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4. $4.5 Million General Obligation Bonds, Series 1995C.MEMORANDUM CITY OF CHANHASSEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 TO: Mayor and City Council FROM: Don Ashworth, City Manager DATE: November 21, 1995 SUBJ: $4.5M General Obligation Bonds, Series 1995C, Award of Bids Dave MacGillivrary from Springsted will be presenaMonday evening to read bids received for this bond issue as well as to discuss our rating, pener�l bidding climate, etc. Attached please find a copy of the Official Statement for this sale - ;� OFFICIAL STATEMENT DATED NOVEMBER 15, 1995 ' Ratings: Requested from NEW ISSUES Standard and Poor's Corporation In the opinion of Kennedy & Graven, Chartered, Bond Counsel, under existing laws, regulations, rulings and decisions, assuming ' compliance with the covenants set forth in the Resolution, the interest on the Bonds is not includable in the gross income of the owners thereof for federal income tax purposes or in taxable net income of individuals, estates or trusts for Minnesota income tax purposes, and is not a preference item for purposes of the computation of the federal alternative minimum tax or the computation of Minnesota alternative minimum tax imposed on individuals, trusts and estates. Interest on the Bonds is includable in the calculation of certain federal and Minnesota taxes imposed on corporations. (For a description of related issues, see "Tax 1 Exemption - herein.) $4,500,000 City of Chanhassen, Minnesota General Obligation Improvement Bonds, Series 1995C (Book Entry Only) Dated Date: December 1, 1995 Interest Due: Each February 1 and August 1, commencing August 1, 1996 The Bonds will mature February 1 as follows: 1998 $510,000 2000 $470,000 2002 $850,000 2004 $440,000 1999 $475,000 2001 $460,000 2003 $955,000 2005 $340,000 The City may elect on February 1, 2003, and on any day thereafter, to prepay the Improvement Bonds due on or after February 1, 2004 at a price of par plus accrued interest. The Bonds will be general obligations of the City for which the City pledges 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 various improvements within the City. Proposals shall be for not less than $4,441,500 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a good faith deposit in the form of a certified or cashier's check or a Financial Surety Bond in the amount of $45,000, payable to the order of the City. Proposals shall specify rates in integral multiples of 5/100 or 1/8 of 1 %. Rates shall be in ascending order. Award of the Bonds will be on the basis of True Interest Cost (TIC). The Bonds will be bank - qualified tax - exempt obligations pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, and will not be subject to the alternative minimum tax for individuals. The Bonds will be issued as fully registered bonds without coupons and, when issued, will be ' registered in the name of Cede & Co., as nominee of the Depository Trust Company (the "Depository"). The Depository will act as securities depository of the Bonds. Individual purchases may be made in book entry form only, in the principal amount of $5,000 and integral ' multiples thereof. Purchasers will not receive certificates representing their interest in the Bonds purchased. (See "Book Entry System" herein.) The City will name the Registrar and pay the registration services. ' PROPOSALS RECEIVED: November 27, 1995 (Monday) at 1:00 P.M., Central Time AWARD: November 27, 1995 (Monday) at 7:30 P.M., Central Time SPRINGSTED Further information my be obtained from SPRINGSTED Incorporated, Financial Advisor to the Issuer, 85 East Seventh Place, Suite 100, PUBLIC FINANCE ADVISORS Saint Paul, Minnesota 55101 (612) 223 -3000 For purposes of compliance with Rule 15c2 -12 of the Securities and Exchange Commission, ' this document, as the same may be supplemented or corrected by the Issuer from time to time (collectively, the "Official Statement "), may be treated as an Official Statement with respect to the Obligations described herein that is deemed final as of the date hereof (or of any such ' supplement or correction) by the Issuer, except for the omission of certain information referred to in the succeeding paragraph. The Official Statement, when further supplemented by an addendum or addenda specifying the ' maturity dates, principal amounts and interest rates of the Obligations, together with any other information required by law, shall constitute a "Final Official Statement" of the Issuer with respect to the Obligations, as that term is defined in Rule 15c2 -12. Any such addendum shall, on and after the date thereof, be fully incorporated herein and made a part hereof by reference. By awarding the Obligations to any underwriter or underwriting syndicate submitting a Proposal therefor, the Issuer 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 Obligations are awarded copies of the Official Statement and the addendum or addenda described in the preceding paragraph in the amount specified in the Terms of Proposal. The Issuer designates the senior managing underwriter of the syndicate to which the Obligations 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 Obligations agrees thereby that if its bid is accepted by the Issuer (i) it shall accept such designation and (ii) it shall enter into a contractual relationship with all Participating Underwriters of the Obligations for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. No dealer, broker, salesman or other person has been authorized by the Issuer to give any information or to make any representations with respect to the Obligations other than as contained in the Official Statement or the Final Official Statement, and, if, given or made, such other information or representations must not be relied upon as having been authorized by the , Issuer. Certain information contained in the Official Statement and the Final Official Statement may have been obtained from sources other than records of the Issuer and, while believed to be reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL ' STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS BEEN NO CHANGE IN THE AFFAIRS OF THE ISSUER SINCE THE DATE THEREOF. References herein to laws, rules, regulations, resolutions, agreements, reports and other documents do not purport to be comprehensive or definitive. All references to such documents are qualified in their entirety by reference to the particular document, the full text of which may contain qualifications of and exceptions to statements made herein. Where full texts have not been included as appendices to the Official Statement or the Final Official Statement, they will ' be furnished on request. C 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 TABLE OF CONTENTS Page(s Termsof Proposal ............................................................................ ............................... i -iv Scheduleof Bond Years ................................................................... ............................... v Introductory Statement ContinuingDisclosure ........................................................................ ............................... TheBonds ......................................................................................... ............................... BookEntry System ............................................................................ ............................... Authorityand Purpose ....................................................................... ............................... Securityand Financing ...................................................................... ............................... FutureFinancing ................................................................................ ............................... Litigation............................................................................................ ............................... Legality.............................................................................................. ............................... TaxExemption ................................................................................... ............................... Bank - Qualified Obligations ................................................................ ............................... Rating................................................................................................ ............................... FinancialAdvisor ............................................................................... ...............:............... Certification........................................................................................ ............................... CityProperty Values .......................................................................... ............................... CityIndebtedness .............................................................................. ............................... City Tax Rates, Levies and Collections .............................................. ............................... Fundson Hand .................................................................................. ............................... CityInvestments ................................................................................ ............................... General Information Concerning the City ........................................... ............................... Governmental Organization and Services .......................................... ............................... Proposed Form of Legal Opinion ............................................. ............................... ContinuingDisclosure ............................................................... ............................... Summary of Tax Levies, Payment Provisions, and Minnesota Real Property Valuation ....................................... ............................... Annual Financial Statements ................................................... ............................... ProposalForms .................................................................... ............................... 1 1 1 -2 2 -3 3 4 4 4 4 -5 5 5 -6 6 6 6 -7 8 -12 12 -13 13 13 -14 14 -17 17 -19 Appendix I Appendix II Appendix III Appendix IV Inserted I (This page was left blank intentionally.) I ' THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL ' $4,500,000 ' CITY OF CHANHASSEN, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1995C ' (BOOK ENTRY ONLY) Proposals for the Bonds will be received on Monday, November 27, 1995, until 1:00 P.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 7:30 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 December 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: ' 1998 $510,000 2001 $460,000 2004 $440,000 1999 $475,000 2002 $850,000 2005 $340,000 2000 $470,000 2003 $955,000 ' 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, representing the aggregate principal amount of the Bonds maturing in each year, will be -i- "DTC "), registered in the name of Cede & Co. as nominee of The Depository Trust Company ( New York, New York, 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 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 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 SEC regulations. The City , will pay for the services of the registrar. OPTIONAL REDEMPTION , The City may elect on February 1, 2003, and on any day thereafter, to prepay Bonds due on or after February 1, 2004. 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 DTC of the particular amount of such maturity to be prepaid. DTC 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 various improvements within the City. TYPE OF PROPOSALS Proposals shall be for not less than $4,441,500 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 $45,000, 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 -ii - ' 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 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 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 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 I 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 required 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 180 copies of the Official 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 November 6, 1995 BY ORDER OF THE CITY COUNCIL /s/ Don Ashworth City Manager ail L 1 �7 - iv SCHEDULE OF BOND YEARS ' $4,500,000 CITY OF CHANHASSEN, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1995C ' ENTRY ONLY) (BOOK Cumulative Year Principal Bond Years Bond Years ' 1998 $510,000 1,105.0000 1,105.0000 1999 $475,000 1,504.1667 2,609.1667 2000 $470,000 1,958.3333 4,567.5000 2001 $460,000 2,376.6667 6,944.1667 2002 $850,000 5,241.6667 12,185.8334 ' 2003 $955,000 6,844.1667 19,030.0001 2004 $440,000 c 3,593.3333 22,623.3334 2005 $340,000 c 3,116.6667 25,740.0001 ' Average Maturity: 5.72 Years Bonds Dated: December 1, 1995 Interest Due: August 1, 1996 and each February 1 and August 1 to maturity. ' Principal Due: February 1, 1998 -2005 inclusive. Optional Call: Bonds maturing on or after February 1, 2004 are callable commencing February 1, 2003 and any date thereafter at par. (See Terms of Proposal.) c: subject to optional call -v- 1 r (This page was left blank intentionally.) i 1 1 0 OFFICIAL STATEMENT $4,500,000 CITY OF CHANHASSEN, MINNESOTA GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1995C (BOOK ENTRY ONLY) INTRODUCTORY STATEMENT This Official Statement contains certain information relating to the City of Chanhassen, Minnesota (the "City ") and its issuance of $4,500,000 General Obligation Improvement Bonds, Series 1995C (the 'Bonds" or the "Issue "). The Bonds are general obligations of the City for which the City pledges its full faith and credit and power to levy direct general ad valorem taxes without limit as to rate or amount. Additional sources of security are described herein. Inquiries may be directed to Mr. Donald Ashworth, City Manager, City of Chanhassen, 690 Coulter Drive, Chanhassen, Minnesota 55317 -0147 or by telephoning (612) 937 -1900. Inquiries may also be made to Springsted Incorporated, 85 East Seventh Place, Suite 100, St. M Paul, Minnesota 55101 -2143, or by telephoning (612) 223 -3000. 0 CONTINUING DISCLOSURE In order to assist the Underwriters in complying with SEC Rule 15c2 -12 promulgated by the Securities and Exchange Commission, pursuant to the Securities Exchange Act of 1934 (the 'Rule "), pursuant to the Award Resolution, the City has entered into an undertaking (the "Undertaking ") for the benefit of holders of the Bonds to provide certain financial information and operating data relating to the City to certain information repositories annually, and to provide notices of the occurrence of certain events enumerated in the Rule to certain information repositories or the Municipal Securities Rulemaking Board and to any state information depository. The specific nature of the Undertaking, as well as the information to be contained in the annual report or the notices of material events is set forth in the Continuing Disclosure Certificate to be executed and delivered by the City at the time the Bonds are delivered in substantially the form attached hereto as Appendix II. The City has never failed to comply in all material respects with any previous undertakings under the Rule to provide annual reports or notices of material events. A failure by the City to comply with the Undertaking will not constitute an event of default on the Bonds (although holders will have any available remedy at law or in equity). Nevertheless, such a failure must be reported in accordance with the Rule and must be considered by any broker, dealer or municipal securities dealer before recommending the purchase or sale of the Bonds in the secondary market. Consequently, such a failure may adversely affect the transferability and liquidity of the Bonds and their market price. THE BONDS General Description The Bonds will be dated December 1, 1995 and will mature annually each February 1, commencing February 1, 1997 as set forth on the cover of this Official Statement. The Bonds are being issued in global book entry form. Interest on the Bonds is payable August 1, 1996 and semiannually thereafter on each February 1 and August 1 and will be payable, together -1- with principal, only at maturity or upon prior redemption. The City will name the Registrar and pay for registration services. Optional Redemption The City may elect on February 1, 2003, and on any day thereafter, to prepay the Bonds due on February 1, 2004. Redemption may be in whole or in part and if in part at the option of the City and in such order as the City shall determine. If a maturity is prepaid only in part, prepayments will be in increments of $5,000 of principal. All optional prepayments shall be at a price of par plus accrued interest. BOOK ENTRY SYSTEM The Depository Trust Company ( "DTC "), New York, New York, will act as securities depository for the Bonds. The Bonds will be issued as fully- registered securities registered in the name of Cede & Co. (DTC's partnership nominee). One fully- registered Bond certificate per maturity will be issued in the principal amount of the Bonds maturing in such year, and will be deposited with DTC. DTC is a limited - purpose trust company organized under the New York Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC holds securities that its participants ( "Participants ") deposit with DTC. DTC also facilitates the settlement among Participants of securities transactions, such as transfers and pledges in deposited securities through electronic computerized book entry changes in Participants' accounts, thereby eliminating the need for physical movement of securities certificates. Direct Participants ( "Direct Participants ") include securities brokers and dealers, banks, trust companies, clearing corporations, and certain other organizations. DTC is owned by a number of its Direct Participants and by the New York Stock Exchange, Inc., the American Stock Exchange, Inc., and the .National Association of Securities Dealers, Inc. Access to the DTC system is. also available to others such as securities brokers and dealers, banks, and trust companies that clear through or maintain a custodial relationship with a Direct Participant, either directly or indirectly ( "Indirect Participants "). The Rules applicable to DTC and its Participants are on file with the Securities and Exchange Commission. Purchases of Bonds under the DTC system must be made by or through Direct Participants, which will receive a credit for the Bonds on DTC's records. The ownership interest of each actual purchaser of each Bond ( "Beneficial Owner ") is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive written confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interest in the Bonds are to be accomplished by entries made on the books of Participants acting on behalf of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interest in the Bonds, except in the event that use of the book entry system for the Bonds is discontinued. To facilitate subsequent transfers, all Bonds deposited by Participants with DTC are registered in the name of DTC's partnership nominee, Cede & Co. The deposit of Bonds with DTC and their registration in the name of Cede & Co. effect no change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Bonds. DTC's records reflect only the identity of the Direct Participants to whose accounts such Bonds are credited, which may or may not be the Beneficial Owners. The Participants will remain responsible for keeping account of their holdings on behalf of their customers. -2- Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements among them, subject to any statutory or regulatory requirements as may be in effect from time to time. Redemption notices shall be sent to Cede & Co. If less than all of the Bonds within an issue are being redeemed, DTC's practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither DTC nor Cede & Co. will consent or vote with respect to Bonds. Under its usual procedures, DTC mails an Omnibus Proxy to the Bond Registrar as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or voting rights to those Direct Participants to whose accounts the Bonds are credited on the record date (identified in a listing attached to the Omnibus Proxy). Principal and payments on the Bonds will be made to DTC. DTC's practice is to credit Direct Participants' accounts on the payment date in accordance with their respective holdings shown on DTC's records unless DTC has reason to believe that it will not receive payment on payable date. Payments by Participants to Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such Participant and not of DTC, the City, subject to any statutory or regulatory requirements as may be in effect from time to time. Payment of principal or interest to DTC is the responsibility of the Registrar, disbursement of such payments to Direct Participants shall be the responsibility of DTC, and disbursement of such payments to the Beneficial Owners shall be the responsibility of Direct and Indirect Participants. DTC may discontinue providing its services as securities depository with respect to the Bonds at any time by giving reasonable notice to the Bond Registrar. Under such circumstances, in the event that a successor securities depository is not obtained, Bond certificates are required to be printed and delivered. The City may decide to discontinue use of the system of book entry transfers through DTC (or a successor securities depository). In that event, Bond certificates will be printed and delivered. The information in this section concerning DTC and DTC's book entry has been obtained from sources that the City believes to be reliable, but the City take no responsibility for the accuracy thereof. AUTHORITY AND PURPOSE The Improvement Bonds are being issued pursuant to Minnesota Statutes, Chapters 475 and 429. Proceeds of the Improvement Bonds will be used to finance utility and street improvements for three projects in areas of the City. The composition of the Improvement Bonds is as follows: Project Costs: Lake Lucy $ 700,000 Galpin/W. Coutler 1,309,500 Lyman 2,310,000 Issuance Costs 27,190 Allowance for Underwriters Discount 58,500 Capitalized Interest 107,315 Subtotal $4,512,505 Less: Estimated Investment Earnings (12.505 Total Bond Issue Size $4.500.000 -3- SECURITY AND FINANCING In addition to its general obligation pledge, the City pledges special assessments against benefited property for payment of the Improvement Bonds. The City filed assessments of $380,015 and $399,500 of principal on October 9 and October 23, 1995 respectively, to be collected over an 8 -year terms beginning in 1996. In November of 1996, the City expects to file assessments for $3,000,000 to be collected over nine years, for first collection in 1997. All assessments have been or will be filed with equal annual payments of principal and interest charged on the unpaid balance at a rate of 7.5 %. Project costs which are not assessed will be paid from a general ad valorem tax levy. The City expects to make an annual levy of approximately $196,308 for repayment of the Improvement Bonds. The August 1, 1996 interest payment will be made from a combination of capitalized interest included in the Improvement Bonds, and special assessments. Thereafter, the annual collection of special assessments and tax levies, if collected in full, will be sufficient to provide 105% of the August 1 semiannual interest payment made in the year of collection and the subsequent February 1 principal and interest payment. FUTURE FINANCING The City does not anticipate any additional financing within the next 90 days. LITIGATION The City is not aware of any threatened or pending litigation affecting the validity of the Bonds or the City's ability to meet its financial obligations. LEGALITY The Bonds are subject to approval as to certain matters by Kennedy & Graven, Chartered, of Minneapolis, Minnesota as Bond Counsel. Bond Counsel has not participated in the preparation of this Official Statement and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined nor attempted to examine or verify, any of the financial or statistical statements, or data contained in this Official Statement and will express no opinion with respect thereto. A legal opinion in substantially the form set out as Appendix I to this Official Statement, will be delivered at closing. TAX EXEMPTION In the opinion of Bond Counsel, under existing statutes, regulations, rulings and decisions, interest on the Bonds is not includable in the "gross income" of the owners thereof for purposes of federal income taxation and is not includable in net taxable income of individuals, estates or trusts for purposes of State of Minnesota income taxation, but is subject to State of Minnesota franchise taxes measured by income that are imposed upon corporations and financial institutions. -4- Noncompliance following the issuance of the Bonds with certain requirements of the Internal Revenue Code of 1986, as amended, (the "Code ") and covenants of the bond resolution may result in the inclusion of interest on the Bonds in gross income (for federal tax purposes) and net taxable income for State of Minnesota tax purposes of the owners thereof. No provision has been made for redemption of the Bonds, or for an increase in the interest rate on the Bonds, in the event that interest on the Bonds becomes subject to United States or State of Minnesota income taxation. The Code imposes an alternative minimum tax with respect to individuals and corporations on altemative minimum taxable income. Interest on the Bonds will not be treated as a preference item in calculating alternative minimum taxable income. The Code provides, however, that for taxable years beginning after 1989, a portion of the adjusted current earnings of a corporation not otherwise included in the minimum tax base would be included for purposes of calculating the altemative minimum tax that may be imposed with respect to corporations. Adjusted current earnings includes income received that is otherwise exempt from taxation such as interest on the Bonds. The Code imposes an environmental tax with respect to corporations on the excess of a corporation's modified alternative minimum taxable income over $2,000,000. The I' environmental tax applies with respect to taxable years beginning after December 31, 1986 and before January 1, 1996. (' The Code provides that in the case of an insurance company subject to the tax imposed by Section 831 of the Code, for taxable years beginning after December 31, 1986 the amount which otherwise would be taken into account as "losses incurred" under Section 832(b)(5) shall be reduced by an amount equal to 15% of the interest on the Bonds that is received or accrued (' during the taxable year. Interest on the Bonds may be included in the income of a foreign corporation for purposes of f, the branch profits tax imposed by Section 884 of the Code. Under certain circumstances, II interest on the Bonds may be subject to the tax on "excess net passive income" of S corporations imposed by Section 1375 of the Code. I, The above is not a comprehensive list of all federal tax consequences which may arise from the receipt of interest on the Bonds. The receipt of interest on the Bonds may otherwise affect the federal or State income tax liability of the recipient based on the particular taxes to which the (' recipient is subject and the particular tax status of other items or deductions. Bond Counsel expresses no opinion regarding any such consequences. All prospective purchasers of the Bonds are advised to consult their own tax advisors as to the tax consequences of, or tax 11 considerations for, purchasing or holding the Bonds. BANK- QUALIFIED OBLIGATIONS The City will designate the Bonds as bank - qualified tax - exempt obligations for purposes of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating the ability of financial institutions to deduct from income for federal income tax purposes, interest expense that is allocable to carrying and acquiring tax - exempt obligations. II RATING Application for a rating of the Bonds has been made to Standard & Poor's Corporation ( "S &P "), 25 Broadway, New York, New York. If a rating is assigned, it will reflect only the opinion of S &P. Any explanation of the significance of the rating may be obtained only from S &P. -5- There is no assurance that the rating, if assigned, will continue for any given period of time, or that such rating will not be revised or withdrawn, if in the judgment of S &P, circumstances so warrant. A revision or withdrawal of the rating may have an adverse effect on the market price of the Bonds. In August 1995, Standard and Poor rated the City of Chanhassen "A-". In June 1995, Moody's Investor Service downgraded the City's credit rating from "Baa" to "Ba1 ". The City is not applying to Moody's for a rating on this issue. FINANCIAL ADVISOR The City has retained Springsted Incorporated, Public Finance Advisors, of St. Paul, Minnesota, as financial advisor (the "Financial Advisor ") in connection with the issuance of the Bonds. In preparing the Official Statement, the Financial Advisor has relied upon governmental officials, and other sources, who have access to relevant data to provide accurate information for the Official Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to independently verify the accuracy of such information. The Financial Advisor is not a public accounting firm and has not been engaged by the City to compile, review, examine or audit any information in the Official Statement in accordance with accounting standards. The Financial Advisor is an independent advisory firm and is not engaged in the business of underwriting, trading or distributing municipal securities or other public securities and therefore will not participate in the underwriting of the Bonds. CERTIFICATION The City has authorized the distribution of this Official Statement for use in connection with the initial sale of the Bonds. As of the date of the settlement of the Bonds, the Purchaser will be furnished with a certificate signed by the appropriate officers of the City. The certificate will state that as of the date of the Official Statement, it did not and does not as of the date of the certificate contain any untrue statement of material fact or omit to state a material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. CITY PROPERTY VALUES 1994 Indicated Market Value of Taxable Property: $874,400,317* * Calculated by dividing the county assessors' combined estimated market value of $826,308,300 by the 1994 aggregate sales ratio of 94.5% for the City as provided by the State Department of Revenue. 1994 Net Tax Capacity: $17,098,008 Personal Real Estate Property Total Carver County $15,554,078 $554,943 $16,109,021 Hennepin County 983.048 5,939 988,987 Total $16,537,126 $560,882 $17,098,008 I I 1994 Taxable Net Tax Capacity: $12,642,922 1994 Net Tax Capacity Less: Captured Tax Increment Tax Capacity Contribution to Fiscal Disparities Plus: Distribution from Fiscal Disparities 1994 Taxable Net Tax Capacity 1994 Taxable Net Tax Capacity by Class of Property Residential Homestead Commercial /Industrial, Public Utility and Personal Property" Residential Non - Homestead Agricultural Other Total $17,098,008 (4,340,440) (945,481) 830.835 $12,642,922 $9,552,758 75.6% 1,968,016 901,467 181,988 38,693 $12,642,922 Reflects adjustments for fiscal disparities and captured tax increment tax capacity. 15.6 7.1 1.4 0.3 100.0% Trend of Values Assessor's Indicated Estimated Taxable Tax I, Market Value Market Value Capacity(b) 1994 $874,400,317 $826,308,300 $12,642,922 1993 815,162,639 735,276,700 11,170, 949 ' 1992 737,667,949 690,457,200 10,594,669 1991 709,763,290 651, 562,700 9,759,042 1990 674,284,544 584,604,700 9,855,275 (a) Calculated by dividing the county assessors' combined estimated market value by the aggregate sales ratio for the City as provided by the State Department of Revenue. ' (b) See Appendix 111 for a discussion of tax capacity and other elements of Minnesota property tax law. Ten of the Largest Taxpayers ' 1994 Net Taxpayer Type of Business Tax Capacity Rosemount, Inc. Precision Instrument $ 739,156 ' McGlynn Bakeries Bakery Goods 595,351 Beddor Enterprises Printing /Direct Mail 517,485 Northern States Power Utility 355,488 ' Datasery Incorporated Computer Maintenance 260,600 PRN Music Corp. Music Recording 229,407 The Press Incorporated Printing /Direct Mail 189,484 Market Square Assoc. Shopping Mall 187,736 ' Dayton Hudson Corporation Retail Sales 187,000 Bloomberg Property Management 171.709 ' Total $3,433,416* Represents 27% of the City's 1994 taxable net tax capacity. -7- CITY INDEBTEDNESS Legal Debt Limit Legal Debt Limit (2% of Estimated Market Value) Less: Outstanding Net Debt Subject to Limit Debt Margin as of October 2, 1995 General Obligation Debt Supported by Taxes Date Original of Issue Amount Purpose 9 -1 -88 $1,200,000 Fire Station, Equipment 12 -1 -89 835,000 Corporate Purpose 11 -1 -91 1,165,000 Municipal Building Refunding Total These issues are subject to the statutory debt limit. $16,526,166 (2,400,000 ' $14,126,166 Principal Outstanding As of 10 -2 -95 $975,000 640,000 785.000 Final Maturit 11 -1 -2003 2 -1 -2004 8 -1 -2000 $2,400,000 General Obligation Debt Supported Primarily by Special Assessments Total $24,550,000 t� Principal Date Original Final Outstanding of Issue Amount Purpose Maturit As of 10 -2 -95 5 -1 -83 $4,320,000 Improvement Refunding 2 -1 -1996 $ 150,000 7 -1 -86 4,615,000 Local Improvements 1 -1 -1996 200,000 7 -1 -87 4,685,000 Local Improvements 2 -1 -2003 1,800,000 11 -1 -88 4,185,000 Local Improvements 11 -1 -2002 475,000 12 -1 -90 1,335,000 Local Improvements 2 -1 -2000 825,000 11 -1 -91 1,700,000 Local Improvements 2 -1 -2002 1,300,000 11 -1 -91 1,415,000 Improvement Refunding 1 -1 -2003 1,415,000 11 -1 -92 3,630,000 Local Improvements 2 -1 -2005 3,590,000 10 -1 -93 1,635,000 Local Improvements 2 -1 -2004 1,575,000 3 -1 -94 5,550,000 Improvement Refunding 2 -1 -2002 5,550,000 3 -1 -94 1,660,000 Improvement Refunding 11 -1 -2004 1,660,000 3 -1 -95 1,510,000 Local Improvements 2 -1 -2005 1,510,000 12 -1 -95 4,500,000 Local Improvements (this Issue) 2 -1 -2005 4.500.000 Total $24,550,000 t� I General Obligation Debt Supported by Tax Increments L Date Original of Issue of Issue Amount Purpos 7 -1 -87 3,475,000 Tax Increment 9 -1 -88 1,775,000 Taxable Tax Increment 11 -1 -88 1,015,000 Tax Increment 3 -1 -90 2,685,000 Tax Increment Refunding 11 -1 -91 1,685,000 Taxable Tax Increment 11 -1 -91 575,000 Tax Increment 11 -1 -92 1,350,000 Tax Increment 3 -1 -93 5,675,000 Taxable Tax Increment 10 -1 -93 5,630,000 Tax Increment 10 -1 -93 680,000 Tax Increment 10 -1 -93 2,015,000 Tax Increment Refunding 3 -1 -94 1,165,000 Taxable Tax Increment Refunding 3 -1 -94 525,000 Tax Increment Refunding 10 -1 -94 2,240,000 Tax Increment 3 -1 -95 3,885,000 Tax Increment Total General Obligation Debt Supported by Revenues Date Original of Issue Amount 12 -1 -90 $ 830,000 8 -1 -95 4,130, 000 8 -1 -95 705,000 Purpose Water Revenue Housing and Development Revenue Housing and Development Gross Revenue Total Final Maturit 8 -1 -1996 11 -1 -1995 11 -1 -1997 2 -1 -2003 2 -1 -2001 2 -1 -1998 2 -1 -2000 2 -1 -2001 2 -1 -2003 2 -1 -1999 8 -1 -2002 11 -1 -2003 11 -1 -2003 2 -1 -2000 2 -1 -2001 Final Maturity 2 -1 -1999 2 -1 -2010 1 -1 -2025 Principal Outstanding As of 10 -2 -95 $ 300,000 200,000 625,000 2,685,000 1,355,000 315,000 1,200, 000 5,375,000 5,160, 000 550,000 2,015,000 1,165, 000 525,000 2,240,000 3.885.000 $27,595,000 Principal Outstanding As of 10 -2 -95 $ 510,000 4,130,000 705.000 $5,345,000 * These bonds were issued by the Carver County Housing and Redevelopment Authority but are a general obligation of the City for which the City pledges its full faith and credit and power to levy direct general obligation ad valorem taxes without limits to rate or amount. Revenues derived from the operation of these housing projects are anticipated to support the repayment of these issues. Annual Debt Service Payments Including This Issue G.O. Debt Supported G.O. Debt Supported Primarily by by Taxes Principal Principal Principal Year Principal & Interest 1995 (at 10 -2) $ 75,000 $ 108,475.00 1996 260,000 404,578.75 1997 280,000 409,450.00 1998 315,000 427,980.00 1999 335,000 428,863.75 2000 380,000 453,307.50 2001 200,000 249,440.00 2002 230,000 265,690.00 2003 235,000 254,635.00 2004 90,000 93,015.00 2005 Total $2,400,000 $3,095,435.00 G.O. Debt Supported Primarily by Special Assessments Principal Principal & Interest $ 475,000 $ 543,118.75 3,165,000 4, 301, 898.55 2,630,000 3,635,383.75 2,570,000 3,949,358.75 2,230,000 3,426,762.50 2,285,000 3,340,981.25 2,140,000 3,051,290.00 2,125,000 3,283,794.50 1,360,000 2,483,682.50 615,000 1,131,268.75 455.000 817.953.75 1 $24,550,000 $29,965,493.05 * Includes the Bonds at an assumed average annual rate of 5.15 %. lM Including This Issue ' i Annual Debt Service Payments (continued) G.O. Debt Supported G.O. Debt Supported by Tax Increments by Revenues , Principal Principal Year Principal & Interest 10 $ 465,000 $ 556,121.25 Principal (Paid) & Interest (Paid) ' 1995 (at -2) 1996 2,895,000 4,342,182.92 $ 110,000 $ 407, 605.86 1997 3,530,000 4,742,573.75 120,000 434,675.00 1998 4,015,000 5,045,142.50 200,000 505,082.50 , 1999 4,540,000 5,162,027.50 215,000 508,022.50 2000 4,775,000 5,345,382.50 75,000 360,027.50 2001 4,050,000 4,382,567.50 75,000 356,596.25 2002 1,755,000 1,920,492.50 80,000 357,932.50 2003 1,570,000 1,623,980.00 85,000 358,930.00 2004 85,000 354,722.50 2005 90,000 355,280.00 ' 2006 95,000 355,468.75 2007 100,000 355,275.00 2008 105,000 354,687.50 2009 110,000 353,720.00 2010 120,000 357,220.00 2011 125,000 354,925.00 2012 135,000 356,865.00 ' 2013 140,000 353,340.00 2014 150,000 354,350.00 2015 865,000 1,035,065.00 , 2016 170,000 305,160.00 2017 180,000 304,310.00 2018 190,000 302,840.00 , 2019 205,000 305,595.00 2020 215,000 302,575.00 2021 230,000 303,780.00 2022 245,000 304,055.00 , 2023 260,000 303,400.00 2024 275,000 301,815.00 2025 295.000 304,145.00 , Total $27,595,000 $33,120,470.42 $5,345,000 $11,267,465.86 ' Summary of General Obligation Direct Debt Gross Less: Debt Net Debt Service Funds Direct Debt ' G.O. Debt Supported by Taxes $ 2,400,000 $ (871,908) $ 1,528,092 G.O. Debt Supported Primarily by Special Assessments 24,550,000 (3,161,524) 21,388,476 ' G.O. Debt Supported by Tax Increments 27,595,990 (b) 27,595,900 G.O. Debt Supported by Revenues 5,345,000 (c) 5,345,000 ' (a) Debt service funds are as of September 30, 1995 and include money to pay both principal and interest. (b) Tax increment revenues are deposited into the City's Capital Projects Fund and later transferred into ' the Tax Increment Debt Service Fund as required. (°) Paid directly from revenues of the City's enterprise fund. ' -10- Indirect Debt Total $34,348,832 (a) Excludes general obligation State -aid road bonds and tax anticipation certificates. (b) Includes outstanding $7,590,000 Jail Facility Revenue Bonds, Series 1992A issued by the Carver County HRA and payable solely from lease payments made by the County to the HRA pursuant to a Lease Agreement. The lease payments are absolute and unconditional and are unlimited tax obligations of the County. (c) Excludes $1,435,000 School Facilities Lease Revenue Bonds, Series 1993, issued by the City of Chaska and payable solely from lease payments made by the District to the City pursuant to a Lease Agreement. The lease payments are subject to annual appropriation. (d) Metropolitan Council also has outstanding $478,700,000 general obligation sanitary sewer bonds and loans which are supported by sewer system revenues. Debt Ratios Debt Applicable to 1994 Taxable G.O. Debt Tax Capacity in Cif Taxing Unit Net Tax Capacity As of 9- 2 -95 Percent Amount Hennepin County $ 966,907,816 $67,205,000 0.07% $ 47,044 Hennepin County Suburban Excludes general obligation debt supported by revenues. Regional Park District 682,858,515 15,660,000 0.09 14,094 Carver County 35,555,015 16,665,000( 33.67 5,611,106 ISD 112 (Chaska) 17,227,441 62,780,000(c) 37.60 23,605,280 ISD 272 (Eden Prairie) 56,352,341 71,795,000 1.19 854,361 ISD 276 (Minnetonka) 35,373,874 22,509,886 15.52 3,493,534 Metropolitan Council 1,907,286,072 25,470,000(d) 0.66 168,102 Metropolitan Transit ISD 112 (Chaska) 51.604 62.658 57.401 62.883 71.221 21.519 District 1,728,983,006 76,070,000 0.73 555.311 Total $34,348,832 (a) Excludes general obligation State -aid road bonds and tax anticipation certificates. (b) Includes outstanding $7,590,000 Jail Facility Revenue Bonds, Series 1992A issued by the Carver County HRA and payable solely from lease payments made by the County to the HRA pursuant to a Lease Agreement. The lease payments are absolute and unconditional and are unlimited tax obligations of the County. (c) Excludes $1,435,000 School Facilities Lease Revenue Bonds, Series 1993, issued by the City of Chaska and payable solely from lease payments made by the District to the City pursuant to a Lease Agreement. The lease payments are subject to annual appropriation. (d) Metropolitan Council also has outstanding $478,700,000 general obligation sanitary sewer bonds and loans which are supported by sewer system revenues. Debt Ratios G.O. Net G.O. Indirect & Direct Debt Net Direct Debt To 1994 Indicated Market Value 5.78% 9.71% Per Capita (14,316 -1994 Metropolitan Council Estimate) $3,528 $5,928 Excludes general obligation debt supported by revenues. ' CITY TAX RATES, LEVIES AND COLLECTIONS ' Tax Capacity Rates for a Chanhassen Resident in ISD 112 1994/95 For ' 1990/91 1991/92 1992/93 1993/94 Total Debt Only Carver County 35.230% 40.466% 42.687% 44.470% 47.033% 4.475% ' City of Chanhassen 24.100 25.384 25.453 (Urban) 25.536 25.834 5.698 ISD 112 (Chaska) 51.604 62.658 57.401 62.883 71.221 21.519 Watershed District 0.449 0.490 0.781 0.707 0.762 -- ' Special Districts* 2.966 4.059 3.602 3.714 3.998 0.765 Total 114.349% 133.057% 129.924% 137.310% 148.484% 32.445% Special Districts include Metropolitan Council, Regional Transit District and Metropolitan Mosquito Control. NOTE: Taxes are determined by multiplying the gross tax capacity by the tax capacity rate, expressed ' as a percentage. (See Appendix Ill). -11- Tax Levies and Collections FUNDS ON HAND As of September 30, 1995 Fund General Special Revenue Debt Service: G.O. Debt Supported by Taxes G.O. Debt Supported by Special Assessments G.O. Debt Supported by Tax Increment Capital Projects /Construction Fund Tax Increment Districts Enterprise Trust and Agency Internal Service Total Cash and Investments $ 2,816,076.59 503,340.44 871, 908.09 3,161,524.75 (2,783,690.44) 1, 995, 926.30 3, 860, 041.45 3,676,305.86 720,149.06 249.131.84 $15,070,713.94 . Tax increment revenues are transferred into the Tax Increment Debt Service Fund as required. CITY INVESTMENTS As of October 31, 1995 the market value of the City's investments was $12,975,092.32, compared with the cost basis of $12,816,451.16, representing an unrealized capital gain of $158,641.16 (1.2 %). The City's had identified three major investments in its investment portfolio of long -term collateralized mortgage obligations ( "CMO's ") which experienced losses and were considered high risk investments, as noted in the City's 1994 audited financial statements. In October 1995 the City sold a total of $3,789,236.34 of the CMO's which had a market value of $4,902,648.11 which is a net gain of $1,113,411.77. As of October 31, 1995 the City has a cost basis of $3,930,315.01 remaining of CMO Investment which have a market value of $4,089,996.67 which the City plans to retain until maturity. In December 1994 the City adopted comprehensive financial management policies which include specific guidelines for the investment of City funds. The City's investment policy is as follows: 1. The City will make cashflow analyses of all funds on a regular basis. Disbursement, collection and deposit of all funds will be scheduled to ensure maximum cash availability for investment. 2. When permitted by law, the City will pool cash from all funds for investment purposes. -12- J I n Collected During Collected Gross Net Collection Year As of 9 -30 -95 Levy /Collect Levv Levv Amount Percent Amount Percent 1994/95 $4,226,300 ` $3,258,062 (In Process of Collection) 1993/94 3,815,400 2,852,384 $2,812,723 98.6% $2,812,723 98.6% 1992/93 3,640,000 2,527,647 2,495,365 98.8 2,507,722 99.2 1991/92 3,240,900 2,541,433 2,453,365 96.5 2,494,276 98.1 1990/91 3,102,100 2,420,544 2,356,252 97.3 2,401,151 99.2 The net levy excludes Homestead and Agricultural Credit Aid ( "HACA'). The net levy is the basis for computing the 1994195 and 1993194 tax capacity rates. The gross levy is the basis for computing tax capacity rates in prior years. FUNDS ON HAND As of September 30, 1995 Fund General Special Revenue Debt Service: G.O. Debt Supported by Taxes G.O. Debt Supported by Special Assessments G.O. Debt Supported by Tax Increment Capital Projects /Construction Fund Tax Increment Districts Enterprise Trust and Agency Internal Service Total Cash and Investments $ 2,816,076.59 503,340.44 871, 908.09 3,161,524.75 (2,783,690.44) 1, 995, 926.30 3, 860, 041.45 3,676,305.86 720,149.06 249.131.84 $15,070,713.94 . Tax increment revenues are transferred into the Tax Increment Debt Service Fund as required. CITY INVESTMENTS As of October 31, 1995 the market value of the City's investments was $12,975,092.32, compared with the cost basis of $12,816,451.16, representing an unrealized capital gain of $158,641.16 (1.2 %). The City's had identified three major investments in its investment portfolio of long -term collateralized mortgage obligations ( "CMO's ") which experienced losses and were considered high risk investments, as noted in the City's 1994 audited financial statements. In October 1995 the City sold a total of $3,789,236.34 of the CMO's which had a market value of $4,902,648.11 which is a net gain of $1,113,411.77. As of October 31, 1995 the City has a cost basis of $3,930,315.01 remaining of CMO Investment which have a market value of $4,089,996.67 which the City plans to retain until maturity. In December 1994 the City adopted comprehensive financial management policies which include specific guidelines for the investment of City funds. The City's investment policy is as follows: 1. The City will make cashflow analyses of all funds on a regular basis. Disbursement, collection and deposit of all funds will be scheduled to ensure maximum cash availability for investment. 2. When permitted by law, the City will pool cash from all funds for investment purposes. -12- J I n GENERAL INFORMATION CONCERNING THE CITY The City of Chanhassen, located in the southwestern portion of the Twin Cities metropolitan area, is situated primarily in Carver County with a small portion within Hennepin County. The City encompasses an area of 15,117 acres or 23.6 square miles. The City's 1980 federal census population was 6,351; the 1990 census count of 11,732 represents an 85% increase ' over the 1980 census figure. In 1994 the Metropolitan Council estimated the City's population to be 14,316, a 22% increase over the 1990 census. U.S. Highways 169 and 212, as well as State Highways 5, 7, 52 and 101, provide access for commuters coming into the City from the Twin Cities metropolitan area as well as for City residents traveling to work outside the City. The upgrading of Highway 5, which enters the City from the east, and the realignment of Highway 101 were completed in 1993. Additional ' reconstruction and widening of Highway 5 to the west is expected to be done within the next three to five years and, combined with the scheduled rerouting and reconstruction of U.S. Highway 212, will provide expansion of traffic capacity, thereby easing the increased flow of ' traffic in the Chanhassen area. -13- have least 97% its funds interest. 3. The City will at of cash earning 4. The City will analyze market conditions and investment securities to determine ' what yield can be obtained and attempt to secure the best possible return on all cash investments yet preserve the invested principal. Maturities should be matched to operating cash needs and debt service requirements. No more than ' 50% of cash and investments shall have average maturities exceeding five years. 5. The City will not invest in securities which are price- sensitive and as current ' investments mature, reinvestment of these funds will only be in accordance with the City's investment policies. No investment shall be in violation of State law. 6. No more than 5% of the City's average investment portfolio shall be in any one type of investment, GNMA, Inverse Floaters, CMO's, etc. with the exception of Treasury Bills, notes or bonds, or properly collateralized Certificates of Deposit. As current investments not conforming to these policies mature, reinvestment of ' these funds will only be in accordance with the adopted financial policies. 7. Compliance with these policies shall be through the Finance Director. The Finance Director shall report to the Administrator and /or City Council at least ' quarterly the condition of the City's investment portfolio, including stated value, current market value, current yield and conformance to City policies. In addition, City administration shall establish a check and balance system with each broker ' handling City investments whereby a control number must be received and confirmed by them before any investment is purchased, sold, or traded per an ordered issue by the Finance Director. ' Each broker shall sign an affidavit stating that they have read the City's financial policies and that the investment being requested to be made by the Finance ' Director and their firm conforms to the adopted financial policies. 8. The City shall have no investments in General Accounting Standard No. 3 Risk Category Three. GENERAL INFORMATION CONCERNING THE CITY The City of Chanhassen, located in the southwestern portion of the Twin Cities metropolitan area, is situated primarily in Carver County with a small portion within Hennepin County. The City encompasses an area of 15,117 acres or 23.6 square miles. The City's 1980 federal census population was 6,351; the 1990 census count of 11,732 represents an 85% increase ' over the 1980 census figure. In 1994 the Metropolitan Council estimated the City's population to be 14,316, a 22% increase over the 1990 census. U.S. Highways 169 and 212, as well as State Highways 5, 7, 52 and 101, provide access for commuters coming into the City from the Twin Cities metropolitan area as well as for City residents traveling to work outside the City. The upgrading of Highway 5, which enters the City from the east, and the realignment of Highway 101 were completed in 1993. Additional ' reconstruction and widening of Highway 5 to the west is expected to be done within the next three to five years and, combined with the scheduled rerouting and reconstruction of U.S. Highway 212, will provide expansion of traffic capacity, thereby easing the increased flow of ' traffic in the Chanhassen area. -13- Major Employers in the City Employer Rosemount, Inc. McGlynn Bakeries United Mailing Empak The Press Datasery Bloomberg Companies Instant Web Redmond Products Ver- Sa -Til Victory Envelope ABC /Lyman Lumber M A Gedney Company Approximate Number Product/Service of Employees Aerospace /Electrical Engineering Mfg. 1,200 Baked Goods /Corporate Headquarters 450 Mailing /Pre -Sort 350 Plastics /Molding 340 Printing 350 Computer Software 355 Chanhassen Dinner Theaters 250 Commercial Printing 275 Hair Care Products 250 Contract Mach. Shop 180 Manufacturing /Print Envelopes 150 Millwork/Distribution 65 Pickles & Dressings 70 Source: City of Chanhassen Planning Department, August, 1994. Labor Force Data September 1995 September 1994 Civilian Unemployment Civilian Unemployment Labor Force Rate Labor Force Rate Carver County 31,572 2.0% 31,427 2.9% Minneapolis /St. Paul MSA 1,584,892 2.7 1,577,345 3.6 State of Minnesota 2,595,504 3.0 2,575,942 4.0 Source: Minnesota Department of Economic Security. 1995 data is preliminary. Effective Buying Income 1993 State median household EBI: $35,731. NOTE. A major reclassification of Effective Buying Income took place for the figures shown in 1988. Sales and Marketing Management excluded several income items from its calculations of the EBI, which changes reduced total income at the national level by approximately 11 %, although this figure will differ slightly from state to state. �I 1 � n -14- Effective Buying Income for Carver County Total Median Median Year 000 Household Age 1993 $943,863 $43,848* 31.0 1992 869,768 41,852 30.8 1991 804,214 40,325 30.7 1990 737,822 34,414 30.4 1989 673,325 33,158 30.6 1993 State median household EBI: $35,731. NOTE. A major reclassification of Effective Buying Income took place for the figures shown in 1988. Sales and Marketing Management excluded several income items from its calculations of the EBI, which changes reduced total income at the national level by approximately 11 %, although this figure will differ slightly from state to state. �I 1 � n -14- I Summary of Building Permits Issued by the City • The Phase II of Market Square retail center was completed in January 1995 with a valuation of $1.25 million. This complex included a 3,500 square foot fast food restaurant (Wendy's) and a 10,000 square foot office /retail complex (Edina Realty -major tenant). • With the opening of a 117,000 square foot Target Store in October 1993, the City has seen the completion of a 3,500 square foot Boston Market Restaurant in September of 1995 and a 4,500 square foot Perkins Family Restaurant in November of 1995. Taco Bell Restaurant is scheduled to take the last lot in this development and will start construction in May of 1996. The estimated total valuation for these three new restaurants is $1,300,000. i The Chanhassen Business Center is a new industrial park that opened in early 1995 and has experienced strong growth. This includes the opening of the National Weather Service, a 22,000 square foot facility, in January. This facility will assist in the detection and forecasting of weather in sections of Minnesota, Wisconsin, North Dakota and South Dakota. ' The Chanhassen Business Center currently has four office /manufacturing facilities under construction, Power Systems (25,000 square feet), Paulstarr (25,000 square feet), Control Products (30,000 square feet), and Highland ' Development (10,000 square feet). All of these facilities are schedule for completion in January of 1996. The total valuation for the four facilities is $3,150,000. Two other facilities, Technical Industrial Sales (40,000 square feet office /manufacturing) and the Federal Postal Service (23,000 square feet regional mail sorting facility) are scheduled to start construction of May of 1996 and have a valuation of $2,200,000. -15- Commercial /Industrial Year Permits Value Residential Permits Unita Value Total Permits Value 1995(9-30) 93 $6,503,100 531 349 $39,752,000 1,071 $52,983,400 1994 58 16,431,800 882 391 62,723,500 940 79,155,300 1993 45 5,221,000 844 267 44,553,500 889 49,774,500 1992 54 5,737,400 678 229 34,468,400 732 40,205,800 1991 30 4,056,000 593 293 26,619,900 623 30,675,900 ' 1990 8 9,350,000 491 162 25,619,200 604 42,804,600 1989 8 31,985,000 314 387 35,663,800 794 73,833,081 1988 18 7,821,800 372 416 38,428,900 673 48,074,881 1987 6 1,951,000 301 337 31,192, 500 604 38,101, 850 1986 7 8,429,000 270 326 25,339,000 484 35,809,900 1985 5 3,330,000 214 265 19,264,000 464 24,208,035 Includes $11,711,000 for the new Rosemount Inc. facility and $9,000,000 for the McGlynn Bakeries facility. Proposed Development Recent and Chanhassen continues to experience strong residential and commercial /industrial growth, with major projects currently underway in the Chanhassen Lakes Business Park and -in downtown Chanhassen, as well as continued building activity in a number of large residential developments in the City. Projects recently proposed, under construction or recently completed are the following: - • The Phase II of Market Square retail center was completed in January 1995 with a valuation of $1.25 million. This complex included a 3,500 square foot fast food restaurant (Wendy's) and a 10,000 square foot office /retail complex (Edina Realty -major tenant). • With the opening of a 117,000 square foot Target Store in October 1993, the City has seen the completion of a 3,500 square foot Boston Market Restaurant in September of 1995 and a 4,500 square foot Perkins Family Restaurant in November of 1995. Taco Bell Restaurant is scheduled to take the last lot in this development and will start construction in May of 1996. The estimated total valuation for these three new restaurants is $1,300,000. i The Chanhassen Business Center is a new industrial park that opened in early 1995 and has experienced strong growth. This includes the opening of the National Weather Service, a 22,000 square foot facility, in January. This facility will assist in the detection and forecasting of weather in sections of Minnesota, Wisconsin, North Dakota and South Dakota. ' The Chanhassen Business Center currently has four office /manufacturing facilities under construction, Power Systems (25,000 square feet), Paulstarr (25,000 square feet), Control Products (30,000 square feet), and Highland ' Development (10,000 square feet). All of these facilities are schedule for completion in January of 1996. The total valuation for the four facilities is $3,150,000. Two other facilities, Technical Industrial Sales (40,000 square feet office /manufacturing) and the Federal Postal Service (23,000 square feet regional mail sorting facility) are scheduled to start construction of May of 1996 and have a valuation of $2,200,000. -15- CSM Corporation is a large Twin Cities development company that has received City approval for the construction of a 128,000 square foot speculation office /manufacturing facility in the Park One Industrial Park. The facility will have an approximate valuation of $4,500,000 and is scheduled to start construction in May 1996. Other facilities completed throughout downtown in 1995 was the opening of Century Bank (6,000 square feet/$500,000 valuation), Richfield Bank and Trust and office building (10,000 square feet/$1,000,000), Kinko Copies (10,000 square feet/$750,000), and a 36 room addition to the Country Suites Hotel ($1,000,000). Schedule for construction in 1996 is a 10,000 square foot/$500,000 valuation expansion to the Medical Art Facility, an 8,000 square foot/$400,000 Tires Plus, and a 5,900 square foot/$600,000 Applebees Bar and Grill Restaurant. All facilities are schedule to start construction in May. Byerly's opened an up -scale 60,000 square foot grocery store in the fall of 1994. Byerly's is located in the recently completed West Village Heights Center, a strip mall with an additional 50,000 square feet of office /retail space. The total valuation of both projects is approximately $5,000,000. Independent School District 112 has constructed a new $9.5 million elementary school in southwestern Chanhassen. The City has cooperated with the school district in providing funding for inclusion of a community recreation center. The school and recreation center opened in the fall of 1995. The City is designing a $6.5 million senior citizens housing complex of approximately 65 units. The senior citizen project is a cooperative project between the City and Carver County. Education Three independent school districts serve the City: Independent School District 112 (Chaska), Independent School District 276 (Minnetonka) and a small portion of Independent School District 272 (Eden Prairie). ISD 112 has an estimated 1995/96 enrollment of approximately 5,500 students. ISD 276 has a 1995/96 enrollment of approximately 7,311 students. GOVERNMENTAL ORGANIZATION AND SERVICES The City of Chanhassen was organized as a municipality in 1967 and became a statutory city in 1974. The City's governing body is the City Council, comprised of the Mayor and four Council members. The Mayor serves a two -year term of office; Council members are elected at large to serve overlapping four -year terms. The present Mayor and Council Members are: Expiration of Term Donald J. Chmiel Mayor December 31, 1996 Steven E. Berquist Council Member December 31, 1998 Colleen C. Dockendorf Council Member December 31, 1996 Michael C. Mason Council Member December 31, 1998 Mark O. Senn Council Member December 31, 1996 The daily management and administration of the City is under the direction of the City Manager, Mr. Donald W. Ashworth. Mr. Ashworth has served in this capacity for the City since 1976. The City Finance Director, Ms. Pam Snell, administers the financial affairs of the City, reporting directly to the City Manager. -16- 0 0 C! L i 0 ' The City has 57 full -time employees and 34 part-time employees serving in various departments. The City contracts with Carver County for sheriff and police services. The Chanhassen Fire Department is a 40- member volunteer force with two fully equipped fire stations. ' The City provides water, sanitary sewer and storm sewer service to all its developed areas. The water system includes five wells with an approximate pumping capacity of 4,400 gallons per minute and 3.8 million gallons of storage capacity. Average daily water demand is approximately 3 million gallons. Although the City maintains over 80 miles of its own lateral and trunk sewer lines, the core facilities and the treatment and disposal systems are owned and operated by the Metropolitan Council Office of Wastewater Services ( "OWS "), an agency of the Environmental Council Metropolitan Council. Wastewater treatment and disposal is also the responsibility of OWS. The City is billed for its usage of OWS facilities. In May 1991 the Metropolitan Council approved inclusion of approximately 2,600 acres of City land within the Metropolitan Urban Service Area which is leading to the development of the land with assurance of being provided with sanitary sewer service. Various developments of much of this property is currently underway. 1 Employee Pensions All full -time and certain part-time employees of the City of Chanhassen are covered by defined benefit pension plans administered by the Public Employees Retirement Association of Minnesota (PERA). PERA administers the Public Employees Retirement Fund and the Public Employees Police and Fire Fund which are cost - sharing multiple - employer public employee retirement systems. Public Employees Retirement Fund members belong to either the Coordinated Fund or the Basic Fund. Coordinated members are covered by Social Security and Basic members are not. All police officers, fire fighters and peace officers who qualify for membership by statute are covered by the Police and Fire Fund. The PERA plans provide ' pension benefits, deferred annuity, and death and disability benefits. Benefits are established by State statute. The City's contribution for employees covered by PERA plans for the year ended December 31, 1994 was $103,881. ' The City levies taxes on behalf of a single - employer public employee retirement plan operated by the Chanhassen Fire Relief Association for volunteer firefighters of the City. The City levies property taxes at the direction of and for the benefit of the Association and passes through State aids allocated to the plan, all in accordance with enabling State statutes. Total contributions to the Association's plan in 1994 amounted to $37,080. i I -17- 6 1 General Fund Adopted Budget ' The following is a summary of the City's 1994 and 1995 Adopted Budgets: , 1995 1994 Revenue Taxes ' General Property $1,933,878 $1,623,976 Homestead Credit 968,238 963,016 Delinquent/Other 75,100 64,700 Licenses 58,300 53,300 Permits 829,900 549,800 Intergovernmental State 16,000 15,100 Other 35,000 35,000 Charges for services Administrative Reimbursement 175,000 175,000 Other 182,100 156,000 Fines and Forfeits 23,500 36,000 Interest/Other Revenue 124.500 155.500 Total Revenue $4,421,516 $3,827,392 Expenditures Personnel Services $2,406,905 $2,036,340 Materials and Supplies 416,787 366,420 Contractual Services Professional Services 405,093 336,656 Police Contract 434,707 -418,844 Other 1,011,965 845,570 Capital Outlay Other 61,730 32,545 Miscellaneous Expense 36,115 80,665 Miscellaneous Disbursements 35� 1,786 (323.907 Total Expenditures $4,421,516 $3,793,133 ' Revenues over (under) Expenditures $ -0- $ 34.259 Regional Government - Metropolitan Council , The Metropolitan Council was created in 1967 by the State Legislature (Laws of Minnesota 1967, Chapter 896, and Minnesota Statutes, Chapter 473) as a governmental unit responsible for the coordination of planning and development of the seven - county Minneapolis -Saint Paul Metropolitan Area (the "Area "). Since its inception, the Council has gained national recognition for its innovative programs. The mission of the Metropolitan Council is to plan and coordinate metropolitan development cooperatively with citizens and communities in order to make the region a better place to live. The Council analyzes information, listens to the public and actively seeks consensus in the development and implementation of public policy on regional issues. The Metropolitan Council is comprised of 17 members who are appointed by the governor with the advice and consent of the State Senate. Sixteen members are appointed to four -year terms from districts of equal population size within the Seven - County Metropolitan Area. The Reorganization Act passed in the 1994 Session of the State Legislature provides that terms are to end with the term of the governor, and that members serve at the pleasure of the governor. The Council chair, the 17th member, represents the Region as a whole and serves at the pleasure of the governor. The Council is accountable, in law, to the State Legislature. -18- ' APPENDIX I PROPOSED FORM OF LEGAL OPINION KENNEDY & GRAVEN CHARTERED 470 Pillsbury Center, Minneapolis, Minnesota 55402 t $4,500,000 Telephone (612) 337 -9300 General Obligation Improvement Facsimile (612) 337 -9310 Bonds, Series 1995C City of Chanhassen Carver and Hennepin Counties, Minnesota We have acted as bond counsel in connection with the issuance by the City of Chanhassen, Carver and Hennepin Counties, Minnesota, of its General Obligation Improvement Bonds, Series 1995C, originally dated as of December 1, 1995, in the total principal amount of $4,500,000. For the purpose of rendering this opinion we have examined certified copies of certain proceedings taken by the City in the authorization, sale and issuance of the Bonds, including the form of the Bonds, and ' certain other proceedings and documents furnished by the City. From our examination of such proceedings and other documents, assuming the genuineness of the signatures thereon and the accuracy of the facts stated therein and continuing ' compliance by the City with its covenants to comply with the Internal Revenue Code of 1986, as amended, and based upon laws, regulations, rulings and decisions in effect on the date hereof, it is our opinion that: 1. The Bonds are in due form, have been duly executed and delivered, and are valid and binding general obligations of the City, enforceable in accordance with their terms, except as such enforcement may be limited by Minnesota or United ' States laws relating to bankruptcy, reorganization, moratorium or creditors' rights. 2. The principal of and interest on the Bonds are payable from special assessments levied or to be levied on property specially benefitted by local improvements and ad valorem taxes for the City's share of the cost of the improvements, but if necessary for the payment thereof additional ad valorem taxes are required by law to be levied on all taxable property in the City, which taxes are not subject to any limitation as to rate or amount. 3. Interest on the Bonds is not includable in gross income of the recipient ' for federal income tax purposes or in taxable net income for Minnesota income tax purposes, and is not a preference item for purposes of the computation of the federal alternative minimum tax, or the computation of the Minnesota alternative minimum tax imposed on individuals, trusts and estates, but such interest is includable in the computation of "adjusted current earnings," used in the calculation of federal alternative minimum taxable income of corporations, and is subject to Minnesota franchise taxes on corporations (including financial institutions) measured by income and the alternative minimum tax base. We express no opinion regarding other federal or state tax consequences arising with respect to the Bonds. The Bonds are not arbitrage bonds and are not private activity bonds. ' We have not been asked and have not undertaken to review the accuracy, completeness or sufficiency of the Official Statement or other offering material ' relating to the Bonds, and accordingly we express no opinion with respect thereto. Dated at Minneapolis, Minnesota, ' DJK96779 CE135 -31 I -1 f fl (This page was left blank intentionally.) 1 APPENDIX II CONTINUING DISCLOSURE CERTIFICATE 1� r This Continuing Disclosure Certificate ( the "Disclosure Certificate ") is executed and delivered by the City of Chanhassen, Minnesota (the "Issuer ") in connection with the issuance of $4,500,000 General Obligation Improvement Bonds, Series 1995C (the "Securities ") . The Securities are being issued pursuant to Authorizing Resolutions adopted by the City Council of the Issuer on November 13, 1995 and Award Resolutions adopted by the City Council of the Issuer on November 27, 1995 (collectively, the "Resolutions ") and delivered to the Purchaser(s) on the date hereof. Pursuant to the Resolutions, the Issuer has covenanted and agreed to provide continuing disclosure of certain financial information and operating data and timely notices of the occurrence of certain events. In addition, the Issuer hereby covenants and agrees as follows: Section 1. Purpose of the Disclosure Certificate This Disclosure Certificate is being executed and delivered by the Issuer for the benefit of the Holders of the Securities in order to assist the Participating Underwriters within the meaning of the ' Rule (defined herein) in complying with SEC Rule 15c2 -12(b) (5) . This Disclosure Certificate, together with the Resolutions, constitutes the written Undertaking required by the Rule. Section 2. Definitions In addition to the defined terms set forth in the Resolutions, which apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this Section, the following capitalized terms shall have the following meanings: "Annual Report" means any annual report provided by the Issuer pursuant to, and as described in, Sections 3 and 4 of this Disclosure Certificate. "Audited Financial Statements" means the Issuer's annual financial statements, prepared in accordance with generally accepted accounting principles ("GAAP ") for Governmental Units as Prescribed by the Governmental Accounting Standards Board ( "GASB ") . "Fiscal Year" means the fiscal year of the Issuer. "Final Official Statement" means the deemed final official statement dated Novemher 1 , 1995 plus the addendum which constitutes the final official statement delivered in connection with the Securities, which is available from the MSRB. "Holder" means the person in whose name a security is registered or a beneficial owner of such 'a security. "Issuer" means the City of Chanhassen, Minnesota which is the obligated person with respect to the Securities. "Material Event" means any of the events listed in Section 5(a) of this Disclosure Certificate. DJK96782 C9135 -31 II -1 "MSRB" means the Municipal Securities Rulemaking Board located at 1150 18th Street, N. W. , Suite 400, Washington, D. C. 20036. , "NRMSIR" means any nationally recognized municipal securities information repository as recognized from time to time by the SEC for purposes of the Rule. "Participating Underwriter" means any of the original underwriter (s) of the ' Securities (including the Purchaser(s)) required to comply with the Rule in connection with the offering of the Securities. "Repository" means each NRMSIR and each SID, if any. "Rule" means SEC Rule 15c2 -12(b) (5) promulgated by the SEC under the Securities Exchange Act of 1934, as the same may be amended from time to time, and including written interpretations thereof by the SEC. "SEC" means Securities and Exchange Commission. "SID" means any public or private repository or entity designated by the State ' of Minnesota as a state information depository for the purpose of the Rule. As of the date of this Certificate, there is no SID. Section 3. Provision of Annual Financial Information and Audited Financial Statements . (a) The Issuer shall, not later than 12 months after the end of the Fiscal Year commencing with the year that ends December 31, 1995, provide each Repository with an Annual Report which is consistent with the requirements of Section 4 of this Disclosure Certificate. The Annual ' Report may be submitted as a single document or as separate documents comprising a package, and may cross - reference other information as provided in Section 4 of this Disclosure Certificate; provided that the Audited Financial Statements of the Issuer may be submitted separately from the balance of the Annual Report and will be submitted as soon as available. (b) If the Issuer is unable or fails to provide to the Repositories an Annual Report by the date required in subsection (a) , the Issuer shall send a notice of that fact to the NRMSIRs, the MSRB and SID. (c) The Issuer shall determine each year prior to the date for providing the Annual Report the name and address of each NRMSIR and the SID, if any. Section 4. Content of Annual Reports The Issuer's Annual Report shall contain or incorporate by reference the following sections of the Final Official ' Statement: ' 1. City Property Values. 2. City Indebtedness. , 3. City Tax Rates, Levies and Collections. DJX96782 CH135 -31 W ` (b) Whenever the Issuer obtains knowledge of the occurrence of a Material Event, the Issuer shall as soon as possible determine under applicable legal standards if such event would constitute material information for ' Holders of Securities, provided that any event under subsection (a) (8) (9) or (11) will always be deemed to be material. DJK96782 CH135 -31 II -3 4 . -Funds on Hand. 5. General Information Concerning the City. ' 6. Governmental Organization and Services. 7. Annual Financial Statements. 8. City Investments Any or all of the items listed above may be incorporated by reference from other documents, including official statements of debt issues of the Issuer or related public entities, which have been submitted to each of the Repositories or the SEC. If the document incorporated by reference is a final official statement, it must also be available from the MSRB . The Issuer shall clearly identify each such other document so incorporated by reference. Section 5. Reporting of Material Events ' (a) This Section 5 shall govern the giving of notices of the occurrence of any of the following events if material with respect to the Securities ' 1. Principal and interest payment delinquencies; 2. Non - payment related defaults; 1 3. Unscheduled draws on debt service reserves reflecting financial difficulties; ' 4. Unscheduled draws on credit enhancements reflecting financial difficulties; 5. Substitution of credit or liquidity providers, or their failure to perform; 6. Adverse tax opinions or events affecting the tax - exempt status of the Securities; 7. Modification to rights of Holders of the Securities; 8. Securities calls; 9. Defeasances; 10. Release, substitution or sale of property securing repayment of the Securities; and 1 11. Rating changes . ` (b) Whenever the Issuer obtains knowledge of the occurrence of a Material Event, the Issuer shall as soon as possible determine under applicable legal standards if such event would constitute material information for ' Holders of Securities, provided that any event under subsection (a) (8) (9) or (11) will always be deemed to be material. DJK96782 CH135 -31 II -3 (c) -If the issuer determines that knowledge of the occurrence of a Material Event would be material, the Issuer shall promptly file a notice of such occurrence with either all NRMSIRs or with the MSRB and with any SID. Notwithstanding the foregoing, notice of Material Events described in subsections (a) (8) and (9) need not be given under this subsection any earlier than the notice (if any) of the underlying event is given to ' Holders of affected Securities pursuant to the Resolutions. (d) Unless otherwise required by law and subject to technical and economic feasibility, the Issuer shall employ such methods of information transmission as shall be requested or recommended by the designated recipients of the Issuer's information. ' Section 6. Termination of Reporting Obligation The Issuer's obligations under the Resolutions and this Disclosure Certificate shall terminate upon the defeasance, prior redemption or payment in full of all the Securities. Section 7. ALrent. The Issuer may, from time to time, appoint or engage a dissemination agent to assist it in carrying out its obligations under the Resolutions and this Disclosure Certificate, and may discharge any such agent, with or without appointing a successor dissemination agent. Section 8. Amendment; Waiver Notwithstanding any other provision of the ' Resolutions or this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this Disclosure Certificate may be waived, if such amendment or waiver is supported by an opinion of nationally recognized bond counsel to the effect that such amendment or waiver would not, if and of itself, cause the undertakings to violate the Rule. The provisions of the Resolutions constituting the Undertaking and this Disclosure Certificate, or any provision hereof, shall be null and void in the event that the Issuer delivers to each then existing NRMSIR and the SID, if any, an opinion of nationally recognized bond counsel to ,the •effect that those portions of the Rule which require the Resolutions and this Certificate are invalid, have been repealed retroactively or otherwise do not apply to the Securities. The provisions of the Resolutions constituting the Undertaking and this Disclosure Certificate may be amended without the consent of the Holders of the Securities, but only upon the delivery by the Issuer to each then existing NRMSIR and the SID, if any, of the proposed amendment and an opinion of nationally recognized bond , counsel to the effect that such amendment, and giving effect thereto, will not adversely affect the compliance of the Resolutions and this Disclosure Certificate and by the Issuer with the Rule. Section 9. Additional Information Nothing in this Disclosure Certificate shall be deemed to prevent the Issuer from disseminating any other information, using the means of dissemination set forth in this Disclosure Certificate or any other means of communication, or including any other information in any Annual Report or notice of occurrence of a Material Event, in addition to that which is required by this ' Disclosure Certificate. If the Issuer chooses to include any information in any Annual Report or notice of occurrence of a Material Event in addition to that which is specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this Certificate to update such information or include it in any future Annual Report or notice of occurrence of a Material Event. DJK96782 CE135 -31 11-4 Section 10. Default In the event of a failure of the Issuer to comply with any ' provision of this Disclosure Certificate any Holder of the Securities may take such actions as may be necessary and appropriate, including seeking mandate or specific performance by court order, to cause the Issuer to comply with its obligations under the Resolutions and this Disclosure Certificate. A default under this Disclosure Certificate shall not be deemed an event of default with respect to the Securities and the sole remedy under this Disclosure Certificate in the event of any failure of the Issuer to comply with this Disclosure Certificate shall be an action to compel ' performance. Section 11. Beneficiaries This Disclosure Certificate shall inure solely to the ' benefit of the Issuer, the Participating Underwriters and Holders from time to time of the Securities, and shall create no rights in any other person or entity. IN WITNESS WHEREOF, we have executed this Certificate in our official I capacities effective the day of , 1995. DJK96782 CH135 -31 City Manager II -5 1 1 (This page was left blank intentionally.) I r i ' SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND APPENDIX III MINNESOTA REAL PROPERTY VALUATION Following is a summary of certain statutory provisions effective through 1994 relative to tax levy procedures, tax payment and credit procedures, and the mechanics of real property valuation. ' The summary does not purport to be inclusive of all such provisions or of the specific provisions discussed, and is qualified by reference to the complete text of applicable statutes, rules and regulations of the State of Minnesota in reference thereto. This summary reflects changes to Minnesota property tax laws enacted by the State Legislature during the 1994 Regular Session. Property Valuations (Chapter 273, Minnesota Statutes) ' Assessor's Estimated Market Value Each parcel of real property subject to taxation must, by statute, be appraised at least once every four years as of January 2 of the year of appraisal. With certain exceptions, all property ' is valued at its market value which is the value the assessor determines to be the price he believes the property to be fairly worth, and which is referred to as the "Estimated Market Value." Limitation of Market Value Increases Effective for assessment years 1993 through 1998, the amount of increase in market value for all property classified as agricultural homestead and non - homestead, residential homestead and non - homestead, or non - commercial seasonable recreational residential, which is entered by the assessor in the current assessment year, may not exceed the greater of (i) 10% of the preceding year's market value or (ii) 1/3 of the difference between the current assessment and the preceding assessment. Indicated Market Value Because the Estimated Market Value as determined by an assessor may not represent the price of real property in the marketplace, the "Indicated Market Value" is generally regarded as more representative of full value. The Indicated Market Value is determined by dividing the Estimated Market Value of a given year by the same year's sales ratio determined by the State Department of Revenue. The sales ratio represents the overall relationship between the Estimated Market Value of property within the taxing unit and actual selling price. Net Tax Capacity The Net Tax Capacity is the value upon which net taxes are levied, extended and collected. The Net Tax Capacity is computed by applying the class rate percentages specific to each type ' of property classification against the Estimated Market Value. Class rate percentages vary depending on the type of property as shown on the last page of this Appendix Il. The formulas and class rates for converting Estimated Market Value to Net Tax Capacity represent a basic •' element of the State's property tax relief system and are subject to annual revisions by the State Legislature. Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity rate, 1 expressed as a percentage. Property Tax Payments and Delinquencies ' (Chapters 276, 279 -282 and 549, Minnesota Statutes) Ad valorem property taxes levied by local governments in Minnesota are extended and collected by the various counties within the State. Each taxing jurisdiction is required to certify the annual tax levy to the county auditor within five (5) working days after December 20 of the year preceding the collection year. A listing of property taxes due is prepared by the county auditor and turned over to the county treasurer on or before the first business day in March. III -1 The county treasurer is responsible for collecting all property taxes within the county. Real estate and personal property tax statements are mailed out by March 31. One -half (1/2) of the taxes on real property is due on or before May 15. The remainder is due on or before October 15. Real property taxes not paid by their due date are assessed a penalty which, depending on the type of property, increases from 2% to 4% on the day after the due date. In the case of the first installment of real property taxes due May 15, the penalty increases to 4% or 8% on June 1. Thereafter, an additional 1% penalty shall accrue each month through October 1 of the collection year for unpaid real property taxes. In the case of the second installment of real property taxes due October 15, the penalty increases to 6% or 8% on November 1 and increases again to 8% or 12% on December 1. Personal property taxes remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the unpaid tax. However, personal property owned by a tax - exempt entity, but which is treated as taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties as real property. On the first business day of January of the year following collection all delinquencies are subject to an additional 2% penalty, and those delinquencies outstanding as of February 15 are filed for a tax lien judgment with the district court. By March 20 the clerk of court files a publication of legal action and a mailing of notice of action to delinquent parties. Those property interests not responding to this notice have judgment entered for the amount of the delinquency and associated penalties. The amount of the judgment is subject to a variable interest determined annually by the Department of Revenue, and equal to the adjusted prime rate charged by banks, but in no event is the rate less than 10% or more than 14 %. Property owners subject to a tax lien judgment generally have five years (5) in the case of all property located outside of cities or in the case of residential homestead, agricultural homestead and seasonal residential recreational property located within cities or three (3) years with respect to other types of property to redeem the property. After expiration of the redemption period, unredeemed properties are declared tax forfeit with title held in trust by the State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof, then sells those properties not claimed for a public purpose at auction. The net proceeds of the sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, with any remaining balance in most cases being divided on the following basis: county - 40 %; town or city - 20 %; and school district - 40 %. Property Tax Credits (Chapter 273, Minnesota Statutes) In addition to adjusting the taxable value for various property types, primary elements of Minnesota's property tax relief system are: property tax levy reduction aids; the circuit breaker credit, which relates property taxes to income and provides relief on a sliding income scale; and targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application by the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid, equalization aid, homestead and agricultural credit aid (HACA) and disparity reduction aid. Levy Limitations Historically, the ability of local governments in Minnesota to levy property taxes was controlled by various statutory limitations. These limitations have expired for taxes payable in 1993 and future years, but may be reinstated in the future. Under prior law the limitations generally did not affect debt service levies. For county governments, cities of 2,500 population or more, and smaller cities and towns that receive taconite municipal aid, taxes could be levied outside the overall levy limitation for, among others, bonded indebtedness and certificates of indebtedness, unfunded accrued pension liability, social service programs and the residual income maintenance program for which the county share of costs has not been taken over by the State. III -2 Debt Limitations All Minnesota municipalities (counties, cities, towns and school districts) are subject to statutory "net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is defined as the amount remaining after deducting from gross debt the amount of current revenues which are applicable within the current fiscal year to the payment of any debt and the aggregation of the principal of the following: - 1. Obligations issued for improvements which are payable wholly or partially from the proceeds of special assessments levied upon benefited property. 2. Warrants or orders having no definite or fixed maturity. 3. Obligations payable wholly from the income from revenue producing conveniences. 4. Obligations issued to create or maintain a permanent improvement revolving fund. 5. Obligations issued for the acquisition and betterment of public waterworks and public lighting, heating or power systems, and any combination thereof, or for any other public ' convenience from which revenue is or may be derived. 6. Certain debt service loans and capital loans made to school districts. 7. Certain obligations to repay loans. 8. Obligations specifically excluded under the provisions of law authorizing their issuance. ' 9. Debt service funds for the payment of principal and interest on obligations other than those described above. Levies for General Obligation Debt (Sections 475.61 and 475.74, Minnesota Statutes) Any municipality which issues general obligation debt must, at the time of issuance, certify ' levies to the county auditor of the county(ies) within which the municipality is situated. Such levies shall be in an amount that if collected in full will, together with estimates of other revenues pledged for payment of the obligations, produce at least five percent in excess of the amount needed to pay principal and interest when due. Notwithstanding any other limitations upon the ability of a taxing unit to levy taxes, its ability to levy taxes for a deficiency in prior levies for payment of general obligation indebtedness is without limitation as to rate or amount. i Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) ' "Fiscal Disparities Law" The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as "Fiscal Disparities," was first implemented for taxes payable in 1975. Forty percent of the ., increase in commercial - industrial (including public utility and railroad) net tax capacity valuation since 1971 in each assessment district in the Minneapolis /St. Paul seven - county metropolitan area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, excluding the City of New Prague, and Washington Counties) is contributed to an area -wide tax base. A distribution index, based on the factors of population and real property market value per capita, is employed in determining what proportion of the net tax capacity value in the area - wide tax base shall be distributed back to each assessment district. 111 -3 General Classifications Residential Homestead STATUTORY FORMULAE CONVERSION OF ESTIMATED MARKET VALUE (EMV) TO NET TAX CAPACITY FOR MAJOR PROPERTY CLASSIFICATIONS Net Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax Capacity Levy Year 1990 Levy Year 1991 L evy Year 1992 Levy Year 1993 Levy Year 1994 First $68,000 of EMV at 1.00% Next $42,000 of EMV at 2.00% EMV in excess of $110,000 at 3.00% First $72,000 of EMV at 1.00% Next $43,000 of EMV at 2.00% EMV in excess of $115,000 at 2.5% Residential Non - Homestead 4 or more units 3.60% Agricultural Homestead First $68,000 EMV of house, garage and 1 acre at 1.00% 3.50% First $72,000 EMV of house, garage and 1 acre at 1.00% First $72,000 of EMV at 1.00% First $72,000 of EMV at 1.00% First $72,000 of EMV at 1.00% EMV in excess of $72,000 EMV in excess of $72,000 EMV in excess of $72,000 at 2.00% at 2.00% at 2.00% 3.40% 3.40% 3.40% First $72,000 EMV of house, garage and 1 acre at 1.00% First $72,000 EMV of house, garage and 1 acre at 1.00% Excess to 320 acres at 0.45% Excess to 320 acres at 0.45% Excess to 320 acres at 0.45% EMV in excess of $72,000 of Excess over 320 acres at 0.45% Excess over 320 acres at 0.45% Excess over 320 acres at 0.45% house, garage and 1 acre at First $72,000 EMV of house, garage and 1 acre at 1.00% EMV in excess of $72,000 of house, garage and 1 acre at Next $42,000 EMV at 2.00% Next $43,000 EMV at 2.00% Next $43,000 EMV at 2.00% 2.00% 2.00% Excess to 320 acres at 0.45% Excess to 320 acres at 0.45% Excess to 320 acres at 0.45% Remaining Property: Remaining Property: Excess over 320 acres at 0.45% Excess over 320 acres at 0.45% Excess over 320 acres at 0.45% First $115,000 of EMV on First $115,000 of EMV on EMV in excess of $110,000 EMV in excess of $115,000 EMV in excess of $115,000 first 320 acres at 0.45% first 320 acres at 0.45% at 3.00% at 2.5% at 2.00% EMV in excess of $115,000 on EMV in excess of $115,000 on first Excess to 320 acres at 1.30% Excess to 320 acres at 1.30% Excess to 320 acres at 1.30% first 320 acres at 1.00% 320 acres at 1.00% Excess over 320 acres at 1.60% Excess over 320 acres at 1.60% Excess over 320 acres at 1.60% EMV in excess of $115,000 over EMV in excess of $115,000 over 320 acres at 1.50% 320 acres at 1.50% Agricultural Non - Homestead EMV of house, garage and EMV of house, garage and EMV of house, garage and EMV of house, garage and EMV of house, garage and 1 acre at 3.00% 1 acre at 2.80% 1 acre at 2.50% 1 acre at 2.30% 1 acre at 2.30% EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings at 1.60% at 1.60% at 1.60% at 1.50% at 1.50% Commercial - Industrial First $100,000 of EMV at 3.20% First $100,000 of EMV at 3.10% First $100,000 of EMV at 3.00% First $100,000 of EMV at 3.00% First $100,000 of EMV at 3.00% EMV in excess of $100,000 EMV in excess of $100,000 EMV in excess of $100,000 EMV in excess of $100,000 EMV in excess of $100,000 at 4.95% at 4.75% at 4.70% at 4.60% at 4.60% Seasonal /Recreational 2.30% Residential Vacant Land 4.95% Non - Commercial - 2.20% Non - Commercial Non - Commercial First $72,000 of EMV at 2.00% First $72,000 of EMV at 2.00% EMV in excess of $72,000 EMV in excess of $72,000 at 2.50% at 2.50% Commercial - 2.30% Commercial - 2.30% Commercial - 2.30% 4.75% N/A N/A (All vacant land is reclassified (All vacant land is reclassified to highest and best use to highest and best use pursuant to local zoning pursuant to local zoning ordinance) ordinance) Non - Commercial First $72,000 of EMV at 2.00% EMV in excess of $72,000 at 2.50% Commercial - 2.30% N/A (All vacant land is reclassified to highest and best use pursuant to local zoning ordinance) M M APPENDIX IV ANNUAL FINANCIAL STATEMENTS it The City is audited annually by an independent certified public accounting firm. Data on the following pages was extracted from the annual audits for the fiscal years ended December 31, 1994, 1993 and 1992. For all years shown, financial statements for governmental funds were prepared on the modified accrual basis of accounting; the accrual basis if followed for proprietary funds. The reader should be aware that the complete audits may contain additional information which may interpret, explain or modify the data presented herein. The City's comprehensive annual financial report for the year ended December 31, 1992 has been awarded the Certificate of Achievement for Excellence in Financial Reporting by the Government Finance Officers Association of the United States and Canada (GFOA). The Certificate of Achievement is the highest form of recognition for excellence in state and local government financial reporting. ' In order to be awarded a Certificate of Achievement, a government unit must publish an easily readable and efficiently organized comprehensive annual financial report, whose contents confirm to program standards. Such CAFR must satisfy both generally accepted accounting ' principles and applicable legal requirements. A Certificate of Achievement is valid for a period of one year only. r IV -1 N CITY OF CHANHASSEN, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31,1994 Flduclary Account Qrouos _ Proprietary L , _ — axed amen Totals e ue Service t u terra rust an Fixed Long brm General Reven Prge Enterprise Service Agency Assets Debt ASSETS AND OTHER DEBITS ASSETS: Cash and cash equivalents and investments (Notes I and 2) Investments for deferred compensation plans (Notes 2 and 8) Deposits with escrow agent (Notes 2 and 4) Accrued interest receivable Accounts receivable Taxes receivable (Note 1): Delinquent Due from county Tax increment - taxes receivable (Note 1): Delinquent Due from county Due from other funds (Note 13) Interfund receivable (Note 13) Special assessments receivable Note receivable (Note 15) Due from other governmental units Fixed essets, net (Notes 1 and 3) Investment in propary Other assets OTHER DEBITS: Amount available in Debt Service Fund Amount to be provided for retirement of general long -term debt Toth wets and other credits LIABILITIES, EQUITY, AND OTHER CREDITS LIABBJMS: Interfund payable (Note 13) Due to other governmental units Accounts payable Salaries payable Refunds and arbitrage payable Due to other furls (Note 13) Compensated absences payable (Notes 1 and 3) Deposits Contracts payable Deferred compensation payable (Note 8) Bonds payable (Notes I and 4) Deferred revenue (Notes I and 6) Toth liabilities EQUITY AND OTHER CREDITS (Notes 1, 9, 10, and 12): Contributed capital Investment in general fixed assets Retained earnings . unreserved Furl balances (deficit): Reserved Unreserved: Designated Undesignated Toth equity and other credits S 1.455,744 S 539,978 $ 6.314,277 f 2,396,947 $ 3,017,476 $ 762,009 f 671,432 f 15.157,863 f 19,888,841 801,695 801,695 695.718 14,539,920 14,539,920 6,353.468 40.898 40.898 87,729 7,565 43.094 18,373 652,077 82.596 803,705 778,882 145,230 1 45.230 144,279 153,395 153.395 167.419 662,235 662.235 645.408 237,832 237,832 131.691 428,524 428,524 470.821 4,817,167 40,898 4.858.065 1.602,904 9,625.377 16,533 10,750 9,652,660 8.121,848 1,139,542 88 1,228,533 1,255,718 7,658 722,062 11,643,648 1,329,808 $ 7,414,068 729,720 20,387,524 239,336 19,810,666 749,390 749.390 777,074 5,621 119.586 125.207 54,486 t 1.769592 t 4R7l172 a 1n d70474 a In n163H S 15443 Sal = S 20,862,836 40223.913 s 7dld NOr s 6t nR6.749 S 20,862,836 40.223.913 12.751.215 41.348.405 S 115 17' 9111 131789145 2n9 L817 $ 4,817,167 $ 40,898 $ 4,858.065 S 1,602,904 1,188.667 $ 140,162 1,328,829 202.837 S 93.905 $ 5,515 427,765 75,185 S 1,351 442,786 1,980 1,046.507 79,651 1,004.702 69.736 60,231 1,571 6,274 1.456 9,595 26 3,931 232,600 2,449 428,524 428.324 470.821 257,054 53.281 310,102 310,335 314,202 252.030 281.005 4,100 985,645 21,524 1,007,169 752.596 801.695 801,695 695,718 610,000 S 61,086,749 61,696.749 54,799,620 143.230 558,869 7,086 $ 9.616.738 9,616,738 2.409.944 9,841,018 119.586 1,029,359 1,351 339.535 2,365.520 61,086,749 12.631.033 84,506,690 10.366.122 70,730,691 11.998.488 1,229,905 13,228.393 11,235.060 $ 7,414.068 7.414,068 9.205,893 2,415,690 860.561 3,276.251 2.499,911 20,862,836 20,862,836 12,751,215 1.210,723 575,986 6,059,988 (5.884.694 538.904 8,385,601 (5.884.6% 11.149.500 (2.246.W 1.210.723 575.28 20.862.836 t 10.479 %74 t 175.294 14.414.178 S 15443137 S 2.090.466 2!101 A17 t 538.904 7.414.068 — 29134A24 f 7-41409 S 61DR6_749 S 41.282.455 Ia1.7R9Ja5 44,595.21 t 114 aM 9(18 Inn16.712 SR t 1.769592 S M = = = M = = M CITY OF CHANHASSEN, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31, 1993 Oevamxnen •1 F •� Tvtsas Fiduciary _ Account Oro�a General Species Revenue Debt Service Capital Project Proprietary Fund - Tvoaa Inramal Fund T end ftt and General GerterN Fixed Long-term Totab (Mamaendurtt Orsivl ASSETS AND OTHER DEBITS Enterprise Service Agency Assets Os 1883 1992 ASSETS: Cash and cash equivalents and Investments • ' -' Investments for deferred compensation $ 1,434,052 $ 469,145 f 6,345,874 S 5,035,991 S 2,605,581 S 806,170 f 3,192,028 f 19,888,841 S 15,420.942 plans" ' Deposits with escrow agent 6,353,468 695, 718 695,718 573,591 Accrued Interest receivable 6,385,4689 4,338,071 Accounts receivable Taxes receivable' 14,693 42,401 20,932 28,028 647,311 87,729 25,517 778,882 721.135 Delinquent 144,279 Due from county 139,816 3,791 22,864 149,279 165,348 Tax Increment - taxes receivable, 948 167,119 34,218 Delinquent 645,048 Due from county 131.691 862,418 Due from other funds 131 ,1 68,332 Interfund receivable I,SS3,018 4709,8 170,821 443,061 Special assessments receivable 8,095,983 13,048 12,817 1,602,904 5,262,133 Note receivable Due from other governmental units 37,993 1,076ASS 201,343 179,563 8,121.848 1,255,718 6,935,053 312,630 Fixed assets' Investment In property 9,521,019 1,083,752 S 9,205,895 239,336 19,810,666 811,042 17,742,396 Other assets 54,486 777,074 777,074 777,074 OTHER DEBITS: 54,486 Amount available In Debt Service Fund Amount to be provided for retirement S 12,751,215 12,7SI,21S 9,649,196 of general long-term debt 1.770.833 f 515.337 f 20.839.121 8.684.682 41.348.405 41.348,405 32.375.424 LIABILITIES, EQUITY, AND OTHER CREDITS 12.841.214 S 1.889.922 S 5.479.284 S 92(LS NOS ; 54.099.620 f 115.3)5.908 f 9656 4�S LIABILTIIFS: payable S 1,553,018 S Accou Accounts payable S 77,081 S 1,987 395,955 f 32,240 $ 8,498 49,886 488,941 f 1,602,904 f 5,262,133 Refunds Refunds and arbitrage payable 52,012 1,944 1158 , 6,176 230.656 9,184 1, 206 1, 69,736 895,772 55,480 Due soother (ands : 232,600 108,373 Due to other governmental units 14,567 55,370 132,900 470, 821 470.821 443,064 Compensated absences payable 208,972 43,058 202,837 251,213 Deposits Contracts payable 21'000 736.797 260,005 2S2,030 281,005 212,342 192,352 Deterred compensation payable 8,160 7,639 752,596 662,427 8onds 700,000 695 ,718 695,718 573,591 Deterred revenue 144.279 f 8.087.906 1.788.193 54.486 f 54,099,620 54,799,620 92,799,620 Total liabilities 498,855 3,145 8,08),906 4,787,165 980,028 16,137 291.258 2,257,835 54,099,620 10.366.122 _ 70,730,691 9.263.803 60,723,470 EQUITY AND OTHER CREDITS ' Contributed capital Investment In general fixed assess 9,862,614 1,372,446 1, 205 , 8 0 95 1 6,682,362 Retained earnings ings- unreserved 1,998,572 501,339 S 9,205,895 9 Fund balances (deficit): 2,499,911 , Reserved 12,751,215 Unreserved: 12,7SI,21S 9,649,1% Designated Undeilgnated 1,271,978 512,192 6,143,881 (2.246.3641 3,221,449 11,149,500 11,826,791 Total equity Totalcqulty and other credits 1.271.978 1.770.83. 512.192 t 7 1 15 f 20.839.12] 3.897.SI7 S� 11.861.186 L S 1.873.785 1.889.922 3.221.449 5.419.28 ; 9. 0 89 9.205.895 S 54.099.620 (2246.364) .1 44.595.217 S 115.325.908 3 (5.591.638 35.833.065 96.556.535 CO) .�1 CITY OF CHANHASSEN, MINNESOTA COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS DECEMBER 31, 1992 Fiduciary Oovarmm�tsl Fund Tvws Frontless" Fund Troes Fund Types MteI General Totals Sgclel Dsbt Capital Intarnel Trust and Fixed Long-term IMemer im General Revenue Service FroNet EntarpAss Service AgeneY Assets Debt _ 1992 ASSETS AND OTHER DEBITS ASSETS: Cash and cash equivalents, and Investments; 3 1,432.123 3 385,105 S 5,280,151 3 7,429,204 S 2,417,012 S 540,515 S 3,203,265 3 20,683,375 3 20,501,261 investments lot deferred compensation plans Urposlb with escrow agent 4,364,168 573,591 S73,S91 4,364,168 468,653 1,325,681 ArrnrcA Interest receivable 38,071 i 38,071 87,927 Accounts Ile Taxes receivablelvable . Taxes 4,175 38,697 5,200 663,384 (72,908) 638,548 364,651 Delinquent 165,148 161,318 191,960 Due from County Tax Inclement - taxes receivable 71,218 31,218 16,458 Delinquent 862418 862418 795,236 Due from County 68,772 270,363 from other Dur funds 447 064 63 062 4 6,933,051 S eclat assessor nts receivable 6,914,26S 788 8,)02,049 Note receivable Due from other governmental unit 29,820 111,142 781,222 168,188 312,630 151,974 Fixed asset - 10,061493 998,541 S 6,682,762 811,042 17,742,396 452,836 17,306,099 Investment In property 777,074 777,074 OTHER DEBITS: Amount available in Debt Service Fund Amount to be provided for retirement S 9,649.196 9,649,196 10,546,481 of general long-term debt 32,121424 32.375.121 yp,2 L__1,665= 3 423.802 S 16.578.581 3 9.291.606 S 13.137.889 S 1.539.056 3 .1.130.715 S 6.682.362 S 96,173,918 S 95.7� LIABILITIES, EQUITY, AND OTHER CREDITS LIABILITIES: Cash overdraft , Accounts payable 3 56,466 3 108 S 3 2,602 5,220,640 193,494 S 53,035 3 3,142 S 41,793 504,258 3 5,262,433 .3 4,430,171 Salaries payable 44,177 275 4,651 6,417 813,185 55,180 293,312 41,016 Refunds payable Due to other funds 343 106,338 1,672 108,373 165,597 Uue to other governmental units 254,213 443,064 443,064 254,213 324,786 Compensated eblenm payable 172,706 39,636 212,742 202,783 De p se a sits Contracts payable 662,427 192,352 192,352 57,724 Deferred compensation payable 573,591 662,427 573,597 117,933 168,637 Notes payable Deferr ed erred revenue Drttd revenue - 165.348 6.926.786 1.619.317 775,000 277 476 274.876 3 42,024,620 42,799,620 42,662,6 Total liabilities 4)9,000 163 6,929,388 7,806,887 1,107,141 3,142 2,029,934 -- 4 - 2,0 - 2 - 4 - ,670 - 9.263.803 60,640,88.1 0 4173 58, 5, EQUITY AND OTHER CREDM Contributed capital Investment In general fixed assets 10,472,358 1,535,914 11,968,272 10,841,477 RelalnedeRminpp- unreserved 1,298,082 3 6,682,362 6,682,362 6,378,384 Fund balances (deiklt): I,Z98,082 !,002,755 Reserved unreserved: 9,649,196 , 9,649,191 10,516,181 Designated Undesignaled 1,226,684 423,119 7,076,357 15.591.618 3,100,411 11,826,791 11,276,520 Tonal equity and other credits 1 .226.684 1.481.71 9 15.591.638 1 3 L665.684 16.578.584 3 9191.606 S 1�579.OK 7��, S � YaliiurYfal � r= M M M == M M M M M. . . � ■. CITY OF CHANHASSEN, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED DECEMBER 31,1994 Fiduciary Governmental Fund Types Fund Tyne Total* Special Debt capital Expendable (Memorandum Only) General Revenue Service Protect Trust 1994 1993 Z 6 REVENUES: General property taxes (Note 1) Tax increment Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeits Interest on investments Rents and other Total revenues EXPENDITURES: Current: General government Public safety Public works Parks and recreation Community development Interfund interest Contractual services and other Capital outlay Debt service: Principal Interest and paying agent fees Special assessment payments Valuation writedown of investment Other Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out Bond proceeds Total other financing (uses) sources (DEFICIENCY) EXCESS OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES FUND BALANCES AT BEGINNING OF YEAR EQUITY TRANSFERS (Note 1) FUND BALANCES AT END OF YEAR $ 2,003,127 $ 122,008 $ 697,000 (2,682,545) (9,332,792) $ 2,822,135 $ 2,726,999 398,240 4,487,690 $ 5,499,412 (695,850) 5,499,412 5,153,195 (5,183,746) 2,414,583 3,055 11.079.884 2,417,638 2,332,146 977,333 (354.600) 11.042.184 563,702 1,541,035 799,450 997,909 8,242 6,173,349 61,769 512,192 12,751,215 575 9R6 S 20_R62 R36 ,1 1,067,920 2,000,209 366,566 3,612 175.294 S 247,917 $ 50 618,145 859,098 28,745 28,745 23,224 82,575 30,310 741,094 324,383 1,178,362 2,281,406 53.200 43.094 52.402 499.584 613.726 1.262.006 635.914 4,509,455 207,266 3,905,079 7,199,822 613,776 16,435,398 16,811,641 699,568 137,382 370,883 448,789 1,656,622 1,471,276 1,312,456 1,312,456 1,182,192 1,149,368 1,149,368 1,100,434 349,826 349,826 271,713 109,458 109,458 107,848 77,747 173,279 251,026 323,292 204,500 2,457,714 2,662,214 1,588,949 49,734 6,090 4,563,781 18,729 4,638,334 10,872,407 4,152,871 4,152,871 3,560,000 3,625,424 3,625,424 2,683,201 1,325,151 1,325,151 1,269,700 1,143,569 2,828,803 3,972,372 625,488 1111111111 #)< t 6 839,045 63,794 (4,155,463) (3,397,623) (2,682,545) (9,332,792) (9,153,707) 4,089,450 398,240 4,487,690 4,653,292 (870,300) (695,850) (2,959,240) (4,525,390) (5,183,746) 8.873.484 2.206.400 11.079.884 15.508.056 (870.300) 12.267.084 (354.600) 11.042.184 14.977.602 (31,255) 63,794 8,111,621 (3,752,223) (2.682,545) 1,709,392 6,173,349 1,271,978 (30.000 S 1-210723 1 512,192 12,751,215 575 9R6 S 20_R62 R36 ,1 3,897,517 30.000 3,221,449 21,654,351 538904 S 23,16-1-743 15,884,349 (53.8931 S 2 351 175.294 S CITY OF CHANHASSEN, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED DECEMBER 31, 1993 REVENUES: General property taxes f . Tax increment Special assessments Licenses and permits Intergovernmental Charges for services Fines and forfeits Interest on investments Valuation writedown of investments Rents and other Total revenues EXPENDITURES: Current: General government Public safety Public works Parks and recreation Community development lnterfund interest Contractual services and other Capital outlay Debt service: Principal Interest and paying agent fees Total expenditures EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out Bond proceeds Total other financing sources (uses) EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES FUND BALANCES AT BEGINNING OF YEAR EQUITY TRANSFERS FUND BALANCES AT END OF YEAR C 734,276 116,334 1,177, 306 385,150 Fiduciary 1,079,793 1,100,434 Governmental Fund Tvoes 271,713 Fund Tyne Totals 107,848 108,477 Special Debt Capital Expendable (Memorandum Only) General Revenue Service Project Trust 1993 1992 $ 2,123,071 S 84,713 $ 519,215 10,836,968 $ 2,726,999 $ 2,510,251 1,269,700 S 5,153,195 908.848 5,153,195 6,280,070 6.306.689 15.249.419 2,332,146 109,853 (2,465,832) 2,332,146 2,177,120 632,571 779,778 37,586 182,786 166,879 1,000,059 (21,000) 799,450 2,000,209 739,094 1,002,057 400,148 8,013 5.971.198 450,887 $ 50 859,098 845,993 23,224 23,224 36,760 237,168 55,581 750,878 912,247 325,532 2,281,406 2,435,115 (12,168) (395,562) (217,758) (625,488) 64.037 4,247,829 42.401 228,294 55.832 3,840,857 222.654 7,510,359 250.990 358,814 635.914 16,186,153 2.250.699 18,277,159 734,276 116,334 1,177, 306 385,150 1,182,192 1,079,793 1,100,434 1,100,434 271,713 218,865 271,713 107,848 108,477 107,848 596,032 1,588,949 887,952 2,260 9,638 313,654 4,829,700 53,850 1,535,099 31,072 2,107 237.776 10,836,968 24.745.620 121,038 3,560,000 1,269,700 2.683.201 908.848 3.427.535 118.441 6.306.689 15.249.419 820,294 109,853 (2,465,832) (7,739,060) 3,858,292 795,000 (775,000) (21,000) 2.112.906 (4,038,292) 13.395.150 (775.000) (21.000) 5.971.198 10.151.858 235,516 1,471,276 1,177, 306 1,182,192 1,079,793 1,100,434 1,011,369 271,713 218,865 107,848 108,477 323,292 596,032 1,588,949 887,952 2,260 10,872,407 10,087,265 4,829,700 6,579,863 3.592.049 2.998.698 237.776 25.339.860 24.745.620 121,038 (9,153,707) (6,468,461) 4,653,292 6,302,990 (4,834,292) (6,302,990) 15.508.056 4.940.354 15.327.056 4.940.354 45,294 88,853' 3,505,366 2,412,798 121,038 6,173,349 (1,528,107) 1,226,684 423,339 9,649,196 1,484,719 3,100,411 15,884,349 19,224,962 (403.347) (403.347) (1.812.506) S 1.271.978 S 512.192 S 12.751.215 S 3.897.517 f 3.221.449 S 21.654.351 L__15,884,349 CITY OF CHANHASSEN, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - ALL GOVERNMENTAL FUND TYPES AND EXPENDABLE TRUST FUND YEAR ENDED DECEMBER 31, 1992 Fiduciary Fund Type Totals Governmental Fund Types Expendable (Memorandum Only) Special Debt Capital Trust 1992 1991 General Revenue Service Project RF.VYNUES: general property faxes'. S 1,846,980 S 10S,674 $ 557,597 $ 2,510,251 $ 2,420,896 Tax increment $ 6,280,070 6,280,070 5,461,397 Special assessments 1,937,746 239,374 2,177,120 2,015,963 Licenses and p>ennits 549,159 189,935 739,094 553,629 Intergovernmental 617,161 74,053 175,303 135,540 1,W2,057 754,910 Charges for services 394,909 450,984 S 100 845,993 408,357 Fines and forfeits 36,760 36,760 28,410 Interest on investments 175,333 200,337 728,423 694,376 636,646 2,435,115 1,485,626 Items and other 31,419 40.307 34.792 142.497 2.001.684 2.250.699 391.588 Total revenues 3,651,721 871,355 3,433,861 7,681,792 2,638,430 18,277,159 13,520,776 I ENDITURFS: Current: General government OW, 176 248,788 233,741 85,601 1,177,306 1,100,583 Public safety 1,079,793 Z 1,079,793 995,594 Public works 1,011,369 1,011,369 860,501 Park and recreation . 218,865 218,865 176,464 Community development 108,477 108,477 91,994 Interfund interest 143,513 452,519. 596,032 4(10,662 Contractual services and other 44,861 843,091 887,952 1,124,731 Calrltal outlay 32,575 363,447 9,690,875 368 10,087,265 3,484,932 Debt service: Principal 5,043,000 1,536,863 6,579,863 4,042,330 Interest and paying agent fees 2.457.((59 541,039 2.998.698 2.696.683 Total expenditures 3.000,255 612.235 7.689.033 13.298.128 85.969 24.745.620 14.974.474 EXCESS (DEFICIENCY) OF REVENUES OVER EXPENDITURES 591,466 259,120 (4,255,172) (5,616,336) 2,552,461 (6,468,461) (1,453,698) OTHER FINANCING SOURCES (USES): Operating transfers in 1,99() 3,021,000 3,280,000 6,302,990 5,586,323 Operating transfers out (580 ,000) (1,990) (5,721,000) (6,302,990) (5,586,323) Bond proceeds 435.253 4.505.101 4.940.354 6.641.970 Total other financing sources (uses) (580.00) ) 1.990 3.454.263 2.064.101 4.940.354 6.641.970 EXCESS ( DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTIIER LISIiS 11,466 261,110 (800,909) (3,552,235) 2,552,461 (1,528,107) 5,188,272 FUND BALANCES AT BEGINNING OF YEAR 1,215,218 1,299,703 10,546,484 5,615,607 547,950 19,224,962 14,036,690 FQt IITY TRANSFER (1.137.4741 (96.3791 (578.6531 (1.812.506 ) FUND BALANCES AT END OF YEAR $ 1.226.684 1 423.339 S 9.649.196 S 1.484.719 S 3.100.411 S 15.884.349 S 19.224.962 i v CITY OF CHANHASSEN, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - G ENERAL AND SPECIAL REVENUE FUND TYPES REVENUES: General property taxes (Note 1) Licenses and permits Intergovernmental Charges for services Fines and forfeits Interest on investments Other C Total revenues 00 EXPENDITURES: Current: General government Public safety Public works Parks and recreation Community development Capital outlay Total expenditures EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING (USES) SOURCES - Operating transfers out EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES FUND BALANCES AT BEGINNING OF YEAR EQUITY TRANSFERS (Note 1) FUND BALANCES AT END OF YEAR Totals (Memorandum Onlvl General Special Revenue 1994 '1993 Budget Actual Variance Budget Actual Variance Budget Actual Variance Actual $ 1,768,500 $ 2,003,127 $ 234,627 S 122,000 $ 122,008 $ 8 $ 1,890,500 S 2,125,135 $ 234,635 $ 2,207,784 711,600 977,333 265,733 711,600 977,333 265,733 632,571 1,013,516 997,909 (15,607) 5,000 8,242 3,242 1,018,516 1,006,151 (12,365) 817,364 345,300 366,566 21,266 3,612 3,612 345,300 370,178 24,878 408,161 26,500 28,745 2,245 26,500 28,745 2,245 23,224 105,000 82,575 (22,425) 8.700 21.000 40.000 30,310 43.094 9,310 3.094 126,000 84.500 112,885 96.294 (13,115) 11.794 292,749 94.270 44.500 4,014,916 51200 4,509,455 494,539 188,000 207,266 19,266 4,202,916 4,716,721 513,805 4,476,123 826,734 699,568 127,166 141,360 137,382 3,978 968,094 836,950 131,144 850,610 1,321,965 1,312,456 9,509 1,321,965 1,312,456 9,509 1,182,192 1,171,898 1,149,368 22,530 1,171,898 1,149,368 22,530 1,100,434 351,800 349,826 1,974 351,800 349,826 1,974 271,713 110,069 34.565 109,458 49.734 611 (15.1691 7.000 148.360 6.090 143.472 910 4.888 110,069 41.565 3.965.391 109,458 55.824 3.813.882 611 (14.259) 151.509 107,848 33.179 3.545.976 3.817.031 197,885 3.670.410 839,045 146.621 641,160 39,640 63,794 24,154 (80.000) (870.300) (790.300) 930,147 (796.000) (80.000) (870.300) (790.300) I 39.640 63,794 S 24.154 S 157.525 32,539 S (124.996 134,147 S 117185 (31,255) S (149.140 512,192 1,784,170 1,650,023 1,271,978 (30.000) S 1710-723 S 575.996 (30.000) S 1.786.709 S 1784170 CITY OF CHANHASSEN, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES YEAR ENDED DECEMBER 31, 1993 REVENUES: General property taxes Ucenses and permits Intergovernmental Charges for services Fines and forfeits Interest on investments Valuation writedown of Investments Other Total revenues EXPENDITURES: Current: General government Public safety Public works Parks and recreation Community development Capital outlay Total expenditures EXCESS OF REVENUES OVER EXPENDITURES OTHER FINANCING SOURCES (USES): Operating transfers in Operating transfers out Total other financing uses EXCESS (DEFICIENCY) OF REVENUES AND OTHER SOURCES OVER EXPENDITURES AND OTHER USES FUND BALANCES AT BEGINNING OF YEAR EQUITY TRANSFERS FUND BALANCES AT END OF YEAR C (O Total* IMemaandum Onlvl General Spacial Revenue 1993 1992 Budget Actual Variance Budget Actual Variance Budget Actual Variance Actual f 1,573,100 f 2,123,071 f 549,971 f 85,194 f 84,713 f (481) f 1,658,294 f 2,207,784 S 549,490 f 1,952,654 550,050 632,571 82,521 550,050 632571 82,521 549,159 959,870 779,778 (180,092) 37,506 37,586 80 997,376 817,364 (180,012) 691,214 370,600 400,148 29,S48 8,013 8,013 370,600 408,161 37,561 845,893 25,500 23,224 (2,276) 25,500 23,224 (2,276) 36,760 225,000 237,168 12,168 42,000 55,581 13,581 267,000 292,749 25,749 375,670 (12,168) (12,168) (12,168) (12,168) 27.900 64.037 36.137 36.200 42.401 6.201 64.100 106.438 42.338 71.726 3,732,020 4,247,829 515,809 200,900 228,294 27,394 3,932,920 4,476,123 543,203 4,523,076 731,310 734,276 (2,966) 118,820 116,334 2,486 850,130 850,610 (480) 857,964 1,194,316 1,182,192 12,124 1,194,316 1,182,192 12,124 1,079,793 1,136,249 1,100,434 3SAIS 1,136,249 1,100,434 35,815 1,011,369 294,SIS 271,713 22,802 294,515 271,713 22,802 218,865 115,040 33.420 107,848 31.072 7,192 2.348 5.000 2,107 2.893 115,040 38.420 107,848 33.179 7,192 5241 108,477 396.022 3.SO4.850 3.427.S35 77.315 123.820 118.441 5,379 3.628.670 3.545.976 82.694 3.672.490 227,170 820,294 593,124 77,080 109,853 32,773 304,250 930,147 625,897 850,586 1,990 (280.000) (775.000) (49510001 (21.0001 (21.0001 (280.000) (796.0001 (516.0001 (580.0001 (280.0001 (775.0001 (49S.0001 (21.0001 (21.0001 (280.000) (796.0001 (516.000) (S78.01 01 L--L52" 45,294 98.124 S 77.080 88,853 11.773 f 24.250 134,147 f 109.897 272,576 1,226,684 423,339 1,650,023 2,514,921 (1.137.4741 f 1.271.978 f 512.192 f 1.784.170 S 1.650.023 C J O CITY OF CHANHASSEN, MINNESOTA COMBINED STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL AND SPECIAL REVENUE FUND TYPES YEAR ENDED DECEMBER 31, 1992 Totete General Special Revenue IMemorandum Onlvl 1992 1991 Budget Actual Variance Budget Actual Variance Budget Actual Variance Actual ItI.VI'.NI II:S: (;cocral paI(rerly taxes S 1,800.'X)4 3 1,846,980 S 46,076 $ 270,696 $ 105,674 S (165,022) S 2,071,600 $ 1,952,654 S (118,946) S 1,972,201 Sla•clal aw- ssments 113,104 I7leusesaodpermits 499,050 549,159 50,109 499,050 549,159 50,109 438,225 lotergoverumemal 609,396 617,161 7,765 69,054 74,053 4,999 678,450 691,214 12,764 609,871 Charges for services 272,940 394,909 121,969 190,((70 450,984 200,984 462,940 845,893 382,953 389,057 Fines and forfeits 33,600 36,700 3,160 33,600 36,760 3.1(d) 28,410 In(s•resioninvestments 80,(XX) 175,333 95,333 145,200 200,337 55,137 225,200 375,670 150,470 140,131 Other Is: 31.419 15.91 35.600 40,307 4.707 51.100 71.726 20.626 48.948 Total revenue 3,311,390 3,651,721 340,331 710,550 871,355 10'805 4,021,940 4,523,076 501,136 3,739,947 FXIII'.NI71' FUR FS: Cturent: , Ovopral government 637,376 609,176 28,2(X) 299,6(70 248.788 50,812 936,976 857,964 79,012 846,462 1 safety 1.101 016 1,079,793 21,223 1,101,016 1,079,793 21,223 995,594 Public works 1,049,370 1,011,369 38,001 1,049,370 1,011,369 38,(101 860,501 Park and recreatloo 217.085 218,965 (1,780) 217,085 218,865 (1,780) 176,464 Communitydevelopment 113,580 108,477 5,103 113,580 108,477 5,103 91,994 Capital outlay 3G .3 32.575 3.775 383.620 363,447 20.173 419.970 396.022 23.948 212.880 Iolal exIienditures ;1.154.777 3.060.255 94.522 683.220 612.235 70.985 3.837.997 3.672.490 165.507 3.183.895 EXCESS Of Itl.vf.NOFS OVER EXPENDITURES 156,613 591,466 434,853 27,330 259,120 231,790 183,943 850,586 666,643 556,052 0'111FR FINANCING SOURCES (USES): Operating transfers In 1,990 1,990 1,990 1,990 OlMralingtraosfersout (80,(X)0) (5801070) (500,000) (80,000) (580,000) (5(70.0(X)) 1109 Ilood proceeds (payments) (165.050) 165.050 (165.050) 165.050 158.000 Total other financing sources (uses) (80.(X)0 1580.(X)0 1500.000 1165.0 1.9n) 167.040 (245.050 (578.010) (332.960 49.(X)0 EXCESS (I)ITICIF.NCY) OF REVENUES AND OTHER SOl IRCES OVER EXIIENDITURFS AND OTHER USES S 76.613 11,466 S (65.1471 (137.720 261,110 S 398.830 ; 161.107) 272,576 333 83 605,052 FUND IIAIANCES AT RI :GINNING OF YEAR 1,215,218 1,299,703 2,514,921 1.909.869 fAll11 'Y TRANSFER (1.137.474 (1.137.474 Fl IND IIAIANCES AT END OF YEAR f 1.226.684 1 423.339 S 1.650.023 S 2.514.921 We holes to financial slatemems. m ' Mr. Don Ashworth t City Manager City of Chanhassen 690 Coulter Drive ' Chanhassen, MN 55317 RE: Official Depository ' Dear Mr. Ashworth: ' The Chanhassen Bank is pleased to submit the completed "Request for Proposal:" that relates to the designation of the official depository for the years 1996 -1998. The Bank is anxious to continue the longstanding relationship that it has enjoyed with the City. We t trust that you will find our proposal thorough and very competitive. I look forward to meeting with members of your Evaluation Committee to answer any ' questions that they may have. Thank you for your time and consideration of our proposal. Sincerely, ' e ' Kevin P. McShane President & CEO ' KPM/mp Enclosures ' 600 West 8th Street. Chanhassen, 7 C a hassen, MN 55317 m (612) 937 -BANK CITY OF CHANHASSEN ,. PROPOSAL FORM FOR CITY BANKING SERVICES r Date: November 17, 1995 City of Chanhassen 690 Coulter Drive Chanhassen, MN 55317 We submit for your consideration the following proposal for providing banking services for the City of Chanhassen's checking account and provide the general information as requested herein. A. We will establish a checking account in the name of the City of Chanhassen, Tax I.D. #41- 0885331. B. We will provide the following services: (check those that apply) x Deposit tickets x Acceptance and clearance of all deposited items X Monthly statements of accounts x Activity of analysis reports x Wire transfers in and out x Safekeeping x Direct deposit of payroll (ACH) 1. Home office and type of institution: Name: Th e Chanhassen Bank Address: 600 West 78th Street City. Chanhassen State' MN 937 -BANK! Zip Code: 55317 Telephone( -2265 Charter: June 10, 1919 Incorporation: City of Chanhassen, Minnesota Proposal Form City Banking Services 2. Location of facility in the City of Chanhassen (if different from previous address): Same 3. List normal hours of business: Lobby: M - F 9 a.m. - 8 p.m. Drive -Up: M - F 7 a.m. - 8 p.m Sat 9 a.m. - 3 p.m. Sat 9 a.m. - 3 p.m. 4. Member of Federal Reserve? Yes x No Bank Number: 0919 1458 7 ABA No: Same Magnetic Encoding No. Same 5. Describe wire transfer procedures for federal funds /same day transfers: Outgoing and incoming wires (See attached) 6. Describe procedures for direct deposit of payroll services, including processing and scheduling requirements (city has bi- weekly Friday payday schedule): (See attached) 0) City of Chanhassen, Minnesota Proposal Form ' City Banking Services 5. Describe wire transfer procedures for federal funds /same day transfers: ' Outgoing Wires A wire transfer is initiated by an authorized representative of the City forwarding a written request to the Bank identifying the amount to be transferred, the account to be debited and details of the transfer as follows: • Identify the receiving bank • Identify the receiving bank's ABA/routing number • Identify the beneficiary of the wire • Identify the beneficiary's account number As noted above, the letter is to be signed by an individual previously authorized to execute such transfers. Any wire transfer requests received before 2 p.m. weekdays will be processed on that business day. All wires are sent electronically on the "Fedline" System. All wires are processed under dual control by bank personnel. Incoming Wires All incoming wire transfers that are received before 3 p.m. will be credited on the same business day. Funds are considered collected and available immediately. A call is made to City personnel notifying them of the credit to the account and a receipt is mailed the day of processing. 6. Describe procedures for direct deposit of payroll services, including processing and scheduling requirements (City has bi- weekly Friday payday schedule.): The following timetables and procedures have been established to ensure that City of Chanhassen employees will have their earnings credited on the bi- weekly Friday payday schedule that has been established by the City. • Payroll input is delivered to the bank on Thursday by 10 a.m. of each payroll week. • Payroll is entered by an authorized bank employee. • Dual control has been established to have a second bank employee verify all information. • Items are entered manually on the "Fedline" System from the input schedule provided by the City. • The payroll credit will then post to the employees' account on Friday. C .. I ,o-4 �aa r ✓v `4�# �2�k , � - swu, � una�uaurmx.Y.0 City of Chanhassen, Minnesota Proposal Form City Banking Services 6. (Cont'd.): Two other options are available. The first would be for the City to acquire software to electronically transmit the information to the bank or, secondly, to create a computer disk and deliver it to the bank for processing. City of Chanhassen, Minnesota Proposal Form City Banking Services 7. Facilities for safekeeping of securities, etc: Held directly? Yes x No (if no, list where held) Securities are held at First Bank, N.A., Norwest Bank, N.A., and a small portion at the Federal Reserve Bank of Minneapolis. In each case, they are held in safekeeping for the City of Chanhassen. See Exhibit A for a sample safekeeping receipt. ' 8. Collateral Requirements: A city depository is required to provide collateral sufficient to ' secure the account balance in accordance with Minnesota Statutes 118.0 1, such collateral being subject to acceptance by the city. Performance bonds are not an acceptable substitute for collateral. The range of collateralization is expected to be $2 -$6 million. ' Describe the type of collateral proposed to be assigned and list the maximum amount available to the city. Also list any charges for the assignment and maintenance of the collateral. ' The securities that are pledged as collateral for the City of Chanhassen include U.S. Treasury Notes and U.S. Agencies. The amount available for , pledging as of November 10, 1995 is $15.8 million. There are NO CHARGES ' for assigning or maintaining collateral. Sep Exhibit B for a sample , pledge letter. 9. What are your total gross loans and commitments to Chanhassen residents/businesses by I line, i.e: Real Estate: $2,989,031 ' Installment Loans: $1,731,434 Commercial: $ 3,106,170 , 3 L City of Chanhassen, Minnesota ' Proposal Form City Banking Services ' 10. Interest Earnings: Establishment of a sweep account so as to generate interest earnings for the city as calculated below is required (see "Definitions" which describe how each term below is to be calculated). An alternate method of paying interest earnings may be attached if the proposer can demonstrate that the yield will be higher without consuming additional city staff time. ' Example: Average Daily Balance $900,000 ' Average Float 50,000 Net $850,000 Reserve 90,000 ' Amount to be Invested $760,000 Federal Rate 5.41% Earnings $3,426.33 ' We agree to pay interest earnings to the city and will show such on monthly statements for that month. -- Exception: If the "average daily balance" falls below $ we will pay interest earnings at the current rate in effect for our ' commercial accounts. 1 X An alternate method of paying interest on the city's account is attached and labeled "Exhibit C" which conforms to the requirements above. Differences in "Definitions" are shown and such shall be considered as an official part of our RFP. Net Earnings: Estimated Earnings @ $3,426.33 x 12 = $41,116 Estimated Yearly Charges (from page 5) - 2 , 511 .20 Net Earnings $38,604.80 [Note: Actual earnings for the first nine months of 1995 = $34,694. Estimated year end 1995 "Net Earnings" = $46,200.] 4 Y° 05-0 r 1 y4 ft City of Chanhassen, Minnesota. Proposal Form City Banking Services 11. List service charges: r . proposed A. Yearly Charges: Charges , * One Safe Deposit Box 5 x 5 x 18 P ( ) � 35.00 Deposit Ticket Charge $21 per 200 (Est.) 43.20 Coin Services: ' Purchase ($200 twice /year) NO CHARGE Counting ($50 four /month) NO CHARGE ' Part A Subtotal $ 78.20 Current Estimated , B. Monthly Charges: Per Item Monthly Monthly Charge Activity Charges ' Monthly Maintenance Fee $ 7.00 1 $ 7.00 Debits • 10 460 46.00 Credits • 10 25 2.50 ' Items Deposited .03 2,100 63 .00 Monthly Check Sorting Fee 5.00 1 5.00 ' NSF Checks 15.00 1 15.00 Stop Payment 15.00 1 15.00 Wire Transfers 10.00 2 20.00 ' Special Handling 15.00 0 0 Payroll Processing: ' Setup Charge N/A 1 75 0 Additions or Changes $8.00 each 2 $ 16.00 Fee/Payroll 5.00 2 10.00 ' Charge/Item On Us .03 (25) 75 3.25 Other .05 (50) Monthly Report on Verification , of Collaterization of Deposits NO CHARGE 1 0 Total Monthly Charges $202.75 ' Total Monthly Charges x 12 (Part B Subtotal) $ 2 ,433.00 ESTIMATED YEARLY CHARGES (PART A + B) $ 2, 511 .20 5 1 * The City currently rents a 3 x 10 x 18 box for $40.00 /year. C 12. ' List other optional services provided by your firm, anticipated benefits of such to ' the City and costs of services. ' The Chanhassen Bank offers a full line of traditional and non - traditional financial products and services. The bank has.provided a batch encoder machine to the City to aid in the processing and balancing of bank deposits. Under this proposal, we would continue to provide the machine at no cost. The City provides maintenance ' on the machine. A recent estimate of the replacement cost of the machine was $2,962 to $4,345. Additional services include signature guaranty and notary service at no charge. Bank Certificates of Deposit and Repurchase Agreements are offered at competitive rates. The processing of security purchases for the City's account is $40.00 each. Safekeeping of the securities is provided at no charge. ' Mutual funds and annuity purchases are available through authorized representatives of Aegon and PFL Life Insurance Company. The Bank will continue to provide a checking account for the Employee Group Fund and the ' Employee Group Fund II at no charge. The Bank also provides miscellaneous services to the City as requested. 13. Describe aspects of your banking services that distinguish you from other banks: ' The Bank's service hours are second to none in the area. The Bank has been serving the Chanhassen community and the surrounding area for more than 76 years. We have been providing financial services to the City of Chanhassen for ' many years and, by this request, we wish to continue the excellent relationship that we have enjoyed to date. Our aim is to provide the best financial services that are available in the marketplace to the City. As technology changes and new products and services become available, they will be offered to the City during the term of this agreement. ' The Bank is also proud to have regularly contributed time and funds into the various City- sponsored events such as Februaryfest, the July 4th celebration and ' Septemberfest. We are a charter member of the City's Sponsor Program and we have been a Gold Sponsor each year since the program's inception. C City of Chanhassen, Minnesota Proposal Form City Banking Services 14. Defmitions of terms used in this proposal: Example: The amounts shown are an approximate average of the first nine months of 1995 and projected 1996 -1998. The amounts to be used during the term of the contract will be actual amount for each item shown in the "Example." Average Daily Balance: Daily balances divided by the number of days during the statement period. Federal Rate: The previous three month auction average for 90 day Treasury Bills. Amount to be Invested: Subtract "net" from "reserve." Amount to be Invested/Earnings shall be calculated as follows: * Number days in the statement period may vary from month to month depending on when the last day of the month occurs. 15. Contact person(s): Name: Kevin P. McShane and Alan G. Tellers President & CEO Vice President of Operations This proposal, if accepted by the city, shall begin as soon as practicable after January 1, 1996, , and shall remain in force and effect through December 31, 1998. The contract may be canceled by the bank on or before September 1 of each year. The termination of the contract shall then become effective on January 1st of the year following notification. The city may cancel by ' providing the bank with a 30 day notice. All terms, rates, and other services shall be as stated in the proposal unless specifically modified and agreed to by both parties for the term of the contract. Net Available Funds Times Earnings Rate /365 Equals Daily Earnings Credit Times Number of Days in Statement Period* Equals Earnings to Apply Against Service Charges * Number days in the statement period may vary from month to month depending on when the last day of the month occurs. 15. Contact person(s): Name: Kevin P. McShane and Alan G. Tellers President & CEO Vice President of Operations This proposal, if accepted by the city, shall begin as soon as practicable after January 1, 1996, , and shall remain in force and effect through December 31, 1998. The contract may be canceled by the bank on or before September 1 of each year. The termination of the contract shall then become effective on January 1st of the year following notification. The city may cancel by ' providing the bank with a 30 day notice. All terms, rates, and other services shall be as stated in the proposal unless specifically modified and agreed to by both parties for the term of the contract. 1 l 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 City of Chanhassen, Minnesota Proposal Form City Banking Services In submitting this proposal, I (we) understand that the City of Chanhassen reserves the right to reject any or all proposals, to waive informalities, and to make any award which it considers to be in the best interest of the city. Submitted by: The Chanhassen Bank ovember 17. 1995 - - Authorized Print/TypeName: P. McShane Title: President & CEO Phone Number: Office 937 -2265 Home 937 -1613 E COLLATERAL RECEIPT - NO. Owner hereby deposits with Lender as collateral to secure the Obligations of Borrower or Owner to Lender the following described property: - 1 11 3718dII003N-NON 86LE-L (Wg) W /O) *DUJ'601601OU4- luoIlW+JO:l M Lt9Nn-.n :H3NMO :U3NMI :a3NMO :H3NMI :d3NMO :U3NMO :H3NMO :H3NM0 EXHIBIT B CITY OF CHANHASSEN ' DEPOSIT TOTAL AND PLEDGED COLLATERAL OCTOBER 31, 1995 , 1. October average checking balance $463,303.19 2. Savings balance per statement .00 3. Certificate of Deposit .00 ' 4. Total Deposits $463,303.19 5. Less FDIC Insurance ( 100,000.00 ) 6. Amount requiring collateral $ 363,303.19 7. Collateral required (110% of line 6) $ 399,633.51 ' Pledged Collateral Cou MTD Market Value GNMA Pool #019239 8.000 09/15/97 $ 78,977 ' GNMA Pool 11020196 8.000 12/15/07 71,113 GNMA Pool 1/063403 12.000 02/15/13 4,094 ' GNMA //190945 9.000 11/15/01 29,275 U.S. Treasury Note 5.125 11/15/95 199,938 U.S. Treasury Note 4.625 02/15/96 498,437 ' U.S. Treasury Note 4.250 05/15/96 248,203 U.S. Treasury Note 4.375 08/15/96 495,157 U.S. Treasury Note 5.125 03/31/96 498,907 ' U.S. Treasury Note 6.500 09/30/96 504,062 U.S. Treasury Note 8.000 01/15/97 513,750 Fed.Farm.Credit Bonds 4.125 01/16/96 199,384 ' FHLB Consol. Bond 5.970 06/03/96 500,235 FHLB Consol. Bond 7.555 02/10/97 511,095 ' FHLB Consol. Bond 6.910 04/03/98 511,407 8. Total Pledged Collateral $4,864,034.00 ' 9. Net Position (8 -7) $4.464,400.49 Kevin P. McShane ' President & CEO 600 West 78th Street m Chanhassen, MN 55317 ig (612) 937 -BANK ,v. -- - -Y.�e City of Chanhassen Proposal Form , City Banking Services EXHIBIT C The Chanhassen Bank proposes that the City maintain the existing commercial checking account subject to the service charge schedule detailed in Section 11.B. In addition, an earnings credit would be calculated each month based on the previous three -month auction average for 90 -day Treasury bills. The calculation for service charges and credits is as follows: Average Ledger Balance for Month (minus) Uncollected Funds (minus) 10% Reserve Requirement Equals Net Available Funds Times Earnings Rate /365 Equals Daily Earnings Credit Times Number of Days in Statement Period ** Equals Earnings to Apply Against Service Charge Minus Service Charges Equals Net Service Charge* * If charges exceed earnings credit, a net charge will be assessed on the last day of your statement cycle. If earnings credit exceeds charges, net credit will be posted to the account. ** Number of days in statement period may vary from month to month, depending on when the last day of the month occurs. The earnings credit rate for 1995 was as follows: January 5 5.28% M May 5 5.84% S ' RE: Request for Proposal - Official Depository Mr. Don Ashworth ' City Manager ' City of Chanhassen ' 690 Coulter Drive Chanhassen, MN 55317 our bank provides to the Chanhassen. community. ' RE: Request for Proposal - Official Depository Dear Don: Councilman Mark Senn requested additional information on the breakdown of gross loans ' and commitments to Chanhassen residents and businesses in Question 9, Page 3 of the ' Request For Proposal (RFP). He was particularly interested in the commercial loans that our bank provides to the Chanhassen. community. ' Real Estate $2,989,037 Installment Loans $1,731,434 Commercial $5,963,450 1 600 West 78th Street ■ Chanhassen MN 55317 ■ (612) 937 -BANK Don, as I indicated in the interview with the Evaluation Committee last Friday, the loan totals that I included in the RFP were a breakdown by the 55317 zip code. This would not include loans that have been made to individuals and businesses that do business in ' Chanhassen but may have a billing (mailing) address outside of the City. Don, it should be further noted that the bank provides real estate financing to area residents in the form of first mortgage loans to residents that are subsequently sold on the secondary market. The loans are not held by our bank and, therefore, are not included in ' our loan totals. Our bank's volume in these types of loans has been approximately $6 million for the past two years. The following summary includes commercial loans that have been made to local businesses that have billing the City Chanhassen: (mailing) addresses outside of of ' Real Estate $2,989,037 Installment Loans $1,731,434 Commercial $5,963,450 1 600 West 78th Street ■ Chanhassen MN 55317 ■ (612) 937 -BANK Don Ashworth Page Two Don, I trust that this information assists you in your evaluation of the two proposals that have been presented to you. I will look forward to hearing the Council's decision next Monday. Please call me if I can be of further assistance. Sincerely, i Kevin P. McShane President & CEO KPM/mp ACCOUNT # �► ;o ��'; c , l� :" �C/� a s r��r �.� a ! CITY OF CHANHASSEN attn: STATEMENT PERIOD: address / FROM ERR city, state, zip ��: k S by /4 *' v e w 1 TO ERR E STATEMENT OF COMPUTATION OF INVESTABLE FUNDS FOR ERR DAILY AVERAGE BALANCE LESS UNCOLLECTED FUNDS DAILY AVERAGE COLLECTED BALANCE ' LESS REQUIRED RESERVE AT INVESTABLE BALANCE - DAILY AVERAGE REVENUE ON INVESTABLE BALANCE AT ' CHARGES FOR ACCOUNT ACTIVITY: ITEMS PAID ON ACCOUNT CREDIT ITEMS POSTED ' ON -US ITEMS DEPOSITED: TRANSIT ITEMS DEPOSITED: COIN FEE (DEPOSIT SORT UNITS) ' COIN FEE (PURCHASED) ADMINISTRATIVE EXPENSE FDIC ACCESSMENT (Estimated) TOTAL ACTIVITY CHARGES 0.00 - 0.00 0.00 10% 0.00 0.00 5.290% 0.00 460 @ $0.15 69.00 25 @ $0.40 10.00 2,000 @ $0.06 120.00 100 @ $0.08 8.00 0 @ $10.00 0.00 0 @ $0.03 0 15.00 0.00 222.00 1 REVENUE ON ACCOUNT EXCEEDS EXPENSES (222.00) MINIMUM AVAILABLE BALANCE REQUIRED TO OFFSET ACTIVITY FEES* $60,000.00 *Rounded up to the nearest 5,000.00 November 9, 1995 Mr. Ken R. Nordlie Richfield Bank & Trust Co. 6625 Lyndale Ave. South Richfield, MN 55423 Re: Official Depository Dear Mr. Nordlie: 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 The Chanhassen City Council is anticipated to &signs 1996 -1998 at their regular meeting of November 27, 1 you to complete the attached "Request for P�o�osals" �, 10:00 a.m. on November 17, 1995. You may submit a however, the city's RFP form must be completed in its its official depository for the years 5. By this letter, I would hereby invite FP) and return it to this office by itional information with the RFP; 39 itirety. Should you decide to submit an RFP, you should also bloclk out the time frame of 2:00 -4:00 p.m. on November 17, 1995. The Reque t "for Proposal forms At be reviewed by a member of the City Attorney's Office, a member of the City Auditor's Office and myself between 10:00 a.m. to 2:00 p.m. on November 17 . Interviews with each of the bank "ssubmitting an RFP will be established during that-t pe "frame. Interviews are anticipated 'to be approximately 30 minutes for each bank. The indiviclual°vvho wilt be,the ty s prirnarycontac "t for banking services/ collateralization shouldbeahe.one Should you have any questi" Finance Director at 937 -1900 ext. Best of luck to you. Sincerely, Don Ashworth City Manager to the RFP itself, feel free to coptaclieither Pam Snell, rivself at 93, 19Wext ..,110 a "T, ' CITY OF CHANHASSEN PROPOSAL FORM FOR ' CITY BANKING SERVICES Date: :November 10, 1995 City of Chanhassen 690 Coulter Drive Chanhassen, MN 55317 We submit for your consideration the following proposal for providing banking services for the City of Chanhassen's checking account and provide the general information as requested herein. A. We will establish a checking account in the name of the City of Chanhassen, Tax I.D. #41- 0885331. B. We will provide the following services: (check those that apply) X Deposit tickets X Acceptance and clearance of all deposited items • Monthly statements of accounts • Activity of analysis reports • Wire transfers in and out • Safekeeping • Direct deposit of payroll (ACH) Home office and type of institution: ' Name: Richfield Bank & Trust Co. Address: 6625 Lyndale Avenue S City: Richfield State: Minnesota ' Zip Code: 55423 Telephone: 612- 798 -3400 Charter: State Chartered ' Incorporation: 1947 r -_ L 1 U City of Chanhassen, Minnesota Proposal Form City Banking Services 2. Location of facility in the City of Chanhassen (if different from previous address): ' 761 West 78th Street Chanhassen, MN 55317 ' 3. List normal hours of business: ' 9:00 a.m. - 7:00 p.m. Monday - Friday 9:00 a.m. - 1:00 p.m. Saturday ' 4. Member of Federal Reserve? 5. RI Yes x No Bank Number: N/A ABA No: 091016498 Magnetic Encoding No. N /A Describe wire transfer procedures for federal funds /same day transfers: Wire transfer requests are accepted from 8:30 a.m. to 3 :00 p.m. Monday - Friday. The bank needs are payment instructions and security codes to initiate a wire. See attached Funds Transfer Service Agreement and Addendems for specifics Describe procedures for direct deposit of payroll services, including processing and scheduling requirements (city has bi- weekly Friday payday schedule): Direct deposit of payroll services are provided either through a 3rd party processor or directly if provided with corr f o rm at t e d ..A C H readable files or through vtilization of our Business Express /PC Cash Management System. Files must be presented at the Main Office two days prior to posting date. Cut off time for presentment is 12:30 p.m. (example for Firday posting date we must receive the file prior to 12 ?30 p.m. on Wednesday.) 2 SEE ATTACHMENTS ' RICHFIELD BANK & TRUST CO. WERE TRANSFER PROCEDURES ADDENDUM A Wire transfer requests will be accepted between 8:30 a.m. and 3:00 p.m. Monday through Friday. However, any transfer requests in excess of $25,000 made after 1:30 p.m. will not ' be sent until the following business day unless prior arrangements have been made. The Personal Identification Codes assigned by the bank must remain confidential and may ' not be used by anyone other than the individual to whom it has been assigned. Once the bank has been provided with payment instructions and all security codes, as an ' additional security procedure the Wire Transfer Operator will call back the customer to confirm those wires established on addendum's B and C requiring a callback verification. The verification call will be made to someone other than the person requesting the ' transfer. ' Any written or faxed instructions must contain all of the information outlined above and must be confirmed by an authorized person through our callback procedure before it will become effective. We will send confirmations to you for all incoming and outgoing wire transfer requests received, other than the ones you have initiated on your own behalf. To initiate a wire transfer, the Customer must call 612- 861 -3391 or appear at the Bank and provide the following information to the Bank's Wire Transfer Operator: • Name, and as a security procedure, the Personal Identification Code of the person initiating the call. • Repetitive transfer code if applicable. • Account name, address and number to be debited. • The dollar amount of the payment order. ' • The destination bank, it's address and ABA number. • The beneficiary name, address and account number. • Any additional reference information. • Date the transfer is to be _effective. Wire transfer requests will be accepted between 8:30 a.m. and 3:00 p.m. Monday through Friday. However, any transfer requests in excess of $25,000 made after 1:30 p.m. will not ' be sent until the following business day unless prior arrangements have been made. The Personal Identification Codes assigned by the bank must remain confidential and may ' not be used by anyone other than the individual to whom it has been assigned. Once the bank has been provided with payment instructions and all security codes, as an ' additional security procedure the Wire Transfer Operator will call back the customer to confirm those wires established on addendum's B and C requiring a callback verification. The verification call will be made to someone other than the person requesting the ' transfer. ' Any written or faxed instructions must contain all of the information outlined above and must be confirmed by an authorized person through our callback procedure before it will become effective. We will send confirmations to you for all incoming and outgoing wire transfer requests received, other than the ones you have initiated on your own behalf. ACCOUNT NAME ADDRESS CITY /STATE AUTHORIZED ACCOUNTS ACCT # ACCOUNT TITLE LIMIT , PERSONS AUTHORIZED TO EXECUTE MODIFY AMEND OR TERMINATE THIS AGREEMENT ' NAME ORIGINAL SIGNATURE TITLE PH NE # PERSONS AUTHORIZED TO REQUEST WIRE TRANSFERS OR SET UP REPETITIVE PAYMENT INSTRUCTIONS NAME ORIGINAL SIGNATURE TITLE PHONE # "S LIMIT PERSONS AUTHORIZED TO CONFIRM WIRE TRANSFERS NAME ORIGINAL SIGNATURE TITLE PHONE # "S LIMIT Dollar limit required for callback verification if other than Bank standard of $25,000. S Do you wish to waive callback verification on all wire transfer requests? `Yes - No ' The Bank has offered and the customer has elected not to use the above security procedure for the verification of Customer payment orders. The Customer agrees to be bound by any payment order (whether or not authorized) issued in its name and accepted by the Bar>� in compliance with this agreement. RICHFIELD BANK & TRUST CO. WIRE TRANSFER AGREEMENT ADDENDUM B PHONE # * If rinllir limits ara not en?cifierf nnde.r the "S LIMIT" headinos above, an unlimited amount will be assumed. t RICHFIELD BANK &.TRUST CO. WIRE TRANSFER AGREEMENT REPETITIVE INSTRUCTIONS ADDENDUM C ACCOUNT NAME ACCOUNT NUMBER _ REPEAT CODE DOLLAR LIMIT CALLBACK REQUIRED STANDARD REPETITIVE INFORMATION BANK ADDRESS OR BRANCH CITY STATE BANK ABA CREDIT ACCOUNT NAME CREDIT ACCOUNT NUMBER OTHER INFORMATION AUTHORIZED SIGNER: DATE: FUNDS TRANSFER SERVICES AGREEMENT This Funds Transfer Services Agreement is between Richfield Bank & Trust Co., a Minnesota banking corporation ( "Bank ") and the customer identified at the conclusion of this Agreement ( "Customer "). The Bank and the Customer agree that the provision by the Bank and the use by the Customer of the funds transfer services described below shall be subject to the terms and conditions contained in this Agreement. 1. DEFI MONS 1.1 Statutory Definitions Unless otherwise defined in this Agreement, words or phrases shall have the meaning ascribed thereto in Uniform Commercial Code Article 4A: Funds Transfers ( "UCC 4A "). 1.2 Agreed Definitions The following words or terms have the designated meanings: 1.2.1 "Agreement" means this Funds Transfer Services Agreement as it may be amended from time to time after giving effect to all Exhibits attached hereto and all Addenda. 1.2.2 "Addendum" or "Addenda" means any writings executed and delivered simultaneously with or subsequent to the execution of this Agreement and intended by the patties to supplement the provisions of this Agreement. 1.2.3 ' "Authorized Account" means the account or accounts of the Customer maintained at the Batik and which the Bank may debit for any Customer payment order executed pursuant to this Agreement. An Authorized Account is any account so designated on any Addendum. In the absence of any such designation, any account maintained by the Customer at the Bank is an Authorized Account. 1:2.4 "Authorized Person" means a person authorized to execute, modify, amend, or terminate this Agreement on behalf of the Customer. 1.2.5 "Available Funds" means funds on deposit in an Authorized Account and available for withdrawal pursuant to the Bank's applicable funds availability schedule. 1.2.6 "Execute" has the meaning assigned in UCC 4A. When the Bank is also the beneficiary's bank, the term "execute" includes the Bank's paying the amount of the Customer's payment order to the beneficiary for purposes both of this Agreement and the application of UCC 4A to the transactions contemplated hereunder. 1.2.7 "Security Procedure" means those procedures designated in any Addendum for the purpose of verifying the authenticity of funds transfer communications sent to the Bank in the name of the Customer or for the detection of errors contained in any such communication. 2. FUNDS TRANSFER SERVICES 2.1 Execution of Pavment Orders The Bank may execute each payment order received by it in the name of the Customer as sender, provided that the Customer has sufficient Available Funds on deposit in an Authorized Account and provided that the payment order (a) is received by the Bank in the manner and at the place(s) specified on any Addendum; (b) complies with any written instructions and restrictions of the Customer set forth on any Addendum; and (c) is authorized by the Customer or is verified by the Bank by means of a Security Procedure for verifying the authenticity of funds transfer instructions sent to the Bank in the name of the Customer. The Bank is not required to accept any payment order and has no responsibility or liability with regard to any payment order until it executes such payment order. The Bank may use whatever means the Bank in good faith deems reasonable under the circumstances to execute each payment order, including selection of funds transfer system, routing and means of transmission. 2.2 Rejection and Confirmation of Payment Orders If the Bank rejects or fails to execute a payment order of the Customer, then no later than 4:00 p.m. on the execution date of the payment order, the Bank shall notify the Customer of its rejection of the payment order. If the Customer has paid for a payment order which the Bank has rejected or failed to execute, the Bank will reimburse the Customer for those funds and pay compensation for the use of those funds as set forth in Section 3. The Bank may mail to the Customer written notification of incoming, outgoing and interbank funds transfers. Outgoing transfers are immediate and will be charged to the Customer's account on the day they are executed. The Customer agrees to promptly review all such written notifications and report to the Bank in writing any problem, error, discrepancy or objection concerning any funds transfer within 10 days of the transfer date. The Customer shall also promptly review and reconcile its statements of account received from the Bank and notify the Bank in writing within 30 days after the statement date of any problem, error discrepancy or objection concerning such statement. The Customer's failure to comply with any part of this Section 2.2 shall constitute a waiver of such problem, error, discrepancy or objection which such compliance would have disclosed. 2.3 Identifvine Number The Customer is notified that: 2.3.1 If a payment order identifies the beneficiary by both a name and an identifying number and the name and number identify different persons, execution of the payment order, payment to the beneficiary or cancellation of the payment order may be made solely on the basis of the identifying number and the Bank has no obligation to determine that the name and number identify the same person. 2.3.2 If a payment order identifies any bank by both a name and an identifying number and the name and number identify different banks, any bank may rely solely on the identifying number or the identifying name to identify the bank with respect to the payment order and the Bank has no obligation to determine that the name and number identify the same bank. 2.4 Time of Receipt of Payment Orders The Bank will provide the Customer with a schedule of the business hours during which a payment order may be received for execution on that day. The Bank is not required to execute a payment order on the day it is received if it is received after such business hours or if the Bank cannot reasonably execute the payment order within such business hours. If the Bank is delayed beyond the time limits provided in the schedule or by law in executing a payment order, then the time for acting shall be extended to the time necessary to execute the paymentorder, provided the Bank exercises such diligence as the circumstances require. The Bank shall not be liable in any event for any delay in executing or refusal to execute any payment order if the Bank in good faith is unable to satisfy itself that the payment order has been given by an Authorized Person or is incompliance with any applicable Security Procedure. CRB 66780.02 0 I✓' ' The Customer shall indemnify the Bank and hold the Bank harmless from any cost, liability or expense (including reasonable attorney's fees) arising out of any claim by a third parry alleging that a Customer payment order contravenes or compromises the rights, title or interest of any third party, or contravenes any law, rule, regulation, ordinance, court order or other mandate or prohibition with the force or effect of law (a "Claim "), unless the Claim arises out of the Bank's failure to exercise ordinary care, failure to act in good faith or failure to act in accordance with the Customer's instructions given ' pursuant to this Agreement. 6. LIMITATION OF LIABILITY 6.1 Responsibility for the Detection of Errors Except as may be provided on any Addendum, the Bank is not responsible for detecting ' any Customer error contained in any payment order sent by the Customer to the Bank. 6.2 Unauthorized Pavment Orders If a payment order in the name of the Customer accepted by the Bank was not authorized by the Customer, the liability of the patties will be governed by the applicable provisions of UCC 4A. ' 6.3 CompensableDamages The Customer acknowledges that the Bank's fees for services under this Agreement are very small in relation to the amount of payment orders, and consequently the Bank's willingness to provide such services is contingent on limitation of its liability in accordance with the terms of this Agreement. The Bank will be liable only for the Customer's actual damages and only to the extent that such damages are recoverable under UCC 4A. THE BANK SHALL NOT BE LIABLE UNDER ANY CIRCUMSTANCES WITH RESPECT TO CONSEQUENTIAL OR SPECIAL ' DAMAGES UNDER THIS AGREEMENT, WHETHER OR NOT SUCH DAMAGES RELATE TO SERVICES COVERED BY UCC 4A, EVEN IF THE BANK HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. 6.4 Standard of Care With respect to the performance of services under this Agreement which are not covered by UCC 4A, the parties will be governed by a standard of ordinary care. The Bank will be deemed to have exercised ordinary care if its action or failure to act has been in conformity with the Bank's prescribed procedures and such procedures do not vary unreasonably from general banking uses and practices not disapproved by any provision of the Uniform Commercial Code. 6.5 Required Notice Unless the Customer notifies the Bank in writing, within 30 calendar days following Customer's receipt of notification either of the acceptance of a payment order or of the debiting of a payment order to an Authorized Account, that such payment order was not authorized or was not properly executed, the Bank will not be liable for any interest thereon. 6.6 Force Maieure Except as otherwise provided by UCC 4A, the Bank will not be liable for its inability to perform its obligations hereunder when such inability arises out of causes beyond its control, including, without limitation, any act of God, accident, equipment failure, system failure, labor dispute or the failure of any third parry to provide any electronic or telecommunication service used in connection with the execution or cancellation of payment orders, provided that the Bank shall have exercised such diligence as the circumstances require. In the event of any emergency or other condition affecting the ability of the Bank to discharge its obligations under the terms of this Agreement, the Customer agrees to follow any alternate procedures with regard to the services contemplated hereby as the Bank may reasonably specify. ' 7. CHOICE OF LAW 7.1 Consumer Transactions The Customer and the Bank agree that if a payment order is a portion of a funds transfer in which other portions are subject to the Electronic Fund Transfer Act of 1978 (as in effect from time to time), all actions and disputes between the Customer and the Bank concerning that payment order shall be determined pursuant to UCC 4A as varied by this Agreement. 7.2 Governing Law This Agreement shall be governed by the internal laws (excluding the law of conflicts) of the State of Minnesota, and applicable federal law and regulations. The Customer consents to the jurisdiction of the courts of the State of Minnesota, waives any argument that ' such venue is inconvenient, and agrees to bring any litigation in connection with this Agreement in either the District Court of Hennepin County or the Federal District Court, District of Minnesota, Fourth Division. S. NO EXTENSION OF CREDIT ' Nothing in this Agreement nor any course of dealing between the Customer and the Bank constitutes a commitment or obligation of the Bank to lend money to the Customer or obligates the Bank to extend any credit to the Customer, to make a loan to the Customer, or otherwise to advance available funds to the Customer to pay for any payment order contrary to the Bank's published availability schedules. ' 9. OTHER AGREEMENTS AND AUTHORITY 9.1 Authorirv Concurrent with the Customer's delivery of this Agreement to the Bank, the Customer shall provide the Bank evidence satisfactory to the Bank of the Customer's authority to execute and perform its obligations hereunder and such other documents as the Bank may reasonably ' require. The Bank is entitled to rely upon such evidence and upon amendments thereto executed by an Authorized Person: 9.2 Other Agreements The terms and conditions of this Agreement are in addition to, and do not modify or otherwise affect, the terms and conditions of any agreement or arrangement between the parties hereto. 10. GENERAL TERMS 10.1 Taxes. The Customer is responsible for all tariffs, duties or taxes (excluding U.S. federal, state and local taxation of the income of the Bank) imposed by any government or governmental agency in connection with any payment order executed pursuant to this Agreement. ' 10.2 Additional Information In addition to the Addenda contemplated hereby, the Customer agrees to furnish the Bank with any other information which the Bank may reasonably request, to assist the Bank in accomplishing the purposes of this Agreement. 10.3 Amendments The provisions of this Agreement may be amended only by written agreement executed by an Authorized Person and ' an officer of the Bank. 10.4 Assignment Neither party may assign or transfer any of its rights or obligations under this Agreement. CRS 66780.02 3 City of Chanhassen, Minnesota Proposal Form ' City Banking Services 7. Facilities for safekeeping of securities, etc: Held directly? Yes X No (if no, list where held) Treasury Notes @ Federal Reserve Minneapolis ' All other Securities @ Trust Department @ DTC 8. Collateral Requirements: A city depository is required to provide collateral sufficient to secure the account balance in accordance with Minnesota Statutes 118.0 1, such collateral being subject to acceptance by the city. Performance bonds are not an acceptable substitute for collateral. The range of collateralization is expected to be $246 million. Describe the type of collateral proposed to be assigned and list the maximum amount available to the city. Also list any charges for the assignment and maintenance of the collateral. , Government /Agency Bonds at least 110% value_ No charges ' N i What are your total gross loans and commitments to Chanhassen residents/businesses by I line, i.e: Real Estate: $610,217.24 , Installment Loans: $1,507,222.04 Commercial: Net loans $1,507,222.04 1 ' Sales Finance: $50,945.00 Additional Commitments: $243,010.00 , I i 1 City of Chanhassen, Minnesota Proposal Form City Banking Services 10. Interest Earnings: Establishment of a sweep account so as to generate interest earnings for the city as calculated below is required (see "Definitions" which describe how each term below is to be calculated). An alternate method of paying interest earnings may be ' attached if the proposer can demonstrate that the yield will be higher without consuming additional city staff time. ' Example: Average Daily Balance $900,000 Average Float 50,000 ' Net $850,000 Reserve 90,000 SEE TRUST Amount to be Invested $760,000 .ATTACHMENTS Federal Rate 5.41% Earnings $3,426.33 We agree to interest earnings to the city and will show such on monthly statements for that month. ' "average Exception: If the daily balance" falls below $ we will pay interest earnings at the current rate in effect for our ' commercial accounts. An alternate method of paying interest on the city's account is attached ' and labeled "Exhibit A" which conforms to the requirements above. Differences in "Definitions" are shown and such shall be considered as an official part of our RFP. ' Net Earnings: ' Estimated Earnings @ $3,426.33 x 12 = $41,116 Estimated Yearly Charges (from page 5) - ' Net Earnings ' [Note: Actual earnings for the first nine months of 1995 = $34,694. Estimated year end 1995 "Net Earnings" = $46,200.] IJ TRUST CONTRIBUTION TO CHANHASSEN PROPOSAL I #7 No. The Trust Division offers secure third party custody service through the Federal ' Reserve Bank as depository for all treasury securities and Northern Trust Corporation as custodian for all other depository and non - depository securities. ' #10 The Trust Division offers our Cash Sweep Account for non - interest bearing commercial checking accounts. The checking account balance is swept daily to ' maintain a predetermined collected checking account balance. The current rate is 5.49% paid daily and posted monthly. There is a 1/2 of 1% annual fee charged the account. (See attached for more information). #12 , The Trust Division offers a "Cash Reserves Account" for professional management of short duration fixed income securities. This account provides , higher investment returns than Cash Sweep money markets. The fee for this account is 1/2 of 1 % per year or less (see attached). , 11 RELMCE -ASSET MANAGEMENT CASH SWEEP ACCOUNT As Simple and Rewarding as" 1-2 fliff Together we determine a minimum checking account balance. Excess cash is then nyept daily in increments of $1,000 from checking to your money market account. Overdraft protection. If your checking account balance falls below the predetermined level, cash is automatically transferred in increments of $1,000 to your checking account. You can direct same day cash sweeps If, on any given day, you write checks that could clear the bank and the amount exceeds your predetermined balance, simply call 798 -3168 before 11:00 AM and we'll take care of it for you. 1 +2 +3 It all adds up to a simple way to maximize earnings an minimize costs on your daily cash flow. TRUST & INVESTMENT DIVISION RICHFIELD BANK &TRUST CO., 6625 LYNDALE AVENUE SOUTH, RICHFIELD, MN 55423 WHAT IS IT? A Cash Sweep Account is an investment agency account with the Trust Department. This account-runs parallel with your checking account. The purpose of the Cash Sweep Account 'is to invest excess cash from your checking account, yet keep the excess cash liquid and available. WHO CAN TAKE ADVANTAGE OF SUCH AN ACCOUNT? The Cash Sweep Account is designed for individuals and corporations with large account balances. The large balances are available because cash cannot be tied up for any length of time. 7 L HOW DOES IT WORK? By determining a minimum checking account balance needed to handle normal cash , flow, excess cash is swept daily in $1,000 increments from the checking account to the Cash Sweep Account. Dollars in the Cash Sweep Account are invested the very next day in an institutional money market fund which has consistently out - performed ' the publicly offered mutual funds. Conversely, if your checking account balance falls below the predetermined level, cash is automatically transferred to your checking account, again in $1,000 increments. Interest earned in the Cash Sweep Account is , computed daily and paid monthly to your checking account. If you write a check or checks that could clear the bank on the same day and the , amount exceeds your predetermined balance, simply call Trust Operations at 798 -3168 before 11:00 A.M.. Trust Operations personnel will transfer money from your Cash Sweep Account so the checks will be covered. ' You will receive a monthly Cash Sweep Account statement. By comparing this statement with your checking account statement, you will have the ability to accurately follow the movement of cash between the two accounts. HOW CAN ONE ESTABLISH A CASH SWEEP ACCOUNT? ' Talk to your Commercial Loan Officer, or call the Trust Department at 798 -3322 or ' 798 -3373. We . will help you determine the needed checking account balance. By signing a Cash Sweep Agreement with the Trust Department, your Cash Sweep Account will begin the next business day. TRUST & INVESTMENT DIVISION I RICHFIELD BANK &TRUST CO., 6625 LYN DALE AVENUE SOUTH, RICHFIELD, MN 55423 a RELIANCE - ASSET .MANAGEMENT RICHFIELD BANK & TRUST CO: CASH SWEEP ACCOUNT , A Cash Sweep Account is an investment agency account with the Trust Department. This account-runs parallel with your checking account. The purpose of the Cash Sweep Account 'is to invest excess cash from your checking account, yet keep the excess cash liquid and available. WHO CAN TAKE ADVANTAGE OF SUCH AN ACCOUNT? The Cash Sweep Account is designed for individuals and corporations with large account balances. The large balances are available because cash cannot be tied up for any length of time. 7 L HOW DOES IT WORK? By determining a minimum checking account balance needed to handle normal cash , flow, excess cash is swept daily in $1,000 increments from the checking account to the Cash Sweep Account. Dollars in the Cash Sweep Account are invested the very next day in an institutional money market fund which has consistently out - performed ' the publicly offered mutual funds. Conversely, if your checking account balance falls below the predetermined level, cash is automatically transferred to your checking account, again in $1,000 increments. Interest earned in the Cash Sweep Account is , computed daily and paid monthly to your checking account. If you write a check or checks that could clear the bank on the same day and the , amount exceeds your predetermined balance, simply call Trust Operations at 798 -3168 before 11:00 A.M.. Trust Operations personnel will transfer money from your Cash Sweep Account so the checks will be covered. ' You will receive a monthly Cash Sweep Account statement. By comparing this statement with your checking account statement, you will have the ability to accurately follow the movement of cash between the two accounts. HOW CAN ONE ESTABLISH A CASH SWEEP ACCOUNT? ' Talk to your Commercial Loan Officer, or call the Trust Department at 798 -3322 or ' 798 -3373. We . will help you determine the needed checking account balance. By signing a Cash Sweep Agreement with the Trust Department, your Cash Sweep Account will begin the next business day. TRUST & INVESTMENT DIVISION I RICHFIELD BANK &TRUST CO., 6625 LYN DALE AVENUE SOUTH, RICHFIELD, MN 55423 ' ANNUAL FEE: There will be a charge of $5 per $1,000 of the average balance in the ' Cash Sweep Account, the minimum annual fee being $250 dollars. Fee will be charged semi- annually based on average of previous six ' months ending balance multiplied by .25 %. Normal checking account service charges still apply. Overdrafts will be covered the following day, provided there are funds in the Cash Sweep Account. There will be a charge of $5 dollars per ' overdraft plus interest tat the prime rate) on the amount overdrawn for that day. Overdrafts are discouraged. ' - Please call Trust Operations at 798 -3168 before 11:00 A.M. to transfer money from Cash Sweep Account to checking when writing checks above your established checking account balance. There is no charge for ' these requested transactions. ' - There will be no charge for automatic transactions in or out of the Cash Sweep Account except on overdrafts as stated above. ' - Monthly statements will be provided at no charge. kn \f210 RICHFIELD BANK StTIiUST CO., 6625 LYN DALE AVENUE SOUTH, RICHFIELD, MN 55423 CASH RESERVES ACCOUNT ADDITIONAL SERVICES FEE GUIDELINES The following fees are in addition to market value fees: investment Transactions $ 20 per depository- eligible security purchase, sale or maturity $ 40 per depository- noneligible security purchase, sale or maturity $ 50 per security reorganization, capital change or option transaction $100 per purchase, sale or transfer of limited partnership, annuity, private placement sAock or life insurance policy $ 15 per principal pay down Other Services Additional Distributions $ 10 per check $ 15 per wire transfer (in addition to bank charge) Extra Reports $ 10 per additional report $ 5 per duplicate copy Termination Fee Final fee will be the applicable prorated portion of the annual fee, plus a termination fee based on the time and /or expense of termination, including asset transfers, final tax returns, final reports, etc. Other special services, including cost basis and other asset research, tax returns with unusual assets and /or activity, litigation, extraordinary other activity requiring extraordinary time and /or expense will be assessed at $75 per hour for Administrator activity and $35 per hour for Support Staff activity. T RUST & INVESTMENT DIVISION RICHFIELD BANK &TRUST CO., 6625 LYN DALE AVENUE SOUTH, RICHFIELD, MN 55423 City of Chanhassen, Minnesota Proposal Form , City Banking Services 11. List proposed service charges: ' A. Yearly Charges: Charges ' One Safe Deposit Box (5 x 5 x 18) $50.00 Deposit Ticket Charge $20. fo 200 Coin Services: , Purchase ($200 twice /year) 4¢ per roll Counting ($50 four /month) ' Part A Subtotal $ Current Estimated B. Monthly Charges: Per Item Monthly Monthly Charge Activity Charges ' Monthly Maintenance Fee $15.00 1 - $15.00 Debits .15¢ 460 $69.00 , Credits .15¢ 25 $3.75 Items Deposited .080 2,100 $168.00 Monthly Check Sorting Fee 1 $33.80 ' NSF Checks $20.00 1 $20.00 Stop Payment $20.00 1 $20.00 Wire Transfers $15. 1o c al $45. 2 $30- $90. ' Special Handling $3.00 0 $3.00 Payroll Processing: ' Setup Charge $ 100.00 75 $100.00 Additions or Changes • 08 2 .16 Fee/Payroll $25 .00 /ta 2 $50.00 ' Charge/Item • o8 75 $6.00 Monthly Report on Verification ' of Collaterization of Deposits 1 0 Total Monthly Charges Total Monthly Charges x 12 (Part B Subtotal) 0 mss/ ESTIMATED YEARLY CHARGES (PART A + B) $6,240.00 r 1 �� 5 12.1-ist other optional services provided by your firm, anticipated benefits of such to the city and costs of services. (Please see attached list of optional services provided by Richfield Bank & Trust and the associated costs when available) These services benefit the city of Chanhassen by providing a full range of banking services to its residents. When combined with our extended lobby hours, residents can ' come home to Chanhassen from their work and still take care of every banking need. ' 13.Describe aspects of your banking services that distinguish you from other banks. Richfield Bank & Trust is genuinely committed to the community. Our bank has ' been consistently recognized for supporting the communities we serve through financial and manpower commitments. The city of Chanhassen will no doubt reap the benefits of this commitment. Richfield Bank & Trust is an independent community bank. Chanhassen residents will get to know our team, and we'll get to know them. Our customers also have easier access to top management and other decision makers. The city of Chanhassen and its residents will be recognized for the valued customers they are. Richfield Bank & Trust offers trust and investment services. The city of Chanhassen and its residents can take care of all their financial needs in one stop with bankers who know their entire financial picture. Customers save time and money by ' consolidating their business at one place. Richfield Bank & Trust will celebrate its 50th anniversary in 1997, so you can trust ' our ability to manage the bank in a safe and sound maaner. You can feel secure knowing we won't be going out of business. Consumer Checking Basic Checking , Checking With Interest Choice Money Market Money Market Checking ' Regular Checking Super Checking Consumer Savings Certificates of Deposit Choice CD Investor Plus Minnesota Lifeline Savings Regular Savings Simplified Employee Pension Plan (SEP)- Customer Service Money Market Investment IRA - Customer Service Key CD Seniors Golden Opportunity Club Senior Checking Senior Checking with Interest Teller Services Cashier's Check Personal Money Order Travelers Checks U.S. Savings Bonds -- Series EE U.S. Savings Bonds — Series HH Customer Service and Information Account Balance inquiries Account Research ATM Card Automatic ACH Payments Automatic Funds Transfer Bank by Mail Cert'rfied Check Check/Sort in Check Number Order Checkbook Reconciliation Collections Contract for Deed Payments Credit Cards Credit Reference and Check OKs Customer Statements/Notices/Checks Direct Deposit EE U.S. Savings Bonds (Tax -free for education) Foreign Currency Exchange Funds Transfer New Account Information Night Depository Notary Service Mortgage Loans Home Equity Credit Lines Minnesota Housing Finance Agency (MHFA) Home Improvement Loans ' Residential First Mortgage Loans Residential Second Mortgage Loans Reverse Mortgages ' Foaled Coin ' Safe Deposit Boxes Stop Payments ' Telebanc (861 -0963) ' Telephone Transfers Wire Transfer ' Package Plan ' Business Loans Consumer Loans Boat/Recreational Vehicle Loans ' New Car Loan (Fixed rate) New Car Loans (Variable rate) Personal Loan Reserve -A -Loan (RAL) ' Single Pay Loans Used Car Loans (Fixed Rate) Mortgage Loans Home Equity Credit Lines Minnesota Housing Finance Agency (MHFA) Home Improvement Loans ' Residential First Mortgage Loans Residential Second Mortgage Loans Reverse Mortgages ' Business Accounts Business Checking (non - interest bearing) Business NOW Accounts ' Choice Money Market Checking Low Activity Business Checking Non - Profit Accounts ' Merchant MasterCard and Visa Programs Business Loans Equipment Financing Real Estate Loans ' Working Capital Loan ' Business Services The Bankroll Program Business Express/PC Cash Sweep Currency Room/Business Drive -Up Lane Federal Tax Depository Lock -Box Deposits Merchant MasterCard and Visa Programs Payroll Service Repurchase Agreement ( "Repos - ) EFT Business Tax Payments ' Executive Services Execuline TRUST - PERSONAL Custody Accounts Guardianship /Conservatorship of Estate Investment Agencies IRA -Trust Department - see IRA - Customer Service IRA Rollover -Trust Department Irrevocable Trusts Personal Representative of Estate (AKA Executor or Administrator) Revocable Living Trust Simplified Employee Pension Plan (SEP) -Trust Department Simplified Personal Trust Testamentary Trust (Trust Under Will) Trustee and /or administrative services for retirement plans for businesses TRUST - EMPLOYEE BENEFITS (EB) 401(k) Plans Cash Sweep Accounts Custodial Daily Pricing ESOPs High Tech Recordkeeping Individually Selected Stock Portfolios Laddered Maturity Treasury Portfolio Multi- Managed 401(k) Plans Plan Administration Plan Document Prototype Recordkeeping Reliance Asset Management Rollover IRAs Self- Directed Brokerage Accounts Voice Response Unit R COMMUNITY INVESTMENTS /BANK INVESTMENTS Annuities Mutual Funds Stocks and Bonds Treasury Bills Treasury Notes 1 City of Chanhassen, Minnesota ' Proposal Form City Banking Services 14. Definitions of terms used in this proposal: Example: The amounts shown are an approximate average of the first nine months of ' 1995 and projected 1996 -1998. The amounts to be used during the term of the contract will be actual amount for each item shown in the "Example." ' Average Daily Balance: Daily balances divided by the number of days during the statement period. ' Federal Rate: The previous three month auction average for 90 day Treasury Bills. Amount to be Invested: Subtract "net" from "reserve." ' Amount to be Invested/Earnings shall be calculated d as follows: ' Net Available Funds Times Earnings Rate /365 ' Equals Daily Earnings Credit Times Number of Days in Statement Period* Equals Earnings to Apply Against Service Charges ' * Number days in the statement period may vary from month to month depending on when the last day of the month occurs. 15. Contact person(s): ' Name: Connie Sw eazey Title: Assistant Vice President /Branch Manager This proposal, if accepted by the city, shall begin as soon as practicable after January 1, 1996, and shall remain in force and effect through December 31, 1998. The contract may be canceled by the bank on or before September 1 of each year. The termination of the contract shall then become effective on January 1 st of the year following notification. The city may cancel by providing the bank with a 30 day notice. All terms, rates, and other services shall be as stated in the proposal unless specifically modified and agreed to by both parties for the term of the contract. City of Chanhassen, Minnesota Proposal Form City Banking Services In submitting this proposal, I (we) understand that the City of Chanhassen reserves the right to reject any or all proposals, to waive informalities, and to make any award which it considers to be in the best interest of the city. Submittedby: Richfield Bank & Trust Co. Date: November 10, 1995 Authorized Signature- Print/Type Name: Connie Sweazey Title: Assistant Vice President /Branch Manager Phone Number: (612)798-3435 8 ' s o n , A 4444 AN INDEPENDENT BANK ' 6625 Lyndale Avenue So. Richfield, Minnesota 55423 / Telephone: (612) 861 -7355 November 20, 1995 Mr. Don Ashworth City Manager City of Chanhassen P.O.Box 147 Chanhassen, MN. 55317 Re: RFP - Official Depository Dear Don: Thank you for the opportunity to meet with you on Friday to discuss your depository needs. In response to the questions generated, we have prepared an account analysis using the figures given. This is enclosed, along with historical performance data and brochures on the three choices of Money Market Funds available through our cash sweep product. One question I have is, whether the city is currently earning money based on the Federal Funds rate. If this is the case, I would point out to you that this rate has been historically more volatile than either T -Bills or Money Market Funds. This is due to the nature of Federal Funds. Each day, every bank looks at its liquidity to determine whether it has excess funds or a shortfall. These funds or needs are matched up electronically for overnight investment. The rate is simply a reflection of supply and demand and as such, is subject to sizable fluctuation. Additionally, your bank must reserve 10% of this amount by law and withhold it from your investable balances. By our calculations, this ties up approximately $75,000 which cannot earn interest. A 7 e i r W �A a-r ^ erU -er g /p 744L ' To respond to Pam's question on payroll, we can accept either paper or tape for direct deposit instructions. There are no additional fees for manually inputting the data. Regarding utility bill processing, a lock box arrangement may be an alternative. However, without looking at volumes, I am not sure it would be cost effective for the city. ' I feel strongly that Business Express/PC could save your staff both time and money in efficiently allocating your resources. I am pleased to offer you this product with no initial fee for the software. Also, I offer a waiver of ' the base charge of $30.00 per month for the first six months, which gives you a total savings of $275.00. Additionally, your staff would be trained by us at no charge. Don, I feel strongly, we can bring to the city an expertise and sophistication of personnel and products it has not seen before. We stand ready to serve your needs today and just as importantly, we have the capability to grow with you. I look forward to the opportunity to be of service. ' Very truly yours, r ; Kevin A. Kaufman Assistant Vice President COMMERCIAL BANKING Sheetl M M M M M S; 2 i z Page 1 YM M Proposal for - City of Chanhassen RFP format JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL Average daily balance $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 $ 900,000 Average float $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 $ 50,000 Federal reserve req. $ 17,170 $ 14,758 $ 14,673 $ 14,724 $ 14,758 $ 15,152 $ 15,152 $ 15,264 $ 15,558 $ 15,478 $ 15,558 $ 15,558 Ave. Investable amt. $ 832,830 $ 835,242 $ 835,327 $ 835,276 $ 835,242 $ 834,848 $ 834,848 $ 834,736 $ 834,442 $ 834,522 $ 834,442 $ 834,442 Est monthly charges Month Mtce fee $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 15.00 $ 180 1 @$15.00 Debits $ 69.00 $ 69.00 $ 69.00 $ 69.00 $ 69.00 $ 69.00 $ 69.00 $ 69.00 $ 69.00 $ 69.00 $ 69.00 $ 69.00 $ 828 460 @.15 Credits $ 3.75 $ 3.75 $ 3.75 $ 3.75 $ 3.75 $ 3.75 $ 3.75 $ 3.75 $ 3.75 $ 3.75 $ 3.75 $ 3.75 $ 45 25 @.15 Items Dep. $ 168.00 $ 168.00 $ 168.00 $ 168.00 $ 168.00 $ 168.00 $ 168.00 $ 168.00 $ 168.00 $ 168.00 $ 168.00 $ 168.00 $ 2,016 2100 @.08 Check Sorting $ 33.80 $ 33.80 $ 33.80 $ 33.80 $ 33.80 $ 33.80 $ 33.80 $ 33.80 $ 33.80 $ 33.80 $ 33.80 $ 33.80 $ 406 1 @$33.80 NSF checks $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 240 1 @20.00 Stop payment $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 20.00 $ 240 1 @20.00 Wire Transfer $ 30.00 $ 30.00 $ 30.00 $ 30.00 $ 30.00 $ 30.00 $ 30.00 $ $ 30.00 $ 30.00 $ 30.00 $ 30.00 $ 360 2 @15.00 Special Handling $ - $ - $ - $ - $ - $ - $ - $ $ - $ - $ - $ - $ - Payroll fee $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ q6.O $ 50.00 $ 50.00 $ 50.00 $ 50.00 $ 600 2 @25.00 Payroll Changes $ 0.16 $ 0.16 $ 0.16 $ 0.16 $ 0.16 $ 0.16 $ 0.16 $ $ 0.16 $ 0.16 $ 0.16 $ 0.16 $ 2 2 @.08 Payroll Item Charge $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ 6.00 $ $ 6.00 $ 6.00 $ 6.0 0 $ 6.00 $ 72 75 @.08 Payroll Setup Chg $ 100.00 $ 100 one -time Total Monthly chgs $ 515.71 $ 415.71 $ 415.71 $ 415.71 $ 415.71 $ 415.71 $ 415.71 $ 415.71 $ 415.71 $ 415.71 $ 415.71 $ 415.71 $ 5,089' Earnings Credit rate 5.65% 5.68% 5.73% 5.70% 5.68% 5.46% 5.46% 5.40% 5.25% 5.29% 5.25% 5.25% 5.48% (ave) Bal. req for act chgs . $ 171,701 $ 147,585 $ 146,733 $ 147,242 $ 147,585 $ 151,516 $ 151,516 $ 152,644 $ 155,577 $ 154,779 $ 155,577 $ 155,577 $ 153,169 (ave) includes $50k float Avail for sweep $ 728,299 $ 752,415 $ 753,267 $ 752,758 $ 752,415 $ 748,484 $ 748,484 $ 747,356 $ 744,423 $ 745,221 $ 744,423 $ 744,423 $ 746,831 (ave) U.S Govt MM rate 5.30% 5.82% 5.86% 5.81% 5.90% 5.74% 5.53% 5.47% 5.42% 5.41% 5.49% 5.49% 5.60% (ave) Gross earnings $ 3,216.65 $ 3,649.22 $ 3,678.45 $ 3,644.60 $ 3,699.38 $ 3,580.25 $ 3,449.26 $ 3,406.70 $ 3,362.31 $ 3,359.71 $ 3,405.73 $ 3,405.73 $ 41,858 Cash Sweep fee $ 1,869.85 $ 1,864.30 $ 3,734. Net Earnings: $ 38,124 Total earnings (incl Svice Charges earned): 1 $ 43,212 M M M M M S; 2 i z Page 1 YM M m m m m •� Sheet2 Page 1 Money market choices JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV AVERAG Fed Prime Obligation 5.42% 5.75% 5.81% 5.76% 5.81% 5.67% 5.52% 5.48% 5.44% 5.40 5.39% 5.59% Financial Square Govt 5.30% 5.82% 5.86% 5.81% 5.90% 5.74% 5.53% 5.47% • 5.42% 5.41% 5.49% 5.61% GS ILA US Treas. 5.39% 5.52% 5.60% 5.62% 5.57% 5.47% 5.36% 5.26% 5.10% 4.99% 5.01% 5.35% 3 MO T -BILL RATE 1 5.65% 5.68% 5.73% 5.70% 5.68% 5.46% 5.46% 5.40% 5.25 5.29% 5.35% 5.51% Page 1 11/21/95 11:00 RICHFIELD BANK i 612 937 5739 NIEMORANDUM TO: PAM SNELL, CITY OF CfIANHASSEN FROND- KEVIN KA.UI-MAN, RIC- UFTELD BANK & !RUST Co. DATE: Nov ember 21 1 995 SUBJECT: ACCOUNT ANALYSTS Please find attached a eapy of an account analysis for the month of O over the past year ctobcr as ell as a history As you can see this account generated $621.04 of eaznin �s leaving an excess of $368,45 b credit against $2i2,59 of charges `THE EAR NI T INGS CREDI IS CALCULATED AS FOLLOIUS: Net Investable Balance tunes Oct. Earnings Credit Rate $ 30 6,074.82 times days of positive 1 6,191.36 Available Balance /365 1— 4_ $ 62I.04 In this case, the account had a positive available balance led rer - t g IToat) in only 14 of 31 days. The N et Investable Balance is calculated by taking Average Available rese'ves. S a►lable Bah minus z a N0. 761 LJ 11/21/95 11:01 RICHFIELD BANK 4 612 937 5739 'OIiA Acc Avq Ledger Balance'. 504,053.82 41564.73 Month /Year' hays This Month; OCT'95 � Aver.rage Month for the pastt„ 1 Month......3 Months.....96 Months.,,..122 Months , Avg Ledger Balance: 504053.82 562,057.70 523.,889.24 4811871.`72 Avg Available Balrancet 4 ?,7/119.33 :. 30,897.86. _ -.59.r0b7.77 . Net Tnvestable BalariGet 306 256,6 97,53 203,671.03 194,806.13 Earnings Credit: 6' 1,04 523.34 438833 455,96 Overdraft Charges: 400. .00 400 .00 Addenda Charges/ Ttem Chargest +00 217.5sl .00 2 '00 196404 .00 187, Other Charges /Creditst 35,01 913.79 103.94 101.56 Net This Month; Avail Balancelf 368.4,15 313 2;00 40 266/552,95 138.35 109 ,611.50 167.28 196.897,49._ Excess Number of CREDITS 41 - 45 43 _._ 41 Number of DEBITS', 17131 1 1,049 996 9 Number of EFT; 11 1.0 1,0 0 0 Number of ATM /FXF T; 0 I I t 12 0 11,110 1,075 1 Nl xlher of D F TgIIS'. 70 74 73 68 Number of CREDITS: 26 14 13 11. Number of On Ust 0 0 0 Number of Clearing t 0 279 .269 259 260 Numfi►er of Trtinsit1 Avq Ledger Balance'. 504,053.82 41564.73 Month /Year' hays This Month; OCT'95 � Avg Avail Bnlancet Avg Positive Led9ert 6519965.73 Trays Positive Ledger► 2 ' Avy Positive Avnilable; Avg Negative L.edgert 371.v271.+79 876 Da'Ys P00tive Available' Trays Negative Ledger' 14 3 Avq Naclrativf? Ave"il bleu 297,39 ",52 - D-IYS Neyattive Ave iI4ble; Net Investable B 306 Required R eser ves; / ,Vl+ "ef 65096t aI Earnings Creditt 621,04 Number of CREDITS -4 41 Overdraft Charge! .00 dumber of DEBITS' tr182 Overdraft, Avail Chgrge: + 00 Nu mber of EFT' 12 Addenda Ch+argest ,00 dumber of ATM /CXP Tt 0 ' Addende Credi.tst .00 Numbs ;r of DEBT.TS 1721? - Item Charaest 217.58 Number of CREDITS! 70 ' FDIC Charcle Service CI F-iid t 20.01. +00 Number of On Us! Number of Clearing t V 0 Mai 1.5;+00 Number of Tmnsit+4 0 .19 Tnterest Earned* .00 Number of Spec On Ust 0 ilei Thi.cs Month*, 368.45 Number of Spec Cle 0 ' Exl:fxsts Nvtail Valance; 313 Number of 'Spec Tri�ns:itt 0 1,948 Chanhassen State Bank Richfield Average Daily Balance 900,000 900,000 Average Float (50,000) (50,000) 850,000 850,000 Federal Reserve Required (90,000) (15,317) 760,000 834,683 Minimum Balance (45,000) (87,852) Amount Available for Investment 715,000 746,831 Interest Earnings @ 5.61% 40,112 41,897 Sweep Fee 0 (3,734) 40,112 38,163 1,948 CENTURY BANK ' November 17, 1995 ' City of Chanhassen 690 Coulter Dive P.O. Box 147 Chanhassen, MN 55317 ' To Whom It May Concern: 1 Thank you for the opportunity to bid to be the official depository of the City of Chanhassen. Unfortunately, due to the inability to provide up to $6 million in collateral to secure, the city's deposits, we will not be bidding to be ' Chanhassen's primary depository. However, we would greatly appreciate the opportunity to serve 1 as a secondary depository for the City of Chanhassen. We have $2 million in available collateral to secure any such deposits, and would pay interest on these deposits at the previous three month auction average for 90 day Treasury 1 Bills. I The account would essentially be structured as a money market account with no minimum balance requirements and no fees or service charges for the wiring or transfer of funds. ' Peter Bridston at 474 -3200 will be available from 2:00 4:00 p.m. today to answer any questions regarding this counter proposal. Thank you again for your consideration. ' sincirel , ' Peter Bridston President Century Bank Chanhassen 1 11455 Viking Drive • Eden Prairie, Minnesota 55344 -7247 • 612/943 -2300 • FAX 612/943 -2020 3500 129th Avenue N.W. • Coon Rapids, Minnesota 55448 • 612/421 -2044 • FAX 612/421 -2601 900 W. 78th Street • Chanhassen, Minnesota 55317 - 1068.612/474 -3200 • FAX 612/474 -2447 � Aamericana community bank ' Dear Don: Thank you for giving us the opportunity to submit a proposal to be ' the official depository for the City of Chanhassen. We believe we are capable of handling the City's account and I know your people will enjoy the "down to earth" service they will receive here at Americana Community Bank. Don, in reviewing the proposal form, I noted a statement in the Collateral Requirements section that Performance bonds are not acceptable collateral. If you recall when we discussed the City's account last year, we would want to provide a Bank Deposit Guaranty Bond to the City as collateral. Will this be considered acceptable collateral? Also, we do not have safe deposit boxes. Will this prevent us from obtaining the ' City's account by itself? Please contact James Haugen here at the Bank with your response ' to these questions as soon as possible next week so we can determine if we want to submit a proposal. Thank you. ' Sincerely, ' Randall P Schultz President ' P.S. I am submitting with this letter information on Bank Deposit Guaranty Bonds. 600 west 79th street • chanhassen, mn 55317 * 612 - 937 -9596 November 13, 1995 ' Don Ashworth City of Chanhassen 690 Coulter Drive ' Chanhassen MN 55317 ' Dear Don: Thank you for giving us the opportunity to submit a proposal to be ' the official depository for the City of Chanhassen. We believe we are capable of handling the City's account and I know your people will enjoy the "down to earth" service they will receive here at Americana Community Bank. Don, in reviewing the proposal form, I noted a statement in the Collateral Requirements section that Performance bonds are not acceptable collateral. If you recall when we discussed the City's account last year, we would want to provide a Bank Deposit Guaranty Bond to the City as collateral. Will this be considered acceptable collateral? Also, we do not have safe deposit boxes. Will this prevent us from obtaining the ' City's account by itself? Please contact James Haugen here at the Bank with your response ' to these questions as soon as possible next week so we can determine if we want to submit a proposal. Thank you. ' Sincerely, ' Randall P Schultz President ' P.S. I am submitting with this letter information on Bank Deposit Guaranty Bonds. 600 west 79th street • chanhassen, mn 55317 * 612 - 937 -9596