HomeMy WebLinkAbout6.c. 2010 G.O. Utility Revenue Refunding Bonds - Authorizing Issuance and Setting Bond Sale4ROSEMOUNTEXECUTIVE SUMMARY
CITY COUNCIL
City Council Meeting Date: October 19, 2010
AGENDA ITEM: 2010 G.O. Utility Revenue Refunding
Bonds - Authorizing Issuance and Setting
AGENDA SECTION:
Bond Sale
Consent
PREPARED BY: Jeff May, Finance Director
AGENDA NO.
ATTACHMENTS: Resolution and Recommendations
APPROVED BY:
RECOMMENDED ACTION: Motion to adopt a Resolution Providing for the Competitive
Negotiated Sale of $1,550,000 General Obligation Utility Revenue Refunding Bonds, Series
2010A.
ISSUE
The authorization to issue bonds for the refunding of three current City water and storm water revenue
bonds.
BACKGROUND
This item is on the agenda for your consideration in authorizing the issuance and setting the sale of
General Obligation Utility Revenue Refunding bonds for the current water and storm water revenue
bonds.
The three City issues are for the following: 1) G.O. Storm Water Revenue Bonds, 2001B (Original issue
amount - $1,140,000 for the Marcotte Pond Lift Station and Forcemain and the Hawkins Pond Lift Station
and Forcemain); 2) G.O. Water /Storm Water Revenue Bonds, 2002B (Original Issue Amount - $1,195,000
for Well #12 and the Brockway Draw Storm Water Improvements); and 3) G.O. Water Revenue Bonds,
2003B (Original issue amount - $1,170,000 for the East Side Watermain Phase 2 Improvements).
The main reason for doing these refundings is because of the market today and the lower interest rates
that should be available to us. These lower interest rates will result in present value savings and actual
interest savings on the payments that we will make over the life of the bonds. All of the refundings will
keep the remaining life of the current bonds in place — we will not be extending any of our debt to do
these refundings. The net present value benefit for the 3 City issues is estimated to be $114,502.95 and the
estimated actual interest savings that will be realized over the life of the issues is $222,843.39
(approximately $31,834.77 per year over 7 years). The savings will be realized from both the Water Core
Fund and the Storm Water Core Fund.
Bids will be open until Tuesday, November 16, 2010, at 10:30 A.M. at the offices of Springsted
Incorporated. The bids will be tabulated there and then consideration for award of the Bonds will be by
the City Council at 7:30 P.M., Central Time, of the same day.
SUMMARY
Recommend the above motion.
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 2010-
RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED
SALE OF $1,550,000 GENERAL OBLIGATION UTILITY REVENUE
REFUNDING BONDS, SERIES 2010A
WHEREAS, the City Council of the City of Rosemount, Minnesota (the "City "), has heretofore
determined that it is necessary and expedient to issue its $1,550,000 General Obligation Utility
Revenue Refunding Bonds, Series 2010A (the "Bonds ") to refund the February 1, 2012 through
February 1, 2017 maturities of the City's General Obligation Storm Water Revenue Bonds, Series
2001B, dated August 15, 2001, the February 1, 2012 through February 1, 2018 maturities of the
City's General Obligation Water and Storm Water Revenue Bonds, Series 2002B, dated July 1, 2002
and the February 1, 2012 through February 1, 2014 maturities of the City's General Obligation
Water Revenue Bonds, Series 2003B, dated July 1, 2003;
WHEREAS, the City has retained Springsted Incorporated, in Saint Paul, Minnesota ( "Springsted "),
as its independent financial advisor and is therefore authorized to sell these obligations by a
competitive negotiated sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9);
and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount,
Minnesota, as follows:
1. Authorization, Findings. The City Council hereby authorizes Springsted to solicit bids for
the competitive negotiated sale of the Bonds.
2. Meeting; Bid Opening. This City Council shall meet at the time and place specified in the
Terms of Proposal attached hereto as Exhibit A for the purpose of considering sealed bids for, and
awarding the sale of, the Bonds. The Administrator, or designee, shall open bids at the time and
place specified in such Terms of Proposal.
3. Terms of Proposal. The terms and conditions of the Bonds and the negotiation thereof are
fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby approved and
made a part hereof.
4. Official Statement. In connection with said competitive negotiated sale, the Administrator,
Finance Director and other officers or employees of the City are hereby authorized to cooperate
with Springsted and participate in the preparation of an official statement for the Bonds, and to
execute and deliver it on behalf of the City upon its completion.
3763310 MMD KG400 -1
RESOLUTION 2010-
ADOPTED this 19th day of October, 2010.
William H. Droste, Mayor
ATTEST:
Amy Domeier, City Clerk
376331v1 MMD KG400 -1
CERTIFICATE
STATE OF MINNESOTA )
COUNTY OF DAKOTA ) ss
CITY OF ROSEMOUNT )
I, Amy Domeier, duly appointed, acting and qualified City Clerk of the City of Rosemount do
hereby certify that I have examined the City of Rosemount records and the Minute Book of said
City for the meeting of the 19`h of October, 2010 and that the attached copy of the Resolution 2010-
_ RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF
$1,550,000 GENERAL OBLIGATION UTILITY REVENUE REFUNDING BONDS,
SERIES 2010A was approved and is a true and correct copy of the City Proceedings relating to said
Resolution.
IN WITNESS WHEREOF, I have hereunto set my hand and seal of said City this day of
October, 2010.
Amy Domeier, City Clerk
City of Rosemount
Dakota County, Minnesota
376331v1 MMDKG400 -1
RESOLUTION 2010-
EXHIBIT A
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE
FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,550,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION UTILITY REVENUE REFUNDING BONDS, SERIES 2010A
(BOOK ENTRY ONLY)
Proposals for the Bonds and the Good Faith Deposit ( "Deposit ") will be received on Tuesday,
November 16, 2010, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals will be opened and
tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 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.
.I
(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® forpurposes 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
Preliminary; subject to change.
- 1 -
RESOLUTION 2010-
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, 2nd Floor, New York, New York 10018
Customer Support: (212) 849 -5000
DETAILS OF THE BONDS
The Bonds will be dated December 1, 2010, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2011. 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:
2012 $295,000 2014 $310,000 2016 $180,000 2018 $105,000
2013 $310,000 2015 $175,000 2017 $175,000
* The City reserves the right, after proposals air opened and prior to award, to increase or reduce the principal amount of the Bonds or the
maturity amounts 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 at a
price of par plus accrued interest to the date of redemption and must conform to the maturity
schedule set forth above. In order to designate term bonds, the proposal must specify "Years of
Term Maturities" in the spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of Bonds
made to the public. The Bonds will be issued in fully registered form and one Bond, representing
the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of
Cede & Co. as nominee of The Depository Trust Company ( "DTC "), New York, New York, which
will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the
principal amount of $5,000 or any multiple thereof of a single maturity through book entries made
on the books and records of DTC and its participants. Principal and interest are payable by the
registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest
payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest
payments to beneficial owners by participants will be the responsibility of such participants and
other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be
required to deposit the Bonds with DTC.
-ii -
RESOLUTION 2010-
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 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. In addition, the City will pledge net
revenues of the City's water and storm sewer utility systems. The proceeds will be used to refund (i)
the February 1, 2012 through February 1, 2017 maturities of the City's General Obligation Storm
Water Revenue Bonds, Series 2001B, dated August 15, 2001; (ii) the February 1, 2012 through
February 1, 2018 maturities of the City's General Obligation Water and Storm Water Revenue
Bonds, Series 2002B, dated July 1, 2002; and (iii) the February 1, 2012 through February 1, 2014
maturities of the City's General Obligation Water Revenue Bonds, Series 2003B, dated July 1, 2003.
BIDDING PARAMETERS
Proposals shall be for not less than $1,540,312 and accrued interest on the total principal amount of
the Bonds.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made. Rates shall be in integral multiples of
5/100 or 1/8 of 1 %. Rates are not required to be in level or ascending order; however, the rate for
any maturity cannot be more than 1 % lower than the highest rate of any of the preceding maturities.
Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of
maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
Proposals, regardless of method of submission, shall be accompanied by a Deposit in the amount of
$15,500, in the form of a certified or cashier's check, a wire transfer, or Financial Surety Bond and
delivered to Springsted Incorporated prior to the time proposals will be opened. Each bidder shall
be solely responsible for the timely delivery of their Deposit whether by check, wire transfer or
Financial Surety Bond. Neither the City nor Springsted Incorporated have any liability for delays in
the transmission of the Deposit.
Any Deposit made by certified or cashier's check should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota 55101.
Any Deposit sent via wire transfer should be sent to Springsted Incorporated as the City's agent
according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
Offic
RESOLUTION 2010-
ABA #121000248
For credit to Springsted Incorporated, Account #635 - 5007954
Contemporaneously with such wire transfer, the bidder shall send an e -mail to
bond_sery ices @springsted.com, including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies, and (iv)
the return wire instructions if such bidder is not awarded the Bonds.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the City
following the award of the Bonds. Any Deposit made by check or wire transfer by an unsuccessful
bidder will be returned to such bidder following City action relative to an award of the Bonds.
If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota and pre- approved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds
are awarded to an underwriter using a Financial Surety Bond, then that underwriter is required to
submit its Deposit to the City in the form of a certified or cashier's check or wire transfer as
instructed by Springsted Incorporated not later than 3:30 P.M., Central Time 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, will
be deposited by the City and no interest will accrue to the purchaser. In the event the purchaser
fails to comply with the accepted proposal, said amount will be retained by the City.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. 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.
-iv -
RESOLUTION 2010-
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 not 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 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 Kennedy & Graven, Chartered of Minneapolis,
Minnesota, and of customary closing papers, including a no- litigation certificate. On the date of
settlement, payment for the Bonds shall be made in federal, or equivalent, funds that shall be
received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless
compliance with the terms of payment for the Bonds has been made impossible by action of the
City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason
of the purchaser's non - compliance with said terms for payment.
CONTINUING DISCLOSURE
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 60 copies of the Official Statement
and the addendum or addenda described above. The City designates the senior managing
-v-
RESOLUTION 2010-
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 October 19, 2010
-vi -
BY ORDER OF THE CITY COUNCIL
/s/ Amy Domeier
City Clerk
Recommendations
For
City of Rosemount, Minnesota
$1,550,000*
General Obligation Utility Revenue Refunding Bonds, Series 2010A
Rosemount Port Authority, Minnesota
$1,350,000*
General Obligation Public Facility Refunding Bonds, Series 2010B
'Preliminary, subject to change.
Presented to:
City of Rosemount. Minnesota
Honorable William H. Droste, Mayor
Members, City Council
Mr. Dwight Johnson, City Administrator
Mr. Jeff May, Finance Director
City of Rosemount
2875145th St W
Rosemount, MN 55068 -4997
Study No.: 0007041131005507100
SPRINGSTED Incorporated
October 14, 2010
Rosemount Port Authority
Members, Port Authority
Mr. Jeff Weisensel, Chair
Mr. Dwight Johnson, Director
Ms. Kim Lindquist, Deputy Director
Rosemount Port Authority
2875145th St W
Rosemount, MN 55068 -4997
RECOMMENDATIONS
Re: Recommendations for the Issuance of:
City - $1,550,000* General Obligation Utility Revenue Refunding Bonds, Series 2010A
(the "City Bonds" or "Issue ")
Port Authority - $1,350,000* General Obligation Public Facility Refunding Bonds, Series 2010B
(the "Port Authority Bonds" or "Issue ")
(collectively, the "Bonds" or "Issues ")
We respectfully request your consideration of our recommendations for the above -named Issues.
Proceeds of the City Bonds will be used to refund (i) the February 1, 2012 through 2017 maturities of the City's
General Obligation Storm Water Revenue Bonds, Series 2001 B, dated August 15, 2001; (ii) the February 1, 2012
through 2018 maturities of the General Obligation Water and Storm Water Revenue Bonds, Series 20026, dated
July 1, 2002; and (ii) the February 1, 2012 through 2014 maturities of the City's General Obligation Water Revenue
Bonds, Series 2003B, dated July 1, 2003 (collectively, the "City Refunded Bonds ").
Proceeds of the Port Authority Bonds will be used to refund the February 1, 2013 through 2022 maturities of the Port
Authority's General Obligation Public Facility Bonds, Series 2001 C, dated August 15, 2001 (the "PA Refunded
Bonds ").
The City and the Port Authority are hereinafter referred to collectively as the "Issuers."
We recommend the following for the Bonds:
Action Requested To establish the date and time of receiving bids and
establish the terms and conditions of the offering.
2. Sale Date and Time Tuesday, November 16, 2010 at 10:30 A.M., with
consideration for award by the City Council at
7:30 P.M. that same day.
3. Method of Sale The Bonds will be sold using a competitive bidding
process. In the interest of obtaining as many bids as
possible, we have included a provision in the attached
Terms of Proposal for underwriters to submit their bid
electronically through the electronic bidding platform of
PARITY®. In addition, physical bids (by phone or fax)
will be accepted at the offices of Springsted.
A good faith deposit will be required of bidders and
may be submitted by (i) certified /cashier's check, (ii) a
financial surety bond or (iii) a wire transfer to
Springsted as your agent.
*Preliminary,• subject to change.
City of Rosemount, Minnesota
Port Authority of Rosemount
October 14, 2010
7
Authority for the Bond Issues
Principal Amount of Offerings
The Bonds are being issued pursuant to Minnesota
Statutes, Chapter 475.
The City Bonds are further authorized pursuant to
Minnesota Statutes, Chapter 444.
The Port Authority Bonds are further authorized
pursuant to Minnesota Statutes, Section 469.060.
City Bonds - $1,550,000"
Port Authority Bonds - $1,350,000*
Included in the Terms of Proposals for the Bonds is a
provision that permits the City or the Port Authority to
increase or reduce the principal amount of the Bonds
in any of the maturities. This allows for any necessary
adjustments required based on final interest rates and
issuance costs.
Repayment Term The City Bonds will mature annually February 1, 2012
through 2018. Interest will be payable semi- annually
each February 1 and August 1, commencing
August 1, 2011.
Security, Source of Payment and Payment Cycle
(a) Security
(b) Source of Payment
(c) Payment Cycle
The Port Authority Bonds will mature annually
February 1, 2013 through 2022. Interest will be
payable semi - annually each February 1 and August 1,
commencing August 1, 2011.
The Bonds will be general obligations of the City,
secured by its full faith and credit and taxing power.
The City Bonds will be repaid with net revenues of the
City's water and storm water utilities.
The Port Authority Bonds will be repaid with ad
valorem property taxes.
The City will make its first levy for the Bonds in 2010
for collection in 2011.
Each year's first -half collection of taxes will be used to
pay the interest payment due August 1 in the year of
collection. Second -half collections of taxes plus
`Preliminary, subject to change. Page 2
City of Rosemount, Minnesota
Port Authority of Rosemount
October 14, 2010
9.
Prepayment Provisions
surplus first -half collections will be used to pay the
February 1 principal and interest payment due in the
following year.
Due to their short duration, and in order to assure the
best pricing possible, the City Bonds will not be subject
to prepayment prior to their stated maturity.
The Port Authority may elect on February 1, 2019, and
on any date thereafter, to prepay the Port Authority
Bonds due on or after February 1, 2020, at a price of
par plus accrued interest.
Credit Rating Comments An application will be made to Moody's Investors
Service for a rating on the Bonds. The City's general
obligation debt is currently rated "Aa2" by Moody's.
10. Term Bonds
11. Federal Treasury Regulations Concerning Tax -
Exempt Obligations
(a) Bank Qualification
We have included a provision that permits the
underwriters to combine multiple maturity years into a
term bond, subject to mandatory redemption on the
same maturity schedule provided in the Terms of
Proposal. The advantage to the underwriter is that it
provides large blocks of bonds, which are more
attractive to bond funds, and certain pension funds.
This in turn is a benefit to the Issuers since selling
larger blocks of bonds reduces the risk to the
underwriter, allowing them to lower their costs and the
interest coupons. Since the Bonds are being offered
on a competitive bid basis and awarded on the lowest
true interest cost, the Issuers will award the Bonds to
the best bid regardless of whether term bonds are
chosen or not.
Under Federal Tax Law, financial institutions cannot
deduct from income for federal income tax purposes,
expense that is allocable to carrying and acquiring tax -
exempt bonds. There is an exemption to this for "bank
qualified" bonds, which can be so designated if the
issuer does not issue more than $30 million of tax
exempt bonds in a calendar year. Issues that are
bank qualified generally receive slightly lower interest
Page 3
City of Rosemount, Minnesota
Port Authority of Rosemount
October 14, 2010
rates than issues that are not bank qualified. Since
the Issuers expect to issue less than $30 million of tax
exempt obligations in 2010, this Issue is designated as
bank qualified.
The American Recovery and Reinvestment Tax Act
of 2009 increased the previous bank qualification limit
of $10 million to $30 million for tax - exempt bonds
issued in 2009 and 2010.
(b) Arbitrage Compliance All tax - exempt issues are subject to the federal
arbitrage and rebate requirements, which require all
excess earnings created by the financing to be rebated
to the U.S. Treasury. The requirements generally
cover two categories: bond proceeds and debt service
funds. There are exemptions from rebate that may
apply in both of these categories in regards to the
Bonds.
(i) Rebate Bond proceeds, defined generally as both the original
principal of the issue and the investment earnings on
the principal, have 6,18 and 24 month spend down
exemption periods. If all of the proceeds are
expended during one of those exemption periods, the
issuer is exempt from rebate and may retain the
excess earnings.
The net proceeds of the City Bonds will be expended
within 90 days of receipt. Therefore, City Bond
proceeds will not be subject to rebate.
The net proceeds of the Port Authority Bonds will be
invested in an escrow account at a yield no greater
than the yield on the Port Authority Bonds Bonds.
Therefore, Port Authority Bonds Bond proceeds will
not be subject to rebate.
(ii) Yield Restriction The City must maintain a bona fide debt service fund
for the Bonds or be subject to yield restriction. Yield
restriction requires restricting the investment return in
the debt service fund to the yield on the Bonds. A
bona fide debt service fund is a fund for which there is
an equal matching of revenue to debt service expense,
with the fund spent down each year to a carry over
Page 4
City of Rosemount, Minnesota
Port Authority of Rosemount
October 14, 2010
permitted equal to the greater of the investment
earnings in the fund during the prior year or 1/12 the
debt service of the prior year.
The City should monitor the debt service fund of the
Bonds to ensure yield restriction provisions of the
federal arbitrage rules are met.
Springsted provides arbitrage compliance services for
the City under a separate contract. An amendment to
that contract adding the Bonds has been provided to
City staff.
(d) Economic Life The average life of the Bonds cannot exceed 120% of
the economic life of the projects to be refinanced.
Because the average lives of the new issues are
shorter than the remaining average lives of the City
Refunded Bonds and the PA Refunded Bonds, the
Issues are within the economic life requirements.
12. Continuing Disclosure The Bonds are subject to continuing disclosure
requirements set forth by the Securities and Exchange
Commission. The SEC rules require the underwriter of
the Bonds to provide an annual update of certain
Official Statement information and report any material
events to bond holders. The purchaser therefore
requires the Issuers to commit to providing such
information under a continuing disclosure agreement
or "undertaking." If the Issuers does not enter into
such an agreement prior to the offering of the debt,
underwriters will not offer a bid to purchase the Issue.
13. Attachments
Springsted currently provides continuing disclosure
services for the Issuers under a separate contract. An
amendment to that contract adding these Issues has
been provided to Issuers staff.
City Bonds
Refunding Schedules
Port Authority Bonds
• Refunding Schedules
Terms of Proposals
Page 5
City of Rosemount, Minnesota
Port Authority of Rosemount
October 14, 2010
DISCUSSION
City Bonds
Proceeds of the City Bonds will be used to refund (i) the February 1, 2012 through 2017 maturities of the City's
General Obligation Storm Water Revenue Bonds, Series 2001 B, dated August 15, 2001 and currently outstanding in
the aggregate principal amount of $635,000; (ii) the February 1, 2012 through 2018 maturities of the City's General
Obligation Water and Storm Water Revenue Bonds, Series 2002B, dated July 1, 2002 and currently outstanding in
the aggregate principal amount of $745,000; and (ii) the February 1, 2012 through 2014 maturities of the City's
General Obligation Water Revenue Bonds, Series 20038, dated July 1, 2003 and currently outstanding in the
aggregate principal amount of $510,000. This refunding transaction is being undertaken to achieve interest cost
savings.
The City Refunded Bonds were originally issued to finance water and storm water utility improvements in various
areas of the City.
On February 1, 2011, the call date, the City will use (i) previously collected water utility revenues to pay the scheduled
February 1, 2011 principal and interest payment on the City Refunded Bonds and (ii) the proceeds of the City Bonds
plus $100,000 of funds on hand in the debt service fund to redeem the remaining $1,610,000 outstanding principal on
the City Refunded Bonds. Beginning with the August 1, 2011 interest payment, the City will begin to make debt
service payments on the City Bonds, realizing the interest cost savings. The City will need to invest the proceeds
of the City Bonds for the period between the closing date and the February 1, 2011 call date in order to
achieve the savings level estimated for this transaction.
Based on current interest rate estimates, the refunding is projected to result in the City realizing an average cash flow
savings of approximately $35,800 per year. This results in future value savings of approximately $126,155, with a net
present value benefit to the City of approximately $114,500. These estimates are net of all costs associated with the
refunding.
We have attached a set of schedules that summarize the refunding statistics and the projected savings resulting from
the sale of the City Bonds. These schedules include the following information about the City Bonds:
• Preliminary Feasibility Summary: shows the detailed sources and uses of funds for the City Bonds and
statistical information relating to the refunding transaction — page 9.
• Debt Service to Call and to Maturity: shows the City Refunded Bonds' remaining debt service to the call date
and to maturity — pages 10 to 12.
• Debt Service Schedule: shows the new projected debt service on the City Bonds, based on current estimated
interest rates — page 13.
• Debt Service Comparison: shows the debt service comparison and the projected annual cash flow savings of
the City Bonds to the City Refunded Bonds, on an aggregate and individual issue basis — pages 14 to 17.
Page 6
City of Rosemount, Minnesota
Port Authority of Rosemount
October 14, 2010
The City Bonds will be general obligations of the City, secured by its full faith and credit and taxing power. The City
Bonds will be repaid from net revenues of the City's water and storm water utilities.
In addition to the City Bonds and the City Refunded Bonds, the City has three other series of general obligation
bonds, with an outstanding aggregate principal of $3,530,000 which are payable from the revenues of the City's water
or storm water utilities.
Port Authority Bonds
Proceeds of the Port Authority Bonds will be used to refund the February 1, 2013 through 2022 maturities of the City's
General Obligation Public Facility Bonds, Series 2001 C, dated August 15, 2001 and currently outstanding in the
aggregate principal amount of $1,465,000. This refunding transaction is being undertaken to achieve interest cost
savings.
The Refunded Bonds were originally issued to finance renovation and expansion of the City Hall.
The issuance of the Port Authority Bonds is being conducted as a crossover refunding, in which the proceeds of the
refunding bonds (new issue) are placed in an escrow account with a major bank and invested in government
securities. These securities and their earnings are structured to pay interest on the new bonds until the optional
prepayment date (call date) of the PA Refunded Bonds (old issue), at which time the escrow account will crossover
and prepay all of the remaining principal of the PA Refunded Bonds. The Port Authority will continue to pay the
originally scheduled debt service on the PA Refunded Bonds until the call date of February 1, 2012. After the call
date, the Port Authority will cross over and begin making debt service payments on the Port Authority Bonds, taking
advantage of the lower interest rates.
Based on current interest rate estimates, the refunding is projected to result in the Port Authority realizing an average
cash flow savings of approximately $9,555 per year. This results in future value savings of approximately $95,675,
with a net present value benefit to the Port Authority of approximately $82,014. These estimates are net of all costs
associated with the refunding.
We have attached a set of schedules that summarize the refunding statistics and the projected savings resulting from
the sale of the Port Authority Bonds. These schedules include the following information about the Port Authority
Bonds:
• Preliminary Feasibility Summary: shows the detailed sources and uses of funds for the Port Authority Bonds
and statistical information relating to the refunding transaction — page 18.
• Debt Service to Call and to Maturity: shows the PA Refunded Bonds' remaining debt service to the call date
and to maturity— page 19.
• Debt Service Schedule: shows the new projected debt service on the Port Authority Bonds, based on current
estimated interest rates — page 20.
• Debt Service Comparison: shows the debt service comparison and the projected annual cash flow savings of
the Port Authority Bonds to the PA Refunded Bonds — page 21.
Page 7
City of Rosemount, Minnesota
Port Authority of Rosemount
October 14, 2010
The Port Authority Bonds will be paid solely from ad valorem tax levies by the City. The City will make their first levy
for the Port Authority Bonds in 2011 for collection in 2012. Until then, the levy for the PA Refunded Bonds will remain
in place. Each year's collection of taxes will be used to make the August 1 interest payment due in the collection year
and the February 1 principal and interest payment due in the following year.
The success of any refunding transaction is in a large part dependent upon market conditions at the time the Bonds
are sold. Springsted will continue to monitor the market prior to the sale date and will keep you apprised of any
change in conditions that might affect the success of this refunding.
Springsted is pleased to again be of service to the City of Rosemount and the Rosemount Port Authority.
Respectfully submitted,
SPRINGSTED Incorporated
Provided to Staff: Rebate and Continuing Disclosure Contract Amendments
Page 8
$1,550,000
City of Rosemount, Minnesota
General Obligation Utility Revenue Refunding Bonds, Series 2010
Current Refunding of Series 2001 B, 2002B, 2003B
Preliminary Feasibility Summary
Dated 12101/2010 1 Delivered 12/01/2010
Series 2010 Series 2010 Series 2010 Issue
Ref 2001B Ref 20026 Ref 200313 Summary
Sources Of Funds
Par Amount of Bonds ................................ ............................... $ 470 ,000.00 $680,000.00 $400,000.00 $1,550,000.00
Transfers from Prior Issue Debt Service Funds ........................ 100,000.00 - - 100,000.00
Total Sources ........................................... ............................... $ 570,000.00 $680,000.00 $400,000.00 $1,650,000.00
Uses Of Funds
Deposit to Current Refunding Fund ........... ...............................
555,000.00
665,000.00
390,000.00
1,610,000.00
Costs of Issuance ...................................... ...............................
8,187.10
11,845.16
6,967.74
27,000.00
Total Underwriter's Discount (0. 825%) ..... ...............................
2,937.50
4,250.00
2,500.00
9,687.50
Rounding Amount ...................................... ...............................
3,875.40
(1,095.16)
532.26
3,312.50
Total Uses ................................................ ...............................
$570,000.00
$680,000.00
$400,000.00
$1,650,000.00
Flow of Funds Detail
State and Local Government Series (SLGS) rates for ..............
Date of OMP Candidates ........................... ...............................
Primary Purpose Fund Solution Method .... ...............................
Gross Funded
Gross Funded
Gross Funded
Gross Funded
Total Cost of Investments .......................... ...............................
$555,000.00
$665,000.00
$390,000.00
$1,610,000.00
Total Draws ............................................... ...............................
$555,000.00
$665,000.00
$390,000.00
$1,610,000.00
PV Analysis Summary (Net to Net)
2.1412013%
2.2480626%
2.0646285%
2.1844155%
Net PV Cashflow Savings @ 1. 482 %(Bond Yield) ...................
147,430.27
56,540.74
7,219.44
211,190.45
Transfers from Prior Issue Debt Service Fund ..........................
(100,000.00)
-
-
(100,000.00)
Contingency or Rounding Amount ............. ...............................
3,875.40
(1,095.16)
532.26
3,312.50
Net Present Value Benefit ......................... ...............................
$51,305.67
$55,445.58
$7,751.70
$114,502.95
Net PV Benefit/ $1,610,000 Refunded Principal .....................
Net PV Benefit / $1,550,000 Refunding Principal ....................
Bond Statistics
AverageLife .............................................. ...............................
AverageCoupon ....................................... ...............................
9.244% 8.338% 1.988% 7.112%
10.916% 8.154% 1.938% 7.387%
3.709 Years 4.225 Years 2.179 Years 3.541 Years
1.4753587% 1.6612528% 0.9465109% 1.4886882%
Net Interest Cost ( NIC) .............................. ...............................
1.6438577%
1.8091646%
1.2333178%
1.6651990%
Bond Yield for Arbitrage Purposes ............ ...............................
1.4819946%
1.4819946%
1.4819946%
1.4819946%
True Interest Cost ( TIC) ............................ ...............................
1.6456478%
1.8091300%
1.2376214%
1.6651349%
All Inclusive Cost ( AIC) .............................. ...............................
2.1412013%
2.2480626%
2.0646285%
2.1844155%
ben- 2010RW2001B,20 / cvueAmm y / 101412010 / 826au
Springsted
Page 9
$1,140,000
City of Rosemount, Minnesota
General Obligation Storm Water Revenue Bonds, Series 2001 B
Debt Service To Call And To Maturity
Date
Refunded
Bonds
D/S To Cali Principal
Coupon
Interest
Refunded D/S
12/01/2010
-
-
_
_
02/01/2011
555,000.00
555,000.00
4.250%
(0.00)
(0.00)
08/01/2011
-
- -
-
12,945.63
12,945.63
02/01/2012
-
- 80,000.00
4.400%
12,945.63
92,945.63
08/01/2012
-
- -
-
11,185.63
11,185.63
02/01/2013
-
- 85,000.00
4.500%
11,185.63
96,185.63
08/01/2013
-
- -
-
9,273.13
9,273.13
02/01/2014
-
- 90,000.00
4.625%
9,273.13
99,273.13
08101/2014
-
- -
-
7,191.88
7,191.88
02/01/2015
-
- 95,000.00
4.700%
7,191.88
102,191.88
08101/2015
-
- -
-
4,959.38
4,959.38
02101/2016
-
- 100,000.00
4.800%
4,959.38
104,959.38
08/01/2016
-
- -
-
2,559.38
2,559.38
02/01/2017
-
- 105,000.00
4.875%
2,559.38
107,559.38
Total
$555,000.00
$555,000.00 $555,000.00
-
$96,230.06
$651,230.06
Yield Statistics
Base date for Avg. Life & Avg. Coupon Calculation ............................................................................. ............................... 12/01/2010
AverageLife ........................................................................................................................................ ............................... 3.824 Years
AverageCoupon .................................................................................................................................. ............................... 4.5338073%
Weighted Average Maturity (Par Basis) ............................................................................................... ............................... 3.824 Years
Refunding Bond Information
RefundingDated Date ......................................................................................................................... ............................... 12/01/2010
RefundingDelivery Date ...................................................................................................................... ............................... 12/01/2010
* irr2001B / ANCLUFMPM / 101412010 / 8:27AM
Springsted
Page 10
$1,195,000
City of Rosemount, Minnesota
G. O. Water & Storm Revenue Bonds, Series 2002B
Debt Service To Call And To Maturity
Date
Refunded D/S To Call
Bonds
Principal
Coupon
Interest
Refunded D/S
12/0112010
- -
_
_
02/01/2011
665,000.00 665,000.00
4.000%
08/01/2011
- -
-
-
14,357.50
14,357.50
02/01/2012
- -
80,000.00
4.000%
14,357.50
94,357.50
08101/2012
- -
-
-
12,757.50
12,757.50
02/01/2013
- -
90,000.00
4.100%
12,757.50
102,757.50
08/01/2013
- -
-
-
10,912.50
10,912.50
02/01/2014
- -
90,000.00
4.200°x6
10,912.50
100,912.50
08/01/2014
- -
-
-
9,022.50
9,022.50
02/01/2015
- -
95,000.00
4.300%
9,022.50
104,022.50
08/01/2015
- -
-
-
6,980.00
6,980.00
02/01/2016
- -
100,000.00
4.400%
6,980.00
106,980.00
08/01/2016
- -
-
-
4,780.00
4,780.00
02/0112017
- -
100,000.00
4.500%
4,780.00
104,780.00
08/01/2017
- -
-
-
2,530.00
2,530.00
02/0112018
- -
110,000.00
4.600%
2,530.00
112,530.00
Total
$665,000.00 $665,000.00
$665,000.00
-
$122,680.00
$787,680.00
Yield Statistics
Base date for Avg. Life & Avg. Coupon Calculation ............................................................................. ............................... 12/01/2010
AverageLife ........................................................................................................................................ ............................... 4.347 Years
AverageCoupon .................................................................................................................................. ............................... 4.2437590%
Weighted Average Maturity (Par Basis) ................................................................................................ ............................... 4.347 Years
Refunding Bond Information
RefundingDated Date ......................................................................................................................... ............................... 12/01/2010
RefundingDelivery Date ...................................................................................................................... ............................... 1210112010
Aeries 20028 / AINGUIT IIP"E / 101412010 / 8:27AM
Springsted
Page 11
$1,170,000
City of Rosemount, Minnesota
General Obligation Water Revenue Bonds, Series 2003B
Debt Service To Call And To Maturity
Date
Refunded D/S To Call
Bonds
Principal
Coupon
Interest
Refunded D/S
12/01/2010
- -
-
-
02/01/2011
390,000.00 390,000.00
-
2.850%
-
08/01/2011
- -
-
-
6,216.25
6,216.25
02/01/2012
- -
125,000.00
3.000%
6,216.25
131,216.25
08/01/2012
- -
-
-
4,341.25
4,341.25
02/01/2013
- -
130,000.00
3.200%
4,341.25
134,341.25
08/01/2013
- -
-
-
2,261.25
2,261.25
02/01/2014
- -
135,000.00
3.350%
2,261.25
137,261.25
Total
$390,000.00 $390,000.00
$390,000.00
-
$25,637.50
$415,637.50
Yield Statistics
Base date for Avg. Life & Avg. Coupon Calculation ............................................................................. ............................... 12/01/2010
AverageLife ........................................................................................................................................ ............................... 2.192 Years
AverageCoupon .................................................................................................................................. ............................... 2.9985380%
Weighted Average Maturity (Par Basis) ............................................................................................... ............................... 2.192 Years
Refunding Bond Information
RefundingDated Date ......................................................................................................................... ............................... 12101/2010
RefundingDelivery Date ...................................................................................................................... ............................... 12/01/2010
.*e $20Id4B / J%NGLBPCBPCfL / 10141ZOIO / 8,27AM
Springsted
Page 12
$1,550,000
City of Rosemount, Minnesota
General Obligation Utility Revenue Refunding Bonds, Series 2010
Current Refunding of Series 2001 B, 2002B, 2003B
Debt Service Schedule
Date
Principal
Coupon
Interest
Total P +1
02/01/2011
-
_
_
02/01/2012
295,000.00
0.700%
22,359.17
317,359.17
02/01/2013
310, 000.00
0.850%
17,100.00
327,100.00
02/01 /2014
310,000.00
1.100%
14,465.00
324,465.00
02/01 /2015
175,000.00
1.350%
11,055.00
186,055.00
02/01/2016
180,000.00
1.650%,
8,692.50
188,692.50
02/01/2017
175,000.00
1.950%
5,722.50
180,722.50
02/01/2018
105,000.00
2.200%
2,310.00
107,310.00
Total
$1,550,000.00
-
$81,704.17
$1,631,704.17
Yield Statistics
BondYear Dollars ............................................................................................................................. ............................... $5,488.33
AverageWe ...................................................................................................................................... ............................... 3.541 Years
AverageCoupon ................................................................................................................................ ............................... 1.4886882%
NetInterest Cost ( NIC) ...................................................................................................................... ............................... 1.6651990%
TrueInterest Cost ( TIC) ..................................................................................................................... ............................... 1.6651349%
Bond Yield for Arbitrage Purposes ..................................................................................................... ............................... 1.4819946%
AllInclusive Cost ( AIC) ...................................................................................................................... ............................... 2.1844155%
IRS Form 8038
NetInterest Cost ............................................................................................................................... ............................... 1.4886882%
WeightedAverage Maturity ............................................................................................................... ............................... 3.541 Years
Series 2010Ref20101B,20 / AMCSUMMV7 / 10/4/1070 / 827AM
Springsted
Page 13
$1,550,000
City of Rosemount, Minnesota
General Obligation Utility Revenue Refunding Bonds, Series 2010
Current Refunding of Series 2001B, 2002B, 2003B
Debt Service Comparison
Date
Total P +I Existing D/S
Net New D/S
Old Net D/S
Savings
02/01/2011
- 318,529.38
318,529.38
318,529.38
-
02101/2012
317,359.17 -
317,359.17
352,038.76
34,679.59
02101/2013
327,100.00 -
327,100.00
361,568.76
34,468.76
02/01/2014
324,465.00 -
324,465.00
359,893.76
35,428.76
02101/2015
186,055.00 -
186,055.00
222,428.76
36,373.76
02/01/2016
188,692.50 -
188,692.50
223,878.76
35,186.26
02/01/2017
180,722.50 -
180,722.50
219,678.76
38,956.26
02/01/2018
107,310.00 -
107,310.00
115,060.00
7,750.00
Total
$1,631,704.17 $318,529.38
$1,950,233.55
$2,173,076.94
$222,843.39
PV Analysis Summary (Net to Net)
NetFV Cashflow Savings .................................................................................. ............................... .....................
222,843.39
Gross PV Debt Service Savings ............................................................................................. ...............................
211,190.45
Net PV Cashflow Savings @ 1.482 %(Bond Yield) ................................................................. ...............................
211,190.45
Transfers from Prior Issue Debt Service Fund ........................................................................ ...............................
(100,000.00)
Contingencyor Rounding Amount .......................................................................................... ...............................
3,312.50
NetFuture Value Benefit ......................................................................................................... ...............................
$126,155.89
NetPresent Value Benefit ....................................................................................................... ...............................
$114,502.95
Net PV Benefit / $234,963.67 PV Refunded Interest ............................................................... ...............................
48.732%
Net PV Benefit / $1,761,190.45 PV Refunded Debt Service ................................................... ...............................
6.501%
Net PV Benefit/ $1,610,000 Refunded Principal .................................................................... ...............................
7.112%
Net PV Benefit / $1,550,000 Refunding Principal ................................................................... ...............................
7.387%
Refunding Bond Information
RefundingDated Date ............................................................................................................ ...............................
12101/2010
RefundingDelivery Date ......................................................................................................... ...............................
12101/2010
Series 2010&f2001B, 20 / Isere Summwy / 10/4/2010 / 8,26 AM
Springsted
Page 14
$470,000
City of Rosemount, Minnesota
General Obligation Water Revenue Refunding Bonds, Series 2010
Current Refunding of Series 2001 B
Debt Service Comparison
Date
Total P +I Existing D/S
Net New D/S
Old Net D/S
Savings
02101/2011
- 94,645.63
94,645.63
94,645.63
(100,000.00)
02/01/2012
82,002.92 -
82,002.92
105,891.26
23,888.34
02101/2013
80,477.50 -
80,477.50
107,371.26
26,893.76
02/01/2014
84,840.00 -
84,840.00
108,546.26
23,706.26
02/01/2015
83,960.00 -
83,960.00
109,383.76
25,423.76
02/01/2016
82,880.00 -
82,880.00
109,918.76
27,038.76
02/01/2017
81,560.00 -
81,560.00
110,118.76
28,558.76
Total
$495,720.42 $94,645.63
$590,366.05
$745,875.69
$155,509.64
PV Analysis Summary (Net to Net)
NetFV Cashflow Savings ................................................................................................................... ...............................
155,509.64
Gross PV Debt Service Savings ......................................................................................................... ...............................
147,430.27
Net PV Cashflow Savings @ 1.482 %(Bond Yield) ............................................................................ ...............................
147,430.27
Transfers from Prior Issue Debt Service Fund ................................................................................... ...............................
(100,000.00)
Contingency or Rounding Amount ...................................................................................................... ...............................
3,875.40
NetFuture Value Benefit .................................................................................................................... ...............................
$59,385.04
NetPresent Value Benefit .................................................................................................................. ...............................
$51,305.67
Net PV Benefit / $92,545.65 PV Refunded Interest ............................................................................ ...............................
55.438%
Net PV Benefit / $617,240.21 PV Refunded Debt Service .................................................................. ...............................
8.312%
Net PV Benefit / $555,000 Refunded Principal ................................................................................ ...............................
9.244%
Net PV Benefit / $470,000 Refunding Principal ............................................................................... ...............................
10.916%
Refunding Bond Information
RefundingDated Date ........................................................................................................................ ...............................
12/01/2010
RefundingDelivery Date .................................................................................................................... ...............................
12/01/2010
.series 2010 Ref 20018, 20 / Series 2010 Ref 20078 / 10/ 412010 / 8,27AM
Springsted
Page 15
$680,000
City of Rosemount, Minnesota
General Obligation Water Revenue Refunding Bonds, Series 2010
Current Refunding of Series 2002B
Debt Service Comparison
Date
Total P +I Existing D/S
Net New D/S
Old Net D/S
Savings
02/01/2011
- 95,957.50
95,957.50
95,957.50
02/01/2012
101,223.33 -
101,223.33
108,715.00
7,491.67
02/0112013
108,990.00 -
108,990.00
115,515.00
6,525.00
02/01/2014
103,140.00 -
103,140.00
111,825.00
8,685.00
02/01/2015
102,095.00 -
102,095.00
113,045.00
10,950.00
02101/2016
105,812.50 -
105,812.50
113,960.00
8,147.50
02/01/2017
99,162.50 -
99,162.50
109,560.00
10,397.50
02/01/2018
107,310.00 -
107,310.00
115,060.00
7,750.00
Total
$727,733.33 $95,957.50
$823,690.83
$883,637.50
$59,946.67
PV Analysis Summary (Net to Net)
NetFV Cashflow Savings ...................................................................................................................... ............................... 59,946.67
GrossPV Debt Service Savings ............................................................................................................ ............................... 56,540.74
Net PV Cashflow Savings @ 1.482 %(Bond Yield) .......................................................... ............................... ...................... 56,540.74
Contingency or Rounding Amount ......................................................................................................... ............................... (1,095.16)
NetFuture Value Benefit ........................................................................................................................ ............................... $58,851.51
NetPresent Value Benefit ...................................................................................................................... ............................... $55,445.58
Net PV Benefit / $117,380.39 PV Refunded Interest .............................................................................. ............................... 47.236%
Net PV Benefit / $741,307.39 PV Refunded Debt Service ..................................................................... ............................... 7.479%
Net PV Benefit / $665,000 Refunded Principal .................................................................................... ............................... 8.338%
Net PV Benefit / $680,000 Refunding Principal ................................................................................... ............................... 8.154%
Refunding Bond Information
RefundingDated Date ........................................................................................................................... ............................... 12/01/2010
RefundingDelivery Date ........................................................................................................................ ............................... 12/01/2010
Series 2010 RW20018, 20 / Series 2010 RW20028 / 101412010 / 8:2i AM
Springsted
Page 16
City of Rosemount, Minnesota
General Obligation Water Revenue Refunding Bonds, Series 2O1O
Current Refunding of Series 2003B
Debt Service Comparison
Date
Total P+I Existing D/S
Not Now DIS
Old Not DIS
Savings
02/01/2011
- 127,926.25
127,926.25
127,926.25
02/01/2012
134,132.92 -
134,132.92
137,432.50
3,299.58
02/01/2013
137,632.50
137,632.50
138,682.50
1,050.00
02/01/2014
136,485.00
136,485.00
139,522.50
3,037.50
Total
$408,250.42 $127,926.25
$536,176.67
$543,563.75
$7,387.08
PV Analysis Summary (Not to Net)
NetFv000xnnw Savings ..................................................................................................................................................... 7,387.08
GrossPv Debt Service Savings ............................................................................................................................................ 7,21e.4*
Net PvCaohflxmv Savings %%1.4xu%Voonu Yield) ............................................................................................................... 7,219.44
Contingency mr Rounding Amount .------------------------------------------- 532.26
Net Future Value Benefit .----------------------------------------_-----' $7,91e.3*
Net Present Value Benefit ..---'----__'--.__----.--.-----.------'-----._--_ $7JeJ$
Net Pv Benefit /mcs,0ur.6uPv Refunded Interest .------------------------------------. 30.e60m
Net pv Benefit /*402,6^uooPv Refunded Debt Service .--------------------------------' 1y2e%
Net pv Benefit / *ueo,0VV Refunded Principal ................................................................................................................... 1.988%
Net PvWonmfit/ *w00,0VV Refunding Principal .................................................................................................................. 1.939%
Refunding Bond Information
Refunding Dated Date .-----------------.--------------------------------. 12101m00
Refunding Delivery Date .--------.-----------------------------------------. 12m1m010
^,-fi&'2010x*2001ff,20 /utics 2010 x**00619 /11412010 /8s7*w
Springsted
Page 17
$1,350,000
Port Authority of the City of Rosemount, Minnesota
General Obligation Public Facility Refunding Bonds, Series 2010
Crossover Refunding of Series 2001C
Preliminary Feasibility Summary
Dated 12/01/2010 1 Delivered 12/01/2010
Sources Of Funds
ParAmount of Bonds ....................................................................................................................... ............................... $1,350,000.00
TotalSources ................................................................................................................................. ............................... $1,350,000.00
Uses Of Funds
Deposit to Crossover Escrow Fund .................................................................................................. ............................... 1,305,764.41
Costsof Issuance ............................................................................................................................ ............................... 33,000.00
Total Underwriters Discount (0. 825%) ............................................................................................ ............................... 11,137.50
RoundingAmount ............................................................................................................................ ............................... 98.09
TotalUses ....................................................................................................................................... ............................... $1,350,000.00
ISSUES REFUNDED AND CALL INFORMATION
PriorIssue Call Price ........................................................................................................................ ............................... 100.000%
PriorIssue Call Date .................................................................................................. ............................... ...................... 2 /01/2012
SAVINGS INFORMATION
NetFuture Value Benefit .................................................................................................................. ............................... $95,675.59
NetPresent Value Benefit ................................................................................................................ ............................... $82,014.34
Net PV Benefit / $1,398,261.92 PV Refunded Debt Service ............................................................. ............................... 5.865%
BOND STATISTICS
AverageLife ..................................................................................................................................... ............................... 6.867 Years
AverageCoupon .............................................................................................................................. ............................... 2.5251529%
NetInterest Cost ( NIC) ..................................................................................................................... ............................... 2.6452985%
TrueInterest Cost ( TIC) ................................................................................................................... ............................... 2.6354708%
Series 2010 Ref2001CPA / Sens 2006 Ref 2000A / 101r12010 / 11:17AM
Springsted
Page 18
$2,045,000
Port Authority of the City of Rosemount, Minnesota
General Obligation Public Facility Bonds, Series 2001C
Debt Service To Call And To Maturity
Date
Refunded Interest to
Bonds Call
D/S To Call Principal
Coupon
Interest
Refunded D/S
02101/2011
- 30,797.50
30,797.50 -
4.500%
30,797.50
30,797.50
08/01/2011
- 30,797.50
30,797.50 -
-
30,797.50
30,797.50
02/01/2012
1,275,000.00 30,797.50
1,305,797.50 -
4.500%
30,797.50
30,797.50
08/01/2012
- -
-
-
30,797.50
30,797.50
02/01/2013
- -
- 100,000.00
4.500%
30,797.50
130,797.50
08/01/2013
- -
- -
-
28,547.50
28,547.50
02/01/2014
- -
- 105,000.00
4.700%
28,547.50
133,547.50
08101/2014
- -
- -
-
26,080.00
26,080.00
02101/2015
- -
- 110,000.00
4.700%
26,080.00
136,080.00
0810112015
- -
- -
-
23,495.00
23,495.00
02/01/2016
- -
- 115,000.00
4.800%
23,495.00
138,495.00
08101 /2016
- -
- -
-
20,735.00
20,735.00
02/01/2017
- -
- 125,000.00
4.800%
20,735.00
145,735.00
0810112017
- -
- -
-
17,735.00
17,735.00
02101/2018
- -
- 130,000.00
4.800%
17,735.00
147,735.00
08/01/2018
- -
- -
-
14,615.00
14,615.00
02/01/2019
- -
- 135,000.00
4.800%
14,615.00
149,615.00
08101/2019
- -
- -
-
11,375.00
11,375.00
02/01/2020
- -
- 145,000.00
5.000%
11,375.00
156,375.00
08101 /2020
- -
- -
-
7,750.00
7,750.00
02/01/2021
- -
- 150,000.00
5.000%
7,750.00
157,750.00
08/01/2021
- -
- -
-
4,000.00
4,000.00
02/01/2022
- -
- 160,000.00
5.000%
4,000.00
164,000.00
Total
$1,275,000.00 $92,392.50
$1,367,392.50 $1,275,000.00
-
$462,652.50
$1,737,652.50
Yield Statistics
Base date for Avg. Life & Avg. Coupon Calculation ........................................................................... ............................... 12/01/2010
AverageLife ...................................................................................................................................... ............................... 7.096 Years
AverageCoupon ................................................................................................................................ ............................... 4.8866630%
Weighted Average Maturity (Par Basis) ............................................................................................. ............................... 7.096 Years
Refunding Bond Information
RefundingDated Date ....................................................................................................................... ............................... 12/01/2010
RefundingDelivery Date .................................................................................................................... ............................... 12/01/2010
S- 200ICPmf / S/NMERMFOSE / 101512010 / 11:17AM
Springsted
Page 19
$1,350,000
Port Authority of the City of Rosemount, Minnesota
General Obligation Public Facility Refunding Bonds, Series 2010
Crossover Refunding of Series 2001 C
Debt Service Schedule
Date
Principal
Coupon
Interest
Total P +I
02/01/2011
-
02/01/2012
-
-
34,399.17
34,399.17
02/01/2013
125,000.00
0.900%
29,485.00
154,485.00
02/01/2014
125,000.00
1.100%
28,360.00
153,360.00
02/01/2015
125,000.00
1.400%
26,985.00
151,985.00
02/01/2016
125,000.00
1.700%
25,235.00
150,235.00
02/01/2017
135,000.00
2.000%
23,110.00
158,110.00
02/01/2018
135,000.00
2.250°x6
20,410.00
155,410.00
02/01/2019
135,000.00
2.500%
17,372.50
152,372.50
02/01/2020
145,000.00
2.650%
13,997.50
158,997.50
02/01/2021
145,000.00
3.850%
10,155.00
155,155.00
02/01/2022
155,000.00
2.950%
4,572.50
159,572.50
Total
$1,350,000.00
-
$234,081.67
$1,584,081.67
Yield Statistics
BondYear Dollars .............................................................................................................................. ............................... $9,270.00
AverageLife ....................................................................................................................................... ............................... 6.867 Years
AverageCoupon ................................................................................................................................ ............................... 2.5251529%
NetInterest Cost ( NIC) ....................................................................................................................... ............................... 2.6452985%
True Interest Cost ( TIC) ..................................................................................................................... ............................... 2.6354708%
Bond Yield for Arbitrage Purposes ..................................................................................................... ............................... 2.5025547%
All Inclusive Cost ( AIC) ...................................................................................................................... ............................... 3.0379150%
IRS Form 8038
NetInterest Cost ................................................................................................................................ ............................... 2.5251529%
WeightedAverage Maturity ................................................................................................................ ............................... 6.867 Years
Seriav 201O Ref2001CPA / Series 2006 Ref2000A / I01.11y010 / 11 ;17AM
Springsted
Page 20
$1,350,000
Port Authority of the City of Rosemount, Minnesota
General Obligation Public Facility Refunding Bonds, Series 2010
Crossover Refunding of Series 2001 C
Debt Service Comparison
Data
Total P +I
Escrow Existing D/S
Net New D/S
Old Net D/S
Savings
02/01/2011
-
130,072.50
130,072.50
130,072.50
-
02/01/2012
34,399.17
(1,309,399.17) 1,435,870.00
160,870.00
160,870.00
-
02/01/2013
154,485.00
-
154,485.00
161,595.00
7,110.00
02/01/2014
153,360.00
-
153,360.00
162,095.00
8,735.00
02101/2015
151,985.00
- -
151,985.00
162,160.00
10,175.00
02101/2016
150,235.00
- -
150,235.00
161,990.00
11,755.00
02/01/2017
158,110.00
- -
158,110.00
166,470.00
8,360.00
02/01/2018
155,410.00
- -
155,410.00
165,470.00
10,060.00
02/01/2019
152,372.50
- -
152,372.50
164,230.00
11,857.50
02/01/2020
158,997.50
- -
158,997.50
167,750.00
8,752.50
020/2021
155,155.00
- -
155,155.00
165,500.00
10,345.00
02101/2022
159,572.50
- -
159,572.50
168,000.00
8,427.50
Total
$1,584,081.67
(1,309,399.17) $1,565,942.50
$1,840,625.00
$1,936,202.50
$95,577.50
PV Analysis Summary (Net to Net)
NetFV Cashflow Savings .................................................................................................................. ...............................
95,577.50
GrossPV Debt Service Savings ........................................................................................................ ...............................
81,916.25
Net PV Cashflow Savings (d 2.503 %(Bond Yield) ............................................................................ ...............................
81,916.25
Contingencyor Rounding Amount ........................................................................... ............................... ..........................
98.09
NetFuture Value Benefit ................................................................................................................... ...............................
$95,675.59
NetPresent Value Benefit ............................................................................................ ............................... .....................
$82,014.34
Net PV Benefit/ $326,835.64 PV Refunded Interest .......................................................................... ...............................
25.093%
Net PV Benefit / $1,398,261.92 PV Refunded Debt Service .............................................................. ...............................
5.865%
Net PV Benefit / $1,275,000 Refunded Principal ............................................................................... ...............................
6.432%
Net PV Benefit / $1,350,000 Refunding Principal .............................................................................. ...............................
6.075%
Refunding Bond Information
RefundingDated Date ....................................................................................................................... ...............................
12/01/2010
RefundingDelivery Date .................................................................................................................... ...............................
12/01/2010
Series 2010 Ref2001C PA / Series 1006 Ref1000A / 101512010 / 11:17AA4
Springsted
Page 21
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,550,000`
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION UTILITY REVENUE REFUNDING BONDS, SERIES 2010A
(BOOK ENTRY ONLY)
Proposals for the Bonds and the Good Faith Deposit ( "Deposit ") will be received on Tuesday,
November 16, 2010, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals will be opened
and tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 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 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, 2nd Floor, New York, New York 10018
Customer Support: (212) 849 -5000
Preliminary, subject to change.
Page 22
DETAILS OF THE BONDS
The Bonds will be dated December 1, 2010, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2011. 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:
2012 $295,000 2014 $310,000 2016 $180,000 2018 $105,000
2013 $310,000 2015 $175,000 2017 $175,000
The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds or the maturity amounts 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 at
a price of par plus accrued interest to the date of redemption and must conform to the maturity
schedule set forth above. In order to designate term bonds, the proposal must specify "Years of
Term Maturities" in the spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
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. In addition, the City will pledge net
revenues of the City's water and storm sewer utility systems. The proceeds will be used to
refund (i) the February 1, 2012 through February 1, 2017 maturities of the City's General
Obligation Storm Water Revenue Bonds, Series 2001B, dated August 15, 2001; (ii) the
February 1, 2012 through February 1, 2018 maturities of the City's General Obligation Water
Page 23
and Storm Water Revenue Bonds, Series 20028, dated July 1, 2002; and (iii) the February 1,
2012 through February 1, 2014 maturities of the City's General Obligation Water Revenue
Bonds, Series 20038, dated July 1, 2003.
BIDDING PARAMETERS
Proposals shall be for not less than $1,540,312 and accrued interest on the total principal
amount of the Bonds.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made. Rates shall be in integral multiples
of 5/100 or 1/8 of 1 %. Rates are not required to be in level or ascending order; however, the
rate for any maturity cannot be more than 1% lower than the highest rate of any of the
preceding maturities. Bonds of the same maturity shall bear a single rate from the date of the
Bonds to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
Proposals, regardless of method of submission, shall be accompanied by a Deposit in the
amount of $15,500, in the form of a certified or cashier's check, a wire transfer, or Financial
Surety Bond and delivered to Springsted Incorporated prior to the time proposals will be
opened. Each bidder shall be solely responsible for the timely delivery of their Deposit whether
by check, wire transfer or Financial Surety Bond. Neither the City nor Springsted Incorporated
have any liability for delays in the transmission of the Deposit.
Any Deposit made by certified or cashier's check should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota
55101.
Any Deposit sent via wire transfer should be sent to Springsted Incorporated as the City's
agent according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
For credit to Springsted Incorporated, Account #635- 5007954
Contemporaneously with such wire transfer, the bidder shall send an e-mail to
bond services @springsted.com, including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies,
and (iv) the return wire instructions if such bidder is not awarded the Bonds.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the City
following the award of the Bonds. Any Deposit made by check or wire transfer by an
unsuccessful bidder will be returned to such bidder following City action relative to an award of
the Bonds.
If a Financial Surety Bond is used, it must be from an insurance company licensed to issue
such a bond in the State of Minnesota and pre- approved by the City. Such bond must be
submitted to Springsted Incorporated prior to the opening of the proposals. The Financial
Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial
Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then
that underwriter is required to submit its Deposit to the City in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time 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.
Page 24
The Deposit received from the purchaser, the amount of which will be deducted at settlement,
will be deposited by the City and no interest will accrue to the purchaser. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. 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 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 Kennedy & Graven, Chartered of Minneapolis,
Minnesota, and of customary closing papers, including a no- litigation certificate. On the date of
settlement, payment for the Bonds shall be made in federal, or equivalent, funds that shall be
received at the offices of the City or its designee not later than 12:00 Noon, Central Time.
Unless compliance with the terms of payment for the Bonds has been made impossible by
action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by
the City by reason of the purchaser's non - compliance with said terms for payment.
Page 25
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 60 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 October 19, 2010
BY ORDER OF THE CITY COUNCIL
/s/ Amy Domeier
City Clerk
Page 26
THE AUTHORITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING
BASIS:
TERMS OF PROPOSAL
$1,360,000'
ROSEMOUNT PORT AUTHORITY, MINNESOTA
GENERAL OBLIGATION PUBLIC FACILITY REFUNDING BONDS, SERIES 2010B
(BOOK ENTRY ONLY)
Proposals for the Bonds and the Good Faith Deposit ( "Deposit °) will be received on Tuesday,
November 16, 2010, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals will be opened
and tabulated. Consideration for award of the Bonds will be by the Board of Commissioners
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 Authority to purchase the Bonds regardless of
the manner in which the Proposal is submitted.
(a) Sealed Biddin4. 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
PARIT . 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 Authority, its agents nor PARITY® shall have any duty or
obligation to undertake registration to bid for any prospective bidder or to provide or ensure
electronic access to any qualified prospective bidder, and neither the Authority, its agents nor
PARITY® shall be responsible for a bidder's failure to register to bid or for any failure in the
proper operation of, or have any liability for any delays or interruptions of or any damages
caused by the services of PARITY®. The Authority is using the services of PARITY® solely as a
communication mechanism to conduct the electronic bidding for the Bonds, and PARITY® is not
an agent of the Authority.
If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this
Terms of Proposal shall control. Further information about PARITY®, including any fee charged,
may be obtained from:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849 -5000
Preliminary, subject to change.
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DETAILS OF THE BONDS
The Bonds will be dated December 1, 2010, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2011. 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:
2013 $125,000 2015 $125,000 2017 $135,000 2019 $135,000 2021 $145,000
2014 $125,000 2016 $125,000 2018 $135,000 2020 $145,000 2022 $155,000
* The Authority reserves the right, after proposals are opened and prior to award, to increase or reduce
the principal amount of the Bonds or the maturity amounts 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 at
a price of par plus accrued interest to the date of redemption and must conform to the maturity
schedule set forth above. In order to designate term bonds, the proposal must specify "Years of
Term Maturities" in the spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company ( "DTC),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The Authority will name the registrar which shall be subject to applicable SEC regulations. The
Authority will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Authority may elect on February 1, 2019, and on any day thereafter, to prepay Bonds due
on or after February 1, 2020. Redemption may be in whole or in part and if in part at the option
of the Authority and in such manner as the Authority shall determine. If less than all Bonds of a
maturity are called for redemption, the Authority will notify DTC of the particular amount of such
maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in
such maturity to be redeemed and each participant will then select by lot the beneficial
ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par
plus accrued interest.
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SECURITY AND PURPOSE
The Bonds will be general obligations of the City of Rosemount, Minnesota (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, 2013 through February 1, 2022 maturities
of the Authority's General Obligation Public Facilities Bonds, Series 2001C, dated August 15,
2001.
BIDDING PARAMETERS
Proposals shall be for not less than $1,338,862 and accrued interest on the total principal
amount of the Bonds.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the Authority 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 are not required to be in level or ascending order;
however, the rate for any maturity cannot be more than 1 % lower than the highest rate of any of
the preceding maturities. Bonds of the same maturity shall bear a single rate from the date of
the Bonds to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
Proposals, regardless of method of submission, shall be accompanied by a Deposit in the
amount of $13,500, in the form of a certified or cashier's check, a wire transfer, or Financial
Surety Bond and delivered to Springsted Incorporated prior to the time proposals will be
opened. Each bidder shall be solely responsible for the timely delivery of their Deposit whether
by check, wire transfer or Financial Surety Bond. Neither the Authority nor Springsted
Incorporated have any liability for delays in the transmission of the Deposit.
Any Deposit made by certified or cashier's check should be made payable to the Authority
and delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota
55101.
Any Deposit sent via wire transfer should be sent to Springsted Incorporated as the Authority's
agent according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
For credit to Springsted Incorporated, Account #635- 5007954
Contemporaneously with such wire transfer, the bidder shall send an, e-mail to
bond services @springsted.com, including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies,
and (iv) the return wire instructions if such bidder is not awarded the Bonds.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the
Authority following the award of the Bonds. Any Deposit made by check or wire transfer by an
unsuccessful bidder will be returned to such bidder following Authority action relative to an
award of the Bonds.
If a Financial Surety Bond is used, it must be from an insurance company licensed to issue
such a bond in the State of Minnesota and pre- approved by the Authority. 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
Page 29
that underwriter is required to submit its Deposit to the Authority 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 Authority to satisfy the
Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement,
will be deposited by the Authority and no interest will accrue to the purchaser. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the
Authority.
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 Authority's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The Authority will reserve the right to: (i) waive non - substantive informalities of any proposal or
of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and (iii) reject any proposal that the Authority determines to have failed to comply
with the terms herein.
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 Authority has requested and
received a rating on the Bonds from a rating agency, the Authority 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 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 Kennedy & Graven, Chartered of Minneapolis,
Minnesota, and of customary closing papers, including a no- litigation certificate. On the date of
settlement, payment for the Bonds shall be made in federal, or equivalent, funds that shall be
received at the offices of the Authority 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 Authority, or its agents, the purchaser shall be liable to the Authority for any loss
suffered by the Authority by reason of the purchaser's non - compliance with said terms for
payment.
Page 30
CONTINUING DISCLOSURE
On the date of actual issuance and delivery of the Bonds, the Authority will execute and deliver
a Continuing Disclosure Undertaking (the "Undertaking ") whereunder the Authority will covenant
for the benefit of the owners of the Bonds to provide certain financial and other information
about the Authority and notices of certain occurrences to information repositories as specified in
and required by SEC Rule 15c2- 12(b)(5).
OFFICIAL STATEMENT
The Authority 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 Authority, 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 Authority 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 Authority 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 55 copies of
the Official Statement and the addendum or addenda described above. The Authority
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 Authority (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 October 19, 2010 BY ORDER OF THE BOARD OF COMMISSIONERS
/s/ Amy Domeier
Port Authority Secretary
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