HomeMy WebLinkAbout7.a. Accept Bids and Award Sale - G.O. Water Revenue Bonds, Series 2005CAGENDA ITEM: Accept Bids and Award Sale G.O.
Water Revenue Bonds, Series 2005C
AGENDA SECTION:
Old Business
PREPARED BY: Jeff May, Finance Director
AGWENT. 07 A
ATTACHMENTS: Resolution and Official Statement
APPROVED BY:
RECOMMENDED ACTION: Motion to adopt a RESOLUTION ACCEPTING O ER ON
SALE OF $2,990,000 GENERAL OBLIGATION WATER REVENUE BONDS, SERIES
2005C AND PROVIDING FOR THEIR ISSUANCE.
ACTION:
City Council Meeting Date: October 4, 2005
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
ISSUE Accept bids and award sale of Water Revenue bonds for the construction
of Water Tower #4.
BACKGROUND This item is on the agenda for Council to formally award the sale of
bonds for the Water Tower #4. At 12:00 P.M. Tuesday, October 4, 2005, sealed bids for
G.O. Water Revenue Bonds, Series 2005C, will be opened and the results tabulated at the
offices of Springsted, our financial consultants 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.
Because the bid opening is not until earlier in the day Tuesday, you will receive information
regarding the bids at the meeting that evening.
SUMMARY
Recommend the above motion.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2005
RESOLUTION ACCEPTING OFFER ON SALE OF
$2,990,000 GENERAL OBLIGATION
WATER REVENUE BONDS, SERIES 2005C
AND PROVIDING FOR THEIR ISSUANCE
RESOLUTION 2005
WHEREAS, the City Council of the City of Rosemount, Minnesota (the "City has heretofore
determined that it is necessary and expedient to issue $2,990,000 General Obligation Water
Revenue Bonds, Series 2005C of the City, pursuant to Minnesota Statutes, Chapters 444 and 475
to finance the acquisition and construction of a water tower within the City (the "Project
WHEREAS, offers to purchase the Bonds were solicited on behalf of the City by Springsted
Incorporated; and
WHEREAS, it is in the best interests of the City that the Bonds be issued in book -entry form as
hereinafter provided; and
WHEREAS, the City has retained Spnngsted Incorporated, in St. Paul, Minnesota
"Spnngsted as its independent financial advisor for the sale of the Bonds and is therefore
authonzed to sell the Bonds by private negotiation in accordance with Minnesota Statutes,
Section 475.60, Subdivision 2(9), and
WHEREAS, the following offers were received, opened and recorded at the offices of
Spnngsted Incorporated at 12:00 Noon, this same day:
1810104v!
Bidder
Interest Rate Net Interest Cost
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Rosemount,
Minnesota, as follows:
1. Acceptance of Offer. The offer of (the
"Purchaser to purchase $2,990,000 General Obligation Water Revenue Bonds, Series 2005C of
the City (hereinafter referred to as the "Bonds" or individually as a "Bond in accordance with
the Terms of Proposal at the rates of interest hereinafter set forth, and to pay therefor the sum of
plus interest accrued to settlement, is hereby found, determined and declared to be
the most favorable offer received and is hereby accepted and the Bonds are hereby awarded to
said Purchaser. The Finance Director is directed to retain the deposit of said purchaser and to
forthwith return to the other making offers their good faith checks or drafts.
RESOLUTION 2005
2. Terms of Bonds.
(a) Title; Original Issue Date; Denominations; Maturities; Term Bond Option The Bonds
shall be titled "General Obligation Water Revenue Bonds, Series 2005C shall be dated
November 1, 2005, as the date of original issue and shall be issued forthwith on or after such
date as fully registered bonds. The Bonds shall be numbered from R -1 upward in the
denomination of $5,000 each or in any integral multiple thereof of a single maturity, The Bonds
shall mature on February 1 in the years and amounts as follows:
Year Amount Year Amount
2007 $235,000 2012 $305,000
2008 270,000 2013 315,000
2009 275,000 2014 325,000
2010 285,000 2015 335,000
2011 295,000 2016 350,000
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 pnncipal
repayment schedule, and corresponding additions may be made to the provisions of the
applicable Bond(s).
(b) Book Entry Only System. The Depository Trust Company, a limited purpose trust
company organized under the laws of the State of New York or any of its successors or
successors to its functions hereunder (the "Depository") will act as secunties depository for the
Bonds, and to this end:
(i) The Bonds shall be initially issued and, so long as they remain in book entry form only
(the "Book Entry Only Period shall at all times be in the form of a separate single fully
registered Bond for each matunty of the Bonds; and for purposes of complying with this
requirement under paragraphs 5 (with respect to redemption) and 10 (with respect to registration,
transfer and exchange) Authorized Denominations for any Bond shall be deemed to be limited
during the Book Entry Only Period to the outstanding principal amount of that Bond.
(ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond register
maintained by U.S. Bank National Association in Saint Paul, Minnesota (the "Bond Registrar
in the name of CEDE CO., as the nominee (it or any nominee of the existing or a successor
Depository, the "Nominee
(iii) With respect to the Bonds neither the City nor the Bond Registrar shall have any
responsibility or obligation to any broker, dealer, bank, or any other financial institution for
which the Depository holds Bonds as securities depository (the "Participant or the person for
which a Participant holds an interest in the Bonds shown on the books and records of the
Participant (the "Beneficial Owner Without limiting the immediately preceding sentence,
neither the City, nor the Bond Registrar, shall have any such responsibility or obligation with
respect to (A) the accuracy of the records of the Depository, the Nominee or any Participant with
respect to any ownership interest in the Bonds, or (B) the delivery to any Participant, any Owner
1810104v1 2
18101041 3
RESOLUTION 2005
or any other person, other than the Depository, of any notice with respect to the Bonds, including
any notice of redemption, or (C) the payment to any Participant, any Beneficial Owner or any
other person, other than the Depository, of any amount with respect to the principal of or
premium, if any, or interest on the Bonds, or (D) the consent given or other action taken by the
Depository as the Register Holder of any Bonds (the "Holder For purposes of securing the
vote or consent of any Holder under this Resolution, the City may, however, rely upon an
omnibus proxy under which the Depository assigns its consenting or voting rights to certain
Participants to whose accounts the Bonds are credited on the record date identified in a listing
attached to the omnibus proxy.
(iv) The City and the Bond Registrar may treat as and deem the Depository to be the absolute
owner of the Bonds for the purpose of payment of the principal of and premium, if any, and
interest on the Bonds, for the purpose of giving notices of redemption and other matters with
respect to the Bonds, for the purpose of obtaining any consent or other action to be taken by
Holders for the purpose of registering transfers with respect to such Bonds, and for all purpose
whatsoever. The Bond Registrar, as paying agent hereunder, shall pay all pnncipal of and
premium, if any, and interest on the Bonds only to or upon the Holder of the Holders of the
Bonds as shown on the register, and all such payments shall be valid and effective to fully satisfy
and discharge the City's obligations with respect to the principal of and premium, if any, and
interest on the Bonds to the extent of the sum or sums so paid.
(v) Upon delivery by the Depository to the Bond Registrar of written notice to the effect that
the Depository has determined to substitute a new Nominee in place of the existing Nominee,
and subject to the transfer provisions in paragraph 10 hereof (with respect to registration, transfer
and exchange), references to the Nominee hereunder shall refer to such new Nominee.
(vi) So long as any Bond is registered in the name of a Nominee, all payments with respect to
the principal of and premium, if any, and interest on such Bond and all notices with respect to
such Bond shall be made and given, respectively, by the Bond Registrar or City, as the case may
be, to the Depository as provided in the Letter of Representations, to the Depository required by
the Depository as a condition to its acting as book -entry Depository for the Bonds (said Letter of
Representations, together with any replacement thereof or amendment or substitute thereto,
including any standard procedures or policies referenced therein or applicable thereto respecting
the procedures and other matters relating to the Depository's role as book -entry Depository for
the Bonds, collectively hereinafter referred to as the "Letter of Representations
(vii) All transfers of beneficial ownership interests in each Bond issued in book -entry form
shall be limited in principal amount to Authorized Denominations and shall be effected by
procedures by the Depository with the Participants for recording and transferring the ownership
of beneficial interests in such Bonds.
(viii) In connection with any notice or other communication to be provided to the Holders
pursuant to this Resolution by the City or Bond Registrar with respect to any consent or other
action to be taken by Holders, the Depository shall consider the date of receipt of notice
requesting such consent or other action as the record date for such consent or other action;
provided, that the City or the Bond Registrar may establish a special record date for such consent
or other action The City or the Bond Registrar shall, to the extent possible, give the Depository
RESOLUTION 2005
notice of such special record date not less than 15 calendar days in advance of such special
record date to the extent possible
(ix) Any successor Bond Registrar in its written acceptance of its duties under this Resolution
and any paying agency registrar agreement, shall agree to take any actions necessary from time
to time to comply with the requirements of the Letter of Representations.
(x) In the case of a partial prepayment of a Bond, the Holder may, in lieu of surrendering the
Bonds for a Bond of a lesser denomination as provided in paragraph 5 hereof (with respect to
redemption), make a notation of the reduction in principal amount on the panel provided on the
Bond stating the amount so redeemed.
(c) Termination of Book -Entry Only System. Discontinuance of a particular Depository's
services and termination of the book -entry only system may be effected as follows:
(i) The Depository may determine to discontinue providing its services with respect to the
Bonds at any time by giving written notice to the City and discharging its responsibilities with
respect thereto under applicable law. The City may terminate the services of the Depository with
respect to the Bond if it determines that the Depository is no longer able to carry out its functions
as securities depository or the continuation of the system of book -entry transfers through the
Depository is not in the best interests of the City or the Beneficial Owners.
(ii) Upon termination of the services of the Depository as provided in the preceding
paragraph, and if no substitute securities depository is willing to undertake the functions of the
Depository hereunder can be found which, in the opinion of the City, is willing and able to
assume such functions upon reasonable or customary terms, or if the City determines that it is in
the best interests of the City or the Beneficial Owners of the Bond that the Beneficial Owners be
able to obtain certificates for the Bonds, the Bonds shall no longer be registered as being
registered in the bond register in the name of the Nominee, but may be registered in whatever
name or names the Holder of the Bonds shall designate at that time, in accordance with
paragraph 10 hereof (with respect to registration, transfer and exchange). To the extent that the
Beneficial Owners are designated as the transferee by the Holders, in accordance with paragraph
10 hereof (with respect to registration, transfer and exchange), the Bonds will be delivered to the
Beneficial Owners.
(iii) Nothing in this subparagraph (c) shall limit or restnct the provisions of paragraph 10
hereof (with respect to registration, transfer and exchange).
(d) Letter of Representations. The provisions in the Letter of Representations are
incorporated herein by referenced and made a part of the resolution, and if and to the extent any
such provisions are inconsistent with the other provisions of this resolution, the provisions in the
Letter of Representations shall control.
3. Purpose. The Bonds shall provide funds to finance the acquisition and construction of a
water tower within the City (the "Project The total cost of the Project, which shall include all
costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the
amount of the Bonds. Work on the Project shall proceed with due diligence to completion.
1810104vI 4
RESOLUTION 2005
4. Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1
of each year commencing August 1, 2006, calculated on the basis of a 360 -day year of twelve
30 -day months, at the respective rates per annum set forth opposite the matunty years as follows:
Maturity Interest Maturity Interest
Year Rate Year Rate
2007 2012
2008 2013
2009 2014
2010 2015
2011 2016
5. Redemption. All Bonds maturing in the years 2014 through 2016, both inclusive, shall
be subject to redemption and prepayment at the option of the City on February 1, 2013, and on
any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part
of the Bonds subject to prepayment. If redemption is in part, the City shall determine the
matunties and pnncipal amounts within each maturity to be prepaid; and if only part of the
Bonds having a common maturity date are called for prepayment, the specific Bonds to be
prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for
redemption shall be due and payable on the redemption date, and interest thereon shall cease to
accrue from and after the redemption date. Mailed notice of redemption shall be given to the
paying agent and to each affected registered holder of the Bonds.
To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar
prior to giving notice of redemption shall assign to each Bond having a common maturity date a
distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar
shall then select by lot, using such method of selection as it shall deem proper in its discretion,
from the numbers so assigned to such Bonds, as many numbers as, at $5,000 for each number,
shall equal the pnncipal amount of such Bonds to be redeemed. The Bonds to he redeemed shall
be the Bonds to which were assigned numbers so selected; provided, however, that only so much
of the principal amount of each such Bond of a denomination of more than $5,000 shall be
redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be
redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond
Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond
Registrar duly executed by the holder thereof or his, her or its attorney duly authorized in
writing) and the City shall execute (if necessary) and the Bond Registrar shall authenticate and
deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same
series having the same stated matunty and interest rate and of any authonzed denomination or
denominations, as requested by such Holder, in aggregate pnncipal amount equal to and in
exchange for the unredeemed portion of the principal of the Bond so surrendered
6. Bond Registrar. U.S Bank National Association in Saint Paul, Minnesota, is appointed
to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar and
shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any
contract the City and Bond Registrar shall execute which is consistent herewith. The Bond
1810104v1 5
Registrar shall also serve as paying agent unless and until a successor paying agent is duly
appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record
holder) of the Bonds in the manner set forth in the form of Bond and paragraph 12 of this
resolution (with respect to interest payment and record date).
7. Form of Bond. The Bonds to be issued hereunder, together with the Bond Registrar's
Certificate of Authentication, the form of Assignment and the registration information thereon,
shall be in substantially the following form:
1810104v1 6
RESOLUTION 2005
R-
REGISTERED OWNER: CEDE CO.
isimoavi 7
UNITED STATES OF AMERICA
STATE OF MINNESOTA
DAKOTA COUNTY
CITY OF ROSEMOUNT
GENERAL OBLIGATION
WATER REVENUE BOND, SERIES 2005C
November 1, 2005
RESOLUTION 2005
PRINCIPAL AMOUNT: DOLLARS
INTEREST MATURITY DATE OF
RATE DATE ORIGINAL ISSUE CUSIP
KNOW ALL PERSONS BY THESE PRESENTS that the City of Rosemount, Dakota County,
Minnesota (the "Issuer certifies that it is indebted and for value received promises to pay to the
registered owner specified above, or registered assigns, in the manner hereinafter set forth, the
principal amount specified above, on the maturity date specified above unless called for earlier
redemption, and to pay interest thereon semiannually on February 1 and August 1 of each year
(each, an "Interest Payment Date commencing August 1, 2006, at the rate per annum specified
above (calculated on the basis of a 360 -day year of twelve 30 -day months) until the principal
sum is paid or has been provided for. This Bond will bear interest from the most recent Interest
Payment Date to which interest has been paid or, if no interest has been paid, from the date of
onginal issue hereof. The principal of and premium, if any, on this Bond are payable upon
presentation and surrender hereof at the principal office of the U.S. Bank National Association in
Saint Paul, Minnesota (the "Bond Registrar acting as paying agent, or any successor paying
agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment
Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder"
or "Bondholder on the registration books of the Issuer maintained by the Bond Registrar and at
the address appearing thereon at the close of business on the fifteenth day of the calendar month
next preceding such Interest Payment Date (the "Regular Record Date Any interest not so
timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular
Record Date, and shall be payable to the person who is the Holder hereof at the close of business
on a date (the "Special Record Date fixed by the Bond Registrar whenever money becomes
available for payment of the defaulted interest. Notice of the Special Record Date shall be given
to Bondholders not less than ten days prior to the Special Record Date. The principal of and
premium, if any, and interest on this Bond are payable in lawful money of the United States of
America So long as this Bond is registered in the name of the Depository or its Nominee as
provided in the Resolution hereinafter described, and as those terms are defined therein, payment
of pnncipal of and interest on this Bond and notice with respect thereto shall be made as
RESOLUTION 2005
provided in the Letter of Representations, as defined in the Resolution. Bonds may only be
registered in the name of the Depository or its Nominee.
Redemption. All Bonds of this issue (the "Bonds") maturing in the years 2014 through 2016,
both inclusive, are subject to redemption and prepayment at the option of the Issuer on
February 1, 2013, and on any date thereafter at a price of par plus accrued interest. Redemption
may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the City
shall determine the maturities and principal amount within each maturity to be prepaid; and if
only part of the Bonds having a common maturity date are called for prepayment, the specific
Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof'
called for redemption shall be due and payable on the redemption date, and interest thereon shall
cease to accrue from and after the redemption date. Mailed notice of redemption shall be given
to the paying agent and to each affected Holder of the Bonds.
Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption of
Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a
common matunty date a distinctive number for each $5,000 of the principal amount of such
Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall
deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at
$5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The
Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected, provided,
however, that only so much of the principal amount of such Bond of a denomination of more
than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so
selected If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar
(with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form
satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or his, her or its
attorney duly authorized in wnting) and the Issuer shall execute (if necessary) and the Bond
Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a
new Bond or Bonds of the same series having the same stated maturity and interest rate and of
any authorized denomination or denominations, as requested by such Holder, in aggregate
principal amount equal to and in exchange for the unredeemed portion of the principal of the
Bond so surrendered.
Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal
amount of $2,990,000, all of like date of original issue and tenor, except as to number, maturity,
interest rate, denomination, and redemption privilege, which Bond has been issued pursuant to
and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a
resolution adopted by the City Council on October 4, 2005 (the "Resolution"), for the purpose of
providing money to finance the acquisition and construction of a water tower within the City.
This Bond is payable out of the General Obligation Water Revenue Bonds, Series 2005C Fund of
the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for
the prompt and full payment of the principal, premium, if any, and interest when the same
become due, the full faith and credit and taxing powers of the Issuer have been and are hereby
irrevocably pledged.
Denominations Exchange; Resolution The Bonds are issuable solely as fully registered bonds
in the Authonzed Denominations (as defined in the Resolution) and are exchangeable for fully
1810104v1 8
RESOLUTION 2005
registered Bonds of other Authorized Denominations in equal aggregate principal amounts at the
principal office of the Bond Registrar, but only in the manner and subject to the limitations
provided in the Resolution. Reference is hereby made to the Resolution for a description of the
rights and duties of the Bond Registrar Copies of the Resolution are on file in the principal
office of the Bond Registrar.
Transfer. This Bond is transferable by the Holder in person or by his, her or its attorney duly
authorized in writing at the principal office of the Bond Registrar upon presentation and
surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the
Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond
Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and
deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the
transferee (but not registered in blank or to "bearer" or similar designation), of an Authorized
Denomination or Denominations, in aggregate principal amount equal to the principal amount of
this Bond, of the same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection with the transfer or exchange
of this Bond and any legal or unusual costs regarding transfers and lost Bonds
Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in whose
name this Bond is registered as the owner hereof for the purpose of receiving payment as herein
provided (except as provided herein with respect to the Record Date) and for all other purposes,
whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be
affected by notice to the contrary.
Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled
to any security unless the Certificate of Authentication hereon shall have been executed by the
Bond Registrar.
Designated as Qualified Tax Exempt Obligations. The Bonds have been designated by the
Issuer as "qualified tax exempt obligations" for purposes of Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the
Constitution and laws of the State of Minnesota to be done, to happen and to be performed,
precedent to and in the issuance of this Bond, have been done, have happened and have been
performed, in regular and due form, time and manner as required by law, that the Issuer has
covenanted and agreed with the Holders of the Bonds that it will impose and collect charges for
the service, use and availability of its water utility system at the times and in amounts necessary
to produce net revenues adequate to pay all principal and interest when due on the Bonds, and
that the Issuer will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable
property of the Issuer, without limitation as to rate or amount, for the years and in amounts
sufficient to pay the principal and interest on the Bonds of this issue as they respectively become
due, if the net revenues from the water utility system irrevocably appropriated to the Debt
Service Account are insufficient therefor; and that this Bond, together with all other debts of the
18101040 9
Issuer outstanding on the date of original issue hereof and the date of its issuance and delivery to
the original purchaser, does not exceed any constitutional or statutory limitation of indebtedness.
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 signatures of its
Mayor and its Clerk, the corporate seal of the Issuer having been intentionally omitted as
permitted by law.
Date of Registration:
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bonds is one of the Bonds
described in the Resolution
mentioned within.
U.S. Bank National Association
St. Paul, Minnesota
Bond Registrar
By:
Authorized Signature
1810104v1
Registrable by: U.S. BANK NATIONAL
ASSOCIATION
ST. PAUL, MINNESOTA
Payable at:
U.S. BANK NATIONAL
ASSOCIATION
ST. PAUL, MINNESOTA
CITY OF ROSEMOUNT,
DAKOTA COUNTY, MINNESOTA
/s/ Facsimile
Mayor
/s/ Facsimile
Clerk
10
RESOLUTION 2005
ABBREVIATIONS
RESOLUTION 2005
The following abbreviations, when used in the inscription on the face of this
Bond, shall be construed as though they were written out in full according to applicable laws or
regulations:
TEN COM as tenants in common
TEN ENT as tenants by the entireties
JT TEN as joint tenants with right of survivorship
and not as tenants in common
UTMA as custodian for
181moav1
(Cust) (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used
though not in the above list.
11
For value received, the undersigned hereby sells, assigns and transfers unto
the within
Bond and does hereby irrevocably constitute and appoint attorney to
transfer the Bond on the books kept for the registration thereof, with full power of substitution in
the premises.
Dated:
Signature Guaranteed:
Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm
having a membership in one of the major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad- 15(a)(2).
The Bond Registrar will not effect transfer of this Bond unless the information concerning the
transferee requested below is provided.
Name and Address:
1810104v1
ASSIGNMENT
(Include information for all joint owners
if the Bond is held by joint account.)
12
RESOLUTION 2005
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.
isimoav1
This Bond has been prepaid in part on the date(s) and in the amount(s) as follows:
Date
[Use only for Bonds when they are
Registered in Book Entry Only System]
PREPAYMENT SCHEDULE
13
RESOLUTION 2005
Authorized Signature
Amount of Holder
RESOLUTION 2005
8. Execution; Temporary Bonds. The Bonds shall be printed (or, at the request of the
Purchaser, typewritten) shall be executed on behalf of the City by the signatures of its Mayor and
Clerk and be sealed with the seal of the City; provided, however, that the seal of the City may be
a printed (or, at the request of the Purchaser, photocopied) facsimile; and provided further that
both of such signatures may be printed (or, at the request of the Purchaser, photocopied)
facsimiles and the corporate seal may be omitted on the Bonds as permitted by law. In the event
of disability or resignation or other absence of either such officer, the Bonds may be signed by
the manual or facsimile signature of that officer who may act on behalf of such absent or
disabled officer. In case either such officer whose signature or facsimile of whose signature shall
appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such
signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he
or she had remained in office until delivery. The City may elect to deliver, in lieu of printed
definitive bonds, one or more typewritten temporary bonds in substantially the form set forth
above, with such changes as may be necessary to reflect more than one maturity in a single
temporary bond. The temporary bonds may be executed with photocopied facsimile signatures
of the Mayor and Clerk. Such temporary bonds shall, upon the printing of the definitive bonds
and the execution thereof, be exchanged therefor and canceled.
9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to
any security or benefit under this resolution unless a Certificate of Authentication on such Bond,
substantially in the form hereinabove set forth, shall have been duly executed by an authorized
representative of the Bond Registrar. Certificates of Authentication on different Bonds need not
be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of
the City on each Bond by execution of the Certificate of Authentication on the Bond and by
inserting the date of authentication in the space provided, except that for purposes of the Bonds
delivered to the Purchaser, the Bond Registrar shall insert as a date of authentication the date of
onginal issue, which date is November 1, 2005. The executed Certificate of Authentication on
each Bond shall be conclusive evidence that it has been authenticated and delivered under this
resolution.
10. Registration; Transfer; Exchange. The City will cause to be kept at the pnncipal office of
the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond
Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the
registration of transfers of Bonds entitled to be registered or transferred as herein provided.
Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City
shall execute Of necessary), and the Bond Registrar shall authenticate, insert the date of
registration (as provided in paragraph 9 with respect to authentication) and deliver, in the name
of the designated transferee or transferees, one or more new Bonds of any Authonzed
Denomination or Denominations of a like aggregate principal amount, having the same stated
maturity and interest rate. as requested by the transferor, provided, however, that no bond may be
registered in blank or in the name of "bearer" or similar designation.
At the option of the holder, Bonds may be exchanged for Bonds of any Authorized
Denomination or Denominations of a like aggregate principal amount and stated maturity, upon
surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever
any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond
isima4v1
14
RESOLUTION 2005
Registrar shall authenticate, insert the date of authentication of, and deliver the Bonds which the
holder making the exchange is entitled to receive.
All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be
promptly canceled by the Bond Registrar and thereafter disposed of as directed by the City.
All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations
of the City evidencing the same debt, and entitled to the same benefits under this resolution, as
the Bonds surrendered for such exchange or transfer.
Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be
accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly
executed by the holder thereof or his attomey duly authorized in writing.
The Bond Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable regulations of the Issuer contained in any agreement
with the Bond Registrar, including regulations which permit the Bond Registrar to close its
transfer books between record dates and payment dates.
11. Rights Upon Transfer or Exchange. Each Bond delivered upon transfer of or in exchange
for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to
accrue, which were carried by such other Bond
12. Interest Payment; Record Date. Interest on any Bond shall be paid on each interest
payment date by check or draft mailed to the person in whose name the Bond is registered (the
"Holder on the registration books of the City maintained by the Bond Registrar and at the
address appearing thereon at the close of business on the fifteenth day of the calendar month next
preceding such interest payment date (the "Regular Record Date Any such interest not so
timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular
Record Date, and shall be payable to the person who is the Holder thereof at the close of
business on a date (the "Special Record Date fixed by the Bond Registrar whenever money
becomes available for payment of the defaulted interest Notice of the Special Record Date shall
be given by the Bond Registrar to the Holders not less than ten (10) days pnor to the Special
Record Date.
13. Treatment of Registered Owner. The City and Bond Registrar may treat the person in
whose name any Bond is registered as the owner of such Bond for the purpose of receiving
payment of principal of and premium, if any, and interest (subject to the payment provisions in
paragraph 12 above with respect to interest payment and record date) on, such Bond and for all
other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor
the Bond Registrar shall be affected by notice to the contrary.
14. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be
delivered by the Finance Director to the Purchaser upon receipt of the purchase pnce, and the
Purchaser shall not be obliged to see to the proper application thereof.
iaioio4vi
15
18101041
16
RESOLUTION 2005
15. Fund and Accounts.
(a) Water Fund, Operation and Maintenance Account. The City has heretofore created a
Water Fund into which the gross revenues of the water utility are paid (the "Water Fund The
Operation and Maintenance Account heretofore created in the Water Fund shall continue to be
maintained in the manner heretofore provided for. All current costs of operation of the water
utility shall be paid out of the Operation and Maintenance Fund. Any water revenues in excess
of the current costs of operation are hereafter referred to as "net revenues
(b) There is hereby established a special fund to be designated "General Obligation Water
Revenue Bonds, Series 2005C Fund" (the "Fund to be held and administered by the City
Finance Director separate and apart from all other funds of the City. The Fund shall be
maintained in the manner herein specified until all of the Bonds and the interest thereon have
been fully paid. There shall be maintained in the Fund two separate accounts to be designated
the "Construction Account" and the "Debt Service Account," respectively.
(i) Construction Account. To the Construction Account there shall be credited the proceeds
of the sale of the Bonds, less accrued interest received thereon, and less any amount paid for the
Bonds in excess of $2,966,080. From the Construction Account shall be paid all costs and
expenses of the Project, including the cost of construction contracts heretofore let or to be let and
all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section
475.65. Any balance remaining in the fund after completion of the costs shall be transferred to
the Debt Service Account.
(ii) Debt Service Account. There is hereby pledged and there shall be credited to the Debt
Service Account. (a) the net revenues of the water utility system not otherwise pledged and
applied to the payment of other obligations of the City, in an amount, together with other funds
which may herein or hereafter from time to time be irrevocably appropriated to the account
sufficient to meet the requirements of Minnesota Statutes, Section 475.61 for the payment of the
principal and interest of this issue; (b) all accrued interest received upon delivery of the Bonds;
(c) all funds paid for the Bonds in excess of $2,966,080; (d) all collections of taxes which may
hereafter be levied in the event that net revenues and other funds herein pledged to the payment
of the principal and interest of the Bonds of this issue are insufficient therefore; (e) all funds
remaining in the Construction Account after completion of the Project and payment of the costs
thereof; (0 all investment earnings on funds held in the Debt Service Account; and (g) any and
all other moneys which are properly available and are appropriated by the governing body of the
City to the Debt Service Account. The Debt Service Account shall be used solely to pay the
principal and interest and any premiums for redemption of the Bonds and any other general
obligation bonds of the City hereafter issued by the City and made payable from said account as
provided by law.
No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher
yielding investments or to replace funds which were used directly or indirectly to acquire higher
yielding investments, except (1) for a reasonable temporary period until such proceeds are
needed for the purpose for which the Bonds were issued, and (2) in addition to the above in an
amount not greater than the lesser of five percent (5 of the proceeds of the Bonds or $100,000.
To this effect, any proceeds of the Bonds and any sums from time to time held in the
1810104v1
17
RESOLUTION 2005
Construction Account or Debt Service Account (or any other City account which will be used to
pay principal or interest to become due on the bonds payable therefrom) in excess of amounts
which under the applicable federal arbitrage regulations may be invested without regard to yield
shall not be invested at a yield in excess of the applicable yield restrictions imposed by said
arbitrage regulations on such investments after taking into account any applicable "temporary
periods" or "minor portion" made available under the federal arbitrage regulations Money in the
Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the
United States or any agency or instrumentality thereof if and to the extent that such investment
would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the
federal Internal Revenue Code of 1986, as amended (the "Code
16. Sufficiency of Net Revenues. It is hereby found, determined and declared that the net
revenues of the water utility system are sufficient in amount to pay when due the principal of and
interest on the Bonds herein authonzed and the City's outstanding general obligation water
revenue bonds heretofore issued and made payable from the net revenues of the water utility (the
"Parity Bonds The net revenues of the water utility system are hereby pledged for the
payment of the Bonds and shall be applied for that purpose, but solely to the extent required to
meet the principal and interest requirements of this issue as the same become due. Excess net
revenues may be used for any proper purpose. Nothing contained herein shall be deemed to
preclude the City from making further pledges and appropriations of the net revenues of the
water utility system for the payment of other or additional obligations of the City, provided that
it has first been determined by the City Council that the estimated net revenues of the water
utility system will be sufficient in addition to all other sources, for the payment of the Bonds
herein authorized and the Parity Bonds, and such additional obligations and any such pledge and
appropriation of the net revenues may be made superior or subordinate to, or on a parity with the
pledge and appropriation herein.
17. Covenant to Maintain Rates and Charges. In accordance with Minnesota Statutes,
Section 444.075, the City hereby covenants and agrees with the holders of the Bonds that it will
impose and collect charges for the service, use, availability and connection to the water utility
system 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 the Panty Bonds.
18. 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 shall be and are irrevocably pledged. If the net revenues of the water utility system
appropriated and pledged to the payment of pnncipal and interest on the Bonds, together with
other funds irrevocably appropriated to the Debt Service Account herein established, shall at any
time be insufficient to pay such principal and interest when due, the City covenants and agrees to
levy, without limitation as to rate or amount an ad valorem tax upon all taxable property in the
City sufficient to pay such principal and interest as it becomes due. If the balance in the Debt
Service Account is ever insufficient to pay all principal and interest then due on the Bonds
payable therefrom, the deficiency shall be promptly paid out of any other accounts of the City
which are available for such purpose, and such other funds may be reimbursed without interest
from the Debt Service Account when a sufficient balance is available therein.
RESOLUTION 2005
19. Coverage Test. The net revenues are such that if collected in full they, together with all
other funds herein pledged for the payment of the Bonds, will produce at least five percent (5
in excess of the amount needed to meet when due the principal and interest payments on the
Bonds and the Parity Bonds
20. Certificate of Registration. The Clerk is hereby directed to file a certified copy of this
resolution with the County Auditor /Treasurer of Dakota County, Minnesota, together with such
other information as he or she shall require, and to obtain the County Auditor /Treasurer's
certificate that the Bonds have been entered in the County Auditor /Treasurer's Bond Register.
21. Records and Certificates. The officers of the City are hereby authorized and directed to
prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance,
certified copies of all proceedings and records of the City relating to the Bonds and to the
financial condition and affairs of the City, and such other affidavits, certificates and information
as are required to show the facts relating to the legality and marketability of the Bonds as the
same appear from the books and records under their custody and control or as otherwise known
to them, and all such certified copies, certificates and affidavits, including any heretofore
furnished, shall be deemed representations of the City as to the facts recited therein.
22. Tax Exempt Status of the Bonds: Rebate. The City shall comply with requirements
necessary under the Code to establish and maintain the exclusion from gross income under
Section 103 of the Code of the interest on the Bonds, including without limitation (1)
requirements relating to temporary periods for investments, (2) limitations on amounts invested
at a yield greater than the yield on the Bonds, and (3) the rebate of excess investment earnings to
the United States. The Issuer expects to satisfy the eighteen month expenditure exemption for
gross proceeds of the Bonds as provided in Section 1.148- 7(d)(1) of the Regulations.
23. Compliance with Reimbursement Bond Regulations The provisions of this paragraph
are intended to establish and provide for the City's compliance with United States Treasury
Regulations Section 1.150 -2 (the "Reimbursement Regulations applicable to the
"reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the
City to reimburse itself for any expenditure which the City paid or will have paid pnor to the
Closing Date (a "Reimbursement Expenditure
The City hereby certifies and /or covenants as follows:
(a) Not later than 60 days after the date of payment of a Reimbursement Expenditure, the
City (or person designated to do so on behalf of the City) has made or will have made a wntten
declaration of the City's official intent (a "Declaration which effectively (i) states the City's
reasonable expectation to reimburse itself for the payment of the Reimbursement Expenditure
out of the proceeds of a subsequent borrowing; (ii) gives a general and functional descnption of
the property, project or program to which the Declaration relates and for which the
Reimbursement Expenditure is paid, or identifies a specific fund or account of the City and the
general functional purpose thereof from which the Reimbursement Expenditure was to be paid
(collectively the "Project and (iii) states the maximum pnncipal amount of debt expected to be
issued by the City for the purpose of financing the Project; provided, however, that no such
Declaration shall necessanly have been made with respect to: (i) "preliminary expenditures" for
1810104v1
18
RESOLUTION 2005
the Project, defined in the Reimbursement Regulations to include engineering or architectural,
surveying and soil testing expenses and similar prefatory costs, which in the aggregate do not
exceed 20% of the "issue price" of the Bonds, and (ii) a de minims amount of Reimbursement
Expenditures not in excess of the lesser of $100,000 or 5% of the proceeds of the Bonds.
(b) Each Reimbursement Expenditure is a capital expenditure or a cost of issuance of the
Bonds or any of the other types of expenditures described in Section 1.150- 2(d)(3) of the
Reimbursement Regulations.
(c) The "reimbursement allocation" described in the Reimbursement Regulations for each
Reimbursement Expenditure shall and will be made forthwith following (but not prior to) the
issuance of the Bonds and in all events within the period ending on the date which is the later of
three years after payment of the Reimbursement Expenditure or one year after the date on which
the Pr47ect to which the Reimbursement Expenditure relates is first placed in service.
(d) Each such reimbursement allocation will be made in a writing that evidences the City's
use of Bond proceeds to reimburse the Reimbursement Expenditure and, if made within 30 days
after the Bonds are issued, shall be treated as made on the day the Bonds are issued.
Provided, however, that the City may take action contrary to any of the foregoing covenants in
this paragraph 23 upon receipt of an opinion of its Bond Counsel for the Bonds stating in effect
that such action will not impair the tax- exempt status of the Bonds.
24. Designation as 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
hereby makes the following factual statements and representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code;
(c) the City hereby designates the Bonds as "qualified tax- exempt obligations" for purposes
of Section 265(b)(3) of the Code;
(d) the reasonably anticipated amount of tax exempt obligations (other than private activity
bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be
issued by the City (and all entities treated as one issuer with the City, and all subordinate entities
whose obligations are treated as issued by the City) during this calendar year 2005 will not
exceed $10,000,000; and
(e) not more than $10,000,000 of obligations issued by the City during this calendar year
2005 have been designated for purposes of Section 265(b)(3) of the Code.
The City shall use its best efforts to comply with any federal procedural requirements which may
apply in order to effectuate the designation made by this paragraph.
1810104v1
1 9
1810104v1
20
RESOLUTION 2005
25. Continuing Disclosure.
(a) The City is the sole obligated person with respect to the Bonds The City hereby agrees,
in accordance with the provisions of Rule 15c2 -12 (the "Rule promulgated by the Securities
and Exchange Commission (the "Commission pursuant to the Securities Exchange Act of
1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking hereinafter
described to:
(1) provide or cause to be provided to each nationally recognized municipal securities
information repository "NRMSIR and to the appropnate state information depository "SID
if any, for the State of Minnesota, in each case as designated by the Commission in accordance
with the Rule, certain annual financial information and operating data in accordance with the
Undertaking. The City reserves the nght to modify from time to time the terms of the
Undertaking as provided therein.
(2) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the
Municipal Secunties Rulemaking Board "MSRB and (ii) the SID, notice of the occurrence of
certain material events with respect to the Bonds in accordance with the Undertaking.
(3) Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the MSRB
and (ii) the SID, notice of a failure by the Issuer to provide the annual financial information with
respect to the Issuer described in the Undertaking.
(4) The City agrees that its covenants pursuant to the Rule set forth in this paragraph and in
the Undertaking is intended to be for the benefit of the holders of the Bonds and shall be
enforceable on behalf of such holders; provided that the right to enforce the provisions of these
covenants shall be limited to a nght to obtain specific enforcement of the City's obligations under
the covenants.
(b) The Mayor and Clerk of the City, or any other officer of the City authorized to act in their
place, (the "Officers are hereby authorized and directed to execute on behalf of the City the
Undertaking in substantially the form presented to the City Council, subject to such
modifications thereof or additions thereto as are (i) consistent with the requirements under the
Rule, (n) required by the purchaser of the Bonds and (iii) acceptable to the Officers.
26. Defeasance. When all Bonds have been discharged as provided in this paragraph, all
pledges, covenants and other nghts granted by this resolution to the registered holders of the
Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with
respect to any Bonds which are due on any date by irrevocably depositing with the Bond
Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond
should not be paid when due, it may nevertheless he discharged by depositing with the Bond
Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such
deposit. The City may also at any time discharge its obligations with respect to any Bonds,
subject to the provisions of law now or hereafter authorizing and regulating such action, by
depositing irrevocably in escrow, with a suitable banking institution qualified by law as an
escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67,
Subdivision 8, bearing interest payable at such times and at such rates and maturing on such
RESOLUTION 2005
dates as shall be required, subject to sale and/or reinvestment, to pay all amounts to become due
thereon to maturity or, if notice of redemption as herein required has been duly provided for, to
such earlier redemption date.
27. Severability. If any section, paragraph or provision of this resolution shall be held to be
invalid or unenforceable for any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining provisions of this resolution.
1810104v1
21
28. Headings. Headings in this resolution are included for convenience of reference only and
are not a part hereof, and shall not limit or define the meaning of any provision hereof.
ADOPTED this 4th day of October, 2005.
ATTEST:
Linda J Jentink, City Clerk
William H. Droste, Mayor
RESOLUTION 2005
Motion by: Seconded by:
Voted in favor:
Voted Against:
Members Absent:
isimo4v1
22
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF ROSEMOUNT
RESOLUTION 2005
I, the undersigned, being the duly qualified and acting Clerk of the City of Rosemount,
Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that the same is a full, true and
complete transcript of the minutes of a meeting of the City Council of said City, duly called and
held on the date therein indicated, insofar as such minutes relate to considering offers for, and
awarding the sale of, S2,990,000 General Obligation Water Revenue Bonds, Series 2005C of
said City.
WITNESS my hand this day of 2005.
1810104v1
Clerk
AWARD:
SALE:
Bidder
WELLS FARGO BROKERAGE
SERVICES, LLC
UMB BANK, N.A.
PIPER JAFFRAY CO.
HARRIS N.A.
FTN Financial Capital Markets
Isaak Bond Investments, Inc.
The Bankers Bank
Axelrod Associates, Inc.
J.P. MORGAN SECURITIES, INC.
Sterne, Agee Leach, Inc.
Springsted
$2,990,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2005C
(BOOK ENTRY ONLY)
WELLS FARGO BROKERAGE SERVICES, LLC
October 4, 2005
Interest
Rates
3.50% 2007 -2014
3.75% 2015 -2016
3.15% 2007
3.20% 2008
3.25% 2009
3.30% 2010
3.35% 2011
3.45% 2012
3.50% 2013
3 60% 2014
3.70% 2015
3.75% 2016
3.625% 2007 -2015
3.65% 2016
3.50% 2007 -2013
3.60% 2014
3.65% 2015
3.70% 2016
Price
$2,987,608.00
$2,987,767.10
3.60% 2007 -2016 $2,982,121.35
Spdngsted Incorporated
380 Jackson Street, Suite 300
Saint Paul, MN 55101 -2887
Tel 651-223-3000
Fax 651 223 -3002
Email• advisors @springsted.com
www.spnngsted.com
Net Interest
Cost
$2,977,741.00 $653,26025
$2,974,719.04 $663,722.84
Moody's Rating: Aaa
XL Capital Insured
$653,045.13
$659,707.90
$659,928.65
True Interest
Rate
3.6014%
3.6070%
3.6415%
3.6476%
3.6717%
(Continued)
Bidder
FIRST TRUST PORTFOLIOS, L.P.
RBC Dain Rauscher Inc.
SunTrust Capital Markets, Inc.
Stephens, Inc.
Crews Associates, Inc.
GRIFFIN, KUBIK, STEPHENS
THOMPSON, INC.
LEGG MASON WOOD WALKER, INC.
ROBERT W. BAIRD COMPANY,
INCORPORATED
SEATTLE NORTHWEST SECURITIES
CORP
CRONIN COMPANY, INCORPORATED
3 50%
3.50%
3.50%
3.50%
3 50%
3.50%
3.50%
3.50%
3.75%
3.75%
Interest
Rates
3.50% 2007 -2014
3.60% 2015
3.625% 2016
3 625% 2007 -2014 $2,984,319.30
3.70% 2015 -2016
3.75% 2007 -2016 $2,996,252 25
3.625% 2007 -2010 $3,012,684.45
3.75% 2011
4 00% 2012 -2016
3.625% 2007 -2010
3.75% 2011
4,00% 2012 -2015
4.25% 2016
3.625% 2007 -2010
3.75% 2011
4.00% 2012 -2016
Price
$2,967,427.60
REOFFERING SCHEDULE OF THE PURCHASER
Rate Year Yield
2007 2.80%
2008 2.90%
2009 3.00%
2010 3.10%
2011 3.20%
2012 3.30%
2013 3,40%
2014 Par
2015 3.60%
2016 3.65%
Net Interest True Interest
Cost Rate
$664,093.03 3.6811%
$667,273.51 3.6852%
$672,966.50 3.7078%
$686,670.24 3.7638%
$3,018,132 55 $690,190.89 3.7760%
$3,010,330.75 $689,023.94 3.7787%
BSI: 4.39%
Average Maturity: 6 058 Years
AWARD:
SALE:
Bidder
UMB BANK, N.A.
WELLS FARGO BROKERAGE
SERVICES, LLC
$1,120,000*
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION FIRE STATION REFUNDING BONDS, SERIES 2005D
(BOOK ENTRY ONLY)
CRONIN COMPANY, INCORPORATED
PIPER JAFFRAY CO.
LEGG MASON WOOD WALKER, INC.
MILLER JOHNSON STEICHEN
KINNARD, INC.
UMB BANK, N.A.
October 4, 2005
Interest
Rates
3.15% 2007
3.20% 2008
3.25% 2009
3 30% 2010
3.35% 2011
3.45% 2012
3.50% 2013
3.60% 2014
3 70% 2015
3.75% 2016
3.50% 2007 -2014
3.75% 2015 -2016
3.50% 2007 -2010
3.75% 2011 -2014
3.80% 2015 -2016
3 70% 2007 -2014
3.80% 2015 -2016
3.75% 2007 -2013
3.80% 2014
3.90% 2015 -2016
3.50% 2007 -2010
3.75% 2011 -2014
3.85% 2015
4.00% 2016
0 Springsted
These Bonds are not being reoffered.
Price
$1,114,008.00 $244,968.25 3 6298%
$1,113,952.00
$1,118,396.30
$1,114,667.00
$1,115,813.12
$1,112,440 00
Subsequent to bid opening, the issue size decreased from $1,120,000 to $1,115,000.
Springsted Incorporas
380 Jackson Street, Suite 300
Saint Paul, MN 55101.2887
Tel: 651- 223 -3000
Fax 651- 223 -3002
Emad: advisors @spnngsted com
www.spnngsted com
$262,494.38
Moody's Rating: Al
Net Interest True Interest
Cost Rate
$248,694.88 3.6889%
$253,294.95 3 7469%
$257,756.75 3.8239%
$261,727.50 3.8792%
3.8946%
BBI: 4.39%
Average Maturity: 6.031 Years
NEW AND REFUNDING ISSUES
OFFICIAL STATEMENT DATED SEPTEMBER 20, 2005
Ratings: Requested from Moody's
Investors Service
!n the opinion of Bnggs ano Morgan, Professional Association, Bond Counsel, based on present federal and Minnesota laws, regulations, rulings and decrsons, at tne time of their
issuance and delivery to tne original purchaser, interest on tne Obligations is excluded from gross income for purooses of United States income tax and is excluded, to the same
extent, in computing born gross income and taxable net income for purooses of State of Minnesota income tax (other than Minnesota franchise taxes measured by income and
imposed on corporations and financial inst tutisns„ and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations
or the Minnesota ate-nat ve minimum tax applicable to individuals, estates or trysts, provided, ncwever, that fcr tne purpose of computing the federal alternative minimum tax
Imposed on corporations, interest on the Obligations is taken into account in determining adjusted cwrrent earnings No opinion will be excressed by Band Counsel regarding other
federal or state tax consequences caused by tne receipt or accrual of interest on the Obligations or arising with respect to ownership of the ObIgabons See 'Tax Exemption" and
"Other Federal Tax Consideraosns "herein
City of Rosemount, Minnesota
$2,990,000 $1,120,000*
General Obligation Water General Obligation Fire Station
Revenue Bonds, Series 2005C Refunding Bonds, Series 2005D
(the "Revenue Bonds (the "Refunding Bonds
(collectively referred to as the "Bonds," the "Obligations" or the "Issues
(Book Entry Only)
Dated Date: November 1, 2005 Interest Due: Each February 1 and August 1
commencing August 1, 2006
The Revenue Bonds will mature February 1 as follows
2007 $235,000 2009 $275,000
2008 $270,000 2010 $285,000
2011 $295,000
2012 $305,000
The Refunding Bonds will mature February 1 as follows
2007 90,000 2009 $105,000 2011 $110,000
2008 $100,000 2010 $110,000 2012 $115,000
Common to Both Issues
Springsted
2013 $315,000
2014 $325,000
2013 $115,000
2014 $120,000
Preliminary, subject to change.
PROPOSALS RECEIVED: October 4, 2005 (Tuesday) until 12:00 Noon, Central Time
AWARD: October 4, 2005 (Tuesday) at 7:30 P.M., Central Time
2015 $335,000
2016 $350,000
2015 $125,000
2016 $130,000
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds All
term bonds shall be subject to mandatory sinking fund redemption and must conform to the maturity schedule set forth above
at a price of par plus accrued interest to the date of redemption.
The City may elect on February 1, 2013, and on any day thereafter, to prepay the Revenue Bonds due on or after February 1,
2014 All prepayments shall be at a price of par plus accrued interest The Refunding Bonds will not be subject to
redemption in advance of their respective stated maturity dates
The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct general
ad valorem taxes Additional sources of security for the Bonds are discussed herein
A separate proposal must be submitted for each Issue, along with a certified or cashier's check or a Financial Surety Bond, for
not less than the amounts shown below Proposals shall specify rates in integral multiples of 5/100 or 1/8 of 1% Rates must
be in level or ascending order. Award will be made on the basis of True Interest Cost (TIC)
Minimum Bid Good Faith Deposit
The Revenue Bonds $2,966,080 $29,900
The Refunding Bonds 1,112,440 11,200
The City will designate the Bonds as "qualified tax exempt obligations" pursuant to Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended. The Bonds will not be subject to the alternative minimum tax for individuals.
The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the name of Cede
Co as nominee of The Depository Trust Company "DTC DTC will act as securities depository for the Bonds Individual
purchases may be made in book -entry form only, in the principal amount of $5,000 and integral multiples thereof. Investors
will not receive physical certificates representing their interest in the Bonds purchased. (See "Book Entry System" herein
U.S. Bank National Association, Saint Paul, Minnesota will serve as registrar (the "Registrar") for the Bonds. The Bonds will
be available for delivery at DTC on or about November 3, 2005
Further information may be obtained from SPRINGSTED
Incorporated, Financial Advisor to the Issuer, 380 Jackson Street,
Suite 300, Saint Paul, Minnesota 55101 -2887 (651) 223 -3000
For purposes of compliance with Rule 15c2 -12 of the Securities and Exchange Commission,
this document, as the same may be supplemented or corrected by the Issuer from time to time
(collectively, the "Official Statement may be treated as an Official Statement with respect to
the Obligations described herein that is deemed final as of the date hereof (or of any such
supplement or correction) by the Issuer, except for the omission of certain information referred
to in the succeeding paragraph.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Obligations, together with any other
information required by law, shall constitute a "Final Official Statement" of the Issuer with
respect to the Obligations, as that term is defined in Rule 15c2 -12. Any such addendum shall,
on and after the date thereof, be fully incorporated herein and made a part hereof by reference.
By awarding the Obligations to any underwriter or underwriting syndicate submitting a Proposal
therefor, the Issuer agrees that, no more than seven business days after the date of such
award, it shall provide without cost to the senior managing underwriter of the syndicate to which
the Obligations are awarded copies of the Official Statement and the addendum or addenda
described in the preceding paragraph in the amount specified in the Terms of Proposal.
The Issuer designates the senior managing underwriter of the syndicate to which the
Obligations are awarded as its agent for purposes of distributing copies of the Final Official
Statement to each Participating Underwriter. Any underwriter delivering a Proposal with respect
to the Obligations agrees thereby that if its bid is accepted by the Issuer (i) it shall accept such
designation and (11) it shall enter into a contractual relationship with all Participating
Underwriters of the Obligations for purposes of assuring the receipt by each such Participating
Underwriter of the Final Official Statement
No dealer, broker, salesman or other person has been authorized by the Issuer to give any
information or to make any representations with respect to the Obligations, other than as
contained in the Official Statement or the Final Official Statement, and if given or made, such
other information or representations must not be relied upon as having been authorized by the
Issuer. Certain information contained in the Official Statement and the Final Official Statement
may have been obtained from sources other than records of the Issuer and, while believed to
be reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND
EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL
STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE
OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE
UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS
BEEN NO CHANGE IN THE AFFAIRS OF THE ISSUER SINCE THE DATE THEREOF.
References herein to laws, rules, regulations, resolutions, agreements, reports and other
documents do not purport to be comprehensive or definitive. All references to such documents
are qualified in their entirety by reference to the particular document, the full text of which may
contain qualifications of and exceptions to statements made herein Where full texts of
documents prepared by or on behalf of the Issuer have not been included as appendices to the
Official Statement or the Final Official Statement, they will be furnished on request.
Any CUSIP numbers for the Obligations included on the Addendum to the Official Statement
are provided for convenience of the owners and prospective investors. The CUSIP numbers for
the Obligations have been assigned by an organization unaffiliated with the Issuer The Issuer
is not responsible for the selection of the CUSIP numbers and makes no representation as to
the accuracy thereof as printed on the Obligations or as set forth on the Addendum to the
Official Statement. No assurance can be given that the CUSIP numbers for the Obligations will
remain the same after the date of issuance and delivery of the Obligations.
Terms of Proposal:
TABLE OF CONTENTS
Page(s)
$2,990,000 General Obligation Water Revenue Bonds, Series 2005C i -iv
$1,120,000* General Obligation Fire Station Refunding Bonds, Series 2005D v -viii
Introductory Statement 1
Continuing Disclosure 1
The Bonds 2
The Revenue Bonds 4
The Refunding Bonds 5
Future Financing 5
Litigation 6
Legality 6
Tax Exemption 6
Other Federal Tax Considerations 6
Bank Qualified Tax Exempt Obligations 7
Ratings 8
Financial Advisor 8
Certification 8
City Property Values 9
City Indebtedness 10
City Tax Rates, Levies and Collections 15
Funds on Hand 16
City Investments 16
General Information Concerning the City 17
Governmental Organization and Services 21
Proposed Forms of Legal Opinion Appendix I
Continuing Disclosure Undertaking Appendix II
Summary of Tax Levies, Payment Provisions, and
Minnesota Real Property Valuation Appendix III
Excerpt of 2004 Annual Financial Statements Appendix IV
Proposal Forms Inserted
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$2,990,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2005C
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, October 4, 2005, until 12:00 Noon,
Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint
Paul, Minnesota, after which time they will be opened and tabulated Consideration for award
of the Bonds will be by the City Council at 7.30 P M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the
time of sale specified above. All bidders are advised that each Proposal shall be deemed to
constitute a contract between the bidder and the City to purchase the Bonds regardless of the
manner in which the Proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax
(651) 223 -3046 to Springsted. Signed Proposals, without final price or coupons, may be
submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting
to Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax
(651) 223 -3046 for inclusion in the submitted Proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via
PARITY For purposes of the electronic bidding process, the time as maintained by PARITY
shall constitute the official time with respect to all Bids submitted to PARITY Each bidder
shall be solely responsib /e for making necessary arrangements to access PARITY for
purposes of submitting its electronic Bid in a timely manner and in compliance with the
requirements of the Terms of Proposal Neither the City, its agents nor PARITY shall have
any duty or obligation to undertake registration to bid for any prospective bidder or to provide or
ensure electronic access to any qualified prospective bidder, and neither the City, its agents nor
PARITY shall be responsible for a bidder's failure to register to bid or for any failure in the
proper operation of, or have any liability for any delays or interruptions of or any damages
caused by the services of PARITY The City is using the services of PARITY solely as a
communication mechanism to conduct the electronic bidding for the Bonds, and PARITY is not
an agent of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY this
Terms of Proposal shall control. Further information about PARITY including any fee
charged, may be obtained from:
PARITY 1359 Broadway, 2 Floor, New York, New York 10018
Customer Support: (212) 849 -5000
DETAILS OF THE BONDS
The Bonds will be dated November 1, 2005, as the date of original issue, and will bear interest
payable on August 1 and February 1 of each year, commencing August 1, 2006. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months
The Bonds will mature February 1 in the years and amounts as follows:
2007 5235,000
2008 $270,000
2009 $275,000
2010 5285,000
2011 $295,000
2012 5305,000
2013 $315,000
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption
and must conform to the maturity schedule set forth above at a price of par plus accrued
interest to the date of redemption 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
2014 $325,000
2015 $335,000
2016 5350,000
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede Co. as nominee of The Depository Trust Company "DTC
New York, New York, which will act as securities depository of the Bonds Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC
REGISTRAR
The City will name the registrar, which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2013, and on any day thereafter, to prepay Bonds due on or
after February 1, 2014. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be
prepaid DTC will determine by lot the amount of each participant's interest in such maturity to
be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition, the City will pledge net
revenues of the City's water utility system The proceeds will be used to finance the acquisition
and construction of a water tower within the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $2,966,080 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit "Deposit in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $29,900,
payable to the order of the City. If a check is used, it must accompany the proposal. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
identify each underwnter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement
and no interest will accrue to the purchaser, will be deposited by the City. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1 Rates must be in level or ascending order Bonds of the same
maturity shall bear a single rate from the date of the Bonds to the date of maturity. No
conditional proposals will be accepted
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to (i) waive non substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and (iii) reject any proposal that the City determines to have failed to comply with
the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be pad by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser through DTC in New York, New York. Delivery will be subject to receipt by the
purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of
Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-
litigation certificate, On the date of settlement, payment for the Bonds shall be made in federal,
or equivalent, funds that shall be received at the offices of the City or its designee not later than
1200 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has
been made impossible by action of the City, or its agents, the purchaser shall be liable to the
City for any loss suffered by the City by reason of the purchaser's non compliance with said
terms for payment.
CONTINUING DISCLOSURE
On the date of actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking (the "Undertaking whereunder the City will covenant for
the benefit of the owners of the Bonds to provide certain financial and other information about
the City and notices of certain occurrences to information repositories as specified in and
required by SEC Rule 15c2- 12(b)(5).
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly final Official
Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223 -3000
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2 -12 By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 120 copies of
the Official Statement and the addendum or addenda described above The City designates
the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent
for purposes of distributing copies of the Final Official Statement to each Participating
Underwriter Any underwriter delivering a proposal with respect to the Bonds agrees thereby
that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall
enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes
of assuring the receipt by each such Participating Underwriter of the Final Official Statement.
Dated September 6, 2005 BY ORDER OF THE CITY COUNCIL
iv
/s/ Linda Jentink
City Clerk
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
OR
TERMS OF PROPOSAL
$1,120,000*
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION FIRE STATION REFUNDING BONDS, SERIES 2005D
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, October 4, 2005, until 12 Noon,
Central Time, at the offices of Springsted Incorporated, 380 Jackson Street, Suite 300, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
of the Bonds will be by the City Council at 7:30 P.M Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the
time of sale specified above All bidders are advised that each Proposal shall be deemed to
constitute a contract between the bidder and the City to purchase the Bonds regardless of the
manner in which the Proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax
(651) 223 -3046 to Springsted. Signed Proposals, without final price or coupons, may be
submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting
to Spnngsted the final Proposal price and coupons, by telephone (651) 223 -3000 or fax
(651) 223 -3046 for inclusion in the submitted Proposal.
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via
PARITY'. For purposes of the electronic bidding process, the time as maintained by PARITY
shall constitute the official time with respect to all Bids submitted to PARITY Each bidder
shall be solely responsible for making necessary arrangements to access PARITY for
purposes of submitting its electronic Bid in a timely manner and in compliance with the
requirements of the Terms of Proposal. Neither the City, its agents nor PARITY shall have
any duty or obligation to undertake registration to bid for any prospective bidder or to provide or
ensure electronic access to any qualified prospective bidder, and neither the City, its agents nor
PARITY shall be responsible for a bidder's failure to register to bid or for any failure in the
proper operation of, or have any liability for any delays or interruptions of or any damages
caused by the services of PARITY The City is using the services of PARITY solely as a
communication mechanism to conduct the electronic bidding for the Bonds, and PARITY" is not
an agent of the City
If any provisions of this Terms of Proposal conflict with information provided by PARITY this
Terms of Proposal shall control. Further information about PARITY including any fee
charged, may be obtained from
PARITY 1359 Broadway, 2"' Floor, New York, New York 10018
Customer Support. (212) 849 -5000
-v
The Bonds will be dated November 1, 2005, as the date of original issue, and will bear interest
payable on August 1 and February 1 of each year, commencing August 1, 2006. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months.
The Bonds will mature February 1 in the years and amounts as follows:
2007 90,000
2008 $100,000
2009 $105,000
2010 $110,000
DETAILS OF THE BONDS
2011 $110,000
2012 $115,000
2013 $115,000
BOOK ENTRY SYSTEM
REGISTRAR
-vi-
2014 $120,000
2015 $125,000
2016 $130,000
The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds offered for sale. Any such increase or reduction will be made in
multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is
increased or reduced, any premium offered or any discount taken by the successful bidder will be
increased or reduced by a percentage equal to the percentage by which the principal amount of the
Bonds is increased or reduced
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption
and must conform to the maturity schedule set forth above at a price of par plus accrued
interest to the date of redemption. In order to designate term bonds, the proposal must specify
"Years of Term Maturities" in the spaces provided on the Proposal Form
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede Co. as nominee of The Depository Trust Company "DTC
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
9onds with DTC.
The City will name the registrar, which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar
OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes The proceeds will be used to refund
the February 1, 2007 through February 1, 2016 maturities of the City's General Obligation Fire
Station Bonds, Series 1996A, dated July 1, 1996.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,112,440 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit "Deposit in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $11,200,
payable to the order of the City If a check is used, it must accompany the proposal If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement
and no interest will accrue to the purchaser, will be deposited by the City. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1 Rates must be in level or ascending order. Bonds of the same
maturity shall bear a single rate from the date of the Bonds to the date of maturity. No
conditional proposals will be accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and (iii) reject any proposal that the City determines to have failed to comply with
the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
vii
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser through DTC in New York, New York Delivery will be subject to receipt by the
purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of
Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-
litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal,
or equivalent, funds that shall be received at the offices of the City or its designee not later than
12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has
been made impossible by action of the City, or its agents, the purchaser shall be liable to the
City for any loss suffered by the City by reason of the purchaser's non compliance with said
terms for payment
CONTINUING DISCLOSURE
On the date of actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking (the "Undertaking whereunder the City will covenant for
the benefit of the owners of the Bonds to provide certain financial and other information about
the City and notices of certain occurrences to information repositories as specified in and
required by SEC Rule 15c2- 12(b)(5).
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly final Official
Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Spnngsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223 -3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds,, as that term is defined in Rule 15c2 -12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 50 copies of the
Official Statement and the addendum or addenda described above The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring
the receipt by each such Participating Underwnter of the Final Official Statement.
Dated September 6, 2005 BY ORDER OF THE CITY COUNCIL
/s/ Linda Jentink
City Clerk
OFFICIAL STATEMENT
CITY OF ROSEMOUNT, MINNESOTA
$2,990,000
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2005C
$1,120,000'
GENERAL OBLIGATION FIRE STATION REFUNDING BONDS, SERIES 2005D
(BOOK ENTRY ONLY)
INTRODUCTORY STATEMENT
This Official Statement contains certain information relating to the City of Rosemount,
Minnesota (the "City" or the "Issuer) and its issuance of $2,990,000 General Obligation Water
Revenue Bonds, Senes 2005C (the "Revenue Bonds and $1,120,000* General Obligation Fire
Station Refunding Bonds, Series 2005D (the "Refunding Bonds collectively referred to as the
"Bonds the "Obligations" or the "Issues." The Bonds are general obligations of the City for
which the City pledges its full faith and credit and power to levy direct general ad valorem taxes.
The purpose and additional sources of security for the Issues are further described herein.
Inquiries may be directed to Mr. Jeffrey May, Finance Director, City of Rosemount,
2875 145th Street West, Rosemount, Minnesota 55068 -4997, or by telephoning
(651) 423 -4411. Inquiries may also be made to Springsted Incorporated, 380 Jackson Street,
Suite 300, St Paul, Minnesota 55101 -2887, or by telephoning (651) 223 -3000. If information
of a specific legal nature is desired, requests may be directed to Ms. Mary Dyrseth, Briggs and
Morgan, Professional Association, Bond Counsel, 2200 First National Bank Budding, St. Paul,
Minnesota 55101, or by telephoning (651) 808 -6625.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with SEC Rule 15c2 -12 (the "Rule pursuant to
the Award Resolutions for the Bonds, the City has entered into undertakings (collectively 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 to certain information repositories
annually, and to provide notices of the occurrence of certain events enumerated in the Rule to
certain information repositories or 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(s) of the Bonds and (iii) acceptable to the Mayor and Clerk of the City. The City has
never failed to comply in all material respects with any previous undertakings under the Rule to
provide annual reports or notices of material events.
The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds offered for sale. Any such increase or reduction will be made in
multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is
increased or reduced, any premium offered or any discount taken by the successful bidder will be
increased or reduced by a percentage equal to the percentage by which the pnncipat amount of the
Bonds is increased or reduced.
-1-
A failure by the City to comply with the Undertaking will not constitute an event of default on the
Bonds (although holders or other beneficial owners of the Bonds will have the sole remedy of
bringing an action for specific performance) Nevertheless, such a failure must be reported in
accordance with the Rule and must be considered by any broker, dealer or municipal securities
dealer before recommending the purchase or sale of the Bonds in the secondary market.
Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and
their market pace.
General Description
THE BONDS
The Bonds are dated as of November 1, 2005 and issued in book entry form. Interest on the
Bonds is payable August 1, 2006 and semiannually thereafter on February 1 and August 1.
Interest will be payable to the holder (initially Cede Co registered on the books of the
registrar (the "Registrar as of the fifteenth day of the calendar month next preceding such
interest payment date. Pnncipal of and interest on the Bonds will be paid as described in the
section herein entitled "Book Entry System." Bonds will mature in the amounts and on the
dates shown on the cover of this Official Statement U.S. Bank National Association, Saint
Paul, Minnesota will serve as Registrar for the Bonds. The City will pay for registration
services.
Optional Redemption
The City may elect on February 1, 2013, and on any day thereafter, to prepay the Revenue
Bonds due on or after February 1, 2014. 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
Revenue 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.
The Refunding Bonds will not be subject to redemption in advance of their respective stated
maturity dates.
Book Entry System
1
The Depository Trust Company "DTC New York, New York, will act as securities depository
for the Obligations. The Obligations will be issued as fully registered securities registered in the
name of Cede Co. (DTC's partnership nominee) or such other name as may be requested by
an authorized representative of DTC One fully registered certificate will be issued for each
maturity of each series of the Obligations, 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 securities that its participants "Direct
Participants deposit with DTC. DTC also facilitates the post -sale 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, thereby
-2-
eliminating the need for physical movement of securities certificates. Direct Participants
("Direct Participants include securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations DTC is a wholly -owned subsidiary of The
Depository Trust and Clearing Corporation ("DTCC"). DTTC, in turn, is owned by a number of
Direct Participants of DTC and members of the National Securities Clearing Corporation, Fixed
Income Clearing Corporation, and Emerging Markets Clearing Corporation (NSCC, FICC, and
EMCC, also subsidiaries of DTCC), as well as by the New York Stock Exchange, Inc., the
American Stock Exchange LLC, and the National Association of Securities Dealers, Inc.
Access to the DTC system is also available to others such as securities brokers and dealers,
banks, trust companies and clearing corporations that dear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly "Indirect Participants The
Rules applicable to DTC and its Direct and Indirect Participants are on file with the Securities
and Exchange Commission More information about DTC can be found at www dtcc.com and
www.dtc orq.
Purchases of Obligations under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Obligations on DTC's records. The ownership
interest of each actual purchaser of each Obligation "Beneficial Owner") is in turn to be
recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive
written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive
written confirmations providing details of the transaction, as well as periodic statements of their
holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into
the transaction. Transfers of ownership interests in the Obligations are to be accomplished by
entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial
Owners. Beneficial Owners will not receive certificates representing their ownership interests in
the Obligations, except in the event that use of the book -entry system for the Obligations is
discontinued.
To facilitate subsequent transfers, all Obligations deposited by Direct Participants with DTC are
registered in the name of DTC's partnership nominee, Cede Co. or such other name as
requested by an authorized representative of DTC. The deposit of Obligations with DTC and
their registration in the name of Cede Co. or such other DTC nominee do not effect any
change in beneficial ownership DTC has no knowledge of the actual Beneficial Owners of the
Obligations; DTC's records reflect only the identity of the Direct Participants to whose accounts
such Obligations are credited, which may or may not be the Beneficial Owners. The Direct and
Indirect Participants will remain responsible for keeping account of their holdings on behalf of
their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time Beneficial Owners of the
Obligations may wish to take certain steps to augment transmission to them of notices of
significant events with respect to the Obligations, such as redemptions, tenders, defaults, and
proposed amendments to the security documents. Beneficial Owners of the Obligations may
wish to ascertain that the nominee holding the Obligations for their benefit has agreed to obtain
and transmit notices to Beneficial Owners, or in the alternative, Beneficial Owners may wish to
provide their names and addresses to the Registrar and request that copies of the notices be
provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Obligations within a maturity
are being redeemed, DTC's practice is to determine by lot the amount of the interest of each
Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede Co. (nor such other DTC nominee) will consent or vote with respect to
the Obligations unless authorized by a Direct Participant in accordance with DTC's procedures.
-3-
Under its usual procedures, DTC mails an Omnibus Proxy to the Issuer or Registrar as soon as
possible after the record date The Omnibus Proxy assigns Cede Co.'s consenting or voting
rights to those Direct Participants to whose accounts the Obligations are credited on the record
date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on the Obligations will be made to Cede Co. or such other
nominee as may be requested by an authorized representative of DTC. DTC's practice is to
credit Direct Participants' accounts, upon DTC's receipt of funds and corresponding detail
information from Issuer or Agent on the payable date in accordance with their respective
holdings shown on DTC's records Payments by Participants to Beneficial Owners will be
governed by standing instructions and customary practices, as is the case with securities held
for the accounts of customers in bearer form or registered in "street name," and will be the
responsibility of such Participant and not of DTC (nor its nominee), the Registrar, or the Issuer,
subject to any statutory or regulatory requirements as may be in effect from time to time
Payment of principal and interest to Cede Co. (or such other nominee as may be requested
by an authorized representative of DTC) is the responsibility of the Registrar, Issuer, or Agent
disbursement of such payments to Direct Participants will be the responsibility of DTC, and
disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and
Indirect Participants.
A Beneficial Owner shall give notice to elect to have its Obligations purchased or redeemed,
through its Direct Participant, to the nominee holding the Obligations, and shall effect delivery of
such Obligations by causing the Direct Participant to transfer the Direct Participant's interest in
the Obligations, on DTC's records, to the nominee holding the Obligations. The requirement for
physical delivery of the Obligations in connection with a purchase or redemption will be deemed
satisfied when the ownership rights in the Obligations are transferred by the Direct Participants
on DTC's records and followed by a book -entry credit of purchased or redeemed Obligations to
the nominee holding the Obligations.
DTC may discontinue providing its services as securities depository with respect to the
Obligations at any time by giving reasonable notice to the Registrar. Under such
circumstances, in the event that a successor secunties depository is not obtained, certificates
are required to be printed and delivered.
The Issuer may decide to discontinue use of the system of book -entry transfers through DTC
(or a successor securities depository) In that event, certificates will be printed and delivered.
The information in this section concerning DTC and DTC's book -entry system has been
obtained from sources that the Issuer believes to be reliable, but the Issuer takes no
responsibility for the accuracy thereof.
Authority and Purpose
THE REVENUE BONDS
The Revenue Bonds are being issued pursuant to Minnesota Statutes, Chapters 444 and 475.
The proceeds will be used to finance the acquisition and construction of a new water tower
within the City
-4-
The composition of the Revenue Bonds is as follows:
Security and Financing
Project Costs $2,939,230
Allowance for Discount Bidding 23,920
Costs of Issuance 26 850
Total Revenue Bonds $2,990,000
The Revenue Bonds are general obligations of the City for which the City pledges its full faith
and credit and power to levy direct general ad valorem taxes, In addition, the City pledges net
revenues of its water utility. The City covenants that it will charge rates sufficient for the
operation and maintenance of its water utility, and to make debt service payments on the
Revenue Bonds and on other outstanding general obligation bonds to which the net revenues of
the water utility are also pledged, a listing of which is found on page 11 of this Official
Statement. Net revenues of the City's water utility are expected to be sufficient to make the
August 1 interest payment due in the year of collection and the February 1 principal and interest
payment due in the following year. The City does not expect a general ad valorem tax levy to
be required for repayment of the Revenue Bonds.
Authority and Purpose
THE REFUNDING BONDS
The Refunding Bonds are being issued pursuant to Minnesota Statutes, Chapter 475.
Proceeds of the Refunding Bonds will be used to refund the February 1, 2007 through February
1, 2016 maturities (the "Refunded Maturities of the City's $1,780,000 General Obligation Fire
Station Bonds, Series 1996A, dated July 1, 1996 (the "Series 1996A Bonds The refunding is
being conducted to achieve interest cost savings.
The Bonds constitute a "current" refunding since the Refunded Maturities will be called within
90 days of settlement of the Bonds. The Refunded Maturities will be called and prepaid on
February 1, 2006 at a price of par plus accrued interest The City will make the February 1,
2006 principal and interest payment on the Series 1996A Bonds as originally scheduled.
Security and Financing
The Refunding Bonds are general obligations of the City for which the City pledges its full faith
and credit and power to levy direct general ad valorem taxes. The City will make its first levy for
the Refunding Bonds in 2006 for collection in 2007. The interest due August 1, 2006 and
principal and interest due February 1, 2007 will be paid from taxes previously levied for the
Series 1996A Bonds Thereafter, each year's levy, if collected in full, will be sufficient to pay
105% of the interest due August 1 in the year of collection and the principal and interest due
February 1 in the following year.
FUTURE FINANCING
The City does not anticipate any additional borrowing for at least the next 90 days.
-5-
LITIGATION
The City is not aware of any threatened or pending litigation affecting the validity of the Bonds
or the ability to meet its financial obligations.
LEGALITY
The Bonds are subject to approval as to certain matters by Briggs and Morgan, Professional
Association, of Saint Paul and 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 form set out
in Appendix I herein will be delivered at closing.
TAX EXEMPTION
At closing Briggs and Morgan, Professional Association, Bond Counsel, will render an opinion
that, at the time of their issuance and delivery to the original purchaser, under present federal
and State of Minnesota laws, regulations, rulings and decisions (which excludes any pending
legislation which may have a retroactive effect), the interest on each Bond is excluded from
gross income for purposes of United States income tax and is excluded, to the same extent, in
computing both gross income and taxable net income for purposes of State of Minnesota
income tax (other than Minnesota franchise taxes measured by income and imposed on
corporations and financial institutions), and that interest on the Bonds is not an item of tax
preference for purposes of computing the federal alternative minimum tax imposed on
individuals and corporations or the Minnesota alternative minimum tax applicable to individuals,
estates or trusts, provided that interest on the Bonds is subject to federal income taxation to the
extent it is included as part of adjusted current earnings for purposes of computing the
alternative minimum tax imposed on certain corporations No opinion will be expressed by
Bond Counsel regarding other federal or state tax consequences caused by the receipt or
accrual of interest on the Bonds or arising with respect to ownership of the Bonds Preservation
of the exclusion of interest on the Bonds from federal gross income and state gross and taxable
net income, however, depends upon compliance by the City with all requirements of the Internal
Revenue Code of 1986, as amended, (the "Code that must be satisfied subsequent to the
issuance of the Bonds in order that interest thereon be (or continue to be) excluded from
federal gross income and state gross and taxable net income
The City will covenant to comply with requirements necessary under the Code to establish and
maintain the Bonds as tax exempt under Section 103 thereof, including without limitation,
requirements relating to temporary periods for investments and limitations on amounts invested
at a yield greater than the yield on the Bonds.
OTHER FEDERAL 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
-6-
taxable year on certain obligations acquired after August 7, 1986, 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
For federal income tax purposes, financial institutions are unable to deduct any portion of the
interest expense allocable to the ownership of certain tax exempt obligations acquired after
August 7, 1986, including the Bonds but for the designation as Qualified Tax Exempt
Obligations. See "Bank- Qualified Tax Exempt Obligations" below.
General
The preceding is not a comprehensive list of all federal tax consequences which may arise from
the receipt or accrual of interest on the Bonds. The receipt or accrual of interest on the Bonds
may otherwise affect the federal income tax (or Minnesota income tax or franchise tax) liability
of the recipient based on the particular taxes to which the recipient is subject and the particular
tax status of other items of income or deductions. All prospective purchasers of the Bonds are
advised to consult their own tax advisors as to the tax consequences of, or tax considerations
for, purchasing or holding the Bonds
BANK QUALIFIED TAX- EXEMPT OBLIGATIONS
The City will designate the Bonds as "qualified tax exempt obligations" for purposes of
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the ability of
financial institutions to deduct from income for federal income tax purposes, interest expense
that is allocable to carrying and acquiring tax- exempt obligations. "Qualified tax- exempt
obligations" are treated as acquired by a financial institution before August 8, 1986. Interest
allocable to such obligations remains subject to the 20% disallowance under prior law.
-7-
RATINGS
Applications for ratings of the Bonds have been made to Moody's Investors Service "Moody's
99 Church Street, 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 ratings, if assigned, will continue for any given period of time, or that such
ratings will not be revised or withdrawn, if in the judgment of Moody's, circumstances so warrant. A
revision or withdrawal of the ratings may have an adverse effect on the market once of the Bonds.
FINANCIAL ADVISOR
The City has retained Springsted Incorporated, Public Sector Advisors, of St. Paul, Minnesota,
as financial advisor (the "Financial Advisor in connection with the issuance of the Bonds In
preparing the Official Statement, the Financial Advisor has relied upon governmental officials,
and other sources, who have access to relevant data to provide accurate information for the
Official Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to
independently verify the accuracy of such information. The Financial Advisor is not a public
accounting firm and has not been engaged by the City to compile, review, examine or audit any
information in the Official Statement in accordance with accounting standards. The Financial
Advisor is an independent advisory firm and is not engaged in the business of underwriting,
trading or distributing municipal securities or other public securities and therefore will not
participate in the underwriting of the Bonds.
CERTIFICATION
The City has authorized the distribution of this Official Statement for use in connection with the
initial sale of the Bonds. As of the date of the settlement of the Bonds, the Purchaser(s) will be
furnished with a certificate signed by the appropriate officers of the City The certificate will
state that as of the date of the Official Statement, the Official Statement did not and does not as
of the date of the certificate contain any untrue statement of material fact or omit to state a
material fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading.
-8-
CITY PROPERTY VALUES
2004 Indicated Market Value of Taxable Property: $1,838,234,211*
The indicated market value is calculated by dividing the City's 2004 taxable market value of
$1,606,616,700 by the 2004 sales ratio of 87.4% for the City as provided by the State Department of
Revenue.
2004 Taxable Net Tax Capacity: $18,028,538
2004 Net Tax Capacity $18,281,576
Less. Captured Tax Increment Tax Capacity (299,465)
Contribution to Fiscal Disparities (1,489,653)
Plus. Distribution from Fiscal Disparities 1,536.080
2004 Taxable Net Tax Capacity $18,028,538
2004 Taxable Net Tax Capacity by Class of Property
Residential Homestead $13,426,180 74.5%
Commercial /Industrial, Public
Utility and Railroad 3,534,145' 19.6
Agricultural 301,898 1.7
Apartments 297,944 1.6
Personal Property 468,371 2.6
Total $18,028,538 100.0%
Reflects adjustments for fiscal disparities and captured tax increment tax capacity.
Trend of Values
Indicated Taxable Taxable Tax
Market Value(a) Market Value Capacity(b)
2004 $1,838,234,211 $1,606,616,700 $18,028,538
2003 1, 588, 774, 651 1,366,346,200 15, 373, 855
2002 1,353, 935,798 1,153,553,300 13,132,139
2001 1,122,690,460 976,740,700 11,262,405
2000 959,718,481 846,471,700 14,047,202
(a) Calculated by dividing the county assessor's taxable market value by the sales ratio determined for
the City each year by the State Department of Revenue
lb) See Appendix Ill for an explanation of tax capacity and legislative changes in 2001 to the Minnesota
property tax laws. The decrease in taxable tax capacity in 2001 was attributable primarily to
reductions in property tax class rates.
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Ten of the Largest Taxpayers in the City
Taxpayer
Flint Hills Resources /Koch Refining
Xcel Energy
Clarel Corporation
Bigos- Rosemount LLC
(Cannon Equipment)
Webb Properties
Limerick Way LLC
Continental Nitrogen
Resources Corp.
CF Industries, Inc (Cenex)
Hidden Valley SPE, LLC
Gruett- Labriola Partnership
Total
Represents 15.2% of the City's 2004 taxable net tax capacity.
Legal Debt Limit
Debt Limit (2% of Taxable Market Value)
Less: Outstanding Net Debt Subject to Limit
Legal Net Debt Margin at August 2, 2005
General Obligation Debt Supported by Taxes(a)
Date Original
of Issue Amount
7 -1 -96
A2-1-01
6 -15 -05
6 -15 -05
11 -1 -05
Total
$1,780,000
725,000
2,630,000
1,535,000
1,120,000
Purpose
Manufacturing
Manufacturing
Townhouses
CITY INDEBTEDNESS
Fire Station
Community Center Refunding
Fire Station
Equipment
Fire Station Refunding
(the Refunding Bonds)
(a) These issues are subject to the statutory debt limit.
(b) Excludes the Refunded Maturities
Type of Business
Oil Refinery
Utility
Retail
Fertilizer Blending Plant Food
Fertilizer
Utility
Manufacturing
10
$32,132,334
(5,659,030)
$26,473,304
2004 Net
Tax Caoacity
$1,762,985
284,441
177,582
86,794
77,968
75,002
73,172
72,580
68,512
66,784
$2,745,820
Principal
Final Outstanding
Maturity As of 8 -2 -05
2-1-2006 80,000(b)
2 -1 -2013 600,000
2 -1 -2025 2,630,000
6 -1 -2010 1,535,000
2 -1 -2016 1.120.000
$5,965,000
General Obligation Debt Supported Primarily by Special Assessments
Date
of Issue
4 -1 -98
7 -1 -99
10 -1 -99
8 -15 -01
7 -1 -02
7 -1 -03
Total
General Obligation Port Authority Debt
Date Original
of Issue Amount Purpose
4 -1 -98 $2,405,000 Municipal Building Refunding
9 -1 -00 1,750,000 Business Park Infrastructure
Improvements
8 -15 -01 2,045,000 City Hall
7 -1-02 1,795,000 Highway 3 Enhancement
Total
(b)
(c)
(a) Debt service payments on this issue are made from a combination of certain special tax and general
fund levies.
This issue is being repaid from ad valorem tax levies.
This issue is being repaid from ad valorem taxes levied by the City.
(d) This issue is being repaid from a combination of tax levies, special assessments, and storm water
utility revenues
General Obligation Debt Supported by Revenues
Date
of Issue
7 -1 -96
10 -1 -99
9 -1 -00
8 -15 -01
12 -1 -01
7 -1 -02
7 -1 -03
11 -1 -05
Original
Amount
$2,010,000
3,715,000
4,395,000
1,325,000
3,395,000
1,945,000
Original
Amount
$1,035,000
855,000
1,160,000
1,140,000
805,000
1,195,000
1,170,000
2,990,000
Purpose
Local Improvements
Local Improvements
Local Improvements
Local Improvements
Local Improvements
Local Improvements
Purpose
Storm Water Revenue
Storm Water Revenue
Water Revenue
Storm Water Revenue
Storm Water Revenue Refunding
Water and Storm Water Revenue
Water Revenue
Water Revenue (the Revenue Bonds)
Principal
Final Outstanding
Maturity As of 8 -2 -05
2 -1 -2009 755,000
2 -1 -2011 1,515,000
2 -1 -2011 1,940,000
2 -1 -2012 970,000
2 -1 -2013 2,110,000
2 -1 -2014 1,735.000
$9,025,000
Principal
Final Outstanding
Maturity As of 8 -2 -05
2 -1 -2018 $2,145,000(a)
2 -1 -2011 1,170,000(
2 -1 -2022 1,875,000(c)
2 -1 -2013 1,380,000(d)
$6,570,000
Principal
Final Outstanding
Maturity As of 8 -2 -05
2 -1 -2012 575,000
2 -1 -2015 640,000
2 -1 -2016 950,000
2 -1 -2017 980,000
2 -1 -2008 425,000
2 -1 -2018 1,105,000
2 -1 -2014 1,065,000
2 -1 -2016 2,990,000
Total $8,730,000
Annual Calendar Year Debt Service Including These Issues and
Excluding the Refunded Maturities
G.O. Debt Supported
by Taxes
Principal Principal
Year Principal Interest(a) Principal Interest
2005 (at 8 -2) (Paid) 20,565.55 (Paid) (Paid)
2006 440,000 604,850.53 $2,105,000 2,419,633.75
2007 550,000 744,415.00 1,620,000 1,864,795.00
2008 575,000 752,227 50 1,615,000 1,798,152.50
2009 600,000 758,546 25 1,065,000 1,193,98250
2010 615,000 753,672.50 890,000 977,147 50
2011 300,000 422,870.00 900,000 948,475 00
2012 310,000 421,345.00 390,000 411,727 50
2013 320,000 419,273.75 245,000 255,506 25
2014 245,000 331,425.00 195,000 198,217.50
2015 255,000 331,76000
2016 265,000 331,550.00
2017 140,000 198,515.00
2018 145,000 197,815 00
2019 150,000 196,915 00
2020 155,000 195,815.00
2021 165,000 199,332.50
2022 170,000 197,465.00
2023 180,000 200,267.50
2024 190,000 202,470.00
2025 195,000 199,192.50
Total $5,965,000( $7,680,288.58 $9,025,000 $10,067,637.50
(a) Includes the Refunding Bonds at an assumed average annual interest rate of 3.55% and excludes the
Refunded Maturities.
70 6% of this debt will be retired within ten years.
12
G.O. Debt Supported
Primarily by
Special Assessments
Annual Calendar Year Debt Service Including These Issues and
Excluding the Refunded Maturities (continued)
Year
2005 (at 8 -2)
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
G.O. Debt Supported
G 0 Port Authority Debt by Revenues
Principal
Principal Interest
(Paid) (Paid)
585,000 869,420.02
615,000 875,443 77
635,000 869,603.77
580,000 788,643.77
605,000 787,561.27
635,000 789,447.52
435,000 565,053.14
455,000 565,125.01
260,000 353,698 13
270,000 350,867.50
285,000 352,230 00
305,000 357,587.50
315,000 352,113.75
135,000 160,990.00
145,000 164,125.00
150,000 161,750.00
160,000 164,000.00
Total $6,570,000( $8,527,660.15
(a) Includes the Revenue Bonds at an assumed average annual interest rate of 3.55
(b) 77 2% of this debt will be retired within ten years.
(c) 88.8% of this debt will be retired within ten years.
Lease Purchase Agreements
The City entered into a lease- purchase agreement dated May 15, 1996 for a fire truck The
principal amount of the lease is $476,445 with annual payments of $64,896. The final payment
will be due June 1, 2006.
Summary of Direct Debt Including These Issues and
Excluding the Refunded Maturities
13
Gross
Debt
Principal
(Paid)
565,000
820,000
875,000
745,000
780,000
815,000
845,000
785,000
815,000
710,000
660,000
205,000
110,000
1
1
1
1
1
Principal
Interest(a)
(Paid)
874,110.66
,130,038 76
,154,721.26
995,166.26
,001,511.26
,005,291.26
,001,788.76
908,855.01
906,432 51
769,075.01
689,073.76
214,869.38
112,530.00
$8,730,000(0 $10,763,463.89
Less: Debt
Service Funds'
G.O Debt Supported by Taxes $5,965,000 (305,970)
G.O. Debt Supported by Special
Assessments 9,025,000 (4,508,262)
G.O. Port Authority Debt 6,570,000 (2,450,108)
G.O. Debt Supported by Revenues 8,730,000 (1,415,833)
Debt service funds are as of July 31, 2005 and include money to pay both principal and interest
Net
Direct Debt
$5,659,030
4,516,738
4,119,892
7,314,167
Indirect General Obligation Debt
Taxing Unit(a)
Dakota County
ISD 196 (Rosemount
Apple Valley- Eagan)
ISD 199 (Inver
Grove Pine Bend)
ISD 200 (Hastings)
Metropolitan Council
Metropolitan Transit Dist.
Total
(a)
(b)
(c)
(d)
2004 Taxable
Net Tax Capacity
372,381,645
140,066,496
24,624,172
25,075,067
2,681,665,951
2,304,847,503
G O Debt
As of 8- 2 -05(b)
83,795,000
157,909,669(c)
40,255,000
44,890,000
35,750,000(d)
179,145,000
Debt Applicable to
Tax Capacity in City
Percent Amount
4.8% 4,022,160
12.1 19,107,070
4.5 1,811,475
0.1 44,890
0.7 250,250
0.8 1,433,160
$26,669,005
Only those units with debt outstanding are shown here.
Excludes debt supported by revenues and tax and aid anticipation debt.
Includes $16,840,000 of annual appropriation lease revenue debt.
Does not include outstanding general obligation debt supported by sewer revenues, 911 user fees or
housing rental payments Includes certificates of participation.
Debt Ratios Including These Issues
14
G.O. Net
Direct Debt
G.O. Indirect
Net Direct Debt
To 2004 Indicated Market Value ($1,838,234,211) 0.78% 2.23%
Per Capita (19,907 2004 City Estimate) $718 $2,058
Excludes general obligation debt supported by revenues and lease purchase agreements.
Tax Capacity Rates
(c)
CITY TAX RATES, LEVIES AND COLLECTIONS
2004/05
For
2000/01 2001/02 2002/03 2003/04 Total Debt Only
Dakota County(a) 25.320% 33.102% 32 463% 30.300% 28.267% -0-
City of Rosemount(b) 36.553 59.546 57.123 52.368 46.041 6.951%
ISD 196(c) 53.249 28 883 27.638 26.074 26.251 13.312
Special Districts(d) 6 378 5 021 5 563 5.128 5.216 1 742
Total 121 500% 126 552% 122.787% 113.870% 105.775% 22.005%
(a) Dakota County also has a 2004/05 tax rate of 0.00666% spread on the market value of property in
support of debt service
(b) The City also has a 2004/05 tax rate of 0 00972% spread on the market value of property in support of
debt service on general obligation fire station bonds.
Independent School Distnct 196 (Rosemount -Apple Valley- Eagan) also has a 2004/05 tax rate of
010862% spread on the market value of property in support of an excess operating levy.
(d) Special districts include Metropolitan Council, Regional Transit District, Mosquito Control, Dakota
County Community Development Authority, Dakota County Light Rail and Vermillion River Watershed
Distract
NOTE: Taxes are determined by multiplying the net tax capacity by the tax capacity rate, expressed as
a percentage (see Appendix Ill).
Tax Collections for the City
Net Collected During Collected
Amount Collection Year As of 3 -31 -05
Levy /Collect of Levy Amount Percent Amount Percent
2004/05 $7,746,600 (In Process of Collection)
2003/04 7,032,501 $6,952,283 98.9% $6,976,259 99.2%
2002/03 6,469,801 6,384,169 98.7 6,452,770 99 7
2001/02 5,730,975 5,675,507 99.0 5,722,467 99.9
2000/01 4,716,935 4,658,485 98.8 4,713,779 99.9
The net levy excludes state aid for property tax relief and fiscal dispanties, if applicable The net levy
is the basis for computing tax capacity rates.
15
J
Fund
General
Special Revenue
Port Authority
Debt Service:
Tax Supported
Assessment Supported
Port Authority Supported
General Obligation Revenue Supported
Construction
Water, Sewer and Storm Water
Arena
Total
FUNDS ON HAND
As of July 31, 2005
CITY INVESTMENTS
16
Cash and Investments
5,937,346
4,482,895
221,350
305,970
4,508,262
2,450,108
1,415,833
6,910,515
16,693,176
5,376
$42,930,831
City funds are invested in accordance with Minnesota Statutes, Section 118A and the City's
investment policy which is more restrictive than State statutes. The City investment portfolio is
managed in a manner to attain a market rate of return while preserving and protecting the capital
of the overall portfolio The Finance Director or the City Administrator is responsible for investing
all funds, including making investment decisions on a daily basis and monitoring the portfolio.
Pursuant to the City's investment policy the City is authorized to invest in the following:
1. Governmental Securities: Instruments such as bonds, notes, bills, mortgages and other
securities which are direct obligations of the federal government or its agencies, with the
principal fully guaranteed by the U S government or its agencies. The City will not
invest in any mortgage or mortgage related security unless a return of principal is
completely guaranteed by a federal entity.
2. Certificate of Deposit
3. Repurchase Agreement.
4. Reverse Repurchase Agreement.
5. Prime Commercial Paper.
6. Any security which is a general obligation of the State of Minnesota or any of its
municipalities
7. Bankers acceptances of United States banks eligible for purchase by the Federal
Reserve System.
Collateralization is required on two types of investments, certificates of deposit and repurchase
agreements. In order to anticipate market changes and provide a level of security for all funds,
the collateralization level is 110 percent 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
i
of the portfolio, meaning longer than five years, may not exceed 35% of the total funds in the
portfolio. This is done to reduce overall market risk of rates changing.
As of July 31, 2005 the City had a total of $41,281,647 invested funds as follows:
Type of Security
Money Market Savings
Certificates of Deposit
Certificates of Deposit
Certificates of Deposit
Government Asset Backed Securities
Government Asset Backed Securities
Total
Length of Investment
N/A
Less than 12 months
One to ten years
Over ten years
Ten years or less
Over ten years
GENERAL INFORMATION CONCERNING THE CITY
Amount Invested
as of 7 -31 -05
505,278
27,085,681
1,152,000
384,000
11,084,010
1,070,678
$41,281,647
The City of Rosemount, located in northern Dakota County, is a southern suburb of the
Minneapolis /Saint Paul metropolitan area The City encompasses an area of 22,560 acres and
has a 2000 U.S. Census count of 14,619, a 69.6% increase from the City's 1990 Census count
of 8,622 The City estimates its 2004 population to be 19,907, a 36% increase over the 2000
U S. Census.
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 /Koch Petroleum Group, CF Industries, Continental Nitrogen,
Endres Processing, SKB (industrial waste containment facility) and Spectro Alloys Mid
Amencan 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 refinery at Pine Bend.
Flint Hills is a leading producer of petroleum products in Minnesota converting 290,000 barrels
of crude oil into gasoline each day. This Rosemount company employs 742 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.
17
Major Employers
Employer
Independent School District 196
Flint Hills Resources
Intermediate School District 917
Dakota County Technical College
Cannon Equipment Company
Spectro Alloys Corp
Greif Brothers Corporation
Endres Processing Ltd.
City of Rosemount
Astro Plastics
Dakota County HRA
Aquila, Inc
Continental Nitrogen Resources Corp.
CF Industries, Inc. (Cenex)
Rayfo Inc
(a) Represents total employment, not Just within the City of Rosemount.
(b) Excludes over 160 part-time and seasonal employees.
Source. Telephone survey of individual employers, May 2005
Labor Force Data
Dakota County
Minneapolis /St. Paul MSA
Minnesota
Product/Service
July 2005
Civilian Unemployment
Labor Force Rate
234,174
1,875,522
2,987,331
Education
Crude Oil
Education
Education
Manufacturing of Metal Parts
Aluminum Alloys
Multiwall Bags
Livestock Feed
Government
Plastics Manufacturing
Government
Natural Gas
Chemicals
Warehousing /Freight Terminal
Industrial Refuse Containers
3.0%
3.3
3.4
Approximate
Number
of Employees
4,000(a)
742
360
250
160
125
100
85
76(b)
60
60
40
37
35
35
July 2004
Civilian Unemployment
Labor Force Rate
233,314
1,871,087
2,992,842
4.1%
4.5
4.5
Source: Minnesota Department of Employment and Economic Development. 2005 data are preliminary.
Building Permits Issued by the City
y Total Permits
2005 (to 7 -31)
2004
2003
2002
2001
2000
1999
1998
1997
1996
Number Value
632
1,158
1,128
1,398
1,009
862
1,021
739
601
655
73,178,418
126,348,047
96,872,709
82,398,820
82,897,167
52,125,217
50,950,727
31,939,355
24,173,652
28,440,950
18
New Single
Number
242
551
440
330
304
285
357
190
99
130
Family Homes
Value
49,839,967
110,674,682
87,119,479
61,571,739
60,458,504
39,074,424
40,780,200
21,856,164
10,942,651
13,941,688
k
Recent and Proposed Development
Residential activity in the City continued to grow in 2004, with a 25% increase over the prior
year in permits issued for new dwelling units. Of the 551 permits issued, 56% of the new
construction was for single family detached housing. Planning approvals by the City have
created an inventory of land is expected to generate more than 400 housing starts annually for
the next few years.
From 2000 through 2004, an average of almost $72 million in new construction value was
added per year. During this same period, the City added over 1,910 single family homes to its
housing stock (an average of 382 homes per year).
Some of the larger housing projects currently being developed or recently completed are as
follows:
Development/Developer
Biscayne Pointe 4 Addition /Heritage
Development
Biscayne Pointe 5 Addition /Heritage
Development
Biscayne Pointe North /Giles Property
Carrousel Plaza Townhomes /Heritage
Development
Connemara Crossing/
Basic Builders, Inc.
Crosscroft 2 Addition /CPDC
Drumcliffe /CPDC
Evermoor 3 Addition /CPDC
Evermoor 4 Addition/
CPDC
Evermoor Bards Crossing /CPDC
Evermoor Crosscroft/CPDC
Geronime Pond 2 Addition /Heritage
Development
GlenRose of Rosemount/Dean Johnson
Homes
Glendalough /Lundgren
Glendalough 4 Addition /Lundgren Brothers
Glendalough 5 Addition /Lundgren Brothers
Glendalough 6 Addition /Lundgren
Harmony /CPDC
Harmony 2 Addition /CPDC
Harmony 3 Addition /CPDC
Meadows of Bloomfield 3rd Addition/
Centex Homes
Meadows of Bloomfield /Centex Homes
Rosewood Village /Progress Land
Rosewood Village 2 Addition/
Progress Land Co.
Uitenbogerd
Housing
Single Family
Single Family
Single Family
Townhomes
Single Family
Single Family
Single Family
Single Family
Single Family
Multi Family
Single Family
Single Family
Multi Family
Single Family
Single Family
Single Family
Multi Family
Multi Family
Single Family
19
Units
Approved
Remaining
lots as of
8 -3 -05
73 3
31 1
22 5
38 5
44 39
23 13
47 1
30 10
97 21
110 55
18 7
52 4
76 76
46 5
19 3
35 35
42 42
176 121
81 81
17 17
Single Family 118 118
Single Family/Townhomes 236 82
Single Family/Townhomes 43 12
Single FamilylTownhomes 56 47
Single Family 4 1
The City Council approved a revitalization plan for the historic downtown and selected an initial
development team in 2004. A tax increment financing district was created in 2004 to permit
alternative financing sources for portions of the redevelopment process, if needed. The first
project construction is expected to begin in spring 2006. Also planned for the district is a
residential development (Harmony Addition) including 600 single and multi family units on the
redeveloped site of the Brockway glass factory, which closed in the mid -1980s
The City also negotiated the purchase of land from the Church of St. Joseph at the edge of
downtown The property will serve as the site of a branch of the Dakota County Library
In 2004, construction began on a 48,000 square -foot retail development. The retail center
includes a 15,000 square -foot grocery store. A 6,400 square -foot restaurant site is also
planned. The City Council also approved a Comprehensive Guide Plan amendment that
allotted 32 acres of developable commercial land at County Road 42 and Business Parkway
An Applebee's restaurant was constructed at County Road 42 and Cimarron Avenue.
Industrial valuations increased by $2 million in 2004, primarily due to upgrades to the Flint Hills
refinery. The new construction will meet recent air emission standards and increase production
at the plant
Financial Institutions
Full service banking is provided by the First State Bank of Rosemount and Rosemount National
Bank, located in the City As of December 31, 2004, the two banks reported deposits of
$54,234,000 and $46,371,000, respectively. Branches of TCF Bank and Vermillion State Bank
are also located in the City.
Source Federal Deposit Insurance Corporation website.
Education
The major portion of the City is part of Independent School District 196, headquartered in
Rosemount The District's enrollment for the 2004/05 school year was approximately 28,367
students in grades kindergarten through twelve. The District is one of the fastest growing school
districts in the State, and 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 Distnct consists of 18
elementary schools, six middle schools, and four senior high schools Of these schools, two
elementary schools, one junior high, and one senior high are located in the City of Rosemount.
Small portions of the City are located in Independent School District 199 (Inver Grove -Pine
Bend) and Independent School District 200 (Hastings).
t
The Dakota County Technical College is also located in the City. The Technical College,
located on a 96 -acre site, opened in 1973. The Technical College has an enrollment of
approximately 2,000 post- secondary students. In addition, the Technical College offers an
extensive adult education program.
20
Services
GOVERNMENTAL ORGANIZATION AND SERVICES
Organization
Rosemount was established as a municipal corporation in 1858, and became a statutory City in
1974. The City has a Mayor Council form of govemment, with the four Council members being
elected to overlapping four -year terms of office. The present City Council is listed below.
Expiration of Term
William H. Droste Mayor December3l, 2006
Mark DeBettignies Council Member December 31, 2006
Kimberly Shoe Corrigan Council Member December 31, 2006
Michael Baxter Council Member December 31, 2008
Phillip Sterner Council Member December31, 2008
The City's chief administrative officer is the City Administrator, who is appointed by and serves
at the discretion of the City Council. Mr. James D. Verbrugge was appointed to the position of
City Administrator in March 2003 Prior to that, Mr. Verbrugge served as Assistant City
Administrator in Eagan, Minnesota since 1998, 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 of
1991
Growth and development of the City is guided by a Comprehensive Land Use Plan which was
commissioned soon after the consolidation of the former Village and Town of Rosemount in
1971. The Plan outlines long -range zoning and development policy of the City, and is designed
to encourage and promote orderly development and growth which will perpetuate a sound tax
base The last major update of this Plan was completed in 1999 and covers the next 25 -year
period
Police protection for the City is provided by 19 full -time officers, and four other police personnel.
Fire protection is provided by 37 trained volunteers. The City has a class 5 insurance rating.
The City completed an expansion of its public works facility in 1999. The expansion was funded
by a 20 -year internally funded lease- purchase agreement, effective January 20, 1999, in the
amount of $548,000.
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 six wells with three water
towers having a total storage capacity of 2,000,000 gallons. The maximum pumping capacity is
6,000,000 gallons per day with an average demand of 2,007,841 gallons pumped daily.
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. Gore 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.
21
Interceptor sewer lines and wastewater treatment plants in the seven- county metropolitan area,
of which the City is a part, are under the jurisdiction of the Metropolitan Council Environmental
Services "MCES MCES finances its operations through user charges based on usage. The
City is responsible for the construction and maintenance of sewer laterals.
Employee Pensions
All full -time and certain part-time employees of the City of Rosemount are covered by defined
benefit pension plans administered by the Public Employees Retirement Association of
Minnesota (PERA) PERA administers the Public Employees Retirement Fund (PERF) and the
Public Employees Police and Fire Fund PEPFF) which are cost sharing multiple- employer
public employees retirement plans. PERF 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 PERF belong to the Coordinated Plan All police
officers, fire fighters and peace officers who qualify for membership by statute are covered by
the PEPFF. For the year ended December 31, 2004, the City's contribution to PERA was
$283,655.
Current General Fund Budget
General Fund Revenues:
General Property Taxes $4,839,469 $4,884,614 $5,083,300
Intergovernmental 456,889 470,978 484,000
Licenses and Permits 618,400 1,295,164 750,200
Fines and Forfeits 90,000 96,902 90,000
Charges for Services 1,085,200 1,473,581 1,229,900
Miscellaneous Revenues 233,500 113,325 253,700
Investment Income 82,442 141,977 101,500
Transfers In 3,500 11,677 3,500
Total General Fund Revenues $7,409,400 $8,488,218 $7,996,100
General Fund Expenditures:
General Government $1,885,600 $2,105,126 $2,161,700
Public Safety 2,272,500 2,233,232 2,430,500
Public Works 2,302,500 2,169,602 2,389,200
Parks and Recreation 948,800 980,841 1,014,700
Transfer Out -0- 590,000 -0-
Total General Fund Expenditures
2004 2004 2005
Adopted Budget Actual Adopted Budget
$7,409,400 $8,078,801 $7,996,100
Action taken by the 2003 Minnesota Legislature provided for total reductions in City Aid
(formerly titled Local Government Aid and Market Value Homestead Credit) of $142,000,000 in
collection year 2003 and $170,000,000 in collection year 2004. The effect of these changes to
the City of Rosemount was a reduction in aid of approximately $752,472 in each 2003 and
2004 Minnesota law allowed the City to levy for 60% of the lost aid during the levy cycle
payable in 2004
For 2005, the Market Value Homestead Credit (MVHC) was supposed to be put back in place.
This did not happen as the Legislature cut the MVHC again for payable 2005 and 2006. For the
City, the reduction will be approximately $350,000 annually The level of aid reductions does
not pose a significant problem to the City and in the opinion of management will not affect
ongoing operations.
22
BRIGGS AND M ORGAN
PROFESSIONAL ASSOCIATION
PROPOSED FORMS OF LEGAL OPINION
$2,990,000
GENERAL OBLIGATION WATER REVENUE BONDS,
SERIES 2005C
CITY OF ROSEMOUNT
DAKOTA COUNTY
MLNN'ESOTA
1 -1
APPENDIX I
2200 FIRST NATIONAL BANK BUILDING
332 MINNESOTA STREET
SAINT PAUL, MINNESOTA 55101
TELEPHONE (651) 808 -6600
FACI_MIILE (651) 808 -6450
WWWBRIGGS C M
We have acted as bond counsel in connection with the issuance by the City of
Rosemount, Dakota County, Minnesota (the "Issuer of its $2,990,000 General Obligation
Water Revenue Bonds, Series 2005C, bearing a date of onginal issue of November 1, 2005 (the
"Bonds") We have examined the law and such certified proceedings and other documents as we
deem necessary to render this opinion.
We have not been engaged or undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offenng material relating to the Bonds, and we
express no opinion relating thereto.
As to questions of fact material to our opinion, we have relied upon the certified
proceedings and other certifications of public officials furnished to us without undertaking to
venfy the same by independent investigation.
Based upon such examinations, and assuming the authenticity of all documents submitted
to us as originals, the conformity to ongmal documents of all documents submitted to us as
certified or photostatic copies and the authenticity of the originals of such documents, and the
accuracy of the statements of fact contained in such documents, and based upon present
Minnesota and federal laws (which excludes any pending legislation which may have a
retroactive effect on or before the date hereof), regulations, rulings and decisions, it is our
opinion that.
(1) The proceedings show lawful authority for the issuance of the Bonds according to
their terms under the Constitution and laws of the State of Minnesota now in force.
(2) The Bonds are valid and binding general obligations of the Issuer and all of the
taxable property within the Issuer's jurisdiction is subject to the levy of an ad valorem tax to pay
the same without limitation as to rate or amount; provided that the enforceability (but not the
validity) of the Bonds and the pledge of taxes for the payment of the pnncipal and interest
thereon is subject to the exercise of judicial discretion in accordance with general principles of
equity, to the constitutional powers of the United States of Amenca and to bankruptcy,
insolvency, reorganization, moratorium and other similar laws affecting creditors' rights
heretofore or hereafter enacted.
(3) At the time of the issuance and delivery of the Bonds to the original purchaser, the
interest on the Bonds is excluded from gross income for United States income tax purposes and
is excluded, to the same extent, from both gross income and taxable net income for State of
Minnesota income tax purposes (other than Minnesota franchise taxes measured by income and
imposed on corporations and financial institutions), and is not an item of tax preference for
purposes of the federal alternative minimum tax imposed on individuals and corporations or the
Minnesota alternative minimum tax applicable to individuals, estates or trusts; it should be noted,
however, that for the purpose of computing the federal alternative minimum tax imposed on
corporations, such interest is taken into account in determining adjusted current earnings. The
opinions set forth in the preceding sentence are subject to the condition that the Issuer comply
with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied
subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be,
excluded from gross income for federal income tax purposes and from both gross income and
taxable net income for State of Minnesota income tax purposes. Failure to comply with certain
of such requirements may cause the inclusion of interest on the Bonds in gross income and
taxable net income retroactive to the date of issuance of the Bonds.
We express no opinion regarding other state or federal tax consequences caused by the
receipt or accrual of interest on the Bonds or ansing with respect to ownership of the Bonds.
Dated at Saint Paul, Minnesota, this day of November, 2005.
Professional Association
1 -2
1
BRIGGS AND M ORGAN
PROFESSIONAL ASSOCIATION
S1,120,000
GENERAL OBLIGATION FIRE STATION REFUNDING BONDS,
SERIES 2005D
CITY OF ROSEMOUNT
DAKOTA COUNTY
MINNESOTA
We have acted as bond counsel in connection with the issuance by the City of
Rosemount, Dakota County, Minnesota (the "Issuer of its S1,120,000 General Obligation Fire
Station Refunding Bonds, Senes 2005D, bearing a date of original issue of November 1, 2005
(the "Bonds We have examined the law and such certified proceedings and other documents
as we deem necessary to render this opinion.
We have not been engaged or undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offenng material relating to the Bonds, and we
express no opinion relating thereto.
As to questions of fact matenal to our opinion, we have relied upon the certified
proceedings and other certifications of public officials furnished to us without undertaking to
verify the same by independent investigation.
Based upon such examinations, and assuming the authenticity of all documents submitted
to us as originals, the conformity to original documents of all documents submitted to us as
certified or photostatic copies and the authenticity of the originals of such documents, and the
accuracy of the statements of fact contained in such documents, and based upon present
Minnesota and federal laws (which excludes any pending legislation which may have a
retroactive effect on or before the date hereof), regulations, rulings and decisions, it is our
opinion that:
(1) The proceedings show lawful authonty for the issuance of the Bonds according to
their terms under the Constitution and laws of the State of Minnesota now in force.
(2) The Bonds are valid and binding general obligations of the Issuer and all of the
taxable property within the Issuer's jurisdiction is subject to the levy of an ad valorem tax to pay
the same without limitation as to rate or amount, provided that the enforceability (but not the
validity) of the Bonds and the pledge of taxes for the payment of the principal and interest
thereon is subject to the exercise of judicial discretion in accordance with general principles of
1 -3
2200 FIRST NATIONAL BANK BUILDING
332 MINNESOTA STREET
SAINT PAUL, MINNESOTA 55101
TELEPHONE (651) 808 -6600
FACSIMILE (651) 808 -6450
WWW.BRIGGS COM
equity, to the constitutional powers of the United States of America and to bankruptcy,
insolvency, reorganization, moratorium and other similar laws affecting creditors' rights
heretofore or hereafter enacted.
(3) At the time of the issuance and delivery of the Bonds to the original purchaser, the
interest on the Bonds is excluded from gross income for United States income tax purposes and
is excluded, to the same extent, from both gross income and taxable net income for State of
Minnesota income tax purposes (other than Minnesota franchise taxes measured by income and
imposed on corporations and financial institutions), and is not an item of tax preference for
purposes of the federal alternative minimum tax imposed on individuals and corporations or the
Minnesota alternative minimum tax applicable to individuals, estates or trusts; it should be noted,
however, that for the purpose of computing the federal alternative minimum tax imposed on
corporations, such interest is taken into account in determining adjusted current earnings The
opinions set forth in the preceding sentence are subject to the condition that the Issuer comply
with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied
subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be,
excluded from gross income for federal income tax purposes and from both gross income and
taxable net income for State of Minnesota income tax purposes. Failure to comply with certain
of such requirements may cause the inclusion of interest on the Bonds in gross income and
taxable net income retroactive to the date of issuance of the Bonds.
We express no opinion 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.
Dated at Saint Paul, Minnesota, this day of November, 2005.
Professional Association
1-4
CONTINUING DISCLOSURE UNDERTAKING
APPENDIX II
This Continuing Disclosure Undertaking (the "Disclosure Undertaking is executed and
delivered by the City of Rosemount, Minnesota (the "Issuer in connection with the issuance of
$2,990,000 General Obligation Water Revenue Bonds, Senes 2005C and $1,120,000 General
Obligation Fire Station Refunding Bonds, Senes 2005D (the "Bonds The Bonds are being
issued pursuant to a Resolution adopted October 4, 2005 (the "Resolution Pursuant to the
Resolution and this Undertaking, the Issuer covenants and agrees as follows:
Purpose of the Disclosure Undertaking. This Disclosure Undertaking is being executed
and delivered by the Issuer for the benefit of the Owners and in order to assist the Participating
Underwriters in complying with SEC Rule 15c2- 12(b)(5)
Definitions. In addition to the definitions set forth in the Resolution, which apply to any
capitalized term used in this Disclosure Undertaking unless otherwise defined in this Section, the
following capitalized terms shall have the following meanings:
"Annual Report" shall mean any annual financial information provided by the Issuer
pursuant to, and as descnbed in, Sections 3 and 4 of this Disclosure Undertaking.
"Audited Financial Statements" shall mean the financial statements of the Issuer audited
annually by an independent certified public accounting firm, prepared pursuant to generally
accepted accounting principles promulgated by the Financial Accounting Standards Board,
modified by governmental accounting standards promulgated by the Government Accounting
Standards Board.
"Dissemination Agent" shall mean such party from time to time designated in wnting by
the Issuer to act as information dissemination agent and which has filed with the Issuer a wntten
acceptance of such designation.
"Fiscal Year" shall be the fiscal year of the Issuer.
"Governing Body" shall, with respect to the Bonds, have the meaning given that term in
Minnesota Statutes, Section 475.51, Subdivision 9.
"MSRB" shall mean the Municipal Securities Rulemaking Board.
"National Repository" shall mean any Nationally Recognized Municipal Securities
Information Repository for purposes of the Rule. The National Repositories as of the date of
execution of this Undertaking are as Listed on Exhibit A.
"Occurrence(s)" shall mean any of the events listed in Section 5.A. of this Disclosure
Undertaking.
"Official Statement" shall be the Official Statement dated September 20, 2005, prepared
in connection with the Bonds.
"Owners" shall mean the registered holders and, if not the same, the beneficial owners of
any Bonds.
"Participating Underwriter" shall mean any of the original underwriters of the Bonds
required to comply with the Rule in connection with offering of the Bonds.
"Repository" shall mean each National Repository and each State Depository.
"Resolution" shall mean the resolution or resolutions adopted by the Governing Body of
the Issuer providing for, and authonzing the issuance of, the Bonds.
"Rule" shall mean Rule 15c2- 12(b)(5) adopted by the Securities and Exchange
Commission under the Secunties Exchange Act of 1934, as the same maybe amended from time
to time or interpreted by the Secunties and Exchange Commission.
"State" shall mean the State of Minnesota.
"State Depository" shall mean any public or pnvate repository or entity designated by the
State as a state depository for the purpose of the Rule. As of the date of this Disclosure
Undertaking, there is no State Depository in Minnesota.
Provision of Annual Reports.
Beginning in connection with the Fiscal Year ending on December 31, 2005, the
Issuer shall, or shall cause the Dissemination Agent to, as soon as available, but in any event not
later than December 31, 2006, and by December 31 of each year thereafter, provide to each
Repository an Annual Report which is consistent with the requirements of Section 4 of this
Disclosure Undertaking.
If the Issuer is unable to provide to the Repositories an Annual Report by the date
required in subsection A, the Issuer shall send a notice of such delay and estimated date of
delivery to each Repository or to the MSRB and to the State Depository, if any.
Any filing under this Disclosure Undertaking may be made solely by transmitting
such filing to the Texas Municipal Advisory Council (the "MAC as provided at
/http: /www disclosureusa org unless the United States Securities and Exchange Commission has
withdrawn the interpretive advice in its letter to the MAC dated September 7, 2004.
Content and Format of Annual Reports. The Issuer's Annual Report shall contain or
incorporate by reference the financial information and operating data pertaining to the Issuer
listed below as of the end of the preceding Fiscal Year. The Annual Report may be submitted to
each Repository as a single document or as separate documents comprising a package, and may
cross reference other mformation as provided in this Disclosure Undertaking.
The following financial information and operating data shall be supplied:
an update of the type of information contained in the Official Statement under the
caption CITY PROPERTY VALUES; CITY INDEBTEDNESS; and CITY TAX
RATES, LEVIES AND COLLECTIONS;
11 -2
Audited Financial Statements of the Issuer. The Audited Financial Statements of
the Issuer may be submitted to each Repository separately from the balance of the Annual
Report. In the event Audited Financial Statements of the Issuer are not available on or
before the date for filing the Annual Report with the appropnate Repositories as set forth
in Section 3.A. above, unaudited financial statements shall be provided as part of the
Annual Report. The accounting principles pursuant to which the financial statements will
be prepared will be pursuant to generally accepted accounting principles promulgated by
the Financial Accounting Standards Board, as such principles are modified by the
governmental accounting standards promulgated by the Government Accounting
Standards Board, as in effect from time to time. If Audited Financial Statements are not
provided because they are not available on or before the date for filing the Annual Report,
the Issuer shall promptly provide them to the Repositories when available.
Reporting of Significant Events.
This Section 5 shall govern the giving of notices of the occurrence of any of the
following events with respect to the Bonds, if matenal:
principal and interest payment delinquency;
non payment related defaults;
unscheduled draws on debt service reserves reflecting financial difficulties;
unscheduled draws on credit enhancements reflecting financial difficulties;
substitution of credit or liquidity providers, or their failure to perform;
adverse tax opinions or events affecting the tax- exempt status of the security;
modifications to rights of security holders;
Bond calls;
defeasances;
release, substitution or sale of property securing repayment of the Bonds; and
ratmg changes.
Whenever an event listed in Section 5.A. above has occurred, the Issuer shall as
soon as possible determine if such event would constitute material information for Owners of
Bonds If knowledge of the Occurrence would be material, the Issuer shall promptly file a notice
of such Occurrence with each National Repository or the MSRB and with the State Depository, if
any.
The Issuer agrees to provide or cause to be provided, in a timely manner, to each
National Repository or the MSRB and to the State Depository, if any, notice of a failure by the
Issuer to provide the Annual Reports descnbed in Section 4.
Termination of Reporting Obligation. The Issuer's obligations under this Disclosure
Undertaking shall terminate upon the legal defeasance, pnor redemption or payment in full of all
of the Bonds.
11 -3
Dissemination Agent The Issuer may, from time to time, appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Disclosure Undertaking,
and may discharge any such Agent, with or without appointing a successor Dissemination Agent.
Amendment: Waiver. Notwithstanding any other provision of this Disclosure
Undertaking, the Issuer may amend this Disclosure Undertaking, and any provision of this
Disclosure Undertaking may be waived, if (a) a change in law or change in the ordinary busyness
or operation of the Issuer has occurred, (b) such amendment or waiver would not, in and of itself,
cause the undertakings herein to violate the Rule if such amendment or waiver had been effective
on the date hereof but taking into account any subsequent change in or official interpretation of
the Rule, and (c) such amendment or waiver is supported by an opinion of counsel expert in
federal securities laws to the effect that such amendment or waiver would not materially impair
the interests of Owners.
Additional Information Nothing in this Disclosure Undertaking shall be deemed to
prevent the Issuer from disseminating any other information, using the means of dissemination
set forth in this Disclosure Undertaking or any other means of communication, or including any
other information in any Annual Report or notice of an Occurrence, in addition to that which is
required by this Disclosure Undertaking. If the Issuer chooses to include any information in any
Annual Report or notice of an Occurrence in addition to that which is specifically required by
this Disclosure Undertaking, the Issuer shall have no obligation under this Disclosure
Undertaking to update such information or include it in any future Annual Report or notice of an
Occurrence.
Default. In the event of a failure of the Issuer to provide information required by this
Disclosure Undertaking, any Owner 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 to provide information under this Disclosure Undertaking. A default
under this Disclosure Undertaking shall not be deemed an Event of Default under the Resolution,
and the sole remedy under this Disclosure Undertaking in the event of any failure of the Issuer to
comply with this Disclosure Undertaking shall be an action to compel performance.
Beneficianes. This Disclosure Undertalcing shall inure solely to the benefit of the
Issuer, the Participating Underwriters and Owners from time to time of the Bonds, and shall
create no rights in any other person or entity.
Reserved Rights. The Issuer reserves the nght to discontinue providing any
information required under the Rule if a final determination should be made by a court of
eompetent jurisdiction that the Rule is invalid or otherwise unlawful or, subject to the provisions
of Section 8 hereof, to modify the undertaking under this Disclosure Undertaking if the Issuer
determines that such modification is required by the Rule or by a court of competent jurisdiction.
Date: 2005
CITY OF ROSEMOUNT, MINNESOTA
By
Its Mayor
By
Its Clerk
11-4
EXHIBIT A
List of Nationally Recognized Municipal
Secunties Information Repositones
Bloomberg Municipal Repository
100 Business Park Drive
Skillman, NJ 08558
Phone: 609 279 -3225
Fax: 609 279 -5962
Email: Mums @Bloomberg..com
http /www.bloombers.com /markets /rates /mumcontacts.html
DPC Data Inc.
One Executive Drive
Fort Lee, NJ 07024
Phone. 201 -346 -0701
Fax 201- 947 -0107
Email: nrmsir @dpcdata.com
http /www.dpcdata.com
FT Interactive Data
Attn: NRMSIR
100 William Street, 15 Floor
New York, NY 10038
Phone: 212-771-6999; 800-689-8466
Fax: 212 771 -7390
Email: NRMSIR
http: /www ftid.com
Standard Poor's Securities Evaluations, Inc.
55 Water Street
45th Floor
New York, NY 10041
Phone: 212- 438 -4595
Fax: 212- 438 -3975
Email: NRMSIR repository sandp.com
www.jikenny.com/jjkennv'pser descrip data rep.html
This list is current as of the date of issuance of the Bonds.
11 -5
APPENDIX 111
SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND
MINNESOTA REAL PROPERTY VALUATION
(effective through payable 2005 with 2003 Legislative changes incorporated)
Following is a summary of certain statutory provisions effective through payable 2005 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.
Chapter 21, Laws of Minnesota Special Session 2003 -1 was passed by the 2003 Minnesota
Legislature and signed by the Governor on June 8, 2003. The enactment of this legislation
caused changes for payable years 2003 and thereafter These changes are incorporated in the
following discussions.
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."
Limitation of Market Value Increases. Minn. Stat., Sec. 273.11, Subdivision 1a, was amended
in 2001 to provide for a full phase -out of Limited Market Value, arriving at 100% of the
assessor's estimated market value in the 2007 assessment year. For assessment year 2005,
the amount of the increase shall not exceed the greater of (1) 15% of the value in the preceding
assessment, or (2) 33% of the difference between the current assessment and the preceding
assessment. For assessment year 2006, the amount of the increase shall not exceed the
greater of (1) 15% of the value in the preceding assessment, or (2) 50% of the difference
between the current assessment and the preceding assessment.
Taxable Market Value The Taxable Market Value is the value that property taxes are based
on, after all reductions, limitations, exemptions and deferrals It is also the value used to
calculate a municipality's legal debt limit.
Indicated Market Value. The Indicated Market Value is determined by dividing the Taxable
Market Value of a given year by the same year's sales ratio determined by the State
Department of Revenue. The Indicated Market Value serves to eliminate disparities between
individual assessors and equalize property values statewide
Net Tax Capacity. The Net Tax Capacity is the value upon which net taxes are levied,
extended and collected. The Net Tax Capacity is computed by applying the class rate
percentages specific to each type of property classification against the Taxable Market Value.
Class rate percentages vary depending on the type of property as shown on the last page of
this Appendix. The formulas and class rates for converting Taxable Market Value to Net Tax
Capacity represent a basic element of the State's property tax relief system and are subject to
annual revisions by the State Legislature.
Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity rate,
expressed as a percentage
Property Tax Payments and Delinquencies
(Chapters 275, 276, 277, 279 -282 and 549, Minnesota Statutes)
Ad valorem property taxes levied by local governments in Minnesota are extended and
collected by the various counties within the State. Each taxing jurisdiction is required to certify
the annual tax levy to the county auditor within five (5) working days after December 20 of the
year preceding the collection year. A listing of property taxes due is prepared by the county
auditor and turned over to the county treasurer on or before the first business day in March.
The county treasurer is responsible for collecting all property taxes within the county. Real
estate and personal property tax statements are mailed out by March 31. One -half (1 /2) of the
taxes on real property is due on or before May 15 The remainder is due on or before
October 15 Real property taxes not paid by their due date are assessed a penalty that,
depending on the type of property, increases from 2% to 4% on the day after the due date in
the case of the first installment of real property taxes due May 15, the penalty increases to 4%
or 8% on June 1 Thereafter, an additional 1% penalty shall accrue each month through
October 1 of the collection year for unpaid real property taxes. In the case of the second
installment of real property taxes due October 15, the penalty increases to 6% or 8% on
November 1 and increases again to 8% or 12% on December 1. Personal property taxes
remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the
unpaid tax However, personal property that is owned by a tax exempt entity, but is treated as
taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties
as real property
On the first business day of January of the year following collection all delinquencies are
subject to an additional 2% penalty, and those delinquencies outstanding as of February 15 are
filed for a tax lien judgment with the district court. By March 20 the clerk of court files a
publication of legal action and a mailing of notice of action to delinquent parties. Those
property interests not responding to this notice have judgment entered for the amount of the
delinquency and associated penalties The amount of the judgment is subject to a variable
interest determined annually by the Department of Revenue, and equal to the adjusted prime
rate charged by banks, but in no event is the rate less than 10% or more than 14
Property owners subject to a tax lien judgment generally have five years (5) in the case of all
property located outside of cities or in the case of residential homestead, agricultural
homestead and seasonal residential recreational property located within cities or three (3) years
with respect to other types of property to redeem the property. After expiration of the
redemption period, unredeemed properties are declared tax forfeit with title held in trust by the
State of Minnesota for the respective taxing districts The county auditor, or equivalent thereof,
then sells those properties not claimed for a public purpose at auction The net proceeds of the
sale are first dedicated to the satisfaction of outstanding special assessments on the parcel,
with any remaining balance in most cases being divided on the following basis county 40
town or city 20 and school district 40
Property Tax Credits (Chapter 273, Minnesota Statutes)
In addition to adjusting the taxable value for various property types, primary elements of
Minnesota's property tax relief system are. property tax levy reduction aids, the circuit breaker
credit, which relates property taxes to income and provides relief on a sliding income scale, and
targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The
circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application by
the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid,
equalization aid, county program aid and disparity reduction aid.
111 -2
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.
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
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 pnor 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 distnbution 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.
1
STATUTORY FORMULAE: CONVERSION OF ESTIMATED MARKET VALUE (EMV) TO
NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS
2001 Property Tax Amendments
The Omnibus Tax Bill adopted by the Minnesota Legislature during the First Special Session in
2001 (the 'Tax Bill made numerous changes to the property tax system. Among its
provisions, the Tax Bill provided for the assumption by the State of Minnesota of the general
education property tax levy and certain transit costs; increased the appropriation for Local
Government Aids by $140,000,000; re- imposed levy limits for two years on counties and cities
over 2,500 in population; repealed the Homestead and Agricultural Credit Aid for cities, school
districts and townships; provided for the gradual elimination of Limited Market Valuation, and
compressed the class rates applicable to various classes of property
Local Tax Local Tax Local Tax Local Tax Local Tax
Payable Payable Payable Payable Payable
Property Type 2001 2002 2003 2004 2005
Residential Homestead
Up to $76,000 1.000% 1.000% 1 000% 1.000% 1.000%
$76,000 $500,000 1 650% 1.000% 1.000% 1 000 1.000
Over $500,000 1.650% 1.250% 1 250% 1.250% 1.250%
Residential Non homestead
Single Unit
Up to $76,000 1.200% 1.000% 1.000% 1.000% 1 000%
$76,000 $500,000 1 650% 1.000% 1.000% 1.000% 1.000%
Over $500,000 1.650% 1 250% 1.250% 1.250% 1250%
2 -3 unit and undeveloped and 1.650% 1 500% 1 250 1250 1 250
Market Rate Apartments
Regular 2.400% 1.800 1.500 1.250 1.250
Small City 2 150% 1.800 1 500 1.250 1 250
Low Income 1.000% 0.900 1000
Commercial/Industrial/Public Utility
Up to $150,000 2 400% 1.500% 1.500% 1.500% 1 500%
Over $150,000 3.400% 2 000% 2.000% 2.000% 2.000%
Electric Generation Machinery 3.400% 2.000% 2 000% 2.000% 2 000%
Seasonal Recreational Commercial
Homestead Resorts (1c)
Up to $500,000 1.000% 1.000% 1.000% 1.000% 1 000%
Over $500,000 1.000% 1.250% 1.250% 1.250% 1.250%
Seasonal Resorts (4c)
Up to $500,000 1.650% 1 000% 1.000% 1.000% 1.000%
Over $500,000 1 650% 1.250% 1.250% 1.250% 1 250%
Seasonal Recreational Residential
Up to $76,000
$76,000 $500,000
Over $500,000
Disabled Homestead
Agricultural Land Buildings
Homestead
Up to $115,000 0 350%
$115,000 $600,000 0.800%
Over $600,000 1.200%
Non- homestead 1.200%
1.200 °f° 1.000 °I S 1 000 1.000 1 000
t650% 1.000 1.000 1.000 1.000
1.650% 1.250 1.250 1.250 1.250
0.450% 0.450% 0.450% 0.450% 0 450%
III-4
0 550%
0.550
1 000
1 000
0.550
0.550
1.000%
1.000
0 550
0.550
1.000
1.000
Effective 2002 there are two classes of residential property, up to $500,000 and greater than $500,000.
2 Rate reduced to 1 25% in pay 2003 and thereafter
3 Rate reduced to L5% in pay 2003 and 1 25% in pay 2004 and thereafter.
4 Rate increased to 1% in pay 2003, classification abolished thereafter
5 Exempt from referendum market value tax
0.550
0 550
1.000%
1.000 %5
EXCERPT OF 2004 ANNUAL FINANCIAL STATEMENTS
APPENDIX IV
The City's financial statements are audited annually by an independent certified public
accounting firm in conformance with generally accepted accounting principles. Selected
audited financial statements for the fiscal year ending December 31, 2004 are presented here.
Governmental funds and expendable trust funds are accounted for using the modified accrual
basis of accounting Proprietary funds are accounted for using the accrual basis of accounting
The reader should be aware that the complete financial statements may contain additional data
relating to the information presented here, which may interpret, explain or modify it.
The Governmental Accounting Standards Board (GASB) issued Statement 34, Basic Financial
Statements for State and Local Governments in June 1999 The statement establishes a new
financial reporting model for state and local governments and is a significant change in public
sector accounting. GASB developed the new requirements to make annual reports more
comprehensive and easier to understand and use. The new requirements include government
wide financial statements prepared on the full accrual basis that are in addition to, not instead
of, the traditional Fund -Based statements; and an expanded Budget Comparison that includes
the adopted budget, final budget, and actual revenues and expenditures. The City's 2004
financial statements are prepared in conformance with GASB principles.
The City's comprehensive annual financial report for the year ended 2003 was awarded the
Certificate of Achievement for Excellence in Financial Reporting by the Government Finance
Officers Association of the United States and Canada (GFOA) The Certificate of Achievement
is the highest form of recognition for excellence in state and local government financial
reporting.
In order to be awarded a Certificate of Achievement, a govemment unit must publish an easily
readable and efficiently organized comprehensive annual financial report (CAFR), whose
contents conform to program standards Such CAFR must satisfy both generally accepted
accounting principles and applicable legal requirements
A Certificate of Achievement is valid for a period of one year only. The City has received this
recognition annually since 1996 and has submitted its 2004 CAFR to GFOA for consideration.
IV -1
INDEPENDENT AUDITORS' REPORT
To The Honorable Mayor and Members of the City Council
City of Rosemount, Minnesota
Vircho®
Krause
&company
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of the City of Rosemount, Minnesota, as
of and for the year ended December 31, 2004, which collectively comprise the City's basic financial statements as
listed in the table of contents. These financial statements are the responsibility of the City of Rosemount's
management. Our responsibility is to express opinions on these financial statements based on our audit. The prior
year summarized comparative information has been derived from the City's 2003 financial statements and, in our
report date March 12, 2004, we expressed unqualified opinions on the respective financial statements of the
governmental activities, the busyness -type activities, the aggregate discretely presented component units, each
major fund, and the aggregate remaining fund information
We conducted our audit in accordance with auditing standards generally accepted in the United States of America.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures m the financial statements An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audit provides a reasonable basis for our 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 information of the City of Rosemount, Minnesota, as of December 31, 2004, and the respective
changes in financial position and cash flows, where applicable, thereof for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
The management's discussion and analysis on pages 2 through 10 and the budgetary comparison schedules on
pages 55 through 57 are not required parts of the basic financial statements, but are supplementary information
required by the Governmental Accounting Standards Board We have applied certain limited procedures, which
consisted principally of inquiries of management regarding the methods of measurement and presentation of the
required supplementary information However, we did not audit the information and express no opinion on it.
The Rosemount Port Authority, previously reported as a discreetly presented component unit, has been presented
as a Mended component unit
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City of Rosemount's basic financial statements The introductory section, combining and individual fund
statements and schedules, and statistical tables, 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. The combining and individual fund
statements and schedules have been subjected to the auditing procedures applied in the audit of the basic
financial statements and in our opinion, are fairly stated in all material respects in relation to the basic financial
statements taken as a whole The introductory section and statistical tables have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no opinion
on them
Minneapolis, Minnesota
March 18, 2005
IV -2
ASSETS
Cash and investments
Receivables (net of allowance for uncollectibles)
Taxes
Delinquent taxes
Accounts
Loans
Special assessments
Due from other governmental units
Internal balances
Prepaid items
Capital assets
Land
Construction in progress
Land improvements
Buildings
Machinery and equipment
Infrastructure
Less accumulated depreciation
Total Assets
LIABILITIES
Accounts payable
Accrued payroll and payroll taxes
Other accrued liabilities and deposits
Noncurrent liabilities:
Due within one year
Due in more than one year
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total Net Assets
CITY OF ROSEMOUNT
STATEMENT OF NET ASSETS
December 31, 2004
(With Comparative Totals for December 31, 2003)
Govemmentat
Activities
24,326440
593,875
113,870
90,016
578,597
3,480,742
123,486
(519,059)
84,157
4,392,454
2,891,251
959,852
9,938,567
6,763,400
25,509,800
(12,191,224)
67,136,224
1,426,225 57,798 1,484,023 1,433,305
141,392 141,392 95,111
254,853 140,920 395,773 582,710
3,503,914 735,000 4,238,914 3,786,063
18,291,089 5,799,166 24,090,255 28,079,169
23,617,473 6,732,884 30,350,357 33,976,358
17,030,985 69,812,374 86,843,359 82,170,804
6,910,541 6,910,541 7,531,705
26,487,766 13,050,394 39,538,160 27,959,715
43,518,751 89,773,309 133,292,060 117,662,224
See accompanying notes to financial statements.
IV -3
Business
Type
Activities
18,375,608
756,141
487 585
57,217
519,059
67,427
1,609,237
8,247,046
6,144,727
1,661,116
90,484,043
(31,903,013)
96,506,193
42,702,048
593,875
113,870
846,157
578,597
3,968,327
180,703
151,584
6,001,691
11,138,297
959,852
16,083,294
8,424,516
115,993,843
(44,094,237)
163,642,417
Totals
2004 2003
37,786,731
531,873
106,839
732,576
618,431
5,465,761
56,064
159,717
3,974,730
14,025,023
936,547
15,987,784
8,333,974
104,394,537
(41,472,005)
151,638,582
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ASSETS
Cash and investments 5,419,678 9,441517 3,656,520 5,226,790 23,744505
Receivables.
Taxes 586,594 7,281 593,875
Accounts 59,901 20,987 80,888
Loans 578,597 578,597
Special assessments 88,735 3,220,802 171,205 3,480,742
Delinquent special assessments 580 102,581 10,709 113,870
Due from other governmental units 8,316 115,170 123,486
Due from other funds 297 297
Prepaid items 30,048 335 30,383
Total assets 5 6,194,149 12,764,900 3,771,690 6,015,904 28,746,643
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable 270,899 557,558 82,643 911,100
Accrued payroll and payroll taxes 141,392 141,392
Due to other funds 297 297
Deposits payable 31,450 31,450
Contracts payable 501,262 501 262
Deferred revenue 271,660 3,256,227 759,306 4,287,193
Advances from other funds 519,059 519,059
Total liabilities 715,401 3,256,227 1,058,820 1,361,305 6,391,753
Fund balances
Reserved for:
Debt service 9,508,673 9,508,673
Encumbrances 503,524 1,630,159 2,133,683
Prepaid items 30,048 335 30,383
Unreserved and designated, reported in:
General fund 4,931,177 4,931,177
Capital protects 2,712,870 2,712,870
Special projects 3,117,074 3,117,074
Unreserved and undesignated (deficit), reported in.
General fund 13,999 13,999
Special revenue funds (92,969) (92,969)
Total fund balances 5,478,748 9,508,673 2,712,870 4,654,599 22,354,890
Total liabilities and fund balances 6,194,149 12,764,900 3,771,690 6.015,904
Amounts reported for governmental activities in the statement of net assets are different because.
Capital assets used in governmental funds are not financial resources and, therefore, are not reported in the funds 38,264,100
Some receivables that are not currently available are reported as deferred revenue in the fund financial
statements but are recognized as revenue when earned in the government -wide statements 4,287,193
Internal service funds are reported in the statement of net assets as governmental activities 630,973
Some liabilities, including long -tern debt, are not due and payable in the current penod and, therefore, are not
reported in the funds See Note ILA (22,018,405)
NET ASSETS OF GOVERNMENTAL ACTIVITIES 43,518,751
See accompanying notes to financial statements
CITY OF ROSEMOUNT
BALANCE SHEET GOVERNMENTAL FUNDS
Decemoer 31, 2004
Other Total
Governmental Governmental
General Debt Service Capital Protects Funds Funds
IV -5
REVENUES
Taxes
Intergovernmental
Public charges for services
Licenses and permits
Fines and forfeitures
Special assessments
Investment income and miscellaneous
Total Revenues
EXPENDITURES
Current
General government
Public safety
Public works
Parks and recreation
Capital outlay
Debt service
Principal retirement
Interest and fiscal charges
Total Expenditures
Excess (deficiency) of revenues
over (under) expenditures
OTHER FINANCING SOURCES (USES)
Sale of capital assets
Transfers in
Transfers out
Total Other Financing Sources (Uses)
Net Change in Fund Balance
FUND BALANCES Beginning
FUND BALANCES ENDING
CITY OF ROSEMOUNT
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS
For the Year Ended December 31, 2004
Other Total
Govetnmental Governmental
General Debt Service Capital Projects Funds Funds
5,136,759 1,437,546 1,536,653 8,110,958
218,832 1,710,697 54,209 1,983,738
1,473,581
1,295,164
96,902
41,183
214,120
8,476,541
1,880,941
2,233,232
2,037,603
980,841
2,045
1,077,740
172,040
2,689,371
330,900
8,073,381
10,114, 978
12,661
11,820,615
11,677 932,199 1,987,884
(590,000) (527,348)
(578,323) 932,199 1,460,536
1,324,616 2,798,197
1,295,164
98,947
140,203 1,590,026
85,422 8,544,963
3,141,103 24,421,993
2,760,000 251,929 3,011,929
913,131 68,670 981,801
7,132,617 3,673,131 11,833,276 1,561,244 24,200,268
1,343,924 (983,760) (1,718,298) 1,579,859
765,601 (51,561) (257,762) 1,316,124
See accompanying notes to financial statements.
IV -6
17,798 1,898,739
1,135 2,234,367
572,841 2,623,105
980,841
648,871 12,469,486
221,725
6,350 6,350
683,509 3,615,269
(953,594) (2,070,942)
(263,735) 1,550,677
1,772,402
4,713,147 9,560,234 2,970,632 3,338,475 20,582,488
5,478,748 9,508,673 2,712,870 4,654,599 22,354,890
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, 2004
Net change in fund balances total governmental funds 1,772,402
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 assets 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
Less Some items reported as capital outlay but not capitalized
Some items reported as capital outlay m the fund statements but are shown as
transfers in the government -wide statements
Depreciation is reported in the government -wide statements
In the statement of activities, only the gain or loss ($110,586) on the disposal of
capital assets is reported. In the fund financial statements, proceeds from the sale
of capital assets ($6,350) 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 deferred revenue in the fund financial
statements but are recognized as revenue when earned in the govemment -wide
financial statements
Repayment of debt principal is an expenditure in the govemmental funds, but the
repayment reduces long -term liabilities in the statement of net assets This is the amount
of principal payments paic.
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 ASSETS OF GOVERNMENTAL ACTIVITIES 5,908,324
See accompanying notes to financial statements
IV -7
12,469,488
(2,495,361)
(6,631,615)
(1,235,075)
(104,236)
21,695
(1,014,641)
3,011,929
(65,106)
178,844
CITY OF ROSEMOUNT
STATEMENT OF NET ASSETS PROPRIETARY FUNDS
December 31, 2004
Business -Type Activities Enterprise Funds
Storm Non-major
Water Sewer Water Arena
Total
Governmental
Activities
Internal Service
Fund
ASSETS
Current assets'
Cash and investments 7,056,853 5,880,026 5,434406 4,323 18,375,608 581,935
Customer accounts receivable 324,440 282,626 149,075 756,141 9,128
Special assessments receivable 84,897 254,403 148,285 487 585
Due from other governments 57,217 57,217
Prepaid items 6,307 56,064 2,534 2,522 67.427 53,774
Total current assets 7,472,497 6,473,119 5,734,300 64,062 19,743,978 644.837
Non current assets:
Advance to other funds 618,046 618,046
Property and equipment
Land 515,101 1,094,136 1,609,237
Buildings 2,619,393 263,014 862,420 2,399,900 6,144,727
Mains and lines 8,502,571 6,490,469 10,247,767 25 240 807
Other improvements 15,709,459 36,983,749 12,550,028 65 243,236
Machinery and equipment 973,863 449,675 142,980 94,598 1,661,116
Construction in progress 2,742,387 1,443,443 4,061,216 8,247,046
Less accumulated depreciation (7,464,495) (20,339,041) (3,565,761) (533,716) (31,903,013)
Netpropertyandequipment 23,598,279 25,291,309 25,392,786 1,96 76,243,156
Total non current assets 23,598,279 25,909,355 25,392.786 1.960,782 76,861 202
Total Assets
LIABILITIES
Current liabilities
Accounts payable
Accrued liabilities
Accrued interest
Current portion of long term debt
Total current liabilities
Noncurrent liabilities
Accrued compensated absences
General obligation debt
Advance4 from other funds
Total noncurrent liabilities
Total Liabilities
31,070,776 32,382,474 31,127,086 2,024,844 96,605,180 644,837
32,949 9,693 8,678 6,478 57,798
10,655 9,059 3,422 4,684 27,820
37,419 75,681 113,100
380,000 355.000 735.000
461,023 18,752 442,781 11,162 933,718
38,545 38,545 12,788 13,506 103,384
1,999,066 3,696,716 5,695,782
98.987 98,987
2,136,598 38,545 3,709,504 13,506 5,898,153
2,597,621 57,297 4,152,285 24,668 6,831,871
NET ASSETS
Invested in capital assets, net of related debt 21,219,213 25,291,309 21,341,070 1,960,782 69,812,374
Restricted for debt service 2,395,000 435,541 4,080,000 6,910,541
Unrestricted 4,858,942 6,598.327 1 553,731 39,394 13,050.394
TOTAL NET ASSETS
See accompanying notes to financial statements.
1V -8
13,864
13,864
13,864
630,973
28.473,155 32,325,177 26,974,801 2,000.176 89,773.309 630,973
OPERATING REVENUES
Charges for services
Water meters
Miscellaneous
Total Operating Revenues
OPERATING EXPENSES
Personnel services
Supplies
Professional services and charges
Other services and charges
Metro sewer charges
Depreciation
Total Operating Expenses
Operating Income (Loss)
NONOPERATING REVENUES (EXPENSES)
Connection fees
Taxes
Special assessments
Investment income
Net increase (decrease) in fair value of investment
Loss from disposal of fixed assets
Surcharges and penalties
Interest expense and fiscal agent fees
Total Nonoperating Revenues
Income (loss) before contnbutions
and transfers
Capital contnbutions
Transfers rn
Transfers out
Change in Net Assets
TOTAL NET ASSETS Beginning
TOTAL NET ASSETS ENDING
CITY OF ROSEMOUNT
STATEMENT OF REVENUES. EXPENSES AND CHANGES IN FUND
NET ASSETS PROPRIETARY FUNDS
For the Year Enced December 31, 2004
Water
185,083
Business -Type Activities Enterorse Funds
Sewer
1,004,057 1,124,398
1,149
1,189,140 1,125,547
Storm
Water
601,737
77
601,814
333,668 340,086 127,819 159,098
275,499 28,597 2,349 36,430
79,878 28,048 40,940 8,397
486,043 71,844 28,847 133,311
546,452
487,874 682,981 347,928 54,334
1,662,962 1,698,008 547,883 391 570
(473,822) (572,461) 53,931 (53,658) (1,046,010)
1,957,729 951,911 1,132,937
75,140 62,940 115,760
138,665 194,360 113,785
(8,850) 2,015 119
(270) (82)
214,297 11,786 4,432
(100,338) (5,190) (189,518)
2.276,373 1,217,740 1,177,515
1.802.551 645,279 1,231,446 (53,446) 3,625,830
1.047,011 2,187,862 4,405,136
64,000
(459,495) (162.263) (972,069)
2,390,067 2,670,878 4.728,513
See accompanying notes to financial statements.
Iv -9
Non major
Arena
337,912 3,068,104
185,083
1,226
337,912 3,254,413
253,840
212 447 0221
(6,716)
(352)
230,515
(295,046)
212 4,671.840
(14.500)
(67,946)
Total
960,671
342,875
157,263
720,045
546,452
1,573,117
4,300,423
4,042,577
7,640.009
64,000
(1,608,327)
9,721.512
26 083,088 29,654 299 22,246,288 2,068,122 80,051,797
Governmental
Activities
Intemal Service
Funds
34,443
34 443
77
26.957
215,156
242,190
(207,747)
225,000
4,442
229,442
21,695
21,695
609,278
$28473,155 $32,325,177 526,974.801 52.000,176 589.773,309 630,973
CASH FLOWS FROM INVESTING ACTIVITIES
It income
Net Cash Flows From Investing Actm6es
Net Increase (Decrease) in Cash
and Cash Equivalents
CASH AND CASH EQUIVALENTS Beginning or Year
CASH AND CASH EQUIVALENTS END OF YEAR
Non-cash capital. Investing .1 financing activities:
CITY OF ROSEMOUNT
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
For the Year Ended December 31, 2004
See accompanying notes to financial statements
IV 10
Business -Type Activities Enteronse Funds
Governmental
Actrntes-
Water Sewer Stone Nan major Internal
Utdiy Utility Water Arena Total Service Funds
CASH FLOSFS FROM OPERATING ACTIVTIES
Cash received from customers 3,366.280 2.147 071 3 1,848,823 326.326 5 7,688,500 26 973
Cash pawl to suppers for goods and services (1,027.600) (747,751) (103,675) (202,305) (2,081.331) (227,198)
Cash paid to employees for services (270.354) (276,688) (101,923) (131.861) (780 825)
Net Cash Flows From (Used by) Operating Activities 2.068.326 1 122.632 1,643 225 (7 840) 4,826,343 (200 225)
CASH FLOWS FROM NONCAPITAL FINANCING ACTNTfIES
Property taxes 225.000
Transfers from other funds (14,500) (14.500)
Net Cash Flows From (Used by) Noricapnal Finanong Achvdws (14 500) (14,500) 225.000
129 8155 196,375 113,904 212 440,306
129 815 196 375 113 904 212 440.306
CASH FLOWS FROM CAPRAL AND RELATED
FINANCING ACTIVITIES
Debt mebred (260.000) (340.000) (600.000)
Caplet advances to other funds (4,811) (265,138) (269.949)
Interest paid (104,180) (5.190) (190,214) (299.584)
Capital mnInbubons 799.280 2 246 787 4265.886 7,311,953
Acqursnbon and mnstmcbon of capital assets (1.530 050) (2 443,147) (5,123,241) (9 096 438)
Net Cash Flows Used by Capital and
Related Financing Actnbes (1.099.761) (466,688) (1387,569) (2 954,018)
4,442
4,442
1,09 8.380 852.319 369.560 (22,128) 2298,131 29,217
S 5,958473 3 5027,707 5,064,846 26,451 16,077 477 552 718
5 7,056 853 5 880,026 S 5 434 406 S 4 323 18 375,608 581,935
RECONCILIATION OF OPERATING INCOME TO NET
CASH FLOWS FROM OPERATING ACTIVITIES
Operating income (loss) 5 (473.822) (572.461) 53,931 (53.658) 5 (1,046.010) (207.747)
Non-operating income 2,246,896 1.026,555 1253,129
Adlustments to Reconcile Operating Income to
Net Cash Flows From Operating AcWites
Noncash items included m income
Oepreciaten 487 ,874 682.981 347,927 54.334 1,573,116
Change In assets and liabilities
Accounts recewable (69.756) (5.031) (6,120) (80.907) (7.470)
Due from other governments (11,586) (11,586)
Due from other funds
Prepayments 743 (5.698) 314 855 (3,786) 13,873
,Accounts paYable (126556) (6,669) (6282) 712 (138,795) 1.119
Deposits 865 865
Accrued babblers 2082 2 955 326 1.503 6,566
NET CASH FLOWS FROM (USED BY)
OPERATING ACTIVITIES 2.068326 5 1122,632 1,643225 (7,840) 4,826343 (200225)
The Water Utility received contributed plant of $213 475 dung the year The Sewer Chitty received oontnbuted plant of $15,546 dunng the year
The Storm Water Utility received contnbuted Warn of $100.950 dunng the year
ASSETS
Cash and investments 14,566
LIABILITIES
Due to M.A.A.G.
CITY OF ROSEMOUNT
STATEMENT OF NET ASSETS
FIDUCIARY FUNDS
December 31, 2004
NET ASSETS
See accompanying notes to financial statements.
IV -11
M A.A.G.
Agency
Fund
14,566
NOTE Page
CITY OF ROSEMOUNT
INDEX TO NOTES TO FINANCIAL STATEMENTS
December 31, 2004
I. Summary of Significant Accounting Policies 22
A Reporting Entity 22
B. Government -Wide and Fund Financial Statements 23
C. Measurement Focus, Basis of Accounting,
and Financial Statement Presentation 25
D. Prior Period Information 27
E. Assets, Liabilities, and Net Assets or Equity 28
1. Deposits and Investments 28
2. Receivables 28
3 Inventories and Prepaid Items 29
4. Capital Assets 30
5. Other Assets 31
6. Compensated Absences 31
7. Long -Term Obligations /Conduit Debt 32
8. Claims and Judgments 32
9 Equity Classifications 33
10. Comparative Data /Reclassifications 33
I1. Reconciliation of Government -Wide and Fund Financial Statements 34
A Explanation of Certain Differences Between the
Governmental Fund Balance Sheet and the Statement of Net Assets 34
III. Stewardship, Compliance, and Accountability 34
A Budgetary Information 34
B Excess Expenditures Over Appropriations 35
C. Deficit Balances 35
IV. Detailed Notes on All Funds 35
A. Deposits and Investments 35
B Receivables 37
C. Capital Assets 38
D Interfund Receivables /Payables and Transfers 40
E Long -Term Obligations 43
F. Lease Disclosures 46
G. Net Assets /Fund Balances 46
V. Other Information 49
A Employees' Retirement System 49
B Risk Management 53
C. Commitments and Contingencies 54
IV -12
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NOTE V OTHER INFORMATION (cont.)
C. COMMITMENTS AND CONTINGENCIES
CITY OF ROSEMOUNT
NOTES TO FINANCIAL STATEMENTS
December 31, 2004
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 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, rf any, would be immaterial.
Funding for the operating budget of the City comes from many sources, including property taxes,
grants and aids from other units of government, user fees, fines and permits, and other
miscellaneous revenues. The State of Minnesota provides a variety of aid and grant programs
which benefit the City. Those aid and grant programs are dependent on continued approval and
funding by the Minnesota governor and legislature, through their budget processes. The State of
Minnesota is currently experiencing budget problems, and is considering numerous alternatives
including reducing aid to local governments Any changes made by the State to funding or
eligibility of local aid programs could have a significant impact on the future operating results of
the City.
IV -29