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1d. Set Bond sale date, 1993 bonds 1 CITYOF 1 4 ._, io 02 1 . 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937 -1900 • FAX (612) 937 -5739 I I MEMORANDUM TO: Mayor and City Council 1 FROM: Don Ashworth, City Manager I DATE: January 11, 1993 SUBJ: Set Bond Sale Date, 1993 Bonds 1 At the end of 1992, the City Council acted to approve various modifications to the Tax Increment Il Plan, including various acquisitions (see attached sheet). A portion of these acquisitions have been completed, i.e. Burdick property, Taco Shop. Others on the list are imminent, i.e. Apple Valley Red -E -Mix and James property. Although some of the acquisitions may not occur for i several months, Springsted and this office would recommend that we bond for the entire listing rather than re- entering the market several times during 1993. Given the fact that some of the acquisitions have been consummated, it is vitally important, from a cash flow standpoint, that this I sale occur as soon as possible. zz Approval of setting the 1993 Tax Increment Bond Sale date for February It 1993, 7:30 p.m. is 1 recommended. t Update (1- 20 -93): The City Council acted to table action on this item at our last meeting. Most of the acquisitions called for in the bonding proposal have been completed and are currently I producing a cash flow problem for our finance department. The parcel referred to as "Janco" is the Charlie James property north of the existing West 78th Street, but lying south of the realigned West 78th Street. Should Council members feel more comfortable with deleting the "Bloomberg I acquisition," I would suggest replacing such with "miscellaneous acquisitions-- $.75M" (Hanus acquisition, West 79th Street improvements, and bus turnaround/Market Square storm sewer). 1 ,. DWA 1 1 ti 0 PRINTED ON RECYCLED PAPER 1 1 Recommendations 1 For City of Chanhassen, Minnesota $7,025,000 ' Taxable General Obligation Tax Increment Bonds, Series 1993A 1 1 1 1 1 1 1 1 1 Study No. CO236N1 SPRINGSTED Incorporated 1 January 19, 1993 1 S P R! N GST E D 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 16655 West Bluemound Road Suite 100 Suite 290 Saint Paul, MN 55101 -2143 Brookfield, WI 53005-5935 (612) 223-3000 (414) 782 -8222 Fax: (612) 223 -3002 Fax: (414) 782 -2904 ' 6800 College Boulevard Suite 600 Overland Park, KS 66211 -1533 (913) 345 -8062 Fax: (913) 345 -1770 January 19, 1993 1800K Street NW Suite 831 Washington, DC 20006 -2200 (202) 466 -3344 Fax: (202) 223 -1362 Mayor Donald J. Chmiel Members, City Council Mr. Donald Ashworth, City Manager Chanhassen City Hall 690 Coulter Drive ' Chanhassen, MN 55317 -0147 Re: Recommendations for the Issuance of $7,025,000 Taxable General Obligation Tax Increment Bonds, Series 1993A We respectfully request your consideration of our recommendations for the issuance of these bonds according to the terms and conditions set forth in the attached proposed "Official Terms of Offering." On December 14, the City Council approved Modification No. 12 to the Redevelopment and Tax Increment Financing Plan for the Chanhassen Redevelopment Project. Pursuant to that modification, the HRA may now proceed to acquire certain properties within the redevelopment project area and within Tax Increment Financing District No. 1 thereof. Attached as Appendix I is a listing of property to be acquired and the estimated costs of that acquisition together with associated administrative and issuance expenses. Included in the principal amount of bonds to be issued is a provision for discount bidding in the amount of $105,375. This discount, representing $15.00 per $1,000 of bonds issued, provides the underwriters with all or part of their profit and /or working capital for issuing the issue and permits them to reoffer the bonds at or close to a reoffering scale. The City has used this successful marketing tool in the past, and we recommend its continued use herein. These bonds are being issued pursuant to Chapters 469 and 475, Minnesota Statutes. As noted earlier, the proceeds will be used primarily to finance the land acquisition costs within TIF No. 1 for resale to private developers. As such, federal regulations require the issuance of taxable bonds for which the interest paid to bondholders may be subject to both federal and State income taxes. The City currently has 10 bond issues outstanding and other contractual obligations which are payable primarily from the increment income generated from TIF No. 1. This new issue will place further demands on that revenue stream. However, pursuant to the City's Debt Analysis Report, dated October 1991, for all TIF Districts the current fund balance, together with the City's estimated increment income, will be more than sufficient to take care of all debt and contractual obligations as well as leave room for other annual expenditures. We have therefore structured this issue around the current level of debt as well as the future expected stream of 1 e 0 City of Chanhassen, Minnesota January 19, 1993 1 revenue and the cash balance of $1,438,000 as of February 2, 1993, which date is after making the February 1, 1993 payment on current tax increment debt. 1 Attached as Appendix II is the recommended maturity schedule for this issue. The bonds will be dated March 1, 1993 and mature each February 1 from 1994 through 2001. Columns 1 through 6 show the years and amounts of principal and estimated interest due on these bonds. I The first payment will be an interest payment due August 1, 1993 in an estimated amount of $194,740 which will be payable from the first -half collections of increment generated from TIF No. 1. The next payment will be a principal and interest payment due February 1, 1994 in a I combined estimated amount of $433,685. This amount will be payable from the second -half collections of increment income, together with the surplus of first -half collections. The same payment sequence will continue throughout the life of the issue. The projected level of increment is shown in Column 7, and the surplus is noted in Columns 8 and 9. While bond issues of this duration generally do not have a call feature we have, pursuant to continuing discussions with City staff, provided that bonds maturing on or after February 1, I 2000 be subject to payment in advance of their stated maturity on February 1, 1999, and any date thereafter, at a price of par and accrued interest. This call feature represents $3,200,000, or approximately 45% of the bond issue. This will provide the City with an opportunity to refinance a substantial portion of the issue should there be a surplus of increment income I and /or market conditions warrant such course of action. We note that, pursuant to current statutory provisions, increment from this district for new debt issued after April, 1990 may not be collected after April, 2001. Thus, the last full year of increment income for this issue will be 1 the year 2000. We have provided for the final maturity of this issue to be February 1, 2001. We recommend an application be made to Moody's Investors Service for a rating of this issue. I The City is currently rated "Baa -1" by Moody's, and we will assist in providing them with the data necessary upon which to make their rating analysis. The agency will charge a fee for this issue, which will be billed directly to the City and will be payable from bond proceeds. I We recommend these bonds be offered for sale on Monday, February 22, 1993, with bids received in the offices of Springsted Incorporated at 12:30 P.M. We will then tabulate and verify all bid proposals received and present them to the City Council for consideration of award at I 7:30 P.M. the same evening. Bond proceeds should be available on or about March 15. Resp ully submitted, ;' PRING ED Incorporated 1 sms 1 1 1 1 1 Page 2 APPENDIX I CITY OF CHANHASSEN, MINNESOTA $7,025,000 111 Taxable General Obligation Tax Increment Bonds Composition of Issue Land Acquisition: Taco Shop $ 313,000 Apple Valley Redimix 1,000,000 a2 a Janeo Property 490,000 Burdich Property 2,736,000 Bowling Center ,' s /�C q. P�� s 7 r i „ a -8087000 ) S ubtotal $6,589,000 Administrative Costs 300,000 Allowance for Discount 105,375 Issuance Costs 40,000 Total Costs $7,034,375 Less: Investment Earnings (9,375) Net Bond Issue $7,025,000 1 1 1 1 1 1 1 1 1 Page 3 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 r— 1 all r— 1 1 w r 1 1— 1 w 1 r 11111 CITY OF CHANHASSEN, MINNESOTA Prepared January 15, 1993 $7,025,000 TAXABLE GENERAL OBLIGATION By SPRINGSTED Incorporated TAX INCREMENT BONDS, SERIES 1993A Dated: 3- 1 -1993 Mature: 2- 1 First Interest: 8- 1 -1993 Total Projected Year of Year of Principal Available Annual Cumulative Levy Mat. Principal Rates Interest & Interest Increment Surplus Surplus ( ( ( ( ( ( ( ( ( 1992 1994 200,000 5.00% 428,427 628,427 1,335,000 706,573 706,573 1993 1995 200,000 5.60% 457,375 657,375 1,155,000 497,625 1,204,198 1994 1996 200,000 5.90% 446,175 646,175 1,190,000 543,825 1,748,023 1995 1997 925,000 6.20% 434,375 1,359,375 1,915,000 555,625 2,303,648 1996 1998 975,000 6.40% 377,025 1,352,025 1,895,000 542,975 2,846,623 1997 1999 1,325,000 6.70% 314,625 1,639,625 2,180,000 540,375 3,386,998 1998 2000 1,350,000 7.00% 225,850 1,575,850 2,135,000 559,150 3,946,148 1999 2001 1,850,000 7.10% 131,350 1,981,350 2,500,000 518,650 4,464,798 TOTALS: 7,025,000 2,815,202 9,840,202 14,305,000 Bond Years: 41,389.58 Annual Interest: 2,815,202 Avg. Maturity: 5.89 Plus Discount: 105,375 Avg. Annual Rate: 6.802% Net Interest: 2,920,577 T.I.C. Rate: 7.107% N.I.C. Rate: 7.056% Interest rates are estimates; changes may cause significant alterations of this schedule. The actual underwriter's discount bid may also vary. b 0 17 m 42 0 0 5Z A II I THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS: 1 TERMS OF PROPOSAL I $7,025,000 CITY OF CHANHASSEN, MINNESOTA 1 TAXABLE GENERAL OBUGATION TAX INCREMENT BONDS, SERIES 1993A 1 Proposals for the Bonds will be received by the City Manager or his designee on Monday, February 22, 1993, until 12:30 P.M., Central lime, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, after which time they will be opened and I 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 1 The Bonds will be dated March 1, 1993, as the date of original issue, and will bear interest payable on February 1 and August 1 of each year, commencing August 1, 1993. Interest will I 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 I 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. 1 The Bonds will mature February 1 in the years and amounts as follows: 1 1994 $200,000 1997 $ 925,000 2000 $1,350,000 1995 $200,000 1998 $ 975,000 2001 $1,850,000 1996 $200,000 1999 $1,325,000 1 OPTIONAL REDEMPTION The City may elect on February 1, 1999, and on any day thereafter, to prepay Bonds due on or I after February 1, 2000. Redemption may be in whole or in part and if in part, at the option of the City and in such order as the City shall determine and within a maturity by lot as selected by the registrar. All prepayments shall be at a price of par plus accrued interest. 1 SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its full faith and I credit and power to levy direct general ad valorem taxes. In addition the City will pledge tax increment income from the City's Tax Increment District No. 1. The proceeds will be used to finance land acquisition and other eligible costs within Tax Increment District No. 1. 1 1 1 Page 5 0 I TAXABILITY OF INTEREST The interest to be paid on the Bonds is includable in gross income of the recipient for United States and State of Minnesota, and is subject to Minnesota Corporate and bank excise taxes 1 measured by net income. TYPE OF PROPOSALS 1 Proposals shall be for not less than $6,919,625 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ( "Deposit') in I the form of a certified or cashier's check or a Financial Surety Bond in the amount of $70,250, 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 I 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 I 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 I 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 I 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 I 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. 1 AWARD The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true I interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. BOND INSURANCE AT PURCHASER'S OPTION I 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 I 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 I purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on the Bonds. 1 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 6 , 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. 1 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 275 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 25, 1993 BY ORDER OF THE CITY COUNCIL /s/ Donald W. Ashworth City Manager 1 1 1 Page 7 1 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 16655 West Bluemound Road Suite 100 Suite 290 Saint Paul, MN 55101-2143 Brookfield, WI 53005 -5935 (612) 223-3000 (414) 782 -8222 Fax: (612) 223 -3002 Fax: (414) 782 -2904 I 6800 College Boulevard Suite 600 Overland Park, KS 66211 -1533 (913) 345 -8062 I Fax: (913) 345 -1770 December 14, 1992 1800K Street NW Suite 831 I Washington, DC 20006 -2200 (202) 466 -3344 Mayor Don Chmiel Fax: (202) 223 -1362 Members of the City Council I Mr. Don Ashworth, Manager Chanhassen City Hall 690 Coulter Drive I Chanhassen, MN 55317 Re: City's Credit Rating As part of the City's recent bond sale process, Moody's Investors Service reviewed the City's credit rating and reaffirmed it at "Baa -1." A "Baa -1" rating is a good rating and indicative of a 1 high growth suburban jurisdiction. We have enclosed the Moody's Report for your review. Moody's notes the City's relatively high I debt load which is a direct result of the City's managed response to growth demands. Moody's also notes the extraordinary tax base and the healthy condition of the General Fund balance. I We will continue to monitor and to aggressively advocate the City's credit rating condition. Please feel free to contact us if we can be of any further assistance. I Respectfully, Pr«-- 1 David N. MacGillivray Director, Project Management I /dma Enclosure 1 1 1 o..d..... ...,d.o,.._. K 7 0, ,"i 7 3 0' r'- F.; R M 0 dy s ' 1 - ' s i' ,.....„-- .71 v.:..; Credit RE :„..'''''.. C.) f 1 1 Chanhassen, Minnesota November 2, 1992 1 New Issue Update General Obligation/Spode! 7 =; Mocdy's rating: Beal ______i opinion: Outward expansion of the Minneapolis -St. Paul met- ever, potential borrowing needs remain substantial ropolitan area has geatly impacted this affluent sub - and will continue to challenge management's ability urban community, resulting in extraordinary tax base to balance debt issuance against available resources. and population growth. In order to accomodate this Despite increasing service demands assac.ated with rapid development, the city as well as overlapping growth and reductions in state assistance, the city ha units have been required to borrow substantially, maintained a healthy General Fund balance. Of- thereby, resulting in debt ratios that are well above cials report that year -to -dare results are better than average. Approximately 90% of direct debt is sup- expected; consequently, an operating surplus s is ported by tax increment and special assessment reve- likely. nues, minimizing the impact of the city's sizable debt service requirements on ad valorem tax levies. How- . This update supplements the Credit Comment general obfgciicn bonds ($3,630, v o_- ci ■ published In MMaodys Rating Recap on October Obigcttcn Improvement Bonds, Series 1:'`92 A - 22. The update was prepared In conjunction and $ 1,350,000 General Obligation Tx Incra- wtth the October 26, 1992 sale of $4,980,000 ment Bends. Series 1992 B). 1 key facts: General Obligation Bonds F.V. per Capita, 1991: S57,522 Outstanding: , 0 S41,864,862 Unemployment Rate, 7/92, ' Debt Burden: 7.7% Carver County: 3 2 Payout, Ten Years: 84.0% State: 4.0% As % of Bonded Debt, Year -End General Fund Balance Special Assessment Bonds: 47.2% as % of Revenues, 1991: 41.4 Tax Increment Bonds: 43.4% Debt Service as % of Operating Average Annual Growth F.V., Expenditures, 1991: 65.61 1987 -91: 15.4% m [netoaei current offering. 1 1 1 i ' NMI Ill 111 11111161•11110•111M .o..�. 9snmrcl Ob11S a pecici Tex Nov3tnbor 2, 1993 Chanhassen, Minnesota CI? , 1 1 Moody's Ratings, Refunding Tax Increment dated 1 Bonds, dated 7/1/87, FGIC: Ana 8/183. MBIA: Aran Bonds, dated 9/188. FGIC: Atoa Series 1988-2. dated 11/1/88, MBIA: Aaa G.O. Imp., dated 11/1/88. FGIC: Ana G.O. Tax Increment, dated 7/1/87, Series 1988 -3. dated 11/188, MBIA: Aran FGIC: Aea Series 1989 A -C, FGIC: Araa Series 1990 A, dated 3/1/90, MBIA: Aaa Taxable bonds, dated 9/1/88, FGIC: Ana Refunding Imp., dared 8/1/83, MBIA: Ataa ails of bond Legal Name of issuer. City of Chanhassen, Carver Average Life of Issue: Series A, 7.5 years; Series g o.: and Hennepin Counties, Minnesota. B, 5.18 years. Securtty: G.O., LILT; tax increment income and spe- Interest Payable: Semiannually, Series A and B cial assessments also pledged. commencing August 1, 1993. Date of Bonds: November 1, 1992. Call Features: Series A, beginning February 1, 1 Denomination: 55,000 or integral multiples. 2002; Series B, not cllable. Annual Maturities 2/1 ($ COO) Registrar: To be determined. Series 1992 A Paying Agent To be determined. Year Amount Year ' Amount d yer: Within 40 days following award. 1995 S 40 2000 5355 Bond Counsel: Holmes & Graven, Chartered, 1996 440 2001 -04 350 I 1997 1998 -99 365 2005 310 Minneapolis. 360 Financial Officer: Donald Ashworth, City Series 19928 Manager. I ; Year 1994 Amount Year Amount Advisors: Springsted, Inc., St- Paul. $ 50 1997 5200 Auditor: Deloitte & Touche, Minneapolis ' 1995 100 1998 2 S 0 (FY 1991). 1996 150 1999 -2000 300 I ting history: October 1991: Baal February 1976: A April 1983: Ban November 1967: Boa 1 June 1979: Baal analyst: Steven J. Boccmazo (212) 553 -7163 1 1 tux information herein has been obtained from sources believed to be accurate and reliable, but because of the possibility of human and mechanical error, its accuracy or completeness is not ranteed. Moody's ratings are opinions, not recommendations to buy or sell, and their accuracy is not guaranteed A rating should be weighed solely as one factor in an invesu-ncnt decision. you should make your own study and evaluation of any issuer whose securities or debt obligations you consider buying or selling. Most issuers of corporate bonds, municipal bonds and . preferred stack, and commercial paper which are rated by Moody's Investors Service, Inc. have. prior to receiving the rating, agreed to pay a fee to Moody's for the appraisal and rating services. The fee ranges from S1,000 to S12.5.000. 1 p yright 0 1992 by Moody's Investors Service. Inc. Publishing and executive offices at 99 Church Street. New `fort. NY 10007 1 General Obligation/Special Tax November 2, 1492 1 Chanhassen, Minnesota 1 1 debt factors: Debt Statement as of 10/20/92 $ 000) Arr;c..int Bonded debt outstanding 536,81 Current offering (10/26/92) 4.9 Gross bonded debt x41.865 Notes payable Lease purchase � Gross direct and direct net debt 541,892 Overlapping debt 12.8 Overall net debt 554,7 For additional information please refer to Moody's 1992 Municipal and Govemment Manual. page 3041. Securtty: G.O., ULT. Defaults: No record found. 1 Debt Ratios Rate of Retirement Net Per % Median Principal Amount % Debt Capita Median 11 F.V. (%) o Amount Due ($ 000) Total Direct S3,395 S 555 5.9 1.3 In 5 years 517,390 41i Overall 4,437 1,071 7.7 2.7 In 10 years 35,150 84 tD Cities with population 10,000 to 24,999. Use of Proceeds: Series A to finance two sewer CIP/Future Borrowing: Additional borrowing is improvement projects within the city. Proceeds of likely over the next several years as the city continues Series B will be used to fund the city's share of to develop. Officials estimate that a general obliga- eligible public costs of improving two highways. Lion bond issue of approxiamately 55 million is possi Structure: Increasing annual debt service require- ble in 1992. However, the overall pace of ments peak at approximately S6.8 million in 1995, development will determine future borrowing needs. declines thereafter through 2001. Final maturity is I scheduled for February 1, 2005; rapid payout. administrative Form of Government: Council- manager. Mayor as a 40 member volunteer fire department. City factors: - serves two year term while council members are employees are covered by the state administered Pu elected to overlapping four year terms. Appointed lic Employees Retirement Association pension plan city manager and city treasurer. (PERA). During fiscal 1991, city contributions to it Public Employees; City contracts with Carver PERA totaled 574,045. County for sheriff and police services. City currently Litigation: No significant litigation reported. has 45 full -time and 32 part -time employees as well 1 1 1 . f General Obllgafton,rpocicl Tax November 2, 1992 Chanhassen, Minnesota 1 . 1 _ ........_. Chanhc ssen luat;on and Indicated Tax Net tax data: Assessment Year/ Taxable Market % Capacity Levy % Grant 1 988-8 "on Year Valuatbn (000) o Value (000) Change Rate (%) (CDC) Ccliected 1988 89 310,064 3469,327 17.3 21.12 S2,117 97.2 1989 -90 8,431 549,603 17.1 25.44 2,735 97.3 I 1990 -91 9,855 674,285 22.7 24.10 3,192 96.8 1991-92 9,759 709,763 5.3 © 25.38 3241 In process r3For property axes payable in 1989, assessed valuation is replaced by gross tax capacity, which is calculated by applying a different statutory formula to the estimated market value of property The gross tax capacity is multiplied by the tax capacity rate (a percentage of tax capacity), instead of the mill rate, to I determine the tax payable. For determining property axes payable in 1990. and thereafter the value of property used is net ax capacity, with to fiat Sb8,000 of a homestead property assessed at a lower ratio than before. The homestead credit is to be replaced with this valuation deduction. and local axing units receive replacement aid from the sate. M Overall tax capacity rate (including city, Carv County, ISD No. 112 and other overlapping traits) is 133.047 %. I 1991 Full Valuation: 3709,763,290 1991 F.V. per Capita: 357,522 1991 Equalization Rate: 0 91,8% o Ratio of assessor's estimated matte: value to state - indicated market value. " I Average Annual Growth F.V., 1987 -91: 15.4% 1991 Net Tax 1 Capacity Largest Taxpayers Business ($ 000) Rosemount, Inc. ) Aerospace /electrical engineering mfg. 3757 McGlynn Bakeries Baked goods 698 Northern Stales Power Utility 410 Datasery Computer software manufacturer 344 I The Press Commercial printing 273 PRN Enterprises (Paisley Park Studios) Audio /video recording studios 237 Instant Web Commercial printing/mailing 229 I MTW -GL Partners Victory Envelope Office showroom /warehouse 223 Envelope manufacturer 196 Empak Injection molding 174 ' economic Population: Chanhassen Location: About 11 miles southwest of Minneapo- actors: % lis, in Carver County. Small area in Hennepin Year Population Change County. ,I 1970 4,879 - Area: 23.6 square miles 1980 6,359 30.3 Population Density: 523 per square mile 1990 0 11,732 84.5 I Source: U.S. Census Bureau. MEstimated 1991 population. 1:.339. 1 1 I Ganorci 0bklgctcnl'Spoc.cl Tax November 2, 1992 .: Chanhassen, Minnesota 1 1 1 Population and Housing Characteristics: Chanhassen State U.S.' 1980 1990 1980 1990 199 Population: Median age 28.4 30.5 29.2 32.5 32.:1 % school age 25.1 19.8 21.2 19.0 18.: % working age 62.4 64.9 59.5 60.8 61." % 65 and over 4.9 3.8 11.8 12.5 12.. No. persons/household 3.0 2.92 2.74 2.6 2.611 Income: Median family income $29,784 $55,525 521,185 $36,916 $3522 % below poverty level 3.5 2.0 9.5 10.2 13.1 Per capita income $9,754 $20,654 $7,450 $14,389 $14,422 Housing: owner occupied 75.8 85.4 71.7 71.8 6 = : ", % built before 1939 13.1 5.2 33.3 24.5 1 % built since last census 37.4 523 252 18.5 ^ . Owner occupied median value $84,700 $124,400 S54,300 $74,000 $79. Median gross rent $277 $508 $236 $422 S- Occupied housing units 2,075 4,016 - - - Source: U.S. Census Bureau. Per Capita Income j 1979 1989 % Chcnc Chanhassen $9,754 $20,654 , 1111 Carver County 7,712 16,116 109. State of Minnesota 7,450 14,420 93.= • 1 1 1 1 1 1 1 6 t; r.orc1 Obilgation/Special Tax $cv•mbsr 2, 1942 1 Chanhassen, Minnesota 1 . 1 Labor Market Characteristics: Carver County 1 Labor Total llnempbyed Year Force Employment County State U.S. 1981 20,776 19,849 4.5 5.5 7.6 I 1982 20,962 19,536 6.8 7.8 9.7 1983 21,083 19,723 6.5 8.2 9.6 1984 22,594 21,573 4.5 6.3 7.5 I 1985 21,921 20,971 4.3 6.0 72 1986 22,687 21,793 3.9 5.3 7.0 1987 23,690 22,743 4.0 5.4 6.2 1988 24,835 24,074 3.1 4.0 5.5 I 1989 25,001 24,039 3.8 4.3 5.3 1990 n 25,347 24,302 4.1 4.8 5.5 1991 25,525 24,376 4.5 5.1 6.7 I 7191 El 25,997 25,081 3.5 4.2 6.7 7/92 a 25,422 24,599 32 4.0 7.6 Source: Department of Labor. Bureau of tabor Statistics. I (Base year of cunrttt benchmark. Data for preceding years may not be consistent ® Monthly data not seasonally adp"vM Largest Employers 111 Employees Employees 1992 1992 Rosemount, Inc. 1,000 The Press , 295 1 McGlynn Bakeries 530 Empak 295 Bloomberg Companies 380 Instant Web 270 United Mailing 378 Redmond Products 250 I Datasery 350 Ver- Sa -Til 200 Source: Of icial statement I finartcict!tactors: Operating Funds Financial Performance (fiscal years ended 12/31 8 000) 0 - % Change 8 - 1989 1990 © 1991 to 1989 -90 1990 -91 I Revenues 57,780 55,895 S8,125 0.3 7.8 Expenditures 7,021 6,696 7,946 3.5 0.8 Operating surplus © 94 9 1,999 - - al General and Debt Service Funds (modified accrual method of accounting). I ® General Fund only. ® Excludes refunding bond proceeds of S2.609.934. © Excludes refolding bond proceeds of $2,482.358. 1 1 f Gior.ral Obilrat:cn/Spec1al Tax Novombor 2,1992 7� Chanhassen, Minnesota 1 1 1991 Sources of Revenue % 1991 Items of Ex era!hre °' Transfers from Capital Project Funds D 28.3 Debt service D 65. General property taxes 25.8 Public safety 12.5 Special assessments 21.1 Public works 10. Interest on investments 8.1 General government 7. Intergovernmental 7.4 Q Debt service primarily supported by us incrematts Ind special Licences and permits 5.4 assesmtents. 0 Primarily tax increment for debt service. General Fund Financial Position (at 12/31 $ 000) 1989 1990 1991 Cash and investments S1,152 S1,177 $1,42 Operating loans - - - Other cturent liabilities D 206 205 Year -end cash surplus $ 946 S 972 $1,15 Receivables D $ 61 $ 44 $ • 64 Fund balance $1,007 $1,016 $1,211 0 Net of deferred revenue. 7894M01 1 • 1 1 1 1 1 1