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Home My WebLink About5.a. Accept Bids / Award Sale G.O. Improvement Bonds, Series 1992AEXECUTIVE SUMMARY ;FOR ACTION CITY COUNCIL MEETING DATE: August 4, 1992 AGENDA ITEM:, G.O. Improvement Bonds, Series AGENDA SECTION: 1992A - Accept Bids and Award Sale Old Business PREPARED BY: Jeff AGENDJ A May, Finance Director ATTACHMENTS:= VEDZZZ Official Statement, Draft Resolution At 12-:30 P.M., Tuesday, August 4, 1992, sealed bids for G.O. Improvement Bonds, Series 1992A will be opened and the results tabulated at the offices of Springsted Inc. Dan O'Neill, from Springsted, will be present at the August 4, 1992 Council meeting to give Springsted's recommendation for the issuance of these bonds and to answer any questions that you may have. You will receive a copy of the final resolution and 'other information regarding the bond ''sale at the meeting August 4, 1992. RECOMMENDED ACTIONS Motion to adopt a RESOLUTION ACCEPTING OFFER ON THE SALE OF $895,000` GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES ;1992A PROVIDING FOR THEIR ISSUANCE AND LEVYING A TAX FOR THE PAYMENT THEREOF. COUNCIL ACTION: OFFICIAL STATEMENT DATED JULY 21, 1992 Ratings: Requested from Moody's NEW ISSUES Investors Service In the. opinion of Briggs and Morgan, Professional Association, Bond Counsel, based on present federal and Minnesota laws, regulations, rulings and decisions, at the time of the issuance and delivery of the Bonds to the original purchaser thereof, the interest on the Bonds is excluded from gross income for United States income tax purposes and is excluded, to the same extent from both gross income and taxable net income for State of Minnesota income tax purposes (other than Minnesota franchise taxes measured by income and imposed on corporations and financial institutions), and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations or the Minnesota alternative minimum tax applicable to individuals, estates or trusts; provided, however, that for the purpose of computing the federal alternative minimum tax imposed on corporations, such interest is taken into account in determining adjusted current earnings. No opinion will be expressed by Bond Counsel regarding other state or federal tax consequences caused b the receipt or accrual of interest on the Bonds or arising with respect to N ownership of the Bonds. See 'TAX EXEMPTIO' and 'OTHER FEDERAL TAX CONSIDERATIONS' herein. City of Rosemount, Minnesota $895,000 General Obligation Improvement Bonds, Series 1992A (the "Improvement Bonds") $1,525,000 General Obligation Storm Water Revenue Bonds, Series 1992B (the "Storm Water Revenue Bonds") (collectively referred to as the "Bonds" or the "Issues") Dated Date: September 1, 1992 Interest Due: Each February 1 and August 1, commencing August 1, 1993 The Improvement Bonds will mature February 1 as follows: Common to Both Issues The City may elect on February 1, 2000, and on any day thereafter, to prepay the Bonds due on or after February 1, 2001 at a price of par and accrued interest. The Bonds will be general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes. In addition, for the Improvement Bonds the City pledges special assessments against benefited property and for the Storm Water Revenue Bonds the City pledges net revenues from the City's Storm Water Utility. A separate proposal, for not less than the amount shown below, must be submitted for each Issue, along with a good faith deposit in the form of a certified or cashier's check or a Financial Surety Bond, payable to the order of the City. Interest rates must be in integral multiples of 5/100 or 1/8 of 1%0. Rates must be in ascending order. Minimum Price Good Faith Deposit The Improvement Bonds $ 884,860 $ 8,950 The Storm Water Revenue Bonds $1,506,700 $15,250 The Bonds will be bank -qualified tax-exempt obligations pursuant to Section 265(b) (3) of the Internal Revenue Code of 1986, as amended, and will not be subject to the alternative minimum tax for individuals. The Bonds will be issued in integral multiples 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. PROPOSALS RECEIVED: August 4, 1992 (Tuesday) at 12:30 P.M., Central Time AWARD: August 4, 1992 (Tuesday) at 7:30 P.M., Central Time Further information may be obtained from SPRINGSTED SPRINGSTED Incorporated, Financial Advisor to the Issuer, a5 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101 PUBLIC FINANCE ADVISORS (612) 223.3000. 1994 $215,000 1998 $70,000 2002 $65,000 1995 $ 85,000 1999 $65,000 2003 $65,000 1996 $ 70,000 2000 $65,000 2004 $60,000 1997 $ 70,000 2001 $65,000 The Storm Water Revenue Bonds will mature February 1 as follows: 1994 $30,000 1998 $ 90,000 2002 $110,000 2006 $135,000 1995 $60,000 1999 $ 95,000 2003 $115,000 2007 $140,000 1996 $75,000 2000 $ 95,000 2004 $120,000 2008 $150,000 1997 $85,000 2001 $100,000 2005 $125,000 Common to Both Issues The City may elect on February 1, 2000, and on any day thereafter, to prepay the Bonds due on or after February 1, 2001 at a price of par and accrued interest. The Bonds will be general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes. In addition, for the Improvement Bonds the City pledges special assessments against benefited property and for the Storm Water Revenue Bonds the City pledges net revenues from the City's Storm Water Utility. A separate proposal, for not less than the amount shown below, must be submitted for each Issue, along with a good faith deposit in the form of a certified or cashier's check or a Financial Surety Bond, payable to the order of the City. Interest rates must be in integral multiples of 5/100 or 1/8 of 1%0. Rates must be in ascending order. Minimum Price Good Faith Deposit The Improvement Bonds $ 884,860 $ 8,950 The Storm Water Revenue Bonds $1,506,700 $15,250 The Bonds will be bank -qualified tax-exempt obligations pursuant to Section 265(b) (3) of the Internal Revenue Code of 1986, as amended, and will not be subject to the alternative minimum tax for individuals. The Bonds will be issued in integral multiples 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. PROPOSALS RECEIVED: August 4, 1992 (Tuesday) at 12:30 P.M., Central Time AWARD: August 4, 1992 (Tuesday) at 7:30 P.M., Central Time Further information may be obtained from SPRINGSTED SPRINGSTED Incorporated, Financial Advisor to the Issuer, a5 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101 PUBLIC FINANCE ADVISORS (612) 223.3000. For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission, this document, as the same may be supplemented or corrected by the Issuer from time to time (collectively, the "Official Statement"), may be treated as an Official Statement with respect to the Obligations described herein that is deemed final as of the date hereof (or of any such supplement or correction) by the Issuer, except for the omission of certain information referred to in the succeeding paragraph. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Obligations, together with any other information required by law, shall constitute a "Final Official Statement" of the Issuer with respect to the Obligations, as that term is defined in Rule 15c2-12. Any such addendum shall, on and after the date thereof, be fully incorporated herein and made a part hereof by reference. By awarding the Obligations to any underwriter or underwriting syndicate submitting a Proposal therefor, the Issuer agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Obligations are awarded copies of the Official Statement and the addendum or addenda described in the preceding paragraph in the amount specified in the Terms of Proposal. The Issuer _designates the senior managing underwriter of the syndicate to which the Obligations are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any 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 ,Page(s) $895,000 General Obligation Improvement Bonds, Series 1992A Terms of Proposal H.. Scheduleof Bond Years..................................................................................................... iv $1,525,000 General Obligation Storm Water Revenue Bonds, Series 1992B Terms of Proposalii ............................................................................................................... v -vii Schedule of Bond Yearsviii IntroductoryStatement................................................................................. ............................. 1 The Improvement Bonds ............................................. ....................... 1-2 ........................................ The Storm Water Revenue Bonds ...................... ................... 2 .................................................... Future Financing............................................................................. .................. 2-3 ......................... Litigation..... .................:............................................................................................... 3 Legality.................................................................................................. TaxExemption............................................................................ 3 Other Federal Tax Considerations .............................................. ............... ................. 3-5 Bank -Qualified Tax -Exempt Obligations.................................................................................. 5 Ratings........................................................................................................................................ 5 FinancialAdvisor................................................................................................................ 5 Certification.................................................................................................................. 5-6 CityProperty Values.................................................................................................................. 6-7 CityIndebtedness...................................................................................................................... 7-10 City Tax Rates, Levies and Collections................................................................................... 10-11 Fundson Hand...................................................................................................................... 11 General Information Concerning the City................................................................................ 12-15 Governmental Organization and Services ......................... ........ 15-16 ............................................... Proposed Form of Legal Opinions................................................................. Appendix Summary of Tax Levies, Payment Provisions, and Minnesota Real Property Valuation............................................................................ Appendix II Annual Financial Statements.......................................................................................... Appendix III ProposalForms............................................................................................................... Attached THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $895,000 CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1992A Proposals for the Bonds will be received by the City Administrator or his designee on Tuesday, August 4, 1992, until 12:30 P.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 September 1, 1992, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1993. 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: 1994 $215,000 1998 $70,000 2002 $65,000 1995 $ 85,000 1999 $65,000 2003 $65,000 1996 $ 70,000 2000 $65,000 2004 $60,000 1997 $ 70,000 2001 $65,000 OPTIONAL REDEMPTION The City may elect on February 1, 2000, and on any day thereafter, to prepay Bonds due on or after February 1, 2001. 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 benefited property. The proceeds will be used to finance improvement projects within the City. TYPE OF PROPOSALS Proposals shall be for not less than $884,860 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $8,950, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no -litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12;00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule_ 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting'a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 35 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated July 21, 1992 BY ORDER OF THE CITY COUNCIL /s/ Susan M. Walsh Clerk SCHEDULE OF BOND YEARS $895,000 CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1992A Average Maturity: 5.43 Years Bonds Dated: September 1, 1992 Interest Due: August 1, 1993 and each February 1 and August 1 to maturity. Principal Due: February 1, 1994-2004 inclusive. Optional Call: Bonds maturing on or after February 1, 2001 are callable commencing February 1, 2000 and any date thereafter at par. (See Terms of Proposal.) c: subject to optional call -iv- Cumulative Year Principal Bond Years Bond Years 1994 S215,000 304.5833 304.5833 1995 $85,000 205.4167 510.0000 1996 $70,000 239.1667 749.1667 1997 $70,000 309.1667 13058.3334 1998 $70,000 379.1667 11437.5001 1999 $65,000 417.0833 1,854.5834 2000 $65,000 482.0833 2,336.6667 2001 $65,000 c 547.0833 2,883.7500 2002 $65,000 c 612.0833 3,495.8333 2003 $653000 c 677.0833 4,172.9166 2004 $60,000 c 685.0000 4,857.9166 Average Maturity: 5.43 Years Bonds Dated: September 1, 1992 Interest Due: August 1, 1993 and each February 1 and August 1 to maturity. Principal Due: February 1, 1994-2004 inclusive. Optional Call: Bonds maturing on or after February 1, 2001 are callable commencing February 1, 2000 and any date thereafter at par. (See Terms of Proposal.) c: subject to optional call -iv- THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,525,000 CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 1992B Proposals for the Bonds will be received by the City Administrator or his designee on Tuesday, August 4, 1992, until 12:30 P.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 September 1, 1992, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1993. 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: 1994 $30,000 1998 $ 90,000 2002 $110,000 2006 $135,000 1995 $60,000 1999 $ 95,000 2003 $115,000 2007 $140,000 1996 $75,000 2000 $ 95,000 2004 $120,000 2008 $150,000 1997 $85,000 2001 $100,000 2005 $125,000 OPTIONAL REDEMPTION The City may elect on February 1, 2000, and on any day thereafter, to prepay Bonds due on or after February 1, 2001. 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 net revenues of the storm water utility. The proceeds will be used to finance the costs of storm water improvement projects within the City. -v- TYPE OF PROPOSALS Proposals shall be for not less than $1,506,700 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $15,250, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement. The City will deposit the check of the purchaser, the amount of which will be deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended after the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. BOND INSURANCE AT PURCHASER'S OPTION If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefor at the option of the underwriter, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option and expense of the purchaser of the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of insurance shall be paid by the purchaser, except that, if the City has requested and received a rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating agency fees shall be the responsibility of the purchaser. Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. REGISTRAR The City will name the registrar which shall be subject to applicable SEC regulations. The City will pay for the services of the registrar. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the -vi - Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their award, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of customary closing papers, including a no -litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. OFFICIAL STATEMENT The City has authorized the preparation of an Official Statement containing pertinent information relative to the Bonds, and said Official Statement will serve as a nearly -final Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. For copies of the Official Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principal amounts and interest rates of the Bonds, together with any other information required by law, shall constitute a "Final Official Statement" of the City with respect to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days after the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 60 copies of the Official Statement and the addendum or addenda described above. The City designates the senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. Dated July 21, 1992 - vii - BY ORDER OF THE CITY COUNCIL /s/ Susan M. Walsh Clerk SCHEDULE OF BOND YEARS $1,525,000 CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 19928 Average Maturity: 9.68 Years Bonds Dated: September 1, 1992 Interest Due: August 1, 1993 and each February 1 and August 1 to maturity. Principal Due: February 1, 1994-2008 inclusive. Optional Call: Bonds maturing on or after February 1, 2001 are callable commencing February 1, 2000 and any date thereafter at par. (See Terms of Proposal.) c: subject to optional call - viii - Cumulative Year Principal Bond Years Bond Years 1994 $30,000 42.5000 42.5000 1995 $60,000 145.0000 187.5000 1996 $75,000 256.2500 443.7500 1997 $85,000 375.4167 819.1667 1998 $90,000 487.5000 1,306.6667 1999 $951000 609.5833 1,916.2500 2000 $951000 704.5833 2,620.8333 2001 $100,000 c 841.6667 3,462.5000 2002 $110,000 c 1,035.8333 4,498.3333 2003 $115,000 c 1,197.9167 5,696.2500 2004 $120,000 c 1,370.0000 7,066.2500 2005 $125,000 c 1,552.0833 8,618.3333 2006 $1353000 c 1,811.2500 10,429.5833 2007 $140,000 c 2,018.3333 12,447.9166 2008 $150,000 c 2,312.5000 14,760.4166 Average Maturity: 9.68 Years Bonds Dated: September 1, 1992 Interest Due: August 1, 1993 and each February 1 and August 1 to maturity. Principal Due: February 1, 1994-2008 inclusive. Optional Call: Bonds maturing on or after February 1, 2001 are callable commencing February 1, 2000 and any date thereafter at par. (See Terms of Proposal.) c: subject to optional call - viii - (This page was left blank intentionally.) OFFICIAL STATEMENT CITY OF ROSEMOUNT, MINNESOTA $895,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1992A $1,525,000 GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 19928 Introductory Statement This Official Statement contains certain information regarding the City of Rosemount, Minnesota (the "City") and its issuance of $895,000 General Obligation Improvement Bonds, Series 1992A (the "Improvement Bonds"), and $1,525,000 General Obligation Storm Water Revenue Bonds, Series 1992B (the "Storm Water Revenue Bonds"), collectively referred to as the "Bonds" or the "Issues." The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes without limit as to rate or amount. The Improvement Bonds Authority and Purpose The proceeds of the Improvement Bonds will be used to finance three improvement projects within the City. The Improvement Bonds are being issued pursuant to Chapters 429 and 475, Minnesota Statutes. The composition of the Issue is as follows: Project Costs: 145th St. $421,000 West Ridge 4th 273,000 Shannon Hills 3rd 250,000 Subtotal $944,000 Less: Water Core Funds (49,000) Sanitary Sewer Core Funds (37,000) Other Funds (50,000) Plus: Issuance Costs 14,580 Allowance for Discount Bidding 10,140 Capitalized Interest (to 2-1-94) 63,550 Less: Investment Earnings 1,270) Total Bond Issue 895 000 Security and Financing In addition to its general obligation pledge, the City also pledges special assessments against benefited property. Special assessments totaling $640,378 are expected to be filed on or before October 1, 1993 for first collection in 1994. Assessments will be spread over a ten-year term of equal annual principal payments with interest charged on the unpaid balance at a rate of approximately 2% over the interest rate on the Improvement Bonds. The City expects to receive Minnesota State Aid funds totaling $222,000 for the 145th St. project in 1993. The . - 1 - funds will be allocated to payment of the 1994 debt service. A small net requirement in some years to be funded by a levy or other available funds may be necessary. The first two interest payments due August 1, 1993 and February 1, 1994 will be made from capitalized interest included in the Issue. Thereafter, the August interest payment in each year will be made from first-half collections of special assessments and the February payment of principal and interest in the following year will be made from second -half collections of taxes and special assessments, as well as surplus first-half collections. This collection and payment cycle will continue throughout the life of the Issue. The Storm Water Revenue Bonds Authority and Purpose The Storm Water Revenue Bonds are being issued pursuant to Minnesota Statutes, Chapters 444 and 475 for the purpose of financing various improvements to the City's Storm Water Utility. The composition of the Issue is as follows: Project Costs: 145th Street $ 34,000 Diamond Path 550,000 Valley Oak Pond 270,000 West Ridge 4th 13,000 Hawlins Pond 300,000 Birger-Pond 322,000 Plus: Issuance Costs 19,430 Allowance for Discount Bidding 18,300 Less: Estimated Investment Earnings (1.730) Total Bond Issue $1,525,000 Security and Financing In addition to its general obligation pledge, the City also pledges net revenues of its Storm Water Utility (the "Utility") established by the City in March, 1992, for payment of the Storm Water Revenue Bonds. In accordance with Section 444.075 of Minnesota Statutes, the City covenants to charge rates sufficient to generate net operating revenues of the Utility that will be sufficient to meet debt service requirements of the Storm Water Revenue Bonds. The user charges will be in place for collection during the third quarter of 1992. The average annual debt service on this Issue is expected to be approximately $157,500. It is the intention of the City to cover 100% of the debt service on the Storm Water Revenue Bonds from net operating revenues of the City's Storm Water Utility. In addition, the City expects to assess $12,000 of the Diamond Path project over 10 years at an interest rate of approximately 2% over the rate to be received on the Storm Water Revenue Bonds. Future Financing The City is authorized to issue a total of $1,065,000 of general obligation bonds for the construction of a new civic center in.conjunction with the construction of the Minnesota Army National Guard Division Headquarters. The issuance of the bonds may occur in September or October of this year. -2- In addition, the City's Port Authority is considering the issuance of approximately $1.8 - $2 million of general obligation revenue bonds for the construction of a civic arena. The City plans on issuing the bonds in September or October of this year if the decision is made to proceed with a civic arena. Litigation The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or the City's ability to meet its financial obligations. Legality The Bonds are subject to approval as to certain matters by Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, as Bond Counsel. Bond Counsel has not participated in the preparation of this Official Statement and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined nor attempted to examine or verify, any of the financial or statistical statements, or data contained in this Official Statement and will express no opinion with respect thereto. Legal opinions in substantially the form set out in Appendix I herein will be delivered at closing. Tax Exemption At closing Briggs and Morgan, Professional Association, Bond Counsel, will render an opinion that, at the time of the issuance and delivery of the Bonds to the original purchaser thereof, the interest on the Bonds is excluded from gross income for United States income tax purposes and is excluded, to the same extent, from both gross income and taxable net income for State of Minnesota income tax purposes (other than Minnesota franchise taxes measured by income and imposed on corporations and financial institutions), and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations or the Minnesota alternative minimum tax applicable to individuals, estates or trusts; provided, however, that for the purpose of computing the federal alternative minimum tax imposed on corporations, such interest is taken into account in determining adjusted current earnings. No opinion will be expressed by Bond Counsel regarding other federal or state tax consequences caused by the receipt or accrual of interest on the Bonds or arising with respect to ownership of the Bonds. Preservation of the exclusion of interest on the Bonds from federal gross income and state gross and taxable net income, however, depends upon compliance by the City with all requirements of the Internal Revenue Code of 1986, as amended, (the "Code") that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be (or continue to be) excluded from federal gross income and state gross and taxable net income. The City will covenant to comply with requirements necessary under the Code to establish and maintain the Bonds as tax-exempt under Section 103 thereof, including without limitation, requirements relating to temporary periods for investments and limitations on amounts invested at a yield greater than the yield on the Bonds. Other Federal Tax Considerations Property_and Casualty Insurance Companies Under the Tax Reform Act of 1986, property and casualty insurance companies are required for taxable years beginning after December 31, 1986, to reduce the amount of their loss reserve -3- deduction by 15% of the amount of tax-exempt interest received or accrued during the taxable year on certain obligations acquired after August 7, 1986, including interest on the Bonds. Foreign Insurance Companies 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 income which is effectively connected with their conduct of any trade or business in the United States. Such income includes "net investment income" which is effectively connected, which shall not be less than the product of (A) the "required U.S. assets" of such company, and (B) the "domestic investment yield" applicable to such company for such year. Net investment income includes, according to the conference report accompanying the law, "interest (including tax-exempt interest)." Branch Profits Tax The Tax Reform Act of 1986 includes an income tax section entitled "Branch Profits Tax" which imposes on any foreign corporation a tax equal to 30% of the "dividend equivalent amount" for the taxable year. The "dividend equivalent amount" is the foreign corporation's "effectively connected earnings and profits," reduced for increase (or increased for decrease) in "U.S. net equity." According to the conference report accompanying the law, "the conferees intend that a branch's earnings and profits include income that would be effectively connected with a U.S. trade or business if such income were taxable, such as tax-exempt municipal bond interest." Environmental Tax 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 $1,000,000) of the excess of the "modified alternative minimum taxable income" of such 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 for certain 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 $2,000,000 for the taxable years to which it applies. Passive Investment Income of Subchapter S Corporations Regulations released in September, 1986, pursuant to the federal Subchapter S Revisions Act, which became effective for taxable years beginning in 1982, state that "passive investment income" also includes tax-exempt interest. Passive investment income, including interest on 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. Financial Institutions Prior to adoption of the Tax Reform Act of 1986 (the "Act"), financial institutions were generally permitted to deduct 80% of their interest expense allocable to tax-exempt bonds. Under the Act, however, financial institutions are generally not entitled to such a deduction for tax-exempt 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 financial institutions to deduct interest expenses allocable to the Bonds to the extent permitted under prior law. See "Bank -Qualified Tax -Exempt Obligations" below. -4- General The above is not a comprehensive list of all federal tax consequences which may arise from the receipt or accrual of interest on the Bonds. The receipt or accrual of interest on the Bonds may otherwise affect the federal income tax (or Minnesota income tax or franchise tax) liability of the recipient based on the particular taxes to which the recipient is subject and the particular tax status of other items of income or deductions. Bond Counsel expresses no opinion regarding any such consequences. All prospective purchasers of the Bonds are advised to consult their own tax advisors as to the tax consequences of, or tax considerations for, purchasing or holding the Bonds. Bank -Qualified Tax -Exempt Obligations The City will designate the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax-exempt obligations. Qualified tax-exempt obligations" are treated as acquired by a financial institution before August 8, 1986. Interest allocable to such obligations remains subject to the 20% disallowance under prior law. Ratings An application for ratings for the Bonds has been made to Moody's Investors Service ("Moody's"), 99 Church Street, New York, New York and to Standard & Poor's Corporation ("S & P"), 25 Broadway, New York, New York. If ratings are assigned, they will reflect only the opinion of Moody's or S & P. Any explanation of the significance of the ratings may be obtained only from Moody's or S & P. There is no assurance that ratings, if assigned, will continue for any given period of time, or that such ratings will not be revised, suspended or withdrawn, if, in the judgment of Moody's or S & P, circumstances so warrant. A revision, suspension or withdrawal of a rating may have an adverse effect on the market price of the Bonds. Financial Advisor The City has retained Springsted Incorporated, Public Financial Advisors, of St. Paul, Minnesota, as financial advisor (the "Financial Advisor") in connection with the issuance of the Bonds. In preparing the Official Statement, the Financial Advisor has relied upon governmental officials, and other sources, who have access to relevant data to provide accurate information for the Official Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to independently verify the accuracy of such information. The financial Advisor is not public accounting firm and has not been engaged by the City to compile, review, examine or audit any information in the Official Statement in accordance with accounting standards. The Financial Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities and therefore will not participate in the underwriting of the Bonds. Certification The City has authorized the distribution of this Official Statement for use in connection with the initial sale of the Bonds. ' -5- As of the date of the settlement of the Bonds, the Purchaser will be furnished with a certificate signed by the appropriate officers of the City. The certificate will state that as of the date of the Official Statement, it did not and does not as of the date of the certificate contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. CITY PROPERTY VALUES 1991 Indicated Market Value of Taxable Property: ;380,033,622' Calculated by dividing the county assessor's estimated market value of $350,391,000 by the 1990 sales ratio of 92.2% for the City as determined by the State Department of Revenue. (1991 sales ratios are not yet available) 1991 Taxable Net Tax Capacity: $7,648,866 1991 Net Tax Capacity Less: Captured Tax Increment Tax Capacity Contribution to Fiscal Disparities Plus: Distribution from Fiscal Disparities 1991 Taxable Net Tax Capacity 1991 Taxable Net Tax Capacity by Class of Property Commercial/Industrial Public Utility and Personal Property* Residential Homestead Non -Homestead Residential Agricultural Railroad Other Total $ 8,213,362 (396,731) (1,289,997) 1.122.232 $ 7,648,866 $3,861,218 50.5% 2,577,901 33.7 757,387 9.9 324,141 4.3 9,695 0.1 118.524 1.5 $7,648,866 100.0% * Reflects adjustments for fiscal disparities and captured tax increment tax capacity. Trend of Values Indicated Estimated Taxable Taxable Tax Market Value(a) Market Value Assessed Value(c) Capacity(c) 1991 $380,033,622 $350,391,000 N/A $7,648,866 1990 345,155,639 318,233,500 N/A 7,604,632 1989 295,120,543 271,510,900 N/A 6,865,898 1988 239,101,182 222, 603,200 N/A 6,611,845 1987 235,772,203 204,414,500 $50,405,120 6,364,055 (a) Calculated by dividing the county assessor's estimated market value by the sales ratio determined for the City each year by the State Department of Revenue. (b) For property taxes payable in 1989, assessed value of property was replaced with gross tax capacity in determining property taxes. Gross tax capacity was approximately 12.5% of assessed value for most property classes and, like assessed value, was calculated by applying a statutory formula to the estimated market value of the property. Beginning with taxes payable in 1990, net tax capacity has replaced gross tax capacity as the basis on which taxes are levied. Net tax capacity differs from gross tax capacity primarily by having lower values for homestead residential and certain agricultural property (see Appendix ll). Ten of the Largest Taxpayers in the City Taxpayer Great Northern Oil Co. (Koch Refining) Northern States Power CF Industries Inc. (Cenex) Wintz Companies Greif Brothers Corporation Shannon Park Townhouse Partners DHB Corp. Central Farmers NHD Rosemount Woods Assn. U.S. Home Corporation Total Type of Business Oil Refinery Utility Fertilizer Trucking/Warehouse Multiwall Bag Mfg. Townhouses Fertilizer Fertilizer Retail/Apartments Condominiums Represents 45.6% of the City's 1991 taxable net tax capacity. CITY INDEBTEDNESS Legal Debt Limit Debt Limit (2% of Estimated Market Value) Less: Outstanding Debt Subject to Limit Legal Debt Margin at June 2, 1992 General Obligation Debt Supported by Taxes" 1991 Net Tax Capacity $2,495,302 314,750 158,712 107,363 81,926 83,776 77,508 77,305 53,802 44.607 $3,495,051- $7,007,820 3,495,051 $7,007,820 (1,260,000) $ 5,747,820 -7- Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 6-2-92 4-1-86 1,3001000 Municipal Building 2-1-2002 $1,050,000 12-1-91 210,000 Equipment Certificates 12-1-1996 210,000 Total $1,260,000 " These issues are subject to the statutory debt limit. General Obligation Debt Supported Primarily by Special Assessments Principal Date Original Final Outstanding of Issue Amount Purpose Maturity As of 6-2-92 6-1-85 $ 215,000 Local Improvements 2-1-1996 $ 100,000 8-1-87 4,995,000 Local Improvements 2-1-1999 3,475,000 10-1-88 2,750,000 Local Improvements 2-1-1999 1,850,000 7-1-89 2,575,000 Local Improvements 2-1-2001 2,220,000 6-1-91 1,180,000 Local Improvements 2-1-2002 1,180,000 12-1-91 265,000 Local Improvements 2-1-2003 265,000 9-1-92 895,000 Local Improvements (this Issue) 2-1-2004 895,000 Total $9,985,000 -7- General Obligation Debt Supported Primarily by Tax Increments Date Original of Issue Amount Purpose 6-1-88 $1,100,000 Tax Increment General Obligation Debt Supported by Revenues Date Original of Issue Amount 4-1-89 $1,320,000 9-1-92 1,525,000 Total Purpose Water Revenue Storm Water Revenue (this Issue) Annual Calendar Year Debt Service Including These Issues Principal Final Outstanding MaturLty As of 6-2-92 2-1-1999 $860,000 $2,810,000 Principal Final Outstanding Maturity As of 6-2-92 2-1-2005 $1,285,000 2-1-2008 1,525,000 $2,810,000 Total $1,260,000(b) $1,706,240.00 $9,985,000(x) $12,781,266.02 (a) Includes this Issue of Improvement Bonds at an assumed annual rate of 5.15%. (b) 89.2% of this debt will be retired within 10 years. (c) 96.4% of this debt will be retired within 10 years. IE G.O. Debt Supported G.O. Debt Supported Primarily by by Taxes Special Assessments(a) Principal Principal Year Principal & Interest Principal & Interest 1992 (at 6-2) $ 40,000 $ 83,200.00 (Paid) $ 286,128.33 1993 115,000 188,200.00 $1,170,000 1,745,648.94 1994 120,000 186,830.00 1,440,000 1,943,023.75 1995 130,000 189,995.00 1,310,000 1,730,951.25 1996 140,000 192,297.50 1,300,000 1,640,737.50 1997 100,000 143,945.00 1,245,000 1,506,315.00 1998 110,000 147,170.00 1,185,000 1,369,297.50 1999 115,000 144,800.00 1,105,000 1,215, 333.75 2000 125,000 146,880.00 460,000 520,013.75 2001 130,000 143,400.00 415,000 447,836.25 2002 135,000 139,522.50 205,000 218,933.75 2003 90,000 95,501.25 2004 60,000 61,545.00 Total $1,260,000(b) $1,706,240.00 $9,985,000(x) $12,781,266.02 (a) Includes this Issue of Improvement Bonds at an assumed annual rate of 5.15%. (b) 89.2% of this debt will be retired within 10 years. (c) 96.4% of this debt will be retired within 10 years. IE Annual Calendar Year Debt Service (continued) (a) Includes this Issue at an assumed rate of 5.65%. (b) 49.8% of this debt will be retired within 10 years. Summary of Direct Debt Including These Issues G.O. Debt Supported G.O. Debt Supported Net Primarily by Tax Increments by Revenues(a) G.O. Debt Supported by Taxes $1,260,000 Principal $1,253,412 Principal Year Principal & Interest Principal & Interest 1992 (at 6-2) (Paid) $ 40,142.50 (Paid) $ 45,966.25 1993 $ 95,000 171,010.00 $ 65,000 233,639.80 1994 100,000 167,185.00 100,000 270,247.50 1995 110,000 167,575.00 135,000 297,630.00 1996 120,000 166,935.00 155,000 308,391.25 1997 130,000 165,245.00 170,000 313,075.00 1998 145,000 167,247.50 180,000 311,940.00 1999 160,000 167,680.00 190,000 310,122.50 2000 195,000 302,758.75 2001 210,000 304,690.00 2002 225,000 305,628.75 2003 240,000 305,572.50 2004 255,000 304,508.75 2005 265,000 297,618.75 2006 135,000 155,198.75 2007 140,000 152,430.00 2008 150.000 154.237.50 Total $860,000 $1,213,020.00 $2,810,000(b) $4,373,656.05 (a) Includes this Issue at an assumed rate of 5.65%. (b) 49.8% of this debt will be retired within 10 years. Summary of Direct Debt Including These Issues Debt service funds are as of May 31, 1992 and include money to pay both principal and interest IE Gross Less: Debt Net Debt Service Funds* Direct Debt G.O. Debt Supported by Taxes $1,260,000 $ 6,588 $1,253,412 G.O. Debt Supported by Special Assessments 9,985,000 5,664,127 4,320,873 G.O. Debt Supported by Tax Increments 860,000 271 859,729 G.O. Debt Supported by Revenues 2,810,000 26,930 2,783,070 Debt service funds are as of May 31, 1992 and include money to pay both principal and interest IE Indirect General Obligation Debt Taxing Unit(a) Dakota County ISD 196 (Rosemount - Apple Valley -Eagan) ISD 199 (Inver Grove -Pine Bend) ISD 200 (Hastings) Dakota County Technical College Metropolitan Council Regional Transit District Total $9,567,680 (a) Only those units with debt outstanding are shown here. (b) Excludes debt supported by revenues and tax and aid anticipation debt. Metropolitan Council also has outstanding $478,085,000 of general obligation sanitary sewer bonds - and loans which are supported by system revenues. Debt Ratios Including This Issue G.O. Net G.O. Indirect & Direct Debt" Net Direct Debt To 1991 Indicated Market Value 1.69% 4.21% Per Capita (8,622 - 1990 U.S. Census) $746 $1,855 Includes general obligation debt supported by taxes, special assessments and tax increment income. CiTY TAX RATES, LEVIES AND COLLECTIONS Tax Capacity Rates 1991/92 1988/89 1989/90 1990/91 Total For Debt Only Dakota County 20.721% Debt Applicable to 1991 Taxable G.O. Debt Tax Capacity in City Net Tax Capacity As of 6-2-92(b) Percent Amount 4.570 $ 241,950,448 $ 66,415,000 2.69% $1,786,563 76,565,974 105,390,000 6.40 6,744,960 16,708,890 6,525,000 9.19 599,647 17,506,782 5,285,000 0.47 24,839 241,900,934 2,695,000 2.69 72,495 1,931,451,484 43,730,000(c) 0.34 148,682 1,770,007,609 51,485,000 0.37 190.494 Total $9,567,680 (a) Only those units with debt outstanding are shown here. (b) Excludes debt supported by revenues and tax and aid anticipation debt. Metropolitan Council also has outstanding $478,085,000 of general obligation sanitary sewer bonds - and loans which are supported by system revenues. Debt Ratios Including This Issue G.O. Net G.O. Indirect & Direct Debt" Net Direct Debt To 1991 Indicated Market Value 1.69% 4.21% Per Capita (8,622 - 1990 U.S. Census) $746 $1,855 Includes general obligation debt supported by taxes, special assessments and tax increment income. CiTY TAX RATES, LEVIES AND COLLECTIONS Tax Capacity Rates 1991/92 1988/89 1989/90 1990/91 Total For Debt Only Dakota County 20.721% 21.061% 22.542% 25.536% 1.836% City of Rosemount 26.879 22.001 27.705 29.224 4.570 ISD 196 (Rosemount) 52.249 40.793 47.058 54.602 14.206 Special Districts* 4.755 4.844 4.978 6.139 0.707 Total 104.604% 88.699% 102.283% 115.501% 21.319% " Includes Metropolitan Council, Regional Transit District, Metropolitan Mosquito Control and Dakota County Technical College. Also included the 1989190 tax and 1990191 tax capacity rates for special districts is the Dakota County Light Rail Transit NOTE. For property taxes payable in 1989, taxes were determined by multiplying the gross tax capacity by the tax capacity rate, expressed as a percentage. This replaced the use of assessed value multiplied by mill rates. Beginning with taxes payable in 1990, net tax capacity has replaced gross tax capacity as the basis on which taxes are levied (see Appendix ll). -10- Historic Trend of Mill Rates Per $1,000 of Assessed Value 1983/84 1984/85 1985/86 1986/87 1987/88 Dakota County 20.656 21.043 21.936 23.793 23.990 City of Rosemount 17.328 19.182 23.817 27.912 28.389 ISD 196 (Rosemount) 60.204 60.228 57.839 60.361 60.542 Special Districts* 3.854 3.299 3.737 3.874 3.694 Total 102.042 103.752 107.329 115.940 116.615 Includes Metropolitan Council, Regional Transit District and Metropolitan Mosquito Control. The Dakota County Technical College mill rate is included in the ISD 196 rate. NOTE: The foregoing mill rates were computed on the basis of total levies and do not reflect reductions for property tax credits. Tax Collections for the City Collected During Collected Amount Collection Year As of 6-30-92 Lew/Collect of Levy Amount Percent Amount Percent 1991/92 $2,748,113# (In Process of Collection 1990/91 2,498,285 $2,453,637 98.2% $2,478,611 99.2% 1989/90 .2,095,644 2,063,786 98.5 2,089,598 99.7 1988/89 1,745,243 1,692,876 97.0 1,741,636 99.8 1987/88 1,428,170 1,416,205 99.2 1,426,818 99.9 4 The 1991192 gross tax levy includes $448,063 of Homestead and Agricultural Credit Aid rHACA'), $82,692 of Equalization Aid and $310,034 Disparity Aid. The net levy of $1,907,324 after subtracting the HACA and Equalization Aid is the basis for computing the 1991/92 tax capacity rates. Pursuant to Section 275.11, Minnesota Statutes, the City's per capita limit for all taxes levied in 1992 is $319.14. Certain special purpose levies have been authorized outside of the per capita levy limitation and are deductible from the total levy for purposes of determining the City's per capita levy which is subject to the statutory limit. Beginning with taxes payable in 1993, there will no longer be a per capita levy limit for cities in the State of Minnesota. FUNDS ON HAND As of May 31, 1992 Fund General Special Revenue Economic Development Authority Debt Service: Tax Supported Assessment Supported Tax Increment Supported General Obligation Revenue Supported Construction Water and Sewer Trust and Agency Total -11- Cash and Investments $ 369,285 1,425,892 203,297 6,588 5,664,127 271 26,930 485,984 2,564,568 (184) $10,746,758 GENERAL INFORMATION CONCERNING THE CITY The City of Rosemount, located in northern Dakota County, is a southern suburb of the Minneapolis/Saint Paul metropolitan area. The City encompasses an area of 22,000 acres (35.25 square miles) and has a 1990 U.S. Census count of 8,622, a 69.6% increase from the City's 1980 Census count of 5,083. An important aspect of the City's tax base and economy is the 6,200 -acre petrochemical industrial complex located in the northeastern portion of the City near the Mississippi River at Pine Bend. Major firms located there include Great Northern Oil Company ("Koch Refining"), North Star Chemical and Spectro Alloys. Mid -American Pipeline Company transports gas from southern states and operates a bottling station at Pine Bend. Minnesota Pipeline Company transports Canadian and North Dakota crude oil to the Koch refinery. Koch Refining processes 180,000 to 200,000 barrels of crude oil each day and employs 850 persons in Rosemount. A $17,000,000 project is under construction to add a security building, additions to an office, laboratory and cafeteria. The project will be built in four phases with final completion expected in 1993. 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 creation of approximately 500 new construction jobs. The University of Minnesota's Rosemount Research Center is located on an 8,000 acre tract of land situated partially in the City. This facility is utilized by the University for agricultural and other research projects and also by other research agencies and private enterprises. The U.S. Navy operates a satellite tracking station on the Rosemount campus. Some of the larger employers in the City are listed below. Firm Product/Service Independent School District 196 Koch Refining Company Dakota County AVTI Greif Brothers Corporation Spectro Alloys Corp. Reese Enterprises Inc. Knutson Services, Inc. Genz & Ryan Plumbing & Heating Dexterity Dental Education Crude Oil Education (Vo -Tech) Multiwall Bags Aluminum Alloys Weatherstripping Trash Disposal/Recycling Plumbing and Heating Dental Products Approximate Employment 2,500 850 475 140 90 70 60 50 40 Source: 'Rosemount Community Profile,' Minnesota Department of Trade and Economic Development, April, 1992. Labor Force Data April, 1992 Civilian Unemployment Labor Force Rate Dakota County 141,478 4.2% Minneapolis/St. Paul MSA 1,338,927 4.3 Minnesota 2,405,600 5.0 April, 1991 _ Civilian Unemployment Labor Force Rate 143,831 4.5% 1,359,782 4.6 2,431,300 5.2 Source: Minnesota Department of Jobs and Training. 1992 data is preliminary. -12- Building Permits Issued by the City Recent and Proposed Development Over the past four years, an average of $26,725,000 in new construction value has been added per year. During this same period the City has added over 230 housing units per year to its housing stock. Approximately 90% of these units are single family homes. Some of the larger housing projects currently being developed are as follows: Units Units Built Development/Developer Housing Approved as of 7-1-92 Carrollton Second Addition/Rosemount Partners of Minnesota Country Hills/U.S. Home Corporation O'Leary's Hills/Parkview, Inc. Wensmann Additions/Wensmann Realty West Ridge/Rosemount Dev. Co.. Winds' Crossing/Winds' Crossing Co. Shannon Hills/Ground Development Co. Shannon Park/Limerick Way Rental Townhouses/William Jacobson Assoc. Cimarron Village Townhouses Rental Townhouses/Cimarron Village Townhouses Ltd. Partnership Single Family 126 87 Single Family Single Family 385 Total Permits Home Permits Only Single Family Number Value Number Value 1992 (to 5-30) 241 $13,741,352 102 $10,246,391 18,087,341 1991 512 491 19,939,006 21,921,872 200 184 16,682,775 1990 1989 480 28,037,283 194 17,320,711 1988 506 30,974,532 267 22,232,787 1987 316 21,636,314 160 14,460,303 1986 232 9,401,135 75 35 6,721,265 2,951,480 1985 228 236 7,132,024 11,849,796 101 5,996,951 1984 1983 199 6,352,570 30 2,569,347 1982 188 7,239,563 56 2,927,999 1981 150 3,778,617 23 1,704,508 Recent and Proposed Development Over the past four years, an average of $26,725,000 in new construction value has been added per year. During this same period the City has added over 230 housing units per year to its housing stock. Approximately 90% of these units are single family homes. Some of the larger housing projects currently being developed are as follows: Units Units Built Development/Developer Housing Approved as of 7-1-92 Carrollton Second Addition/Rosemount Partners of Minnesota Country Hills/U.S. Home Corporation O'Leary's Hills/Parkview, Inc. Wensmann Additions/Wensmann Realty West Ridge/Rosemount Dev. Co.. Winds' Crossing/Winds' Crossing Co. Shannon Hills/Ground Development Co. Shannon Park/Limerick Way Rental Townhouses/William Jacobson Assoc. Cimarron Village Townhouses Rental Townhouses/Cimarron Village Townhouses Ltd. Partnership Single Family 126 87 Single Family 567 385 Single Family 213 107 Single Family 206 200 Single Family 280 151 Single Family/ Multiple Family 273 271 Single Family 189 65 Multiple Family 128 96 Multiple Family 36 0 Recent and proposed commercial and industrial development occurring in the City includes the following: • 38,000 square foot chlorine processing facility owned by DPC Industries. • 36,000 square foot auto recycling facility. • 20,000 square foot commercial recycling materials recovery facility. • 12,000 square foot construction debris materials recovery facility. 13- There are a number of projects in various stages of planning and development. They include the following: • $1.35 million renovation of the multi-level Rosemount mall. • $1 million office/service center. • $31 million Minnesota industrial containment facility designed to contain non -hazardous industrial solid waste on a 236 acre site. The facility would be owned and operated by United States Pollution Control, Inc., a Houston based subsidiary of the Union Pacific Company. • $160 million Dakota County waste to energy facility, designed to process 800 tons of municipal solid waste per day. The facility would be located on a portion of the University of Minnesota Rosemount Research Center property. The permit for this facility was denied by the Pollution Control Agency and Dakota County is challenging the decision in the courts. • $20 million hi -tech compost facility to process 400 ton per day of food waste. The facility would be located on the Rosemount Research Center property. • $3.5 million retail mall to be constructed on County Road 42. Construction is scheduled to start in 1992. The City has a commitment from the Minnesota Army National Guard to construct an armory housing their Division Headquarters in the community. The 96,000 square foot, $7 million armory facility, will support 40 full-time employees and will provide training exercises for 400 reservists. The armory will be situated on 13 acres located adjacent to the Rosemount High School and a major community park. The City has approval from the voters to build a community center, consisting of an auditorium and banquet facility, to be attached to the armory. Construction will start in 1992 with completion expected in 1994. Financial Institutions The First State Bank of Rosemount and Rosemount National Bank are located in the City. As of December 31, 1991 (most recent available figures), the two banks reported combined deposits of $58,125,000. Education The major portion of the City is part of Independent School District 196, headquartered in Rosemount. The District's fall enrollment for the 1991/92 school year was approximately 21,670 students in grades kindergarten through twelve. The District is projecting the 1992/93 enrollment to be 23,033. The District is one of the fastest growing school districts in the State. The enrollment increased an average of 6.4% per year from the 1985/86 school year through the 1990/91 school year. The Rosemount -Apple Valley -Eagan School District is one of the largest employers in the City with approximately 2,500 full-time and part-time employees. The physical plant of the District consists of 14 elementary schools, four 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. -14- MEETING SCHEDULE AUGUST - SEPTEMBER 1992 Tuesday, August 4 5:30 p.m. Port Authority 7:30 p.m. City Council Wednesday, August 5 1:15 p.m. Staff Meeting 6:30 p.m. Special Council - Comp. Guide Plan Friday, August 7 THIRD DRAFT BUDGET DUE to Finance Director Monday, August 10 6:30 p.m. Special Council Meeting with Administrator 6:30 p.m. Utilities Commission Tuesday, August 11 1:15 p.m. Budget/Staff Meeting 5:00 p.m. Planning Commission 7:30 p.m. Special Council - Budget Wednesday, August 12 1:15 P.M. Staff Meeting 7:00 p.m. MVTA Board Meeting - Burnsville City Hall (July & Aug. meetings combined) Monday, August 17 6:30 p.m. Parks & Rec Committee 6:30 p.m. Utilities Commission - Upper Level Conference Room Tuesday, August 18 5::30 p.m. Port Authority 7:30 p.m. City Council Wednesday, August 19 1:15 p.m. Staff Meeting 7:00 p.m. Growth Management Forum - Rosemount City Hall Tuesday, August 25 5:00 p.m. Planning Commission Wednesday, August 26 1:15 p.m. Staff Meeting Tuesday, September 1 5:30 P.M. Port Authority 7:30 p.m. City Council Wednesday, Sept. 2 6:30 p.m. Special Council - Comp. Guide Plan Tuesday, Sept. 8 5:00 p.m. Planning Commission Wednesday, Sept. 9 10:00 a.m. National Guard Ground Breaking 6:30 p.m. Special Council - Budget Monday, Sept. 14 6:30 p.m. Utility Commission Tuesday, Sept. 15 7ant-8p.m. Primary Election In November, 1991, voters in the District authorized the issuance of $36,500,000 for the acquisition and betterment of school facilities. In late December, 1991, the District issued $18,500,000 of general obligation school building bonds (Phase 1) to build a new middle 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 School District 199 (Inver Grove -Pine Bend) and Independent School District 200 (Hastings). The Dakota County Technical College is also located in the City. The Technical College, located on a 96 -acre site, opened in 1973. The Technical College has an enrollment of approximately 2,000 post -secondary students. In addition, the Technical College offers an extensive adult education program. GOVERNMENTAL ORGANIZATION AND SERVICES Organization Rosemount was established as a municipal corporation in 1858, and became a statutory City in 1974. The City has a Mayor -Council form of government, with the four Council members being elected to overlapping four-year terms of office. The present City Council is listed below. Expiration of Term E.B. McMenomy Mayor December 31, 1993 Sheila M. Klassen Council Member December 31, 1993 Harry R. Willcox Council Member December 31, 1993 James Staats Council Member December 31, 1995 Dennis Wippermann Council Member December 31, 1995 The City's chief administrative officer is the City Administrator, who is appointed by and serves at the discretion of the City Council. Mr. Stephan Jilk came to the City in 1986 to serve in the position of chief administrative officer. Prior to that he had been City Clerk -Administrator in La Crescent for eight years. Mr. Jeff May, who has served in the City's Finance Department since 1985, was appointed as the City's Finance Director in March of 1991. Growth and development of the City is guided by a Comprehensive Land Use Plan which was commissioned soon after the consolidation in 1971 of the former Village and Town of Rosemount. The Plan outlines long-range zoning and development policy of the City, and is designed to encourage and promote orderly development and growth which will perpetuate a sound tax base. This Plan was updated in 1980 and is now being updated through a process which involves the City Planning Commission, City Council and City staff. Services Police protection for the City is provided by 11 full-time officers and eight police reserves. Fire protection is provided by 33 trained volunteers. The City has a class 6 insurance rating. Municipal water, sanitary sewer and storm water services are provided to virtually all of the developed areas of the City. The municipal water service is provided by four wells with two water towers having a total storage capacity of 1,500,000 gallons. The maximum pumping • . capacity is 2,225 gallons per minute with an average demand of 600,000 gallons pumped daily. -15- It is the City's policy to finance all of its lateral sanitary sewer and water improvements by special assessments filed against benefited property; however, there is a provision for deferred assessments, in which case it may be necessary to provide some tax support. Core facilities are intended to be financed from water and sewer connection charges, but these too may require some tax support in the event sufficient connections do not occur in a timely manner. To date, tax support has not been necessary. Although the City constructs and maintains its own sewer laterals, core facilities are owned by the Metropolitan Waste Control Commission ("MWCC"), an agency of the Metropolitan Council. Wastewater treatment and disposal is also the responsibility of MWCC. The City is billed for its usage of MWCC facilities. Employee Pensions All full-time and certain part-time employees of the City of Rosemount are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund (PERF) and the Public Employees Police and Fire Fund (PEPFF) which are cost-sharing multiple -employer public employees retirement plans. PERF members belong to either the Coordinated Plan or the Basic Plan. Coordinated members are covered by Social Security and Basic members are not. Afl new members must participate in the Coordinated Plan. All police officers, fire fighters and peace officers who qualify for membership by statute are covered by the PEPFF. For the year ended December 31, 1991, the City's contribution to PERA was $102,064. -16- APPENDIX I PROPOSED FORM OF LEGAL OPINIONS Briggs and Morgan Professional Association Lawyers First National Bank Building Saint Paul, Minnesota and IDS Center Minneapolis, Minnesota $895,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1992A CITY OF ROSEMOUNT DAKOTA COUNTY MINNESOTA We have acted as bond counsel in connection with the issuance by the City of Rosemount, Dakota County, Minnesota (the "Issuer"), of its $895,000 General Obligation Improvement Bonds, Series 1992A, bearing a date of original issue of September 1, 1992 (the "Bonds"). We have examined the law and such certified proceedings and other documents as we deem necessary to render this opinion. We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and we express no opinon relating.thereto. As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished to us without undertaking to verify the same by independent investigation. Based upon such examinations, and assuming the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified or photostatic copies and the authenticity of the originals of such documents, and the accuracy of the statements of fact contained in such documents, and based upon present 1-1 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: (1) The proceedings show lawful authority for the issuance of the Bonds according to their terms under the Constitution and laws of the State of Minnesota now in force. (2) The Bonds are valid and binding general obligations of the Issuer and all of the taxable property within the Issuer's jurisdiction is subject to the levy of an ad valorem tax to pay the same without limitation as to rate or amount; provided that the enforceability (but not the validity) of the Bonds and the pledge of taxes for the payment of the principal and interest thereon is subject to the exercise of judicial discretion in accordance with general principles of equity, to the constitutional powers of the United States of America and to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted. (3) At the time of the issuance and delivery of the Bonds to the original -.purchaser, the interest on the Bonds i's excluded from gross income for United States income tax purposes and is excluded, to the same extent, from both gross income and taxable net income for State of Minnesota income tax purposes (other than Minnesota franchise taxes measured by income and imposed on corporations and financial institutions), and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations or the Minnesota alternative minimum tax applicable to individuals, estates or trusts; it should be noted, however, that for the purpose of computing the federal alternative minimum tax imposed on corporations, such interest is taken into account in determining adjusted current earnings. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes and from both gross income and taxable net income for State of Minnesota income tax purposes. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income and taxable net income retroactive to the date of issuance of the Bonds. 1-2 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 September, 1992. Professional Association 1-3 Briggs and Morgan Professional Association Lawyers First National Bank Building Saint Paul, Minnesota and IDS Center Minneapolis, Minnesota $1,525,000 GENERAL OBLIGATION STORM WATER REVENUE BONDS, SERIES 1992B CITY,OF ROSEMOUNT DAKOTA COUNTY MINNESOTA We have acted as bond counsel in connection with the issuance by the City of Rosemount, Dakota County, Minnesota (the "Issuer"), of its $1,525,000 General Obligation Storm Water Revenue Bonds, Series 1992B, bearing a date of original issue of September 1,1992 (the "Bonds"). We have examined the law and such certified proceedings and other documents as we deem necessary to render this opinion. We have not been engaged or undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material relating to the Bonds, and we express no opinon relating thereto. As to questions of fact material to our opinion, we have relied upon the certified proceedings and other certifications of public officials furnished to us without undertaking to verify the same by independent investigation. Based upon such examinations, and assuming the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified or photostatic copies and the authenticity of the originals of such documents, and the accuracy of the statements of fact contained in such documents, and based upon present 1-4 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: (1) The proceedings show lawful authority for the issuance of the Bonds according to their terms under the Constitution and laws of the State of Minnesota now in force. (2) The Bonds are valid and binding general obligations of the Issuer and all of the taxable property within the Issuer's jurisdiction is subject to the levy of an ad valorem tax to pay the same without limitation as to rate or amount; provided that the enforceability (but not the validity) of the Bonds and the pledge of taxes for the payment of the principal and interest thereon is subject to the exercise of judicial discretion in accordance with general principles of equity, to the constitutional powers of the United States of America and to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted. (3) At the time of the issuance and delivery of the Bonds to`the original purchaser, the interest on the Bonds is excluded from gross income for United States income tax purposes and is excluded, to the same extent, from both gross income and taxable net income for State of Minnesota income tax purposes (other than Minnesota franchise taxes measured by income and imposed on corporations and financial institutions), and is not an item of tax preference for purposes of the federal alternative minimum tax imposed on individuals and corporations or the Minnesota alternative minimum tax applicable to individuals, estates or trusts; it should be noted, however, that for the purpose of computing the federal alternative minimum tax imposed on corporations, such, interest is taken into account in determining adjusted current earnings. The opinions set forth in the preceding sentence are subject to the condition that the Issuer comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for federal income tax purposes and from both gross income and taxable net income for State of Minnesota income tax purposes. Failure to comply with certain of such requirements may cause the inclusion of interest on the Bonds in gross income and taxable net income retroactive to the date of issuance of the Bonds. 1-5 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 September, 1992. Professional Association V APPENDIX 11 SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND MINNESOTA REAL PROPERTY VALUATION Following is a summary of certain statutory provisions effective through 1990 relative to tax levy procedures, tax payment and credit procedures, and the mechanics of real property valuation. The summary does not purport to be inclusive of all such provisions or of the specific provisions discussed, and is qualified by reference to the complete 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 1991 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 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 overall relationship between the Estimated Market Value of property within the taxing unit and actual selling price. Assessed Value For taxes payable in 1988 and for prior years, property taxes were levied based on "Assessed Value." For purposes of determining "Assessed Value" of real property, the Estimated Market Value of the property was calculated by applying the statutory formula applicable to the property's classification. The result is the Assessed Value of the property. Tax Capacity 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 property. 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 lower 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. 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 year preceding the collection year. A listing of property taxes due is prepared by the county auditor and turned over to the county treasurer on or before the first business day in March. The county treasurer is responsible for collecting all property taxes within the county. Real estate and personal property tax statements were to be mailed out no later than April 15 for property taxes payable in 1990 and are to be mailed out no later than March 31 thereafter. One-half (1/2) of the taxes on real property is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid by their due date are assessed a penalty which, depending on the type of property, increases from 3% or 7% on the day after the due date (in the case of the first installment due) or from 4% to 8% on the day after the due date (in the case of the second installment due) to 8% or 12% on December 1 st of the collection year. Personal property taxes remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the unpaid tax. On the first business day of January of the year following collection all delinquencies are subject to an additional 2% interest penalty, and those delinquencies outstanding as of February. 15 are filed for a tax lien judgment with the district court. By March 20 the clerk of court files a publication of legal action and a mailing of notice of action to delinquent parties. Those property interests not responding to this notice have judgment entered for the amount of the delinquency and associated interest penalties. The amount of the judgment is subject to a variable interest penalty determined annually by the Department of Revenue, and equal to the adjusted prime rate charged by banks, but in no event is the rate less than 10% or more than 14%. Property owners subject to a tax lien judgment generally have five years (5) in the case of all property located outside of cities or in the case of residential homestead, agricultural homestead and seasonal residential recreational property located within cities or three (3) years with respect to other types of property to redeem the property. After expiration of the redemption period, unredeemed properties are declared tax forfeit with title held in trust by the State of Minnesota for the respective taxing districts. The county land commissioner then sells those properties not claimed for a public purpose at auction. The net proceeds of the sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any remaining balance in most cases being divided on the following basis: county - 40%; 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 governmental aid, equalization aid, homestead and agricultural credit aid (HACA) and disparity reduction aid. The homestead credit, a direct subsidy by the State to the taxpayer 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 local governments in Minnesota to levy property taxes was controlled by various statutory limitations. These limitations have expired for taxes payable in 1993 and II -2 future years, but may be reinstated in the future. Under prior law the limitations generally did not affect debt service levies. For county governments, cities of 2,500 population or more, and smaller cities and towns that receive taconite municipal aid, taxes could be levied outside the overall levy limitation for, among others, bonded indebtedness and certificates of indebtedness, unfunded accrued pension liability, social service programs and the residual income maintenance program for which the county share of costs has not been taken over by the State. Debt Limitations All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory "net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is defined as the amount remaining after deducting from gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt and the aggregation of the principal of the following: 1. Obligations issued for improvements which are payable wholly or partially from the proceeds of special assessments levied upon benefited property. 2. Warrants or orders having no definite or fixed maturity. 3. Obligations payable wholly from the income from revenue producing conveniences. 4. Obligations issued to create or maintain a permanent improvement revolving fund. 5. Obligations issued for the acquisition and betterment of public waterworks and public lighting, heating or power systems, and any combination thereof, or for any other public convenience from which revenue is or may be derived. 6. Certain debt service loans and capital loans made to school districts. 7. Certain obligations to repay loans. 8. Obligations specifically excluded under the provisions of law authorizing their issuance. 9. Debt service funds for the payment of principal and interest on obligations other than those described above. Levies for General Obligation Debt (Sections 475.61 and 475.74, Minnesota Statutes) Any municipality which issues general obligation debt must, at the time of issuance, certify levies to the county auditor of the county(ies) within which the municipality is situated. Such levies shall be in an amount that if collected in full will, together with estimates of other revenues pledged for payment of the obligations, produce at least five percent in excess of the amount needed to pay principal and interest when due. Notwithstanding any other limitations upon the ability of a taxing unit to 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 Metropolitan Development Act, more commonly known as "Fiscal Disparities," was first implemented for taxes payable in 1975. Forty percent of the increase in commercial -industrial (including public utility and railroad) net tax capacity valuation since 1971 in each assessment district in the Minneapolis/St. Paul seven -county metropolitan area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and Washington Counties) is contributed to an area -wide tax base. A distribution index, based on the factors of population and real property market value per capita, is employed in determining what proportion of the net tax capacity value in the area -wide tax base shall be distributed back to each assessment district. II -3 General Classifications Residential Homestead Title 11 Housing Residential Non -Homestead 4 or more units STATUTORY FORMULAE CONVERSION OF ESTIMATED MARKET VALUE (EMV) TO ASSESSED VALUE, GROSS OR NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS Assessed Value Gross Tax Capacity Assessment Year 1987 Assessment Year 1988 First $68,000 of EMV at 17% First $68,000 of EMV at 2.17% EMV In excess of $68,000 at 27% Next $32,000 of EMV at 2.50% EMV in excess of $100,000 at 3.30% Net Tax Capacity Assessment Year 1989 First $68,000 of EMV at 1.00% Next $32,000 of EMV at 2.00% EMV in excess of $100,000 at 3.00% Net Tax Capacity Assessment Year 1990 First $68,000 of EMV at 1.00% Next $42,000 of EMV at 2.00% EMV in excess of $110,000 at 3.00% Net Tax Capacity Assessment Year 1991 First $72,000 of EMV at 1.00% Next $43,000 of EMV at 2.00% EMV in excess of $115,000 at 2.5% 20% 2.5% 2.4% 2.3% 2.3% 34% 4.10% 3.6% 3.6% 3.5% Agricultural Homestead First $65,000 of EMV at 14% 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, garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00% EMV in excess of $65,000 at 18% EMV in excess of $65,000 Excess to 320 acres at 0.40% Excess to 320 acres at 0.45% Excess to 320 acres at 0.45% at 2.25% Excess over 320 acres at 0.40% Excess over 320 acres at 0.45% Excess over 320 acres at 0.45% Next $32,000 EMV at 2.00% Next $42,000 EMV at 2.00% 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 over 320 acres at 0.40% 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 at 3.00% at 3.00% at 2.5% Excess to 320 acres at 1.30% Excess to 320 acres at 1.30% Excess to 320 acres at 1.30% Excess over 320 acres at 1.70% Excess over 320 acres at 1.60% Excess over 320 acres at 1.60% Agricultural Non -Homestead 18% 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 acre at 3.00% 1 acre at 2.80% EMV of land at 2.25% 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% Commercial -industrial First $60,000 of EMV at 28% First $100,000 of EMV at 3.30% First $100,000 of EMV at 3.30% First $100,000 of EMV at 3.20% First $100,000 of EMV at 3.10% EMV in excess of $60,000 at 43% 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% Seasonal/Recreational 21% 2.30% 2.40% 2.30% Non -Commercial - 2.20% Residential Commercial - 2.30% Vacant Land 40% 5.25% 5.06% 4.95% 4.75% HOMESTEAD CREDIT Taxes on Homesteaded Property Reduced by the lesser of: 54% 54% N/A N/A N/A or: $700 on the flrs1 0,8,000 of EMV $725 on the first $68.000 of EMV APPENDIX III ANNUAL FINANCIAL STATEMENTS The City is audited annually by an independent certified public accounting firm. Data on the following pages was extracted from the audited financial statements for fiscal years ending December 31 1991, 1990 and 1989. For all years presented, the modified accrual basis of accounting is used for governmental fund types; the accrual basis is used for proprietary funds. The reader should be aware that the complete audits may contain additional information which may interpret, explain or modify the data presented here. CITY OF MOSEMOU K, KrNNCSOTA COMINED BA[AHM SHEET ALL FUPD TYPES AND ACCOUNP GROUPS December 31, 1991 Proprietary Fiduciary Governmental Fund Tvoes Find Tyres Fund TVoe Proprietary Fiduciary Governeental Fund Types Pum Types Fund Type Account Groups Fixed General (Mercrandxxn Only) General Special Totals Capital Assets Long -Term Fixed General (Me.orandum Off) Prolec-s Erterorise Special Debt Capital 1991 1990 Assets Long -Term General Revenue Service Proiects Enterprise Agency (Unaudited) Deb[ 1991 1990 ASSETS LIABILITIES Cash S 127,463 S 182,955 $ 61,625 S 24,084 S 111,788 5 11189 S - S - S 509,104 $ 509,679 Certificates of Funds S - 5 - S - S 269,792 S - S - S - S - Deposit 704,227 1,705,618 6,677,000 680,000 2,230,000 405,954 - - 12,402,799 10,911,266 Accounts Receivable 1,524 - - - 218,330 - - - 219,854 70,102 Notes Receivable - 1,433,548 - - - - 175,322 - 1,433,548 1,435,342 Special Assessments - - 5,667 - - - 51,U17 62,741 Accrued Interest - - Receivable - 39,575 - - - 39,575 40,654 Contract Delinquent 13,786 - 190,164 - 7,243 - Payable - - 211,193 70,467 Deferrea 45,059 4,318 1,579,260 - 37,201 - - - 1,665,838 1,683,343 Taxes Receivable Revenue 132,946 1,492,945 1,769,424 - 44,443 - Delinquent 63,538 - - - - - - - 63,538 57,0b1 Doe From Other 13,910,000 13,875,000 TOTAL IIA- Funds 120,000 - - 149,792 - - - - 269,792 967,488 Due From other Govern - FUND EQUITY rental {hits 127,829 916 109,110 - 1,318 - - - 239,173 239,907 Prepaid Expenses 113,765 904 - - 45,914 - - - 160,583 147,776 Fixed Assets - - - - 3,326,025 - 11,343,070 - 14,669,095 14,481,335 Amount Available in Capital - - - Deco Service 1,670,197 - - - 1,670,197 1,393,328 Retained Earnings - - - - PLuxis _ _ _ _ - - - 6,847,735 6,847,735 6,851,778 Amount to be Pro- Reserved 113,765 1,816,818 6,847,735 506,756 - - vided for Dent - 9,285,074 7,520,493 Unreserved Retirement - 5,892.587 51892,587 5,884,837 70TAL ASSES S"1,317,191 S 3,328,259 $ 8,617,159 S 853,876 S 5,977,819 S 407,143 $11,343,070 $12,740,322 $44,584,839 $43,310,441 Capital 942,415 - - - Proprietary Fiduciary Governmental Fund Tvoes Find Tyres Fund TVoe Ac--ount Groups Generalt-als Fixed General (Mercrandxxn Only) Special Debt Capital Assets Long -Term General Revenue Service Prolec-s Erterorise Aoency (Unaudited) Debt 1991 1990 LIABILITIES APD FUND EQUITY LIABILITIES Dae to Ocher Funds S - 5 - S - S 269,792 S - S - S - S - S 269,792 S 1,013,517 Accounts Payable b2,715 18,496 - 6,900 6,962 407,143 - - 522,216 243,720 Canpensated Ab- sences Payable - - - - 24,669 - - 175,322 199,991 290,573 Acr-rued Expenses 45,350 - - - 5,667 - - - 51,U17 62,741 Accrued Interest - - - - 39,575 - - - 39,575 40,654 Contract Payable - - - 70,428 - - - - 70,428 122,964 Deferred Revenue 132,946 1,492,945 1,769,424 - 44,443 - - - 3,439,758 3,281,799 fiords Payable - - 1,345,000 - - 12,565,000 13,910,000 13,875,000 TOTAL IIA- BILITIESS 261,011 $ 1,511,441 S 1,769,424 5 347,120 S 1,466,316 $ 407,143 $ $12,740,322 518,502,777 $18,930,968 FUND EQUITY Ines=*=- in General Fixed Assets 5 - S - S - 5 - 5 - $ - $11,343,070 $ - $11,343,070 $11,047,876 Contributed Capital - - - - 1,670,197 - - - 1,670,197 1,393,328 Retained Earnings - - - - 2,841,306 - - - 2,841,306 2,773,240 Fund Balance Reserved 113,765 1,816,818 6,847,735 506,756 - - - - 9,285,074 7,520,493 Unreserved Designated for Norking Capital 942,415 - - - - 942,415 853.455 TOTAL FLM EQUITY $ 1,056,180 $ 1,816,618 $ 6,847,735 S 506,756 S 4,511,503 $ $11,343,070 $ 526,082,062 $24,379,473 TOTAL LIABILMS AND MM EQUITY $ 1,317,191 5 3,328,259 $ 8,617,159 S 853,876 S 5,977,819 S 407,143 $11,343,070 $12,740,322 $44,584,8,39 -$43,310,441 C1TY OF RU:iUM UNI', MiNNKS(YrA C(MU NFD L1AlIVCE SII7.01' ALI, FUND TYPES AND ACCUUNI' GIMPS --------------------------------- December 31, 1990 Proprietary Fiduciary _ Goverrvental Fund Types Furxi Types Plied Type Account Groups General Totals Fixed General (Memorandum Only) Special Debt Capital Assets Long -Term General Revenue Service Projects rl)ter1)rise Agency (Unaudited) Debt 1990 1989 ASSETS Cash S 27,367 S 57,964 S 165,662 S - S 256,673 5 2,013 5 - S - $ 509,679 S 421,900 Certificates of Deposit 496,286 945,000 6,550,000 985,000 1,935,000 - - - 10,911,286 12,830,432 Accounts Receivable 1,896 - - 68,206' - - - 70,102 122,02.0 Notes Receivable - 1,435,342 - - - - - - 1,435,342 1,415,950 Special Assessments Recei vab l e Delinquent 2,414 - 64,251 - 3,822 - - - 70,487' 80,837 (J Deferred 70,225 26,463 1,544,119 - 42,536 - - - 1,683,343 1,295,032 Taxes Receivable Delinquent 57,081 - - - - - - - 57,081 104,233 Due From Other Funds 325,959 380,785 128,126 132,618 - - - 967,488 233,204 Due From Other Govern- nental Wits 164,240 2,898 71,687 - 1,082 - - - 239,907 127,899 Prepaid iixpenses 111,409 2,803 - - 33,564 - - - 147,776 122,746 Fixed Assets - - - - 3,433,459 - 11,047,876 - 14,481,335 11,582,471 iNnoiunt Available in Debt Service Funds - - - - - - - 6,851,778 6,851,778 5,291,801 A:nowit to be Pro- vided for Debt Retirement - - - -_ - - 5,804,837 5,884,837 8,493,706 ,n)TAL ASSETS S 1,256,877 5 2,851,255 5 8,523,845 5 1,117,618 5 5,774,342 5 2,013 $11,041,876 $12,736,615 543,310,441 $42,122,231 CITY OF wsut i( w, MINNI:sam C(MBINED BAI.ANCF. SIIEEI' ALL FUND TYPES AND ACCOUNT GROUPS --------------------------------- Lk cember 31, 1990 Proprietary Fiduciary Governmental Fund Types Puml'Iypes Fund Type Account Groups General 7btals Fixed General (Memorandum Only) Special Debt Capital Assets Luny -Term General Revenue Service Projects Enterprise Agency (Unaudited) Debt 1990 1989 LIABILITIES AND FUND EQUITY LIABILITIES Due to Other Funds $ - S. - $ 63,697 S 949,820 5 - S - S $ - 5 1,013,517 $ 233,204 Accounts Payable 101,910 94,932 - 29,087 15,778 2,013 - - 243,720 208,270 Compensated Ab- sences Payable - - - - 23,958 - - 266,615 290,573 172,246 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 - 46,358 - - - 3,261,799 2,895,705 Bonds Payable - - - - 1,405,000 - - 12,470,000 13,875,000 15,100,000 TOTAL LIA- BILITIES$ 292,013 S 1,577,462 S 1,672,067 $ 1,043,024 : 1,60',774 S 2,013 $ - 512,736,615 518,930,968 518,833,212 FUND EQUITY Investment in General Fixed Assets $ - S - 5 - $ - 5 - $11,047,876 S - $11,047,876 $ 9,192,886 Contributed Capital - - - - 1,393,328 - - 1,393,328 1,571,185 Retained Earnings - - - - 2,77?,244 - - 2,773,240 2,751,474 Fund Balance Reserved 173,783 1,273,793 6,851,778 11,594 - - - 8,373,948 8,582,293 Unreserved Designated for Working Capital 791,081 - - - - - - - 791,081 965,000 Undesignated - - - - _ _ - - - - 226,181 TOTAL FUND EQUITY $ 964,864 $ 1,273,793 $ 6,851,778 $ 74,594 S 4,166,568 5 - $11,047,076 S - $24,379,473 $23,289,019 • TOTAL LIABILITIES AND FUND EQUITY $ 1,256,877 $ 2,851,255 $ 8,523,845 $ 1,117,618 $ 5,774,342 $ 2,013 $11,047,876 $12,736,615 543,110,441 $42,122,231 as=sa xaaaa:a� zacaazm aazzo zzzzazczazze zzacczczcz s zzzr czaszzz _zzr=zannz z zzzzszzcac s zzzccazezc = zzzeccc zecs a zazzzaz--s. CITY OF IYJSUTKXW, M1NNESUM COMBINED lil1IANCE MEET ALL FUND TYPES AND ACCOLW GROUPS --------------------------------- December 31, 1989 == ssszaaacas s3scs_�sn� zea=sczza ac ssssas rscaaa :ss�aasxsa zcsssans:zra Proprietary Governmental Fund Types Fund Types Account Groups General Totals Fixed General (Memorandum Only) Special Debt Capital Assets Long -Term General Revenue Service Projects Enterprise (Unaudited) Debt 1989 1988 ASSETS Cash $ 33,893 $ 100,509 $ 116,841 $ 89,113 $ 81,544 ''$ - $ - $ 421,900 $ 449,409 Certificates of Deposit 1,100,432 1,585,000 5,175,000 1,755,000 3,215,000 - - 12,830,432 12,970,675 Accounts Receivable - - - 122,020 - - 122,020 138,555 Notes Receivable - 19,048 1,396,902 - - - - 1,415,950 1,350,902 Special Assessments Receivable Delinquent Deferrea 1,622 111,901 - - 74,749 1,155,804 - - 4,466 27,327 - - - 80,837 75,269 Taxes Receivable - 1,295,032 1,297,188 Current 127,899 - - - - - - 127,899 174,812 Delinquent 104,233 - - - - - - 104,233 64,501 Due From Other Funds 116,602 - - 116,602 - - - 233,204 165,607 Due From Other Governmental Units - - - - - 16,470 Prepaid Expenses 92,258 - - - 30,488 - - 122,746 134,548 Fixea Assets - - - - 3,225,329 9,192,866 - 12,418,215 9,446,972 Accumulatea Depreciation - - - - (835,744) - - (835,744) (749,966) Anuunt Available in Debt Service Fluids - - - - - - 5,291,801 5,291,801 4,648,982 Mount to be Provided for Debt Retirement - - - - - - 8,493,706 8,493,706 9,101,447 TorrAL ASSErs $ 1,688,840 $ 1,704,557 $ 7,919,296 $ 1,960,715 $ 5,870,430 $ 9,192,886 $13,785,507 $42,122,231 $39,285,371 == ssszaaacas s3scs_�sn� zea=sczza ac ssssas rscaaa :ss�aasxsa zcsssans:zra 0 CITY OF wisca jar, MINNEsum COPIl3INM GAIN CE SHEET ALL FUND TYPES ANI) Amoutir G11CMS --------------------------------- December 31, 1989 Proprietary Governmental FUnd 'Types n! Types Account Groups Totals General Fixed General (Memoramum only) Special Debt Capital Assets Ivng-Term Debt 1989 19P9 General Revenue Service Projects E1�terprise ;;(Unaudited) LIABILITIES AND FUND E7QUITY LIABILITIES09 $ 26 $ , $ - $ 231,108 $ - $ - $ - $ 233,204 96,517 $ 165,607 180,024 Due to Other Flutes Accounts Payable 29,813 27,821 40 26,119 12,724 _ - Compensated Absences - 36,739 - 135,507 172,246 159,447 Payable- - _ _ 2,773 _ - 30,151 24,894 Accrued Expenses 27,378 - - _ - _ 1,957 _ _ 11957 2,572 Accruea Interest Reimbursable Permits and - _ _ - 111,753 77,992 Surcharges Contracts Payable 111,753- - 8,358 _ 171_536 11,785 _ - _ - 191,679 2,895,705 484,553 2,787,860 Deferred Revenue 236,457 - - 2,627,455 _ 31,793 1,450,000 - 13,650,000 15,100,000 13,805,000 Batas Payable $ 38,275 -- $ 2,627,495 - $ 428,763 $ 1,547,771 $ - $13,785,507 $18,833,212 $17,687,949 R7rAL LIABILITIES $ 405,401 Elm EQUITY Investment in General- _ $ $ $ g192gg(� �, $ - $ 9,192,886 $ 6,610,493 Fixed Assets $ $ _ _ 4,322,659 - - 4,322,659 3,721,158 Retainea Earnings - _ Fwx] Balance 92,258 1,666,282 5,291,801 1,531,952 - _ - 8,582,293 9,652,241 Reserved Unreserved Designated for Working - _ _ - 965,000 - capital 965,000 - _ _ _ _ 226,161 1,6)3,530 Undesignatea EQUITY 226,181 1,2 3, 39 - 1, 6 ,282 ,291,801 _ 1,531,9 2 4,322,6 9 992, $23,289,019,1 $21,597,421 TOTAL FUND `lUTA1, LIABILITIES $ 1,688,840 $ 1,704,557 $ 7,919,296 $ 1,960,715 $ 5,870,430 $ 9,192,886 $13,785,507 $42,122,231 $39,285,371 �aacsssaau AND FUND EQUITY -sssaesaaaa aaszssasass aaasssssass asses=szasa y-s=ssasaasa= �a�sszsnaa ==sasaa3ssax ezasasnaaas CITY OF ROSEMOUNT, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES ALL GOVERNMENTAL FUND TYPES ------------------------------------------------------------------------ For the Year Ended December 31, 1991 Totals Special Debt Capital (Memorandum Only) General Revenue Service Projects 1991 1990 REVENUE General Property Taxes $ 1,026,792 $ 923,827 $ 304,946 S - S 2,255,565 $ 1,828,030 Licenses and Permits 193,178 - - = 193,178 210,840 Special Assessments 19,830 - 865,044 - 884,874 1,041,023 Intergovernmental 842,806 413,429 - - 1,256,235 1,570,215 Charge for Services 125,887 - - - 125,887 88,592 Fines and Forfeitures 47,377 - - - 47,377 51,841 Interest Earnings 35,297 181,292 467,193 199 683,981 806,472' Other 139,717 12,860 36,470 - 189,047 519,194 TOTAL REVENUE $ 2,430,884 S 1,531,408 $ 1,673,653 $ 199 $ 5,636,144 $ 6,116,207 EXPENDITURES General Government S 998,618 $ 129,181 $ - S - $ 1,127,799 $ 1,246,877 Public Safety 834,191 - - - 834,191 746,892 Public Works 565,071 - - 490,540 1,055,611 1,943,055 Parks and Recreation 503,804 - - - 503,804 416,088 Other - 579,029 1,200 48,840 629,069 79b,787 Debt Service - Principal Retirement - - 1,560,000 - 1,560,000 1,180,000 Interest on Bonds - - 773,229 - 773,229 b59,625 Fiscal Agent Fees - - 5,063 - 5,063 5,285 TOTAL EXPENDITURES $ 2,901,664 $ 708,210 $ 2,339,492 $ 539,380 $ 6,488,766 $ 7,194,609 EXCESS (DEFICIT) OF REVENUE OVER EXPENDITURES BEFORE OTHER FINANCING SOURCES (USES) $ (470,800) $ 823,198 $ (665,839) $ (539,181) S (852,622) $(1,078,402) OTHER FINANCING SOURCES (USES) Proceeds from Sale of Bonds $ - $ 208,604 $ 57,103 $ 1,376,641 $ 1,642,348 $ - Transfers from Other Funds 562,116 3,023 1,U10,208 193,192 1,768,539 2,023,107 Transfers to Other Funds - (491,800) (405,515) (598,490) (1,495,805) (1,553,150) NET OTHER FINANCING SOURCES (USES) $ 562,116 -s-T286,173) $ 661,796 971,343 $ 1,915,082 $ 469,957 EXCESS (DEFICIT) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING USES $ 91,316 $ 543,025 $ (4,043) $ 432,162 $ 1,062,460 $ (608,445) FUND BALANCES, January 1 964,864 1,273,793 6,851,778 74,594 9,165,029 9,773,474 FUND BALANCES, December 31 $ 1,056,180 5 1,816,818 $ 6,847,735 $ 506,756 $10,227,489 $ 9,165,029 EXCESS (DEFICIT) OF REVENUE OVER EXPENDITURES BEFORE OTHER SOURCES (USES) $ (311,1139) CITY OF ROSEMOUNT, MINNESOTA 5(1,078,402) $(4,060,959) OTHER FINANCING SOURCES (USES) _ COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCES $ - S - $ - $ - $ 2,553,516 ------------------------------------------------------------------------- 30,:164 ALL GOVERNMENTAL FUND TYPES 2,656,281 Transfers to Other Funds (1,43'),635) - (00,007) (1,553,150) For the Year Ended December 31, 1990 1,906,184 __-- 121648) T-4 9 5T 9 5-7 $ 1,568,662 Totals Special Debt Capital (Memorandum Only) General_ Revenue Service_- Pro ects 1990 1989 REVENUE General Property Taxes $ 8 19, 364 S 784,058 $ 224,608 $ - 5 1,828,030 S 1,726,540 Licenses and Permits 210,84U - - - 210,840 253,308 Special Assessments 35,874 - 1,005,149 - 1,041,023 872,390 Intergovernmental 1,003,672 566,543 - - 1,570,215 929,844 Charge for Services 88,592 - - - 88,592 78,953 Fines and Forfeitures 51,841 - - - 51,841 43,181 Interest Earnings 80,624 204,389 521,454 - 806,472 971,993 Other 103,185 414,331 - 1,678 519,194 206,022 TOTAL REVENUE $ 2,393,997 $ 1,969,321 $ -1, -1 7 11 $ 1,678 $ 6,116,207 $ 5,288,096 EXPENDITURES General Government $ 1,013,595 $ 233,202 S - $ - $ 1,246,877 $ 1,079,181 ` Public Safety 746,892 - - - 746,892 680,479 (]D Public Works 589,361 - - 1,353,694 1,943,055 2,950,311 Parks and Recreation 416,008 - - - 416,088 342,491 Other - 772,305 1,200 23,282 796,781 880,365 Debt Service - Principal Retirement - - I,Ino, 000 - 1,180,000 2,575,000 Interest'on Bonds - - 859,625 - 859,625 832,025 Fiscal Agent Fees - - 5,205 - 5,285 9,197 TOTAL EXPENDI,rURES S 2,7651)36 Sii_uu5,587 __ 5_2,046,110 _ S I,3G 6 S 7,194,609 $ 9,349,049 EXCESS (DEFICIT) OF REVENUE OVER EXPENDITURES BEFORE OTHER SOURCES (USES) $ (311,1139) S '14,1,7:14 $ (294,899) $11,375,_290_) 5(1,078,402) $(4,060,959) OTHER FINANCING SOURCES (USES) _ Proceeds from Sale of Bonds $ - $ - S - $ - $ - $ 2,553,516 Transfers from Other Funds 30,:164 - 1,906,704 85,359 2,023,107 2,656,281 Transfers to Other Funds (1,43'),635) - (00,007) (1,553,150) (2,641,135) NET OTHER FINANCING SOURCES (USES) S _(29,5(0) 1,456 $( 1,435,6j5) S 1,906,184 __-- 121648) T-4 9 5T 9 5-7 $ 1,568,662 EXCESS (DEFICIT) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES AND OTHER FINANCING SOURCES (USES) $ (370,483) $ (471,901) S 1,611,805 $(1,377,946) $ (608,445) $(1,492,297) FUND BALANCES, January 1 _ 1,335,347 1,745,694 5,239,8!13 1,452,540 9,77:1,474 11,265,771 FUND BALANCES, December 31 $ 964,864 S 1,273,793 S 6,851,778 $ 74,544 $ 9,165,029 $ 9,773,474 I CITY OF ROSEMOUNT, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES ----------------------------------------------------------------------- For the Year Enued December 31, 1909 Totals Special Debt Capital (Memorandum Only) General Revenue Service Pro3ects 1989 1988 REVENUE General Property Taxes $ 816,350 $ 731,671 $ 178,519 $ - - 1,726,540 253,308 $ 1,507,607 288,952 Licenses and Permits 253,308 18,267 - - - 854_123 872,390 908,998 Special Assessments 973,958 161,745 _ 929,844 1,623,060 Intergovernmental 72,522 6,431 - - 78,953 94,327 Charge for Services 43,181 - 43,181 32,424 Fines and Forfeitures 107,493 147,538 703,858 13,104 971,993 595,223 Interest Earnings 110,039 - 38,778 57,205 206,022 399,230 Other TOTAL REVENUE $ 2,395,118 $ 1,047,385 $ 1,775,278 $ 10,309 $ 5,288,090 $ 5,449,821 EXPENDITURES1,079,181 $ 982,026 $ 97,155 $ - $ - $ $ 945,796 General Government 680,479 - - - 680,479 539,259 Public Safety 567,535 - - 2,382,776 2,950,311 2,294,813 Public Works 342,491 - - - 342,491 161,929 Parks and Recreation - 767,939 2,770 109,656 880,365 1,724,064 Other Debt Service- - - 2,575,0 2,575,000 290,000 Principal Retirement - - 832,02525 _ 832,025 591,575 Interest on Bonds - 9,197 - 9,197 2,520 Fiscal Agent Fees F $ 2,572,531 $ 865,094 $ 3,41 ,992 $ 2,492,432 $ 9,349,049 $ 6,549,956 TOTAL EXPENDITURES EXCESS (DEFICIT) OF REVENUE OVER (USES) $ (177,413) $ 182,291 $(1,643,714) $(2,422,123) $(4,060,959) $(1,100,135) EXPENDITURES BEFORE OTHER SOURCES OTHER FINANCING SOURCES (USES) $ - $ 504,694 $ 2,048,822 $ 2,553,516 $ 3,828,355 Proceeds from Sale of Bonds $ - 66,670 300,000 2,157,049 132,562 2,656,281 228,958 Transfers from Other Funds (329,296) (543,909) (375,210) (1,392,718) (2,641,135) (217,620) Transfers to Other Funds (USES) $--F2-9-2-,6T9) ---C- ) 2,286, 3 7 8,66 2, 68,662 3,839,693 NET OTHER FINANCING SOURCES EXCESS (DEFICIT) OF REVENUE AND OTHER FINANCING SOURCES OVER EXPENDITURES $ (440,041) $ (61,618) $ 642,819 $(1,633,457) $(1,492,297) $ 2,739,558 AND OTHER FINANCING SOURCES (USES) 1,723,480 1,727,900 4,648,982 3,165,409 11,265,.771 8,526,213 FUND BALANCES, January 1 31 $ 1,283,439 $ 1,666,282 $ 5,291,801 $ 1,531,952 $ 9,773,474 $11,265,771 FUND BALANCES, December =sans=s�� ==ss.s=sem =ss=-=s=-s= -"-- - "---ss- aaaacaaasa csaa:sa3:ss CITY OF ROSEMOUNT, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES --------------------------------------------------- For the Years Ended December 31, 1991 and 1990 OPERATING REVENUE Water Sales Sewer Charges Water Surcharges Water Meter Maintenance Water Meters Miscellaneous Total Operating Revenue OPERATING EXPENSES Salaries and Wages Supplies Other Services Other Charges Metro Sewer Charge Depreciation Expense Total Operating Expenses Operating Income (Loss) NON-OPERATING REVENUE (EXPENSES) Enterprise Fund 1991 1990 $ 306,532 426,728 42,591 8,787 16,939 45,035 $ 846,612 $ 181,297 103,443 63,858 4,074 264, 108 .131 446 $ 748,226 $ 98,386 $ 271,847 288,390 53, 359 1,650 15,649 34,753 $ 665,648 $ 162,286 56,470 199,562 1 6, 677 226,481 95,136 $ 756,612 $ (90,964) 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) $ (67,154) INCOME BEFORE OPERATING TRANSFERS Operating Transfers In Operating Transfers Out NET INCOME RETAINED EARNINGS, January 1 RETAINED EARNINGS, December 31 III -10 $ 38,066 $ (158,118) 30,000 268,215 - (88,331) $ 68,066 $ 21,766 2,773,240 2,751,474 $ 2,841,306 $ 2,773,240 CITY OF ROSEMOUNT, MINNESOTA COMBINED STATEMENT•OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUNDS --------------------------------------------------- For the Years Ended December 31, 1990 and 1989 OPERATING REVENUE Water Sales Sewer Charges Water Surcharges Water Meter Maintenance Water Meters Miscellaneous Total Operating Revenue OPERATING EXPENSES Salaries and Wages Supplies Other Services Other Charges Metro Sewer Charge Depreciation Expense Total Operating Expenses Operating Income (Loss) NON-OPERATING REVENUE (EXPENSES) EnterDrise Fund 1990 1989 $ 271,847 288,390 53,359 1,650 15,649 34,753 S 665,648 S 162,286 56,470 199,562 16,677 226,481 95,136 S ',56,612 $ 221,069 210,894 27,450 9,003 11,786 19,867 S 500,069 $ 138,851 49,932 111,404 20,000 158,883 85,778 S 564,848 S (90,964) S (64,779) Interest Earnings $ 104,861 S 226,913 Interest on Bonds (170,553) (23,674) Other Expenses (1,462) (718) Net Non -Operating Revenue (Expenses) S (67,154) S 202,521 INCOME BEFORE OPERATING TRANSFERS Operating Transfers In Operating Transfers Out NET INCOME RETAINED EARNINGS, January 1 RETAINED EARNINGS, December 31 $ (158,118) $ 137,742 268,215 127,595 (88,331) (142,742) $ 21,766 $ 122,595 2,751,474 2,628,879 $ 2,773,240 $ 2,751,474 CITY OF ROSEMOUNT, MINNESOTA COMBINED STATEMENT OF REVENUE, EXPENSES AND CHANGES IN RETAINED EARNINGS PROPRIETARY FUNDS For the Years Ended December 31, 1989 and 1988 OPERATING REVENUE Water Sales Sewer Charges Water Surcharges Water Meter Maintenance Water Meters Connection/Reconnection Fees Miscellaneous Total Operating Revenue OPERATING EXPENSES Salaries and Wages Suppl.i-es Other Services Other Charges Metro Sewer Charge Depreciation Expense Total Operating Expenses Operating Income NON-OPERATING REVENUE (EXPENSES) Assessments Interest Earnings Interest on Bonds Other Expense Net Non -Operating Revenue INCOME BEFORE OPERATING TRANSFERS Operating Transfers In Operating Transfers Out NET INCOME RETAINED EARNINGS, January 1 RETAINED EARNINGS, December 31 III -12 M 1 F Enterprise Fund 1989 1988 $ 221,069 210,894 27, 450 9,003 11,786 478,906 19,676 $ 978,784 $ 138,851 49,932 111,404 20,000 158,883 85,778 $ 564,848 $ 413,936 $ 191 226,913 (23,674) (718) $ 202 -,7 12 $ 616,648 127,595 (142,742) $ 220,482 174,883 7,645 11,314 609,915 8,130 $ 1,032,369 $ 122,186 48,684 106,286 117,150- 83,686 17,15883,686 $ 478,000 $ 554,369 $ 12,590 90,143 (10,198) (459) $ 92,O76 $ 646,445 157,777 (169,115) $ 601',501 $ 635,107 3,72_ 3,086,051 $ 4,322,659 $ 3,721,158 PROPOSAL TO: Mr. Stephan Jilk, City Administrator SALE DATE: August 4, 1992 Rosemount City Hall 2875 145th Street West Rosemount, MN 55068 (612) 423-4411 RE: $895,000 General Obligation Improvement Bonds, Series 1992A For the Bonds of this Issuewhich shall mature and bear interest at the respective annual rates, as follow, we offer a price of $ (Note: This amount may not be less than $884,800) and accrued interest to the date of delivery. % 1994 % 1995 % 1996 % 1997 % 1998 1999 %2000 %2001 % 2002 %2003 % 2004 In making this offer we accept all of the terms and conditions of the Terms of Proposal published in the Official Statement dated July 21, 1992. In the event of failure to deliver these Bonds in accordance with the Terms of Proposal as printed in the Official Statement and made a part hereof, we reserve the right to withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All blank spaces of this offer are intentional and are not to be construed as an omission. Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made the following computations: NET INTEREST COST: $ NET EFFECTIVE RATE: Account Members BY: Account Manager .............................................................................................................................................................................. The foregoing offer is hereby accepted by the Issuer on the date of the offer by its following officers duly authorized and empowered to make such acceptance. Clerk Mayor SURE -BID Good Faith Check Submitted PROPOSAL TO: Mr. Stephan Jilk, City Administrator SALE DATE: August 4, 1992 Rosemount City Hall 2875 145th Street West Rosemount, MN 55068 (612) 423-4411 RE: $895,000 General Obligation Improvement Bonds, Series 1992A For the Bonds of this Issue which shall mature and bear interest at the respective annual rates, as follow, we offer a price of $ (Note: This amount may not be less than $884,800) and accrued interest to the date of delivery. % 1994 % 1995 %° 1996 % 1997 % 1998 % 1999 %2000 2001 %2002 % 2003 % 2004 In making this offer we accept all of the terms and conditions of the Terms of Proposal published in the Official Statement dated July 21, 1992. In the event of failure to deliver these Bonds in accordance with the Terms of Proposal as printed in the Official Statement and made a part hereof, we reserve the right to withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All blank spaces of this offer are intentional and are not to be construed as an omission. Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made the following computations: NET INTEREST COST: $ NET EFFECTIVE RATE: % Account Members AN Account Manager .............................................................................................................................................................................. The foregoing offer is hereby accepted by the Issuer on the date of the offer by its following officers duly authorized and empowered to make such acceptance. Clerk Mayor SURE -BID Good Faith Check Submitted PROPOSAL TO: Mr. Stephan Jilk, City Administrator SALE DATE: August 4, 1992 Rosemount City Hall 2875 145th Street West Rosemount, MN 55068 (612) 423-4411 RE: $1,525,000 General Obligation Storm Water Revenue Bonds, Series 1992B For the Bonds of this Issue which shall mature and bear interest at the respective annual rates, as follow, we offer a price of $ (Note: This amount may not be less than $1,506,700) and accrued interest to the date of delivery. %1994 % 1998 _%2002 % 2006 %1995 % 1999 %2003 %2007 %1996 %2000 %2004 %2008 %1997 % 2001 % 2005 % In making this offer we accept all of the terms and conditions of the Terms of Proposal published in the Official Statement dated July 21, 1992. In the event of failure to deliver these Bonds in accordance with the Terms of Proposal as printed in the Official Statement and made a part hereof, we reserve the right to withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All blank spaces of this offer are intentional and are not to be construed as an omission. Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made the following computations: NET INTEREST COST: $ NET EFFECTIVE RATE: Account Members BY: Account Manager .............................................................................................................................................................................. The foregoing offer is hereby accepted by the Issuer on the date of the offer by its following officers duly authorized and empowered to make such acceptance. Clerk Mayor SURE -BID Good Faith Check Submitted PROPOSAL TO: Mr. Stephan Jilk, City Administrator SALE DATE: August 4, 1992 Rosemount City Hall 2875 145th Street West Rosemount, MN 55068 (612) 423-4411 RE: $1,525,000 General Obligation Storm Water Revenue Bonds, Series 1992B For the Bonds of this Issue which shall mature and bear interest at the respective annual rates, as follow, we offer a price of $ (Note: This amount may not be less than $1,506,700) and accrued interest to the date of delivery. %1994 % 1998 %2002 _%2006 %1995 % 1999 %2003 %2007 %1996 %2000 _%2004 %2008 %1997 %2001 %2005 % In making this offer we accept all of the terms and conditions of the Terms of Proposal published in the Official Statement dated July 21, 1992. In the event of failure to deliver these Bonds in accordance with the Terms of Proposal as printed in the Official Statement and made a part hereof, we reserve the right to withdraw our offer, whereupon the deposit accompanying it will be immediately returned. All blank spaces of this offer are intentional and are not to be construed as an omission. Not as a part of our offer, the above quoted prices being controlling, but only as an aid for the verification of the offer, we have made the following computations: NET INTEREST COST: S NET EFFECTIVE RATE: % Account Members BY: Account Manager ..................................................................................................................................., .............................. The foregoing offer is herebyaccepted ted b..the Issuer on the date of the offer b..its following officers duly authorized and empowered to make such acceptance. Clerk Mayor SURE -BID Good Faith Check Submitted EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA HELD: August 4, 1992 Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Rosemount, Dakota County, Minnesota, was duly called and held at the City Hall in said City on Tuesday, the 4th day of August, 1992, at 7:30 P.M., for the purpose of considering offers for, and awarding the sale of, $895,000 General Obligation Improvement Bonds, Series 1992A of the City. The following members were present: and the following were absent: Member introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING OFFER ON THE SALE OF $895,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1992A, PROVIDING FOR THEIR ISSUANCE AND LEVYING A TAX FOR THE PAYMENT THEREOF A. WHEREAS, the City Council of the City of Rosemount, Minnesota (the "City"), has heretofore determined and declared that it is necessary and expedient to issue $895,000 General Obligation Improvement Bonds, Series 1992A (the "Bonds") of the City, pursuant to Minnesota Statutes, Chapters 429 and 475, to finance the construction of various improvement projects in the City (the "Improvements"); and B. WHEREAS, the construction of the Improvements to be financed by the Bonds has heretofore been ordered; and C. WHEREAS, offers to purchase the Bonds were solicited on behalf of the City by Springsted Incorporated; and 221921 D. WHEREAS, the following offers were received, opened and recorded by the City Administrator or his designee at the offices of Springsted Incorporated at 12:30 P.M., this same day: Bidder Interest Rate Net Interest Cost NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Rosemount., Minnesota, as follows: 1. Acceptance of Offer. The offer of (the "Purchaser"), to purchase $895,000 General Obligation Improvement Bonds, Series 1992A -.of the City (the "Bonds", or individually a "Bond"), in accordance with the Terms of Offering, at the rates of interest hereinafter set forth, and to pay therefor the sum of $ , plus interest accrued to settlement, is hereby found, determined and declared to be the most favorable offer received and is hereby accepted, and the Bonds are hereby awarded to said Purchaser. The City Administrator is directed to retain the deposit of said Purchaser and to forthwith return to the others making offers their good faith checks or drafts. 2. Title; OriginalIssue Date; Denominations; Maturities. The Bonds shall be titled "General Obligation Improvement Bonds, Series 1992A11, shall be dated September 1, 1992, as the date of original issue and shall be issued forthwith on or after such date as fully registered bonds. The Bonds shall be numbered from R-1 upward in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Bonds shall mature on February 1 in the years and amounts as follows: Year Amount Year Amount 1994 $215,000 2000 $65,000 1995 85,000 2001 65,000 1996 70,000 2002 65,000 1997 70,000 2003 65,000 1998 70,000 2004 60,000 1999 65,000 3. Purpose. The Bonds shall provide funds to finance the construction of the Improvements. The total cost of the 221921 2 Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. Work on the Improvements shall proceed with due diligence to completion. The City covenants that it shall do all things and perform all acts required of it to assure that work on the Improvements proceed with due diligence to completion and that any and all permits and studies required under law for the Improvements are obtained. 4. Interest. The Bonds shall bear interest payable semiannually on February 1 and August 1 of each year (each, an "Interest Payment Date"), commencing August 1, 1993, calculated on the basis of a 360 -day year of twelve 30 -day months, at the respective rates per annum set forth opposite the maturity years as follows: Maturity Interest Maturity Interest Year Rate Year Rate 1994 $ 2000 1995 2001 1996 2002 1997 2003 1998 2004 1999 5. Redemption. All Bonds maturing in the years 2001 to 2004, both inclusive, shall be subject to redemption and prepayment at the option of the City on February 1, 2000, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and the principal amounts within each maturity to be redeemed shall be determined by the City; and if only part of the Bonds having a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected registered holder of the Bonds. To effect a partial redemption of Bonds having a common maturity date,'the Bond Registrar prior to giving notice of redemption shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers so assigned to such Bonds, as many 221921 3 numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the holder thereof or his, her or its attorney duly authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. 6. Bond Registrar. , in Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall do so unless and until a successor Bond Registrar is duly appointed, all pursuant to any contract the City and Bond Registrar shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered holders (or record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12 of this resolution. 7. Form of Bond. The Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the following form: 221921 4 INTEREST RATE REGISTERED OWNER: PRINCIPAL AMOUNT: UNITED STATES OF AMERICA STATE OF MINNESOTA DAKOTA COUNTY CITY OF ROSEMOUNT GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 1992A MATURITY DATE OF DATE ORIGINAL ISSUE CUSIP September 1, 1992 KNOW ALL PERSONS BY THESE PRESENTS that the City of Rosemount, Dakota County, Minnesota (the "Issuer"), certifies that it is indebted and for value received promises to pay to the registered ownerspecified above, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on February 1 and August l of each year (each, an "Interest Payment Date"), commencing August 1, 1993, at the rate per annum specified above (calculated on the basis of a 360 -day year of twelve 30 -day months) until the principal sum is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of in Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regular Record Date, and shall be payable to the person 221921 5 who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and have been performed, in regular and due form, time and manner as required by law, and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue,hereof and the date of its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Rosemount, Dakota County, Minnesota, by its City Council has caused this Bond to be executed on its behalf by the facsimile signatures of its Mayor and its Administrator, the corporate seal of the Issuer having been intentionally omitted as permitted by law. 221921 6 Date of Registration: Registrable by: Payable at: BOND REGISTRAR'S CITY OF ROSEMOUNT, CERTIFICATE OF DAKOTA COUNTY, MINNESOTA AUTHENTICATION This Bond is one of the Bonds described in the /s/ Facsimile Resolution mentioned Mayor within. /s/ Facsimile Administrator Bond Registrar By Authorized Signature 221921 7 ON REVERSE OF BOND Redemption. All Bonds of this issue (the "Bonds") maturing in the years 2001 to 2004, both inclusive, are subject to redemption and prepayment at the option of the Issuer on February 1, 2000, and on any date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, the maturities and the principal amounts within each maturity to be redeemed shall be determined by the Issuer; and if only part of the Bonds having 'a common maturity date are called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called for redemption shall be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Mailed notice of redemption shall be given to the paying agent and to each affected Holder of the Bonds. Selection of Bonds for Redemption; Partial Redemption. To effect a partial redemption of Bonds having a common maturity date,.the Bond Registrar shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed shall be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, anew Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose; General Obligation. This Bond is one of an issue in the total principal amount of $895,000, all of like date of original issue and tenor, except as to number, 221921 8 maturity, interest rate, denomination and redemption privilege, which Bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council of the Issuer on August 4, 1992 (the "Resolution"), for the purpose of providing money to finance the construction of various improvement projects within the jurisdiction of the Issuer. This Bond is payable out of the General Obligation Improvement Bonds, Series 1992A Fund of the Issuer. This Bond constitutes a general obligation of the Issuer,"and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. Denominations; Exchange; Resolution. The Bonds are issuable solely as fully registered bonds in the denominations of $5,000 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or by his, her or its attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond Registrar. Thereupon the Issuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an authorized denomination or denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. 221921 9 Treatment of Registered Owners. The Issuer and Bond Registrar may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided on the reverse side hereof with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the Bond Registrar shall be affected by notice to the contrary. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registrar. Oualified Tax -Exempt Obligation. This Bond has been designated by the Issuer as a "qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - as custodian for (Gust) (Minor) under the Uniform (State) Transfers to Minors Act Additional abbreviations may also be used though not in the above list. 221921 10 ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated• Notice': The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guaranteed:. Signature(s) must be guaranteed 'v a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) 221921 11 8. Execution; Temporary Bonds. The Bonds shall be executed on behalf of the City by the signatures of its Mayor and Administrator and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed facsimile; and provided further that both of such signatures may be printed facsimiles and the corporate seal may be omitted on the Bonds as permitted by law. In the event of disability or resignation or other absence of either such officer, the Bonds may be signed by the manual or facsimile signature of that officer who may act on behalf of such absent or disabled officer. In case either such officer whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office until delivery. The City may elect to deliver, in lieu of printed definitive bonds, one or more typewritten 'temporary bonds in substantially the form set forth above, with such changes as may be necessary to reflect more than one maturity in a single temporary bond. Such temporary bonds may be executed with photocopied facsimile signatures of the Mayor and Administrator. Such temporary bonds shall, upon the printing of the definitive bonds and the execution thereof, be exchanged therefor and cancelled. 9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated, except that for purposes of delivering the original Bonds to the Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue, which date is September 1, 1992. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Registration; Transfer; Exchange. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonable regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transferred as herein provided. 221921 12 Upon surrender for transfer of any Bond at the principal office of the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration (as provided in paragraph 9) of, and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any authorized denomination or denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no Bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder, Bonds may be exchanged for Bonds of any authorized denomination or denominations of a like aggregate principal amount and stated maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Bonds which the Holder making the exchange is entitled to receive. All Bondssurrenderedupon any exchange or transfer provided for -in this resolution shall be promptly cancelled by the Bond Registrar and thereafter disposed of as directed by the City. All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the Holder thereof or his, her or its attorney duly authorized in writing. The Bond Registrar may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. Transfers shall also be subject to reasonable regulations of the City contained in any agreement with the Bond Registrar, including regulations which permit the Bond Registrar to close its transfer books between record dates and payment dates. The Administrator is hereby authorized to negotiate and execute the terms of said agreement. 221921 13 11. Richts Upon Transfer or Exchange. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 12. Interest Payment; Record Date. Interest on any Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the registration books of the City maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth (15th) day of the calendar month next preceding such Interest Payment Date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the SpecialRecordDate shall be given by the Bond Registrar to the Holders not less than ten (10) days prior to the Special Record Date. 13. Treatment of Registered Owner. The City and Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subject to the payment provisions in paragraph 12 above) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrary. 14. Delivery; Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the Administrator to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 15. Fund and Accounts. There is hereby created a special fund to be designated the "General Obligation Improvement Bonds, Series 1992A Fund" (the "Fund") to be administered and maintained by the Finance Director as a bookkeeping account separate and apart from all other funds maintained in the official financial records of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. There shall be maintained in the Fund two (2) separate accounts, to be designated the "Construction Account" and "Debt Service Account", respectively. 221921 14 (i) Construction Account. To the Construction Account there shall be credited the proceeds of the sale of the Bonds, less accrued interest received thereon, less any amount paid for the Bonds in excess of $884,860, and less the capitalized interest credited to the Debt Service Account, plus any special assessments levied with respect to the Improvements and collected prior to completion of the Improvements and payment of the costs thereof. From the Construction Account there shall be paid all costs and expenses of making the Improvements listed in paragraph 16, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said account shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taxes or special assessments herein levied or covenanted to be levied; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Construction Account, the balance (other than any special assessments) may be transferred by the Council to the fund of any other improvement instituted pursuant to Minnesota Statutes, Chapter 429, and provided further that any special assessments credited to the Construction Account shall only be applied towards payment of the costs of the Improvements upon adoption of a resolution by the City Council determining that the application of the special assessments for such purpose will not cause the City to no longer be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. (ii) Debt Service Account. There are hereby irrevocably appropriated and pledged to, and there shall be credited to, the Debt Service Account: (a) all collections of special assessments herein covenanted to be levied with respect to the Improvements and either initially credited to the Construction Account and not already spent as permitted above and required to pay any principal and interest due on the Bonds or collected subsequent to the completion of the Improvements and payment of the costs thereof; (b) all accrued interest received upon delivery of the Bonds; (c) all funds paid for the Bonds in excess of $884,860; (d) capitalized interest in an amount of $ subject to such adjustments as are necessary to pay the interest due on the Bonds prior to February 1, 1994; (e) any collections of all taxes herein or hereafter levied for the payment of the Bonds and interest thereon; (f) all funds remaining in the Construction Account after completion of the Improvements and payment of the costs thereof, not so transferred to the account of another improvement; (g) all investment earnings on funds held in the Debt Service Account; and (h) any and all other moneys, including 221921 15 but not limited to state aid funds, which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation bonds of the City hereafter issued by the City and made payable from said account as provided by law. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used directly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporary period until such proceeds are needed for the purpose for which the Bonds were issued and (2) in addition to the above in an amount not greater than the lesser of five percent (5%) of the proceeds of the Bonds or $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the Construction Account or the Debt Service Account (or any other City account which will be used to pay principal or interest to become -due on the Bonds payable therefrom), in excess of amounts which under then -applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulations. Money in the Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the Internal Revenue Code of 1986, as amended (the "Code"). 16. Assessments. It is hereby determined that no less than twenty percent (20%) of the cost to the City of each Improvement financed hereunder within the meaning of Minnesota Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied against every assessable lot, piece and parcel of land benefited by any of the Improvements. The City hereby covenants and agrees that it will let all construction contracts not heretofore let within one (1) year after ordering each Improvement financed hereunder unless the resolution ordering the Improvement specifies a different time limit for the letting of construction contracts. The City hereby further covenants and agrees that it will do and perform as soon as they may be done all acts and things necessary for the final and valid levy of such special assessments, and in the event that any such assessment be at any time held invalid with respect to any lot, piece or parcel of land due to any error, defect, or 221921 16 irregularity in any action or proceedings taken or to be taken by the City or the City Council or any of the City officers or employees, either in the making of the assessments or in the performance of any condition precedent thereto, the City and the City Council will forthwith do all further acts and take all further proceedings as may be required by law to make the assessments a validand binding lien upon such property. The special assessments, have not heretofore been authorized, and accordingly, for purposes of Minnesota Statutes, Section 475.55, Subdivision 3, the 'special assessments are hereby authorized. Subject to such adjustments as are required by conditions in existence at the time the assessments are levied, it is hereby determined that the, assessments shall be payable in equal, consecutive, annual installments, with general taxes for the years shown below and with interest on the declining balance of all such assessments at a rate per annum not greater than the maximum permitted by law and not less than per annum: Improvement Collection Designation Amount Levy Years Years 145 Street Reconstruction $107,500 1993-2002 1994-2003 Shannon Hills 3rd 274,220 1993-2002 1994-2003 West Ridge 4th 258,658 1993-2002 1994-2003 At the time the assessments are in fact levied the City Council shall, based on the then -current estimated collections of the assessments, make any adjustments in any ad valorem taxes required to be levied in order to assure that the City continues to be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. 17. Tax Levy; Coverage Test. To provide moneys for payment of the principal and interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: 221421 17 Year of Tax Year of Tax Levy Collection Amount 1993 1994 $ 1994 1995 1995 1996 1996 1997 1997 1998 1998 1999 1999 2000 2000 2001 2001 2002 The tax levies are such that if collected in full they, together with estimated collections of special assessments and other revenues herein pledged for the payment of the Bonds, will produce at least five percent (5%) in excess of the amount needed to meet when due', the principal and interest payments on the Bonds.- The tax levies shall be irrepealable so long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 18. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Debt Service Account is ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 19. Certificate of Registration. The Administrator is hereby directed to file a certified copy of this resolution with the County Auditor of Dakota County, Minnesota, together with such other information as he or she shall require, and to obtain the County Auditor's certificate that the Bonds have been entered in the County Auditor's Bond Register, and that the tax levy required by law has been made. 20. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and 221921 18 records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City as to the facts recited therein. 21. Negative Covenant as to Use of Proceeds and Improvements. The',City hereby covenants not to use the proceeds of the Bonds or to'',use the Improvements, or to cause or permit them to be used, or to enter into any deferred payment arrangements for the cost of the Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. 22. Tax -Exempt Status of the Bonds; Rebate. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation (1) requirements relating to temporary periods for investments, (2) limitations on amounts invested at a yield greater than the yield on the Bonds, and (3) the rebate of excess investment earnings to the United States if the Bonds (together with other obligations reasonably expected to be issued and outstanding at one time in this calendar year) exceed the small -issuer exception amount of $5,000,000. For purposes of qualifying for the exception to the federal arbitrage rebate requirements for governmental units issuing $5,000,000 or less of bonds, the City hereby finds, determines and declares that (1) the Bonds are issued by a governmental unit with general taxing powers, (2) no Bond is a private activity bond, (3) ninety -.five percent (95%) or more of the net proceeds of the Bonds are to be used for local governmental activities of the City (or of a governmental unit the jurisdiction of which is entirely within the jurisdiction of the City), and (4) the aggregate face amount of all tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities thereof, and all entities treated as one issuer with the City) during the calendar year in which the Bonds are issued and outstanding at one time is not reasonably expected to exceed $5,000,000, all within the meaning of Section 148 (f) (4) (D) of the Code. 221921 19 23. Designation of Qualified Tax -Exempt Obligations. In order to qualify the Bonds as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the City hereby makes the following factual statements and representations: (a) the Bonds are issued after August 7, 1986; (b) the Bonds are not "private activity bonds" as defined in Section 141 of the Code; (c)the City hereby designates the Bonds as "qualified tax-exempt obligations" for purposes of Section 265(b)(3) of the Code; (d)' the reasonably anticipated amount of tax-exempt obligations (other than private activity bonds, treating qualified 501(c)(3) bonds as not being private activity bonds) which will be issued by the City (and all entities treated as one issuer with the City, and all subordinate entities whose obligations are treated as issued by the City) during this calendar year 1992 will not exceed $10,000,000; and (e) not more than $10,000,000 of obligations issued by the City during this calendar year 1992 have been designated for purposes of Section 265(b)(3) of the Code. The City shall use its best efforts to comply with any federal procedural requirements which may apply in order to effectuate the designation made by this paragraph. 24. Defeasance. When all Bonds have been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered holders of the Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond should not be paid when due, it may nevertheless be discharged by depositing with the Bond Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to any prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. 221921 20 The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, subject to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 25. Compliance with Reimbursement Bond Recxulations. The provisions hereof are intended to establish and provide for the City's compliance with United States Treasury Regulations Section 1.103-18 (the "Reimbursement Regulations") applicable to the "reimbursement proceeds" of the Bonds, being those portions thereof which will be used by the City to reimburse itself for any expenditure which the City paid or will have paid prior to the issuance of the Bonds (an "Expenditure"). The City hereby certifies and/or covenants as follows: (a) On or before the date of payment of each Expenditure, the City (or person designated to do so on behalf of the City) made or will have made a written declaration of the City's official intent (a "Declaration") which effectively (i) states the City's intention and reasonable expectation to reimburse itself for the payment of the Expenditure out of the proceeds of a subsequent borrowing; (ii) gives a general and functional description of the property, project or program to which the Declaration relates and/or identifies a specific fund or account of the City and the general functional purpose thereof from which the Expenditure was to be paid (collectively the "Project"); (iii) states the maximum principal amount of debt expected to be issued by the City for the purpose of financing the Project; and (iv) states specifically that the Declaration is a declaration of official intent under Treasury Regulations Section 1.103-18; provided, however, that no such Declaration shall necessarily have been made with respect to "preliminary expenditures" for the Project, defined in the Reimbursement Regulations to include engineering or architectural expenses and similar prefatory 221921 21 expenses, which in the aggregate do not exceed 20% of the "issue price" of the Bonds. (b) Notwithstanding the foregoing provisions of paragraph (a) above, with respect to Expenditures made by the City prior to March 2, 1992, the City hereby represents that there exists objective evidence, within the meaning of the Reimbursement Regulations, that at the time the Expenditure was paid the City expected to reimburse the cost thereof with the proceeds of a borrowing. (c) As of the date of each Declaration, there were not and were not thereafter expected to become available sources of City funds which were or were expected to be dedicated or otherwise available on a long-term basis to provide financing for the Expenditure or Project. (d) -.-Each Declaration was made a part of the publicly available official books, records or proceedings of the City and was continuously available for inspection by the general public at the City Hall during regular City hours beginning not later than 30 days after the making of the Declaration and continuing through the date of issuance of the Bonds, as required by the Reimbursement Regulations. (e) Each Expenditure, other than the costs of issuing the Bonds, is a capital expenditure, that is, a cost of a type that is properly chargeable to a capital account (or would be with a proper election) under general federal income tax principles. (f) The "reimbursement allocation" described in the Reimbursement Regulations for each Expenditure shall and will be made forthwith following (but not prior to) the issuance of the Bonds and in all events within the period ending on the date which is the later of one year after payment of the Expenditure or one year after the date on which the Project to which the Expenditure relates is first placed in service. (g) Each such reimbursement allocation will be evidenced by an entry on the official books or records of the City maintained for and in 221921 22 connection with the Bonds and will specifically identify the actual prior Expenditure or Project or, in the case of the reimbursement of a particular fund or account described in the applicable Declaration, the fund or account from which the Expenditure was paid. (h) The City is unaware of any facts or circumstances which would cause it to question the reasonability or accuracy of the content of this paragraph or of any of the Declarations, or its compliance with any of the covenants herein or therein, including without limitation the City's failure to issue qualifying reimbursement bonds for costs for which it has made declarations of official intent, absent extraordinary and unforeseeable circumstances of the kind described in the Reimbursement Regulations. 26. Severability. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the remaining provisions of this resolution. 27. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. The motion for the adoption of the foregoing resolution was duly seconded by member and, after a full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: adopted. 221921 Whereupon said resolution was declared duly passed and 23 STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF ROSEMOUNT I, the undersigned, being the duly qualified and acting Clerk of the City of Rosemount, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and held on the date therein indicated, insofar as such minutes relate to considering bids for, and awarding the sale of, $895,000 General Obligation Improvement Bonds, Series 1992A of said City. WITNESS my hand this day of , 1992. Clerk 221921 24 SALE: August 4, 1992 Moody's Rating: A Interest Net Interest True Interest Bidder Rates Price Cost Rate FBS INVESTMENT SERVICES, INC. 3.35% 1994 $888,287.50 $238,720.21 4,8934% NORWEST INVESTMENT SERVICES, 3.75% 1995 INCORPORATED 4.00% 1996 Miller, Johnson & Kuehn, Inc. 4.25% 1997 4.50% S P R I N GSTED 222 South Ninth Street 4.70% 1999 Suite 2000 PUBLIC FINANCE ADVISORS Minneapolis, MN 55 55402-3368 2001 (612) 333-9177 2002 Fax: (612) 333-2363 Home Office 2003 85 East Seventh Place 16655 West Bluemound Road Suite 100 Suite 290 Saint Paul, MN 55101-2143 Brookfield, WI 53005-5935 (612) 223-3000 (414) 782-8222 Fax: (612) 223-3002 Fax: (414) 782-2904 4.00% 6800 College Boulevard Bigelow, Incorporated Suite 600 1997 Overland Park, KS 66211-1533 4.50% (913) 345-8062 Moore, Juran and Company, Incorporated Fax: (913) 345-1770 1999 1800 K Street NW 4.95% Suite 831 Washington, DC 20006-2200 2001 (202) 466-3344 5.20% Fax: (202) 223-1362 $895,000 5.30% CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1992A AWARD: FBS INVESTMENT SERVICES, INC. NORWEST INVESTMENT SERVICES, INCORPORATED And Associate SALE: August 4, 1992 Moody's Rating: A Interest Net Interest True Interest Bidder Rates Price Cost Rate FBS INVESTMENT SERVICES, INC. 3.35% 1994 $888,287.50 $238,720.21 4,8934% NORWEST INVESTMENT SERVICES, 3.75% 1995 INCORPORATED 4.00% 1996 Miller, Johnson & Kuehn, Inc. 4.25% 1997 4.50% 1998 4.70% 1999 4.90% 2000 5.00% 2001 5.10% 2002 5.25% 2003 5.40% 2004 PIPER JAFFRAY, INC. 3.25% 1994 $887,392.50 $241,737.50 4.9552% Craig-Hallum, Incorporated 3.65% 1995 Dougherty, Dawkins, Strand & 4.00% 1996 Bigelow, Incorporated 4.25% 1997 John G. Kinnard & Company Incorporated 4.50% 1998 Moore, Juran and Company, Incorporated 4.75% 1999 4.95% 2000 5.10% 2001 5.20% 2002 5.30% 2003 5.50% 2004 (Continued) Interest Net Interest True Interest Bidder Rates Price Cost Rate AMERICAN NATIONAL BANK SAINT PAUL 3.40% 1994 $887,411.00 $243,120.46`+ 4.9873% JURAN & MOODY, INCORPORATED 3.80% 1995 PARK INVESTMENT CORPORATION 4.10% 1996 4.35% 1997 4.55% 1998 4.75% 1999 5.00% 2000 5.10% 2001 5.20% 2002 5.30% 2003 5.45% 2004 CRONIN & COMPANY, INCORPORATED 3.40% 1994 $886,774.95 $243,862.97 5.0064% SMITH BARNEY, HARRIS UPHAM & 3.90% 1995 COMPANY INCORPORATED 4.10% 1996 MARQUETTE BANK MINNEAPOLIS, N.A. 4.30% 1997 4.60% 1998 4.80% 1999 5.00% 2000 5.10% 2001 5.20% 2002 5.30% 2003 5.40% 2004 ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ These Bonds are being reoffered at par. BBI: 5.89 Average Maturity: 5.43 Years