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Home My WebLink About6.p. 2001B G.O. Storm Water Revenue Bond Issue - Authorizing Issuance and Setting Bond SaleCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: July 2, 2001 AGENDA ITEM: 2001 B G.O. Storm Water Revenue Bond AGENDA SECTION: Issue - Authorizing Issuance and Setting Bond Sale Consent PREPARED BY: Jeff May, Finance Director AGENDA NO. // APPROVED BY: ATTACHMENTS: Resolution and Recommendations i This item is on the agenda for your consideration in authorizing the issuance and setting the sale of General Obligation Storm Water Revenue Bonds for the construction of improvements to the storm water system, including a force main and lift station for Hawkins Pond and Marcotte Pond. Bids will be opened Tuesday, August 7, 2001, at 11:00 A.M. at the offices of Springsted Incorporated. The bids will be tabulated there and then consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day. RECOMMENDED ACTION: Motion to adopt a RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $1,140,000 GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 2001 B. COUNCIL ACTION: CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2001 RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $1,140,000 GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 2001B WHEREAS, the City Council of the City of Rosemount, Minnesota, has heretofore determined that it is necessary and expedient to issue its $1,140,000 General Obligation Storm Water Revenue Bonds, Series 2001B (the 'Bonds ") to finance improvements to the storm water utility system in the City; and WHEREAS, the City has retained Springsted Incorporated, in Saint Paul, Minnesota ( "Springsted "), as its independent financial advisor and is therefore authorized to sell these obligations by a competitive negotiated sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount, Minnesota, as follows: 1. Authorization, Findings The City Council hereby authorizes Springsted to solicit bids for the competitive negotiated sale of the Bonds. 2. Meeting; Bid Opening This City Council shall meet at the time and place specified in the Terms of Proposal attached hereto as Exhibit A for the purpose of considering sealed bids for, and awarding the sale of, the Bonds. The Administrator, or 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, authorized to cooperate with Springsted and participate in the preparation of an official statement for the Bonds, and to execute and deliver it on behalf of the City upon its completion. 1299682v1 V, ADOPTED this 2 nd day of July, 2001 Cathy Busho, Mayor ATTEST: Linda J. Jentink, City Clerk Motion by: Seconded by: Voted in favor: Voted Against: Members Absent: 1299682v1 N STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF ROSEMOUNT I, the undersigned, being the duly qualified and acting Clerk of the City of Rosemount, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to the City's $1,140,000 General Obligation Storm Water Revenue Bonds, Series 2001B. WITNESS my hand this day of , 2001. Clerk 1299682v1 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,140,000 CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 2001B (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Tuesday, August 7, 2001, until 11:00 A.M., 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. 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 August 15, 2001, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2002. 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: 2003 $40,000 2007 $65,000 2011 $80,000 2015 $ 95,000 2004 $60,000 2008 $70,000 2012 $80,000 2016 $100,000 2005 $60,000 2009 $70,000 2013 $85,000 2017 $105,000 2006 $65,000 2010 $75,000 2014 $90,000 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 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 S.E.C. 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 Qonds 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 storm water utility system. The proceeds will be used to finance improvements to the storm water utility system in the City. TYPE OF PROPOSALS Proposals shall be for not less than $1,126,320 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 $11,400, 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 City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1 %. Rates must be in level or ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non - substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal 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. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non - compliance with said terms for payment. CONTINUING DISCLOSURE On the date of actual issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure Undertaking (the "Undertaking ") whereunder the City will covenant for the benefit of the owners of the Bonds to provide certain financial and other information about the City and notices of certain occurrences to information repositories as specified in and required by SEC Rule 15c2- 12(b)(5). OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 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 45 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 July 2, 2001 BY ORDER OF THE CITY COUNCIL /s/ Linda Jentink City Clerk 6/28/01 11:22 AM -iv - i Recommendations For City of Rosemount, Minnesota $1,325,000 General Obligation Improvement Bonds, Series 2001A $1,140,000 General Obligation Storm Water Revenue Bonds, Series 2001 B Rosemount Port Authority, Minnesota $2,045,000 General Obligation Public Facility Bonds, Series 2001C Presented to: 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 SPRINGSTED Public Finance Advisors Study No.: R0704.X4Y4Q4 SPRINGSTED Incorporated June 28, 2001 Port Authority Chair John Edwards Members, Port Authority Mr. Thomas Burt, Executive Director Rosemount Port Authority 2875-145 th Street West Rosemount, Minnesota 55068 RECOMMENDATIONS Re: Recommendations for the Issuance of: $1,325,000 General Obligation Improvement Bonds, Series 2001A (the "Improvement Bonds ") $1,140,000 General Obligation Storm Water Revenue Bonds, Series 2001B (the "Storm Water Revenue Bonds ") $2,045,000 General Obligation Public Facility Bonds, Series 2001 C (the "Port Authority Bonds ") (Collectively the "Bonds" or the "Issues ") The Improvement Bonds are being issued to finance water system improvements, specifically the East Side Watermain project. The Storm Water Revenue Bonds are being issued to finance two projects, the Hawkins Pond and Marcotte Forcemain improvements. The Port Authority Bonds are being issued to finance the renovation and expansion of City Hall. We recommend the following for the Bonds: 1. Action Requested To establish the date and time of receiving bids and establish the terms and conditions of the offerings. 2. Sale Date and Time Tuesday, August 7, 2001 at 11:00 A.M., with award by the Port Authority at 6:00 P.M and by the City Council at 7:30 P.M. that same day. 3. Authority for the Bond Issues The Improvement Bonds are being issued pursuant to Minnesota Statutes, Chapters 475 and 429. The Storm Water 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. 4. Principal Amount of Offerings Improvement Bonds - $1,325,000 Storm Water Revenue Bonds - $1,140,000 Port Authority Bonds - $2,045,000 5. Repayment Terms The Improvement Bonds will mature annually February 1, 2003 through 2012. Interest will be payable semi - annually each February 1 and August 1, commencing August 1, 2002. The Storm Water Revenue Bonds will mature annually February 1, 2003 through 2017. Interest will be payable semi - annually City of Rosemount, Minnesota Rosemount Port Authority, Minnesota June 28, 2001 Q 7 DO a each February 1 and August 1, commencing August 1, 2002. The Port Authority Bonds will mature annually February 1, 2003 through 2022. Interest will be payable semi - annually each February 1 and August 1 commencing August 1, 2002. Sources of Payment The Improvement Bonds are expected to be repaid from a combination of special assessments against benefited property and net revenues of the City's water utility. Special assessments will be filed in November, 2001, for first collection in 2002. It is not expected that the City will levy taxes for repayment of this issue. Prepayment Provisions Credit Rating Comments Federal Treasury Regulations Concerning Tax - Exempt Obligations The Storm Water Revenue Bonds are expected to be paid from net revenues of the City's 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 ad valorem tax levies. 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 Storm Water Revenue Bonds, and the Port Authority bonds are callable on February 1 in the years 2010, 2011, and 2012, respectively. Redemption may occur on these dates or any date thereafter, at a price of par plus accrued interest. We recommend the City apply to Moody's Investors Service for a rating on the Bonds. Moody's currently rates the City's general obligation issues "A2." (a) Bank Qualification 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 Page 2 City of Rosemount, Minnesota Rosemount Port Authority, Minnesota June 28, 2001 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 receive slightly lower interest rates than issues that are not bank qualified. These issues are designated as bank qualified. (b) Rebate Requirements 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. (c) Bona Fide Debt Service Fund 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, additional diligence should be exercised in monitoring the debt service fund due to the potential accumulation of assessment prepayments, Page 3 City of Rosemount, Minnesota Rosemount Port Authority, Minnesota June 28, 2001 which could cause the fund to become non - bona fide. (d) Economic Life 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 storm water and water system improvements is 50 years. The average life of the Improvement Bonds is 6.16 years, and that of the Storm Water Revenue Bonds is 9.35 years. The economic life of the City Hall improvements is at least 20 years, and the average life of the Port Authority Bonds is 12.69 years. Each of the three Issues is therefore within the economic life requirements. (e) Federal Reimbursement Regulations 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. 10. Continuing Disclosure 11. Attachments 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 (2001A issue only) • Sources and Uses Schedules (All) • Debt Service Schedules (All) • Terms of Proposal Page 4 City of Rosemount, Minnesota Rosemount Port Authority, Minnesota June 28, 2001 DISCUSSION $1,325,000 General Obligation Improvement Bonds, Series 2001A (the "Improvement Bonds ") The Improvement Bonds are being issued to finance work on the East Side Watermain project. As part of the financing, the City will file assessments in November 2001 in the amount of $405,000 over ten years. Interest charged on the outstanding balance of the assessments will be 2% over the bond rate. Page 7 shows the projected income produced by the assessments. The sources and uses schedule on page 8 shows the composition of the Improvement Bonds. Page 9 illustrates the recommended structure and debt service schedule for the issue. The Improvement Bonds have been structured around the projected assessment income resulting in an even tax levy requirement. Columns 1 through 5 show the years and amounts of principal and estimated interest due on the Improvement Bonds. Column 6 shows the 5% overlevy mandated by State statute, which is in place to protect the City and bondholders in the event of delinquencies in collection of assessments or taxes for repayment of the Improvement Bonds. Column 7 details the projected assessment income, and column 8 shows the difference between the projected assessment income and 105% of debt service. Although the City is required to certify a tax levy to the County Auditor in the amount shown in column 8, the City expects to cancel the levy each year and use net revenues of its water utility to make that portion of the debt service payments not covered by special assessments. Throughout the term of the Improvement Bonds, special assessments received each year, combined with water utility funds on hand, are expected to cover the August 1 interest payment due in the collection year and the subsequent February 1 principal and interest payment. $1,140,000 General Obligation Storm Water Revenue Bonds, Series 2001 B (the "Water Revenue Bonds ") Proceeds of the Storm Water Revenue Bonds will be used to finance construction of the Hawkins Pond and Marcotte Forcemain projects. The sizing of the issue is provided on the sources and uses table on page 10. Page 11 illustrates the recommended structure and debt service schedule for the Storm Water Revenue Bonds. The Storm Water Revenue Bonds have been structured over fifteen years in even annual payments of principal and interest. With the inclusion of the State - mandated 5% overlevy, the average annual payment is estimated to be approximately $115,000, paid from net revenues from the City's storm water utility. Columns 1 through 5 show the years and amounts of principal and estimated interest due on the Storm Water Revenue Bonds. Column 6 details the 100% debt service plus the 5% overlevy. Net revenues of the storm water utility received each year will be used to cover the August 1 interest payment due in the collection year and the subsequent February 1 principal and interest payment. $2,045,000 General Obligation Public Facility Bonds, Series 2001C (the "Port Authority Bonds ") The Port Authority Bonds are being issued to finance the expansion and renovation of City Hall. Page 12 shows the sources and uses for the Port Authority Bonds. The Port Authority will make a cash contribution of $1,128,079 to the project, and a balance of $2,045,000 will be raised through the sale of Port Authority Bonds. Collectively these sources will provide for $3,128,079 to be deposited into the construction fund. Page 5 City of Rosemount, Minnesota Rosemount Port Authority, Minnesota June 28, 2001 Page 13 outlines the structure and projected debt service for the Port Authority Bonds. In order to keep within the City's guidelines, the issue is structured so that annual debt service (including the 5% overlevy) remains below $180,000 throughout the term of the Port Authority Bonds. This has produced an issue with a 20 -year term and average annual debt service of $174,900. Repayment of the Port Authority Bonds will come from ad valorem tax levies. Proceeds from each Issue are expected to be available by mid - September. Springsted is again pleased to be of service to the City of Rosemount. Respectfully submitted, SPRINGSTED Incorporated ab Provided to Staff: Amendment to Continuing Disclosure Contract Page 6 Preliminary City of Rosemount, Minnesota $405,000 Assessments for Series 2001A General Obligation Improvement Bonds (East Side Watermain Improvements) ASSESSMENT INCOME Date Principal Coupon Interest Total P +I 12/31/2001 12/31/2002 - 40,500.00 - 6.400% - 29,232.00 69,732.00 12/31/2003 40,500.00 6.400% 23,328.00 63,828.00 12/31/2004 40,500.00 6.400% 20,736.00 61,236.00 12/31/2005 40,500.00 6.400% 18,144.00 58,644.00 12/31/2006 40,500.00 6.400% 15,552.00 56,052.00 12/31/2007 40,500.00 6.400% 12,960.00 53,460.00 12/31/2008 40,500.00 6.400 % 10,368.00 50,868.00 12/31/2009 40,500.00 6.400% 7,776.00 48,276.00 12/31/2010 40,500.00 6.400% 5,184.00 45,684.00 12/31/2011 40,500.00 6.400% 2,592.00 43,092.00 Total 405,000.00 - 145,872.00 550,872.00 SIGNIFICANT DATES FilingDate ................................................................................... ............................... 11/15/2001 FirstPayment Date ..................................................................... ............................... 12/31/2002 Springsted Incorporated File = ROSEMOUNT.SF- Assessments for 2001A- SINGLE PURPOSE Advisors to the Public Sector 6/25/2001 2:23 PM Page 7 Preliminary City of Rosemount, Minnesota $1,325,000 General Obligation Improvement Bonds, Series 2001A (East Side Watermain Improvements) SOURCES & USES Dated 08/15/2001 Delivered 08/15/2001 SOURCES OF FUNDS Par Amount of Bonds ........................... ............................... $1,325,000.00 TOTAL SOURCES ............................... ............................... $1,325,000.00 USES OF FUNDS Deposit to Project Construction Fund ... ............................... 1,300,000.00 Costs of Issuance ................................. ............................... 14,688.99 Total Underwriter's Discount (1. 000%) ............................... 13,250.00 Rounding Amount ................................. ............................... (2,938.99) TOTALUSES ............................................ :......................... $1,325,000.00 Springsted Incorporated Advisors to the Public Sector OUNT.SF- Series 2001A- SINGLE PURPOSE 6/27/2001 4:36 PM Page 8 Preliminary Dated....................................................................... ............................... 8/15/2001 DeliveryDate ........................................................... ............................... 8/15/2001 First Coupon Date ................................................... ............................... 8/01/2002 YIELD STATISTICS BondYear Dollars ................................................... ............................... $8,225.97 AverageLife ............................................................ ............................... 6.208 Years AverageCoupon ..................................................... ............................... 4.2368518% Net Interest Cost ( NIC) ............................................ ..................... 4.3979270% True Interest Cost ( TIC) .......................................... ............................... 4.4032242% Bond Yield for Arbitrage Purposes .......................... ............................... 4.2136835% All Inclusive Cost ( AIC) ........................................... ............................... 4.6164584% IRS FORM 8038 Net Interest Cost ..................................................... ............................... 4.2368518% Weighted Average Maturity ..................................... ............................... 6.208 Years Springsted Incorporated File = ROSEMOUNT.SF- Series 2001A- SINGLE PURPOSE Advisors to the Public Sector 6/28/2001 11:17 AM Page 9 City of Rosemount, Minnesota $1,325,000 General Obligation Improvement Bonds, Series 2001A (East Side Watermain Improvements) DEBT SERVICE SCHEDULE 105% Assessment Levy Date Principal Coupon Interest Total P +I Overlevy Income Required ( ( ( ( (5) ( ( ( 2/01/2002 - - - - - - - 2/01/2003 105,000.00 3.250 % 78,439.75 183,439.75 192,611.74 69,732.00 122,879.74 2/01/2004 125,000.00 3.500% 50,272.50 175,272.50 184,036.13 63,828.00 120,208.13 2/01/2005 125,000.00 3.700% 45,897.50 170,897.50 179,442.38 61,236.00 118,206.38 2/01/2006 130,000.00 3.850% 41,272.50 171,272.50 179,836.13 58,644.00 121,192.13 2/01/2007 130,000.00 4.000% 36,267.50 166,267.50 174,580.88 56,052.00 118,528.88 2/01/2008 135,000.00 4.150% 31,067.50 166,067.50 174,370.88 53,460.00 120,910.88 2/01/2009 140,000.00 4.250% 25,465.00 165,465.00 173,738.25 50,868.00 122,870.25 2/01/2010 140,000.00 4.350% 19,515.00 159,515.00 167,490.75 48,276.00 119,214.75 2/01/2011 145,000.00 4.500% 13,425.00 158,425.00 166,346.25 45,684.00 120,662.25 2/01/2012 150,000.00 4.600% 6,900.00 156,900.00 164,745.00 43,092.00 121,653.00 Total 1,325,000.00 - 348,522.25 1,673,522.25 1,757,198.36 550,872.00 1,206,326.36 Dated....................................................................... ............................... 8/15/2001 DeliveryDate ........................................................... ............................... 8/15/2001 First Coupon Date ................................................... ............................... 8/01/2002 YIELD STATISTICS BondYear Dollars ................................................... ............................... $8,225.97 AverageLife ............................................................ ............................... 6.208 Years AverageCoupon ..................................................... ............................... 4.2368518% Net Interest Cost ( NIC) ............................................ ..................... 4.3979270% True Interest Cost ( TIC) .......................................... ............................... 4.4032242% Bond Yield for Arbitrage Purposes .......................... ............................... 4.2136835% All Inclusive Cost ( AIC) ........................................... ............................... 4.6164584% IRS FORM 8038 Net Interest Cost ..................................................... ............................... 4.2368518% Weighted Average Maturity ..................................... ............................... 6.208 Years Springsted Incorporated File = ROSEMOUNT.SF- Series 2001A- SINGLE PURPOSE Advisors to the Public Sector 6/28/2001 11:17 AM Page 9 Preliminary City of Rosemount, Minnesota $1,140,000 General Obligation Storm Water Revenue Bonds, Series 2001 B (Hawkins Pond and Marcotte Forcemain Projects) SOURCES & USES Dated 08/15/2001 Delivered 08/15/2001 SOURCES OF FUNDS Par Amount of Bonds ........................... ............................... $1,140,000.00 TOTAL SOURCES ............................... ............................... $1,140,000.00 USES OF FUNDS Deposit to Project Construction Fund ... ............................... 1,110,000.00 Costs of Issuance ................................. ............................... 17,007.13 Total Underwriter's Discount (1. 200%) ............................... 13,680.00 RoundingAmount ................................. ............................... (687.13) TOTALUSES ....................................... ............................... $1,140,000.00 Springsted Incorporated OUNT.SF- Series 2001113- SINGLE PURPOSE Advisors to the Public Sector 6/27/2001 4:37 PM Page 10 Preliminary SIGNIFICANT DATES Dated........................................................................................ ............................... 8/15/2001 DeliveryDate ............................................................................ ............................... 8/15/2001 FirstCoupon Date .................................................................... ............................... 8/01/2002 YIELD STATISTICS BondYear Dollars .................................................................... ............................... $10,705.67 AverageLife ............................................................................. ............................... 9.391 Years AverageCoupon ....................................................................... ............................... 4.6800689% NetInterest Cost ( NIC) ............................................................. ............................... 4.8078517% True Interest Cost ( TIC) ............................................................ ............................... 4.8075149% Bond Yield for Arbitrage Purposes ............................................ ............................... 4.6424418% All Inclusive Cost ( AIC) ............................................................. ............................... 5.0167025% IRS FORM 8038 NetInterest Cost ...................................................................... ............................... 4 Weighted Average Maturity ...................................................... ............................... 9.391 Years Interest rates are estimates. Changes in rates may cause significant alterations to this schedule The actual underwriter's discount bid may also vary. Springsted Incorporated File = ROSEMOUNT.SF- Series 2001 B- SINGLE PURPOSE Advisors to the Public Sector 6/28/2001 11:21 AM Page 11 City of Rosemount, Minnesota $1,140,000 General Obligation Storm Water Revenue Bonds, Series 20016 (Hawkins Pond and Marcotte Forcemain Projects) DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P +I 105% Levy (1) (2) (3) (4) (5) (6) 2/01/2002 - - - - - 2/01/2003 40,000.00 3.250% 74,012.58 114,012.58 119,713.21 2/01/2004 60,000.00 3.500% 49,355.00 109,355.00 114,822.75 2/01/2005 60,000.00 3.700% 47,255.00 107,255.00 112,617.75 2/01/2006 65,000.00 3.850% 45,035.00 110,035.00 115,536.75 2/01/2007 65,000.00 4.000% 42,532.50 107,532.50 112,909.13 2/01/2008 70,000.00 4.150% 39,932.50 109,932.50 115,429.13 2/01/2009 70,000.00 4.250% 37,027.50 107,027.50 112,378.88 2/01/2010 75,000.00 4.350% 34,052.50 109,052.50 114,505.13 2/01/2011 80,000.00 4.500% 30,790.00 110,790.00 116,329.50 2/01/2012 80,000.00 4.600% 27,190.00 107,190.00 112,549.50 2/01/2013 85,000.00 4.750% 23,510.00 108,510.00 113,935.50 2/01/2014 90,000.00 4.850% 19,472.50 109,472.50 114,946.13 2/01/2015 95,000.00 4.950% 15,107.50 110,107.50 115,612.88 2/01 /2016 100,000.00 5.050% 10,405.00 110,405.00 115,925.25 2/01/2017 105,000.00 5.100% 5,355.00 110,355.00 115,872.75 Total 1,140,000.00 - 501,032.58 1,641,032.58 1,723,084.21 SIGNIFICANT DATES Dated........................................................................................ ............................... 8/15/2001 DeliveryDate ............................................................................ ............................... 8/15/2001 FirstCoupon Date .................................................................... ............................... 8/01/2002 YIELD STATISTICS BondYear Dollars .................................................................... ............................... $10,705.67 AverageLife ............................................................................. ............................... 9.391 Years AverageCoupon ....................................................................... ............................... 4.6800689% NetInterest Cost ( NIC) ............................................................. ............................... 4.8078517% True Interest Cost ( TIC) ............................................................ ............................... 4.8075149% Bond Yield for Arbitrage Purposes ............................................ ............................... 4.6424418% All Inclusive Cost ( AIC) ............................................................. ............................... 5.0167025% IRS FORM 8038 NetInterest Cost ...................................................................... ............................... 4 Weighted Average Maturity ...................................................... ............................... 9.391 Years Interest rates are estimates. Changes in rates may cause significant alterations to this schedule The actual underwriter's discount bid may also vary. Springsted Incorporated File = ROSEMOUNT.SF- Series 2001 B- SINGLE PURPOSE Advisors to the Public Sector 6/28/2001 11:21 AM Page 11 Preliminary Rosemount Port Authority, Minnesota $2,045,000 General Obligation Public Facility Bonds, Series 2001C SOURCES & USES Dated 08/15/2001 Delivered 08/15/2001 SOURCES OF FUNDS Par Amount of Bonds ........................... ............................... $ 2 , 045 , 000 . 00 Planned Issuer Equity contribution ....... ............................... 1,128,079.00 TOTAL SOURCES ............................... ............................... $3,173,079.00 USES OF FUNDS Deposit to Project Construction Fund ... ............................... 3,128,079.00 Total Underwriter's Discount (1. 350%) ............................... 27,607.50 Costs of Issuance ................................. ............................... 19 Rounding Amount ................................. ............................... (2,511.38) TOTALUSES ....................................... ............................... $3,173,079.00 Springsted Incorporated OUNT.SF- Series 2001C- SINGLE PURPOSE Advisors to the Public Sector 6/27/2001 4:38 PM Page 12 Preliminary SIGNIFICANT DATES Dated .......................... 8/15/2001 ......................................... ............................... DeliveryDate ............................................................................ ............................... 8/15/2001 FirstCoupon Date .................................................................... ............................... 8/01/2002 YIELD STATISTICS BondYear Dollars .................................................................... ............................... $25,942.97 AverageLife ............................................................................. ............................... 12.686 Years AverageCoupon ...................................................................... ............................... 4.9585328% Net Interest Cost ( NIC) ............................................................. ............................... 5.0649489% True Interest Cost ( TIC) ........................................................... ............................... 5.0646758% Bond Yield for Arbitrage Purposes ........................................... ............................... 4.9136349% All Inclusive Cost ( AIC) ............................................................ ............................... 5.1754242% IRS FORM 8038 NetInterest Cost ...................................................................... ............................... 4.9585328% .... 12.686 Years Weighted Average Maturity Interest rates are estimates. Changes in rates may cause significant alterations to this schedule. The actual underwriter's discount bid may also vary. Springsted Incorporated File = ROSEMOUNT.SF -Series 2001C- SINGLE PURPOSE Advisors to the Public Sector 6/28/2001 11.23 AM Page 13 Rosemount Port Authority, Minnesota $2,045,000 General Obligation Public Facility Bonds, Series 2001C DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P +I 105 % Levy (1) ( ( ( ( ( 2/01/2002 2/01/2003 - 25,000.00 - 3.250% - 141,221.87 - 166,221.87 - 174,532.96 2/01/2004 70,000.00 3.500% 95,841.26 165,841.26 174,133.32 2/01/2005 75,000.00 3.700% 93,391.26 168,391.26 176,810.82 2/01/2006 75,000.00 3.850% 90,616.26 165,616.26 173,897.07 2/01/2007 80,000.00 4.000% 87,728.76 167,728.76 176,115.20 2/01/2008 80,000.00 4.150% 84,528.76 164,528.76 172,755.20 2/01/2009 85,000.00 4.250% 81,208.76 166,208.76 174,519.20 2/01/2010 90,000.00 4.350% 77,596.26 167,596.26 175,976.07 2/01/2011 95,000.00 4.500% 73,681.26 168,681.26 177,115.32 2/01/2012 95,000.00 4.600% 69,406.26 164,406.26. 172,626.57 2/01/2013 100,000.00 4.750% 65,036.26. 165,036.26 173,288.07 2/01/2014 105,000.00 4.850% 60,286.26 165,286.26 173,550.57 2/01/2015 110,000.00 4.950% 55,193.76 165,193.76 173,453.45 2/01/2016 115,000.00 5.050% 49,748.76 164,748.76 172,986.20 2/01/2017 125,000.00 5.100% 43,941.26 168,941.26 177,388.32 2/01/2018 130,000.00 5.150% 37,566.26 167,566.26 175,944.57 2/01/2019 135,000.00 5.200% 30,871.26 165,871.26 174,164.82 2/01/2020 145,000.00 5.225% 23,851.26 168,851.26 177,293.82 2/01/2021 1.50,000.00 5.250% 16,275.00 166,275.00 174,588.75 2/01/2022 160,000.00 5.250% 8,400.00 168,400.00 176,820.00 Total 2,045,000.00 - 1,286,390.79 3,331,390.79 3,497,960.33 SIGNIFICANT DATES Dated .......................... 8/15/2001 ......................................... ............................... DeliveryDate ............................................................................ ............................... 8/15/2001 FirstCoupon Date .................................................................... ............................... 8/01/2002 YIELD STATISTICS BondYear Dollars .................................................................... ............................... $25,942.97 AverageLife ............................................................................. ............................... 12.686 Years AverageCoupon ...................................................................... ............................... 4.9585328% Net Interest Cost ( NIC) ............................................................. ............................... 5.0649489% True Interest Cost ( TIC) ........................................................... ............................... 5.0646758% Bond Yield for Arbitrage Purposes ........................................... ............................... 4.9136349% All Inclusive Cost ( AIC) ............................................................ ............................... 5.1754242% IRS FORM 8038 NetInterest Cost ...................................................................... ............................... 4.9585328% .... 12.686 Years Weighted Average Maturity Interest rates are estimates. Changes in rates may cause significant alterations to this schedule. The actual underwriter's discount bid may also vary. Springsted Incorporated File = ROSEMOUNT.SF -Series 2001C- SINGLE PURPOSE Advisors to the Public Sector 6/28/2001 11.23 AM Page 13 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,140,000 CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 20018 (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Tuesday, August 7, 2001, until 11:00 A.M., 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. 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 August 15, 2001, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2002. 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: 2003 $40,000 2007 $65,000 2011 $80,000 2015 $70,000 2012 $80,000 2016 $ 95,000 $100,000 2004 $60,000 2008 2005 $60,000 2009 $70,000 2013 $85,000 2017 $105,000 2006 $65,000 2010 $75,000 2014 $90,000 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 14 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 S.E.C. 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 beat 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 storm water utility system. The proceeds will be used to finance improvements to the storm water utility system in the City. TYPE OF PROPOSALS Proposals shall be for not less than $1,126,320 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 $11,400, 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 City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1 %. Rates must be in level or ascending order. Bonds of the same maturity shall bear a Page 15 96 a6ed *(9)(q)Z6 aln2j 03S Aq pai!nbei pue ui pagpeds se sepopsodai uollewiop of saouaain000 u!elaao 10 seo!lou pue � pO eql lnoge uoilewiolui aaylo pue ie!oueug uleliao ap!noid o} spuo8 ayl }o saaumo ayl jo lgauaq ay} ao} lueuanoo p!M Al!0 eqj iepunejegm („ 6u!wl opus„ eqi) bu!wPepun ainsolos!Q 6u!nu!luo0 e Jan!lap pue alnoexe 11p Al!0 ayl `spuo8 ayl jo A.tan!Iap pue aouenss! Ienloe 10 alep eql uO 3bf1S010S1a JNinNIlN00 - luewAed jo} swial p!es Wm aouelldwoo - uou s,aaseyojnd ayl jo uoseej Aq Apo eqj Aq pajajjns ssol Aue jo} Al!0 eql o} alge!i aq pet's aaseyo.md ayj `slueBe sl! ao `�(l!0 ayl jo uo!loe �fq alq!ssodw! spew uaaq aney pegs spuo8 eqj aol juawAed jo swial ayl yl!m eoue!ldwoo se ld93x3 •9w!1 leilua0 `uooN 00:Z� ueyl aalel lou 99u6lsep sl! ao Al!0 ayl jo seo!.4o eqj le pan!aoaa aq pet's yoigm spun] `lualenmbe jo `leiapel ul epew aq Ileys spuo8 ayl aol luawAed `luawalllas 10 alep ayl uO *a}eoljlljao uo!le6!l!I -ou a 6ulpnlou `seeded 6u!solo Ajewolsno jo pue 'elosauu!IN 'sllodeauu!w pue Ined lu!eS 10 `uolleloossy Ieuolssaload 'ue6JoW pue s66!a8 jo uo!uldo 1091 6ulnoidde ue 10 aaseyoand ayl �fq jdleoai of loafgns aq 11!M tianllaa - NJok mGN `MJOA m9N u! 01a y6nayl aaseyoand eqj of lsoo lnoyl!m paaan!iap aq 11!m spuo8 ayl `pieme J!ayl }o alep ayl bu'mOIIOI sAep 0t u!yl!M 1N3W31 H 3S •aaseyoand eqj Aq pled aq pet's saagwnu uolleo!j!luap! diSf10 jo luawu6lsse ayl aol abieyo neein8 aovuaS dISf10 ayl - spuo8 eqj jo tian!lap ldaooe of . iaseyoand ayl Aq lesnjai ao aanl!ej aol asneo alnl!lsuoo ipm olaaayl loadsai gjim joaaa Aue aou puo8 Aue uo saagwnu yons lu!ad of alnl!ej ayl aayl!eu lnq 'spuo8 ayl uo palu!jd aq Ipm saagwnu yons saagwnu dlSflo jo luewu6!sse aol Aj!lenb spuo8 eql 11 Sb38vgnN dlSfl0 •spuo8 ayl uo tian!Iap ldaooe of jaseyoand ayl Aq lesnjaj ao ejnl!ej aol asneo alnl!lsuoo lou 11eys aaseyoand eql of papieme uaaq aney spuo8 aalje Ao!Iod ayl anssi of jainsui puoq led!o!unw ayl jo aanl!ed •jeseyoand ayl jo Alg!g!suodsaa ayl aq Bet's seal A3u 6ullei jaylo Auy •991 bullea leyl Aed 11p Apo ayl 'Aouabe bu!lea a woaJ spuo8 ayl uo bu!lea e pan!aoaa pue polsenbaj set' Apo ayl j! leyl ldeoxe 'jaseyoind ayl Aq pled aq pet's eoueansu! 10 aseyomd yons woij 6u!llnsai spuo8 ayl jo aouenssi jo sisoo paseaaoul Auy 'spuo8 ayl jo jaseyoind ayl jo asuedxa pue uo!ldo alos ayl le aq pet's luawl!wwoo yons Aue jo aouenssi ayl jo Ao!Iod eouejnsu! yons Aue jo aseyojnd ayl 'jelpivuepun ayl jo uo!ldo ayl le JoJaaayl luawl!wwoo jo eoueansu! puoq Ied!o!unw jo Ao!Iod Aue jo aouenss! aoi Aj!lenb spuo8 eql 11 NOIld0 S.U3SVHajnd 1`d 30N`d�jnSNl aN08 •u!aaay swiel eql yl!m Aldwoo of pai!ej aney of saunwalep Al!0 ayl yoigm Iesodoad Aue loefei (!!!) 'pue `asneo lnoyl!m slesodoid IIe loefej (!!) spuo8 ayl jo pieme pue slesodoid jo ld!aoai eql o} 6u!lelaa siallew jo ao Iesodoad Aue jo sa!l!IewaoIu! an!luelsgns -uou an!eM (!) :ol ly6!j ayl emasai 11p Al!0 ayl •bulpoiluoo aq II!m `ao!loeid Aiewolsno yl!m aouepa000e u! `Iesodoad yoea jo alei lsaialu! aq) 10 uo!lelndwoo s,Al!o ayl •s!seq (011) lsoo lsaJalu! anal a uo paulwaalap aq of ales lsajalu! }samol ayl jo s!seq ayl uo papieme aq 11!m spuo8 8y1 abdMd • paldaooe aq 11p slesodoid Ieuo!l!puoo ON - Al!anlew to alep ayl of spuo8 ayl 1 alep ayl wOJJ alea a16uls OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 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 45 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 July 2, 2001 BY ORDER OF THE CITY COUNCIL /s/ Linda Jentink City Clerk 6/28/01 10:12 AM Page 17 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,325,000 CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2001A (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Tuesday, August 7, 2001, until 11:00 A.M., 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. 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 August 15, 2001, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2002. 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: 2003 $105,000 2006 $130,000 2009 $140,000 2011 $145,000 2004 $125,000 2007 $130,000 2010 $140,000 2012 $150,000 2005 $125,000 2008 $135,000 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 registered in the name of Cede & Co. as nominee of The Depository Trust Company ( "DTC"), 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 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 S.E.C. regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The City may elect on February 1, 2010, and on any day thereafter, to prepay Bonds due on or after February 1, 2011. 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 on benefited properties. The proceeds will be used to finance improvements in the City. TYPE OF PROPOSALS Proposals shall be for not less than $1,286,750 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 $13,250, 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 City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1 %. Rates must be in level or ascending order. Bonds of the same maturity shall bear a Page 19 single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The City will reserve the right to: (i) waive non - substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal 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. Except as compliance with the terms of payment for the Bonds shall have 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 OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 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 (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 July 2, 2001 BY ORDER OF THE CITY COUNCIL /s/ Linda Jentink City Clerk 6/28/01 10:12 AM Page 21 THE AUTHORITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $2,045,000 ROSEMOUNT PORT AUTHORITY, MINNESOTA GENERAL OBLIGATION PUBLIC FACILITIES BONDS, SERIES 2001C (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Tuesday, August 7, 2001, until 11:00 A.M., 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 Authority 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 August 15, 2001, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 2002. 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: 2003 $25,000 2008 $80,000 2013 $100,000 2018 $130,000 2004 $70,000 2009 $85,000 2014 $105,000 2019 $135,000 2005 $75,000 2010 $90,000 2015 $110,000 2020 $145,000 2006 $75,000 2011 $95,000 2016 $115,000 2021 $150,000 2007 $80,000 2012 $95,000 2017 $125,000 2022 $160,000 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. Page 22 BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ( "DTC "), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The Authority will name the Registrar which shall be subject to applicable S.E.C. regulations. The Authority will pay for the services of the registrar. OPTIONAL REDEMPTION The Authority may elect on February 1, 2012, and on any day thereafter, to prepay Bonds due on or after February 1, 2013. Redemption may be in whole or in part and if in part at the option of the Authority and in such manner as the Authority shall determine. If less than all Bonds of a maturity are called for redemption, the Authority will notify DTC of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City of Rosemount for which the City of Rosemount will pledge its full faith and credit and power to levy direct general ad valorem taxes. The proceeds will be used to finance the renovation and expansion of the City Hall. TYPE OF PROPOSALS Proposals shall be for not less than $2,017,392 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 $20,450, 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 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 Authority to satisfy the Deposit requirement. The Authority will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event Page 23 the purchaser fails to comply with the accepted proposal, said amount will be retained by the Authority. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the Authority scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1 %. Rates 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. _"W TWX The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The Authority's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The Authority will reserve the right to: (i) waive non - substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal 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. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the Authority, or its agents, the purchaser shall be liable to the Authority for any loss suffered by the Authority by reason of the purchaser's non - compliance with said terms for payment. Page 24 CONTINUING DISCLOSURE On the date of actual issuance and delivery of the Bonds, the Authority will execute and deliver a Continuing Disclosure Undertaking (the "Undertaking ") whereunder the Authority will covenant for the benefit of the owners of the Bonds to provide certain financial and other information about the Authority and notices of certain occurrences to information repositories as specified in and required by SEC Rule 15c2- 12(b)(5). OFFICIAL STATEMENT The Authority has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the Authority, Springsted Incorporated, 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 Authority with respect to the Bonds, as that term is defined in Rule 15c2 -12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor; the Authority agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 75 copies of the Official Statement and the addendum or addenda described above. The Authority designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the Authority (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated July 2, 2001 BY ORDER OF THE BOARD OF COMMISSIONERS /s/ Mary Ann Stoffel Executive Secretary 6/28101 10:12 AM Page 25