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Home My WebLink About6.e. 2001D G.O. Stormwater Revenue Refunding Authorizing Issuance and Setting Bond SaleCITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: November 6, 2001 AGENDA ITEM: 2001D G.O. Storm Water Revenue AGENDA SECTION: Refunding Bond Issue - Authorizing Issuance and Setting Consent Bond Sale PREPARED BY: Jeff May, Finance Director AGENDA NO. 6E ATTACHMENTS: Resolution and Recommendations APPROVED BY: V This item is on the agenda for your consideration in authorizing the issuance and setting the sale of General Obligation Storm Water Revenue Refunding Bonds for the refunding (refinancing) of the 1992B Storm Water revenue issue. Interest rates are low enough at this point in time to justify this refunding with an anticipated net present value savings of approximately $36,000 on this issue. Bids will be opened Tuesday, December 4, 2001, 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 $810,000 GENERAL OBLIGATION STORM WATER REVENUE REFUNDING BONDS, SERIES 2001 D. COUNCIL ACTION: CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $810,000 GENERAL OBLIGATION STORM WATER REVENUE REFUNDING BONDS, SERIES 2001D WHEREAS, the City Council of the City of Rosemount, Minnesota, has heretofore determined that it is necessary and expedient to issue its $810,000 General Obligation Storm Water Revenue Refunding Bonds, Series 2001D (the "Bonds ") to refund the 2003 through 2008 maturities of the City's General Obligation Storm Water Revenue Bonds, Series 1992B, dated September 1, 1992; 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. 1339306v1 RESOLUTION 2001 - ADOPTED this 6th day of November, 2001. ATTEST: Cathy Busho, Mayor Linda J. Jentink, City Clerk Motion by: Voted in favor: Voted Against: Members Absent: Seconded by: 1339306v1 2 RESOLUTION 2001 - 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 $810,000 General Obligation Storm Water Revenue Refunding Bonds, Series 2001D. WITNESS my hand this day of 5 2001. Clerk 1339306v1 3 RESOLUTION 2001 - EXHIBIT A THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $810,000* CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION STORM WATER REVENUE REFUNDING BONDS, SERIES 2001D (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Tuesday, December 4, 2001, 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. 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 December 1, 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 $125,000 2004 $130,000 2005 $130,000 2006 $140,000 2007 $140,000 2008 $145,000 -i - RESOLUTION 2001 - The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total amount not to exceed $40,000 and will be made in multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any discount taken by the successful bidder will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ( "DTC "), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturity dates. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge net revenues of the City's storm water utility. The proceeds will be used to refund the February 1, 2003 through 2008 maturities of the City's General Obligation Storm Water Revenue Bonds, Series 19928, dated September 1, 1992. TYPE OF PROPOSALS Proposals shall be for not less than $803,520 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 $8,100, 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 1299891v1 H - III - luawAed `luawalltas jo alep ayl uO •aleoitilaao uollebilil -ou a bulpnloui `saaded buisolo Aaewolsno jo pue `elosauuilN `silodeaugVI pue Ined tuleS 10 `uoiteioossy teuoissatoad `uebaoW pue sb6la810 uoiuldo lebal buinoidde ue jo aaseyoand ayt Aq ldlaow of loafgns aq Illnn AaanilaQ '�JOA nnaN VOA nnaN ui X14 ybnoayl aaseyoand ayt of lsoo lnoylinn paaanilep aq IIInn spuog ayl `paenne alayl jo alep ayl buinnollot. sAep Ot, ulyliM 1N8WD111DS aaseyoand ayt Aq pled aq lleys saagwnu uoileopuepl dlSflo jo tuawublsse ayl aoj abaeyo neaang aolmaS disno ayl spuo8 ayt jo Aaanilap td000e of aaseyoand ay} Aq lesnjaa ao aanllel aol asneo alnlilsuoo limn olaaayl loodsaa ylinn aoaaa Aue aou puog Aue uo saagwnu yons lulad of aanllel ay} aayliau lnq `spuo8 ayl uo patuiad aq Minn saagwnu yons saagwnu dlSfl0 to tuawublsse aol Ajilenb spuog ayt 11 S?JD8Wf1N dlSflo - uiaaay swaat ayt ylinn Aldwoo of panel aney of sauiwaalap Alin ayl yoiynn Iesodoad Aue toafaa (iii) `pue `asneo tnoylinn slesodoad Ile loafaa (p) `spuo8 ayl to paenne pue slesodoad to tdiaoaa ayl of builelaa saallew to ao Iesodoad Aue to seililewaolui anlluelsgns -uou anienn (i) :ol 145la ayl anaasaa Minn All0 ayl - bullloaluoo aq Minn `aoiloead Aaewolsno yllnn aouepa000e ui `Iesodoad pea to alea tsaaatui ayl to uolletndwoo s,Atio ayl siseq (ail) lsoo lsaaalul anal e uo poulwaalap aq of alea tsaaalui lsannol ayl jo siseq ayt uo papaenne aq Minn spuo8 ay_L MIvm`d •paldeooe aq Ipm slesodoad Ieuoillpuoo ON - Alunlew jo alep ayt of spuog ayl to alep ayl wont. alea al6uis e aeaq Ileys Alpnlew awes ayt to spuog - aapao 6uipu80se ao lanai ui aq tsnw sale�l " %[ to g/� ao 00 f/5 to seldlllnw leabalui ul eq Ileys sales - apew uaaq 6uiney spuog ayl jo paenne lnoytinn alep aayloue of panulluoo ao `passooaa `pauanofpe sl spuog ayt to paenne aot pelnpayos Alit ayl to 6upaw ayl ssolun slesodoad 6ulniaoaa aoI las awil ayl aap popuawe ao unneapyl!m aq ueo Iesodoad ON - Apo ayt Aq pauielaa aq IIIM tunowe pies `lesodoad pold000e ayl ylinn Aldwoo of sl!et aaseyoand ayl luana ayl ui - aaseyoand ayl of enaooe Minn tsaaalul ou pue luawalllas le polonpop aq IIIM yoiynn ,lo lunowe ayl `aaseyoand ayl to �oayo ayt tlsodep Minn AII0 ayl - luawaainbaa llsodaa ayt Ashes of Ati0 ayl Aq unneap aq Aew puo8 AtaanS leloueul j ayt `ewil leyl Aq panlaoaa loo sr llsodaQ yons jI •paenne ayl buinnollot Aep sseuisnq lxau ayl uo `awil lealuao `'W'd OC :C ueyl aalel tou poleaodaooul pals6uiadS Aq palonalsul se aatsueal aalnn ao joayo s,aaiyseo ao pa jpeo a to waoj ayl ui poleaodaooui polsbuladS of llsodaa sti tiwgns of paainbaa si aaseyoand leyl uayl `puo8 AlaanS leioueurj a 6uisn aaliannaapun ue of papaenne aae spuog ayl tl •puog AlainS leioueul j yons Aq paalueaenb sl llsodaa asoynn aallannaapun yoea A tiepi tsnw puog AlaanS leloueui j ay_L •slesodoad ayl jo buivado ayl of aopd paleaodaooul palsbuudS of palllwgns aq tsnw puoq yonS •A4l0 ayl Aq panoaddeaad pue `etosauuilN to aletS ayt ui puoq a yons onssl of pasuaoll Auedwoo aoueansul - LOOZ NOIlf osaj RESOLUTION 2001 - 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 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 November 6, 2001 BY ORDER OF THE CITY COUNCIL /s/ Linda Jentink City Clerk -iv - V Recommendations For City of Rosemount, Minnesota $810,000 General Obligation Storm Water Revenue Refunding Bonds, Series 2001 D $725,000 General Obligation Community Center Refunding Bonds, Series 2001 E Presented to: Mayor Cathy Busho Members, City Council Mr. Thomas Burt, City Administrator Mr. Jeffrey May, Finance Director City of Rosemount 2875-145 th Street West Rosemount, Minnesota 55068 SPRINGSTED Public Finance Advisors Study No.: R0704A5135 SPRINGSTED Incorporated October 30, 2001 f RECOMMENDATIONS Re: Recommendations for the Issuance of: $810,000 General Obligation Storm Water Revenue Refunding Bonds, Series 2001 D (the "Series 2001 D Bonds ") $725,000 General Obligation Community Center Refunding Bonds, Series 2001 E (the "Series 2001 E Bonds ") (Collectively the "Bonds" or the "Issues ") We respectfully request your consideration of our recommendations for the above - mentioned Issues. Bond proceeds for each series of Bonds will be used to refinance existing bond issues for interest cost savings. Specifically, the Series 2001 D Bonds will refund the February 1, 2003 through 2008 maturities of the City's $1,525,000 General Obligation Storm Water Revenue Bonds, Series 1992B (the "1992B Bonds "), dated September 1, 1992 and the Series 2001 E Bonds will be used to refund the February 1, 2004 through 2013 maturities of the City's $1,080,000 General Obligation Community Center Bonds, Series 1992C (the "1992C Bonds "), dated November 1, 1992. The method of refunding and estimated savings for each Issue is described under the "DISCUSSION" section of these recommendations. We recommend the following for the Bonds: Action Requested To establish the date and time of receiving bids and establish the terms and conditions of the offerings. 2. Sale Date and Time Tuesday, December 4, 2001 at 12:00 P.M., with award by the City Council at 7:30 P.M. that same day. 3. Authority for the Bond Issues The Bonds are being issued pursuant to Minnesota Statutes, Chapter 475. The Series 2001 D Bonds are also being issued pursuant to Minnesota Statutes, Chapter 444. 4. Principal Amount of Offerings The Series 2001 D Bonds - $810,000 The Series 2001 E Bonds - $725,000 Included in the attached Terms of Proposal for each series of Bonds is a provision that permits the City to increase or reduce the principal amount of each of the Issues in any of their maturities, up to a maximum designated amount. This allows for any necessary adjustments required based on final interest rates and issuance costs and also the final investment rate for the escrow account for the Series 2001 E Bonds. 5. Repayment Terms The Series 2001 D Bonds will mature annually February 1, 2003 through 2008. Interest will be payable semi - annually each February 1 and August 1, commencing August 1, 2002. City of Rosemount, Minnesota October 30, 2001 0 7 E E The Series 2001 E Bonds will mature annually February 1, 2003 through 2013. Interest will be payable semi - annually each February 1 and August 1, commencing August 1, 2002. Sources of Payment The Series 2001 D Bonds will 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 the Series 2001 D Bonds. Prepayment Provisions Credit Rating Comments Federal Treasury Regulations Concerning Tax - Exempt Obligations The Series 2001 E Bonds will be paid from general obligation ad valorem tax levies. Due to their short duration, neither the Series 2001 D or 2001 E Bonds will be callable in advance of their stated maturity dates. 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 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. The City will not owe any rebate from the investment of the proceeds of the Series 2001 D Bonds because the proceeds will be spent within three months to redeem the 1992B Bonds. The City will not owe any Page 2 City of Rosemount, Minnesota October 30, 2001 (c) Bona Fide Debt Service Fund rebate on the Series 2001 E Bonds because the proceeds will be invested in an escrow account at a yield no greater than the yield on the Series 2001 E Bonds. 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. (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 improvements originally financed by the 1992B Bonds is 50 years. The economic life of the Community Center project originally funded by the 1992C Bonds is at least 20 years. Each of the Issues is within the economic life requirements. 10. Continuing Disclosure Each series of Bonds is subject to continuing disclosure requirements set forth by the Securities and Exchange Commission. There is an exemption for issues that are under $1 million. However, the combined principal amount of these Issues, which are both general obligation bonds, exceeds the $1 million exemption. Therefore, the City will be required to undertake an annual update of its Official Statement information and report any material events to the national repositories in regards to these Issues. The City is currently under contract with Springsted to assist with meeting the continuing disclosure requirements. These Issues will be added to that contract by an amendment provided to City staff. 11. Attachments • Series 2001 D Bonds — Refunding Analysis • Series 2001 E Bonds — Refunding Analysis • Terms of Proposal Page 3 City of Rosemount, Minnesota October 30, 2001 DISCUSSION $810,000 General Obligation Storm Water Revenue Refunding Bonds, Series 2001D (the "Series 2001 D Bonds ") The proceeds of the Series 2001 D Bonds will be used to refund the February 1, 2003 through 2008 maturities of the City's $1,525,000 General Obligation Storm Water Revenue Bonds, Series 1992B (the "19928 Bonds "), dated September 1, 1992, and currently outstanding in the principal amount of $895,000. The 1992B Bonds were issued to finance storm water improvements in the City. The Series 2001 D Bonds will be considered a current refunding under the Internal Revenue Code since the 1992B Bonds will be redeemed and paid on February 1, 2002, which is within 90 days of the settlement date for the Series 2001 D Bonds. The 1992B Bonds are callable at a price of par plus accrued interest. On February 1, 2002, the City will make the scheduled principal and interest payment on the 19928 Bonds. Proceeds from the Series 2001 D Bonds will be used on that date to prepay the remaining $785,000 of principal maturing in the years 2003 through 2008 on the 1992B Bonds. Based on current interest rate estimates, the refunding is projected to result in the City realizing cash flow savings that will average approximately $3,500 to $8,000 annually. This results in future value savings of approximately $39,750, with a net present value benefit to the City of approximately $36,000. These estimates are net of all costs of issuance associated with the refunding issue. The cash flow savings will be realized beginning with the City's August 1, 2002 interest payment on the Series 2001 D Bonds. We have attached a set of schedules that summarize the refunding statistics and the projected savings resulting from the sale of the Series 2001 D Bonds. These schedules include the following information about the proposed refunding Series 2001 D Bonds: • Refunding Summary: indicates the sizing of the refunding issue, savings data and bond data — page 6. • Prior Original Debt Service: shows the existing debt service requirements on the 1992B Bonds without a refunding — page 7. • Debt Service to Maturity and to Call: shows the 1992B Bonds' remaining debt service to maturity and to the call date — page 8. • Debt Service Schedule: shows the new debt service on the Series 2001 D Bonds, based on current estimated interest rates — page 9. • Debt Service Comparison: shows the new debt service comparison and the projected annual cash flow savings of the Series 2001 D Bonds to the 1992B Bonds, taking into account the non - refunded principal and interest payment due February 1, 2002 — page 10. $725,000 General Obligation Community Center Refunding Bonds, Series 2001E (the "Series 2001 E Bonds ") The proceeds of the Series 2001 E Bonds will be used to refund in advance of maturity the 2004 through 2013 maturities of the City's $1,080,000 General Obligation Community Center Bonds, Series 1992C (the "1992C Bonds "), dated November 1, 1992. The issuance of the Series 2001 E Bonds is being conducted as a crossover refunding, in which the proceeds of the refunding bonds (new issue) are placed in an escrow account with a major bank and invested in government securities. These securities and their earnings are structured to pay interest on the Page 4 City of Rosemount, Minnesota October 30, 2001 new bonds until the call date of the 1992C Bonds (old issue), at which time the escrow account will crossover and prepay all of the remaining principal of the 1992C Bonds. The City will continue to pay the originally scheduled debt service on the 1992C Bonds until the call date (February 1, 2003). After the call date, the City will cross over and begin making debt service payments on the Series 2001 E Bonds, taking advantage of the lower interest rates. Based on current interest rate estimates, the refunding is projected to result in the City realizing cash flow savings that will average approximately $6,000 annually. This results in future value savings of approximately $63,000, with a net present value benefit to the City of approximately $50,400. These estimates are net of all costs of issuance associated with the refunding issue. We have attached a set of schedules that summarize the refunding statistics and the projected savings resulting from the sale of the Series 2001E Bonds. These schedules include the following information about the Series 2001 E Bonds: • Refunding Summary: indicates the sizing of the refunding issue, savings data and bond data page 11. • Prior Original Debt Service: shows the existing debt service requirements on the 1992C Bonds without a refunding — page 12. • Debt Service to Maturity and to Call: shows the 1992C Bonds' remaining debt service to maturity and to the call date, indicating the escrow requirements — page 13. • Debt Service Schedule: shows the new debt service on the Series 2001 E Bonds, based on current estimated interest rates — page 14. • Debt Service Comparison: shows the new debt service comparison and the projected annual cash flow savings of the Series 2001 E Bonds to the 1992C Bonds — page 15. Market Conditions The tragedy that occurred on Tuesday, September 11, 2001, and the subsequent military action commenced by the United States and its allies on October 7, 2001 in response thereto, may cause repercussions in the bond market. Market adjustments have already made themselves apparent and we have incorporated our measurement of those impacts in these recommendations. At this time we cannot predict what further effects, if any, there might be. We will closely monitor the situation and advise you of any changes that may effect the sale of your Bonds and the estimated interest cost savings. Springsted is again pleased to be of service to the City of Rosemount. Respectfully submitted, SPRINGSTED Incorporated ae Provided to Staff: Continuing Disclosure Contract Amendment Page 5 Preliminary City of Rosemount, Minnesota $810,000 G. 0. Storm Water Revenue Refunding Bonds, Series 2001D Current Refunding of 1992B REFUNDING SUMMARY Dated 12/01/2001 Delivered 12/15/2001 SOURCES OF FUNDS Par Amount of Bonds ......................................... ............................... $810,000.00 Accrued Interest from 12101/2001 to 12/15/ 2001 . ............................... 1,001.68 TOTAL SOURCES ............................................. ............................... $811,001.68 USES OF FUNDS Deposit to Current Refunding Fund ..................... ............................... 782,684.12 Costsof Issuance ............................................... ............................... 16,050.00 Total Underwriter's Discount (0. 800%) ............... ............................... 6,480.00 RoundingAmount .............................................. ............................... 4,785.88 Deposit to Debt Service Fund .............................. ............................... 1,001.68 TOTALUSES ................................ ............................... .................... $811,001.68 FLOW OF FUNDS DETAIL State and Local Government Series (SLGS) rates for .......................... 10/25/2001 Date of OMP Candidates .................................... ............................... CURRENT REFUNDING ESCROW SOLUTION METHOD ................ Net Funded Total Cost of Investments ................................... ............................... $782,684.12 Interest Earnings @ 2. 326% ............................... ............................... 2,315.88 TOTALDRAWS ................................................. ............................... $785,000.00 ISSUES REFUNDED AND CALL DATES Series1992B ..................................................... ............................... 2/01/2002 PRESENT VALUE ANALYSIS SUMMARY (NET TO NET) Net PV Cashflow Savings @ 3.365 %(Bond Yield ) ............................. 30,196.18 Accrued Interest Credit to Debt Service Fund ...... ............................... 1,001.68 Contingency or Rounding Amount ....................... ............................... 4,785.88 NET PRESENT VALUE BENEFIT ...................... ............................... $35,983.74 NET PV BENEFIT / $785,000 REFUNDED PRINCIPAL ................. 4.584% NET PV BENEFIT / $810,000 REFUNDING PRINCIPAL ................ 4.442% BOND STATISTICS AverageLife ....................................................... ............................... 3.753 Years AverageCoupon ................................................. ............................... 3.3732867% Net Interest Cost ( NIC) ....................................... ............................... 3.5864446% Bond Yield for Arbitrage Purposes ....................... ............................... 3.3645270% True Interest Cost ( TIC) ...................................... ............................... 3.5948066% AllInclusive Cost ( AIC) ....................................... ............................... 4.1908652% Springsted Incorporated File = ROSEMOUNT.SF -Series 2001D Ref 92BSeries 2001D Ref 92B Advisors to the Public Sector 10/29/2001 9:17 AM Page 6 Preliminary YIELD STATISTICS AverageLife ........................................................................ ............................... 3.373 Years Weighted Average Maturity (Par Basis) ....................... ............................... 3.334 Years AverageCoupon ................................................................. ............................... 5.6209909 % REFUNDING BOND INFORMATION RefundingDated Date ......................................................... ............................... 12/01/2001 Refunding Delivery Date ...................................................... ............................... 12/15/2001 Springsted Incorporated File = ROSEMOUNT.SF -Series 1992B- SINGLE PURPOSE Advisors to the Public Sector 10/29/2001 9:17 AM Page 7 $1,525,000 City of Rosemount, Minnesota G.O. Storm Water Revenue Bonds Series 1992B PRIOR ORIGINAL DEBT SERVICE Date Principal Coupon Interest Total P +I 2/01/1992 - - - ' 2/01/1993 - - 77,205.00 77,205.00 2/01/1994 30,000.00 3.350% 77,205.00 107,205.00 2/01/1995 60,000.00 3.750% 76,200.00 136,200.00 2/01/1996 75,000.00 4.000% 73,950.00 148,950.00 2/01/1997 85,000.00 4.250% 70,950.00 155,950.00 2/01/1998 90,000.00 4.500% 67,337.50 157,337.50 2/01/1999 .95,000.00 4.700% 63,287.50 158,287.50 2/01/2000 95,000.00 4.900% 58,822.50 153,822.50 2/01/2001 100,000.00 5.000% 54,167.50 154,167.50 2/01/2002 110,000.00 5.100% 49,167.50 159,167.50 2/01/2003 115,000.00 5.250% 43,557.50 158,557.50 2/01/2004 120,000.00 5.400% 37,520.00 157,520.00 2/01/2005 125,000.00 5.500% 31,040.00 156,040.00 2/01/2006 135, 000.00 5.600% 24,165.00 159,165.00 2/01/2007 140,000.00 5.700% 16,605.00 156,605.00 2101/2008 150,000.00 5.750% 8,625.00 158,625.00 Total 1, 525, 000.00 - 829, 805.00 2, 354, 805.00 YIELD STATISTICS AverageLife ........................................................................ ............................... 3.373 Years Weighted Average Maturity (Par Basis) ....................... ............................... 3.334 Years AverageCoupon ................................................................. ............................... 5.6209909 % REFUNDING BOND INFORMATION RefundingDated Date ......................................................... ............................... 12/01/2001 Refunding Delivery Date ...................................................... ............................... 12/15/2001 Springsted Incorporated File = ROSEMOUNT.SF -Series 1992B- SINGLE PURPOSE Advisors to the Public Sector 10/29/2001 9:17 AM Page 7 Preliminary YIELD STATISTICS AverageLife ................................... ............................... 3.823 Years Weighted Average Maturity (Par Basis) ......................... 3.784 Years Average Coupon ............................ ............................... 5.3822549% REFUNDING BOND INFORMATION Refunding Dated Date .................... ............................... 12/01/2001 Refunding Delivery Date ................. ............................... 12/15/2001 Springsted Incorporated File = ROSEMOUNT.SF- Series 1992B- SINGLE PURPOSE Advisors to the Public Sector 10/29/2001 9:17 AM Page 8 $1,525,000 City of Rosemount, Minnesota G.O. Storm Water Revenue Bonds Series 1992B DEBT SERVICE TO MATURITY AND TO CALL Date Refunded Bonds D/S To Call Principal Coupon Interest Refunded D/S 2/01/2002 785,000.00 785,000.00 - 5.100% - - 2/01/2003 - - 115,000.00 5.250% 43,557.50 158,557.50 . 2/01/2004 - - 120, 000.00 5.400% 37, 520.00 157, 520.00 2/01/2005 - - 125,000.00 5.500% 31,040.00 156,040.00 2/01/2006 - - 135, 000.00 5.600% 24,165.00 159,165.00 2/01/2007 - - 140,000.00 5.700% 16,605.00 156,605.00 2/01/2008 - - 150,000.00 5.750% 8,625.00 158,625.00 Total 785,000.00 785,000.00 785,000.00 - 161,512.50 946,512.50 YIELD STATISTICS AverageLife ................................... ............................... 3.823 Years Weighted Average Maturity (Par Basis) ......................... 3.784 Years Average Coupon ............................ ............................... 5.3822549% REFUNDING BOND INFORMATION Refunding Dated Date .................... ............................... 12/01/2001 Refunding Delivery Date ................. ............................... 12/15/2001 Springsted Incorporated File = ROSEMOUNT.SF- Series 1992B- SINGLE PURPOSE Advisors to the Public Sector 10/29/2001 9:17 AM Page 8 Preliminary YIELD STATISTICS Accrued Interest from 12/01/2001 to 12/15/ 2001 ................... ............................... 1,001.68 BondYear Dollars ................................................................ ............................... $3,040.00 AverageLife ......................................................................... ............................... 3.753 Years AverageCoupon .................................................................. ............................... 3.3732867% NetInterest Cost ( NIC) ......................................................... ............................... 3.5864446% True Interest Cost ( TIC)...... ................................................. ............................... 3.5948066% Bond Yield for Arbitrage Purposes ........................................ ............................... 3.3645270% AllInclusive Cost ( AIC) ........................................................ ............................... 4.1908652% IRS FORM 8038 NetInterest Cost ..........:....................................................... ............................... 3.3753112% Weighted Average Maturity .................................................. ............................... 3.714 Years Springsted Incorporated File = ROSEMOUNT.SF- Series 2001 D Ref 92B- Series 2001 D Ref 92B Advisors to the Public Sector 10/29/2001 9:17 AM Page 9 City of Rosemount, Minnesota $810,000 G.O. Storm Water Revenue Refunding Bonds, Series 2001 D Current Refunding of 1992B DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P +1 2/01/2002 - - - - 2/01/2003 125,000.00 2.500% 30,050.42 155,050.42 2/01/2004 130,000.00 2.800% 22,632.50 152,632.50 2/01/2005 130,000.00 3.050% 18,992.50 148,992.50 2/01/2006 140,000.00 3.300% 15,027.50 155,027.50 2/01/2007 140,000.00 3.550% 10,407.50 150,407.50 2/01/2008 145,000.00 3.750% 5,437.50 150,437.50 Total 810, 000.00 - 102, 547.92 912, 547.92 YIELD STATISTICS Accrued Interest from 12/01/2001 to 12/15/ 2001 ................... ............................... 1,001.68 BondYear Dollars ................................................................ ............................... $3,040.00 AverageLife ......................................................................... ............................... 3.753 Years AverageCoupon .................................................................. ............................... 3.3732867% NetInterest Cost ( NIC) ......................................................... ............................... 3.5864446% True Interest Cost ( TIC)...... ................................................. ............................... 3.5948066% Bond Yield for Arbitrage Purposes ........................................ ............................... 3.3645270% AllInclusive Cost ( AIC) ........................................................ ............................... 4.1908652% IRS FORM 8038 NetInterest Cost ..........:....................................................... ............................... 3.3753112% Weighted Average Maturity .................................................. ............................... 3.714 Years Springsted Incorporated File = ROSEMOUNT.SF- Series 2001 D Ref 92B- Series 2001 D Ref 92B Advisors to the Public Sector 10/29/2001 9:17 AM Page 9 Preliminary PRESENT VALUE ANALYSIS SUMMARY (NET TO NET) Net FV Cashflow Savings ....................................................... ............................... 33,964.58 Gross PV Debt Service Savings ............................................. ............................... 30,196.18 Net PV Cashflow Savings @ 3.365 %(Bond Yield) ................. ............................... 30,196.18 Accrued Interest Credit to Debt Service Fund .......................... ............................... 1,001.68 Contingency or Rounding Amount .......................................... ............................... 4,785.88 NET FUTURE VALUE BENEFIT ............................................. ............................... $39,752.14 NET PRESENT VALUE BENEFIT .......................................... ............................... $35,983.74 NET PV BENEFIT / $148,177.38 PV REFUNDED INTEREST . ............................... 24.284% NET PV BENEFIT / $841,197.86 PV REFUNDED DEBT SERVICE ....................... 4.278% NET PV BENEFIT / $785,000 REFUNDED PRINCIPAL ....... ............................... 4.584% NET PV BENEFIT / $810,000 REFUNDING PRINCIPAL ..... ............................... 4.442% Springsted Incorporated File = ROSEMOUNT.SF- Series 2001 D Ref 9213- Series 2001 D Ref 92B Advisors to the Public Sector 10/29/2001 9:17 AM Page 10 City of Rosemount, Minnesota $810,000 G.O. Storm Water Revenue Refunding Bonds, Series 2001 D Current Refunding of 1992B DEBT SERVICE COMPARISON Date Total P +I Existing D/S Net New D/S Old Net D/S Savings 2/01/2002 - 134,583.75 134,583.75 134,583.75 - 2/01/2003 155, 050.42 - 155, 050.42 158, 557.50 3,507.08 2/01/2004 152,632.50 - 152,632.50 157,520.00 4,887.50 2/01/2005 148, 992.50 - 148, 992.50 156, 040.00 7,047.50 2/01/2006 155, 027.50 - 155, 027.50 159,165.00 4,137.50 2/01/2007 150,407.50 - 150,407.50 156,605.00 6,197.50 2/01/2008 150,437.50 - 150,437.50 158,625.00 8,187.50 Total 912,547.92 134,583.75 1,047,131.67 1,081,096.25 33,964.58 PRESENT VALUE ANALYSIS SUMMARY (NET TO NET) Net FV Cashflow Savings ....................................................... ............................... 33,964.58 Gross PV Debt Service Savings ............................................. ............................... 30,196.18 Net PV Cashflow Savings @ 3.365 %(Bond Yield) ................. ............................... 30,196.18 Accrued Interest Credit to Debt Service Fund .......................... ............................... 1,001.68 Contingency or Rounding Amount .......................................... ............................... 4,785.88 NET FUTURE VALUE BENEFIT ............................................. ............................... $39,752.14 NET PRESENT VALUE BENEFIT .......................................... ............................... $35,983.74 NET PV BENEFIT / $148,177.38 PV REFUNDED INTEREST . ............................... 24.284% NET PV BENEFIT / $841,197.86 PV REFUNDED DEBT SERVICE ....................... 4.278% NET PV BENEFIT / $785,000 REFUNDED PRINCIPAL ....... ............................... 4.584% NET PV BENEFIT / $810,000 REFUNDING PRINCIPAL ..... ............................... 4.442% Springsted Incorporated File = ROSEMOUNT.SF- Series 2001 D Ref 9213- Series 2001 D Ref 92B Advisors to the Public Sector 10/29/2001 9:17 AM Page 10 City of Rosemount, Minnesota $725,000 G.O. Community Center Refunding Bonds, Series 2001E Crossover Refunding of Series 1992C REFUNDING SUMMARY Dated 12/01/2001 Delivered 12/15/2001 SOURCES OF FUNDS ParAmount of Bonds ...................................... ............................... $725,000.00 Accrued Interest from 12/01/2001 to 12/15/ 2001 ........................... 1,054.86 TOTAL SOURCES .......................................... ............................... $726,054.86 USES OF FUNDS Deposit to Crossover Escrow Fund ................. ............................... 698,502.74 Costs of Issuance ........................................... ............................... 17,050. Total Underwriters Discount (1. 100%) ........... ............................... 7,975.00 RoundingAmount ........................................... ............................... 2,527.12 TOTALUSES ................................................. ............................... $726,054.86 FLOW OF FUNDS DETAIL State and Local Government Series (SLGS) rates for .................... 10/25/2001 Date of OMP Candidates ................................ ............................... 10/24/2001 CROSSOVER ESCROW FUND SOLUTION METHOD ................ Net Funded Total Cost of Investments ............................... ............................... $698,502.74 Interest Earnings @ 2. 313% ......................... ............................... 47,595.00 TOTALDRAWS .............................................. ............................... $716,645.83 ISSUES REFUNDED AND CALL DATES Series 1992C .................................................. ............................... 2/01/2003 PRESENT VALUE ANALYSIS SUMMARY (NET TO NET) Net PV Cashflow Savings @ 3. 913 %(Bond Yield) ........................ 47,862.74 Contingency or Rounding Amount ................... ............................... 2,527.12 NET PRESENT VALUE BENEFIT .................. ............................... $50,389.86 NET PV BENEFIT / $685,000 REFUNDED PRINCIPAL............ 7.356% NET PV BENEFIT / $725,000 REFUNDING PRINCIPAL........... 6.950% BOND STATISTICS AverageLife .................................................... ............................... 6.953 Years Average Coupon ............................................. ............................... 3.9310134% Net Interest Cost ( NIC) ................................... ............................... 4.0892214% Bond Yield for Arbitrage Purposes .................. ............................... 3.9130226% True Interest Cost ( TIC) .................................. ............................... 4.0985813% All Inclusive Cost ( AIC) ................................... ............................... 4.5105329% Springsted Incorporated File = ROSEMOUNT.SF -Series 2001E Ref 92CSedes 2001E Ref 92C Advisors to the Public Sector 10/2912001 9:15 AM Page 11 Preliminary YIELD STATISTICS AverageLife ........................................................................ ............................... 6.378 Years Weighted Average Maturity (Par Basis) ............................... ..............:........I....... 6.339 Years AverageCoupon ................................................................. ............................... 6.4798827% REFUNDING BOND INFORMATION Refunding Dated Date ......................................................... ............................... 12/01/2001 Refunding Delivery Date ...................................................... ............................... 12/15/2001 Springsted Incorporated File = ROSEMOUNT.SF -Series 1992C- SINGLE PURPOSE Advisors to the Public Sector 10/29/2001 9:15 AM Page 12 $1,080,000 City of Rosemount, Minnesota G.O. Community Center Bonds Series 1992C PRIOR ORIGINAL DEBT SERVICE Date Principal Coupon Interest Total P +I 2/01/2002 45,000.00 5.750% 24,830.00 69,830.00 2/01/2003 50,000.00 6.000% 47,072.50 87,072.50 2/01/2004 50,000.00 6.150% 44,072.50 94,072.50 2/01/2005 55,000.00 6.250% 40,997.50 95,997.50 2101/2006 60,000.00 6.300% 37,560.00 97,560.00 2/01/2007 60,000.00 6.350% 33,780.00 93,780.00 2/01/2008 65,000.00 6.400% 29,970.00 94,970.00 2/01/2009 70,000.00 6.450% 25,810.00 95,810.00 2/01/2010 75,000.00 6.500% 21,295.00 96,295.00 2/01/2011 80,000.00 6.550% 16,420.00 96,420.00 2/01/2012 80, 000.00 6.550% 11,180.00 91,180.00 2/01/2013 90,000.00 6.600% 5,940.00 95,940.00 Total 780, 000.00 - 338, 927.50 1,118, 927.50 YIELD STATISTICS AverageLife ........................................................................ ............................... 6.378 Years Weighted Average Maturity (Par Basis) ............................... ..............:........I....... 6.339 Years AverageCoupon ................................................................. ............................... 6.4798827% REFUNDING BOND INFORMATION Refunding Dated Date ......................................................... ............................... 12/01/2001 Refunding Delivery Date ...................................................... ............................... 12/15/2001 Springsted Incorporated File = ROSEMOUNT.SF -Series 1992C- SINGLE PURPOSE Advisors to the Public Sector 10/29/2001 9:15 AM Page 12 Preliminary YIELD STATISTICS Average Life ................................... ............................... 7.167 Years Weighted Average Maturity (Par Basis) ......................... 7.128 Years Average Coupon ............................ ............................... 6.4867001% REFUNDING BOND INFORMATION Refunding Dated Date .................... ............................... 12/01/2001 Refunding Delivery Date ................. ............................... 12/15/2001 Springsted Incorporated File = ROSEMOUNT.SF -Series 1992C- SINGLE PURPOSE Advisors to the Public Sector 10/29/2001 9:15 AM Page 13 $1,080,000 City of Rosemount, Minnesota G.O. Community Center Bonds Series 1992C DEBT SERVICE TO MATURITY AND TO CALL Date Refunded Bonds D/S To Call Principal Coupon Interest Refunded D/S 2/01/2002 - 22,036.25 - 5.750% 22,036.25 22,036.25 2/01/2003 685,000.00 729,072.50 - 6.000% 44,072.50 44,072.50 2/01/2004 - - 50,000.00 6.150% 44,072.50 94,072.50 2/01/2005 - - 55,000.00 6.250% 40,997.50 95,997.50 2/01/2006 - - 60,000.00 6.300% 37,560.00 97,560.00 2/01/2007 - - 60,000.00 6.350% 33,780.00 93,780.00 2/01/2008 - - 65,000.00 6.400°x6 29,970.00 94,970.00 2/01/2009 - - 70,000.00 6.450% 25,810.00 95,810.00 2/01/2010 - - 75,000.00 6.500% 21,295.00 96,295.00 2/01/2011 - - 80,000.00 6.550% 16,420.00 96,420.00 2/01/2012 - - 80, 000.00 6.550°x6 11,180.00 91,180.00 2/01/2013 - - 90,000.00 6.600°x6 5,940.00 95,940.00 Total 685, 000.00 751,108.75 685,000.00 - 333,133.75 1,018,133.75 YIELD STATISTICS Average Life ................................... ............................... 7.167 Years Weighted Average Maturity (Par Basis) ......................... 7.128 Years Average Coupon ............................ ............................... 6.4867001% REFUNDING BOND INFORMATION Refunding Dated Date .................... ............................... 12/01/2001 Refunding Delivery Date ................. ............................... 12/15/2001 Springsted Incorporated File = ROSEMOUNT.SF -Series 1992C- SINGLE PURPOSE Advisors to the Public Sector 10/29/2001 9:15 AM Page 13 Preliminary YIELD STATISTICS Accrued Interest from 12/01/2001 to 12/15/ 2001 .................. ............................... 1,054.86 BondYear Dollars ................................................................ ............................... $ 5,040 . 83 AverageLife ........................................................................ ............................... 6.953 Years AverageCoupon .................................................................. ............................... 3.9310134% Net Interest Cost ( NIC) ......................................................... ............................... 4.0892214% True Interest Cost ( TIC) ....................................................... ............................... 4.0985813% Bond Yield for Arbitrage Purposes ........................................ ............................... 3.9130226% All Inclusive Cost ( AIC) ........................................................ ............................... 4.5105329% IRS FORM 8038 NetInterest Cost .................................................................. ............................... 3.9320800% Weighted Average Maturity .................................................. ............................... 6.914 Years Springsted Incorporated File = ROSEMOUNT.SF- Series 2001 E Ref 92C -Series 2001 E Ref 92C Advisors to the Public Sector 10/29/2001 9:15 AM Page 14 City of Rosemount, Minnesota $725,000 G.O. Community Center Refunding Bonds, Series 2001 E Crossover Refunding of Series 1992C DEBT SERVICE SCHEDULE Date Principal Coupon Interest Total P +I 2/01/2002 - - - - 2/01/2003 - - 31,645.83 31,645.83 2/01/2004 60, 000.00 2.800% 27,125.00 87,125.00 2/01/2005 65,000.00 3.050% 25,445.00 90,445.00 2/01/2006 70,000.00 3.300% 23,462.50 93,462.50 2/01/2007 65, 000.00 3.550% 21,152.50 86,152.50 2/01/2008 70,000.00 3.750% 18,845.00 88,845.00 2/01/2009 75,000.00 3.900% 16,220.00 91,220.00 2/01/2010 75,000.00 4.000% 13,295.00 88,295.00 2/01/2011 80,000.00 4.100% 10,295.00 90,295.00 2/01/2012 80,000.00 4.200% 7,015.00 87,015.00 2/01/2013 85,000.00 4.300% 3,655.00 88,655.00 Total 725, 000.00 - 198,155.83. 923,155.83 YIELD STATISTICS Accrued Interest from 12/01/2001 to 12/15/ 2001 .................. ............................... 1,054.86 BondYear Dollars ................................................................ ............................... $ 5,040 . 83 AverageLife ........................................................................ ............................... 6.953 Years AverageCoupon .................................................................. ............................... 3.9310134% Net Interest Cost ( NIC) ......................................................... ............................... 4.0892214% True Interest Cost ( TIC) ....................................................... ............................... 4.0985813% Bond Yield for Arbitrage Purposes ........................................ ............................... 3.9130226% All Inclusive Cost ( AIC) ........................................................ ............................... 4.5105329% IRS FORM 8038 NetInterest Cost .................................................................. ............................... 3.9320800% Weighted Average Maturity .................................................. ............................... 6.914 Years Springsted Incorporated File = ROSEMOUNT.SF- Series 2001 E Ref 92C -Series 2001 E Ref 92C Advisors to the Public Sector 10/29/2001 9:15 AM Page 14 Preliminary PRESENT VALUE ANALYSIS SUMMARY (NET TO NET) Net FV Cashflow Savings ............................................................ ............................... 60,515.00 Gross PV Debt Service Savings .................................................. ............................... 47,862.74 Net PV Cashflow Savings @ 3.913 %(Bond Yield) ...................... ............................... 47,862.74 Contingency or Rounding Amount ............................................... ............................... 2,527.12 NET FUTURE VALUE BENEFIT .................................................. ............................... $63,042.12 NET PRESENT VALUE BENEFIT ............................................... ............................... $50,389.86 NET PV BENEFIT / $220,432.53 PV REFUNDED INTEREST ...... ............................... 22.860% NET PV BENEFIT / $743,286.36 PV REFUNDED DEBT SERVICE ............................ 6.779% NET PV BENEFIT / $685,000 REFUNDED PRINCIPAL ....................... ° .................... . NET PV BENEFIT / '$725,000 REFUNDING PRINCIPAL .......... ............................... 6.950% Springsted Incorporated File = ROSEMOUNT.SF- Series 2001 E Ref 92C- Series 2001 E Ref 92C Advisors to the Public Sector 10/29/2001 9:15 AM Page 15 City of Rosemount, Minnesota $725,000 G.O. Community Center Refunding Bonds, Series 2001 E Crossover Refunding of Series 1992C DEBT SERVICE COMPARISON Date Total P +I PCF Existing D/S Net New D/S Old Net D/S Savings 2/01/2002 - - 69,830.00 69,830.00 69,830.00 - 2/01/2003 31,645.83 (716,645.83) 782,072.50 97,072.50 97,072.50 - 2/01/2004 87,125.00 - - 87,125.00 94, 072.50 6,947.50 2/01/2005 90,445.00 - - 90,445.00 95, 997.50 5,552.50 2/01/2006 93,462.50 - - 93,462.50 97,560.00 4,097.50 2/01/2007 86,152.50 - - 86,152.50 93, 780.00 7,627.50 2/01/2008 88,845.00 - - 88,845.00 94,970.00 6,125.00 2/01/2009 91, 220.00 - - 91, 220.00 95, 810.00 4,590 2/01/2010 88,295.00 - - 88,295.00 96,295.00 8,000.00 2/01/2011 90,295.00 - - 90,295.00 96,420.00 6,125.00 2/0112012 87, 015.00 - - 87, 015.00 91,180.00 4,165.00 2/01/2013 88,655.00 - - 88,655.00 95,940.00 7,285.00 Total 923,155.83 (716,645.83) 851,902.50 1,058,412.50 1,118,927.50 60,515.00 PRESENT VALUE ANALYSIS SUMMARY (NET TO NET) Net FV Cashflow Savings ............................................................ ............................... 60,515.00 Gross PV Debt Service Savings .................................................. ............................... 47,862.74 Net PV Cashflow Savings @ 3.913 %(Bond Yield) ...................... ............................... 47,862.74 Contingency or Rounding Amount ............................................... ............................... 2,527.12 NET FUTURE VALUE BENEFIT .................................................. ............................... $63,042.12 NET PRESENT VALUE BENEFIT ............................................... ............................... $50,389.86 NET PV BENEFIT / $220,432.53 PV REFUNDED INTEREST ...... ............................... 22.860% NET PV BENEFIT / $743,286.36 PV REFUNDED DEBT SERVICE ............................ 6.779% NET PV BENEFIT / $685,000 REFUNDED PRINCIPAL ....................... ° .................... . NET PV BENEFIT / '$725,000 REFUNDING PRINCIPAL .......... ............................... 6.950% Springsted Incorporated File = ROSEMOUNT.SF- Series 2001 E Ref 92C- Series 2001 E Ref 92C Advisors to the Public Sector 10/29/2001 9:15 AM Page 15 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $810,000* CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION STORM WATER REVENUE REFUNDING BONDS, SERIES 2001D (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Tuesday, December 4, 2001, 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. 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 December 1, 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 $125,000 2004 $130,000 2005 $130,000 2006 $140,000 2007 $140,000 2008 $145,000 The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total amount not to exceed $40,000 and will be made in multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any discount taken by the successful bidder will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. 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 Page 16 participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturity dates. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge net revenues of the City's storm water utility. The proceeds will be used to refund the February 1, 2003 through 2008 maturities of the City's General Obligation Storm Water Revenue Bonds, Series 1992B, dated September 1, 1992. TYPE OF PROPOSALS Proposals shall be for not less than $803,520 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 $8,100, 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. Page 17 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 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 November 6, 2001 BY ORDER OF THE CITY COUNCIL /s/ Linda Jentink City Clerk Page 18 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $725,000* CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION COMMUNITY CENTER REFUNDING BONDS, SERIES 2001E (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Tuesday, December 4, 2001, 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. 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 December 1, 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: 2004 $60,000 2007 $65,000 2010 $75,000 2012 $80,000 2005 $65,000 2008 $70,000 2011 $80,000 2013 $85,000 2006 $70,000 2009 $75,000 * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total amount not to exceed $50,000 and will be made in multiples of $5,000 in any of the maturities. In the event the principal amount of the Bonds is increased or reduced, any premium offered or any discount taken by the successful bidder will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term bonds, 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 19 BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ( "DTC "), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturity dates. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. The proceeds will be used to refund in advance of maturity the February 1, 2004 through 2013 maturities of the City's General Obligation Community Center Bonds, Series 1992C, dated November 1, 1992. TYPE OF PROPOSALS Proposals shall be for not less than $717,025 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 $7,250, 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 single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. Page 20 rIG'A 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. 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 50 copies of the Page 21 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 November 6, 2001 BY ORDER OF THE CITY COUNCIL /s/ Linda Jentink City Clerk Page 22