HomeMy WebLinkAbout6.d. 1997B Bond Issue - Authorize Issuance & Setting Bond Sale CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: October 21, 1997
AGENDA tTEM: 19978 Bond Issue -Authorizing Issuance AGENDA SECTION:
and Setting Bond Sale Consent
PREPARED BY: Jeff May, Finance Director AGENDA NO.
�p•� .
ATTACHMENTS: Resolution and Recommendations APPROVED BY:
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This item is on the agenda for your consideration in authorizing the issuance and setting the sale of
General Obligation lmprovements Bonds for three projects: (1) Project#283 - Shannon Pond East
2nd Addition; (2) Project#285 - Biscayne Pointe; and (3) Project#286 - Brockway Draw Trunk
Sanitary Sewer Phase 1. All three of these projects have begun construction or will be beginning
construction shortly.
Bids will be opened Tuesday, November 18, 1997, at 11;00 A.M. at the offices of Springsted
Incorporated. The bids will be tabulated there and then consideration for award of theBonds wili 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 COMPE7ITIVE NEGOTIATED SALE OF
$1,595,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1997B.
COUNCIL ACTION:
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CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 1997-
RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED
SALE OF $1, 595, 000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 1997B
WHEREAS, the City Council of the City of Rosemount,
Minnesota, (the "City") has heretofore determined that it is
necessary and expedient to issue its $1, 595, 000 General
Obligation Improvement Bonds, Series 1997B (the "Bonds" ) to
finance various improvement projects in the City; and
WIiEREAS, 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; Findincrs . The City Council hereby
authorizes Springsted to solicit bids for the competitive
negotiated sale of the Bonds .
2 . Meeting; Bid Openinct. 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 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.
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366727.1 'I
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ADOPTED this 21st day of October, 1997 . ,
Cathy Busho, Mayor li
ATTEST: ''
Susan M. Walsh, City Clerk ',
Motion by: Seconded by:
Voted in favor: -
Voted Against:
366727.1
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEtVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,595,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1997B
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday , November 18, 1997, until 11:30 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 (612) 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 (612) 223-30Q0 or fax (612) 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. Proposals may also be filed electronically
via PARITY, in accordance with PARITY Rules of Participation and the Terrns of Proposal,
� within a one-hour period prior to the time of sale established above, but no Proposals will be
received after that time. If provisions in the Terms of Proposal conflict with the PARITY Rules
of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be
obtained from PARfTY and such fee shall be the responsibility of the bidder. For further
� information about PARITY, potential bidders may contact PARITY at 500 Main Street,
Suite 1010, Fort Worth, TX 76102, telephone (817) 885-8900. Neither the City nor Springsted
Incorporated assumes any liability if there is a malfunction of PARITY. All bidders are advised
that each Proposal shall be deemed to constitute a contract between the bidder and the City to
purchase the Bonds regardless of the manner of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will be dated December 1, 1997, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1998. Interest wilF
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:
2000 $190,000 2004 $160,000 2008 $145,OQ0
2001 $170,000 2005 $155,000 2009 $145,000
2002 $165,000 2006 $155,000
2003 $160,000 2007 $150,000
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. 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 Bonds,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede 8� Co. as nomines 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 p�incipai amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a eondition 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, 2005, and on any day thereafter, to prepay Bonds due on or
after February 1, 2006. 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 wilt notify DTC of the particular amount of such maturity to be
prepaid. DTC will determine by lot the amount of each participanYs 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 property. The proceeds will be used to finance various
improvement projects within the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,579,050 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ( Deposit ) in
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the form of a certified or cashier's check or a Financial Surety Bond in the amount of $15,950,
payable to the order of the City. If a check is used, it must accompany each 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 p�ior 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 cashiers
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 Gity. No proposal can
be withdrawn or amended after the time set for receiving proposals unless the meeting of the
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City scheduled for award of the Bonds is adjourned, recessed, or continued to another date
without award of the Bonds having been made. Rates shail be in integrai multiples of 5/100 or
1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single
rate from the date of the Bonds to the date of maturity. No conditional proposals will be
accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest'rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (iii) reject any proposal which the City determines to have failed to comply
with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser. .
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bonds nor any enor 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 at a place mutually satisfactory to the City and the purchaser. Delivery wilt 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 I,i
shall be made in federal, or equivalent, funds which shall be received at the offices of the City
or its designee not later than a 2:00 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.
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CONTINUING DISCLOSURE
On the date of the actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking whereunder the City will covenant to provide, or cause to be
provided, annual financial information, including audited financial statements of the City, and
notices of certain material events, 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 (612} 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 65 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 October 21, 1997 BY ORDER OF THE CITY COUNCIL
/s!Susan Walsh
City Clerk
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Recommendations '
For '',
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City of Rosemount, Minnesota
$1,595,000
Generai Obligation Improvement Bonds, Series 1997B
Presented to:
Mayor Cathy Busho
Members, City Councii
Mr. Thomas Burt, Administrator
Mr. Jeffrey May, Finance Director
City of Rosemount
2875 145th Street West
Rosemount, MN 55068
SPRINGSTED
Public Finance Advisors
Study No.: R0704H4
SPRINGSTED Incorporated
October 15, 1997
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RECOMMENDATIONS
Re: Recommendations for the Issuance of $1,595,000 Generai Obligation tmprovement
Bonds, Series 1997B
Proceeds of the bonds will be used to finance the assessable portion of three improvement
projects within the City: Project 285 (Biscayne Point), Project 286 (Brockway Draw Trunk
Sanitary Sewer, Phase-1), and Project 283 (Shannon Pond East, 2nd addition). In addition to
the bond proceeds, the City will contribute available funds from its storm core fund, sanitary
sewer core fund and water core funds to pay for the above projects. The composition of this
issue is shown on page 4.
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 offering.
2. Sa/e Date and Time Tuesday, November 18, 1997, at
11:30 A.M., with award that evening at
7:30 P.M.
3. Authority and Purpose for the Bond Issue The bonds are being issued pursuant to
Minnesota Statutes, Chapters 429 and 475,
to finance various street and utility
improvement projects within the City.
4. Principal Amount of Otiering $1,595,000 ,
5. Repayment Term The first interest payment on the bonds is '
due August 1, 1998. Principal will be due ,
February 1, 2000 through 2009. '
6. Source of Payments Since income from special assessments will
not be received until 1999, capitalized
interest, totaling $82,742, has been added to
the principal account of the issue and wili be
used to make interest payments due through
February 1, 1999. Thereafter, the bonds will
be repaid from special assessments against
benefited property.
7. Prepayment Provisions The bonds maturing February 1, 2006
through 2009 will be callable on February 1,
2005 and any day thereafter at a price of par
plus accrued interest:
8. Credit Rating Comments An application will be made to Moody's
Inventors Service for a rating on this issue.
The City is currently rated "A2" by Moody's
Investor Service.
9. Bank Quali�cation The City does not expect to issue over
$10,000,000 of tax-exempt obiigations in
1997, and therefore this issue will be bank-
qualified. Issues which are bank-qualified
City of Rosemount, Minnesota
October 15, 1997
generally receive interest rates which are
lower than issues which are not bank-
qualified.
10. Rebate Requirements This issue is subject to the federal arbitrage
requirements. However, since the City wili
issue less than $5,000,000 in tax-exempt
financings in 1997, it may exempt itself from
rebating federal arbitrage earnings on the
investment of proceeds to the federal
government.
11. Bona Fide �ebt Service Fund The City must maintain a bona fide debt
service fund for the bonds or be subject to
yield restrictian or pay back excess
investment earnings in the debt service fund
to the federal government . A bona fide debt
service fund is a fund for which there is an
equal matching of revenue to debt service
expense, with a carry-aver permitted equal
to the greater of the investment eamings in
the fund during that year or 1/12 of the debt
service of that year.
12. Economic Life The average life of the bonds cannot exceed
120% of the economic life of the projects to
be financed. The economic life of the street
and utility improvements is 20 and 50 years,
respectively. The bonds are therefore within
the economic life requirements.
13. FederaJ Reimbursement Regulations Federal reimbursement regulations require
the City to make a declaration, within 60
days of the actual payment, of its intent to
reimburse itself from expenses paid prior to ,
the receipt of bond proceeds. It is our !
understanding the City has taken whatever '
actions are necessary to comply with the
federal reimbursement regulations.
14. Continuing Disclosure This issue is subject to the continuing
disclosure requirements: These SEC rules
require the City to undertake an annuat
update of its Official Statement information
and report any material events to the national
repositories. Springsted currently provides
continuing disclosure services for the City
under separate eontract. An amendm$nt to
that contract adding this issue has been
provided to City staff.
. 15. Attachments Allocation of Bond Costs Schedule
Assessment Income Schedule
Debt Service Schedule
Terms of Proposal
Page 2
� City of Rosemount, Minnesota
October 15, 1997
DISCUSSION
Page 5 of these recommendations shows the projection of special assessment income.
Assessments totaling $1,595,000 of principal are expected to be filed on or about October 15,
1998. Assessments will be spread over a term of 10 years in even annual instaliments of
principal with interest charged on the unpaid balance at a rate of 2% over the net interest rate
on the bonds. For structuring purposes we have estimated the assessment rate to be 6.6%.
Capitalized interest has been included in the principal amount of the assessments.
The debt service schedule for this issue is shown on page 6. Columns 1 through 6 show the
years and amounts of principal and estimated interest due on the bonds. Column 7 shows the
capitalized interest included in the issue to make interest payments due prior to the first
collection of assessments in 1999. Column 8 shows the net amount required to pay 100% of
the debt service, with column 9 showing 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 special assessments for repayment of the bonds.
Column 10 shows the projection of assessment income developed on page 5. The annual
surplus of assessment income over the debt service �equirement at 105% is shown in
Column 11.
Respectfully submitted,
,�,�-��. -�t�=d �. �-c4;f�r,�..�� .
, � ���
SPRINGSTED Incorporated
Jmm
Provided to Staff:
a} Amendment to Continuing Disclosure Contract
Page 3
City of Rosemount, Minnesota
Allocation of Bond Costs
General Obiigation Improvement Bonds, 1997B
City Percent of Assessable Portion Costs of Capitalized Unden�vnters Totals
Pro'ects Total of 8ond Costs Issuance Interest Discount
Biscayne Point 47.740% $702,000 $12,335 �39,501 $7,615 $761,451
#285
Brockway Draw Trunk 30.328%0 445,970 7,837 25,094 4,837 483,738
Sanitary Sewer#286
Phase 1
Shannon Pond East 21.932% 322,500 5,667 18,147 3,498 349,812
2nd Addition#283
Totals 100.000% $1,470,470 $25,838 $82,742 $15,950 $1,595,OQ0
Page 4
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City of Rosemount, Minnesota Prepared October 13, 1997
Assessment Income By SPRINGSTED Incorporated
PROJECTED ASSESSMENT INCOME
Assessment Income
Filing Oate: 10/15/1998
Filing Collect Interest
Year Year Principal � 6.600� Total
1998 1999 159,500 127,766a 287,266
1999 2000 159,500 94,743 254,243
2000 2001 159,500 84,216 243,716
2001 2002 159,500 73,689 233,189
2002 2003 159,500 63,162 222,662
2003 2004 159,500 52,635 212,135
2004 2005 159,500 42,108 201 ,608
2005 2006 159,500 31 ,581 191 ,OSf
2006 2007 159,500 21 ,054 180,554
2007 2008 159,500 10,527 170,027
TOTALS 1 ,595,000 601 ,481 2,196,481
a Includes interest from filing
)
date to 12/31/1999.
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City of Rosemount, Minnesota Prepared October 13, 1997
General Obligation Improvement Bonds, Series 1997B By SPRINGSTED Incorporated
Dated: 12- 1 -1997
�ature: 2- 1
First Interest: S- i -1998
Total Capital- Net Assessment
Year of Year of Principal ized Levy 105� Income Annual
Levy Mat. Principal Rates Interest & Interest Interest Required of Total Surplus
(1 ) (2) �3) �4) �5) ls) �7) �8) �9) ���) (11 �
1997 1999 0 0.00� 82,742 82,742 82,742 0 0 0 0
1998 2000 190,000 4.05� 70,922 260,922 0 260,922 273,968 287,266 13,298
1999 2001 170,000 4.15� 63,227 233,227 0 233,227 244,888 254,243 9,355
2000 2002 165,000 4.25� 56,172 221 ,172 0 221 ,172 232,231 243,716 11 ,485
2001 2003 160,000 4.35� 49,159 209,159 0 209,159 219,617 233,189 13,572
2002 2004 160,000 4.45� 42,199 202,199 0 202,199 212,309 222,662 10,353
2003 2005 155,000 4.55� 35,079 190,079 0 190,079 199,583 212,135 12,552
2004 2006 155,000 4.60� 28,026 183,026 0 183,026 192,177 201 ,608 9,431
2005 2007 150,000 4.65� 20,896 170,896 0 170,896 179,441 191 ,081 11 ,640
2006 2008 145,000 4.75� 13,921 158,921 0 158,921 166,867 180,554 13,687
2007 2009 t45,000 4.85� 7,033 152,033 0 152,033 159,635 170,027 10,392
TOTALS: 1 ,595,000 469,376 2,064,376 82,742 1 ,981 ,63A 2,080,716 2,198,481
Bond Years: 10,295.83 Annual Interest: 469,376
Avg. �aturity: 6.46 Plus Discount: 15,950
Avg. Annual Rate: 4.559� Net Interest: 485,326
T.I .C. Rate: 4.730� N.I.C. Rate: 4.714�
Tnterest rates are estimates; changes may cause significant alterations of this schedule.
The actual underwriter's discount bid may also vary.
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THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OFPROPOSAL Ili,
$1,595,000 '
CITY OF ROSEMOUNT, MINNESOTA '
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 19976
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, November 18, 1997, untii 11:30 A.M.,
Central Time, at the o�ces 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 wili be by the City Councii at 7:30 P.M., Centrai Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 to Springsted.
Signed Proposais, 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 (612) 223-3000 or fax (612) 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. Proposals may also be filed electronically
via PARIT`(, in accordance with PARITY Rules of Participation and the Terms of Proposal,
within a one-hour period prior to the time of sale established above, but no Proposals will be
received after that time. If provisions in the Terms of Proposai conflict with the PARITY Rules
of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be
obtained from PARITY and such fee shall be the responsibility of the bidder. For further
� information about PARITY, potential bidders may contact PARITY at 500 Main Street,
Suite 1010, Fort Worth, TX 76102, telephone (817) 885-8900. Neither the City nor Springsted
Incorporated assumes any liability if there is a malfunction of PARITY. 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.
DETAtLS OF THE BONDS
The Bonds will be dated December 1, 1997, as the date of original issue, and wi11 bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1998. 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:
2000 $190,000 2004 $160,000 2008 $145,000
2001 $170,000 2005 $155,000 2009 $145,000
2002 $165,000 2006 $155,000
2003 $160,000 2007 �150,000
Page +'
BOOK ENTRY SYSTEM II
The Bonds wiii be issued by means of a book entry system with no physical distribution of '
Bonds made to the public. The Bonds wiil be issued in fuily registered form and one Bonds, ,
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. {ndividual purchases
of the 8onds may be made in the principal amount of $5,000 or any multipie 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 norninee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC wiil be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City,
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2005, and on any day thereafter, to prepay Bonds due on or
after February 1, 2006. 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. ff 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 futl faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge special
assessments against benefited property. The proceeds will be used to finance various
improvement projects within the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,579,050 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 $15,950,
payable to the order of the City. If a check is used, it must accompany each proposal. If a
Financial Suret Bond is used, it must be from an insurance company licensed to issue su
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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
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City scheduled for award of the Bonds is adjourned, recessed, or continued to another date
without award of the Bonds having been made. Rates shail be in integrai muitiples of 5/100 or
1/8 of 1°/a. Rates must be in ascending order. Bonds of the same maturity shall bear a single
rate from the date of the Bonds to the date of maturity. No conditional proposals will be
accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive nan-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. I,
BOND lNSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment I
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 Bonds 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 at a place mutually satisfactory to the City and the purchaser. 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 setttement 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 a 2:00 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.
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CONTtNUING DISCLOSURE
On the date of the actuai issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking whereunder the City will covenant to provide, or cause to be
provided, annual financial information, including audited financial statements of the City, and
notices of ce�tain material events, as specified in and required by SEC Rule 15c2-12(b)(5).
OFFICIAL STATEMENT
The City has authorized the preparation of an O�cial Statement containing pertinent
information retative to the Bonds, and said Official Statement will serve as a nearly-final Official i,
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. ',
For copies of the O�cial 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 (612) 223-3000.
The Official Statement, when furkher supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and inte�est rates of the Bonds, together with any other
information required by law, shall constitute a "Final O�cial 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 65 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 shal( 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 October 21, 1997 BY ORDER OF THE CITY COUNCIL
/s/ Susan Walsh
City Clerk
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