HomeMy WebLinkAbout4.d. 1996 Bond Issue - Authorizing Issuance and Setting Bond Sale (1996A) CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: May 7, 1996
AGENDA ITEM: 1996 Bond Issue -Authorizing Issuance and AGENDA SECTION:
Setting Bond Sale (1996A) New Business
PREPARED BY: Jeff May, Finance Director AGENDA'1E -n A # n_
ATTACHMENTS: Recommendations, Resolution APPROVED BY:
This item is on the agenda for your consideration in authorizing the issuance and setting the sale of
General Obligation Fire Station Bonds for the construction of the new fire station approved by
referendum in November of 1995.
Bids will be opened Tuesday, June 4, 1996, at 11:00 A.M. at the offices of Springsted Incorporated.
The bids will be tabulated there, and then consideration for award of the Bonds will be by the City
Council at 7:30 P.M., Central Time, of the same day.
RECOMMENDED ACTION:
Motion to adopt A RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF
$1,780,000 GENERAL OBLIGATION FIRE STATION BONDS, SERIES 1996A.
COUNCIL ACTION:
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 1996 -
A RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE
OF $1,780,000 GENERAL OBLIGATION FIRE STATION BONDS, SERIES 1996A
WHEREAS, the City Council of the City of Rosemount, Minnesota, (the "City") has
heretofore determined that it is necessary and expedient to issue its $1,780,000
General Obligation Fire Station Bonds, Series 1996A (the "Bonds") to finance the
acquisition and construction of a fire station in the City; and
WHEREAS, the City has retained Springsted Incorporated, in Saint Paul, Minnesota
("Springsted"), as its independent financial advisor and is therefore authorized to sell
these obligations by a competitive negotiated sale in accordance with Minnesota
Statutes, Section 475.60, Subdivision 2(9).
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount,
Minnesota, as follows:
1. Authorization; Findings. The City Council hereby authorizes Springsted to solicit
bids for the competitive negotiated sale of the Bonds.
2. Meeting: Bid Opening. This City Council shall meet at the time and place
specified in the Terms of Proposal attached hereto as Exhibit A for the purpose of
considering sealed bids for, and awarding the sale of, the Bonds. The Administrator, or
his designee, shall open bids at the time and place specified in such Terms of Proposal.
3. Terms of Proposal. The terms and conditions of the Bonds and the negotiation
thereof are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and
hereby approved and made a part hereof.
4. Official Statement. In connection with said competitive negotiated sale, the
Administrator and other officers or employees of the City are hereby authorized to
cooperate with Springsted and participate in the preparation of an official statement for
the Bonds, and to execute and deliver it on behalf of the City upon its completion.
RESOLUTION 1996 -
ADOPTED this 7th day of May, 1996.
Cathy Busho, Mayor
ATTEST:
Susan M. Walsh, City Clerk
Motion by: Seconded by:
Voted in favor:
Voted Against:
• • - EXHIBIT A
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
• ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,780,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION FIRE STATION BONDS, SERIES 1996A
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, June 4, 1996, until 11:00 A.M., Central
Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota, after which time they will be opened and tabulated. Consideration for award of the
Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (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 the bidder to reach
Springsted prior to the time of sale specified above. Proposals may also be filed electronically
via PARITY, in accordance with PARITY Rules of Participation and the 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 rovisions in the Terms of Proposal oposal 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 100 116th Avenue SE,
Suite 100, Bellevue, Washington 98004, telephone (206) 635-3545. 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 July 1, 1996, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1997. Interest will
be computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts as follows:
1997 $90,000 2002 $65,000 2007 $ 85,000 2012 $110,000
1998 $55,000 2003 $70,000 2008 $ 90,000 2013 $115,000
1999 $60,000 2004 $75,000 2009 $ 95,000 2014 $120,000
2000 $60,000 2005 $75,000 2010 $100,000 2015 $130,000
2001 $65,000 2006 $80,000 2011 $105,000 2016 $135,000
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
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f
• e
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, 2006, and on any day thereafter, to prepay Bonds due on or
after February•1, 2007. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be
prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to
be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. The proceeds will be used to finance
the acquisition and construction of a fire station.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,750,000 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $17,800,
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 Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The City will deposit the check of the purchaser, the amount of which will be deducted at
settlement and no interest will accrue to the purchaser. In the event the purchaser fails to
comply with the accepted proposal, said amount will be retained by the City. No proposal can
be withdrawn or amended after the time set for receiving proposals unless the meeting of the
City scheduled for award of the Bonds is adjourned, recessed, or continued to another date
without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or
1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single
rate from the date of the Bonds to the date of maturity. No conditional proposals will be
accepted.
ii -
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: (1) waive non-substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (iii) reject any proposal which the City determines to have failed to comply
with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of y e osts o issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan,
Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing
papers, including a no-litigation certificate. On the date of settlement payment for the Bonds
shall be made in federal, or equivalent, funds which shall be received at the offices of the City
or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms
of payment for the Bonds shall have been made impossible by action of the City, or its agents,
the purchaser shall be liable to the City for any loss suffered by the City by reason of the
purchaser's non-compliance with said terms for payment.
CONTINUING DISCLOSURE
On the date of the actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking whereunder the City will covenant to provide, or cause to be
provided, annual financial information, including audited financial statements of the City, and
notices of certain material events, as specified in and required by SEC Rule 15c2-12(b)(5).
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly-final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
- iii -
•
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 70 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 May 7, 1996 BY ORDER OF THE CITY COUNCIL
/s/Susan M. Walsh
Clerk
- iv-
Recommendations
For
City of Rosemount, Minnesota
$1,780,000
General Obligation Fire Station Bonds, Series 1996A
$1,035,000
General Obligation Storm Water Revenue Bonds, Series 1996B
$500,000
General Obligation Water Revenue Bonds, Series 1996C
Presented to:
Mayor Cathy Busho
Members, City Council
Mr. Thomas Burt, Administrator
Mr. Jeffrey May, Finance Director
City of Rosemount
2875 145th Street West
Rosemount, MN 55068
SPRINGSTED
Public Finance Advisors
Study No. R0704B4C4H3
SPRINGSTED Incorporated
May 1, 1996
I a
RECOMMENDATIONS
Re: $1,780,000 General Obligation Fire Station Bonds, Series 1996A
$1,035,000 General Obligation Storm Water Revenue Bonds, Series 1996B
$500,000 General Obligation Water Revenue Bonds, Series 1996C
The Series 1996A Bonds are being issued to finance construction of a new fire station pursuant
to a referendum approved by City voters on November 7, 1995. The Series 1996B Bonds are
being issued to finance the storm water portion of City Project#266, a street and utility
reconstruction project. The Series 1996C Bonds are being issued to finance construction of
Well #9.
We recommend the following for all series of bonds:
1. Action Requested To establish the date and time of receiving
bids and establish the terms and conditions
of the offerings.
2. Sale Date and Time Tuesday, June 4, 1996, at 11:00 A.M. with
award by the City Council at 7:30 P.M. that
same day.
3. Authority for Each Bond Issue The bonds are being issued pursuant to
Minnesota Statutes, Chapter 475.
Additionally, the Series 1996B and the
Series 1996C Bonds are being issued under
Minnesota Statutes, Chapter 444.
4. Prepayment Provisions The City may elect on February 1, 2006, and
on any day thereafter, to prepay the Series
1996A and Series 1996B Bonds due on or
after February 1, 2007 at a price of par plus
accrued interest. Due to the short maturity
schedule for the Series 1996C Bonds, the
Series 1996C Bonds will not be callable in
advance of their stated maturities.
5. Credit Rating Comments The City is currently rated "A" by Moody's
Investors Service. These issues will require
a rating application to assure continuation of
the rating.
6. Bank Qualification The City does not expect to issue more than
$10,000,000 of tax-exempt obligations in
1996 and therefore these issues will be bank
qualified. This will mean lower interest rates
for the City than if the bonds were not bank
qualified.
7. Rebate Requirements The bonds are subject to the federal
arbitrage requirements. However, the City
does not expect to issue more than
$5,000,000 of tax-exempt debt in 1996.
Therefore, the City will be exempt from
reporting and rebating arbitrage earnings to
the federal government as a small issuer.
City of Rosemount, Minnesota
May 1, 1996
8. Bona Fide Debt Service Fund The City must maintain bona fide debt
service funds for each of the issues or be
subject to yield restriction.
9. Economic Life The average life of the issues cannot exceed
120% of the economic life of the projects to
be financed. The economic life of the fire
station and the storm water and water
improvements are all 40 to 50 years. The
bonds are therefore within the economic life
requirements.
10. Federal Reimbursement Regulations Federal reimbursement regulations require
the City to make a declaration, within 60
days of the actual payment, of its intent to
reimburse itself from expenses paid prior to
the receipt of bond proceeds. It is our
understanding the City has taken whatever
actions are necessary to comply with the
federal reimbursement regulations.
11. Continuing Disclosure These are the City's first issues subject to
the new continuing disclosure requirements.
The new SEC rules require the City to
undertake an annual update of its Official
Statement information and report any
material events to the national repositories.
Springsted provides continuing disclosure
services. A summary of the SEC's
continuing disclosure requirements has been
provided to your staff for informational
purposes.
12. Attachments Debt Service Schedules
Terms of Proposals
DISCUSSION
General Obligation Fire Station Bonds, Series 1996A
The proceeds of the Series 1996A Bonds are being used to finance the construction of a new
fire station pursuant to a referendum approved by City voters on November 7, 1995 by a vote of
1,356 (yes) to 1,203 (no). The principal amount of$1,780,000 consists of$1,750,000 of
proceeds to finance construction, which includes the costs of issuance of$21,935, and $30,000
to be used as a discount allowance for underwriters. The first interest payment is due
February 1, 1997. Principal is due each February 1, 1997 through 2016 as shown on page 4 of
these recommendations. The City made its first levy for this issue in 1995 in the amount of
$155,000. The 1995 levy will be used to make the February 1, 1997 payment of principal and
interest on the Series 1996A Bonds. Thereafter, each August 1 interest payment will be made
from the first-half collections of taxes and each subsequent February 1 principal and interest
payment will be made from second-half collections, plus surplus first-half collections.
Page 2
City of Rosemount, Minnesota
• May 1, 1996
General Obligation Storm Water Revenue Bonds, Series 1996B
The proceeds of the Series 1996B Bonds are being used to finance storm water improvements
within the City, specifically the storm water portion of City Project #266, a street and utility
reconstruction project. The principal amount of$1,035,000 includes:
Project Costs $1,001,749
Costs of Issuance 17,726
Allowance for Discount Bidding 15.525
Total Series 1996B Bond Issue $1.035.000
The first interest payment is due February 1, 1997. Principal is due each February 1, 1998
through 2012 as shown on page 5 of these recommendations. The City will repay the Series
1996B Bonds from net revenues of the City's Storm Water Utility, including storm connection
fees. The City has recently approved an increase in Storm Water Utility rates equal to $1.50
per quarter per property beginning on July 1, 1996, with a second increase of$1.50 scheduled
for January 1, 1998.
General Obligation Water Revenue Bonds, Series 1996C
The proceeds of the Series 1996C Bonds are being used to finance water improvements within
the City, specifically the construction of a new well and pumping facility (Well #9). The principal
amount of$500,000 includes:
Project Costs $482,810
Costs of Issuance 11,190
Allowance for Discount Bidding 6.000
Total Series 1996C Bond Issue $500.000
The first interest payment is due February 1, 1997. Principal is due each February 1, 1998
through 2005 as shown on page 6 of these recommendations. The City will repay the Series
1996C Bonds from net revenues of the City's Water Utility, including storm connection fees.
Respectfully submitted,
4Z67-e/2a
SPRINGSTED Incorporated
jmc
Provided to Staff:
a) Summary of Continuing Disclosure Requirements
b) Continuing Disclosure Contracts
Page 3
CITY OF ROSEMOUNT, MINNESOTA Prepared April 26, 1996
General Obligation Fire Station Bonds, By SPRINGSTED Incorporated
Series 1996A
Dated: 7- 1-1996
Mature: 2- 1
First Interest: 2- 1 -1997
Total
Year of Year of Principal 105%
Levy Mat. Principal Rates Interest & Interest of Total
(1) (2) (3) (4) (5) (6) (7)
1995 1997 90,000 4.00% 54,014 144,014 151 ,215
1996 1998 55,000 4.15% 88,996 143,996 151 ,196
1997 1999 60,000 4.30% 86,713 146,713 154,049
1998 2000 60,000 4.40% 84,133 144,133 151 ,340
1999 2001 65,000 4.50% 81 ,493 146,493 153,818
2000 2002 65,000 4.60% 78,568 143,568 150,746
2001 2003 70,000 4.75% 75,578 145,578 152,857
2002 2004 75,000 4.85% 72,253 147,253 154,616
2003 2005 75,000 4.95% 68,615 143,615 150,796
2004 2006 80,000 5.05% 64,902 144,902 152,147
2005 2007 85,000 5.15% 60,862 145,862 153,155
2006 2008 90,000 5.25% 56,484 146,484 153,808
2007 2009 95,000 5.35% 51 ,759 146,759 154,097
2008 2010 100,000 5.45% 46,676 146,676 154,010
2009 2011 105,000 5.60% 41 ,226 146,226 153,537
2010 2012 110,000 5.70% 35,346 145,346 152,613
2011 2013 115,000 5.75% 29,076 144,076 151 ,280
2012 2014 120,000 5.80% 22,463 142,463 149,586
2013 2015 130,000 5.85% 15,503 145,503 152,778
2014 2016 135,000 5.85% 7,898 142,898 150,043
TOTALS: 1 ,780,000 1 ,122,558 2,902,558 3,047,687
Bond Years: 20,428.33 Annual Interest: 1 ,122,558
Avg. Maturity: 11 .48 Plus Discount: 30,000
Avg. Annual Rate: 5.495% Net Interest: 1 ,152,558
T.I.C. Rate: 5.663% N.I.C. Rate: 5.642%
Interest rates are estimates; changes may cause significant
alterations of this schedule.
The actual underwriter's discount bid may also vary.
Page 4
CITY OF ROSEMOUNT, MINNESOTA Prepared April 23, 1996
''General Obligation Storm Water Bonds, By SPRINGSTED Incorporated
Series 1996B
Dated: 7- 1-1996
Mature: 2- 1
First Interest: 2- 1 -1997
Total Existing Total
Year of Year of Principal Storm Water Debt
1 Revenue Mat. Principal Rates Interest & Interest Debt Service
(1 ) (2) (3) (4) (5) (6) (7) (8)
1996 1997 0 0.00% 30,372 30,372 195,295 225,667
1997 1998 50,000 4.15% 52,067 102,067 195,532 297,599
1 1998 1999 50,000 4.30% 49,992 99,992 195,295 295,287
1999 2000 55,000 4.40% 47,842 102,842 194,605 297,447
2000 2001 55,000 4.50% 45,422 100,422 198,450 298,872
2001 2002 60,000 4.60% 42,947 102,947 196,647 299,594
2002 2003 60,000 4.75% 40,187 100,187 194,448 294,635
2003 2004 65,000 4.85% 37,337 102,337 196,760 299,097
2004 2005 65,000 4.95% 34,184 99,184 198,320 297,504
2005 2006 70,000 5.05% 30,966 100,966 159,165 260,131
2006 2007 75,000 5.15% 27,431 102,431 156,605 259,036
2007 2008 80,000 5.25% 23,568 103,568 158,625 262,193
2008 2009 80,000 5.35% 19,368 99,368 0 99,368
2009 2010 85,000 5.45% 15,088 100,088 0 100,088
2010 2011 90,000 5.60% 10,455 100,455 0 100,455
2011 2012 95,000 5.70% 5,415 100,415 0 100,415
TOTALS: 1 ,035,000 512,641 1 ,547,641 2,239,747 3,787,388
1 Bond Years: 9,783.75 Annual Interest: 512,641
Avg. Maturity: 9.45 Plus Discount: 15,525
Avg. Annual Rate: 5.240% Net Interest: 528,166
T.I.C. Rate: 5.418% N.I.C. Rate: 5.398%
Interest rates are estimates; changes may cause significant
alterations of this schedule.
The actual underwriter's discount bid may also vary.
Page 5
CITY OF ROSEMOUNT, MINNESOTA Prepared April 23, 1996
'General Obligation Water Revenue Bonds, By SPRINGSTED Incorporated
Series 1996C
Dated: 7- 1-1996
Mature: 2- 1
First Interest: 2- 1 -1997
Total Existing Total
Year of Year of Principal Water Debt
Revenue Mat. Principal Rates Interest & Interest Debt Service
(1) (2) (3) (4) (5) (6) (7) (8)
1996 1997 0 0.00% 13,374 13,374 156,633 170,007
1997 1998 55,000 4.15% 22,926 77,926 142,160 220,086
1998 1999 55,000 4.30% 20,643 75,643 143,410 219,053
1999 2000 60,000 4.40% 18,278 78,278 144,210 222,488
2000 2001 60,000 4.50% 15,638 75,638 144,590 220,228
2001 2002 65,000 4.60% 12,938 77,938 144,645 222,583
2002 2003 65,000 4.75% 9,948 74,948 144,245 219,193
2003 2004 70,000 4.85% 6,860 76,860 143,370 220,230
2004 2005 70,000 4.95% 3,465 73,465 147,000 220,465
TOTALS: 500,000 124,070 624,070 1 ,310,263 1 ,934,333
Bond Years: 2,641 .67 Annual Interest: 124,070
Avg. Maturity: 5.28 Plus Discount: 6,000
Avg. Annual Rate: 4.697% Net Interest: 130,070
T.I.C. Rate: 4.951% N.I.C. Rate: 4.924%
Interest rates are estimates; changes may cause significant
alterations of this schedule.
The actual underwriter's discount bid may also vary.
Page 6
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,780,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION FIRE STATION BONDS, SERIES 1996A
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, June 4, 1996, until 11:00 A.M., Central
Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota, after which time they will be opened and tabulated. Consideration for award of the
Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (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 the bidder to reach
Springsted prior to the time of sale specified above. Proposals may also be filed electronically
via PARITY, in accordance with PARITY Rules of Participation and the 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 100 116th Avenue SE,
Suite 100, Bellevue, Washington 98004, telephone (206) 635-3545. 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 July 1, 1996, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1997. Interest will
be computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts as follows:
1997 $90,000 2002 $65,000 2007 $ 85,000 2012 $110,000
1998 $55,000 2003 $70,000 2008 $ 90,000 2013 $115,000
1999 $60,000 2004 $75,000 2009 $ 95,000 2014 $120,000
2000 $60,000 2005 $75,000 2010 $100,000 2015 $130,000
2001 $65,000 2006 $80,000 2011 $105,000 2016 $135,000
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
Page 7
}
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, 2006, and on any day thereafter, to prepay Bonds due on or
after February 1, 2007. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be
prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to
be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. The proceeds will be used to finance
the acquisition and construction of a fire station.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,750,000 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $17,800,
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 Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The City will deposit the check of the purchaser, the amount of which will be deducted at
settlement and no interest will accrue to the purchaser. In the event the purchaser fails to
comply with the accepted proposal, said amount will be retained by the City. No proposal can
be withdrawn or amended after the time set for receiving proposals unless the meeting of the
City scheduled for award of the Bonds is adjourned, recessed, or continued to another date
without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or
1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single
rate from the date of the Bonds to the date of maturity. No conditional proposals will be
accepted.
Page 8
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (iii) reject any proposal which the City determines to have failed to comply
with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan,
Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing
papers, including a no-litigation certificate. On the date of settlement payment for the Bonds
shall be made in federal, or equivalent, funds which shall be received at the offices of the City
or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms
of payment for the Bonds shall have been made impossible by action of the City, or its agents,
the purchaser shall be liable to the City for any loss suffered by the City by reason of the
purchaser's non-compliance with said terms for payment.
CONTINUING DISCLOSURE
On the date of the actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking whereunder the City will covenant to provide, or cause to be
provided, annual financial information, including audited financial statements of the City, and
notices of certain material events, as specified in and required by SEC Rule 15c2-12(b)(5).
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly-final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
Page 9
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 70 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 May 7, 1996 BY ORDER OF THE CITY COUNCIL
/s/Susan M. Walsh
Clerk
Page 10
i
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,035,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 1996B
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, June 4, 1996, until 11:00 A.M., Central
Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota, after which time they will be opened and tabulated. Consideration for award of the
Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (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 the bidder to reach
Springsted prior to the time of sale specified above. Proposals may also be filed electronically
via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal,
within a one-hour period prior to the time of safe 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 100 116th Avenue SE,
Suite 100, Bellevue, Washington 98004, telephone (206) 635-3545. 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 July 1, 1996, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1997. Interest will
be computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts as follows:
1998 $50,000 2002 $60,000 2006 $70,000 2010 $85,000
1999 $50,000 2003 $60,000 2007 $75,000 2011 $90,000
2000 $55,000 2004 $65,000 2008 $80,000 2012 $95,000
2001 $55,000 2005 $65,000 2009 $80,000
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
Page 11
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, 2006, and on any day thereafter, to prepay Bonds due on or
after February 1, 2007. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be
prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to
be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge net
revenues of the City's Storm Water Utility. The proceeds will be used to finance construction of
storm water improvements within the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,019,475 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $10,350,
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 Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashiers
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The City will deposit the check of the purchaser, the amount of which will be deducted at
settlement and no interest will accrue to the purchaser. In the event the purchaser fails to
comply with the accepted proposal, said amount will be retained by the City. No proposal can
be withdrawn or amended after the time set for receiving proposals unless the meeting of the
City scheduled for award of the Bonds is adjourned, recessed, or continued to another date
without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or
1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single
rate from the date of the Bonds to the date of maturity. No conditional proposals will be
accepted.
Page 12
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (iii) reject any proposal which the City determines to have failed to comply
with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan,
Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing
papers, including a no-litigation certificate. On the date of settlement payment for the Bonds
shall be made in federal, or equivalent, funds which shall be received at the offices of the City
or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms
of payment for the Bonds shall have been made impossible by action of the City, or its agents,
the purchaser shall be liable to the City for any loss suffered by the City by reason of the
purchaser's non-compliance with said terms for payment.
CONTINUING DISCLOSURE
On the date of the actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking whereunder the City will covenant to provide, or cause to be
provided, annual financial information, including audited financial statements of the City, and
notices of certain material events, as specified in and required by SEC Rule 15c2-12(b)(5).
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly-final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
Page 13
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 40 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 May 7, 1996 BY ORDER OF THE CITY COUNCIL
/s/Susan M. Walsh
Clerk
Page 14
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$500,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1996C
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Tuesday, June 4, 1996, until 11:00 A.M., Central
Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota, after which time they will be opened and tabulated. Consideration for award of the
Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (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 the bidder to reach
Springsted prior to the time of sale specified above. Proposals may also be filed electronically
via PARITY, in accordance with PARITY Rules of Participation and the 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 100 116th Avenue SE,
Suite 100, Bellevue, Washington 98004, telephone (206) 635-3545. 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 July 1, 1996, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1997. Interest will
be computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts as follows:
1998 $55,000 2001 $60,000 2004 $70,000
1999 $55,000 2002 $65,000 2005 $70,000
2000 $60,000 2003 $65,000
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
Page 15
of the Bonds may be made in the principal amount of$5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge net
revenues of the City's Water Utility. The proceeds will be used to finance construction of a new
water well and pumping facility.
TYPE OF PROPOSALS
Proposals shall be for not less than $494,000 and accrued interest on the total principal amount
of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form
of a certified or cashier's check or a Financial Surety Bond in the amount of $5,000, 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 Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The City will deposit the check of the purchaser, the amount of which will be deducted at
settlement and no interest will accrue to the purchaser. In the event the purchaser fails to
comply with the accepted proposal, said amount will be retained by the City. No proposal can
be withdrawn or amended after the time set for receiving proposals unless the meeting of the
City scheduled for award of the Bonds is adjourned, recessed, or continued to another date
without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or
1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single
rate from the date of the Bonds to the date of maturity. No conditional proposals will be
accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (iii) reject any proposal which the City determines to have failed to comply
with the terms herein.
Page 16
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan,
Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing
papers, including a no-litigation certificate. On the date of settlement payment for the Bonds
shall be made in federal, or equivalent, funds which shall be received at the offices of the City
or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms
of payment for the Bonds shall have been made impossible by action of the City, or its agents,
the purchaser shall be liable to the City for any loss suffered by the City by reason of the
purchaser's non-compliance with said terms for payment.
CONTINUING DISCLOSURE
On the date of the actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking whereunder the City will covenant to provide, or cause to be
provided, annual financial information, including audited financial statements of the City, and
notices of certain material events, as specified in and required by SEC Rule 15c2-12(b)(5).
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly-final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 20 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 May 7, 1996 BY ORDER OF THE CITY COUNCIL
/s/Susan M. Walsh
Clerk
Page 17