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Home My WebLink About7.c. 1988 Bond Sale Project Revision � � � °�" � �� {� ��,�. �;�,, '�� l�t� f) � � � � ;fzl, , � ��i :,� ti" w �� r�c�sr�nn�,E�r�i nnir�r��i �,i n � ,�>�. � �, � , ��x�'' �.,osernvuyt,� � � ,.�:, ,,,, ,�:� ,�wY�� L T�'�'1 ��, . T0: Mayor Hoke Councilmemhers : Na�per Oxt�orou�h Wa1sh Wippermann FROM; Stephan Jilk, Ac�ministr�tor/Clerk DATE: October 28, 1988 RE: 198�3 �3ond Sale Pro jeet Revisi�n �ttachecl please find a letter fram members of the Springstecl staff outlining steps the ci�y neecls to take in re�ard to this years bond sale and the projects we have included to be financed. 3erry Shannon and Nancy Langness have done a thorough job in explainin� the situation and what we need to accompiish on Tuesc�ay evening, Except for a brief v�rt�al summation on TueSe�ay, I will adcl no more at this time except to recommend ti�at Uoth actions, as outlined in the letter, be taken. lj �� `�� :.��-��l8�+��T�IC�► � � � � �� '�� .�� Nt�r�t�c ��ir!nr,tz;t- ni�vi�o��; � � � � � � � � . � ,_�� ,�,�<,�,v,�iiu,f'f;,�t, c;�u��r, �ur) � �� . . . . . . . . � Sriit�!`:ul.��"U�n�,;UI�3 f�51111�;t�1,13 � � � � � � � � � � �;I "�t.:'.rirli) � � �� I n t r l:':.''t. {r)I)? f}ctaber 26, 1988 Mr. Stephan Jilk, Administrator Rosemount City Hall 2875 - 145th Street West Rosemount, MN SS068 RE: $2,750,p00 G.O. Improvement Bonds, Series 198$B Dear Mr. Jilk: This letter is to confirm the information given and decisions made in our te2ephone conversation with you andfor yoar staff inembers cluring th� past few weeks. When bond counsel reviewed your 429 improvement transcr:ipts Collowing tlie sale of these �iands, a discre��rtcy in tlic� do1l.r�r nmou�3t w<�s ci35- covered for Pro�ect �i190, Shannon 1ii11s Addition. A cost of $396,00� was included in the hond 3ssue, however, the transcript indicated pro- �ect costs of $175,000. The lawer cost was verified by the City staff as the correct amount. Prior to establishing the terms and conditions of sale we reviewed a summary of pro�ects which woul,d be included in ttie City's 1988 financing program. While most of the costs were estimated and the projects ordered, Project �190, was not only estimated but had nat yet been ordered by the Council. We were informed the Council would hold its im�rovement hearing priox to the settlement of the issue and therefore the pro�eet remained in the financing program. We understand the i.mprovement hearing for Project �190 has been held and the project has been ordered. However, the scope of the pro3ect actually ordered was scaled back from preliminary estimates. This reduction in the prv�ect resuited in a bonding over-issuance of $22i,000, which represents approximately 8% of the current bond issue. Bond Gounsel feels this amount is too large to include as a contingency, especially since ample contingencies were aiready included with the other projects, Improvement bonds are issued pursuant to Ghagter 429, Minnesota Statutes. This authority allows issuing bonds only for pro�ects which have been ordered by the Council. We have been informed that all other - � � �n,�;;,� �t;f!i�;�;� . _ �,u„ „ � � � � _ ., �.i„r�n�fn�,��. � �,�,,, ��,:� _ � .,�,t �� ; i . � � � � � Iru+ian��;��li;.�nrJinn?,If,� 1 .'��; � �, „ Si; ;r� i , I " '�,i'7 I I I I i . , ';i r . i � October 2b, 1988 Page 2 projects currently ordered have been adequately financed, and therefore could not l�e inclucie�l in thi.s :fs��ae. In view c>E t}►is, twc� �lcerna�tves are avaiiable to the City. First, the Cit3� could reduce the size of the current bond issue, or, the second alternative is to de�:ay settlement until another improvement project has been ordered. A summary of our dis- cussion of these two alternatives follvws: If the size of the issue were to be reduced, ttte underwriter would receive $220,0�0 fewer bonds. Since ty�ically al1 0€ the bonds would have been sold to investors by the time this problem was discovered, this procedure would ereate a disturbance in the marketplace for your bonds, That situation could potentially have a negative impact on future 6onds of the City. At the time of a bond sa1e, bidders are told that settlement of an issue will occur in approximately 40 days, It is possible to delay settlement a short time beyond that for a valid reason. We understand the City will hold a public hearing for the purpose of considering ordering the Ghippendale Avenue 5treet Project ��19i a�, the Council Meeting an November 1. The estimated cost vf this pro�ect is $450,OOQ. If this project is ardered at the November 1 meeting, we can substitute a gartiai financing in this issue and deliver the full amount af bonds on Navember 3. We understand this prvject is not expected to be controversial and therefore it is expected to be order.ed on November l. The second alternative, delaying the settlement on the assumption that Project 4�191 wiii be ordered and could be included in the bond issue, appears to all of us to be the better alternative for the Gity, Based on that decision, a settlement for the entire $2,750,000 has been scheduied for November 3. It will be necessary for the Council to take two actions at the November 1 meeting in order to be able to settle as discussed above. FirsC, Project �191 will need to be ordered by a 4/5 vote. Seeond, the Council will need to adopt a Xesolution amending the resolution adopted on September 20 whieh awarded the 5ale of the bonds. The amending resol- ution will identify the change in project amounts and recertify the tax levies for the bond fssue. Briggs and Margan is preparing this re- solution and you will have it available for your November i meeting. We will verify with you the first thing an November 2 that both ste�s were taken by the Council. With this assurance, bond counsel wi11 provide an appxoving legal opinian far sefitlement on November 3. � R � � October 26, 1988 Page 3 We regret the inconvenience af requiring these ad.justing measures, - however, they are necessary in orde� to deliver the full fssue to the underwriter. We believe this procedure is in the overall best interest of the City. Sincerely, ' � 4,�/Clxec� �c.-�Q� ,/�lE�a/ < �/ � Gerard B. Shannon Nancy L. Langness Vice President Vice President `_ � �F'RING�TED• • ��i,r ic r inrnNc;r_ nr�viscxas �7--�� f'��,f��s�s��vo�,n,P��,c;r�.Suit�� ir)O � � ) � Saini I't�ul,MinnF�sota!i.`ii(l��713:1 � t;i:'�:';"t�:3uU�l � � 111k ��i;'�;'7:4-:SII(t;' � November I, 1988 Ms . Susan Jahnson Rosemount City Hall 2875 - 145th 5treet West Rosemount , MN 55068 RE: $2,750 ,000 General Obligation Improvement Bonds , Series 198$B Dear Ms . Johnson: Enclosed you will find five corrected copies of the resolution amendin the resolution accepting bid on sa)_e of �r�e above Bonds. Please complete eac resolution �s tv who was present an a sent , who made and seconded the notion , �he vote count and the time of the meeting. Also, please have the last page of each resolution signed and sealed by the �,dministrator . You may retain one copy of the resolution for your files and return the other four to me as soon as possible. If you have any questions , please feel free to call me . Sincerely, ��'�!/l�-clu-ro Garol Kraus Legal Liaison rnclosures � �rnh�ai�t��)fiirr,_ V'.�i,��n�.i},r:)itir:r� � � � 2f;t Nurih Illinr�is;ir��l `;t�;ir� 1��i�f) �,ryq! Ini c3r��.r�12��o-r1,`;ni�r, �r�i � Ilul��nta��ii>lis,In�IGin;_i�tf . } '.... � t � , i�� <.ni i;�"'.r.;�?��', glj. . ;(>3(i 11�9�Js', , � I�ax "il� J:31'if�3'�_) I,ix ]I1 :s,,��-,r��;,� � � � � ' ' • • SZ1S EXTRACT OF MINUTES QF A MEETING t?F THE CITY COUNCIL OF THE CITY (3F ROSEMOUNT, MINNESOTA HELD: November 1, i9$8 Pursuant ta due call and natice thereof, a regular meeting of the City Council a� the City of Rosemount, Dakota County, Minnesota, was duly heid at the City Hall in said City on Tuesday, the lst day of Noveniber, 1988, at o'clock _.M. , for the purpose in part of amending the resolution providing for the issuance of $2,75Q,Q00 General Obligation Improvement Bonds, Series i988B of the City. The following members were present: and the following were absent: Member introduced the fallowing resolution and maved its adoption: RESOLUTiON AMENDING RESOLUTION ACCEPTING BID ON SALE OF $2,750,Q00 GENERAI, OBLIGATION IMPROVEMENT BON�S, SERIES 1988B WHERE�S, the City Council of the City of Rosemount, Minnesota {the "City" ) , by a resolution adopted on September 20, 1988 (the "Resolution") has provided for the sale and . issuance of $2, 750,Q00 General Obligation Impravement Bonds, Series 19888 of the City (the "Bonds" j , to finance the • construetion of various public improvements in the City, {the °Improvements" ) ; and WHEREAS, constructzan costs o� the Improvement Projeet No. 190 (Shannon Hillsj is in error; and WHEREAS, the City deems it necessary, desirable and expedient to amend the rest�lution to add a new improvement project, Improvement Project No. I91 (Chippendale Avenue) to be �inanced by the Bonds . , , � . NOW THEREFORE BE IT RESOLVED as follows: 1. Paragraph 16 of the Resolution is herebg amended to read as follows: ' "I6 . Assessment5 . It is hereby determined that no less than twenty percent (20�} of the cost to the City of each Improvement financed hereunder within the meaning of Minnesota Statutes, Section 475 .58, Subdivision 1(3j , shall be paid by special assessments to be levied agains� every assessable Iot, piece and parcel of Zand benefited b� any of the Improvements. The City hereby covenants and agrees that it will let all construction contracts not heretofore 1.et within one ( 1} year after ordering each Imparovement financed hereunder unless the reso�.ution ordering the Improvement specifies a differen� time limit for the letting of cons�.ruction contracts . The City hereby further covenants and agrees that it will do and perform as soon as they may be done all acts and things which may be necessary for the final and valid ievy of such speciaT assessments, and in the event that any such assessment be at any time held invalid with respeet to any lot, piece or parcel of land due to any error, defect, or irregularity in any actian or proceedings taken or to be taken by the City flr the City Council or any af the City o�fieers or employees, either in the making of the assessments or in the performance of any condition precedent thereto, the City and the City Council will forthwith do all further acts and take all further proceedings as may be required by law to make the assessments a valid and binding iien upon such property. The special assessments have not heretofore been authorized, and accardingly, for purposes of Minnesota Statutes, Section 475 . 55, Subdivisa.on 3, the special assessments are herehy authorized. Subject to such ad�u�tments as are required by conditions in existence at the time the assessments are levied, the assessments are hereby authorized and it is hereby determined that the assessments shall be payable in equal, consecutive, annual installments, witlz general taxes for the years shown below and with interest on the declining balance of ali such assessments at a rate per annum not greater than the maximum permitted by law and not less than 8 .5� per annum: a • Improvement Collection Desiqnativn Amount Levy Y�ars Years 175-0'Leary�s 196,252 1988/1990 1989j1991 Hills 3rd Addn 176-Sec. i9&30 232,500 1988/1992 1989j1993 Storm Sewer Hawkins Fond � 160-Valley Qak. 142,745 1988/199Q 1989/1991 Replat Phase III 181-L54 Sanitary 19,632 1988/1990 1989/1991 Sewer Extension 184-0'Learys 249,480 1988/1990 1989/1991 4th Addn 185-Shannon Oaks 158,4Q0 1986/1990 1989f199i Street Improve- ment 1$9-Shannon 422,400 1988/i990 1989/1991 Parkw�y Connemara Trail Imp 190-Shannon 175,000 1988/i990 1989/1991 Hills Addn 191-Chippendale 56, 840 19$9/1998 199�/1999 � Avenue At the time the assessment� are in fact l�vied the C3ty Council �hall, ba�ed on the th�n-curr+ant �stimated col- lectians of the �ssessments, make any ad�ustmer�ts in any ad va].orem taxes required to be levied in order to assure that the City continues to be in compliance with Minnesata Statutes, Section 475 . 61, Subdiui.sion 1. " 2 . Paragragh 17 af the Resolution is hereby amended to read as follaws: "17 . Tax Levy; Coveraqe Test. To provide moneys for gayment of the principal and interest on the Bonds there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shali be spread upon the tax rolls and collectecl with and as part of other general praperty taxes in the City for the years and' in the amounts as follows: 3 . • ! Year of Tax Xear of Tax LevV Collection Amount 1988 1989 117 , 80i 1989 1990 69 , 864 1990 1991 67 , 068 ''' 1991 1992 78 , 294 1992 1993 72 , h59 1993 i994 66 , 552 _ 1994 1995 6Q, 129 1945 1996 61,692 1995 I997 44 , 857 1997 1998 44 , 631 The tax levies are such that if collected in full they, tagether with estimated coileetions of special assess- ments and ather revenues herein pledged for the payment of the Bonds, will produce at least five percent (5�) in excess of the amount �needed to meet when due the principal and interest payments on the Bonds . The tax levies sha�.1 be irrepealable so long as any Qf the Bonds are outstanding and unpaid, provided that the City reserves the right and pow�r to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475 . 61, Subdivision 3. " ,_ � 3 . Except as specifically modified herein, all terms and eonditions af the Resolution shall remain in full force and effect. 4 . The Administrator is hereby directed to file a ` certified copy of this resolution with the Cc�unty Auditor of Dakota County, Minnesota, together with such other infor- mation as he or she shall require, and to obtain the Auditor' s certificate that the tax levy reguired by Iaw, as revised herein, has been made. The mation for the adoption of the foregoing ' resolution was duly seconded by member and, after a full discussion thereaf and upon vote being taken thereon, the foZlowing voted in favor thereof: and the follawing voted against the same: Whereupon said resolution was declared duly passed and adopted. � . . . • � � STATE OF MINNESOTA COUNTY OF DAKOTA CITY �F ROSEMOUNT I, the undersigned, being the duly qualified and acting Administrator of the City of Rosemount, Minnesota, D0 HEREBY CERTiFY that I have compared the attached and fore- going extract of minutes with the original thereo€ on file in my office, and that the sarne is a full, true and complete transcript of the minutes of a meeting of the City Council of said City, duly called and hsld on the date therein indicated, insofar as such minutes relate to the amendment of the Resolution providing for the issuance of $2, 750,t?00 General- Obligation Improvement Bonds, Series 1988B of said City. WITNESS my hand and the seal of said City this day of November , 198$ . Administrator (SEAL) 5