HomeMy WebLinkAbout5.c. Set Bond Sale for 1991 Bond Issuex CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: April 16, 1991
AGENDA ITEM:
AGENDA SECTION:
1991 Bond Issue - Setting Bond'Sale
Old Business
PREPARED BY:
AGENDA
ITEM # 5 0
Jeff May, Finance Director
ATTACHMENTS:
APPR D Y
Springsted Recommendations, Council Resolution
This item is on thea agenda to set the bond sale date for projects that
g P 7
need to be bonded for, had been scheduled to be bonded for last fall,
and because of'unforeseen 'circumstances, have been put off until now.
Bids will be opened Tuesday, May 21, 1991, at 12:00 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 8:00 P.M., Central Time, of the same day.
Settlement of the Bonds will occur 'within 40 days following the date of
the award.
RECOMMENDED ACTIONt
Motion to adopt -a resolution PROVIDING FOR THE PUBLIC SALE OF
$1,180,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1991 A.
COUNCIL ACTION:
I
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 1991 -
A RESOLUTION PROVIDING FOR THE PUBLIC SALE OF
$1,180,000
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1991A
BE IT RESOLVED by the City Council of the City of Rosemount, Minnesota, as
follows:
1. Finding: Amount and Purpose. It is hereby found, determined and
declared that this City should issue $1,180,000 General Obligation
improvement Bonds, Series 1991A (the "Bonds") to finance the construction of
various street and utility improvements within the City.
2. Meeting; Bid Openings. This City Council shall meet at the time and
place specified in the form of Notice of Bond Sale attached hereto as
Exhibit A for the purpose of opening and considering sealed bids for, and
awarding the sale of, the Bonds. The City Administrator, or his designee,
shall open bids at the time and place specified in such Notice of Bond Sale.
3. Notice of Bond Sale. The City Administrator is hereby authorized and
directed to cause notice of the time, place and purpose of said meeting to
be published in the official newspaper of the City and in Northwestern
Financial Review not less than ten (10) days in advance of the date of sale,
as provided by law, which notice shall be in substantially the form set
forth in Exhibit A attached hereto and hereby made a part hereof.
4. Official Terms of Offering. The terms and conditions of the Bonds and
the sale thereof are fully set forth in the "Official Terms of Offering"
attached hereto as Exhibit B and hereby made a part hereof.
5. Official Statement. The City Administrator and Treasurer and other
officers or employees of the City are hereby authorized to 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 16th day of April, 1991.
ATTEST:
Susan M. Walsh, City Clerk
Motion by:
Voted in favor:
Voted against•
Vernon J. Napper, Mayor
Seconded by:
EXHIBIT A
NOTICE OF BOND SALE
$1,180,000
CITY OF ROSEMOUNT
DAKOTA COUNTY
MINNESOTA
GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 1991A
Sealed bids for these Bonds will be received by the City
Administrator, or his designee, on Tuesday, May 21, 1991, until
12:00 Noon, Central Time, at the offices of Springsted
Incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota. The Bonds will be dated June 1, 1991, as the date of
original issue. Interest will be payable on February 1, 1992,
and semiannually thereafter. The Bonds will mature on February 1
in the years and amounts as follows:
Year Amount
1993
$120,000
1994
120,000
1995
120,000
1996
120,000
1997
120,000
1998
120,000
1999
115,000
2000
115,000
2001
115,000
2002
115,000
An approving legal opinion will be furnished by Briggs and
Morgan, Professional Association, of St. Paul and Minneapolis,
Minnesota.
Bidders should be aware that the Official Terms of Offering to be
published in the Official Statement for the Bonds may contain
additional bidding terms and information relative to the Bonds.
In the event of a variance between statements in this Notice of
Bond Sale and said Official Terms of Offering, the provisions of
the latter shall be those to be complied with.
15917
Dated: April 15, 1991 BY ORDER OF THE CITY COUNCIL
Is/Stephan Jilk
City Administrator
Additional information may
be obtained from:
SPRINGSTED INCORPORATED
855 East Seventh Place
Suite 100
Saint Paul, Minnesota 55101-2143
Telephone No.: (612) 223-3000
15917
EXHIBIT B
OFFICIAL TERMS OF OFFERING
$1,180,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1991A
Sealed bids for the Bonds will be received by the City Administrator or his designee on
Tuesday, May 21, 1991, until 12:00 Noon, 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 June 1, 1991, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1992. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months and will be rounded
pursuant to rules of the MSRB. 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:
1993 $120,000 1997 $120,000 2000 $115,000
1994 $120,000 1998 $120,000 2001 $115,000
1995 $120,000 1999 $115,000 2002 $115,000
1996 $120,000
OPTIONAL REDEMPTION
The City may elect on February 1, 1999, and on any day thereafter, to prepay Bonds due on or
after February 1, 2000. Redemption may be in whole or in part and if in part, at the option of
the City and in such manner 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 and 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 benefitted property. The proceeds will be used to finance various
street and utility improvements within the City.
TYPE OF BID
Bids shall be for not less than $1,167,200 and accrued interest on the total principal amount of
the Bonds. Bids 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 $11,800, payable to the
order of the City. If a check is used, it must accompany each bid. 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 bids. The Financial Surety Bond must identify each
bidder whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded
to a bidder 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 bid,
said amount will be retained by the City. No bid can be withdrawn after the time set for
receiving bids 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 bid will be accepted.
AWARD
The Bonds will be awarded to the bidder offering the lowest dollar interest cost to be
determined by the deduction of the premium, if any, from, or the addition of any amount less
than par, to the total dollar interest on the Bonds from their date to their final scheduled
maturity. The City's computation of the total net dollar interest cost of each bid, in accordance
with customary practice, will be controlling.
The City will reserve the right to: (i) waive non -substantive informalities of any bid or of matters
relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and,
(iii) reject any bid which the City determines to have failed to comply with the terms herein.
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 bidder, the purchase of any such insurance policy or the issuance
of any such commitment shall be at the sole option and expense of the purchaser of the
Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan,
Professional Association, of Saint Paul and Minneapolis, Minnesota, which opinion will be
printed on the Bonds, and of customary closing papers, including a no -litigation certificate. On
the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds
which shall be received at the offices of the City or its designee not later than 12:00 Noon,
Central Time. Except as compliance with the terms of payment for the Bonds shall have been
made impossible by action of the City, or its agents, the purchaser shall be liable to the City for
any loss suffered by the City by reason of the purchaser's non-compliance with said terms for
payment.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly -final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement and the Official Bid Form 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 an Official Bid Form 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 executing and delivering an Official Bid Form with
respect to the Bonds agrees thereby that if its bid 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 April 15, 1991
BY ORDER OF THE CITY COUNCIL
/s/ Stephan Jilk
Administrator -Clerk
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
ROSEMOUNT, MINNESOTA
HELD: April 16, 1991
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Rosemount, Dakota
County, Minnesota, was duly called and held at the City Hall in
said City on the 16th day of April, 1991, at o'clock _.M.
The following members were present:
and the following were absent:
Member introduced the following
resolution and moved its adoption:
RESOLUTION PROVIDING FOR THE PUBLIC SALE
OF $1,180,000
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1991A
BE IT RESOLVED by the City Council of the City of
Rosemount, Minnesota, as follows:
1. Finding; Amount and Purpose. It is hereby found,
determined and declared that this City should issue $1,180,000
General Obligation Improvement Bonds, Series 1991A (the "Bonds")
to finance the construction of.various street and utility
improvements within the City.
2. Meeting; Bid Openings. This City Council shall
meet at the time and place specified in the form of Notice of
Bond Sale attached hereto as Exhibit A for the purpose of opening
and considering sealed bids for, and awarding the sale of, the
Bonds. The City Administrator, or his designee, shall open bids
at the time and place specified in such Notice of Bond Sale.
3. Notice of Bond Sale. The City Administrator is
hereby authorized and directed to cause notice of the time, place
and purpose of said meeting to be published in the official
newspaper of the City and in Northwestern Financial Review not
less than ten (10) days in advance of the date of sale, as
15917
provided by law, which notice shall be in substantially the form
set forth in Exhibit A attached hereto and hereby made a part
hereof.
4. Official Terms of Offering. The terms and
conditions of the Bonds and the sale thereof are fully set forth
in the "Official Terms of Offering" attached hereto as Exhibit B
and hereby made a part hereof.
5. Official Statement. The City Administrator and
Treasurer and other officers or employees of the City are hereby
authorized to 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.
The motion for the adoption of the foregoing resolution
was duly seconded by member and, after full
discussion thereof and upon a vote being taken thereon, the
following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and
adopted.
15917
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF ROSEMOUNT
I, the undersigned, being the duly qualified and acting
Clerk of the City of Rosemount, Minnesota, DO HEREBY CERTIFY that
I have carefully compared the attached and foregoing extract of
minutes with the original minutes of a meeting of the City
Council of said City duly called and held on the date therein
indicated, which are on file and of record in my office, and the
same is a full, true and complete transcript therefrom insofar as
the same relates to said City's $1,180,000 General Obligation
Improvement Bonds, Series 1991A.
WITNESS my hand as such City Clerk and the official
seal of said City this day of , 1991.
City Clerk
(SEAL)
15917
EXHIBIT A
NOTICE OF BOND SALE
$1,180,000
CITY OF ROSEMOUNT
DAKOTA COUNTY
MINNESOTA
GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 1991A
Sealed bids for these Bonds will be received by the City
Administrator, or his designee, on Tuesday, May 21, 1991, until
12:00 Noon, Central Time, at the offices of Springsted
Incorporated, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota. The Bonds will be dated June 1, 1991, as the date of
original issue. Interest will be payable on February 1, 1992,
and semiannually thereafter. The Bonds will mature on February 1
in the years and amounts as follows:
Year
Amount
1993
$120,000
1994
120,000
1995
120,000
1996
120,000
1997
120,000
1998
120,000
1999
115,000
2000
115,000
2001
115,000
2002
115,000
An approving legal opinion will be furnished by Briggs and
Morgan, Professional Association, of St. Paul and Minneapolis,
Minnesota.
Bidders should be aware that the Official Terms of Offering to be
published in the Official Statement for the Bonds may contain
additional bidding terms and information relative to the Bonds.
In the event of a variance between statements in this Notice of
Bond Sale and said Official Terms of Offering, the provisions of
the latter shall be those to be complied with.
15917
Dated: April 16, 1991 BY ORDER OF THE CITY COUNCIL
/s/Stephan Jilk
City Administrator
Additional information may
be obtained from:
SPRINGSTED INCORPORATED
85 East Seventh Place
Suite 100
Saint Paul, Minnesota 55101-2143
Telephone No.: (612) 223-3000
15917
EXHIBIT B
OFFICIAL TERMS OF OFFERING
$1,180,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1991A
Sealed bids for the Bonds will be received by the City Administrator or his designee on
Tuesday, May 21, 1991, until 12:00 Noon, 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.
The Bonds will be dated June 1, 1991, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1992. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months and will be rounded
pursuant to rules of the MSRB. 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:
1993 $120,000 1997 $120,000 2000 $115,000
1994 $120,000 1998 $120,000 2001 $115,000
1995 $120,000 1999 $115,000 2002 $115,000
1996 $120,000
OPTIONAL REDEMPTION
The City may elect on February 1, 1999, and on any day thereafter, to prepay Bonds due on or
after February 1, 2000. Redemption may be in whole or in part and if in part, at the option of
the City and in such manner 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 and 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 benefitted property. The proceeds will be used to finance various
street and utility improvements within the City.
TYPE OF BID
Bids shall be for not less than $1,167,200 and accrued interest on the total principal amount of
the Bonds. Bids 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 $11,800, payable to the
order of the City. If a check is used, it must accompany each bid. 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 bids. The Financial Surety Bond must identify each
bidder whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded
to a bidder 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 bid,
said amount will be retained by the City. No bid can be withdrawn after the time set for
receiving bids 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 bid will be accepted.
AWARD
The Bonds will be awarded to the bidder offering the lowest dollar interest cost to be
determined by the deduction of the premium, if any, from, or the addition of any amount less
than par, to the total dollar interest on the Bonds from their date to their final scheduled
maturity. The City's computation of the total net dollar interest cost of each bid, in accordance
with customary practice, will be controlling.
The City will reserve the right to: (i) waive non -substantive informalities of any bid or of matters
relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and,
(iii) reject any bid which the City determines to have failed to comply with the terms herein.
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 bidder, the purchase of any such insurance policy or the issuance
of any such commitment shall be at the sole option and expense of the purchaser of the
Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be
subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan,
Professional Association, of Saint Paul and Minneapolis, Minnesota, which opinion will be
printed on the Bonds, and of customary closing papers, including a no -litigation certificate. On
the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds
which shall be received at the offices of the City or its designee not later than 12:00 Noon,
Central Time. Except as compliance with the terms of payment for the Bonds shall have been
made impossible by action of the City, or its agents, the purchaser shall be liable to the City for
any loss suffered by the City by reason of the purchaser's non-compliance with said terms for
payment.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly -final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement and the Official Bid Form 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 an Official Bid Form 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 executing and delivering an Official Bid Form with
respect to the Bonds agrees thereby that if its bid 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 April 16, 1991
BY ORDER OF THE CITY COUNCIL
/s/ Stephan Jilk
Administrator -Clerk
Recommendations
For
City of Rosemount, Minnesota
$1,180,000
General Obligation Improvement Bonds, Series 1991 A
Study No. 3828
SPRINGSTED Incorporated
April 10, 1991
500 Elm Grove Road
Suite 101, P.O. Box 37
Elm Grove, WI 53122-0037
(414) 782-8222
Fax: (414)782-2904
2739 Second Avenue S.E.
Cedar Rapids, IA 52403-1434
(319) 363-2221
Fax: (319) 363-6999
April 8, 1991
Mayor Vernon J. Napper
Members, City Council
Mr. Stephan Jilk, Administrator
Mr. Jeff May, Finance Director
City of Rosemount
2875 -145th Street West
Rosemount, MN 55068
SPRINGSTED
PUBLIC FINANCE ADVISORS
85 East Seventh Place
Suite 100
Saint Paul, MN 551 01-21 43
(612) 223-3000
Fax: (612) 223-3002
6800 College Boulevard
Suite 600
Overland Park, KS 66211-1533
(913) 345-8062
Fax:(913)345-1770
135 North Pennsylvania Street
Suite 2015
Indianapolis, IN 46204-2498
(317) 684-6000
Fax: (317)684-6004
222 South Ninth Street
Suite 2825
Minneapolis, MN 55402-3368
(612) 333-9177
Fax: (612) 333-2363
Re: Recommendations for the Issuance of $1,180,000 General Obligation Improvement
Bonds, Series 1991 A
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 Official Terms
of Offering. Proceeds of this bond issue will be used to finance four separate improvement
projects which require financing at this time.
The project costs and the sizing of the bond issue are set forth in Appendix I, attached. You
will note the City is expected to contribute $125,000 from the Water Core Facility Fund as a
cash contribution to the 160th Street project. The total net required costs for all projects is
estimated to be $1,116,000. To this we have added $12,980 as an allowance for discount
bidding and $52,535 for capitalized interest. Total costs, therefore, are estimated to be
$1,181,515, from which we have subtracted $1,515 of investment earnings, bringing the net
financing requirement to $1,180,000. Of these costs, it is expected that $1",092,535 will be
assessed against benefited property. The City's net share of this financing is expected to be
$76,000, of which $37,000 is expected to be paid over time by the Storm Sewer Core Facility
Fund.
Appendix 11 is the projection of assessment income by project. The assessment rolls are
expected to be adopted on or before October 15, 1991, for first collection in 1992. 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, or 8.35%. 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 10) as developed in Appendix II.
The bonds will be dated June 1, 1991, and will mature each February 1 from 1993 through
2002. Columns 1 through 6 show the years and amounts of principal and estimated interest
due and payable on these bonds. Column 7 shows the capitalized interest, with Column 8
City of Rosemount, Minnesota
April 8, 1991
showing the net levy required to pay 100% of debt service. Column 9 shows the 105%
overlevy 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 projection of assessment income from Appendix II and
Column 11 shows the net levy requirement which represents the City's share 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 assessment income in Column 10 exceeds
the net debt service requirements in Column 8.
The first payment on these bonds will be an interest payment due February 1, 1992 in the
estimated amount of $47,100. This payment will be made from interest capitalized on the bond
issue. After the February 1, 1992, payment, the debt service will be payable from assessment
income and tax levy requirements. As with all improvement issues, the timing of principal
repayment 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 $12,980. 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 $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, 2000, be callable on February 1,
1999, and any day thereafter at a price of par and accrued interest. This call feature,
representing $345,000, 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.
These bonds are subject to federal arbitrage regulations; however, it is our understanding the
City does not anticipate issuing more than $5,000,000 of tax-exempt bonds during 1991 and
therefore can qualify as a small issuer, exempt from the reporting and rebate requirements.
Also, the City may designate these bonds as "qualified bonds" under the Tax Reform Act of
1986, making the bonds more attractive to banks as investors in these bonds.
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 this issue. We will provide Moody's with the necessary data
upon which they will make their rating analysis and make the application on your behalf. We
do not anticipate a change in the City's "A" rating from Moody's.
We recommend these bonds be offered for sale on Tuesday, May 21, with bids received at the
offices of Springsted Incorporated at 12:00 Noon. At that time, all bids received will be opened
and verified for accuracy, and a bid tabulation will be prepared for presentation to the Council
for action at their regular meeting at 8:00 P.M. that same evening. A representative of
Springsted Incorporated will attend your meeting to provide recommendations as to the
acceptability of bid proposals received.
Respectfully submitted,
'J,
SPRINGSTED Incorporated
mmr
Page 2
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 1991 A
Prepared 04/04/991 +
By SPRINGSTED Incorporated
Amount of
Plus:
Less:
No
Notes
Project
Capitalized
Water Core
filed 10-15-91. Construction
Proiect
Costs*
Interest
Facility Fund
Fli
197 - Valley Oak
$390,000
$16,510
135,583
$4
Pond Outlet
filed 10-15-91.
338,240
10 year assessment to be
199 - Pine Bend
241,000
10,202
2
Trail
213 - 160th Street
250,000
10,583
(125,000)
1
West Trunk
Watermain
216 - Shannon Hills
360,000
15,240
3
2nd Addition
Subtotal
$1,241,000
$52,535
($125,000)
$1,1
Plus: Allowance
for Discount
Less: Investment Earnings
Total Bond Issue
$i
* Includes construction,
engineering, contingency, administration and issuance
costs.
m
CJ
Prepared 04/04/991 +
By SPRINGSTED Incorporated
Amount of
Project
Assessments
Notes
$406,510
10 year assessment to be
filed 10-15-91. Construction
to begin in spring 1991.
212,202
10 year assessment to be
filed 10-15-91. City's
share of costs is $39,000.
135,583
10 year assessment to be
filed 10-15-91.
338,240
10 year assessment to be
filed 10-15-91. Storm Sewer
Core Facility Fund will
pay $37,000 of project costs.
$1,092,535
D
V
.0
M
Z
x
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 1991A
Filing Collect
Year Year
1991
1992
1992
1993
1993
1994
1994
1995
1995
1996
1996
1997
1997
1998
1998
1999
1999
2000
2000
2001
TOTALS
.0L
PROJECTED ASSESSMENT INCOME
#197 - Valley Oak Pond
Outlet
Filing
Date: 10/15/1991
Date: 10/15/1991
Interest
interest
Principal
@ 8.350%
Total
40,651
41,197a
81,848
40,651
30,549
71,200
40,651
27,155
67,806
40,651
23,761
64,412
40,651
20,366
61,017
40,651
16,972
57,623
40,651
13,577
54,228
40,651
10,183
50,834
40,651
6,789
47,440
400651
3,394
44,045
406,510 193,943 6001453
a) Includes interest from filing
date to 12/31/1992.
#199 -
Pine Bend
Trail
Filing
Date: 10/15/1991
interest
Interest
Principal
Principal
@ 8.350%
Total
21,220
21,505b
42,725
21,220
15,947
37,167
21,220
14,175
351395
21,220
12,403
331623
21,220
10,631
31,851
21,220
81860
30,080
21,220
7,088
28,308
21,220
5,316
26,536
211220
3,544
24,764
21,222
1,772
22,994
212,202 101,241 3131443
b) Includes interest from filing
date to 12/31/1992.
Prepared April 4, 1991 ~
By SPRINGSTED Incorporated
Page 1 of 2
#216 -
Shannon Hills
2nd
Filing
Date: 10/15/1991
interest
Principal
@ 8.350%
Total
33,824
34,279c
68,103
33,824
25,419
59,243
33,824
22,594
56,418
331824
191770
53,594
33,824
16,946
50,770
33,824
14,122
47,946
33,824
11,297
45,121
33,824
8,473
42,297
33,824
51649
391473
33,824
2,824
36,648
338,240
161,373
499,613
c) Includes interest from filing
date to 12/31/1992.
D
V
M
z
U
Q
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 1991A
Filing
Collect
Year
Year
1991
1992
1992
1993
1993
1994
1994
1995
1995
1996
1996
1997
1997
1998
1998
1999
1999
2000
20010
2001
TOTALS
PROJECTED ASSESSMENT INCOME
#213 - 160th Street Watermain
Filing
Date: 10/15/1991
109,253
82,104
Interest
109,253
Principal
---------
@ 8.350%
--------
Total
-----
13,558
13,741a
27,299
13,558
10,189
23,747
13,558
9,057
22,615
13,558
7,925
21,483
13,558
6,793
20,351
13,558
5,661
19,219
13,558
4,529
18,087
13,558
3,397
16,955
131558
21264
15,822
13,561
1,132
14,693
135,583 64,688 200,271
a) Includes interest from filing
date to 12/31/1992.
T O T A L - - - - -
Principal Interest Total
109,253
110,722
219,975
109,253
82,104
191,357
109,253
72,981
1823234
109,253
631859
173012
109,253
54,736
163,989
1091253
45,615
154,868
109,253
36,491
145,744
109,253
27,369
1360622
109,253
18,246
1271499
109,258
9,122
118,380
1,092,535 521,245 1,613,780
Prepared April 4, 1991
By SPRINGSTED Incorporated
Page 2 of 2
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 1991A
$1,180,000
Dated: 6- 1-1991
Mature: 2- 1
First Interest: 2- 1-1992
Year of Year of
Levy Mat. Principal Rates
(1) (2) (3) (4)
1991 1993 120,000 5.30%
1992 1994 120,000 5.509
1993 1995 120,000 5.65%
1994 1996 120,000 5.80%
1995 1997 120,000 5.95%
1996 1998 120,000 6.10%
1997 1999 115,000 6.20%
1998 2000 115,000 6.35%
1999 2001 115,000 6.509
2000 2002 115,000 6.60%
TOTALS: 1,180,000
Prepared April 4, 1991
By SPRINGSTED Incorporated
Bond Years: 7,216.67 Annual Interest: 445,974
Avg. Maturity: 6.12 Plus Discount: 12,980
Avg. Annual Rate: 6.180% Net Interest: 458,954
N.I.C. Rate: 6.360%
Interest rates are estimates; changes may cause significant alterations of this schedule.
The actual underwriter's discount bid may also vary.
Total
Capital-
Net
Projected
Total
Principal
lzed
Levy
105%
Assessment
Net
Annual
Interest
8 Interest
Interest
Required
of Total
Income
Requirement
Surplus
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
117,763
237,763
52,535
185,228
194,489
219,975
0
25,486
64,298
184,298
0
184,298
193,513
191,357
2,156
0
57,698
177,698
0
177,698
186,583
182,234
4,349
0
50,918
170,918
0
170,918
179,464
173,112
6,352
0
43,958
163,958
0
163,958
172,156
163,989
8,167
0
36,818
156,818
0
156,818
164,659
154,868
9,791
0
29,498
144,498
0
144,498
151,723
145,744
5,979
0
22,368
137,368
0
137,368
144,236
136,622
7,614
0
15,065
130,065
0
130,065
136,568
127,499
9,069
0
7,590
122,590
0
122,590
128,720
118,360
10,340
0
445,974
1,625,974
52,535
1,573,439
1,652,111
1,613,780
63,817
Bond Years: 7,216.67 Annual Interest: 445,974
Avg. Maturity: 6.12 Plus Discount: 12,980
Avg. Annual Rate: 6.180% Net Interest: 458,954
N.I.C. Rate: 6.360%
Interest rates are estimates; changes may cause significant alterations of this schedule.
The actual underwriter's discount bid may also vary.
City of Rosemount, Minnesota
General Obligation Improvement Bonds, Series 1991A
$1,180,000
Dated: 6- 1-1991
Mature: 2- 1
First Interest: 2- 1-1992
Year of Year of
Levy Mat. Principal Rates
(1) (2) (3) (4)
1991 1993 120,000 5.30%
1992 1994 120,000 5.50%
1993 1995 120,000 5.65%
1994 1998 120,000 5.80%
1995 1997 120,000 5.95%
1996 1998 120,000 6.10%
1997 1999 115,000 6.20%
1998 2000 115,000 6.35%
1999 2001 115,000 6.50%
2000 2002 115,000 6.60%
TOTALS: 1,180,000
Prepared April 4, 1991
By SPRINGSTED Incorporated
Bond Years: 7,216.67 Annual Interest: 445,974
Avg. Maturity: 6.12 Plus Discount: 12,980
Avg. Annual Rate: 6.180% Net Interest: 458,954
N.I.C. Rate: 6.360%
Interest rates are estimates; changes may cause significant alterations of this schedule.
The actual underwriter's discount bid may also vary.
Total
Capital-
Net
Projected
Total
Principal
ized
Levy
105%
Assessment
Net
Annual
Interest
8 Interest
Interest
Required
of Total
Income
Requirement
Surplus
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
117,763
237,763
52,535
185,228
194,489
219,975
0
25,486
64,298
184,298
0
184,298
193,513
191,357
2,156
0
57,698
177,698
0
177,698
166,583
182,234
4,349
0
50,918
170,918
0
170,918
179,464
173,112
6,352
0
43,958
163,958
0
163,958
172,156
163,989
8,167
0
36,818
156,818
0
156,818
164,659
154,868
9,791
0
29,498
144,498
0
144,498
151,723
145,744
5,979
0
22,368
137,368
0
137,368
144,236
136,622
7,614
0
15,065
130,065
0
130,065
136,568
127,499
9,069
0
7,590
122,590
0
122,590
128,720
118,380
10,340
0
445,974
1,625,974
52,535
1,573,439
1,652,111
1,613,780
63,817
Bond Years: 7,216.67 Annual Interest: 445,974
Avg. Maturity: 6.12 Plus Discount: 12,980
Avg. Annual Rate: 6.180% Net Interest: 458,954
N.I.C. Rate: 6.360%
Interest rates are estimates; changes may cause significant alterations of this schedule.
The actual underwriter's discount bid may also vary.
APPENDIX IV
OFFICIAL TERMS OF OFFERING
$1,180,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1991A
Sealed bids for the Bonds will be received by the City Administrator or his designee on
Tuesday, May 21, 1991, until 12:00 Noon, 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 June 1, 1991, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1992. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months and will be rounded
pursuant to rules of the MSRB. 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:
1993 $120,000 1997 $120,000 2000 $115,000
1994 $120,000 1998 $120,000 2001 $115,000
1995 $120,000 1999 $115,000 2002 $115,000
1996 $120,000
OPTIONAL REDEMPTION
The City may elect on February 1, 1999, and on any day thereafter, to prepay Bonds due on or
after February 1, 2000. Redemption may be in whole or in part and if in part, at the option of
the City and in such manner 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 and 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 benefitted property. The proceeds will be used to finance various
street and utility improvements within the City.
TYPE OF BID
Bids shall be for not less than $1,167,200 and accrued interest on the total principal amount of
the Bonds. Bids 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 $11,800, payable to the
order of the City. If a check is used, it must accompany each bid. 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
Page 7
V
Incorporated prior to the opening of the bids. The Financial Surety Bond must identify each
bidder whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awarded
to a bidder 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 bid,
said amount will be retained by the City. No bid can be withdrawn after the time set for
receiving bids 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 bid will be accepted.
AWARD
The Bonds will be awarded to the bidder offering the lowest dollar interest cost to be
determined by the deduction of the premium, if any, from, or the addition of any amount less
than par, to the total dollar interest on the Bonds from their date to their final scheduled
maturity. The City's computation of the total net dollar interest cost of each bid, in accordance
with customary practice, will be controlling.
The City will reserve the right to: (i) waive non -substantive informalities of any bid or of matters
relating to the receipt of bids and award of the Bonds, (ii) reject all bids without cause, and,
(iii) reject any bid which the City determines to have failed to comply with the terms herein.
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 bidder, 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 8
I ✓
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 and the Official Bid Form 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 an Official Bid Form 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 executing and delivering an Official Bid Form with
respect to the Bonds agrees thereby that if its bid 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 April 16, 1991
BY ORDER OF THE CITY COUNCIL
/s/ Stephan Jilk
Administrator -Clerk
Page 9