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Home My WebLink About7.e. Fixed Asset Proposal r:� ,; CITY OF ROSEMOUN'T ' EXECUTIVE SU1�II�I�RY FOR ACTION ' CITY COUNCIL MEETING DATE: July 20, 1993 AGENDA ITEM: Fixed Asset Proposal AGENDA SECTION: New Business PREPARED BY: AGENDA � # �� Jeff May, Finance Director � ATTACF�lENTS : Praposal APP' VED Y: .d�t../ On the agenda for your consideration is a proposal from Z7al.uation Resource Management, Inc. to provide the City the services necessary to do a total inventory of all of its assets, to input that inventory into a software program and to provide that software to t�.e City for 'its future use completely installed and aperational . We have budgeted $12, OOQ from the CIP budget for 1993 and the Water, Sewer and Storm Water Utility budgets include another $8, 000 to pay for a portion ot the to�al cost . The total of $20, 000 will be sufficient to GOt1lp�.EtE this project . The atta�hed proposal goes into detail what services will be provided, how these services will be provided and who will be providing the services. Staft has spent a great deal of tirne reviewing this proposal and one other proposal as well . We have talked to clients of both 'af these companies and feel comfortable that Valuation Resource Management will provide the services that we need. _�-_,_..,�_ ----.�.._ � Our auditors have a clie-�t that has tl-�is saftw� tha� Valuation Resource provides and feel that it meets all of the standards required for our annual audit to have the qualification removed for lack of fixed asset reporting. This was discussed by Rager Schanus in June when he presented 1.992' s audit to the Council. It is something that has been a blemish on our audits for years. Also, completing this project 'will allow our insurance records to be more accurate and reflectivelof actual conditions of the City. What I hope for this evening is your appraval to expend the $12, 000 from the CIP budget to help pay for the completion of this project . We will be going to the Utility Commission on August 2nd to get 'their approval for the $8, �00 that is budgeted in the Utility funds. If the project is started after their approval, we will hopefully be completed in time for our insurance renewal period tor this year. It is` an aggressive schedule, but Valuation Resource Management feels that it can be aehieved. RECOMMENDED ACTION: Motion to approve the Fixed Asse� proposal from Valuation Resource Management, Inc. to provide the services -listed above, not to exceed the $20, 000 budgeted from the combined funds, and to approve the exgenditure of $12,000 from the CIP fund account number 202-49002-01-530 . COUNCIL ACTION: r . Valuation ; Resource ' Management, Inc. t � i Los Angeles • Milwaukee • Philadeiphia April 9, 1993 � � 1 Ms. Diana Korpela � Accountant � City of Rosemount ,h ' 2875 145th Street West � �'x� P.O. Box 510 ' Rosemount, Minnesota 55068-0510 ; � ; Dear Ms. Korpela: � The Valuation Resource Management, Inc. Team appreciates this opportunity to submit our recommendations for professional valuation consulting services to the City of � Rosemount. x ��: Valuation Resource 'Management,� Inc. 's �public entity group � prides itself on the high level of expertise which each a staff inember brings to our organization. The Group was founded on the belief that our clients expect and deserve � the highest quality of appraisal service available. ; our Public Entity Division assists cities, school district, colleges, universities, counties, and special' districts in � establishing and maintaining their fixed asset records. The division is comprised of full-time, in-house appraisal staff. Our commitment is to employ only the most; qualified � professionals in the industry. Our proposal is based on our review and analy�is of the i information you provided to us, our September l5, 1992 I meeting, and various telephone conversations with you and Mr. Jeff May. I The purpose of the� proposed service is to provide the City J of Rosemount with a comprehensive fixed asset record and management system to meet its objectives for financial � reporting, property control, insurance placement and proof of loss substantiation, capital expenditure planning and cost accounting requirements. � I � 207 East Michigan St.,Ste.200,Milwaukee,W153202 Phone 414-224-9730 Fax 414-224-1341 � � Our service will be provided in accordance with the requirements of Governmental Accounting, Auditing, and Financial Reporting (GAAFR) ; and Generally Accepted Accounting Principles (GAP.P) . The results of our appraisal will assist the City of Rosemount in receiving the certificate of achievement for excellence in financial reporting. I will act as the primar�r contact with the City of Rosemount for this important engagement, and resumes of those individuals who will most likely perform the appraisai of the City are included as Addendum C of our attached proposal. This revised cover letter and the attached authorization ' pages (2) will serve as amendments to our original proposal dated February 11, 1993 . We look forward to working with you and the City of Rosemount on this important engagement. I will contact you near the end of the month to discuss the gossibility of having Mr. Jaeger stop in to see you. In the meantime, feel free to contact me with any questions you may have. Cordially, VALUATION RESOURCE MANAGEMENT, INC. �� Mark T. Hessel District Representative �� [ � ` PROPOSAL OF FIXED A$SET APPR.AISAL SER4ICE8 FOR THE CITY OF ROSEMOIINT � ROSEMOiJNT, MINNESOTA , FEBRIIARY 11� 1993 _ � `� �� II � y T A B L E O F C O N T E N T 8 I. Purpose of the Appraisal ,,1 II. Scope 2 III. Methodology 3 IV. Inventory Procedures 4 V. Costing Procedures 5 VI. Data Base 6 VII. Reports � VIII. Timing g IX. Personnel g X. Optional Services g XI. General Information 13 XII. Fee And Payment Schedule 14 XIII. . Conclusion � 1� XIV. Authorization 16 A D D E N D A Addendum A Property Locations Addendum B References Addendum C Professional Qualifications Addendum D Sample Reports Addendum E Property Control Manual 0utline �� C>�� f � PROPOSAL OF FIBED ASSET APPRAISAL SERVICES FOR THE CITY tiF ROSEMOIINT Valuation Resource Management, Inc. , hereby proposes to provide professional valuation consulting services to ,the City of Rosemount. The purpose, scope, procedures, output, and timing for this engagement are set forth as follows: I. PIIRPOSE OF THE APPRAISAL The purpose of the proposed appraisal service is to provide the City of Rosemount with a comprehensive fixed asset appraisal which, when completed, will provide a documented, supportable basis for the following: FINANCIAL REPORTING: Fulfill current fiscal reporting requirements of the State of Minnesota, establish audit compliance to Generally Accepted Accounting Principles (GAAP) , and Governmental Accounting, Auditing and Financial Reporting (GAAFR} , and enable tracking of fixed assets purchased through governmental programs. PROPERTY ACCOUNTING: Meet current requirements for accountability and custodianship. Will enhance operational efficiency through identification, control, reinventory and maintenance of fixed assets. INSURANCE: Provide the City of Rosemount with current insurable values of all appraised assets for insurance placement, documentation for proof of loss substantiation, and a system for perpetuation of the conclusions. CAPITAL EXPENDITURE Establish a basis for projecting PLANNING: capital asset improvements and replacements to assist you in the planning and budgeting processes. COST ACCOUNTING: Assist in determining the cost of programs and services provided. �I (v`�/M) � � } City of Rosemount Rosemount, Minnesota Page 2 II. SCOPE PROJECT PLANNING „ We feel the most important element in conducting a comprehensive inventory and appraisal of the City's fixed assets is the time invested in planning and organizing the engagement. Accordingly, we will hold a planning meeting with City representatives prior to the start of the field work. It is advisable that members of the administrative staff, including department heads and others directly involved with the ongoing maintenance of the fixed asset records, attend this meeting. In addition, we invite the City's auditors and insurance. consultants to participate in the meeting. The project planning meeting will begin with a review of the City's objectives and the tasks to be completed by our appraisal team. In addition to confirming our specifications for the project time schedule, properties to be appraised, property to be included and excluded, inventory pracedures, methodology, valuation procedures, and report timing and format, we will address other pertinent factors including, but not limited to, physical inventory schedule, accessibility to properties, contact person at each location, potential use of purchase information contained within your files and documentation of master file information such as property/location, building, department, fund and account codes. This meeting will also lay the foundation far the methods and procedures to be used in maintaining the fixed asset system upon completion of the inventory and delivery of the fixed asset reports. PROPERTY TO BE INCLIIDED The appraisal will include all land, buildings, improvements other than buildings, machinery and equipment and vehicles. The buildings/Iocations to be included are specified in Addendum A to this proposal. Although we intend to perform a detailed inventory and research at the locations stated in Addendum� A, we request that you provide any current lists and/or cost information pertaining to construction, licensed vehicles, radios and similar mobile equipment to us to ensure that we have located and accounted far all assets. The information to be made available should include such information as asset description, manufacturer, model, serial number, original cost and acquisition date. <\R, <V�j,�M, \� .v JUL 14 '�3 06:05 VP,M� INC. 978 P03i�3 ! r ' � . . � � . � . City af RQ�emdunt ' Rasemount r Mirlil�SOta Page 3 PRCiPERTY "1.'O B� EXCLUDED PrQp�rty to be excluded from Qur appraisal will consist of a�set� af an intangible natur�, recards and drawings, consumable supplies and spare par�,s, inventory i,t�.ms and personal pxap�rty r�f r�mplaye�s. ISI, 1+KETHODOL04Y our inv�stigation af th� prs�perty will �'c►11ow generally aca+apted appraisal practices and will inelude `the use of thbse techniques neceasary to d�veiop valid and acceptabl� Ori,ginal cost, Acquisitiorz Dates, Gost r�f ReproduGtion New and costs of Reproductian New Less Depreeiation. original Cost is defined as the a�tual or �ormal ca�t af new property in accc,rdance with market pric�s as of �he date the gropert� was f�,rst constructed or originally installed. t�hez-e passible, we w�,11 use the Direct Cast�.ng m�thr�d, using the actual or�.ginal cost and acquisitian date fcxr the prop�rty inventoried. When invoices ar accurate records are not reada.ly ava�,lable, we will use th� Standard Costing ar Normal Costing methods, whxeh are defin�d as ��11ows: STp,rTDARD C4ST=r�a ,is used when inventoried property units/c�roups not reconcil.ed ta a hisfioric�l record receive az� estimated cost, wher� p�ssib].e, -ba�ed upan a standard cost (a knawn average a.nstalled cost for a like un,it) at the estimated acquisition dat�. The una.t's age a.s estimated based upan observed condit�.vn, manufacturer's name, madei, serial numb�r, ag� o� the facility, and other factors. NORMAL COSTYNG is used wha�e tha pr�c�d�.ng t�chniques cannot be employed to apply historical cost, cost is �stimated based upon the present cost c�f repraduction new, ind�xed by a r�cxprc�cal factor far th� price increase from the �stimated date af acquisitian tv the appraisal date. Donated assets will be recarded a� fair market value at th� '�ime of danatian. Far assets that h�ve been dana�ed in new ox unus�d conda.tion, the replacem�nt value at the ta,me of donatxon will be used. This �.nformation is available from ^vendQrs, manufa�turers' price lists or telephane quotes. Assets don�ted �sed will b� recarded at their est�,mated fiair market value. / U� \�� y , ' City of Rosemount Rosemount, Minnesota Page 4 During the costing procedures, all items will be assigned a useful life. The useful life of an item will determine its approximate replacement year. � IV. INVENTORY PROCEDIIREB Al1 included fixed assets will be inventoried by major category as follows: � A. LAND Land will be included within our database of information and reports based on information to be provided by �City personnel. The information supplied should include, but not necessarily be limited to location, legal description, acquisition date and cost, and source of funds. � B. BUILDINGSjSTRUCTURES The buildings/structures subject to our survey will be carefully inspected and measured. Basic construction components and building features will be identified and valued. A description of each building will be developed and recorded, showing , construction type, material used. C. IMPROVEMENTS OTHER THAN BUILDINGS Improvements outside of a building and particular . to a parcel of land will be inventoried and recorded by location. Included are parking lots, fencing, and outside lighting. D. MACHINERY AND EOUIPMENT A general inspection and field inventory will be conducted at those sites listed under Properties to � be Appraised. All included fixed assets will be inventoried by major category as followst • 1. IInit Control - Machinery and equipment items with a unit cost of $300 or more, and having an estimated useful life of more than one year will be inventoried and identified individual2y. 2. Group Control - Items which have a unit cost of less that $300, will be listed by' like � asset groups {i.e. furniture) located within the same department and location, indicated quantities and total group costs. . R� �y�� : � X i . City of Rosemount Rosemount, � Minnesota Page 5 3. Lot Control - In addition to the above two,�major categories, we will provide a miscellaneous lot category indicating a general grouping of minor assets (i.e. one lot office equipment, one lot minor tools, etc. ) Assets which fall within the lot control category will be valued at cost of reproduction new only, for insurance purposes. No acquisition cost or date information will be - provided for these assets. OPTION A If you elect the tagging option, our appraisers will apply new bar cade tags to all unit control items and enter the tag numbers into the data base. Tags will be applied in a consistent location on like items, enabling ease of future reinventory. _ � Valuation Resource Management, Inc. will purchase the type and quantity of bar code tags needed for this assignment as well as for perpetuation of the tagging system. E. VEHICLES Licensed vehicles and rolling stock will be included within the appraisal report. The City will be responsible for providing the list of all vehicles. V. COSTTNG PROCEDIIRES During the course of the inventory and the subsequent valuation research, our appraisers wi11 examine all assets to determine: a) date of acquisition b) original cost c) cost of reproduction new d) cost of reproduction new less depreciation, defined as follows: ORIGINAL COBT is the amount originally paid to acquire � the asset, including such costs as set-up charges; transportation; taxes; engineering and archit$ctural � fees; and title insurance. If an asset was donated or bought for a nominal sum, GAAP requires that the asset be accounted for at market value as of the date of acquisition. When possible, original costs and acquisition'dates will be determined via the direct costing method as described in section V - Methodology. Where purchase information is not readily available, costs and dates will be determined by the standard and normal costing methods as described in the Methodology section. �� \"'�M, ,/ •„� � x City of Rosemaunt Rosemount, Minnesota Page 6 C08T OF REPRODIICTION NEW is the amount required to reproduce property in like kind and materials, in accordance with current market prices for materials, labor and manufactured equipment, contractor's overhead, profit, and fees, but without provision for overtime or bonuses for labQr and premiums for material or equipment, based upon reproducing the entire property at one time. ' COST OF REPRODIICTION NEW LESB DEPRECIATION for insurance coverage, is based upon the cost of reproduction new, as defined, less an allowance for accrued depreciation as evidenced by abserved condition in comparisan with new units of like kind, with consideration of physical deterioration and funetional and economic factors deemed relevant for insurance purposes. Our investigation includes the use of various research sources to develop the cost conclusions for each asset or group of assets. These sources include catalogs, phone quotes, price lists, trade journals, magazines, industry publications, technical and pricing subscription services, engineering manuals such as Means, Marshall Swift, Handy Whitman and E.H. Boeckh. VI. DATA BASE ' The information to be contained in the master file data base inventory will include the following information for each asset or group of assets. a. Property/Location b. Building c. Room d. Department * e. Fund * • f. Accoitnt * g. Asset Classification Code h. Asset Number i. Quantity j . Description /��'�� l��lM) Y r City of Rosemount Rosemount, Minnesota � Page 7 k. Manufacturer ** ,� 1. Model ** m. Serial Number ** n. Date of Acquisition (Actual or Estimated) o. Percent Depreciated (physical) p. Unrecovered Cost q. Year to Date Depreciation r. Useful Life s. Original Cost (Actual or Estimated} t. Cost of Reproduction New u. Cost of Reproduction New Less Degreciation * Department, fund, and account numbers will be included . with assistance of City personnel ** To be recorded when available on the individual asset VII. REPORTB Your reports are presented in an easy to read format. One copy of each report will be provided. � Detail as well as summary reports are included in the final product. Your reports will be preceded by a narrative section which will: a. Identify the property appraised b. State the purpose of the appraisal c. Specify the appraisal date d. Define the level of value sought and the premise of value employed e. Describe the nature of the property included in and � excluded from the appraisal f. Diseuss the appraisal investigation g. Indicate the factual data considered h. Present the conclusions of value i. Outline the qualifying and limiting conditions j . Include the signature of an authoriz�d officer of ' Valuation Resource Management, Inc. Your reports will include: An Accounting Summary Report Depreciation Summary Report A Physical Location Report Insurance Summary Report (Both Reproduction New Cost & Reproduction New Less Depreciation Cost) An Insurance Detail Report (By Location� Appropriate Legends � �� `•� �M' .� � x City of Rosemount Rosemount, Minnesota Page 8 Additional reports, such as Class Code, Replacement Year, Depreciation Projection and Current Year Additions reports can be provided for an additional nominal charge. We can also provide you with the asset data on a floppy disk in ' ASCII format, to be input into yaur data processing system, ' for an additional nominal eharge VIII. TIMING Upon receipt of your authorization, we will contact you to determine a mutually agreeable schedule for the project planning meeting and our field investigation. Delivery of ' the final report will be within approximately 90 days of the ' start of the field work, assuming we receive any required information from the City of Rosemaunt in a timely manner. If this schedule does not meet with City requirements, . please inform us as soon as possible so that we may alter our schedule to meet your needs. I%. PER60NNEL Recently, Real Estate Tax Services, a nationwide valuation and consulting firm with offices in twenty major cities throughout the country acquired certain business interests of Alexander and Alexander. Valuation Resource Management, Inc. has been established to continue to provide services to our public entity clients. The entire Public Entity practice and staff remain intact in operation under the new company name. Valuation Resource Management, Inc. will continue to specialize in establishing ' cost records for fixed asset accounting and insurance valuations to cities, caunties, risk pools, schools, water and wastewater districts and special districts. While our name has changed, the staff is committed to providing the highest level of professional services wh�.ch has differentiated us from other appraisal companies in the past. Our references (Addendum B) will attest that customer satisfaction of our completed reports is our� key goal. � our group is comprised of full time, in house appraisers. We hire the most qualified professianals in our industry, • because we are committed to satisfying our clients. � �� City of Rosemount Rosemount, Minnesota Page 9 Valuation Resource Management, Inc. is managed by Mr. � • William N. Jaeger, President. Mr. Jaeger has more than ten � years experience in inventory and valuation procedures for property records of cities, counties, school districts, colleges and universities, and states. He has managed hundreds of public entity engagements, and is a nationally known speaker on fixed asset and insurance issues. Included among the national organizations Mr. Jaeger has addressed and performed workshops for, are the Association of School Business Officials and the Government Finance officers Association. %. OPTIONAL SERVICES PROPERTY CONTROL MANIIAL - OPTION B We will prepare a property control manual which will provide instructians for recording praperty additions, retirements, transfers, and other property changes. To understand the City's policies and procedures regarding fixed asset accounting, our project manager will meet with department personnel responsible for acquiring ar disposing of assets. Upon completion of the interviews, we will prepare a manual with descriptive information on topies including, but not limited to, property control responsibilities, methods for asset tracking, tagging procedures, and cading and sample forms to be used. APPRAISAL IIPDATING SERVICE - OPTION C As an option we offer an annual appraisal updating service. The serviee reguires that the City provide Valuation Resource Management, Inc. with a complete list of all additions, retirements and transfers having accurred in the previous year. Valuation Resource Management, Inc. will provide the necessary reporting forms to ensure proper maintenance of the system. In addition to� the standard reports issued, as stated under the Reports Section of this praposal, we will provide you with additions, retirements, transfer and replacement year. F.A.C.T.S. SOFTWARE PROGR�M - OPTION D Valuation Resource Management, Inc. has developed a fixed asset software package for Municipalities. The Fixed Asset Control and� Tracking System (F.A.C.T.S. ) Software Program addresses financial reporting, property control and insurance requirements. It aiso provides addition, transfer and retirement reports for a complete audit trail, n\ �Rl� �V�✓�M� � x City of Rosemount Rosemount, Minnesota Page 10 replacement year reports to assist in budget forecasting and vendor, lender and asset maintenance reports to improye � asset usage. The F.A.C.T.S. System, has been developed for use on an IBM ' PC-AT (or compatible) system having a minimuYa of 20 megabytes hard drive storage, 640K RAM, and using DOS version 3.1 or greater. Key areas of the program have been ' safeguarded by the use of passwords to discourage the misuse ' of the system by unauthorized personnel. ' F.A.C.T.S. is a user friendly software. The program offers the flexibility and versatility of setting the data parameters of the report you wish to run. For Example, yau have the option of selecting all information within the data base or limiting the information to one or more locations, buildings, rooms and/or classifications of assets to be included in a report. By providing this flexibility, F.A.C.T.S. enables you to run any of the defined reports for a single class of assets; a particular area or building; or a specific manufacturer. You could, for instance, elect to include only data processing eguipment to be replaced in 1995 in the Physical Location Report, allowing you to easily locate only those assets. Customization of the program can be provided should ' specialized reparts or functions be r�quired. '' The F.A.C.T.S. program is menu driven for ease of operation. The average time needed to learn F.A.C.T.S. and use it effectively is eight hours or less. The off-the-shelf version includes: * A license agreement to use the program * Fixed asset software program and appraisal data base provided on 5 1/4" or 3 1/2" diskettes * •Complete documentation/user manual� including system table information specifically implemented �for the City of Rasemount * File layaut providing a glossary of accounts and descriptive abbreviations • l�„ �V)(Mj . . . . . ��.J' . f 1 City of Rosemount Rosemount, Minnesota ' Page 11 ! The installed version includes the off-the-shelf version � plus: * Installation of the program and appraisal , data base on your computer * On-site instruction to appropriate personnel . using the data base and system tables * Four hours of telephone support time'. Additional phone support time is billed at standard hourly rates. Support time must be used within one year of installation. * Program and documentation updates * Discounts on program upgrades OPTIONAL BAR CODE PROCESSING FEATIIRE F.A.C.T.S. Software Program offers an optional feature enabling the City to compare a bar code scanned inventory to the base. inventory and then print reports displaying: r . A listing of the assets that were supposed to have been located within a particular building, department or room and their present location (unrecorded transfer) . Assets that were not scanned due to being, missed in the scanning process, having a defaced or missing tag, or 3 being improperly retired or stolen from the scanned • area (unrecorded retirement or missing asset) . . The assets that are located within a particular building, department or room that were not previously shown on the base inventory (unrecorded addition) . By using this type of asset tracking system, you can meet property control objectives with a minimal investment in time and human resources, as well as a substantial reduction in errors. In order to keep our software program and your insurance values up to date, the City may want to consider using our Annual Software Maintenance and Insurance Update Service. ��1 ��1�) � i City of Rosemount Rosemount, Minnesota Page 12 ANNIIAL SOFTWARE MAINTENANCE AND INSIIRANCE IIPDATE SERVICE - OPTION E On an annual� basis, the City would provide to us a back-up copy of their property records on floppy diskettes. We would update the program to include any changes occurring in the prior year and apply industry indices to all classifications of assets to reflect their current insurable values. The updated diskettes would then be returned for continuing use of the system. In addition to annually revising the insurance values, our annual service would provide any program or documentation updates, four hours of phone support time, and a one year extension of the warranty. . AIITOMATED DATA COLLECTION - OPTION F With the purchase and use of a laser scanner reader and a portable data collection unit, the City could perform an annual reinventory of its equipment items. The City personnel would use the reader to record the bar code tag number for each tagged unit control item and then transmit the data to the collection unit for storage. Next, the collection unit's diskettes would be up-loaded into the City's personal computer which had been designed to run Valuation Resource Managements' F.A.C.T.S. Software Program. The scanned inventory data would then be compared to the base inventory and reconciled. The City would generate its own revised standard reports and activity reports refleeting additions, transfers, and retirements. Discrepancies between the base inventory, processed changes and the reinventory could be investigated by use of the following additional reports: _ � The assets that are located within a particular building, department or room that were not previously shown on the base inventory (unreeorded additions) . A l.isting of the assets that were supposed to have been located within a particular building, department or room and their present lacations (unrecorded transfer) . Assets that were nat scanned due to being missed in the scanning process, having a defaced or missing tag, or being improperly retired or stolen from the scanned area (unrecorded retirement or missing asset) . � �t•��^` . �.v);�� . t + . . . �. . . . . . .. City of Rosemount ' Rosemount, Minnesota Page 13 • Valuation Resource Managements' F.A.C.T.S. Saftware Program can process a scanned inventory in which Telxon readers and collection units have been employed. Each collection unit would he programmed to enable ease of reinventory and proper interface with the F.A.C.T.S. Software Pragram: %I: GENERAL INFORMATION The following conditions are considered standard practice in the performance of our appraisal services and, if applicable, are made a part of this proposal. All available data and records deemed necessary in the search for costs and historical background should be provided to our appraisal -staff. The Cit� should identify all equipment not owned by the City in advance of the field inventory. A list of all assets on loan or off site for repair should be furnished to the appraisal staff. We will maintain copies of the final reports, together with all field notes and working papers in our files for a period of five years from the date of the appraisal. Should the need arise, these documents will be made available to the - City of Rosemount. ' Valuation Resource Management, Inc. will render advisory service at no charge to the City of Rosemount, its auditors and insurance representatives regarding the pracedures and methods used in the appraisal process and the resulting values of the assets appraised. In the event of property loss involving assets • appraised, Valuation Resource Management, Inc. will provide to the City at no cost, current insurable values of the affected areas. This service is available for one year after. completion and delivery of the final reports. This service will remain in effect on a year to year basis as long as .the City uses one of the updating services described within this proposal. �� /�R�,�� V,.►y�; 1 T City of Rosemount Rosemount, Minnesota Page 14 %II. FEE AND PAYMENT SCHEDIILE Based on our understanding of your requirements and the level of professional skills necessary to complete this project, our fees are as follows: Fixed Asset Appraisal Service Based on a $300 Unit Control Level $7,500 Option A - Tagging of Fixed Assets At The $300 Unit Control Level (Excludes The Cost Of Tags) $ �5p Option B = Property Accounting Manual $1,0�� Option C - Appraisal Updating Service $ 700 Option D - F,A.C.T.S. Fixed Asset Software Off-The-Shelf Version $1,200 Installed Version $3, 000 Bar Code Processing Feature $ 300 Option E - Annual Software Maintenance And Insurance Update Service (Beginning On The First Anniversary Of The Appraisal) $ 750 Option F - Automated Data Collection: The Following Product Costs Apply in Conjunction With The Purchase Of Our F.A.C.T.S. So�tware Program , Includes: Mars Electronic MEQ 330 Partable Bar Code Reader With Laser Scanning Option, 256 K RAM, Spare Battery, Charger, & IBM At Format Cable $2, 690 The above fees include any and a11 expenses incurred by Valuation Resource Management, Inc. in preparation and completion of the inventory, appraisal and reports. our fees are guaranteed for a period of forty-five (45) days from the date of this proposal. �R � /�� (V�>CM� ; '�,; r r . City of Rosemount Rosemount, Minnesota : Page 15 3 Valuation Resource Management, Inc. will invoi.ce you for professional services rendered during the progress of our � work. Progress invoices up to 85� of the total fee will be issued as follows: 60� .of fee will be invoiced after ` completion of on-site investigation and inventory, 25� after j , completion of the costing phase of the engagement and the - balance (15�) will be invoiced after delivery of the final reports: Invoices are payable on receipt. In the event invoices are not paid on a timely basis defined as within thirty (30) days of receipt, allowing for normal mail services, we reserve the right to charge interest calculated on the basis of one and ane-half percent (1-1/2�) per month. A separate invoice for the software and bar code hardware would be issued by Valuation Resource Management, Inc. upon delivery or installation and is due and payab].e upon receipt. We have relied on certain property and building data ` provided by the City af Rosemount in developing these fees. Additional locations, buildings, or structures encountered, or corrections to the list of properties provided to Valuation Resource Management, Inc. , necessitating an increase in professional time, will be charged at our ' standard per diem rates inclusive of expenses and billed in addition to the agreed on fee. Fee quotations for the � inclusion of additional properties or buildings will be provided on request. i %III. CONCLIISION Should this proposal meet with your understanding of the services required, and you agree with the methads and � procedures as outlined above, please signify your acceptance by executing the signature block on the enclosed duplicate � copy of this document and return it for our files. • We look forward to working with the City of Rosemount on this important project and assure you our service will be as desired and e�ected. Should you have any questions regarding this proposal, please call me at (414) 224-9730. ' `� �� ' ✓ � � Valuation Resource Management, Inc. Los Angeles • Milwaukee • Philadelphia June 7, 1993 Ms. Diana Korpela Accountant City of Rosemount 2875 145th Street West P.O. Box 510 Rosemount, MN 55068-0510 frR`. Dear Ms. Korpela• It was a pleasure speaking with you this morning about your upcoming fixed asset project, As discussed, I have prepared the �ollowing information to.:as,sist in your decision-making process: . � � 3�-:_.: . . � . . s.,;.: � � . . '. 1) We would not require additional fee to amend our tagging threshold from'$300 . - original cost to $250 - replacement cost; , 2) Our programmer has told us that F:A.C.T.S. could be used in .a network environment, however we currently are not aware of any users doing so; 3) As` an additional, option .the� underground utility lines :(water, sanitary and:storm);=;could be included for a fee of $2,400�;: assuming `adequate records and mappings exist,. ; „.- 4) Inclusion of the +Community Center �next year (upon its completion) would. not be difficult for the City. Regardless o= which route you elect to perpetuate your records, it is our .standard policy to leave you with policies and forms which will assist ,yau ..in updating your records. ; ,` � I will follow up with you in the upcomirig=°'weeks to make sure you have everything you need from us. If I can answer any questions in the meantime don't hesitate to contact me. Regards, VALUATION RESOURCE MANAGEMENT, INC. � _ �i�� --�� Mark T. Hessel Vice President 207 East Michigan St.,Ste.200, Milwaukee,WI 53202 Phone 414-224-9730 Fax 414-224-1341 JUL 14 '93 06:05 VRM, INC. 978 P02/03 Gity o� Rosernount ' , Rc�semount, Minn�sota Page 16 A U T H O R T Z A ",P � O N Please note the s�ryices you desi�e by placing' a chec�c m�rk in �he space prc��trided. Our fees are as �o1.lows: �i.x�cl Asset Appraisal Servic� : Based qn a $250 Unit Control Level $7,5QU Ux�dergr�und Utila.ty Lines (Water, Sanitary & Storm) A��uming Adequatie Records & Mapping Exist $2,4bb �pticn A - Tagginq Qf Fixed Assets ' At Th,e $250 Uriit Cant�ol Leve�. {Excludes The Cost o� Tags) The Cit�r Should �udg�t ' ApprQximat�ly $250 Fc�r The Cost Of Tags , $ 750 Option B - Property Accountinq Manual $�., 000 dp�ion C � APpraisa� Updating Service $ 700 cJption D � F.A.C.T.S. Fix�d Asset Softwar� Off-The-Shelf Version $�.,200 Installed Version �3,ppp Bar Cc►de Processing k�eature . $ 3pp Option E - Annual Saftware Maintenance And znsurance Update Sex�tice (Beginning On Tl�e �'irst Annxversary O� The Appraisal) ' $ ?50 Option F -- Automated Data Callect�.on: The Ft�llaw�.ng Product Costs Apply In Canjuncti4n With The Purchase Of Our F.A.C.T.S. Saftware Program Includes; Mars Elect�c�nic MEQ 330 Portabl� Bar Cade Reac�er With LasEr Scanx�ing c7p�ion, 256 K RAM, spare Ba�tery, Chargex, & ZBM At Format cabJ.e $2, 690 ACCEPTED: CITX bF ROSE�QUNT l�ate Name: Title; OFFERED HY: VALUATI4N RSSOURCE MANAGEMENT, �],3C. 'V+�-� `� `�.�...!�, Mark T. Hesse3. DiStrict Repr�sentativ� June �7 1993 . ��j�� V� , . : ,� i . ADDENDLTM A � PROPERTY LOCATIONS ; i , { ; �� f A City of Rosemount Properties to be Inspeated Description/Address Scruare Foot Area Fire Hall Station 14425 Brazil Avenue g,�gg Utility Maintenance Garage 14425 Brazil Avenue � Storage Squads/Carpenter Shop 14445 Brazil Avenue 2�4g2 Well House �7 & Tower 14950 Chippendale 523 Well xouse #3 14475 Brazil Avenue 250 Well House #6 � 4145 147th Street West 280 Lift Station #2 Utility 13636 South Robert Trail 14 Lift Station #3 Utility 3980 157th Street W 4� City Hall 2875 145th Street West 16,000 1 MG Tower ' Water Tower #2 Shannon PKWY 2, 663 Well House �8 15623 Shannon PWKY 640 Lift Station #4 145th Street West � 82 Lift Station �5 137th & Danube 100 Shelter Camfield Park 14795 Canada Avenue 540 Park Warming House Chippendale Park 148?6 Chrysler Avenue 649 Shelter Connemara Park 13930 Connemara Trail 1, 000 �� ,✓ l� , > � Page 2 DescriptionfAddress Square Foot Area Control Building Connemara Park , 13930 Connemara Trail 144' , , , � i � Warming House Erickson Park 14435 Brazil Avenue 320 , Shelter Serving Area Erickson Park 14115 Brazil Avenue 2�32q, Control Building Jaycee Park . 15425 Shannon PKWY 144 Shelter Jaycees Park � 15425 Shannon FKWY 1,325 Shelter Schwarz Pond Park � - : 13787 Dodd Blvd. 512 Control Building Shannon Park 13260 Shannon PKWY 144' Repairs, Inc. ' 14390 South Robert Trail Large and Small Building Land Only Old Launderville Property 14520 Burnley Avenue • Old Schneider Property 14675 Burma Avenue � � . � \✓ �� , . R E F E R E N C L B � Valuation Resource Management, Inc. 's experienced appraisers have been selected to conduct fixed asset inventory and , valuation work (in compliance with GAAP Reporting` : Requirements) of a nature similar to that proposed to the ' City of Rosemount for a number of public entities including but not limited to: , � l • � ; , ; . ��1 \J`�, � 1 ! �1 � REFERENCES (SAMPLE LIST) Ms. Lois Spear Controller Metropolitan Waste Coatrol Commission St. Paul, Minnesota (612}222-8423 The VRM team of appraisers is currently completing a fixed asset inventory and appraisal of all Commission Owned facilities. The Commission currently operates eleven (11) sewage treatment facilities in and around the Minneapolis/St. Paul area. MWCC's largest plant treats approximately 275 MGD, and the entire system is served by 66 major lift stations. The project calls for a complete recanciliation of MWCC's cost records to our detailed inventory. This process wi11 involve the direct matching of line item costs as well as a more complicated method of reconciliation, whereby total contract costs must be spread over a detailed group of specific asset listings. (1992) Mr. Steve Inskeep Superintendent Rnoxville Water Works Knoxville; IA (515-828-7706 Our fixed asset appraisal included the water utility plant and underground distribution lines to meet property accounting requirements. (1991) � �� , Ms. Haze1 Paine � Clerk , . . City of Amherst ' Amherst, OH ' (216-984-2128 i We have appraised all City owned fixed assets including those in the water and : wastewater utilities for insurance and property accounting purposes. (1991) Ms. Margaret S. Harris Purchasing Agent City of springfield . Springfield, OH > (513-324-7336 � ; ` VRM staff conducted a complete inventory and appraisal of the City's land, land ` improvements, and buildings for their . . general fund. The scope of the enterprise funds was expanded to include process � machinery and equipment. The cities � enterprise fund properties included a 36 MGD water treatment facility and a 25 MGD sewerage treatment plant. The project ' included reconciling to existing cost � records. (1991) � ' Ms. Kimberly Bond Accountant City of Pleasaatan i Pleasantoa, CA � 510-484-8030 Our staff has just completed an appraisal of the City's fixed assets to meet : insurance, property accounting and external audit requirements. Included were major water and wastewater assets. � (1991) � �� ,� Mr. William Kaslar Risk Manager City of 8anta Rosa 8anta Rosa, CA 707-524-5337 VRM staff recently completed a valuation of buildings and contents for insurance placement purposes. (1991) Mr. Jerry Johnson Insurance Claims Manager Public Liability Division City of San Diego San Diego, CA = 619-236-6237 The staff made a detailed appraisal of 250 of the City's major buildings for insurance purposes. (1990) Ms. Leslie Lundy City Accauntant City of Champaiga Champaiqn, IL 217-351-4415 VRM recentiy completed an appraisal of all ' � City assets including the sewer collection system to meet insurance and property accounting objectives. VRM has also . produced a Property Accounting Manual for the City. (1990) . � �� , � � , , Mr. Philip Deaton " City Administrator City of Ripon . � Ripon, WI 414-748-7771 , VRM staff completed the appraisal of the City's wastewater assets including the collection lines to meet insurance and property accounting objectives. (1990) . Mr. David Dickson . Webster Enviroamental Associates, Inc. � ' VRM appraisers worked as a subcontractor ' for Webster Environmental Associates, Inc. an engineering firm. Responsibilities { included review of field inventory data provided by Webster personnel valuing all inventoried fixed assets of East Bay Dischargers Authority, entry of data into . our database and providing final reports. � Mr. Frank Grosso � Business Manager South Bayside System Authority '_. Redwood City, CA 415-591-7121 � VRM staff established an accurate record , of the Authority's newly constructed � wastewater treatment plant to meet � - accounting, auciiting, property control and insurance requirements. � � �� Mr. David Kale * Manager of Financial Operations Cambridge City Schools ,� cambridqe, MA 617-349-6400 * Former Assistant ta the Treasurer � - City of Cambridge, MA A fixed asset inventory of all City assets was performed. Appraised assets consisted of buildings, equipment, water & wastewater treatment plants pumping stations, reservoirs & utility undergrounds. Mr. Jaeger served as engagement manager for the project. The ; . purpose of the project was for financial reporting and insurance placement. Ms. Cappie Fine Finance Director City of Boulder Boulder, CO 303-441-3505 A fixed asset inventory & valuation of the City's enterprise fund assets consist of land, land improvements, structure, equipment, dams, reservoir, contributed � ' mains, collection and distribution system. , A detailed property accounting manual was prepared. Mr. Jaeger was the executive- in-charge & on-site project manager. His responsibility � was solely all infrastructure valuation, consisting of aging, lifing, and costing. He assisted the City in the design of a grid basis system that enables the City to perpetuate the infrastructure recards effectively. In addition, policies and procedures were . established joint3y with City personnel and made a part o� the accounting manual. . _ �(M � V� , , � l , � ,, � � 1 ; Mr. Michael Kurtz ! Manager . Suburban East Salem Water District �f Salem, OR � , � 503-364-Z620 ' VRM staff performed a fixed asset � inventary and valuation of the District's buildings/structures, improvements other ' than buiZdings, machinery and equipment, ; vehicles, and infrastructure. Including wells, pump stations, offices/warehouse � � and underground water lines. The purpose � of the appraisal was for financial � reporting, prbperty management, and for insurance placement and proof of loss ' substantiation. � � i � � � , � , i ; , ; ��j �' �� „ ADDENDIIM C PROFESSIONAL QUALIFICATIONS �� V” , , � PROFESBIONAL QIIALIFICATIONB „ 3 � The following pages contain information about. the Valuation Resource Management Team who will manage and supervise the ' inventory and appraisal for the City of Rosemount. ; , Valuation Resource Management's public entity group has } always felt that our greatest assets are the people we have i in our employ. One of the primary factors you will most likely be considering is the direct experience -of the personnel we will assign to perform your appraisal. In this regard, we feel very confident in stating that Valuation Resource Management, Inc. has one of the finest, if not the finest group of dedicated public entity appraisers in the • country. � , , . � ; , � , l � ; i � �� .. i � . . � � � � � . R Valuation Resource Management,Inc. V M PROFESSIONAL PROFILE � �WII�LI�+iM N. JAEGER, ASA � , � President ; SIGNIFICANT CAREER EXPERIEI�ICE Strategis Asset Valuation & Management - Vice President Consilium - Managing Director of the Public Sector Groun American Appraisal Associates - National Manager Public Sector Mr. Jaeger has been in the appraisai field' since 1979 . His . management experience together with his years of extensive technical experience, make him uniquely qualified to serve his clients' needs in the public sector. He has been involved in over 500 projects for states, cities, counties, risk pools, park districts, universities, colleges, school districts, private schools, water and waste water treatment facilities and various municipal authorities. Mr. Jaeger is responsible for the overall operation of Valuation Resource Management, Inc. He specializes in the valuation of real estate and machinery and equipment for public entities and non- profit institutians. He has completed appraisals for all types of - machinery and equipment and buildinq service systems, unigue and monumental building structures, land, land improvements, water and waste water treatment facilities, electrical power generating facilities and infrastructure type assets. These assignments have been completed for the purposes of establishing fixed asset records, as well as for estab2ishing insurable values, glanning and lifing studies and fair rental value. . In addition, while at Strategis, Mr. Jaeger was called upon as an expert witness, giving testimony in the State of Colorado on fair rental value conclusion, construction cost estimating and depreciation. Also while with Strategis, Mr. Jaeger performed a quality audit and fixed asset study for the Australian Government Engineering and Water Suppiy Division dealing with water and waste water assets, infrastructure, property control, lifing and aging. . Mr. Jaeger has been called upon to prepare in-depth fixed asset planning studies for several clients. Included among those having planning studies are the City of Chicago, Wayne State University, E1 Paso Independent School District and Seattle School District. r ! ' ' PROFESSIONAL AFFILIATIONS ; American society of Appraisers (senior Designation) , ; Governmental Finance Officers Association y Association of School Business Officials American Water Works Association i i PUBLICATIONS . . i � i "Establishing a Fixed Asset Management S�rstem" Government Finance Review � � "Establishing Insurable Values Utilizing A Model Approach" � American Citv and Countv magazine t � i Authored four chapters on fixed assets for the Governmental ' Finance Officers Association publication on fixed assets dealing with inventorying, lifing, coding and depreciation � i Seminars on various appraisal topics such as fixed asset management and insurable values for the National Association � of College and University Business Officers, the Society of j Property Administrators, the Governmental Finance Officers � Association and .the Association of School Business �fficials ` EDUCATIONAL BACKGROUND � A.A. - Real Estate, Waukesha County Technical Institute, Waukesha, WI � � ; ; � . , 1 � . ; . �/� � �%\"'l R Valuation Resource Management,inc. V M PROFESSIONAL PROFILE , ' l�'LARI� T. HESSEL � Vice President � , , , i = SIGNIFICANT CAREER EXPERIENCE i . Strategis Asset Valuation & Management - Senior Appraiser � � Consilium - Senior Appraiser ; , American Appraisal Associates - Senior Appraiser Mr. Hessel has been in the appraisal industry since 1986. He has ! been involved in hundreds of assignments for public sector clients , and has served as project manager on dozens of such projects. � As a Vice President, Mr. Hessel acts primarily in a project management capacity, overseeing the day-to-day activities on ' engagements. He appraises construction, improvements and machinery and equipment. ; = Mr. Hessel assists public sector clients in preparing fixed asset management systems for the purposes of property accounting and ? control, insurance piacement and proof of loss, and replacement ; forecasting and budgeting. He has completed appraisal assignments for a variety of public entities, including cities counties, sewer � and water districts, risk pool associations, colleges, universities � and school districts. Mr. Hessel has participated in the following major engagements: � � . served as project manager in devel.oping a fixed asset management system for the Metropolitan Waste Control i Commission. MWCC operates eleven waste water treatment plants � in and around the seven county Minneapolis/St. Paul area. This multi-stage engagement involved planning presentatians to � the MWCC staff, the actual inventary and appraisal of all ! plant equipment and structures, a comprehensive reconciliation ' to existing cost documents, software consulting and the design an preparation of a complete property accounting manual to ensure property perpetuation of the fixed asset records. . . served as lead appraiser in a unique insurance appraisal � project for the City of Tallahassee, FL. Responsibilities , included the appraisal of the water and waste water treatment and gas distribution facilities. � ; , � i � . served as project manager for Canton, Ohio City School j District. The project scope included the complete inventory � and tagging of District owned facilities and equipment for insurance and accounting purposes. ' PROFESSIONAL AFFILIATIONS i . � � . . . � . . ! American Water Works Association EDUCATIONAL BACKGROUND � B.B.A. - Finance, University of Wisconsin - Milwaukee i � 1 1 4 } , t 1 f i , � . `R \ r V�(M . . R Valuatton Resource Management,inc. ; V M PROFESSIONAL PROFILE ` GENE K. ARENSON � Senior Appraiser ,, , 3 0 l � SIGNTFICANT CAREER EXPERIENCE � Strategis Asset Valuation & Management - Staff Appraiser i ; Consilium - Staff Appraiser American Appraisal Associates - Assistant Appraiser ; Mr. Arenson has been in the appraisal industry since 1988 . He has � specialized in working with governmental entities specifically, in � the valuation of buildings, building service systems, land, land improvements and machinery and equipment. � ; M=. Arenson has managed many projects for cities, counties, school districts, universities and private companies. He has participated � in projects involving water and waste water authorities. He has 4 applied his expertise in the valuation of fixed assets to assist our public entity clients in meeting financial reporting, accountability and control, establishment of insurable values, ; substantiation of proof of loss, capital expenditure planning, cost : accounting r�quirements and development of property record systems. ; Mr. Arenson was involved in establishing our current property � accounting manual, used by governmental entities ta record and r control all fixed assets. This manual has passed inspection by � auditors for its accuracy and accountability. Mr. Arenson is well versed in the use of out Fixed Asset Control and Tracking System (F.A.C.T.S) software program. He has assisted � elients in the use of the system so they may perpetuate the � valuation conclusions reached in the initial appraisal. � PROFESSIONAL AFFILIA.TIONS ; American Water Works Association , National� Association of Real Estate Appraisers EDUCATIONAL BACKGROUND B.A. - Economics, University of Wisconsin - Milwaukee , , R Valuatton Resource Management,Inc. V M PROFESSIONAL PROFILE ROBERT H. DENGEL : Appraiser � SIGI�TIFICANT CAREER EXPERIENCE Strategis Asset Valuation & Management - Appraiser Mr. Dengel applies his appraisal expertise to the valuation of fixed assets for a variety of purposes, including the establishment of insurable values, substantiation of proof of loss, and development of property"records systems. He has worked on and managed projects that involve the valuation of land, land improvements, buildings and building service systems and machinery and equipment. Mr. Dengel's clients include school districts, cities; colleges, universities, and various other municipal authorities as well as private companies. His clients use the results of the appraisal investigation to achieve audit compliance to Generally Accepted Accounting Princigles (GAAP) and Governmental Accounting, Auditing and Financial Reporting (GAAFR) as well as a basis for prajecting capital asset improvements and rep-lacement and assist in the planning and budgeting process. Prior to entering the appraisal industry, Mr. Dengel worked in the area of commercial real estate where he developed surveys for industrial and retail properties. Mr. Dengel is a licensed real estate broker in the State of Wisconsin. EDUCATIONAL BACKGROUND B.S. - Business Administration, Miami University, Oxford, Ohio � ♦ . � . � . . . . . R Valuatian Resource Management,Inc. V M PROFESSIONAL PROFILE MICHAEL R. SCHIVBTZ Appraiser SIGNIFICANT CAREER E�PERIENCE Valuation Resource Management Inc. - Appraiser Mr. Schmitz applies his appraisal expertise to the valuation of fixed assets for a variety of purposes, including the establishment of insurable values, substantiation of proof of loss, and development of property records systems. He has worked an projects that involve the valuation of land, land improvements, buildings and building service systems and machinery and equipment. Mr. Schmitz's clients include school districts, cities, colleges, universities, and various other municipal authorities as well as private companies. His clients use the results of the appraisal investigation to achieve audit compliance ta Generally Accepted Accounting Principles (GAAP) and Governmental Accounting, Auditing and Financial Reporting (GAAFR) as weli as a basis for projecting capital asset improvements and replacement and assist in the planning and budgeting process. � Prior to entering the appraisal industry, Mr. schmitz worked in the area of commercial & residential real estate where he was employed in the construction trades. He has worked in variaus capacities including mason, general carpentry, administration and specialty work including remodeling. EDUCATIONAL BACKGROUND B.B.A. - Double Major - Real Estate and Management, University of. Wisconsin - Madison t s ERPLANATION OF REPORTS ACCOIINTING SUMMARY Summary report displaying : acquisition cost totals by fund. Within each fund the � totals are broken down between � asset type (100 = land, 200 = land � improvements) . Assets inaluded in this report have an acquisitian � cost equal to or in excess of the i Entity's Capitalization policy, and have been purchased prior to the Accounting Appraisal Date (Fiscal � Year End) . ; PHYSICAL LOCATION A detailed listing of assets � which supports the totals of . the accounting summary report. Assets included meet the same criteria as above. It is called ; the physical location report be- cause within fund it is sorted by ? . location, building, and department: � � ACCOIINTING DETAIL A detailed listing of accounting assets sorted by fund then � department number. Report displays last years accumulated depreciation, ariginal cost, and current year provision and ; accumulated depreciation amounts. , INSIIRANCE SIIMMARIES (2) The first report shows summary totals for the Cost of i Reproduction New/New Reproduction Cost, as defined in our certificate � letter. The report is sorted by • location and building, and displays totals by asset type. The second report�s format is the same, but i its totals are for Cost��f Reproduction New Less Depreciation , /Actual Cash Value. Totals include � all assets as of the Appraisal • Date. INSIIRANCE DETAIL This detailed listing combines . Cost of Reproduction New/New Replacement Cost and Cost of Reproduction New Less Depreciation /Actual Cash Value. Sorted by � location, building, arid department. , It's totals support those of the j insurance summaries. � a�� t r • 06/26/91 13:44:12 CITY OP 35FA '• .— . PAGE 1 ASSET SUMMARY BY FUNO, ASSET ACCOUNT TEAR: 12/31/90 � ACQUIS. COST SALES AND ACQUIS. COST : ASSET ACCOUNT BEGIN BALANCE ADDITIONS RETIREMENTS TRANSFERS EHDIN6 BALANGE . FUND 100 GENERAL FUND • 100 31,575.00 500.00 0.00 200 0.00 32,075.00 22,463.50 0.00 0.00 0.00 22,463.50 � 300 226,575.39 0.00 0.0� 500 0.00 226,575.39 267,562.83 11,121.62 0.00 0.00 278,684.45 �0 573,587.30 22,467.00 0.00 0.00 596,054.30 ----------- --------/------ --------------- --------------- ----;-•-i TOTAI FUND 1,121,764.02 34 088.52 . O.OQ 0.00 1 155 852.64 ' ` a t . �C � V� 06/26/91 13:26:26 C1TY OF PAGE 1 351FA DEPREC[ATdON SUMMART BY FUND, ACCUM. DfPREC. ACCOUNT YEAR: 12/37/90 ACGUMUlATEO ACCUN. DEPREC. ANNUAI SALES AN� ACCUH. DEPREC. _ DEPREC. AGCWNT BEGIN BALANCE PROVIStOH RETIREMENTS TRANSFERS ENOING SAIANCE FUND 100 GENERAI FUND 615,445.03 80,949.49 0.00 0.00 697,095.02 ------------•-- ----------•---- --------------- --------------- --------------- TOTAL FUND 100 616,145.03 80,949.99 0.00 0.00 697,095.02 fUND 201 STREET MAINT. 8 REPAIR 2b1,088.48 19,891.98 0.00 0.00 280,980.46 ------- --------------- ---•----• --- --------'------ TOTAL FUND 201 261,088.48 19�891.98 0.00 . 0.00 280 980.46 fUND 204 PARK ANO POOL FUND 109,745.67 14,245,20 0.00 0.00 124,090.8T ` --------------- --------------- --------------- ----- •--..__. ._-- --------- TOTAL fUND 204 109,'I95.6T 14,295.20 0.00 0.00 124,090.87 FUHD 205 INCONE TAX FUND 2,914.98 1,12b.71 , 0.00 0.00 4,041.69 --------------- --------------- ----�---------- --------------- --------------- TOTAL PUND 205 2,914.98 1,126.71 0,00 0.00 4,Q41.69 fUND 250 CABIE TELEVFSION FUND _ � 1T,160.1G 6,274.10 0.00 0.00 23,434.24 --------,------ --------------- --------------- ----•---,--•--- } TOTAL FUND 250 17,160.14 6 2T4.10 0.00 0.00 23 434.24 fUND 600 • VATER.REVENUE fUHO � j � . . . � . � � . � 146,545.20 8,759.35 0.00 0.00 155,304.55 j �---------- -- --------------- --------------- -------�-- --- -�--•--------- TOTAL FUND 600 146,545.20 8,759.35 0.00 .0.00 . 155,304.55 � FUND 610 SENER REVENUE FUND . 618,753.58 80,048.47 0.00 ' 0.00 G98,802.05 -- --------------- -------------•- --------------- --------;------ , TOTAL FUkD 610 618,753.58 80 048.47 0.00 0.00 698 802.05 PUND 620 ELECTRIC REVENUE FUNO � 275,720.94 60,507.53 O.AO 0.00 336,228.47 --------------- --------/------ --------------- ------- -------- --=------------ ! TOTAI FUNO 620 275,T20.94 60 507.53 0.00 0.00 336,228.47 `� C�� . � 06/26/91 13:57:58 CITY Of � 39fA PAGE 2 PNYSICAL LOCATION REPORT YEAR: 12/31/90 • TAG! � � ASSET ID QTY DESCRIPTION * MANUPACTURER * HODEL * SERIAL NUMBER CUSTODIAN LIfE DATE••AC�`SIT10N...... NEV REPLACE. cosr cosr � � � ; BUIIDING Ot CITY HALL/POLICE STATION DEPARTNENT 1001 POLICE DEPARTHENT 000055 � i SCOPE, NIGNT VIENING * STARTRON * MK-303A * 3238 10 01/04f90 2,000.00 2,200.00 000061 1 TYPEURITER, SELECTRIC 11l, CORRECTING * IBH * * 10 OtI01/83 805.88 875.04 4048008 060064 1 BASE STATION * MIDLAND * 40N, 80 CHANNEL * 10 09/O1/84 970.00 1,150.00 000065 1 RADlO, HOBILE, U/POL/ER SOURCE (ASTRON) * MIDIAND * * 10 09/Ot/84 584.00 750.00 000066 1 RADIO, PORTABLE, N/CHARGER * UNIDEN * FPHSGD * 10 0'{/13/86 734.00 800.00 53000360 000059 t TYPE4IRITER, SELECTRIC III�, CORRECTiNG * 18H * * 10 O1/01J83 795.00 875.00 4004471 Q00060 1 TYPE4lRITER, SELECTRIC III, CORRECTINC * IBM * * 10 01/O1/83 805.88 8T5.00 40462% 91001508 1 PHONE SYSTEN 7HRWGNWT POLICE DEPARTMENT * * * 10 Ot/01/88 3,610.00 3,70Q.00 ' 91002303 1 CAHERA MUGSHOT, lJ/STANO U/VIVITAR FIASH * POLAROIO * 10 01/OtJ84 655.00 900.00 SNACKMAN * 000058 1 BREATNALYlER * SHITN 8 UESSON * 900 * 6440 10 Oi/O1/78 862.50 1,500.00 00005T 1 AIR CONDITIONER, NINDON * GEMERAI EIfCTRFC * * 15 12/01/90 850.00 850.00 � 000063 1 RECORDER, TELEPHONE LINE * DICTAPHOHE * 5842 " 442883 TO 06/Ot/85 5,000.00 5,800.00 91001803 1 TIHE CLOCK * CiNCINNAT( * * 10 01/O1/77 504.40 650.00 000068 1 VCR * RCA • TKP1400 * 4282H5097 10 O1/Ot/86 592.80 650.40 91001504 1 ALARH PANEL, 100-ALARM * DlEBOID * * 10 Oij01/74 1,926.00 4,500.00 9100160& 1 VJDEO CAMERA, COIOR '� RCA * CLR200 * 544230524 10 01/O1/88 854.10 000067 1 YCR * RCA * TKP1400 * 4265H5082 900.OD ' 0000T1 10 O8/01/84 579.15 650.00 t BASE REPEATER SYSTEM * TAIT * * 86908027 10 Oi/13/89 4,3b8.50 5,000.00 . 000056 1 RECORDING SYS7EM, UNDERCOVER, TAGGED CASE * * * 10 O1/01/84 2,800.00 3,000.00 9120401 � 000062 1 PNOTOCOPIER * PANASONIC * fP-1520 * DFA2503378 10 01/01/90 1,491.14 1,550.00 000069 1 V[DEO CAMERA, COLOR * RCA * CKCO20 * 4143H3107 10 U1/Ot/84 585.D0 500.00 � 000073 1 RADlO, PORTABLE, V/CHARGER * UNtOEN * SPH58E * 10 O1 01 87 83000778 ! l 612.30 650:00 i � -------------- -----^------- � TOTAI DEPARTMENT 1001 POLICE DEPARTMENT 31,985.65 38,325.00 ) DEPARTMENT 4001 BUILDING 1NSPECTOR � 000014 1 TYPEIIRJTER, SELECTRIC II, GORRECTING * 16M • * • 10 01/Ot/78 686.00 875,00 2238268 -------------- ------------^ . TOTAL DEPARTMENT 4001 BUILDING INSPECTOR • 686.00 875.00 DEPARTHENT 7001 MAYOR'S OFfICE 000012 1 TERMINAL, COMPUTER * UNfSYS * UVT1224 * 40119805 000010 S 01/01788� 695.00 b�0.00 1 pNOTOCOPiER * RICOH * FT4085 � 0675053958 10 08/08790 7,590.88 1,650.Q0 � 000011 1 PRINTER, COMPUTER * UNISYS * * S Oi/01/88 1,59T.00 1,400.00 FUND 100 GENERAL fUND LOCATION 01 CITY NAII/POLICE STATI BUILDING O1 � CITY NALL/POLICE 57A7fON � � � V� � , O6/2b/91 11:40:25 PAGE: 3 31FA DETAII DEPREClATION BY ACCUMULATED DEPRECIATION ACCOUNT, FUND YEAR: 12;31/90 ASSETS SHOUN LtITN NO COSi HAVE BEEN TRANSFERED TAC/ DESCRIPTION ACOUtS(TION .......DEPREGdATION..:......... � ................ ................ ASSET ID MANUfACTURER * MODEL * SERIAI f! LIFE COST PRtOR ANNUAI TRANSfERRED ACCUMUCATED 91010315 CHAINLlNK FENCING 20 1,344.00 1,075.20 67.20 1,742.40 •* i 91010316 NROUGHT iRON fENClNC 20 572.00 t0,Q00.00 0.00 10,000.00 , w. 91010515 CNAINLIHK FENCING/GATE 20 530.00 371.00 26.50 397.50 #* � 91003101 CITY HALL AND POLICE S7ATION 50 36,400.00 36,400.00 0.00 36,400.08 *• . , TWO-STORY AND GROUMD LEVEL; • MASONRY AND NOOD FRAMING; _ SANDSTONE EXTERIOR uALLS; Lr00D � FRAME STRUGTURAI FLOORS, AND ' � ROOF; ASPHAL7 SHINCIE ROOF • � . COVER; t�000 STUD PARTIONS; BUILD[NC SERVICES lNCLUOE 1 PARTtAL A/C, NEAT, ELECTRICAL, '• ANO PIUFSBING; BUILDING FEATURES INCLUDE SECOND FLOOR BAICONY AHD ; STAGE, AND STEEL STAIR ftRE ESCAPE; YEAR CONSTRUGTED 18$4; 3 10,488 TOTAL SOUARE FEET. 91003201 CITT HAII BANOSTAND/RESTROOM 50 1,820.00 1,820.00 1,82Q.00 ; .• � � ONE-STORY; MASONRY FRAHING; ' SAHDSTONE EXTERIOR NALLS; � CONCRETE ROOF V/RAILIHG; j BUILDING SERVJCES 1NCLUDE ' ELECTRICAI ANO PLUNBtHG; ERECTEO 1884; 386 SOUARE PEET � 91003301 GENERATOR (BACK-UP) BUlLDING 50 1,745.10 279.20 34.90 314.10 � ,�« PIASTER ON @LOCK EXTERIOR LlALLS; � � CONCRETE ROOF; CONCRETE SLAB; 70 SOUARE FEET • 91003401 GROUNOS EeUIPMENT SHED 25 � 1,662.Q0 531.84 66.48 598.32 •t . L100D FRAME; tr0OD BOARD EXTERIOR . � 4JACLS; CONCRETE S4A8; ASPHAIT SNINGLE ROOF COVER; 96 S4UARE FEET a i , FUND 100 CENERAL fUND ACCWNT � �� ' , � 06/26/91 14:29:58 . CiTY OF . 465FA PAGE: 1 1NSURANCE SUMMARY REPOR]' - NRC ONLY YEAR 12/31/90 NEV REPLACEt{ENi NEL/ REPLACEMENT EXCIUSlON COST ASSET TYPE COST •AMOUNT LESS EXCiUSION LOCATION 01 CITY HALL/POIICE STATlON • � BUILDIMG 00 RISK AREA . . IAND 0.00 0.00 0.00 ---------•----• --------------- ---•------ TOTAL RISK AREA "" 0.00 -0.00 0.00 --------------• •------•------- TOTAL BUILDING 00 """"""'--' 0.00 0.00 0.00 BUILDING 01 CITY HALL/POLICE STA710N RiSK AREA CONSTRUCTION 1,040,000.00 11,960:00 1,D28,640.00 htBE/fURN.& FIXT. t87,570.Q0 0.00 187,570.00 --------------- --------------• -------•------ TOTAL R1SK AREA - 1,227,570.Q0 11,9b0.00 1,215,61A.00 --------------- --------------- --------------- TOTAL BUIIDiNG 01 C1TT HALL/POl(CE STATION 1,227,570.00 11,9b0.00 1,215,610.00 BUILDING 02 BAND STAND RISK AREA . GONSTRUCTION 52,OOO.QO 7,800.00 44,200.00 ---------••---- --------------- --------^ TOTAL RISK AREA ----- • 52,000.00 7,800.00 44,200.00 --------------- -----------^-- TOTAI BUILDING 02 BANO STAND -�-�'"""'"" 52,000.00 7,800.00 44,200.00 BU[LDING-03 GENERATOR SHEO � RISK AREA GONSTRUCTION 2,100.00 252.00 i,848.00 � M8E/FURN.b FIXT. 12.000:00 0.00 12,000.00 ---=----------- ---------•----- TOTAL RISK AREA '^'-'~•--�---- . 14,100,00 252:00 13,848.00 � --------------- -----•-------•- --------------- TOTAI BUIIDiNG 03 GENERATOR SHED 14,100.00 252.00 13,848.00 BtJILDING 04 CRWNDS EGUIPMENi RISK AREA � � �� i. I . . . . � � .� � .. 06/2b/F1 15:00:02 . , CITY Of PAGE: i 466fA INSURANCE SCIMMARY REPORT - ACV ONLY YEAR 12/31/90 ACTUAL CASH ACTUAL CASH EXCIUSlON VALUE ASSET TYPE VAIUE `AHOUNT LESS EXCLUSION IOCATiON 01 CI7Y HALLIPOLICE STATION BUILDINC 00 RISK AREA LAND , 0.00 0.00 0.00 --------------- --------------- --------------- TOTAL RISK AREA 0.00 0.00 0.00 --------------- --------------- -------•----.._ TOTAL SUILDING 00 0.00 0.00 0.00 BUILDING O1 C[TY HAII/POIICE STATION RISK AREA CONSTRUCTION 52Q,000.00 5,980.00 514,020.00 M8E/fURN.& FiXT. 131,872_40 0.00 131,872.40 --------------- -------------•- --------'------ TOTAL RISK AREA 651,$72.40 5,980.00 645 892.40 --------------- --------------- -----•--------- TOTAI BUILDING 01 CITY HALL/POLiCE STATION � b51,872.40 5,980.00 645,892.40 BU1lDiNG 02 BAND STAND RISK AREA � � i . ' CONSTRUCTtON 26,000.00 3,900.00 22,100:00 --------------- -•------,------ --------------- TOTAL RISK AREA • 2b,000.00 3 900.00 � 22,100.00 --------------- ---•--- --...- --•------------ TOTAL BUILDtNG 02 BAND STAND 26,040.00 3,900.00 22,100.00 � BUtLDING 03 GENERATOR SHED ; � RISK AREA CONSTRUCTION 1,785.00 214.20 1,570.80 HBE/FURN.& FtXT. 9,600.00 0.00 9,600.00 ----= -------- ------ ---- --------,------ TOTAL RISK AREA 11 385.00 . 214.20 91 170.80 ------ ;---•-- --------------- --------•----.. TOTAL BUIIDING 03 CENERATOR SHEO 11 385.00 214.20 11,t70.80 Bl7ILDING 04 CRWNDS ECUIPNENT . RISK AREA t"R) �� , • � i � ' . � � � � • � O6/26/91 15:33:33 CITY oF PAGE 2 462FA INSURANCE DETAIL REPORT 411TN DESCRIPTION - NRC AND AGV YEAR: 12/31I90 DESCRIPTION TAG/ MANUFAGTURER * HODEL " SERIAI NUMBER lSE DATE IN EXCLU NEtI REPIACE. ACTUAL CASH , ACT1V[7T ASSET ID QTT EXPANDED DESCRlPTION (Y/N) SERVtCE X COST yp�(� . BUILDING Ot C[TY HALL/POLICE STATION DEPARI'MENT 1001 POLICE DEPARTHENT RISK AREA . BOOKNG 91002302 4 LOCKER *2-TIER* Otl01J76 600.00 360.00 BOOKNG 91002303 1 CAMERA MUGSHOT�, t!/STAND V/VlYITAR FLASH : POlAROID*SHACKMAN* 01/01/84 400.00 720.00 � (273) BOOKNG 000058 1 BREATHALYZER i SHITH $ uESSON*900*6440 O1/O1/78 1,500.00 600.00 ' BOOKNG 91002301 1 LOCKER ' ** 01/Ot/76 125.00 75.00 , BOOKNG 91002307 1 SETTEE, 3 SECTION *# 01/O1/68 450.00 712.50 BOOKNG 91002305 1 LOCKER, GUH, 4-PLACE luiER. SEC.** Ot/01/89 225.00 273.75 f BOOKNG 91002308 1 CAMERA, SECURITY y MAGNAVOX** 01/01/84 250.00 200.00 ; CPTAIN 91001209 1 GROUP OF HISC. EOUIPMENT , : i� Ot/Ot/St 150.00 112.50 CPTAIN 91001213 1 FILE, COMBINATION �. Ot/O1l7b 215.00 165.00 1 CPTAIN '91001210 1 'TpPE RECORDER, CASSETTE 1 REAU STIC*CTR-71* 01/01/87 60,00 57.00 ' CPTAIN 91001211 1 CABINET, 2 DOOR, COUttTER NEIGNT s• . 01/01/81 150.00 112.50 , CPTAIN 41001212 2 CHAIR, ARM, METAL, UPHOLSTEREO . ** . � O1I01/74 280.00 i54.00 CPTAIN 91001204 1 CHAiR, STENO . wr 01/01/70 145.00 65.25 LOCATION CITY HAII/POLICE STATION BLDC CITY HAII/POLICE STATION DEPT POLICE DEPARTMENT RISK AREA �/ � `>/ , - . , �, i ; � ; . ADDENDIIM E s j , PROPERTY CONTROL MANUAL OUTLYNE y � {r . ) � � . . . � � . . � f __ � 1 ; ' �� 0�� 4 � � i . � � . � . . � F I X E D A S 8 E T M A N U A L OIITLINE � I. INTRODUCTION A. �BJECTIVES � a. GAAP � � � b. GAAFR . ; c. FEDERALLY FUNDED ASSETS d. INTERNAL - OTHER e. EXTERNAL - OTHER . ' B. PROPERTY RECORD BASIS II. PROPERTY CONTROL RESPONSIBILITTES � A. ADMINISTRATION • B. FINANCE DEPARTMENT RESPONSIBILITIES C. INDIVIDUAL DEPARTMENT RESPONSIBILITIES III. POLICIES AND. PROCEDURES ; A. CAPITALIZATION . B. UNIT VS GROUP CONTROL C. EXPENSED ASSETS ; � D. CAPITAL LEASES � E. USEFUL LIVES ' F. REPAIR VS REPLACEMENT DECISIONS G. SURPLUS EQUIPMENT ' H. SALVAGE VALUE IV. ASSETS THAT REQUIRE MONITORING V. TAGGING PROCEDURES A. DETERMINING ASSETS TO BE TAGGED B. PLACEMENT OF TAGS C• REPLACEMENT OF TAGS D. STEWARDSHIP OF TAG SUPPLY E. TAGGING RESPONSIBILITY � � VI. GENERAL OPER.ATING PROCEDURES FOR MAINTAINING ' PROPERTY FIELDS AND DATA BASE � ; A• PREPARATION OF FORMS j B. CREATION OF ASSET INFORMATION FILES C. PROCEDURES FOR ACQUISITIONS MADE THROUGH i PLTRCHASE ORDERS ; D. PROCEDURES FOR UNIQUE ACQUISITIONS � a. DONATED ASSETS b. RENOVATION AND REMODELING• c. CONSTRUCTION IN PROGRESS • . � d. COUNTY MANUFACTURED EQUIPMENT e. MAINTENANCE OF ASSET INFORMATION � f. TRANSFERS � g. SURPLUS PROPERTY h. VERIFICATZON AND UPDATING OF FILES s . . � V � J. � 9 .� � ' . . . � � � . � � � . . VII. USING THE FIXED ASSET SOFTWARE SYSTEM A. ADDITIONS B. COMPLETE TRANSFERS � C. PARTIAL TRANSFERS " . D. EXCEPTIONS E. COMPLETE RETIREMENTS F. PARTIAL RETIREMENTS VIII. DEFINITIONS . ; IX. CODES (TABLES) A. LOCATION CODES B. BUILDING CODES � C. COST CENTER CODES D. FUND CODES E. ACCOUNT..CODES F. ROOM CODES � X. EXHIBITS , A. PURCHASE ORDER � B. VOUCHER ' C. ASSET ADDITION FORM D. ASSET RETIREMENT FORM � E. ASSET TRANSFER FORM • F. USEFUL LIVES 1 ! I 3 � . � � 1 ; , _ � `✓ �� CITY OF ROSEMOUNT EXECUTIVE SUbIlKARY FOR ACTSON CITY COUNCIL MEETING DATE:July 20, 1993 AGENDA ITEM: Closed Session AGENDA SECTION: McDonaugh/Sunrise Builders Litigation CLOSED SESS I ON PREPARED BY:Stephan Jilk AGEND NO �� t!� # ATTACHI�SENTS: None AP VED Y: This is request to go to closed session to discuss client/attorney information regarding the McDonaugh/Sunrise Builders litigation. Mr. Kent Harbison and Mr. Richard Ostlund will be present to discuss the status of the case with the Council . RECONmlENDED ACTION:Motioa to go to closed session to discuss the McDonaugh/Sunrise Builders litigation with legal Counsel . CO'[TNCIL ACTION: ��_ � MEMO TO: MAYOR McMENOMY COUNGIL MENIBERS: KLASSEN STAATS WIILCUX WIPPERMANN C1TY CLERK WALSH FROM: RON WASMUND, PUBLI� 1IV4RKS DIRECT�R �.��'� DATE: JULY 20, 1993 RE: AGENDA ADDITION - EXECUTIVE SESSION I would like to add a second Executive Closed Session to tonights agenda. The purpose of the session is to brief you and get your coneurrence on a proposed settlement agreement in the condemnation proceedings against NHD Properties, lnc. (Rosemount Woods). The District Court hearing is set for Friday, July 23, 1993 at 9;00 a.m. The latest offer which I would like to discuss with you tonight could bring resofution to the situation and avoid any court action. . . . .. .�. � : __. _ _ . � ,,;:�� MEETING SCHEDULE ' JULY, 1993 JULY 19 @ 6:30 P.M. SPECIAL PLANNING & UTILITIES COMM. MEETING - EAST END UTILITY STUDY JULY 20 @ 5:30 P.M. PORT AUTHORITY JULY 20 a� 7:30 P.M. COUNCIL MEETING JULY 26 @ 6:30 P.M. SPECIAL COUNGIL MEETING - �, 1994 BUDGET DISCUSSION ' JULY 27 @ S:OO P.M. PLANNING COMMlSSION . . � � � � . � � �� i � � . . . � ... . . . , . ' OFFICIAL STATEMENT DATED JULY 2, 1993 Ratings: Requested from Moody's NEW ISSUES Investors Service In U�e.opinion oi Briggs and Morgan,Professional Associadon,Bond Counsel,based on present federa!and Minnesota laws,regulations,rulings and decis�ons,at�e Sme of the issuance and delivery of the Bonds to the original purchaser�eieof, the interest on the Bonds is exc/uded fiom gross income for United Siates income tax purposes and is excluded, to �e same extent, fiom both�ross income and taxable net income for Staie of Minnesota income tax purposes(other than Mrnnesota franchise raues measured by income and�mposed on corporations and financial institutions), and is noi an item of tax preference for purposes of federal altemative minimum fax imposed on individuals and corporaGons or the Minnesota altemative minimum fau applicable to indiv�duals,estafes or trusts;provided,however,that ior the purpose of compu6ny the federal alfemative minimum tax imposed on corporations, such interest is taken into account in determining ad%usted cunent eamings. No oprnton wil!be expressed by Bond Counsel regarding other state oi federal fax consequences caused by the ieceipt or accroaf of interest on the Bonds or arising with respect to ownership of the Bonds. See'Tax Exemption"and"O�er Federal Tax Considerations"herein. ► City of Rosemount, Minnesota ` $555,000 . General Obiigation Improvement Bonds, Series 1993A (the"Improvement Bonds°) $1,415,000* General Obligation Improvement Refunding Bonds, Series 1993B (the'Improvement Refunding Bonds") $945,000* . General Obligation Water Revenue Refunding Bonds, Series 1993C (the"Water Revenue Refunding Bonds') $845,000* General Obligation Municipai Building Refunding Bonds, Series 1993D (the"Municipai Building Refunding Bonds") (collectively referred to as the"Bonds" or the"issues") Dated Date: August 1, 1993 fnterest Due: Each February 1 and August 1, commencing August 1, 1994 The Improvement Bonds witi mature February 1 as foilows 1995 $30,000 1998 $55,000 2000 $50,000 2002 $50,000 2004 $50,000 1996 $65,000 1999 $50,000 2001 $50,OOU 2003 $50,0� 2005 $50,000 t997 $55,OOQ The lmprovement Refunding Bonds will mature February 1 as follows 1996 $t65,000 1998 $325,000 1999 $300,000 2000 $165,000 2001 $135,000 1997 $325,000 The Water Revenue Aefunding Bonds will mature February 1 as foilows 1998 $100,000 2000 $110,000 2002 $120,000 2004 $130,000 2005 $140,000 1999 $1U5,000 2001 $115,000 2003 $125,000 The Municipal Building Refunding Bondswill mature February 1 as follows: 1996 $110,000 1998 $115,000 2000 $125,000 2001 $130,000 2002 $135,000 1997 $110,000 1999 $120,000 The City may elect on February 1, 2002, and on any day thereafter, to prepay the Improvement Bonds and/or the Water Revenue , Refunding Bonds due on or after February 1, 2003 at a price of par and accrued irrterest. The Improvement RefundingBonds and Municipal Building Refunding Bonds will not be subject to payment in advance of their stated maturiry dates �,, The Bonds will be bank-qual'rfied tax-exempt obligations pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as : amended,and will nat be subject to the afternative minimum tax for individuals. The Bonds will be issued in iritegralmuftiples of$5,000, as requested by the Purchaser(s),and will be fully registered as to principal and interest. The Bonds will be delivered without cost to the Purchaser(s) within 40 days following the date of their award. The City will name the Registrar and pay for registration services. . ` Amount subject io adjusbnent;see Terms of Proposal. PROPOSALS RECEIVED: July 20, 1993 (Tuesday) at 10:30 A.M., Central Time AWARD: July 20, 1993 (Tuesday) at?:30 P.M., Central Time Further information may be abtained from SPRINGSTED SPR�N�STE� Incorporated, Financial Advisor to the Issuer, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101 PUBUC FINANCE ADVISORS (s�2)223-3000. For purpos�� .Qf ��mpli�nce v�rith Rule__15c2-12 of the Securities and Exchange Commission, --- --- - - this document, as the same may be supplemented or correc�ed by the Issuer from time �o tim� (collectively, the "Official Statement"), may be treated as an Official Statement with respect to the Obligations described herein that is deemed final as�of the date hereof (or of any such supplement or correction) by the Issuer, except for the omission of certain information referred to in the succeeding paragraph. The Official Statement, when further supplemented by an addendum or addenda 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 tssuer designates the senior managing underwriter of the syndicate to which the Obligations are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a Proposal with respect to the Obligations agrees thereby that if its bid is accepted by the Issuer (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Obligations for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. No dealer, broker, salesman or other person has been authorized by the Issuer to give any information or to make any representations with respect to the Obligations other than as contained in the Official Statement or the Final Official Statement, and, if, given or made, such other information or representations must not be relied upon as having been authorized by the Issuer. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the Issuer and, while believed to be reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY 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 Official Statement or the Final Official Statement, they will be furnished on request. TABLE OF CONTENTS Pa e s $555,000 General Obligation Improvement Bonds, Series 1993A Terms of Proposal ' '" .................................................................._............................................ i-in Scheduleof Bond Years ..................................................................................................... iv $1,415,000 General Obligation improvement Refunding Bonds, Series 1993B . Terms of Proposal ............................................................................................................... v-vii Schedule of Bond Years "' ..................................................................................................... vm , � $945,000 General Obligation Water Revenue Refunding Bonds, Series 1993C Terms of Proposal ................................................................................ ............................. ix-xi „ ` Schedule of Bond Years ................. ...................................................... ........ xii $845,000 General Obliga#ion Municipal Building Refunding Bonds, Series 1993D Terms of Proposal ....................... .................................................................................... xiii-xv .... Schedule of Bond Years ..................................................................................................... xvi IntroductoryStatement ............................................................................... ............................. 1 � The Improvement Bonds ........................................................................................................... 1-2 The Improvement Refunding Bonds .................................... ......... ........................................ 2-3 � The Water Revenue Refunding Bonds .............................. ................... ............................. 3 The Municipal Building Refunding Bonds ................................................. ............ 4 FutureFinancing .... .....,................................... .............................................................. ......... 4 Litigation ...................................................................... ................................................... ..:...... 4 legality .....................................,.....................................,........................................................... 4-5 TaxExemption ....... ............. ................................ ................................. . ....... . . .. ... 5 Other Federal Tax Considerations .......................................................................... . ............. 5-6 Bank-Qualified Tax-Exempt Obligations ............................................................... ................... 6 Ratings ............................... ...................................................................:.................................... 7 Financial Advisor ............. � ...... ................ ................... .. ............................. .. ............ 7 Certification .. ................................................................................................ ............... .......... 7 CityPraperty Values ................... ............................................................................................. 8-9 City Indebtedness .. ......................................... ......................................... ............................. 9-13 City Tax Rates, Levies and Collections .................... ............................................................. 14 Fundson Hand ........................... .............................................................. ............................. 14 � ' General Information Concerning the City .. 15-17 � ......................................... ....... ..... ...... .......... ` Governmental Organization and Services . 18-19 . Proposed Form of Legal Opinions ................................................................................. Appendix I Summary of Tax Levies, Payment Provisions, and Minnesota Real Property Valuation .. ......................................................................... Appendix II Annual Financial Statements ..................................................,.....................,................. Appendix lll ProposalForms .,.............. .............................................................................................. Inserted THE CITY HAS AUTHORIZED SPRINGSTED 1NCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASiS: - -- __ __ _ TERMS OF PROPOSAL � $555,000 CITY OF ROSEMOUNT, MINNESOTA . GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1993A , Proposals for the Bonds will be received by the City Administrator or his designee on Tuesday, July 20, 1993, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated August 1, 1993, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1994. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will be issued in the denomination of$5,000 each, or in integral multiples thereof, as requested by the purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it 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 amounts as follows: 1995 $30,000 1999 $50,000 2003 $50,000 1996 $65,000 2000 $50,000 2004 $50,000 1997 $55,000 2001 $50,000 2005 $50,000 1998 $55,000 2002 $50,000 OPTIONAL REDEMPTION The City may elect on February 1, 2002, and on any day thereafter, to prepay Bonds due on or after February 1, 2003. Redemption may be in whole or in part and if in part, at the option of the City and in such order as the City shall determine and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par plus accrued interest. , SECURITY AND PURPOSE ' , The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. In addition the City will pledge special assessments against benefted property. The proceeds will be used to finance various improvement projects within the City. TYPE OF PROPOSALS Proposals shall be for not less than $548,895 and accrued interest on the total principal amount of the Bonds. Proposals shal(be accompanied by a Good Faith Deposit ("Deposit") in - i - the form of a certified or cashier's check or a Financiai Surety Bond in the amount of $5,550, 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 fram an insurance company licensed to issue such a CITY OF ROSEMOUNT, MINNESOTA bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to - Springsted Incorporated prior to the opening ofi the proposals. The Financial Surety Bond COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If IN RETAINED EARNINGS the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is PROPRIETARY FUNDS 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., ----------------- ---------------- Fo r the Yea r s Ended Decembe r 31 , 19 9 0 and 1 9 8 9 � 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 Ente:prise Fund fails to comply with the accepted proposal, said amount will be retained by the Gity. No � 9 9 0 1 9 8 9 proposal can be withdrawn or amended after the time set for receiving proposals unless the OPERATING REVENUE meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to S 2 71 , 8 4 7 $ 2 2 � , another date without award of the Bonds having been made. Rates shall be in integral Water Sales 069 multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same Sewe r Charg es 2 8 8, 3 9 0 21 0 , 8 9 4 maturity shall bear a single rate from the date of the Bonds to the date of maturity. No wat e r S u r ch a r g e s S 3, 3 5 9 2 7, 4 5 0 conditional proposals will be accepted. Water Meter Maintenance 1 , 650 9 , 003 Water Meters 15, 649 11 , 786 AWARD Miscellaneous 34 , 753 19 , 867 Tota 1 Ope r at i ng Re ve n ue S 6 6 5 , 6 4 8 S 5 0 0 , 0 6 9 The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true OPERATING EXPENSES interest cost (TIC) basis. The City's computation of the interest rate of each proposal; .in Salaries and Wages S 1 6Z, 2$6 $ 1 38, 851 accordance with customary practice, will be controlling. S uppl i e s 5 6, 4 7 0 4 9 , 9 3 2 The City will reserve the right to: (ij waive non-substantive informalities of any proposal or of Othe r Se r v i ces 19 9, 5 6 2 1 1 � , 4 0 4 matters relating to the receipt of proposals and award of the Bonds,�(ii) reject all proposals Othe r Cha r g es 16, 6 7 7 2 C , 0 0 0 without cause, and, ui re ect an ro osal which the Ci determines to have failed to com l Metra Sewer Charge 226, 481 1 58, 883 � � � y p p � py Depreciation Expense 95 . 136 85 .7?8 with the terms herein. Total Operating Expenses S 756, 612 S �64 , 846 REGISTRAR Operating Income (Loss ) S ( 90 , 964 � S ( 64 ,779 ) The City will narne the registrar which shall be subject to applicable SEC regulations. The City NON-OPERATING REVENUE {EXPENSES ? will pay for the services of the registrar. Interest Earnings S ' 04 , 861 $ 226 , 913 Interest an Bonds t 1 i 0, 553 ) ( 23, 674 ) CUSIP NUMBERS Other Expenses ( 1 , �52) ( 718) ff the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Net Non-Operating Revenue (Expenses ) S ( 67 , 1 54 ) s 202 , 521 Bonds, but neither the failure to print such numbers on any Bond nor any error with respect INCOME BEFORE OPERATING TRANSFERS $ ( 158, 1 18 ) $ 137 , 742 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 Operating Transfers In 268,215 127, 595 " shall be paid by the purchaser. Operating Transfers Out ( 88 , 331 ) ( 142 , 742 ) , NET INCOME S 21 ,766 � 122, 595 i SETTLEMENT RETAINED EARNINGS, January 1 2,751 , 474 2 ,62g,g79 W�hin 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 RETA I NED EARNINGS, De cembe r 31 � 2, 7 7 3, 2 4 0 $ 2,7 51 , 4 7 4 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 -------- - --i--�--' 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 111-12 - ii - CITY OF ROSEMOUNT, MINNESOTA made impossibie by action of the City, or its agents, the purchaser shali be liabie to the City for COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES any loss suffered by the City by reason of the purchaser's non-compliance with said terms for IN RETAINED EARNINGS payment. . . . ALL PROPRIETARY FUND TYPES OFFICIALSTATEMENT + For the Years Ended December 31 , 1991 and 1990 The City has authorized the preparation of an Official Statement containing pertinent , information relative to the Bonds, and said Official Statement will serve as a nearly-final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. Enterprise Fund _ For copies of the Official Statement or for any additionat information prior to sale, any � 1 9 91 1 9 9 0 prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, OPERATING REVENUE 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. Wate r S ale s $ 3 0 6, 5 3 2 $ 2 71 ,8 4? ,. Sewer Charges 426, 728 288,390 The Official Statement, when further supplemented by an addendum or addenda specifying the Wate r S u r cha rg e s 4 2, 5 91 5 3,3 5 9 maturity dates, principal amounts and interest rates of the Bonds, together with any other Water Meter Maintenance 8, 787 1 ,6SU information required by law, shall constitute a "Final Official Statement" of the City with respect Wate r t�iete r s 16, 9 3 9 1 5, 6 4 9 to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any Miscellaneaus 45 ,035 34 ,753 underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no Total Operating Revenue $ 846 ,612 $ 665 ,648 more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 25 copies of the OPERATING EXPENSES Official Statement and the addendum or addenda described above. The City designates the Sal a r i e s and Wag es $ 181 , 2 9 7 $ 16 2, 2 8 6 senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for �uppl i e s 1 0 3, 4 4 3 5 6, 47 0 purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Othe r Se rv i ce s 6 3, 8 5 8 19 9, 5 6 2 Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its Other Charges 4, 074 16, 677 proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a r�et r o Sewe r Cha rg e 2 6 4, 10 8 2 2 6, 4 81 contractual relationship with all Participating Underwriters of the Bonds for purposes of 131 , 446 95 , 136 assuring the receipt by each such Participating Unden+vriter of the Final Official Staternent. Depreciation E;xpense Total Operating Expenses $ 748 ,226 $ 756 ,612 Dated June 15, 1993 BY ORDER OF THE CITY COUNCIL Operating Income (Loss) S 98 , 386 $ ( 90 ,9641 /s/ Susan M. Walsh NON-�PEkATING REVENUE (EXPENSES) Clerk Interest Earnings $ 37 , 833 $ 104, 861 Interest on Bonds ( 96, 323 ) ( 170, 553 ) Other Expenses ( 1 ,830 ) ( 1 ,462) Net Non-Operating Revenue (Expenses) $ ( 60 ,320 ) $ (67 , 1541 � INCOME BEFORE OPERATING TRANSFERS $ 38, 066 $ ( 158, 118 } Operating Transfers In 30, OG0 268, 215 Operating Transfers Out - ( 88 ► 331 ) NET INCOME $ 68, 066 $ 21 , 766 4 � RETAINED EARNINGS, January 1 2,773 ,240 2,751 ,474 ' RETAINED EARNINGS, December 31 $ 2, 841 , 306 $ 2, 773, 240 - iii - iIi-1� cmr oF Ros�Mourrr. MirvNEsoTA SCHEDULE OF BOND YEARS COMBINED STATEMENT OF REVENUE. EXPENSES AND CHANGES 1N RETAINED EARNINGS $555,000 ALL PROPRIETARY FUND TYPES CITY OF ROSEMOUNT, MINNESOTA YEAR ENDED DECEMBER 31. �ss2 � GENERAL OBUGATION IMPROVEMENT$ONDS, SERIES 1993A Cumulative To7A�s Year Principal Bond Years Bond Years 1992 1991 • OPERATING REVENUE: 1995 $30,000 45.0000 45.0000 Water sales 5358.068 5306.532 " Storm Water Charges 1996 $65,000 162.5000 207.5000 203.701 Sewer charges 475.652 426,72s 1997 $55,000 192.5000 400.0000 Water surcharges 47,543 42.59t Water meter maintenance 1�,55o g,787 i 998 $55,000 247.5000 647.5000 Watet meters 25.890 ts,939 1999 $50 000 275.0000 922.5000 Miscellaneous 58.704 45.035 � TOTAL _ S�.�s�.ios saas,s�2 2000 $50,000 325.0000 1 ,247.5000 OPERATfNG EXPENSES: Salaries and wages 2001 $50,000 375.0000 1 ,622.5000 5214.380 5181.297 Supplies 75.313 103,443 2002 $50�000 425.OOOQ 2,047.5000 Other services 126.929 63,858 Otfier charges 5s7 4.074 2d03 $50,000 C 475.Od00 2,522.5000 Metro sewer charge 297,564 264,t08 2004 $5� 000 C 525.0000 3 047.5000 Dep�eciation 138.034 131.446 ' ' TOTAL 5852.817 5748.226 2005 $50,000 C 575.0000 3,622.5Q00 OPERATING INCOME 5328,289 598.386 NON—OPERATING REVENUE (EXPENSES): AV2t^ag2 MatUf ity: 6.53 Y@1f` Interest revenue 534,591 537.833 interest expense ? Bot1dS Dated: August 1 , 1993 (S 131.969) (96.323 otherexpenses �b�,o73) (�,sso) Interest Due: August 1 , 1994 and each February 1 and August 1 to maturity. TOTAI (598.451) (560.320) INCOME BEFORE OPERATiNG TRANSFERS Principal Due: February 1 , 1995-2005 inclusive. 5229.838 538.066 OPERATING 7RANFERS: Opt1011a1 Call: Bonds maturing Otl or after February 1 , 2003 are Ca118b12 operat;ng transters in ' commencing February 1 , 2002 and any date thereafiter at par. Sas2,000 s3o,000 (See Terms of Proposal. } Operating transfers out (51,489.00a} TOTAL (51,037,000) 530.000 ` C: subject t0 Opt1011al Gall NET INCOME(�OSS) (5807.162j 568,066 BEGINNING RETAtNED EARNINGS 52.841.306 2.773.240 ENDING RETAINED EARNINGS 52.034.t44 52.841.306 III-10 - iv - THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE �m� �''^ �'^N� ` °'� '�`" � `�r °' " �° �`�IN " ^ `� ;; v O rn v ui to o��v a m r�- a��o o cy a+ a� �n � o�r��a a� r r II ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: `:'""' °°� �- °'o o '=�"=�`= �� ^N;� N � Q ° . � ,_,T � �D r1 N O�m e�1'-�p.S1� � .O�O O N O ��ff N Q�O� O � t7 �O��OD N� �t1 � �"1 j� . __. . ._ .._ _._.. _._ .__ ___ m N N t� N r C't�O Cp f`�CD tC1 v Ca f� t�'1 C' �D tf1 �!'�C t0 9� \D �"' 11 � __._. __ -___- -... _. . y . .__ . . _._ ___ . . ... . _... ,.y. � ..��1'�N CO 01 G�.c>}. ._4 10-Qi_L'1-CD- sII. f}1.__ _. t!1 �D�O.t!1 -.. C' :fV r U _ ... -_ __- ._ ._ _ . ..... ... _ . . . .. _.. ... _ __� � �_� � ._ . . � __ � .___ � � C^ � tn � N N O� C' __ N N N�N •- .r- p� n.._ ___ TERMS OF PROPOSAL ° �" �" .� E cn vr vs I cn vr us �v� v> vs i� R � ... . . � 0 C O O t�1 tf1 N �N�T I� � I�N t!1 GO P+ O t11 tf1 O� � N r p 1'+ tf1 �Q T j� � � � t'1�T N �-O�v t�O'�O t��O�t!1 GD O� O N G�O O O tPf�u1 C' f� N I� $1,415�000* E" a o o� o<v�n m Q,�c� �m o o� o�o�v �o Q � �,Im v e� o ii Ep ao o — o w��o�.a �o�o r-, �c�o 0 0+�n v� m �rn a� w :�, �ri ii CITY OF ROSEMOUNT, MINNESOTA �," N- p`'W��-- �� N�� o � � „ g a� m N o u'� co�n-- c� r o�v t> �- v� o o u'i c �D r� '- N + � .- � � .- GENERAL OBLtGATiON IMPROVEMENT REFUNDING BONDS, ^ � ^ `� � - N^ � � �� „ ,� � � � �. `"� � � II SERIES 1993B � � „ . . � . . � . U � � � co Ico v N �o �I � a�h to � �D O Q' II � Z i c�r` v� � r � �n o v� tr a� rn II „aj ; � y �o�c �o N a, c�� ^n o�o � �n �n n � i � i i i i i i . � i i i r `!i Proposals for the Bonds will be received by the City Administrator or his designee on Tuesday, m � L � "' "' `° `"' �`°N � N e ,", N N c� r m n�— rr u� r July 20, 1993, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Z � a o � "' "' " � ^ p ° Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and � � �;, ` - ` -- ° onds will be b the Ci Council at 7:30 P.M., � `� �' `� `� `� `� I � ^ � �� t a b u l a t e d. C o n s i d e r a t i o n f o r a w a r d o f t h e B y t y Z � _ Central Time, of the same day. ~ � � � � OD O� eT O O�11�P�O � T a� �c V� �^'1 CO jj . p ^ �f1 O O N ta'- C� � N m T � II Q N N O�D N"� � O� r r C9 m f� i� DETAILS OF THE BONDS Z � � � � �° � . � � � ^ � ^ � � � � . _ . � _ _ , , _ ^ . . ,, � e � o ��,� � � � � � �� . � �w � .- � > N O N .if1 " 5 t!1 R T O O �"� N 0 � ie` '^ (%J 1 v � N O tl1 h =W O N Q� Q� t0 N Q� I) The Bonds will be dated August 1, 1993, as the date of original issue, and will bear interest o " � � -- � � � � �' N ^ �' `° ' ar commencin Au ust 1 1994. Interest will � z F � �' N �' `� I`� "� `�^ I`� N `� �� payable on February 1 and August 1 of each ye , g g , __ � be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will be z � � � v � �, �,�^ N �, � <� �� - � � 1; o-i (J) Z I � U1 C� G�r')N � CA. O W ^^.I M r'1 O C� •T l) issued in the denomination of$5,000 each, or in integral multiples thereof, as requested by the � z� ; �, .� �, o �, �,�,� N � � �� „ purchaser, and fully registered as to principaf and interest. Principal will be payable at the main - � ' � '° ' - ' ' - ' ' - � � � � � � � � - L� �+�..e 1. N .,� C C' �O V'Q' Q1 I"1 N t!') M� tf'1 1J'1 tl� M !1 corporate office of the registrar and interest on each Bond will be a able b check or draft of z � 4 ' � " °' °° � �� `° � � o �i M M V e r II P Y Y � or � v > � �, NC'C1 N � �� QQ e � N the registrar mailed to the registered holder thereof at the holder's address as it appears on the � ,� � � v �a ^ � � books of the re istrar as of the close of business on the 15th day of the immediately preceding � X Z � � y � N � �� `� V`� `� ^ " �I 9 o w � � m month. � �7 I i. eT O V' N N� O�tf1 I� tf1 N� O� ��O� T C'6�(�O� n'1 M1 I Q' j� � � � fi �m O� � �0 �o v r r o�c cv m a� rn o��o co I�"� ^" �o o u� m e� �o il � v � = V. � � .y r'f CD c0�O t!1 O��D�- 01 t[1 m rh O T' O`. O�ttl eT v� e+1 5 II . . The Bonds will mature February 1 in the years and amounts as follows: ? ' " '° ^ ,- . � � � � - - � - �� y, -. „a , .. o+a�r;r;ao--o ni�, �-;�c a�.c �n j o rn�- o �r, � u �- t10m�W00� �-V'O� ^ � MN rn n T II .-i W �4 1 ^ C 4�N O •- M O t�tl� < 1'�I r'i II 1996 $165,000 1998 $325,000 2000 $165 000 � � � � °7 � ^ N� `� v -� 'I 1997 $325,000 1999 $300,000 2001 $135,000 w � �- � N �-� N i � o , o � � � �� . _ _ * The City reserves ihe right, atter proposals are opened and prior to award, to increase or reduce the ? � principal amount of ffie Bonds offered for sale. Any such increase or reduction will be in a total � � � � amount not to excee d$5 0,0 0 0 an d wi l l be ma d e i n m u l t i p l e s o f$5,0 0 0 i n a n y o f t h e m a t u r i t i e s. I n t h e h � " � `� event the principal amount of the 8onds is increased or reduced, any premium offered or any h � � w �, � �, cn v� c m discount taken will be increased or reduced by a percentage equal to the percentage by which the `� ; � � o F � a a � •, � principal amount of the Bonds is increased or redviced. Z ; > o - o z z v � O tJ� cn N V� Q c� t!J OPTIONAL REDEMPTION " � � w � `� �'° " �' " " � p � . tA � :z7 � O C U7Z � � L-] C U � Cii Z " "CI1 7'LS �-+ Z J ^ t�1 . � .y y� G' W E» � !s. C U G] d' O The Bonds will not be subject to payment in advance of their respective stated maturity dates. v � � � > o �W �Z > w � L � x tR v C N c-� L [i: O L G. Q W > y 1� R ,., y y L W o E m tn �-+ � rs7 U a Z a O C7 � � E,..� a� C1 � � .0 �-� v'O N � ^' C d i i. .i � 2 �0 E � E C.� U t� tA Z C N � �• G Gl Z fs. O �•� �+ v fs. Cs. y �-+ 7 G! � SECURITY AND PURPOSE >,.. � �o .��.� o� w v m �.• o �.m o �. o R o,c o w c� c u �+ v E u > c, c > E a, a� m a m � cn +� a v2 m v ti.Q. N C i.w •.� W C �. I y s-�X ^ Ca E O L:� ^C �S 7 � . G� v) v p� s. C � L >+ U � G C fs] E C7 E O � E+ � Z The Bonds will be general obligations of the City for which the City will pledge its full faith and a� v E � o L v � � v v o �, .- � z o � o F � o � - - credit and power to levy direct general ad valorem taxes. In addition the City will pledge o � � � w ro a > v x tt � -� �a � � � L w �o � � �. N � .. �6 N �, a. W KC CA O w i. �.. rtf u�t Q C U w+ •.• L•7 � G] P, Q C� O'O E+ fs]�C9 rt7 O'D > L1.N � F Cs. � Z N N E G• (�-� J U special assessments against benefited properly. The proceeds will be used to advance refund N > W = •� o � � a = L � v-� o �: r a N L y� W z � z z -i a, � o m v+ H ��+ ro v u � �o E-� c �-. z � c, w z 0 �-+ .� a ¢ the 1997 through 1999 maturities of the City's $4,995,000 General Obligation Improv e m e n t � N a �, v v F � � � � _ � � - � � �w w -� � a a � W �.. C ..r r. O�1n �.. �.. �r ti...r ..y n a. �.-� a.+ cp Z Lc. N Ul N Z O � Q G Bonds, Series 1987, dated August 1, 1987 and the 1996 through 2001 maturities of the City's = " °' " � L °' °' °' ° °i'"'"" °' " `' � " � W " � ` � a m m zc � v ,., acu� z c.n � .. �� a �-+ c�. u� azo �aR mz � wv -+ n,cr � c � wv � � ro ,-+ v :� xmL .. L ril ,.. z o 0 $2,575,000 General Obligation Improvement Bonds, Series 1989B, dated July 1, 1989. w �a �� . �o X c�o. a o. o C� X m x a F F X w � � � a w W o m c� c�, III-9 -v- TYPE OF PROPOSALS � �M�N�c�v r r cv�n oo� o�,��, N �o � �* � Proposals shall be for not less than $1,403,680 and accrued interest on the total principai r'�a�c��rn�rrrno ' r�rnvicoco oc�wo 0 o�n�n a � c� . O OD O N tt1 OD V'..--N C�D 00�O O i� .O�D N�D � C . .-.-�01 C' C � O � � . . . � � � - � - . - . amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in --o m o r-o m��o rn� �o�o ri�c .� o oi u�c ao ri rn a ao r� �n � N�- �� a�� ^ �� N�� o � � the form of a certified or cashier's check or a Financial Surety Bond in the amount of $14,150, .� � �N o�, � �,� N�s �� o o�� `° � �- payable to the order of the City. If a check is used, it must accompany each proposal. If a c� o �- ^^ � � �- � �- N� v °' °' Financial Surety Bond is used it must be from an insurance com an licensed to issue such a ro ' � � � � � �s "�s v} vs ' p Y „ ,� bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to o � �n oo r�n r r.-�� ,.-.-a�, o�,M,� N �,�,�,N o �, �, Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond H R1 lO1�f�MCQ1`�00 C V�. O1Q�.-O�O ON �O�D N CMOW � N OD � � � 1.� t(1.--CO N aO M Q1 O.-- � [�.-l0 00 O O N O l'� tD c�t11�0 O d' � O V' � o _ . . . . . . . . . _ . . . . . . . . . , . . , , , � must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If � '� `""'"''°'"`�"'°'`° '``"`""'°' O� �� N N�� N �' '' the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is Ol� tl1 O�OD�!1 N C CO 00 M� N M t!1 O N �O I� JD tf/� V'�O O�� O l0 N E°' N�`°N� `°�`° �°°o`"� �,� °' °° `°""'°' o " N required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's N � `� � '� '� `° v '� '� '� °' � . check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., � � �' `� `� `� `� `� v`� `� `� Central Time, on the next business day following the award. If such Deposit is not received by z � � �+ o o � � .-N O M N � � 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 a i � �n u, ao r, r- �c•-v�r, ,n � � I tC J� 1 1 I 1 I 1 � 1 ^ 1 I � 1 1 I I � � . �-. . . � r w ' � � o °° � � �M�� N a � deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser 1 � •.1 � � Ot sT M M 1�O1 01 h M f� O � ' °�� ' �^ �^ �^��^ a �^ fails to com z , � o � . ply with the accepted proposal, said amount will be retained by the City. No w ; " a " proposal can be withdrawn or amended after the time set for receiving proposals unless the z � `� `� `� `� `� '� `� `� meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to ~ � � � M O M O o�,�,N �, M��,� �, � �, another date without award of the Bonds having been made. Rates shall be in integral `� � � � �'�� N ��' "' ��'�°� � r "' Rates must be in ascending order. Bonds of the same w � � �, � o �� N o N o a � N�,� o ,� � multiples of 5/100 or 1/8 of 1%. � � s � _ , . , , , . . . � � � � ^ . . . . . . . . . . . . � �, �,•.� � �, t��O M O M l!1 01 �, �o�,� � � � maturity shall bear a single rate from the date of the Bonds to the date of maturity. No � i •- A D o � �c r�r �o r� rn �c �n.-o�v .� �n v H �W � , o � M � � � �� M � ��*� � � conditional proposals will be accepted. (!l 0 �+ 1 M C1� . N •- t0 10 . . . Z FC E 1 L vr V} vr t/r Vr Vf V� ur vs z A i a, AWARD ~ �� A n � N �� M � M � The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true f," � W � I E � �.N N� 01t00 OJ N C� ONOh N 01 � 3,' Cc� �! N � '-1 G)� 00 � N JO eT � O N tD O�GO.- O I� OD � ' " '° ' ' ' ' - ' ' . . - ' ' ' ' . ' ' ' . ' - . - . . - - interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in E'� E a I N '•a C �"'� M .-N� 01 01 CD M W.M.-.."') M M t0 � . Z M A�' 1 .0 U N N �- CO�-M N l� O N O O1 CO V� t� .- . � � � o z z � �o a� °' �' '� `" '� '" '' °° N �N � N � accordance with customary practice, will be controlling. E w :a � o� cn a � o W x � � � � � � � � � � � � The City will reserve the right to: {i) waive non-substantive informalities of any proposal or of a w i .-. matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals � � � N��r r�� ^� � � " `� `� � � without cause, and, (iii) reject any proposal which the City determines to have failed to comply tL WO 1 ro a+nr�oaorrn�ao rn�o w o � o0 0 o c9 � a� � r�co co m r,c�r ao �o r-o ao �o �o ^ '- `"' °D '" with the terms herein. z � � �c . . . . . . . . . . . . � � � � . . � . � a� wa � L �Mo,�v�r��r,o�o �o�,r,�, � o N N .= �„ � E'� � a 1 y N �N O��V�N�P M M M 01 C�1 l0 O ::J f'� �O �O Ol �O �f1 . � . . . M W R�' I .0 C� � �O e- OD.- .-C O�GD tf1�11 01 C tfl U'1 01 O � . . . � � . . � w � � � � N N '" REGISTRAR o i o vs vs � _ � � � � �, � � � w � The City will name the registrar which shall be subject to applicable SEC regulations. The City £ � � will pay far the services of the registrar. ti i � � a � CUSIP NUMBERS CHA I U W H� w � w � � o o + If the Bonds qualify for assignment of CUSIP numbers such numbers will 'be printed on the M � o w �, �, � � w � Bonds, but neither the failure to print such numbers on any Bond nor any error with respect � � w x �� , w e' , thereto will eonstitute cause for failure or refusal by the purchaser to accept delivery of the o � � � w � o G N z � w�n �- Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers U I W 2 � W 7'L) H �Z W r� � � a w H w � c� w x� .- shall be paid by the purchaser. � � � . . N �t� . . C � � � ��' O fJ)w �92 � �9 W� � f..� � � � . . . . % N N C' N H W W O ►.�tra FC W a ?� � N 1� N N s.� W O � N ul ra t� W CJ N 2 C4 O C7 ►+ :0 H�.. .0 a, � � � •.� a, v d o a x m.� w w z b E � a.-� u.N w z c +, L � c� a v. o a.� .� a, w w cn� a v SEl?LEMENT >.L c� �c.-+.-+ rn w e� ar •.+ o rz. w o sz. o ro o.c o w v c o ;v a� E +i � ar c 9 E m +�ca w w cn u� .0 a c� z �a v �. a m a Lw.., w e L � a� � x --aa-� sow a � h a �, N �, v L � a �. ,, � a � � w � � c, � o � H� z Within 40 days following the date of their award, the Bonds will be delivered without cost to the a�a a E cn o L c��., u� v o� o a, �+cn w z o ►. o E. �-+ o�-+ o c �n c u. ro > a,x a �� rn a v w �n .-� w v..�.v o c� cn w vi vi •. �o H w .. � � � o:� L •.� � .� � .� � x � ��, .. w w purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be a Rt ar o�a H w c� m o�v > w�n H �. �r- z y �n H w c�o� � c� j p Y I� pl� J g p gg 9 �, >w �.� o a �� .•.� �,.�o w H a �, �. �. w w z w z z sub'ect to recei t b the urchaser of an a rovin le al o inion of Bri s and Mor an, .-� v,-i o �a w E• �,-a ro v u .. ro H o � cn z v a� w 2 0 �, � �s �x Rf N RS p+v C! E� �0 U U cf� C � � --o w � a�W w --�H a a Professional Association, of Saint Paul and Minneapolis, Minnesota, which opinion will be w �. G•-� L �� . �. H �.•.�•-� N � •-� v � z � w �, N � � o a � rinted on the Bonds, and of customa closin a ers, includin a no-liti ation certificate. On � vvoa� s. u� c� w oa,�.-�xw +� Lc-•+ cnwa uaa �n� an m zcuv+� roa+�.a 2a.a.n �.�.c� a�w cnaa aorom cnzo P rY 9P P J 9 w m•.� a c.�•-+ a ,� w a� � � �a +� a� w x o w +. s. �. w H z o A �c�acn� �wNo �c�aaaoo xw � HaHH xw � � � w w o w w w 111-8 -vi- p su �-vy�vNp�' � � o � 3 cpa -ntn � � � sv3t» � �. � � o� � � � � � c. ..�. o°«' � mv°, � �'* ° m �� Q� � m �- �• �o c o ° �' O `.+° � m � �� v�',m o 3 3 n � v°, `°•� � � � � � � � � 3 �' ., �'.�' �► -am �'• hv, 3 ? m � � � . mN � �s� � ''' � o � ��` cu �. o� �n� � wo m �' � N � o � �« � N m � 3 � � < � �, g � ? � v°� � _ �' (Jl � (D A :-r fl:�•��' < � N� t!� � .�+ C � 3 � N � a'�i (D � n N (� (-�i � � (p � (D C C ..r � -+ • ,�y. (D � :$ � N = � '�� ,.�.,.� � � A1 �'a � �� ?� < !�1 � � ''' tD (D � -� O� Q. � C C �' Q. N N �. � p) (p � tD ,Cy, 8' a'' n � � .r� 7 (D (D C � � � C (D ,..�. Q� (D A1 N � � � `G`< ' �. (D W (� Q. L = Q � fl tA 3 n 3 n (D � O Q �a A) I, < 3 � �' � <p fl. (D � � � 6 '•�'' (D � -. �; (� !, Q '� (�p-p`� ("'D. ^'' � (D .�-+ •-+`G�A1 � (n V� n N ? N � =', "a � ,.�.(� n0 �� '~ N � t�D A1 � C � Qj � � p, n� �K (� �L � � (Q -. � A1 (D .-+ � �. Q7 I � � m -a m Q -, � �, � N 3 � jc�n �� o .� `�' o', � � n�' � o,�•� oc -. r,.cQ � � a �.. � 3 �'`� o °� � � sua: �' �h � ofl. � o� tD � m � � � 3fl. m � � n. �n m .� � m n o � � ,=: u�imN � �' � m =' � �' �' � � � � �.� O N�`'CDm �' �, ,� 3� ,-« � � � � 3 �,. m � ,i o � v� � �. ��- � � Qoam � fl. ,.N-'�..� �;-�o v �Do .r � � � o �'� o �D �� ' � Q � � 3 � m � � c � �, Nfl' � n � � � ° � D � � � � � � � � � � c�. � � 7p � m m � o _. � � m� � � C �� N ��j' p � o �� C �j� � � �• � NQ, � ..�,� � ��, n(n �' � C�-asv �- � n � � � Q � � o �' D � �. '3� � mQ.N ,.`°�.,. � � o. � � �' _,. wp:. a v�ia`� ? tn � � �`� �' o �' -a cn m,,� Q. m .-� -. � � �. .+ �« �' v�i � A�i o N �� sv Ao�i t�-n' Q- � � m � �O N m �: -, Q ° � 3 �, � � 0 � � ° � � oQ � 3 � Z �-v'� iv � ..« s� -i �k v so. � o �i W o v��,� `D .��-« ov Q o °.su �m a o �.« a�i � h � o �,lim � fl- � � o � oo � w �.. �; �� a� oo � �' � � �. cn ? N',f�`� `° � � = � � c�n' O � � � � � c � (� � N Q+ O �� 0 m � v � � � cQ'n � � m � � o � m � � �•�' ° � tD � � a:';. � Q � a� w � � � � � � � �.' o �' � �- � co �. �I� ° m pp �� -v a� -� o ,-• a r► o C� _ � s� - O O � _ � � n�i c?n � Q: m� °� a m�, � � N � � � ° �o a ` � `-'• N'.: (� `-'. p- C7m `D n .+ � � � �� A� ° � ' �- � ` m � -�. f! � � Q.`�. Q' � .� � � N Q N ..�+�. � � � � p' N 3 (D (/) (�p ? N � ''' � �1? •� � O� � � 7' �p !A A�..Q -. � � ¢t Q. O � � � N �' -` � � � N � ? � C N � D'a � S� N N A C� O� ?� W � O n � � � � � ip�j tU C (p`G C r+ -• O � � (p , A p � Q •�+� -N - � � �-a � � �- ��m- ��°, � v�i � �,Z; o� u�'i 3 �'� m �Di< o� . .-,. o -, tv �c� .-« cn ..,. � ., -�.� • O � � � m � �m cn ..« m m .-« O �D � O -• ,. u; O a. 3 Z -� � C � � _. � � t!� � p � N O(Q A1 (1� � -• N�' 6 p C n Z U� .+ -,. =. .+ "� .+ r« � � � n 0 '.�: m ""'' ? 3 � � � � � ? Q � � A�� O OI,� � Q- T. � r' � Q1 (n -' � (D N (D o�G n► -, N � .+ � -, � (n �ITY OF ROSEMOUPIr.MINNESOTA �I COMBINED STATEMENT OF REVENUE,EXPEND�TURES AND CHANGES IN FUND BAtANCES ALL GOVERNMENTAL FUND TYPES YEAR ENDED DECEMBER 31,1992 __ GOVERNMENTALFUNDTYPES TOTALS SPECIAL DEBT CAPITAL (MEMORANDUM ONLY) GENERAL REVENUE SERVICE PROJECTS 1992 1991 REVENUES: Generel property texes i1.342,415 5744.421 5429.725 52.516,561 l2,255,565 licenses and permits 342,742 342,742 193,178 � Special aasesaments 69,249 1,366,585 1,435,834 884.874 � � Intergove�nmenfel � 956,055 49,594 1.005,649 1,256,235 � Cherges tor aervices � � 277,856 . 277.856 125,887 � Fnes end torteitures 44,927 44,927 � 47,377 � � Intarest earnings 30,614 166,678 289,317 i/.�92 �88,101 683,961 . Misceileneous 182,491 88,475 316 41,387 312,669 189,047 . . � � TOTAL 53,246,349 E7.049,168 S2.OE5,943 542,879 � 56.424,339 � S. 5 �,636,144 EXPENDITURES: Current• � � . . . . . . . . . Generalgove�nmen! E1.057,642 5255,287 . =1,312.929 � '� �51,127.79i9 . i Public sefety E885,966 885,966 834,1�1 ' � � Public works �� E743,056 � � f2,548,609 3,291,665 � �1,055,67'��.i . � � � � � Perks and recreetion 5523,296 � � 523,296 � 503,8��'��.� Other 574,159 510,125 209.198 793.482 629,0 9 Debt serviee: � Pedemption ot bonds � 1.395.000 � 1.395,000 1.560,0� . Intereston bonds 773,117 773,117 773,2 � . Fsca�egeM fees � 4.211 4.211 5.0 TOTAL 53,209,960 E829,446 S2,iB2.453 52.757,807 E8,979,666 56,488,7 EXCESS(DEFICIENCI�OF REVENUE OVER EXPENDITURES 536,389 5219.722 (596,510) (52,714.928) (f2,555.327) (E852,6 I'I ) OTHER FINANCING SOURCES(USES) Proceede from sele ol bonds E94.975 56,515,819 t8,610,194 51,642,3AI8 Tranafers irom otbe�tunds E140,230 524,540 1,904,017 2.568,797 1,768.Sfi9 Trensfera to other funds (39,389) (530,039) (38,532) (203.915) (811,8T5) (1.495.Bd5) TOTAL 5100.841 (5530,039j E580,383 58,215,921 l8.367,106 f1,915,0�2 EXCESS(DEFICIENCI�OF REVENUE AND OTHER FINANCING SOURCES OVEH DCPENDITURES AND OHTER FINANCING USES E137,230 (E310,317) i483.873 S5.SOQ893 iS.811.779 i1,062,48'0 BEGINNING FUND BALANCE 1,056,180 1,816.818 _ 5,847,735 506.758 10,227,�89 9,165,029 ENDING FUND BALANCE � � � � E1,193.410� F1,506,501 f7.931.@08 � :6.007,749 516,039,268 T t10,227,4 �. � CI1'Y OP' ROSCMWNP, MINNFSO`fA C(N�1i3INED 8l1LANCF SHEEl' ALL FUND TYPES MID J�CCOUNP GROIIPS I�cember 31, 1990 Proprietary Fiduciary _____ Governmental Fund Types F1and 'I'ypes �nd Type Account Grou s General 7btals Fixed General (Mertarandum Only) Special Debt Capital Assets Inng-7�erm General Revenue Service Projects Enterprise Agency (Unaudited) Debt 1990 198y LIABILITIES AND EUND DQUI'PY LIABILITIES Uue to nther EUnds S - $ - $ 63,697 S 949,820 5 - S - S - g - $ 1,013,517 $ 233,204 Accounts ?ayable 101,910 99,932 - 29,087 15,778 2,013 - - 243,720 208,270 Compensated Ab- sences Payable - - - - 23,958 - - 266,615 290,573 172,296 Accrued Expenses 43,044 - - - 19,697 - - - 62,741 30,151 Accrued Interest - - - - 40,654 - - - 40,654, 1,957 Contracts • Payable - 2,518 - 64,117 56,329 - - - 122,964 191,679 Deferred Revenue 147,059 1,480,012 1,608,370 - q6,358 - - - 3,281,799 2,895,705 ,= Honds Payat�le - - - - 1,405,000 - - 12,470,000 13,875,000 15,100,000 � 'IbTAL LIA- , BILITIF.SS 292,013 S 1,577,462 S 1,672,067 S 1,043,Q24 . 1,6U7,774 S 2,013 S - 512,736,615 �18,930,968 516,833,212 FUND EQUI'I'Y Investme�t in • General Fixed Assets $ - $ - $ - S - ;: - $ -• S11,097,876 S - $11,047,876 S 9, 142,886 Contributed Capital - - - - 1,393,328 - - - 1,393,328 1,571,185 Retained Farnings - - - 2,773,240 - - - 2,773,2a0 2,751,474 �nd l3alance Rssexved 173,783 1,273,793 6,851,778 71,594 - - - - 8,373,948 8,582,293 Unreserved Designated for Working Capital 791,081 - - - - _ - - 791,081 965,000 Undesiynated - - -- - - --� - - 226,181 TOTAL F11�1D DQUITY S 964,864 5 1,273.793 S 6,851,778 $ 74,594 $ 4,166,SG6 S _- $11,U47,876 $ - 529,379,473 $23,2H9,019 �rarn[. LII�BILITIES AND Fl)ND T3QUITY $ 1,256,877 S 2,851,255 $ 8,523,845 S 1,11%,618 $ 5,774,342 $ 2,013 S]1,047,876 $12,736,615 $93,310,441 592,12'1,231 . . � � � H W � N N 1 � 1 . .1 � � . � . . . � � � � � � C � � � � � � I� . ,+ w �+ � cc o o co w co cfl w N• � m a -s � o co ao � rn -s O n '� N W � h,• lD fQ M N r-h ¢�1 � C7 ~ � fD N � su v c c. r+ m t� c m •• c Z � �o .. -, m . .. + �o � a .. � � z -n D D .r� � � w w w � N• � o m c c • w rn o tv n� rn � r � � cQ cfl .i cn cn o cn cn cn � m -� c c -� .. .. .. ,. .. .. N. � . . . . a 4C 1 i � � � � � � � f"J �7 . . � o � � � � � N Z � N . . � . �. 1 1 . A . . �� cfl � W �O O I'=11 o � �o � v � o �' m m ,.� m - o `° O �` --• � m � � � � .. .. .. .. �' � C o � r. � � j .� � � 0 r � o o � rn w -p a � „-ZI c Z N Q N N O N �l N F-'• C Ul C7� O Ut Cn CJl N '11 �i � c m � � o 0 0 0 0 o ai p Z D m � � � � N Q o a D Z c � � N � r+ N j �rn cn .p c,.� -• ao c� m o c � �-+ � w rn � c.�i� -A n c m O �1 U� N N O N I-+ N � CJ7 0 [l7 Cll � CJl fD f'F �+ r"►' O O O O O O � < (�p C O O O O O O N cD (�,� � �FJ• rt � THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE � N o o � N M e a.� �- � � �- si . � ^'1 h :f1 +"'f M �t"1 '�J� O�c' h O O �'�1 11 - „'7� C'O .T �. .� O ��N N GD[� el' Ca f� N 11 ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLL O W I N G B A S I S: - �, � ,�ry� o� � � �N N = �; N �� r� n N - m �+ o �f N(V CO T O� tv n . . � �T Q, m� �7, ry � ry �� t71 � N Q' '� 1) . . _-_ -_ .-_- . ._- __ .. -- -- � .. . � . C� ^ � . .+ r-- .... _�- i€'t 9B N.��-!! - ... -- -.. .._- -- ---- �----- __ _- -- ._- ---- -._ _.._ .__ __ -�--- .. .. .. . . ._.. . ... .. ... . .. N � �... .. � . y rl __. TERMS OF PROPOSAL �� - _ N o+ �e t� N r rn oo ��c:n x r �- �� r mov asc� w x orn � r� v u L �c c�.- M v r� o v a r r� r a� c u . . . . . . Q p C� �-O�1i O ri r� f� tT r .- � � v O u . . $945,000* � T o �� ^ � � �, � �,� m �, m - �� , s �f1 O� cT � �D Qi N.- Q' 3� . UD �"'� ��. p C' ��O �!1 � P'� II . � � II CITY OF ROSEMOUNT, MINNESOTA � `� ° GENERAL OBLIGATION WATER REVENUE REFUNDING BONDS, € F t� M � Ij � � 9 � II 1 I I I . I 1 I 1 I. I I a � II SERIES i 993C N � � A � � ^ � ` , � �c� _ s � �' ^ ° � �� Proposals for the Bonds will be received by the City Administrator or his designee on Tuesday, " `� � `� July 20, 1993, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated, 85 East = � � �� Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and ��D N� � � � � � � � � � � � � � � ;; U �- C7 +�""� tabulated. Consideration for award of the Bonds will be by the Cifiy Council at 7:30 P.M., ��w �'� � � �� Central Time, of the same day. _ � � �, ;; DETAILS OF THE BONDS "' "' �� . . � � L �. I 1 1 I I 1 I � �1 I 1 I 1 N " � . T h e B o n d s will be dated Au gust 1, 1993, as the date of original issue, and will bear interest � o ; 7 ° N ; payable on February 1 and August 1 of each year, commencing August 1, 1994. Interes t wi l l � L � � � ,� � �, �, ;; be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will be Z � z ; o issued in the denomination of$5,000 each, or in integral multiples thereof as requested by the Z � � � � i N v � �� N ^ m� ^ I � �� 7 N \O O N G� � O tf1 v ^'1 �� urchaser, and full re istered as to rinci al and interest. Princi a l wi l l be a a b le a t t he m a i n � � � � ^ L " - - ' - ' ' - - ' ' - '' p Y 9 p p ,. ,� �,� �,N .=�,�, Q „ corporate office of the registrar and interest on each Bond will be pa yable b y check or draft of z U e � � � v N °`° � �' � '' ;; the registrar mailed to the registered holder thereof at the holder's address as it appears on the � � � � y �� "' ( w �� books of the registrar as of the close of business on the 15th day of the immediately preceding c Z � � � o � � �1 month. � � g f P� � ^ ^ ° � � � � � �� . � ; (p U I � t I I I N f �1 I I 1 M1 tI The Bonds will mature February 1 in the years and amounts as follows: � " � � ��°' ° � � � ^ �� ;, � � c, � — �i 1998 $100,000 2001 $115,000 2004 $130,000 '� ' `� `� '� 1999 $105,000 2002 $120,000 2005 $140,000 N � � � � � � II 2000 $110,OOQ 2003 $125,000 y � � �-^ '_ � � �� (�j � � 1 I. N^ I � I I 1 1. ' I{ . i.��•r tf1 O C' �T' CD � r"� 11 � > �O �f'f tD Q'� N !� N II * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the � & � � ^ m �� principal amount of the Bonds offered for sa/e. Any such increase or reduction will be in a total amount noi to exceed$50,000 and will be made in multip/es of$5,000 in any of the maturities. ln the � � � �� event ihe principal amount of the Bonds is increased or reduced, any premium offered or any ^ � o Q � � � o � �1 -. v o+ o ri c r m m c� u discount taken will be increased or reduced by a percentage equal to the percentage by which the � � � ,� �; � �; � � ' O N N � ' ' ' " principal amount of the Bonds is increased or reduced. � " � `" � � N � m �� . . � � ��I � � � N 11 OPTIONAL REDEMPTION `� " ^ ( t0 CO.T ^ N O� tn a' p � r�(� . . The City may elect on February 1, 2002, and on any day thereafter, to prepay Bonds due on or " -� '" N� � `" o °' N � `° '; � •�� p r f N O ^ tf1 V' .- I � � � t0 II after February 1, 2003. Redemption may be in whole or in part and if in part at the option of the f � N Q r N � �^ N ;� City and in such order as the City shall determine and within a maturity by lot as selected by I ; �^ �' �; the registrar. All prepayments shall be at a price of par plus accrued interest. � � Y ; � N �� v � v � N v � � � SECURITY AND PURPOSE ° � � N = � = v v � = m U "� � crn` �n u > aa v -a > a� � s .• m-, .• � "�a . . W � � � � � � V �.Q�� " � 0 �j �� . . T h e B o n d s w i l l b e g e n e r a l o b l i g a t i o n s o f t h e C i t y f o r w h i c h t he Ci t y will pled ge its full faith and `�I �� , ; ... �, � � -� `-' N i�f ° `" E credit and power to levy direct general a d �a lorem taxes. In a d di tion t he Ci}�� w i l lt'1l e d e n e t � -� N �, a .� �C� .� w �.� � N � r � d N " � � `7 f� � S.� N�•� U 8' � uf � r�'O G ^ .�^ - " � .� � � i revenu e s o f t h e C i t y's m u n i c i p a l w a t e r u t i l i t y. T h e p r o c e e d s will be used to advance refund � v� � L �� v� � � v X g � � g > � � � � � � F a a aw .� � II!-5 -ix CITY OF tmSIIM00Nf. MII�SOTA COI�II�D BAIANCE SE�E!' ''��"`'ID"�''t'`� the 1998 through 2005 maturities of the City's $1,320,000 Generai Obiigation Revenue Water �� 3,, ,99, Bonds, Series 1989A, dated Apri1 1, 1989. P�a,rie�,, Fla„�,az,, TYPE OF PROPOSALS . Governmental fUnd Tvoes . F1uid 4YPes �F1u�d 2YPe Acco�urt Groups � � � . � � . �1e-�- �5 Pro osals shall be for not less than $935,550 and accrued interest on the total p F�X� ��r� c�r�,�,o�Y� P princi al s�'� o�� i� �� °9-'��, amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in General Revenue Service Pro7ects IIrterprise Aqency (Unaudited) pebt 1991 1990 � the form of a certified or cashier's check or a Financial Surety Bond in the amount of $9,450, � s 72�,463 s ,ez,955 s 6,,6z5 $ 29,084 s ,,,,�88 s ,,,89 s - s - s 509,,04 S 509,6�9 payable to the order of the City. If a check is used, it must accompany each proposal. If a Certifirates of Financial Surety Bond is used, it must be from an insurance company licensed to issue such a Ceposit 704,227 1,705,618 6,67'I,000 680,000 2,230,000 405,954 - - 72,402,799 10,911,266 " �� 3��e ,,s2a - - - Z,e,330 - - - 219,es4 �o,,oz bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Notes Receivable - 1,433,548 - - - - - 1,433,548 1,435,342 s�� 5�� ' Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond "�'"�le must identify each underwriter whose Deposif is guaranteed by such Finaneial Surety Bond. If Delinquern 13,786 - 790,764 - 7,243 - - - 217,193 70,487 ' Deferrea 45,059 4,318 1,579,260 - 37,201 - - - 7,665,838 1,683,s4s the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is Taxes Receivable Delinquent 63,538 - - - - - - - 63,538 57,0�, required to submit its Deposit to Springsted lncorporated in the form of a certified or cashier's D1e �`°°°Liez check or wire transfer as instructed b S„nn sted Incor orated not later than 3:30 P.M., F1u�ds 720.000 - - 149,792 - - - - 269.792 967,488 y �'" . � � °`� �°"°�` c�°er�- Central Time, on the next business day following the award. If such Deposit is not received by mental Chits 727,629 916 109,110 - 1,378 239,t73 239,907 �+ Prep3id �cpenses 713,765 909 - - 45,914 - - - 160,583 147,776 that time, the Financial Surety Bond may be drawn by the VI�/ t� satisfy the Deposit Fixed Assets - - - - 3,sz6,ozs - ,,,343,070 - 74,669,09� ,4,4a,,33s requirement. The City will deposit the check of the purchaser, the amount of which will be Ppnount Available in . � � - � � . � ��rvire _ deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser 6,847,735 6,sa�,�3s 6,8s,,��a fails to comply with the accepted proposal, said amount will be retained by the City. No F�no�u�t to be Pro- °'a�a �°` °�t proposal can be withdrawn or amended after the time set for reeeiving proposals unfess the Retirement - - - - - - - 5.892.587 5.892.587 5.884,837 �, meeting of the City scheduled for award of the Bonds is adjoumed, recessed, or continued to � s ,,3,�,,9, s 3,328,259 5 8,677,159 5 853,876 s 5,977,819 s 4o�,,4a s�,,�3,0�o s�z,�9o,szz s44,584,839 s43,3,0,<4, 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. ��r��. F�a��• AWARD Governmental Fl�na'Pices� FUna 7vaes rl�na Type � r,ccouc�t croups � � . . � . . � GEl1ErT- Tbtdls Fixed Genecal (Merorandun Only) s�� ,� � �.�� The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true General Revenue ��re pra,� Enterorise Aqency (Unaudited) Debt 1997 1990 ICItE'�eSt GOSt �TIC� baSIS. The City's computation of the interest rate of each proposal, in ��TT�� IT� accordance with customary practice, will be controlling. Due to other � �s - s - s _ s 269,792 s - s _ s _ s _ s 269,792 s ,,o,3,s» The City will reserve the right to: (i) waive non-substantive inforrnalities of any proposal or of Acc.rounts Pa le H2,7T5 16,4% 6,900 6,962 407,143 522,216 243,720 `�'�t��" matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals ��s�Y�e - - - - 24.669 - - 775,322 199.997 290.573 ��a ��5 4s,aso - - - s,667 - - - 51,017 6z,�4, without cause, and, (iii) rejeet any proposal whieh the City determines to have failed to comply Accrued Interest 39,575 3y,575 4U,654 �mr� - - - - ' - with the.terms herein. Payable - - - 70,428 - - - - 70.428 122,964 Deferred c. Revenue 732.946 1,492.995 7,769.424 - 44,443 - - - 3.439.758 3.281,759 REC.7��7T�R �or�ds PaYable - - - - 1,345,000 - - 72,565,000 13,910,000 13,875,000 �°�'�'�A" The City will name the registrar which shall be subject to applicable SEC regulations. The City BILITIF55 261,071 5 1,511,447 S 1,769,424 S 347,720 S 7,466,316 S 407,143 S - 572,74U,322 578,502,777 518,930,968 Wi�l pay for the services of the registrar. FIRID E�UITY � Investmefrt in c,��r� r�:ea CUS6P NUMQERS r�sets S - 5 - 5 - S - 5 - S - 517,3a3.0�0 S - 511,343.0�0 571,047,876 Contributed ��i� - - - - '.670.t97 - - - ,,6'0,,9' ,,3�3,328 If the Bonds nual',{�' for assi nment of CUSIP numbers such numbers will be rinted on the l�n�n4s ' - - - '1.841,306 - - - 2.841,306 2,773.240 ' `7 "7� g p • Reserved 713,765 7,816,878 6,847,735 506,756 - - - - 9,285,074 7,526,493 BOIICIS, but neither the failure to print such numbers on any �ond nor any error with respect �� thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the fo�w��kl� Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers Capital 442.475 - - - - - - - 942.415 853,955 shall be paid by the purchaser. �.� DQUIIY S 1,056,180 5 7,876,818 S 6,847,735 S 506,756 $ 4,511,503 5 - 511,343,070 S - S26,082,062 S24,379,473 S�LEMEN.�. TOTAL r.TnnILI7ZFS "`�� Within 40 days following the date of their award, the Bonds will be delivered without eost to the DQUITY S 7,317,791 s s,3za,zs9 s a,617,159 S 853,876 5 5,977,879 s ao�,,43 s„,393,0�o su,�4o,azz s4a,584,839 s43,3,0,44, purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be � I!I-4 -x- i - ao� . � oi� oa � o :��; � � M _ �oaop �V #N � �, m � N Op. h � O�I.N Ci �D m TI O N�� . W � �I�^ � P I N �V� � sub ject to recei pt b y the purchaser of an a p pcoving legal opinion af Briggs and Morgan, ' �,� �^ I~, ~ I ! �i Pro fes si o n a l A s s o c i a t i o n, o f S a i n t P a u l a n d M i n n e a p o l i s, M i n n e s o t a, w h i c h o p i n i o n w i l l b e rinted on the BondsY�nd�f customa,ry closing papers, including a no-1'rtigation certificate._ On__ o � � �� m o Q�� o � . � � � _�� p � _�a a�,,� � m=_-� �� _ -- -- the date of settlement payment for the Bonds shall be made in federal, or eqwvalent, �unds- w „q e e ��`�� m e q -- �� m � � e _ . m .N o o�m �i which shall be received at the offices.of the City or its designee not later than 12:00 Noon, W � � -I� � - = - » I Central Time. Except as compliance with the terms of payment for the Bonds shall have been i � �I made impossible by action of the Ciiy, or its agents, the purchaser shall be liable to the City for � � any loss suffered by the City by reason of the purchaser's non-compliance with said terms for ' „ o „ o, �,�, payment. �¢ � �I� �� "�' ; w � � mm i m�I w � w _ ��j OFFICIAL STATEMENT ¢� � °�� I � I � The City has authorized the preparation of an Official Statement containing pertinent � o �� information relative to the Bonds, and said Official Staternent will serve as a nearly-final Official � " "I � Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. `�W�o i � �� W LL a= For c o pi e s o f t h e O ff i c i a l S t a t e m e n t o r f o r a n y a d d i t i o n a l i n f o r m a t i o n p r i o r to sale, an y � ' I � I I pros pective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. , o� �o• o N a The Official Statement, when fu�ther supplsmented by an addendum or addenda specifying the �o � ' ' maturity dates, principal amounts and interest rates of the Bonds, together with any other �� < information required by law, shall constitute a "Final Official Statement" of the City with respect LL � to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any undervvriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no �a � „m m� a�� m� m =� more than seven business days after the date of such award, it shall provide without cost to the �� a `� �� m senior managing underwriter of the syndicate to which the Bonds are awarded 40 copies of the � �I W N IN �» ( Official Statement and the addendum or addenda described above. The City designates the senior managing undennrriter of the syndicate to which the Bonds are av�rarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. � � � � �� n ;=i ,' Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its i �W� � � �� p� w;l ro osal is acce ted b the Ci i it shall accept such designation and (ii) it shall enter into a �¢ ' � I"; �� P P P Y tY �) a I i Ii � i contractual relationship with all Participating Underwriters of the Bonds for purposes of �, � ; , �i assuring the receipf by each such Participating Underwriter of the Final Official Statement. � �� e �� ml Dated June 15, 1993 BY ORDER OF THE CITY COUNCIL 0 °"I W »� �I i� mV 0 n W � I O y¢j I � !I . . 4 N . � � I I I /s/Susan M. Walsh � ' ' ' '� 0 Clerk Z 'NI 'i oi o" LL ' � r I N m: � =1 j n I'� �I mi v�i I�� o;l � I < . I �� W 7 ^ N I�� MI . SI N ¢ I N� I I >I ° � I � I � � � i . N m .N N NI O� �II . � N i0 nl� . . � . � � � mm � o�qe1 W � _ _ -i� ' � � II � � . . . a ( t ,= . . I O � . . . � � ¢ ¢I � � ¢ � � . I � U W U � .. . . � .. . . . N r � . = p . � � a�� . . . . . � � W O O a o u O � � i i`U' �' 8 : __'_ N` Z r C < . . � . . . . � �4 < s o 5 . �� da � � : m. ; � . . . � �� W.0 . Qf C � o m �a ? • j • a c . � Q . . . . � , . . � � . � � � � y� �a vi W,� '� i.s m ° �C m a � c 3'c m 9 e o � . . � . �I p� 6 � . .N) f!) ��a :� 6 0 y < � >. m � e Y ; 0 2 . . . . . . LL� �.ZZm FI FO � C99 �� 6J Wo � 90 : f0{'L . . . . � � m(�i w m m 3 o n y� y p � e a O E a � o i c o � � � O �w � � j <_ � o o a o O � � o :LL ¢� p p . . � � � , � � UI U <C� I -+0 K U< <c)p m �- LL 5 U¢ r r � � III-3 -xi - . . . . � . . . . . . . I j � n m v�i m �n rP. � w o m, . . . � � . I n N Oi P �YI� �P �O� N) vi � . . . � . � � � � . � . � � . � I � N N N � m ml °n.l . .. . � . . . . . . . � � I I q � b . � . . . . Is,A _ _ "'� � o � SCHEDULE OF BOND YEARS � � � � � °, � ��, � � . o �, � � � o ' � $945,000 � „ ^ n � � � �� p � � �G CITY OF RC?SEMOUNT, MINNESOTA '� � � t� i p P � � � O n P t0 � . � `T � . . � . . . . . i � GENERAL OBLIGATION WATER REVENUE REFUNDING BONDS, SERIES 1993C ; , � � � �: "a�' � Cumulative W Year Principal Bond Years Bond Years �¢ ~ ~ 1Z I W n a c7 � � � . . . . .. . > O ° I �� 1998 $100,000 450.0000 450.00D0 � � �,� � � � � 1999 $105,000 577.5000 1 ,027.5000 U JQ � a m 6 W�� . � � � . . . . � . . � . . C7LL < _ ' . . � . � . . . , � 2000 $110,000 715.0000 1 ,742.5000 g � 0 2001 $115,000 862.5000 2,605.0000 . . . O� O � . � � � . . . . Q a Y . N T. . � . � . . . . . . . .. � . �o W ` 2002 $120,000 1 ,020.0000 3,625.0000 o� � . LL . . . � � . . � 2003 $125,000 c 1 ,187.5000 4,812.5000 sa < a A�s ` � m � �� 2004 $130,000 c 1 ,365.0000 6,177.5000 W C C� ' N $ . � ru� a «� e� � � . . . . . . . . . .. .. . . . . ¢ o ¢ ." . . . " . . . . . . . . . �� 2005 $140,000 c 1 ,610.0000 7,787.5000 � , � � mg ! j' Average Maturity: 8.24 Years ' � � ` � 6 V, � � � � y �I . `��e . . � e . � . . . . � . � � . . �� ! � Bonds Dated: August 1 , 1993 � ^o " 0 � i Wii Interest Due: August 1 , 1994 and each February 1 and August 1 to maturity. W O � � � m . ( pl � . . . � . � m > �� m � Principal Due: February 1 , 1998-2005 inclusive. . . . . � I W � � � . � � . i o wl I � N i � Optionai Call: Bonds maturing on or afiter February 1 , 2003 are callable � i o _ � � _ i commencing February 1 , 2002 and any date thereafter at par. ` wl g� o � „°� � �� (See` Terms of Proposal. ) . . � _. 4 � M r0 . �. o . . � � . . . � � � . . . W .V W � � . . '. . . . . . � . : � � . . �. � . . . . � . . . . . . . i a w . . �� . . � . . . . . . . w N¢) c: subject to optional call � � cipp � � rn I . . . . . . . � 0 ^ O�. N�.O �O. n . . � . , . . . . . .. � . . . � . . . . N �^ � C f0 �m l� n � � . � . . . . . . Q ^ O �0 N m ^ ^. p� . . � . . . . . . . . . . . . . � . QI . .N' � . . . . . . W .. � . . � . . � . . � . 2I � . . . . � � . . . . . . . . . . . . . � � � � . . . � . . . . � . . � . . . . . . . . . .. . . . . . . . � � . � � . � � . � . . � . . � . . � � � � . . � . . � . . . . . � . . . N . � � . � � . . . � . . � � . . . . . . . a - . . � . . � � . � . . � . � . . . �. . � . � .. . . . . . � . . . . . . . � . O � E � � . . . . � . . . . � � . � . . . � < � . � g � . . . . . . . . . . .� � . . . . . . oi z � � � � ° � � � � � � � � � � . � . .� � . . . . W O . N .� . ; a . � . . . . � . � . . . ' .. 2 W U . . C. . i • C w 9 . . . . . . . .. � . . . . . . . . . � = i� � .w. $ a E 4 � � . . . . =1W� � - � � : � m � ��y� ;, u, ; • � Y � a . . . � � ]y �� . s� • � � Oe +e Y •0 . . � . . . . . � Wi �C � . 0 � 0 e � m � � N a 6 � � � � � � � � % � � . � Z � ��4 � � ; L � ~ . . . . . . � . o �e 3 � � � 6 w D w� a. � � y a � �o 0 4 e w ��0 . . � . . . . . . . � �. �I 67.J� � � % 3 C � a C ` ] O O D O 2 C C � . . � � . . . . . . . � �I� O J W � q � Lp? u � � � C �C .0 S O S O O ` � .. . . . . . . . . . .. . . . . � � U U< O)� � . < < (J U.< 2 N��C O O 6 4 �O Q 4 � . � � � � . � � . � . . � . . . . . (��-c'� -XII - APPENDIX 111 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ANNUAL FINANCIAL STATEMENTS ON ITS BEHALF. PROPOSA�S WILL BE RECEIVED ON THE FOLLOWING BASIS: _ : -- _ - : = The City is audited anr�ually by an rr�epend��e�"r't�# �rbHc a�unting-#irm. =fl�a�#�e = TEFiMS OF PRQPOSAL following pages was extracted from the audited financial statements for fiscal years ending December 31, 1992, 1991 and 1990. For all years presented, the modified accrual basis of accounting is used for governmental fund types;#he accrual basis is used for proprietary funds. $845,000* The reader should be aware that the complete audits may contain additional information which CITY OF ROSEMOUNT, MINNESOTA may interpret, explain or modify the data presented here. GENERAL OBLIGATION MUNICIPAL BUILQING REFUNDING BONDS, SERIES 1993D � Proposals for the Bonds will be received by the City Administrator or his designee on Tuesday, July 20, 1993, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and � tabulated. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day. DETAILS OF THE BONDS The Bonds will be dated August 1, 1993, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1994. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will be issued in the denomination of$5,000 each, or in integral multiples thereof, as requested by the purchaser, and fully registered as to principal and interest. Principal will be payable at the main corporate office of the registrar and interest on each Bond will be payable by check or draft of the registrar mailed to the registered holder thereof at the holder's address as it 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 amounts as follows: 1996 $110,000 1999 $120,000 2001 $130,000 1997 $110,000 2000 $125,000 2002 $135,000 1998 $115,000 , * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the.Bonds offered for sale. Any such increase or reduction wifl be in a total amount not to exceed$50,000 and will be made in multiples of$5,000 in any of the maturities. In the ever�t ihe principal amouni of the Bonds is increased or reduced, any premium offered or any discount taken will be increased or reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. . OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturity dates. " SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. The proceeds will be used to advance refund the 1996 through 2002 maturities of the City's $1,300,000 General Obligation Municipal Building Bonds, Series 1986, dated Apri11, 1986. III-1 -Xlil - STATUTOHY FORMULAE CONVERSION OF ESTIMATED MARKET VALUE (EM1n TO GROSS OR NET TAX CAPACITY FOR MAJOR PRQPERTY CLASSIFICATIONS Gross Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax Capacity General Classffications Assessment Year 1988 Assessment Year 1989 Assessment Year 1990 Assessment Year 1991 Assessment Year 1992 Residentia)Homestead First$68,000 of EMV at 2.17% First$68,000 of EMV at t.00% First$68,000 of EMV at 1.00% First$72,000 of EMV at 1.00°� First$72,000 of EMV at 1.00�o NeM$32,000 of EMV at 2.50% Next$32,000 of EMV at 2.00°/a Next$42,000 of EMV at 2.00% Next$43,000 of EMV at 2.00°� EMV in excess of$72,000 EMV in excess of$100,000 EMY in excess of$100,000 EMV in excess of$110,000 EMV in excess of$115,000 at 2.00% at 3.30% at 3.00% at 3.00% at 2.5% Residential Non-Homestead 4 or more units 4.10% 3.60% 3.60°� 3.50% 3.40°� Agricultural Homestead First$65,000 of EMV at 1.75% First$68,000 EMV of house, First$68,000 EMV of house, First$72,000 EMV of house, First$72,000 EMV of house, EMV in excess of$65,000 garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at t.00% at 225% 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 0.45�0 Excess over 320 acres at 0.40% Excess over 320 acres at 0.45°� Excess over 320 acres at 0.45% Excess over 320 acres at D.45% NeM$32,000 EMV at 2.00% NeM$42,000 EMV at 2.00% Next$43,000 EMV at 2.00°/u Next$43,000 EMV at 2.00% 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 0.45%0 Excess over 320 acres at 0.40% Excess over 320 acres at 0.45% Excess over 320 acres at 0.45°� Excess over 320 acres at 0.45% EMV in excess of$100,000 EMV in excess of$110,000 EMV in excess of$115,000 EMV in�xcess of$115,000 at 3.00% at 3.00% at 2.5% at 2.00% Excess to 320 acres at 1.30°� Excess to 320 acres at 1.30% Excess to 320 acres at 1.30% Excess to 320 scres at 1.30% Excess over 320 acres at 1.70% Excess over 320 acres at 1.60% Excess over 320 acres at 1.60°� Excess over 320 acres at 1.60% Agricultural Non-Homestead EMV of house,garage and EMV of house,garage and EMV of house,garage and EMV of house,garage and EMV of house,garage and 1 acre at 2.70% 1 acre at 3.00°� 1 acte at 3.00% 1 acre at 2.80�0 1 acre at 2.50% EMV of land at 2.25% EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings at 1.70% at 1.60% at 1.60°/a at 1.60°10 ' Commercial-Industrial First$100,000 of EMV at 3.30% First$100,000 of EMV at 3.30% First$100,000 of EMV at 320% First$100,000 of EMV at 3.10% first$100,000 of EMV at 3.00% EMV in excess of$100,000 EMV in excess of$100,000 EMV in excess of$100,000 EMV in excess of$100,000 EMV in excess of$100,000 at 5.25% at 5.06% at 4.95% at 4.75% at 4.70% Seasonal/Recreational 2.30% 2.40% 2.30% Non-Commercial-2.20% Non-Commercial Residential First$72,000 of EMV at 2.00% EMV in excess of$72,000 at 2.50% Commercial-2.30% Commercial-2.30% Vacant Land 5.25°� 5.06% 4.95% 4J5% N/A (All vacant land is reclassified to highest and best use pursuant to local zoning ordinance) HOMESTEAD CREDIT Taxes ort Homasteaded Property Reduced by the lesser of: 54% N/A N/A N/A N/A or. $725 on the first$68,000 of EMV -v o �-a � � oo � oo � � -� � � 3 -� sv � -� � � 3s� 3� i Q- msn� c� �3tnv� �� 3su -v ? °� � ? � � � � � = � � � � m � mm � �' �, o � ovia� a� �Dm.nmc� o � � m3o � m m � � — a � Q. m � n ,-.. o m o � ac � :°.-a c c �. � �, pp � � a�� ..•. o-v Q. � o �, acnou, su �- c -. c� Qyop _ �.-a3� o .-« _: _ -� ,� _. � � oca N " cn � m oo �,� � ..�. cn�: � .-. o �,� � �� v, o �. m � cooQ:t° � n � � cn � O•-* N o � � � a' � �'` ,.+ A � � n � � u� � (� fl. � (�p � Q' Q, �D �y-► ,,,r, �� 3 � tv � � � "` C 3 � � (D tu cD n Q- ¢� (n O. 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Q. _. n� . � v, �. �, o �- ,� �, o �' a `Q ��• `° � � � ° � �' � o° � mQ.'. �<Q .��° � �ucrm � `° � �' �„� �ny, � 3 " � ° wai �,.v n �' a3 m � 03 �. �D o Q � � � .. � � o c �� o ° � oo � � c � � � � sv ,rt � o m � c� sQ � oo � �' w ° � �- m o up3 � �ooN m � °' � � °� � � � � �•u � ��` �voo � T� o�� °; �N � -,, C� O cn m m m c�cp sv, � � ,..�.� .+ -�, fl. � � � � � ? .+ � �; aom a °- c�'i � � � �� o o Q � N u�°i-� � m p ° o � .+ su � Qm.� � p � � _ � � �� = � � � � �"' �. �o � � o fl' < � � r'` � m m � a�i � v�i � � � � � � � �c� r.: _,;� � � � �i�'� � � o � � ..�o a- m •-'' �: �. � a. � �' c�i � Q. �o o s� .-« o v, .-* -�,� � � � �, cn ni � .* p v, � ° �' po � Q. �a ='� � � � -�. �. _ � � o � � � � (D�• � �. h = (D � _. � (D A)� � � a � � � 3 � � Q- "'' � _ � �� '�'' -`-�i•', Q O. � n � � � � N � —� 0 � � Q � � � � � 3 3 � W 0 C � C C (�A� '�"' � A� � � �`� N �,z � a .� o� �°, -vo � � � �; � C�� mi,w � ci,` ma� co � m m � o � � � o N o � o-°a �' v°, � '� �° �: c ai'�' � � <' � c�'n a�i o`� 3• a, ��o� = -� = o �, � oo su � Nmmv� � �•� � � � v, � ao � � ' � �. � Oa- � �. 3 � s� ? n -�a � o ` . c Z3� � � Z � a- u°� � � ro � � � °� -�. ca'i,�=-�' � m _ mm cnm .,. m �' � v, -,, � m om omo � m �,:� .: cnui =,, aoa� su � � � the date of settlement payment for the Sonds shall be made in federal, or equivalent, funds not affect debt service levies. For county governments, cities of 2,500 population or more, and which shall be received at the offices of the City or its designee not tater than 12:00 Noon, smaller cities and towns that receive taconite municipal aid, taxes could be levied outside the Central Time. E�e t-as ��mplia2�� with the terms of payment for the Bonds shall have been overall levy limitat'ron for, among others, bonded indebtedness and certificates of indebtedness, F ._ - __ made impossible by action of the City, or its agents,the purchaser sTiall be liable to the Cify fiar — unfunded accrued pension liabili#y, sc�� wv'rc� p�ag�`a� � the= ��stdtt�}-.��_ any loss suffered by the City by reason of the purchaser's non-compliance with said terms for maintenance program for which the county share of costs has not been taken over by the payment State. OFFICIAL STATEMENT Debt Limitations The City has authorized the preparation of an Official Statement containing pertinent All Minnesota municipalities (counties, cities, towns and school districts) are subject to informatian relative to the Bonds, and said Official Statement will serve as a nearly-final Official statutory "net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Net Statement within the meaning of Rule 15c2-12 of the Securities and Eacchange Commission. debt is defined as the amount remaining after deducting from gross debt the amount of current For copies of the Official Statement or for any additional information prior to sale, any y revenues which are applicable within the current fiscal year to the payment of any debt and the prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, aggregation of the principal of the following: 85 East Seventh Ptace, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. 1. Obligations issued for improvements which are payable wholly or partially from the proceeds of special assessments levied upon benefited property. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other 2. Warrants or orders having no definite or fixed maturity. information required by law, shall constitute a "Final Official Statement" of the City with respect 3. Obligations payable wholly from the income from revenue producing conveniences. to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any 4. Obli ations issued to create or maintain a permanent improvement revolving fund. underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no g more than seven business days after the date of such award, it shall provide without cost to the 5. Obligations issued for #he acquisition and betterment of public waterworks and public senior managing underwriter of the syndicate to which the Bonds are awarded 35 copies of the lighting, heating or power systems, and any combination thereof, or for any other public Official Statement and the addendum or addenda described above. The City designates the convenience from which revenue is or may be derived. senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. 6. Certain debt service loans and capital loans made to school districts. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its 7. Certain obligations to repay loans. proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a 8. Obli ations s ecificall excluded under the provisions of law authorizing their issuance. contractual relationship with all Participating Underwriters of the Bonds for purposes of g p y assuring the receipt by each such Participating Underwriter of the Final Official Statement. g. Debf service funds for the payment of principal and interest on obligations other than those described above. Dated June 15, 1993 BY ORDER OF THE CITY COUNCIL Levies far General Obligation Debt /s/ Susan M. Walsh (Sections 475.61 and 475.74, Minnesota Statutes) Clerk Any municipality which issues general obligation debt must, at the time of issuance, certify levies to the county auditor of the county(ies) within which the municipality is situated. Such levies shall be in an amount that if collected in full wili, together with estimates of other revenues pledged for payment of the obligations, produce at least five percent in excess of the amount needed to pay principal and interest when due. Notwithstanding any other limitations upon the ability of a taxing unit to levy taxes, its ability to levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is � without limitation as to rate or amount. Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) . "Fiscal Disparities Law° The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as "Fiscal Disparities," was first implemented #or taxes payable in 1975. Forty percent of the increase in commercial-industrial (including public utility and railroad) net tax capacity valuation since 1971 in each assessment district in the Minneapolis/St. Paul seven-county metropolitan area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and Washington Counties) is contributed to an area-wide tax base. A distribution index, based on the factors of population and real property market vaiue per capita, is employed in determining what praportion of the net tax capacity value in the area- wide tax base shall be distributed back to each assessment district. II-3 -xv - year preceding the collection year. A listing of property taxes due is prepared by the county SCHEDULE OF BOND YEARS auditor and tumed over to the county treasurer on or before the first business day in March. The county treasurer is responsible for collecting all property taxes within the county. Real $845,000 estate and personal property tax statements were to be mailed out no later than April 15 for CITY OF ROSEMOUNT, MINNESOTA properiy taxes payable in 1990 and are to be mailed out no later than March 31 thereafter. GENERAL OBLIGATION MUNICIPAL BUILDING REFUNDING BONDS, SERIES 1993D One-half (1/2) of the taxes on real properiy is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid by their due date are assessed a penalty which, depending on the type of property, increases from 2%o to 4% on the day after the due date. In the case of the first installment of real property taxes due May 15, the penalty cumulative increases to 4% or 8% on June 1. Thereafter, an additional 1% penalty shall accrue each � Year Principal Bond Years Bond Years month through October 1 of the collection year for unpaid real property taxes. In the case of 1996 $110 000 275.0000 275.o000 the second installment of real property taxes due October 15, the penalty increases to 6% or ' 8% on November 1 and increases again to 8% or 12% on December 1. Personal property ' 1997 $110 000 385.o000 660.0000 taxes remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8%a attaches ' to the unpaid tax. However, personal properry owned by a tax-exempt entity, but which is �ggg $115,000 517.5000 1 ,177.5000 treated as taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties as real property. 1 ggg $120,ODO 660.0000 1 ,837.5000 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 February 15 are 2000 $125,o00 812.5000 2,s5o.o000 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 2001 $130,o00 975.0000 3,625.0000 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 2002 �135,o00 1 ,147.5000 4,772.5000 interest determined annually by the Department of Revenue, and equaf to the adjusted prime rate charged by banks, but in no event is the rate less than 10% or more than 14%. Pro e owners sub'ect to a tax lien 'ud ment enerall have five ears 5 m the case of all Average Maturity: 5.65 Years p �Y J 1 9 9 Y Y ( ) � property located outside of cities or in the case of residential homestead, agricultural Bonds Dated: August 1 , 1993 homestead and seasonal residential recreational property located within cities or three (3) years with respect to other types of property to redeem the properry. After expiration of the Interest Due: August 1 , 1994 and each February 1 and August 1 to maturity. redemption period, unredeemed properties are declared tax forfeit with title held in trust by the State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof, Principal Due: February 1 , 1996-2002 inclusive. 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 optionai Cali: tvone. parcel, with any remaining balance in most cases being divided on the fo(lowing basis: county -40°�; town or city -20%;and school district -40%. Property Tax Credits (Chapter 273, Minnesota Statutes) In addition to adjusting the taxable value for various property types, primary elements of Minnesota's property tax relief system are: property tax levy reduction aids; the circuit breaker credit, which relates property taxes to income and provides relief on a sliding income scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application � by the taxpayer. Property tax levy reduction aid includes educational aids, local govemmental aid, equalization aid, homestead and agricultural credit aid (HACA) and disparity reduction aid. a The homestead credit, a direct subsidy by the State to the ta�cpayer which was available to residential and agricultural homestead properties in prior years, has been omitted and is now accounted for in the designation of lower class rates. Levy Limitations Historically, the ability of locaf governments in Minnesota to levy property taxes was controlled by various statutory limitations. These limitations have expired for taxes payable in 1993 and future years, but may be reinstated in the future. Under prior law the limitations generally did II-2 ' xvi - APPENDIX II SUMMARY OF TAX LEVIES, PAYMENT PROVI$IONS, AND MINNESOTA REAL PROPERTY VALUATION - - -- - - -- - - __ _. .- - -- --- _ Foliowing is a summary of certain statutory pr�vi��vns�ctive fhroc�gh 1992 r�ta�tve#��leuy- _: procedures, tax payment and credit procedures, and the mechanics of real property valuation. The summary does not purport to be inclusive of all such provisions or of the specific provisions discussed, and is qualified by reference to the complete text of applicable statutes, rules and regulations of the State of Minnesota in reference thereto. This summary reflects changes to Minnesota property tax laws enacted by the State Legislature during the 1992 � Regular Session. Property Valuations (Chapter 273, Minnesota Statutes) ; Assessor's Estimated Market Value Each parcel of real property subject to taxation must, by statute, be appraised at least once every four years as of January 2 of the year of appraisal. With certain exceptions, all property is valued at its market value which is the value the assessor determines to be the price he believes the property to be fairly worth, and which is referred to as the "Estimated Market Value." Indicated Market Value (This page was left blank intentionally.) Because the Estimated Market Value as determined by an assessor may not represent the price of real property in the marketplace, the "Indicated Market Value" is generally regarded as more representative of full value. The Indicated Market Value is determined by dividing the Estimated Market Value of a given year by the same year's sales ratio determined by the State Department of Revenue. The sales ratio represents the averall relationship between the Estimated Market Value of property within the taxing unit and actual selling price. Tax Capacitv For property taxes payable in 1989, the value of the property used to determine the property tax was "Gross Tax Capacity." Gross Tax Capacity, like Assessed Value, was calculated by applying a statutory formula to the Estimated Market Value, Generally, Gross Tax Capacity is approximately 12.5% of Assessed Value for most classifications of property. The Gross Tax Capacity multiplied by the Tax Capacity Rate, instead of the Mill Rate, determined the tax payable on a parcel of properry. Beginning with taxes payable in 1990, Net Tax Capacity has replaced Gross Tax Capacity as the basis on which taxes are levied. The Estimated Market Value multiplied by the appropriate class rate (gross or net) yields the tax capacity (gross or net). Net Tax Capacity differs from Gross Tax Capacity primarily by having �ower values for homesteaded residential and certain agricultural property. The formulas for converting Estimated Market Value to Assessed Value and Tax Capacity � represent a basic element of the State's property tax relief system and are therefore subject to annual revisions by the State Legislature. � For taxes payable in 1988 and for prior years, property taxes were levied based on "Assessed Value." Assessed Value of real property was calculated by applying the statutory formula applicable to the property's classification. Property Tax Payments and Delinquencies (Chapters 276, 279-282 and 549, Minnesota Statutes) Ad valorem property taxes levied by local governments in Minnesota are extended and collected by the various counties within the State. Each taxing`jurisdiction is required to certify the annual tax levy to the county auditor within five (5) working days after December 20 of the II-1 OFFICIAL STATEMENT (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. CITY OF ROSEMOUNT, MINNESOTA (2) The Bonds are valid and binding general obligations of � $555,000 the Issuer and all of the taxable property within the Issuer's GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1993A jurisdiction is subject to the levy of an ad valorem tax to pay the $1,415,000" same without limitation as to rate or amount; provided that the GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 19936 enforceability (but not the validity) of the Bonds and the pledge . $945,000" of taxes for the payment of the principal and interest thereon is GENERAL OBLIGATION WATER REVENUE REFUNDING BONDS, SERIES 1993C subject ta the exercise of judicial discretion in accordance with general principles of equity, to the constitutional powers of the , $845,000" United States of America and to bankruptcy, insolvency, GENERAL OBLIGATION MUNICIPAL BUILDWG REFUNDING BONDS, SERIES 1993D reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted. Introductory Statement (3) At the time of the issuance and delivery of the Bonds to the original purchaser, the interest on the Bonds is excluded from This Officiai Statement contains certain information relating to the City of Rosemount, gross income for United States income tax purposes and is excluded, Minnesota (the "City") and its issuance of the fallowing (collectively referred to as the "Bonds° to the same extent, from both gross income and taxable net income or the Issues"): $555,000 General Obligation Improvement Bonds, Series 1993A (the for State of Minnesota income tax purposes (other than Minnesota "Improvement Bonds"); $1,415,000 General Obligation Improvement Refunding Bonds, franchise taxes measured by income and imposed on corporations and Series 1993B (the "Improvement Refunding Bonds"); $945,000 General Obligation Water financial institutions) , and is not an item of tax preference for Revenue Refunding Bonds, Series 1993C (the "Water Revenue Refunding Bonds"); and purposes of the federal alternative minimum tax imposed on $845,000 General Obligation Municipal Building Refunding Bonds, Series 1993D (the individuals and corporations or the Minnesota alternative minimum "Municipal Building Refunding Bonds"). The Bonds are general obligations of the City for which tax applicable to individuals, estates or trusts; it should be the City pledges its full faith and credif and power to levy direct general ad valorem taxes noted, however, that for the purpose of computing the federal without limit as to rate or amount. The purpose and additional sources of security for each of alternative minimum tax imposed on corporations, such interest is these Issues is described in the following sections. 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 ThelmprovementBonds Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest Authority and Purpose thereon be, or continue to be, excluded from gross income for federal income tax purposes and from both gross income and taxable The Improvement Bonds are being issued pursuant to Minnesota Statutes, Chapters 475 and net income for State of Minnesota income tax purposes. Failure to 429. Proceeds from the improvement Bonds will be used to finance the costs of two public comply with certain of such requirements may cause the inclusion of improvement projects within the City. Components of the Issue are as follows: interest on the Bonds in gross income and taxable net income retroactive to the date of issuance of the Bonds. Total Project Costs $ 828,600 Less: Water Core Funds (16,600) We express no opinion regarding other state or federal tax Sewer Core Funds (4,100) consequences caused by the receipt or accrual of interest on the � Minnesota S#ate-Aid Funds (MSAj 267 920 Bonds or arising with respect to ownership of the Bonds. Net Project Costs $ 539,980 Dated at Saint Paul, Minnesota, this day of August, 1993. � Plus: Costs of Issuance 13,130 Allowance for Discount 6,105 Less: Investment Earnings 4 215) Professional Association Total Bond Issue $ 555,000 " Amount subject to adjustment;see Terms of ProposaL 241obs 1-8 - 1 - Security and Financinq Briggs and Morgan The Improvement8onds�n►ill be �eneral obiigations of the City for which the City pledges its fuU Professional Association faith and credit and power to levy direcf general ad valorem faxes wi�Fiout Iimit as �o rat��r L�� - amount. In addition the City pledges special assessments against benefited property for - payment on the Improvement Bonds. First National Bank Building Saint Pau1, Minnesota The City expects to file $473,Q00 of special assessments on or about October 1, 1994. The assessments on the various projects will be spread over a period of ten years and will be due and in equal annual installments of principal with interest charged on the unpaid bafance a# a rate of approximately 2�0 over the rate to be received on the Improvement Bonds. IDS Center Minneapolis, Minnesota The first interest payment due August i, 1994 and the February 1, 1995 principal and interest � payment will be made from MSA Funds expected to be collected in 1994. Thereafter, each August 1 semiannual interest payment will be made from first-half collections of assessments filed the prior year and the subsequent February 1 payment of principal and interest will be made from second-half collections, as well as surplus first-half collections. The City does not $845,000 anticipate that a tax levy will be required. GENERAL OBLIGATION MUNICIPAL BUILDING REFUNDING BONDS, SERIES 1993D The Improvemerrt Refunding Bonds CITY OF ROSEMOUNT DAKOTA COUNTY MINNESOTA Authority and Purpose The lmprovement Refunding Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. Proceeds from the Improvement Refunding Bonds will be used to We have acted as bond counsel in connection with the prepay the 1997 through 1999 maturities of the City's General Obligation Improvement Bonds, issuance by the City of Rosemount, Dakota County, Minnesota (the Series 1987, dated August 1, 1987A (the "1987 Bonds"); and the 1996 through 2001 maturities nlssuer" of the City's General Obligation Improvement Bonds, Series 1989B, dated July 1, 1989 (the ) , of its $845,000 General Obligation Municipal Building "19898 Bonds" . The 1987 Bonds and the 1989B Bonds are collectively referred to as the Refunding Bonds, Series 1993D, bearing a date of original issue of ) August 1, 1993 (the "Bonds") . We have examined the law and such "Refunded Bonds." certif ied proceedings and other documents as we deem necessary to The refunding will be accomplished by means of a"crossover" refunding mechanism. From the render this opinion. proceeds of the tmprovement Refunding Bonds, the City will establish an escrow account to be We have not been engaged or undertaken to review the held by a bank or trust company to be named by the City. Amounts in the escrow account will accuracy, completeness or sufficiency of the Official Statement or be invested in special obligations of the United States Treasury or other obligations of the other offering material relating to the Bonds, and we express no United States or of its agencies, which shall mature in such amounts and at such times as to opinion relating thereto. be available to pay (i) the interest on the Improvement Refunding Bonds through the respective call dates of the Refunded Bonds and (ii) the principal amount due as of the first call dates of As to questions of fact material to our opinion, we have all the callable maturities of the Refunded Bonds. The 1987 Bonds wifl be called for redemption relied upon the certif ied proceedings and other certif ications of on February 1, 1996 at a price of par plus accrued interest. The 1989B Bonds will be called for public officials furnished to us without undertaking to verify the redemption on February 1, 1995 at a price of par plus accrued interest. same by independent investigation. Until such time as the Refunded Bonds are called for early redemption, the City will continue to ' make payment of the principal of and interest on the Refunded Bonds. When each of the Based upon such examinations, and assuming the Refunded Bonds are called for redemption, the City will then "cross over" and make debt authenticity of all documents submitted to us as originals, the service payments on the Improvement Refunding Bonds. conformity to original documents of all documents submitted to us as certified or photostatic copies and the authenticity of the Actuarial services necessary to insure the adequacy of the escrow account to provide timely originals of such documents, and the accuracy of the statements of payment of the debt service for which the escrow account is obligated will be performed by a fact contained in such documents, and based upon present Minnesota certified pub(ic accounting firm. and federal laws (which excludes any pending legislation which may have a retroactive effect on or before the date hereof) , regulations, rulings and decisions, it is our opinion that: 241068 -2- �-� Secur'rhr and Financing (1) The proceedings show lawful authority for the issuance of the Bonds according to their terms under the Constitution and In addition to its general obiigation pledge, the City will also piedge special assessments laws of the State of Minnesota now in force. originaily filed for the 1987 Bonds and the 19896 Bonds for payment of the Improvement Refunding Bonds subsequent to the respective crossover dates. (2) The Bonds are valid and binding general obligations of the Issuer and all of the taxable property within the Issuer's Assessments collected each year will be used to cover the August 1 semiannual interest jurisdiction is subject to the levy of an ad valorem tax to pay payment due that same year as well as the subsequent February 1 payment of principal and the same without limitation as to rate or amount; provided that interest. 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 The Water Revenue Refunding Bonds accordance with general principles of equity, to the , constitutional powers of the United States of America and to Authority and Purpose bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter The Water Revenue Refunding Bonds are being issued pursuant to Minnesota Statutes, enacted. Chapters 444 and 475. Proceeds from the Water Revenue Refunding Bonds will be used to prepay the 1998 through 2005 maturities of the City's General Obligation Revenue Water (3) At the time of the issuance and delivery of the Bonds Bonds, Series 1989A, dated April 1, t989 (the "1989A Bonds"). to the original purchaser, the interest on the Bonds is excluded from gross income for United States income tax purposes and is The refunding of the 1989A Bonds will be accomplished by means of a "crossover" refunding excluded, to the same extent, from both gross income and taxable mechanism. From the proceeds of the Water Revenue Refunding Bonds, the City will establish net income for State of Minnesota income tax purposes (other than an escrow account to be held by a bank or trust company to be named by the City.Amounts in Minnesota franchise taxes measured by income and imposed on the escrow account will be invested in special obligations of the United States Treasury or corporations and financial institutions) , and is not an item of other obligations of the United States or of its agencies, which shali mature in such amounts tax preference for purposes of the federal alternative minimum and at such times as to be available to pay (i) the interest on the Water Revenue Refunding tax imposed on individuals and corporations or the Minnesota Bonds through the call date of the 1989A Bonds and (ii) the principal amount due as of the first alternative minimum tax applicable to individuals, estates or call date of all the callable maturities of the 1989A Bonds. The 1989A Bonds will be called for trusts; it should be noted, however, that for the purpose of redemption on February 1, 1997 at a price of par plus accrued interest. computing the federal alternative minimum tax imposed on corporations, such interest is taken into account in determining Until such time as the 1989A Bonds are called for early redemption, the City will continue to adjusted current earnings. The opinions set forth in the make payment of the principal af and interest on the 1989A Bonds. When the 1989A Bonds preceding sentence are subject to the condition that the Issuer have been called for redemption, the City will then °cross over" and begin making debt service comply with all requirements of the Internal Revenue Code of payments on the Water Revenue Refunding Bonds. 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in arder that interest thereon be, or Actuarial services necessary to insure the adequacy of the escrow account to provide timely continue to be, excluded fram gross income for federal income tax payment of the debt service for which the escrow account is obligated will be performed by a purposes and from both gross income and taxable net income for certified public accounting firm. State of Minnesota income tax purposes. Failure to comply with certain of such requirements may cause the inclusion af interest Security and Financing on the Bonds in gross income and taxable net income retroactive to the date of issuance of the Bonds. In addition to its general obligation pledge, the City will also pledge net revenues of its water utility which are currently being used to pay debt service on the 1989A Bonds. We express no opinion regarding other state or federal tax � consequences caused by the receipt or accrual of interest on the Following the call date (February 1, 1997), the net revenues generated each year by the City's Bonds or arising with respect to ownership of the Bonds. water utility will be used to pay the August 1 interest payment due in the same year and the subsequent February 1 principal and interest payment on the Water Revenue Refunding Dated at Saint Paul, Minnesota, this day of August, Bonds. 'The City does not anticipate the need to make a ta�c levy for this Issue. 1993. Under the provisions of Minnesota Statutes, Chapter 444, the resolution awarding the 1989A Bonds covenanted that the City maintain water utility rates which will provide revenues Professional Association sufficien##o support the operation of the City's water utility and to pay debt service. The City is required to annually review the budget of the City's water utility to determine if water utility rates and charges are sufficient to provide for required debt service and to adjust them as necessary. 241067 !-6 - -3 - Briggs and Morgan The Municipal Building Refunding Bonds Professional Association Lawyers Authori ansi P_ Q��-_ __ _ - - -- _ _. _ -- -- - First National Bank Building The Municipai Building Refunding Bonds are being issued pursuant to Minnesota Statutes, Saint -PauZ, Minnesota Chapter 475. Proceeds from the Municipal Building Refunding Bonds wiil be used to redeem for prepayment the 1996 through 20Q2 maturities of the City's General Obligation Municipal and Building Bonds, Series 1986, dated April 1, 1986 (the "1986 Bonds"). The refunding of the 1986 Bonds will be accomplished by means of a °crossover" refunding IDS Center mechanism. From the proceeds of the Municipal Building Refunding Bonds, the City will Minneapolis, Minnesota establish an escrow account to be held by a bank or trust company to be named by the City. Amounts in the escrow aceount will be invested in special obligations of the United States , Treasury or other obligations of the United States or of its agencies, which shall mature in such amounts and at such times as to be available to pay (i) the interest on the Municipal Building Refunding Bonds through the call date of the 1986 Bonds and (ii) the principal amount due as $945,000 of the first cal) date of all the callable maturities of the 1986 Bonds. The 1986 Bonds will be GENERAL OBLIGATION WATER REVENUE REFUNDING BONDS, called for redemption on February 1, 1995 at a price of par plus accrued interest. SERIES 1993C CITY OF ROSEMOUNT Until such time as the 1986 Bonds are called for early redemption, the City will continue to DAKOTA COUNTY make payment of the principal of and interest on the 1986 Bonds. When the 1986 Bonds have MINNESOTA been called for redemption, the City will then "cross over" and begin making debt service payments on the Municipal Building Refunding Bonds. Actuarial services necessary to insure the adequacy of the escrow account to provide timely We have acted as bond counsel in connection with the payment of the debt service for which the escrow account is obligated will be performed by a issuance by the City of Rosemount, Dakota County, Minnesota (the certified public accounting firm. "Issuer") , of its $945,000 General Obligation Water Revenue Refunding Bonds, Series 1993C, bearing a date of original issue Security and Financinq of August 1, 1993 (the "Bonds") . We have examined the law and such certified proceedings and other documents as we deem The Municipal Building Refunding Bonds are general obligations of the City for which the City necessary to render this opinion. pledges its full faith and credit and power to levy direct general ad valorem taxes. The City will continue to make the tax levies as originally scheduled for the 1986 Bonds through th�first call We have not been engaged or undertaken to review the date of February 1, 1995. The City will then certify the reduced annual levies to support the accuracy, completeness or sufficiency of the Official Statement debt service on the Municipal Building Refunding Bonds and cancel the remaining original or other offering material relating to the Bonds, and we e�ress (evies on the 1986 Bonds. no opinon relating thereto. As to questions of fact material to our opinion, we Future Financing have relied upon the certified proceedings and other certifications of public officials furnished to us without The City has no plans for any long-term borrowing in the next 90 days. undertaking to verify the same by independent investigation. Based upon such examinations, and assuming the Litigation ' authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us The City is not aware of any threatened or pending litigation affecting the validity of the Bonds as certif ied or photostatic eopies and the authenticity of the or the City's ability to meet its financial obligations. " originals of such documents, and the accuracy of the statements of fact contained in such documents, and based upon present Minnesota and federal laws (which excludes any pending Legality legislation which may have a retroactive effect on or before the date hereof) , regulations, rulings and decisions, it is our The Bonds are subject to approval as to certain matters by Briggs and Morgan, Professional opinion that• Association, of Sainf 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 241067 - 4 - I-5 and will express no opinion with respect thereto. Legal opinions in substantially the form set (1) The proceedings show lawful authority for the issuance out in Appendix I herein will be delivered at closing. of the Bonds according to their terms under the Constitution and laws of the State of Minnesota now in force. Tax Exemption (2) The Bonds are valid and binding general obligations of the Issuer and all of the taxable property within the Issuer's At closing Briggs and Morgan, Professional Association, Bond Counsel, will render an opinion jurisdiction is subject to the levy of an ad valorem tax to pay that, at the time of the issuance and delivery of the Bonds to the original purchaser thereof, the the same without limitation as to rate or amount; provided that interest on the Bonds is excluded from gross income for United States income tax purposes the enforceability (but not the validity) of the Bonds and the , and is excluded, to the same extent, from both gross income and taxable net income for State pledge of taxes for the payment of the principal and interest of Minnesota income tax purposes (other than Minnesota franchise taxes measured by income thereon is subject to the exercise of judicial discretion in and imposed on corporations and financial institutions), and is not an item of tax preference for accordance with general principles of equity, to the , purposes of the federal alternative minimum tax imposed on individuals and corporations or the constitutional powers of the United States of America and to Minnesota alternative minimum tax applicable to individuals, estates or trusts; provided, bankruptcy, insolvency, reorganization, moratorium and other however, that for the purpose of computing the federal altemative minimum tax imposed on similar laws affecting creditors' rights heretofore or hereafter corporations, such interest is taken into account in determining adjusted current earnings. No enacted. 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 (3) At the time of the issuance and delivery of the Bonds of the Bonds. Preservation of the exclusion af interest on the Bonds from federal gross income to the original purchaser, the interest on the Bonds is excluded and state gross and taxable net income, however, depends upon compliance by the City with from gross income for United States income tax purposes and is all requirements of the Internal Revenue Code of 1986, as amended, (the "Code") that must be excluded, to the same extent, from both gross income and taxable satisfied subsequent to the issuance of the Bonds in order that interest thereon be (or continue net income for State of Minnesota income tax purposes (other than to be) excluded from federal gross income and state gross and taxable net income. Minnesota franchise taxes measured by income and imposed on corporations and financial institutions) , and is not an item of The City will covenant to cornply with requirements necessary under the Code to establish and tax preference for purposes of the federal alternative minimum maintain the Bonds as tax-exempt under Section 103 thereof, including without limitation, tax imposed on individuals and corporations or the Minnesota requirements relating to temporary periods for investments and limitations on arnounts invested alternative minimum tax applicable to individuals, estates or at a yield greater than the yield on the Bonds. 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 Other Federal Ta�c Considerations adjusted current earnings. The opinions set forth in the preceding sentence are subject to the condition that the Issuer Proaerty and Casualiy lnsurance Companies compTy with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the Under the Tax Reform Act of 1986, property and casualty insurance companies are required for issuance of the Bonds in order that interest thereon be, or ta�cable years beginning after December 31, 1986, to reduee the amount of their loss reserve continue to be, excluded from gross income for federal income tax deduction by 15% of the amount of tax-exempt interest received or accrued during the taxable purposes and from both gross income and taxable net income for year on certain obligations acquired after August 7, 1986, including interest on the Bonds. State of Minnesota income tax purposes. Failure to comply with certain of such requirements may cause the inclusion of interest Foreiqn Insurance Companies on the Bonds in gross income and taxable net income retroactive to the date of issuance of the Bonds. The federal Omnibus Budget Reconciliation Act of 1987 was enacted in December, 1987, and subjects foreign companies carrying on an insurance business in the United States to a tax on We express no opinion regarding other state or federal tax � income which is effectively connected with their conduct of any trade or business in the United consequences caused by the receipt or accrual of interest on the States. Such income includes "net investment income° which is effectively connected, which Bonds or arising with respect to ownership of the Bonds. r shall not be less than the product of (A) the "required U.S. assets" of sueh company, and (B) the "domestic investment yield" applicabte to such company for such year. Net investment Dated at Saint Paul, Minnesota, this day of August, income includes, according to the conference report accompanying the law, "interest (including 1993. tax-exempt interest)." Braneh Profits Tax Professional Association The Tax Reform Act of 1986 includes an income tax section entitled "Branch Profits Tax" which irnposes on any foreign corporation a tax equal to 30% of the "dividend equivaient amount" for the taxable year. The "dividend equivalent amount" is the foreign corporation's "effectively connected earnings and profits," reduced for increase (or increased for deerease) in "U.S. net 241074 I-4 -5 - equity." According to the conference report accompanying the law, "the conferees intend that Briggs and Morgan a branch's earnings and profits include income that would be effectively connected with a �U.S. Professional Association trade or business-i#-such-income were_taxable, such as tax-exempt municipal bond interest. Lawyers Environmental Tax _ First National Bank Building Saint �Paul, Minnesota The federal Superfund Amendments and Reauthorization Act of 1986 was enacted into law in October, 1986. It imposes an environmental tax on corporations equal to 0.12% (or $1,200 per and $1,000,000) ofi the excess of the "modified alternative minimum taxable income" of such IDS Center corporation for the taxable year over $2,000,000. The tax applies to taxable years beginning � after December 31, 1986, and before January 1, 1996, subject to earlier termination fo� certain Minneapolis, Minnesota specified reasons. Interest on the Bonds is subject to the environmental tax to the extent included in adjusted net book income or adjusted current earnings of a corporation whose � modified alternative taxable income exceeds $2,OQ0,000 for the taxable years to which it applies. $1,415,000 Passive Investment Income of Subchapter S Corporations GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS, SERIES 1993B Regulations released in September, 1986, pursuant to the federal Subchapter S Revisions Act, CITY OF ROSEMOUNT which became effective for taxable years beginning in 1982, state that "passive investment DAKOTA COUNTY income also includes tax-exempt interest. Passive investment income, including interest on MINNESOTA the Bonds, may be subject to federal income taxation under Section 1375 of the Code for Subchapter S corporations that have Subchapter C earnings and profits at the close of the taxable year if more than 25% of the gross receipts of such Subchapter S corporations is passive investment income. We have acted as bond counsel in connection with the issuance by the City of Rosemount, Dakota County, Minnesota (the Financia) Institutions "Issuer") , of its $1,415,000 General Obligation Improvement Refunding Bonds, Series 1993B, bearing a date of original issue Prior to adoption of the Tax Reform Act of 1986 (the "Act"), financial institutions were generally of August 1, 1993 (the "Bonds") . We have examined the law and permitted to deduct 80% of their interest expense allocable to tax-exempt bonds. Under the such certif ied proceedings and other documents as we deem Act, however, financial institutions are generally not entitled to such a deduction for tax-exempt necessary to render this opinion. bonds purchased after August 7, 1986. However, the City will designate the Bonds as "qualified tax-exempt obligations" pursuant to Section 265(b)(3) of the Code which will permit We have not been engaged or undertaken to review the financial institutions to deduct interest expenses allocable to the Bonds to the extent permitted accuracy, completeness or sufficiency of the Official Statement under prior law. See "Bank-Qualified Tax-Exempt Obligations" below. or other offering material relating to the Bonds, and we express no opinon relating thereto. General As to questions of fact material to ou= opinion, we The above is not a comprehensive list of a�l federal tax consequences which may arise from the have relied upon the certified proceedings and other receipt or accrual of interest on the Bonds. The receipt or accrual of interest on the Bonds may certifications of public officials furnished to us without otherwise affect the federal income tax (or Minnesota income tax or franchise tax) liability of the undertaking to verify the same by independent investigation. recipient based on the particular taxes to which the recipient is subject and the particular tax status of other items of income or deductions. Bond Counsel expresses no opinion regarding Based upon such examinations, and assuming the any such consequences. All prospective purchasers of the Bonds are advised to consult their ' authenticity of all documents submitted to us as originals, the own tax advisors as to the tax consequences of, or tax considerations for, purchasing or conformity to original documents of all documents submitted to us holding the Bonds. as certif ied or photostatic copies and the authenticity of the 4 originals of such documents, and the accuracy of the statements of fact contained in such documents, and based upon present Bank-Qualified Tax-Exempt Obligations Minnesota and federal laws (which excludes any pending legislation which may have a retroactive effect on or before the The Gity will designate the Bands as "qualified tax-exempt obligations" for purposes of date hereof) , regulations, rulings and decisions, it is our Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the ability of opinion that: financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations. "Bank-qualified tax-exempt obligations" are treated as acquired by a financial institution before August 8, 1986. Interest allocable to such obligations remains subject to the 20% disallowance under prior law. 241074 - 6 - 1-3 Ratings (1) The proceedings show lawful authority for the issuance of the Bonds according to their terms under the Constitution and laws An application for ratings of the Bonds has been made to Moody's investors Service of the State of Minnesota now in force. ("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 (2) The Bonds are valid and binding general obligations of obtained only from Moody's. the Issuer and all of the taxable property within the Issuer's jurisdiction is subject to the levy of an ad valorem tax to pay the There is no assurance that ratings, if assigned, will continue for any given period of time, or that same without limitation as to rate or amount; provided that the such ratings will not be revised or withdrawn, if in the judgment of Moody's, circumstances so enforceability (but not the validity) of the Bonds and the pledge + warrant. A revision or withdrawal of the ratings may have an adverse effect on the market price of taxes for the payment of the principal and interest thereon is of the Bonds. 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, Financial Advisor reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted. The City has 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 (3) At the time of the issuance and delivery of the Bonds to preparing the Official Statement, the Financial Advisor has relied upon governmental officials, the original purchaser, the interest on the Bonds is excluded from and other sources, who have access to relevant data to provide accurate information for the gross income for United States income tax purposes and is excluded, Official Statement, and the Financial Advisor has not been engaged, nor fias it undertaken, to to the same extent, from both gross income and taxable net income independently verify the accuracy of such information. The Financial Advisor is not a public for State of Minnesota income tax purposes (other than Minnesota accounting firm and has not been engaged by the City to compile, review, examine or audit any franchise taxes m�asured by income and imposed on corporations and information in the Official Statement in accordance with accounting standards. The Financial financial institutions) , and is not an item of tax preference for Advisor is an independent advisory firm and is not engaged in the business of underwriting, purposes of the federal alternative minimum tax imposed on trading or distributing municipal securities or other public securities and therefore will not individuals and corporations or the Minnesota alternative minimum participate in the underwriting of the Bonds. 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 Certification taken into account in determining adjusted current earnings. The opinions set forth in the preceding sentence are subject to the The City has authorized the distribution of this Official Statement for use in connection with the condition that the Issuer comply with all requirements of the initial sale of the Bonds. Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest As of the date of the settlement of the Bonds, the Purchaser(s) will be furnished with a thereon be, or continue to be, excluded from gross income for certificate signed by the appropriate officers of the City. The certificate will state that as of the federal income tax purposes and from both gross income and taxable date of the Official Statement, it did not and does not as of the date of the certificate contain net income for State of Minnesota income tax purposes. Failure to any untrue statement of material fact or omit to state a material fact necessary in order to make comply with certain of such requirements may cause the inclusion af the statements made therein, in light of the circumstances under which they were made, not interest on the Bonds in gross income and taxable net income misleading. retroactive to the date of issuance of the Bonds. We express no opinion regarding other state or federal tax consequences caused by the receipt or accrual of interest on the � Bonds or arising with respect to ownership of the Bonds. Dated at Saint Paul, Minnesota, this day of August, 1993. R Professional Association 241070 I-2 -7 - APPENDIX I CITY PROPERTY VALUES PROPOSED FORM OF LEGAL OPINIONS Briggs and Morgan = _ - . _ 1992 indicated Market Value of Taxable Property: $418,654,706" Professional �sosi��o�= - _- - Lawyers * Calcu/ated by dividing the county assessor's estimated market value of $378,045,200 by the 199i sa/es ratio of 90.3%%r the City as determined by the State Department of Revenue. (The �992 sa/es First Natioaal Bank Bui lding ratio is noi yetavailable.) Saint Paul, Minnesota and 1992 T�able Net Tax Capacity: $7,753,399 + IDS Center 1992 NetTax Capacity $ 8,467,594 Minneapolis, Minnesota Less: Captured Tax Increment Tax Capacity {392,949) ' Contribution to Fiscal Disparities (1,357,408) Plus: Distribution from Fiscal Disparities 1,036,162 1992 Taxable Net Tax Capacity $ 7,753,399 $555, 000 GENERAL OBLIGATION IMPROVEMENT BONDS, 1992 Taxable Net Tax Capacity by Class of Property SERIES 1993A CITY OF ROSEMOUNT Commercialllndustrial, Public Utility and DAROTA COUNTY Personal Property* $3,774,054 48.7% MINNESOTA Residential Homestead 2,877,361 37.1 Non-Homestead Residential 851,263 11 A Agricultural 240,146 3.1 We have acted as bond counsel in connection with the Railroad 10,575 0.1 issuance by the City of Rosemount, Dakota County, Minnesota (the Total $7,753,399 100.0% "Issuer") , of its $555,000 General Obligation Improvement Bonds, Series 1993A, bearing a date of original issue of August 1, 1993 '` Reflects adjustments for fiscal disparities and captured tax increment tax capacity. (the "Bonds") . We have examined the law and such certif ied proceedings and other documents as we deem necessary to render this opinion. Trend of Values We have not been engaged or ur�dertaken to review the Indicated Estimated Taxable Tax accuracy, completeness or sufficiency of the Official Statement or Market Value(a1 Market Value Ca aci �b1 other offering material relating to the Bonds, and we express no opinon relating thereto. 1992 $418,654,706 $378,045,200 $7,753,399 1991 388,029,900 350,391,000 7,648,866 As to questions of fact material to our opinion, we have 1990 345,155,639 318,233,500 7,604,632 relied upon the certified proceedings and other certifications of 1989 295,120,543 271,510,900 6,865,898 public of f icials furnished to us without undertaking to verify the 1988 239,101,182 222,603,200 6,611,845 � same by independent investigation. (a) Calculated by dividing the county assessor's estimated market value by the sa/es ratio determined for Based upon such examinations, and assuming the the City each year by ihe State Department of Revenue. , authenticity of all documents submitted to us as originals, the �b) See Appendix ll for an exp/anation of t�capaciiy and other Minnesota properry tax law. conf ormity to original documents of al l doctunents submitted to us as certified or photostatic copies and the authenticity of the originals of such documents, and the accuracy of the statements of fact contained in such documents, and based upon present Minnesota and federal laws (which excludes any pending legislation which may have a retroactive effect on or before the date hereof) , regulations, rulings and decisions, it is our opinion that: - 8 - z��o�o I-1 Ten of the Largest Taxpayers in the City 1992 Net Taxpayer Type of Business Tax Capacitv Great Northem Oil Co. . (Koch Refining) Oil Refinery $2,486,112 Northern States Power Utility 324,239 CF Industries Inc. (Cenex) Fertilizer 156,136 Wintz Companies Trucking/VNarehouse 106,184 , Peoples Natural Gas Utility 81,850 Greif Brothers Corporation Multiwall Bag Mfg. 80,997 Confinental Nitrogen & � Resources Corp. Chemicals 77,058 Central Farmers Fertilizer 76,423 Shannon Park Townhouse Partners Townhouses 62,900 NHD Rosemount Woods Assn. Retail/Apartments 53,120 Total $3,504,999* '` Represents 45.2�%of the City's 1992 taxab/e net tax capacity. (This page was (eft blank intentionally.) CITY INDEBTEDNESS Legal Debt Limit Debt Limit (2% of Estimated Market Value) ` $ 7,560,904 Less: Outstanding Debt Subject to Limit �2,260,000) Legal Debt Margin at June 2, 1993 $ 5,300,904 General Obligation Debt Supported by Taxes Principal Date Original Final Outstanding of Issue Amount Pur�ose Maturi As of 6-2-93 4-1-86 $1,3�,000 Municipal Building 2-1-1995 $ 165,000(a)fb) 12-1-91 210,000 Equipment Certificates 12-1-1996 170,OOO�a) 11-1-92 1,080,000 Community Center 2-1-2013 1,080,000(a) 11-1-92 3,425,000 Municipal Building 2-1-2018 3,425,000(�) � 8-1-93 845,000 Municipal Building Re#unding (this Issue) 2-1-2002 845.000(a) � Total $5,685,000 (aI These issues are subjeci to the sfatutory debt limit �b1 Excludes the 1996-2002 maturities, totaling $870,000, which are being refunded with the Municipal Building Refunding Bonds. (�I The City anticipates debt service payments on this issue will be made primarily from a combination of user fees from the municipa/ mu/ti purpose arena and tax increment revenues. In addition, the proceeds of certain specia/ tax levies, levied by the City to support the new Naiiona/ Guard Armory, wiN also be used to support a portion of the debt service on this issue. -9- General Obiigation Debt Supported Primarily by Special Assessments 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 _ . Princ�al _ agency of the Metropolitan Council. The City is billed for its usage of MWCC facilities. . _ -- - _ _ _ . - Date Original Final Outstanding .. of Issue Amount Pur ose Maturi As of 6-2-93 _ 5-1-87 $4,995,000 Local lmprovements 2-1-1996 $1,500,OOOfa) Employee Pensions 10-1-88 2,750,OQ0 Local Improvements 2-1-1999 1,550,000 All full-time and certain part-time employees of the City of Rosemount are covered by defined 7-1=89 2,575,000 Local Improvements 2-1-1995 500,OOO�b1 benefit pension plans administered by thE Public Employees Retirement Association of 6-1-91 1,180,000 Local Improvements 2-1-2002 1,060,000 + Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the 12-1-91 265,000 Local Improvements 2-1-2003 265,000 Public Employees Police and Fire Fund (PEPFF) which are cost-sharing multiple-employer 9-1-92 895,000 Local improvements 2-1-2004 895,000 public employees retirement plans. PERF members belong to either the Coordinated Plan or 11-1-92 1,470,000 Local Improvements 2-1-2004 1,470,000 , the Basic Plan. Coordinated members are covered by Social Security and Basic members are 8-1-93 555,000 Local Improvements (this Issue) 2-1-2005 555,000 not. All new members must participate in the Coordinated Plan. All police officers, fire fighters 8-1-93 1,415,000 Improvement Refunding (this Issue) 2-1-2001 1,415.000 and peace officers who qualify for membership by statute are covered by the PEPFF. For the year ended December 31, 1992,the City's contribution to PERA was $113,605. Total $9,210,000 (aJ ExGudes the 1997-1999 maturities, totaling $1,500,000, which are being refunded with the lmprovement Refunding Bonds. (b� Exc/udes the 1996-2001 maturities, fotaling $1,470,OOq which are being refunded by the lmprovement Refunding Bonds. General Obligation Debt Supported Primarily by Tax Increments Principal Date Original Final Outstanding of Issue Amount Purpose Maturi As of 6-2-93 6-1-88 $1,100,000 Tax Increment 2-1-1999 $765,000 General Obligation Debt Supported by Revenues Principal Date Original Final Outstanding of Issue Amount Purpose Maturi As of 6-2-93 4-1-89 $1,320,OQ0 Water Revenue 2-1-1997 $ 310,000* 9-1-92 1,525,000 Storm Water Revenue 2-1-2008 1,525,000 &1-93 945,000 Water Revenue Refunding (this Issue) 2-1-2005 945,000 Total $2,780,000 � '' Excludes the 199&2006 maturities, totaling $910,000, which are being refunded with fhe Water Revenue Refunding Bonds. � - 10 - - 19 - GOVERNMENTAL ORGANIZATION AND SERVICES Annual Calendar Year Debt Service Including These Issues and Excluding the Refunded Bonds Organization G.O. Debt Supported Rosemount was established as a munici al cor oration in 1858, and became a statuto Ci in G.O. Debt Supp orted Primarily by 1974. The City has a Mayor-Council form of government, with the four Council memb s be ng by Ta�ces�a� Special Assessments��1 elected to overlapping four-year terms of office. The present City Council is listed below. Principal Principal Year Princi al & Interest Pri,ncipal & Interest Expiration of Term � 1993 (at 6-2) $ 40,000 $ 276,466.40 (Paid) $ 337,970.86 1994 205,000 538,213.50 $1,415,000 2,005,918.75 E.B. McMenomy Mayor December 31, 1993 1 gg5 275,000 587,847.25 1,480,�00 1,960,778.75 Sheila M. Klassen Council Member December 31, 1993 � 1996 310,000 600,893.50 1,395,000 1,727,516.25 Harry R. Wi{Icox Council Mernber December 31, 1993 1997 285,000 562,338.50 990,000 1,220,870.00 James Staats Council Member December 31, 1995 1 ggg 325,000 588,957.25 940,000 1,123,126.25 Dennis Wippermann Council Member December 31, 1995 1 ggg 340,000 588,658.50 900,000 1,036,172.50 The City's chief administrative officer is the City Administrator, who is appointed by and serves 2000 230,000 465,242.25 565,000 663,486.25 at the discretion of the City CounciL Mr. Stephan Jilk came to the City in 1986 to serve in the 2001 250,000 473,558.50 535,000 605,141.25 position of chief administrafive officer. Prior to that he had been City Clerk-Administrator in La 2002 265,000 475,336.00 400,000 444,645,00 Crescent for eight years. Mr. Jeff May, who has served in the City's Finance Department since 2003 145,000 344,021.00 285,000 310,216.25 2004 155,000 344,931.00 255,000 264,867.50 1985, was appointed as the City's Finance Director in March of 1991. 2005 170,000 349,907.25 50,000 51,275.00 Growth and development of the City is guided by a Comprehensive Land Use Plan which was 2006 180,000 348,953.50 commissioned soon after the consolidation in 1971 of the former Village and Town of 2007 190,000 347,251.00 Rosemount. The Plan outlines long-range zoning and development policy of the City, and is 2008 205,000 349,658.50 designed to encourage and promote orderly development and growth which will perpetuate a 2009 215,000 346,164.75 sound tax base. T'his Plan was last updated in 1980. The City completed its update of the Plan 2010 225,000 341,918.50 2011 245,000 346,623.50 for the 1990's through a process which involved the City Planning Commission, City Council, 2p12 260,000 345,303.00 City staff and the Metropolitan Council. The updated plan is awaiting approval by the 2013 280,000 347,772.50 Metropolitan Council which is expected by September, 1993. 2014 155,000 208,503.75 2015 165,000 208,023.75 2016 180,000 211,680.00 Services 2017 190,000 209,470.00 Police protection #or the City is provided by 12 full-time officers and eight police reserves. Fire 2�18 200,000 206,600.00 protection is provided by 39 trained volunteers. The City has a class 5 insurance rating. Total $5,685,OOOfb� $10,014,293.65 $9,210,OOO�d1 $11,751,984.61 Municipa) water, sanitary sewer and storm water services are provided to virtually all of the (a) lnc/udes rhe Municipal Building Refunding Bonds at an assumed annual rate of 4.45°�,and excludes developed areas of the City. The municipal water service is provided by four wells with two the refunded matur�ties of the 1986 eonds. water towers having a total storage capac'ity of 1,500,000 gallons. The maximum pumping (bI 47.1%of this debt will be retired wiihin 10 years. capacity is 2,225 gallons per minute with an average demand of 600,000 gallons pumped daily. ��1 /nc/udes the Improvement Bonds at an assumed annual rate of 4J5%, ihe lmprovemenf Refunding ft is the City's policy to finance all of its lateral sanitary sewer and water improvements by � Bonds at an assumed annual rate of 4.50%and exc/udes the refunded maturities af the i987 Bonds special assessments filed against benefited property; however, there is a provision for deferred and the 1989B Bonds. assessments, in which case it may be necessary to provide some tax support. Core facilities (d1 97.1°�of this debt will be retired within 10 years. are intended to be financed from water and sewer connection charges, but these too may ' require some tan 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. - 18- -11 - Annual Calendar Year Debt Service (continued) • $31 million Minnesota industrial containment faeility designed to contain non-hazardous industrial solid waste on a 236 acre site. The facility is owned and operated by United _ - �:Q, Q��#�u�ported .. - �Q. Qebt Supported . States Pollution Control, Inc., a Houston based subsidiary of the Union Pacific Primarilv bv Tax Increments bv Revenues�a� �ompany. - -- - Principal Principal Year Princi al & Interest Princi at & Interest There are a number of projects in various stages of planning and development. They include the following: 1993 (at 6-2) (Paid) $ 35,867.50 (Paid) $ 114,462.50 1994 $100,000 167,185.00 $ 100,000 261,635.00 • $1.35 million renovation ofthe multi-level Rosemount malL 1995 110,000 167,575.00 135,000 289,932.50 1996 120,000 166,935.00 155,000 301,882.50 ' • $1 million office/service center to be constructed in 1993. 1 gg7 130,000 165,245.00 170,000 297,056.25 �ggg 145,000 167,247.50 190,000 297,530.00 � • $135 million Dakota County waste to energy facility, designed to process 600 tons of 1999 160,OQ0 167,680.00 200,000 299,118.75 � municipal solid waste per day. The facility would be located on a portion of the 2000 205,000 294,987.50 University of Minnesota Rosemount Research Center property. The permit for this 2001 215,000 295,151.25 facility was recently approved by the Pollution Control Agency and Dakota County is 2002 230,000 299,380.00 currentty finalizing agreements with vendors and other parties. Construction is 2003 240,000 297,612.50 expected to begin in the spring of 1994. 2004 250,000 294,945.00 2005 265,000 296,277.50 • 10-screen movie theater at a cost of$2.1 million. 2006 135,000 155,385.00 2007 140,000 152,615.00 • 60-unit motel and 160-seat restaurant at a cost of$2J million. �8 150.000 154.312.50 Total $765,000 $1,037,735.00 $2,780,OOO�b1 $4,102,283.75 Financiallnstitutions (a) Includes the Water Revenue Refunding Bonds at an assumed annua/rate of 4.90%and excludes the The First State Bank of Rosemount and Rosemount National Bank are located in the City. As refunded maturities of the 1989A Bonds. of December 31, 1992, the two banks reported combined deposits of $62,109,000, compared (b1 66.2%of this debt will be retired within 10 years. to $58,125,000 in 1991. Summary of Direct Debt Including These Issues Education Gross Less: Debt Net The major portion of the City is part of Independent School District 196, headquartered in Debt Service Funds�al Direct Debt Rosemount. The District's fall enrollment for the 1992/93 school year is approximately 23,018 students in grades kindergarten through twelve. The District is one of the fastest growing G.O. Debt Supported by Taxes $5,685,000 $ (31,690) $5,653,310 school districts in the State. The enrollment increased an average of 6.3% per year from the G.O. Debt Supported by Special 1988/89 school year through the 1992/93 school year. The Rosemount-Apple Valley-Eagan Assessments 9,210,000 (4,652,373)�b1 4,557,627 School District is one of the largest employers in the City with approximately 2,500 full time and G.O. Debt Supported by Tax Increments 765,000 (597) 764,403 part-time employees. The physical plant of the District consists of 14 elementary schools, four G.O. Debt Supported by Revenues 2,780,000 (302,831)��} 2,477,169 middle schools, and three senior high schools. Of these schools, two elementary schools, one junior high, and one senior high are located in the City of Rosemount. (a) Debt service funds are as of May 31, 1993 and include money to pay both principal and interest. (b) Excludes $1,465,929 of debt service funds that will be contributed to the Improvement Refunding � In November, 1991, voters in the District authorized the issuance of $36,500,000 for the Bonds. acquisition and betterment of school facilities. In {ate December, 1991, the District issued $18,500,000 of general obligation school building bonds (Phase I) to build a new middle (�J Revenues are transferred dlrectly from the Cfty's warer utili�y to pay debt service when due. � school, elementary school, additional classroom space in the high school and in the Rosemount Middle SchooL Small portions of the City are located in Independent Sehool District 199 (Inver Grove-Pine Bend) and Independent School District 200 (Hastings). The Dakota County Technical College is also located in the City. The Technical College, located on a 96-acre site, opened in 1973. The Technical College has an enrollment of approxirnately 2,000 post-secondary students. In addition, the Technical College offers an extensive adult education program. - 12- - 17- Building Permits Issued by the City Indirect General Obiigation Debt Single Family Total Permits Home Permits Onlv Debt Applicable to 1992 Taxable G.O. Debt Tax Capacity in City Number . Value Number Value Taxina Unit�al Net Tax Capacitv As of 6-2-93�b1 Percent Amount 1993 (to 5-31) 239 $20,009,709 78 $ 8,303,889 Dakota County $ 227,043,015 $ 75,925,000��1 3.41% $ 2,589,042 1992 633 43,352,223* 234 23,046,277 ISD 196 (Rosemount- 1991 512 19,939,006 200 18,087,341 Apple Valley-Eagan) 76,559,529 117,862,503 8.12 9,570,435 1990 491 21,921,$72 184 16,682,775 1989 480 28,037,283 194 17,320,711 � ISD 199 (Inver Grove-Pine Bend) 15,539,047 6,310,000 13.81 871,411 1988 506 30,974,532 267 22,232,787 ISD 200 (Hastings) 15,749,461 4,995,000 0.68 33,966 1987 316 21,636,314 160 14,460,303 � Dakota County 1986 232 9,401,135 75 6,721,265 Technica) College 244,480,087 2,090,000 3.46 72,314 1985 228 7,132,024 35 2,951,480 Metropolitan Council 1,862,579,652 40,840,OOO�d1 0.42 171,528 1984 236 11,849,796 101 5,996,951 Regional Transit 1983 199 6,352,570 30 2,569,347 District 1,701,455,732 44,400,000 0.46 204,240 1982 188 7,239,563 56 2,927,999 1981 150 3,778,617 23 1,704,508 Total $13,512,936 * /nc/udes$17,OOq000 for Koch Refining. (a) Only those units with debt outstanding are shown here. (�1 Exc/udes debt supported by revenues and tax and aid anticipation debt Recerrt and Proposed Development �� Includes Jail Fac�lity Revenue Bonds, Series 1986 with an outstanding principa/ balance of $2,355,000; Jai/ Facility Revenue Bonds, Series 1987 with an outstanding principal balance of Over the past four years, an average of$26,725,000 in new construction value has been added $1,225,000; and Jail Facility Revenue Refunding Bonds with an outstanding principal balance of per year. During this same period the City has added over 230 housing units per year to its �6,430,000 issued by the Dakota Counry HRA and payab/e so/ely from/ease payments made by the housing stock. Approximately 90%of these units are single family homes. County to the HRA pursuant to a Lease Agreement The /ease payments are absolute and unconditional and are unGmifed tax obligations of the County. Some of the larger housing projects currently being developed are as folJows: �d1 Metropolitan Council a/so has outsranding$489,820,000 of genera/ obligat�on sanitary sewer bonds and/oans which are supported by system revenues. Units Units Built Development/Devefoper Housin ��roved as of 4-30-93 Debt Ratios Including These Issues Carrollton Second Addition/Entry One, Inc. Single Family 126 112 Country Hills/U.S. Home Corporation Single family 567 452 G.O. Net G.O. Indirect & O'Leary's Hills/Parkview, Inc. Single Family 213 111 Direct Debt* Net Direct Debt West Ridge/Rosemount Dev. Co.. Single Family 233 183 Shannon Hills/Ground Development Co. Single Family 190 99 To 1992 Indicated Market Value 2.62%0 5.85% Shannon Park/Limerick Way Rental Per Capita(14,126- 1992 City Estimate) $1,084 $2,418 Townhouses Muftiple Family 128 96 * Excludes general obligation debt supported by revenues. Shannon Pond PUD/Hampton Development Corp. Single Family 89 0 CMC RR Property/CMC Heartland Co. Single Family 234 0 2 Recent and proposed commercial and industrial development occurring in the City includes the � following: '� • 38,000 square foot chlorine processing facility owned by DPC lndustries. • 36,000 square foot auto recycling facitity. • 20,000 square foot commercial recycling materials recovery facility. • 12,000 square foof construction debris materials recovery facility. - 16- - 13 - CITY TAX RATES, LEVIES AND COLLECTIONS CENERAL INFORMATION C4NCERNING THE CITY _ _ _ _. ._ . Tax Capac'ity Rates The City of Rosemount, located in northern Dakota Coun�y, is a southerrr sabnr� ofi �he = 1992/93 IWlinneapolis/Saint Paul metropolitan area. The City encompasses an area of 22,000 acres . � For (35.25 square miles) and has a 1990 U.S. Census count of 8,622, a 69.6°k increase from the 1 gg8 89 1989 90 1990 91 1991 92 Total Debt Oniv C�y�� 1 gg0 Census count of 5,083. DakOta COu11 20.721% 21.061% 22.542% 25.536% 26.558% 1.897% � tY An important aspect of the City s tax base and economy is the 6,200-acre petrochemical City of Rosemount 26.879 22.001 27.705 29.224 29.810 6.265 industrial complex located in the northeastem portion of the City near the Mississippi River at ISD 196 (Rosemount) 52.249 40.793 47.058 54.602 58.486 12.790 �` Pine Bend. Major firms located there include Great Northern Oil Company ("Koch Re�ning"), Speciaf Districts* 4.755 4.844 4.978 6.139 5.405 0•928 ' North Star Chemical and Spectro Alloys. Mid-American Pipeline Company transports gas from Total 104.604% 88.699% 102.283% 115.501% 120.259% 21.880% �w southern states and operates a bottling station at Pine Bend. Minnesota Pipeline Company transports Canadian and North Dakota crude oil to the Koch refinery. * lncludes Mevopolitan Council, Regional Transii District, Metropolitan Mosquito Control, Dakota County Technical CoUege and the Dakota County Light Rait Transit. 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 is under construction to add a security building, NOTE: For properry taxes payable in i989, t�es were determined by multiplying the gross tax capacity additions to an office, laboratory and cafeteria. The project is being built in four phases with by the tax capacity rate, expressed as a percentage. This rep/aced the use of assessed value final com tetion ex ected in 1993. multiplied by mill rates. Beginning with taxes payab/e in 1990, net tax capacity has rep/aced p p gross tax capacity as the basis on which taxes are levied(see Appendix 1!). Koch Refining is investing $200,000,000 in a clean air project that will reduce air emissions, control odors and result in the production of cleaner fuels. These activities will result in the Tax Collections for the City creation of approximately 500 new construction jobs. Collected During Collected Amount Collection Year As of 5-31-93 The University of Minnesota's Rosemount Research Center is located on an 8,000 acre tract of Levy(Collect of Lew Amount Percent Amount Percent land situated partially in the City. This facility is utilized by the University for agricultural and other research projects and also by other research agencies and private enterprises. The U.S. 1992193 $2,913,401'` (In Process of Collectian) Navy operates a satellite tracking station on the Rosemount campus. 1991/92 2,748,113 $2,711,623 98.7°� $2,719,725 99.1% 1 g90/g1 2,498,285 2,453,637 98.2 2,489,677 99.7 Some of the larger employers in the City are listed below. 1989/90 2,095,644 2,063,786 98.5 2,092,044 99.8 Approximate 1 ggg/8g 1,745,243 1,692,876 97.0 1,744,552 99.9 Firm Product/Service Emplovment * The 1992/93 gross tax /evy includes aids of$911,038, including Homestead and Agricu/tura/ Credit Koch Refining Company Crude Oil 900 Aid ("HACA'), Equalization Aid and Dispariry Aid. The net levy of $2,002,363 after subtracting the Independent School District 196 Education ��5 HACA,Equalization Aid and DisparityAid is the basis for compufing the 1992/93 tax capacity rates. Dakota County AVTI Education (Vo-Tech) 475 Greif Brothers Corporation Multiwall Bags 150 � Spectro Alloys Corp. Aluminum Alloys 95 FUNDS ON HAND Knutson Services, Inc. Trash Disposal/Recycling 95 As of May 31, 1993 Genz & Ryan Plumbing & Heating Plumbing and Heating 85 Peoples Natural Gas Natural Gas 36 Continental Nitrogen Chemicals 35 Fund Cash and Investments Carlson Tractor lndustrial/Farm Equipment 30 � General $ 546,113 Source: City of Rosemount, "Comprehensive Guide P/an,"January, 1993. Specia) Revenue 1,030,974 � Port Authority 227,362 � Debt Service: Labor Force Data Tax Supported 31,690 March. 1993 _ March. i 992 Assessment Su p ported 6,118,302 Civilian Unemployment Civilian Unemployment Tax increment Supported 597 La bor Force R a t e L a b o r F o r c e R a t e G e n e r a l O b l i g a t i o n R e v e n u e S u p p o rt e d 302,831 Construction 5,583,047 Dakota County 1 7 0,2 7 7 4.3% 1 6 3,9 2 3 4.6% Water, Sewer an d S torm Wa ter 3,509,133 Minneapolis/St. Pau) MSA 1,450,214 4.7 1,398�881 5•2 Trust and Agency 2.029 Minnesota 2,468,177 5.8 2,378,598 6.2 Total $17,352,078 Source: Minnesota Department of Jobs and 7raining. 1993 data is preliminary. - 14- - 15-