.000)
SPECIAL ASSESSMENTS 1,000 1,000 4,652 3,652
INVESTMENT INCOME AND MISCELLANEOUS TOTAL EXPENDITURES $ 11,278,600 $ 11,307 ,356 11,739,005 $ (431,649)
Interest earnings 85,500 85,500 176,321 90,821
Beginning of year budget basis encumbrances 1.273,464 Change in fair value of investments 231,871 231,871
Miscellaneous general revenues 57,600 57,600 50,045 (7,555)
End of year budget basis encumbrances (1,794,607) Donations 28,756 28,756
Rents ~2000 22,000 22171 171 GAAP basis expenditures and other financing uses $ 11,217.862
Total Investment income and miscellaneous 165,100 193.856 509,164 315,308
Total Revenues 11,095,100 11.123.856 12,016,858 ~002
OTHER FINANCING SOURCES
Transfers in 3,500 3,500 3,500 ----
Total Revenues and Other Financing Sources $ 11,098,600 $ 11,127.358 $ 12,020,358 $ 893,002
See auditors' report and accompanying notes to required supplementary information.
See auditors' report and accompanying notes to required supplementary information.
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6
CITY OF ROSEMOUNT
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
As of and for the Year Ended December 31, 2014
Budgetary Information
Budgetary information is derived from the annual operating budget and is presented using generally
accepted accounting principles and the modified accrual basis of accounting with departures from
generally accepted accounting principles for encumbrances.
Excess expenditures over appropriations are as follows:
General Fund
Final
Budget Expenditures Excess
Mayor and council $ 256,200 $ 740,961 $ 484,761
Rosemount Fire Department Relief Association-Defined Benefit Pension Plan
Required Supplementary Information, Schedule of Funding Progress
The following historical trend information was obtained from the Association's financial report
for the year ended December 31, 2014.
Assets as a Overfunded
Percentage of (Underfunded)
Accrued Accrued Accrued
Date Assets Liabilities Liabilities Liabilities
12-31-14 $ 3,348,776 $ 2,609,887 128% $ 738,889
12-31-13 2,874,130 2,468,808 116% 405,322
12-31-12 2,504,979 2,523,870 99% (18,891)
Computations of the unfunded net pension obligation and employer contributions as a percent
of covered payroll are not applicable since the fire department is a volunteer organization and
no covered payroll exists.
See auditors' report
IV-27
PROPOSAL SALE DATE: October 20, 2015
________________________________ Phone: 651-223-3000
* Preliminary; subject to change. Fax: 651-223-3046
Email: bond_services@springsted.com
Website: www.springsted.com
City of Rosemount, Minnesota
$1,525,000* General 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.
Year
Interest
Rate (%)
Yield (%)
Dollar
Price
Year
Interest
Rate (%)
Yield (%)
Dollar
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, 2015 including the City’s right to modify the principal amount of the
Series 2015A City Bonds. (See “Terms of Proposal” herein.) In the event of failure to deliver these Series 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 fro m .
Account Members
______________________________
Account Manager
By: ___________________________
Phone: ________________________
...........................................................................................................................................................................................................................
The foregoing proposal has been accepted by the City.
Attest: _______________________________ Date: ________________________________
...........................................................................................................................................................................................................................
PROPOSAL SALE DATE: October 20, 2015
________________________________ Phone: 651-223-3000
* Preliminary; subject to change. Fax: 651-223-3046
Email: bond_services@springsted.com
Website: www.springsted.com
City of Rosemount, Minnesota
$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.
Year
Interest
Rate (%)
Yield (%)
Dollar
Price
Year
Interest
Rate (%)
Yield (%)
Dollar
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 30, 2015 including the City’s right to modify the principal amount of the
Series 2015B City Bonds. (See “Terms of Proposal” herein.) In the event of failure to deliver these Series 2015B City Bonds in
accordance with said Terms of Proposal, we reserve the right to withdraw our offer, whereupon the deposit accompanying i t 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: ________________________________
...........................................................................................................................................................................................................................
PROPOSAL SALE DATE: October 20, 2015
________________________________ Phone: 651-223-3000
* Preliminary; subject to change. Fax: 651-223-3046
Email: bond_services@springsted.com
Website: www.springsted.com
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 offe r a price of
$_________________ (which may not be less than $3,420,210) plus accrued interest, if any, to the date of delivery.
Year
Interest
Rate (%)
Yield (%)
Dollar
Price
Year
Interest
Rate (%)
Yield (%)
Dollar
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 30, 2015 including the Authority’s right to modify the principal amount of the
Authority Bonds. (See “Terms of Proposal” herein.) In the event of failure to deliver these Authority Bonds in accordance w 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: ________________________________
...........................................................................................................................................................................................................................