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Home My WebLink About9.b. Accept Bids and Award Sale - G.O. Storm Water Revenue Bonds, Series 1994B CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: July 5, 1994 AGENDA ITEM: Accept Bids and Award Sale - G.O. Storm AGENDA SECTION: Water Revenue Bonds, Series 1994B Old Business PREPARED BY: Jeff May, Finance Director AGENDA N .�'�I� � 9 B ATTACHMENTS: Draft Resolution and Official APPROVED BY: Statement{See Agenda Item # ) _� At 1 1 :00 A.M. Tuesday, July 5, 1994, sealed bids for G.O. Storm Water Revenue Bonds, Series 1994B, will be opened and the results tabulated at the offices of Springsted Inc. A representativ8 from Springsted will be present at the July 5th Council meeting to give Springsted's 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 ACCEPTfNG OFFER ON THE SALE OF 5335,000 GENERAL ', OBLIGATION STORM WATER REVENUE BONDS, SERIES 1994B AND PROVIDING FOR THEIR ' ISSUANCE. COUNCIL ACTION: OFFICIAL STATEMENT DATED J NE 21, 1994 Ratings: Requesiedestors Servi ce NEW ISSUES in fhe opinion of Briggs and M�rg n�an{d de'very ofhe tBonds�to te on'ginal p�has r thereo�the intere�l on he So d sgexcluded from gross decisions, at the time of the ses and is excludecl, to the same extent, m bofh gross income and taxable net income for State of income for United States income tax purpo Minnesota income tax purposes(other than Minnesota franchise taxes measured by inc me and imposed on corporations and f+nancial institu6ans), and is not an item of tax preference for purposes of the federai aitemative minimum C imposed on mdividuals and co►porations or the Minnesota altemative minimum tax app6cable to indrviduals, estates or trusts; provided, howeve, thaf for the purpose of computing the federa! altemative minimum tax impos�in noth�sta enor federalttaxSconsequences causenby thetrecelpt 8accrv�of interest o�e Bondsro�a s�ing with respect�o Bond Counselrega g ownership of the Bonds. See'TAX EXEMPTION"and"OTHER FEDERAL TAX CONS/D RATIONS"herein. City of Rosemount, Mi nesota $1,605,000 General Obligation Improvement B nds, Series 1994A (the"improvement Bon s") $335,000 General Obligation Storm Water Reven e Bonds, Series 19948 (the"Stonn Water Bon s") $700,000 General Obligatiort State Aid Street onds, Series 1994C (the"State Aid Street Bo ds") Rosemount Port Authori , Minnesota $1,630,000 General Obligation Bonds, eries 1994A (the"Port Authority Bo ds") (collectively referred to as the"Bond "or the"issues") Dated Date: August 1,1994 ` The Improvement Bonds will bear interest payable on February 1 and Augus 1,commencing February 1, 1995 and wili mature February 1 as follows: Zpp1 $155,000 2003 $170,000 2005 $190,000 1997 $130,000 1999 $140,000 2002 $160,000 2004 $180,000 2006 $200,000 1998 $135,000 2000 $145,000 The Storm Water Bonds will bear interest payable on February 1 and Augus 1,commencing February 1, 1995 and will mature February 1 as follows: 2000 $30,000 2002 $30,000 2004 $35,000 1996 $60,000 1998 $25,000 2p01 $35,000 2003 $30,000 2005 $40,000 t997 $25,000 1999 $25,000 The State Aid Street Bonds will bear interest payable on April 1 and Octobe 1,commencing April 1, 1995 and will mature April 1 as follOws: 2001 $75,�00 2003 $8Q000 1995 $65,000 1997 $60,000 1999 $65,000 2002 $75,000 2004 $85,000 1996 560,000 1998 $65,000 2000 $70,000 The Port Authority Bonds will bear interest payable on February 1 and Aug st 1,commencing Februaty'1, 1995 and will mature February 1 as foNows: 2003 $100,000 2006 $115,000 2009 $140,000 1997 $75,000 2000 $85,000 2004 $105,000 2007 $125,000 2010 $145,000 1998 $80,000 2001 $90,000 2005 $110,000 2008 $130,000 2011 $155,000 1999 $80.000 2002 $95,000 Common to All Issues The Improvement Bonds,the Storm Water Bonds,and the Port Authority Bo ds due on or after February 1,2004 are callable on February 1,2003 and any day thereafter at a price of par plus accrued intere . The City may elect on April 1,2003 and any day thereafter to prepay the State Aid Street Bonds due on Apnl 1,2004. All pre ayments shall be at a price of par plus accrued interest. The Bonds will be bank-qualified tax-exempt obligations pursuant to Section 65(b)(3)of the Intemal Revenue Code of 1986,as amended,and will not be subject to the altemative minimum tax for individua s. The Bonds will be issued in integral multiples of$5,000,as requested by the Purchaser(s),and will be fully registered as to principa! and interest. The Bonds will be delivered without cost to the Purchaser(s)w hin 40 days following the date of their award. The Issuer will name the Registrar and pay for registration services. PROPOSALS RECEIVED: July 5,1994(Tuesd y)at 11:OQ A.M.,Central Time PORT AUTHORITY AWARD; July 5,1994(Tue day)at 5:15 P.M.,Central Time CITY AWARD: Juty 5,1994(Tuesday) 7:30 P.M.,Central Time Further infortnation may be obtained from SPRINGSTED S P R�N G S-�-E� Incorporated, Financial Advisor to the Issuer, 85 East Seventh Place, Sude 100, Saint Paul, Minnesota 55101 PUBLIC FINANCE ADVISORS (612)223-3000 i 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 O�cial Statement, when further supplemented by an addendum or addenda specifying 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 Issuer with respect to the Obligations, as that term is defined in Rule 15c2-12. Any such addendum shall, 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 undenivriter 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 IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE ISSUER SINCE THE DATE THEREOF. 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 O�cial Statement or the Final Official Statement, they will be fumished on request. '� r � TABLE OF CONTEN S Pa s $1,605,000 General Obligation Improvement Bonds, Seri s 1994A . ... Terms of Proposal .................. ....... ................... ......... .......... i-m ................................... Scheduleof Bond Years ........................................... ....... ................... ......... ....,..... iv $335,000 General Obligation Storm Water Revenue Bon s, Series 1994B Terms of Proposal ............................ ................................................ v-vu ......................... ... Schedule of Bond Years ........ ................................................ viu $700,000 General Obligation State Aid Street Bonds, Se ies 1994C . . ' Terms of Proposal ....................• .................................... ........... ix-xi ..........................._... Scheduleofi Bond Years ........................................... .......................... ..................... xii $1,630,000 General Obligation Bonds, Series 1994A ... Termsof Proposal ...........................................................................:.......................... xw-xv Schedule of Bond Years ............................................................................................ xvi TheImprovement Bonds .................................................................................................. 1-2 TheStorm Water Bonds......................,.................................. ......... ......... .......,............. 2 The State Aid Street Bonds ............................................ ....... ............................. ........... 2-3 The Port Authority Bonds..................................... .......... ....... ............................. ........... 3 � Future Financing.................................................: ......._.. ....... ............................. ..,.._..... 3 Litigation ........................... ................. :.................. ........... 4 .............................................. Legality ................................................... ........................... ...;..... ........... 4 ........................ TaxExemption................................................................ ....... ................... •• 4 Other Federal Tax Considerations............. .................... ....... ............................. ........... 4-5 Bank-Qualified Tax-Exempt Obligations ............. ........... ...............:. ..........................•--.. 5 Ratings ............................ ......................... ......: ....:.... .................. ............ 6 ..................... FinancialAdvisor............................................................ ....... ............................ ............ 6 Certification.................................... .................... ........... ....... .................. ......... ............ 6 City Property Values .............. ......... ......... ............................ ......... ........... 7-8 .... .... CityIndebtedness........ .............. ......... ................... .................. .....:... ......... ............ 8-12 City Tax Rates, Levies and Collections................................................................ ............ 13 Fundson Hand................................................................................ ......... ......... ............ 14 General Information Concerning the City....................... ....... ................... ......... ............ 14-17 Governmental Organization and Services. .................... ....... ......... ......... ......... ............ 17-18 ThePort Authority....................:..................................... ....... ......... ......... ......... ............ 19 � Proposed Form of Legal Opinions ........... .................... ......_ ......... ......... ............. Appendix I Summary of Tax Levies, Payment Provisions, and Minnesota Real Property Valuation ............................ ............. .......... ....... .._..... Appendix II Annual Financial Statements ............................ ........... ....... ......... ......... ............• Appendix III ProposalForms ................... .......:.................... ........... ....... ......... ....................... fnserted I ' (This page was left blank intentionally.� � � � � � � � � ; � � � � � � � I� THE CITY HAS AUTHORIZED SPRINGSTED INC PORATED TO NEGOTIATE THIS - ISSUE ON ITS BEHALF. PROPOSALS WILL BE REC 1VED ON THE FOLLOWING BASIS: TERMS OF PROPO AL $1,605,000 CITY OF ROSEMOUNT, MI NESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1994A ' Proposals for the Bonds will be received on Tuesday, uly 5, 1994, 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 tab lated. Consideration for award af the Bonds will be by#he City Council at 7:30 P.M., Central Ti e, of the same day. DETAILS OF THE BO DS The Bonds wiU be dated August 1; 1994, as the date f original issue, and will bear interest payable on February 1 and August 1 of each year, com encing February 1, 1995. Interest will be computed on the basis of a 360-day year of finrelv 30-day months. The Bonds will be issued in the denomination of$5,000 each, or in integra multiples thereof, as requested by the purchaser, and fully registered as to principal and intere t. Principal wi11 be payable at the main corporate office of the registrar and interest on each Bo d will be payable by check or draft of the registrar mailed to the registered holder thereof at th holder's address as i#appears on the books of the registrar as of the close of business on the 15th day of the immediately preceding month. The Bonds will mature February 1 in the years and amo nts as fotlows 1997 $130,000 2001 $155,000 2004 $180,000 1998 $135,000 2002 $160,000 2005 $190,000 1999 $140,000 2003 $170,000 2006 $200,000 2000 $145,000 OPTIONAL REDEMP ION The City may elect on February 1, 2003, and on any da thereafter, to prepay Bonds due on or after February 1, 2004. Redemption may be in whole r in part and if in part, at the option of the City and in such order as the City sha0 determine an within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par lus accrued interest. SECURITY AND PUR OSE The Bonds will be general obligations of the City for wh ch 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 benefitted property. The proceed will be used for street improvements in the City. I TYPE OF PROPOS LS Proposals shall be for not less than $1,582,530 and accrued interest on the total principal I 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 urety Bond in the amount of$16,05Q, - i - � � � 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#o 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 adjoumed, 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. REGISTRAR The City will name the registrar which shall be subje�t to applicable SEC regulations. The City will pay for the services of the registrar. 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, which opinion will be printed on the Bonds, and of customary closing papers, including a no-litigation certificate. On I 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#he City for - ii - ? ' ; any loss suffered by the City by reason of the purchas r's non-compliance with said terms for payment. OFFICIAL STATEM NT The City has authorized the preparation of an icial Statement containing pertinent information relative to the Bonds, and said Official State ent wiil serve as a nearly-final O�cial Statement within the meaning of Rule 15c2-12 of the ecurities and Exchange Commission. For copies of the Official Statement or for any ad itional information prior to sale, any prospective purchaser is referred to the Financial Advis r to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesot 55101, telephone (612) 223-3000. The Official Statement, when further supplemented by a addendum or addenda specifying the maturity dates, principal amounts and interest rates f the Bonds, together with any other information required by law, shall constitute a "Final O cial Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2 12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a pro osal therefor, the City ag�ees that, no more than seven business days after the date of such a ard, i#shatl provide without cost to the senior managing underwriter of the syndicate to which t e Bonds are awarded 65 copies of the Official Statement and the addendum or addenda des ribed above. The City designates the senior managing undennrriter of the syndicate to which e Bonds are awarded as its agent for purposes of distributing copies of the Final Official Stat ent to each Participating Underwriter. Any undennrriter 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 Underwrite of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Finaf Official Statement. Dated June 7, 1994 BY ORDER OF THE CITY COUNCIL /s/Susan Walsh City Clerk 1 -iii- i SCHEDULE OF BOND YEARS $1,605,000 CITY OF ROSEMOUNT, MINNESOTA ' GENERA�OBUGATION IMPROVEMENT BONDS, ' SERIES 1994A ' Cumulative ' Year Principal Bond Years- Bond Years ' 1997 $130,000 325_.0000 325.0000 ' 1998 $135,000 472.5000 797.5000 ' 1999 $140,000 630.0000 1 ,427.5000 2000 $145,000 797.5000 2,225.0000 ' 2001 $155,000 1 ,007.5000 3,232.5000 ', 2002 $160,000 1 ,200.0000 4,432.5000 , 2003 $170,000 1 ,445.0000 5,877.5000 2004 $180,000 C 1 ,710.0000 7,587.5000 ', 2005 $190,000 c 1 ,995.0000 9,582.5000 ' 2006 $200,000 C 2,300.0000 11 ,882.5000 Average Maturity: 7.40 Years , , Bonds Dated: August 1 , 1994 Interest Due: February 1, 1995 and each February 1 and August i to maturity. ' Principal Oue: February 1 , 1997-2006 inclusive. Optional Call: Bonds maturing on or after February i , 2004 are callable commencing February 1 , 2003 and any date thereafter at par. (See Terms of Proposal.) c: subject to optional cali I - iv - ' � ' THE CITY HAS AUTHORIZED SPRtNGSTED INC RPORATED TO NEGOTIATE THfS ISSUE ON ITS BEHALF. PROPOSALS WILL BE REC IVED ON THE FOLLOWING BASIS: TERMS OF PROPO AL $335,000 CITY OF ROSEMOUNT, M NNESOTA GENERAL OBLIGATION STORM ATER REVENUE BONDS, SERIES 1 94B Proposals for the Bonds will be received on Tuesday, July 5, 1994, until 11:00 A.M., Central Time, at the offices of Springsted Incorporated, 85 Eas Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and ta ulated. Consideration for award of the Bonds will be by the City Council at 7.30 P.M., Central ime, of the same day. DETAILS OF THE B NDS � The Bonds will be dated August 1, 1994, as ,the date of original issue, and will bear interest payable on February 1 and August 1 of each year, com encing February 1, 1995. Interest will be computed on the basis of a 360-day year of finrel e 30-day months. The Bonds wi8 be issued in the denomination of$5,000 each, or in integr I multiples thereof, as requested by the purchaser, and fully registered as to principal and intere t. Principal will be payable at the main corporate o�ce of the registrar and interest on each B nd will be payable by check or draft of the registra�mailed to the registered holder thereof at t e holder's address as it appears on the books of the registrar as of the close of business on th 15th day of the immediately preceding month. The Bonds will mature February 1 in the years and amo nts as follows 1996 $60,000 2000 $30,000 2003 $30,000 1997 $25,000 2001 $35,000 2004 $35,000 1998 $25,000 2002 $30,000 2005 $40,000 1999 $25,000 OPTIONAL REDEMP ION The City may elect on February 1, 2003, and on any da thereafter, to prepay Bonds due on or after February 1, 2004. Redemption may be in whole r in part and if in part, at tMe option of the City and in such order as the City shall determine a d within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par lus accrued interest. SECURITY AND PUR OSE The Bonds will be general obligations of the City far w ich the City will pledge its full faith and credit and power to levy direct general ad valorem tax s. In addition the City will pledge net revenues of the storm water utility. The proceeds will be used to finance the costs of storm water improvement projects within the City . TYPE OF PROPOS LS Proposals shall be#or not less than $330,310 and accru d interest on#he#otal<principak amount of the Bonds. Proposals shall be accompanied by a G od Faith Deposit{"Deposit") in the form - v- , of a certified or cashier's check or a Financial Surety Bond in the amount of$3,350, payable to � the arder 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 b.e withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjoumed, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1I8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate ftom 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. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City wiU pay for the services of the registrar. 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. SEITLEMENT 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, which opinion will be � printed on the Bonds, 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 -vi - any loss suffered by the City by reason of the purchas r's non-compliance with said #erms for payment. OFFICIAL STATEM NT The City has authorized the preparation of an icial Statement containing pertinent information relative to the Bonds, and said Official Stat ment will serve as a nearly-final`OfFcial Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any ad itional information prior to sale, any prospective purchaser is referred to the Financial Advi or to the City, Springsted incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesot 55101, telephone (612) 223-3000. The Official Statement, when further supplemented by n addendum or addenda specifying the maturity dates, principal amounts and interest rates f the Bonds, together with any other information required by iaw, shall constitute a "Final O cial Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2 12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a pro osal therefor, the City agrees that, no more than seven business days after the date of such ard, it shall provide without cost to the senior managing underwriter of the syndicate to which t e Bonds are awarded 15 copies of the Official Statement and the addendum or addenda des ribed above. The City designates the � senior managing underwriter of the syndicate to which he Bonds are awarded as its agent for purposes of distributing copies of the Final Official Stat ment to each Participating Underwriter. Any undenroriter delivering a proposal with respect t 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 Underwrite of the Bonds forpurposes of assuring the receipt by each such Participating Underwriter of th Final Official Statement. Dated June 7, 1994 BY ORDER OF THE CITY COUNCIL Isf Susan Walsh City Clerk -vii _ SCHEDULE OF BOND YEARS ;335,000 CIT1(OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 1994B Cumulative Year Principal Bond Years Bond Years 199g $60,000 90.0000 90.0000 1997 $25,000 62.5000 152.5000 1998 $25,000 87.5000 240.0000 1999 $25,000 112.5000 352.5000 2000 $30,000 165.0000 517.5000 2001 $35,000 227.5000 745.0000 2002 $30,000 225.0000 970.00OQ 2003 $30,000 255.0000 1 ,225.0000 2004 $35,000 c 332.5000 1 ,557.5000 2005 $40,000 C 420.0000 1 ,977.5000 Average Maturity: 5.90 Years , Bonds Dated: August 1 , 1994 Interest Due: February 1 , 1995 and each February 1 and August 1 to maturity. Principal Due: February 1, 1996-2005 inclusive. Optional Call: Bonds maturing on or after February 1 , 2004 are callable commencing February 1 , 2003 and any date thereafter at par. (See Terms of Proposal.) c: subject to optional call � -viii - THE CITY HAS AUTHORIZED SPRINGSTED INC RPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RE EIVED ON THE FOLLOWING BASIS: TERMS OF PROP AL $700,000 GITY OF ROSEMOUNT, M NNESOTA GENERAL OBUGATION STATE A D STREET BONDS, SERIES 1994C Proposals for the Bonds will be received on Tuesday, July 5, 1994, until 11:00 A.M., Central Tirne, at the offices of Springsted Incorporated, 85 Ea t Seventh Place, Suite 100, Saint Paui, Minnesota, after which time they will be opened and ta ulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central ime, of the same day. DETAILS OF THE B NDS The Bonds will be dated August 1, 1994, as the date of original issue, and will bear interesf payable on April 1 and October 1 of each year, com encing April 1, 1995. fnterest will be computed on the basis of a 360-day year of finrelve 30 ay months. The Bonds will be issued in � the denomination of $5,000 each, or in integral ultiples thereof, as requested by the purchaser, and fully registered as to principal and inter st. Principal will be payable at the main corporate office of the registrar and interest on each B nd will be payable by check or draft of the registrar mailed to the registered holder thereof at t e holder's address as it appears on the books of the registrar as of the close of business on th 15th day of the immediately preceding month. The Bonds will mature April 1 in the years and amounts as follows 1995 $65,000 1999 $65,000 2002 $75,000 1996 $60,000 2000 $70,000 2003 $80,000 1997 $60,000 2001 $75,000 2004 $85,000 1998 $65,000 OPTIONAL REDEM TION The City may elect on April 1, 2003, and on any day th reafter, to prepay Bonds due on or after April 1, 2004. Redemption may be in whole or in part d if in part, at the option of the City and in such order as the City shall determine and withi a maturity by lot as selected by the registrar. All prepayments shall be at a price of par plu accrued interest. SECURITY AND PU POSE The Bonds will be general obligations of the City for ich the City wilt pledge its full faith and credit and power to levy direct general ad valorem tax s. The proceeds will be used#or str+eet improvements TYPE OF PROPO ALS Proposals shall be for not less than $690,200 and accr ed interest on the total principal amount of the Bonds. Proposals shall be accompanied by a G od Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety ond in the amount of$7,000, payable to - ix - ; 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 adjoumed, 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. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulatians. The City will pay for the services of the registrar. • 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 constRute cause for failure or refusat 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 af an approving legal opinion of Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no-litigation certificate. On j the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offlces 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 -x - 1 � - -- __ , any loss suffered by#he City by reason of the purcha er's non-compliance with said terms for � payment. - OFFICIAL STATE ENT The City has authorized the preparation of an fficial Statement containing pertinent information relative to the Bonds, and said Official Stat ment 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 a itional information prior to sale, any prospective purchaser is referred to the Financial Advi or to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minneso a 55101,#elephone (612) 223-3000. The Official Statement, when further supplemented by n addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other anformation required by law, shall constitute a "Final O cial Statement° of the City with respect to the Bonds, as that term is defined in Rule 15c -12. By awarcling the Bonds to any underwriter or underwriting syndicate submitting a pr posal #herefor, the City agrees that, no : more than seven business days after the date of such ward, it shall provide without cost to the senior managing underwriter of the syndicate to which he Bonds are awarded 30 copies of the Official Statement and the addendum or addenda de cribed 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 Stat ment to each Participating Underwriter. Any underwriter delivering a proposal with respect t the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept suc designation and (ii) it shall enter into a contractual relationship with all Participating Underwrit �s of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of th Final Official Statement. Dated June 7, 1994• BY ORDER OF THE CITY COUNCIL /s/Susan Watsh City Clerk ( � I -xi- �--- SCHEDULE OF BOND YEARS $700,000 CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION STATE AID STREET BONDS, SERIES 1994C Cumulative Year Principal Bond Years Bond Years 1995 $65,Q00 43.3333 43.3333 1996 $64,000 100.0000 143.3333 1997 $60,000 160.0000 303.3333 1gg8 $fi5,000 238.3333 541 .6666 1999 $65,000 303.3333 844.9999 2000 $70,000 396.6667 1 ,241 .6666 2001 $75,000 500.0000 1 ,741 .6666 2002 $75,000 575.0000 2,316.6666 2003 $80,000 693.3333 3,009.9999 2004 $85,000 C 821 .6667 3,831 .6666 Average Maturity: 5.47 Years Bonds bated: August 1 , 1994 Interest Due: April 1 , 1995 and each April 1 and October 1 to maturity. Principal Due: April 1 , 1995-2004 inclusive. Optional Call: Bonds maturing on April 1 , 2004 are callable commencing April 1 , 2003 and any date thereafiter at par. (See Terms of Proposal.) c: subject to optional call 1 � -xii - i , THE AUTHORITY HAS AUTHORIZED SPRINGSTE INCORPORATED TO NEGOTIATE THIS ISSUE ON IT5 BEHALF. PROPOSALS WILL E RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROP SAL $1,630,000 ROSEMOUNT PORT AUTHORi , MINNESOTA GENERAL OBLIGATION BOND , SERIES 1994A Proposais for the Bonds wili be received on Tuesday July 5, 1994, untii 11:Q0 A.M., Central Time, at the offices of Springsted incorporated, 85 Ea t Seventh Place, Suite 100, Saint Paui, Minnesota, after which time they will be opened and ta ulated. Consideration for award of the Bonds will be by the Authority at 5:15 P.M., Central Tim , of the same day. DETAILS OF THE B NDS The Bonds will be dated August 1, 1994, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, co mencing February 1, 1995. lnterest will be computed on the basis of a 360-day year of finrel e 30-day months. The 8onds will be , issued in the denomination of$5,000 each, or in integr I multiples thereof, as requested by the purchaser, and fully registered as to principal and inter $t. Principal_wi.11 be payable at the main corporate office of the registrar and interesfi on each nd wilt be payable by check or draft of the registrar mailed to the registered holder thereof at t e holde�'s address as it appears on the books of the registrar as of the close of business on th 15th day of the immediately preceding month. The Bonds will mature February 1 in the years and am unts as follows: 1997 $75,000 2001 $ 90,000 2 05 $110,000 2009 $140,000 1998 $80,000 2002 $ 95,000 2 06 $115,000 2010 $145,000 1999 $80,000 2003 $100,OQ0 2 07 $125,000 2011 $155,000 2000 $85,000 2004 $105,000 2 08 $130,000 OPTIONAL REDEM TION The Authority may elect on February 1, 2003, and on ny day thereafter, to prepay Bonds due on or after February 1, 2004. Redemptian may be in w ole or in part and if in part,at the option of the Authority and in such order as the Authority sh II determine and within a maturity by lot as selected by the registrar. All prepayments shall be t a price of par plus accrued interest. SECURITY AND PU POSE The Bonds will be general obligations of the City of Ro emount for which the City of Rosemount will pledge its full faith and credit and power to levy.direct general ad valorem taxes. The proceeds wiU be used to finance site work improvemen s for development of a business park. ` � TYPE OF PROPO ALS Proposals shaH be for not less than $1,607,408 an accrued interest on the total principal amount of the Bonds. Proposals shall be accompanie by a Good Faith Deposit ("Deposit") in - xiii - L _ _ _ _� the form of a certified or cashier's check or a Financial Surety Bond in the amount of$16,300, � payable to the order of the Authority. If a check is used, it rnust 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 Authority. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the Authority to satisfy the Deposit requirement. The Authority will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the Authority. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the Authority scheduled for award of the Bonds is adjoumed, 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 Authority's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The Authority will reserve the right to: (i)waive non-substantive informalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the Authority determines to have failed to comply with the terms herein. REGISTRAR The Authority will name the registrar which shall be subject to appHcable SEC regulations. The Autho�ity will pay for the services of the �egistrar. 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 Authority and the pu�chaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of Saint Paul and Minneapofis, Minnesota, which opinion will be � printed on the Bonds, and of customary closing papers, including a no-litigation certificate. On � the date of settlement payment for the Bonds sha1F be made in federal, or equivalent, funds � which shall be received at the offices of the Authority or its designee not later than 12:00 Naon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the Authority, or its agents, the purchaser shall be liable to the - xiv - ; � Authority for any loss suffered by the Authority by rea on of the purchaser's non-compliance with said terms for payment. OFFICIAL STATEM NT The Authority has authorized the preparation of an icial Statement containing pertinent information relative to the Bonds, and said Official Stat ment will serve as a nearly-final Official Statement within the meaning of Rule 15c2-12 of the ecurities and Exchange Commission. For copies of the Official Statement or for any ad itional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the Authority, Springsted Incorporated, 85 East Seventh Place, Suite 100, Sa nt Paul, Minnesota 55101, telephone (612) 223-3000. The Official Statement, when further supplemented by n addendum or addenda specifying the maturity dates, principal amounts and interest rates f the 8onds, together with any other information required by law, shall constitute a "Final icial Statement" of the Authority with respect to the Bonds, as that term is defined in Rule 1 c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a prop sal therefor, the Authority agrees that, no more than seven business days after the date of su h award, it shall provide without cost to the senior managing undervvriter of the syndicate to whi the Bonds are awarded 90 copies of the Official Statement and the addendum ar adde da described above. The Authority designates the senior managing undervuriter of the syn icate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the Authority (i) it shall accept such designation and (ii) it shaU enter into a contract al relationship dtith aH Participating Underwriters of the Bonds for purposes of assuring he receipt by each such Participating Underwriter of the FMaI Official Statement. Dated June 7, 1994 Y ORDER 4F THE PORTAUTH4RITY !s/Thomas Burt Executive Director - xv - SCHEDULE OF BOND YEARS $1,630,000 ROSEMOUNT PORT AUTHORITY, MINNESOTA GENERAL OBUGATION BONDS, SERIES 1994A Cumulative Year Principal Bond Years Bond Years 1997 $75,000 187.5000 187.5000 1998 $80,000 280.0000 467.5000 1999 $80,000 360.0000 827.50Q0 2000 $85,000 467.5000 1 ,295.0000 2001 $90,000 585.0000 1 ,880.0000 2002 $95,000 712.5000 �2,592.5000 2003 $100,000 850.0000 3,442.5000 2004 $105,000 c 997.5000 4,440.0000 2005 $110,OQ0 c 1 ,155.0000 5,595.0000 2006 $115,000 c 1 ,322.5000 6,917.5000 2007 $125,000 C 1 ,562.5000 8,4$0.0000 2008 $130,000 c . 1 ,755.0000 10,235.0000 2009 $14d,000 C 2,030.0000 12,265.0000 2010 $145,000 c 2,247.5000 14,512.5000 2011 $155,000 c 2,557.5000 17,070.0400 Average Maturity: 10.47 Years Bonds Dated: August 1 , 1994 Interest Due: February 1, 1995 and each February 1 and August 1 to maturity. Prirtcipal Due: February 1, 1997-2011 inclusive. Optional Ca11: Bonds maturing on or after February 1 , 2004 are callable a commencing February 1 , 2003 and any date thereafter at par. � (See Terms of Proposal.) c; subject to optional call -xvi - OFFICIAL STATE ENT CITY OF ROSEMOUNT, INNESOTA $1,605,000 GENERAL OBLIGATION IMPROVEME T BONDS, SERIES 1994A $335,000 GENERAL OBUGATION STORM WATER R ENUE BONDS, SERIES 1994B $700,000 GENERAL OBLIGATION STATE A1D STR ET BONDS, SERIES 1994C ROSEMOUNT PORT AUTHOR TY, MINNESOTA $1,630,000 GENERAL OBLIGATION BON S, SERIES 1994A This Official Statement contains certain informatio relating to the City of Rosemount, Minnesota ("the City") and its issuance of$1,605,000 eneral Obligation fmprovement Bonds, Series 1994A (the "Improvement Bonds"); $335,000 neral Obligation Storm Water Revenue Bonds, Series 1994B (the "Storm Water Bonds"); an $700,000 General Obligation State Aid Street Bonds, Series 1994C (the "State Aid Street Bonds"). This Official Statement also contains certain information relating to the Rose ount Port Autharity, Minnesota {the "Authority'� and its issuance of$1,630,000 General 0 ligation Bonds, Series 4994A (the "Port Authority Bonds"). All are collectively referred to as t e "Bonds" or the "Issues." The Bonds are general obligatiQns of the City of Rosemount for hich #he City pledges its full faith and credit and power#o levy direct generat ad valorem#axe without limit as to rate or amount. The purpose and additional sources of security of the Band are further descrit�d herein. Inquiries may be directed to Mr. Thomas Burt, City dministrator, City of Rosemount, 2875- 145th Street West, Rosemount, Minnesota 55068-0 10, or by telephoning (612) 423-4411. Inquiries can also be made to Springsted Incorporat , 85 East Seventh Place, Suite 100, St. Paut, Minnesota 55101-2143, or by telephoning (61 223-3000. ff infonnation of a spec�c legal nature is desired, requests may be directed to s. Mary Dyrsethr Briggs and Morgan of St. Paul, Minnesota, Bond Counsel, 2200 First Nati al Bank Building, St. Paul, Minnesota 55101, or by telephoning (612} 223-6625. The Improvement Bonds Authoritv and Purpose The Improvement Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. Proceeds of the Improvement Bonds will be u ed to finance various street and utility improvemerrts in the City. Components of the Issue ar as follows: Proje�t Costs - $1,445,000 Issuance Costs 16,900 ` Capitalized Interest(through February 1, 1996) 123,900 Allowance for Discount Bidding 22,470 Less: Estimated Investment Eamings (3,270) � Total tmprovement Bonds $1.605.fJ00 - 1 - Securit�and Financina In addition to its general obligation pledge, the City pledges special assessments against benefited property. Special assessments totaling approximately $1,605,000 are expected to be filed on or before October 1, 1995 for first collection in 1996 and will be spread over 1O years in equal annual principal and interest installments. Interest will be charged on the unpaid balance at a rate of approximately 2% over the interest rate received on the 1mprovement Bonds. The interest payments due February 1, 1995, August 1, 1995, and February 1, 1996, because they are due prior to the receipt of assessment income, will be made from capitafized interest. Thereafter, special assessment collections are expected to be sufficient to pay 105% of the August 1 interest due in the year of assessment collection and the February 1 principal and interest payment due in the following year. The City anticipates receiving average annual assessment income of approximately $236,801 for payment of the Improvement Bonds. The Storm Water Bonds Authori� and Purpose The Storm Water Bonds are being issued pursuant to Minnesota Statutes, Chapters 444 and 475. Proceeds from the Storm Water Bonds will be used to finance improvements to the City's storm water infrastructure. Components of the Issue are as follows: Project Costs: 145th Street Reconstruction $ 39,000 Shannon Hills 6th Addition 70,000 Wachter 186A Outlet 216,000 Issuance Costs 9,100 Allowance for Discount Bidding 4,690 Less: Estimated Investment Earnings 3 7 ) Total Storm Water Bonds 33 00 Security and Financing In addition to its general obligation pledge, the Cify pledges net revenues of its Storm Water Utility (the "Utility") established by the.City in March 1992. In accordance with Section 444.075 of Minnesota Statutes, the City covenants to charge rates sufficient to generate net operating revenues of the Utility that will be sufficient to meet debt service requirements on the Storm Water Bonds. The Utility generated $240,273 of revenue net of expenditures in 1993. Excluding the Storm Water Bonds, the Utility fias one existing claim to net revenues, the Storm Water Revenue Bonds of 1992. Average annual combined debt service on both obligations of the Utility are expected to be $188,949. The State Aid Street Bonds Authority and Purpose The State Aid Street Bonds are being issued pursuant to Minnesota Statutes, Chapters 162 and ' 475. The proceeds of the State Aid Street Bonds will be used for street improvements. The ' composition of the Issue is as shown on the following page. -2 - Project Costs: 145th Street Reconstruction $680,000 Issuance Costs 12,300 Allowance for Discount Bidding 9,800 tess: Estimated Investment Earnings �2.100) Total State Aid Street Bonds 740 00 . Security and Financinq In addition to its generaf obligation pledge, the Ci pledges its allotment of the State of Minnesota's municipal state aid street fund. The City ill issue the State Aid Street Bonds on such terms as required by Minnesota Statute 162.18; hat the average annual debt service will be less than 50% of the City's 1994 annual constructio allotment. The annual debt service on the State Aid Street Bonds is expected to be $89,59 , the City's yearly allottments for 1994 through 1992 were $385,738, $396,365, and $368,082 espectively. Interest and principal due on April 1, 1995 and interes due on October 1 will be payable from the City's construction allotment received on or around February 1 of the same year. This cycie is expected to continue through the life of the Issue. The Port Authority Bonds Authority and Purnose The Port Authority Bonds are being issued pursuant o Minnesota Statutes, Section 469.060. Proceeds of the Port authority Bonds will be used to nance improvements to the Rosemaunt Business Park. The 80-acre site is located near t e intersection of County Road 42 and Highway 3. Components of the Issue are as follows � Project Costs, Engineering and Conting ncy $1,509,357 Issuance Costs 48,200 Capitalized Interest(through August 1, 1 95) 83,305 Allowance for Discount Bidding 22,820 Less Estimated Irtvestment Earnings (3.6821 Total Port Authority Bonds $1.630.000 Securi and Financinq The Port Authority Bonds wifl be general obligations of he City of Rosemount for which the City pledges its full faith and credit and power to le�y direct eneral ad valorem taxes. The first interest payment due February 1 and Aug st 1, 1995, will be paid by capitalized interest included in the Issue. Thereafter, each Augus 1 semiannual interest payment and the subsequent February 1 payment of principal and inte est will be made from ad valorem tax levies. C Future Financing The City and the Authority have no plans for any long-t rm borrowing in the next 90 days. -3- Litigation The City and the Authority are not aware of any threatened or pending litigation affecting the validity of the Bonds or the City or Authority's ability to meet their 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 verify, any of the financial or statistical statements or data contained in this Official Statement and will express no opinion with respect thereto. Legal opinions 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 laws, 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 income 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 altemative 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 eamings for purposes of computing the alternative 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 Bonds from federal gross income and state gross and taxable net income, however, depends upon compliance by the City and the Authority with all requirements of the Intemal 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 and the Authority will covenant to comply with requirements necessary under the Code to establish and maintain the Bonds as tax-exempt under Section 403 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 Pro e�rty 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 Augusf 7, 1986, including interest on the Bonds. -4- � Foreign Insurance Com anies Foreign companies carrying on an insurance business n the United States are subject to a tax on income which is effectively connected with their c nduct 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. Branch Profits Tax A foreign corporation is subject#o a branch profits tax qual to 30% of the "dividend equivalent amount° for the taxable year. The "dividend equival nt amount" is the foreign corporation's "effectively connected eamings and profits" adjusted for increase or decrease in "U.S. net equity." A branch's eamings and profits may include t x-exempt municipal bond interest, such as interest on the Bo�ds. Environmental Tax An environmental tax is imposed on corporations in a amount equal to 0.12%0 (or $1,200 per $1,000,000) of the excess of the "modified altemati e minimum taxable income" of such corporation for the taxable year over $2,000,000. he tax applies only to taxable years beginning before January 1, 1996, subject to earlier t rmination for certain specified reasons. Interest on the Bonds is subject to the environmental t x to the e�ctent included in adjusted net book income or adjusted current eamings of a corpor tion whose modified altemative taxable income exceeds $2,00O,OOQ for the taxable years to wh ch it applies. Passive Investment Income ofS Coroorations Passive investment "rncorne, inctuding interest on the B nds, may be subject to federal income taxation under Section 1375 of the Code for an S corp ration that has Subchapter C eamings and profits at the close of the taxable year if more th n 25% of the gross receipts of such S corporation is passive investment income. en r I The preceding is not a comprehensive list of all federal ax consequences which may arise from the receipt or accrual of interest on the Bonds. The re eipt or accrual of interest on the Bonds may otherwise affect the federal income tax (or Minnes ta income tax or franchise tax) liability of the recipient based on the particular taxes to which t e recipient is subject antl the particular tax status of other items of income or deductions. All p ospective purchasers of the Bonds are advised to consult their own tax advisors as to the tax nsequences of, or tax considerations for, purchasing or holding the Bonds. Bank-Qualified Tax-Exempt Obligations The City and the Port Authority will designate the Bon s.as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Internal Reven e Code of 1986, as amended, relating to the ability of financial institutions to deduct from in ome for federal income tax purposes, interest expense #hat is allocable to carrying and a uiring tax-exempt obligations. "Bank- qualified tax-exempt obligations" are treated as acq ired by a financial institution before C August 8, 1986. Interest allocable to such obligations r mains subject to the 20% disallowance under prior law. - 5- Ratings An application for ratings of the Bonds has been made to Moody's Investors Service ( Moody s ), 99 Church Street, New York, New York. If ratings are assigned, they will reflect only the opinion of Moody's. Any explanation of the significance of the ratings may be obtained only from Moody's. There is no assurance that ratings, if assigned, will continue for any given period of#ime, or that such ratings will not be revised or withdrawn, if in the judgment of Moody's, circumstances so waRant. A revision or withdrawal of the ratings may have an adverse effect on the market price of the Bonds. Financial Advisor The Gity and Authority have retained Springsted Incorporated, Public Finance 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 govemmental 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 public accounting firm and has not been engaged by the City or the Port Authority 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 and the Authority have 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(s) will be furnished with a certificate signed by the appropriate officers of the City or the Authority. The certificate will state that as of the date of the Official Statement, it did not and does not as of the date of the certifieate 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. � _g_ CITY PROPERTY V LUES 1993 Indicated Market Value of Taxable Property: $ 57,303,817* ' Ca/culated by dividing the county assessor's estimated market value of$419,347,600 by the 1992 sa/es ratio of 91.7%for the City as determined by the Sta e Department of Revenue. (The 1993 sales ratio is not yet available.) 1993 Tauable Net Tax Capacity: $8,313,353 1993 Net Tax Capacity $9,110,508 Less: Captured Tax Increment Tax Capacity (454,115) Contribution to Fiscal Disparities (�,375,139) Plus: Distribution from Fiscal Disparities 1,032,099 1993 Taxable Net Tax Capacity $8,313,353 1993 Taxable Net Tax Capaciiy by Class of Property Commercial/Industrial, Public Utility and Personal Property* $3,921,570 47.2%0 Residential Homestead 3,845,997 46.2 Non-Homestead Residential 313,995 3.8 Agricultural 221,538 2.7 Railroad 10.253 0.1 Total $8,313,353 100.0%0 ' Reflects adjustments for fisca/disparities and captured ta increment tax capacity. Trend of Values Indicated Esti ated Taxable Tax Market Value�al Ma Value Capacitx(b) 1993 $457,303,817 $419, 7,600 $8,313,353 1992 418,654,706 378, 5,200 7,753,399 1991 388,029,900 350, 91,000 7,648,866 1990 345,155,639 318, 33,500 7,604;632 1989 295,120,543 271, 10,900 6,865,898' �a1 Calculated by dividing the county assessor's estimated arket value by the sales ratio determined for the Cfty each year by the State Department of Revenue. ' �b1 See Appendix 11 for an explanation of tax capacity and o er Minnesota property tax law. '� _7 _ Ten of the Largest Taxpayers in the City 1993 Net - Taxpayer �pe of Business Tax Capacity Great Northern Oil Ca Oil Refinery $1,597,360 Koch Refining Oil Refinery 783,605 Northem States Power Utility 426,678 USPCI Inc. Non-hazardous Waste Containment 183,711 CF Industries, Inc. (Cenex) Fertilizer 152,748 Koch Refining Pipeline Oil Refinery ��889 Wintr Companies Trucking/Warehouse 103,969 Peoples Natural Gas Utility 96,508 Shannon Park Townhouse Partners Townhouses 62,900 NHD Rosemount Woods Assn. Retail/Apartments 53,120 Total $3,565,488" ' Represents 43%of the City's 1993 taxable net tax capacity. CITY INDEBTEDNESS Legal Debt Limit Debt Limit (2% of Estimated Market Value) $8,386,952 Less: Outstanding Debt Subject to Limit �2.120.000) Legal Debt Margin at May 2, 1994 $6,266,952 General Obligation Debt Supported by Taxes Principal Date Original Final Outstanding fo Issue AAmount Pur o e Maturitv As of 5-2-94 4-1-86 $1,300,000 Municipal Building 2-1-1995 $ ' 85,OOO�a� 12-1-91 210,000 Equipment Certificates 12-1-1996 130,OOO�a� 11-1-92 1,080,000 Community Center 2-1 2013 1,060,OOO�a� 11-1-92 3,425,000 Municipal Building 2-1-2018 3,360,OOO�b1 8-1-93 845,000 Municipal Building Refunding 2-1-2002 845,OOO�a1 8-1-94 1,630,000 Port Authority Improvements (the Port Authority Bonds) 2-1-2011 1.630.000 Total $7,110,000 (a1 These issues are subject fo the stafutory debt limit. fb) The City anticipates debt service paymenfs on this issue wi/l be made primari/y from a combination of � user fees from the municipa/ multi purpose arena and tax increment revenues. M addition, the � proceeds of cerfain special tax levies, levied by the City to support fhe new National Guard Armory, wilt also be used to support a portion of fhe debt service on this issue. _ g _ , General Obligation Debt Supported Primarily by Sp cial Assessments Principal Date Original Final Outstanding of Issue Am un Pur o M uri As of 5-2-94 8-1-87 $4,995,000 Locallmprovements 2-1-1996 $1;000,000 7-1-89 2,575,000 Locallmprovements 2-1-1995 250,000 6-1-91 1,180,000 Locallmprovements 2-1-2002 940,000 12-1-91 265,000 Locallmprovements 2-1-2003 235,OQ0 9-1-92 895,000 Locallmprovements 2-1-2004 680,000 11-1-92 1,470,000 Locallmprovements 2-1-2004 1,470,000 8-1-93 555,000 Locallmprovements 2-1-2005 555,000 8-1-93 1,415,000 Improvement Refunding 2-1-2001 1,415,000 8-1-94 1,605,000 Locallmprovements (the Improvement Bonds) 2-1-2006 1.605.,000 Total $8,150,000 General Obligation Debt Supported Primarily by Ta Increments Principal Date Original Final Outstanding af Issue Amoun Pur�ose M uri As of 5-2-94 6-1-88 $1,1`00,000 Tax Increment 2-1-1999 $665,000 General Obligation Debt Supported by Other Soure s � Principal Date Originaf Final Outstanding of s e Amount Pur�.ose M turi As of 5-2-94 8-1-94 $700,000 State Aid Street Bonds , (the State Aid Street Bon s) 2-1-2004 $700,000 General Obligation Debt Supported by Revenues Principal Date Original final Outstanding of Issue Amount Pur�_s� Maturit As of 5-2-94 4-1-89 $1,320,000 Water Revenue 2-1-1997 $ 240,000 ' 9-1-92 1,525,000 Storm Water Revenue 2-1-2008 1,495,000 8-1-93 945,000 Water Revenue Refunding 2-1-2005 945,000 11-1-93 580,000 Port Authority Revenue Ta able 2-1-2009 580,000 8-1-94 335,000 Storm Water Revenue (the Storm Water Bonds) 2-1-2005 335.000 Total� $3,595,000 -9- Annual Catendar Year Debt Service Including These Issues G.O. Debt Supported G.O. Debt Supported Primarily by bX Taxes(a) Saecial Assessments(�1 Principal Principal Year Principal & Interest Prin i I & Inter s 1994 (at 5-2) $ 40,000 $ 207,579 (Paid) $ 245,998 1995 275,000 672,409 $1,180,000 1,734,242 1996 310,000 684,715 1,095,000 2,019,462 1997 360,000 719,415 870,000 1,143,827 1998 405,000 747,198 875,000 1,109,961 1999 420,000 742,912 840,000 1,035,048 2000 315,000 620,357 710,000 867,139 2001 340,000 629,344 690,000 811,222 2002 360,000 631,606 560,000 647,637 2003 245,000 500,351 455,000 514,557 2004 260,000 500,890 435,000 470,033 2005 280,000 505,233 240,000 256,741 2006 295,000 503,384 200,000 205,243 2007 315,000 505,394 2008 335,000 506,120 2009 355,000 505,552 2010 370,000 , 498,839 2011 400,000 505,684 2012 260,000 345,303 2013 280,000 347,772 2014 155,000 208,503 2015 165,000 208,023 2016 180,000 211,680 2017 190,000 209,470 2018 200.000 206.600 Total $7,110,OOO�b1 $11,924,333 $8,150,000 $11,061,110 (a1 Inc/udes the Port Authority Bonds at an assumed average annua/interest rate of 5.6%. (61 43%of this debt wil/be retired within 10 years. (�) Includes the Improvement Bonds at an assumed average annual inferest rate of 5.3%. - 10- Annual Calendar Year Debt Service ficluding Thes Issues(Continued) , G.O. Debt Supported G O. Debt Supported Prim ri b Tax Incr men s by Revenues(a) Principal Principal Year Principal Intere t Princi�al &Jnterest 1994 (at 5-2) (Paid) $ 31,31 (Paid) $ 104,218 1995 $110,000 167,57 $ 135,000 340,425 1996 120,000 166,93 245,000 440,186 1997 130,000 165,24 225,000 395,803 1998 145,000 167,24 245,000 392,613 1999 160,000 167,68 260,000 396,428 2000 270,000 394,181 2001 285,000 395,983 2002 300,000 396,742 2003 340,000 391,460 2004 330,000 394,920 2005 350,000 396,941 2006 185,000 217,315 2007 190,000 211,470 2008 205,000 214,885 2009 60,000 61.920 Total $665,000 $866,00 $3,595,000(b� $5,145,490 �a1 /ncludes the Storm Water Bonds at an assumed average annual interest rate of 5.2%. �b� 63%of this debt witl be retired within 10 years. G.O. Debt S o d r re Principal Year Princi al & Interest 1994 (at 5-2) 1995 $ 65,000 $105,110 1996 60,000 90,946 1997 60,000 87,877 1998 65,000 89,680 1999 65,000 86,355 2000 70,000 87,902 2001 75,000 89,194 2002 75,000 85,358 2003 80,000 86,394 2004 85 0 87,174 Total $700,000 $895,990 ��1 Includes the State Aid Street Sonds at an assumed ave ge annuaf interest rate of 5.1%. _ �� _ Summary of Direct Debt Including These Issues Gross Less: Debt Net Debt Service Funds��1 Direct Debt G.O. Debt Supported by Taxes $7,110,000 $ (27,180) $7,082,820 G.O. Debt Supported by Special Assessments 8,150,000 (3,405,817) 4,744,183 G.O. Debt Supported by Tax Increments 665,000 (42,768) 622,232 G.O. Debt Supported by Other Sources 700,000 -0- 700,000 G.O. Debt Supported by Revenues 3,595,000 (79,376) 3,515,624 �a� Debt service funds are as ofApri130, 1994 and include money to pay both principal and interest. Indirect General Obligation Debt Debt Applicable to 1993 Taxable G.O. Debt Tax Capaci in City Taxing Unit�al Net Tax Capacitv As of 5-2-94(b1 r nt Amount Dakota County $229,994,905 $65,010,000�� 3.67 $ 2,385,867 � ISD 196 (Rosemount- Apple Valley-Eagan) 79,508,445 152,035,526 8.13 12,360,488 ISD 199 (Inver Grove-Pine Bend) 15,450,397 5,935,000 12.50 741,875 ISD 200 (Hastings) 15,711,011 4,685,000 0.63 29,516 Dakota County Technical College 239,007,014 1,440,000 3.53 50,832 Metropolitan Council�dl�e1 1,862,579,652 18,530,000��1 0.42 77,826 Regional Transit District�dl 1,701,455,732 57,000,000 0.46 262,200 Total $15,908,604 (a1 Only those units with debt outstanding are shown here. ' �b1 Excludes debt supported by revenues and tax and aid anficipation debt. (�1 Includes Jai/ Facility Revenue Bonds, Series ?986 with an outstanding principal balance of $1,615,000; Jail Facility Revenue Bonds, Series 1987 with an outstanding principa/ ba/ance of $1,100,000; and Jail Facility Revenue Refunding Bonds with an outstanding principal ba/ance of $6,430,000 issued by the Dakota County HR,4 and payab/e solety from /ease payments made by the County to the HRA pursuant to a Lease Agreement. The lease payments are absolute and uncondiGona!and are unlimifed tax obligations of the County. �d� Taxable nef taxable capacity figures are for 9992. 1993 figures are not yet available. �e� Metropolitan Council a/so has outstanding $491,495,000 of general obligation sanitary sewer bonds and/oans which are supported by system revenues. Debt Ratios tncluding These Issues G.O. Net G.O. Indirect 8� Dire�t Debt' Net Direcf Debt* To 1993 Indicated Market Value 2.88% 6.35% Per Capita (11,000- 1994 City Estimate) $1,195 $2,642 * Exc/udes genera/obligation debt supporfed by revenues. - 12 - 1 CITY TAX RATES, LEVIES AN COLLECTIONS Tax Capacity Rates 1993194 For 1989/90 1990/91 1991 1992/93 Total Debt Onlv Dakota County 21.061% 22.542% 25.5 6%0 26.558% 27.474% 1.931%o City of Rosemount 22.001 27.705 29.2 4 29.810 32.297 6.722 ISD 196 (Rosemount) 40.793 47.058 54.6 2 58.486 59.657 12.872 Speciai Districts" 4 44 4.978 .1 5.405_ 6•24 .882 Total 88.699% 102.283% 115.5 1% 120.259% 425.668% 22.407%0 " Includes Metropolitan Council, Regionai Transit Dist 'ct, Metropolitan Mosquito Control, Dakota County Technica/ Coliege, the Housing and Redeve/op ent Authority, and fhe Dakota County Light Rail Transit. NOTE: For property taxes payab/e in 1989, taxes w�re de ermined by multiplying the gross tax capacity by the tax capacity rate, expressed as a percenta e. This repiaced the use of assessed value multiplied by mil/ rates. Beginning with taxes pa able in 1990, net tax capacity has replaced gross tax capacityas the basis on which faxes are levied(see Appendix ll). Tax Collections for the City Collected D ring Collected Amount C Ilecti n ar As of 4-29-94 Levy/Coliect of v Amo n Per f mo n Percent 1993i94 $3,602,545* (In Process of Collection) 1992/93 2,913,401 $2,838,719 97.4% $2,838,719 97.4% 1991/92 2,748,113 2,711,623 98.7% 2,719,725 99.1 1990/91 2,498,285 2,453,637 98.2 2,489,677 99.7 1989/90 2,095,644 2,063,786 98.5 2,092,044 99.8 ' The 1993/94 gross tax levy inc/udes aids of$936,598, including Homestead and Agricultural Credit Aid ("HACA'�, Equalization Aid and Disparrty Aid. Th net Jevy of$2,665,947 after subtracting the HACA, Equa/ization Aid and Disparity Aid is the basis fo eomputing the 1993/94 tax capacity rates. - 13- FUNDS ON HAND As of April 30, 1994 Fund Cash and Investments General $ 925,670 Special Revenue 955,458 Port Authority 111,077 Debt Service: Tax Supported 27,180 Assessment Supported 3,405,817 Tax Increment Supported 42,768 Generai Obligation Revenue Supported 79,376 Construction 748,524 Water, Sewer and Storm Water 3,638,755 Community Center 49,735 Trust and Agency 336 Total $9,984,696 GENERAL INFORMATION CONCERNING THE CITY The City of Rosemount, located in northem Dakota County, is a southem 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 1994, the City estimates the population to be 11,000. 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 Northern 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 Refining processes 180,000 to 200,000 barrels of crude oil each day and employs 850 persons in Rosemount. A $17,000,000 project was completed in 1993 which added a security building, additional o�ces, laboratory and a cafeteria#o the existing site. Koch Refining is investing $200,000,000 in a project to produce cleaner fuels. This project will create an estimated 500 new construction jobs. 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. The U.S. Navy operates a satellite tracking station on the Rosemount campus. � - 14- � Some of thelarger erriployers in the City are listed b low: Approximate Number Em�loyer Pr u S rvic of Em�lovees Koch Refining Company Crude Oil 900 Independent School District 196 Education 715 . Dakota County Technical College Education 475 Greif Brothers Corporation Multiwall B gs 150 Spectro Alloys Corp. Aluminum Iloys 95 Knutson Services, lnc. Trash Dis sal/Recycling 95 Genz & Ryan Plumbing & Heating Plumbing nd Heating $5 Peoples Natural Gas Natural G 36 Continental Nitrogen Chemicals 35 Carlson Tractor Industrial/ arm Equipment 30 Source: City of Rosemount, "Comprehensive Guide Pla ,"January, 1993. Labor Force Data March 1 4 March. 1993 Civilian Unemplo ment Civilian Unemployment Labor Force Ra Labor Force R�e Dakota County 181,055 3.2° 173,850 4.0%0 Minneapolis/St. Paul MSA 1,553,209 3.7 1,491,329 4.5 Minnesota 2,544,972 4.3 2,455,802 5.1 Source: Minnesota Department of Economic Security. 994 data is preiiminary. Building Permits Issued by the City Single Family T I Permi s Home Permits Only Number Vafu N�amt�r Value 1994 (to 4-30) 116 $ 7,914,6 1 45 $ 5,572,072 1993 592 39,154,4 4 196 20,716,580 1992 633 43,352,2 3' 234 23,046,277 1991 512 19,939,0 6 200 18,087,341 1990 491 21,921,8 2 184 16,682,775 1989 480 28,037,2 3 194 17,320,711 # 1988 506 3Q974,5 2 267 22,232,787 1987 316 21,636,314 160 14,460,303 1986 232 9,401,1 5 75 6,721,265 4985 228 7,132,0 4 35 2,951,480 1984 236 11,849,7 6 101 5,996,951 1983 199 6,352,5 0 30 2,569,347 1982 188 7,239,5 3 56 2,927,999 1981 150 3,778,6 7 23 1,704,508 '� ' lncludes$17,000,000 forKoch Refining. - 15- �-- - _ � Recent and Proposed Development During the period from 1990 through 1993, an average of $31,091,893 in new construction value has been added per year. During this same period the City added 814 single-family homes to its housing stock. Some of the larger housing projects currently being developed are as follows: Units Units Built Development/Developer ou ' Apnroved as of 4-30-94 Carrollton Second Addition/Entry One, Inc. Single Family 126 126 Country Hills/U.S. Home Corporation Single Family 567 494 O'Leary's Hills/Parkview, Inc. Single Family 213 145 West Ridge/Rosemount Dev. Co.. Single Family 233 183 Shannon Hills/Ground Development Co. Single Family 190 151 Shannon Park/Limerick Way Rental Townhouses Multiple Family 128 96 Shannon Pond PUD/Hampton Development Corp. Single Family 89 21 Recent and proposed commercial and industrial development occurring in the City includes the following: • 10-screen movie theater at a cost of$2.1 million. • Rosemount Business Park- Phase 1 of imp�ovements. • $31 million Minnesota industrial containment facility designed to contain non-hazardous industrial solid waste on a 236 acre site. The facility is owned and operated by United States Pollution Control, Inc., a Houston based subsidiary of the Union Pacific Company. This facility will be adding a $10 million cell designed to contain non- hazardous combustive ash. There are a number of projects in various stages of planning and•development. They include the following: • $'( million office/senrice center to be constructed in 1994. • Vermillion State Bank is proposing location of a branch office in Rosemounf. • 60-unit motel and 160-seat restaurant at a cost of$2.7 million. • 50,000 square foot retail center to begin construction in 1994. Financial lnstitutions � The First State Bank of Rosemount and Rosemount National Bank are locafied in the City. As of December 31, 1992, the finro banks reported combined deposits of$62,109,000. - 16- -----_ _ � Education The major portion of the City is part of Independen School District 196, headquartered in Rosemount. The District's enrollment for the 1993/9 school year was approximately 23,770 students in grades kindergarten through twelve, an in rease of 33% from the 1988189 school year. The District is one of the fastest growing scho I districts in the State, and one of the largest employers in the City with approximately 2,668 full-time and part-time employees. The physical plant of the District consists of 17 elementa schools, five middle schools, and four � senior high schools. Of these schools, finro elementary schools, one junior high, and one senior high are located in the City of Rosemount. On March 8, 1994 voters in the District authorized the issuance of $78,000,000 for the acquisition and betterment of school facilities. Projects to be funded include three new schaols, the acquisition of land for a new high school and elementary school, additions to three elementary schools, a school theater and stadium. Small portions of the City are located in Independe t School District 199 (Inver Grove-Pine Bend) and Independent School District 200 (Hastings). The Dakota County Technical College is also locat d in the City. The Technical College, located on a 96-acre site, opened in 1973. The echnical College has an enrollment of approximately 2,000 post-secondary students. In a dition, the Technical College offers an extensive adult education program. GOVERNMENTAL ORGANIZATI N AND SERVICES Organization � Rosemount was established as a municipal corporatio in 1858, and became a statutory City in 1974. The City has a Mayor-Council form of govemm nt, with the four Council members being elected to overlapping four-year terms of office. The p esent City Council is listed below. j Expirafiion of Term E.B. McMenomy Mayor December 31, 1995 Joan M. Anderson Council Member becember 31, 1997 Cathy E. Busho Council Member December 31, 1997 James Staats Council Member December 31, 1995 Dennis Wippermann Council Member December 31, 1995 The City's chief administrative officer is the City Admi istrator, who is appointed by and serves at the discretion of the City Council. Mr. Thomas D. urt was appainted to the position of City Administrator in March of 1994. Mr. Jeff May, who ha served in the City's Finance Department " since 1985, was appointed as the City's finance Dire or in March of 1991. Growth and development of the City is guided by a C mprehensive 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 aoning an development policy of the City, and is designed to encourage and promote orderly develop ent and growth which will perpetuate a sound tax base. This Plan was last updated in 1980. he City completed its update of the Plan for the 1990's through a process which involved the ity Planning Commission, City Council, City staff and the Metropolitan Council. The update plan was approved by the Metropolitan Council on December 2, 1993. - 17 - Services Police protection for the City is provided by 13 full-time officers and eight police reserves. Fire protection is provided by 35 trained volunteers. The City has a class 5 insurance rating. 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 2,225 gallons per minute with an average demand of 825,000 gallons pumped daily. � It is the City's policy to finance all of its lateral sanitary sewer and water improvements by special assessments filed against benefited property; however, there 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 connection charges to support the program. Although the City constructs and maintains its own sewer laterals, sewer trunk lines and treatment plants are owned by the Metropolitan Waste Control Commission ("MWCC"), an agency of the Metropolitan Council. The City is billed for its usage of MWCC facilities. 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 #he Basic Plan. Coordinated members are covered by Social Security and Basic members are not. All new members must participate in the Coordinated Plan. All police officers, fire fighters i and peace officers who qualify for membership by statute are covered by the PEPFF. For the year ended December 31, 1993, the City's contribution to PERA was $129,380. - 18- THE PORT AUTH RITY The Port Authority of the City of Rosemount, Minnes ta is a public body duly organized and existing under the laws of the State of Minnesot . The Port Authority is considered a governmental subdivision, and the area in which it m y exercise its power is coterminous with the City boundaries. The Port Authority was established on September 3, 991 by resolution of the Rosemount City { Council to provide a conscientious and coordinated ffort to encourage and precipitate future development within various development districts esta lished by the City. The Port Authority is charged with the role and responsibility of carrying ut economic and industrial development and redevelopment within the City in accordance wit policies established by the City CounciL As administrator of the City's development districts, he Authority may exercise development and redevelopment powers pursuant #o those a thorized by the State of Minnesota Development Act, the Industrial Bond Act, the Housin Finance Act and the Tax Increment Act, except that the Authority may not issue obligations wit out prior approval of the City Council. The goveming body of the Port Authority is a Boa of Commissioners consisting of seven members, at least two of whom must be members f the City Council. The members of the Port Authority Board are chosen through an applicatio and interview process. The current Port Authority Commissioners and length f appointed term are listed below: e h f Term Ex.piration of Term John Edwards Vice Chair 5 years January 31, 1997 Joan Anderson"' Treasurer 1 year January 31, 1995 Kevin Carroll Chair 6 years January 31, 1999 E.B. McMenomy� Commissionec 6 years January 31, 1998 Dennis Wippermann* Commissioner 6 years January 31, 1998 Cathy Busho� Commissioner 6 years January 31, 2000 Norm Miller Commissioner 2 year January 31, 2000 " Mr. E.B. McMenomy is the City Mayor; Mr. Dennis �ppermann, Ms. Joan Andersan and Ms. Cathy Busho also serve on the City CounciL Mr. Thomas Burt serves as the Executive Director of he Port Authority. - 19- ) ) (This page was left blank intentionaliy.) APPENDIX i PROPOSED FORM OF GAL OPINIONS LAW OFFIC S BI3. IGGS ..�rT � MO � GAN � PHOFESSIONAL ASS IATION 2200 FIBST NATIONAL B H BZTILDINC3 SAINT PAUL,MINNE OTA 55101 TELEPHONE (612) 2 3-8600 FACSIMILE (6121 2 3-64-90 � MIr7T7E�ppLIS OFFICE . � � . �?<WO I D 5 CENY88 . � . � . . . . . � MINNEGPOLIS.MINNESOTA.bSti02 . . . � . . � . � � . TEI.EPHONE 16121 334'860� .. � WRITEB•5 DIBECT DIAL NUMBEB . � . � � � � FeCSIMiLE 16121 3tid-865O (PROPOSED FORM OF LE AL OPINION) $1,605,000 GENERAL OBLIGATION IM ROVEMENT BONDS, SERIES 1 94A CITY OF ROS OUNT DAKOTA CO TY MINNESO A We have acted as bond co sel in connectMinnesotat(the issuance by the City of Rosemount, Dakota County, "Issuer") , of its $1,605,000 Gener 1 Obligation Improvement Bonds, Series 1994A, bearing a dat of original issue of Au st 1, 1994 (the "Bonds") . We ave examined the law and such � certified proceedings and other do uments as we deem necessary to render this opinion. We have not been engaged or und��eaOffic�aleStatement accuracy, completeness or sufficie cy of or other offering material relatin to the Bonds, and we express no opinion relating thereto. - As to questions of fact aterial to our opinion, we have relied upon the certifficials furnishednto usewithout certifications of publlc ° independent investigation. undertaking to verify the same by Based upon such examina ions, and assuming the the authenticity of allnalcdocuments ftall documents submi.tted to us conformity to origi as certified or photostatic eopie and the auth�fn�helstatements originals of such documents, and he accuracy of fact contained in such documen s, and basey uendingesent Minnesota and federal laws (which excludes an p legislation which may have a retr aand decisions,nitriseoure the date hereof) , regulations, ruling opinion that: (1) The proceedings show la ful authority for the issuance of the Bonds according to their t rms under the Constitutian and laws of the State of Minnesota no in force. f- BRIGGS AND MORGAN (2) The Bonds are valid and binding general obligations of the Issuer and all of the taxable jurisdiction is subject to the levyrofe nyadlvaloremetaxsto 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 j similar laws affecting creditors' rights heretofore or hereafter enacted. 1 (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 institutionsj , 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 determininq adjusted current earnings. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest 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 income 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 1994. day of August, Professional Association i-2 LAW OFFICES BAIGGS Ar7D OI3GAN Pl?OFESSIONAL ASSOC ATION 2200 FIRST NATIONAL BAN BBII.DING SAINT PAUL,MINNESOT �5101 TELEPHONE (6121 223 6600 FACSIMILE (6121 223-g'�O MISNEAI�OLIS OFFICE � � . � . � . � 2A0p I D S CEDITEB � . . � . � MINNEAPULISr�=`==T�'TESO?A 33�102 . . . . . . TELEPHO=�101E1 3a4-84C�� . WRISER'S DIBECT DIAL NUMBEB . . FACSIMILE(9121.334-8850. c (PROPOSED FORM OF LEG OPINION) $335,000 � GENERAL OBLIGATION STORM WA ER REVENUE B�NDS, SERIES 1994 CITY OF ROSEM UNT DAKOTA COUN Y MINNESOTA We have acted as bond coun� l inCount�tMinnesotat(the issuance by the City of Rosemount, D kota Y "Issuer") , of its $335,000 General O ligation Storm Water Revenue Bonds Series 1994B, bearing a date f original issue of � �� N We ha e examined the law and such August 1, 1994 (the Bonds ) . certified proceedings and other doc" ents as we deem necessary to render this opinion. We have not been engaged o undertaken to review the rac completeness or sufficienc of thB ndslcand weaexpress accu Y► material relating o the or other offering thereto. no opinion relating estions of fact ma erial to our opinion, we As to qu roc dings and other have Yelied upon the certified p certifications of public officials urnendentt�nvestigation. undertaking to verify the same by i dep Based upon such examinati ned toausSas�orgQinals, the authenticity of all documents submi t conformity to original documentseSf ndlthecauthenticitytofathe us as certified or photostatic copi of the statements originals of such documents, and th accuracy resent of fact contained in such documents and based uending Minnesota and federal have aWret oa tiveeeffect on or before the legislation which may date hereof) , regulations, rulings nd decisions, it is our opinion that: (1) The proceeding s show law ul authority for the issuance of the Bonds according to their te s under the Constitution and laws of the State of Minnesota now in force. I-3 BI�IGGS AND MORGAN { (2) The Bonds are valid and bindin the Issuer and all of the taxable propertygwithin thelIssuerss�f jurisdiction is subject to the levy of an ad valorem tax to a the same without limitation as to rate or amount; provided thay the enforceability (but not the validity) of the Bonds and thet 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 bankru tc ' P y, 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 exc from gross income for United States income tax pu oses an luded excluded, to the same extent, from both gross inc me and taxab net income for State of Minnesota income tax le Minnesota franchise taxes measured by income and imposedtonr than 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 precedinq sentence are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code �of 1986, as amended, that must be satisfied subsequent to •the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income t purposes and from both gross income and taxable net income for ax State of Minnesota income tax purposes. Failure to compl with certain of such requirements may cause the inclusion of interes on the Bonds in gross income and taxable net income retroactivet 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 1994. ,_ day of August, Professional Association � I-4 ygw OFFICES O � G A N BAIG`GS AND ' s55� ATION pROFESSIONAL SQILDIN`s 2200 FI$ST NA'rIONAL BA+'1 SAINT PAu7-,MINNESO g 55101 Ng 16121 22 -8gp0 ppLIS OggIGE TELEPFio 223-6450 :�IINrTE� ZMIYE �g12) ylpp IDS CEN'fE8 2 � j�'ACS � � . � p�pytg�MINNE50'IA 35� � . � � � �KINN 10121 33'L'8`�'� � � . .. � . � TELEPHONE 16127 334-865� . � :FACSIMILB OPINIUN)' .D�L:TL'MSEH . � � . . . . . . . hrgiTEB'S DIBECT (PROPOSED FORM OF LE' � $700. �� STREET BONDS, � G��p,I,, OBLIGATION STA E AID SERIES 994C CZTY �F R S��T DAK�TA ��TY MINNE OTA 1 in connection with the ounse �+iinnesota (the acted as bond Dakota County� Aid Street We have of gosemcun � ation State the City 000 Gener 1 �ofloriginal issue °f�nd such issuance bY 700, the law �� of its $ . a d te �'Zssuer ) � , 1994C, bearinq e have examin�e aeem necessary 0 Bonds, SerieS the "Bonds ) • documents as August 1, 1994 ( S and other certif ied proceeding � der this opinion. to review the ren or undertaken Statement ot been enga ed of the Offic�a we express We have n suf f i iency the gonds, completeness or tinQ to accuracy► offering material rel ar other thereto• our opinion, We no opinion relatinq of f ct mater ia S and other As to questions roceeding us without the certif ied P furnished tOnVestigation• ha�e relied upon ublic officibY indepenaent certif icatio�o �r1fy the sam and ass�ing inals, the u n d ertakinq i n�t i ons, u s a s o ri g u s Base d u pon such ex a Submitted to Submitte d t o all documents o f all docum ents o f t he authentic i t y �f inal do c u m e pies and t h e a u t hen�hels ta t e m e n ts to orig and t h e a c cura►�Y of con f o r m i t Y or pho t o s t a tic u o n p r e sent as certif iof such documents, and based P inals such do wa►ents, any pending oriq etfect on or before the of fact contained ln laws ( hich. excludes federal have a retroactivaecisions, it is our Minnesota anwhich �►aY r lings and legislation re�lations, date hereof) , the issuanCe opinion that: ority for dinqs S oW lawfus �a r the Constitution and �1� The Procee t eir tez'�► according ,tO ta now in force. of the Bonds af Minnes laws of the Sta�e • 1-5 BRIGGS Axa MORGAN the issuerTdnaBO�ds are valid � ' �urisdictio all of the and bir�ding general n ls S�ject taxable pro obli the same without t° the le Perty withi gatio the enforce limitation as to"�' °f an ad valorem e Issuer S of plea ability the not rate thereon�s taxes for the validit tax to �, S�7ect to thea�ent of the y� °f the � provided that accordance with Bonds and �onst ' nal genera princ r�lse of Judiciapal and t e itutio 1 interes bankru powers 1Ples of discretion Similartcy' insolvenC of the United S e�lty� to the l� enacted, laws affectiny� reorganization ates of �eri�a and J creditors � � moratoriu� to ' rights heretoforeand ot�er to the3� At the time °r hereafter of the � from gross glnal purchaser lssua�Ce and excludea toncome for Unite the interest on aelivery of the net ihcome forhe Same extent States the Bonds BOnds Minnesota State of inco is . from both me tax purPoses andluded cor franchise taxes l�esota income gross income and is porations and lal�easured by i��tax pu�oSes o taxable tax prefere financ ' altermposed on for purPosesloftitutions) �andahd imp°sedtonr than native individuals the federal ls not an trusts . minimum ta and �o alternative �tem of • it shou x appll� rPorations or minimum computing the feaera noted, �lert� indiv' the Minnesota . rporatio I alternati�e ld the� estates ns, such � that for or adjusted current interest is �inimum tax �u�Ose of preceding sente earnings, taken into lmp°sed on comPly with nce are S� • The �Pinions account in dete 1986. as all require 7ect to the condit . forth ln �ininq issu of ethe '� that me�t be the ance ded must �f �e Inter continue B�nds ln satis nal evenue �o� Issuer to be, exclude °rder that fied de of purposes d from intere�Se�ent to the State of and from both grass thereon be, or certa ' Mlnnesota grOss income and°me on the gof such requireme tax purpose taxable net ral income tax to the dateSofn gross inC�e may cause �theailure to �mPle for issuance and taxable netnclusion y with of the Bonds, inco °f interest We express no me retroactiye Bonds ornces caused b l t°n regarain o arlsing wit y he re to g ther state h respect elpt or accrual °r federal tax Dated at ownershi °f lnterest 1994, Saint Paul P of the Bonds. �n the � Minnesota, this _� da Y of August, Professional Associat ' �on I-6 LAW OFFICES . B13IGGS ArTD 013GAN PAOFESSIONAL ASSOCZ TION 2200 FIBST NATIONAL HEaIQH BliILDID7G SAINT PAUL,MINNESOT 55101 � TELEPHONE �6121 223- g00 FACSIMILE �612) 223' '1�b0 MINNEAPOLIS OFFICE � � � . . � � � � `.q00 I D 5 CEN'IE8 . � � . . MINNEAPOLIS.MINDTESOTA SS�i02 WBISEE'S DIBECT DZAL NL`Ni8E8 � � . � . �. � TELEPHONE 1012)334'840Q . . . � � F�lCSIMILE 1612)334-88b0 . � (PROPOSED FORM OF LE OPINION) . $1,630,00 GENERAL OBLIGATION BOND , SERIES 1994A ROSEMOUNT PORT A HORITY DAKOTA CO TY MINNESOT We have acted as bond coun el in connection with the : issuance by the Rosemount Part Autho ity, Dakota County, Minnesota (the "Issuer"} , of its $1, 30,000 General Obligation Bonds, Series 1994A, bearing a date f original issue of August 1, 1994 (the "Bonds") . We ha e examined the law and such certifisd proceedings and other doc ents as we deem necessary to render this opinion. We have not been engaged o undertaken to review the accuracy, completeness or sufficienc of the Official Statement or other offering material relating o the Bonds, and we express no opinion relating thereto. A As to questions of fact m terial to our opinion, we have relied upon the certified proc edings and other certifications of public officials urnished to us without undertaking to verify the same by i dependent investigation. Based upon such examinati ns, and assuming the authenticity of all documents submi ted to us as originals, the conformity to original documents of all documents submitted to us as certified or photostatic copies nd the authenticity of the originals of such documents, and th accuracy of the statements I-7 BRIGGS AND MOI3GAN 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 date hereof) , regulations, rulinqs 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 bindin the City of Rosemount (the "Cit �� g 9eneral obligations of • property within the City's jurisdictionais subjecttto thle 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, moratoriwn 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 purchas�r, 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 requirements of the Internal Revenue Code of � 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest 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 income and taxable net income retroactive to the date of issuance of the Bonds. I-8 BRIGGS AxD MOI3GAN We express no opinion regarding o her state or federal tax consequences caused by the receipt or ccrual of interest on the Bonds or arising with respect to owner hip of the Bonds. Dated at Saint Paul, Minnesota, t is day of Auqust, 1994. . Professional ssociation . 1-9 . . (This page was left blank intentionaliy.) � � i � APPENDIX II SUNFMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND MINNESOTA REAL PROPERTY ALUATION win is a summary of certain statutory provisions eff ctive thn cs of rea3propertytval at on Follo g procedures, tax payment and credit procedures, and the mec a The summary does not purport to be inclusnce to th comple e text of appi�cable stat tes, provisions discussed, and is qualified by tefere rules and regulations of the State of Minnesa�ed b f t ee Sta e Legisla ure du g he f1993 char�ges to Minnesota properry tax laws en Y . Regular Session. Property Valuations (Chapter 273,Minnesota Statut ' Assessor's Estimated Market Value be appraised at least once sub'ect to taxation must, y statute, Each parcel of real properry 1 every four years as of January 2 of the year a�ep hre�a sess�or deter�m neseto�be'the' pr ceehe is valued at �ts market value which is the v believes 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 1998, the amount of increase in market value for all properly classified as agricultural homestead and on-homesteS'�,ent ai�, wh cih s entered and non-homestead, or non-commercial seasonable r o�eexceed the greater of (i) 10% of the by the assessor in the current assessment year, may p receding year's market value or (ii) 1/3 of the differen e between the current assessment and the preceding assessment. Indicated Market Value Becaus e the Estimated Market Value as determined by an ass 1Ueor'mae e ally�regard d as price of real property in the marketplace,the Indicate Market a g dividin the more representative of full value. The IndicateanMar a,s s'les rato determ��ined by the State Estimated Market Value of a given year by the s y Department of Revenue. The sales ratio re�pereseu�and actual'seli ng pr ce between the Estimated Market Value of property w�thrn the t :g Tax Ca aci used to determine the property For property taxes payable in 1989, the value of the property tax was "Gross Tax Capacity.° Beginning with taxe payable in 1990, Net Tax Capacity has ced Gross Tax Capacity as the basis on which taxes are ae�v'ied'Net TaxSC pac ty d ffers repla Value multiplied by the appropriate class rate yietds e tax cap from Gross Tax Capacity primarily by having lower vatues,for homesteaded residential and certain agricultural property. The formulas for converting Estimated Marke�t a e' th refo e subjec�to annualt e vs oris 'by the of the State's property tax relief system an State Legislature. Property Tax Paymerrts and Delinquencies (Chapters 276, 279-282 and 549, Mmnesota Stat es) lorem ro erty taxes levied by local gover ments in Min�c�otn is requ ed o certify Ad va p p collected by the various counties within the State. ch taxing �uris the annual tax levy to the county auditor within five 5) �O�es dueSs prepared by the county year preceding the collection year. A listing of pro erty auditor and tumed over to the eounty treasurer on o before the first business day in March. II-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 property 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 properiy, increases from 2% to 4% on the day after the due date. In the case of the first instaliment of real property taxes due May 15, the penalty increases to 4% 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 penaFty increases to 6% or 8% on November 1 and increases again to 8�0 or 12% on December 1. Personai 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 penalties as real property. , On the first business day of .January of the year following collection all delinquencies are subject to an additional 2% penalty, and those delinquencies outstanding as of Februa f 5 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 mailing 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 annuafly by the Department of Revenue, and equal to the adjusted rime rate charged by banks, but in no event is the rate less than 10% or more than 14°�. p 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 vinthin cities or three 3 years with respect to other types, of property to redeem the property. After expiration of the redemption periad, unredeemed properties are declared tax forfeit with title held in trust b 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-2p%; and school district-40%. Property Tax Credits (Chapter 273, Minnesota Statutes) In addition to adjusting the tauable value for various ro Minnesota's property tax relief system are: property tax lepry r�educhoneaidsr�he circuit b eaker credit, which relates property taxes to income and p r o v i d e s r e l i e f o n a s l i d i n g i n c o me sca le; a n d t a r g e t e d t a x r e l i e f, w hic h is aimed primaril y a t e a s i n g t h e e ff e c t o f sign�cant tax increases. T h e circui t brea ker credit and targeted credits are reimbursed to the taxpayer upon a licatio by the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid, equalization aid, homestead and agricultural credit aid (HACA) and disparity reduction aid. Levy Limitations Historically, the ability of local govemments in Minnesota to levy property taxes was controlle by various statutory limitations. These limitations have expired for taxes payable in i 993 and future years, but may be reinstated in the future. Under prior law the limitations generally _did not affect debt service levies. For county governments, 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 liability, social senrice programs and the residual income maintenance program for which the county share of costs has not been taken over by the State. II-2 STATUTORY FORMULAE CONVERSION OF ESTIMATED MARKET VALUE (EM1� TO NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS Net Tau Capacity Net Tax Capactty Net Ta�c Ca ec (3eneral Classifications Lew Year 1989 Lew Year 1990 p � Net Tax Capacity Net Tax Capacity Lew Year1991 Lew Year1992 Lew Year1993 Resldentisl Homestead First$68,000 of EMV at 1.00% First$68,000 of EMV at 1.00°� First$72,000 of EMV at 1.00°� Flrst$72,000 of EMV at 1.00% First$72,000 of EMV at 1.0096 Next$32,000 of EMV at 2,0096 Next$42,000 of EMV at 2,00% Neut$43,000 of EMV at 2.00% EMV in excess of$72,000 EMV in excess of$72,000 EMV in excess of$100,000 EMV in excess of$110,000 EMV(n excess of$115,000 at 2.00� at 3.0096 at 3.0096 at 2.5% at 2.0096 Residentiai Non-Homestead 4 or more units 3.609b 3.6096 3.50% 3.4096 3.40% Agricultural Homestead Flrst$68,000 EMV of house, First$68,000 EMV of house, Flrst$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% garage and 1 acre at 1.0096 garage and 1 acre at 1.0096 garage and 1 acre at 1.0096 Excess to 320 acres at 0.40% Excess to 320 acres at 0.4596 Excess to 320 acres at 0.45°� Excess to 320 acres at 0.4596 EMV In excess of$72,000 of Excess over 320 acres at 0.40% Exce�s over 320 acres at 0.4596 Excess over 320 acres at 0.4596 Excess over 320 acres at 0.4596 house,garage and 1 acre at Next$32,000 EMV at 2.00% Next$42,000 EMV at 2.009b N�xt$43,000 EMV at 2.0096 Neut$43,000 EMV at 2.0096 2,pp�y, Excess to 320 acres at 0.40% Excess to 320 acres at 0.45% Excess to 320 acres at 0.45% Excess to 320 acres at 0.4596 Remaining Properly: Excess over 320 acres at 0.40� Excess over 320 acres at 0,45% Excess over 320 aares at 0.45% Excess over 320 acres at 0.45% First$115,000 of EMV on first 320 EMV in excess of$100,000 EMV in excess of$110,000 EMV in excess of$115,000 EMV in excess of$115,000 acres at 0.4596 at 3.00% at 3.0096 at 2.5% at 2.00% Excess to 320 acres at 1.30% Excess to 320 acres at 1.30X Excess to 320 acres at 1.30% 6ccess to 320 acrea at 1.3096 E 3 0�ac eseat 1 f$�115,000 on first Excess over 320 acres at 1.70% Excess over 320 acres at 1.6096 Excess over 320 acrea at 1.60% Excess over 320 acres at 1.60% EMV in excess of$115,000 over 320 acres at 1.50% Agricuftural 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 1 acre at 3.00% 1 acre at 3.009b 1 acre at 2,80°6 1 acre at 2.5096 EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings EMV of land a�other buildings at 1.70% at 1.6096 at 1.6096 at 1.60% at 1.50°� Commercial-Industrial First$100,000 of EMV at 3.30% Flrst$100,000 of EMV at 3.20% Ftrst$100,000 of EMV at 3.10°5 First$100,000 of EMV at 3.00% First$100,000 of EMV at 3.0036 EMV in excess ot$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 5.06% at 4.9596 at 4.7546 at 4.70% � � at 4.6096 Seasonsl/Recreational 2.40% 2.3096 Non-Commercial-220% Non-Commercial Residential Non-Commercial First$72,000 of EMV at 2.00% First$72,000 of EMV at 2.00% EMV in excess of$72,000 EMV In excess of$72,000 - at 2.50% at 2.5096 Commercial-2.30% Commercial-2.30% Commercial-2,30% Vecant Land 5.069b 4.95% 4.75% N/A N/A (All vacant land is reclassified (All vacant land is reclassified to highest and best use to highest snd best use pursuant to local zoning pursuant to local zoning ordinance) ordinance) APPENDIX ill ANNUAL FINANCIAL STAT MENTS The City is audited annually by an independent certified publateme ts fo gfis al yDears end'ng following pages was extracted from the aucdited financi I s December 31, 1993, 1992, and 1991. For all years pre ented, the modified accruat basis of accounting is used for governmental fund types; the acc al basis is used for proprietary funds. The reader should be aware that the complete audits m y contain additional information which may interpret, explain or modify the data presented here. . 111-1 CITY OF ROSEMOUNT. MlNNESOTA COMPARATNE STATEMENT OF REYENUES, EXPENSES AND CHANGES IN REfA1NED EARNINGS ENTERPRISE FUNlDS YEAR ENDED DECEMBER 31. 1992 � � 1992 1991 OPERATING REVENUES: .� Water salas 5358,066 5306.532 Storm water charges 203.70t � Sewer charges 475.652 426.728 Water surcharges 4�.543 42.591 Water meter maintenance 1 t,550 8.787 Water meters 25,890 16.939 Misceilaneous 58.704 45.035 TOTAL 51.181.106 5846.612 OPERATING DCPENSES: . Genera!and adminisVative: Personal services 5214.380 5181.297 Water utility: Suppiies 68.876 ._ 96.980 Other services 96.981 49.743 ; Capital outiay 597 4.074 Sewer utility: . Supp(ies 6.437 6.463 Other services 29.948 t 4.t 15 Metro sewer charge 297,564 264,108 Depreciation expense 138,034 131_446 TOTAL 5852,817 t748.226 OPERATtNG INCOME 5328.289 598.386 NONOPERATlNG REVENUE (EXPENSES): Interest earnings 534.591 537.833 interest expense (131.969) (96.323} Fiscal ageni fees (1 A73) (1.830� TOTAL (598.451) (560,320) 5 . NET INCOME BEFORE OPERATING TRANSFERS 5229.838 538,066 OTHER FINANCtNG SOURCES (USES): Operaiing transfers in • 452.000 30,000 Operating transfers out (1.489.000) NET INCOME (5807,162) ,568.066 BEGINNING RETAINED EARNINGS 2,g41,306 2.773.240 ENDING RETAINED EARNINGS 52.034.144 S2 841.306 • Iil-13 CITY OF ROSEMOUNT, MINNESOTA UTILITY COMMISSION FUNll COMPARATIVE STATEMENTS OF REVENUE, EXPENSES ANU CHANGES IN RETAINED EAKNINGS For the Years Ended December 31 , 1991 and 1990 ; � 1991 1990 '� OPERATING REVENUE Water Sales $ 306, 532 S 271 , 847 Sewer Charges 426, 728 288, 390 Water Surcharges 42, 591 53, 359 Water Meter Maintenance 8, 787 1 , 650 Water Meters 16, 939 15, 649 Miscellaneous 45 ,035 34 ,753 Total Operating Revenue S 846 ,612 S •655 ,648 OPERATING EXPENSES General and Administrative Personal Services $ 181 , 297 $ 162, 286 Water Utility Supplies 96, 980 45, 608 Other Services 49,743 173, 890 � Capital Outlay 4, 074 16, 677 Sewer Utility Supplies 6,463 10, 862 Other Services 14, i15 25, 672 Metro Sewer Charge 264, 1U8 226,481 Depreciation Expense 131 ,446 95, 136 Tota1 Operating Expenses $• 748 ,226 S 756,612 .OPERATING INCOME (LOSS } $ 98 ,386 $ ( 90,964 ) NON-OPERATING REVENUE (EXPENSES) Interest Earnings $ 37, 833 $ 104, 861 Interest Expense t9b, 323 ) ( 170, 553 ) Fiscal A9ent Fees ( 1 ,830 ) ( 1 ,462 ) l Net Non-Operating Revenue S ( 60,320 ) S t67 ,154 ? NET INCOME BEFORE OPERATING TRANSFERS $ 3$,466 $ ( 158, 118 ) -0PERATING TRANSFERS IN 30, 000 268, 215 OPERATING TtZANSFERS OUT - ( 88 ,331) NET INCOME $ 68, 066 $ 21,766 RETAINED EARNINGS, January 1 � 2,773,240 2,751,474 RETAINED EARNINGS, December 31 $ 2, 841 , 306 $ 2,773,240 III-14 , � II DONATION REVENIIS WORRSHEET II RECEIPT OF DONATION I Donation Received on: Apr i I 20, 1993 ' Amount Received; $ 15,000.00 ', Receipt # for ponation: � ', PuZpose of Donation: Cab l e Cast i ng for C i ty (Jaycees) Account # for ponation: 101-22225 (Must be Liability � assigned for each individual Department) EXPENDITIIRE OF DONATION Amount to be Spent: $ 15,000.00 To be Spent from Acct �: 101-41940-01-530 (Must be Expenditure � corresponding to individual Department) Purpose of Expenditure: Purchase Cab l e Cast i ng Equ i pment ' AMENDMEIIT OF BUDGETS . Amend Donation Revenue A�ct n101-36230-00-000: $ 15,OQ0.00 Amend Expenditure Acct # 101-41940-d1=530 $ 15,000.00 (The two dollar amounts should be the same) GENERAL JOIIRNAL ENTRY TO ADJIIST DONATION LIABILITY � Debit: 101�22225 (Donation Liability �) $ 15,000.00 Credit: 101-36230-00-000 $ 15,000.00 Credit: 101-29300 $ 15,000.00 Journal entry to reduce deferred donation revenue and increase donation revenue to actual per council action on 7-5-94