HomeMy WebLinkAbout6.j. 2017A G.O. Improvement Bonds - Authorizing Issuance and Setting Bond Sale
EXECUTIVE SUMMARY
City Council Meeting Date: June 20, 2017
AGENDA ITEM: 2017A G.O. Improvement Bonds -
Authorizing Issuance and Setting Bond
Sale
AGENDA SECTION:
Consent
PREPARED BY: Jeff May, Finance Director AGENDA NO. 6.j.
ATTACHMENTS: Resolution and Recommendations APPROVED BY: LJM
RECOMMENDED ACTION: Motion to adopt a Resolution Providing for the Competitive
Negotiated Sale of $1,505,000 General Obligation Improvement Bonds, Series 2017A.
ISSUE
The authorization to issue bonds for the construction of street and utility improvements for the Greystone
6th Addition.
BACKGROUND
The item for your consideration is authorizing the issuance and setting the sale of General Obligation
Improvement bonds for the Greystone 6th Addition. The developer has requested that the City issue these
bonds that will be repaid through special assessments levied for these projects.
Bids will be open until Tuesday, July 18, 2017, at 10:00 A.M. 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 7:00 P.M., Central Time, of the same day.
SUMMARY
Recommend the above motion.
501045v1 JSB RS125-20
City of Rosemount
Dakota County, Minnesota
Resolution 2017-__
Resolution Providing for the Competitive Negotiated
Sale of $1,505,000 General Obligation
Improvement Bonds, Series 2017A
WHEREAS, the City Council of the City of Rosemount, Minnesota (the “City”), has heretofore
determined that it is necessary and expedient to issue its $1,505,000 General Obligation
Improvement Bonds, Series 2017A (the “Bonds”) to finance street and utility improvements in the
City;
WHEREAS, the City has retained Springsted Incorporated, in Saint Paul, Minnesota (“Springsted”),
as its independent financial advisor and is therefore authorized to sell these obligations by a
competitive negotiated sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9);
and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Rosemount,
Minnesota, as follows:
1. Authorization; Findings. The City Council hereby authorizes Springsted to solicit bids for
the competitive negotiated sale of the Bonds.
2. Meeting; Bid Opening. This City Council shall meet at the time and place specified in the
Terms of Proposal attached hereto as Exhibit A for the purpose of considering sealed bids for, and
awarding the sale of, the Bonds. The Administrator, or designee, shall open bids at the time and
place specified in such Terms of Proposal.
3. Terms of Proposal. The terms and conditions of the Bonds and the negotiation thereof are
fully set forth in the “Terms of Proposal” attached hereto as Exhibit A and hereby approved and
made a part hereof.
4. Official Statement. In connection with said competitive negotiated sale, the Administrator,
Finance Director and other officers or employees of the City are hereby authorized to cooperate
with Springsted and participate in the preparation of an official statement for the Bonds, and to
execute and deliver it on behalf of the City upon its completion.
(The remainder of this page is intentionally left blank)
RESOLUTION 2017-___
2
501045v1 JSB RS125-20
ADOPTED this 20th day of June, 2017.
______________________________________
William H. Droste, Mayor
ATTEST:
Clarissa Hadler, City Clerk
501045v1 JSB RS125-20
CERTIFICATION
STATE OF MINNESOTA )
COUNTY OF DAKOTA ) ss
CITY OF ROSEMOUNT )
I am the duly appointed, acting and qualified City Clerk of the City of Rosemount, Dakota County,
Minnesota do hereby certify that I have examined the City of Rosemount records and the Minute
Book of said City for the meeting of the 20th of June, 2017 A RESOLUTION PROVIDING FOR
THE COMPETITIVE NEGOTIATED SALE OF $1,505,000 GENERAL OBLIGATION
IMPROVEMENT BONDS, SERIES 2017A was approved and is a true and correct copy of the
City Proceedings relating to said Resolution.
IN WITNESS WHEREOF, I have hereunto set my hand and seal of said City this 20th day of
June, 2017.
City Clerk
City of Rosemount
Dakota County, Minnesota
A-1
501045v1 JSB RS125-20
EXHIBIT A
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE
THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE
FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,505,000* CITY OF ROSEMOUNT, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2017A (BOOK ENTRY ONLY)
Proposals for the above-referenced obligations (the “Bonds”) will be received by the City of
Rosemount, Minnesota (the “City”) on Tuesday, July 18, 2017, (the “Sale Date”) until 10:00 A.M.,
Central Time at the offices of Springsted Incorporated (“Springsted”), 380 Jackson Street, Suite 300,
Saint Paul, Minnesota, 55101, after which time proposals will be opened and tabulated.
Consideration for award of the Bonds will be by the City Council at 7:00 P.M., Central Time, of the
same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of a bidder to reach Springsted prior to the time
of sale specified above. All bidders are advised that each proposal shall be deemed to constitute a
contract between the bidder and the City to purchase the Bonds regardless of the manner in which
the proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to
Springsted. Signed proposals, without final price or coupons, may be submitted to Springsted prior
to the time of sale. The bidder shall be responsible for submitting to Springsted the final proposal
price and coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the
submitted proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via
PARITY®. For purposes of the electronic bidding process, the time as maintained by PARITY®
shall constitute the official time with respect to all proposals submitted to PARITY®. Each bidder
shall be solely responsible for making necessary arrangements to access PARITY® for purposes of submitting its
electronic proposal in a timely manner and in compliance with the requirements of the Terms of Proposal. Neither
the City, its agents, nor PARITY® shall have any duty or obligation to undertake registration to bid
for any prospective bidder or to provide or ensure electronic access to any qualified prospective
bidder, and neither the City, its agents, nor PARITY® shall be responsible for a bidder’s failure to
register to bid or for any failure in the proper operation of, or have any liability for any delays or
interruptions of or any damages caused by the services of PARITY®. The City is using the services
of PARITY® solely as a communication mechanism to conduct the electronic bidding for the
Bonds, and PARITY® is not an agent of the City.
* Preliminary; subject to change.
RESOLUTION 2017-___
A-2
501045v1 JSB RS125-20
If any provisions of this Terms of Proposal conflict with information provided by PARITY®, this
Terms of Proposal shall control. Further information about PARITY®, including any fee charged,
may be obtained from:
PARITY®, 1359 Broadway, 2nd Floor, New York, New York 10018
Customer Support: (212) 849-5000
DETAILS OF THE BONDS
The Bonds will be dated as of the date of delivery and will bear interest payable on February 1 and
August 1 of each year, commencing August 1, 2018. Interest will be computed on the basis of a
360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts* as follows:
2019 $285,000 2020 $300,000 2021 $305,000 2022 $305,000 2023 $310,000
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds or the amount of any maturity in multiples of $5,000. In the event the amount of any maturity or maturities is modified, the aggregate purchase price will be adjusted to result in the same gross spread per $1,000 of Bonds as that of the original proposal. Gross spread for this purpose is the differential between the price paid to the City for the new issue and the prices at which the proposal indicates the securities will be initially offered to the investing public.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of Bonds
made to the public. The Bonds will be issued in fully registered form and one Bond, representing
the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of
Cede & Co. as nominee of The Depository Trust Company (“DTC”), New York, New York, which
will act as securities depository for the Bonds. Individual purchases of the Bonds may be made in
the principal amount of $5,000 or any multiple thereof of a single maturity through book entries
made on the books and records of DTC and its participants. Principal and interest are payable by
the registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and
interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and
interest payments to beneficial owners by participants will be the responsibility of such participants
and other nominees of beneficial owners. The lowest bidder (the “Purchaser”), as a condition of
delivery of the Bonds, will be required to deposit the Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable regulations of the Securities and
Exchange Commission. The City will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Bonds will not be subject to redemption in advance of their respective stated maturity dates.
RESOLUTION 2017-___
A-3
501045v1 JSB RS125-20
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition, the City will pledge special
assessments against benefited properties for repayment of the Bonds. The proceeds of the Bonds
will be used for street and utility improvements.
BIDDING PARAMETERS
Proposals shall be for not less than $1,489,950 plus accrued interest, if any, on the total principal
amount of the Bonds. No proposal can be withdrawn or amended after the time set for receiving
proposals on the Sale Date unless the meeting of the City scheduled for award of the Bonds is
adjourned, recessed, or continued to another date without award of the Bonds having been made.
Rates shall be in integral multiples of 1/100 or 1/8 of 1%. The initial price to the public as stated
on the proposal for each maturity must be 98.0% or greater. Bonds of the same maturity shall bear a
single rate from the date of the Bonds to the date of maturity. No conditional proposals will be
accepted.
ESTABLISHMENT OF ISSUE PRICE PRIOR TO CLOSING
In order to provide the City with information necessary for compliance with Section 148 of the
Internal Revenue Code of 1986, as amended, and the Treasury Regulations promulgated thereunder
(collectively, the “Code”), the Purchaser will be required to assist the City in establishing the issue
price of the Bonds and shall complete, execute, and deliver to the City prior to the closing date, a
written certification in a form acceptable to the Purchaser, the City, and Bond Counsel (the “Issue
Price Certificate”) containing the following for each maturity of the Bonds (and, if different interest
rates apply within a maturity, to each separate CUSIP number within that maturity): (i) the interest
rate; (ii) the reasonably expected initial offering price to the “public” (as said term is defined in
Treasury Regulation Section 1.148-1(f) (the “Regulation”)) or the sale price; and (iii) pricing wires or
equivalent communications supporting such offering or sale price. However, such Issue Price
Certificate may indicate that the Purchaser has purchased the Bonds for its own account in a
capacity other than as an underwriter or wholesaler, and currently has no intent to reoffer the Bonds
for sale to the public. Any action to be taken or documentation to be received by the City pursuant
hereto may be taken or received on behalf of the City by Springsted.
The City intends that the sale of the Bonds pursuant to this Terms of Proposal shall constitute a
“competitive sale” as defined in the Regulation based on the following:
(i) the City shall cause this Terms of Proposal to be disseminated to potential bidders in
a manner that is reasonably designed to reach potential bidders;
(ii) all bidders shall have an equal opportunity to submit a bid;
(iii) the City reasonably expects that it will receive bids from at least three bidders that
have established industry reputations for underwriting municipal bonds such as the
Bonds; and
(iv) the City anticipates awarding the sale of the Bonds to the bidder who provides a
proposal with the lowest true interest cost, as set forth in this Terms of Proposal
(See “AWARD” herein).
RESOLUTION 2017-___
A-4
501045v1 JSB RS125-20
Any bid submitted pursuant to this Terms of Proposal shall be considered a firm offer for the
purchase of the Bonds, as specified in the proposal. The Purchaser shall constitute an “underwriter”
as said term is defined in the Regulation. By submitting its proposal, the Purchaser confirms that is
shall require any agreement among underwriters, a selling group agreement, or other agreement to
which it is a party relating to the initial sale of the Bonds, to include provisions requiring compliance
with the provisions of the Code and the Regulation regarding the initial sale of the Bonds.
If all of the requirements of a “competitive sale” are not satisfied, the City shall advise the Purchaser
of such fact prior to the time of award of the sale of the Bonds to the Purchaser. In such event,
any proposal submitted will not be subject to cancellation or withdrawal. Within twenty-four
(24) hours of the notice of award of the sale of the Bonds, the Purchaser shall advise the City and
Springsted if a “substantial amount” (as defined in the Regulation) of any maturity of the Bonds
(and, if different interest rates apply within a maturity, to each separate CUSIP number within that
maturity) has been sold to the public and the price at which such substantial amount was sold. The
City will treat such sale price as the “issue price” for such maturity, applied on a maturity-by-
maturity basis. The City will not require the Purchaser to comply with that portion of the
Regulation commonly described as the “hold-the-offering-price” requirement for the remaining
maturities, but the Purchaser may elect such option. If the Purchaser exercises such option, the City
will apply the initial offering price to the public provided in the proposal as the issue price for such
maturities. If the Purchaser does not exercise that option, it shall thereafter promptly provide the
City and Springsted the prices at which a substantial amount of such maturities are sold to the
public; provided such determination shall be made and the City and Springsted notified of such
prices not later than three (3) business days prior to the closing date.
GOOD FAITH DEPOSIT
To have its proposal considered for award, the Purchaser is required to submit a good faith deposit
to the City in the amount of $15,050 (the “Deposit”) no later than 1:00 P.M., Central Time on the
Sale Date. The Deposit may be delivered as described herein in the form of either (i) a certified or
cashier’s check payable to the City; or (ii) a wire transfer. The Purchaser shall be solely responsible
for the timely delivery of its Deposit whether by check or wire transfer. Neither the City nor
Springsted have any liability for delays in the receipt of the Deposit. If the Deposit is not received
by the specified time, the City may, at its sole discretion, reject the proposal of the lowest bidder,
direct the second lowest bidder to submit a Deposit, and thereafter award the sale to such bidder.
Certified or Cashier’s Check. A Deposit made by certified or cashier’s check will be considered timely
delivered to the City if it is made payable to the City and delivered to Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101 by the time specified above.
Wire Transfer. A Deposit made by wire will be considered timely delivered to the City upon
submission of a federal wire reference number by the specified time. Wire transfer instructions will
be available from Springsted following the receipt and tabulation of proposals. The successful
bidder must send an e-mail including the following information: (i) the federal reference number and
time released; (ii) the amount of the wire transfer; and (iii) the issue to which it applies.
RESOLUTION 2017-___
A-5
501045v1 JSB RS125-20
Once an award has been made, the Deposit received from the Purchaser will be retained by the City
and no interest will accrue to the Purchaser. The amount of the Deposit will be deducted at
settlement from the purchase price. In the event the Purchaser fails to comply with the accepted
proposal, said amount will be retained by the City.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis calculated on the proposal prior to any adjustment made by the City. The
City's computation of the interest rate of each proposal, in accordance with customary practice, will
be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without
cause, and (iii) reject any proposal that the City determines to have failed to comply with the terms
herein.
BOND INSURANCE AT PURCHASER'S OPTION
The City has not applied for or pre-approved a commitment for any policy of municipal bond
insurance with respect to the Bonds. If the Bonds qualify for municipal bond insurance and a
bidder desires to purchase a policy, such indication, the maturities to be insured, and the name of
the desired insurer must be set forth on the bidder’s proposal. The City specifically reserves the
right to reject any bid specifying municipal bond insurance, even though such bid may result in the
lowest TIC to the City. All costs associated with the issuance and administration of such policy and
associated ratings and expenses (other than any independent rating requested by the City) shall be
paid by the successful bidder. Failure of the municipal bond insurer to issue the policy after the
award of the Bonds shall not constitute cause for failure or refusal by the successful bidder to accept
delivery of the Bonds.
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
On or about August 17, 2017, the Bonds will be delivered without cost to the Purchaser through
DTC in New York, New York. Delivery will be subject to receipt by the Purchaser of an approving
legal opinion of Kennedy & Graven, Chartered of Minneapolis, Minnesota, 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 that shall be received at the offices of the City
or its designee not later than 12:00 Noon, Central Time. Unless compliance with the terms of
payment for the Bonds has been made impossible by action of the City, or its agents, the Purchaser
RESOLUTION 2017-___
A-6
501045v1 JSB RS125-20
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.
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2-12(b)(5), the City will undertake, pursuant to the resolution
awarding sale of the Bonds, to provide annual reports and notices of certain events. A description
of this undertaking is set forth in the Official Statement. The Purchaser's obligation to purchase the
Bonds will be conditioned upon receiving evidence of this undertaking at or prior to delivery of the
Bonds.
OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent
information relative to the Bonds, and said Preliminary Official Statement will serve as a near-final
Official Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Preliminary Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Municipal Advisor to the City, Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
A Final Official Statement (as that term is defined in Rule 15c2-12) will be prepared, specifying the
maturity dates, principal amounts, and interest rates of the Bonds, together with any other
information required by law. By awarding the Bonds to the Purchaser, the City agrees that, no more
than seven business days after the date of such award, it shall provide without cost to the Purchaser
up to 25 copies of the Final Official Statement. The City designates the Purchaser as its agent for
purposes of distributing copies of the Final Official Statement to each syndicate member, if
applicable. The Purchaser agrees that if its proposal is accepted by the City, (i) it shall accept
designation and (ii) it shall enter into a contractual relationship with its syndicate members for
purposes of assuring the receipt of the Final Official Statement by each such syndicate member.
Dated June 20, 2017 BY ORDER OF THE CITY COUNCIL
/s/ Clarissa Hadler
City Clerk
City of Rosemount, Minnesota
Recommendations for Issuance of Bonds
$1,505,000 General Obligation Improvement Bonds, Series 2017A
The City Council has under consideration the issuance of bonds to fund a street improvement project. This
document provides information relative to the proposed issuance.
KEY EVENTS: The following summary schedule includes the timing of some of the key events that will
occur relative to the bond issuance.
June 20, 2017 City Council sets sale date and terms
Week of July 3, 2017 Rating conference is conducted
On or about July 14, 2017 Receipt of Rating
July 18, 2017, 10:00 AM Competitive bids are received
July 18, 2017, 7:00 PM City Council considers award of bonds
On or about August 17, 2017 Proceeds are received
RATING: An application will be made to Moody’s Investors Service (Moody’s) for a rating on the
Bonds. The City’s general obligation debt is currently rated 'Aa2' by Moody’s.
THE MARKET: Performance of the tax-exempt market is often measured by the Bond Buyer’s Index (“BBI”)
which measures the yield of high grade municipal bonds in the 20 th year for general
obligation bonds (the BBI 20 Bond Index) and the 30th year for revenue bonds (the BBI 25
Bond Index). The following chart illustrates these two indices over the past five years.
Study No.: 704.140 June 7, 2017
Page 2
POST ISSUANCE
COMPLIANCE:
The issuance of the Bonds will result in post-issuance compliance responsibilities. The
responsibilities are in two primary areas: i) compliance with federal arbitrage requirements
and ii) compliance with secondary disclosure requirements.
Federal arbitrage requirements include a wide range of implications that have been taken
into account as your issue has been structured. Post-issuance compliance responsibilities
for your tax-exempt issue include both rebate and yield restriction provisions of the IRS
Code. In general terms the arbitrage requirements control the earnings on unexpended
bond proceeds, including investment earnings, moneys held for debt service payments
(which are considered to be proceeds under the IRS regulations), and/or reserves. Under
certain circumstances any “excess earnings” will need to be paid to the IRS to maintain the
tax-exempt status of the Bonds. Any interest earnings on gross bond proceeds or debt
service funds should not be spent until it has been determined based on actual facts that
they are not “excess earnings” as defined by the IRS Code.
There is an exemption from rebate for an issuer that qualifies as a “small issuer”, which is
defined as an issuer whose total tax-exempt financings in a calendar year are not expected
to exceed $5 million. The City expects to qualify as a small issuer for calendar year 2017.
Regardless of whether an issue qualifies for an exemption from the rebate provisions, yield
restriction provisions will apply to the debt service fund under certain conditions and any
unspent bond proceeds remaining after three years, and the funds should be monitored
throughout the life of the Bonds.
Secondary disclosure requirements result from an SEC requirement that underwriters
provide ongoing disclosure information to investors. To meet this requirement, any
prospective underwriter will require the City to commit to providing the information needed to
comply under a continuing disclosure agreement.
Springsted and the City entered into an Agreement for Municipal Advisor Services under
which Springsted will provide continuing disclosure and arbitrage rebate services for the
Bonds.
SUPPLEMENTAL
INFORMATION AND
BOND RECORD:
Supplementary information will be available to staff including detailed terms and conditions
of sale, comprehensive structuring schedules and information to assist in meeting post-
issuance compliance responsibilities.
Upon completion of the financing, a bond record will be provided that contains pertinent
documents and final debt service calculations for the transaction.
PURPOSE: Proceeds of the Bonds, together with other available funds of the developer in the amount
of $305,789, will be used to finance the Greystone 6th street improvement project and
related utility improvements.
AUTHORITY: Statutory Authority: The Bonds are being issued pursuant to Minnesota Statutes,
Chapters 429 and 475.
Statutory Requirements: In order to issue debt under Minnesota Statutes, Chapter 429, at
least 20% of the project cost must be assessed. The amount of assessments to be filed
against benefitted properties exceeds 20% of project costs.
Page 3
SECURITY AND
SOURCE OF
PAYMENT:
The Bonds will be general obligations of the City, secured by its full faith and credit and
taxing power. The Bonds will be paid from a combination of ad valorem property taxes and
special assessments.
Assessments in the principal amount of $1,453,947 will be collected over a term of 5 years
with level annual payments of principal and interest. Interest on the unpaid balance will be
charged at a rate of 2.00% over the true interest rate of the Bonds. For the purpose of
these Recommendations, we have assumed a rate of 3.95%. Assessments are expected to
be filed on or about November 1, 2017 for first collection in 2018.
Each year’s collection of assessments (and taxes if required) will be used to make the
interest payment due August 1 in the collection year and the principal and interest payment
due February 1 of the following year.
STRUCTURING
SUMMARY:
In consultation with City staff, the Bonds have been structured around the projected
assessment collections over a term of 5 years, to result in an approximately even annual
levy requirements.
SCHEDULES
ATTACHED:
Schedules attached include a sources and uses of funds, estimated debt service
requirements given the current interest environment, and estimated assessment income.
RISKS/SPECIAL
CONSIDERATIONS:
The outcome of this financing will rely on the market conditions at the time of the sale. Any
projections included herein are estimates based on current market conditions.
Principal payments have been structured around projected future assessment collections. If
actual assessment collections are different than projected (lower annual collections due to
delinquencies or prepayments), the levy requirements will differ from what is shown in these
Recommendations.
SALE TERMS AND
MARKETING:
Variability of Issue Size: A specific provision in the sale terms permits modifications to the
issue size and/or maturity structure to customize the issue once the price and interest rates
are set on the day of sale.
Optional Prepayment: Due to their short duration and to avoid possible negative pricing
impacts, the Bonds will not be subject to prepayment prior to their stated maturity.
Bank Qualification: The City does not expect to issue more than $10 million in tax-exempt
obligations that count against the $10 million limit for this calendar year; therefore, the
Bonds are designated as bank qualified.
Page 4
$1,505,000
City of Rosemount, Minnesota
General Obligation Improvement Bonds
Series 2017A
Sources & Uses
Dated 08/17/2017 | Delivered 08/17/2017
Sources Of Funds
Par Amount of Bonds.....................................................................................................................................................................................$1,505,000.00
Developer Payment.......................................................................................................................................................................................305,789.00
Total Sources...........................................................................................................................................................................................$1,810,789.00
Uses Of Funds
Deposit to Project Construction Fund....................................................................................................................................................................1,759,736.00
Costs of Issuance.......................................................................................................................................................................................34,975.00
Total Underwriter's Discount (1.000%)..................................................................................................................................................................15,050.00
Rounding Amount.........................................................................................................................................................................................1,028.00
Total Uses..............................................................................................................................................................................................$1,810,789.00
2017A GO Improvement Bond | SINGLE PURPOSE | 5/23/2017 | 3:01 PM
Page 5
$1,505,000
City of Rosemount, Minnesota
General Obligation Improvement Bonds
Series 2017A
NET DEBT SERVICE SCHEDULE
Date Principal Coupon Interest Total P+I 105% of Total Assessment Levy
Required
02/01/2018 -------
02/01/2019 285,000.00 1.400%34,915.14 319,915.14 335,910.90 328,753.59 7,157.31
02/01/2020 300,000.00 1.450%19,997.50 319,997.50 335,997.38 328,753.60 7,243.78
02/01/2021 305,000.00 1.550%15,647.50 320,647.50 336,679.88 328,753.60 7,926.27
02/01/2022 305,000.00 1.700%10,920.00 315,920.00 331,716.00 328,753.59 2,962.41
02/01/2023 310,000.00 1.850%5,735.00 315,735.00 331,521.75 328,753.59 2,768.16
Total $1,505,000.00 -$87,215.14 $1,592,215.14 $1,671,825.90 $1,643,767.97 $28,057.93
Dated...................................................................................................................................................................................................8/17/2017
Delivery Date...........................................................................................................................................................................................8/17/2017
First Coupon Date.......................................................................................................................................................................................8/01/2018
Yield Statistics
Bond Year Dollars.......................................................................................................................................................................................$5,255.61
Average Life............................................................................................................................................................................................3.492 Years
Average Coupon..........................................................................................................................................................................................1.6594672%
Net Interest Cost (NIC).................................................................................................................................................................................1.9458278%
True Interest Cost (TIC)................................................................................................................................................................................1.9547563%
Bond Yield for Arbitrage Purposes.......................................................................................................................................................................1.6561231%
All Inclusive Cost (AIC)................................................................................................................................................................................2.6644518%
IRS Form 8038
Net Interest Cost.......................................................................................................................................................................................1.6594672%
Weighted Average Maturity...............................................................................................................................................................................3.492 Years
2017A GO Improvement Bond | SINGLE PURPOSE | 5/23/2017 | 3:01 PM
Page 6
$1,453,947
City of Rosemount, Minnesota
General Obligation Improvement Bonds
2017A GO Improvement Assessments
ASSESSMENT INCOME
Date Principal Coupon Interest Total P+I
12/31/2017 ----
12/31/2018 259,198.38 3.950%69,555.21 328,753.59
12/31/2019 281,561.02 3.950%47,192.58 328,753.60
12/31/2020 292,682.68 3.950%36,070.92 328,753.60
12/31/2021 304,243.65 3.950%24,509.94 328,753.59
12/31/2022 316,261.27 3.950%12,492.32 328,753.59
Total $1,453,947.00 -$189,820.97 $1,643,767.97
SIGNIFICANT DATES
Filing Date.............................................................................................................................................................................................10/15/2017
First Payment Date......................................................................................................................................................................................12/31/2018
2017A GO Improvement Asse | SINGLE PURPOSE | 5/23/2017 | 2:56 PM