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