HomeMy WebLinkAbout2. 1992 Bond Issue - Authorizing Issuance & Setting Bond Sale (1992C)EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: October 13, 1992
AGENDA ITEM:
1992 Bond Issue - Authorizing
AGENDA SECTION:
Issuance and
Setting Bond Sale(1992C)
New Business
PREPARED BY:
AGENDA NO. 0
Jeff May, Finance
Director
ATTACHMENTS:
Memo from 10/6 Meeting, Council
AP V BY:
Resolution,
Springsted Recommendations
IV v
This item is on the agenda for your consideration in authorizing
the issuance and setting the sale of General Obligation Community
Center Bonds, Series 1992C. These bonds are for the portion of
the National Guard Armory upgrades to the Banquet Facility and the
Theatre that were approved by referendum approval in February of
1991.
Bids will be opened Tuesday, October 27, 1992, at 11:00 A.M.,
Central Time, at the offices of Springsted Incorporated. The bids
will be tabulated there, and then consideration for award of the
Bonds will by the City Council at 8:00 P.M., Central Time, of the
same day.
Settlement of the Bonds willoccurwithin 40 days following the
date of the award.
Also, Council must take action to authorize the use of reserves for
the buydown amount needed for the Port Authority issue. This is
discussed in the attached memo from the 10/6 meeting. The final
amount that is needed is $236,310, not the $300,000 to $400,000
that was addressed in the memo. We are proposing to use a
combination of the Paid -Up Debt Sery Bond Fund($36,310)_and the
5 -Year CIP Program Fund($200,000).
RECOMMENDED ACTION:
Motion to authorize the transfer of funds for the buydown of the Port
Authority issue, Series 1992E: from the Paid -Up Debt Sery Bond Fund
the amount of $36,310 and from the CIP Fund the amount of $200,000.
Motion to adopt A RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED
SALE OF $1,080,000 GENERAL OBLIGATION COMMUNITY CENTER BONDS,
SERIES 1992C.
COUNCIL ACTION:
�iiy of (Rosemount -
PHONE (612) 423.4411 2675 - 145th Street West. Rosemount, Minnesota MAYOR
FAX (612) 423.5203 Mailing Address: Edward S. McMenomy
P.O. Box 510, Rosemount, Minnesota 55068.0510 COUNCILMEMBERS
Sheila Kiessen
James (Rets) Steals
Harry Willcox
Dennis Wippermann
DATE: October 1 1992
ADMINISTRATOR
� Stephan Jilk
TO: Mayor McMenomy
Council Members Klassen, Staats, Willcox & Wippermann
FROM: Jeff May, Finance Director
SUBJECT: Upcoming Bond Issues
As explained in the accompanying green sheet, this matter
pertains to the issues that are confronting us as we are
preparing to issue debt for a number of projects, most notably
the National Guard Armory and all of its enhancements. The debt
will be issued in three separate issues, two issued by the City
and one issued through the Port Authority. The three issues are
as follows:
1) General Obligation Community Center Bonds, Series 19920
2) General Obligation Improvement Bonds, Series 1992D
3) General Obligation Municipal Building Bonds, Series 1992E
Issues (1) & (2) will be issued by the City and (3) will be
issued by the Port Authority. The Series 1992D issue is for
public improvement projects. This is a fairly straightforward
issue which consists of the following projects: (1) Project
232 - O'Leary's Hills 5th Addition; (2) Project 233 — Section 31
Trunk Sanitary Sewer Improvements Project; (3) Project 234
Shannon Hills 4th Addition; and (4) Project 237 - National Guard
Armory Water Improvements Project. All four of these projects
qualify as statute 429 projects, which means that at least 20% of
the total project costs will be assessed. The balance of the
amounts to be financed will be recovered through the core funds.
The complexities of the other two issues, the Series 1992C and
the Series 1992E issues, are the driving reasons behind the
delays in the requests for authorization for issuance for these
bonds. Originally, the authorization for issuance was scheduled
for September 29th. It was then pushed back to October 6th, and
has now been pushed back to October 13th.
Series 1992C is the debt to be issued for the enhancements to the
banquet facility and the theatre for the Armory. This funding
was approved by a referendum vote in February of 1991. In
itself, this would be a fairly routine issue that would be
recovered through levies. As you are all aware, the bids for
this project came in significantly higher than anticipated, some
(Sverylkings Coming up RosemounlY
t= rKVCtltl pBDl�
Page 2
$554,000 higher. This problem was dealt with by issuing the cost
overruns as part of the Port Authority debt, Series 1992E. The
Port Authority would then lease back to the City the two
facilities and the City would make those lease payments to the
Port Authority through the excess funds available from the two
special Armory levies available.
These two levies, one enacted by State special legislation for
$95,000 a year and the other through an existing statute based on
a percentage of the City's total valuation(approximately $30,000
for 1992), are primarily in place to make the City's 12.5%-
portion
2.5%portion of the basic Armory project being funded through the
National Guard. Because of the lower bids received on the basic
Armory portion of the project, only about $90,000 will be needed
for our annual payment to the National Guard. This frees up
approximately $35,000 to be utilized by the City to make the
lease payments to the Port Authority for that portion of the
Series 1992E issue. The only problem is, that after adding
issuance and discount costs and using a conservative interest
rate, the $35,000 will not be sufficient to cover those payments.
Further compounding this is the fact that we cannot include as
part of our regular budget or tax levy an amount to include for
lease payments to the Port Authority and still issue the debt as
General Obligation debt. Therefore, we must buy down or put cash
up front to reduce the $554,000 to an amount that can be leased
back at the $35,000 a year. We are estimating that this buy down
amount will be between $50,000 and $150,000.
The other two portions of the Series 1992E issue are for the
relocations of the businesses along Highway 3 that are adjacent
to the Armory site and for the construction of a multipurpose
arena. The relocation debt amount will be repaid through tax
increment dollars and there seems to be no problems with this.
The multipurpose arena debt will be repaid through revenues from
the operations of the facility. Here again, there seems to be no
problems with this part of the debt issue.
The last area of concern regards an amount of $253,000 that was
supposed to be included by the National Guard as part of their
debt issue that we would have repaid through those two Armory
levies. This amount included costs for site improvements,
furnishings, the city share of the Highway 3 improvements and the
city share of the water utility improvements regarding the
Armory. Due to an oversight, the National Guard did not include
this amount in with their bond bids and thus, we will have to
fund these dollars. We will not be able to issue debt for this
amount for the same reasons as explained in regards to the
$554,000 cost overruns on the Community Center project.
Therefore, we will have to fund this amount upfront as well.
Page 3
This being the case, we will need to fund somewhere between
$300,000 and $400,000 from cash reserves of the City -The attached
schedules, run by Springsteds(DRAFT ONLY), show the figure to be
$408,620. We are working with different figures and feel that
this draft number will be able to be reduced by a fairly
significant amount. By Tuesday night, we should have some
different options as to where these funds may be drawn from. The
bottom line is that we have approved the contract and cannot stop
the project now. Therefore, we must find a way to make this
work.
I would like to make one
that is regarding our bon
by Moody's via telephone
them for rating. Because
it is the recommendation
consultants, that we set
with Moody's to give them
project. Dan O'Neill, ou
in October for another or
and felt that it may be a
interview with Moody's du
assist us in our presenta
to at SDrinasteds on this
.ast comment about these bond issues and
I rating. Normally, we are interviewed
.n regards to bond issues placed before
of the complexity of the Armory issues,
)f Springsteds, our financial
ip a formal person to person interview
a total presentation of the Armory
consultant will be in New York later
fanization's presentation before Moody's
>propriate to try and arrange an
.ing that week so he would be present to
:ion. All of the people we have talked
matter concur that it would be to our
great advantage to be able to explain, in person, the Armory
project and the great impact it will have on the City of
Rosemount. We would like to discuss your feelings on this at the
Council meeting Tuesday night as well.
If you have any questions before the meeting, do not hesitate to
call Steve or myself so we can have discussion go as smoothly as
possible on Tuesday night.
FROM BRIGGS AND MORGAN ST, PAUL 612 223 6645 (FRI) 10, 09' 92 08:28 /ST, 08:27/ NO, 3360015-402 P, 2
CITY OF ROBF. X0UNT
DAKOTA COUNTY, XMWESOTA
RESOLUTION 1992
A RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTXATED SALE
OF $1,080,000 GENERAL OBLIGATION COMMUNITY CENTER, BONDS]
SERIES 1992C
WHEREAS, the City Council of the City of Rosemount, Minnesota,
has heretofore determined that it is necessary and expedient to
issue its $1,080,000 General Obligation Community Center Bonds,
Series 19920 (the "Bonds") to finance the acquisition and
betterment of a community auditorium and banquet facility 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: Findings. The City Council hereby authorizes
Springsted to solicit bids for the competitive negotiated
sale of the Bonds.
2. Meeting; Bid Opening. This City council shall. Meet at the
time and place specified in the Terms of proposal attached
hereto as Exhibit A for the purpose of considering sealed
bids for, and awarding the sale of, the Bonds. The
Administrator, or his designee, shall open bids at the time
and place specified 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.
226892
FRO14 BRIGGS AND MORGAN ST, PAUL 612 223 6645 (THU) 10, 03' 92 16:04 /ST, 15:44/ NO, 3360015-391 P. 4/17
ADOPTED this 13th day of october, 1992.
ATTEST:
Susan M. Walsh, City Clerk
mf
Motion by:
Voted in favor:
Voted Against:
226892
2
E.B. McMenomy, Mayor
Seconded by:
FROM BRIGGS AND MORGAN ST, PAUL 612 223 6645 (THU) 10, 08' 92 16:05 /ST, 15:44/' N0, 3360015-391 P, 5/17
Exhibit A
THE CITY HAS AUTHORIZED SPRINGSTEO INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING 13ASIS:
TERMS OF PROPOSAL
$1,080,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION COMMUNITY CENTER BONDS,
SERIES 1992C
Proposals for the Bonds will be received by the City Administrator or his designee on Tuesday,
October 27, 1992, until 11:00 A.M., Central Time, at the offices of Springsted Incorporated, 65
East Seventh Place, Suite 140, 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 6:00 P.M.,
Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated November 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 $6,400 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 $20,000 1999 $40,000 2004 $50,000 2009 $70,000
1995 $35,000 2000 $45,000 2005 $55,000 2010 $75,000
1996 $35,000 2001 $45,000 2006 $60,000 2011 $80,000
1997 $40,000 2002 $45,000 2007 $60,000 2012 $80,000
1998 $40,400 2003 $$0,000 2408 $65.000 2013 , $90,000
OPTIONAL REDEMPTION
The City may elect on February 1, 2003, and on any day thereafter, to prepay Bonds due on or
after FebrUary 1, 2004. Redemption may be in whole or in part and if in part, apt the option of
the City and In auch 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.
SECURRY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. The proceeds will be used to finance
the acquisition and betterment of a community auditorium and banquet facility,
TYPE OF PROPOSALS
Proposals shall be for not less than $1,065,000 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ('Deposit) in
• i±ROh BRIGGS AND MORGAN ST, FAUN 612 223 6645 (THU)10, 08' 92 16:05 /ST, 15:44, NO, 3360015-391 P. 5/17
the form of a oertfied or cashier's check or a Financial Surety Bond In the amount of $10,800,
payable to the order of the City. K a check is used, it must accompany each proposal. K a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in tete 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. K
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
J
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
shalt be paid by the purchaser.
• FROM', BRIGGS AND MORGAN ST, PAUL 612 223 6645 (THU) 10.08' 92 16:06 /ST, 15:44i" NO, 33600 15-39 1 P. 7/17
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser, Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan,
Professional Association, of Saint haul 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 12:80 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) 223-3010.
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 15c212. 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 50 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 October 13, 1992 BY ORDER OF THE CITY COUNCIL
/s/ Susan M. Walsh
Clerk
4F }
Im
Recommendations
For
City of Rosemount, Minnesota
$1,080,000
General Obligation Community Center Bonds,
Series 1992C
$1,470,000
General Obligation Improvement Bonds, Series 1992D
Study No. R0704V2F3
SPRINGSTED Incorporated
October 8, 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
October 8, 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
120 South Sixth Street
Suite 2507
Minneapolis, MN 55402-1800
(612) 333-9177
Fax: (612) 349-5230
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
1800K Street NW
Suite 831
Washington, DC 20006-2200
(202) 466-3344
Fax: (202) 223-1362
Re: Recommendations for the Issuance of:
$1,080,000 General Obligation Community Center Bonds, Series 1992C
$1,470,000 General Obligation Improvement Bonds, Series 1992D
We respectfully request your consideration of our recommendations for the issuance of these
bonds according to the terms and conditions set forth in the attached proposed 'Terms of
Proposals." Each issue will be discussed separately, with items common to both to follow.
These issues are being sold concurrently with the City of Rosemount Port Authority's
$3,425,000 General Obligation Municipal Building Bonds, Series 1992E.
$1,080,000 General Obligation Community Center Bonds, Series 1992C
These bonds are being issued pursuant to Minnesota Statutes, Chapter 475, and two
referendums authorized by City voters at an election held February 19, 1991. City voters
authorized $440,000 of bonds for the acquisition and betterment of a community auditorium
and $625,000 of bonds for the acquisition and betterment of a community banquet facility, by
votes of 580 (yes) to 476 (no) and 539 (yes) to 518 (no), respectively. We are recommending
the City add to the total voted authorization of $1,065,000 a bond discount totaling $15,000,
which represents approximately $14 per $1,000 of bonds, to be used for discount bidding
purposes. This discount provides the underwriter with working capital and profit for purchasing
the bonds and remarketing them to investors. Minnesota Statutes permits the addition of the
discount over and above the voted authorization in an amount not to exceed 2% of the voted
authorization. To the extent the underwriter does not use the full discount, any unused ,portion
must be placed in the debt service fund and cannot be used for construction.
The bonds will be dated November 1, 1992 and the first interest payment will be due August 1,
1993. Appendix I shows our recommended maturity schedule with principal due February 1,
1994 through 2013. Repayment of this issue will require 20 annual levies, averaging $97,870,
City of Rosemount, Minnesota
October 8, 1992
which will be certified to the County Auditor at 105% of actual debt service in the resolution to
be adopted at the time of award of the bonds.
The City has made a 1992 levy for the bonds in the amount of $98,354. The 1992 levy includes
15 months of interest from the dated date of the issue (November 1, 1992) through February 1,
1994. Subsequent levies will be for only 12 months of principal and interest requirements.
Each levy is expected to be sufficient to pay the August 1 interest payment due in the year of
collection, and the following February 1 payment of principal and interest. This cycle will
continue for the life of the issue.
We recommend the bonds maturing on or after February 1, 2003 be callable on February 1,
2004, and any day thereafter, at a price of par and accrued interest. This call feature,
representing $685,000, or approximately 63% of the bond issue, will permit a prepayment of
those bonds should future market conditions warrant a refinancing of this issue. With the
inclusion of the provision for discount bidding, this call feature should not impair the
marketability of these bonds.
$1,470,000 General Obligation Improvement Bonds, Series 1992D
The improvement bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and
475, with proceeds to be used to finance four improvement projects within the City. The
composition of the issue is shown in Appendix II. You will note the City is contributing $93,095
in cash from its Water Core Funds and $57,000 in cash from its Sewer Core Funds to reduce
the total amount of borrowing.
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 III is the projection of assessment income.
Special assessments totaling an estimated $1,072,250 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 charged 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 6.95% for the projection of assessment income. We have not made
any projections of prepayments or delinquencies and are assuming for all structuring purposes
that assessments will be collected as scheduled.
Appendix IV is the recommended cash flow for the bond issue. The bond issue has been
structured around the projected assessment income (Column 10) as developed in Appendix 111
The bonds will be dated November 1, 1992, and will mature each February 1 from 1995
through 2004. Columns 1 through 6 of Appendix IV show the years and amounts of principal
and estimated interest due and payable on these bonds. Capitalized interest in the amount of
$85,845, 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. 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 received. Column 10 shows the projection of
assessment income from Appendix III and Columns 11 and 12 show the projected annual
contributions from the City's Storm Core Fund and Sewer Core Fund which will be made over
the life of the issue to fund Projects #232 and #233, respectively. Column 13 shows the
combined income from Columns 10, 11 and 12. Column 14 shows the net levy requirement
which represents the City's share of costs of these improvement projects. However, if the City
collects 100% of the assessments as projected, no tax levy will be required because the total
projected income in Column 13 exceeds the net debt service requirements in Column 8.
Page 2
City of Rosemount, Minnesota
October 8, 1992
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 and Storm
and Sewer Core Funds. 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 $14,700, representing approximately $10 per bond.
We recommend the bonds maturing on or after February 1, 2002 be callable on February 1,
2001, and any day thereafter, at a price of par and accrued interest. This call feature,
representing $435,000, or approximately 29% 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 not impair the marketability of these bonds.
Common To Both Issues
As with all issues of the City, we recommend an application be made to Moody's Investors
Service of New York for a rating of these issues. Representatives of the City and a
representative of Springsted Incorporated will be meeting with Moody's in New York on
October 21, 1992 to present these issues and the City of Rosemount Port Authority bonds.
These issues and the Port Authority bonds represent a substantial amount of new borrowing
for the community, and we feel it will be most effective for representatives of the City to meet
face-to-face with Moody's to present all the necessary data and background on the issuance of
these bonds.
In addition to these issues, the City has already issued $2,420,000 of tax-exempt bonds in
calendar year 1992. With the further addition of the Port Authority bonds, the City will be
issuing over $5,000,000 of tax-exempt bonds in 1992 and thus will not be considered a "small
issuer" for arbitrage purposes. However, the City may be exempt from the rebate requirements
if the projects being funded by these issues can meet the two-year expenditure test which is:
at least 75% of the proceeds of each issue are used for construction and if 10% of the
proceeds are spent within six months, 45% within 12 months, 75% within 18 months and 100%
spent 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. (This is an absolute requirement, not reasonable expectations.)
The Tax Reform Act of 1986 restricts the ability of banks to deduct tax-exempt interest as
carrying expense under certain circumstances in calculating the tax liability. Since the City
does not expect to issue more than $10,000,000 of tax-exempt obligations in calendar year
1992, these bonds will be designated as "qualified obligations" which can be included in a
bank's calculations of interest deduction. This designation will make the bonds more attractive
to bidders.
The U.S. Treasury has approved regulations which will significantly alter the ability of the
issuers to utilize tax-exempt bonds or certificates to reimburse themselves for expenditures
made prior to issuance. All tax-exempt bond issues settled after March 2, 1992 are subject to
the new reimbursement regulations. Both of these issues are subject to the reimbursement
regulations. If any money is spent on project costs (with the exception of preliminary
expenditures for professional fees and studies that do not exceed 20% of the issue price) prior
Page 3
City of Rosemount, Minnesota
October 8, 1992
to the receipt of the bond proceeds, at the time of the expenditure, the City must declare its
intent to reimburse itself for the project costs from proceeds of the bonds.
We recommend these bonds be offered for sale on Tuesday, October 27, 1992, with bids
received at the offices of Springsted Incorporated at 11:00 A.M. Subsequent to receipt of the
proposals, we will prepare a tabulation and present the results at the special City Council
meeting at 8:00 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 ✓
sms
Page 4
APPENDDC t
City of
Rosemount, Minnesota
Prepared September
28, 1992
G.O. Community Center Bonds,
Series
1992C By
SPRINGSTED Incorporated
Dated:
11- 1-1992
Mature:
2- 1
First Interest:
8- 1-1993
Total
Year of
Year of
Principal
105%
Levy
Mat.
Principal
Rates
Interest
& Interest of Total
(1)
(2)
(3)
(4)
(5)
(6)
(7)
1992
1994
20,000
3.20%
72,998
92,998
97,648
1993
1995
35,000
3.50%
57,758-
92,758
97,396
1994
1996
35,000
3.80%
56,533
91,533
96,110
1995
1997
40,000
4.10%
55,203
95,203
99,963
1996
1998
40,000
4.30%
53,563
93,563
98,241
1997
1999
40,000
4.50%
51,843
91,843
96,435
1998
2000
45,000
4.70%
50,043
95,043
99,795-
9,7951999
1999
2001
45,000
4.90%
47,928
92,928
97,574
2000
2002
45,000
5.10%
45,723
90,723
95,259
2001
2003
50,000
5.25%
43,428
93,428
98,099
2002
2004
50,000
5.40%
40,803
90,803
95,343
2003
2005
55,000
5.55%
38,103
93,103
97,758
2004
2006
60,000
5.70%
35,050
95,050
99,803
2005
2007
60,000
5.85%
31,630
91,630
96,212
2006
2008
65,000
6.00%
28,120
93,120
97,776
2007
2009
70,000
6.10%
24,220
94,220
98,931
2008
2010
75,000
6.10%
19,950
94,950
99,698
2009
2011
80,000
6.15%
15,375
95,375
100,144
2010
2012
80,000
6.15%
10,455
90,455
94,978
2011
2013
90,000
6.15%
5,535
95,535
100,312
TOTALS:
1,080,000
784,261
1,864,261 1,957,475
Bond Years:
13,605.00
Annual Interest:
784,261
Avg. Maturity:
12.60
Plus
Discount:
15,000
Avg. Annual
Rate: 5.765%
Net
Interest:
799,261
T.I.C.
Rate:
5.861%
N.I.C. Rate:
5.875%
Interest rates are estimates; changes may cause significant
alterations of this schedule.
The actual underwriter's discount bid may also vary.
Pomp 5
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 19WD
Prepared 09/28/92
By SPPoNGSTED Incorporated
Project
Project
Costs*
Less:
Water Core
Funds
Less:
Sewer Care
Funds
Plus:
Costs of
Issuance
Plus:
Discount
Plus ............................:.
Capitalized
Interest
Net Costs'; Amount of
td be> Project
Financed< Assessments
Notes
232 - O'Leary's Hills
$672,000
$7,000
$8,379
$7,203
$42,111
$722,693,
$614,693
The City will contribute $108,000 from
5th Addition
the Storm Core Fund over the fife of the
issue.
233 - Section 31 Trunk
426,000
50,000
4,788
4,116
23,816
4013,720
115,720
The City will contribute $293,000 from
Sanitary Sewer
the Sewer Core Fund over the fife of the
issue.
234 - Shannon Hills
220,000
2,736
2,352
13,927
239,015:
239,015
This project is 100% assessed.
4th Addition
237 - National Guard
187,700
$93,095
1,197
1,029
5,991
,.02,822;
102,822
Net costs are 100% assessed.
Armory Water Project
Subtotal $1,505,700 $93,095 $57,000 $17,100 $14,700 $85,845
Less: Investment Earnings
Total Bond Issue
* Includes construction, engineering, contingency, and administration costs.
$1,072,250
NO
kv.
V
M
z
v
City of Rosemount, Minnesota
G.O. Improvement Bonds, Series 1992D
Filing Collect
Year Year
1993 1994
1994 1995
1995 19%
19% 1997
1997 1998
1998 1999
1999 2000
2000 2001
2001 2002
2002 2003
TOTALS
PROJECTED ASSESSMENT INCOME
O'Leary's Hills 5th Addition
Filing Date: 10/ 1/1993
Interest
Principal @ 6.950% Total
61,469
49,978a
111,447
61,469
38,449
99,918
61,469
34,177
95,646
61,469
29,905
91,374
61,469
25,633
87,102
61,469
21,361
82,830
61,469
17,089
78,558
61,469
12,816
74,285
61,469
8,544
70,013
61,472
4,272
65,744
614,693 242,224 856,917
Section 31 Trunk Santry. Sewer
Filing Date: 10/ 1/1993
Interest
Principal it 6.950% Total
11,572 10,070b 21,642
11,572 7,238 18,810
11,572 6,434 18,006
11,572 5,630 17,202
11,572 4,826 16,398
11,572 4,021 15,593
11,572 3,217 14,789
11,572 2,413 13,985
11,572 1,609 13,181
11,572 804 12,376
115,720 46,262 161,982
APPENDIX RI
Prepared September 28, 1992
By SPRINGSTED Incorporated
Page 1 of 2
Shannon Hills 4th Addition
Filing Date: 10/ 1/1993
Interest
Principal @ 6.950% Total
23,902
20,799c
44,701
23,902
14,950
38,852
23,902
13,289
37,191
23,902
11,628
35,530
23,902
9,967
33,869
23,902
8,306
32,208
23,902
6,644
30,546
23,902
4,983
28,885
23,902
3,322
27,224
23,897
1,661
25,558
239,015 95,549 334,564
a) Includes interest from filing b) Includes interest from filing c) Includes interest from filing
date to 12/ 1/1994. date to 12/31/1994. date to 12/31/1994.
Porto 7
City of Rosemount, Minnesota
G.O. Improvement Bonds, Series 1992D
Filing Collect
Year Year
1993 1994
1994 1995
1995 1996
1996 1997
1997 1998
1998 1999
1999 2000
2000 2001
2001 2002
2002 2003
TOTALS
PROJECTED ASSESSMENT INCOME
Nat'l Guard Armory
Water
Filing Date: 10/
1/1993
67,089
Interest
107,225
Principal
0 6.950%
Total
10,282
8,947a
19,229
10,282
6,432
16,714
10,282
5,717
15,999
10,282
5,002
15,284
10,282
4,288
14,570
10,282
3,573
13,855
10,282
2,859
13,141
10,282
2,144
12,426
10,282
1,429
11,711
10,284
715
10,999
102,822
41,106
143,928
a) Includes interest from filing
date to 12/31/1994.
- - - T 0 T A L . . . . .
Principal Interest Total
107,225
89,794
197,019
107,225
67,089
174,294
107,225
59,617
166,842
107,225
52,165
159,390
107,225
44,714
151,939
107,225
37,261
144,486
107,225
29,809
137,034
107,225
22,356
129,581
107,225
14,904
122,129
107,225
7,452
114,677
1,072,250 425,141 1,497,391
Prepared September 28, 1992
By SPRINGSTED Incorporated
Page 2 of 2
Paae 8
:ity of Rosemount, Minnesota
..0. Improvement Bonds, Series 1992D
.ated: 11- 1-1992
lature: 2- 1
'first Interest: 8- 1.1993
'ear of Year of
Levy Mat. Principal Rates
(1) (2) (3) (4)
1992 1994 0 0.00%
1993 1995 165,000 3.50%
1994 1996 145,000 3.80%
1995 1997 145,000 4.10%
1996 1998 145,000 4.30%
1997 1999 145,000 4.50%
1998 2000 145,000 4.70%
1999 2001 145,000 4.90%
2000 2002 145,000 5.10%
2001 2003 145,000 5.25%
2002 2004 145,000 5.40%
OTALS: 1,470,000
Prepared September 28, 1992
By SPRINOSTED Incorporated
and Years: 9,832.50 Annual Interest: 472,232
Avg. Maturity: 6.69 Plus Discount: 14,700
,vg. Annual Rate: 4.803% Net Interest: 486,932
.I.C. Rate: 4.949% N.I.C. Rate: 4.952%
nterest rates are estimates; changes may cause significant alterations of this schedule.
he actual underwriter's discount bid may also vary.
Total
Capital-
Net
Projected
Storm
Sewer
Total
Principal
ized
Levy
105%
Assessment
Core
Core
Total
Net
Annual
Interest
3 Interest
Interest
Required
of Total
Income
Fund•
Fund
Income
Requirement
Surplus
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
(14)
(15)
83,435
83,435
85,845
0
0
0
0
0
0
0
2,410
66,748
231,748
0
231,748
243,335
198,903
10,800
29,300
239,003
4,332
0
60,973
205,973
0
205,973
216,272
175,868
10,800
29,300
215,968
304
0
55,463
200,463
0
200,463
210,486
168,316
10,800
29,300
208,416
2,070
0
49,518
194,518
0
194,518
204,244
160,763
10,800
29,300
200,863
3,381
0
43,283
188,283
0
188,283
197,697
153,210
10,800
29,300
193,310
4,387
0
36,758
181,758
0
181,758
190,846
145,658
10,800
29,300
185,758
5,088
0
29,943
174,943
0
174,943
183,690
138,106
10,800
29,300
178,206
5,484
0
22,838
167,838
0
167,838
176,230
130,553
10,800
29,300
170,653
5,577
0
15,443
160,443
0
160,443
168,465
123,001
10,800
29,300
163,101
5,364
0
7,830
152,830
0
152,830
160,472
115,450
10,800
29,300
155,550
4,922
0
472,232
1,942,232
85,845
1,858,797
1,951,737
1,509,828
108,000
293,000
1,910,828
40,909
and Years: 9,832.50 Annual Interest: 472,232
Avg. Maturity: 6.69 Plus Discount: 14,700
,vg. Annual Rate: 4.803% Net Interest: 486,932
.I.C. Rate: 4.949% N.I.C. Rate: 4.952%
nterest rates are estimates; changes may cause significant alterations of this schedule.
he actual underwriter's discount bid may also vary.
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,080,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION COMMUNITY CENTER BONDS,
SERIES 1992C
Proposals for the Bonds will be received by the City Administrator or his designee on Tuesday,
October 27, 1992, until 11:00 A.M., Central Time, at the offices of Springsted Incorporated, 85
East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and
tabulated. Consideration for award of the Bonds will be by the City Council at 8:00 P.M.,
Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated November 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
$20,000
1999
$40,000
2004
$50,000
2009
$70,000
1995
$35,000
2000
$45,000
2005
$55,000
2010
$75,000
1996
$35,000
2001
$45,000
2006
$60,000
2011
$80,000
1997
$40,000
2002
$45,000
2007
$60,000
2012
$80,000
1998
$40,000
2003
$50,000
2008
$65,000
2013
$90,000
OPTIONAL REDEMPTION
The City may elect on February 1, 2003, and on any day thereafter, to prepay Bonds due on or
after February 1, 2004. 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. The proceeds will be used to finance
the acquisition and betterment of a community auditorium and banquet facility.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,065,000 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit CDeposit") in
Paoe 10
the form of a oerdfiied or cashier's check or a Financial Surety Bond in the amount of $10,800,
payable to the order of the City. If a check is used, it must accompany each proposal. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond
must identify each underwriter whose Deposit Is guaranteed by such Financial Surety Bond. If
the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M.,
Central Time, on the next business day following the award. If such Deposit is not received by
that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit
requirement. The City will deposit the check of the purchaser, the amount of which will be
deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser
fails to comply with the accepted proposal, said amount will be retained by the City. No
proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1 %. Rates must be in ascending order. Bonds of the same
maturity shall bear a single rate from the date of the Bonds to the date of maturity. No
conditional proposals will be accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
Paoe 11
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan,
Professional Association, of Saint Paul and Minneapolis, Minnesota, which opinion will be
printed on the Bonds, and of customary closing papers, including a no -litigation certificate. On
the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds
which shall be received at the offices of the City or its designee not later than 12:00 Noon,
Central Time. Except as compliance with the terms of payment for the Bonds shall have been
made impossible by action of the City, or its agents, the purchaser shall be liable to the City for
any loss suffered by the City by reason of the purchaser's non-compliance with said terms for
payment.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly -final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 50 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 October 13, 1992
BY ORDER OF THE CITY COUNCIL
/s/ Susan M. Walsh
Clerk
Pane 12
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,470,000
CRY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1992D
Proposals for the Bonds will be received by the City Administrator or his designee on Tuesday,
October 27, 1992, until 11:00 A.M., Central Time, at the offices of Springsted Incorporated, 85
East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and
tabulated. Consideration for award of the Bonds will be by the City Council at 8:00 P.M.,
Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated November 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:
1995 $165,000 1999 $145,000 2002 $145,000
1996 $145,000 2000 $145,000 2003 $145,000
1997 $145,000 2001 $145,000 2004 $145,000
1998 $145,000
OPTIONAL REDEMPTION
The City may elect on February 1, 2001, and on any day thereafter, to prepay Bonds due on or
after February 1, 2002. 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 various
improvement projects within the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,455,300 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 $14,700,
Page 13
payable to the order of the City. K a check Is used, it must accompany each proposal. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond
must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If
the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M.,
Central Time, on the next business day following the award. If such Deposit is not received by
that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit
requirement. The City will deposit the check of the purchaser, the amount of which will be
deducted at settlement and no interest will accrue to the purchaser. In the event the purchaser
fails to comply with the accepted proposal, said amount will be retained by the City. No
proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1 %. Rates must be in ascending order. Bonds of the same
maturity shall bear a single rate from the date of the Bonds to the date of maturity. No
conditional proposals will be accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, If the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
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SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan,
Professional Association, of Saint Paul and Minneapolis, Minnesota, which opinion will be
printed on the Bonds, and of customary closing papers, including a no -litigation certificate. On
the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds
which shall be received at the offices of the City or its designee not later than 12:00 Noon,
Central Time. Except as compliance with the terms of payment for the Bonds shall have been
made impossible by action of the City, or its agents, the purchaser shall be liable to the City for
any loss suffered by the City by reason of the purchaser's non-compliance with said terms for
payment.
OFFICIAL STATEMENT .
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly -final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 60 copies of the
Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of
assuring the receipt by each such Participating Underwriter of the Final Official Statement.
Dated October 13, 1992
BY ORDER OF THE CITY COUNCIL
/s/ Susan M. Walsh
Clerk
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