HomeMy WebLinkAbout6.g. Set Bond Sale for Well & Water Tower 4
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February 8, 1989 '
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Mr. Stept�an Jflk,Adminisirator , .
Aosemount City HaN .
2875 145th Sfreet West
Rasemount, MN 55068
RE: Recammendat#ons for the issuance of$1,320,0(� General Obligation-Revenue Water
Bands, Series 1989A
;
' Dear Mr. Jilk: ',
Enclosed for distribution to the Pubiic Utiity Cammissioh and the City Councii are f 2 copies
of our recommendations for the issuance of the water bonds. Please be sure Rich �nd Oon
� have an opportun}ty ta revlew the recammendations as well and inform us of any changes
which may be necessary.
Since the purpose of fhe issue comes under preview of the Commtssiort� w� are aftording
thempn oppo�iunity ia review the recommendations prior to the Councif's action.
' Assuming the Cammfssion approves ihese recommendatlons, we wiH attend the Councit
meeiit�g on the 21 st to establish the terms and �onditions of saie. ,
Sincerely, /'
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� Gerard 8.�liannon' � � ,
. Vice President
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RECOMMENDATIONS
FOR
THE CtTY�F R4SEMOUNT, MINNE�OTA
Sf,320,000
GENERAI.OBLIGATION-REVENUE WATER BONDS, SERIES 1389A
Study No. 3477
February 8, 1989
SPRlNGSTED Incorporated
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February 8, 1989
Mayor Ftotlan Hoke
Members, City Caunci!
Membe�s, Public Utility Commission
Mr. Stepfian Jilk�Administiator
Mr. Richard Heiti, Engineer
Rosemrwnt City Hall
2875145ih Stteet West
Rosemount, MN 55068
RE: Reeommendations for the Issuance of $1,320,� General Qbligaiion-Revenue Water
Bonds, Series 1989A
We are pieased to present to you our recommendations for the issuance of tMese bonds.
Over the last two months, City staff, TKDA, the Utility Commission and Springsted
tncorporated have examined several possibiiities for the financing and repayment of bonds
nscessary to fund the new one miilian gailon water tower #2 and wel! #8 with the associated
pumphouse, Based on those analyses, the Commission selected a bond issue in the
amount of $1,320,000 to be amortized ove� 15 principal instailments. These
recornmendations attempt to identify the components of that analysis and the basis for #hese
recommendations.
One oi the initiai concerns in designing the bond issue is the ability to �nance those costs
wi#h water uiility revenues. The City contracted with TKDA, who prepared a comp�ehensive
water system pian ciated Oetober 1988. That ptan incorporated projections of need, :bath
current and future. The estimates of future demand were incorporated into the lang-range
plan and became an integrat part of tfis projections for debt'serviee repayment. We have
prepared for your consideration five appendices relating to the revenues and the debt
servlce assoc'rated with this and futuEe �inancing needs. Wa wiii attempt to discuss each of
the appendices in these�ecommendatians.
Appendix i-Service Populatiort Est€mate 1980-1998
This appendix projects the growth in the service population far the next ten years. For yea�s
1980 through t 988, tha numbers are based upon actual experience. The future prajections
call for 30Q single-family residences per year for the next ihree years, reduced to 2� per
ysar from 1992 through 1996 and then 150 units in 1997 and 1998. Muiti-family housing
units are projected to be 20 units per year 1989 through 1993 and then f 0 units each year
thereafter. The City makes na projections for additional institutional, commercial or industrial
grow+th during those years.
indi<ina OHlce Wiar,onsin Office:
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I'ebr��ary 16, 19$9
T0: Magox Iioke
Councilmembere: Napper
Oxborough
Wa1sh
_ Wipp�rmann
FRQM: Stephan Jilk, Administrator/C1erk�
RE: Bond Sa1e Water Tower ancl Well Can� uction
The Utitities Commisaion hae utilized the expe�tise oE Jerrp
Shannan and our own staff to research the best appraach to
financing the proposed cQnstruction of a wa�er tc�w�r and we11,.
The fiaal report and recom�endation to the cvmmission bp J�rry ,
Shannan, wk�3.eh is included for paur review, was embraced bp the I
commission and tY�us has beco�s the eo�missiune recommendation ta
you.
That recommendation, verp simplp, is to authorize the s�le of
$1 ,320,0OO.Ofl in General Obli�ation/Revenue 'bonds for the purpc�sc� '
of fundi.ng the propos�d construct3on. Wh�t i� rather unique
abo�t the gackage that staff has put together here, I beli�ve, is
' that bq structuring the use of. reservea, cvnnect�.on €ees,
surchar�e fees and pro,�ections far growth in the com�un3.tp there
will b�e sufficient �unde €o not only cons�ruct the new towe�r �nd
well No. 8 but an additional three wells in the n�xt ten pesrs i.f
needed. This reflects the soundness of the water utility and a
realistic aPProach to m�nagement o€ that aperat9.on.
Jerry Shannon will be in attendance �t our meeti.ng o� Tuesd�p an�l
Rich and i will be alsa plessed to answe� anp qnestians on t'hi�
mat�er,
The requested action would b� to adopt the resolution, �lso
attached, authoxizin$ the sale.
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CITY �F xUSEMOUNT
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; Rl3S4LUTI0N 1989 -
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HESOLUTION PRQVIDI�tG FOR TiiB PUBLIC SALE
UF �1,320,000 G8N8RAL UBLIGATION-
RBVBNUE iiATBR BQNDS, SBRiES 19�9A
. BB IT RESOLVBD by the Citp Council of the Citq of Rosemount,
Minnesota , as £ol2aws:
1 . FindinQ; Kmount and Purpose. It is herebp €ound,
� determined and declared that this Citp s3�oul.d isaue
' $1 ,32a,Q00 Generai Obligation-Revenue Water Bvnd's, Series
1989A (the "Bonds") t4 defra� th� expense of improving the
City' s water util3.ty,
2. Meetin�;�Bid Q�ening. This citp Couneil. Shall maet at
the time and gY�ce specified �.n the form of Notiee of Bond
Sale attached hereto as Exhibit A for Che pe�rp[ose o€
opening and considering s�aled bids for, and awarding the
sa3e o£, the Bands. The Administrator/C2erk sh�11 open bids
at the time and p1�ce specified i.n �such Notice of Bond Sale,
;,� 3. Notice o£ Bond Sal.e. The City Administrator/Clerk 3.s °
herebq sutharized and directed to cause notiee of the .tim�,
place and purpose of said meeting to be published in the
offi.cial newsg�per of the City and in Northwestern F�.nancial
Review not less than ten (10} days in advance of the date crf
sale, as provided bp law, whieh notiee shali be in
substantiallq the forra set farth in Exhibit A atGached
hereto and hereby made a part hereof.
4. 0#fic�.a�. Terms of 4fferins�. The terms and conditia�s
of the Bonds and the ��le thereof are €ullp se� fc►rth in the
� "'Q�ficisl Terms of (?ffering,r attaehed ttereta as �xhibit B
and ttereby made a p�rt hereQf.
� 5. Offieial Statement. The City A�im�.nisLrat4riClerk and
Treasurer ancl ather off3.cers or employees of the Cit�p are
hereby suthori:zed to participate in �he preparation Qf an
off:Lcial statement tor the Bvnds.
BS IT FURTSER RBSQi.YED, the City Council of the -City of Rosemount
hereby approves the Publi.c Sa1e of �1 .320,Q00 General Qb�.fgation-
Revenue Water Bonds, Series 1489A.
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The City af Rosemoun�'RAinnesota
February 8, 1989
TKDA uses a nation-wide ratio of persons pe� singie-family dwelting of 3.25 and 2.6 for mutti-
family dwetiings, The others auerage 2.25 pe�sons per unit. Those ratios a�e muitiplied
tim�s the number of units to determine the tota! population ta be serviced within the
parameters of the service area.
Appendix ii-Water Use by Cuslomer Category 1983-1 S98
This schedule attempts to identiiy the growth in water consumption based upon the
projections af population growth from App�r�dix t. In this appendix, the residentiat average
gailons per day (calumn 2j is based upon actuai numbers through 1987. The 82.5961
gallons pe� day per capita is fixed and not projected to grow. The nationai average is closer
to 103 gallons per day. If consumption increases, then the nesd for additionai future faci(ities
may be accelerated.
Cotumn 3 represents the growth in water volume based upon the projected population
developed in Appendix l. Those numbers, caupled with the existing institutional, commercial
and industrial properties, results in total water demand (column 11). The current price per
1,000 gallons of water is 95 cents. Assuming no increase in the water rate, the water
revenues produced from these projections are shown in column 13.
Appendix 111 -Annual Surcharge Projections 1987-1988
in addition to the narma! water rates, the City has historicaily adopted a surcharge on water
users in an attempt to recover aN or a portion of debt service costs. The previous rate was
$9 pe� quarter for a single-family unit and $7 pe� mu�ipie-family unit. Other users had
various rates based upon the size of the meters. Th� Utility Commission has recommended
a surcharge equal to 5096 of the previous surcharge since projections indicate that �mount
witi be adequate to arnortize the bonds. The dwetling units are shown in columns 2-9 as
created ir� Appendix I. ThQse numbers are multipiied times the respective surcharge rates
shown in cotumns 10-18. The quarterly revenue is shown in column 17 and the annual
revenue in calumn 18. Since the surcharge wiil not be instalied until 1989, no tevent�e is
shown in 1987 and 1988.
Appendix IV-Water Utility Annual tncome PrcJections 1987-1998
This appendix attempts to iden#ity the available revenues after payment a# aperational
expensas that can be used to repay debt service and future capital expendatures. The
dperating revenues are based upon the information gene�ated in Appendices il and tii, with
basic costs such as water meter and miscellaneous expenses frozen at the i 98� level.
�perating expenses were inflated at 1°b per year plus $35,0� beginning in the years 1990,
1992 and 1595 which re�ect additionai aperating expenses as future wells come on tine.
Aiso, as each new weil comes on line, it is depreciated over a 20-year per�od. The
pro)eetions aiso show the new tower depreciated over 50 years. The resulting cash flow
demonstrates the amount of revenues available to pay debt service and future capitat costs.
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Fhe City of Rosemou�Ainnesota �
F@bTU&h/ 8, 19$�
Appendlx V-Debt Service Schedule
The bond isse�e we are�ecommending consists of the fotlowing components:
Sto�age Tower #2 $8�,0t}0
Weil #8 and Pumphouse 350 000
Engineering,Administrative 150,�
Costs t�f issuance, Contingency ��,p�
8ond Discount 19.800
Totat Costs $1,344,80p
Less: Investment Earning� �4 gpp
Net Bond Issue $1,320,0� �
The issue's st�ueture is designed to defier payments untii the 1971 and f 978 bonds have
been repaid. The totat water utility annual debt service is shown in column 9 and is
approx�mately$152,000 per year.
Appendix VI-Waier Utiifty Cash Ffow Projections
The final step in the anatysis is ta detefmine whether or not tfie revenues available wiil meet
fhe debt service requirements as we11 a� futu�e capital expenditures, in this schedule, the
net revenues avaifaale for debt are the numbers from in Appendix 1V. The debt service
generated in Appendix V has been subtracted, teaving a net annua!surplus. The City has for
severai years charged a wate� utility hookup fiee designed to defray the expenses incurced in
es[ablishang t�unk distribution casts. Hookup fees are expected tc� increase at an anrrual
compouaded rate of 296. The actuai rate is dependent on the Engineering Co�struction
Index.
The utitity has projected some additional capitat expenditures ovsr the nex# five yea�s plus
the need for three new wells during that same time period, This cash flow demonstrates that
ihe projected revenues witl be adequate to finance these costs, even if in those ysars in
which new wells are added the net annual cash flow may be negative. The cumulaiive fund
balance wilt provids su�ficient maneys ta meet these expenses and provide a fund from
whieh future additional core facilities may be financed.
Bond lssue Considerations
The Tax Reform Act af 1986 requires that issue�s of ta�t-exempt bonds reba#e to the federal
government a�y arbitrage earnings an the proceeds of the bond issue. One of the
exemptions trom tha# requirement is for lssusrs of less than $5,000,� of govemmental
purpose tax-exempt bonds in any calendar year. tt is our understanding the City does not
reasonably anticipate borrow€ng rnore than $5,000,(300 in 1989, and if that reasonable
expectatian is still valid, then this issue wiN be exempt from that requi�ernent. We
recommend the Ci#y review this expectation in order to make the necsssary judgement
regarding the exempticjn from rebate.
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The City o#Rosemaunt�innesota
Febtusty 8, 1�89
We are recommending the City offe� the bonds fdr sate on Tuesday, March 2t, with b�ds to
be �eceived in ihe offices of Sp�ingsted Incorporated at 12:00 Noon. At that time, they wiil
be opened and verified fo� accuracy and then presented to the Council fo� ac#ion that same
even'tng at your regular meeting. The bonds wiil be dated April i, i 989 and wili m�ture on �',
Feb�uary t in the years 1991 through 2005. The fiirst interest payment an the bonds will be '
February 1, 1990, payable from revenues of ihe utility generated during 1989. Each yea�,
ihe earnings of the calendar year will be used to pay the August t in#erest payment during
that year and the totlowing February t principal and interest payment. We are
recc�mmending the bonds maturing in the years 1998 through 20�5, representing �910,C�0,
or 68'�G6 of the issu�, be cailable by the City as early as February 1, i 897 without penaity.
this wiit petmit the Ciry to prepay ar refinance these bonds at some future date if conditions
warrant. We do not anticipate there wili be any penaity for retaining thi�c�l#provision.
We look forward to a very succe�sful sale af these bonds and would expect that proceeds
wilf be avalla�ble to the City in mid-ApriL
Respectfuily submitted,
.-.
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...��...�c.e-�u-
SPRING ED Incorporated
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Ctty of Rosemount, Ninnesota Prep�ared: 02/O7l89
Serviced Populatipn Estimate 1980-l998 By SPR3NGSTED Irtcorpwrated
Qwelli� Serxices Servic.�f Popuiation
----------------------------------�--- --------------------------------------- s,
. ' PersonsltMre 1 i i�: 3.25 2.60 2.25
Singte S ingte
�ear Famiiy t�ltiple Other Totnl Family Muitiple Other lutal
�i� �2) �3j �4I {5) (6j �71 �8j (�) . �
2980 880 347 0 3.027 2.860 382 0 3.242
1981 904 285 0 I.089 2.938 48I 0 3.419
1982 9&B 2Q8 34 1.21Q 3.146 541 77 3.764
3983 ' 1.013 208 68 1.2B9 3.292 541 153 3.986
1984 1.085 2t�8 f2I 1.420 3.526 511 286 4.353
1985 1.125 20$ 168 I.SQI 3.656 541 3T8 4,S1S
i986 1.189 208 18Q 1.5)1 3.864 541 !OS 4.810
1987 1.322 240 }80 1.742 4.297 624 �QS 5,326
1988 1.776 260 I8Q 2,216 5.I72 6T6 405 6,853
1989 2,0T6 280 180 2,536 6,T47 T28 405 J'.884
1990 2.376 300 t80 2.856 7,722 780 405 8.90I
1991 2,6I6 320 180 3.1)6 8.69T 832 105 9.934
1992 2.876 340 Y80 3,396 9.3dI 884 405 10.636
1993 3.076 360 I80 3,626 9.99) 936 405 11.338
1994 3.276 370 180 3.826 10.W7 962 405 12.OI4
1995 3,476 384 180 4.036 11.29T 988 4Q5 12.69D �
1996 3,676 390 18p 4,246 11,947 1,014 4l15 13,366
1997 3.82fi 400 180 4.406 12.435 1.Q40 445 t3.880
1598 3.9T6 410 180 4.566 12.922 1.066 405 I4.393
klotes: (a) 6rowth fraar iS80 to 1988 is actual,
(b) Annual pro,�ect�d increases fo� 1989 through 1988 are as foilaws:
� Single f�ilY 1989-91 300 unfits �
m . 1992-96 200 units �
� 1997-98 15Q units ' t'�1
Multipie famyly 1989-93 20 units �
1994-SS 10 units }�
(c} Perso�s per dwe3ling avera9es provfded by TKDA_
City of Rasemount. Minnesota Rrepared: Q2/07/89
Nater Use 8y Gustomer Category 1983-1998 By SPRINGSTED tncarporated
1,�
Res. Avg. Residential Institutional Cexrmercial Ir�strial Price
6all�s --------------- --------------- --------------- --------------- 7otaT Per
1 Day Ga 1 tons Of X 6a 1 lons Of X C,a 1 lons Of X �a t lons Of X Ga i lons Qf 100� Water Sa les �� �
ltear / Capita 4later Sold Said Yater Soid Sold Mater Soid Sotd IJater Sold Sold Yater Sold failon& Revenue
l�1 �Zj �3� f4l l51 (6} OI (8) 19) �ZOI I211 �121 (13j
1983 70.5881 97,404,400 80.9X 11,881,000 9.9X 8,431,Q00 l.QX 2.662,000 2.2X 12Q,378,OQ0 j0.95 ji14,359.10
1984 70.1534 142,713,000 8Q.4X 10,665,ti00 8.3X 11,141,OQ0 9.ZX 2,691,a00 2.iX 127,810,f?00 0.95 121,429.50
1985 )1.SQ24 1 U.100,000 78.8X 11,471.Q00 7.7X 16,786,Q00 21.3X 3,I53,080 2.1X 148,510,000 0.95 IAi,U84.50
I986 76.2918 120,993,000 80.8X 10,189,000 7.2X 16.4S2,OQd 11.QX 1,460,OQ0 l.074 149,694,000 0.95 142,204.30
198T 82.5961 i46,324,000 82.4X 11,005,Q00 6.2X 15,998,008 9.OX 4,305,000 2.<X 177',632,d00 0.95 268,750.40
1988 62.5961 I91,729,tiD0 Bfi.OX 11,005,000 4.9X IS,998,QOQ 7.2X #,305,OpQ 1.9X 223,037,000 Q.95 211,885.15
1969 82.59SI 222,266,a00 81 JX 11.Od5,Q00 4.3X 15,998,000 6.3X 4,305,000 i.7X 253,514,Od0 0.95 240,895.30
1990 82.5961 252.804,000 89.OX 11,OQ5,000 3.9X 15,998,000 5.6X 4,305.U00 I.SX 284,112,0U0 0.95 269,906.30
1991 82.5961 ?83,341,OQ0 SQ.QX 11,OOS,OQO 3.SX 15,998,OD0 S.1X �,305,000 1.4X 314,649.000 0.95 298,916.55
1992 82.5961 304,235,t}00 90.7X 11,005,000 3.3X 15,998,000 4.8x 4,305,Q00 1.3X 335,523,000 0.95 318,746.85
1993 82.596t 325,088,Ofl0 91.ZX 11,045,Q00 3.1X 15,998,Q00 4.SX �,305,0� i.ZX 356,396,000 0.95 338,576.20
199� 82.5961 345,189,000 91.7X 11,Q05.Q00 2,9X 15,998,040 4.2X �i.3Q5,000 1.1X 3T6,497,000 0.95 351,6I2.25
1995 82.5961 365,290.000 92.iX I1,Q05,Q00 2.8X 15,998,400 4.0lG 4,305,004 1.Ix 396,598,OD0 0.95 378,76$.10 �
1996 82.5961 385,390,OttlO 92.SX 11,005,0� 2.6X 15,998,d00 3.8X 4,305,OQ0 I.OX 416,698,000 0.95 395,863.10
199t 82.5961 40U,&74,OQ0 92.8X t1,405,QQ0 2.SX 15,898,Q00 3 J!t 4,305,000 1.OX 43i,982,00Q 0.95 410,362.90
1598 8Z.5962 415.928.000 93.0'X I1,OQ5.000 2.SX 15.998.UQ0 3.6X 4,305.�0 1.OX 447.236.0�0 8.95 A24.$T4.20
Natesc (aj 1983-87 are actual.
(b) Column 2 average residential gallons per day are based on 1987 actaat with no projected increases.
(c} CoJum� 3 resideatiaT gattons sald is the product of Goturr� 2 tiiaes Appendix I (Cols. 6+1).
� (d) No additipnal projections were made for insYitutianal, ca�erciat or industrial grarth. �
c�t> f"�t1
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C�ty of Rosaeou�t„ Mi►tineaata Prepared: U2101f89
Annual SurcMr� Projecti�s 1987-1998
By SPRINGSTEO Incorporated
fkreilings per Surcharge Category
Year Sir�le Mutt. �.. ---2N-------- ------- ---- --------- ---------
(2) �2) I3) (dj f5) f6) �J� ��� To�9}
2987 2.322 244i l6fi B 3 3 2 1.742 •
� I988 I,TT6 260 266 8 3 1 2 2.236
1989 2.076 280 16fi 8 3 1 2 2.536
199Q 2.316 30D i66 8 3 1 2 2.856
1991 2.6)6 320 166 8 3 1 2 3.176 �
1992 2.876 3<0 166 8 3 l 2 3.396
1993 3.Q76 360 166 8 3 1 2 3,616
1994 3,216 370 166 8 3 1 2 3,&26
1995 3.476 380 i66 8 3 1 2 4.036
1996 3.616 390 I66 8 3 1 2 4.2A6
. 1497 3.826 4EFQ 166 8 3 1 2 4.406
1498 3.976 410 166 8 3 1 2 A.566
Surcharge Revenue
------------------------- ---------------------
Qtr. Rate: t4.5t1 53.50 �6.75 S15.T5 Y23.50 �35.00 =77.SQ Quarterly---`--Annual '
Year Single i�it_ 1" 2" 3« 4« 6•• Revenue Revenue
�1� �10) �11} �12) �13) f14} (15j �I6) (lTl (ig)
1987 55.949 �BtQ S1.I21 �126 ;71 S35 5155 N/A NIA
1S8$ 7.�Z 910 I.IFl 126 �1 35 155 M/A N/A
1589 9.342 980 1.121 126 71 35 155 11.830 47,320
1990 T0.69F 1.050 1.121 �26 tl 35 155 I3.250 53.OQ0 �
1991 12.042 1.12Q 1.121 126 71 35 155 14.fiJ'0 �g,�gp
1982 IZ.942 1,190 1,12i I26 71 35 ISb 15.640 62,5fi0
1993 13.842 i,26tt i.121 126 71 35 155 16.610 6&.440
2994 14.I41 1,295 1.121 126 71 35 755 17,545 T0.26fl
1995 15.W2 1.330 t.i21 126 71 35 I55 18.480 73.92Q .
1396 26.512 i.365 1.121 126 71 35 155 19.�15 1J.660
1997 17,21T 1.�0� i,121 126 7t 35 I55 28.123 80.500
1998 If.�2 1.+435 i.121 }26 71 35 155 20.835 83.340 A
� �
�
� aotes: �aj Annuai revenue is the Rroduct of the dwe}lirtgs per categcury, colca�s (2} through (8}, times m
eg �
.� the quarterly surc�rge rate per category, Cotumns (10} through (16j. The quarterly totai is
colu�r (23j and the annua} totai is column (16).
(b) The rates are based pn 50X of tt� City's peevious surcharge rhich was instituEed to pay �
previous bond issues. tt was discontinued in I984, --
City of Ros�mount. Minnesota Prepared: OZ/87/89
Water Utility Annual Income Projections 1987-1998 By SPRINfiSTED Ineorporated
29$T Water
Restated 1988 1989 1990 1991 1992 1893 1994 2995 1996 1997 1998
(2) f3? t4) {5) �6y �7) t8} (9} (10} �il) E22�, �i�}
Qperating Revenue ..
(a) Yater 5ales �' j264,722 s211,885 �240,895 5269,946 �298,91T i3i8,741 j338,ST6 �357,672 s316,T68 5395,863 �420,383 S424,$14
(b) Water Meter Main finance 9,364 9,364 3,364 9,364 9.364 9,364 9,364 9,364 9,364 9,3G4 9,364 9,364
(b) Water Meters 11,840 1i.840 11,840 11,840 11.84� 11.84Q 11.840 11,840 11,840 11,840 11,84Q 11,840
(b) Miscellaneous a.548 T.548 7,548 7,548 7,548 T,548 1,548 7.548 7.548 ),548 1.548'• 7,54�
(cj Surcharge 0 0 4I,320 53,000 58,68p 62.560 66,440 70,18Q 73,920 77,fi60 80,500 83,3�0
Total �perating Revenue �193,414 5240,fi3? 5316,961 t351,658 5386,349 5410,059 5433.768 5456.604 f479,440 5502,275 ;519,635 ;536,966
.. . . � xmeazaaa ss�:ssms ss:a:ssz snszszsz asssmsss szs�zmsa aaassasa l;i=i==i Zi/iiSCL aaaa:=aa scaasaa.mz zssassas �
Operating Expenses
(d} f�nerai & Administration 552,293 �204.61d S1Q5.721 SI41.T78 5143.396 5378.628 5181.424 5183.238 5220.0J0 5222.271 5224,494 S226,739
fbj itater Utility Supplies 1T,236 17.�08 17,562 I7,758 17,936 18,115 I8,296 I8,4I9 18,661 18,851 19,Q4� k9.23p
(b) Vater Utitity Other 21,425 22,629 21,845 22.063 22,284 22,507 22,J32 22.959 23,189 23,421 23,655 23,892
(e) Oepreciation #1.298 41.298 79,148 I9,148 94.id8 94,148 iQ9,148 109.148 124,148 124,148 I24,148 124,148
.7ata} Qperating Expeoses ti92.242 5185,009 =224,296 5260,141 s217,564 5314,398 5331.64d s333.824 t386.0Ti ;388,692 ;351,33J 3394.Q09
. . . . � asssmss:. sssssass�. assss:ss sssssass sssss�:s zasaa:zs . �asmsae:ss � syzss:sm � ssssm:rs. s:ass:sa axmss�esx aassmsa�t . . .
Total Operating Income s61,232 555,628 592,671 �90,911 �108,185 �95,661 Sid2,168 5122,f80 593,369 �113,584 5128,298 5142.95)
(bj Interest Earnings 17,374 17,374 }T,374 i1,374 17,3T4 17.ST4 11,314 11,374 17,3t4 17.374 17,314 11,314
(e} pepreciation 41,298 41.298 79,148 T9,148 94,1�8 94,1A8 109,148 1Q9,148 124,148 224,148 124.148 124,148
----- ------ -------- ---....�-- -------- -------- -------- -------- -------- --------
(fj Net Incaae Available �119,944 Si14,300 si89,193 ;I81,433 =220,30T �207.183 �228,690 �249,302 �234,891 5255,10& 5269,820 5284,479
(e) Less Deprec. for Maint. 0 0 0 tt 0 0 p q p 0 p p
(fj Net Funds Avail. far Debt ;119.9Q4 �114,3q0 5289,293 sl$7,433 5220.307 s207,i83 t228,690 =249.302 5234,891 5255,IQ6 5269,820 =284,4J9
� � � � � saas;aax eassart;= msasaszms � a:assess . saaaazas :�assass � s�asa=ss aszassa6m sas�zmax� . sszsssa= � s:atmc=ms aaaazaaa� . ..
Notes: {ej Frcm pPpendix II. Calumrr 13. 198T differs slightly due to restated �udited figures.
(b) 1983 actuats, no pro,#ected increases. �
� {c} fran Ap�undix II1. Caiumn 18. �
� fu
� (dj Expenses inflated at iX plus S35,QOO in the years 199D, 1992, and 1995 to reflect the additionat operating casts of new wells. rn
p� (e) Depreciatton expense inctudes the new wells amortized over 20 years. The cast is added back inta avaiTabte revenues to pay debt service '(�Z"
or new capitai costs. �
(f} The r�naining funds available to pay debt service and capital costs. �
City of Rosemount. Minnesota Prepared February 7. �9$y
51.320,004 6.0.- Reveaue 4later UtiliEy By SPRINGSTEQ Incorporated
Bonds. Series 19&9A
Dated: 4- 1-I889
Maturt: 2- 2
Total 11-I-72 5-1-76 Totat
. , Tear of Year of Principal Wter Bonds Yater 8onds ' .
Rerenue Mat. Principai Rates Interest 3 Interest Debt Pmts Debt Pmts Serv�e
EI) (2I �31 �4) (5j (6j f7} l81 �9)
1989 1990 0 fl.E10X T4,415 ?4.415 34.230 18.005 126.650 . . •
1990 1991 15.0� 6.25x 89,298 104,298 32,670 17.120 354,Q88
1991 I992 20.fW0 6.3QX 88.360 308.360 21.080 21.220 150.6&0
1992 1993 65.OQU 6.35X S7R100 152.1QD 0 0 152,100
1993 199,1 70.00Q 6.40X 82.9T2 152.9t2 0 0 152.972
1994 1995 T5.000 6.45X 78.�92 153.492 0 0 153.492
1995 1996 80.000 6.6QX 73.654 253.654 0 Q 153.654
1996 1997 85.00Q fi.65X 68,374 153.374 0 0 153.314
1991 1998 9Q.OQ0 6.7QX 62.J21 I52.721 0 0 152.722
1898 1999 95.000 6.75X 56,691 251,691 0 0 151,691
I999 2000 100.QOQ 6.80X 50.2)8 150.278 0 0 i50.Zt8
Z000 2001 110.000 6.SSX 43.418 153.4I8 Q 0 153.418
2001 2002 115.000 6.9QX 35,943 15Q,943 0 0 i5D.943
2002 2003 12S.Ob0 B.95X 28.008 153.tW8 Q 0 153,008
2�3 2004 135,�0 7.QOX 19.32Q 154,320 Q 0 154,320
2QQ4 20d5 140.f100 7.05X 9.870 14$.8T0 Q 0 149.810
TOTALS: 1.320.040 948.974 2,268.914 81.98� 56.345 2.413.295 �
Bond Years: 13.860.00 Annual Interestc 948.ST4
Avg. Maturity: IQ.50 Pius Disccwnt: 19,800 '
Avg. Mnual Rate: 6.847X ket Interesf: 968.174
N.I.C_ Rate: 6,990X
'O - _ � '
w Interest rafes are estimates; changes awy cause significant alterations of this schedule. �
� �
� The actual underwriter's discounC bid a�ay also vary.
tD �
7C
�
City of Rosemount, Minnesota
Prepared: Ox/07l89
�ater tltility Gash Ftar Projectia�s By SPRIMGStE� lncarporat�d
1988 1989 199Q 1991 1992 2993 1994 1995 1996 1997 1998
fl) �2� �3) E4y f�} �6) �7} �8l I9) I2Q1 �11)
------ 15 1'sar Debt Service ------
(a� Met Revenue Availabie For Oebt 5114,300 s189,193 ;187,433 i220,307 Y207�183 :228,690 s249,302 5234,891 5255,106 S269.820 '''�284,4T9
(b) Less Debt Requirement (15'Year) 0 126,650 154,088 150,654 152,100 152,9f2 253,492 153,654 I53,37A 152,121 152,691
--- ---------- ---------- ---------- ---------- ---------- ---------- ----------
(c) Projected 5urplus (Deficit) ;114,3Q0 �62,543 �33,345 569,641 S55,Q83 =75,718 �95,810 581,231 5101,732 `t121,099 �132,788
(da Pius Depreciation Aliocation 0 0 0 0 Q 0 0 0 0 � , ' � �
(ej Plus Hook Up Fees 63p,Op0 290.88Q 296,640 302,720 2I2,300 216,480 210,840 2I5,040 219,240 U0,�00 173,76�
------- ---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ----------
(f} Available For Capitai Expenditures �r44,300 Y3S3,423 �329,985 s372,367 s267,383 s292,19$ Z306,650 s296,2J7 s320,972 5281,A99 S3t16,548
(g) Less Capital Expenditures 0 Id9,200 18,000 27,60Q 62,4QQ 63,600 36,Od0 0 0 0 p
(hj tess New Yell 0 0 300.000 0 30�.QOQ 0 3QQ.QOU Q p p �
------- ---------- ---------- ---------- ---------- ---------- ----------
(i) Net Annuat Surplus (Deficitj ;144,300 =244,223 511,985 5344,J67 (S95.DI7) 5228,598 (329,350)` ;296,277 r320,972 ^ t281,499 5306,54$
. . . . zxaszassas sa:s:ssmsa ss:sxzzsmx a:asmaassz ssasssasas msesssssss sass.azasm: mzszaa::as :saca�saaz ssasszsass a�saazassm .
(j) Cunulative Surp}us (Deficit) S74d,300 =988,523 =1,040,509 f1,345,275 =1.250,258 s1,6J'8,856 ;1,449.50T s1,745,784 52,066,756 S2,3S4,255 52.660,843
� � . � � � . . � . .zssszssaas sas:saaasm aaaasmsams satccasssaa x:asaasssR asaza=ssas asasas:za�� xmssa�szsz a=sa=�aaar. �assassaag seaaaaasma �
Footnotes: (Line Nwabersj
(a) Fram Appendix VI
(b) From Appendix V. Gotu�t 9. The year of revenue (i.t. 1990) pay the follorring year debi aervice (1991}.
(cj Operating Funds available after payiny debt service to meet future capitet expenditures.
(d} Fuli depreciation has aiready been included as availabie revenue i� Seheck�te A. �
{e� The 1988 fees represent the current fund balance. The projected fees and aunber of twok ups, by year, are as follotirs:
Fbobc Up Fees 5909 5927 �946 �9fi5 5984 s1.004 j1,�24 51,044 51.065 " 51.08fi
N�er of Nook Ups 320 324 320 220 220 210 210 210 I60 I60
(f) Net Funds available to meet future capital expenditures.
(g) Future capital expendfitures i�ntified by Utility ataff.
(h) Three new wetTs identified by Utility staff.
(i) Annual surplus (defieft) of Utftity eash flav after paying ati debt service and eapitai costs.
� (j) Gumulative surpTus {cieficit} of UtiTity cash fl�+ afte� paying ail c�bt service and capital costs. �s
N
� ��
O Z
�
k
�
+
i !-
} �FF#�1A�TERMS OF CIFFERlNt� �
. 51,320,OOQ
C1TY OF Rt1SEMOUNT, MiNNESOTA
GENERAL 48LtGATtON-REVENUE WATER 80NDS, SERIES f 989A
5ealed b�ds for ihe 8onds will be opened by the City on Tuesday, March 21, 1989, at 12:0(1
Noon, Cantral Time, at the offic�s of SPRINGSTE� lncorporated, 85 East Seventh Place, Su�te
10Q, Saint Paul, Minnesota 551 01-21 43. Consideration for award of the Bands wiil be by the
City Council at 7:30 P.M.� Central Time, of the same day.
�ETAILS OF THE BONDS
The Bonds wiil be dated Aprit 1, 1989, as the date of orlginal issue, and wiN bear interest
payable on F�bruary 1 and August 1 of each year, commencing February 1, 199t3. interest wi11
be computed upon the basis of a 360-day year of tweive 30-day manths and wili be rounded
pursuant to rules of the MSRB. The Bands wiN be issued in ihe denamination of$5,t�0 each,
or in integtai rnuitipt�as #hereof as requested by the Purchaser, and fuily r�gistered as to
principa! and interest. Principal will be payable at the main corporat�o#fice of the Regist�ar and
interest on each Bond will be payable by check or drait of the Reg�strar mailed to the registered
holde�thereof at his add�ess as it appears on the bc�aks of the Registra� as of the 15th day o#
the calenda�month next preceding the interest payment.
The Bonds will mature February 1 in the amounts and year� as foilows:
$15,000 1991 $75,000 1995 $ 95,Q00 1999 $125,tX}0 2003
$20,000 1992 $8t1,00Q 1996 $100,OOQ 2000 $135,tX?0 2044 '
$65,OOQ 1993 $85,t�0 1997 $110,000 2001 $140,004 2045
$70,0�0 1994 $90,000 1998 $115,0� 2002
OPTIONRL REDEMPTiON
The City may elect on February 1, 1997, and on any interest payment date thereaft�r,to prepay
Bonds dua on or after Feb�uaryt, 199t3. Redemption may be in whole ar in part ot #f�e Bonds
sub)ect to prepayment. If redemption is in part, those Bonds remaining unpaid which have the
latest maturity date wili be prepaid �irst. If only part of the 8onds hav�ng a common maturity
date are cailad for prepayment the spec�ic 8onds to be prepaid wilt be chasen by lot by the
Registrar. All prepayments shail be at a price of par and accrued interes#.
SECURIIY ANO PURPOSE
The Bonds will be generai Obligations of the City for which the City wifl pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City witl piedge net
revenuss of the City's water utility. The proce�ds will be used to finance improvements to the
City's water utility.
- TYPE OF 81D
A sealed bid for not less than $1,300,200 and accrued interest on the total principat amaunt ot
the 8onds shall be f�led with the undersigned p��or to the time set for the opening of bids. Aiso
prior ta the time set for bid opening, a certi�ied or casMiePs check in the amount of $13,200,
payabie to the order af #he City, shall have been filed with the undersigned or SPRINGST�D
Incorporated, the City's Finat�ciai Advisor. No bid wiil be considered for which said check has
not been tifed. The check of the Pucct�aset wili be retained by the Ci#y as liquidated damages
+n the event the Purchaser fails to camply with the accepted bid. The City wil! deposit the
check of the Purchaser, the amount of which wiil be deducted at settiement. No bid shaH be
Page 11
. , �
. �,
� •
� withtlrawn �fter the iime set for opsning bids unless the meeting of the City scheduled for
consideratian of the bids �s adjoucned, recessed, of continued to anothef date without award of
the Bonds having besn made. Aates offe�ed by Bidders shaii be in integrai muttiples of 51)�
or 1!8 0# 19b. No rate for any maturity sha11 be rnore tfian 1°6 lower than any prtar rate. Bonds
of the same maturity shali bear a singie rate from the date of the Bonds ta the date of maturity.
AWARD
The Bonds will be awarded to the Bidder offering #hs lowesf dollar interest cost to be
determined by the deduction o# the premium, i# any, from, or the additlon of any amount less
than par, to the total dollar intecest on the Bonds fram their date to thei� finat scheduled
maturity. The City's computation of the totat net dollar interest cost of each bid, in acco�dance
with customary practice, wiU be controiling.
The City wilt reserve the right to: (i) waive non-substantive fnformalities of any bid or of rnatters
relating to the receipt of b�ds and award of the Bonds. (ii) reject ali bids without cause, and, (iii)
�eject any bid which the City determines to have failed to campty with the terms herein.
' REGISTRAR
The C�ty witl name the Regist�ar which shail be subject to applicabfe SEC regulatians. The City
wip pay for the services of the Registrar.
' CUSIP NUMBERS
If the Bonds quality for asstgnment of CUSIP numbers such numaers will be printed on the
Bonds, but neither the failure to pcint sucM numbers on any Bond nor any error writh respect
thereto will canstitute cause for failure or refusa! by the Purchaser to accept deiivery of the
8onds. The CUSIP Service Bureau charge for the assignment of CUSIP identifrcation nurnbers
shail be paid by the Purchaser.
SETTLEMENT
Within 40 days foilowing the date of thei� award, the Bands wili be delivered without cost to the
Purehaser at a place mutualiy satisfactory to the City and the Purchaser. ��livery will be
subject to receipt by the Pu�chaser of an approving 1ega1 opinion of Briggs and Morgan,
Pro#assional Assc�ciation of Saint Paul and Minneapolis, Minnesata, which opinit�n wili be
printed on the Bonds, and of customary closiny papers� inciuding a no-1i#igation certi�cate. On
the date of settlement payment fcsr the Bonds shail be made in federai, or equivalent, funds
which sfiail be received at the of�ces of the Cily, or i#s designee, not later than 1:Ot� P.M.,
Centrai Time. Except as compliance with the terms of payment for the Bonds shali have been
made impossible by action of the City,or its agents, the Purchaser shaU be liabie to the City for
any lass suffered by the Cit�r by reason of the Purchaser's non-compliance with said terms for
paymen#.
OFFtCIA�STATEMENT
Unden+vriters may obtain a copy of the �fficial Statement by request to the City's �ir�anc}al'
Advisor prior to the bid opening. The Purchaser wiA be provided with 25 copies of the flfficial
Statement.
Dated February 2i, f989 BY ORDER OF THE GITY COUNCti.
/s/S#ephan Jilk
AdministratQr-Clerk
Page 12