HomeMy WebLinkAbout7.a. Accept Bids and Award Sale - General Obligation Improvement Bonds, Series 1997B ,
' � CITY OF ROSEMOUNT
� EXECUTIVE SUMMARYfOR ACTION �
CITY COUNCIL MEETING DATE: November 18, 1997
AGENDA ITEM. Accept Bids and Award Sale - G.O. AGENDA SECTION:
Improvement Bonds, Series 1997B Old Business
PREPARED BY: Jeff May, Finance Director AGENDA ��,�A � � � �
Id/1
ATTACHMENTS: Resolution and Official Statement �' APPROVED BY:
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At 11:30 A.M. Tuesday, November 18, 1997, sealed bids for G.O. Improvement Bonds, Series
1997B, will be opened and the results tabulated at the offices of Springsted Inc. A representative
from Springsted Inc. will be at the Council meeting that evening to give their recommendation for the
issuance of these bonds and to answer any questions that you may have.
Because the bid opening is not until Tuesday morning, you will receive information regarding the bids
at the meeting that evening.
RECOMMENDED ACTION:
Motion to adopt a RESOLUTION ACCEPTING OFFER ON THE SALE OF $1,595,000 GENERAL
OBLfGAT10N IMPROVEMENT BONDS, SERIES 1997B AND PROVIDING FOR THEIR
ISSUANCE.
COUNCIL ACTION:
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CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 1997 -
RESOLUTION ACCEPTING OFFER ON THE
SALE OF $1,595,000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 19978 AND PROVIDING FOR THEIR ISSUANCE
WHEREAS, the City Council of the City of Rosemount, Minnesota
(the "City") , has heretofore determined and declared that it is
necessary and expedient to issue $1, 595, 000 General Obligation
Improvement Bonds, Series 1997B (the "Bonds") of the City, ,
pursuant to Minnesota Statutes, Chapters 429 and 475, to finance '
the construction of various improvement projects in the City (the
"Improvements" ) ; and ,
WHEREAS, the construction of the Improvements to be financed by
the Bonds has heretofore been ordered; and
Wf3EREAS, offers to purchase the Bonds were solicited on behalf of
the City by Springsted Incorporated; and
WHEREAS, it is in the best interests of the City that the Bonds
' be issued in book-entry form as hereinafter provided; and
WHEREAS, the following offers were received, opened and recorded
at the offices of Springsted Incorporated at 11:30 A.M. , this
same day:
Bidder Interest Rate Net Interest Cost
NOW, THEREFORE, BE IT RESOLVED by the Cauncil of the City of
Rosemount, Minnesota, as follows :
1 . Acceptance of Offer. The offer of
(the "Purchaser") , to
purchase $1, 595, 000 General Obligation Improvement Bonds, Series
1997B of the City (the "Bonds" , or individually a "Bond") , in
accordance with the terms of proposal, at the rates of interest
hereinafter set forth, and to pay therefor the sum of
$ , plus interest accrued to settlement, is hereby
found, determined and declared to be the most favorable offer
received and is hereby accepted, and the Bonds are hereby awarded
367267.7
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RESOLUTION 97 -
to said Purchaser. The Finance Director is directed to retain
the deposit of said Purchaser and to forthwith return to the
others making offers their good faith checks or drafts.
2 . Terms of Bonds
(a) Title • Original Issue Date• Denominationss Maturities. The
Bonds shall be titled "General Obligation Improvement Bonds,
Series 1997B" , shall be dated December 1, 1997, as the date of
with on or a
fter such
ori inal issue and shall be issued forth
g
date as fully registered bonds. The Bonds shall be numbered from
inte ra
1
R-1 upward in the denomination of $5, 000 each or in any g
multiple thereof of a single maturity (the "Authorized
Denomination") . The Bonds shall mature on February 1 in the
years and amounts as follows :
Year Amount Year Amount
2000 $190, 000 2005 $155, 000
2001 170, 000 2006 155, 000
2002 165, 000 2007 150, 000
2003 160, 000 2008 145, 000
2004 160, 000 2009 145, 000
{b) Book Entrv Only System. The Depository Trust Company, a
limited purpose trust company organized under the laws of the
State of New York or any of its successors or its successors to
its functions hereunder (the "Depository") will act as securities
depository for the Bonds, and to this 'end:
(i) The Bonds shall be initially issued and, so long as they
remain in book entry form only (the "Baok Entry Only Period") ,
shall at all times be in the form of a separate single fully
registered Bond for each maturity of the Bonds; and for purposes
of complying with this requirement under paragraphs 5 and 10
Authorized Denominations for any Bond shall be deemed to be
limited during the Book Entry Only Period to the outstanding
principal amount of that Bond.
(ii) Upon initial issuance, ownership of the Bonds shall be
registered in a bond register maintained by
(the "Bond Registrar")
in the name of CEDE & CO. , as the nominee (it or any nominee of
the existing or a successor Depository, the "Nominee" ) .
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RESOLUTION 97 -
(iii} With respect to the Bonds neither the City nor the Bond
Registrar shall have any responsibility or obligation to any
broker, dealer, bank, or any other financial institution for
which the Depository holds Bonds as securities depository (the
"Participant" ) or the person for which a Participant holds an
interest in the Bonds shown on the books and records of the
Participant (the "Beneficial Owner") . Without limiting the
immediately preceding sentence, neither the City, nor the Bond
Registrar, shall have any such responsibility or obligation with
respect to (A) the accuracy of the records of the Depository, the
', Nominee or any Participant with respect to any ownership interest
in the Bonds, or (B) the delivery to any Participant, any Owner
or any other person, other than the Depository, of any notice
with respect to the Bonds, including any notice of redemption, or
, (C) the payment to any Participant, any Beneficial Owner or any
other person, other than the Depository, of any amount with
respect to the principal of or premium, if any, or interest on ,
the Bonds, or (D) the consent given or other action taken by the �,
Depository as the Registered Holder of any Bonds (the "Holder") . I
For purposes of securing the vote or consent of any Holder under
this Resolution, the City may, however, rely upon an omnibus
proxy under which the Depository assigns its consenting or voting
rights to certain Participants to whose accounts the Bonds are '
credited on the record date identified in a listing attached to
the omnibus proxy. ,
(iv) The City and the Bond Registrar may treat as and deem the
Depository to be the absolute owner of the Bonds for the purpose
of payment of the principal of and premium, if any, and interest
on the Bonds, for the purpose of giving notices of redemption and
other matters with respect to the Bonds, for the purpose of
obtaining any consent or other action to be taken by Holders for
the purpose of registering transfers with respect to such Bands,
and for all purpose whatsoever. The Bond Registrar, as paying
agent hereunder, shall pay all principal of and premium, if any,
and interest on the Bonds only to or upon the Holder of the
Holders of the Bonds as shown on the bond register, and all such
payments shall be valid and effective to fully satisfy and
discharge the City' s obligations with respect to the principal of
and premium, if any, and interest on the Bonds to the extent of
the sum or sums so paid.
(v) Upon delivery by the Depository to the Bond Registrar of
written notice to the effect that the Depository has determined
to substitute a new Nominee in place of the existing Nominee, and
subject to the transfer provisions in paragraph 1Q hereof,
367267.1 3
RE50LUTION 97 -
references to the Nominee hereunder shall refer to such new
Nominee.
(vi) So long as any Bond is registered in the name of a Nominee,
all payments with respect to the principal of and premium, if
any, and interest on such Bond and all notices with respect to
such Bond shall be made and given, respectively, by the Bond
Registrar or City, as the case may be, to the Depository as
provided in the Letter of Representations to the Depository
required by the Depository as a condition to its acting as book-
entry Depository for the Bonds (said Letter of Representations,
together with any replacement thereof or amendment or substitute
thereto, including any standard procedures or policies referenced
therein or applicable thereto respecting the procedures and other
matters relating to the Depository' s role as book-entry
Depository for the Bonds, collectively hereinafter referred to as
the "Letter of Representations" ) .
(vii) All transfers of beneficial ownership interests in each
Bond issued in book-entry form shall be limited in principal
amount to Authorized Denominations and shall be effected by
procedures by the Depository with the Participants for recording
and transferring the ownership of beneficial interests in such
Bonds .
(viii) In connection with any notice or other communication to
be provided to the Holders pursuant to this Resolution by the I
City or Bond Registrar with respect to any consent or other
action to be taken by Holders, the Depository shall consider the I
date of receipt of notice requesting such consent or other action ��i
as the record date for such consent or other action; provided, �
that the City or the Bond Registrar may establish a special ,
record date for such consent or other action. The City or the
Bond Registrar shall, to the extent possible, give the Depository
notice of such special record date not less than 15 calendar days
in advance of such special record date to the extent possible.
(ix) Any successor Bond Registrar in its written acceptance of
its duties under this Resolution and any paying agency/bond
registrar agreement, shall agree to take any actions necessary
from time to time to comply with the requirements of the Letter
of Representations .
(x) In the case of a partial prepayment of a Bond, the Holder
may, in lieu of surrendering the Bonds for a Bond of a lesser
denomination as provided in paragraph 5 hereof, make a notation
367267.1 4
RESOLUTION 97 -
of the reduction in principal amount on the panel provided on the
Bond stating the amount so redeemed.
(c) Termination of Book-Entry On1v Svstem. Discontinuance of a
particular Depository' s services and termination of the book-
entry only system may be effected as follows:
(i) The Depository may determine to discontinue providing its
services with respect to the Bonds at any time by giving written
notice to the City and discharging its responsibilities with
respect thereto under applicable law. The City may terminate the
services of the Depository with respect to the Bond if it
determines that the Depository is no longer able to carry out its
functions as securities depository or the continuation of the
systern of book-entry transfers through the Depository is not in
the best interests of the City or the Beneficial Owners .
(ii) Upon termination of the services of the Depository as
provided in the preceding paragraph, and if no substitute
securities depository is willing to undertake the functions of
the Depository hereunder can be found which, in the opinion of
the City, is willing and able to assume such functions upon
reasonable or customary terms, or if the City determines that it
is in the best interests of the City or the Beneficial Owners of
the Bond that the Beneficial Owners be able to obtain
certificates for the Bonds, the Bonds shall no longer be
registered as being registered in the bond register in the name
of the Nominee, but may be registered in whatever name or names
the Holder of the Bonds shall designate at that time, in
accordance with paragraph l0 hereof . To the extent that the
Beneficial Owners are designated as the transferee by the
Holders, in accordance with paragraph 10 hereof, the Bonds will
be delivered to the Beneficial Owners .
(iii) Nothing in this subparagraph (c) shall limit or restrict
the provisions of paragraph 10 hereof .
3 . Purpose . The Bonds shall provide funds to finance the costs
of various improvement projects within the City (the
"Improvements"} . The total cost of the Improvements, which shall
include all costs enumerated in Minnesota Statutes, Section
475 . 65, is estimated to be at least equal to the amount of the
Bonds . Work on the Improvements shall proceed with due diligence
to com letion. The Cit covenants that it shall do all things
P Y
and perform all acts required of it to assure that work on the
Improvements proceed with due diligence to completion and that
367267.1 5
RESOLUTION 97 -
any and all permits and studies required under law for the
Improvements are obtained.
4 . Interest . The Bonds shall bear interest payable semiannually
on February l and August 1 of each year (each, an "Interest
Payment Date") , commencing August l, 1998, calculated on the
basis of a 360-day year of twelve 30-day months, at the
respective rates per annum set forth opposite the maturity years
as follows:
Maturity Interest Maturity Interest
Year Rate Year Rate
2000 % 2005 %
2001 2006 I�
2002 2007 I
2003 2008 �
2004 2009 I
5 . Redemption. All Bonds maturing in the years 2006 through I'i
2009, both inclusive, shall be subject to redemption and i
prepayment at the option of the City on February 1, 2005, and on ',
any date thereafter at a price of par plus accrued interest . I
Redemption may be in whole or in part of the Bonds subject to '�,
prepayment . If redemption is in part, the City shall determine ',
the maturities and principal amounts within each maturity to be ',
prepaid; and if only part of the Bonds having a common maturity ',
date are called for prepayment, the specific Bonds to be prepaid ,
shall be chosen by lot by the Bond Registrar. Bonds or portions ',
thereof called for redemption shall be due and payable on the
redemption date, and interest thereon shall cease to accrue from I
and after the redemption date. Mailed notice of redemption shall �
be given to the paying agent and to each affected registered j
holder of the Bonds. �
To effect a partial redemption of Bonds having a common maturity
date, the Bond Registrar prior to giving notice of redemgtion
shall assign to each Bond having a common maturity date a
distinctive number for each $5, 000 of the principal amount of
such Bond. The Bond Registrar shall then select by lot, using
such method of selection as it shall deem proper in its
discretion, from the numbers so assigned to such Bonds, as many
numbers as, at $5, 000 for each number, shall equal the principal
amount of such Bonds to be' redeemed. The Bonds to be redeemed
shall be the Bonds to which were assigned numbers sa selected;
provided, however, that only so much of the principal amount of
367267.1 6
RESOLUTION 97 -
each such Bond of a denomination of more than $S, OOO sha11 be II
redeemed as shall equal $5, 000 for each number assigned to it and '
, so selected. '
The Bond Registrar shall call Bonds for optional
redemption and payment as herein provided upon receipt by the
- a s rior to the
Bond Registrar at least forty five (45) d y p
redemption date of a request of the City, in written form if
the
Bond Re istrar is other than a Cit officer. Such request shall
g Y
'nci al amount of Bonds to be called for re
dem tion
s ecif the ri P
P Y P P
and the redemption date.
Mailed notice of redemption shall be given to the
paying agent (if other than a City officer) and to each affected
Holder. If and when the City sha11 call any of the Bonds for
redemption and payment prior to the stated maturity thereof, the
Bond Registrar shall give written notice in the name of the City
of its intention to redeem and pay such Bonds at the office of
the Bond Registrar. Notice of redemption shall. be given by first
class mail, postage prepaid, mailed not more than sixty t607 and
not less than thirty (30) days prior to the redemption date, to
each Holder of Bonds to be redeemed, at the address appearing in
the Bond Register. All notices of redemption shall state :
(a) The redemption date;
(b) The redemption price;
(c) If less than all outstanding Bonds are to be
redeemed, the identification (and, in the case of
partial redemption, the respective principal
amounts) of the Bonds to be redeemed;
(d) That on the redemption date, the redemption price
will become due and payable upon each such Bond,
and that interest thereon shall cease to accrue
from and after said date; and
(e) The place where such Bonds are to be surrendered
for payment of the redemption price (which shall
be the office of the Bond Registrar) .
Notices to the Depository Trust Company in New York,
New York, or its nominee shall contain the CUSIP numbers of the
Bonds and shall conform to any additional requirements set forth
in the Letter of Representations. If there are any Holders of
367267.1 7
RESOLUTION 97 - I'
the Bonds other than the Depository or its nominee, the Bond
Registrar shall use its best efforts to deliver any such notice
to the Depository on the business day next preceding the date of
mailing of such notice to all other Holders.
6 . Bond Reqistrar.
, in , Minnesota, is appointed to
act as bond registrar and transfer agent with respect to the
Bonds (the "Bond Registrar") , and shall do so unless and until a
successor Bond Registrar is duly appointed, all pursuant to any
contract the City and Bond Registrar shall execute which is
consistent herewith. The Bond Registrar shall also serve as
paying agent unless and until a successor paying agent is duly
appointed. Principal and interest on the Bonds shall be paid to
the registered holders (or record holders) of the Bonds in the
manner set forth in the form of Bond and paragraph 12 of this
resolution.
7 . Form of Bond. The Bonds, together with the Bond Registrar' s
Certificate of Authentication, the form of Assignment and the
registration information thereon, shall be in substantially the
following form:
367267.7 $
RE80LUTION 97 -
UNITED STATES OF AMERICA
STATE OF MINNESOTA
DAKOTA COUNTY
CITY OF ROSEMOUNT
R- $
GENERAL OBLIGATION IMPROVEMENT
BOND, SERIES 1997B
INTEREST MATURITY DATE OF
RATE DATE ORIGSNAL ISSUE CUSIP
December. l, 1997
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT: DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the City of Rosemount,
Dakota County, Minnesota (the "Issuer" ) , certifies that it is
indebted and far value received promises to pay to the registered
, owner specified above, or registered assigns, in the manner
hereinafter set forth, the principal amount specified above, on
the maturity date specified above, unless called for earliex
redemption, and to pay interest thereon semiannually on February
1 and August l of each year (each, an "Interest Payment Date") ,
commencing August l, 1998, at the rate per annum specified above
(calculated on the basis of a 360-day year of twelve 30-day
months) until the principal sum is paid or has been provided for.
This Bond will bear interest from the most recent Interest
Payment Date to which interest has been paid or, if no interest
has been paid, from the date of original issue hereof . The
principal of and premium, if any, on this Bond are payable upon
presentation and surrender hereof at the principal office of
, in .
Minnesota (the "Bond Registrar") , acting as paying agent, or any
successor paying agent duly appointed by the Issuer. Interest on
this Bond will be paid on each Interest Payment Date by check or
, draft mailed to the person in whose name this Bond is registered
(the °Holder" or "Bondholder" ) on the registration books of the
Issuer maintained by the Bond Registrar and at the address
appearing thereon at the close of business on the fifteenth day
of the calendar month next preceding such Tnterest Payment Date
367267.1 9
RESOLUTION 97 -
(the "Regular Record Date") . Any interest not so timely paid
shall cease to be payable to the person who is the Holder hereof
as of the Regular Record Date, and shall be payable to the person
who is the Holder hereof at the close of business on a date (the
"Special Record Date") fixed by the Bond Registrar whenever money
becomes available for payment of the defaulted interest . Notice
of the Special Record Date sha11 be given to Bondholders not less
than ten days prior to the Special Record Date. The principal of
and premium, if any, and interest on this Bond are payable in
lawful money of the United States of America.
So long as this Bond is registered in the name of the Depository
or its Nominee as provided in the Resolution hereinafter
described, and as those terms are defined therein, payment of
principal of, premium, if any, and interest on this Bond and
notice with respect thereto shall be made as provided in the
Letter of Representations, as' defined in the Resolution, and
surrender of this Bond shall not be xequired for payment of the
redemption price upon a partial redemption of this Bond. Until
termination of the book-entry only system pursuant to the
Resolution, Bonds may only be registered in the name of the
Depository or its Nominee.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND
SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and
things required by the Constitution and laws of the State of
Minnesota to be done; to happen and to be performed, precedent to
and in the issuance of this Bond, have been done, have happened
and have been performed, in regular and due form, time and manner
as required by law, and that this Bond, together with all other
debts of the Issuer outstanding on the date of original issue
hereof and the date of its issuance and delivery to the original
purchaser, does not exceed any constitutional, or statutory
limitation of indebtedness .'
IN WITNESS WHEREOF, the City of Rosemount, Dakota County,
Minnesota, by its City Council has caused this Bond to be
executed on its behalf by the facsimile signatures of its Mayor
and its Clerk, the corporate seal of the Issuer having been
intentionally omitted as permitted by law.
367267.1 1�
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RESOLUTION 97 -
Date of Registration: Registrable by:
Payable ats
BOND REGISTRAR'S CITY OF ROSEMOUNT,
CERTIFICATE OF DAKOTA COUNTY, MINNESOTA
AUTHENTICATION
This Bond is one of the
Bonds described in the /s/ Facsimile
Resolution mentioned Mayor
within.
/s/ Facsimile
Clerk
Bond Registrar
By :
Authorized Signature
3b7267.1 1 1
RESOLUTION 9
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ON REVERSE OF BOND ��,
Redemption. Al1 Bonds of this issue (the "Bonds") maturing in
the years 2006 through 2009, both inclusive, are subject to
redemption and prepayment at the option of the Issuer on
February 1, 2005, and on any date thereafter at a price of par
plus accrued interest . Redemption may be in whole or in part of
the Bonds subject to prepayment. If redemption is in part, the
City shall determine the maturities and principal amount within
each maturity to be prepaid; and if only part of the Bonds having
a common maturity date are called for prepayment, the specific
Bonds to be prepaid shall be chosen by lot by the Bond Registrar.
Bonds or portions thereof called for redemption shall be due and
payable on the redemption date, and interest thereon shall cease
to accrue from and after the redemption date. Mailed notice of
redemption shall be given to the paying agent and to each
affected Holder of the Bonds .
Notice of Redemption. Mailed notice of redemption shall be given
to the paying agent and to each affected Holder of the Bonds . In
the event any of the Bonds are called for redemption, written
notice thereof will be given by first class mail mailed not more
than sixty (60) and not less than thirty (30) days prior to the
redemption date to each Holder of Bonds to be redeemed.
Notation of Bonds after Partial Redemption. Upon a partial
redemption of this Bond which results in the stated amount hereof
being reduced, the Holder may in its discretion make a notation
on the panel provided herein of such redemption, stating the
amount so redeemed. Such notation, if made by the Holder, shall
be for reference only, and may not be relied upon by any other
person as being in any way determinative of the principal amount
of the Bond outstanding, unless the Bond Registrar has signed the
appropriate column of the panel. Otherwise, the Holder may
surrender this Bond to the Bond Registrar (with, if the Issuer or
Bond Registrar so requires, a written instrument of transfer in
form satisfactory to the Issuer and Bond Registrar duly executed
by the Holder thereof or his, her or its attorney duly authorized
in writing) and the Issuer shall execute (if necessary) and the
Bond Registrar shall authenticate and deliver to the Holder of
such Bond, without service charge, a new Bond of the same series
having the same stated maturity and interest rate and of the
authorized denomination in aggregate principal amount equal to
and in exchange for the unredeemed portion of the principal of
the Bond so surrendered.
367267.1 1 2
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RESOLUTION 97 -
Issuance • Purpose; General Oblictation. This Bond is one of an
issue in the total principal amount of $1, 595, 000, all of like
date of original issue and tenor, except as to number, maturity,
interest rate and denomination, which Bond has been issued
pursuant to and in full conformity with the Constitution and laws
of the State of Minnesota and pursuant to a resolution adopted by
the City Council of the Issuer on November 18, 1997 (the
"Resolution" ) , for the purpose of providing funds to finance the
costs of various improvement projects within the jurisdiction of
the Issuer. This Bond is payable out of the General Obligation
Improvement Bonds, Series 1997B Fund of the Issuer. This Bond
constitutes a general obligation of the Issuer, and to provide
moneys for the prompt and full payment of its principal, premium,
if any, and interest when the same become due, the full faith and
credit and taxing powers of the Issuer have been and are hereby
irrevocably pledged. I
Denominations; Exchanqe; Resolution. The Bonds are issuable �I
solely as fully registered bonds in the Authorized Denominations
(as defined in the Resolution) and are exchangeable for fully ',
registered Bonds of other Authorized Denominations in equal
aggregate principal amounts at the principal office of the Bond
Registrar, but only in the manner and subject to the limitations
provided in the Resolution. Reference is hereby made to the
Resolution for a description of the rights and duties of the Bond
Registrar. Copies of the Resolution are on file in the principal
office of the Bond Registrar.
Transfer. This Bond is transferable by the Holder in person or
by his, her or its attorney duly authorized in writing at the
principal office of the Bond Registrar upon presentation and
surrender hereof to the Bond Registrar, all subject to the terms
and conditions provided in the Resolution and to reasonable
regulations of the Issuer contained in any agreement with the
Bond Registrar. Thereupon the Issuer shall execute and the Bond
Registrar shall authenticate and deliver, in exchange for this
Bond, one or more new fully registered Bonds in the name of the
transferee (but not registered in blank or to "bearer" or similar
designation) , of an Authorized Denomination or Denominations, in
aggregate principal amount equal to the principal_ amount of this
Bond, of the same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss. The Bond Registrar may require
payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or
367267.1 1 3
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RESOLUTION 97 -
exchange of this Bond and any legal or unusual costs regarding I
transfers and lost Bonds .
Treatment of Registered Owners. The Issuer and Bond Registrar li
may treat the person in whose name this Bond is registered as the �
owner hereof far the purpose of receiving payment as herein ��'
provided (except as otherwise provided on the reverse side hereof i
with respect to the Record Date) and for all other purposes, ',
whether or not this Bond shall be overdue, and neither the Issuer '
nor the Bond Registrar shall be affected by notice to the �
contrary. '
Authentication. This Bond shall not be valid or become '
obligatory for any purpose or be entitled �o any security unless ',
the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
4ualified Tax-Exempt Obligation. This Bond has been designated
by the Issuer as a "qualified tax-exempt obligation" for purposes
of Section 265 (b) (3) of the Internal Revenue Code of 1986, as
amended.
ABBREVIATIONS
The following abbreviations, when used in the inscription on the
face af this Bond, shall be construed as though they were written
out in full according to applicable laws or regulations :
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship
and not as tenants in common
UTMA - as custodian for
(Cust) (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used
though not in the above list .
367267.1 1 4
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RESOLUTION 97 -
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and
transfers unto
the within Bond and does
hereby irrevocably constitute and appoint
attorney to transfer the Bond on the books kept for the
registration thereof, with full power of substitution in the
premises.
Dated:
Notice: The assignor' s signature to this assignment must
correspond with the name as it appears upon the
face of the within Bond in every particular,
without alteration or any change whatever.
Signature Guaranteed:
Signature (s) must be guaranteed by a national bank or trust
company or by a brokerage firm having a membership in one of the
major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240 . 17 Ad-15 (a) (2) .
The Bond Registrar will not effect transfer of this Bond unless
the information concerning the transferee requested below is
provided. ,
Name and Address : '
(Include information for a11 joint owners '
if the Bond is held by joint account . ) ''
367267.7 1 5
RESOLUTION 97 -
,
[Use only for Bonds when they are
Registered in Book Entry On1y System]
PREPAYMENT SCHEDULE
This Bond has been prepaid in part on the date (s? and in the
amount (s? as follows :
Authorized Signature
Date Amount of Holder
367267.1 1 6
RESOLUTION 97 -
8 . Execution• Temporary Bonds . The Bonds shall be printed (or,
at the request of the Purchaser, typewritten) executed on behalf
of the City by the signatures of its Mayor and Clerk and be
sealed with the seal of the City; provided, however, that the
seal of the City may be a printed (or, at the request of the
Purchaser, photocopied) facsimile; and provided further that both
of such signatures may be printed (or, at the request of the
Purchaser, photocopied} facsimiles and the corporate seal may be
omitted on the Bonds as permitted by law. In the event of
disability or resignation or other absence of either such
officer, the Bonds may be signed by the manual or facsimile
signature of that officer who may act on behalf of such absent or
disabled officer. In case either such officer whose signature or
facsimile of whose signature shall appear on the Bonds shall
cease to be such officer before the delivery of the Bands, such
signature or facsimile shall nevertheless be valid and sufficient
for all purposes, the same as if he or she had remained in office
until delivery. The City may elect to deliver, in lieu of
printed definitive bonds, one or more typewritten temporary bonds
in substantially the form set forth above, with such changes as
may be necessary to reflect more than one maturity in a single
temporary bond. Such temporary bonds may be executed with
photocopied facsimile signatures of the Mayor and Clerk. Such
temporary bonds shail, upon the printing of the definitive bonds
and the execution thereof, be exchanged therefor and cancelled.
9 . Authentication. No Bond shall be valid or obligatory for any
purpose or be entitled to any security or benefit under this
resolution unless a Certificate of Authentication on such Bond,
substantially in the form hereinabove set forth, shall have been
duly executed by an authorized representative of the Bond
Registrar. Certificates of Authentication on different Bonds
need not be signed by the same person. The Bond Registrar shall
authenticate the signatures of officers of the City on each Bond
by execution of the Certificate of Authentication on the Bond and
by inserting as the date of registration in the spacs provided
the date on which the Bond is authenticated, except that for '
purposes of delivering the original Bonds to the Purchaser, the ',
Bond Registrar shall insert as a date of registration the date af ,
original issue, which date is December 1, 1997 . The Certificate
of Authentication so executed on each Bond shall be conclusive
evidence that it has been authenticated and delivered under this
resolution.
10 . Registration• Transfer; Exchanae. The City will cause to be
kept at the principal office of the Bond Registrar a bond
367267.1 1�
RESOLUTION 97 -
register in which, subject to such reasonable regulations as the
Bond Registrar may prescribe, the Bond Registrar shall provide
for the registration of Bonds and the registration of transfers
of Bonds entitled to be registered or transferred as herein
provided. .
Upon surrender for transfer of any Bond at the principal office
of the Bond Registrar, the City shall execute (if necessary) , and
the Bond Registrar shall authenticate, insert the date of
registration (as provided in paragraph 9) of, and deliver, in the
name of the designated transferee or transferees, one or more new
Bonds of any Authorized Denomination or Denominations of a like
aggregate principal amount, having the same stated maturity and
interest rate, as requested by the transferor; provided, however,
that no Bond may be registered in blank or in the name of
"bearer" or similar designation.
At the option of the Holder, Bonds may be exchanged for Bonds of`
any Authorized Denomination or Denominations of a like aggregate
principal amount and stated maturity, upon surrender of the Bonds
to be exchanged at the principal office of the Bond Registrar.
Whenever any Bonds are so surrendered for exchange, the City
shall execute (if necessary) , and the Bond Registrar shall
authenticate, insert the date of registration of, and deliver the
Bonds which the Holder making the exchange is entitled to
receive.
Al1 Bonds surrendered upon any exchange or transfer provided for
in this resolution shall be promptly cancelled by the Bond
Registrar and thereafter disposed of as directed by the City.
All Bonds delivered in exchange for or upon transfer of Bonds
shall be valid general obligations of the City evidencing the
same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or
transfer.
Every Bond presented or surrendered for transfer or exchange
shall be duly endorsed or be accompanied by a written instrument
of transfer, in form satisfactory to the Bond Registrar, duly
executed by the Holder thereof or his, her or its attorney duly
authorized in writing.
The Bond Registrar may require payment of a sum sufficient to
cover any tax or other governmental charge payable in connection
367267.1 1 8
RESOLUTION 97 -
with the transfer or exchange of any Bond and any legal or
unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable regulations of the
City contained in any agreement with the Bond Registrar,
including regulations which permit the Bond Registrar to close
its transfer books between record dates and payment dates . The
Administrator is hereby authorized to negotiate and execute the
terms of said agreement .
11 . Rights Upon Transfer or Exchancre. Each Bond delivered upon
transfer of or in exchange for or in lieu of any other Bond shall
carry all the rights to interest accrued and unpaid, and to
accrue, which were carried by such other Bond.
12 . Interest Pavment ; Record Date. Interest on any Bond shall
be paid on each Interest Payment Date by check or draft mailed to
the person in whose name the Bond is registered (the "Holder" ) on
the registration books of the City maintained by the Bond
Registrar and at the address appearing thereon at the close of
business on the fifteenth (15th) day of the calendar month next
preceding such Interest Payment Date (the "Regular Record Date") .
Any such interest not so timely paid shall cease to be payable to
the person who is the Holder thereof as of the Regular Record �,
Date, and shall be payable to the person who is the Holder ,
thereof at the close of business on a date tthe "Special Record I�
Date") fixed by the Bond Registrar whenever money becomes
available for payment of the defaulted interest . Notice of the �
Special Record Date shall be given by the Bond Registrar to the
Holders not less than ten (10) days prior to the Special Record
Date .
13 . Treatment of Registered Owner. The City and Bond Registrar
n in whose name an Bo
nd is re iste
red as the
may treat the perso y g
h Bond for the ur ose of receiving payment of
owner of suc p p
rinci al of and remium if an , and interest (subject to the
P P P � Y
' ns in ara ra h 12 above) on, such Bond and for
a ent rovisio g p
P Ym
P P
all other purposes whatsoever whether or not such Bond shall be
overdue, and neither the City nor the Bond Registrar shall be
affected by notice to the contrary.
14 . Deliver�r• A�plication of Proceeds. The Bonds when so
prepared and executed shall be delivered by the Finance Director
to the Purchaser upon receipt of the purchase price, and the
Purchaser shall not be obliged to see to the proper application
thereof .
367267.1 1 9
RESOLUTION 97 -
15 . Fund and Accounts. There is hereby created a special fund
to be designated the "General Obligation Improvement Bonds,
Series 1997B Fund° ithe "Fund") to be administered and maintained
by the Finance Director as a bookkeeping account separate and
apart from all other funds maintained in the official financial
records of the City. The Fund shall be maintained in the manner
herein specified until all of the Bonds and the interest thereon
have been fully paid. There shall be maintained in the Fund two
(2) separate accounts, to be designated the "Construction
Account" and "Debt Service Account'' , respectively.
(i) Construction Account . To the Construction Account there �
shall be credited the proceeds of the sale of the Bonds, less �,
accrued interest received thereon, less any amount paid for the ,
Bonds in excess of $1, 579, 050, and less capitalized interest in '
the amount of $82, 742 {together with interest earnings thereon ,
and subject to such other adjustments as are appropriate to
provide sufficient funds to pay interest due on the Bonds on or
before August 1, 1998) , plus any special assessments levied with
respect to the Improvements and collected prior to completion of
the Improvements and payment of the costs thereof . From the
Construction Account there shall be paid all costs and expenses
of making the Improvements listed in paragraph 16, including the
cost of any construction contracts heretofore let and all other
costs incurred and to be incurred of the kind authorized in
Minnesota Statutes, Section 475 . 65; and the moneys in said
account shall be used for no other purpose except as otherwise
provided by law; provided that the proceeds of the Bonds may also
be used to the extent necessary to pay interest on the Bonds due
prior to the anticipated date of commencement of the collection
of taxes or special assessments herein or hereafter levied or
covenanted to be levied; and provided further that if upon
completion of the Improvements there shall remain any unexpended
balance in the Construction Account, the balance (other than any
special assessments) may be transferred by the Council to the
fund of any other improvement instituted pursuant to Minnesota
Statutes, Chapter 429, and provided further that any special
assessments credited to the Construction Account shall only be
applied towards payment of the costs of the Improvements upon
adoption of a resolution by the City Council determining that the
application of the special assessments for such purpose will not
cause the City to no longer be in compliance with Minnesota
Statutes, Section 475 . 61, Subdivision 1 .
(ii) Debt Service Account . There are hereby irrevocably
appropriated and pledged to, and there shall be credited to, the
367267.1 2 0
RESOLUTION 97 =
Debt Service Account : (a) all collections of special assessments
herein covenanted to be levied with respeet to the Improvements
and either initially credited to the Construction Account and not
already spent as permitted above and required to pay any
principal and interest due on the Bonds or collected subsequent
to the completion of the Improvements and payment of the costs
thereof; (b) all accrued interest received upon delivery of the
Bonds; (c? all funds paid for the Bonds in excess of $1, 579, 050;
(d) capitalized interest in the amount of $82, 742 (together with
interest earnings thereon and subject to such other adjustments
as are appropriate ta provide sufficient funds to pay interest
due on the Bonds on or before August 1, 1998? ; (e) any
collecti.ons of taxes hereafter levied for the payment of the
Bonds and interest thereon; (f} all funds remaining in the
Construction Account after eompletion of the Improvements and
payment of the costs thereof, not so transferred to the account
of another improvement; (g) all investment earnings on funds held
in the Debt Service Account; and (h} any and all other moneys,
which are properly available and are appropriated by the
governing body of the City to the Debt Service Account . The Debt
Service Account shall be used solely to pay the principal and
interest and any premiums for redemption of the Bonds and any
other general obligation bonds of the City hereafter issued by
the City and made payable from said account as provided by law.
No portion of the proceeds of the Bonds shall be used directly or
indirectly to acquire higher yielding investments or to replace
funds which were used directly or indirectly to acquire higher
yielding investments, except (1) for a reasonable temporary
period until such proceeds are needed for the purpose for which
the Bonds were issued and (2) in addition to the above in an i
amount not greater than the lesser of five percent (5%) of the I
proceeds of the Bonds or $100, 000 . To this effect, any proceeds '
of the Bonds and any sums from time to time held in the ',
Construction Account or the Debt Service Aecount (or any other ,
City account which will be used to pay principal or interest to '
become due on the Bonds payable therefrom} , in excess of amounts ,
which under then-applicable federal arbitrage regulations may be '
invested without regard to yield shall not be invested at a yield
in excess of the applicable yield restrictions irnposed by said
arbitrage regulations on such investments after taking into
account any applicable "temporary periods" or "minor portion"
made available under the federal arbitrage regulations. Money in
the Fund shall not be invested in obligatians or deposits issued
by, guaranteed by or insured by the United States or any agency
or instrumentality thereof if and to the extent that such
367267.1 2 1
RESOLUTION 97 -
investment would cause the Bonds to be °federally guaranteed°
within the meaning of Section 149 {b) of the Internal Revenue Code
of 1986, as amended (the "Code") .
16 . Assessments. It is hereby determined that no less than one
hundred percent (100%) of the cost to the City of each
Improvement financed hereunder within the meaning of Minnesota
Statutes, Section 475 . 58, Subdivision l (3) , shall be paid by
special assessments to be levied against every assessable lot,
piece and parcel of land benefitted by any of the Improvements.
The City hereby covenants and agrees that it will let all
construction contracts not heretofore let within one (1) year
after ordering each Improvement financed hereunder unless the
resolution ordering the Improvement specifies a different time
limit for the letting of construction contracts. The City hereby
further covenants and agrees that it will do and perform as soon
as they may be done all acts and things necessary for the final
and valid levy of such special assessments, and in the event that
any such assessment be at any time held invalid with respect to
any lot, piece or parcel of land due to any error, defect, or
irregularity in any action or proceedings taken or to be taken by
the City or the City Council or any of the City officers or
employees, either in the making af the assessments or in the
performance of any condition precedent thereto, the City and the
City Council will forthwith do all further acts ar�d take all
further proceedings as may be required by law to make the
assessments a valid and binding lien upon such property. The
special assessments have heretofore been authorized. Subject to
such adjustments as are required by conditions in existence at
the time the assessments are levied, it is hereby determined that
the assessments shal7. be payable with general taxes for the years
shown below in equal, consecutive, annual installments of
principal, and with interest on the declining balance of all such
assessments at a rate per annum not greater than the maximum
permitted by law and not less than % per annum:
Improvement Collection
Desianation Amount Levy Years Years
Biscayne Point #285 $ 761,451 1998-2007 1999-2008
Brockway Draw Trunk 483, 738 1998-2007 1999-2008
Sanitary Sewer #286
' Phase I
Shannon Pond East 2nd 349, 812 1998-2007 1999-2008
Addition #283
367267.1 2 2
. _ ._ _ _ .
RESOLUTION 97 - I
At the time the assessments are in fact levied the City Council I'i
shall, based on the then-eurrent estimated collections of the ��
assessments, make any adjustments in any ad valorem taxes '
required to be levied in order to assure that the City continues ',
to be in compliance with Minnesota Statutes, Section 475 . 61, '
Subdivision 1. '
17 . Coverac�e Test . Collections of special assessments and other
revenues herein pledged for the payment of the Bonds, will
produce at least five percent (5%) in excess of the amount needed
to meet when due the principal and interest payments on the
Bonds .
18 . General Oblictation Pledqe. For the prompt and full payment
of the principal and interest on the Bonds, as the same
respectively become due, the full faith, credit and taxing powers
of the City shall be and are hereby irrevocably pledged. If the
balance in the Debt Service Account is ever insufficient to pay
all principal and interest then due on the Bonds and any other
bonds payable therefrom, the deficiency shall be promptly paid
out of any other funds of the City which are available for such
purpose, and such other funds may be reimbursed with or without
interest from the Debt Service Account when a sufficient balance
is available therein.
19 . Certificate of Rectistration. The Clerk is hereby directed
to file a certified copy of this resolution with the County
�uditor/Treasurer of Dakota County, Minnesota, together with such
other information as he or she shall require, and to obtain the
County Auditor' s certificate that the Bonds have been entered in
the County Auditor/Treasurer' s Bond Register.
20 . Records and Certificates. The officers of the City are
hereby authorized and directed to prepare and furnish to the
Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and
records of the City relating to the Bonds and to the financial
condition and affairs of the City, and such other affidavits,
certificates and information as are required to show the facts
relating to the legality and marketability of the Bonds as the
same appear from the books and records under their custody and
control or as otherwise known to them, and all such certified
copies, certificates and affidavits, including any heretofore
furnished, shall be deemed representations of the City as to the
facts recited therein.
367267.1 2 3
RESOLUTION 97 -
21. Neaative Covenant as to Use of Proceeds and Improvements.
The City hereby covenants not to use the proceeds of the Bonds or
to use the Improvements, or to cause or permit them to be used,
or to enter into any deferred payment arrangements for the cost
of the Improvements, in such a manner as to cause the Bonds to be
"private activity bonds" within the meaning of Sections 103 and
141 through 150 of the Code.
22 . Tax-Exempt Status of the Bonds; Rebate. The City sha11
comply with requirements necessary under the Code to establish
and maintain the exclusion from gross income under Section 103 of
the Code of the interest on the Bonds, including without
limitation (1) requirements relating to temporary periods for
investments, (2) limitations on amounts invested at a yield
greater than the yield on the Bonds, and (3) the rebate of excess
investment earnings to the United States if the Bonds (together
with other obligations reasonably expected to be issued and
outstanding at one time in this calendar year) exceed the
small-issuer exception amount of $5, 000, 000 .
For purposes of qualifying for the exception to the
federal arbitrage rebate requirements for governmental units
issuing $5, 000, 000 or less of bonds, the City hereby finds,
determines and declares that (1) the Bonds are issued by a
governmental unit with general taxing powers, (2) no Bond is a
private activity bond, (3) ninety-five percent (95%) or more of
the net proceeds of the Bonds are to be used for local
governmental activities of the City (or of a governmental unit
the jurisdiction of which is entirely within the jurisdiction of
the City) , and (4) the aggregate face amount of all tax-exempt
bonds (other than private activity bonds) issued by the City (and
all subordinate entities thereof, and all entities treated as one
issuer with the City) during the calendar year in which the Bonds
are issued and outstanding at one time is not reasonably expected
to exceed $5, 000, 000, all within the meaning of Section
148 (f) (4) (D) of the Code .
23 . Desiqnation of Qualified Tax-Exempt ObliQations. In order
to qualify the Bonds as "qualified tax-exempt obligations° within
the meaning of Section 265 (b) (3) of the Code, the City hereby
makes the following factual statements and representations :
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as defined in
Section 141 of the Code;
367267.1 2 4
RESOLUTION 97 -
(c? the City hereby designates the Bonds as "qualified
tax-exempt obligations" for purposes of Sectian 265 (b) (3) of the
Code;
(d) the reasonably anticipated amount of tax-exempt obligations
(other than private activity bonds, treating qualified 501 (c) (3)
bonds as not being private activity bonds) which will be issued
by the City (and all entities treated as one issuer with the
City, and all subordinate entities whose obligations are treated
as issued by the City) during this calendar year 1997 will not
exceed $10, 000, 000; and
(e) not more than $10,000, 000 of obligations issued by the City
during this calendar year 1997 have been designated for purposes
of Section 265 (b) (3) of the Code.
The City shall use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate
the designation made by this paragraph.
24 . Defeasance . When all Bonds have been discharged as provided
in this paragraph, all pledges, cavenants and other rights
granted by this resolution to the registered holders of the Bonds
shall, to the extent permitted by law, cease. The City may
discharge its obligations with respect to any Bonds which are due
on any date by irrevocably depositing with the Bond Registrar on
or before that date a sum sufficient for the payment thereof in
full; or if any Bond should not be paid when due, it may
nevertheless be discharged by depositing with the Bond Registrar
a sum sufficient for the pa�rment thereof in full with interest
accrued to the date of such deposit. The City may also discharge
its obligations with respect to any prepayable Bonds called for
redemption on any date when they are prepayable according to
their terms, by depositing with the Bond Registrar on or before
that date a sum sufficient for the payment thereof in full,
provided that notice of redemption thereof has been duly given.
The City may also at any time discharge its obligations with
respect to any Bonds, subject to the provisions of law now or
hereafter authorizing and regulating such action, by depositing
irrevocably in escrow, with a suitable banking institution
qualified by law as an escrow agen� for this purpose, cash or
securities described in Minnesota Statutes, Section 475 .67,
Subdivision 8, bearing interest payable at such times and at such
rates and maturing on such dates as shall be required, subject to
sale and/or reinvestment, to pay all amounts to become due
thereon to maturity or, if notice of redernption as herein
367267.1 2 5
RESOLUTION 97 -
required has been duly provided for, to such earlier redemption
date.
25 . Compliance with Reimbursement Bond Recrulations. The
provisions of this paragraph are intended to establish and
provide for the City' s compliance with United States Treasury
Regulations Section 1 . 150-2 (the "Reimbursement Regulations")
applicable to the "reimbursement proceeds" of the Bonds, being
those portions thereof which will be used by the City to
reimburse itself for any expenditure which the City paid or will
have paid prior to the Closing Date (a "Reimbursement
Expenditure") .
The City hereby certifies and/or covenants as follows :
(a) Not later than 60 days after the date of payment of a
Reimbursement Expenditure, the City (or person designated to
do so on behalf of the City) has made or will have made a
written declaration of the City' s official intent (a I,
"Declaration") which effectively (i) states the City' s j
reasonable expectation to reimburse itself for the payment I,
of the Reimbursement Expenditure out of the proceeds of a I
subsequent borrowing; (ii) gives a general and functional ',
description of the property, project or program to which the '
Declaration relates and for which the Reimbursement '
Expenditure is paid, or identifies a specific fund or
account of the City and the general functional purpose
thereof from which the Reimbursement Expenditure was to be
paid (collectively the "Project") ; and (iii) states the
maximum principal amount of debt expected to be issued by
the City for the purpose of financing the Project; provided,
however, that no such Declaration shall necessarily have
been made with respect to: (i) "preliminary expenditures"
for the Project, defined in the Reimbursement Regulations to
include engineering or architectural, surveying and soil
testing expenses and similar prefatory costs, which in the
aggregate do not exceed 200 of the "issue price° of the
Bonds, and (ii) a de minimis amount of Reimbursement
Expenditures not in excess of the lesser of $100, 000 or 5a
of the proceeds of the Bonds . Notwithstanding the
foregoing, with respect to any Declaration made by the City
between January 27, 1992 and June 30, 1993, with respect to
a Reimbursement Expenditure made prior to March 2, 1992, the
City hereby represents that there exists objective evidence,
that at the time the Expenditure was paid the City expected
to reimburse the cost thereof with the proceeds of a
367267.1 2 6
. RESOLUTION 97 -
borrowing (taxable or tax-exempt) and that expectation was
reasonable.
(b) Each Reimbursement Expenditure is a capital expenditure or a
cost of issuance of the Bonds or any of the other types of
expenditures described in Section 1.150-2 (d) (3) of the
Reimbursement Regulations.
(c) The "reimbursement allocation" described in the
Reimbursement Regulations for each Reimbursement Expenditure
shall and will be made forthwith following (but not prior
to) the issuance of the Bonds and in all events within the
period ending on the date which is the later of 18 months
after payment of the Reimbursement Expenditure or three
years after the date on which the Project to which the
Reimbursement Expenditure relates is first placed in
service.
(d) Each such reimbursement allocation will be made in a writing
that evidences the City' s use of Bond proceeds to reimburse
the Reimbursement Expenditure and, if made within 30 days
after the Bonds are issued, shall be treated as made on the
day the Bonds are issued.
Provided, however, that the City may take action contrary to any
of the foregoing covenants in this paragraph 25 upon receipt of
an opinion of its Bond Counsel for the Bonds stating in effect
that such action will not impair the tax-exempt status of the
Bonds .
26 . Continuing Disclosure.
(a) The City is the sole obligated person with respect to the
Bonds . The City hereby agrees, in accordance with the provisions
of Rule 15c2-12 (the "Rule" ) , promulgated by the Securities and
Exchange Commission (the "Commission") pursuant to the Securities
Exchange Act of 1934, as amended, and a Continuing' Disclosure
Undertaking (the "Undertaking" 1 hereinafter described to:
(1) provide or cause to be provided to each nationally
recognized municipal securities information repository ( "NRMSIR" )
and to the appropriate state information depository ("SID") , if
any, for the State of Minnesota, in each case as designated by
the Commission in accordance with the Rule, certain annual
financial information and operating data in accordance with the
367267.1 2 7
� _
; RESOLUTION 97 -
Undertaking. The City reserves the right to modify from time to
time the terms of the Undertaking as provided therein.
(2) Provide or cause to be provided, in a timely manner, to (i)
each NRMSIR or to the Municipal Securities Rulemaking Board
( "MSRB") and (ii) the SID, notice of the occurrence of certain
material events with respect to the Bonds in accordance with the
Undertaking.
(3} Provide or cause to be provided, in a timely manner, to (i)
each NRMSIR or to the MSRB and (ii) the SID, notice of a failure
by the Issuer to provide the annual financial information with
respect to the Issuer described in the Undertaking.
(4) The City agrees that its covenants pursuant to the Rule set
forth in this paragraph and in the Undertaking is intended to be
for the benefit of the holders of the Bonds and shall be
enforceable on behalf of such holders; provided that the right to
enforce the provisions of these covenants shall be limited to a
right to obtain specific enforcement of the City' s obligations
under the covenants .
(b) The Mayor and Clerk of the City, or any other officer of the
City authorized to act in their place, (the "Officers" ) are
hereby authorized and directed to execute on behalf of the City
the Undertaking in substantially the form presented to the City
Council, subject to such modifications thereof or additions
thereto as are (i) consistent with the requirements under the
Rule, (ii) required by the purchaser of the Bonds and (iii)
acceptable to the Officers.
27 . Severabilitv. If any section, paragraph or provision of
this resolution shall be held to be invalid ar unenforceable for
any reason, the invalidity or unenforceability of such section,
paragraph or provision shall not affect any of the remaining
provisions of this resolution.
28 . Headinas . Headings in this resolution are included for
convenience of reference only and are not a part hereof, and
shall not limit or define the meaning of any provision hereof .
367267.7 2 8
RESOLUTION 97 -
ADOPTED this 18th day of November, 1997.
Cathy Busho, Mayor
ATTEST:
Susan M. Walsh, City Clerk
Motion by: Seconded by:
Voted in favor:
Voted Against :
�'� �
367267.1 2 9
RESOLUTION 97 -
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 HEREBF 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 considering
offers for, and awarding the sale of, $1, 595, 000 General
Obligation Improvement Bonds, Series 1997B of said City.
WITNESS my hand this day of , 1997 .
Clerk
367267.1 3� '
1 �
OFFICIAL STATEMfNTbATED NOVEMBER 4, 1997
Rating: Requested from Moody's
NEVII ISSUE Investors Service
ln the opinion of Briggs and Morgan, Professiona! Association, Bond Counsel, based on present federal and Minnesofa laws,
r�gulations, rulings and decisions, at the time of their issuance and delivery to the original purchaser, interest on the Bonds is
excluded from gross income for purposes of United States income tax and is excluded, to the same extent, in computing both gross
income and taxable net income for purposes of State of Minnesofa income tax (other than Minnesota franchise taxes measured by
income and imposed on corporations and financial institutions), and is not an ►tem of tax preference for purposes of fhe federal
altemative minimum tax imposed on individuals and corporations or the Minnesota altemative minimum tax applicable to individuals,
estates or trusts provided, however, that for the purpose of computing the federa!aitemative minimum tax imposed on corAorations,
interest on the Bonds is taken into account in determining adjusted current eamings. No opinion will be expressed by Bond Counse/
regarding other federal or state tax consequences caused by the receipt or accrual of interest on the Bonds or arising with respect to
ownership of the Bonds. See "Tax Exempt►on"herein.
• $1,595,000
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 19976
(Book Entry Only)
Dated Date: December 1, 1997 Interest Due: Each February 1 and August 1,
commencing August 1, 1998
The Bonds will mature February 1 as follows:
2000 $190,000 2003 $160,000 2006 $155,000 2008 $145,000
2001 $170,000 2004 $160,000 2007 $150,000 2009 $145,000
2002 $165,000 2005 $155,000
The City may elect on February 1, 2005, and on any day thereafter, to prepay the Bonds due on or after
February 1, 2006 at a price of par plus accrued interest.
The Bonds will be general obligations of the City for which the City pledges its full faith and credit and power to
levy direct general ad valorem taxes. In addition, the City will pledge special assessrnents against benefited
property.
Proposals shall be for not less than $4,579,050 and accrued interest on the total principal amount of the
Bonds. Proposals shall be accompanied by a good faith deposit in the form of a certified or cashier's check or
Financial Surety Bond, payable to the order af the City, in the amount of $15,950. Proposals shall specify
rates in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. The Bonds will be
awarded on the basis of True Interest Cosf(TIC).
The Bonds will be bank-qualified tax-exemp# obligations pursuant to Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended, and will not be subject to the altemative minimurn tax for individuals.
The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the
name of Cede & Co., as nominee of The Depository Trust Company ("DTC"). DTC wilt act as securities
depository of the Bonds. Individual purchases may be made in book-entry form only, in the principaf amount
of$5,000 and integeal multiples thereof. Purchasers will not receive certificates representing their interest in
the Bonds purchased. (See "Book Entry System" herein.) The Gity will name the Registrar and pay for
registration services. Certificates will be available for delivery at QTC within 40 days after award.
PROPOSALS RECEIVED: November 18, 1997 (Tuesday) until 11:30 A.M., Central Time
AWARD: November 18, 1997 (Tuesday}at 7:30 P.M., CentraF Time
� Further information may be obtained from SPRINCSTED
S PR I N G S T E D ���o�Po�ated, Financial Advisor to the lssuer, 85 East
Seventh Place, Suite i00, Saint Paul, Minnesota 55101
Public Finance Advisors (612)223-3000
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission,
this document, as the same may be supplemented or corrected by the Issuer from time to time
(collectively, the "Official Statement"), may be treated as an Official Statement with respect to
the Obligations described herein that is deemed final as of the date hereof (or of any such
supplement or correction) by the Issuer, except for the omission of certain information referred
to in the succeeding paragraph.
The Official Statement, when further supplemented by an addendum or addenda specifjring
the maturity dates, principal amounts and interest rates of the Obligations, together with any
other information required by law, shall constitute a "Final Official Statement" of the lssuer with
respect to the Obligations, as that term is defined in Rule 15c2-12. Any such addendum shall, r
on and after the date thereof, be fully incorporated herein and made a part hereof by
reference.
By awarding the Obligations to any underwriter or underwriting syndicate submitting a Proposal
therefor, the Issuer 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 Obligations are awarded copies of the Official Statement and the addendum or
addenda described in the preceding paragraph in the amount specified in the Terms of
ProposaL
The Issuer designates the senior managing underwriter of the syndicate to which the
Obligations 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 Obligations agrees thereby that if its bid is accepted by the Issuer (i) it shall
accept such designation and (ii) it shall enter into a contractual relationship with all �
Participating Underwriters of the Obligations for purposes of assuring the receipt by each such
Participating Underwriter of the Final Official Statement.
No dealer, broker, salesman or other person has been authorized by the Issuer to give any
information or to make any representations with respect to the Obligations other than as
contained in the Official Statement or the Final Official Statement, and, if, given or made, such
other information or representations must not be relied upon as having been authorized by the
Issuer. Certain information contained in the Official Statement and the Final Official Statement
may have been obtained from sources other than records of the Issuer and, while believed to
be reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND
EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL
STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE
OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE
UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPUCATION THAT THERE
HAS BEEN NO CHANGE IN THE AFFAIRS OF THE ISSUER SINCE THE DATE THEREOF. x
References herein to laws, rules, regulations, resolutions, agreements, reports and other
documents do not purport to be comprehensive or definitive. All references to such documents
are qualified in their entirety by reference to the particular document, the full text of which may
contain qualifications of and exceptions to statements made herein. Where full texts have not
been included as appendices to the Official Statement or the Final Official Statement, they will
be fumished on request.
TABLE OF CONTENTS
Pa e s
Termsof Proposal .......-.•................................................................................................. i-iv
,
Schedule of Bond Years .................................................................................................. v
Introductory Statement......_.................................•---..............................................--•....._., 1
Continuing Disclosure....................................................................................................... 1
TheBonds..............................................................................................................•--•...... 2-3
Authority and Purpose................................. ...................................... ...............•--........... 4
Securityand Financing..................................................................................................... 4
FutureFinancing...................---..----.... ................................................ ..............._-•-•-........ 4
Litigation..............................e................----.........-•----.....................................----................ 4
Legality....................................................................................'............_........._.................. 4-5
TaxExemption............................................................................_............._........,........._.... 5
Other Federal Tax Considerations.................................................................................... 5-6
Bank-Qualified Tax-Exempt Obligations............................................,......._.. ............_....:. 6
Rating.................. .............................................................................. ............................. 6
FinancialAdvisor.................................................. ................... ....................................... 7
Certification................................•----.............................................................._.............---... 7
City Property Values............................................................,............................----............ 8-9
CityIndebtedness............................................................................................................. 9-14
CityTax Rates, Levies and Collections.......................................a..........._._.........._............ 14
Fundson Hand................................................................................................................. 15
CityFnvestments............................................................................................................... 15-16
General Information Concerning the City.................................. ....................................... '16-20
Governmental Organization and Services.............................................••-..._..................... 20 21
Proposed Form of Legal Opinion .........................,......... ....._....................__............ Appendix I
Continuing Disclosure Undertaking ................................ ............................ ........... Appendix II
Summary of Tax Levies, Payment Prowsions, and
Minnesota Real Property Valuation .......,........... ............. .............................. ..... Appendix I11
Annual Financial Statements ......................._...................._.........._.......---................ ApPendix N
ProposalForms ...........................................................__.............. .............. ........... Inserted
;
,
THE CITY HAS AUTHORIZED SPRlNGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THf FOLLOWING BASIS:
TERMS OF PROPOSAL
$9,595,000
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 Piace, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
of the Bonds wiUbe 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) 223-3000 or fax (612) 223-3002 for inclusion in the
submitted Proposal. Springsted will assume no liability for the inability of#he bidder to reach
Springsted prior to the time of sale specified above. Proposais may also be filed electronically
via PARITY, 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 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 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.
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 Augus# 1, 1998. Interest will
be computed on the basis of a 360-day year of finrelve 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
.. � ..
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 & Co. as nominee of The Depository Trust Company ("DTC"),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the •
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the �
Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The 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 wil( notify DTC ofi the particular amount of such maturity to be
prepaid. DTC will determine by lot the arnount 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 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 arnount 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 prior to the opening of the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financiat 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
settiement 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 meefiing of the
" �e —
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 ascending order. Bonds of the same maturity shall bear a single
rate from the date of the Bonds to #he 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 af any such commitment shafl 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 shail 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 shaU 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 r.efusal 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 awartl, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery wi11 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 a2:00 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.
- ii� -
�
CONTINUING DISCLOSURE
_ On the date of the actual issuance and delivery of the Bonds, the City wiil 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 R
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 shalJ 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 COUNGIL
/s/Susan Walsh
City Clerk
-� sd-
f
SCHEDULE OF BOND YEARS
$1,595,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1997B
Cumulative
• Year Principal Bond Years Bond Years
2000 $190,000 411.6667 411 .6667
' 2001 $170,000 538.3333 950.0000
2002 $165,000 687.5000 1 ,637.5000
2003 $160,000 826.6667 2,464.t667
2004 $160,000 986.6667 3,450.8334
2005 $155,000 1 ,110.8333 4,561 .6667
2006 $155,000 c 1 ,265.8333 5,827.50U0
2007 $150,000 c 1 ,375.Od00 7,202.5000
2008 $145,000 c 1 ,474.1667 8,676.6667
2009 $145,000 c 1 ,619.1667 10,295.8334
Average Maturity: 6.46 Years
Bonds Dated: December 1 , 1997
Interest Due: August 1 , 1998 and each February 1 and August 1 to maturity.
Principal Due: February 1 , 2000-2009 inclusive.
Optional Call: Bonds maturing on or afiter February 1 , 2006 are callable
commencing February 1 , 2005 and any date thereafiter at par.
(See Terms of Proposal.)
c: subject to optional call
- v-
OFFICIAL STATEMENT
$1,595,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1997B
(BOOK ENTRY ONLY)
INTRODUCTORY STATEMENT
This Official Statement contains certain information relating to the Gity of Rosemount,
Minnesota (the "City") and its issuance of$1,595,000 General Obligation Improvement Bonds,
Series 1997B (the "Bonds" or the "Issue"). The Bonds are being issued pursuant to Minnesota
Statutes, Chapters 429 and 475 and are general obligations of the City for which the City
pledges its full faith and credit and power to levy direct general ad valorem taxes without limit as
to rate or amount.
Inquiries may be directed to Mr. Thomas Burt, City Administrator, City of Rosemount, 2875-
145th Street West, Rosemount, Minnesota 55068-0510, or by te{ephoning (612) 423-4411.
Inquiries may also be made to Springsted Incorporated, 85 East Seventh Place, Suite 100, St.
Paul, Minnesota 55101-2143, or by telephoning (612) 223-3000. If information of a specific
legal nature is desired, requests may be directed to Ms. Mary Dyrseth, Briggs and Morgan of
St. Paul, Minnesota, Bond Counsel, 2200 First National Bank Building, St. Paul, Minnesota
55101, or by telephoning (612) 223-6625.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with SEC Rule 15c2-12 (the "Rule"), pursuant
to the Award Resolution and Continuing Disclosure Undertaking to be executed on behalf of the
City on or before Bond closing, the City has and will covenant (the "Undertaking") for the benefit
of holders or beneficial owners of the Bonds to provide certain financial inforrnation and
operating data relating to the City to certain information repositories annually, and to provide
notices of the occurrence of certain events enumerated in the Rule to certain information
repositories or the Municipal Securities Rulemaking Board and to any state information
depository. The specific nature of the Undertaking, as well as the information to be contained in
the annual report or the notices of material events is set forth in the Continuing Disclosure
Undertaking in substantially the form attached hereto as Appendix II, subject to such
modifications thereof or additions thereto as: (i) consistent with requirements under the Rule,
(ii) required by the purchaser of the Bonds from the City and (iii) acceptable to the Mayor and
Clerk of the City. The City has never failed to comply in all material respects with any previous
undertakings under the Rule to provide annual reports or notices of material events. A failure
by the City to comply with the Undertaking will not constitute an event of default on the Bonds
(although holders or other beneficial owners of the Bonds will have the sole remedy of bringing
an action for specific performance). Nevertheless, such a failure must be reported in
accordance with the Rule and must be considered by any broker, dealer or municipal securities
dealer before recommending the purchase or sale of the Bonds in the secondary market
Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds
and their market price.
- 1 -
THE BONDS
General Description
The Bonds are dated as of December 1, 1997 and issued in book entry form. Interest on the
Bonds is payable August 1, 1998 and semiannualiy thereafter on February 1 and August 1.
Interest will be payable to the holder (initially Cede & Co.) registered on the books of the
Registrar as of the fifteenth day of the calendar month next preceding such interest payment
date. Principal of and interest on the Bonds will be paid as described in the seetion herein
entitled "Book Entry System." Bonds will mature in the amounts and on the dates shown on the �
cover of this Official Statement. The City will name the bond registrar for the Bonds (the
"Registrar").
Optional Redemption
The City may elect on February 1, 2005, and on any day thereafter, to prepay the 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 order as the City shall determine. If a maturity is prepaid only in
part, prepayments will be in increments of $5,000 of principal. All optional prepayments shall
be at a price of par plus accrued interest.
Book-Entry System
The Depository Trust Company ("DTC"), New York, New York, will act as securities depository
for the Bonds. The Bonds will be issued as fully-registered securities registered in the name of
Cede & Co. (DTC's partnership nominee). Qne fully-registered certificate per maturity will be
issued in the principal amount of the Bonds maturing in such year, and will be deposited with
DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a
"banking organization" within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform
Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A
of the Securities Exchange Act of 1934. DTC holds securities that its participants
("Participants") deposit with DTC. DTC also facilitates the settlement among Participants of
securities transactions, such as transfers and pledges in deposited securities through electronic
computerized book entry changes in Participants' accounts, thereby eliminating the need for
physical movement of securities certificates. Direct Participants ("Direct Participants") include
securities brokers and dealers, banks, trust companies, clearing corporations and certain other
organizations. DTC is owned by a number of its Direet Participants and by the New York Stock
Exchange, Inc., the American Stock Exchange, Inc., and the National Association of Securities
Dealers, Inc. Access to the DTC system is also avaiiable to others such as securities brokers
and dealers, banks and trust companies that clear through or maintain a custodial relationship
with a Direct Participant, either directly or indirectly ("Indirect Participants"). The Rules
applicable to DTC and its Participants are on file with the Securities and Exchange
Commission.
Purchases of Bonds under the DTC system must be made by or through Direct Participants,
which will receive a credit for the Bonds on DTC's records. The ownership interest of each
actual purchaser of each Certificate ("Beneficial Owner") is in tum to be recorded on the Direct
and Indirect Participants' records. Beneficial Owners will not receive written confirmation from
DTC of their purchase, but Beneficial Owners are expected to receive written confirmations
providing details of the transaction, as well as periodic statements of their holdings, from the
- 2 -
Direct or Indirect Participant through which the Beneficial Owner entered into the transaction.
Transfers of ownership interest in the Bonds are to be accomplished by entries made on the
books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive
certificates representing their ownership interest in securities, except in the event that use of
the book entry system for the Bonds is discontinued.
To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered
in the name of DTCs partnership nominee, Cede & Ca The deposit of Bonds with DTC and
their registration in the name of Cede & Ca effect no change in beneficial ownership. DTC has
no knowledge of the actual Beneficial Owners of the Bonds. DTC's records reflect only the
� identity of the Direct Participants to whose accounts such Bonds are credited, which may or
may not be the Beneficial Owners. The Participants will remain responsible for keeping
, account of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time.
Redemption notices for the Bonds shall be sent to Cede & Ca. If less than all of the Bonds
within an issue are being redeemed, DTCs practice is to determine by lot the amount of the
interest of each Direct Participant in such issue to be redeemed.
Neither DTC nor Cede & Co. will consent or vote with respect to Bonds_ Under its usual
procedures, DTC mails an Omnibus Proxy to the Registrar as soon as possible after the record
date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct
Participants to whose accounts the Bonds are credited on the record date (identified in a listing ,
attached to the Omnibus Proxy).
Principal and interest payments on the Bonds will be made to DTC, DTC's practice is to credit
Direct Participants' accounts on the payable date in accordance with their respective holdings
shown on DTCs records unless DTC has reason to believe that it will not receive payment on
payable date. Payments by Participants to Beneficial Owners will be govemed by standing
instructions and customary practices, as is the case with securities held for the accounts, of
customers in bearer forrn or registered in "street name," and will be the responsibility of such
Participant and not of DTC, the Registrar,`or the City, subject to any statutory or regulatory
requirements as may be in effect from time to time. Payment of principal and interest to DTC is
the responsibility of the Registrar, disbursement of such payments to Direct Pa�ticipants shall
be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall
be the responsibility of Direct and Indirect Participants.
DTC may discontinue providing its services as securities depository with respect to the Bonds
at any time by giving reasonable notice to the Registrar. Under such circumstances, in the
event that a successor securities depository is not obtained, certificates are required to be
printed and delivered.
The City may decide to discontinue use of the system of book entry transfers through DTC (or a
successor securities depository). ln that event, certificates will be printed and delivered.
The information in this section concerning DTC and DTCs book entry system has been
obtained from sources that the City believes to be reliable, but the City takes no responsibility
for the accuracy thereof.
- 3 -
AUTHORITY AND PURPOSE
The Bonds are being issued to finance three improvement projects within the City that will be
under construction beginning in 1997. The composition of the Issue is as follows:
Project Costs $1,470,470
Capitalized Interest 82,742
Cost of Issuance 25,838
Underwriter's Discount 15,950
Total Bond Issue $1,595,000
.
SECURITY AND FINANCING
In addition to its general obligation pledge, the City pledges the receipt of special assessments
against benefited property for repayment of the Bonds. Special assessments in the principal
amount of $1,595,000 are expected to be filed on or before October 15, 1998 over a term of
ten years with even annual installments of principal and interest charged on the unpaid balance
at a rate of 2% over the net interest rate on the Bonds.
Special assessments will not be filed until the fall of 1998 for first collection in 1999. Therefore,
capitalized interest has been included in the principal amount of the Issue in an amount
sufficient to make interest payments due through February 1, 1999. Thereafter, each August 1
interest payment will be made from first-half collections of special assessments, and each
subsequent February 1 principal and interest payment will be made from second-half
collections, plus surplus first-half collections. The City does not expect to make an ad valorem
tax levy for repayment of the Bonds.
FUTURE FINANCING
The City does not expect any additional borrowing for at least the next 90 days.
LITIGATION
The City is not aware of any threatened or pending litigation affecting the validity of the Bonds
or the City's ability to meet its financial obligations.
LEGALITY
The Bonds are subject to approval as to certain matters by Briggs and Morgan, Professional
Association, of Saint Paul and Minneapolis, Minnesota, as Bond Counsel. Bond Counsel has
not participated in the preparation of this Official Statement and will not pass upon its accuracy,
completeness, or sufficiency. Bond Counsel has not examined, nor attempted to examine or
-4 -
verify, any of the financial or statistical statements or data contained in this Official Statement
and will express no opinion with respect thereto. A legal opinion in substantially the form set
out in Appendix I herein will be delivered at closing.
TAX EXEMPTION
, At closing Briggs and Morgan, Professional Association, Bond Counsel, will render an opinion
that, at the time of their issuance and delivery to the original purchaser, under present federal
and State of Minnesota 1aws, regulations, rulings and decisions (which excludes any pending
� legislation which may have a retroactive effect), the interest on each Bond is excluded from
gross income for purposes of United States income tax and is excluded, to the same extent, in
computing both gross ineome and taxable net income for purposes of State of Minnesota
income tax (other than Minnesota franchise taxes measured by income and imposed on
corporations and financial institutions), and that interest on the Bonds is not an item of tax
preference for purposes of computing the federal alternative minimum tax imposed on
individuals and corporations or the Minnesota altemative minimum tax applicable to individuals,
estates or trusts; provided that interest on the Bonds is subject to federal income taxation to the
extent it is included as part of adjusted current earnings for purposes of computing the
altemative minimum tax imposed on certain corporations. No opinion will be expressed by
Bond Counsel regarding other federal or state tax consequences caused by the receipt or
accrual of interest on the Bonds or arising with respect to ownership of the Bonds. Preservation
of the exclusion of interest on the Sonds from federal gross income and state gross and taxable
net income, however, depends upon compliance by the City with all requirements of the lnternal
Revenue Code of 1986, as amended, (the "Code") that must be satisfied subsequent to the
issuance of the Bonds in order that interest thereon be (or continue to be) excluded from
federal gross income and state gross and taxable net income.
The City will covenant to comply with requirements necessary under the Code to establish and
maintain the Bonds as tax-exempt under Section 103 thereof, including without limitation,
requirements relating to temporary periods for investments and limitations on amounts invested
at a yield greater than the yield on the Bonds.
OTHER FEDERAL TAX CONSIDERATIONS
Property and Casualty Insurance Companies
Property and casualty insurance companies are required to reduce the amount of tax-exempt
interest received or accrued during the taxable year on certain obligations acquired after
August 7, 1986, including interest on the Bonds.
foreign Insurance Companies
Foreign companies carrying on an insurance business in the United States are subject to a tax
on income which is effectively connected with their conduct of any trade or business in the
United States, including "net investment income." Net investment income includes tax-exempt
interest such as interest on the Bonds.
- 5-
Branch Profits Tax
A foreign corporation is subject to a branch profits tax equal to 30% of the "dividend equivalent
amount" for the taxable year. The "dividend equivalent amount" is the foreign corporation's
"effectively connected earnings and profits" adjusted for increase or decrease in "U.S. net
equity." A branch's earnings and profits may include tax-exempt municipal bond interest, such
as interest on the Bonds.
Passive Investment Income of S Corporations
Passive investment income, including interest on the Bonds, may be subject to federal income
taxation under Section 1375 of the Code for an S corporation that has Subchapter C earnings
and profits at the close of the taxable year if more than 25% of the gross receipts of such S "
corporation is passive investment income.
General
The preceding is not a comprehensive list of all federal tax consequences which may arise from
the receipt or accrual of interest on the Bonds. The receipt or accrual of interest on the Bonds
may otherwise affect the federal income tax (or Minnesota income tax or franchise tax) liability
of the recipient based on the particular taxes to which the recipient is subject and the particular
tax status of other items of income or deductions. All prospective purchasers of the Bonds are
advised to consult their own tax advisors as to the tax consequences of, or tax considerations
for, purchasing or holding the Bonds.
BANK-QUALIFIED TAX-EXEMPT OBLIGATIONS
The City will designate the Bonds as "qualified tax-exempt obligations" for purposes of
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the ability of
financial institutions to deduct from income for federal income tax purposes, interest expense
that is allocable to carrying and acquiring tax-exempt obligations. "Qualified tax-exempt
obligations" are treated as acquired by a financial institution before August 8, 1986. Interest
allocable to such obligations remains subject to the 20% disallowance under prior law.
RATING
An application for a rating of the Bonds has been made to Moody's Investors Service
("Moody's"), 99 Church Street, New York, New York. If a rating is assigned, it will reflect only
the opinion of Moody's. Any explanation of the significance of the rating may be obtained only
from Moody's.
There is no assurance that a rating, if assigned, will continue for any given period of time, or
that such rating will not be revised or withdrawn if, in the judgment of Moody's, circumstances
so warrant. A revision or withdrawal of the rating may have an adverse effect on the market
price of the Bonds.
-6 -
FINANCIAL ADVISOR
The City has retained Springsted Incorporated, PublicFinance Advisors, of St. Paul, Minnesota,
as financial advisor (the "Financial Advisor") in connection with the issuance of the Bonds. In
preparing the Official Statement, the Financial Advisor has relied upon governmental officials,
and other sources, who have access to relevant data to provide accurate information for the
Official Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to
independently verify the accuracy of such information_ The Financial Advisor is not a pub{ic
, accounting firm and has not been engaged by the City to compile, review, examine or audit any
information in the Official Statement in accordance with accounting standards. The Financial
Advisor is an independent advisory firm and is not engaged in the business of underwriting,
, trading or distributing municipal securities or other public securities and therefore will not
participate in the underwriting of the Bonds.
CERTIFICATION
The City has authorized the distribution of this Official Statement for use in connection with the
initial sale of the Bonds.
As of the date of the settlement of the Bonds, the Purchaser will be furnished with a certificate
signed by the appropriate officers of the City. The certificate will state that as of the date of the
Official Statement, the Officiat Statement did not and does nat as of the date of the certificate
contain any untrue statement of material fact or omit to state a material fact necessary in order
to make the statements made therein, in light of the circumstances under which they were
made, not misleading.
(The remainder of this page has been intentionaily left blank)
- 7 -
CITY PROPERTY VALUES
1996 Indicated Market Value of Taxable Property: $616,711,605*
' Calculated by dividing the county assessor's estimated market value of$568,608,900 by the 1996
sa/es ratio of 92.2%for the City as determined by the State Department of Revenue.
1996 Taxable Net Tax Capacity: $11,022,093
.
1996 Net Tax Capacity $12,113,851
Less: Captured Tax Increment Tax Capacity (466,021)
Contribution to Fiscal Disparities (1,792,852)
Plus: Distribution from Fiscal Disparities 1,167.115
1996 Taxable Net Tax Capacity $11,022,093
1996 Taxable Net Tax Capacity by Class of Property
CommerciaUlndustrial, Public Utility and
Personal Property� $ 4,471,098 40.6%
Residential Homestead 5,957,065 54A
Apartments 346,757 3.2
Agricultural 220,727 2A
Railroad 26,446 0.2
Total $11,022,093 100.0%
` Reflects adjustments for fiscal disparities and captured tax increment tax capacity.
Trend of Values
Indicated Estimated Taxable Tax
Market Value�a� Market Value Capacitv�bl
1996 $616,711,605 $568,608,100 $11,022,093
1995 575,875,083 522,318,700 10,252,645
1994 507,929,496 463,231,700 9,103,581
1993 446,589,563 419,347,600 8,313,353
1992 418,654,706 378,045,200 7,753,399
�a� Calculated by dividing the county assessor's estimated market value by the sa/es ratio determined for
the City each year by the State Department of Revenue.
�b� See Appendix Ill for an explanation of tax capacity and other Minnesota property tax law.
8 -
Ten of the Largest Taxpayers in the City
1996 Net
Taxpaver Tvpe of Business Tax Capacitv
Great Northern Oil Co./Koch Refining Oil Refinery $2,861,091
Northern States Power Utility 418,706
CF Industries, Inc. (Cenex) Fertilizer 154,201
USPCI Inc. Non-hazardous Waste Containment 136,466
, Continental Nitrogen &
Resources Corp. Fertilizer Blending & Plant Food 119,504
Wintz Companies Trucking/Warehouse 114,876
� Rosemount Properties LLC Retail Shopping Center 108,832
Utilicorp United Inc. (People's
Natural Gas) Utility 100,458
Limerick Way LLC Townhouses 98,594
Dakota Electric Association Utility 86,406
Total $4,199,134�
' Represents 38%of the City's 1996 taxable nef tax capacity.
CITY INDEBTEDNESS
Legal Debt Limit
Debt Limit (2% of Estimated Market Value) $11,372,162
Less: Outstanding Debt Subject to Limit l3,265,000)
Legal Debt Margin at October 2, 1997 $ 8,107,162
General Obligation Debt Supported by Taxes and Tax Increment
PrincipaC
Date Original Final Outstanding
of Issue Amount Purpose Maturitv As of 10-2-97
6-1-88 $1,100,000 Tax Increment 2-1-1999 $ 305,000
11-1-92 1,080,000 Community Center 2-1-2013 950,000*
8-1-93 845,000 Municipat Building Refunding 2-1-2002 625,000*
7-1-96 1,780,000 Fire Station 2-1-2016 1,690,000*
Total $3,570,000
* These/ssues are subject to the statutory debt limit.
- 9- I
General Obligation Debt Supported Primarily by Special Assessments
Principal
Date Original Final Outstanding
of Issue Amount Purqose Maturity As of 10-2-97
6-1-91 $1,180,000 Locallmprovements 2-1-2002 $ 580,000
12-1-91 265,000 Locallmprovements 2-1-2003 150,000
9-1-92 895,000 Locallmprovements 2-1-2004 455,000
11-1-92 1,470,000 Locallmprovements 2-1-2004 1,015,000
8-1-93 555,000 Locallmprovements 2-1-2005 405,000 `
8-1-93 1,415,000 Improvement Refunding 2-1-2001 925,000
8-1-94 1,605,000 Locallmprovements 2-1-2006 1,475,000
8-1-95 1,900,000 Locallmprovements 2-1-2007 1,735,000 `
7-1-97 2,800,000 Locallmprovements 2-1-2009 2,800,000
12-1-97 1,595,000 Local Improvements (this Issue) 2-1-2009 1,595,000
Total $11,135,000 �
General Obligation Port Authority Debt
Principal
Date Original Final Outstanding
of Issue Amount Pur ose Maturity As of 10-2-97
11-1-92 $3,425,000 Municipal Building 2-1-2018 $2,995,OOO�a1
11-1-93 580,000 Land Purchase for Business
Park (Taxable) 2-1-2009 520,OOO�b�
8-1-94 1,630,000 Business Park Street and Utility
Improvements 2-1-2011 1,555.000�61
Total $5,070,000
�a� Debt service payments on fhis issue are made from a combination of user fees from the municipal
multi-purpose arena, tax increment revenues and certain special tax and general fund levies.
�b� These issues are being repaid from a combination of tax increment revenues and ad valorem tax
levies.
General Obligation Debt Supported by Revenues
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 10-2-97
9-1-92 $1,525,000 Storm WaterRevenue 2-1-2008 $1,275,000
8-1-93 945,000 Water Revenue Refunding 2-1-2005 945,000
8-1-94 335,000 Storm Water Revenue 2-1-2005 250,000
8-1-94 700,000 State Aid Street Bonds 2-1-2004 515,000
7-1-96 1,035,000 Storm Water Revenue 2-1-2012 1,035,000
7-1-96 500,000 Water Revenue 2-1-2005 500,000
Total $4,520,000
- 10 -
Annuai Calendar Year Debt Service inciuding This Issue
G.O. Debt Supported
G.O. Debt Supported Primarily by
bv Taxes and Tax Increment Specia)Assessments
Principal Principal
Year Principal & Interest Princi al & Interest�a�
1997 (at 10 2) (Paid) (Paid) (Paid) (Paid)
1998 $ 355,000 $ 548,153.50 $ 1,245,000 $ 1,740,759.59
1999 380,000 549,541.00 1,000,000 1,459,917.50
2000 230,000 381,988.50 1,390,000 1,794,068.75
, 2001 240,000 381,276.00 1,310,000 1,649,650.00
2002 245,000 374,824.75 1,170,000 1,448,48125
2003 120,000 240,718.50 1,055,000 , 1,277,678.75
2004 125,000 239,091.00 1,025,000 1,195,292.50
2005 130,000 237,047.25 820,000 944,091.25
2006 140,000 239,446.00 775,000 859,571.25
2007 145,000 236,318.5fl 550,000 601,882.50
2008 155,000 237,651.00 400,000 428,951.25
2009 165,000 238,271.00 395,000 404,693.75
2010 175,000 238,163.50
2011 185,000 237,313.50
2012 190,000 231,050.50
2013 205,OOQ 234,095.00
2014 120,000 139,280.00
2015 130,000 141,935.00
2016 135,Q00 139.050.00
Total $3,570,OOO�b� $5,265,214.50 $11,135,000��� $13,805,038.34
�a� lncludes the 8onds at an assumed average annual interest rate of 4.75%.
�b� 59%of this debt will be retired within ten years.
��1 93%of fhis debt will be retired within ten years.
- 11 -
Annual Calendar Year Debt Service Including This Issue (Continued)
G.O. Debt Supported
G.O. Port Authoritv Debt bv Revenues
Principal Principal
Year Principal & Interest Principal & Interest
1997 (at 10-2) (Paid) (Paid) (Paid) (Paid)
1998 $ 280,000 $ 575,318.78 $ 385,000 $ 603,418.75
1999 295,000 575,961.28 395,000 596,302.50
2000 180,000 448,756.28 420,000 602,672.50
2001 200,000 458,653.78 440,000 602,382.50
2002 220,000 467,187.53 460,000 600,587.50
2003 235,000 469,483.78 475,000 592,256.25 `
2004 255,000 475,546.28 505,000 597,052.50
2005 270,000 475,348.78 440,000 507,372.50
2006 285,000 473,996.28 205,000 255,252.50
2007 305,000 476,335.65 215,000 253,675.00
2008 325,000 477,192.52 230,000 256,225.00
2009 345,000 476,533.77 80,000 97,552.50
2010 295,000 406,690.64 85,000 97,972.50
2011 320,000 412,640.63 90,000 98,027.50
2012 180,000 256,875.00 95,000 97,731.25
2013 190,000 254,802.50
2014 155,000 208,503.75
2015 165,000 208,023.75
2016 180,000 211,680.00
2017 190,000 209,470.00
2018 200,000 206.600.00
Total $5,070,OOO�a1 $8,225,600.98 $4,520,OOO�b� $5,858,481.25
�a1 50%of this debt wil!be retired within 90 years.
�b1 87%of this debt will be retired within 10 years.
Lease-Purchase Agreements
The City has entered into several lease-purchase agreements for the acquisition of various
equipment and vehicles.
Date of Original Semiannual Final
Lease Principal Amount Lease Pavment Pavment Date
4-26-94 $100,995 $11,121 2-1-1999
3-28-95 140,000 26,363 8-1-1998
3-28-95 124,000 14,928 8-1-2000
3-28-95 362,000 25,359 8-1-2005
Total $726,995 $77,771
The City entered into a lease purchase agreement dated May 15, 1996 for a fire truck. The
principal amount of the lease is $476,445 with annual payments of$64,896. Final payment will
be due June 1, 2006.
- 12 -
In February 1997 the City entered into a lease purchase agreement for the purchase of a street
sweeper. The principal amount of the lease is $85,731 and is payable in a single payment due
on March 27, 1998.
Summary of Direct Debt1ncluding This Issue
Gross Less: Debt Net
Debt Service Funds* Direct Debt
G.O. Debt Supported by Taxes
and Tax Increment $3,570,000 $ (195,716) $3,374,284
G.O. Debt Supported by Special
Assessments 11,135,000 (4,115,693) 7,019,307
G.O. Port Authority Debt 5,070,000 (204,892) 4,865,108
G.O. Debt Supported by Revenues 4,520,000 (592,840) 3,927,160
'` Debf service funds are as of September 30, 1997 and include money #o pay both principal and
interest.
Indirect General Obligation Debt
DebtApplicable to
1996 Taxable G.O. Debt Tax Capacity in Citv
Taxing Unit�al Net Tax Capacitv As of 10-2-97�b� Pereent Amount
Dakota County $ 280,683,823 $ 63,215,000��� 3.93% $ 2,484,350
ISD 196 (Rosemount-
Apple Valley-Eagan) 101,531,886 182,607,776��� 8.94 16,325,135
ISD 199 (Inver
Grove-Pine Bend) 18,523,634 16,460,242 9.67 1,591,7Q5
ISD 200 (Hastings) 16,546,543 4,410,000 0.39 17,199
Metropolitan Council 2,161,233,611 33,990,OOO�e� 0.51 173,349
Metropolitan Transit Dist. 1,942,024,$26 84,545,000 0.57 481,907
Total $21,Q73,645
�a� Only fhose units with debt outstanding are shown here.
�b1 Excludes debt supported by revenues and tax and aid anticipation debt.
��1 Includes jail facility revenue bonds issued by the Dakota County HRA and payable so%ty from /ease
payments made by the County to the HRA pursuant to a Lease Agreement. The lease payments are
absolute and unconditiona!and are unlimifed tax obligations of the County.
(d� Mcludes $15,980,000 of outstanding cerfificates of participation which are subject to annual
appropriation.
�e1 Metropolitan Council also has outstanding $427,035,000 of general obligatiorr sanitary sewer bonds
and loans which are supported by system revenues.
- 13 -
Debt Ratios including This issue*
G.O. Net G.O. Indirect &
Direct Debt' Net Direct Debt
To 1996 Indicated Market Value 2.47% 5.89%
Per Capita (13,150 - 1997 City Estimate) $1,160 $2,763
� Excludes general obligafion debt supported by revenues, state-aid street bonds and lease-purchase
agreements.
CITY TAX RATES, LEVIES AND COLLECTIONS
Tax Capacity Rates �
i
1996/97 �
For
1992/93 1993/94 1994/95 1995/96 Total Debt Onlv �
Dakota County 26.558% 27.474% 27.994% 26.626% 25.721% N/A
City of Rosemount 29.810 32.297 35.778 36.055 35.627�b1 5.704%
ISD 196 (Rosemount) 58.486 59.657 62.136 60.830 58.189��� 12.349
Special Districts�al 5.405 6.240 4.914 5.108 4.995 0.158
Total 120.259% 125.668% 130.822% 128.619% 124.532% 18.211%
�a1 Includes Mefropolitan Council, Regional Transit District, Metropolitan Mosquito Control, Dakota
County Technical College, the Housing and Redevelopment Authority, and the Dakota County Light
Rail Transit.
�b� The City also has a 9996/97 tax rate of 0.02706%spread on the market value of property in support of
debt service on general obligation fire station bonds.
(c) Independent Schoo/ District 196 (Rosemount-Apple Valley-Eagan) also has a 9996/97 tax rate of
0.10868%spread on the market value of property in support of an excess operafing levy.
NOTE: Taxes are determined by multiplying the net tax capacity by the tax capacity rafe, expressed as
a percentage (see Appendix !ll).
Tax Collections for the City
Gross Net Collected During Collected
Amount Amount Collection Year As of 4-30-97
Levy/Collect of Levv of Levy* Amount Percent Amount Percent
1996/97 $4,635,928 $3,664,352 (In Process of Collection)
1995/96 4,382,673 3,465,166 $3,430,125 99.0% $3,441,147 99.3%
1994/95 4,17Q781 2,911,242 2,888,955 99.2 2,896,956 99.5
1993/94 3,602,545 2,351,589 2,307,118 98.1 2,339,141 99.5
1992/93 2,913,401 2,002,363 1,925,266 96.1 1,999,093 99.8
* The net levy excludes Homestead and Agricultural Credit Aid("HACA'). Beginning in 1993/94, the net
levy is the basis for computing tax capacity rates. The gross levy was the basis for computing tax
capacity rates in prior years.
- 14-
FUNDS ON HAND
As of September 30, 1997 ,
Fund Cash and Investments
General $ 1,090,900.95
Special Revenue 1,702,043_00
Port Authority 241,907.56
Debt Service:
Tax and Tax Increment Supported 195,716.37
Assessment Supported 4,115,692.94
Port Authority Supported 204,892.31
General Obligation Revenue Supported 592,839.56
Construction 3,076,718.99
Water, Sewer and Storm Water 4,441,624.44
Arena 27,982.74
Trust and Agency 1,360.220
Total $15,691,679.08
CITY INVESTMENTS
City funds are invested in accordance with Minnesota Statutes, Section 118.005 and the Gity's
investment policy which is more restrictive than State statutes. The City investmenf portfolio is
managed in a manner to attain a rnarket rate of return while preserving and protecting the
capital of the overall portfolio. The Finance Director or the City Administrator is responsible for
investing all funds, including making investment decisions on a daily basis and monitoring#he
portfolio.
Pursuant to the City's investment policy the City is authorized to invest in the following:
1. Governmental Securities: Instruments such as bonds, notes, bills, mortgages
and other securities which are direct obligations of the federal government or its
agencies, with the principal fully guaranteed by the U.S. govemment or its
agencies. The City will not invest in any mortgage or mortgage-related security ,
unless a return of principal is completely guaranteed by a federal entity. !,,
2. Certificate of Deposit.
3. Repurchase Agreement.
4. Reverse Repurchase Agreement.
5. Prime Commercial Paper.
6. Any security which is a general obfigation of the State of Minnesota or any of its
municipalities.
7. Bankers acceptances of United States banks eligible for purchase by the Federal
Reserve System.
- 15 -
Collateralization is required on two types of investments, certificates of deposit and repurchase
agreements. In order to anticipate market changes and provide a level of security for all funds,
the collateralization level is 110 percent of the market value of principal and accrued interest.
The City attempts to diversify its investments according to type and maturity. The portfolio, as
much as possible, contains both short-term and long-term investments. The long-term portion
of the portfolio, meaning longer than five years, may not exceed 35% of the total funds in the
portfolio. This is done to reduce overall market risk of rates changing.
As of September 30, 1997 the City had a total of$15,076,765 invested funds as follows
Amount Invested
Tvpe of Security Lenqth of Investment as of 9-30-97
Certificates of Deposit Less than 12 months $ 9,324,899
Certificates of Deposit One to Ten years 1,436,827
U.S. Treasury Notes 12 months or less 760,800
Mortgage Backed Securities Ten years or less 3,093,851 �
Mortgage Backed Securities Over Ten years 460,388 �
Total $15,076,765 �
GENERAL INFORMATION CONCERNING THE CITY
The City of Rosemount, located in northern Dakota County, is a southern suburb of the
Minneapolis/Saint Paul metropolitan area. The City encompasses an area of 22,000 acres
(35.25 square miles) and has a 1990 U.S. Census count of 8,622, a 69.6% increase from the
City's 1980 Census count of 5,083. As of January 1997, the City estimates the population to be
13,150; a 52.5% increase over the 1990 Census.
A major contributor to the City's tax base and economy is a petrochemical'industrial complex
sited on 6,200 acres in the northeastern portion of the City near the Mississippi River. Firms
located there include Great Northem Oil Company ("Koch Refining"), North Star Chemical and
Spectro Alloys. Mid-American Pipeline Company transports gas from southern states and
operates a bottling station at Pine Bend. Minnesota Pipeline Company transports Canadian
and North Dakota crude oil to the Koch refinery.
Koch is a leading producer of petroleum products in Minnesota and Wisconsin converting
21�,000 barrels of crude oil into gasoline each day. This Rosemount company employs 800
full-time workers, and it has invested nearly $600 million recently in new equipment, processes,
training and operations.
The University of Minnesota's Rosemount Research Center is located on an 8,000 acre tract of
land situated partially in the City. This facility is utilized by the University, other research
agencies, and private firms for agricultural and other research projects.
- 16 -
Major Employers
Approximate
Number
Emplover Product/Service of Empiovees
Independent School District 196 Education 3,119�a1
Koch Refining Company Crude Oil 800
Dakota County Technical College Education 275
Intermediate School District 917 Education 275
Cannon Equipment Company Manufacturing of Metal Parts 250
Greif Brothers Corporation Multiwall Bags 160
Genz & Ryan Plumbing & Heating Plumbing and Heating 110
Spectro Alloys Corp. Aluminum Alloys 100'
Reese Enterprises Weatherstripping 90
Dakota County HRA �overnment 75
City of Rosemount Government 57(b)
CF Industries Warehousing/Freight Terminal 49
Utilicorp United Inc.
(People's Natural Gas) Natural Gas' 47
Knutson Services, Inc. Trash Disposal/Recycling 36
Continental Nitrogen &
Resources Corp. Chemicals 35
Carlson Tractor& Equipment
Company Jndustrial/Farm Equipment 30
�a� Represents total employment, not just within the City of Rosemounf.
�b1 Excludes over 100 part-time and seasonal employees.
Source: Survey of individual employers, May 1997.
Labor Force Dafia
August 1997 August 1996
Civilian Unemployment Civilian Unemployment
Labor Force Rate Labor Force Rate
Dakota County 201,319 1.9%0 196,198 2.5%
Minneapolis/St. Paul MSA 1,677,673 2.4 1,637,386 3.0
Minnesota 2,696,290 2.9 2,635,247 3.7
Source: Minnesota Department of Economic Security. 9997 data is preliminary. �
- 17 -
Buiiding Permits Issued by the City
Total Permits New Single Familv Homes
Number Value Number Value
1997 (to 9-30) 467 $19,584,157 70 $7,679,651
1996 655 28,440,950 130 13,941,688
1995 641 30,376,849 190 20,529,873
1994 662 32,969,672 223 23,329,937
1993 592 39,154,474 196 20,716,580
1992 633 43,352,223' 234 23,046,277
1991 512 19,939,006 200 18,087,341
1990 491 21,921,872 184 16,682,775
1989 480 28,037,283 194 17,320,711
1988 506 30,974,532 267 22,232,787
1987 316 21,636,314 160 14,460,303
" Includes$97,000,000 forKoch Refining.
�
Recent and Proposed Development j
The Port Authority of the City of Rosemount, Minnesota was established on September 3, 1991 �
by resolution of the Rosemount City Council to provide a conscientious and coordinated effort
to encourage and precipitate future development within various development districts
established by the City. The Port Authority is charged with the role and responsibility of
carrying out economic and industrial development and redevelopment within the City in
accordance with policies established by the City Council. As administrator of the City's
development districts, the Authority may exercise development and redevelopment powers
pursuant to those authorized by the State of Minnesota Development Act, the Industrial Bond
Act, the Housing Finance Act and the Tax Increment Act, except that the Authority may not
issue obligations without prior approval of the City CounciL
In 1993, the Rosemount Port Authority purchased 80 acres of vacant land for a future-business
park near the historic center of Rosemount. In 1995, after a total investment of nearly
$2.2 million, the first phase of road and utility improvements to the business park were
completed. Two companies purchased a combined 16 acres in the business park and
completed construction of new facilities in early 1997. Cannon Equipment Company
constructed a 110,000 square foot office/manufacturing facility and Geometrix Company
constructed a 10,000 square foot sheet metal manufacturing facility. The City also established
this business park within a tax increment financing (TIF) district as a tool to assist new
businesses locating at this site. The Port Authority is now marketing the remaining acreage in
the business park through a cooperative agreement with Hoyt Properties of Minneapolis.
During the period from 1992 through 1996, an average of $34.858,834 in new construction
value has been added per year. During this same period the City added 973 single-family
homes to its housing stock (or an average of 200 homes per year).
Additional recent and proposed commercial and industrial development occurring in the City
includes the following:
• The City approved a new 25 acre commercial plat in 1997 that will allow for 220,000 square
feet of development. Currently under construction is a new 15,000 square foot Walgreen
Drug Store and a 10,000 square foot Kindercare daycare center.
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i
. The Dakota County Housing and Redevelopment Authority is completing construction of a
44-unit senior housing rentaf project valued at approximately $2,500,000.
• Endres Processing, a food waste recycling company, is constructing a new 55,000 square
foot facility in 1997.
• AAA Auto Salvage is constructing a new 35,000 square foot faciGty in 1997 on a 30 acre
site.
. Greif Brothers, a multi-wall bag manufacturing company, completed a 30,000 square foot
expansion of its existing facility in 1996.
Some of the larger housing projects currently being developed or recently compieted are as.
follows: .
Units Units Built
Development/Developer Housin A�proved as of 9-30-97
Country Hills/U.S. Home Corporation Single Family 541 541
O'Leary's Hills/Parkview, Inc. Single Family 213 201
West Ridge/Rosemount Dev. Co.. Single Family 228 228
Shannon Hills/Ground Development Co. Single Family 197 197
Shannon Pond Hampton
Development Corp. Single Family 89 89
Wensmann 6th Addition Single Family/Townhome 106 106
Wensmann 7th and 8th Additions Single Family/Twin Home 81 81
Wensmann 9th and 10th Additions Townhomes/Condominiums 104 104
Shannon Meadows Addition Single Family 28 6
Shannon Pond East/Hampton
Development Corp. Single Family 73 20
Geromine Pond/Heritage Development Co.Single Family/Twin Home 45 0
Hawkins Pond/Basic Builders Single Family 69 2
Financial Institutions
The First State Bank of Rosemount and Rosemount National Bank are located in the City. As
of December 31, 1996, the two banks reported combined deposits of $92,030,000. A branch
facility of the Vermillion State Bank is also located in the City.
Source: Upper Midwest Financial Directory, Spring 1997 edition.
Education
�
The major portion of the City is part of Independent School District 196, headquartered in
Rosemount. The District's enrollment for the 1997/98 school year was approximately 26,485
�� students in grades kindergarten through twelve. The District is one of the fastest growing
school districts in the State, and one of the largest employers in the City with approximately
3,119 full-time and part-time employees. The physical plant of the District consists of 18
elementary schools, six middle schools, and four senior high schools. Of these schools, two
elementary schools, one junior high, and one senior high are located in the City of Rosemount.
On March 8, 1994 voters in the Distnct authorized the issuance of $78,810,000 for the
acquisition and betterment of school facilities, including the construction of a new elementary
school, a new middle school and a new high school and additions and improvements to other
schools in the District, including the Rosemount High SchooL The new elementary school
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�
i
,I
opened in the fail of 1995. The new middle school opened in the fall of 1996 and the new high
school opened in the fall of 1997. In addition, the District has entered into a lease agreement
with the Apple Valley Economic Development Authority to lease a 68,000 square foot facility to
house the District's School of Environmental Studies for grades 11 and 12 which opened in the
fall of 1995. The facility is located on the grounds of the Minnesota Zoo.
Small portions of the City are located in Independent School District 199 (Inver Grove-Pine
Bend) and Independent School District 200 (Hastings).
The Dakota County Technical College is also located in the City. The Technical College,
located on a 96-acre site, opened in 1973. The Technical College has an enrollment of
approximately 2,000 post-secondary students. In addition, the Technical College offers an
extensive adult education program.
GOVERNMENTAL ORGANIZATION AND SERVICES
Organization
Rosemount was established as a municipal corporation in 1858, and became a statutory City in
1974. The City has a Mayor-Council form of govemment, with the four Council members being
elected to overlapping four-year terms of office. The present City Council is listed below.
Expiration of Term
Cathy E. Busho Mayor December 31, 1998
Joan M. Anderson Council Member December 31, 1998
John Edwards Council Member December 31, 1998
Kevin L. Carroll Council Member December 31, 2000
Dennis Wippermann Council Member December 31, 2000
The City's chief administrative officer is the City Administrator, who is appointed by and serves
at the discretion of the City Council. Mr. Thomas D. Burt was appointed to the position of City
Administrator in March of 1994. Mr. Jeffrey A. May, who has served in the City's Finance
Department since 1985, was appointed as the City's Finance Director in March of 1991.
Growth and development of the City is guided by a Comprehensive Land Use Plan which was
commissioned soon after the consolidation in 1971 of the former Village and Town of
Rosemount. The Plan outlines long-range zoning and development policy of the City, and is
designed to encourage and promote orderly development and growth which will perpetuate a
sound tax base. This Plan was last updated in 1993.
Services
.;
Police protection for the City is provided by 15 full-time officers, six police reserves and two
part-time community service officers. Fire protection is provided by 33 trained volunteers. The
City has a class 5 insurance ratinge
Municipal water, sanitary sewer and storm water services are provided to virtually all of the
developed areas of the City. The municipal water service is provided by four wells with finro
water towers having a total storage capacity of 1,500,000 gallons. The maximum pumping
capacity is 6,264,000 gailons per day with an average demand of 1,200,000 gallons pumped
daily.
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It is the City's poficy to finance all of its lateral sanitary sewer and water improvements by
special assessments filed againsf benefited property; however, #here is a provision for deferred
assessments, in which case it may be necessary to provide some tax support. Core facilities
are intended to be financed from water and sewer connection charges, but these too may
require some tax support in the event sufficient connections do not occur in a timely manner_
To date, tax support has not been necessary.
The City finances the construction and long-term maintenance of its stormwater core facilities
through the operation of a Stormwater Utility. Each property in the City pays a monthly
"stormwater user fee" and an initial connection charge to support the program.
Interceptor sewer lines and wastewater treatment plants in the seven-county metropolitan area,
of which the City is a part, are under the jurisdiction of the Metropolitan Council Environmental
Services ("MCES"). MCES finances its operations through user charges based on usage. The
City is responsible for the construction and maintenance of sewer laterals.
Employee Pensions
All full-time and certain part-time employees of the City of Rosemount are covered by defined
benefit pension plans administered by the Public Employees Retirement Association of
Minnesota (PERA)_ PERA administers the Public Employees Retirement Fund (PERF) and the
Public Employees Police and Fire Fund (PEPFF) which are cost-sharing multiple-employer
public employees retirement plans. PERF members belong to either the Coordinated Plan or
the Basic Plan. Coordinated members are covered by Social Security and Basic members are
not. All employees of the City covered by PERA belong to the Coordinated Plan. All police
officers, fire fighters and peace officers who qualify for membership by statute are covered by
the PEPFF. For the year ended Decernber 31, 1996, the City's contribution to PERA was
$172,689.
Current General Fund Budget
1996 1996 1997
Adopted Budqet Actuaf Adopted Budget
General Fund Revenues:
General Property Taxes $2,362,042 $2,327,061 $2,401,575
Licenses and Permits 267,900 239,129 226,900
Intergovernmental 1,261,583 1,283,220 1,320,700 '
Charges for Services 329,400 314,049 302,725
Fines and Forfeits 100,000 111,929 100,000
Recreation Fees 169,510 173,794 174,100
Miscellaneous Revenues 38,000 137,110 48,800
+ Transfers In - 0 - 3.500 105,400
Total General Fund Revenues $4,531,935 $4,589,798 $4,578,300
� General Fund Expenditures:
General Government $1,103,000 $ 941,113 $1,027,100
Police 1,119,000 1,112,767 1,186,300
Fire 179,672 179,672 169,200
Public Works 1,506,779 1,506,779 1,504,400
Parks and Recreation 638,372 638,372 585,900
, Transfer Out - 0 - 117,95D 105,400
Total General Fund Expenditures $4,531,435 $4,496,653 $4,578,300
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APPENDIX I
PROPOSED FORM OF LEGAL OPINION
' 2200 FIRS? NATIONAL BANK BUILDING
332 MINNESOTA STREET
SAINT PAUG. MINNESOTA 55I01
TELEPHONE (6l2) 223-6600
B R I G G S A�'D �0 R GA� FACSIMILE f612) 223-6450
PROFESSIONAL ASSOCI.ATION WRITER'S DIRECT DIAL ,
W�ZITER'S E-MAIL
$1, 595, 000
GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 1997B
CITY OF ROSEMOUNT
DAKOTA COUNTY
MINNESOTA
We have acted as bond counsel in connection with the
issuance by the City of Rosemount, Dakota County, Minnesota (the
"Issuer") , of its $1, 595, 000 General Obligation Improvement
Bonds, Series 1997B, bearing a date of original issue of
December 1, 1997 (the "Bonds") . We have examined the law and
such certified proceedings and other documents as we deem
necessary to render this opinion.
We have not been engaged or undertaken to review the
accuracy, completeness or sufficiency of the Official Statement
or other offering material relating to the Bonds (except to the
extent, if any, stated in the Official Statement) , and we express
no opinion relating thereto (excepting only the matters set forth
as our opinion in the Official Statement) .
As to questions of fact material to our opinion, we
have relied upon the certified proceedings and other
certifications of public officials furnished to us without
undertaking to verify the same by independent investigation.
' Based upon such examinations, and assuming the
authenticity of all documents submitted to us as originals, the
conformity to original documents of all documents submitted to us
` as certified or photostatic copies and the authenticity of the
originals of such documents, and the accuracy of the statements
of fact contained in such documents, and based upon present
Minnesota and federal laws (which excludes any pending
legislation which may have a retroactive effect on or before the
MINNEAPOLIS OFFICE ■IDS GENTER •WWW.BRIGGS.COM
MEMBER-LEX MUNDI,A GLOBAL ASSOCiATION OF INDEPENDENT LAW FIRMS
I-1
BRIGGS �-^�D MORGAN
date hereof} , regulations, rulings and decisions, it is our
opinion that :
(1) The proceedings show lawful authority for the issuance
of the Bonds according to their terms under the Constitution and
laws of the State of Minnesota now in force.
(2) The Bonds are valid and binding general obligations of
the Issuer and all of the taxable property within the Issuer' s
jurisdiction is subject to the levy of an ad valorem tax to pay
the same without limitation as to rate or amount; provided that
the enforceability (but not the validity) of the Bonds and the
pledge of taxes for the payment of the principal and interest
thereon is subject to the exercise of judicial discretion in
accordance with general principles of equity, to the
constitutional powers of the United States of America and to
bankruptcy, insolvency, reorganization, moratorium and other
similar laws affecting creditors � rights heretofore or hereafter
enacted.
(3) At the time of the issuance and delivery of the Bonds
to the original purchaser, the interest on the Bonds is excluded
from gross income for United States income tax purposes and is
excluded, to the same extent, from both gross income and taxable
net income for State of Minnesota income tax purposes (other than
Minnesota franchise taxes measured by income and imposed on
corporations and financial institutions) , and is not an item of
tax preference for purposes of the federal alternative minimum
tax imposed on individuals and corporations or the Minnesota
alternative minimum tax applicable to individuals, estates or
trusts; it should be noted, however, that for the purpose of
computing the federal alternative minimum tax imposed on
corporations, such interest is taken into account in determining
adjusted current earnings. The opinions set forth in the
preceding sentence are subject to the condition that the Issuer
comply with all reguirements of the Internal Revenue Code of
1986, as amended, that must be satisfied subsequent to the
issuance of the Bonds in order that interzst thereon be, or
continue to be, excluded from gross income for federal income tax
purposes and from both gross income and taxable net income for
State of Minnesota income tax purposes. Failure to comply with
certain of such requirements may cause the inclusion of interest
on the Bonds in gross �ncome and taxable net income retroactive '
to the date of issuance of the Bonds.
We express no opinion regarding other state or federal tax '
consequences caused by the receipt or accrual of interest on the
Bonds or arising with respect to ownership of the Bonds .
Dated at Saint Paul, Minnesota, this day of December,
1997 .
�
� Professional Association
!-2
APPENDIX i!
CONTINUING DISCLOSURE UNDERTAKING
This Continuing Disclosure Undertaking (the "Disclosure
Undertaking" ) is executed and delivered by the City of Rosemount,
Minnesota (the °Issuer" ) , in connection with the issuance of
$1, 595, 000 General Obligation Improvement Bonds, Series 1997B
(the "Bonds" ) . The Bonds are being issued pursuant to a
Resolution adopted November 18, 1997 (the "Resolution") .
Pursuant to the Resolution and this Undertaking, the Issuer
covenants and agrees as follows:
SECTION 1 . Purpose of the Disclosure Undertakincr. This
Disclosure Undertaking is being executed and delivered by the
Issuer for the benefit of the Owners and in order to assist the
Participating Underwriters in complying with SEC Rule
15c2-12 (b) (5) .
SECTION 2 . Definitions. In addition to the definitions
set forth in the Resolution, which apply to any capitalized term
used in this Disclosure Undertaking unless otherwise defined in
this Section, the following capitalized terms shall have the
following meanings :
"Annual Report" shall mean an�r annual financial information
provided by the Issuer pursuant to, and as described in, Sections
3 and 4 of this Disclosure Undertaking.
��Audited Financial Statements" shall mean the financial
statements of the Issuer audited annually by an independent
certified public accounting firm, prepared pursuant to generally
accepted accounting principles promulgated by the Financial
Accounting Standards Board, modified by governmental accaunting
standards promulgated by the Government Accounting Standards
Board.
"Dissemination Agent" shall mean such party from time to
time designated in writing by the Issuer to act as information
dissemination agent and which has filed with the Issuer a written
acceptance of such designation.
r "Fiscal Year" shall be the fiscal year of the Issuer.
.� °Governing Body° shall, with respect to the Bonds, have the
meaning given that term in Minnesota Statutes, Section 475 .51,
Subdivision 9 .
"MSRB" sha11 mean the Municipal Securities Rulemaking Board.
"Nationai Repository" shall mean any Nationally Recognized
Municipal Securities Information Repository for purposes of the
Rule . Current3y, the following are National Repositories : '
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Bloomberg Municipal Repository
P.O. Box 840
Princeton, NJ 08542-0840
Phone: (609) 279-3200
Fax: (609) 279-5962
Thomson Municipal Services
395 Hudson Street - Third Floor
New York, NY 10014
Attn: Municipal Disclosu�e
Phone : (800) 689-8466
Fax: (212) 989-2078
Kenny Information Systems Inc .
65 Broadway - 16th Floor
New York, NY 10006-2511
Attn: Repository Services
Phone: (212) 770-4595
Fax: (212) 797-7994
R.R. Donnelly Financial
Municipal Securities Disclosure Archive
559 Main Street
Hudson, MA 01749
Phone: (800) 580-3670
Fax: (508) 562-1969
DPC Data Inc.
One Executive Drive
Fort Lee, NJ 07024
Phone: (201) 346-0791; Fax: (201) 947-0107
E-Mail: Nrmsir@dpcdata.com
"Occurrence (s) " shall mean any of the events listed in
Section 5 .A. of this Disclosure Undertaking.
"Official Statement" shall be the Official Statement dated
, 1997, prepared in connection with the Bonds .
"Owners" shall mean the registered holders and, if not the
same, the beneficial owners of any Bonds .
"Participating Underwriter" shall mean any of the original
underwriters of the Bonds required to comply with the Rule in
connection with offering of the Bonds .
,.
��Repository" shall mean each National Repository and each
State Depository.
"Resolution" shall mean the resolution or resolutions
adopted by the Governing Body of the Issuer providing for, and
authorizing the issuance of, the Bonds . �
i f-L
"Rule" shall mean Rule 15c2-12 (b) (5) adopted by the
Securities and Exchange Commission under the Securities Exchange
Act of 1934, as the same may be amended from time to time or
interpreted by the Securities and Exchange Commission.
"State" shall mean the State of Minnesota.
"State Depository° shall mean any public or private
repository or entity designated by the State as a state
depository for the purpose of the Rule. _As of the date of this
Disclosure Undertaking, there is no State Depository in
Minnesota.
SECTION 3 . Provision of Annual Reports .
A. Beginning in connection with the Fiscal Year
ending on December 31, 1997, the Issuer shall, or shall cause the
Dissemination Agent to, as soon as available, but in any event
not later than December 31, 1998, and by December 31 of each year
thereafter, provide to each Repository an Annual Report which is
consistent with the requirements of Section 4 of this Disclosure
Undertaking.
B. If the Issuer is unable to provide to the
Repositories an Annual Report by the date required in subsection
A, the Issuer shall send a notice of such delay and estimated
date of delivery to each Repository or to the MSRB and to the
State Depository, if any.
SECTION 4 . Content and Format of Annual Reports . The
Issuer' s Annual Report shall contain or incorporate by reference
the financial information and operating data pertaining to the
Issuer listed below as of the end of the preceding Fiscal Year.
The Annual Report may be submitted to each Repository as a single
document or as separate documents comprising a package, and may
cross-reference other information as provided in this Disclosure
Undertaking.
The following financial information and operating data shall
be supplied:
A. an update of the type of information contained in
the Official Statement under the caption CITY PROPERTY
VALUES ; CITY INDEBTEDNESS; and CITY TAX RATES, LEVIES AND
COLLECTIONS;
B. Audited Financial Statements of the Sssuer. The
Audited Financial Statements of the Issuer may be submitted
to each Repository separately from the balance of the Annual
Report . In the event Audited Financial Statements of the
Issuer are not available on or before the date for filing
the Annual Report with the appropriate Repositories as set
forth in Section 3 .A. above, unaudited financial statements
<i-3
shall be provided as part of the Annual Report . The
accounting principles pursuant to which the financial
statements will be prepared will be pursuant to generally
accepted aCcounting principles promulgated by the Financial
Accounting Standards Board, as such principles are modified
by the governmental accounting standard� promulgated by the
Government Accounting Standards Board, as in effect from
time to time. If Audited Financial Statements are not
provided because they are not available on or before the
date for filing the Annual Report, the Issuer shall promptl�
provide them to the Repositories when available.
SECTION 5 . Reportinq of Sianificant Events .
A. This Section 5 shall govern the giving of notices
of the occurrence of any of the following events with respect to
the Bonds, if material:
(1) principal and interest payment delinquency;
(2) non-payment related defaults;
(3) unscheduled draws on debt service reserves
reflecting financial difficulties;
(4) unscheduled draws on credit enhancements
reflecting financial difficulties;
(5) substitution of credit or liquidity providers, or
their failure to perform;
(6) adverse tax opinions or events affecting the tax-
exempt status of the security;
� (7) modifications to rights of security holders;
(8) optional or unscheduled redemption of any Bonds;
(9? defeasances;
(10) release, substitution or sale of property securing
repayment of the Bonds; and
(11) rating changes .
,.
B. Whenever an event listed in Section 5 .A. above has
occurred, the Issuer sha11 as soon as possible determine if such
event would constitute material information for Owners of Bonds .
If knowledge of the Occurrence would be material, the Issuer
shall promptly file a notice of such Occurrence with each
National Repository or the MSRB and with the State Depository, if
anye
::�
C. The Issuer agrees to provide or cause to be
provided, in a timely manner, to each National Repository or the
MSRB and to the State Depository, if any, notice of a failure by
the Issuer to provide the Annual Reports described in Section 4 .
SECTION 6 . Termination of Reporting Obligation. The
Issuer� s obligations under this Disclosure Undertaking shall
terminate upon the legal defeasance, prior redemption or payment
in full of all of the Bonds .
SECTION 7 . Dissemination Agent . The Issuer may, from
time to time, appoint or engage a Dissemination Agent to assist
it in carrying out its obligations under this Disclosure
Undertaking, and may discharge any sueh Agent, with or without
appointing a successor Dissemination Agent .
SECTION 8 . Amendment; Waiver. Notwithstanding any other
provision of this Disclosure Undertaking, the Issuer may amend
this Disclosure Undertaking, and any provision af this Disclosure
Undertaking may be waived, if (a) a change in law or change in
the ordinary business or operation of the Issuer has occurred,
(b) such amendment or waiver would not, in and of itself, cause
the undertakings herein to violate the Rule if such amendment or
waiver had been effective on the date hereof but taking into
account any subsequent change in or official interpretation of
the Rule, and (c) such amendment or waiver is supported by an
opinion of counsel expert in federal securities laws �o the
effect that such amendment or waiver would not materially impair
the interests of Owners .
SECTION 9 . Additional Information. Nothing in this
Disclosure Undertaking shall be deemed to prevent the Issuer from
disseminating any other information, using the means of
dissemination set forth in this Disclosure Undertaking or any
other means of communication, or including any other information
in any Annual Report or notice of an Occurrence, in addition to
that which is required by this Disclosure Undertaking. If the
Issuer chooses to include any information in any Annual Report or
notice of an Occurrence in addition to that which is specificall�
required by this Disclosure Undertaking, the Issuer shall have no
obligation under this Disclosure Undertaking to update such
information or include it in any future Annual Report or notice
of an Occurrence.
� SECTION 10 . Default . In the event of a failure of the
Issuer to provide information required by this Disclosure
Undertaking, any Owner may take such actions as may be necessary
and appropriate, including seeking mandamus or specific
performance by court order, to cause the Issuer to comply with
its obligations to provide information under this Disclosure
Undertaking. A default under this Disclosure Undertaking shall
� not be deemed an Event of Default under the Resolution, and the
sole remedy under this Disclosure Undertaking in the event of any
�i-5
failure of the Issuer to comply with this Disclosure Undertaking
shall be an action to compel performance.
SECTION 11. Beneficiaries. This Disclosure Undertaking
shall inure solely to the benefit of the Issuer, the Participa-
ting Underwriters and Owners from time to time of the Bonds, and
shall create no rights in any other person or entity.
SECTION 12 . Reserved Rights . The Issuer reserves the
right to discontinue providing any information required under the
Rule if a final determination should be made by a court of
competent jurisdiction that the Rule is invalid or otherwise
unlawful or, subject to the provisions of Section 8 hereof, to
modify the undertaking under this Disclosure Undertaking if the
Issuer determines that such modification is required by the Rule
or by a court of competent jurisdiction.
Date: , 1997
CITY OF ROSEMOUNT
By
Its
By
Its
,
. �
APPENDIX ill
SUMMARY OF TAX LEVIES, PAYMENT PROVISiONS, AND
MINNESOTA REAL PROPERTY VALUATION
Following is a summary of certain statutory provisions effective through 1996 relative to tax levy
procedures, tax payment and credit procedures, and the mechanics of real property valuation.
The summary does not purport to be inclusive of all such provisions or of the specific provisions
discussed, and is qualified by reference to the complete #ext of applicable statutes, rules and
regulations of the State of Minnesota in reference thereto. This summary reflects changes to
Minnesota property tax laws enacted by the State Legisiature during the 1996 Regular Session.
Property Vatuations (Chapter 273, Minnesota Statutes)
Assessor's Estimated Market Value
Each parcel of real property subject to taxation must, by statute, be appraised at least once
every four years as of January 2 of the year of appraisal. With certain exceptions, all property
is valued at its market value which is the value the assessor determines to be the price the
property to be fairly worth, and which is referred to as the "Estimated Market Value."
Limitation of Market Value Increases
Effective for assessment years 1993 through 1997, the amount of increase in market value for
all property classified as agricultural homestead and non-homestead, residential homestead
and non-homestead, or non-commercial seasonable recreational residential, which is entered
by the assessor in the current assessment year, may not exceed the greater of (i) 10% of the
preceding year's market value or (ii) 1/3 of the difference between the current assessment and
the preceding assessment.
Indicated Market Value
Because the Estimated Market Value as determined by an assessor may not represent the
price of real property in the marketptace, the "Indicated Market Value" is generally regarded as
more rep�esentative of full value. The Indicated Market Value is determined by dividing the
Estimated Market Value of a given year by the same year's sales ratio determined by the State
Department of Revenue. The sales ratio represents the overall relationship between the
Estimated Market Value of property within the taxing unit and actual selling price.
Net Tax CapacitX
The Net Tax Capacity is the value upon which net taxes are levied, extended and collected.
The Net Tax Capacity is computed by applying the class rate percentages specific to each type
of property classification against the Estimated Market Value. Class rate percentages vary
depending on the type of property as shown on the last page of this Appendix. The formulas
and class rates for converting Estimated Market Value to Net Tax Capacity represent a basic
element of the State's property tax relief system and are subject to annual revisions by the
State Legislature.
Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity rate,
{ expressed as a percentage.
Property Tax Payments and Delinquencies
(Chapters 276, 279-282 and 549, Minnesota Statutes) ,
Ad valorem property taxes levied by local govemments in Minnesota are extended and
collected by the various counties within the State. Each taxing jurisdiction is required to certify
the annual tax levy to the county auditor within five (5) working days after becember 20 of the
year preceding the collection year. A listing of property taxes due is prepared by the county
auditor and turned over to the county treasurer on or before the first business day in March.
III-1
The county treasurer is responsible for collecting all property taxes within the county. Real
estate and personal property tax statements are mailed out by March 31. One-half (1/2) of the
taxes on real �roperty is due on or before May 15. The remainder is due on or before
October 15. Real property taxes not paid by their due date are assessed a penalty which,
depending on the type of property, increases from 2% to 4% on #he day after the due date. In
the case of the first installment of real property taxes due May 15, the penalty increases to 4°/a
or 8% on June 1. Thereafter, an additional 1% penalty shall accrue each month through
October 1 of the collection year for unpaid real property taxes. In the case of the second
installment of real property taxes due October 15, the penalty increases to 6% or 8% on
November 1 and increases again to 8% or 12% on December 1. Personal property taxes
remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the
unpaid tax. However, personal property owned by a tax-exempt entity, but which is treated as
taxable by virtue of a lease agreement, is subject to the same delinquent property tax pe�alties
as real property.
On the first business day of January of the year following colle�tion all delinquencies are
subject to an additional 2% penalty, and those delinquencies outstanding as of February 15 are
filed for a tax lien judgment with the district court. By March 20 the clerk of court files a
publication of legal action and a maiiing of notice of action to delinquent parties. Those
property interests not responding to this notice have judgment entered for the amount of the
delinquency and associated penalties. The amount of the judgment is subject to a variable
interest determined annually by the Department of Revenue, and equal to the adjusted pnme
rate charged by banks, but in no event is the rate less than 10% or more than 14%.
Property owners subject to a tax lien judgment generally have five years (5) in the case of all
property located outside of cities or in the case of residential homestead, agricultural
homestead and seasonal residential recreational property located within cities or three (3) years
with respect to other types of property to redeem the property. After expiration of the
redemption period, unredeemed properties are declared tax forfeit with title held in trust by the
State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof,
then sells those properties not claimed for a public purpose at auction. The net proceeds of the
sale are first dedicated to the satisfaction of outstanding special assessments on the parcel,
with any remaining balance in most cases being divided on the following basis: county - 40%a
town or city- 20%; and school district -40%.
P�operty Tax Credits (Chapter 273, Minnesota Statutes)
In addition to adjusting the taxable value for various property types, primary elements of
Minnesota's property tax relief system are: property tax levy reduction aids, the circuit breaker
credit, which relates property taxes to income and provides relief on a sliding income scale; and
targeted tax relief, which is aimed p�imarily at easing the effect of significant tax increases. The
circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application by
the taxpayer. Property tax Jevy reduction aid includes educational aids, local govemmental aid,
equalization aid, homestead and agricultural credit aid (HACA) and disparity reduction aid.
Levy Limitations
Historically, the ability of local governments in Minnesota to levy property taxes was controlled ,
by various statutory limitations. These timitations have expired for taxes payable in 1993 and
future years, but may be reinstated in the future. Under pnor law the limitations generalfy did
not affect debt service levies. For county gavernments, cities of 2,500 population or more, and
smaller cities and towns that receive taconite municipal aid, taxes could be levied outside the
overall levy limitation for, among others, bonded indebtedness and certificates of indebtedness,
unfunded accrued pension liabifity, social service programs and the residual income
maintenance program for which the county share of costs has not been taken over by the State.
III-2
Debt Limitations
All Minnesota municipalities (counties, cities, towns and schoof districts) are subject to statutory
"net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is
defined as the amount remaining after deducting from gross debt the amount of current
revenues which are applicable within the current fiscal year to the payment of any debt and the
aggregation of the principal of the following:
1. Obligations issued for improvements which are payable wholly or partially from the
proceeds of special assessments levied upon benefited property.
2. Warrants or orders having no definite or fixed maturity.
3. Obligations payable wholly from the income from revenue producing conveniences.
4. Obligations issued to create or maintain a permanent improvement revolving fund.
5. Obligations issued for the acquisition and betterment of public waterworks systems, and
public lighting, heating or power systems, and any combination thereof, or for any other
public convenience from which revenue is or may be derived.
6. Certain debt service loans and capital loans made to school districts.
7. Certain obligations to repay loans.
8. Obligations specifically excluded under the provisions of law authorizing their issuance.
9. Debt service funds for the payment of principal and interest on obligations other#han those
descnbed above.
10. Certain obligations to pay pension fund liabilities.
Levies for General Obligation Debt
(Sections 475.61 and 475.74, Minnesota Statutes)
Any municipality which issues general obligation debt must, at the time of issuance, certify
levies to the county auditor of the county(ies) within which the municipality is situated. Such
levies shall be in an amount that if collected in full will, together with estimates of other
revenues pledged for payment of the obligations, produce at least five percent in excess of the
amount needed to pay principal and interest when due.
Notwithstanding any other limitations upon the ability of a taxing unit to ievy taxes, its ability to
levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is
without limitation as to rate or amount
Metropolitan Revenue Distribution(Chapter 473F, Minnesota Statutes)
"Fiscal Disparities Law"
The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as
"Fiscal Disparities," was first implemented for taxes payable in 1975. Forty percent of the
increase in commercial-industrial (including public utility and railroad) net tax capacity valuation
since 1971 in each assessment district in the Minneapolis/St. Paul seven-county metropolitan
area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott,
excluding the City of New Prague, and Washington Counties) is contnbuted to an area-wide tax
base. A distribution index, based on the factors of population and real property market value
per capita, is employed in determining what proportion of the net tax capacity value in the area- '
wide tax base shall be distributed back to each assessment district.
I I I-3
STATUTORY FORMULAE
CONVERSION OF ESTIMATED MARKET VALUE(EMV)TO NET TAX CAPACITY FOR
MAJOR PROPERTY CLASSIFICATIONS
Net Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax Capacity
General Classifications Levy Year 1992 Lev,yL ear 1993 Levy Year 1994 Levy Year 1995 Levy year 1996
Residential Homestead First$72,000 of EMV at 1.00% First$72,000 of EMV at 1.00% First$72,000 of EMV at 1.00% First$72,000 of EMV at 1.00% First$72,000 of EMV at t.00%
EMV in excess of$72,000 EMV in excess of$72,000 EMV in excess of$72,000 EMV in excess of$72,000 EVM in excess of$72,000
8t 2.00% at 2.00% at 2.00% at 2.00% at 2.00°/a
Residential Non-Homestead 3.40% 3.40°Io 3.40% 3.40%;except certain cities of 3.40%;except certain cities of
4 or more units 5,000 population or less 5,000 population or less
at 2.30% at 2.30%
Agricuitural Homestead First$72,000 EMV of house, First$72,000 EMV of house, First$72,000 EMV of house, First$72,000 EMV of house, First$72,000 EMV of house,
garage and 1 acre at 1.00% garage and 1 acre at 1.00°/a garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00%
Excess to 320 acres at 0.45% EMV in excess of$72,000 of EMV in excess of$72,000 of EMV in excess of$72,000 of EMV in excess of$72,000 of
Excess over 320 acres at 0.45% house,garage and 1 acre at house,garage and 1 acre at house,garage and 1 acre at house,garage and 1 acre at
' 2.00% 2.00% 2.00% 2.00%
Next$43,000 EMV at 2.00%
Excess to 320 acres at 0.45% Remaining Property: Remaining Property; Remaining Property: Remaining Property:
Excess over 320 acres at 0.45% First$115,000 of EMV on First$115,000 of EMV on First$115,000 of EMV on First$115,000 of EMV on
EMV in excess of$115,000 first 320 acres at 0.45% first 320 acres at 0.45% first 320 acres at 0.45% first 320 acres at 0.45%
— at 2.00% EMV in excess of$115,000 on EMV in excess of$115,000 on EMV in excess of$115,000 on EMV in excess of$115,000 on
� Excess to 320 acres at 1.30% first 320 acres at 1.00% first 320 acres at 1.00% first 320 acres at 1.00% first 320 acres at 1.00%
Excess over 320 acres at 1.60°/a EMV in excess of$115,000 over EMV in excess of$115,000 over EMV in excess of$115,000 over EMV in excess of$115,000 over
320 acres at 1.50% 320 acres at 1.50% 320 acres at 1.50% 320 acres at 1.50%
Agricultural Non-Homestead EMV of house,garage and EMV of house,garage and EMV of house,garage and EMV of house,garage and EMV of house,garage and
t acre at 2.50%0 1 acre at 2.30% 1 acre at 2.30% 1 acre at 2.30°/a 1 acre at 2.30%0
EMV of land and other buiidings EMV of land and other buildings EMV of land and other buildings EMV of land and other buiidings EMV of land and other buildings
at 1.60% at 1.50% at 1.50% at 1.50% at 1.50%
Commercial-Industrial First$100,OOU of EMV at 3.00% First$100,000 of EMV at 3.00% First$100,000 of EMV at 3.00% First$100,000 of EMV at 3.00% First$100,000 of EMV at 3.00%
EMV in excess of$100,000 EMV in excess of$100,000 EMV in excess of$100,000 EMV in excess of$100,000 EMV in excess of$100,000
at 4J0% at 4.60% et 4.60% at 4.60% at 4.60%
Seasonal/Recreational Non-Commercial Non-Commercial Non-Commercial Non-Commercial Non-Commercial
Residential First$72,000 of EMV at 2.00% First$72,000 of EMV at 2:00% First$72,000 of EMV at 2.00% First$72,000 of EMV at 2.00% First$72,000 of EMV at 1.75%
EMV in excess of$72,000 EMV in excess of$72,000 EMV in excess of$72,000 EMV in excess of$72,000 EMV in excess of$72,000
at 2.50% at 2.50% at 2.50°/a at 2.50% at 2.50°l0
Commercia�-2.30% Commerciat-2.30% Commercial-2,30% Commercial-2.30% Commercial-2.30%
VacantLand N/A N/A N/A N/A N/A
(All vacant land is reclassified (All vacant land is reclassified (All vacant land is reclassified (AIF vacant land is reclassified (All vacant land is reclassified
to highest and best use to highest and best use to highest and best use to highest and best use to highest and best use
pursuant to local Zoning pursuant to local zoning pursuant to local zoning pursuant to local zoning pursuant ro local zoning
ordinance) ordinance) ordinance) ordinance) ordinance
APPENDIX IV
ANNUAL FINANCIAL STATEMENTS
The City is audited annually,by an independent certified public accounting firm. Data shown on
the following pages has been extracted from the annual audits for fiscal years ended
December 31, 1996, 1995 and 1994. The audits for all years shown were prepared on the
modified accrual basis of accounting for governmental funds, and the accrual basis of
accounting for proprietary funds. The reader should be aware that the complete audits may
contain additional information which may interpret, explain or modify the data presented herein.
IV-1
� �¢o� � Q o.. o F
� � = 'o '" o
� . . . . . J W � . .F
IV-3
CITY OF ROSEMOUNT MINNESOTA
COMBINED STATEMENT OF REVENUE,EXPENDiTURES,AND CHANGE$IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES Tora�
YEAR ENDED DECEMBER 31,1995 �MPONeNr REPORTIN6
GOVERNMENTAL FUND TYPES TOTALS ' uNiT enmtv
��PORT (MEMORANDUM
SPECIAL DEBT CAPI7AL (Memorandum only) �moam oru�vf
GENERAL REVENUE SERV�CE FROJECTS 1985 1994
REVENUE: - $ 3,159,689 $ 2,617,773
General property taxes $ 2,305,352 $ 127,000 $ �z7,337 $ 58,474
Municipal state aid(MSA) _ - 348,201 389,��4 832,859 E 1T,368,331
348,201 282,946 302.859 6,872 442,510
Tax increments 26Z,g46 - ' i,sea,e» 1,364,617
Licenses and permits 48,046 61,376 516,302 - 625,725 1,036,793 - t,oes,o2�
Special assessments �,097,460 - - - 1,097,460 1,079,860 s,857 250,819
Intergovernmental _ _ 401,211 372,318 2,ose,648
401,211 139,680 10Q074 25,�z�
Charges for services a 3g,680 - " s,zze 209,472
Finesandforteitures 1,459 524,485 486,907
interest eamings 48,004 158,750 3�g.2�2
g4,5g7 1,122,801 380,982 _
Misceltaneous 230,610 �74 105,$2O - 912,898
$ 4,533,310 $ 1,427,201 $ 1,665,431 $ 56,�56 $ 7,681,998 $ 6,805,614 �s,aoo sz,o�z,ese
TOTAI REVENUE -----------'-- -
EXPENDITURES: te,2�e s,053.400
Current _ g - S 1,260,961 $ 1,083,321 �za �o.»a,�oa
General govemment $ 1,085,406 $ 175,555 $ _ �,211,348 �,�87.18�
C 1,211;348 _ _ 2.495,796 3,751,652 4.361.884 Re4,m oz�s -s s�,ea�,oe2
Public safety 1,255,858 628,77g 563,157
� Pubiic works 628,779 - ' -
Park and recreation _ 653,265 - - 653,265 230,545
' Capitai o�Uay _ _ 18,883 69,713 86,595 1.661,794
. . . . . E 2,085;190 . �
Other
Debi service: . _ 3,900,000 2,970,000 e,aao ns,osa
3,J�D,OOO ' � 366�,640
Redemption of bonds _ g22,907 - 922,907 960,076 _ 22,Z�2
Interest on bonds _ 7,081 - 7,081 _5,727 - �os,ssa
Fiscal agent fees - zaa,oas
TOTAL EXPENDITURES $ 4,181,389 $ 828,820 $ 4.�0 $ 2.565,509 E 12,422.587 $12,923,685 2,50o se,�o�
- � � ,677 2,888.904
EXCESS�DEFICIENCY)OF REVENUE OVER �9���
$ 351,921 $ 598,381 $ (3,181,439) $ (2,509,453) $(4.7d0,589) $ (6,118,071) IS,000 22.855.n!»
EXPENDITURES - �,oea.ess
. � � . . . � � .0.497 S 29.991,978
OTHER FINANCING SOURCES(USES): $ _ $ _ g 5,068 $ 1,887,137 $ 1,892,205 $ 3,979,229
Proceeds from the sale of bonds 3,500 359,196 311,100 485,164 1,158,960 2,426,195
Transfers from other funds (208,399) (517,29n ____,_____,_ 72,662) Q98,358) (1,929,458) 's,oao s �o,sa�,�o�
Transfers to other funds -----"---�- �- �- 3�,m,�s�
$ (204.899) S (158,101) $ 316,168 $ 2,299,639 $ 2,252,8�8 $ 4,475.966 � 5,5oe,�7s
' TOTAI OTHER SOURCES(USES) -
- eeo,�sa
FICIENCY dF REVENUE AND ',II�,a2s e,a7z
EXCESS(DE )
OTHER FINANCING 30URCES OVER 'p,27s 8,053,400
EXPENDITURE3 AND OTHER FINANCING USE5 $ 1A7.022 $ 440,281 $ (2.865,271) $ (209,814) $ (2,487,782) $ (1,642.105) 28ze9
t,s55,ose
BEGINNING FUND BALANCE 1,258,606 1,104,545 8,913,992 1,308,077 12,585,219 14,227,325 � fi83,e57)
Residuai equity transfer in(out)
__ �1�34�3� 4�3�52 �q3Q.33$) (32,488) �8b 27 S 81,989,102
ENDING FUND BALANCE $ 1,� $ 1,� a 6'��'774 $-----s3�92 $10;064,950 $12,_ 585`2?a �4 s s�,asi,oe�
CI7Y OF ROSEMOUNT.MINNESOTA
COM8INED 3TATfiMENT OF REVENUE,EXPENDITURES AND CHANGES IN FUND BAIANCE3
ALL GOVERNMENTAL FUND TYPES
YEAfl ETIDED DECEMBER Si,1894
GOVERNMENTAL FUND TYPES TOTALS
SPECUL DEBT CAPITAL (MEMORANDUM ONLI�
GENEAAI pEYENUE 3ERVICE PROJECTS 1994 1999
REVENUE
Ca�nwal p�opNty tax�s t1.87s.109 t279.717 :159.947 - i2.817.T79 :2.297,902
Munictpel afat�aid(M3A) - Sa.474 - - 58.474 1.088.955
Tex tnd�m�Me - 989.774 - - 389.774 936.451
Uc�nsa a►d p�rmfb 302.939 - - - 902.859 282.1 t8
3p�ck1 asa�sem�nta 88.790 - 948.002 - 1.098.799 t,i87.852
�ntwgowrnm�rtfnl 1.079.880 - _ _ 1,079.860 1.029.970
Charg�s fw savic�s 972.918 - - - 972.318 412.879
Flnss end faf�Ru�ss 100.074 - - - 100.074 80.960
IntM�st�ernirqs 30.118 /44.522 280.01B i12.222 466.907 580.525.
Mise�i{an�ous 189.958 185.958 - 15.068 980.982 299.785
TOTAL REYENUES L4,021.915 i1,068.445 =1.687,985 i27.289 f8.805.614 t7.518.979
DCPENDffURES:
Curnrtt:
l3�nweFgovwnm�nt i1.089.921 - - - i1.08S.921 =1,109.057
G. _ _ _
`.
Public sntety 1.08T.181 1.087.181 955,080
Publlc wwks 1.052.775 - f9.909.109 4.581.884 6.968.198
Perks and rscrsatlon 569.157 - _ 563.157 580.711
CepifalOutlay - i230.515 - - 290,545 714,755
O(her _ 180.798 5�3.764 1.417.292 1.664.794 1.079.972
Debt ae►vic�:
R�demption of bonds - - 2.970.000 - ,2,970.00Q t.455.000
Intwest on bonds - - 980.078 - 960.078 972.527
Flseal egent}e�a - - 5.727 - 5.727 5,124
TOTAL D(PENDfTUfiE3 t3.786.495 f411.294 t3.999.587 t4.728.401 i12.929.685 t19.297.824
EXCE33(DEFICIENC�OF REVENUE
OYER EXPENDffURES i235,480 :857,181 (=2.911.802) (¢l,889.111) (i8.1/8.072) (t5.718.851)
OTHER FINANCING SOURCES(U9ES)
Procs�ds hom sal�of bond• - - i207,205 �,9.T72.024 i3.979.229 i9.988�209
Trensfws hom otMr funds t287.495 t3,577 468.878 1.668.445 2.428.195 9.591.109
Tranafers to other(unds (444.668) (944.404) (95,889) (q44.5W) (1.929.458) (3,478.042)
TOTAL OT1iER FINANCINO 30URCE3(USES) (t157,t79) (i9�.82� =578,001 y{.995,965 s4,475,966 f.4.489,270
D(CESS(DEFICIENCI�OF HEVENUE AND
OTHER FINANCIN(3 SOURCES OVER
EXPENDffURES AND O7HER FINANCING USE3 578,307 (5283.688} (t1.739,801) i298.854 (l1,642.108) (i2.233,581)
BEfiINNING FUNO BALANCE3 1,180.299 1,388.211 10,847.592 t.011.229 14.227.923 18,462.907
ENDINO FUNO BALANCE3 i1.258.808 i1.104.545 t8.913.991 f1.908.077 L12.585.218 St4.227.326
CITY OF R03EMOUNT.MINNESOTA
COMBINED STATEMENT OF REVENUE,EXPENDITURES AND CHANGES IN FUND BALANCES
BUDGET(AS AMENDED)AND ACTUAL(BUDGETARY BASIS)
GENERAL AND ANNUALLY ADOP7ED SPECIAL REVENUE FUNDS
YEAR ENDED DECEMBER a1,1896
ANNUALLY ADOPTED TOTAL
' GENERAL FUND SPECIAL REVENUE FUNDS (Memorandum Onty)
FAVORABLE FAVORABLE FAVORABLE
�UNFAVORABLE► (UNFAVORABLE) (UNFAVORABLE)
BUOGET ACTUAL VARIANCE BUDOET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE
REVENUE:
General PropeAy Taxes a 2,505,042 3 2,476,676 S (28,388) ; 470,100 3 470,100 a - $ 2,975,142 a 2.946,776 S (28,3B8)
Municipal siate aid(MSA) - - - - 309,089 309,089
Tax Increments - - - - 32,586 32,588 - 32,586 32,588
Special assessmenis - 85,236 85,236
Licenses and pertnfts 287,900 239,129 (28,771) - - - 287,900 239,129 (28,771)
Intergovemmental 1,118,583 1,119,492 909 - - - 1,118,583 1,119,492 809
Ghargesforservices 329,400 314,049 (15,351) - - 329,400 314,049 (15,351)
Fines and forfeitures 100,OOQ 717,929 11,929 - - - 190,000 111,929 11,929
Interest eamings 25,000 33,444 8,444 11,000 33,898 22,698 38,000 87,141 31,141
Principal on notes - - - - - - 0 0 -
Oonations and other 92,498 92,498 - 58,000 383 (57,617) 150,498 92,881 (57,81�
Miscellaneous 182,510 199,081 18,571 IB,000 578,325 530,325 230,510 777,406 546,896
� TOTAL REVENUES 3 4,62D,933 S 4,588,299 $ (34,834), S 587,100 E 1,509,418 S 922,318 3 5,208,033 S 5,701,391 5 493,358
i
00 EXPENDITURE3:
Generalgovemment S 1,115,350 3 1,041,383 $ 73,987 s 586,700 5 813,252 S (247,752) 3 1,881,450 S 1.854,635 S (173,185)
Public safety 1,310,977 1,292,439 18,538 - - - 1,310,977 7,292,439 18,538
Publicworks 1,378,300 1,408,433 (28,133) - - - 1,378,300 1,408,433 (28,733)
Park and recreation 701,856 838,3T2 83,484 �01,856 838,372 63,484
TOTAL EXPENDITURE3 y 4,506,483 a 4,378,826 3 127,857 Z 566,100 3 813,252 S (247,152) S 5,072,583 $ 5,191,878 S (119,295)
EXCE33�DEFICIENCY)OF REVENUE OVER ,
EXPENDITURES $ 114,450 S 207,673 S 93,223 a 21,000 $ 898,188 S 875,188 735,480 903,839 374,084
OTHER PINANCING SOURCES(USES):
Opereting transfers in $ 3,500 3 3,500 S - a - a - E - S 3,500 E 3,500 S
Operatlngtransfers out ' (117,950) (117,950L (490,108) (490,108) (117,950) (808,058) (490,108)
TOTAL OTHER SOURCES(USES) 3 (114,450) 3 (114,450) a a - a (490,108) S (490,108j (114,450) (804,558) (d90,108)
EXCES3(DEFICIENCY)OF REVENUE AND OTHER
FINANCINO SOURCE8 OVER EXPENOITURES AND
OTHER FINANCING USES S S 93,223 S 93,223 a 21,000 3 206,060 S 185,080 5 21,000 $ 299,283 S (116,042)
Recoociliation to GAAP basis
etimination ot eocumbrances,net (7,693) - (7,693)
BEGINNING FUND BALANCE 1,497,829 726,b21 2,224,250
Non-Budgeted Special Revenue Funds 428,897 429,897
ENDINCi FUND BAU4NCE S 1,583,35� S 1.382,378 3 2,945,737
.
CITY OF ROSEMOUNT.MINNESOTA
COMBINED STATEMENT OF REVENUE,EXPENDITURES AND CNANGES IN FUND BALANCES
BUDGET(GAAP BASIS)AND ACTUAL
GENERAL AND ANNUA�LY ADOPTED SPECIAL REVENUE PUNDS
YEAR ENDED DECEMBER 31,1995
ANNUALLY ADOPTED
GENERAI.FUND SPECIAL REVENUE FUNDS TOTALS(Memorendum Only)
fAVORABLE FAVORABLE FAVORABLE
(UNFAVORABLE) (UNFAVORABLE� UNFAVORABLE)
BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE BUDGET ACTUAL VARIANCE
REVENUE:
General Property Taxes $ 2,238,062 $ 2,305,352 $ 67,290 $ 127,000 S 127.000 $ - $ 2,365,062 $ 2,432,352 S 67,290
Tax increments - - - - 348,201 348,201 0 348,201 348,201
Licenses and pertnits 268,400 262,946 (5,454) - 268,400 262,946 (5,454)
Intergovernme�tal t,Q68,882 1,097,480 28,578 285,000 (285,000) 1,353,882 1,097,460 (256,422)
Chargesforservices 370,275 401,211 30,936 - - - 370,275 401,211 30,936
Fines and forfeitures SD,000 139,680 59,880 - - 80,000 139,�80 59,680
Interesl eamings 24,000 48,004 24,U04 11,U00 132,835 121,835 35,000 180,839 145,839
Principal onnotes - - - 107,581 18,064 (89,51� 107,581 18,064 (89,51�
Donations and other 45,529 45,529 - 18,069 602,188 584,097 63,598 647,695 584,097
Miscellaneous 241,730 233,127 {8,603) 4,057 4,057 241,730 237,184 (4,546)
TOTAL REVENUES $ 4,336,878 $ 4,533,310 $ 196,432 5 548,850 $ 1,232,322 $ 683,672 S 4,885,528 $ 5,765,632 S 880,104
<� EXPENDITURES:
(f? Generalgovemment $ 1,092,399 $ 1,074,859 $ 17,540 $ 134,250 � 736,334 $ (802,084) 3 1,226,649 3 1,811,194 $ (584,545)
Publicsafety 7,181,017 t,211,425 (50,4U8) - - - 1,181.017 1,211,425 (50.408)
Publicworks 1,327,300 1,236,215 91,085 - - - 1,327,300 1,236,215 91,085
Park and recreation 664,062 628,270 35,793 864,Q82 628,270 35,793
'fOTAL EXPENDITURES � 4,244,778 5 4,t50,769 $ 94,009 $ 134,250 3 736,334 $ (802,084) $ 4,379,028 $ 4,887,104 $ (508,076)
EXCESS(DEFICIENCY)AF REVENUE OVER
EXPENDITURES E 92,100 $ 382,541 $ 290,441 $ 414,400 $ 495,988 S 81,588 � 506,500 878,528 372,028
OTHER FINANCFNG SOURGES(USES):
Transfers from other funds y 3,400 $ 3,500 $ 100 S - 5 - 3 - S 3,400 $ 3,500 $ 100
Transfers to other funds (95.500) (208,395) (112,899) - (517,29� (517,29� (95,500) (725,698) {630,196)
TOTAL OTHER SOURCES(USE3) $ (92,100) � (204,899) $ (112,799) $ 3 (517,29� 3 (517,29� (92,100) (722,196) (630,096)
EXCESS(DEFICIENC�OF REVENUE AND OTHER
FINANCING SOURCES OVER EXPENDITURES AND
O'fHER FINANGING USES $ a 177,6d2 5 177.642 $ 414,400 3 (21,310) $ (435,710) $ 414,400 $ 756,332 $ (258,068)
Reconciliation to GAAP 6asis
elimination of encumbrances,net (30,618) (11,975) (42,593)
BEGINNING FUND BALANCE 1,258,606 806,301 1,884,907
Residual equity transfers in(out) 92,201 (6,703) 85,498
ENDING FUND BALANCE $ t,497,830 S 566,314 $ 2,064,14b
�
CtTY Of ROSEMOUNT.MINNESOTA
COM8INED STATEMENT OF REVENUE,EXPENOITURES AND CHANGES IN FUND BALANCE3
BUOGET(GMP BA313)AND ACTUAL-GENER11l ANO 3PECIILL REVENUE FUNDS
YEAp ENDED OECEMBER�1, tY04
ANNUALLV ADOPTED
OENERAL FUND SPECUL REVENUE FUNDS
FAVORABLE FAVORABIE
(UNFAVOtiABLE) (UNFAVORABLE)
BUDOET ACTUAL VARIANCE BUDGET ACTUAL VARUINCE
REVENUE:
r.x.. t�,eeo.se2 =�A�s,�oa ��»,2sa� =s�o,»� =2�0,�» -
Tax Inenm�nb � - � - - 276,000 �50,774 t111,774
Llanws and p�►mMs 2e5,a50 9o2,eS0 �7,OOY - - -
Int�►pov�mm�ntal 1,037,306 1,07Y,ea0 22,Oe2 2a4,20� - (2E4,2aQ)
Ch�rp��tor s�rvie�• 3S7,Y00 372,�ta 14,41• - - -
Fin�s and torhitur�■ AS,000 100,071 35,07� - - -
Int�nrt�ami�ps - - - 123,629 130,200 4,577
Principd on notet - - - te,777 te,772 (S)
Donetlons and oth�r - - - - 12.iDe 12.15E
Mitc�il�n�ou• 201,191 2e8,SO4 87,703 - - -
TOTAL REVENUE =3,63e,001 =4,021,9/4 =ta3,013 =9d1,9lA =82a,e1Y (=19S.7E�
EXPENDITURES:
�: G�n��d gov�mm�nt =1.169,022 =t,OG0,407 ses,ol5 - - -
� Publlo wf�tp 1,101,Ote 1,08a,S59 15,949 - - -
C' PubNc works 1,030,32a 1,W6,OY� 10,499 - - -
P�rk and r�ct��tlon Q33,e61 SSO,YSI a2,907 - - -
S�I�rI��and wapes - - - =7Y.722 =7a,971 f2.e31
' � . � Enyin�eriny . - - - - 11,2/3 (11,213� .
Legd fs�� - - - 22.000 �5.130 (23,430)
Othet prof�ssiond servic�s - - - 23,e23 , 21,t5� 3,�ea
Insuranes - - - 2,OOo 9,e27 (7.e27)
on,.► - - - e.9oo o,ne {a�e�
Capital outlay - - - Se3,9l6 246,059 916,927
TOTAL EXPENDITUHES 33,Q30,323 =�,773,007 i177,91e =702,293 =41Y,033 =2E2,100
EXCE33(DEFICIENC�OF REVENUE
OYER EXPEHDITURES (i113,424) =2�8,907 f382,331 :252,183 =408,7aE =146.633
OTHER FINANCING 30UFiCES(USES)
Transters fiom oth�r tunds =23a,e12 =25�,495 tS0,EE3 =100,000 - (=/00,000)
� � TrantHrs to otber fund• . � (123,188) �. (�{4,a69) (321,Ie1) (4a7,390) (=e'72.{33) (203,03� � . �
TOTAL OTHER FINANCING SOUpCE3(U3E3) Z1/3,424 (=137,17�) (=270,39a) (=3o7,39E) (�6'72,433) (t305,03'7)
EXCESS(OEFiCIn OF REVENUE OYEH
EXPENDITURES AND ENCUMBHANCE3
AND OTHER FINANCINO SOURCES(USES) ;0 f01,733 f91.733 (=103.243j (i263,e6� {t1S8.424)
Reeonc�elNlon to GMP buis
aliminetlon of�ncumb��nc��,n�t (13,42a) 21,OS3 '
BEOINNING BALANCE 1,1s0,29C a47,ae4
ENDINQ BALANCE =1.238.a06 ta0E.300