HomeMy WebLinkAbout4. Authorize Issuance and Bond Sale for $265, 000 General Obligation Improvements BondsEXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: October 22, 1991
AGENDA ITEM: 1991 Bond Issue - Authorizing
AGENDA SECTION:
Issuance and Setting Bond Sale
New Business
PREPARED BY:
AGENDA NO.
Jeff May, Finance Director
ATTACHMENTS: Memorandum
A OVE BY:
Springsted Recommendations, Council Resolution
This item is on the agenda for your consideration in authorizing_
the issuance and setting the sale of bonds for the Country Hill
4th Addition project.
Bids will be opened 'Tuesday, November 19, 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 7:30 P.M., Central Time, of
the same day.
Settlement of the Bonds will occur within 40 days following the
date of the award.
RECOMMENDED ACTION:
Motion to adopt a RESOLUTION AUTHORIZING THE NEGOTIATION OF $265,000
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1991B.
COUNCIL ACTION:
�iiy of (OLosemouni
PHONE (612)423-4411 2875 - 145th Street West, Rosemount, Minnesota MAYOR
FAX (612) 423-5203 Mailing Address: Vernon Napper
P. O. Box 510, Rosemount, Minnesota 55068-0510 COUNCILMEMBERS
Sheila Klassen
John Oxborough
Harry Willcox
Dennis Wippermann
DATE: October 8, 1991 ADMINISTRATOR
Stephan Jlk
TO: Mayor Napper
Councilmembers Klassen, Oxborough, Willcox, and Wippermann
FROM: Jeff May, Finance Director
SUBJECT: Bond Issues Authorization
At the Special Council Meeting scheduled for Tuesday, October 22,
1991, there will be on the agenda two bond issue items for your review
and action. The first will be a resolution authorizing issuance and
setting the bond sale for General Improvement Bonds Series 1991B.
This bond issue will be for the Country Hills 4th Addition project.
The second will be a resolution authorizing issuance and setting the
bond sale for Equipment Certificates Series 1991C. This bond issue
will be for the $200,500 in equipment certificates that were approved
in the preliminary setting of the 1992 budget.
The reason for setting the bond sale now is a matter of timing. If we
adopt these resolutions on the 22nd, the sale will be able to take
place on November 19, 1991, and we will be able to receive our
proceeds sometime in early December. This will accomplish two things,
the first being that the Country Hills project proceeds will be in
hand to cover the costs up to the completion of the project. This
means that we will not have to cover those costs with other funds
until a future bond issue sometime next year. The second thing that
will be accomplished is that the issuance of the equipment
certificates will allow us to legally levy the $52,000(appproximately)
which is part of our total levy.
If we wait to do these issues, we will show a large deficit balance in
the fund for the Country Hills 4th project at year end. Also, at some
point in time before we approve our final levy, we must, at the
minimum, authorize the issuance of the equipment certificates so the
levy for the certificates can be done.
Springsted, our financial consultant, feels that this is a workable
time schedule, and one that will suit our needs very well. Also,
right now is a good time, as far as the market goes, to issue bonds.
If you have any questions on these matters, please do not hesitate to
contact me prior to October 22nd. Hopefully, this memo will prepare
and inform you of these matters, and allow us to get any questions
answered ahead of time. Thank you!
6very1htngs Cooming Up gosemounl.!
CITY OF ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 1991
A RESOLUTION AUTHORIZING THE NEGOTIATION OF
$210,000 GENERAL OBLIGATION EQUIPMENT CERTIFICATES
OF INDEBTEDNESS, SERIES 1991C
WHEREAS, the City Council of the City of Rosemount, Minnesota,
has heretofore determined that it is necessary and expedient to
issue its $210,000 General Obligation Equipment Certificates of
Indebtedness, (the "Certificates") Series 1991C to acquire
equipment for City purposes; and
WHEREAS, pursuant to the provisions of Minnesota Statutes,
Section 475.60, Subdivision 2, the City Council has the authority
to negotiate the private sale of the Certificates without
complying with public sale requirements.
NOW, THEREFORE, BE IT RESOLVED,:by the City Council of the City
of Rosemount, Minnesota, as follows:
1. The City Council does hereby authorize Springsted
Incorporated in St. Paul, Minnesota, to act as its agent to
solicit offers for the private sale of the Certificates,
provided that no offer shall be deemed accepted until the
City Council adopts a resolution accepting the offer for the
Certificate.
2. In connection with said solicitation, the officers of the
City are hereby authorized to cooperate with Springsted
Incorporated in the preparation of an official statement or
other offering materials for the Certificates.
ADOPTED, this 22nd day of October, 1991.
Vernon J. Napper, Mayor
ATTEST:
Susan M. Walsh, City Clerk
Motion by: Second by:
Voted in favor:
Voted against•
Recommendations
For
City of Rosemount, Minnesota
$265,000
General Obligation Improvement Bonds, Series 1991 B
$210,000
General Obligation Equipment Certificates
of Indebtedness, Series 1991C
Study No. 3939
SPRINGSTED Incorporated
October 15, 1991
16655 West Bluemound Road
Suite 290
Brookfield, WI 53005-5935
(414) 782-8222
Fax: (414) 782-2904
2739 Second Avenue S.E.
Cedar Rapids, IA 52403-1434
(319)363-2221
Fax: (319) 363-6999
October 15, 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 55101-2143
(612) 223-3000
Fax: (612) 223-3002
6800 College Boulevard
Suite 600
Overland Park, KS 6621 1-1 533
(913) 345-8062
Fax: (913)345-1770
222 South Ninth Street
Suite 2825
Minneapolis, MN 55402-3368
(612)333-9177
Fax: (612) 333-2363
Re: Recommendations for the Issuance of:
$265,000 General Obligation Improvement Bonds, Series 1991 B and
$210,000 General Obligation Equipment Certificates of Indebtedness, Series 1991 C
We respectfully request your consideration of our recommendations for the issuance of these
bonds and certificates according to the terms and conditions set forth in the attached
proposed Terms of Proposal. Each issue will be discussed separately, with items common to
both to follow.
$265,000 General Obligation Improvement Bonds, Series 1991 B
The proceeds of this issue will be used to finance public road and utility improvements to
Country Hills 4th Addition. The composition of the issue is as follows:
Construction Costs
$192,212
Construction Engineering
19,387
Engineering Design
12,200
Administration
7,688
Contingency
13.000
Total Project Costs
$244,487
Less: Water Core Funds
(7,200)
Plus: Capitalized Interest (to 2-1-93)
17,687
Costs of Issuance
10,985
Allowance for Discount Bidding
3,445
Less: Investment Earnings
(4,404
Total Bond issue 265 000
Capitalized interest in the amount of $17,687 has been included in the issue to cover interest
due from the dated date of the bonds to February 1, 1993.
City of Rosemount, Minnesota
October 15, 1991
Appendix I is the projection of assessment income. The assessment rolls are expected to be
adopted 'on or before November 30, 1992, for first collection in 1993. The assessments will be
spread over ten years, requiring equal annual payments of principal with interest on the unpaid
balance at a rate of approximately 2.0% over the expected net interest rate on the bonds. We
have assumed an 8.10% for the projection of assessments. 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 II 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 1.
The bonds will be dated December 1, 1991, and will mature each February 1 from 1994 through
2003. 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
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 projected annual surplus of assessment income (Column 10 less
Column 9). The August 1, 1992 and February 1, 1993 interest payments on the bonds will be
made from capitalized interest. Thereafter, each August 1 interest payment and each
February 1 principal and interest payment is expected to be payable from assessment income.
A tax levy is not expected to be necessary. 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 $3,445. 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 $13 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 $100,000, or approximately 38% 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.
$210,000 General Obligation Equipment Certificates of Indebtedness, Series 1991 C
Proceeds of the certificates will finance the purchase of various equipment to be used by the
City. The composition of this issue is as follows:
Page 2
City of Rosemount, Minnesota
October 15,1991
Hose Truck
$ 40,000
Lawn Mower
12,000
Passenger Van
17,000
Pickup Truck
17,000
Park Vacuum
25,000
Police Squad Cars (2)
28,000
1/2 Ton Pickup Truck
14,000
3/4 Ton (4x4) Pickup Truck
18,000
Tamper
2,000
Paint Sprayer
2,500
Bob Cat Loader
25.000
Total Equipment
$200,500
Plus: Costs of Issuance
10,975
Allowance for Discount Bidding
1,680
Less: Investment Earnings
3155
Total Bond Issue 210 000
The Equipment Certificates are being issued pursuant to Minnesota Statutes, Sections 410.32
and 412.301, which allow the City to issue certificates to purchase capital equipment without a
referendum. Pursuant to Section 412.301, the City may issue equipment certificates in an
amount equal to 0.25% of the market value of the taxable property in the City without
publication of a resolution determining to issue them, and without being subject to a reverse
referendum. The City's current established market value is $318,233,500; 0.25% of which is
$795,583. The amount of the Certificates is well within this limit.
Included in the Certificates is an allowance for an underwriter's discount in the amount of
$1,680, or $8/$1,000 bond. The certificates will be repaid in five years in equal annual
installments of principal and interest from a tax levy. There is no other income source.
Appendix III shows the repayment schedule for the certificates.
Due to the rapid retirement of these certificates, it is our recommendation that the certificates
not be subject to call so that maximum marketability is achieved.
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. 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.
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.
You should be aware that the U.S. Treasury has proposed regulations which will significantly
alter the ability of issuers to utilize tax-exempt bonds to reimburse themselves for expenditures
made prior to issuance. While the proposed regulations have not yet been adopted, they will
govern bonds issued 30 days after the regulations are published unless the regulations are
withdrawn or modified. We now anticipate publication after January 1, 1992.
Page 3
City of Rosemount, Minnesota
October 15, 1991
There are three major areas of the proposed regulations which set forth the following restrictive
provisions.
1. They prohibit bonds issued after the effective date from being used to
reimburse expenditures made before two years prior to the effective date
or to reimburse expenditures paid on projects which have been in service
for more than one year upon the date of issuance.
2. They restrict the conditions under which bonds issued after the effective
date may be used to reimburse expenditures made within two years but
before the effective date. There must be 'objective evidence" that at the
time the expenditures were made the issuer intended to reimburse itself
from the proceeds of a borrowing and that the expectation was
reasonable based on historical finance practices. The reimbursement
must occur within one year of the expenditure or within one year from the
time a property or project was placed in service, if later.
3. They prohibit reimbursement from bond proceeds of expenditures made
after the effective date unless: a) the issuer declares in the public record
official intent to reimburse expenditures with bond proceeds and
describes the nature of the borrowing, the project for which the
expenditures would be made, and identifies the source of debt service
funds; b) a reimbursement is made before the later of one year after the
date the expenditure was made or one year after the date on which the
project was placed in service; c) the expenditure was incurred with
respect to a property or project which has a reasonably expected
economic life of at least one year.
If the expenditures representing preliminary expenditures for professional
fees or studies, were not expected to exceed 10% of the total project
costs at the time they were made, they are exempt from the time
limitations but are not exempt from the declaration of intent.
The 1991 Minnesota Legislature amended bond sale procedures to permit the non-public
issuance of obligations if the issuer retains an independent financial advisor. Springsted
remains a proponent of competitive bidding but sees some advantages to the new legislation.
We recommend a competitive negotiated sale where all bidders reasonably expected to
compete for an issue are notified of the pending sale and competitive bids are received but no
legal advertisement is published. The issuer benefits from eliminating the publication costs and
any risk of having an issue delayed due to the time required for publication, or the inadvertent
failure of a legal notice to be published. In our ever changing industry published notices are no
longer a critical source of information for bidders. Other than for publication you should see no
change in your issuing procedures or in the bidding results.
We recommend these bonds be offered for sale on Tuesday, November 19, with proposals
received at the offices of Springsted Incorporated at 12:00 Noon. At that time, all proposals
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 7:30 P.M. that same evening.
A representative of Springsted Incorporated will attend your meeting to provide
recommendations as to the acceptability of the proposals received.
Respectfully submitted,
c
SPR I G TE'D Incorporated v
rlw
Page 4
APPENDIX I
City of Rosemount, Minnesota Prepared October 16, 1991
G.O. Improvement Bonds, Series 1991B By SPRINGSTED Incorporated
PROJECTED ASSESSMENT INCOME
a) Includes interest from filing
date to 12/31/1993.
Page 5
Country
Hills 4th Addition
Filing
Date: 11/30/1992
Filing
Collect
Interest
Year
Year
Principal
@ 8.100%
Total
1992
1993
26,209
23,090a
49,299
1993
1994
26,209
19,106
45,315
1994
1995
26,209
16,983
43,192
1995
1996
26,209
14,860
41,069
1996
1997
26,209
12,737
38,946
1997
1998
26,209
10,614
36,823
1998
1999
26,209
8,491
34,700
1999
2000
26,209
6,368
32,577
2000
2001
26,209
4,245
30,454
2001
2002
26,204
2,123
28,327
TOTALS
262,085
118,617
380,702
a) Includes interest from filing
date to 12/31/1993.
Page 5
City of Rosemount, Minnesota
G.O. Improvement Bonds, Series 19918
Country Hills Fourth Addition
Dated: 12. 1-1991
Mature: 2- 1
First Interest: 8- 1-1992
Prepared October 16, 1991
By SPRINGSTED Incorporated
Interest rates are estimates; changes may cause significant alterations of this schedule.
The actual underwriter's discount bid may also vary.
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Total Capital-
Net
Projected
Year of
Year of
Principal
ized
Levy
105%
Assessment
Annual
Cumulative
Levy
Mat.
Principal
Rates
Interest
8 Interest Interest
Required
of Total
Income
Surplus
Surplus
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
1991
1993
0
0.00%
17,687
17,687
17,687
0
0
0
0
0
1992
1994
30,000
5.05%
15,160
45,160
0
45,160
47,418
49,299
1,881
1,881
1993
1995
30,000
5.20%
13,645
43,645
0
43,645
45,827
45,315
0
1,369
1994
1996
30,000
5.40%
12,085
42,065
0
42,085
44,189
43,192
0
372
1995
1997
25,000
5.55%
10,465
35,465
0
35,465
37,238
41,069
3,831
4,203
1996
1998
25,000
5.70%
9,077
34,077
0
34,077
35,781
38,946 -
3,165
7,368
1997
1999
25,000
5.85%
7,652
32,652
0
32,652
34,285
36,823
2,538
9,906
1998
2000
25,000
6.00%
6,189
31,189
0
31,189
32,748
34,700
1,952
11,858
1999
2001
25,000
6.15%
4,689
29,689
0
29,689
31,173
32,577
1,404
13,262
2000
2002
25,000
6.25%
3,151
28,151
0
28,151
29,559
30,454
895
14,157
2001
2003
25,000
6.35%
1,588
26,588
0
26,588
27,917
28,327
410
14,567
TOTALS:
265,000
101,388
366,388
17,687
348,701
366,135
380,702
Bond Years:
1,714.17
Annual
Interest:
101,386
Avg. Maturity:
6.47
Plus Discount:
3,445
Avg. Annual
Rate:
5.915%
Net Interest:
104,833
T.I.C.
Rate:
6.135%
N.I.C.
Rate:
6.116%
Interest rates are estimates; changes may cause significant alterations of this schedule.
The actual underwriter's discount bid may also vary.
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City of Rosemount, Minnesota
G.O. Equipment Certificates, Series 1991C
Dated: 12- 1-1991
Mature: 12- 1
First Interest: 12- 1-1992
Year of
Year of
Levy
Mat.
(1)
(2)
1991
1992
1992
1993
1993
1994
1994
1995
1995
1996
TOTALS:
Principal Rates
(3) (4)
40,000 4.50%
40,000 4.70%
40,000 4.90%
45,000 5.05%
45,000 5.20%
210,000
APPENDIX 111
Prepared October 8, 1991
By SPRINGSTED Incorporated
Total
32,232 242,232 254,345
Bond Years:
Principal
105%
Interest
& Interest
of Total
(5)
(6)
(7)
10,253
50,253
52,766
8,453
48,453
50,876
6,573
46,573
48,902
4,613
49,613
52,094
2,340
47,340
49,707
32,232 242,232 254,345
Bond Years:
645.00
Annual
Interest:
32,232
Avg. Maturity:
3.07
Plus Discount:
1,680
Avg. Annual Rate:
4.997%
Net Interest:
33,912
T.I.C. Rate:
5.258%
N.I.C.
Rate:
5.258%
Interest rates are
estimates;
changes
may cause
significant
alterations of
this schedule.
The actual underwriter's
discount bid
may also
vary.
Page 7
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON THEIR BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$265,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1991 B
Proposals for the Certificates will be received by the City Administrator or his designee on
Tuesday, November 19, 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 Certificates will be by the City
Council at 7:30 P.M., Central Time, of the same day.
DETAILS OF THE CERTIFICATES
The Certificates will be dated December 1, 1991, as the date of original issue, and will bear
interest payable on February 1 and August 1 of each year, commencing August 1, 1992.
Interest will be computed on the basis of a 360 -day year of twelve 30 -day months. The
Certificates 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 Certificate 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 Certificates will mature February 1 in the years and amounts as follows:
1994 $30,000 1998 $25,000 2001 $25,000
1995 $30,000 1999 $25,000 2002 $25,000
1996 $30,000 2000 $25,000 2003 $25,000
1997 $25,000
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 order as the City shall determine and within a maturity by lot as selected by
the registrar. All prepayments shall be a price of par plus accrued interest.
SECURITY AND PURPOSE
The Certificates 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 a street
and utility improvement project within the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $261,555 and accrued interest on the total principal
amount of the Certificates. Proposals shall be accompanied by a Good Faith Deposit
Page 8
("Deposit") in the form of a certified or cashier's check or a Financial Surety Bond in the amount
of $2,650, 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 Certificates 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 Certificates is adjourned, recessed, or continued
to another date without award of the Certificates having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1 %. Rates must be in ascending order. Certificates of the same
maturity shall bear a single rate from the date of the Certificates to the date of maturity. No
conditional proposals will be accepted.
AWARD
The Certificates will be awarded on the basis of 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 Certificates from their date to their final scheduled maturity. The
City's computation of the total net dollar interest cost of each proposal, in accordance with
customary practice, will be controlling.
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 Certificates qualify for assignment of CUSIP numbers such numbers will be printed on the
Certificates, but neither the failure to print such numbers on any Certificate nor any error with
respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of
the Certificates. 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 Certificates 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 Certificates, and of customary closing papers, including a no -litigation certificate.
On the date of settlement payment for the Certificates 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 Certificates 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.
Page:9
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Certificates, 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 Certificates, together with any other
information required by law, shall constitute a "Final Official Statement' of the City with respect
to the Certificates, as that term is defined in Rule 15c2-12. By awarding the Certificates 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 Certificates are awarded 15 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 Certificates 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 Certificates 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 Certificates
for purposes of assuring the receipt by each such Participating Underwriter of the Final Official
Statement.
Dated October 22, 1991
BY ORDER OF THE CITY COUNCIL
/s/ Stephan Jilk
City Administrator
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THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON THEIR BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$210,000
CITY OF ROSEMOUNT, MINNESOTA
GENERAL OBLIGATION EQUIPMENT CERTIFICATES
OF INDEBTEDNESS, SERIES 1991C
Proposals for the Certificates will be received by the City Administrator or his designee on
Tuesday, November 19, 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 Certificates will be by the City
Council at 7:30 P.M., Central Time, of the same day.
DETAILS OF THE CERTIFICATES
The Certificates will be dated December 1, 1991, as the date of original issue, and will bear
interest payable on June 1 and December 1 of each year, commencing December 1, 1992.
Interest will be computed on the basis of a 360 -day year of twelve 30 -day months. The
Certificates 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 Certificate 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 Certificates will mature December 1 in the years and amounts as follows:
1992 $40,000 1994 $40,000 1996 $45,000
1993 $40,000 1995 $45,000
OPTIONAL REDEMPTION
The Certificates will not be subject to payment in advance of their respective stated maturity
dates.
SECURITY AND PURPOSE
The Certificates 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
acquire equipment for City purposes.
TYPE OF PROPOSALS
Proposals shall be for not less than $208,320 and accrued interest on the total principal
amount of the Certificates. 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 $2,100, 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
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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 Certificates 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 Certificates is adjourned, recessed, or continued
to another date without award of the Certificates having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1 %. Rates must be in ascending order. Certificates of the same
maturity shall bear a single rate from the date of the Certificates to the date of maturity. No
conditional proposals will be accepted.
AWARD
The Certificates will be awarded on the basis of 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 Certificates from their date to their final scheduled maturity. The
City's computation of the total net dollar interest cost of each proposal, in accordance with
customary practice, will be controlling.
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 Certificates qualify for assignment of CUSIP numbers such numbers will be printed on the
Certificates, but neither the failure to print such numbers on any Certificate nor any error with
respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of
the Certificates. 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 Certificates 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 Certificates, and of customary closing papers, including a no -litigation certificate.
On the date of settlement payment for the Certificates 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 Certificates 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 Certificates, and said Official Statement will serve as a nearly -final
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. [.
Official Statement within the meaning of Rule 15e2-12 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 Certificates, together with any other
information required by law, shall constitute a "Final Official Statement' of the City with respect
to the Certificates, as that term is defined in Rule 15c2-12. By awarding the Certificates 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 Certificates are awarded 10 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 Certificates 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 Certificates 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 Certificates
for purposes of assuring the receipt by each such Participating Underwriter of the Final Official
Statement.
Dated October 22, 1991
BY ORDER OF THE CITY COUNCIL
/s/ Stephan Jilk
City Administrator
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