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HomeMy WebLinkAbout7.a. 1988 Bond Sale AuthorizationTO: Mayor Hoke City Councilmembers Napper Oxborough Walsh Wippermann FROM: Stephan Jilk, Administrator/Clerk/ DATE: August 12, 1988 RE: 1988 Bond Issues/Authorization of Sale $2,750,000 G.O. Bonds $1,395,000 Revenue Bonds ITEM 7(a) City staff has reviewed the financing needs for several development related projects and the expansion of the city's water system for 1988-89. We have met twice with Jerry Shannon of Springsted, Inc. to discuss such issues as bond size, terms of payment and assessment paybacks. Springsted has completed and submitted their recommendation as to the sale of bonds to meet these needs. A copy of that recommendation is attached in its entirety. In simple terms the recommendation is to issue two separate bonds at this time. One would be in the amount of $2,750,000 to finance the construction projects listed, and the second specifically to finance the construction of the new city well and reservoir. This is all outlined in the attached memo. Jerry Shannon will be in attendance at the meeting to go into further detail on the bond sale and answer questions you may have. Staff recommends you authorize the sale of the bonds and request the receipt of the bids on September 20 by adopting the attached resolution. smj Attachments EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF ROSEMOUNT, MINNESOTA HELD: August 16, 1988 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 August, 1988, at o'clock .M. The following members were present: and the following were absgnt: Member introduced the following resolution and moved its adoption: RESOLUTION PROVIDING FOR THE PUBLIC SALE OF $2,750,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1988B 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 $2,750,000 General Obligation Improvement Bonds, Series 1988B (the "Bonds") to partially defray the expense of constructing various improvements within the City. 2. Meeting; Bid Opening. 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 considering sealed bids for, and awarding the sale of, the Bonds. The Administrator -Clerk shall open bids at the time and place specified in such Notice of Bond Sale. • 0 3. Notice of Bond Sale. The City Administrator - Clerk 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 Commercial West 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 -e part hereof. 5. Official Statement. The City Administrator - Clerk 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. 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. 2 536H STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF ROSEMOUNT Ll I, the undersigned, being the duly qualified and acting Administrator -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 $2,750,000 General Obligation Improvement Bonds, Series 1988B WITNESS my hand as such Administrator -Clerk and the official seal of said City this day of , 1988. (SEAL) 3 City Administrator -Clerk EXHIBIT A NOTICE OF BOND SALE $2,750,000 CITY OF ROSEMOUNT DAKOTA COUNTY MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1988B Sealed bids for these Bonds, will be opened by the City Administrator -Clerk, or his designee, at 11:00 o'clock A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, in Saint Paul, Minnesota 55101-2143. Consideration of the bids and award of the sale of the Bonds will be by the City Council at the City Hall in Rosemount, Minnesota at 7:30 P.M. that same day. The Bonds will be dated October 1, 1988, as the date of original issue. Interest will be payable on August 1, 1989, and semiannually thereafter. The Bonds will be general obligations of the Issuer for which its unlimited taxing powers will be pledged. The Issuer will designate the Bonds as qualified tax-exempt obligations. The Bonds will mature on February l in the years and amounts as follows.- Year ollows: Year Amount Year Amount 1990 $300,000 1995 $300,000 1991 300,000 1996 300,000 1992 300,000 1997 250,000 1993 300,000 1998 200,000 1994 300,000 1999 200,000 All bonds maturing on or after February 11 1995, are subject to prior payment on February 1, 1994, and any interest payment date thereafter at a price of par plus accrued interest. Sealed bids for not less than $2,707,637 and accrued interest on the principal sum of $2,750,000 will be accepted. An approving legal opinion will be furnished by Briggs and Morgan, Professional Association, of St. Paul and Minneapolis, Minnesota. The proceeds will be used to finance a portion of the cost of constructing various improvements within the City. 4 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. Dated: August 16, 1988. BY ORDER OF THE CITY COUNCIL /s/Stephen Jilk City Administrator -Clerk Additional information may be obtained from: SPRINGSTED INCORPORATED 855 East Seventh Place Suite 100 Saint Paul, Minnesota 55101-2143 Telephone No.: (612) 223-3000 5 EXHIBIT B OFFICIAL TERMS OF OFFERING $2,750,000 CiTY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1988B Sealed bids for the Bonds will be opened by the City on Tuesday, September 20, 1988, at 11:00 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101-2143. Consideration for award of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the some day. DETAILS OF THE BONDS The Bonds will be dated October I, 1988, as the date of original issue, and will bear interest payable on February I and August i of each year, commencing August 1, 1989. Interest will be computed upon 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 his address as it appears on the books of the Registrar as of the 15th day of the calendar month next preceding the interest payment. The Bonds will mature February I in the amounts and years as follows: $300,000 1990-1996 $250,000 1997 $200,000 1998-1999 OPTIONAL REDEMPTION The City may elect on February I, 1994, and on any interest payment date thereafter, to prepay Bonds due on or after February 1, 1995. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid which have the latest maturity date will be prepaid first. if only part of the Bonds having a common maturity date are coiled for prepayment the specific Bonds to be prepaid will be chosen by lot 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 assessment income from benefited properties. The proceeds will be used to finance a portion of the costs of various improvement projects within the City. TYPE OF BiD A sealed bid for not less than $2,707,637 and accrued interest on the total principal amount of the Bonds shall be filed with the undersigned prior to the time set for the openin of bids. Also prior to the time set for bid opening, a certified or cashier's check in the amount of 27,500, payable to the order of the City, shall have been filed with the undersigned or SPRiNGSTED Incorporated, the City's Financial Advisor. No bid will be considered for which said check has not been filed. The check of the Purchaser will be retained by the City as liquidated damages in the event the Purchaser fails to comply with the accepted bid. The City will deposit the check of the Purchaser, the amount of which will be deducted at settlement. No bid shall be withdrawn after the time set for opening bids unless the meeting of the City scheduled for consideration of the bids is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates offered by Bidders shall be in integral multiples of 5/100 or 1/8 of 1%. No rate for any maturity shall be more than 1% lower than any prior rate. Bonds of the some maturity shall bear a single rate from the date of the Bonds to the date of maturity. No bid may be conditioned upon award of any other offering of obligations by the City. 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. 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 1:00 P.M., 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 Underwriters may obtain a copy of the Official Statement by request to the City's Financial Advisor prior to the bid opening. The Purchaser will be provided with 50 copies of the Official Statement. Doted August 16, 1988 BY ORDER OF THE CITY COUNCIL /s/ Stephan Jilk Administrator