HomeMy WebLinkAbout6.n. Authorize City to Pledge the Full Faith Credit for the 2000B G.O. Bonds for the Port AuthorityCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: July 18, 2000
AGENDA ITEM: Ordinance Pledging City's Full Faith and
Credit to Port Authority General Obligation Bonds, 2000B
AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director
AGENDA 6
ATTACHMENTS: Ordinance
APPROVED BY:
Attached for your consideration is an ordinance for the City Council to pass that pledges the City's full
faith and credit to the Port Authority's General Obligation Bonds, 2000B. These bonds are for the
second phase of improvements in the Business Park. Because the debt is issued through the Port
Authority, it is necessary for the City to pass this ordinance pledging its support. The City has
passed an ordinance similar to this for all previous debt issued by the Port Authority.
RECOMMENDED ACTION:
Motion to adopt AN ORDINANCE AUTHORIZING THE CITY OF ROSEMOUNT TO PLEDGE THE
FULL FAITH AND CREDIT OF THE CITY TO GENERAL OBLIGATION BONDS, SERIES 2000B
OF THE ROSEMOUNT PORT AUTHORITY.
COUNCIL ACTION:
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
ORDINANCE NO.
AN ORDINANCE AUTHORIZING THE CITY OF ROSEMOUNT
TO PLEDGE THE FULL FAITH AND CREDIT OF THE CITY TO
GENERAL OBLIGATION BONDS, SERIES 2000B
OF THE ROSEMOUNT PORT AUTHORITY
THE CITY COUNCIL OF THE CITY OF ROSEMOUNT ORDAIN:
SECTION I. Pursuant to and in accordance with the provisions of this ordinance and
Minnesota Statutes, §469.048 to 469.068 and §469.0813 the issuance of general
obligation bonds by the Rosemount Port Authority (the "Authority ") in the aggregate
principal amount of $1,750,000 is hereby authorized and found to be proper; and said
bonds shall be issued and sold for the purpose of securing funds as needed, in said
aggregate amount, to finance infrastructure improvements in a business park. The
pledge of the full faith, credit and resources of the City as security for the bonds is
hereby authorized. Additional terms and conditions of the bonds, including interest
rate, date, denomination, place of payment, form and maturity scheduled and provision
for the sale thereof shall be determined by the Board of Commissioners of the Authority
pursuant to resolution.
SECTION II. This ordinance shall take effect and be in force following its passage and
publication.
ADOPTED this 18th day of July, 2000
Cathy Busho, Mayor
ATTEST:
Linda J. Jentink, City Clerk
Published this day of July, 2000 in the "Rosemount Town Pages ".
t
Recommendations
For
City of Rosemount, Minnesota
$1,160,000
General Obligation Water Revenue Bonds, Series 2000A
Rosemount Port Authority, Minnesota
$1,750,000
General Obligation Bonds, Series 20008
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
Study No.: R0704.114T4
SPRINGSTED Incorporated
July 7, 2000
Port Authority Chair John Edwards
Members, Port Authority
Mr. Thomas Burt, Executive Director
Rosemount Port Authority
2875 — 145 Street West
Rosemount, Minnesota 55068
SPRINGSTED
Public Finance Advisors
F Vre. A�
RECOMMENDATIONS
Re: Recommendations for the Issuance of:
$1,160,000 General Obligation Water Revenue Bonds, Series 2000A (the "Water
Revenue Bonds ")
$1,750,000 General Obligation Bonds, Series 2000B (the "Port Authority Bonds ")
The Water Revenue Bonds are being issued to finance
water system improvements,
specifically for a new east side water tower.
The Port Authority Bonds are being issued to finance street and utility improvements within the
Rosemount Business Park.
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 15, 2000 at 11:00 A.M.,
with award by the City Council at 7:30 P.M.
that same day, and award by the Port
Authority at 6:00 P.M. that same day.
3. Authority for the Bond Issues
The 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, Chapters
475 and 469.
4. Principal Amount of Offerings
Water Revenue Bonds - $1,160,000
Port Authority Bonds - $1,750,000
5. Repayment Terms
The Water Revenue Bonds will mature
annually February 1, 2002 through 2016.
Interest will be payable semi- annually each
February 1 and August 1, commencing
August 1, 2001.
The Port Authority Bonds will mature
annually February 1, 2002 through 2011.
Interest will be payable semi - annually each
February 1 and August 1 commencing
August 1, 2001.
6. Sources of Payment and Payment Cycles
The Water Revenue Bonds are expected to
be paid from net revenues of the City's
Water Utility, including water connection
fees. It is not expected that the City will levy
taxes for repayment of this issue.
City of Rosemount, Minnesota
Rosemount Port Authority, Minnesota
July 7, 2000
7. Prepayment Provisions
M
8. Credit Rating Comments
Federal Treasury Regulations Concerning
Tax - Exempt Obligations
(a) Bank Qualification
(b) Rebate Requirements
(c) Bona Fide Debt Service Fund
The Port Authority Bonds are expected to be
paid from ad valorem tax levies and tax
increment revenues. The tax levies will be
made by the City for the Port Authority, and
will be spread on all taxable property in the
City.
Both issues are callable as early as
February 1, 2009, and 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."
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.
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.
Since the City and Port Authority expect to
issue less than $5,000,000 of tax - exempt
obligations in 2000, these issues will be
exempt from rebate.
The City must maintain a bona fide debt
service fund for both 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
Page 2
City of Rosemount, Minnesota
` Rosemount Port Authority, Minnesota
July 7, 2000
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 the Bonds cannot
exceed 120 % of the economic life of the
projects to be financed. The economic life
of water towers is approximately 50 years.
The average life of the Water Revenue
Bonds is 9.529 years. The economic life of
the infrastructure improvements is 50 years.
The average life of the Port Authority Bonds
is 6.408 years. Both issues are therefore
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. 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,
11. Attachments
• Sources and Uses Schedule, Water
Revenue Bonds
• Debt Service Schedule, Water Revenue
Bonds
• Sources and Uses Schedule, Port
Authority Bonds
• Debt Service Schedule, Port Authority
Bonds
• Terms of Proposal
Page 3
City of Rosemount, Minnesota
Rosemount Port Authority, Minnesota
July 7, 2000
DISCUSSION
$1,160,000 G.O. Water Revenue Bonds, Series 2000A
(the "Water Revenue Bonds ")
The Water Revenue Bonds are being used to finance the construction of a new east side water
tower. The sources and uses schedule on page 5 shows the sizing of the bond issue. Page 6
provides the recommended debt service schedule for the issue. The Water Revenue Bonds
have been structured over a 15 -year period with even annual payments. Although the Water
Revenue Bonds are general obligations of the City, they will be paid from net revenues of the
City's Water Utility, including water connection fees. Net water revenues are also being used to
pay the City's outstanding Series 1993C and 1996C Bonds, which financed water system
improvements as well
$1,750,000 G.O. Bonds, Series 20008 (issued by the Rosemount Port Authority)
(the "Port Authority Bonds ")
Proceeds of the Port Authority Bonds will be used to finance street and utility improvements for
the Rosemount Business Park. The sizing of the issue is provided on the Sources and Uses
table on page 7 and the proposed debt schedule is provided on page 8. The Port Authority
Bonds have been structured over ten years in even annual payments. With the inclusion of the
statutorily required 5% overlevy, the average annual payment is estimated to be approximately
$243,931. We understand the City expects to use a combination of tax increment revenues
and Port Authority levies (spread by the City) to make debt service payments. Beginning with
the levy made in fall 2000, tax increment and levy collections 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.
Proceeds for both issues are expected to be available by early September.
Respectfully submitted,
,�
c� cs� t�!
SPRINGSTED Incorporated
amn
Provided to Staff:
a) Amendment to Continuing Disclosure Contracts
Page 4
City of Rosemount, Minnesota
$1,160,000
G.O. Water Revenue Bonds, Series 2000A
SOURCES & USES
Dated 09/01/2000 Delivered 09/01/2000
SOURCES OF FUNDS
Par Amount of Bonds ....................................................... $1,160,000.00
TOTAL SOURCES ............................ ............................... $1,160,000.00
USES OF FUNDS
Deposit to Project Construction Fund . ............................... 1,128,800.00
Costs of Issuance .............................. ............................... 16,700.00
Total Underwriter's Discount (1. 250 %) ............................. 14,500.00
TOTAL USES .. ............................... $1,160,000.00
Springsted Incorporated
Pubic Finance Advisors
Fie = ROSEMOUNT.SF -G.O. Water Rev.2000
7/ 6/200011:17 AM
Page 5
SIGNIFICANT DATES
DatedDate .......................................................................... ............................... 9/01/2000
DeliveryDate ...................................................................... ............................... 9/01/2000
FirstCoupon Date ............................................................... ............................... 8/01/2001
YIELD STATISTICS
BondYear Dollars ............................................................... ............................... $11,053.33
AverageLife ........................................................................ ............................... 9.529 Years
AverageCoupon ................................................................. ............................... 5.3384688%
Net Interest Cost ( NIC) ........................................................ ............................... 5.4696509%
True Interest Cost ( TIC) ....................................................... ............................... 5.4893070%
Bond Yield for Arbitrage Purposes ....................................... ............................... 5.3131422%
AllInclusive Cost ( AIC) ....................................................... ............................... 5.6961491%
Springsted Incorporated Fie = ROSEMOUNT.SF -G. O. Water Rev.2000
Public Finance Advisors 7/ 6/200011:17 AM
Page 6
City of Rosemount, Minnesota
$1,160,000
G.O. Water Revenue Bonds, Series 2000A
DEBT SERVICE SCHEDULE
Date
Principal
Coupon
Interest
Total P +1
2/01/2001
-
-
-
-
2/01 /2002
30,000-00
4.800%
85, 998.75
115, 998.75
2/01/2003
55,000.00
4.850%
59,265.00
114,265.00
2/01/2004
60,000.00
4.900%
56,597.50
116,597.50
2/01/2005
65,000.00
4.950%
53,657.50
118,657.50
2/01/2006
65,000.00
5.000%
50,440.00
115,440.00
2/01/2007
70,000.00
5.050%
47,190.00
117,190.00
2/01/2008
75,000.00
5.100%
43,655.00
118,655.00
2/01/2009
75, 000.00
5.150%
39, 830.00
114, 830.00
2101/2010
80,000-00
5.200%
35, 967.50
115, 967.50
2/01/2011
85,000-00
5.250°x6
31, 807.50
116, 807.50
2/01/2012
90,000.00
5.300%
27,345.00
117,345.00
2/01/2013
95,000-00
5.350%
22, 575.00
117, 575.00
2/01/2014
100, 000.00
5.450%
17, 492.50
117, 492.50
2/01/2015
105,000.00
5.550%
12,042.50
117,042.50
2/01/2016
110,000.00
5.650%
6,215.00
116,215.00
Total
1,160,000.00
-
590,078.75
1,750,078.75
SIGNIFICANT DATES
DatedDate .......................................................................... ............................... 9/01/2000
DeliveryDate ...................................................................... ............................... 9/01/2000
FirstCoupon Date ............................................................... ............................... 8/01/2001
YIELD STATISTICS
BondYear Dollars ............................................................... ............................... $11,053.33
AverageLife ........................................................................ ............................... 9.529 Years
AverageCoupon ................................................................. ............................... 5.3384688%
Net Interest Cost ( NIC) ........................................................ ............................... 5.4696509%
True Interest Cost ( TIC) ....................................................... ............................... 5.4893070%
Bond Yield for Arbitrage Purposes ....................................... ............................... 5.3131422%
AllInclusive Cost ( AIC) ....................................................... ............................... 5.6961491%
Springsted Incorporated Fie = ROSEMOUNT.SF -G. O. Water Rev.2000
Public Finance Advisors 7/ 6/200011:17 AM
Page 6
Rosemount Port Authority, Minnesota
$1,750,000
G.O. Bonds, Series 2000B
SOURCES & USES
Dated 09/01/2000 Delivered 09/01/2000
SOURCES OF FUNDS
Par Amount of Bonds ........................ ............................... $1,750,000.00
TOTAL SOURCES ............................ ............................... $1,750,000.00
USES OF FUNDS
Deposit to Project Construction Fund . ............................... 1,712,800.00
Costs of Issuance .............................. ............................... 19,700.00
Total Underwriter's Discount (1. 000 %) ............................. 17,500.00
TOTAL USES .................................... ............................... $1,750,000.00
Springsted Incorporated Fie = ROSEMOUNT.SF•PortAuth GO
Pubfic Finance Advisors 7 /6/200!) 11:14 AM
Page 7
SIGNIFICANT DATES
Rosemount Port Authority, Minnesota
Dated.................................................................................. ...............................
9/01/2000
DeliveryDate ....................................................................... ...............................
$1,750,000
FirstCoupon Date ............................................................... ...............................
8/01/2001
YIELD STATISTICS
G.O. Bonds, Series 20008
$11,214.17
AverageLife ................................................................... ...............................
6.408 Years
DEBT SERVICE SCHEDULE
5.1109887%
Net Interest Cost ( NIC) ........................................................ ...............................
Date
Principal
Coupon Interest
Total P +I
105% Levy
2/01/2001
5.5035401°x6
- -
-
-
2/01/2002
110, 000.00
4.800% 125,187.29
235,187.29
246, 946.66
2/01/2003
150,000.00
4.850°x6 83,087.50
233,087.50
244,741.88
2/01/2004
155,000-00
4.900% 75, 812.50
230, 812.50
242, 353.13
2/01/2005
165,000.00
4.950% 68,217.50
233,217.50
244,878.38
2/01/2006
170,000-00
5.000% 60, 050.00
230, 050.00
241, 552.50
2/01/2007
180,000-00
5.050°x6 51, 550.00
231, 550.00
243,127.50
2/01/2008
190,000.00
5.100% 42,460.00
232,460.00
244,083.00
2/01/2009
200,000.00
5.150% 32,770.00
232,770.00
244,408.50
2/01/2010
210,000.00
5.200% 22,470.00
232,470.00
244,093.50
2/01/2011
220,000-00
5.250% 11, 550.00
231, 550.00
243,127.50
Total
1,750,000.00
- 573,154.79
2,323,154.79
2,439,312.53
SIGNIFICANT DATES
Dated.................................................................................. ...............................
9/01/2000
DeliveryDate ....................................................................... ...............................
9/01/2000
FirstCoupon Date ............................................................... ...............................
8/01/2001
YIELD STATISTICS
BondYear Dollars ............................................................... ...............................
$11,214.17
AverageLife ................................................................... ...............................
6.408 Years
AverageCoupon .................................................................. ...............................
5.1109887%
Net Interest Cost ( NIC) ........................................................ ...............................
5.2670413%
True Interest Cost (TIC) ....................................................... ...............................
5.2857684%
Bond Yield for Arbitrage Purposes ....................................... ...............................
5.0951657%
All Inclusive Cost ( AIC) ........................................................ ...............................
5.5035401°x6
Springsted Incorporated File = ROSEMOUNT.SF -Port Auth GO
Pub#c Finance Advisors
7/ 62000 11:14 AM
Page 8
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,160,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 2000A
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, August 15, 2000, 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 -3002 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 -3002 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 September 1, 2000, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2001.
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:
2002 $30,000 2006 $65,000 2010 $80,000 2014
$100,000
2003 $55,000 2007 $70,000 2011 $85,000 2015
$105,000
2004 $60,000 2008 $75,000 2012 $90,000 2016
$110,000
2005 $65,000 2009 $75,000 2013 $95,000
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 9
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2009, and on any day thereafter, to prepay Bonds due on or
after February 1, 2010. 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 of its water system. The proceeds will be used to finance water system
improvements.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,145,500 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 $11,600,
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.
Page 10
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
Page 11
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 18, 2000 BY ORDER OF THE CITY COUNCIL
/s/ Linda Jentink
City Clerk
717/00 11:31 AM
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THE AUTHORITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING
BASIS:
TERMS OF PROPOSAL
$1,750,000
ROSEMOUNT PORT AUTHORITY
GENERAL OBLIGATION BONDS, SERIES 2000B
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, August 15, 2000, 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 -3002 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 -3002 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 September 1, 2000, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2001. 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:
2002
$110,000
2006 $170,000 2010 $210,000
2003
$150,000
2007 $180,000 2011 $220,000
2004
$155,000
2008 $190,000
2005
$165,000
2009 $200,000
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
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owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The Authority will name the registrar which shall be subject to applicable SEC regulations. The
Authority will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Authority may elect on February 1, 2009, and on any day thereafter, to prepay Bonds due
on or after February 1, 2010. 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 infrastructure improvements in a business park.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,732,500 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ( "Deposit ") in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $17,500,
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
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 118 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.
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.
Page 14
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.
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
Page 15
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 70 copies of
the Official Statement and the addendum or addenda described above. The Authority
designates the senior managing underwriter of the syndicate to which the Bonds are awarded
as its agent for purposes of distributing copies of the Final Official Statement to each
Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds
agrees thereby that if its proposal is accepted by the Authority (i) it shall accept such
designation and (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 18, 2000 BY ORDER OF THE BOARD OF COMMISSIONERS
/s/ Linda Jentink
Executive Secretary
7/7/00 11:35 AM
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