Loading...
HomeMy WebLinkAbout6.f. 2002A General Obligation Improvement Bond Issue - Authorizing Issuance and Setting BondCITY COUNCIL MEETING DATE May 21, 2002 CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION This item is on the agenda for your consideration in authorizing the issuance and setting the sale of General Obligation Improvement Bonds for 4 improvement projects, South Rose Park Improvements, Project #325, Connemara Phase 1, Project #330, Biscayne Avenue, Project #343, and 140 Street East, Project #349 Bids will be opened Tuesday, June 18, 2002, at 12 00 P 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 RECOMMENDED ACTION: Motion to adopt a RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $3,395,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2002A COUNCIL ACTION: AGENDA ITEM: 2002A G 0 Improvement Bond Issue Authorizing Issuance and Setting Bond Sale AGENDA SECTION: Consent PREPARED BY: Jeff May, Finance Director AGENA NOMA 1f dL6 ATTACHMENTS: Resolution and Recommendations APPROV I :Y: 4 CITY COUNCIL MEETING DATE May 21, 2002 CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION This item is on the agenda for your consideration in authorizing the issuance and setting the sale of General Obligation Improvement Bonds for 4 improvement projects, South Rose Park Improvements, Project #325, Connemara Phase 1, Project #330, Biscayne Avenue, Project #343, and 140 Street East, Project #349 Bids will be opened Tuesday, June 18, 2002, at 12 00 P 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 RECOMMENDED ACTION: Motion to adopt a RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $3,395,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2002A COUNCIL ACTION: CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $3,395,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2002A WHEREAS, the City Council of the City of Rosemount, Minnesota, has heretofore determined that it is necessary and expedient to issue its $3,395,000 General Obligation Improvement Bonds, Series 2002A (the "Bonds to finance various improvement projects in the City, and WHEREAS, the City has retained Spnngsted 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 Authonzation Findings The City Council hereby authonzes Spnngsted 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 his 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 authonzed to cooperate with Spnngsted 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 1408363v1 ADOPTED this 21st day of May, 2002 ATTEST Linda J Jentink, City Clerk RESOLUTION 2002- 1408363v1 Cathy Busho, Mayor Motion by Seconded by Voted in favor Voted Against Members Absent STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF ROSEMOUNT RESOLUTION 2002- I, the undersigned, being the duly qualified and acting Clerk of the City of Rosemount, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcnpt of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the City's $3,395,000 General Obligation Improvement Bonds, Series 2002A WITNESS my hand this day of 2002 Linda J Jentink, City Clerk 1408363v1 EXHIBIT A THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: 1408363v1 TERMS OF PROPOSAL $3,395,000 CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2002A (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Tuesday, June 18, 2002, until 12 00 Noon, Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated Consideration for award of the Bonds will be by the City Council at 7 30 P M Central Time, of the same day SUBMISSION OF PROPOSALS 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 Spnngsted 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 of the Proposal submitted DETAILS OF THE BONDS The Bonds will be dated July 1, 2002, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2003 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 2004 $630,000 2008 $605,000 2011 $50,000 2005 $655,000 2009 50,000 2012 $50,000 2006 $635,000 2010 $50,000 2013 $50,000 2007 $620,000 Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds, provided that no serial bond may mature on or after the first mandatory sinking fund redemption date of any term bond All term bonds shall be subject to mandatory sinking fund redemption and must conform to the maturity schedule set forth above at a price of par plus accrued interest to the date of redemption In order to designate term bonds, the 1408363v1 BOOK ENTRY SYSTEM REGISTRAR OPTIONAL REDEMPTION SECURITY AND PURPOSE TYPE OF PROPOSALS RESOLUTION 2002- proposal must specify "Last Year of Serial Maturities" and "Years of Term Maturities" in the spaces provided on the Proposal Form The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede Co as nominee of The Depository Trust Company "DTC New York, New York, which will act as securities depository of the Bonds Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC, transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar The City may elect on February 1, 2008, and on any day thereafter, to prepay Bonds due on or after February 1, 2009 Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed All prepayments shall be at a price of par plus accrued interest 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 special assessments from benefited properties The proceeds will be used to finance various improvements within the City Proposals shall be for not less than $3,366,143 and accrued interest on the total principal amount of the Bonds Proposals shall be accompanied by a Good Faith Deposit "Deposit in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $33,950, payable to the order of the City If a check is used, it must accompany the proposal If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City Such bond must be submitted to Springsted Incorporated pnor 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 RESOLUTION 2002- Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3 30 P M Central Time, on the next business day following the award If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement The Deposit received from the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser, will be deposited by the City In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made Rates must be in level or ascending order Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity No conditional proposals will be accepted AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling The City will reserve the right to (i) waive non substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (it) reject all proposals without cause, and, (iii) reject any proposal which 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 1408363v1 CONTINUING DISCLOSURE OFFICIAL STATEMENT RESOLUTION 2002- purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no- litigation certificate On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds which 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 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) 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 pnor to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, 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 140 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 Underwnter Any underwnter 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 (u) 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 May 21, 2002 BY ORDER OF THE CITY COUNCIL 1408363v1 City Clerk /s/ Linda Jentink $1,195,000 General Obligation Water and Storm Water Revenue Bonds, Series 2002B Presented to Recommendations For City of Rosemount, Minnesota $3,395,000 General Obligation Improvement Bonds, Series 2002A Rosemount Port Authority, Minnesota $1,795,000 General Obligation Port Authority Bonds, Series 2002C Mayor Cathy Busho Members, City Council Mr Thomas Burt, City Administrator Mr Jeffrey May, Finance Director City of Rosemount 2875 145 Street West Rosemount, Minnesota 55068 Study No.: R0704 D5E5F5 SPRINGSTED Incorporated May 14, 2002 Port Authority Chair Michael Baxter Members, Port Authority Mr Thomas Burt, Executive Director Rosemount Port Authority 2875 145 Street West Rosemount, Minnesota 55068 SPRINGSTED Pubb, finance Advisors We recommend the following for the Bonds 1 Action Requested 2 Sale Date and Time 3 Authority for the Bond Issues 4. Pnncrpal Amount of Offerings 5. Repayment Terms RECOMMENDATIONS Re' Recommendations for the Issuance of $3,395,000 General Obligation Improvement Bonds, Series 2002A (the "Improvement Bonds $1,195,000 General Obligation Water and Storm Water Revenue Bonds, Series 2002B (the "Revenue Bonds $1,795,000 General Obligation Port Authority Bonds, Series 2002C (the "Port Authority Bonds (Collectively the "Bonds" or the "Issues To establish the date and time of receiving bids and establish the terms and conditions of the offerings. Tuesday, June 18, 2002 at 12:00 Noon, with award by the Port Authority at 6 P M and by the City Council at 7 30 P M. that same day The Improvement Bonds are being issued pursuant to Minnesota Statutes, Chapters 475 and 429 The Revenue Bonds are being issued pursuant to Minnesota Statutes, Chapters 475 and 444 The Port Authority Bonds are being issued pursuant to Minnesota Statutes, Chapter 475 and Section 469 060 Improvement Bonds $3,395,000 Revenue Bonds $1,195,000 Port Authority Bonds $1,795,000 The Improvement Bonds and the Port Authority Bonds will mature annually February 1, 2004 through 2013. Interest will be payable semi- annually each February 1 and August 1, commencing February 1, 2003 The Revenue Bonds will mature annually February 1, 2004 through 2018 Interest will be payable semi- annually each February 1 and August 1, commencing February 1, 2003 City of Rosemount, Minnesota Rosemount Port Authority, Minnesota May 14, 2002 6 Sources of Payment 7 Prepayment Provisions 8. Credit Rating Comments 9 Federal Treasury Regulations Concerning Tax Exempt Obligations (a) Bank Qualification The Improvement Bonds are expected to be repaid from special assessments against benefited property. Special assessments will be filed in October, 2002, for first collection in 2003 It is not expected that the City will levy taxes for repayment of this issue The Revenue Bonds are expected to be paid from net revenues of the City's water utility and storm water utility, including storm water connection fees It is not expected that the City will levy taxes for repayment of this issue The Port Authority Bonds are expected to be paid from a combination of special assessments against benefited property, net revenues of the storm water utility and ad valorem tax levies Special assessments will be filed in October, 2002, for first collection in 2003 The tax levies will be made by the City for the Port Authority, and will be spread on all taxable property in the City The Improvement Bonds, the Revenue Bonds, and the Port Authority Bonds are callable on February 1 in the years 2008, 2011 and 2011, respectively Redemption may occur on these dates and on any date thereafter, at a price of par plus accrued interest An application will be made to Moody's Investors Service for a rating for the Bonds The City's current credit rating on its general obligation debt is "A2 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 $10 million of tax exempt bonds in a calendar year Issues that are bank qualified typically receive slightly lower interest rates than issues that are not bank qualified It is our understanding the City expects to issue less than $10 million of tax exempt obligations in 2002, therefore these Issues are designated as bank qualified Page 2 City of Rosemount, Minnesota Rosemount Port Authority, Minnesota May 14, 2002 (b) Rebate Requirements (c) Bona Fide Debt Service Fund (d) Economic Life 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 in both of these categories 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 proceeds are exempt from rebate and the City may retain the excess earnings If the City does not expect to meet those requirements, the reinvestment of bond proceeds must be monitored and the City must rebate any amount earned in excess of the rate of the bonds Springsted currently provides rebate calculation services to the City An amendment for these Issues has been provided to City staff The City must maintain a bona fide debt service fund for all series of Bonds or be subject to yield restriction. This requires restricting the investments held in the debt service funds to the applicable Bond yields and /or paying back excess investment earnings in the debt service fund(s) to the federal government A bona fide debt service fund is a fund for which there is an equal matching of revenue to debt service expense, with carry over permitted equal to the greater of the investment earnings in the fund during that year or 1/12 the debt service of that year With the Improvement Bonds and the Port Authority Bonds, additional diligence should be exercised in monitoring the debt service funds due to the potential accumulation of assessment prepayments, which could cause the funds to become non -bona fide The average life of each series of Bonds cannot exceed 120% of the economic life of the projects to be financed The economic life of street improvements is 20 years and the economic life of utility system improvements is 50 years The average life of the Improvement Bonds is 6 16 years, the Revenue Bonds is 9 35 years and the average life of the Port Authority Page 3 City of Rosemount, Minnesota Rosemount Port Authority, Minnesota May 14, 2002 (e) Federal Reimbursement Regulations 10 Continuing Disclosure 11 Attachments Bonds is 12 69 years Each of the three Issues is therefore within the economic life requirements Federal reimbursement regulations require the City to make a declaration, within 60 days of the actual payment, of its intent to reimburse itself from expenses paid prior to the receipt of Bond proceeds It is our understanding that the City has taken whatever actions are necessary to comply with the federal reimbursement regulations in regards to the Bonds. Each series of Bonds is subject to continuing disclosure requirements set forth by the Securities and Exchange Commission The SEC rules require the City to undertake an annual update of certain Official Statement information and report any material events to the national repositories Springsted currently provides continuing disclosure services for the City under a separate contract An amendment to that contract adding these Issues has been provided to City staff Assessment Income (Improvement Bonds and Port Authority Bonds only) Sources and Uses Schedules (All) Debt Service Schedules (All) Terms of Proposals (All) Page 4 Developer Water Fund Storm Sewer Sanitary Sewer Street Fund Total $2,301,100 $468,325 $152,950 $108,250 $1,575 $3,032,200 City of Rosemount, Minnesota Rosemount Port Authority, Minnesota May 14, 2002 DISCUSSION $3,395,000 General Obligation Improvement Bonds, Series 2002A (the "Improvement Bonds The Improvement Bonds are being issued to finance street reconstruction for the South Rose Park project, new roads, water, storm water, and sanitary sewer construction for the Connemara Phase 1 project, new roads, water and sewer construction for the Biscayne Avenue project, and improvements to the roads, water and sewer for the 140 Street East Development project. The sources and uses schedule on page 8 shows the composition of the Improvement Bonds The City will use cash contributions from the following to reduce the borrowing amount As part of the financing for the South Rose Park, Connemara Phase 1 and the 140th Street East Development, the City will file assessments in October 2002 over five years with even principal payments For the Biscayne Avenue project assessments will be filed in October 2003 over ten years with even principal payments As a result the City will receive assessment income one year beyond the maturity of the Improvement Bonds Interest charged on the outstanding balance of the assessments will be 2% over the bond rate Page 9 shows the projected income produced by the assessments. Our recommended principal repayment structure for the Improvement Bonds is shown on page 10 Debt service has been structured around the anticipated assessment income receipts developed on page 9 Page 10 contains the following information Columns 1 through 4 show the annual principal, estimated interest rates and projected total principal and interest payments, given the current market environment Columns 5 and 6 show the capitalized interest and net debt service requirements Column 7 shows the 5% overlevy which is required by State statutes and serves as a protection to bondholders and the City in the event of delinquencies in the collection of assessments or taxes Column 8 shows the total projected assessment income developed on page 9 Column 9 shows the net surplus for this Issue, which represents the difference between the projected assessment income and 105% of debt service Because the February 1, 2003 interest payment will come due prior to receipt of assessment income, the Bonds have been sized to include capitalized interest sufficient to make that payment Thereafter, special assessments received each year are expected to cover the August 1 interest payment due in the collection year and the subsequent February 1 principal and interest payment $1,195,000 General Obligation Water and Storm Water Revenue Bonds, Series 2002B (the "Revenue Bonds Proceeds of the Revenue Bonds will be used to finance construction of a new well for the Well #12 project (the "Water Portion and sewer construction for the Brockway Draw project (the "Storm Water Portion The sizing of the issue is provided on the sources and uses table on page 11. Page 12 illustrates the recommended structure and debt service schedule for the Page 5 City of Rosemount, Minnesota Rosemount Port Authority, Minnesota May 14, 2002 Revenue Bonds. The Water Portion and the Storm Water Portion of the Revenue Bonds have been structured independently of each other over fifteen years in even annual payments of principal and interest as shown on pages 13 and 14 respectively The Revenue Bonds will be repaid from net revenues of the City's water and storm water utilities Pursuant to Minnesota Statues, Chapter 444 and the resolution awarding the Revenue Bonds, the City will covenant to maintain rates in an amount sufficient to generate revenues to support the operation of the both the water and storm water utilities and to pay debt service The City is required to annually review the budget of the water and storm water utilities to determine whether current rates and charges are sufficient and to adjust them as necessary The City has three outstanding bond issues for which the net revenues of the water utility are also pledged Two of the three outstanding issues supported by the water utility (the 19960 and 1993C bonds) have a final maturity in 2005 Total debt service payable from 2003 net revenues of the water utility, including this Issue is projected to be $345,033. The City has five outstanding bond issues for which the net revenues of the storm water utility are also pledged In addition, the storm water utility is expected to make annual payments for the 2002C Port Authority Bonds Total debt service payable from 2003 net revenues of the storm water utility, including this Issue is projected to be $554,600 The table below shows the 2001 unaudited net revenues available for debt service including connection fees and special assessments for each of the City's water and storm water utilities 2001 Net Revenues (Unaudited) Operating Revenues Less Operating Expenses Add Investment Earnings Connection Fees Special Assessments Net Revenues Available for Debt Service Water Utility $757,211 (540,041) 194,091 928,369 118,634 $1,458,264 Storm Water Utility $518,307 (296,947) 178,478 554,026 94,600 $1,048,464 $1,795,000 General Obligation Port Authority Bonds, Series 2002C (the "Port Authority Bonds The Port Authority Bonds are being issued to finance street and sidewalk reconstruction, burying power cables storm water and sanitary sewer construction, and decorative lighting for the Trunk Highway 3 Enhancement project Page 15 shows the sources and uses for the Port Authority Bonds The City will use cash contributions from the following to reduce the borrowing amount. MN /DOT Water Fund Sanitary Sewer Total $540,000 $84,000 $41,000 $665,000 The City will file assessments in October 2002 over five years, with even principal payments and interest charged on the outstanding balance of the assessments at 2% over the bond rate. Page 16 shows the projected income produced by the assessments Page 6 City of Rosemount, Minnesota Rosemount Port Authority, Minnesota May 14, 2002 Our recommended principal repayment structure for the Port Authority Bonds is shown on page 17 Debt service has been structured around the anticipated assessment income receipts developed on page 16 and storm water revenues The City expects to contribute $54,545 in net revenues from its storm water utility over a term of 11 years to reduce the required annual tax levy on the Port Authority Bonds Page 17 contains the following information: Columns 1 through 4 show the annual principal, estimated interest rates and projected total principal and interest payments, given the current market environment Column 5 shows the 5% overlevy which is required by State statutes and serves as a protection to bondholders and the City in the event of delinquencies in the collection of assessments or taxes Column 6 shows the total projected net revenues of the storm water utility, which will be used to reduce the annual levy required Column 7 shows the total projected assessment income developed on page 16 Column 8 shows the net levy required for this Issue, which represents the difference between the projected assessment income plus storm water revenues and 105% of debt service Springsted is again pleased to be of service to the City of Rosemount Respectfully submitted, ciAlt" ed'a Ilr Provided to Staff' SPRINGSTED Incorporated a) Amendment to Continuing Disclosure Contract b) Amendment to Arbitrage /Rebate Contract Page 7 E CO m 0- z 0 00 0 000 0 0 0e°0! 0 0 at00 CO 004000In O vt- 0 0 0r N O m E 0 0 N O 10 t` O O 0 CO m O O N fO Q E O en O) N N N CO CO M w r N O 0 03 CO r- h 10 01 to r- O Q 10 o r n O co c0 n o Ot O t 0 n O N co N N .N„ N N co N N 0 t G) r) CO e Q 0) Q N f7 Y) N N W Co 06 C) 09 0 N CO V t o 0 o O r o M1 O o 0 F 0 m 0 W o o o °m .-m 00 o 0 0 omNOro O P-CD M O O O 0 0 C) N O O tO N CO M A 49 O W N N W t 5 WI 9 0 0 0 0 00 0 000 CO N o o 0 A 0 O C NN pp 0 n I [O N C 0 CO N Q M A N CO N Q o O) N 0 O) Q o v N- o e 6 cv o v l7 9 H v in v v T 49 49 69 w CO b O O O O O' 0 0 N O 0 0 N 0 co 00000 0 0 0 0 Q 0 co O Q O Q O! 0000 o o 00w e 0 0o tOe 0) o O lO t0 co O OO O) co O 0 0 0 0' 0 40 Z 0 r O 0) N f0 0 CO '0 0 0 0 O C) lO O O 0 CO 0 CO 6 D 6 r co co O t0 40 N a N. O O co co co m C) N O co r co O CO Cr) CO N m O O C N N V Q 6 6 69 N W N t9 O U s 0 0 0 0 0 0 0 0^ 0 0 0 0 I. 0 000 0 O N N" o e co CV 'nn e 0 0 0 oor- CO o 0o 6- CO 10 D. O O O O O O N N N 00 O O N N N 04 O O O O O O O Q N N Q N, O O Q N N Q o 0 .0 40 0 n C4' to Q v n 0) -D re 9 M t. 0 0 N '0 C g LL O in IL coo 0 to t m 3 GO Id 3 0 8 $a 1 m$ co p o 0Q 0 3i O m J B 0 m W LL g c 0 co W 9 4 0 a c 14 m LL O N V 8 U Z g 9 N 3 F 0 m N N O o ypU m K LL o N E a., LL o o w U 0 o 00 0 N 0 2 o o o 0 2 H 1 an j Q L U E t 0 Q M N b M y C Q W@ V U a w a o3 v)mn 1- 000E -o¢ a¢ H Page 8 SIGNIFICANT DATES Filing Date First Payment Date Spnngsted Incorporated Advisors to the Public Sector 10/01/2002 12/31/2003 File ROSEMO -1 SF -Issue Summary 5r 2/2002 11 30 AM Page 9 City of Rosemount, Minnesota General Obhgatfon Improvement Bonds, Senes 2002A Special Assessments ASSESSMENT INCOME Date Pnnapal Coupon Interest Total P +1 12/31/2002 12/31 /2003 579,439 06 5 750% 208,235 92 787,674 98 12/31/2004 629,494 43 5 750% 169,248 28 798,742 71 12/31/2005 629,494 43 5 750% 125,856 90 755,351 33 12/31/2006 629,494 42 5 750% 89,660 96 719,155 38 12/31/2007 629,494 41 5 750% 53,465 02 682,959 43 12/31/2008 50,055 37 5 750% 17,269 10 67,324 47 12/31/2009 50,055 37 5 750% 14,390 92 64,446 29 12/31/2010 50,055 37 5 750% 11,512 74 61,568 11 12/31 /2011 50,055 37 5 750% 8,634 56 58,689 93 12/31/2012 50,055 37 5 750% 5,756 36 55,811 73 12/31/2013 50,055 36 5 750% 2,878 18 52,933 54 Total 3,397,74896 706,90894 4,104,65790 SIGNIFICANT DATES Filing Date First Payment Date Spnngsted Incorporated Advisors to the Public Sector 10/01/2002 12/31/2003 File ROSEMO -1 SF -Issue Summary 5r 2/2002 11 30 AM Page 9 Dated Delivery Date First Coupon Date Spnngsted Incorporated Advisors to the Public Sector YIELD STATISTICS Bond Year Dollars Average Life Average Coupon Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) IRS FORM 8038 Net Interest Cost Weighted Average Maturity 7/01/2002 7/01/2002 2/01/2003 $13,330 42 3 926 Years 3 4869237 /u 3 7034023% 3 7077594% 34704687% 3 9271908% 34869237% 3 926 Years File ROSEMO -1 SF -Issue Summary 5/22002 11 30 AM Page 10 City of Rosemount, Minnesota $3,395,000 General Obhgation Improvement Bonds, Senes 20024 NET DEBT SERVICE SCHEDULE Date Pnncipal Coupon Interest Total P +I CIF Net New D/S 105% of Total Assessment Surplus (2) (5) (6) (8) (9) 2/01/2003 64,61146 64,61146 (64,611 46) 2/01/2004 630,000 00 2 550% 110,762 50 740,762 50 740,762 50 777,800 63 787,674 98 9,874 35 2/01/2005 655,000 00 2 950% 94,697 50 749,697 50 749,697 50 787,182 38 798,742 71 11560 33 2/01/2006 635,000 00 3 250% 75,375 00 710,375 00 710,375 00 745,893 75 755,351 33 9,457 58 2/01/2007 620,000 00 3 500% 54,737 50 674,737 50 674,737 50 708,474 38 719,155 38 10,681 01 2/01/2008 605,000 00 3 750% 33,037 50 638,037 50 638,037 50 669,939 38 682,95943 13,020 06 2/01/2009 50,000 00 3 900% 10,350 00 60,350 00 60,350 00 63,367 50 67,324 47 3,956 97 2/01/2010 50,000 00 4 050% 8,400 00 58,400 00 58 400 00 61,320 00 64,446 29 3,126 29 2/01/2011 50,000 00 4 150% 6,375 00 56,375 00 56,375 00 59,193 75 61,568 11 2,374 36 2/01/2012 50,000 00 4 250% 4,300 00 54,300 00 54,300 00 57,01500 58,689 93 1,674 93 2/01/2013 50,00000 4350% 2,17500 52,17500 52,17500 54,78375 55,81173 1,02798 2701/2014 52,93354 52,93354 Total 3,395,000 00 464,821 46 3,859,821 46 (64,611 46) 3,795,210 00 3,984,97050 4,104,657 90 119,687 40 Dated Delivery Date First Coupon Date Spnngsted Incorporated Advisors to the Public Sector YIELD STATISTICS Bond Year Dollars Average Life Average Coupon Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) IRS FORM 8038 Net Interest Cost Weighted Average Maturity 7/01/2002 7/01/2002 2/01/2003 $13,330 42 3 926 Years 3 4869237 /u 3 7034023% 3 7077594% 34704687% 3 9271908% 34869237% 3 926 Years File ROSEMO -1 SF -Issue Summary 5/22002 11 30 AM Page 10 Page 11 City of Rosemount, Minnesota $1,195,000 General Obligation Water and Storm Water Revenue Bonds Series 2002B TOTAL ISSUE SOURCES AND USES Dated 07/01/2002 Delivered 07/01/2002 SOURCES OF FUNDS Par Amount of Bonds Sanitary Sewer Cash Deposit TOTAL SOURCES USES OF FUNDS Deposit to Project Construction Fund Costs of Issuance Total Underwnter's Discount (1 150 Rounding Amount TOTAL USES Brockway Draw Well #12 Issue Summary $580,000 00 $615 000 00 $1,195,000 00 692,500 00 692,500 00 $1272,500 00 $615,000 00 $1,887,500 00 1 ,256,700 00 8,219 51 6,670 00 91049 $1,272,500 00 600,000 00 8,71549 7,072 50 (787 99) 1,856,700 00 16,935 00 13,742 50 12250 $615,000 00 $1,887,500 00 Spnngsted lncoiporated Advisors to the Public Sector Preliminary File ROSEMO -1 SF -issue Summary 512/2002 3 11 PM YIELD STATISTICS Bond Year Dollars Average Life Average Coupon Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) IRS FORM 8038 Net Interest Cost Weighted Average Maturity Spnngsted Incorporated Advisors to the Public Sector $11,397 08 9 537 Years 4 4495577% 4 5701368% 4 5690031% 4 4148227% 4 7624583% 4 4495577% 9 537 Years Preliminary File ROSEMO -1 SF -Issue Summary 5r 2/2002 3 11 PM Page 12 City of Rosemount, Minnesota $1,195,000 General Obligation Water and Storm Water Revenue Bonds Series 20026 DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P +I 2/01/2003 29,144 80 29,144 80 2/01/2004 40,000 00 2 550% 49,962 50 89,962 50 2/01/2005 50,000 00 2 950% 48,942 50 98,942 50 2/01/2006 70,000 00 3 250% 47,467 50 117,467 50 2/01/2007 70,000 00 3 500% 45,192 50 115,192 50 2/01/2008 70,000 00 3 750% 42,742 50 112,742 50 2/01/2009 70,00000 3900% 40,11750 110,11750 2/01/2010 80,000 00 4 050% 37,387 50 117,387 50 2/01 /2011 80,000 00 4 150% 34,147 50 114,147 50 2/01/2012 80,000 00 4 250% 30,827 50 110,827 50 2/01/2013 90,000 00 4 350% 27,427 50 117,427 50 2/01/2014 90,000 00 4 500% 23,512 50 113,512 50 2/01/2015 95,000 00 4 650% 19,462 50 114,462 50 2/01/2016 100,000 00 4 750% 15,045 00 115,045 00 2/01/2017 100,000 00 4 850% 10,295 00 110,295 00 2/01/2018 110,000 00 4 950% 5,445 00 115,445 00 Total 1,195,000 00 507,119 80 1,702,119 80 YIELD STATISTICS Bond Year Dollars Average Life Average Coupon Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) IRS FORM 8038 Net Interest Cost Weighted Average Maturity Spnngsted Incorporated Advisors to the Public Sector $11,397 08 9 537 Years 4 4495577% 4 5701368% 4 5690031% 4 4148227% 4 7624583% 4 4495577% 9 537 Years Preliminary File ROSEMO -1 SF -Issue Summary 5r 2/2002 3 11 PM Page 12 City of Rosemount, Minnesota $615,000 General Obligation Water and Storm Water Revenue Bonds, Senes 20028 Well 1112 Water NET DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P+I Existing DIS Net New D/S 2/01 /2003 14,825 42 14,825 42 330,207 50 345,032 92 2/01/2004 30,000 00 2 550% 25,41500 55,415 00 333,700 00 389,115 00 2/01/2005 35,000 00 2 950% 24,650 00 59,650 00 336,130 00 395 780 00 2/01/2006 35,000 00 3 250% 23,617 50 58,617 50 112,570 00 171,187 50 2/01 /2007 35,000 00 3 500% 22,480 00 57,480 00 114,547 50 172,027 50 2/01/2008 35,00000 3 750% 21,25500 56,25500 116,25750 172,51250 2/01/2009 35,000 00 3 900% 19,942 50 54,942 50 112,695 00 167,637 50 2/01/2010 40,000 00 4 050% 18,577 50 58,577 50 114,095 00 172,672 50 2/01/2011 40,000 00 4 150% 16,957 50 56,957 50 115,21500 172,172 50 2/01/2012 40,000 00 4 250% 15,297 50 55 297 50 116,050 00 171,347 50 2/01/2013 45,000 00 4 350% 13,597 50 58,597 50 116,550 00 175,147 50 2/01/2014 45,000 00 4 500% 11,640 00 56,640 00 116,705 00 173,345 00 2/01/2015 45,000 00 4 650% 9,615 00 54,61500 116,505 00 171,120 00 2/01/2016 50,000 00 4 750% 7,522 50 57,522 50 115,940 00 173,462 50 2/01/2017 50,000 00 4 850% 5,147 50 55,147 50 55,147 50 2/01 /2018 55,000 00 4 950% 2,722 50 57,722 50 57,722 50 Total 615,000 00 253,262 92 868,262 92 2,267,167 50 3,135,430 42 Preliminary Spnngsted Incorporated Advisors to the Public Sector File ROSEMO -1 SF -Well #12 5r 22002 3 11 PM Page 13 City of Rosemount, Minnesota $580,000 General Obligation Water and Storm Water Revenue Bonds, Senes 2002B Brockway Draw Storm Water NET DEBT SERVICE SCHEDULE Date Pnnapal Coupon Interest Total P +I Existing D/S Net New D/S 2/01/2003 14,319 38 14,319 38 485,734 32 500,053 70 2/01/2004 10,000 00 2 550% 24,547 50 34,547 50 486,931 25 521,478 75 2/01 /2005 15,000 00 2 950% 24,292 50 39,292 50 483,306 25 522,598 75 2/01/2006 35,00000 3 250% 23,85000 58,85000 448,541 25 507,391 25 2/01 /2007 35,000 00 3 500% 22,712 50 57,712 50 444,911 25 502,623 75 2/01/2008 35,00000 3 750% 21,48750 56,48750 445,291 25 501,77875 2/01/2009 35,000 00 3 900% 20,175 00 55,175 00 289 731 25 344,906 25 2/01/2010 40,000 00 4 050% 18,810 00 58,810 00 289,591 25 348,401 25 2/01/2011 40,00000 4150% 17,19000 57,19000 293,71875 350,90875 2/01/2012 40,00000 4 250% 15,53000 55,53000 291,90625 347,43625 2/01/2013 45,00000 4 350% 13,830 00 58,830 00 189,353 75 248,183 75 2/01/2014 45,00000 4 500% 11,87250 56,87250 191,88875 248,761 25 2/01/2015 50,000 00 4 650% 9,847 50 59,847 50 193,751 25 253,598 75 2/01/2016 50,000 00 4 750% 7,522 50 57,522 50 109,918 75 167,441 25 2/01/2017 50,000 00 4 850% 5,147 50 55,147 50 110,118 75 165,266 25 2/01/2018 55,000 00 4 950% 2,722 50 57,722 50 57,722 50 Total 580,000 00 253,856 88 833,856 88 4,754,694 32 5,588,551 20 Spnngsted Incorporated Advisors to the Public Sector Prelimlna Pole ROSEMO -1 SF- Brockway Draw 5r 22002 3 11 PM Page 14 Rosemount Port Authority, Minnesota $1,795,000 General Oblgabon Port Authonty Bonds Senes 2002C SOURCES USES Dated 07/01/2002 Delivered 07/01/2002 SOURCES OF FUNDS Par Amount of Bonds MN /DOT Cash Deposit Water Cash Deposit Sanitary Sewer Cash Deposit TOTAL SOURCES USES OF FUNDS Deposit to Project Construction Fund Costs of Issuance Total Underwnter's Discount (0 850 Rounding Amount $1,795,000 00 540,000 00 84,000 00 41,000 00 $2,460,000 00 2,426,000 00 19,085 00 15,257 50 (342 50) TOTAL USES $2,460,000 00 Spnngsted Incorporated Advisors to the Public Sector Preliminary File ROSEMO -1 SF-Storm Sewer Portion 5/2/2002 2 55 PM Page 15 SIGNIFICANT DATES Filing Date First Payment Date Spnngsted Incorporated Advisors to the Public Sector 10/01 /2002 12/31/2003 Fret mina File ROSEMO -1 SF- SINGLE PURPOSE 5r 2.2002 1 25 PM Page 16 Rosemount Port Authority, Minnesota General Obligation Port Authority Bonds, Series 2002C Assessments ASSESSMENT INCOME Date Pnncipal Coupon Interest Total P +I 12/31/2002 12/31/2003 80,399 59 6 000% 30,149 84 110,549 43 12/31/2004 80,39959 6 000% 19,29590 99,69549 12/31/2005 80,399 58 6 000% 14,471 92 94,871 50 12/31/2006 80,399 58 6 000% 9,647 94 90,047 52 12/31/2007 80,399 58 6 000% 4,823 98 85,223 56 Total 401,997 92 78,389 58 480,38750 SIGNIFICANT DATES Filing Date First Payment Date Spnngsted Incorporated Advisors to the Public Sector 10/01 /2002 12/31/2003 Fret mina File ROSEMO -1 SF- SINGLE PURPOSE 5r 2.2002 1 25 PM Page 16 8. Dated Delivery Date First Coupon Date Bond Year DoHers Average Life Average Coupon Spnngsted incorporated Advisors to the Public Sector YIELD STATISTICS Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) 7/01/2002 7/01/2002 2/01 /2003 $10,272 08 5 723 Years 3 8807428% 4 0292764% 4 0290977% 3 8578766% 4 2462166% Page 17 Prelimina File ROSEMO -1 SF -Stomr Sewer Portion 5/ 22002 1 25 PM Rosemount Port Authority, Minnesota $1,795,000 General Obligation Port Authonty Bonds Senes 2002C NET DEBT SERVICE Storm Water Assessment (Levy Required) Date Pnncrpal Coupon Interest Total P +I 105% Ovedevy Revenue income Surplus (5) (6) 2/11/2003 37,690 63 37,890 63 39,575 16 50,545.46 10,970 30 2/01/2004 210,000 00 2 550% 64,612 50 274,61250 288,343 13 50,545 46 110,549 43 (127,248 24) 2/01/2005 205000 00 2 950% 59,257 50 264,257 50 277,470 38 50,545 46 99,695 49 (127,229 43) 2/01/2006 205,000 00 3 250% 53,210 00 258,210 00 271,120 50 50,545 46 94,871 50 (125,703 54) 2/01/2007 210,000 00 3 500% 46,547 50 256,547 50 269,374 68 50,54546 90,047 52 (128,781 90) 2/01/2008 210,000 00 3 750% 39,197 50 249,197 50 261,657 38 50,545 45 85,223 56 (125,888 37) 2/01/2009 140,000 00 3 900% 31,322 50 171,322 50 179,888 63 50,545 45 (129,343 18) 2/01/2010 145,000 00 4 050% 25,862 50 170,862 50 179,405 63 50,545 45 (128,860 18) 2/01/2011 150,000 00 4 150% 19,990 00 169,990 00 178,489 50 50,545 45 (127,944 05) 2/012012 155,000 00 4 250% 13,765 00 168,765 00 177,203 25 50,545 45 (126,657 80) 2/01/2013 165,000 00 4 350% 7,177 50 172,177 50 180,786 38 50,545 45 (130,240 93) Total 1,795,00000 398,63313 2,193,63313 2,303,31479 556,00000 480,38750 (1,266,92729) 8. Dated Delivery Date First Coupon Date Bond Year DoHers Average Life Average Coupon Spnngsted incorporated Advisors to the Public Sector YIELD STATISTICS Net Interest Cost (NIC) True Interest Cost (TIC) Bond Yield for Arbitrage Purposes All Inclusive Cost (AIC) 7/01/2002 7/01/2002 2/01 /2003 $10,272 08 5 723 Years 3 8807428% 4 0292764% 4 0290977% 3 8578766% 4 2462166% Page 17 Prelimina File ROSEMO -1 SF -Stomr Sewer Portion 5/ 22002 1 25 PM THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: $3,395,000 CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2002A Proposals for the Bonds will be received on Tuesday, June 18, 2002, until 12 00 Noon, Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7 30 P M Central Time, of the same day SUBMISSION OF PROPOSALS 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 Spnngsted prior to the time of sale The bidder shall be responsible for submitting to Spnngsted the final Proposal price and coupons, by telephone (651) 223 -3000 or fax (651) 223 -3046 for inclusion in the submitted Proposal Spnngsted will assume no liability for the inability of the bidder to reach Spnngsted 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 of the Proposal submitted The Bonds will be dated July 1, 2002, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2003 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 2004 $630,000 2005 $655,000 2006 $635,000 2007 $620,000 2008 $605,000 2009 50,000 Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds, provided that no serial bond may mature on or after the first mandatory sinking fund redemption date of any term bond All term bonds shall be subject to mandatory sinking fund redemption and must conform to the maturity schedule set forth above at a price of par plus accrued interest to the date of redemption In order to designate term bonds, the proposal must specify "Last Year of Serial Maturities" and "Years of Term Maturities" in the spaces provided on the Proposal Form The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede Co as nominee of The Depository Trust Company "DTC TERMS OF PROPOSAL (BOOK ENTRY ONLY) DETAILS OF THE BONDS 2010 $50,000 2011 $50,000 BOOK ENTRY SYSTEM 2012 $50,000 2013 $50,000 Page 18 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 maturty through book entries made on the books and records of DTC and its participants Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC, transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar OPTIONAL REDEMPTION The City may elect on February 1, 2008, and on any day thereafter, to prepay Bonds due on or after February 1, 2009 Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed All prepayments shall be at a price of par plus accrued interest SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes In addition the City will pledge special assessments from benefited properties The proceeds will be used to finance various improvements within the City TYPE OF PROPOSALS Proposals shall be for not less than $3,366,143 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit "Deposit in the form of a certified or cashier's check or a Financial Surety Bond in the amount of 533,950, payable to the order of the City If a check is used, it must accompany the proposal If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City Such bond must be submitted to Sprmgsted Incorporated prior to the opening of the proposals The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Sprmgsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3 30 P M Central Time, on the next business day following the award If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement The Deposit received from the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser, will be deposited by the City In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made Rates must be in level or ascending order Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity No conditional proposals will be accepted Page 19 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 nght to (i) waive non substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (n) reject all proposals without cause, and, (vi) reject any proposal which 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 Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no- litigation certificate On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds which 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) Page 20 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, 85 East Seventh Place, Suite 100, 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 140 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 May 21, 2002 BY ORDER OF THE CITY COUNCIL OFFICIAL STATEMENT /s/ Linda Jentink City Clerk 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 $1,195,000 CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION WATER AND STORM WATER REVENUE BONDS, SERIES 2002B (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Tuesday, June 18, 2002, until 12 00 Noon, Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated Consideration for award of the Bonds will be by the City Council at 7 30 P M Central Time, of the same day SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (651) 223 -3046 to Spnngsted Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale The bidder shall be responsible for submitting to Spnngsted the final Proposal price and coupons, by telephone (651) 223 -3000 or fax (651) 223 -3046 for inclusion in the submitted Proposal 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 of the Proposal submitted DETAILS OF THE BONDS The Bonds will be dated July 1, 2002, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2003 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 2004 $40,000 2005 $50,000 2006 $70,000 2007 $70,000 2008 $70,000 2009 $70,000 2010 $80,000 2011 $80,000 2012 $80,000 2013 $90,000 2014 $90,000 2015 $95,000 2016 $100,000 2017 $100,000 2018 $110,000 Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds, provided that no serial bond may mature on or after the first mandatory sinking fund redemption date of any term bond All term bonds shall be subject to mandatory sinking fund redemption and must conform to the maturity schedule set forth above at a price of par plus accrued interest to the date of redemption In order to designate term bonds, the proposal must specify "Last Year of Serial Maturities" and "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, Page 22 representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede Co. as nominee of The Depository Trust Company "DTC New York, New York, which will act as securities depository of the Bonds Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC, transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations The City will pay for the services of the registrar OPTIONAL REDEMPTION The City may elect on February 1, 2011, and on any day thereafter, to prepay Bonds due on or after February 1, 2012 Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturity to be prepaid DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed All prepayments shall be at a price of par plus accrued interest SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes In addition the City will pledge net revenues derived through its water utility and its storm water utility system The proceeds will be used to finance improvements to the water utility and storm water utility system in the City TYPE OF PROPOSALS Proposals shall be for not less than $1,181,258 and accrued interest on the total principal amount of the Bonds Proposals shall be accompanied by a Good Faith Deposit "Deposit in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $11,950, payable to the order of the City If a check is used, it must accompany the proposal If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3 30 P M Central Time, on the next business day following the award If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement The Deposit received from the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser, will be deposited by the City. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates must be in level or Page 23 ascending order Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity No conditional proposals will be accepted AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling The City will reserve the right to (i) waive non substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (u) reject all proposals without cause, and, (m) reject any proposal which 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 Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no- litigation certificate On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds which 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) Page 24 OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Spnngsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (651) 223 -3000 The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2 -12 By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 50 copies of the Official Statement and the addendum or addenda described above The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (n) 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 May 21, 2002 BY ORDER OF THE CITY COUNCIL /s/ Linda Jentink City Clerk Page 25 THE AUTHORITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF, PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,795,000 ROSEMOUNT PORT AUTHORITY, MINNESOTA GENERAL OBLIGATION PORT AUTHORITY BONDS, SERIES 2002C (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Tuesday, June 18, 2002, until 12 00 Noon, Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated Consideration for award of the Bonds will be by the Board of Commissioners at 6 00 P M Central Time, of the same day. SUBMISSION OF PROPOSALS 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 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 of the Proposal submitted DETAILS OF THE BONDS The Bonds will be dated July 1, 2002, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing February 1, 2003 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' 2004 $210,000 2005 $205,000 2006 $205,000 2007 $210,000 2008 $210,000 2009 $140,000 2010 $145,000 2012 $155,000 2011 $150,000 2013 $165,000 Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds, provided that no serial bond may mature on or after the first mandatory sinking fund redemption date of any term bond All term bonds shall be subject to mandatory sinking fund redemption and must conform to the maturity schedule set forth above at a price of par plus accrued interest to the date of redemption In order to designate term bonds, the proposal must specify "Last Year of Serial Maturities" and "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 Page 26 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, 2011, and on any day thereafter, to prepay Bonds due on or after February 1, 2012 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 participants interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed All prepayments shall be at a price of par plus accrued interest SECURITY AND PURPOSE The Bonds will be general obligations of the Authority for which the Authority will pledge its full faith and credit and power to levy direct general ad valorem taxes The proceeds will be used to finance the Trunk Highway 3 enhancement project TYPE OF PROPOSALS Proposals shall be for not less than $1,779,743 and accrued interest on the total principal amount of the Bonds Proposals shall be accompanied by a Good Faith Deposit "Deposit in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $17,950, payable to the order of the Authority If a check is used, it must accompany the proposal If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the Authority Such bond must be submitted to Springsted Incorporated pnor to the opening of the proposals The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3 30 P M Central Time, on the next business day following the award If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the Authority to satisfy the Deposit requirement The Deposit received from the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser, will be deposited by the Authority In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the Authonty No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the Authonty scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made Rates must be in level or ascending order Bonds of the same maturity shall bear a Page 27 single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis The 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, (u) reject all proposals without cause, and, (m) reject any proposal which 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 Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no- litigation certificate On the date of settlement, payment for the Bonds shall be made in federal, or equivalent, funds which 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 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) Page 28 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, 85 East Seventh Place, Suite 100, 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 Authonty 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 70 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 (u) 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 May 21, 2002 BY ORDER OF THE BOARD OF COMMISSIONERS /s/ Mary Ann Stoffel Executive Secretary Page 29