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
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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