2. Update on 1994 Bond Sales, Dave MacGillivrary, Springsted Corporation0
CITY OF �
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 • FAX (612) 937 -5739
' MEMORANDUM
TO: Mayor and City Council
' FROM: Don Ashworth, City Manager
DATE: January 19, 1994
SUBJ: Update on the 1994 Bond Sale, Dave MacGillivrary, Springsted Corporation
Approximately one month ago the City Council *kted to set February 28 as the official date to
' consider selling refunding bonds of 1994. Six candidate issues were presented with the intent
being to have staff finalize the calculations asspcia�l with each of those issues and present back
to the City Council those issues providing the greatest savings and best meeting city needs. Staff
' has completed that process and Dave MacGillivrary will be present Monday evening to present
the details associated with the four candidate issues, proposed for refunding in 1994. Total
savings are anticipated to approximate $500,000. Monday's action will be to officially confirm
' the city council's action of December 13 1993 (see attached resolution). All four resolutions are
the same with the exception of the amounts.
[Note: For those considering municipal finance similar to watching the grass grow, quit reading
this memorandum.]
' Municipal refunding is significantly different than refinancing your home. Although you don't
have points or penalties associated with .4 I municipal, refunding, you must match, exactly, each
' existing bond maturity with an existing federally secureii promussory note, a .treasury bill, Fanny
Mae, Ginny Mae, 'etc The treasury bills or other securities are then 'placed .ail a third party
escrow so as to ensure that when,each of the existing bond issues matures that the maturing
treasury bill and its future interest earnings can be used t4 ,pay the thaturing principal and interest
payment of the city's existing bond issue. Again;' the securities placed in the escrow account
cannot have a yield greater than the future interest that is to be paid on existing bonds. The
savings to the city comes from the fact that the new bonds proposed to be sold will have a net
interest rate lower than the existing. However, there are a whole host of federal laws regulating
the way in which the new issue is structured, not least of which is the recognition that the new
issue should be structured to recognize the city's current long range financial position so as to
take peaks and valleys out of future property tax levies or to recognize modifications that
occurred to special assessment schedules, collections, interest earnings, etc. Dave MacGillivrary,
2
Mayor and City Council
January 19, 1994
' Page 2
an ex- finance officer himself, and I thoroughly enjoy debating the pros and cons of how each of
' the refundings should be restructured. I can honestly state that I have at least 100 hours into the
proposed refundings and that the issues we will bring before you have significant benefits to the
city, more so than the $500,000 in current dollar savings. I should also recognize the efforts of
Holmes and Graven (Ron Batty) who typically becomes the sole victim of the
Ashworth /MacGillivrary tag team tandem. Funding for the county road program would not have
been a reality without Ron's assistance - -a program valued at $16 million. I firmly believe that
' the slogan, "Let your money work for you so that you don't have to work for it," is a principle
by which we have operated for many years and, with the help of good professionals such as
Springsted and Holmes and Graven, that we will be able to continue this virtue into the future.
' If you haven't guessed by now, municipal finance is an arena where I really get my jollies.
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S AmPr c
Extract of Minutes of Meeting
of the City Council of the City
of Chanhassen, Carver and Hennepin Counties, Minnesota
Pursuant to due call and notice thereof a regular meeting of the City Council
of the City of Chanhassen, Carver and Hennepin Counties, Minnesota, was held at
the City Hall in the City on Monday, January 24, 1994, commencing at 7:30 P.M.
The following members of the Council were present:
and the following were absent:
* **
The following resolution was presented by Councilmember who
moved its adoption:
RESOLUTION NO.
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF APPROXIMATELY $5,570,000 GENERAL OBLIGATION
IMPROVEMENT REFUNDING BONDS, SERIES 1994A
BE IT RESOLVED By the City Council of the City of Chanhassen, Carver and
Hennepin Counties, Minnesota (City) as follows:
1. It is hereby determined that:
(a) the City is authorized by the provisions of Minnesota Statutes,
Chapter 475 (Act) and Section 475.67, Subdivision 13 of the Act to issue and
sell its general obligation bonds to refund outstanding bonds when determined
by the City Council to be necessary and desirable;
DJX64377
CE135 -26
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(b) it is necessary and desirable that the City issue approximately
$5,570,000 General Obligation Improvement Refunding Bonds, Series 1994A
( Bonds) to refund in advance of maturity and at their redemption date,
certain outstanding general obligations of the City;
(c) the outstanding bonds to be refunded (Refunded Bonds) consist
' of the $6,650,000 General Obligation Improvement Bonds, Series 1989A, dated
December 1, 1989, of which $5,750,000 in principal amount is callable on
February 1, 1995.
' 2. To provide monies to refund in advance of maturity the Refunded
Bonds, the City will therefor issue and sell Bonds in the amount of $5,531,010, In
order to provide in part the additional interest required to market the Bonds at this
' time, additional Bonds will be issued in the amount of $38,990. The excess of the
purchase price of the Bonds over the sum of $5,531,010 will be credited to the debt
service fund for the Bonds for the purpose of paying interest first coming due on
such additional Bonds. The Bonds shall be issued, sold and delivered in accordance
with the terms and conditions of the following Official Terms of Proposal:
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CH135 -26
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THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
The Bonds will be general obligations of the City for which the City will pledge its full faith and '
credit and power to levy direct general ad valorem taxes. In addition the City will pledge
special assessments against benefited properties. The proceeds will be used to refund in
advance of maturity the 1996 through 2002 maturities of the City's General Obligation
Improvement Bonds, Series 1989A, dated December 1, 1989. '
$5,570,000*
CITY OF CHANHASSEN, MINNESOTA
'
GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS,
SERIES 1994A
Proposals for the Bonds will be received on Monday, February 28, 1994, until 11:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
'
of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
'
The Bonds will be dated March 1, 1994, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1995. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will be
issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the
purchaser, and fully registered as to principal and interest. Principal will be payable at the main
corporate office of the registrar and interest on each Bond will be payable by check or draft of
the registrar mailed to the registered holder thereof at the holder's address as it appears on the
books of the registrar as of the close of business on the 15th day of the immediately preceding
month.
'
The Bonds will mature February 1 in the years and amounts as follows:
1996 $740,000 1999 $845,000 2001 $910,000
'
1997 $750,000 2000 $875,000 2002 $665,000
1998 $785,000
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
'
principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total
amount not to exceed $100,000 and will be made in multiples of $5,000 in any. of the maturities. In the
event the principal amount of the Bonds is increased or reduced, any premium offered or any
'
discount taken will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Bonds is increased or reduced.
OPTIONAL REDEMPTION
'
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
'
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and '
credit and power to levy direct general ad valorem taxes. In addition the City will pledge
special assessments against benefited properties. The proceeds will be used to refund in
advance of maturity the 1996 through 2002 maturities of the City's General Obligation
Improvement Bonds, Series 1989A, dated December 1, 1989. '
TYPE OF PROPOSALS
Proposals shall be for not less than, $5,531,01O accrued interest on the total principal
amount of the Bonds. Proposals shall be accomanied 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 $55,700,
' 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
adjourned, ,
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
t maturity shall bear a single rate from the date of the Bonds to the date of maturity. No
conditional proposals will be accepted.
' AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non - substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (iii) reject any proposal which the City determines to have failed to comply
with the terms herein.
' BOND INSURANCE AT PURCHASER'S OPTION
' If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
' insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
t 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.
REGISTRAR
I The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
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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 Holmes & Graven,
Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of
customary closing papers, including a no- litigation certificate. On the date of settlement
payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at '
the offices of the City or its designee not later than 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.
OFFICIAL STATEMENT
'
The City has authorized the preparation of an Official Statement- containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly -final Official
Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission.
,
For copies of the Official Statement or for any additional information prior to sale, and
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 200 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 January 24, 1994 BY ORDER OF THE CITY COUNCIL
'
/s/ Donald W. Ashworth
City Manager
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3. Springsted Incorporated is authorized and directed to negotiate the
Bonds in accordance with the foregoing Terris of Proposal. The City Council will
meet at 7:30 p.m. on Monday, February 28, 1994, to consider proposals on the Bonds
and take any other appropriate action with respect to the Bonds .
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember , and upon vote being taken thereon the following
members voted in favor of the motion:
and the following voted against:
whereupon the resolution was declared duly passed and adopted.
DJK64377
08135 -26
STATE OF MINNESOTA )
COUNTIES OF CARVER )
AND HENNEPIN )
CITY OF CHANHASSEN )
I, the undersigned, being the duly qualified and acting Manager of the City
of Chanhassen, Minnesota, hereby certify that I have carefully compared the
attached and foregoing extract of minutes of a regular meeting of the City Council
of the City held on Monday, January 24, 1994, with the original minutes on file in my
office and the extract is a full, true and correct copy of the minutes, insofar as they
relate to the issuance and sale of approximately $5,570,000 General Obligation
Improvement Refunding Bonds, Series 1994A of the City.
WITNESS My hand as City Manager and the corporate seal of the City this
day of , 1994.
City Manager
City of Chanhassen, Minnesota
(SEAL)
DJK64377
CE135 -26
SPRINGSTED
L
January 19, 1994
Mr. Donald Ashworth, City Manager
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317 -0147
120 South Sixth Street
Suite 2507
Minneapolis, MN 55402 -1800
(612) 333.9177
Fax: (612) 349 -5230
16655 West Bluemound Road
Suite 290
Brookfield, WI 53005 -5935
(414) 782 -8222
Fax: (414) 782 -2904
6800 College Boulevard
Suite 600
Overland Park, KS 66211 -1533
(913) 345.8062
Fax: (913) 345 -1770
1800 K Street NW
Suite 831
Washington, DC 20006 -2200
(202) 466 -3344
Fax: (202) 223 -1362
Re: Recommendations for the Issuance of
$5,570,000 General Obligation Improvement Refunding Bonds, Series 1994A
$1,665,000 General Obligation Improvement Refunding Bonds, Series 1994B
$1,170,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 1994C
$525,000 General Obligation Tax Increment Refunding Bonds, Series 1994D
Dear Mr. Ashworth:
We have enclosed 12 copies of our recommendations for the above captioned issues for
distribution to City Council members and staff prior to your meeting on January 24, 1994.
If you should have any questions pertaining to these recommendations, or if you require
additional copies, please do not hesitate to contact us.
Sincerely,
7
Paul R. Donna
Financial Analyst
Enclosures
PUBLIC FINANCE ADVISORS
Home Office
85 East Seventh Place
Suite 100
'
Saint Paul, MN 55101.2143
(612) 223 -3000
Fax: (612) 223 -3002
L
January 19, 1994
Mr. Donald Ashworth, City Manager
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317 -0147
120 South Sixth Street
Suite 2507
Minneapolis, MN 55402 -1800
(612) 333.9177
Fax: (612) 349 -5230
16655 West Bluemound Road
Suite 290
Brookfield, WI 53005 -5935
(414) 782 -8222
Fax: (414) 782 -2904
6800 College Boulevard
Suite 600
Overland Park, KS 66211 -1533
(913) 345.8062
Fax: (913) 345 -1770
1800 K Street NW
Suite 831
Washington, DC 20006 -2200
(202) 466 -3344
Fax: (202) 223 -1362
Re: Recommendations for the Issuance of
$5,570,000 General Obligation Improvement Refunding Bonds, Series 1994A
$1,665,000 General Obligation Improvement Refunding Bonds, Series 1994B
$1,170,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 1994C
$525,000 General Obligation Tax Increment Refunding Bonds, Series 1994D
Dear Mr. Ashworth:
We have enclosed 12 copies of our recommendations for the above captioned issues for
distribution to City Council members and staff prior to your meeting on January 24, 1994.
If you should have any questions pertaining to these recommendations, or if you require
additional copies, please do not hesitate to contact us.
Sincerely,
7
Paul R. Donna
Financial Analyst
Enclosures
' Recommendations
For
City of Chanhassen, Minnesota
' $5,570,000
General Obligation Improvement Refunding Bonds,
' Series 1994A
$1,665,000
General Obligation Improvement Refunding Bonds,
Series 1994B
$1,170,000
Taxable General Obligation Tax Increment Refunding Bonds,
! Series 1994C
$525,000
' General Obligation Tax Increment Refunding Bonds,
Series 1994D
' Study No. CO236131 S1 T1
SPRINGSTED Incorporated
January 19, 1994
Re: Recommendations for the Issuance of
' $5,570,000 General Obligation Improvement Refunding Bonds, Series 1994A
$1,665,000 General Obligation Improvement Refunding Bonds, Series 1994B
$1,170,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 1994C
$525,000 General Obligation Tax Increment Refunding Bonds, Series 1994D
Introduction
We respectfully request your consideration of our recommendations for the issuance of the
above - referenced bonds in accordance with the attached 'Terms of Proposals." We are
' recommending separate bond issues because of the statutory authorizations and individual
dating schemes involved. These recommendations will discuss the finance plan for the issues
and then address items common to all issues.
' The Series 1994A Bonds are being issued to advance refund an outstanding improvement
bond issue of the City's to achieve interest cost savings. Although the Series 1994B Bonds,
Series 1994C Bonds and Series 1994D Bonds are also refundings, interest cost savings is an
added benefit. The underlying purpose of these bond issues is to extend the original debt that
is being refunded. The extension of debt service was at the request of City staff in order to
maximize the cash flow for Tax Increment District No. 1. Pursuant to current statutory
provisions, increment from this district for new debt issued after April, 1990 cannot be collected
after April 1, 2001. However, there is a provision in the Statute that allows increment to be
collected only for debt service if the new issue is a refunding issue and the average maturity of
the refunding issue does not exceed that of the bonds being refunded. These refunding meet
that test.
For all four issues, we are recommending "crossover" refundings. You will recall from prior
issues, a crossover refunding is a mechanism whereby only the callable bonds of an issue are
refinanced at lower interest rates. The City will continue to pay principal and interest on the
non - callable bonds until the call date. At this time, the escrow account, which is funded
' primarily from bond proceeds, matures and pays off the callable bonds. Subsequently, the City
will then start to pay principal and interest on the new bonds. We note that during the period of
SPRINGSTED
120 South Sixth Street
Suite 2507
PUBLIC FINANCE ADVISORS
Minneapolis, MN 55402 -1800
(612) 333 -9177
Fax: (612) 349 -5230
Home Office
85 East Seventh Place
Suite 100
16655 West Bluemound Road
Saint Paul, MN 55101 -2143
Suite 290
Brookfield, WI 53005 -5935
(612) 223 -3000
(414)
Fax: (612) 223 -3002
782-
Fax: (414) ) 782 -2904
'
6800 College Boulevard
Suite 600
Overland Park, KS 66211 -1533
(913) 345 -8062
'
Fax: (913) 345 -1770
January 19, 1994
1800 K Street NW
Suite 831
Washington, DC 20006 -2200
(202) 466 -3344
Fax: (202) 223 -1362
Mayor Don Chmiel
Members, City Council
'
Mr. Donald Ashworth, City Manager
City of Chanhassen
690 Coulter Drive
Chanhassen, MN 55317 -0147
Re: Recommendations for the Issuance of
' $5,570,000 General Obligation Improvement Refunding Bonds, Series 1994A
$1,665,000 General Obligation Improvement Refunding Bonds, Series 1994B
$1,170,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 1994C
$525,000 General Obligation Tax Increment Refunding Bonds, Series 1994D
Introduction
We respectfully request your consideration of our recommendations for the issuance of the
above - referenced bonds in accordance with the attached 'Terms of Proposals." We are
' recommending separate bond issues because of the statutory authorizations and individual
dating schemes involved. These recommendations will discuss the finance plan for the issues
and then address items common to all issues.
' The Series 1994A Bonds are being issued to advance refund an outstanding improvement
bond issue of the City's to achieve interest cost savings. Although the Series 1994B Bonds,
Series 1994C Bonds and Series 1994D Bonds are also refundings, interest cost savings is an
added benefit. The underlying purpose of these bond issues is to extend the original debt that
is being refunded. The extension of debt service was at the request of City staff in order to
maximize the cash flow for Tax Increment District No. 1. Pursuant to current statutory
provisions, increment from this district for new debt issued after April, 1990 cannot be collected
after April 1, 2001. However, there is a provision in the Statute that allows increment to be
collected only for debt service if the new issue is a refunding issue and the average maturity of
the refunding issue does not exceed that of the bonds being refunded. These refunding meet
that test.
For all four issues, we are recommending "crossover" refundings. You will recall from prior
issues, a crossover refunding is a mechanism whereby only the callable bonds of an issue are
refinanced at lower interest rates. The City will continue to pay principal and interest on the
non - callable bonds until the call date. At this time, the escrow account, which is funded
' primarily from bond proceeds, matures and pays off the callable bonds. Subsequently, the City
will then start to pay principal and interest on the new bonds. We note that during the period of
u
City of Chanhassen, Minnesota
January 19, 1994
time the new bonds are outstanding through the call date, the escrow account will pay the
interest on those new obligations.
' $5,570,000 General Obligation Improvement Refunding Bonds, Series 1994A
(the "Series 1994A Bonds ")
Finance Plan
On December 1, 1989, the City issued $6,650,000 General Obligation Improvement Bonds,
Series 1989A (the "1989A Bonds ") to finance improvements located within the City's Tax
Increment Financing District No. 1. The debt service on the 1989A Bonds is payable from a
combination of special assessments, tax increment income and property tax collections.
There remains outstanding $5,750,000 of debt of which the 1996 through 2002 maturities,
' totaling $5,450,000, are eligible for call on February 1, 1995. The net effective rate on the
callable bonds is currently 6.31 %. Based on current market conditions, we estimate the City
could refund the callable portion of the 1989A Bonds at a net rate of 4.29 %. This refunding
results in a savings to the City, net of all costs of issuance, of $360,817. The present value of
that net savings is estimated to be $301,343.
' Refunding Analysis
We have attached as Appendix I the analytical summary of this refunding. The existing debt
service of the 1989A Bonds is provided in Schedule A, and Schedule B indicates the amount of
principal of the callable maturities that will be refunded on February 1, 1995, at a price of par.
This amount will be paid from bond proceeds invested in the escrow account. The payments
that the City will continue to make on the 1989A Bonds until the crossover date are shown in
' Schedule C. Schedule D is the proposed debt schedule for the new Series 1994A refunding
bonds, and Schedule E indicates the estimated annual savings which the City will realize
beginning in 1996 on the 1994 levy.
' $1,665,000 General Obligation Improvement Refunding Bonds, Series 1994B
(the "Series 1994B Bonds ")
' Finance Plan
On November 1, 1988, the City issued $4,185,000 General Obligation Improvement Bonds of
1988 (the "1988 Bonds ") to finance improvements located within the City's Tax Increment
Financing District No. 1. The debt service on the 1988 Bonds is payable from a combination of
special assessments, tax increment revenue and property tax collections.
There remains outstanding $2,600,000 of debt which the 1996 through 2002 maturities, totaling
$1,625,000, are eligible for call on November 1, 1995. The net effective rate on the callable
bonds is currently 6.59 %. With the objective being to extend the collection of tax increment
revenues, the new refunding issue increases the term to 2004 from 2003. Based on current
market conditions, we estimate the City could refund the callable portion of the 1988 Bonds at
' a net rate of 4.09 %. This refunding results in a savings to the City, net of all costs of issuance,
of approximately $64,557. The present value of that net savings is estimated to be $57,089.
The savings figures would be greater, if not for the extension of the term.
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- City of Chanhassen, Minnesota
January 19, 1994
Refunding Analysis
Appendix II is the analytical summary of this refunding. The existing debt service of the 1988
Bonds is provided in Schedule A, and Schedule B indicates the amount of principal of the
callable maturities that will be refunded on November 1, 1995, at a price of par. This amount
will be paid from bond proceeds invested in the escrow account. The payments that the City
will continue to make on the 1988 Bonds until the crossover date are shown in Schedule C.
Schedule D is the proposed debt schedule for the new Series 1994B refunding bonds and
Schedule E compares the existing debt service of the 1988 Bonds to the proposed new debt
service.
$1,170,000 Taxable General Obligation Tax Increment Refunding Bonds
(the "Series 1994C Bonds ")
Finance Plan
On September 1, 1988, the City issued $1,775,000 Taxable General Obligation Tax Increment
Bonds of 1988 (the 'Taxable 1988 Bonds ") to finance improvements located within the City's
Tax Increment Finance District No. 1. The debt service on the Taxable 1988 Bonds is payable
from tax increment revenues. There remains outstanding $1,450,000 of debt of which the 1996
' through 2000 maturities, totaling $1,100,000, are eligible for call on November 1, 1995. The net
effective rate on the callable bonds is currently 9.31%. Again, with the objective being to
extend the collection of tax increment revenues, this new refunding issue increases the term to
2003 from 2000. Based on current market conditions, we estimate the City could refund the
' callable portion of the Taxable 1988 Bonds at a net rate of 5.81 %. This refunding results in a
savings to the City, net of all costs of issuance, of approximately $42,720. The present value of
that net savings is estimated to be $38,399. The savings figures would be greater, if not for the
extension of the term.
Refunding Analysis
Appendix III is the analytical summary of this refunding. The existing debt service of the
Taxable 1988 Bonds is provided in Schedule A, and Schedule B indicates the amount of
principal of the callable maturities that will be refunded on November 1, 1995, at a price of par.
' This amount will be paid from bond proceeds invested in the escrow account. The payments
that the City will continue to make on the Taxable 1988 Bonds until the crossover date are
shown in Schedule C. Schedule D is the proposed debt schedule for the new Series 1994C
' refunding bonds and Schedule E compares the existing debt service of the Taxable 1988
Bonds to the proposed new debt service.
$525,000 General Obligation Tax Increment Refunding Bonds, Series 1994D
(the "Series 1994D Bonds ")
Finance Plan
Also on November 1, 1988, the City issued $740,000 General Obligation Tax Increment Bonds
of 1988, Series 2 (the 1988 -2 Bonds ") to finance improvements located within the City's Tax
Increment Financing District No. 1. The debt service on the 1988 -2 Bonds is payable from tax
increment revenue.
There remains outstanding $550,000 of debt of which the 1995 through 2001 maturities,
totaling $500,000, are eligible for call on November 1, 1994. The net effective rate on the
callable bonds is currently 6.65 %. Based on current market conditions, we estimate the City
Page 3
I'
City of Chanhassen, Minnesota
January 19, 1994
could refund the callable portion of the 1988 -2 bonds at a net rate of 4.26 %. This refunding
results in a savings to the City, net of all costs of issuance, of approximately $24,498. The
present value of that net savings is estimated to be $22,761.
' Refunding Analysis
Appendix IV is the analytical summary of this refunding. The existing debt service of the 1988 -2
Bonds is provided in Schedule A, and Schedule B indicates the amount of principal of the
callable maturities that will be refunded on November 1, 1994, at a price of par. This amount
will be paid from bond proceeds invested in the escrow account. The payments that the City
will continue to make on the 1988 -2 Bonds until the crossover date are shown in Schedule C.
' Schedule D is the proposed debt schedule for the new Series 1994D refunding bonds and
Schedule E compares the existing debt service of the 1988 -2 Bonds to the proposed new debt
service.
' Common to All Issues
' Principal Variability
Included in the principal amounts of each issue are provisions for rating fees, escrow agents,
' underwriter's discount, CPA verification fees and all other costs of issuance. All savings
estimates are net of these costs. To account for the actual fees and costs of issuance, which
may differ from the assumptions made in these recommendations, we have included a
provision in each offering to permit the City to increase or reduce the principal in any of the
maturities to offset any fluctuation in a total amount not to exceed $100,000, $25,000, $25,000
and $10,000 for the Series 1994A, 1994B, 1994C, and 1994D Bonds, respectively. As interest
rates fluctuate, the amounts of money needed in the escrow accounts also fluctuate. As is our
usual procedure, we will make all arrangements for the acquisition of the appropriate securities
for the escrow account.
' Allowance for Discount
Included in the principal amount of each issue is a provision for discount bidding. The
discount, representing $7 per $1,000 of bonds issued for the Series 1994A Bonds, $8 per
' $1,000 of bonds for the Series 1994B Bonds, and $10 per $1,000 of bonds for both the
Series 1994C Bonds and 1994D Bonds, provides the underwriters with all or part of their
compensation and /or working capital for purchasing the respective issues and permits them to
reoffer the issues at or close to the interest rates bid, which results in lower interest rates to the
City. This has proven successful in past issues for the City, and we recommend its use herein.
' Credit Rating
In order to maintain the City's current "Baal" rating from Moody's Investors Service, it is
necessary that an application be made to Moody's for a rating on these issues. We will provide
' the rating agencies with the necessary data upon which they will make their rating analysis and
make the application on your behalf.
Federal Arbitrage Rebate
These issues are subject to the Tax Reform Act of 1986 and 1989 amendments concerning
requirements for rebating arbitrage earnings to the Treasury. Generally speaking, all arbitrage
profits (the yield difference between the earnings on the investments and the yield on the
bonds) must be rebated to the Treasury. The City will not owe any rebate from investments of
Page 4
r
�- City of Chanhassen, Minnesota
January 19, 1994
bond proceeds because the proceeds will be invested in securities at a yield less than the new
refunding bond yield, thus creating no arbitrage.
In addition, a 1993 change in the arbitrage regulations will require special attention be paid to
the accumulation and investment of monies in the debt service funds. Investments of funds
which exceed a bona fide fund level will have to be restricted to the yield of the bonds.
A bona fide debt service fund is defined as a fund which is used to achieve a proper matching
of revenues with principal and interest payments within each bond year and is depleted at least
once each bond year except for a reasonable carryover amount which may not exceed the
greater of:
' 1. The earnings on the fund for the preceding bond year; or
2. One - twelfth of the principal and interest payments on the issue for the immediately
preceding bond year.
Any earnings from a bona fide debt service fund are exempt from rebate.
Amounts in a debt service fund in excess of the amount of a bona fide debt service fund are
restricted to an investment rate equal to or less than the bond yield and may be invested in
market rate obligations, if their yield is at or below the bond yield; in specially restricted State
and Local Government Securities (SLGS) issued by the U.S. Treasury, or eligible tax exempt
obligations.
A debt service fund can lose its bona fide status if an issuer accumulates excess revenues,
including investment earnings. It is important to monitor the funds to assure compliance with
the new regulations.
' Federal Arbitrage - Economic Life
' The 1993 "final" arbitrage regulations brought all tax- exempt issues into the calculation of
"economic life." Previously, this requirement was only for private activity bonds. The intent of
this requirement is that the United States Treasury does not want bonds outstanding longer
than is necessary, thus creating more tax- exempt bonds in the marketplace than are needed.
' The general safe harbor for assuring that the bonds comply with the regulations is if the
average maturity of the bonds does not exceed 120% of the economic life of the financed
facilities.
The economic life for all improvements financed with the original issues is well within 120% of
the standard economic life of such improvements. Therefore, these issues comply with the
new United States Treasury regulations.
Bank Qualification
The Tax Reform Act also restricts the ability of banks to deduct tax- exempt interest as a
carrying expense under certain circumstances in calculating their tax liability. The Act allows
certain obligations to be qualified which can be included in a bank's calculations of interest
expense deduction. As the City does not expect to issue more than $10 million of tax- exempt
debt in 1994, these bonds will be "qualified obligations." The effect of this is that the bonds are
more attractive to financial institutions which creates greater competition and may lower the
interest rates. Typically, these "bank- qualified" bonds receive rates lower than bonds which are
not bank - qualified. We have taken this into consideration in our interest rate estimates.
Page 5
City of Chanhassen, Minnesota
January 19, 1994
The "Sure -Bid" program of guaranteeing delivery of a good faith check will again be offered to
prospective bidders, as it was in the City's last bond issue. We have allowed for its use in the
attached Terms of Proposals.
We recommend these bonds be offered for sale on Monday, February 28, 1994, with bids
received in the offices of Springsted Incorporated at 11:00 A.M. Subsequent to the receipt of
those bids, we will tabulate the proposals, calculate the refundings, and present the results to
the City Council for consideration of award at 7:30 P.M. that evening.
Respectfully submitted,
c: n c'G nOl a --
SPRINGSTED Incorporated
Page 6
APPENDIX I
City of Chanhassen, Minnesota
G.O. Refunding Bonds, Series 1994
Full Crossover Advance Refunding of
G.O. Improvement Bonds, Series 1989A
Even Annual Savings Structure
Issuer Funds Required: $0.00
Comparison:
Date of Bonds: 03/01/94
Refunding
Delivery Date: 03/29/94
5,450,000
Refunded Call Date: 02/01/95
Bond Years:
1 st Callable Date: 02/01/96
Comparison:
Refunded
Refunding
Principal:
5,450,000
5,570,000
Bond Years:
27,445.83
27,570.83
Avg. Maturity:
5.036
4.950
NIC:
6.319
4.299
Prepared: 01/13/94
By SPRINGSTED Incorporated
Page 7
I ty of Chanhassen
Minnesota
G.O. Improvement Bonds, Series 1989A
fisting Debt Service
I Date
Principal
Schedule A
Rate Interest
, 08/01/94
02/01/95
08/01/95
, 02/01/96
08/01/96
02/01/97
08/01/97
1 02/01/98
08/01/98
02/01/99
08/01/99
/01/2000
/01/2000
/01/2001
/01/2001
/01/2002
Totals
Bid Years:
Avg. Mat...
il
300,000.00
675,000.00
700,000.00
750,000.00
825,000.00
875,000.00
925,000.00
700,000.00
5,750,000.00
27,720.83
4.821
6.316%
6.000%
6.050%
6.100%
6.200%
6.250%
6.300%
6.400%
6.500%
179,712.50
179,712.50
170,712.50
170,712.50
150,293.75
150,293.75
128,943.75
128,943.75
105,693.75
105,693.75
79,912.50
79,912.50
52,350.00
52,350.00
22,750.00
22-, 750.00
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual
179,712.50
479,712.50
170,712.50
845,712.50
150,293.75
850,293.75
128,943.75
878,943.75
105,693.75
930,693.75
79,912.50
954,912.50
52,350.00
977,350.00
22,750.00
722,750.00
Annual
659,425.00
1,016,425.00
1,000,587.50
1,007,887.50
1,036,387.50
1,034,825.00
1,029,700.00
745,500.00
1,780,737.50 7,530,737.50 7,530,737.50
All lower calculations Refunded Bonds Only
are made from the date Avg. Mat..: 5.036
of the refunding bonds NIC ....... : 6.319
Page 8
I ty of Chanhassen, Minnesota
G.O. Improvement Bonds, Series 1989A
funded Principal and any Call Premium
Schedule B
' Date Principal Premium
02/01/95 5,450,000.00
Total
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual Annual
5,450,000.00 5,450,000.00
s 5,450,000.00 5,450,000.00 5,450,000.00
ill Date .............. 02/01/95 This ortion will be aid b the escrow.
P P y w. o
First Date Called.....: 02/01/96 The escrow will also pay the interest on
�11 Premium..........: the refunding bonds thru the call date.
Page 9
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual
179,712.50
479,712.50
Annual
659,425.00
o a s 300,000.00 359,425.00 659,425.00 659,425.00
A 11 Date .............: 02/01/95 This portion will be paid by the issuer.
rst Date Called.....: 02/01/96 The issuer will also pay debt service on
C 11 Premium..........: the refunding bonds after the call date.
Page 10
ity of Chanhassen, Minnesota
.O. Improvement Bonds, Series
1989A
�on-Refunded Principal and Non - Refunded Interest
Schedule C
' Date Principal
Interest
179,712.50
' 08/01/94
02/01/95 300,000.00
179,712.50
i
T t 1
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual
179,712.50
479,712.50
Annual
659,425.00
o a s 300,000.00 359,425.00 659,425.00 659,425.00
A 11 Date .............: 02/01/95 This portion will be paid by the issuer.
rst Date Called.....: 02/01/96 The issuer will also pay debt service on
C 11 Premium..........: the refunding bonds after the call date.
Page 10
ty of Chanhassen, Minnesota
O. Refunding Bonds, Series 1994
funding Debt Service
� I
Date Principal
02/01/95
1 08/01/95
02/01/96
08/01/96
02/01/97
08/01/97
02/01/98
i 08/01/98
02/01/99
08/01/99
02/01/2000
1 /01/2000
/01/2001
08/01/2001
/01/2002
ttals
I nd Years:
g. Mat...
C. ....
740,000.00
750,000.00
785,000.00
845,000.00
875,000.00
910,000.00
665,000.00
5,570,000.00
27,570.83
4.950
4.299
Rate
3.4500
3.700%
3.9000
4.0500
4.200%
4.350%
4.500%
Prepared: 01/13/94
By SPRINGSTED Incorporated
205,679.38
112,188.75
852,188.75
99,423.75
849,423.75
85,548.75
870,548.75
70,241.25
915,241.25
53,130.00
928,130.00
34,755.00
944,755.00
14,962.50
679,962.50
Interest Semi - Annual
205,679.38
112,188.75
112,188.75
99,423.75
99,423.75
85,548.75
85,548.75
70,241.25
70,241.25
53,130.00
53,130.00
34,755.00
34,755.00
14,962.50
14,962.50
1,146,179.38
* Paid by escrow.
All other payments
made by the issuer.
Schedule D
6,716,179.38
Bond Date..
Delivery..:
Bond Yield:
Annual
205,679.38
964,377.50
948,847.50
956,097.50
985,482.50
981,260.00
979,510.00
694,925.00
6,716,179.38
03/01/94
03/29/94
4.14154%
Page 11
i
ty of Chanhassen, Minnesota
.O. Refunding Bonds, Series 1994
Annual Savings Analysis
Prepared: 01/13/94
By SPRINGSTED Incorporated
� I
� I
Schedule E
Totals
659,425.00
6,510,500.00
7,169,925.00 7,530,737.50 360,812.50
Non - Refunded
Refunding
Total New
Existing
Savings
'
Date
Debt Service
Debt Service
Debt Service
Debt Service
or (Loss)
(1)
(
(3)
(4)
(5)
(6)
08/01/94
02/01/95
659,425.00
659,425.00
659,425.00
08/01/95
' 08/01/96
02/01/96
964,377.50
964,377.50
1,016,425.00
52,047.50
02/01/97
08/01/97
948,847.50
948,847.50
1,000,587.50
51,740.00
' 02/01/98
08/01/98
956,097.50
956,097.50
1,007,887.50
51,790.00
02/01/99
08/01/99
985,482.50
985,482.50
1,036,387.50
50,905.00
K /01/2000
/01/2000
981,260.00
981,260.00
1,034,825.00
53,565.00
02/01/2001
979,510.00
979,510.00
1,029,700.00
50,190.00
9 /01/2001
/01/2002
694,925.00
694,925.00
745,500.00
50,575.00
� I
� I
Totals
659,425.00
6,510,500.00
7,169,925.00 7,530,737.50 360,812.50
esent
Value Rate...:
4.14154%
Excess Proceeds....... 5.20
esent
Value Savings:
301,343.62
Funds to Sinking Fund:
As % of
P.V. Ref. D /S:
5.30%
Total Net Savings....: 360,817.70
Page 12
APPENDIX 11
City of Chanhassen, Minnesota
G.O. Refunding Bonds, Series 1994
t Full Crossover Advance Refunding of
G.O. Improvement Bonds of 1988
Extend Term to 11/01/04
Issuer Funds Required: $0.00
Comparison:
Refunded
Refunding
Principal:
Date of Bonds:
03101/94
Bond Years:
Delivery Date:
03/29/94
Avg. Maturity:
Refunded Call Date:
11/01/95
1
1 st Callable Date:
11/01/96
Comparison:
Refunded
Refunding
Principal:
1,625,000
1,665,000
Bond Years:
6,808.33
6,960.00
Avg. Maturity:
4.190
4.180
NIC:
6.590%1
4.095%
Prepared: 01/13/94
By SPRINGSTED Incorporated
Page 13
I ty of Chanhassen, Minnesota
G.O. Improvement Bonds of 1988
fisting Debt Service
Date Principal
Prepared: 01/13/94
By SPRINGSTED Incorporated
Schedule A
Rate Interest Semi - Annual
1
05/01/94
83,618.75
83,618.75
11/01/94
500,000.00
6.200%
83,618.75
583,618.75
I NTC .......•
05/01/95
68,118.75
68,118.75
11/01/95
475,000.00
6.300
68,118.75
543,118.75
05/01/96
53,156.25
53,156.25
11/01/96
475,000.00
6.400
53,156.25
528,156.25
05/01/97
37,956.25
37,956.25
11/01/97
475,000.00
6.500
37,956.25
512,956.25
05/01/98
22,518.75
22,518.75
11/01/98
400,000.00
6.600%
22,518.75
422,518.75
05/01/99
9,318.75
9,318.75
11/01/99
75,000.00
6.700
9,318.75
84,318.75
/01/2000
6,806.25
6,806.25
11/01/2000
75,000.00
6.750%
6,806.25
81,806.25
1 /01
/2001
4,275.00
4,275.00
/01/2001
75,000.00
6.800%
4,275.00
79,275.00
05/01/2002
1,725.00
1,725.00
1 /01/2002
50,000.00
6.900%
1,725.00
51,725.00
1
Annual
667,237.50
611,237.50
581,312.50
550,912.50
445,037.50
93,637.50
88,612.50
83,550.00
53,450.00
574,987.50 3,174,987.50 3,174,987.50
All lower calculations Refunded Bonds Only
are made from the date Avg. Mat..: 4.19
of the refunding bonds NIC.......c 6.590
Page 14
Totals
2,600,000.00
nd Years:
7,933.33
A g. Mat..:
3.051
I NTC .......•
6.545%
Annual
667,237.50
611,237.50
581,312.50
550,912.50
445,037.50
93,637.50
88,612.50
83,550.00
53,450.00
574,987.50 3,174,987.50 3,174,987.50
All lower calculations Refunded Bonds Only
are made from the date Avg. Mat..: 4.19
of the refunding bonds NIC.......c 6.590
Page 14
I
'ty of Chanhassen, Minnesota
O. Improvement Bonds of 1988
funded Principal and any Call Premium
Schedule B
Date Principal Premium
1 11/01/95 1,625,000.00
1
i
1
1
1
1
1
1
1
1
1
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual Annual
1,625,000.00 1,625,000.00
tals 1,625,000.00 1,625,000.00 1,625,000.00
ill 11 Date .............: 11/01/95 This portion will be paid by the escrow.
rst Date Called.....: 11/01/96 The escrow will also pay the interest on
Premium........... the refunding bonds thru the call date.
Page 15
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual
83,618.75
583,618.75
68,118.75
543,118.75
Annual
667,237.50
611,237.50
tals 975,000.00 303,475.00 1,278,475.00 1,278,475.00
t 11 Date .............: 11/01/95 This portion will be paid by the issuer.
rst Date Called.....: 11/01/96 The issuer will also pay debt service on
ll Premium...:.......: the refunding bonds after the call date.
Page 16
ity of Chanhassen, Minnesota
.O. Improvement Bonds of 1988
on- Refunded Principal and Non - Refunded
Interest
Schedule C
Date Principal
Interest
05/01/94
83,618.75
11/01/94 500,000.00
05/01/95
83,618.75
68,118.75
11/01/95 475,000.00
68,118.75
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual
83,618.75
583,618.75
68,118.75
543,118.75
Annual
667,237.50
611,237.50
tals 975,000.00 303,475.00 1,278,475.00 1,278,475.00
t 11 Date .............: 11/01/95 This portion will be paid by the issuer.
rst Date Called.....: 11/01/96 The issuer will also pay debt service on
ll Premium...:.......: the refunding bonds after the call date.
Page 16
I
city of Chanhassen, Minnesota
O. Refunding Bonds, Series 1994
funding Debt Service
Date
Principal
Rate
11/01/94
05/01/95
11/01/95
05/01/96
11/01/96
'05/01/97
11/01/97
05/01/98
11/01/98
05/01/99
11/01/99
1 /01/2000
/01/2000
05/01/2001
1 /01/2001
/01/2002
/01/2002
/01/2003
/01/2003
x/01/2004
11/01/2004
1
r
IJ
r
itals
Bond Years:
g. Mat...
C....... .
91
525,000.00
510,000.00
425,000.00
30,000.00
30,000.00
35,000.00
35,000.00
35,000.00
40,000.00
1,665,000.00
6,960.00
4.180
4.095%
3.450%
3.700%
3.900%
4.050%
4.200%
4.350%
4.500%
4.650%
4.800%
Schedule D
Interest
41,785.00
31,338.75
31,338.75
31,338.75
31,338.75
22,282.50
22,282.50
12,847.50
12,847.50
4,560.00
4,560.00
3,952.50
3,952.50
3,322.50
3,322.50
2,561.25
2,561.25
1,773.75
1,773.75
960.00
960.00
271,660.00
* Paid by escrow.
All other payments
made by the issuer.
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual Annual
41,785.00 *
41,785.00
31,338.75 *
03/01/94
31,338.75 *
62,677.50
31,338.75
3.88627%
556,338.75
587,677.50
22,282.50
532,282.50
554,565.00
12,847.50
437,847.50
450,695.00
4,560.00
34,560.00
39,120.00
3,952.50
33,952.50
37,905.00
3,322.50
38,322.50
41,645.00
2,561.25
37,561.25
40,122.50
1,773.75
36,773.75
38,547.50
960.00
40,960.00
41,920.00
1,936,660.00
1,936,660.00
Bond Date.:
03/01/94
Delivery..:
03/29/94
Bond Yield:
3.88627%
Page 17
`ty of Chanhassen, Minnesota
0. Refunding Bonds, Series 1994
nual Savings Analysis
Prepared: 01/13/94
By SPRINGSTED Incorporated
'
1,278,475.00
Schedule E
3,110,672.50 3,174,987.50 64,315.00
esent
Value Rate...:
Non - Refunded
Refunding
Total New
Existing
Savings
Date
Debt Service
Debt Service
Debt Service
Debt Service
or (Loss)
' (
(2)
(3)
(4)
(5)
(6)
05/01/94
11/01/94
' 05/01/95
667,237.50
667,237.50
667,237.50
11/01/95
611,237.50
611,237.50
611,237.50
05/01/96
11/01/96
587,677.50
587,677.50
581,312.50
(6,365.00)
05/01/97
11/01/97
554,565.00
554,565.00
550,912.50
(3,652.50)
05/01/98
11/01/98
450,695.00
450,695.00
445,037.50
(5,657.50)
05/01/99
11/01/99
39,120.00
39,120.00
93,637.50
54,517.50
1 /01/2000
/01/2000
37,905.00
37,905.00
88,612.50
50,707.50
05/01/2001
/01 /2001
41,645.00
41,645.00
83,550.00
41,905.00
/01/2002
11/01/2002
40,122.50
40,122.50
53,450.00
13,327.50
/01/2003
/01/2003
38,547.50
38,547.50
(38,547.50)
/01/2004
I ' I
11/01/2004
1
41,920.00
41,920.00
(41,920.00)
1
i tals
1,278,475.00
1,832,197.50
3,110,672.50 3,174,987.50 64,315.00
esent
Value Rate...:
3.88627
Excess Proceeds......: 242.16
esent
Value Savings:
57,089.93
Funds to Sinking Fund:
t of
P.V. Ref. D /S:
3.51
Total Net Savings....: 64,557.16
Page 18
APPENDIX 111
City of Chanhassen, Minnesota
Taxable G.O. Refunding Bonds, Series 1994
' Full Crossover Advance Refunding of
Taxable G.O. Tax Inc. Bonds, Ser. 1988
' Extend Term to 11/01/03
Issuer Funds Required: $0.00
Date of Bonds:
03/01/94
Delivery Date:
03/29/94
Refunded Call Date:
11/01/95
1 st Callable Date:
11/01/96
Comparison:
Refunded
Refunding
Principal:
1,100,000
1,170,000
Bond Years:
5,283.33
5,615.00
Avg. Maturity:
4.803
4.799
NIC:
9.315%
5.816%
Prepared: 01/13/94
By SPRINGSTED Incorporated
Page 19
t ity of Chanhassen, Minnesota
axable G.O. Tax Inc. Bonds, Ser. 1988
Existing Debt Service
Prepared: 01/13/94
By SPRINGSTED Incorporated
'
Schedule A
1,450,000.00
576,250.00
2,026,250.00 2,026,250.00
Date
Principal
Rate
Interest
Semi - Annual
Annual
are made from the date
05/01/94
IC........
9.298%
67,050.00
67,050.00
11/01/94
150,000.00
9.100
67,050.00
217,050.00
284,100.00
05/01/95
60,225.00
60,225.00
11/01/95
200,000.00
9.100
60,225.00
260,225.00
320,450.00
05/01/96
51,125.00
51,125.00
'
11/01/96
200,000.00
9.200
51,125.00
251,125.00
302,250.00
05/01/97
41,925.00
41,925.00
11/01/97
200,000.00
9.250%
41,925.00
241,925.00
283,850.00
05/01/98
32,675.00
32,675.00
11/01/98
200,000.00
9.300
32,675.00
232,675.00
265,350.00
05/01/99
23,375.00
23,375.00
250,000.00
9.3000
23,375.00
273,375.00
296,750.00
1 11/01/99
5/01/2000
11,750.00
11,750.00
1/01/2000
250,000.00
9.400
11,750.00
261,750.00
273,500.00
� I
� I
� I
� I
IL
� I
� I
L tals
1,450,000.00
576,250.00
2,026,250.00 2,026,250.00
nd Years:
5,716.67
All lower calculations
Refunded Bonds Only
g. Mat..:
3.943
are made from the date
Avg. Mat..: 4.803
IC........
9.298%
of the refunding bonds
NIC........ 9.315
Page 20
I
ty of Chanhassen, Minnesota
xable G.O. Tax Inc. Bonds, Ser. 1988
Refunded Principal and any Call Premium
r Schedule B
Date Principal Premium
11/01/95 1
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual Annual
1,100,000.00 1,100,000.00
tals 1,100,000.00
1,100,000.00
1,100,000.00
11 Date ... .. ........ :
11/01/95
This
portion will be paid
by
the escrow.
rst Date Called.....:
all Premium..........:
11/01/96
The
the
escrow will also pay
refunding bonds thru
the
the
interest on
call date.
Page 21
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual
67,050.00
217,050.00
60,225.00
260,225.00
Annual
284,100.00
320,450.00
tals 350,000.00 254,550.00 604,550.00 604,550.00
i 11 Date .............: 11/01/95 This portion will be paid by the issuer.
rst Date Called.....: 11/01/96 The issuer will also pay debt service on
ll Premium..........: the refunding bonds after the call date.
Page 22
ty of Chanhassen, Minnesota
xable G.O.
Tax Inc. Bonds, Ser. 1988
on- Refunded
Principal and Non - Refunded
Interest
r Schedule
C
Date
Principal
Interest
05/01/94
67,050.00
150,000.00
67,050.00
' 11/01/94
05/01/95
60,225.00
11/01/95
200,000.00
60,225.00
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual
67,050.00
217,050.00
60,225.00
260,225.00
Annual
284,100.00
320,450.00
tals 350,000.00 254,550.00 604,550.00 604,550.00
i 11 Date .............: 11/01/95 This portion will be paid by the issuer.
rst Date Called.....: 11/01/96 The issuer will also pay debt service on
ll Premium..........: the refunding bonds after the call date.
Page 22
I
9 ty of Chanhassen, Minnesota
xable G.O. Refunding Bonds, Series 1994
Refunding Debt Service
I Schedule D
Date Principal Rate Interest
11/01/94
05/01/95
11/01/95
05/01/96
' 11/01/96
05/01/97
11/01/97
05/01/98
11/01/98
05/01/99
11/01/99
k /01/2000
/01/2000
05/01/2001
t /01/2001
/01/2002
11/01/2002
/01/2003
L /01/2003
245,000.00
240,000.00
235,000.00
280,000.00
40,000.00
40,000.00
45,000.00
45,000.00
42,355.00
31,766.25
31,766.25
31,766.25
4.800%
31,766.25
25,886.25
5.150%
25,886.25
19,706.25
5.450%
19,706.25
13,302.50
5.700
13,302.50
5,322.50
5.950%
5,322.50
4,132.50
6.150%
4,132.50
2,902.50
6.350
2,902.50
1,473.75
6.550
1,473.75
L tals
nd Years:
g. Mat...
1,170,000.00
5,615.00
4.799
5.816%
314,872.50
* Paid by escrow.
All other payments
made by the issuer.
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual
42,355.00 *
31,766.25 *
31,766.25 *
31,766.25
276,766.25
25,886.25
265,886.25
19,706.25
254,706.25
13,302.50
293,302.50
5,322.50
45,322.50
4,132.50
44,132.50
2,902.50
47,902.50
1,473.75
46,473.75
1,484,872.50
Bond Date.:
Delivery...
Bond Yield:
Annual
42,355.00
63,532.50
308,532.50
291,772.50
274,412.50
306,605.00
50,645.00
48,265.00
50,805.00
47,947.50
1,484,872.50
03/01/94
03/29/94
5.58024%
Page 23
I
city of Chanhassen, Minnesota
Prepared:
01/13/94
able G.O.
Refunding Bonds,
Series 19
By SPRINGSTED
Incorporated
Annual Savings Analysis
I
Schedule
E
Non- Refunded
Refunding
Total New
Existing
Savings
Date
Debt Service
Debt Service Debt
Service
Debt Service
or (Loss)
(1)
(2)
(3)
(4)
(5)
(6)
05/01/94
11/01/94
284,100.00
284,100.00
284,100.00
05/01/95
11/01/95
320,450.00
320,450.00
320,450.00
05/01/96
11/01/96
308,532.50
308,532.50
302,250.00
(6,282.50)
05/01/97
11/01/97
291,772.50
291,772.50
283,850.00
(7,922.50)
, 05/01/98
11 /01/98
274,412.50
274,412.50
265,350.00
(9,062.50)
05/01/99
11/01/99
J /01/2000
306,605.00
306,605.00
296,750.00
(9,855.00)
/01/2000
50,645.00
50,645.00
273,500.00
222,855.00
05/01/2001
1 /01/2001
48,265.00
48,265.00
(48,265.00)
/01/2002
11/01/2002
50,805.00
50,805.00
(50,805.00)
/01/2003
/01/2003
47,947.50
47,947.50
(47,947.50)
�j
I tals 604,550.00
esent Value Rate...:
esent Value Savings:
t of P.V. Ref. D /S:
1,378,985.00 1,983,535.00 2,026,250.00 42,715.00
5.58024 Excess Proceeds......: 5.65
38,399.19 Funds to Sinking Fund:
3.45 Total Net Savings....: 42,720.65
Page 24
APPENDIX IV
City of Chanhassen, Minnesota
G.O. Refunding Bonds, Series 1994
Full Crossover Advance Refunding of
G.O. Tax Inc. Bonds of 1988, Series 2
Extend Term to 11/01/03
Issuer Funds Required: $0.00
Date of Bonds:
03/01194
Delivery Date:
03/29/94
Refunded Call Date:
11/01/94
1 st Callable Date:
11/01/95
Comparison:
Refunded
Refunding
Principal:
500,000
525,000
Bond Years:
2,408.33
2,525.00
Avg. Maturity:
4.817
4.810
NIC:
6.658%
4.265%
Prepared: 01/13/94
By SPRINGSTED Incorporated
Page 25
I
i ty of Chanhassen, Minnesota
G.O. Tax Inc. Bonds of 1988, Series 2
fisting Debt Service
Prepared: 01/13/94
By SPRINGSTED Incorporated
Schedule A
' Date Principal Rate Interest Semi - Annual Annual
i 05/01/94
11/01/94
18,031.25
18,031.25
550,000.00
05/01/95
50,000.00
6.200
18,031.25
68,031.25
86,062.50
11/01/95
05/01/96
50,000.00
6.300
16,481.25
16,481.25
16,481.25
66,481.25
82,962.50
are made from the date
Avg. Mat..: 4.817
t ••••••.•
14,906.25
14,906.25
NIC ....... . 6.658
11/01/96
75,000.00
6.400
14,906.25
89,906.25
104,812.50
1 05/01/97
11/01/97
75,000.00
6.500
12,506.25
12,506.25
12,506.25
87,506.25
100,012.50
05/01/98
10,068.75
10,068.75
11/01/98
75,000.00
6.6000
10,068.75
85,068.75
95,137.50
A 05/01/99
11/01/99
75,000.00
6.700%
7,593.75
7,593.75
7,593.75
82,593.75
90,187.50
/01/2000
75,000.00
6.750%
5,081.25
5,081.25
5,081.25
80,081.25
85,162.50
1 /01/2000
/01/2001
/01/2001
2,550.00
2,550.00
75,000.00
6.800%
2,550.00
77,550.00
80,100.00
Totals
550,000.00
174,437.50
724,437.50 724,437.50
Bad Years:
2,441.67
All lower calculations
Refunded Bonds Only
Avg. Mat..:
4.439
are made from the date
Avg. Mat..: 4.817
t ••••••.•
6.652%
of the refunding bonds
NIC ....... . 6.658
Page 26
ty of Chanhassen, Minnesota
O. Tax Inc. Bonds of 1988, Series 2
efunded Principal and any Call Premium
' Schedule B
Date Principal Premium
11/01/94 500,000.00
1
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual
500,000.00
Annual
500,000.00
tals 500,000.00
500,000.00
500,000.00
11 Date ... .......... :
11/01/94
This
portion will be paid by
the escrow.
rst Date Called.....:
all Premium..........:
11/01/95
The
the
escrow will also pay the
refunding bonds thru the
interest on
call date.
Page 27
Page 28
ty of Chanhassen,
Minnesota
Prepared:
01/13/94
0. Tax Inc.
Bonds of 1988, Series 2
By SPRINGSTED
Incorporated
Non - Refunded
Principal and Non - Refunded
Interest
Schedule C
Date
Principal
Interest
Semi - Annual
Annual
05/01/94
18,031.25
18,031.25
11/01/94
50,000.00
18,031.25
68,031.25
86,062.50
t tals
86,062.50
86,062.50
50,000.00
36,062.50
Date ...
.......... : 11/01/94
This portion
will be paid
by the issuer.
U r 11
st Date Called.....: 11/01/95
The issuer will also pay
debt service on
Call Premium..........:
the refunding
bonds after
the call date.
Page 28
I
'ty of Chanhassen, Minnesota
O. Refunding Bonds, Series 1994
efunding Debt Service
Date Principal
11/01/94
05/01/95
11/01/95
05/01/96
111/01/96
05/01/97
11/01/97
, 05/01/98
11/01/98
05/01/99
11/01/99
1 /01/2000
/01/2000
05/01/2001
/01/2001
/01/200.2
11/01/2002
/01/2003
/01/2003
65,000.00
85,000.00
85,000.00
85,000.00
80,000.00
30,000.00
30,000.00
30,000.00
35,000.00
� I
� I
� I
� I
� I
ttals
I nd Years:
g. Mat...
C ........
I
525,000.00
2,525.00
4.810
4.265%
Rate
3.150%
3.4500
3.700%
3.900%
4.050%
4.200%
4.350%
4.500%
4.650%
Schedule D
Interest
13,481.67
10,111.25
10,111.25
9,087.50
9,087.50
7,621.25
7,621.25
6,048.75
6,048.75
4,391.25
4,391.25
2,771.25
2,771.25
2,141.25
2,141.25
1,488.75
1,488.75
813.75
813.75
102,431.67
* Paid by escrow.
All other payments
made by the issuer.
Prepared: 01/13/94
By SPRINGSTED Incorporated
Semi - Annual
13,481.67
10,111.25
75,111.25
9,087.50
94,087.50
7,621.25
92,621.25
6,048.75
91,048.75
4,391.25
84,391.25
2,771.25
32,771.25
2,141.25
32,141.25
1,488.75
31,488.75
813.75
35,813.75
627,431.67
Bond Date.:
Delivery...
Bond Yield:
Annual
13,481.67
85,222.50
103,175.00
100,242.50
97,097.50
88,782.50
35,542.50
34,282.50
32,977.50
36,627.50
627,431.67
03/01/94
03/29/94
4.03925%
Page 29
ty of Chanhassen, Minnesota
O. Refunding Bonds, Series 1994
Annual Savings Analysis
Prepared: 01/13/94
By SPRINGSTED Incorporated
� I
II
t tals 86,062.50
esent Value Rate...:
esent Value Savings:
s % of P.V. Ref. D /S:
613,950.00 700,012.50 724,437.50
4.03925% Excess Proceeds......:
22,761.14 Funds to Sinking Fund:
4.25% Total Net Savings....:
Savings
or (Loss)
(6)
(2,260.00)
1,637.50
(230.00)
(1,960.00)
1,405.00
49,620.00
45,817.50
(32, 977.50)
(36,627.50)
24,425.00
73.63
24,498.63
Page 30
Schedule E
Non - Refunded
Refunding
Total New
Existing
Date
Debt Service
Debt Service
Debt Service
Debt Service
(
(2)
(3)
(4)
(5)
05/01/94
11/01/94
86,062.50
86,062.50
86,062.50
05/01/95
11/01/95
85,222.50
85,222.50
82,962.50
05/01/96
' 11/01/96
103,175.00
103,175.00
104,812.50
05/01/97
11/01/97
100,242.50
100,242.50
100,012.50
05/01/98
11/01/98
97,097.50
97,097.50
95,137.50
05/01/99
88,782.50
88,782.50
90,187.50
1 11/01/99
/01/2000
/01/2000
35,542.50
35,542.50
85,162.50
05/01/2001
1 /01 /2001
34,282.50
34,282.50
80,100.00
/01/2002
11/01/2002
32,977.50
32,977.50
/01/2003
/01/2003
36,627.50
36,627.50
� I
II
t tals 86,062.50
esent Value Rate...:
esent Value Savings:
s % of P.V. Ref. D /S:
613,950.00 700,012.50 724,437.50
4.03925% Excess Proceeds......:
22,761.14 Funds to Sinking Fund:
4.25% Total Net Savings....:
Savings
or (Loss)
(6)
(2,260.00)
1,637.50
(230.00)
(1,960.00)
1,405.00
49,620.00
45,817.50
(32, 977.50)
(36,627.50)
24,425.00
73.63
24,498.63
Page 30
77
L
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$5,570,000
CITY OF CHANHASSEN, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS,
SERIES 1994A
Proposals for the Bonds will be received on Monday, February 28, 1994, until 11:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated March 1, 1994, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 1995. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will be
issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the
purchaser, and fully registered as to principal and interest. Principal will be payable at the main
corporate office of the registrar and interest on each Bond will be payable by check or draft of
the registrar mailed to the registered holder thereof at the holder's address as it appears on the
books of the registrar as of the close of business on the 15th day of the immediately preceding
month.
The Bonds will mature February 1 in the years and amounts as follows:
' 1996 $740,000 1999 $845,000 2001 $910,000
1997 $750,000 2000 $875,000 2002 $665,000
1998 $785,000
' * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total
amount not to exceed $100,000 and will be made in multiples of $5,000 in any of the maturities. !n the
event the principal amount of the Bonds is increased or reduced, any premium offered or any
discount taken will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Bonds is increased or reduced.
1 OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
' credit and power to levy direct general ad valorem taxes. In addition the City will pledge
special assessments against benefited properties. The proceeds will be used to refund in
advance of maturity the 1996 through 2002 maturities of the City's General Obligation
I Improvement Bonds, Series 1989A, dated December 1, 1989.
Page 31
1
ii
1
1
TYPE OF PROPOSALS
Proposals shall be for not less than $5,531,010 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 $55,700,
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 rate from the date of the Bonds to the date of maturity. No
conditional proposals will be accepted.
aILVI:i
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.
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.
Page 32
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 Holmes & Graven,
Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of
customary closing papers, including a no- litigation certificate. On the date of settlement
payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at
the offices of the City or its designee not later than 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.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly -final Official
Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223 -3000.
t
1
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 200 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 January 24, 1994
BY ORDER OF THE CITY COUNCIL
/s/ Donald W. Ashworth
City Manager
Page 33
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F1
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
$1,665,000*
CITY OF CHANHASSEN, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS,
SERIES 1994B
Proposals for the Bonds will be received on Monday, February 28, 1994, until 11:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated March 1, 1994, as the date of original issue, and will bear interest
payable on May 1 and November 1 of each year, commencing November 1, 1994. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will be
issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the
purchaser, and fully registered as to principal and interest. Principal will be payable at the main
corporate office of the registrar and interest on each Bond will be payable by check or draft of
the registrar mailed to the registered holder thereof at the holder's address as it appears on the
books of the registrar as of the close of business on the 15th day of the immediately preceding
month.
TERMS OF PROPOSAL
The Bonds will mature November 1 in the years and amounts as follows:
1996 $525,000
1997 $510,000
1998 $425,000
1999 $30,000
2000 $30,000
2001 $35,000
2002 $35,000
2003 $35,000
2004 $40,000
* The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total
amount not to exceed $25,000 and will be made in multiples of $5,000 in any of the maturities. In the
event the principal amount of the Bonds is increased or reduced, any premium offered or any
discount taken will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Bonds is increased or reduced.
OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge
special assessments against benefited properties. The proceeds will be used to refund in
advance of maturity the 1996 through 2002 maturities of the City's General Obligation
Improvement Bonds of 1988, dated November 1, 1988.
Page 34
I
I
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TYPE OF PROPOSALS
Proposals shall be for not less than $1,651,680 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 $16,650,
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 rate from the date of the Bonds to the date of maturity. No
conditional proposals will be accepted.
RWLT091
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.
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.
Page 35
1
C
Fi
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 Holmes & Graven,
Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of
customary closing papers, including a no- litigation certificate. On the date of settlement
payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at
the offices of the City or its designee not later than 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.
OFFICIAL STATEMENT
' The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly -final Official
Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission.
' For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223 -3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information 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 65 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 January 24, 1994
BY ORDER OF THE CITY COUNCIL
/s/ Donald W. Ashworth
City Manager
Page 36
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THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1,170,000*
CITY OF CHANHASSEN, MINNESOTA
TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS,
SERIES 1994C
Proposals for the Bonds will be received on Monday, February 28, 1994, until 11:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated March 1, 1994, as the date of original issue, and will bear interest
payable on May 1 and November 1 of each year, commencing November 1, 1994. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will be
issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the
purchaser, and fully registered as to principal and interest. Principal will be payable at the main
corporate office of the registrar and interest on each Bond will be payable by check or draft of
the registrar mailed to the registered holder thereof at the holder's address as it appears on the
books of the registrar as of the close of business on the 15th day of the immediately preceding
month.
The Bonds will mature November 1 in the years and amounts as follows:
' 1996 $245,000 1999 $280,000 2002 $45,000
1997 $240,000 2000 $ 40,000 2003 $45,000
1998 $235,000 2001 $ 40,000
' * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total
amount not to exceed $25,000 and will be made in multiples of $5,000 in any of the maturities. In the
event the principal amount of the Bonds is increased or reduced, any premium offered or any
discount taken will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Bonds is increased or reduced.
I OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge tax
increment revenue from the City's Tax Increment District No. 1. The proceeds will be used to
refund in advance of maturity the 1996 through 2000 maturities of the City's Taxable General
' Obligation Tax Increment Bonds, Series 1988, dated September 1, 1988.
Page 37
0
TYPE OF PROPOSALS
Proposals shall be for not less than $1,158,300 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 $11,700,
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 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.
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.
Page 38
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Ll
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 Holmes & Graven,
Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of
customary closing papers, including a no- litigation certificate. On the date of settlement
payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at
the offices of the City or its designee not later than 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.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly -final Official
Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223 -3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information 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 45 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 January 24, 1994
BY ORDER OF THE CITY COUNCIL
/s/ Donald W. Ashworth
City Manager
Page 39
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1 1
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$525,000*
CITY OF CHANHASSEN, MINNESOTA
GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS,
SERIES 1994D
Proposals for the Bonds will be received on Monday, February 28, 1994, until 11:00 A.M.,
Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint
Paul, Minnesota, after which time they will be opened and tabulated. Consideration for award
of the Bonds will be by the City Council at 7:30 P.M., Central Time, of the same day.
DETAILS OF THE BONDS
The Bonds will be dated March 1, 1994, as the date of original issue, and will bear interest
payable on May 1 and November 1 of each year, commencing November 1, 1994. Interest will
be computed on the basis of a 360 -day year of twelve 30 -day months. The Bonds will be
issued in the denomination of $5,000 each, or in integral multiples thereof, as requested by the
purchaser, and fully registered as to principal and interest. Principal will be payable at the main
corporate office of the registrar and interest on each Bond will be payable by check or draft of
the registrar mailed to the registered holder thereof at the holder's address as it appears on the
books of the registrar as of the close of business on the 15th day of the immediately preceding
month.
The Bonds will mature November 1 in the years and amounts as follows:
' 1995 $65,000 1998 $85,000 2001 $30,000
1996 $85,000 1999 $80,000 2002 $30,000
1997 $85,000 2000 $30,000 2003 $35,000
' * The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds offered for sale. Any such increase or reduction will be in a total
amount not to exceed $10,000 and will be made in multiples of $5,000 in any of the maturities. In the
' event the principal amount of the Bonds is increased or reduced, any premium offered or any
discount taken will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Bonds is increased or reduced.
' OPTIONAL REDEMPTION
The Bonds will not be subject to payment in advance of their respective stated maturity dates.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
' credit and power to levy direct general ad valorem taxes. In addition the City will pledge tax
increment revenue from the City's Tax Increment District No. 1. The proceeds will be used to
refund in advance of maturity the 1995 through 2001 maturities of the City's General Obligation
Tax Increment Bonds of 1988, Series 2, dated November 1, 1988.
Page 40
Cl
17
k—
TYPE OF PROPOSALS
Proposals shall be for not less than $519,750 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ( "Deposit ") in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $5,250,
payable to the order of the City. If a check is used, it must accompany each proposal. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond
must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If
the Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M.,
Central Time, on the next business day following the award. If such Deposit is not received by
that time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit
requirement. The City will deposit the check of the purchaser, the amount of which will be
deducted at 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 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.
N. *0 &1 t T_1 l
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
Page 41
s
' 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 Holmes & Graven,
Chartered of Minneapolis, Minnesota, which opinion will be printed on the Bonds, and of
customary closing papers, including a no- litigation certificate. On the date of settlement
payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at
the offices of the City or its designee not later than 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.
OFFICIAL STATEMENT
' The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly -final Official
Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (612) 223 -3000.
1
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 20 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 January 24, 1994
BY ORDER OF THE CITY COUNCIL
/s/ Donald W. Ashworth
City Manager
Page 42