HomeMy WebLinkAbout1995 08-24 City Council Special Meeting PacketAGENDA
MAPLEWOOD CITY COUNCIL
4:30 p.m., Thursday, August 24, 1995
Council Chambers, Municipal Building
Meeting No. 95 -16
A. CALL TO ORDER
B. PLEDGE OF ALLEGIANCE
C. ROLL CALL
E. APPROVAL OF AGENDA
H. AWARD OF BIDS
1. 1995 G.O. Improvement Bonds
2. 1995 G.O. Tax Increment Refunding Bonds
N. ADJOURNMENT
AGENDA NO. .i4 -
AGENDA REPORT
T 4. Cit Mana
FROM: Finance Director ��r�
RE: BID AWARD ON 1996 BONDS
DATE: Au 21, 1995
Action b Council:,
Endorsed.A.
Modified--
Dat
On Jul 24th the Council g ave preliminar approval for the sale of $9,15,000 General
Obli Improvement Bonds and $1,225,000 General Obli Tax Increment
Refundin Bonds. Add itional 'Information is in the attached report.
The bids on these bonds are scheduled to be opened at 11:00 a.m. on Thursda
Au 24th. The bid award b the Council is scheduled for 4:30 p.m. at a special
Council meetin on Thursda Au 24th,. A recommendation re the bid
award will be made at the Council meetin b Jerr Shannon of Sprin
Incorporated. At that time, the resolutions will need to be adopted to award the bids
on the bond issues.
PAAGN\958DS
AGENDA NO.
AGENDA REPORT
TO: City Manager
FROM: Finance Director
RE: PRELIMINARY APPROVAL OF 1995 IMPROVEMENT
AND REFUNDING BONDS
DATE: July 18,1995
PROPOSAL
It is pro-posed that the City Council (A) schedule a special Council meeting
at 4:30 p.m. on Thursday, August 24th for a bid award on the 1995 bond
issues, (B) adopt the attached resolution which provides preliminary
approval for the sale of $915,000 General Obligation Improvement Bonds
and (C) adopt the attached resolution which provides preliminary approval
for the sale of $1,225,000 General Obligation Tax Increment Refunding
Bonds.
BACKGROUND
The 1995 Improvement Bonds proposed to be issued total $915,000 and
have a 20 -year term. The bonds will finance four projects that the Council
has authorized. The projects and financing plans are listed on page 7 of the
attached report from Springsted Incorporated.
Two of the projects have a financing plan that require property tax levies to
subsidize the special assessments levied for the projects. To minimize the
impact of the annual property tax levies required for the bond issue, the
levies have been structured to gradually increase over the .life of the bond
issue at the same rate as the tax base increases. The first levy of
approximately $116 will be payable in 1998; the last levy of approximately
$7,854 will be payable in 2015. The total tax levies over the life of the bond
.issue will be approximately $98,563.
The refunding, bonds will refinance the Tax Increment Bonds that were
.issued in 19.89 to finance 17 park improvement projects. The outstanding
bonds for this issue total $1,175,000 and have an average rate of
6.803 %. New bonds can be issued at a approx
n im
ate rate of 5.189% to
refinance this existing debt. The refinancing will save the City approximately
$72,350 between the years 2000 -2009. The present value of these savings
is $48,421. .
The attached 24 -page report prepared by Springsted Inc. provides additional
information. also recommends a bid award on the bond sale of a special
Council meeting at 4:30 p.m. on T August 24th. Since there is a
regular pre - agenda meeting on the same day at 4:30 p.m., the special
Council meeting could heldprior to the pre - agenda meeting which has
been the practice the past several years.
RECOMMENDATION
It is recommended that the City Council (A) schedule a special Council
meeting at 4:30 p.m. on Thursday, August 24 #h for a bid award on the 1995
bond issues, (B) adopt the attached resolution which provides preliminary
approval for the sale of $915,000 General Obligation Improvement Bonds
and (adopt the attached resolution which provides Preliminary approval
for the sale of $1,225,000 General Obligation Tax Increment* Refunding
Bond's.
P:1AGN\95BONDS
Recommendations
For
City of Maplewood, Minnesota
$915,0010
General Obligation Improvement Bonds, Series 1995A
$
General Obligation TaxIncre.ment Refunding Bonds,
Series 19958
Study No. M1408JIKI
SPRINGSTED Incorporated
July 17,1995
Recommendations for
City Maplewood, rM
$915.
General Obligation Improvement Bonds, Series 1995A
EXECUTIVE SUMMARY
This summary is intended to highlight data contained in these recommendatio ns. it is intended
to be an adjunct to the recommendations and not to be used solely as the basis of
determination of actions required. Your actions should be based on the information more fully
set forth in the recommendations.
1. Action Requested
To establish the date and time of receiving
bids and establish the terms and conditions
of the Offering.
2. Type and Purpose of Offering
3. Principal Amount of Offering
4. Repayment Term
5. Source of Debt Service Revenues
6. Optional Redemption
7. Credit Rating Comments
8. Sale Date and Time
9. Award Date and Time
Proceeds of the issue will be used to finance
four improvement projects within the City.
$915,000
February 1, 1997 through 2016.
Special assessments against benefited
property and general ad valorem tax Levies.
Bonds maturing on or after February 1, 2006
will be callable on February 1, 2005 and any
day thereafter at par.
A Moody's rating will be applied for.
Thursday, August 24, 1995 at 11:00 A.M.
Thursday, August 24, 1995 at 4:30 P.M.
Recommendations for
City of Maplewood, :Minnesota
$1,225,000*
General Obligation Tax Increment Refunding Bonds, Series 19956
EXECUTIVE SUMMARY
This summary is intended to highlight data contained in these recommendations. It is intended
to be an adjunct to the recommendations and not to be used solely as the basis of
determination of actions required. Your actions should be based on the information more fully
i
set forth n the recommendations.
1. Action Requested
To establish the date and time of receiving
bids and establish the terms and conditions
of the Offering.
2. Type and Purpose of Offering
3. Principal Amount of Offering
4. Repayment Term
5. Source of Debt Service Revenues
6. Optional Redemption
7. Credit Rating Comments
8. Sale Date and Time
9. Award Date and Time
Proceeds of the issue will be used to refund
the 2000 through 2009 maturities of the
City's General Obligation Tax Increment
Bonds of 1989 for interest cost savings.
$1,225,000
February 1 2000 -2009.
Tax Increment income generated within the
City's Housing District No. 1 -3 and Economic
Development Districts No. 1 -2 and No. 1 -3.
Bonds maturing on or after February 1, 2006
will be callable on February 1, 2005 and any
day thereafter at par.
A Moody's rating will be applied for.
Thursday, August 24, 1995 at 11:00 A. M
Thursday, August 24, 1995 at 4:30 P.M.
Subject to change.
85 E. SEVENTH PLACE, SUITE 100
SAINT PAUL, MN 55101 -2143
612 -223 -3000 FAX: 612 -223 -3002
SPRINGSTED
Public Finance Advisors
July 17, 1995
Mayor Gary Bastia
Members, City Council
Mr. Michael McGuire, City Manager
Mr. Dan Faust, Finance Director
1830 East County Road B
Maplewood, MN 55109 -2797
Re:: Recommendations for the Issuance of:
$915,000 General Obligation Improvement Bonds, Series 1995A and
$1,225,000 General Obligation Tax Increment Refunding Bonds, Series 1995B
We respectfully request your consideration of our recommendations for the issuance of the
above - named bond issues in accordance with the attached "Terms of Proposal." We will
discuss each of the issues separately and then items common to both.
$915,000 General Obligation Improvement Bonds, Series 1995A
The Improvement Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and
475, with proceeds to be used to finance four improvement projects within the City. A listing of
these projects is shown in the attached Appendix I, along with a breakdown of the Other funds
which will be used to cover project costs, including MSA funds and special assessment
prepayments which have already been received. Appendix I also indicates the sizing of the
bond issue and the revenue sources which will be used to make debt service payments on the
bonds, consisting of special assessments and tax levies.
Appendix 11 is the projection of assessment income. Special assessments for all four projects
have already been filed and the amount of assessed principal shown in Appendix 11 is net of
assessment prepayments received by the City to date, which prepayments have been used to
reduce the amount of the bond issue. The assessments were filed over a 20 -year period in
equal annual installments of principal, with interest on the unpaid balance charged at, a rate of
7.00% for the assessments filed in 1995 and 7.50% for the assessments filed in 1994. This
projection assumes the assessments will be paid over the normal course, and should additional
prepayments be received, the use of those prepayments should be allocated for debt service
over the life of the bond issue.
Appendix III is the recommended cash flow for the bond issue. The bonds have been
structured around the projected assessment income developed in Appendix 11 and with a tax
levy requirement which will gradually increase each year as the City's tax base expands. The
SAINT PAUL, MN MINNEAPOLIS, MN BROOKFIELD, WI OVERLAND PARK, KS WASHINGTON, DC IOWA CITY, IA
City of Maplewood, Minnesota
July 17, 1995
bonds will be dated September 1, 1995, and will mature each February 1 from 1997 through
2016. Columns 1 through 6 of Appendix III show the years and amounts of principal and
estimated interest due and payable on the bonds. Column 7 shows the 105% levy requirement
as set forth by State statute. The 5% overlevy is a protection to the bondholder and to the City
in the event 100% of the expected revenues are not received. Column 8 shows the projection
of assessment income from Appendix 11. Column 9 shows the net levy requirement which
represents the City's share of project costs and Columns 10 and 11 indicate a slight surplus
may be available in the first year of the program.
Beginning with the first interest payment due on the bonds on August 1, 1996, each August 1
interest payment and the following February 1 principal and interest payment is expected to be
payable from assessments and taxes levied each fall in the year prior to the August 1 payment
date.
Included in the principal amount of the issue is a provision for discount bidding in the amount of
$11,895, representing 1.3% of the principal amount of the bonds. The discount provides the
underwriters with all or part of their profit and /or working capital . for purchasing the issue. It
permits the underwriters to reoffer the bonds at or close to a par reoffering scale, anal, in our
experience, results in lower interest rates on the bonds.
We recommend the bonds maturing on or after February 1, 2406 be callable on February 1,
2005, and any day thereafter, at a price of par and. accrued interest. This call feature,
representing $495,000, or approximately 54% of the bond issue, will permit a prepayment of
those bonds should prepayments of assessments be received or if future market conditions
warrant a refinancing of this issue. With the inclusion of the provision for discount bidding, this
call feature should not impair the marketability of the bonds.
$1,225,000 General Obligation Tax Increment Refunding Bonds, Series 1995B
The Refunding Bonds are authorized under provisions of Minnesota Statutes, Chapters 469
and 475. Proceeds of this issue will be used to refund the 2000 through 2009 maturities,
totaling $1,175,000, of the City's General Obligation Tax Increment Bonds of 1989 (the "1989
Bonds ") for interest cost savings purposes.
The 2000 through 2009 maturities have interest rates ranging from 6.50% to 6.90 %. Based on
current market conditions, it is our recommendation that the City proceed with a "crossover"
refunding bond sale that would advance refund the callable maturities of the 1989 Bonds. We
estimate, based on today's market, the new bonds could be sold at a net interest rate of
approximately 5.19 %. The resulting savings to the City, net of all issuance costs including the
discount, is estimated to be $72,350, for a present value savings of approximately $48,420.
The 1989 Bonds were originally issued to finance capital and administration costs of the City's
Development District No. 1. Debt service on the 1989 Bonds is being paid from tax increment
income generated within the City's Housing District No. 1 -3 and Economic Development
Districts No. 1 -2 and No. 1 -3. These same payment sources will be used to cover debt service
payments on the Refunding Bonds subsequent to the refunding date for the 1989 Bonds.
In a crossover refunding, the proceeds of the refunding (new issue) bonds are placed in an
escrow account with the trust department of a major bank and invested in government
securities. These securities and their earnings are structured to pay debt service on the new
bonds through the call. date on the 1989 Bonds (February 1, 1999) at which time the escrow
account will "cross over" and pay the remaining principal on the 1989 Bonds by calling in all of
the remaining bonds. The City will continue to pay debt service on the original issue through
the call date of February 1, 1999. Beginning with the August 1, 1999 interest payment, the City
Page 2
City of Maplewood, Minnesota
July 17, 1995
will cross over and begin making debt service payments on the new issue, taking advantage of
the lower interest rates.
Attached as Appendix IV of these recommendations is a summary of the refunding.
Schedule A of Appendix IV shows the existing debt service of the 1989 Bonds. Schedule B
shows the amount of principal being called on February 1, 1999; and Schedule C illustrates the
non - refunded principal and interest payments the City will make on the 1989 Bonds through the
1999 call date. Schedule D represents our recommended maturity schedule for this issue. The
Refunding Bonds will be dated September 1, 1995 and will mature February 1, 2000 through
2009. Column 6 of Schedule E shows the estimated annual savings to the City accomplished
by the refunding, averaging approximately $7,235 per year.
The Refunding Bonds as now structured include all costs of issuance including the underwriter's
discount and a pro -rafted portion of the rating fee. All savings estimates are net of these costs.
To account for the actual underwriter's discount on the Refunding Bonds, actual costs of
issuance and actual interest rates bid, a provision has been included in the offering to permit
the City, after the sale but prior to award, to increase or reduce the principal in any of the
maturities in a total amount not to exceed $25,000 to offset any changes. As interest rates
fluctuate, the amount of money needed in the escrow account also fluctuates. This makes it
necessary to be able to adjust the principal amount of the issue. The City always reserves the
right to cancel the sale of the Refunding Bonds if interest rates received are deemed
unfavorable. Springsted Incorporated will monitor interest rates between now and the sale date
and advise if interest rates are rising.
Common to Both Issues
Continuing Market Disclosure
The Securities and Exchange Commission has finalized amendments to its Rule 15c2 -12 which
prohibits broker- dealers from underwriting municipal securities of $1,000,000 or more unless
the issuer has agreed in writing to provide annual disclosure of financial and operating
.information and to disclose material events when they occur. This Rule is effective for issues
underwritten on and after July 3, 1995. Since these bonds are to be issued after that date, the
City will be required to comply with the Rule in order for underwriters to bid on the issues.
The agreement with the underwriter and bondholders, or the "undertaking," as it is called in the
Rule, must be incorporated in the bond resolution for the issues or a separate disclosure
agreement and in the final Official Statement. The undertaking will obligate the City to prepare
and file with all nationally recognized municipal securities information repositories ( "NRMSIRs ")
annual up -dated financial and operating information and the City's annual audited financial
statements. As of now, there are five recognized NRMSIRs.
The Rule uses the information in the final Official Statement as the benchmark for data to
include in the secondary market disclosure report so that certain information provided in the
Official Statement must be revised annually. Between now and the date of the sale, August 24,
Springsted - Incorporated will be working with City staff and your bond counsel to craft an
acceptable undertaking which will either be incorporated in the resolution for the bonds, or
drafted as a separate document, the "Continuing Disclosure Certificate," and which will also be
included in the Official Statement for the issues.
Book Entry
We recommend the bonds be issued as "book entry only" bonds through the Midwest Securities
Trust Company of Chicago. Under the book entry system, the holders of the bonds will not
Page 3
City of Maplewood, Minnesota
July 17, 1995
receive printed bonds but will have only a record from the -broker /dealer stating they are held by
the depository. The use of the book entry system eliminates all costs to the City for printing
physical bonds. Although the bonds are issued in book entry form, which also eliminates the
need for a registrar, we recommend the City retain a registrar for nominal fee to send the City
reminder notices indicating the date and amount of the payments coming due and to act as an
intermediary with the depository, should the need arise.
Rating
The City is currently rated "Aa" by Moody's Investors Service. These issues will require a rating
review in order to maintain the ratings on the city's outstanding bonds and to insure the high
level of marketability for these issues. The rating agency fee has been pro -rated for each issue
and included in the bond issuance costs. The rating fee will be billed directly to the City by
Moody's,.
Federal Rebate — Arbitrage
The bonds are subject to federal arbitrage regulations. One of the requirements includes
rebating arbitrage profits to the U.S. Treasury. Generally speaking, all arbitrage profits (the
yield difference between the earnings on the investments and. the yield on the obligations) must
be rebated to the U.S. Treasury. There are some exemptions to this rebate requirement for the
Improvement Bonds, which include:
(i) A small issuer exemption if the bonds are for governmental purposes and the issuer
reasonably expects to issue not more than $5,000,000 of tax - exempt obligations during
the calendar year.
(ii) A six -month exemption if all of the proceeds are expended within six months of bond
issuance.
(iii) An 18 -month expenditure test if at least 15% of proceeds are expended within six
months, 60% within 12 months and 100% within 18 months.
(iv) A two -year expenditure test if at least 75% of the proceeds of the issue are used for
construction and if 10% is expended within six months, 45% within 12 months, 75%
within 18 months and 100 % within two years.
The City expects to qualify as a small issuer under (i) above for the Improvement Bonds and
therefore will be exempt from the reporting and rebate requirements. Although the City issued
$8.2 million of Housing Revenue Bonds earlier this year, those bonds were "private activity"
bonds subject to the Alternative Minimum Tax, and as such are not counted in the above
exemptions.
The Refunding Bonds qualify for exemption from arbitrage reporting and rebate requirements if
all of the following requirements can be met: (i) the advance refunding issue itself does not
exceed $5,000,000; (ii) the refunded issue was itself exempted from rebate when issued, or if
issued prior to 1986 it was issued in a year when the issuer did not issue more than $5,000,000
of governmental obligations; (iii) the average maturity date of the refunding issue is not later
than the average maturity date of the bonds to be refunded; and (iv) no refunding bond has a
maturity date later than 30 years after the date the original bond was issued. The structuring of
the Refunding Bonds meets the exemptions listed in items (i), (iii) and (iv). If the City failed to
meet the "small issuer" exemption in 1989 (item ii), then the Refunding Bonds will be subject to
arbitrage reporting and rebate. However, the City will not owe any rebate from investments
because the refunding bond proceeds will be used to purchase yield restricted securities for the
escrow account.
Page 4
City of Maplewood, Minnesota
July 17, 1995
Debt service funds created to pay debt..service on new issues are subject to yield restriction
unless they fall under the definition of "bona fide" debt service funds described as follows. A
bona fide debt service fund is defined as a fund for which there is an equal matching of revenue
to debt service expense with a carry over permitted equal to the greater of the in
earnings in the fund during that year or 1/12 of the debt service of that year. A debt service
fund can lose its bona fide status when investment earnings or prepayments of assessments
are accumulated, which are in excess of semiannual debt service payments. It is important to
monitor the debt service fund for the bonds to assure compliance with the regulations. Any
portion in excess of a bona fide debt service fund must be restricted in yield to the yield on the
bonds.
ral _Reimbursem _Regulation
The U.S. Treasury has enacted reimbursement regulations to regulate issuers who wish to
issue tax - exempt bonds to recover costs of prior expenditures. The reimbursement regulations
require that if the issuer proposes to reimburse itself for expenses they paid prior to receipt of
bond proceeds, it must have made a declaration of that intent within 60 days of the actual
.payment of the expense. There are exemptions for architectural and engineering fees and
miscellaneous start-up costs. We understand the City has complied with the federal
reimbursement regulations in regards to the Improvement Bonds.
Economic Life of Financed Projects
The 1993 final arbitrage regulations brought all tax - exempt issues into the calculation of
"economic life." Previously this requirement was only for private activity bonds. The intent of
this requirement is that the. U.S. Treasury does not want bonds outstanding longer than is
necessary, thus creating more tax- exempt bonds in the marketplace than are needed. The
general safe harbor for assuring that bonds comply with the regulations is if the average
maturity of the bonds does not exceed 120% of the economic life of the financed projects.
Since . the Improvement Bonds are being issued for infrastructure improvements which, under
the U.S. Treasury guidelines have an economic life of 20 years, the Improvement Bonds are in
compliance with this regulation since they have an average maturity of only 10.81 years.
For the Refunding Bonds, the "financed projects" relate to the use of the original proceeds of
the bonds being refunded. The 1989 Bonds were issued to finance infrastructure and park
improvements, which, under the U.S. Treasury guidelines, would have an economic life of 20
years. The average maturity of the Refunding Bonds is 9.79 years. The time which has
elapsed from the issuance date of the 1989 Bonds (November 1, 1989) to the issuance date of
the new refunding bonds (September 1, 1995) is 5.83 years, which equals a total of 15.62
years. Therefore, the Refunding Bonds are also in compliance with the regulation.
Bank- Qua.lified ,Obligations
The. Tax Reform Act also restricts the ability of banks to deduct tax - exempt interest as a
carrying expense under certain circumstances in. calculating their tax liability. Since the City
does not expect to issue more than $10,000,000 of tax - exempt obligations in 1995 (and the
Housing Revenue Bonds referenced earlier in these recommendations are not included in that
calculation), these bonds will be designated as "qualified obligations." This qualification will
help the marketability of the bonds.
Sale Procedure
Springsted Incorporated, together with Capital Guaranty Insurance Company, a municipal bond
insurer, will again offer a surety bond service, "Sure. Bid," to underwriters in lieu of putting up a
good faith check in order to bid on the bonds. In addition .to allowing underwriters to submit
Page 5
City of Maplewood, Minnesota
July 17, 1995
their bids by mail or telephone, we will also allow them to submit bids through PARITY, an
electronic bid filing process. Springsted has access to the bids via modem and will verify and
tabulate the bids received to determine the winning bid for each issue. We have allowed for the
use of Sure -Bid and PARITY in the Terms of Proposal for each issue, attached to these
recommendations. We believe that the use of these bidding options may attract more bids for
the bond sales, since it reduces I administrative barriers for an underwriter to bid. There is no
cost to the. City for these services and Springsted does not have a financial interest in the use
of Sure -Bid or PARITY.
We recommend these bonds be offered for sale on Thursday, August 24, 1995, with proposals
received at the offices of Springsted Incorporated at 11:00 A.M. The proposals will then be
verified for accuracy, and a compilation of such proposals will be presented to the City Council
at its special meeting at 4:30 P.M. that evening for consideration of award. A representative of
Springsted will attend the meeting to provide recommendations as to the acceptability of
proposals received and to comment on the procedures required for award. Bond proceeds will
be available in date September.
Respectfully submitted,
SPRINGSTE.7Incorporated
mmc
Page 6
City of Maplewood. Minnesota
$920.000 G.O. Improvement Bonds. Series 1995A
Less:
Less:
Estimated
Transfers
Project
Fund Project
Descri tion
Costs
575 93-02
T.H. 61 Frontage Roads
652,400
576 93-08
Sterling /Valley View /Schaller
1,060,280
580 93-14
Searle Street Storm Sewer
70.313
581 94-06
East Shore Drive Storm Sewer
55,725
(500,000)
Totals
1,835, 718
55,250
Plus: Costs of Issuance
(28,211)
679,069
Plus: Underwriter's Discount
42.525
(12.963)
Less: Estimated Investment Earnings
1995-2014
Total Bond Issue
(4,72§)
Less:
Less:
Transfers
State
- Less:
Years
In From
Aid
Special
Total
Other
Street
Assessment
Bond
F unds
Funds
Prepa yments
Financing
(31,470)
(500,000)
(13,564)
107,366
55,250
(353,000)
(28,211)
679,069
7.50%
42.525
(12.963)
57,350
1995-2014
(3
(4,72§)
47,250
(31,470)
(856,750)
(59,463)
891,035
1`5,490
11,895
( 3,429 )
215,000
Revenue Sources
Assessment
Tax
Special
Filing
Years
Assessment
Levy
Assessments
Dates
Payable
Rate
107,366
3-27-95
1996- 2015
7.00%
679,069
4-24-95
1996- 2015
7.00%
55,250
2,100
10 -10 -94
1995 -2014
7.50%
42.525
4.725
10-10-94
1995-2014
7.50%
97,775 793,260
'0
M
Z
0
X
City of Maplewood, Minnesota Prepared July 17, 1995
$915,000 G.O. Improvement Bonds, Series 1995A ,By SPAINGSTE Incorporated
Page 1 of 2
PROJECTED ASSESSMENT INCOME
93 -02
93 -08
93 -14
Filing
Date: 3/27/1995
Filing
Date: 4/24/1995
Filing
Date: 10/10/1994
Filing
Collect
Interest
Interest
Interest
Year
- - - --
Year
- - - - - --
Principal
--- - - - - --
@ 7.000%
-- - - - - --
Total
- - - --
Principal
--- - - - - --
@ 7.000%
-- - - - - --
Total
- - - --
Principal
--- - - - - --
@ 7.500%
-- - - - - --
Total
- - - --
1994
1995
105
1 93a
298
1995
1996
5
13
18
33
80,353c
114
105
150
255
1996
1997
5,368
7
12
33
45
79,111
105
142
247
1997
1998
5
6
12
33
42,781
76
105
134
239
1998
1999
5
6
11
33
40
74
105
126
231
1999
2000
5
6
11
33
38
71
105
118
223
2000
2001
5
5
11
33,953
35
69
105
110
21
2001
2002
5
5,261
10
33,953
33
67,228
105
102
207
2002
2003
5
4
10,253
33
30
64
105
95
200
2003
2004
5
4
9,878
33
28
62
105
87
192
2004
2005
5
4
9
33
26
60
105
79
184
2005
2006
5
3
9
33,953
23,768
57
105
71
176
2006
2007
5
3,382
8
33
21
55
105
63
168
2007
2008
5
3
8
33
19
52,967
105
55
160
2008
2009
5
2,631
7,999
33
16
50
105
47
152
2009
2010
5
2
7
33
14,261
48,214
105
39
144
2010
2011
5
1
7
33
11,884
45
105
32
137
2011
2012
5,368
1
6
33
9
43
105
24
129
2012
2013
5
1 ,128
6
33 , 953
7
41,084
105
16
121
2013
2014
5
752
6
33
4
38,707
105
8
113
2014
2015
5
376
5
33
2
36
-U TOTALS
107 366
>
84 684
>
192 050
679 069
>
53 i 939
>
1 211 008
> >
2 100
>
1 691
,
3 791
,
*p
M
Z
�
D
0o
b) Includes
interest from
filing
c) Includes
interest from filing
a) Includes
interest from
filing
X
date to
12/31/1996.
date to
12/31/1996.
date to
12/31/1995.
T
a)
cn
LT.
City of Maplewood, Minnesota
$915 G.O. Improvement Bonds, Series 1995A
PROJECTED ASSESSMENT INCOME
Filing Collect
Year Year
1994
1995
1995
1996
1996
1997
1997
1998
1998
1999
1999
.2000
2000
2001
2001
2002
2002
2003
2003
2004
2004
2005
2005
2006
2006
2007
2007
2008
2008
2009
2009
2010
2010
2011
2011
2012
2012
2013
2013
2014
2014
2015
TOTALS
94-06
Filing Date 10/10/1994
Interest
Principal @ 7.500% Total
236
435a
671
236
337
573
236
319
555
236
301
537
236
284
520
236
266
502
236
248
484
236
230
466
236
213
449
236
195
431
236
177
413
236
160
396
236
142
378
236
124
360
236
107
343
236
89
325
236
71
307
236
53
289
236
36
272
241
18
259
4 3 8
a) Includes interest from filing
date to 12/31/1995.
T 0 T A L - - - - -
Principal Interest Total
341
628
969
39,662
94
133
39
52
92
39
49
89
39
47,203
86
39
44
84
39
41
81
39
38
78
39,662
36
75
39,662
33
72,975
39
30
70
39
27,757
67,419
39
24
64
39
22,200
61
39
19
59
39
16
56
39,662
13,866
53
39
11
50
39
8,311
47,973
39
5,532
45,199
39
2
42
793 622,119 1
Prepared July 17, 1995
By SPRINGSTED Incorporated
Page 2 of 2
City of Maplewood, Mi nnesota
$915,000 G.O. Improvement Bonds, Serie 1995A
Prepar July 17 1995
By SPRINGSTED Incorporated
Dated:
9- 1 -1995
Mature:
2- 1
First Interest:
8- 1 -1996
Total
Projected
Cumulative
Year of Year of
Principal
105%
Assessment
Net
Annual
Cumulative
Levy
Mat.
Principal
Rates
Interest
& Interest of Total
Income
Requirement
Surplus
Surplus
(
(
(
(4)
(
(
(
(
(
(10)
i11)
1995
1997
60
4.00%
65
125 , 340
131
133
0
2076
2
1996
1998
45,000
4.15%
43 , 722
88 , 722
93,158
92
0
0
1
1997
1999
45
4.30%
41
86
91097
89
116
0
0
1998
2000
45
4.45%
39
84,919
89
86,865
2,300
0
0
1999
2001
45,000
4.55%
37,916
82,916
87,062
84
2,975
0
0
2000
2002
45,000
4.65%
35,868
80,868
84,911
81
3
0
0
2001
2003
45,000
4.75%
33,775
78
82
78,530
4084
0
0
2002
2004
45
4.85%
31
76,637
80
75,753
4
0
0
2003
2005
45,000
4.95%
29
74
78077
72
5
0
0
2004
2006
45,000
5.10%
27
72,226
75
70
5,641
0
.0
2005
2007
45,000
5.20%
24,931
69,931
73,428
67,419
6,009
0
0
2006
2008
45
5.30%
22
67
70
64,640
6
0
0
2007
2009
45,000
5.40%
20
65,206
68
61,862
6
0
0
2008
2010
45
5.50%
17
62
65
59
6
0
0
2009
2011
45
5.60%
15
60 , 301
63
56,306
7
0
0
2010
2012
45
5.65%
12,781
57
60,670
53
7
0
0
2011
2013
45
5.65%
10,238
55
58, 000
50,749
7 1 251
0
0
2012
2014
45,000
5.70%
7
52,695
55
47
7
0
0
2013
2015
45
5.70%
5
50
52
45
7
0
0
2014
2016
45
5.70%
2,565
47,565
49,943
42,089
7
0
0
TOTALS:
915
525
1,440,925 1
1
98,563
-� Bond Years:
9
Annual
Interest:
525 925
I
m
Avg. Maturi
10.76
Plus Discount:
*
11 895
z
M Avg. Annual Rate:
--&
5.341%
Net Interest:
537
a
X
0 T.I.C. Rate:
5.455%
N.I.C.
Rate:
5.462%
-
Interest rates are estimates;
changes
may cause
signif icant alterations
this schedule.
The actual
underwriter's discount
bid
may also
vary.
APPENDIX IV
Maplewood, Minnesota
G.O. Refunding Bonds, Series 1995
Full Crossover Advance Refunding of
G.O. Tax Increment Bonds of 1989
Even Annual Savings Structure
Issuer .Funds Required: $0.00
Date of Bonds:
09/01
Delivery Date:
09/26/95
Refunded Call Date:
02/01/99
1 st Callable Date:
0.2/01/20.00
Comparison:
Refunded
Refund
Principal:
1
1
Bond Years:
11, 679.58
11, 990.42
Avg. Maturity:
9.940
9.788
N IC:
6.803
5.189%
...... ... ...
Tt�ta� e�tav�Egs.,.
7-7 95
present U Sawn s:
48,421
AS 0/� f
:1-:330111,
�� P �V�•
445��
if -a ..D/ .tom .
Prepared: 07/14/95
By SPRINGSTED incorporated
'age 11
Maplewood, Minnesota
O.O. Tax Increment Bonds of 1989
Existing Debt Service
Schedule A
Prepared: 07/14/95
By SPRINGSTED Incorporated
Date
Principal
Rate
Interest
Semi - Annual
Annual
02/01/96
25,000.00
6.200-
43,913.75
68,913..75
68,913.75
08/01/96
6
of the refunding bonds
43, 138.75
43,138.75
02/0.1/97
30, 000.00
6.250%
43, 138.75
73, 138.75
116, 277 .50
08/01/97
42.
42,201.25
02/01/98
35,000.00
6.3000
42
77
119 402.50
0
41,098.75
41,098.75
02/0.1/99
40, 000.00
6.400-
41,098.75
81
122,197-50
08/01/99
39
39,818.75
02/01/2000
50,000.00
6.500 0
39,818.75
89,818.75
129,637 .50
08/01/2000
38, 193.75
38,193.75
02/01/2001
55, 000.00
6.600%
38,193.75
93,193.75
131, 387.50
08/01/2001
36,378.75
36,378.75
02/01/2002
60,000.00
6.650-
36, 378.75
96,378.75
132
08/01/2002
34,383.75
34,383.75
02/01/2003
100,000.00
6.7000
34,383.75
134,383.75
168,767.50
08/01/2003
31
31,033.75
02/01/2004
125, 000.00
6 .750 0
31,033.75
156, 033 .75
187, 067.50
08/01/2004
26,815.00
26,815.00
02/01/2005
140, 000 .00
6.750t
26, 815.00
166 815 .00
193, 630 .00
08/01/2005
22,090.00
22,090.00
02/01/2006
155,000.00
6.8000
22,090.00
177,090.00
199,180.00
08/01/2006
16,820.00
16,820.00
02/01/2007
170, 000 .00
6.800-
16, 820.00
186, 820 .00
203, 640 .00
0.8/01/2007
11,040.00
11,040.00
02/01/2008
185,000.00
6.9000
11,040.00
196,040.00
207,080.00
08/01/2008
4
4,657.50
02/01/2009
135, 000.00
6 .9000
4
139, 657 .50
144, 315 .00
Totals
1
819, 253 .75
2 2
Bond Years:
11,953.75
All lower calculations
Refunded Bonds Only
Avg. Mat..:
9.160
are made from the date
Avg. Mat..: 9.94
NIC .......:
6
of the refunding bonds
NIC .......: 6.803
Page 12
Maplewood, Minnesota
G . 0 , Tax Increment Bonds of 1989
Refunded Principal and any Call Premium
Schedule B
Date Principal Premium
02/01/99 1 1 175,000.00
Prepared: 07/14/95
By SPRINGSTED Incorporated
Semi - Annual Annual
1,175, 000.00 1, 175, 000.00
Totals 1 1 1
Call Date .............: 02/01/99 This portion will be paid by the escrow.
First Date Called.....: 02/01/2000 The escrow will also pay the interest on
Call .Premium....:.....: the refunding bonds thru the call date.
Page 13
Maplewood, Minnesota
G.0 Tax Increment Bonds of 1989
Non - Refunded Principal and Non - Refunded Interest
Schedule C
Date Principal Interrest
Prepared: 07/14/.95
By SPRINGSTED Incorporated
Semi- Annual Annual
02/01/96
25,00.0.00
43,913.75
68,913.75
68,913.75
08/01/96
43,138.75
43,138.75
02/01/97
30,000.0.0
43
73 , 138 .75
116, 277 .50
08/01/97
42,201.25
42,201.25
02/01/98
35,000.00
42, 201.25
77, 201.25
119, 402 .50
0
41,098.75
41 098.75
02/01/99
40, 000.00
41,058.75
.81, 098.75
122, 197 .50
Totals 130, 000.00 296, 791.25 426, 791.25 426, 791 .25
Call Date .............: 02/01/99 This portion will be paid by the issuer.
First Date Called.....: 02/01/2000 The issuer will also P Y a debt service on
Call Premium..........: the refunding bonds after the call date.
Page 14
Maplewood, Minnesota-
G.O. Refunding Bonds, Series 1995
Refunding Debt .Service
Date
Principal
Schedule D
Rate Interest
08/01/96
02/01/97
08/01/97
Q2/O1/98
08/01/98
Q2/O1/99
08/01/99
02/01/2000
08/01/2000
02/01/2001
08/01/2001
02/01/2002
08/01/20.02
02/01/2003
08/OI/2003
02/01/2004
OS/Ol/20Q4
02/01/2005
08/01/20.05
02/01/2006
OS/01/2006
02/01/2007
08/01/2007
02/01/2008
08/01/2008
02/01/200.9
Totals
Bond Years:
Avg. Mat..:
NIC ....... :
60, 000.00
65,000.00
70, 000.00
110, 000. 00
130, 000.00
145, 000 .00
160, 000.00
170,000.00
185,000.00
130, 000.00
1, 225, 000.00
11,990.42
9.788
5.1890
609,959.58
* Paid by escrow.
All other payments
made by the issuer.
Prepared: 07/14/95
By SPRINGSTED Incorporated
Semi- Annual
56,297.08 *
30,707.50 *
30,707.50
30,707.50
30,7.07.50
30,707.50
30,707.50
90,707.50
29,372.50
94,3.72.50
27,893.75
97,893.75
26, 266.25
136, 266.25
23,653.75
153,653.75
20,501.25
165
16, 912.50
176,912.50
12,832.50
182,832.50
8,412.50
193,412.50
3,510.00
133,510.00
Annual
87,004.58
61,415.00
61,415.00
121,415.00
123,745.00
125,7.87450
162,532.50
177,307.50
186,002.50
193,825.00
195,665.00
201,825.00
137, 020.00
1
Bond Date.:
Delivery..:
Bond Yield:
1
09/01/95
09/26/95
5.067010
Page 15
56,297.08
30,707.50
30,707.50
.30,707.50
30,707.50
30, 707.50
30, 707.50
4.4500
30,707.50
29 50
4.5500
29,372.50
27,893.75
4.650
27,893.75
26, 266.25
4.7500
26,266.25
23,653.75
4.8500
23
20,501.25
4.950%-
20, 501.25
16,912.50
5.1000
16, 912.50
12,832.50
5.2000
12, 832.50
8
5 .300%
$1412.50
3
5.4000
3
609,959.58
* Paid by escrow.
All other payments
made by the issuer.
Prepared: 07/14/95
By SPRINGSTED Incorporated
Semi- Annual
56,297.08 *
30,707.50 *
30,707.50
30,707.50
30,7.07.50
30,707.50
30,707.50
90,707.50
29,372.50
94,3.72.50
27,893.75
97,893.75
26, 266.25
136, 266.25
23,653.75
153,653.75
20,501.25
165
16, 912.50
176,912.50
12,832.50
182,832.50
8,412.50
193,412.50
3,510.00
133,510.00
Annual
87,004.58
61,415.00
61,415.00
121,415.00
123,745.00
125,7.87450
162,532.50
177,307.50
186,002.50
193,825.00
195,665.00
201,825.00
137, 020.00
1
Bond Date.:
Delivery..:
Bond Yield:
1
09/01/95
09/26/95
5.067010
Page 15
Maplewood,
Minnesota
1
2, 051, 916.25 2 72,337.50
Prepared:
07 14 /95.
/
G.O. Refundi.ng Bonds , - Serie -s 1995
Excess Proceeds......: 12.06
By SPRINGSTED
Incorporated
Annual Savings Analysis
Funds to Sinking Fund:
As o of
P.V. Ref. D /S:
4.450
Total Net Savings....: 72,349.56
Schedule E
Non- Refunded
Refunding
Total New
Existing
Savings
g
Date
Debt Service
Debt Service
Debt Service
De
Debt Sery ce
or (Loss
(1)
(2)
(3)
(4)
(5)
(6)
02/0.1/96
68,913.75
68,913.75
68,913.75
08/01/96
02/01/97
116,277.50
116,277.50
116 277.50
08/01/97
02/01/98
119,402.50
1.19 442.50
119,402.50
.50
08/01/98
.
02 /01/99
122 , 197.50
122,197.50
122,197.50
08/01/9.9
02/01/2000
121, 415.00
121, 415 .00
129,637.50
8,222.50
08/01/2000
02/01/2001
123, 745.00
123, 745.00
131, 387.50
7
08/01/2001
02/01/2002
125, 787 .50
125, 787.50
132,757.50
6
08/01/2002
02/01/2003
162,532.50
162,532.50
168,767.50
6 1 235.00
08/01/2003
02/01/2004
177,307.50
177,307.50
187 067.50
9
60.00
08/01/2004
02/01/2005
186,002.50
186,002.50
193,630.00
7
08/01/2005
02/01/2006
193,825.00
193,825.00
199,180.00
5
08/01/2006
02/01/2007
195,665.00
195,665.00
203,640.00
7 1 975.00
08/01/2007
02/01/2008
201, 825 .00
201, 825 .00
207, 080 .00
5
08/01/2008
02/01/2009
137,020.00
137,020.00
144,315.00
71295.00
Totals
426, 791.25
1
2, 051, 916.25 2 72,337.50
Present
Value Rate...:
5.067010
Excess Proceeds......: 12.06
Present
Value Savings:
48,421.10
Funds to Sinking Fund:
As o of
P.V. Ref. D /S:
4.450
Total Net Savings....: 72,349.56
Page 16
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$91 5po
CITY OF MAPLEWOOD, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 19.95A
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Thursday, August 24, 1995, until 11:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
of the Bonds will be by the City Council at 4:30 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a sealed envelope or by fax (612) 223 -3002 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 .(612) 223 -3000 or fax (612.) 223 -3002 for inclusion in the
submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach
Springsted prior to the time of sale specified above. Proposals may also be filed electronically
via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal,
within a one -hour period prior to the time of sale established above, but no Proposals will be
received after that time. If provisions in the Terms of Proposal conflict with the PARITY Rules
of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be
obtained from PARITY and such fee shall be the responsibility of the bidder. For further
information about PARITY, potential bidders may contact PARITY at 100 116th Avenue SE,
Suite 100, Bellevue, Washington 98004, telephone (206) 635 -3545. Neither the City nor
Springsted Incorporated assumes any Liability if there is a malfunction of PARITY. 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 of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will be dated September 1, 1995, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1,
1996. 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:
1997 $60 2002 $45,000 2007 $45,000
2012
$45
1998 $45,000 2003 $45,000 2008 $45
2013
$45,000
1999 $45,000 2004 $45,000 2009 $45,000
2014
$45,000
2000 $45,000 2005 $45 2010 $45,000
2015
$45
2001 $45 2006 $45,000 2011 $45,000
2016
$45,000
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,
Page 17
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Kray & Co. as nominee of Midwest Securities Trust Company
('.'MSTC"), Chicago, Illinois, which will act as securities depository of 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 MSTC and its
participants. Principal and interest are payable by the registrar to MSTC or its nominee as
registered owner of the Bonds. Transfer of principal and interest payments to participants of
MSTC will be the responsibility of MSTC; 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 purchaser, as a condition of delivery of the Bonds, will be
required to deposit the Bonds with MSTC.
REGISTRAR
Norwest Bank Minnesota, National Association, in Minneapolis, Minnesota will serve as
registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2005, and on any day thereafter, to prepay Bonds due on or
after February 1, 2006. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify MSTC of the particular amount of such maturity to be
prepaid. MSTC will determine by lot the amount of each participant's interest in such maturity
to be redeemed and each participant will then select by lot the beneficial ownership interests in
such . maturity to be redeemed. All prepayments shall be at a price of par plus 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 special
assessments against benefited property. The proceeds will be used to finance improvement
projects within the City.
TYPE OF PROPOSALS
Proposals shall be for not less than $903,105 and accrued interest on the total principal amount
of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ( "Deposit ") in the form
of a certified or cashier's check or a Financial Surety Bond in the amount of $9,150, payable to
the order of the City. If a check is used, it must accompany each proposal. If a Financial
Surety Bond is used, it must be from an insurance company licensed to issue such a bond in
the. State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The City will deposit the check of the purchaser, the amount of which will be deducted at
settlement and no interest will accrue to the purchaser. In the event the purchaser fails to
comply with the accepted proposal, said amount will be retained by the City. No proposal can
be withdrawn or amended after the time set for receiving proposals unless the meeting of the
City scheduled for award of the Bonds is adjourned, recessed, or continued to another date
without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or
1/8 of 1%. Rates must be in ascending order. Bonds of the same maturity shall bear a single
Page 18
rate from the date of the Bonds to the date of maturity. No conditional proposals will be
accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to. be determined on a true
interest cost (TIC) basis. 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 which the pity determines to have failed to comply
with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and .received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
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
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, 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 12:00 Noon, 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.
CONTINUING DISCLOSURE
The City will covenant in the resolution awarding the sale of the Bonds and in a Continuing
Disclosure Certificate to provide, or cause to be provided, annual financial information, including
audited financial statements of the City, and notices of certain material events, as required by
SEC Rule 15 (c)2 -12.
Page 19
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly-final Official
Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223 - 3000.
The. Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information re* quired by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2 -12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
.senior managing underwriter of the syndicate to which the Bonds are awarded 35 copies of the
Off cial Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter.
Any ..underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring
the. receipt by each such Participating Underwriter of the Final Official Statement.
Dated July 24, 1995
BY ORDER OF THE CITY COUNCIL
/s/ Lucille E. Aurelius
City Clerk
Page 20
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,225,000*
CITY OF MAPLEWOOD, MINNESOTA
GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS,
SERIES 1996B
(BOOK ENTRY ONLY)
Proposals for the Bonds will be received on Thursday, August 24, 1995, until 11:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
Of the Bonds will be by the City Council at 4:30 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Proposals may be submitted in a seated envelope or by fax (612) 223 -3002 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 (612) 223 -3000 or fax (612) 223 -3002 for inclusion in the
submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach
Springsted prior to the time of sale specified above. Proposals may also be filed electronically
via PARITY, in accordance with PARITY. Rules of Participation and the Terms of Proposal,
within a one -hour period prior to the time of sale established above, but no Proposals will be
received after that time. If provisions in the Terms of Proposal conflict with the PARITY Rules
of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY ma y be
obtained from PARITY and such fee shall be the responsibility of the bidder. For further
information about PARITY, potential bidders may contact PARITY at 100 116th Avenue SE,
Suite 100, Bellevue, Washington 98004, telephone (206) 635- 3545. Neither the City nor
Springsted Incorporated assumes any liability if there is a malfunction of PARITY. 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 of the Proposal submitted.
DETAILS OF THE BONDS
The Bonds will be dated September 1, 1995, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 1996. 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:
2000 $ 60,000 2004 $130,000 2007 $170,000
2001 $ 65,000 2005 $145,000 2008 $185,000
2002 $ 70,000 2006 $160 2009 $130,000
2003 $110
The City reserves the right, after bids are opened and prior to award, to increase or reduce the
principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total
amount not to exceed $25, 000 and will be made in multiples of $5, 000 in any of the maturities. In the
event the principal amount of the Bonds is increased or reduced, any premium offered or any discount
taken by the successful bidder will be increased or reduced by a percentage equal to the percentage
by which the principal amount of the Bonds is increased or reduced.
Page 21
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 Kray & Co. as nominee of Midwest Securities Trust Company
( "MSTC "), Chicago, Illinois, which will act as securities depository. of the Bonds. 1ndividual
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 MSTC and its
participants. Principal and interest are payable by the registrar to MSTC or its nominee as
registered owner of the Bonds. Transfer of principal and interest payments to participants of
MSTC will be the responsibility of MSTC; 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 purchaser, as a condition of delivery of the Bonds, will be
required to deposit the Bonds with MSTC.
REGISTRAR
Norwest Bank Minnesota, National Association, in Minneapolis, Minnesota will serve as
registrar.
OPTIONAL REDEMPTION
The City may elect on, February 1, 2005, and on any day thereafter, to prepay Bonds due on or
after February 1, 2006. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify MSTC of the particular amount of such maturity to be
prepaid. MSTC will determine by lot the amount of each participant's interest in such maturity
to be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments shall be at a price of par plus 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 tax
increment income generated within the City's Housing District No. 1 -3, Economic Development
District No. 1 -2 and Economic Development District No. 1 -3. The proceeds will be used to
refund the 2000 through 2009 maturities of the City's General Obligation Tax Increment Bonds
of 1989, dated November 1, 1989.
TYPE OF PROPOSALS
Proposals shall be for not less than $1,212,750 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ( "Deposit ") in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $12,250
payable to the order of the City. If a check is used, it must accompany each proposal. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The City will deposit the check of the purchaser, the amount of which will be deducted at
Page 22
settlement and no interest will accrue to the purchaser. In the event the purchaser fails to
comply with the accepted proposal, said amount will be retained by the City. No proposal can
be withdrawn or amended after the time set for receiving proposals unless the meeting of the
City scheduled for award of the Bonds is adjourned, recessed, or continued to another date
without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or
1/8 of 1 %. Rates must be in ascending order. Bonds of the same g maturity shall bear a single
rate from the date of the Bonds to the date of maturity. No conditional proposals will be
accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. 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 which the City determines to have failed to comply
with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
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
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,
99 g ,
Professional Association, of Saint Paul and 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 which shall be received at the offices of the City
or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms
of payment for the 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.
Page 23
CONTINUING DISCLOSURE
The Cit will covenant in the resolution awardin t he sale of --the Bonds and in a. Continuin
Disclosure Certificate to provi or cause to be provided, annual financial inform includin
audited financial statements of the Cit and notices of certain material events, as re b
SEC Rule 15
OFFICIAL STATEMENT
The Cit has authorized the preparation of an Official Statement containin pertinent
information relative to the Bonds, and said .Official Statement will serve as a nearl Official
Statement within the meanin of Rule 15c2-12 of the Securi and E.xchan Commission.
For copies of the Official Statement or for an additional information prior to sale, an
prospective purchaser is referred to the Financial Advisor to the Cit Sprin Incorporated,
85 East Seventh Place, Suite 100, Saint Paul.,. Minnesota 55101, telephone ( 612) 223-3000.
The Official Statement, when further supplemented b an addendum or..addenda. specif the
maturit dates, principal amounts and interest rates of the Bonds, to . with an other
inform ation re b law, shall constitute a "Final .Official Statement", of the Cit With respect
to the Bonds, as that term is defined in Rule 15c2-12. B awa the Bonds to an
underwriter or underwritin s submittin a proposal therefor, the Cit a that, no
more than seven business da after the date of such award, - it shall provide without cost to the
s . enior mana underwriter of the s y ndicate to which the Bonds are awarded 50 copies of the
Official Statement and the addendum or addenda described above. The Cit desi the
se . nior mana underwriter*of the s to which t he Bonds are awarded as its a for
p I urposes of distributin copies of the Final Official Stateme to each Participatin Underwriter.
An unde deliverin a proposal with respect to the Bonds a g rees thereb that if its
proposal is accepted b the Cit ( I.) it shall accept such * desi and ( ii ) it shall enter into a
contractual relationship with all Participatin Underwriters of the Bonds for purposes of assurin
the receipt b each such Participatin Underwriter of the Final Offi Statement.
Dated J 24, 1995
BY ORDER OF THE CITY COUNCIL
/s/ Lucille E. Aurelius
Cit Clerk
Pa 24