HomeMy WebLinkAbout2.a.1999B G.O.Storm Water Revenue Bond Issue CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: August 25, 1999
AGENDA ITEM: 1999B G.O. Improvement Bond Issue - AGENDA SECTION:
Authorizing Issuance and Setting Bond Sale
PREPARED BY: Jeff May, Finance Director AGEND � � �
��
ATTACHMENTS: Resolution and Recommendations APPROVED BY:
�
This item is on the agenda for your consideration in authorizing the issuance and setting the sale of
General Obligation Improvements Bonds for four projects: Project#299 - Bloomfield 2nd Addition;
Project#300 - Rosemount Commons; Project#309 - Biscayne Pointe 2nd Addition; and Project#310
- Oakridge Estates.
Bids will be opened Tuesday, September 21, 1999, 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
$4,395,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1999B.
COUNCIL ACTION:
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 1999-
RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED
SALE OF $4,395, 000 GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 1999B
WHEREAS, the City Council of the City of Rosemount, Minnesota,
has heretofore determined that it is necessary and expedient to
issue its $4 , 395, 000 General Obligation Improvement Bonds, Series
1999B (the "Bonds" ) to finance street and utility improvements in
various parts of the City; and
WHEREAS, the City has retained Springsted Incorporated, in Saint
Paul, Minnesota ("Springsted" ) , as its independent financial
advisor and is therefore authorized to sell these obligations by
a competitive negotiated sale in accordance with Minnesota
Statutes, Section 475 . 60, Subdivision 2 (9) ; and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Rosemount, Minnesota, as follows :
1 . Authorization• Findinas . The City Council hereby authorizes
Springsted to solicit bids for the competitive negotiated sale of
the Bonds .
2 . Meetina• Bid Openina. 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.
1077657.1
RESOLUTION 1999-
ADOPTED this 25th day of August, 1999 .
Cathy Busho, Mayor
ATTEST:
Susan M. Walsh, City Clerk
Motion by: Second by:
Voted in favor:
Voted Against •
io��6s�.i 2
RESOLUTION 1999-
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
$4, 395, 000 General Obligation Improvement Bonds, Series 1999B .
WITNESS my hand this day of , 1999 .
Clerk
io��6s�.i 3 .
EXHIBIT A
THE CtT1( HAS /'�.UTHORiZEq SPRIN�IL�E REG�IVEp NE HE OLL.OWINIG BAS S�
ISSUE ON fTS BEf�IALF- PROPOSALS
TERMS OF PRQPOSAL
$4,395,000
CITY O� ROS�MOUNT, MINNESOTA
GENf:FZAI-OBLIGATION iMPROVEMENT BONDS, SER�E� �99gg
(B�OK ENTRY ONLY)
Proposals for the ![t�mds will be rece�ved on Tuesday, September21, i999, Until 12:00 Noon,
Central Time, at thr::offices of Springsted IncorpOrated, 85 East Seventh Place, Suite i00, Saint
P�ul, Minnesota, �r�er he Git I Counc I 3'y7 30 P.M eCentral Timet of the satYle day n for award
of the Bonds will ��:� by t y
SUBMISSI�N OF PROPOSALS
Proposals may b�;� submitt�d in a seated envelope or by fax (651)223-3002 to Spring�t�d.
Signed Proposals, without final psice or coupons, may be submitted In�sted he nalr�Propo al
tit�'tie of sale. ThE� Uidder shall be responsible for submitting to Sp ' g
priCe and coupon�:;, by telephone (651) 223-3000 or fax (65i)223-3�02 for inclusion in the
submitted Propos:�l. Spritlg5ted will assume no liability for the inability of the bidder to r�aCh
5pringsted prior tu 1he time of sale spec:ified above. All bidders are advised that each Proposal
shal{ be deemed �io constitute a contract between the bidder and th� City ta purchase the
Obligations reg�rclless of th8 rnanner of the Proposal submitt�d. .
DETAILS OF THE BONDS
The Bonds will bE;� dated October 1,1999, as the date of original issue, and will bear i�terest
payable on Febru�'�ry 1 and August 1 of each year, commencing P,ugust 1, 2000. Interest wiH
be computed on tl�•e� basis of a 360-day year of twelve 30-t�ay rt�onths.
The Bonds will m:i�ture February 1 in the years and amaunts as follows:
2002 $575,C�1)� 2006 �665,000 2010 a265,000
2003 S600,C���� 2007 5225,000 2011 $275,00�
2004 �625,G0� 2008 5240,00�
2005 $655,Ci�}p 2009 $250,0�0
BOOK ENTRY SYSTEM
The 80nds will t•�e issued by means of a book entry system with no phy$IC�1 distribUt�on of
Bonds made to tl�i�: public. The Bonds will be issued in fu{ly registered form and one Bond,
representing the e►gg�egate principal amour�t of the Ronds maturing in each year, will be
registared in the rrame af Cede 8. Co. as nominee of The Depositdty Trust Company �rD ases
New Yark, New'r'�rk, which will act as securities depository of the Bonds. It�dividual p►�
of the Bonds ma�� be made in the pr'tncipa� amount of$5,000 or any multiple thereof of a single
maturity throu�h t�ook entries made on the books and records of DTC and its participants.
Principa� and intei-�st are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Tra'��f�r of principal and interest payments to participants of OTC wi�l be the
responsibi�ity of :�TC; transfer of principal and interest payments to bene�cia! owners by
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participants will be lhe responsibii on of del ve a�ofl he Bonds, wi I be r qui ed to dEposit the
owners. The purch;:i,�er, as � cond t rY
gofiqs wrth DTC. R���STRAR
The City will name I:h.e registrar whlch shali be subject to applicable SEC regu{�tions_ The City
will pay for the servl�es of the registrar.
pPTIONAL REDEMPTION
The City may �1ect �n February 1, 2006, and on any day th2reatter, to prepay Bonds due on ot
after February 1, 2l;D7. Redemption may be in whole or in part and 'tf in pa� at the option of the
City and in such rri�nner as the City shall determine. If less than all Bonds of � maturity are
called for redempti;�n, the Gity will notify DTC of th� particular amount of such maturity to be
prepaid. DTG will �;I�;termine by lot the amount of each partici�ant's interest in such maturity to
be redeemed and �:aC� participant will then select by lot the beneficiaS owr�erShip interests in
such maturity to be� «deemed_ A11 prepaymentS Shall be at a price of par pfus accrued interest.
SECURITY AND PURPOSE
The Bonds will be �eneral ob{igations of the City for which the City will pledge its full faith and
credit and power tca �evy direct general ad vatorem taxes, ln addition the City will pledge special
assessments agai��r>t benef�t�d properties. The proceeds will be used td finanC� street and
utility improvemen�l�� in various paris of the City. �
TYFE OF PROPOSALS .
Proposals shaVl br:� for not less than �4,346,655 and accrued interest on the total principal
amou�t of tre Bor�cs. Proposals shall be accompanied by 2 Good Faith Deposit ("Dep�3 950
the form of a certil�i4;d or cashier's check or a Financial Surety Bond in the amount of � � t
payable to the on_If,r of the City. If a �heck is used, it must accompany the proposal. lf a
�inancial Surety E��nd is used, it must be from ar� insur�n4e company licensed to issue such a
bond in the State i:��Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorp��rated prior t4 the opening of the proposals. 7he Financia{ Surety Bond must
identify each und�r.rwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bo�ds a�� awardr�d to an underwrfter using a Financial Surety Bond, then that purchaser is
r�quired to submil; itS Deposit to Springsted Incorporated in the focm of a certified or Cashier's
checic or wire tram:�fer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Ttm�, on the nexl: business day foUowing the awatd. If suCh Deposit is not�rs�e1eadi ementt
time, the Fir��ncis�l Surety Bond may be drawn by the City to satisfy the Dep
The City will� deF���sit the checK of the purchaser, the amount of which wi11 be deduCted at
settlement and n,:{ interest wi(t accrue to the purchaser. In the event the purchaser fails to
comply with the a�;�epted proposal, said amount will be retain�d by the City. No proposal can
be withdrawn ot �:�mend0d after the time set for receiving proposals un12Ss the rtl2eting of the
City scheduled fa- award of the Bonds is 2djourned, recessed, or continued to another date
without award of I:re Bonds having been made. Rates sha{l be In integral multiples of 511QO o�
1/8 of 1%. Rates rnust be in tevel or ascending order. Bonds of the same maturity shall bear a
singfe rate ftflm t-��; date of the BondS to the date of matucity. No conditional proposals will be
accepted.
AWARD
The Obligativns����II be awarded on the baisis of the lowest �nterest rate to be determined on a
ture interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with �:;ustom�ry practice, wi�� be controlling.
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The City will rese���� the right to: (i)waive non-substantive informalities of any proposal 4r of
mattErs relating to t!'►e re�ipt af proposais and award of the Bonds, (ii) reject all proposals
without cause, and, ;iii) reject arly prop4sal which the City'determines to have fai�ed to comply
with the terms here�r�.
BOND 1NSURANCE AT PURCHASER'S OPTlON
�f th� Bot�ds qualil`y for issuance of any policy bf murllCipal bond insurance or commitment
therefor at the op'�on of the underwriter, the purchase of any suCh insurance policy or the
issu�nce of any su�;h commitment shal{ be at the sole option and expense of the purchaser of
tre Bonds. Any ir�rreased costs of issuan�� of the Bonds resulting from such purchase of
insurance sha{I b� ?aid by the purchaser, except that, if the City has requested and received a
rating on the Bonc:l5 fram a rating agency, the City will pay that rating fee. Any other rating
agency fees shall I:�e the responsibility o'F the purehaser_
Failure of the muniCipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall no�l constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds_
CUSIP NUMBERS
If the Bonds qualif'�r for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such nurnbers on any Bond �or any error with respect
thereto will constil:�.te cause for failure or refusal by the purchaser to accept delivety of the
Bonds. The CUSII' Service Bureau charge for ti�e assignment of CUSIP identiflcation numbers
shall be paid by th��� purchaser.
$�TTLEMENT
Within 40 days fo'�lowing the date of their award, the Bonds will be delivered withaut cost to ihe
purchaser throug�'�� DTC in New York, New Yark. Delivery will be subject to receipt by the
purchaser of an �:q�proving legal opinion of Briggs and Morgan, Professional Association, of
Saint Paul and P,�linneapolis, Minnesota, and of customary closing papers, including a no-
litigation certificat�;:. On the date of settlement, payment for the Bonds shall be made in f2deral,
or equivalent, furn:i:s which shal{ be rec�ived at the o�ces of the City or its designee not {ater
than 12:00 Noon, ��:entral Time. Except as compli2nce wrth the terms of payment for the Bonds
ghall h�V� been ����ade impossible by action of the City, or its agents, the purChaser shall be
liable fo the City 1'��r any loss &uffered by the City by reason of the purchaser's notl-complianCe
with said terms for.�payment_
CONTINUING [71SCLOSURE
On the date of ar.�tual issuance and delivery of the BOttds, the ��t}I will execute and deliver a
Cahtinuing Piscic:�sure Undertaking (the "Undertaking") whereunder the Clty wil{ covenant for
the benefit of the owners af the Bonds to provide certain financia! and other information about
the City and not.ic:es of certain occurrences to information repositories as specified in and
reqU�red by SEC I�Zule 15c2-12(b)(5).
OFFI�IAL STATEMENT
Th� City h8S �authorized the preparation of an Official St�tement containing pettinent
information relati��re;to the Bonds, and saici Official 5tatement wi11 serve as a neariy-final Offcial
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of t-� Official �tatement or for any additional information prior to sale, any
prospective purchi��5er is reierred to the Financial Advisor to the City, Sptingsted Incorporated,
85 East Seventh ='IaCe, Suite 140, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
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The OffiCial Statem�:=.zt, when further supplemented by an 8dd�ndum or addenda specifjring the
maturity dates, pri���cipal amounts and interest rates of the Bonds, together with any other
information require�:l by law, sh�il constitute a "Final Official Statement" of the City with respect
to the Bonds, as t'�at term is defined in Rule 1�C2-12• By awarding the Bonds to a�1y
undervvriter d� und�,��writing syndicate submitting a proposal therefor, the City agrees that, no
more than seven bu:�ittess days after the date of such award, it shall provide vVlthout cost to the
senior managing �.�nderwriter of the syndicate to which the Bonds are awarded 175 copies of
the OfflCial Statem��:nt and the addendum or addenda de$Cribed above. The City designates
the senior marl8gi���c� urlde�riter of the syndicate to which the Bonds are aWarded as its agent
for purposes of �;:istributing copies of the Final Official Statement to each Participat'sng
Underwriter. Any underwriter delivering a proposal with res�e� to the Bonds agrees thereby
that i� its prOposal is accepted by the City (i) it shall accept such de$ignation and (ii) it shatl
enter into a contra�;:iu�l relatio�ship with all Participating Underwriters of the Bonds for putpQses
of assuring the rea:�'pt by each such Particip�ting Utlderwriter of the Final Official Statement.
Dated August 25, '1;199 BY ORDER �F TH� CITY CQUNCIL
/s/SUSan M. Walsh
City Clerk
OOh 7/49 10:G8 AM
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Recommendations
For
City of Rosemount, Minnesota
$4,395,000
General Obligation Improvement Bonds, Series 1999B
$855,000
General Obligation Storm Water Revenue Bonds, Series 1999C
Presented to:
Mayor Cathy Busho
Members, City Council
Mr. Thomas Burt, City Administrator
Mr. Jeffrey May, Finance Director
City of Rosemount
2875 145`h Street West
Rosemount, MN 55068
SPRINGSTED
Puhlir Firtr�rtc��ldvisors
Study No.: R070404P4
SPRINGSTED Incorporated
August 19, 1999
RECOMMENDATIONS
Re: Recommendations for the Issuance of:
$4,395,000 General Obligation Improvement Bonds, Series 1999B (the "Series 19996
Bonds")
$855,000 General Obligation Storm Water Revenue Bonds, Series 1999C (the
"Series 1999C Bonds")
The Series 1999B Bonds are being issued to finance street and utility improvements within the
City. In addition to proceeds of the Bonds, the City will contribute funds from its Sanitary Sewer
Core Fund, Storm Water Core Fund and Water Main Core Fund.
The Series 1999C Bonds are being issued to finance improvements to the City's storm water
system. The City is contributing $300,000 in addition to the proceeds on the Bonds. The
$300,000 is excess bond proceeds of the Series 19926 Bonds.
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, September 21, 1999 at
12:00 Noon, with consideration for award at
7:30 P.M. that same day.
3. Authority for the Bond Issues The Series 1999B Bonds are being issued
pursuant to Minnesota Statutes, Chapters
475 and 429.
The Series 1999C Bonds are being issued
pursuant to Minnesota Statutes, Chapters
475 and 444.
4. Principa/Amount of Offerings Series 1999B Bonds - $4,395,000
Series 1999C Bonds - $855,000
5. Repayment Terms The Series 1999B Bonds wili mature
annually each February 1, 2002 through
2011. Interest will be payable semi-annually
each February 1 and August 1, commencing
August 1, 2000.
The Series 1999C Bonds will mature
annually each February 1, 2001 through
2015. Interest will be payable semi-annually
each February 1 and August 1 commencing
August 1, 2000.
City of Rosemount, Minnesota
August 19, 1999
6. Source of Payment and Payment Cycle Series 1999B — Special assessments wili be
filed in 2000 for $4,080,000 of project costs.
Since the assessments will not be filed until
2000 for first collection in 2001, capitalized
interest totaling $272,893 has been included
in the principal amount of the Bonds and will
be used to make the interest payments due
August 1, 2000 through February 1, 2001.
Thereafter, the Bonds are expected to be
repaid solely from special assessments
against benefited property.
Series 1999C — The City is expected to
repay the 1999C Bonds with revenue
derived through its storm water utility and
storm water connection fees. It is not
expected that the City will levy taxes for
repayment of this issue.
7. Prepayment Provisions The City may elect on February 1, 2006, and
on any date thereafter, to prepay both series
of Bonds due on or after February 1, 2007,
at a price of par plus accrued interest.
8. Credit Rating Comments We recommend the City apply to Moody's
Investors Service for a rating on the Series
1999B and 1999C Bonds. Moody's Investors
'Service currently rates the City's general
obligation issues "A2."
9. Federal Treasury Regu/ations Concerning
Tax-Exempt Obligations
(a) Bank Qualification Under Federai Tax Law, financial institutions
cannot deduct from income for federal
income tax purposes, income 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
Page 2
City of Rosemount, Minnesota
August 19, 1999
rebate in both of these categories.
Bond proceeds, defined generally as both
the original principal of the issue and the
investment earnings on the principal, have
6, 18 and 24 month spend down exemption
periods. If all of the proceeds are expended
during one of those exemption periods, the
issue is exempt from rebate and the issuer
may retain the excess earnings. The City
should be aware that this test is an "actual"
test, not one of "reasonable expectations:
and you will need to determine if the spend
down was met or if rebate may be required.
The Series 1999B and Series 1999C Bonds
are both expected to meet one of the spend
down exemptions in which case no rebate of
interest earnings will be required.
Springsted Incorporated assists the City with
its rebate analysis under a separate
contract. In case a spend down test is not
met, an amendment to that contract adding
these issues has been provided to City staff.
(c) Bona Fide Debt Service Fund The City must maintain a bona fide debt
service fund for both series of Bonds or be
subject to yield restriction. This requires
restricting the investments hetd 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. Please be aware that
substantial prepayment of special
assessments may cause the Series 1999B
Bond's Debt Service Fund to exceed the
allowable amount. If this happens, please
call Springsted for assistance. The
Series 1999C debt service payments are
made by the storm water utility fund and the
storm water core fund. Therefore, the
Series 1999C debt service fund should
remain bona fide.
(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 the improvements exceeds 20 years. The
average life of the Series 19996 Bonds is
5.852 years; therefore the issue is within the
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City of Rosemount, Minnesota
August 19, 1999
economic life requirements. The economic
life of the storm water improvements is 50
years. The average life of the Series 1999C
Bonds is 9.298 years, therefore the issue is
also within the economic life requirements.
(e) Federa/Reimbursement Federal reimbursement regulations require
Regu/ations the City to make a declaration, within
60 days of the actual payment, of its intent
to reimburse itself from expenses paid prior
to the receipt of Bond proceeds. It is our
understanding the City has taken whatever
actions are necessary to comply with the
federal reimbursement regulations in
regards to the Series 1999B and 1999C
Bonds. Non-bond funds can be used to
repay expenditures made prior to receipt of
Bond proceeds.
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 . Composition of the Issue, Series 1999B
Bonds
. Sources and Uses Schedule, Series
1999B Bonds
. Assessment Income Schedule(s), Series
19996 Bonds
• Net Debt Service Schedule, Series
1999B Bonds
• Sources and Uses Schedule, Series
1999C Bonds
. Debt Service Schedule, Series 1999C
Bonds
. Terms of Proposal
Page 4
City of Rosemount, Minnesota
August 19, 1999
DISCUSSION
$4,395,000 General Obligation Improvement Bonds, Series 1999B
("Series 19996 Bonds")
The composition of the Series 1999B Bonds is listed on Page 6 with sources and uses listed on
Page 7. The Series 1999B Bonds will be dated October 1, 1999 and will be used to finance
four street and utility improvements in various areas of the City. Debt service on the
Series 1999B Bonds is expected to be paid primarily with special assessments. Special
assessments totaling $2,000,000 of principal for the Bloomfield 2�d project, $901,000 of
principal for the Rosemount Commons project, $900,000 of principal for the Biscayne Point 2nd
project and $279,000 of principal for the Oakridge Estates project are expected to be filed on
October 15, 2000. The Bloomfield 2�d project assessments will be filed over a term of ten years
with all other projects' assessments being filed over a period of five years. Assessments will be
paid with even annual payments. Interest will be charged on the unpaid principal balance of the
assessments at a rate of 2% over the rate on the Bonds, or 6.90% at current estimates. All
assessment schedules are shown on Pages 8-12. Since the assessments will not be filed until
2000 for first collection in 2001, capitalized interest has been included in the principal amount of
the Series 19996 Bonds and will be used to make the interest payments due August 1, 2000
through February 1, 2001. Thereafter, it is expected that the Bonds will be repaid solely from
special assessments.
The debt service schedule for this issue is shown on Page 13. Page 14 is the net debt service
schedule with the assessment income taken into account. Columns 1 through 5, show the
years and amounts of principal and estimated interest due on the Bonds. Cofumn 6 shows the
capitalized interest included in the issue to make interest payments on due through February 1,
2001. Column 7 shows the net debt service requirement and Column 8 shows the 5% overlevy
required by State statute. The overlevy is required by State statute as a protection to the City
and the bondholder in the event of delinquencies in the collection of utility fees and taxes for
repayment of the bonds. Column 9 shows the total estimated assessment income to be
received and Column 10 shows the net cash flow surplus after funding the statutory debt
service requirements.
$855,000 General Obligation Storm Water Revenue Bonds, Series 1999C
("The Series 1999C Bonds")
The Series 1999C Bonds are being used to finance a lift station, forcemain and other
appurtenant work to the City's storm water system (Birger Pond Outlet). The sources and uses
for the Series 1999C Bonds are shown on Page 15. The City is contributing $300,000 towards
this project from the Series 19926 bond proceeds. Page 16 shows the debt service schedule
for the Series 1999C Bonds. Columns 1 through 5 are the principal and estimated interest due
on the Series 1999C Bonds.
Res ectfully submitted,
- ��� ����...i �--��--�Z���
S RINGSTE Incorporated �
jam
Provided to Staff:
Rebate and Continuing Disclosure Contract Amendments
Page 5
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Page 6
City of Rosemount, Minnesota
G.O. Improvement Bonds
Series 1999B
SOURCES � USES
Dated 10/01/1999 Delivered 10/01/1999
SOURCES OF FUNDS
Par Amount of Bonds.......................................................... $4,395,000.00
Sanitary Sewer Core Fund.................................................. 72,000.00
Water Main Core Fund........................................................ 70,000.00
Storm Water Core Fund...................................................... 12,000.00
TOTAL SOURCES.............................................................. $4.549,000.00
USES OF FUNDS
Bloomfield 2nd, CP 299....................................................... 2,024,240.00
Biscayne Point Znd, CP 309................................................ 1,006,908.00
Rosemount Commons, CP 300........................................... 893,900.00
Oakridge Estates, CP 310................................................... 276,802.00
Deposit to Capitalized Interest(CIF) Fund.......................... 272,893.33
Total Underwriter's Discount (1.100%)............................... 48,345.00
Costs of Issuance................................................................ 32,150.00
Rounding Amount.....................................:.......................... (6,238.33)
TOTAL USES...................................................................... $4,549,000.00
Springsted Incorporated File=Rosemont.sf-Senes 19998
Public Finance Advisors 8/16�1999 3:43 PM
Page 7
City of Rosemount, Minnesota
General Obligation Improvement Bonds
Series 1999B
Assessment Income Schedule
DATE ASSESS 996 ASSESS 996 ASSESS 996 ASSESS 99B TOTAL
Blommfield Rsmnt.Commons Biscayne Pointe Oakridge Estate
12/31/2001 287,302.43 222,143.80 221,897.25 68,788.15 800,131.63
12/31/2002 287,302.43 222,143.80 221,897.25 68,788.15 800,131.63
12/31/2003 287,302.44 222,143.80 221,897.24 68,788.15 800,131.63
12/31l2004 287,302.43 222,143.80 221,897.25 68,788.14 800,131.62
12/31/2005 287,302.44 222,143.80 221,897.25 68,788.14 800,131.63
12/31/2006 287,302.43 - - - 287,302.43
12/31/2007 287,302.43 - - - 287,302.43
12/31/2008 287,302.43 - - - 287,302.43
12/31/2009 287,302.43 - - - 287,302.43
12/31/2010 287,302.43 - - - 287,302.43
Total 2,873,024.32 1,110,719.00 1,109,486.24 343,940.73 5,437,17029
PAR AMOUNTS OF SELECTED ISSUES
ASSESS 99B-Blommfield.............................................. 2.000,000.00
ASSESS 996-Rsmnt. Commons................................... 901,000.00
ASSESS 996-Biscayne Pointe..................................... 900,000.00
ASSESS 99B-Oakridge Estate..................................... 279,000.00
TOTAL............................................................................ 4,080,000.00
Springsted Incrorporated File=Rosemont.s/-Aggiegate
Public Finance Advisors 8/12/1999 4:12 PM
Page 8
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 1999B
Assessment Income Schedule
Bloomfield 2nd, CP299
Date Principal Coupon Interest Total P+I
12/31/2000 - - - -
12/31/2001 120,169.10 6.900% 167,133.33 287,302.43
12/31/2002 157,594.10 6.900% 129,708.33 287,302.43
12/31/2003 168,468.10 6.900% 118,834.34 287,302.44
12/31/2004 180,092.39 6.900% 107,210.04 287,302.43
12/31/2005 192,518.77 6.900% 94,783.67 287,302.44
12/31/2006 205,802.56 6.900% 81,499.87 287,302.43
12/31/2007 220,002.94 6.900% 67,299.49 287,302.43
12/31/2008 235,183_14 6.900% 52,119.29 287,302.43
12/31/2009 251,410.78 6.900% 35,891.65 287,302.43
12/31/2010 268,758.12 6.900% 18,544.31 287,302.43
Total 2,000,000.00 - 873,024.32 2,873,024.32
YIELD STATISTICS
BondYear pollars..................•...................-••-•........................................................ $12.652_53
AverageLife............................................................................................................ 6.326 Years
AverageCoupon..................................................................................................... 6.8999999%
Net Interest Cost(NIC)........................................................................................... 6.8999999%
True Interest Cost(TIC).......................................................................................... 6.7738698%
Bond Yield for Arbitrage Purposes.......................................................................... 6.7710055%
All Inclusive Cost(AIC)................................•.......................................................... 6.7738698%
IRS FORM 8038
Net Interest Cost.................................................................•--................................. 6.8999999%
Weighted Average Maturity..................................................................................... 6.326 Years
Springsted lncorporated File=Rosemont.sf-ASSESS 998
Public Finance Advisors 8/12/1999 4:06 PM
Page 9
/
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 1999B
Assessment Income Schedule
Rosemount Commons, CP300
Date Principal Coupon interest Total P+I
12/31/2000 - - - -
12/31/2001 146,850.23 6.900% 75,293.57 222,143.80
12J31/2002 170,107.47 6.900% 52,036.33 222,143.80
12/31/2003 181,844.88 6.900% 40,298.92 222,143.80
12/31/2004 194,392.18 6.900% 27,751.62 222,143.80
12/31/2005 207,805.24 6.900% 14,338.56 222,143.80
Total 901,000.00 - 209,719.00 1,110,719.00
YIELD STATISTICS
BondYear pollars................................................................................................... $3,039.41
AverageLife............................................................................................................ 3.373 Years
AverageCoupon..................................................................................................... 6.8999999%
NetInterest Cost(NIC)........................................................................................... 6.8999999%
True Interest Cost(TIC).......................................................................................... 6.7663830%
Bond Yield for Arbitrage Purposes.......................................................................... 6.7710055%
All Inclusive Cost(AIC)........................................................................................... 6_7663830%
IRS FORM 8038
NetInterest Cost..................................................................................................... 6.8999999%
Weighted Average Maturity..................................................................................... 3.373 Years
Springsted Incorporated File=Rosemont.sf-ASSESS 998
Pubfic Finance Advisors 8/1111999 4:07 PM
Page 10
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 1999B
Assessment Income Schedule
Biscayne Point 2nd, CP309
Date Principal Coupon Interest Total P+I
12/31/2000 - _
12/31/2001 146,687.25 6.900% 75,210.00 221,897.25
12/31/Z002 169,918.67 6.900% 51,978.58 221,897.25
12/31/2003 181,643.05 6.900% 40,254.19 221,89724
12/31/2004 194,176.43 6.900% 27,720.82 221,897.25
12/31/2005 207,574.60 6.900% 14,322.65 221,897.25
Total 900,000.00 - 209,486.24 1,109,486.24
YIELD STATISTICS
BondYear pollars................................................................................................... $3,036.03
AverageLife............................................................................................................ 3.373 Years
AverageCoupon..................................................................................................... 6.9000000%
NetInterest Cost(NIC)........................................................................................... 6.9000000%
TrueInterest Cost(TIC).......................................................................................... 6.7663830%
Bond Yield for Arbitrage Purposes.......................................................................... 6.7710055%
AllInclusive Cost(AIC)..............................................:......•••................-••••.............. 6.7663830%
IRS FORM 8038
NetInterest Cost..................................................................................................... 6.9000000%
Weighted Average Maturity..................................................................................... 3.373 Years
Springsted lncorporated File=Rosemont.sf-ASSESS 99B
Public Finance Advisors 8/1 y1999 4:07 PM
Page 11
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 1999B
Assessment income Schedule
Oakridge Estates, CP310
Date Principal Coupon Interest Total P+I
12/31/2000 - - - '
12/31/2001 45,473.05 6.900% 23,315.10 68,788.15
12/31/2002 52,674.79 6.900% 16,113.36 68,788.15
12/31l2003 56,309.35 6.900% 12,478.80 68,788.15
12/31/2004 60,194.69 6.900% 8,593.45 68,788.14
12/31/2005 64,348.12 6.900% 4,440.02 68,788.14
Total 279,000.00 - 64,940.73 343,940.73
YIELD STATISTICS
BondYear pollars................................................................................................... $941.17
AverageLife............................................................................................................ 3.373 Years
AverageCoupon..................................................................................................... 6.8999997%
Net Interest Cost(NIC)............................................................................................ 6.8999997%
True Interest Cost(TIC).......................................................................................... 6.7663828%
Bond Yield for Arbitrage Purposes.......................................................................... 6.7710055%
All Inclusive Cost(AIC)............................................................................................ 6.7663828%
IRS FORM 8038
NetInterest Cost..................................................................................................... 6.8999997%
Weighted Average Maturity..................................................................................... 3.373 Years
Springsted Incorporated File=Rosemonf.sf-ASSESS 998
Public Finance Advisors 8/1?/1999 4:07 PM
Page 12
City of Rosemount, Minnesota
G.O. Improvement Bonds
Series 1999B
DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I
2/01/2000 - - _ _
2/01/2001 - - 272,gg3.33 272,893.33
2/01/2002 575,000.00 4.300% 204,670.00 779,670.00
2/01/2003 600,000.00 4.400% 179,945.00 779,945.00
2/01/2004 625,000.00 4.500% 153,545.00 778,545.00
2/01/2005 655,000.00 4.600% 125,420.00 780,420.00
2/01/2006 685,000.00 4.700% 95,290.00 780,290.00
2/01/2007 225,000.00 4.850% 63,095.00 288,095.00
2/01/2008 240,000.00 4.950% 52,182.50 292,182.50
2/01/2009 250,000.00 5.050% 40,302.50 290,302.50
2/01/2010 265,000.00 5.100% 27,677.50 292,677.50
2/01/2011 275,000.00 5.150% 14,162.50 289,162.50
Total 4,395,000.00 - 1,229,183.33 5,624,183.33
YIELD STATISTICS
BondYear pollars................................................................................................... $25,720.00
AverageLife............................................................................................................ 5.852 Years
AverageCoupon..................................................................................................... 4.7790954%
NetInterest Cost(NIC)........................................................................................... 4.9670619%
TrueInterest Cost(TIC).......................................................................................... 4.9804030%
Bond Yield for Arbitrage Purposes.......................................................................... 4.7567536%
All Inclusive Cost(AIC)........................................................................................... 5.1310367%
IRS FORM 8038
NetInterest Cost..................................................................................................... 4.7790954%
Weighted Average Maturity..................................................................................... 5.852 Years
Springsted lncorporated File=Rosemont.sf-Series 19998
Public Finance Advisors 8/17/1999 9:46 AM
Page 13
City of Rosemount, Minnesota
G.O. Improvement Bonds
Series 19998
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I CiF Net New D/S 105%of Total Revenue Levy Required
2/01/2000 - - - - - - - - -
2/01/2001 - - 272,893.33 272,893.33 (272,893.33) - - - -
2/01/2002 575,000.00 4.300% 204,670.00 779,670.00 - 779,670.00 818,653.50 800,131.63 (18,521.87)
2/01/2003 600,000.00 4.400% 179,945.00 779,945.00 - 779,945.00 818,942.25 800,131.63 (18,810.62)
2/01/2004 625,000.00 4.500% 153,545.00 778,545.00 - 778,545.00 817,472.25 800,131.63 (17,340.62)
2J01/2005 655,000.00 4.600% 125,420.00 780,420.00 - 780,420.00 819,441.00 800,131.62 (19,309.38)
2/O1/2006 685,000.00 4.700% 95,290.00 780,290.00 - 780,290.00 819,304.50 800,131.63 (19,172.87)
2/01/2007 225,000.00 4.850% 63,095.00 288,095.00 - 288,095.00 302,499.75 287,302.43 (15,197.32)
2/01/2008 240,000.00 4.950% 52,182.50 292,182.50 - 292,182.50 306,791.63 287,302.43 (19,489.20)
2/01/2009 250,000.00 5.050% 40,302.50 290,302.50 - 290,302.50 304,817.63 287,302.43 (17,515.20)
2/01/2010 265,000.00 5.100% 27,677.50 292,677.50 - 292,677.50 307,311.38 287,302.43 (20,008.95)
2/01/2011 275,000.00 5.150% 14,162.50 289,162.50 - 289,162.50 303,620.63 287,302.43 (16,318.20)
Total 4,395,000.00 - 1,229,183.33 5,624,183.33 (272,893.33) 5,351,290.00 5,618,854.50 5,437,170.29 (181,684.21)
Springsted Incorporeted File=Rosemont.sf-Series 1999B
Public Frnance Advisors 8/1fi/1999 3:43 PM
Page 14
City of Rosemount, Minnesota
G.O. Storm Water Revenue Bonds
Series 1999C
Birger Pond Outlet, CP 262
SOURCES & USES
Dated 10/01/1999 Delivered 10/01/1999
SOURCES OF FUNDS
Par Amount of Bonds.......................................................... $855,000.00
Fundson Hand.................................................................... 300,000.00
TOTAL SOURCES.............................................................. $1,155,000.00
USES OF FUNDS
Total Underwriter's Discount (1.200%)............................... 10,260.00
Costs of Issuance................................................................ 17,775.00
Deposit to Project Construction Fund.................................. 1,130,125.00
Rounding Amount................................................................ (3,160.00)
TOTAL USES...................................................................... $1,155,000.00
Springsted Incorporated File=Rosemont.sf-Series 1999C
Public Finance Advisors 8/17/1999 11:24 AM
Page 15
City of Rosemount, Minnesota
G.O. Storm Water Revenue Bonds
Series 1999C
Birger Pond Outlet, CP 262
DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I
2/01/2000 - - - _
2/01/2001 30,000.00 4.250% 56,350.00 86,350.00
2/01/2002 45,000.00 4.300% 40,987.50 85,987.50
2/01/2003 45,000.00 4.400% 39,052.50 84,052.50
2/01/2004 45,000.00 4.500% 37,072.50 82,072.50
2/01/2005 50,000.00 4.600% 35,047.50 85,047.50
2/01/2006 50,000.00 4.700% 32,747.50 82,747.50
2/01/2007 55,000.00 4.850°/a 30,397.50 85,397.50
2/01/2008 55,000.00 4.950% 27,730.00 82,730.00
2/01/2009 60,000.00 5.050% 25,007.50 85,007.50
2/01/2010 60,000.00 5.100% 21,977.50 81,977.50
2/01/2011 65,000.00 5.150% 18,917.50 83,917.50
2/01/2012 70,000.00 5.200% 15,570.00 85,570.00
2/01/2013 70,000.00 5.250% 11,930.00 81,930.00
2/01/2014 75,000.00 5.300% 8,255.00 83,255.00
2/01/2015 80,000.00 5.350% 4,280.00 84,280.00
Total 855,000.00 - 405,322.50 1,260,322.50
YIELD STATISTICS
BondYear pollars................................................................................................... $7,950.00
AverageLife............................................................................................................ 9.298 Years
AverageCoupon..................................................................................................... 5.0983962%
NetInterest Cost(NIC)........................................................................................... 5.2274528%
TrueInterest Cost(TIC).......................................................................................... 52429213%
Bond Yield for Arbitrage Purposes.......................................................................... 5.0722922%
AllInclusive Cost(AIC)........................................................................................... 5.5456272%
IRS FORM 8038
Net�nterest Cost..................................................................................................... 5.0983962%
Weighted Average Maturity..................................................................................... 9.298 Years
Springsted Incorporated File=Rosemont.sf-Series 1999C
Public Finance Advisors 8/18/1999 1:23 PM
Page 16
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$4,395,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1999B
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, September 21, 1999, until 12:00 Noon,
Centrai 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
Proposais 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
Obligations regardless of the manner of the Propo'sal submitted.
DETAILS OF THE BONDS
The Bonds will be dated October 1,1999, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2000. Interest wiil
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 $575,000 2006 $685,000 2010 $265,000
2003 $600,000 2007 $225,000 2011 $275,000
2004 $625,000 2008 $240,000
2005 $655,000 2009 $250,000
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 8� 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 17
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, 2006, and on any day thereafter, to prepay Bonds due on or
after February 1, 2007. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be
prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to
be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge special
assessments against benefited properties. The proceeds will be used to finance street and
utility improvements in various parts of the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $4,346,655 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 $43,950,
payable to the order of the City. If a check is used, it must accompany the proposal. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposafs. 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 Financiat 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 Obligations will be awarded on the baisis of the lowest interest rate to be determined on a
ture interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
Page 18
�
`
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 compiy
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 shalt be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser through DTC in New York, New York. Delivery will be subject to receipt by the
purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of
Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-
litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal,
or equivalent, funds which shall be received at the offices of the City or its designee not later
than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds
shall have been made impossible by action of the City, or its agents, the purchaser shall be
liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance
with said terms for payment.
CONTINUING DISCLOSURE
On the date of actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking (the "Undertaking") whereunder the City will covenant for
the benefit of the owners of the Bonds to provide certain financial and other information about
the City and notices of certain occurrences to information repositories as specified in and
required by SEC Rule 15c2-12(b)(5).
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly-final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
Page 19
/
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, shatl 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 175 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 Finai 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 contractuai 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 August 25, 1999 BY ORDER OF THE CITY COUNCIL
/s/ Susan M. Walsh
City Clerk
OS/17/99 10:06 AM
Page 20
�
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$855,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION STORM WATER REVENUE
BONDS, SERIES 1999C
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, September 21, 1999, 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) 223-3002 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 October 1, 1999, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2000. 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:
2001 $30,000 2005 $50,000 2009 $60,000 2013 $70,000
2002 $45,000 2006 $50,000 2010 $60,000 2014 $75,000
2003 $45,000 2007 $55,000 2011 $65,000 2015 $80,000
2004 $45,000 2008 $55,000 2012 $70,000
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
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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, 2006, and on any day thereafter, to prepay Bonds due on or
after February 1, 2007. Redemption may be in whole or in pa�t and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be
prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to
be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge net
revenues derived through its storm water utility. The proceeds will be used to finance
improvements to the storm water utility system.
TYPE OF PROPOSALS
Proposals shall be for not less than $844,740 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 $8,550, 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 Issuer scheduled
for award of the Obligations is adjourned, recessed, or continued to another date without award
of the Obligations 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.
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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 wili 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
shatl have been made impossible by action of the City, or its agents, the purchaser shall be
liable to the City for any foss 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
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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 August 25, 1999 BY ORDER OF THE CITY COUNCIL
/s/ Susan M. Walsh
City Clerk
8/17/99 11:19 AM
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