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HomeMy WebLinkAbout10.c. 1992B Bond Issue - Authorizing Issuance & Setting Bond SaleEXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: July 21, 1992 AGENDA ITEM: 1992 Bond Issue - Authorizing AGENDA SECTION: Issuance and Setting Bond ale(1992B) New Business PREPARED BY: AGENDA �t�� CJeff May, Finance Director l0 ATTACHMENTS: Council Resolution Springsted AP BY: .Recommendations (See Agenda Item #./0,6) This item is on the agenda for your consideration in authorizing the issuance and settingthe sale of General Obligation Storm Water Revenue Bonds. a bonds are for six projects that are already completed, currently in process or about to proceed. The six projects are Project 206 145th Street Reconstruction from Shannon Parkway to Diamond Path; Project 212 - Diamond Path Improvements; Project 23 West Ridge 4th Addition Project" 176 - Hawkins Pond; Project 197 - Valley Oak Pond Outlet; and the Birger Pond Easement A quisition(No'Project Number). Bids will be opened Tuesday, August 4, 1992, at 12:30 P.M., Central Time, at the offices of Springsted Incorporated. The bids will be tabulated' there, and then consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day. Settlement of the Bond will occur within 40 days following the date of the award. RECOMMENDED ACTION: Motion to adopt A RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $1,525,000 GENERA OBLIGATION STORM WATER REVENUE BONDS, SERIES 199.2B. COUNCIL ACTION: , This item is on the agenda for your consideration in authorizing the issuance and settingthe sale of General Obligation Storm Water Revenue Bonds. a bonds are for six projects that are already completed, currently in process or about to proceed. The six projects are Project 206 145th Street Reconstruction from Shannon Parkway to Diamond Path; Project 212 - Diamond Path Improvements; Project 23 West Ridge 4th Addition Project" 176 - Hawkins Pond; Project 197 - Valley Oak Pond Outlet; and the Birger Pond Easement A quisition(No'Project Number). Bids will be opened Tuesday, August 4, 1992, at 12:30 P.M., Central Time, at the offices of Springsted Incorporated. The bids will be tabulated' there, and then consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day. Settlement of the Bond will occur within 40 days following the date of the award. RECOMMENDED ACTION: Motion to adopt A RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $1,525,000 GENERA OBLIGATION STORM WATER REVENUE BONDS, SERIES 199.2B. COUNCIL ACTION: CTY OF ROSEMOUNT A COUNTY, MINNESOTA SOLUTION 1992 - A RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED SALE OF $1,525,000 GENERAL ',OBLIGATION STORM WATER REVENUE BONDS, SERIES 1992B WHEREAS, the City Council of the City of Rosemount, Minnesota, has heretofore determined that it is necessary and expedient to issue its $1,525,000 General Obligation Storm Water Revenue Bonds, Series 1992B (the "Bonds") to finance the costs of storm water improvement projects within the City; and WHEREAS, the City has retained Springsted Incorporated, in Saint Paul, Minnesota ("Springsted"), as its independent financial advisor and is therefore authorized to sell these obligations by a competitive negotiated sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount, Minnesota, as follows: 1. Authorization; Fin Springsted to soli sale of the Bonds. 2. Meeting; Bid Open time and place sp hereto as Exhibit bids for, and awa Administrator, or and place specifi ings. The City Council hereby authorizes it bids for the competitive negotiated g This City Council shall meet at the ified in the Terms of Proposal attached for the purpose of considering sealed ing the sale of, the Bonds. The is designee, shall open bids at the time in such Terms of Proposal. 3. Terms of Proposal.' The terms and conditions of the Bonds and the negotiation thereof are fully set forth in the "Terms of Proposal'," attached hereto as Exhibit A and hereby approved and made '',a part hereof. 4. Official Statement. In connection with said competitive negotiated sale, the Administrator and other officers or employees of the City are hereby authorized to cooperate with Springsted and participate in the preparation of an official statement, for the Bonds, and to execute and deliver it on behalf of the City upon its completion. ADOPTED this ATTEST: 21st day of July, Susan M. Walsh, CitylClerk Motion by: Voted in favor: Voted Against• 1992. E.B. McMenomy, Mayor Seconded by: Exhibit A THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $1,525,000 ITY 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 1 , 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 I,August 1 of each year, commencing August 1, 1993. Interest will be computed on the basislof 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 beat 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 jwithin the City. 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 is 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 this 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 j 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 Iof 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 team 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 BY ORDER OF THE CITY COUNCIL /s/ Susan M. Walsh Clerk P Recommendations For City of Rosemount, Minnesota $895,000 General Obligation Improvement Bonds, Series 1992A $1,525,000 General Obligation Storm Water Revenue Bonds, Series 1992B Study No. R0704C3 SPRINGSTED Incorporated July 16, 1992 SPRINGSTED PUBLIC FINANCE ADVISORS Home Office 85 East Seventh Place Suite 100 Saint Paul, MN 55101-2143 (612) 223-3000 Fax: (612) 223-3002 July 16, 1992 Mayor Edward B. McMenomy Members, City Council Mr. Stephan Jilk, Administrator Mr. Jeff May, Finance Director City of Rosemount 2875 - 145th Street West Rosemount, MN 55068 222 South Ninth Street Suite 2825 Minneapolis, MN 55402-3368 (612) 333-9177 Fax: (612) 333-2363 16655 West Bluemound Road Suite 290 Brookfield, WI 53005-5935 (414) 782-8222 Fax: (414) 782-2904 6800 College Boulevard Suite 600 Overland Park, KS 66211-1533 (913) 345-8062 Fax: (913) 345-1770 1800 K Street NW Suite 831 Washington, DC 20006-2200 (202) 466-3344 Fax: (202) 223-1362 Re: Recommendations for the Issuance of: $895,000 General Obligaltion Improvement Bonds, Series 1992A $1,525,000 General Obligation Storm Water Revenue Bonds, Series 1992B We respectfully request your consideration of our recommendations for the issuance of these bonds according to the terms':i and conditions set forth in the attached proposed Terms of Proposal. Each issue will be discussed separately, with items common to both to follow: $895,000 General Obligation Improvement Bonds, Series 1992A The improvement bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475, with proceeds to be used to finance three improvement projects within the City. The composition of the issue is shown in Appendix I. These bonds will be general obligations of the City for which it pledges 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. Appendix II is the projection of assessment income. Special assessments totaling an estimated $640,378 of principal are expected to be filed on or before October 1, 1993, for first collection in 1994. The assessments will be spread over ten years, requiring equal annual payments of principal with interest on the unpaid balance at a rate of approximately 2.0% over the expected net interest rate on the bonds. We have assumed a rate of 7.30% for the projection of assessment income. We have not made any projections of prepayments or delinquencies of special assessments and are assuming for all structuring purposes that assessments will be collected as scheduled. Appendix III is the recommended cash flow for the bond issue. The bond issue has been structured around the projected assessment income (Column 11) as developed in Appendix II. The bonds will be dated September 1, 1992, and will mature each February 1 from 1994 through 2004. Columns 1 through 6 show the years and amounts of principal and estimated interest due and payable on these bonds. Capitalized interest in the amount of $63,550, shown in Column 7, has been included in the issue to cover interest due from the dated date of the bonds to February 1, 1994. City of Rosemount, Minnesota July 16, 1992 The interest rates shown in Column 4 are current rates and are subject to change between now and the sale date. Column 8 shows the net levy required to pay 100% of debt service and Column 9 shows the 105% levy requirement as set forth by State statute. You will recall the 5% overlevy is a protection to the bondholder and to the City in the event 100% of the expected revenues are not achieved. Column 10 shows the MSA contributions allotted for the 145th Street project. The City expects to receive this money in 1993 which will then be allocated to payment of 1994 debt service. Column 11 shows the projection of assessment income from Appendix II and Column 12 shows the combined income from Columns 10 and 11. Column 13 shows a small net requirement in some years to be funded by a levy or other City funds, with Column 14 illustrating the projected annual surplus of assessment income. The August 1, 1993 and February 1, 1994 interest payments on the bonds will be made from capitalized interest. Thereafter,] each August 1 interest payment and the following February 1 principal and interest payment is expected to be payable from assessment income. As with all improvement issues, the timing of principal repayments assumes that assessments will be filed in the years and amounts estimated. Any deviation from these assumptions may result in a cash shortfall Included in the principal amount of the issue is a provision for discount bidding in the amount of $10,140. This discount provides the underwriters with all or part of their profit and/or working capital for purchasing the issue. It permits them to reoffer the bonds at or close to a par reoffering scale. The discount, representing approximately $11 per bond, is a successful marketing tool the City has used in all past bond issues and we recommend its continued use here. We recommend the bonds maturing on or after February 1, 2001, be callable on February 1, 2000 and any day thereafter at a price of par and accrued interest. This call feature, representing $255,000, or approximately 28% of the bond issue, will permit a prepayment of those bonds should substantial prepayments of assessments be received or if future market conditions warrant a refinancing of this issue. With the inclusion of the provision for discount bidding, this call feature should hot impair the marketability of these bonds. $1,525,000 General Obligations Storm Water Revenue Bonds, Series 1992B The Storm Water Bonds are being issued pursuant to Minnesota Statutes, Chapters 444 and 475. Proceeds of this issue will be used to finance improvements to the City's storm water system. The composition of this issue is as follows: Project Costs: 145th Street $ 34,000 Diamond Path 550,000 Valley Oak Pond 270,000 West Ridge 4th 13,000 Hawkins Pond 300,000 Birger Pond 322,000 Total Project Costs $1,489,000 Issuance Costs 19,430 Allowance for Discount Bidding 18.300 Subtotal $1,526,730 Less: Estimated Investment Earnings (1,730) Net Bond Issue $1,525,000 Page 2 City of Rosemount, Minnesota July 16, 1992 In addition to its general obligation pledge, the City also pledges net revenues of the storm water utility for payment of the storm water bonds. The creation of the City's storm water utility was approved by the Utility Commission on March 9, 1992 and adopted by the City Council on March 17, 1992. The utility sent out its first billing on July 1, 1992. Attached as Appendix IV is our recommended maturity schedule for this issue. The bonds are dated September 1, 1992 and:i mature each February 1, 1994 through 2008. Based on preliminary pro forma income statements prepared by the City, projected revenues of the utility expected to be available for debt service are shown in Column 7, with the calculation of these projections as shown below. 1992 1993 1994 1995 1996 Revenues $140,000 $449,880 $457,960 $466,400 $474,800 Expenditures (125,200 (125,200) (125,200 125 200 125200 Net Revenues Available for Debt Service $ 14,800 $324,680 $332,760 $341,200 $349,600 Projected revenues available for'debt service as shown in Column 7 of Appendix IV to pay the 1994 maturity are slightly higher as they include 6 quarters of revenue; two quarters of revenue which will be collected in 1992 and a full year (four quarters) of revenues to be collected in 1993 to pay 1994 debt service. Additionally, the assessable portion of the Diamond Path project is also being financed with this issue and not the improvement bonds since the assessments are less than 20% of the project. 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 bonds. This added revenue stream, shown in Appendix V, is incorporated in Column 8 of Appendix IV. Column 9 shows the projected ,net income available for debt service with an annual surplus shown in Column 10. Column! 11 shows the ratio between the expected annual surplus of revenues available for debt service over the actual debt service of the bonds. This serves the purpose of illustrating that there is additional capacity to bond, if need be, for other storm water utility projects in the future. We have also included a discount feature in this issue of $18,300, or approximately $12 per bond. We recommend the storm water bonds maturing on or after February 1, 2001 be callable on February 1, 2000 and any day thereafter at a price of par and accrued interest. This represents approximately 65% of the issue. Common To Both Issues We recommend you authorize $pringsted to apply for a rating of these bonds from Moody's Investors Service of New York. The City's current rating from Moody's is "A" and we expect this rating will continue with these issues. Moody's will bill the City directly for the rating. These issues will be subject to federal arbitrage rebate requirements. The 1986 Tax Reform Act and the 1989 amendments interjected and modified rebating arbitrage profits to the Treasury. Generally speaking, all arbitrage profits (the yield difference between the earnings on the investments and the yield on the bonds) must be rebated to the Treasury. There are some exemptions to this rebate requirement which include: (i) A small issuer exemption if the bonds are for governmental purposes and the issuer reasonably expects to issue not more than $5,000,000 tax-exempt bonds during the calendar year. Page 3 City of Rosemount, Minnesota July 16, 1992 (ii) A six-month exemption if''all of the proceeds are expended within six months of bond issuance. (iii) A two-year expenditure test if at least 75% of the proceeds of the issue are used for construction and if 10% is within six months, 45% within 12 months, 75% within 18 months and 100% spend) within two years. If it is reasonably required that a retainage be maintained to enforce', the completion of a contract, up to 5% of the proceeds may be retained for an additional 12 months. Net proceeds subject to these expenditure tests include investment earnings on the original bond proceeds. It is our understanding that the City may issue bonds later this year to finance the construction of a banquet hall and theater facility in conjunction with the National Guard's construction of an armory in the fall of this year. At this time, the estimated issuance is $1,300,000 which, together with these issues, would still afford the City the "small issuer" status. There is the further prospect of issuing bonds, in an amount yet to be determined, to finance the construction of an ice arena',in the City. While this is tentative, such issuance would more than likely cause the City to go over the $5,000,000 threshold and become subject to arbitrage reporting and rebate requirements. If the City does issue over $5,000,000 of tax-exempt bonds in calendar year 1992, the expenditure test for construction in item (iii) above must be met in order to qualify for these exemptions. The Tax Reform Act also restricts the ability of banks to deduct tax-exempt interest as a carrying expense under certain circumstances in calculating their tax liability. However, these bonds will be "qualified obligations" which can be included in a bank's calculation of interest deduction. This qualification should assist in attracting bidders for your issues. All bonds issued after March 2, 1992 are now subject to reimbursement regulations. These regulations provide specific directions as to the ability of the City to reimburse themselves for expenditures made prior to the issuance of bonds. All tax-exempt issues settled after March 2, 1992 are subject to these regulations. There are three major areas of the regulations which set forth the following restrictive provisions: 1. They prohibit obligations issued after March 2, 1992 from being used to reimburse expenditures made before March 2, 1989 or to reimburse expenditures paid on projects which have been placed in service for more than one year prior to the date of issuance. 2. There are transition rules under which obligations issued after March 2, 1992 may be used to ! reimburse expenditures made after September 8, 1989 and before March 2, 1992. There must be "objective evidence" that at the time the expenditures were made, the issuer intended to reimburse itself from the proceeds of a borrowing and that the expectation was reasonable based on historical financepractices. The reimbursement must occur within one year of the expenditure or within one year from the time a property or project was placed in service, Iif later. 3. They prohibit reimbursement from bond proceeds from expenditures made after March 2, 1992 unless: (a) the issuer declares in the public record official intent to reimburse expenditures with bond proceeds and describes the nature of the borrowing, the project or fund from which the expenditure would be made, and states the maximum principal amount of debt expected to be issued; (b) a reimbursement i$ made before the later of one year after the date the Page 4 'City of Rosemount, Minnesota July 16, 1992 expenditure was made or one year after the date on which the project was placed in service;' (c) the expenditure was a capital expenditure under general federal income tax principals generally including costs incurred to acquire, construct or improve land, buildings or equipment. Preliminary expenditures for professional fees and studies are exempt from the official intent requirement if the amount of the l preliminary expenses does not exceed 20% of the issue price of the reimbursement borrowing for the project. Preliminary expenditures are not exempt from the one-year reimbursement period requirement. We recommend these bonds be loffered for sale on Tuesday, August 4, 1992 with bids received at the offices of Springsted Incorporated at 12:30 P.M. Subsequent to the proposal receipts, we will prepare a tabulation and', present the results to the City Council at 7:30 P.M. that same evening for consideration of award. A representative of Springsted will attend your meeting to provide recommendations as to the acceptability of proposals received. Respectfully submitted, SPRINGSTED Incorporated mmr Page 5 City of Rosemount, MN G.O. Improvement Bonds, Series 1992A D Less: V M - Z o � � Less: Sanitary Less: Net Total Water Core Sewer Core Other Project Issuance Allowance Capitalized Project Assessable MSA City Project Cost Funds Funds Funds Costs Costs Discount Interest Costs Costs Allotments Share (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) 145th St. reconstruction $421,000 $49,000 $0 $50,000 $322,000 $5,832 $4,056 $25,420 $357,308 $107,500 $222,000 $27,808 West Ridge 4th 273,000 0 37,000 0 236,000 4,228 2,940 18,430 261,598 258,658 0 $2,940 Shannon Hilts 3rd 250-000 0- 0 -- 0 250,000 4,520 3,144 19,700 -X77,364 -- 274,220 0 - _ $3,144 Totals $944,000 $49,000 $37,000 $50,000 $808,000 $14,580 $10,140 $63,550 $896,270 $640,378 $222,000 $33,892 Project Costs $896,270 Less Investment Earns. (1,270) D V M - Z o � � x rn - City of Rosemount, MN G.O. Improvement Bonds, Series 1992A PROJECTED ASSESSMENT INCOME Prepared July 15, 1992 By SPRINGSTED Incorporated Page 1 of 2 145th Street Reconstruction Shannon Hills 3rd West Ridge 4th Filing Date: 10/ 1/1993 Filing Date: 10/ 1/1993 Filing Date: 10/ 1/1993 Filing Collect Interest Interest Interest Year ----- Year ------- Principal --------- @ 7.300% -------- Total ----- Principal --------- @ 7.300% -------- Total ----- Principal --------- @ 7.300% -------- Total ----- 1993 1994 10,750 9,826a 20,576 27,422 25,064b 52,486 25,866 23,641c 49,507 1994 1995 10,750 7,063 17,813 27,422 18,016 45,438 25,866 16,994 42,860 1995 1996 10,750 6,278 17,028 27,422 16,014 43,436 25,866 15,106 40,972 1996 1997 10,750 5,493 16,243 27,422 14,013 41,435 25,866 13,217 39,083 1997 1998 10,750 4,709 15,459 27,422 12,011 39,433 25,866 11,329 37,195 1998 1999 10,750 3,924 14,674 27,422 10,009 37,431 25,866 9,441 35,307 1999 2000 10,750 3,139 13,889 27,422 8,007 35,429 25,866 7,553 33,419 2000 2001 10,750 2,354 13,104 27,422 6,005 33,427 25,866 5,665 31,531 2001 2002 10,750 1,570 12,320 27,422 4,004 31,426 25,866 3,776 29,642 2002 2003 10,750 785 11,535 27,422 2,002 29,424 25,864 1,888 27,752 TOTALS 107,500 45,141 152,641 274,220 115,145 389,365 258,658 108,610 367,268 a) Includes interest from filing b) Includes interest from filing c) Includes interest from filing date to 12/31/1994. date to 12/31/1994. date to 12/31/1994. City of Rosemount, MN G.O. Improvement Bonds, Series 1992A PROJECTED ASSESSMENT INCOME - - - - T 0 T A L - - - - Prepared July 15, 1992 By SPRINGSTED Incorporated Page 2 of 2 Filing Collect Year ----- Year ------- Principal --------- Interest -------- Total ----- 1993 1994 64,038 58,531 122,569 1994 1995 64,038 42,073 106,111 1995 1996 64,038 37,398 101,436 1996 1997 64,038 32,723 96,761 1997 1998 64,038 28,049 92,087 1998 1999 64,038 23,374 87,412 1999 2000 64,038 18,699 82,737 2000 2001 64,038 14,024 78,062 2001 2002 64,038 9,350 73,388 2002 2003 64,036 4,675 68,711 TOTALS 640,378 268,896 909,274 'U W W City of Rosemount, MN Prepared July 15, 1992 G.O. Improvement Bonds, Series 1992A By SPRINGSTED Incorporated $895,000 Dated: 9- 1-1992 Mature: 2- 1 First Interest: 8- 1-1993 Total Capital- Net MSA Projected Cumulative Year of Year of Principal ized Levy 105% Allotments Assessment Total Net Annual Levy Mat. Principal Rates Interest 3 Interest Interest Required of Total Income Income Requirement Surplus (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) 1992 1994 215,000 3.80% 59,622 274,622 63,550 211,072 221,626 222,000 0- 222,-000- - 0 3-7-4 - 1993 1995 85,000 4.10% 33,916 118,916 0 118,916 124,862 0 122,569 122,569 1,919 0 1994 1996 70,000 4.35% 30,431 100,431 0 100,431 105,453 0 106,111 106,111 0 658 1995 1997 70,000 4.60% 27,386 97,386 0 97,386 102,255 0 101,436 101,436 161 0 1996 1998 70,000 4.80% 24,166 94,166 0 94,166 98,874 0 96,761 96,761 2,113 0 1997 1999 65,000 5.00% 20,806 85,806 0 85,806 90,096 0 92,087 92,087 0 1,991 1998 2000 65,000 5.20% 17,556 82,556 0 82,556 86,684 0 87,412 87,412 0 728 1999 2001 65,000 5.35% 14,176 79,176 0 79,176 83,135 0 82,737 82,737 0 0 2000 2002 65,000 5.50% 10,698 75,698 0 75,698 79,483 0 78,062 78,062 0 0 2001 2003 65,000 5.65% 7,123 72,123 0 72,123 75,729 0 73,388 73,388 1,441 0 2007. 2004 60,000 5.75% 3,450 63,450 0 63,450 66,623 0 68,711 68,711 0 2,088 TOTALS: 895,000 249,330 1,144,330 63,550 1,080,780 1,134,820 222,000 909,274 1,131,274 5,634 Bond Years: 4,857.92 Annual Interest: 249,330 Avg. Maturity: 5.43 Plus Discount: 10,140 Avg. Annual Rate: 5.132% Net Interest: 259,470 T.I.C. Rate: 5.334% N.I.C. Rate: 5.341% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. V m z v City of Rosemount, MN G.O. Storm Water Revenue Bonds, Series 19928 $1,525,000 Prepared July 15, 1992 By SPRINGSTED Incorporated Dated: 14,760.42 ' 9- 1-1992 837,865 Avg. Maturity: 9.68 Plus Discount: 18,300 Avg. Annual Rate: 5.676% Net Interest: Mature: T.I.C. Rate: 2- 1 N.I.C. Rate: 5.800% First Interest: 8- 1-1993 Total Projected Projected Year of Year of Principal Revenues Assessment Total Annual Coverage Revenue Mat. Principal Rates Interest 6 Interest Income Income Surplus Ratio (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (t1) 1992 1994 30,000 3.80% 117,048 147,048 339,480 0 339,480 192,432 2.309 1993 1995 60,000 4.10% 81,482 141,482 332,760 2,372 335,132 193,650 2.369 1994 1996 75,000 4.35% 79,022 154,022 341,200 2,042 343,242 189,220 2.229 1995 1997 85,000 4.60% 75,759 160,759 349,600 1,949 351,549 190,790 2.187 1996 1998 90,000 4.80% 71,849 161,849 349,600 1,855 351,455 189,606 2.171 1997 1999 95,000 5.00% 67,529 162,529 349,600 1,762 351,362 188,833 2.162 1998 2000 95,000 5.20`is 62,779 157,779 349,600 1,668 351,268 193,489 2.226 1999 2001 100,000 5.35% 57,839 157,839 349,600 1,574 351,174 193,335 2.225 2000 2002 110,000 5.50% 52,489 162,489 349,600 1,481 351,081 188,592 2.161 2001 2003 115,000 5.65% 46,439 161,439 349,600 1,387 350,987 189,548 2.174 2002 2004 120,000 5.75% 39,941 159,941 349,600 1,294 350,894 190,953 2.194 2003 2005 125,000 5.85% 33,041 156,041 349,600 0 349,600 191,559 2.212 2004 2006 135,000 5.95% 25,728 160,728 349,600 0 349,600 188,872 2.175 2005 2007 140,000 6.05% 17,695 157,695 349,600 0 349,600 191,905 2.217 2006 2008 150,000 6.15`is 9,225 159,225 349,600 0 349,600 190,375 2.196 TOTALS: 1,525,000 837,865 2,362,865 5,208,640 17,384 5,226,024 Bond Years: 14,760.42 ' Annual Interest: 837,865 Avg. Maturity: 9.68 Plus Discount: 18,300 Avg. Annual Rate: 5.676% Net Interest: 856,165 T.I.C. Rate: 5.795% N.I.C. Rate: 5.800% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. The Coverage Ratio is Total Income divided by Total Debt P M m Z v M1 APPENDIX V City of Rosemount, Minnesota Prepared July 15, 1992 G.O. Storm Water Revenue Bonds, Series 19926 By SPRINGSTED Incorporated PROJEOED ASSESSMENT INCOME Diamond Path #212 Filing Date: 10/ 1/1993 Filing Collect Interest Year Year Principal @ 7.800% Total 1993 1994 1;200 1,172a 2,372 1994 1995 1`200 842 2,042 1995 1996 1;200 749 1,949 1996 1997 1,200 655 1,855 1997 1998 10200 562 1,762 1998 1999 1,200 468 1,668 1999 2000 1;200 374 1,574 2000 2001 11:200 281 1,481 2001 2002 11200 187 1,387 2002 2003 1;200 94 1,294 TOTALS 12,000 5,384 17,384 a) Includes interest from filing date to 12/31/1994. Page 11 THE CITY HAS AUTHORIZED $PRINGSTED 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. Proposal's shall be accompanied by a Good Faith Deposit ("Deposit") in Page 12 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, iand 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 Suret f Bond may be drawn by the City to satisfy the Deposit requirement. The City will dep osit the check of the purchaser, the amount of which will be deducted at settlement and no i iterest 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 Q/o. 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. Page 13 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 S int 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, shell 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 Page 14 THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $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. Page 15 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, itl 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. UMI -11V 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 Page 16 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 S iint Paul and Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of CL stomary closing papers, including a no -litigation certificate. On the date of settlement paymen 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 BY ORDER OF THE CITY COUNCIL /s/ Susan M. Walsh Clerk Page 17