The URL can be used to link to this page

96-210Council File # �10 Green Sheet # 3 a 3 g g RESOLUTiON SAINT PAUL, MINNESOTA Presented By Re£erred To Committee Date 0 Whereas, the City Council adopted Council File 96-45 on January 10, 1996 authozizing the Department of Finance and Management Services the Authority to initiate a11 necessary action leading to the issuance of City Bonds on March 13, 1996; Now Therefore Be It, Resolved, that the City Council accepts the attached report, including recommendations, from the Department of Finance and Management Services regarding the Band Sale on March 13 in accordance with C.F. 96-45. Requested by Department of: Adopted by Council: Date Adoption Certified by Council Secretary B Appr By: � Finance and Mana ement 5ervices sy: � Form Approved by City Attorney By: ��-- j �-�"� � - a �- �G Approve Mayor £ r ubmission Lo Counc' � By: 9c.- a�b � �Finance Services D 2f20/96 GREEN SHEE N_ 32399 CONTACT PERSON & P4tONE MRIA1lDATE INRIAVDATE O DEPAATMENT O1RECfOA a, CRV COUNCIL Martha Rantorowicz 266-8836 nss�cx �CRYATfORNEY CITYCLERK MU5T BE ON COUNCIL AGENDA BY (DATE) N �� p � a BUDGET DIflECTO � FIN. & MGT. SERVICES DIB. ROUTItW FEBRUARY 28, 1996 ORDER QMAYOR(OFiASS�5TANT� O TOTAL # OF SIG.NATURE PAGES (CLIP ALL IOCATIONS FOR SIGNATURE) ACTION REOUESTED: Report frcm the Department of Finance and Management Services regarding the 1996 Bond Sale which includes recommendations. RECOMMENDATtONS:Approve(A)wReject(R) pEFiSONALSEHVICECONTflACTSMUSTANSWERTHEFOLLOWINGCUESTIONS: _ PLANNMG COMIMISSION _ CIVIL SERVICE COMMISStON �- Has this perso�rm ever worked under a contract for this departmBnt? - _ �� _ YES NO _ SiqFF 2. Has this person/firm e�er been a city employee? — YES tJ0 _ DISTRIC7 COURT _ 3. Does this persanRirm possess a skill not normally possessed by any curraM ciry employee? SU?PORT$WHIGHCOUNCILOBJECTIVE4 YES NO Ezplafn all yes answers on separate sheet and attaM to green sheet iNR1ATINC� PFiOBLEM, SSUE. OPPO� fl'iUNI7v (Who, »fiat. When, Where, Why): . "- Provide update to City Council on the 1996 Bond Sale .� � $14,500,000 G.O. Capital Improvenent Bonds stt� 2 $ 2,200,000 G.O. Street Improvement Special Assessment Bonds $ 6,750,000 G.O. Street Improvement Special Assessment Refunding Bond°� $ 9,100,000 G. 0 WaYer Polution Abatement Refunding Bonds ADVANTAGES IFAPFROVED: N/A DISAOVANTAGES IFAPPqOVED: N/A DISADVANTAGES IF NOTAPPflOVEO: NfA TOTAL AMOUNT OF TRANSACTION $ COST/REVENUE BUDGETED (CIRCLE ONE) YES NO PUNDIHG SOURCE ACTIYf7Y NUMBER FINANCIAL INFORMATION. (EXPLAIN) q `- � lb Recommendations For City of Saint Paul, Minnesota $14,500,000 General Obfigation Capital fmprovement Bonds, Series 1996A $2,220,000 General Obligation Street Improvement Special Assessment Bonds, Series 1996B $6,750,000 General Obligation Street Improvement Refunding Bonds, Series 1996C $9,100,000 General Obligation Water Pollution Abatement Refunding Bonds, Series 1996D Study No. S0730L4M4N4 SPRINGSTED Incorporated February 19, 1996 856.SEVENTH PLACE,SUSTE100 SAINT PAUL, MN 55101-2143 �� 612-223-3000 FAX:612-223-3002 � � � February 19, 1996 Mayor Norm Coleman Members, City Council Ms. Martha Larson, Director, Department of Finance and Management Services Ms. Shirley Davis, Treasurer City of Saint Paul Saint Paul City Hall 15 West Kellogg Boulevard Saint Paul. MN 55102 °l�- a�d SPRINGSTED Public Finance Advuors Re: Recommendations for the Issuance of: $14,500,000 Generai Obligation Capital Improvement Bonds, Series 1996A $2,220,000 General Obfigation Street Improvement Special Assessment Bonds, Series 1996B $6,750,000 General Obligation Street Improvement Refunding Bonds, Series 1996C $9,100,000 General Obligation Water Poliution Abatement Refunding Bonds, Series 1996D We respectfully request your consideration of our recommendations for the above-named issues. A summary of the purpose and primary characteristics of each issue is provided herein. Capital Improvement Bonds, Series 1996A The Capital Improvement Bonds are being issued to finance a portion of the City's 1996 Capital Improvement Program. The Capital Improvement Bonds are being issued in the total principal amount of $14,500,000, with principal repayment due March 1, 1997 through 2006. The structure for this issue was determined after discussions with City staff about fluctuations in the annual tax levies for SAINT PAUL, MN � MINNEAPOLIS, MN � BROOKFIELD, WI � OVERLAND PARK, KS • WASHINGTON, DC � ]OWA CITY, IA City of Saint Paul, Minnesota February 19, 1996 � � -� �u existing tax-supported debt. The structure was customized to partiafly smooth out levy requirements in the next several years. Additional customizing of the structure for Capital fmprovement Bonds is expected to be conducted for next year's issue as well. The Capital Improvement Bonds will be paid primarify from annuat tax levies. However, approximately $2 million of the issue, representing a portion of the Wabasha Street Bridge financing, is expected to be paid from annual revenues from the District Heating franchise fee. Page 7 of these recommendations indicates the proposed debt service schedule for the Capital Improvement Bonds and also shows the franchise fee revenue needed to offset the tax levy (Column 8). Column 9 indicates the estimated tax levy portion of the issue based on current interest rates. The first levy for this issue was made in 1995, payabfe in 1996, to cover the firsi interesi payment due on September 1, 1996 and the subsequent principai and interest payment due March 1, 1997. This payment cycle will continue fior the life of the bonds. Street Improvement Special Assessment Bonds, Series 1996B The Street Improvement Bonds are being issued in the totai principal amount of $2,220,000 to finance street construction projects for Cretin/Bayard, ComoNalentine, Fourth/Howard, Hatch/Park and Ivy/Birmingham. This issue will be paid from special assessments against benefited property. Special assessments totaling approximately $2,220,000 are expected to be filed by November 15, 1996. Assessments that are not prepaid by that date will be spread in 20 even annual installments of principal, with interest on the unpaid balance charged at an estimated rate of approximately 6.00°/a. Historically, the City has been receiving prepayments for approximately 20-30% of the assessments filed each year within 30 days of adoption of the assessment rolis. In accordance with City policy, interest is not charged on prepayments received during the 30-day period. , Page 8 provides an estimated assessment income schedule and assumes approximately 20% of the assessments will be prepaid. City staff has reviewed several financing options in an effort to avoid assessment income shortfalis in the event the prepayments received cannot be invested at a rate at least equal to the bond rate. The debt service schedule for this issue has been structured to provide for a large principal payment of $300,000 in the first year (March 1, 1997), which will be made from the projected prepayments received in the first year of collection. Typically, the remaining principal payments would be made over the next 19 years to match the remaining term of the assessments. However, prepayments historically continue to come in each year, so we have shortened up the issue to a 12-year obligation with a balloon payment of $950,000 due on March 1, 2008. This will allow the City the flexibility to pay off all or a portion of that principal amount from additional prepayments which have been accumulating. If a portion of the balloon payment cannot be covered by assessment funds on hand, the City can refinance that balance over the remaining term of the assessments. This refinancing could either take the form of an internal loan or it could be included in the City's annual bond issue for street improvements. The debt service schedule for the Street Improvement Bonds is provided on page 9. The shoRening of the issue's term to 12 years from 20 years has the potential to significantly reduce overail interest costs to the City. We have included a call feature in this issue which allows the City to refinance the issue as early as March 1, 2004 or any date thereafter. Page 2 City of Saint Paul, Minnesota February 19, 1996 Street Improvement Refunding Bonds, Series 1996C �,c�-a�o The objective of this refunding is to reduce interest costs on certain outstanding debt. Proceeds ofi the Street Improvement Refunding Bonds will be used to refund in advance of maturity the following outstanding issues: 4tefunded Street lmorovement Bonds General Obiigation Improvement Bonds, Series 1985A, dated July 1, 1985 General Obiigation Street Improvement Speciai Assessment Bonds, Series 1986, dated June 1, 1986 Generai Obligation Street improvement Special Assessment Bonds, Series 1987, dated April 1, 1987 General Obligation Street Improvement Special Assessment Bonds, Series 1988D, dated March 1, 1988 General Obligation Street Improvement Speciai Assessment Bonds, Series 19896, dated March 7, 1989 General Obiigation Street improvement Special Assessment Bonds, Series 19906, dated Apri{ 1, 1990 Total Refunded Debt Maturities to be Refunded 1997-2006 1997-2007 1997-2008 1997-2009 1997-2010 1997-2011 Total Amount of Refunded Princip� $ 690,000 1,320,000 1,400,000 1,710,000 1,350,000 �i�tl� � � �7 $8,440,OQ0 Redemption Date [b�l 2-1-97 � Eb�l 3-1-99 � Based on current market conditions, we anticipate the 1985 through 1990 issues can be refinanced at a net effective rate of approximately 4.54%. The remaining debt currently outstanding for the 1985 through 1990 bonds carries net interest rates ranging from 6.02% to 8.20%. The net savings anticipated due to the refundings is approximately $1,623,212 and the present value savings is approximately $915,518. These savings figures are net of ali costs of issuance. A summary of the annual savings is shown in Column E on page 11 of these recommendations. Included in the refundings are cash contributions from each old issue, representing existing funds on hand as a result of assessment prepayments and investment income. The contribution of this cash in the refundings is required by arbitrage regulations, but also allows the City to reduce the amount of new principat issued to replace the old bonds. In addition, the City used existing funds to cover a balloon payment due on February 1, 1996 for its 1993 Temporary Improvement Bonds, rather than extemally refinancing them. Prior to the refunding, the cash position for the 1985 through 1990 issues totaled approximately $3,555,900; payment of the 1993 Temporary Bonds totaled $1,482,295, leaving a net amount of remaining cash used in the refundings of approximately $2,073,000. The 1985 through 1990 issues of street improvement special assessment bonds will be refunded by means of a"full net advance" refunding. For this method of refunding, proceeds of the new issue will be placed in an escrow account held by a bank and invested in government securities to pay all of the debt service requirements of the old bonds through the earliest cail date for each issue. Page 3 City of Saint Paul, Minnesota February 19, 1996 ��-a�d The Street Improvement Refunding Bonds will be paid from the same assessments originaily filed for the 1985 through 1990 bonds. In addition, assessment income originally filed for the 1993 7emporary Bonds will also be used to cover debt service requirements. The debt service schedule for the Street Improvement Refunding Bonds is provided on page 12. Although the remaining assessment income of the 1985 through 1990 and 1993 bonds is pledged to this issue (Column 8), a net tax levy occurs, as shown in Column 9. This levy requirement is due to a situation regarding the 1986 improvement Bonds. The City staff is reviewing the special assessment colleciion history of ihe 1986 issue. Water Pollution Abatement Refunding Bonds, Series 1996D The objective of this refunding is to reduce interest costs on existing debt. Proceeds of the Water Poilution Abatement (4VPA) Refunding Bonds will be used to refund in advance of maturity the following outstanding issues: Refunded WPA Bonds General Obligation Water Poilution Abatement Refunding Bonds, Series 1975, dated March 1, 1975 General Obligation Water Poilution Abatement Refunding Bonds, Series 1987, dated April 1, 1987 Total Refunded Debt Maturities to be Refunded 1997-2005 1997-2004 Total Amount of Refunded Princip� $1,410,000 �c �� $8,845,OOD Redemption Date � � The refunding of the 1975 and 1987 WPA Bonds will be conducted using the same method as the Street Improvement Refunding, a"full net advance" refunding. The 1975 WPA Bonds are outstanding at a net interest rate of 6.25% and the 1987 WPA Bonds are outstanding at a net interest rate of 5.83%. Based on current market conditions, we anticipate both issues can be refinanced at a net effective rate of approximately 4.16%. The net savings anticipated due to the refunding is approximately $500,157, with a present value savings of approximately $427,842. A summary of the annual savings is shown in Column E on page 14. The City's existing WPA debt is currently being paid from net revenues of the City's sewer fund. It is anticipated that the WPA Refunding Bonds wili continue to be paid from this source as weil. Common to All lssues In addition to our recommendations above for each individual issue, we recommend the foilowing items, which are common to all four of the bond issues: Sale Date and Time 2. Prepayment Provisions Wednesday, March 13, 1996 at 10:30 A.M. with award by the Councii at 3:30 P.M. ihe same day. For each issue, except the WPA Refunding, bonds maturing on March 1, 2005 and thereafter will be callable on March 1, 2004 and any date thereafter at par and accrued interest. Due to their short maturity Page 4 City of Saint Paul, Minnesota February 19, 1996 3. :� 5. C�7 � Credit Rating Comments �I �-�. to schedule, the WPA Refunding Bonds will not be subject to redemption prior to their maturity. Rating applications will be made to Moody's Investors Service, Standard 8 Poor's and Fitch Investors Service for these issues. City staff is currently preparing for rating teleconferences that witl be held with each of the agencies prior to the sales. Bank Qualification These issues ezceed $10,000,000 and are therefore not eligible for bank qualification. Non-bank-qualified bonds receive interest rates slightly higher than bank-qualified bonds. Rebate Requirements The bonds are subject to the federal rebate requirements. However, if the City can meet the 18-month or 2-year spend-down requirements for the Capital Improvement and Street Improvement Bonds, these issues will be exempt from rebate. The City will not owe any rebate from the investment of the bond proceeds for the two refunding issues because the proceeds will be invested in the escrow accounts at a yield tess than the yield on each of the refunding bond issues. Bona Fide Debt Service Fund The City must maintain a bona fide debt service fund for each issue or be subject to yield restriction. Economic Life The average maturity of the bonds cannot exceed 120% of the economic life of the projects being financed. The economic life for infrastructure improvements is 20 years and for capital facilities it is 40-50 years. These issues are within the economic life requirements. Continuing Disclosure These issues are subject to the SEC's new continuing disclosure rules. A summary of the requirements has been provided to your staff. Springsted provides continuing disclosure services under separate contract, copies of which have also been provided to your staff. Page 5 City of Saint Paul, Minnesota February 19, 1996 �l�-a.�o 9. Attachments Capital Improvement Bonds Debt Service Schedule Assessment Income Schedule Street Improvement Bonds Debt Service Schedule Street improvement Refunding Bonds Savings Schedule Street Improvement Refunding Bonds Debt Service Schedule WPA Refunding Bonds Savings Schedule Terms of Proposal for each Issue Respectfully submitted, ��Y}/�Cc,p�U� c�hl'�'1 iJO2�� !J � SPRINGSTED Incorporated mmc Provided to Staff: Summary of Continuing Disclosure Requirements Page 6 °I (� -�-tb �a � � � ii a � `o � � r � $w Q y � Z a� a N a m N 'O C O m c m E m 0 ,� a M � m� C .� C �6 �U 7� aC9 �o� ao� y O � � � m ��'m UaN � � � � r I � � � � � � m � m G GI r M ��t� �mo � O .�... f n C z m � o'' � � a m ¢ �oa�ec�r,-�n�nc�m �ONN p(O rr fp170 �Nd f001 Pr �N a �oncouia�iri�oa M 1OC9N10 t0 bt0 W aD W W NOD�CCaDf0c0 T T r N T T T T T r r(p!p 1pN IqQlrMfO NO W OI�P1� V�OfO ae�oo,o�n�c<o 10 tf1 0� W C1 O> (O � O l7 acm�ow r.cocoo�n u� �n �n w �o a �n �n �o T T T T T r' T r T T m O �qaDO aDtO �OtO YON (g 7�� d� h c`�aDCOCO N a0 t m� �� i7 h f0 � V OD W � _ � rr0 �C9GDCD Of � � �� N N N M r� � f 9 N N r � � 3 m � m �i ¢ �ca�om.-��n�nmao oo� �Na��n�vc�w r� fp f�pp tON P r' ON � O�D W W N O�D CD C�D O � N r r r N �+- r r r � "' O b O O N N O O O O ..� �� r OD r t0 N N O O N^ O.V m rhQ�tOPf� W Mt0 � C «�. �aDOOi'd'��Ot7 � �A •� c aco�n��cu�n�cnv a � r�r- nnrnnn Y T T N r T T r T r "'yv 0�00 � NO000 �-CO�tONNOONN � � f� 0 (O h h l7 (7 f0 �- y 1�Alpin c da m ¢ n= � C a` � � � W � m Y O j � � J v } 0 0 0 0 0 0 0 0`oE o O O O O O O O O O O a�nr.rno viaioioivvvvva 0 0000000 o$0000000 0000000000 b N O N b N O O� O �CV�A<OhcVO �NP c�cv_cv�oma�n�n�o�o r T T r T T T r T r I�OD� O NPf �tpf0 Oi � O� O O O O O O �� N N N N N N N 10t01� ODOf O� NM a �� m� W O O O O O �� W O O O O O r r r N N N N N � r � � � n N � m N � N 7 � � N m n � � � r b M T rn n T N � Of v l0 0 0 O n v r Q O F- ° o ° o_ ° o� o � a W �- a � � m � O � a V � � � V m V C U �� m � 7 O N ♦- a y m j � o ° m ° U N m y 3 oR o « Z U 4 H � O r � MOC+� � ma�` �t r Gp a oi ri N .i+ m C d O � r C N m � . Q � � c y « V L 3 m `- ¢azZ 0 �u�io� � � Q m � R Q � � � y " � R R , � � a � U m m 3 II m L U � N � O � � .� � � C m U � C � � . N � 7 y U W £ E wc a � t O � � a � m 'a � � a � m � m `m � � c m 3 R q{ 7 N U � � °: r c F. Page 7 �( c. -� �o a �o m rn ++ o� ce T L O -a � i 0 �, u � c R ., � io a ui mF LL y C7 az m.. L Q Ra m � i >. am V C m B N N m H N Q .� {Q +��1 M U N G c � C ++ +1 C � � -mm .r > �o 3orn l6 L 01 a a� E i+ 1-� N C 61 +-1 1-� +-I l6 m L y L fq O y � N � � O U C7m W O U 2 1-1 F Z W N W N Q O F w � Q a m A r N tp � r U� � T T T L a •• � � W C � � C +d � a W a O OD � O �q O �l7 O b O� O� O� O Iq O 1n O In -+ � o.-�caorn�a<u�n�o�coa�onrnoaco Y OMOtONOf �.-I�f001tpNaDetOfONOf �� O � ��Nt0��0�01�001+f EDNPN�D��O � F� Nr� ODCO f�f�-t01n 1[f� 0�7fONN� �00� t} N T r T r!� T T T T� r r T T T r' T f� R Yd° � O� �OtnO �[f OtpOtpO�O�O�OtqO tC) NO � f0.-c77f0f�0f ONC`�tpfOt00f rN0 �f� aD L O � �� W Iqrf�(90f0 N W V O�O C90f 1nrP(O m• � Nt0 �tOO�L10 V Of f7COC7f�N f0.-tOO�ff Yt0 � N00�COCOPI�fO1nM��f f9f9NNrr C � .- � M Q� rl � W � O. � +i . o � c � +i � L . a� � U L � m R � � } � O U � W C L . +i /6 � rl m � LL � � O O O O O O O O O O O O O O O O O O O O O O Y7 1n 1� 1n 1� �A 1n �q �ff 1� Y9 � u) {� 1n in �q l� In tq onr�r.nr.nr�r�n�i.r.n�.r.r�r.r�r.n �i oi oi oi oi oi oi oi oi ai oi oi oi oi ai oi oi oi oi oi oi �maomc000mcomcomwaowaowaommcoco tDI�ODOf 0 NcOal�tOt�c00f O.-N W�t� �O Of �Of �0000000000 �r�r�-r�- �� N N N N N N N N N N N N N N N N N u'1tOf� aD0lOrNf7�bfOf� W �O� NIO�N W Of Of Of Of OOOOOOOOOO �TT �Te- Of Of O7 �Of 0000000000000000 +-�� r� NN NN NNNh NNNNN N N N m � a M � � � '�! v � � O O 0 o" N N N y J N O F N a+ C ..�i >. +�i C F L � d L p Y - • N � V N � E L � 4+ +�+ M 0i +� N N � M W C O 1.�+ N � m � c � m M 9 Q R a Page 8 °l L - �-te �� I 0 � c �� a? Q °� T m � � � � �•� � G � � � � V �O� �+ � �r C $ � ai a E � 6 N . < � � � I � � m M � m � tp�R L' � � LL �� N � � p o��oo P � m'�� N � N� O� V � N Y� N �f� 7 O O � � �CV N�t9 C��RYY t7 NPJ In�t��01� V ' >>�y g��NC�gte�r�0000n�u� n�Y2ou� �g,� � �c�i6 c� ��ocVbiu� a r� oi.-r�rov�i� c°�ic��r�g� � � �� R Z E ` � � � o � .� � �,� a�� a � a� O O O O O O O O O O O^ O O O O O O O O O ^ � � ��g�m��N��$�� vcVs,"$�`'��^$��a�i`.'�-��g� � � � � O O O O O O O O O O O O O O O O O O O O � � � �cS� i: N W aD ODnn(O ��0� c910' ^�'00 W l�' N � � � � � � � � � � � � � N � O O O O O O O O O � O �... � ^� ��5�� r � � 3��g� �$'�53'��'��i^�'g�000000aoo � �� '�� a� � �� N C N�� N Q� p�� O O O O O O O O � C R/O GD �r��01U�Q� � �� : : : f + � v;��Si2Sg�25�g�g�25�� N(V NN NNCV NNNI�V NNNNNN } ��= �� N N N N N N N N (�V N N Q } O H � �� a � � v F � $ c �� q � O � a<�m 0 Z� a � (� N� ��m� � C N m G ( �� ~ N � 0 � Q �sZz so�� r N P Q � � ¢ � 'C � .. � c � v�� WU �aa'� m � � � � � � m � � � � � � � $ �m �� U � � N .� m @� m � � � b �� Page 9 ��-a�o St. Paul, Minnesota G.O. Refunding Bonds, Series 1996 Full Net Advance Refunding of 6 Various G.O. Street imp. Bonds Issuer Funds Required: $2,073,220.28 Date of Bonds: 04/01/96 Delivery Date: 04/09/96 Refunded Call Date: Various 1 st Callable Date: Various Comparison: Refunded Refunding Principal: 8,440,000 6,750,000 Bond Years: 46,237.50 Avg. Maturity: 6.850 N IC: 4.543% T4��i �18t Savirtgs: 1,6�3.211.8'L Preser�t Va[�� Savings; 915,518.(if's As � af P.V- Ref.1�t : 27.50 As 9a af P.V. Ref. DIS.. 9 41 Prepared: 02it7i96 By SPRINGSTED Incorporated Page 10 �` - a-In St. Paul, Minnesota G.O. Refunding Bonds, Series 1996 Annual Savings Analysis Period Refunding Non-Refunded Total New Existing Ending Debt Service Debt Service Debt SeYVice Debt Service (1) (2) (3) (4) (5) 09/�1f96 03/O1/97 631,506.25 631,506.25 1,284,035.00 09/O1/97 03/O1f98 842,825.00 842,825.00 1,213,070.00 09/O1/98 03/O1/99 822,700.00 822,700.00 1,172,830.00 �9/O1/99 03/O1/2000 801,425.00 801,425.00 1,131,850.00 09/O1/2000 03J01/2001 779,000.00 779,000.00 1,079,890.00 09/Ol/2001 03/O1/2002 731,000.00 731,000.00 1,�32,955.00 09/O1f2002 03/O1/2003 708,450.00 708,450.00 980,512.50 09/O1/2003 03/�1/2Q04 685,350.00 685,350.00 908,230.00 09/O1/2004 03/O1/2005 661,700.00 661,700.00 887,200.00 09/al/2005 Prepared: 02/17/96 By SPRINGSTED Incorporated Savinas or (Loss} (6) 652,528.75 370,245.00 350,130.00 330,425.00 300,890.00 301,955.00 272,062.50 222,880_00 225,500.00 03/O1/2006 612,500.00 612,500.00 809,357.50 , 196,857.50 09/O1/2006 03/al/2007 538,875.0� 538,875.00 717,9�2.50 179,077.50 09/Ol/2007 03/O1/2008 392,025.00 392,025.00 530,725.00 138,700.00 �9/�1f2008 03/O1/2009 275,575.00 275,575.00 350,375.00 74,800.00 09/O1/2009 03f�1/203� 188,575.0� 188,575.00 228,637.50 09/O1/2010 03/O1/2011 105,000.00 105,000.00 139,100.00 4a,062_5� 34,100.00 Totals 8,776,506.25 8,776,506.25 12,466,720.00 3,690,213.75 Present Value Rate...: 4.35950% Funds from Issuer....: (2,073,220) Present Value Savings: 915,518.06 Funds to Sinking Fund: 6,218.35 As a of P.V. Ref. DjS: 9.41� Total Net Savings....:1,623,211.82 Page 11 m �° �« � a �i ° a � o � U r C ao mw F m� a`? 2 a y T m � a C O m W C � C w m ¢ c m E > � O o a N m — c C � C Y _m 'm0 a�� L � W y O � O � m � � �� U�m � � � � T T � � � rn � H m M � m C m �.. � � a 0 � LL gj� ��000000000��arna n.na � a� a�oco roco�n�n �y n�rn cina«�c�.i� � r � a m a � U ��o �00000000000r��o��n ca—� �'! rcnn�ooa <� n c�n a� rn rn� � T a Z � v O O O^�� N� n O �[ f n O O O O O O V � � 7 O <(O r r C7 W�D � � � �00 W �r � � '� � 7 U m ¢ a m cnoac�a��n�nrnrn�naa�vn�nr�a a U m o°D vaaow�caaoaoo�noma�n�on in l7MbPODON7/Of�O� �n m � o r�<aoaonicicnrrnoco�oco�o��ci o c c�o�von rm nrnaanwrnao .- ° m— mconnn�c <oin acncnw� co a o, ,p` m Q �� n f0 NtO00cqCD N N Of f0 � 70000 N a0 t0 c7 W tA �[f t� .- aD T N O b t7 O V O Of W a Of 1If CO fD f� GO f0 M O N c9 �� W M�- f� I� M�� l0 Iff r O> OD O � o m��cd�r<oa rnam aorn.- � �cmaoaoconni:�<o�sta�.� c� � �� y � ONO NOOh NOO �N � i�• pOOO � •V �'� �naonaoov_mn�ncoo�n C N N'- Of r OD Ip N W N Ip OD b •� C W'.f N O t�C90 aDtO M� I� 000 d� �OCOCD CO P I+f� tO�D�O �M N� � � v t O 1 q O� O O O O O O N N t A� f f O O O O �� nN�p ON �fI00I�N h f� O V O O a M P�A GD O 1A b O (OPt�tOy rCD 1qrf�COCV 1f1Mb C ��O a NOaD N c9 �aD fDaN� � N N N N N r�- r � �� o� o� o o o� o 0 0 0 0� o 0 0 0 0� o o� o� O O O O O O O O O O O O O O O O N O � N 1q 1� Of O � N M� N f0 h OD Of O �.- N ¢ c+iriririvav<vvvvd�aui � O N � n n � O b � N O N a� 00000�000000000000 0 o0000 000000000 0 � o0000 000000000 0 C N� b� t np O O O � O N O O b O O �, A A h I� i� 1n N �q iq N t� N b t� O �/f Q , min�n�in�nu��nu��ac�a�� n � •- � naorno acov�n�cnaorno�acoa � N,N,.. �m � OOOOOOOOOOr �-rr �f rnrnrn000000000000000 � r T- r N N N N N N N N N N N N N N N � '� a^ N(O f� OD� O N(O <N(O F 00 �O�N �>.. � W m T01 OOOOOOOOOO TT (q � J �� m W O O O O O O O O O O O O O J ��- r� r N N N N N N N N N N N N N } Q F N N n m ono N N N i+ m C « O y m C � � � � Q � Q C C � �+ V c3 m- aazz n�rou� N M N � av a g Q Q ��m m � C � � . � � a � c w orV o > > = [DQQH �`-ato m 7 v m L V � N t O N C O N i m R C W U �F � j� a � W > N Q 7 y � U � � � � � rn� c � m � t � U V �v � � � m •� � ev m � d � R W .�.. N U m � °� s � r Page 12 �L-ai� St. Paul, Minnesota G.O. Refunding Bonds, Series 1996 Full Net Advance Refunding of G.O. WPA Bonds, Series 1975 & 1987 Even Annual Savings Structure Issuer Funds Required: $8,032.54 Date of 8onds: 04/01/96 Delivery Date: 04/10/96 Refunded Cail Date: 09/01/96 1st Cailable Date: 03/01/97 Comparison: Refunded Refunding Principal: 8,845,000 9,100,000 Bond Years: 37,112.92 37,091.67 Avg. Maturity: 4.196 4.076 NIC: 5.908% 4.166% To#al l�e� Sae�g�: 504,137.2�5 Preserrt Vakte 5avir�s: 42�,8�F.21 f+s 9fn of P.V. fi�fi. I�tt,: 2�.33� As �la 6f P.V. Ref. D1S.: 4.49 Prepared: 02/17l96 By SPRINGSTED Incorporated Page 13 q�-a�o St. Paul, Minnesota G.O. Refunding Honds, Series 1996 Annual Savings Analysis Refunding Non-Refunded Total New Existing Date Debt Service Debt Service Debt Service Debt Service (1) (2) (3) (4) (5) 09/O1/96 03/O1/97 1,543,702.08 1,543,702.08 1,621,775.00 09/O1/97 03/O1/98 1,558,475.00 1,558,475.00 1,609,200.00 09/O1/98 03/O1/99 1,539,725.00 1,539,725.00 1,592,325.00 09/O1/99 03/O1/2000 1,567,550.00 1,567,550.00 1,631,000.00 09/O1/2000 03/O1/2001 1,589,900.00 1,589,900.00 1,652,000.00 09/O1/20a1 03/O1/2002 1,082,900.00 1,082,900.00 1,142,000.00 09/O1/2002 03/O1/2003 1,067,925.00 1,067,925.00 1,127,500.00 09/O1/2003 03/O1/2004 500,925.00 500,925.00 535,300.00 09/O1/2004 03/O1/2005 130,500.00 130,500.00 170,000.00 Prepared: 02/17/96 By SPRINGSTBD Incorporated Savings or (Loss} (6) 78,072.92 50,725.00 52,600.0� 63,450.00 62,100.00 59,100.00 59,575.00 34,375.00 39,500.00 Totals 10,581,602.08 10,581,602.08 11,081,100.00 499,497.92 Present Value Rate...: 3.98639°s Funds from Issuer....: (8,�32.54J Present Value Savings: 427,842.21 Funds to Sinking Fund: 8,691.88 As a of P.V. Ref. D/S: 4.49g Total NeC Savings....: 500,157.26 Page 14 qC-a1 THE CITY HAS AUTHORIZEA SPRINGSTED INCORPORATED TO NEGOTIAI'E TffiS ISSUE ON ITS BEHALF. PROPOSALS WII.L BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $14,500,000 CITY OF SAINT PAUL, MINNESOTA GENERAL OBLIGATION CAPTfAL IMPROVEMENT BONDS, SERIES 1996A (BOOK ENTRY ONLI� Proposals for the Bonds will be received on Wednesday, Mazch 13, 1996, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated, 85 East Seventh Place Suite 100, Saint Paul, Minnesota, after which time they wfll be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 3:30 P.M., Cenual Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the tune of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (6�2) 223-3000 or fax (612) 223-3002 for inclusion in the submitted Proposal. Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the time of sale specified above. Proposals may also be filed elecuonically via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal, within a one-hour period prior to the time of sale established above, but no Proposals will be received afrer that time. If provisions in the Terms of Proposal conflict with the PARITY Rules of Participation, the Terms of Proposal shall control. T'he normal fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibility of the bidder. For further information about PARITY, potential bidders may contact PARITY at 100 116th Avenue SE, Suite 100, Bellewe, Washington 98004, telephone (206) 635-3545. Neither the City nor Springsted Incorporated assumes any liability if there is a malfunction of PARITY. All bidders are advised that each Proposal shall be deemed to consutute a contract between the bidder and the City to purchase the Bonds regazdless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated April 1, 1996, as the date of original issue, and wIll bear interest payable on March 1 and September 1 of each yeaz, commencing September 1, 1996. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature Mazch 1 in ffie years and amounu as follows: 1997 $1,215,000 1998 $1,225,000 1999 $1,250,000 2000 $1,665,000 2001 $1,375,000 2002 $1,425,000 2003 $1,500,000 2004 $1,550,000 2005 $1,625,000 2006 $1,670,000 BOOK ENTRY SYSTEM The Bonds will he issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act Page 15 a�-�.�o as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amouni of $5,000 or any multiple thezeof of a single maturity through book entries made on the books and records of DTC and its participants. Principai and interest are payable by the registraz to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments ro beneficial owners by participants will be the responsibiliry of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The Treasurer of the City wiil serve as registrar. OP"I'IONAL REDEMPTION The City may elect on March 1, 2004, and on any day thereafrer, to prepay Bonds due on or after March 1, 2005. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity are called for redemption, the City will notify DTC of the particular amount of such maturiry to be prepaid. DTC will determine by lot the amount of each participant's interest in such maturiry to be redeemed and each participant will then select by lot the beneficial ownership interests in such marurity to be redeemed. All prepayments shall be at a price of par plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obligations of the City for which the City will pledge its fiill faith and credit and power to lery direct general ad valorem taxes. The proceeds wili be used to finance approved projects from the Ciry's 1996 Capital Itnprovement Budget and Program. TYPE OF PROPOSALS Proposals shall be for not less than $14,355,000 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 Surery Bond in the amount of $145,000, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surery 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 awazded to an underwriter using a Financial Surety Bond, then that purchaser is required to submit iu 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 faiis to comply with the accepted proposal, said amount will be retained by the Ciry. No proposat can be withdrawn or amended afrer the time set for receiving proposals unless the meeting of ffie City scheduled for award of the Bonds is adjourned, recessed, or continued to another date without award of the Bonds having been made. Rates sha11 be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the same maturiry shall bear a single rate from the date of the Bonds to the date of maturiry. 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. Page 16 ��-a�� Tne City will reserve tae xignt to: (ij waiv� n�u-subsiau[ive iru`oruiaiiiies uf ury proposu or of maaers relating to the receipt of proposals and awazd of the Bonds, (ii) reject all proposals without cause, and, {iri) re,}eet any proposal wluch the City detezmines to have failed to comply with the terms herein. ;�fFYI �►lilSll71.7.� 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 constirute cause for failure or refusal by the purchaser to accept delivery of the Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identificarion numbers shall be paid by the purchaser. SETTLEMENT Widrin 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 purck�aser of an approving legal opinion of Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the Ciry, or its agents, the purchaser shall be liable to the Ciry for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE On the date of the actual issuance and delivery of the Bonds, the City wlll execute and deliver a Continuing Disclosure Undertaking whereunder the City will covenant to provide, or cause ro be provided, annual financial information, including audited financial statements of the City, and notices of certain material evenu, as specified in and required by SEC Rule 15c2-12(b)(5). 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, [ogether 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 awazding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no more than seven business days aRer the date of such award, it shall provide without cost to the senior managing underwriter of the syndicate to which the Bonds aze awazded 500 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 awazded as its agent for purposes of disuibuting copies of the Final Official Statement to each Participating Underwriter. Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if iu praposal is accepted by the Ciry (i) it shall accept such designation and (ii) it shali enter into a conuactual relationship with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. BY ORDER OF THE CITY COUNCIL Page 17 a� -a�e TFIE CITY HAS AUTHORI� SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE ON TTS BEHALF. PROPOSALS WII.L BE RECEIVID ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $2,220,000 CITY OF SAINT PAUL, MINNESOTA GF.NF.RAi. OBLIGATION STREET IMPROVEMENT srECiai, nssESS�vT Boxns, s�x�s i�s (BOOK ENTRY ONLI� Proposals for the Bonds will be received on Wednesday, Mazch 13, 1996 until 10:30 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 awazd of the Bonds will be by the Ciry Council at 3:30 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the tune of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (612) 223-3000 or fax (612) 223-3002 for inclusion in the submitted Proposal. Springsted will assume no liability for the inabiliry of the bidder to reach Springsted prior to the tune of sale specified above. Proposals may also be filed electronically via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal, within a one-hour period prior to the time of sale established above, but no Proposals will be received after that time. If provisions in the Terms of Proposal conflict with the PARI1'Y Rules of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibility of the bidder. For further information about PARIT'Y, potential bidders may contact PARIT'Y at 100 116th Avenue 5E, Suite 100, Bellewe, Washington 98004, telephone (206) 635-3545. Neither the City nor Springsted Incorporated assumes any liability if there is a malfunction of PARITY. All bidders aze advised that each Proposal shall be deemed to constitute a conuact between the bidder and tfie City to purchase the Bonds regazdless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated April 1, 1996, as the date of original issue, and will beaz interest payable on Mazch 1 and September i of each year, wmmencing Mazch 1, 1997. Interest will be computed on the basis of a 360day year of twelve 30-day months. The Bonds will tnature Mazch 1 in the years and amounts as follows: 1997 $300,000 1998 $115,000 1999 $ 95,000 2000 $ 95,000 2001 $ 95,000 2002 $ 95,000 2003 $ 95,000 2004 $ 95,000 2005 $ 95,000 2006 $ 95,000 2007 $ 95,000 2008 $950,000 BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act Page 18 qc.-a10 as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any mulriple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the registraz to DTC or iu nominee as registered owner of the Bonds. Transfer of principal and interest payments to participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participanu will be the iesponsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The Treasurer of the Ciry will serve as registraz. OPTIONAL REDEMPTION The Ciry may elect on March 1, 2004, and on any day thereafrer, to prepay Bonds due on or after March 1, 2005. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the Ciry shall determine. If less than all Bonds of a maturity ue called for redemption, the Ciry will notify DTC of the particulaz amount of such maturity to be prepaid. DTC will deternune by lot the amount of each participant's interest in such maturiry to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. 5ECURITY AND PURPOSE The Bonds will be general obligations of the Ciry for which the City will pledge its full faith and credit and power to levy d'uect general ad valorem taxes. In addition ffie City will pledge special assessments against benefited property. The proceeds will be used to finance street improvements within the City. TYPE OF PROPOSALS Proposals shall be for not less than $2,197,800 and accrued interest on the total principal amount of the Bonds. Proposals shall be accompamed by a Good Faith Deposit ("Deposit") in the form of a certified or cashier's check or a Financial Surery Bond in the amount of $22,200, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surery 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 IncorQorated prior to the opening of the proposals. The Financial Surery 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 Surery 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 330 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that tune, the Financial Surety Bond may be drawn by the Ciry to sausfy the Deposit requirement. The Ciry 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 evem the purchaser fails to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended afrer the time set for receiving proposals unless the meeting of the City scheduled for award of the Bonds is a3journed, recessed, or continued to another date without awazd of the Bonds having been made. Rates shail be in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order. Bonds of the safne maturity shall bear a single rate from the date of the Bonds to the date of maturity. No conditional proposals will be accepted. �7 The Bonds wIll be awazded on ttte 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. Page 19 qG -a�v The City will reserve the right to: (i) waive non-substantive infonnalities of any proposal or of matters relating to the receipt of proposals and award of the Bonds, (ri) reject all proposals without cause, and, (iii) reject any proposal which the Ciry determines to have failed to comply with the terms herein. 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 consUtute cause for failure or iefusal 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 wiil be delivered without cost to ffie purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shatl be received at the offices of the Ciry 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 Ciry for any loss suffeied by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE On the date of the actual issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure Undertaking whereunder the City will covenant to provide, or cause to be provided, annual financial information, including audited financial statements of the Ciry, and notices of certain material events, as specified in and required by SEC Rule 15c2-12(b)(5). 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-fmal Off'icial Statement within the meaning of Rule 15c2-12 of the Securities and Bxchange Commission. For copies of the OfFicial Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financiai 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 tenm is defined in Rule ISc2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefor, the Ciry agrees that, no more than seven business days afrer the date of such award, it shall provide without cost to the senior managing undenvriter of the syndicate to which the Bonds are awarded 90 copies of the Official Statement and the addendum or addenda described above. The Ciry 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 Undercvriter. 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 Participa6ng Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. BY ORDER OF THE CITY COUNCIL Page 20 q c. -a.�o TI� C11'I' AAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE TffiS ISSUE ON TTS BEHALF. PROPOSALS WII.L BE R�CEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $6,750,000* CTl'Y OF SAINT PAUL, MINNESOTA GENERAI.OBLIGATION STREET IlIZPROVEMENT REFUNDING BONDS, SERIES 1996C (BOOK ENTRY ONLl� Proposals for the Bonds will be received on Wednesday, March 13, 1996, until 10:30 A.M., Cenual Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, afret which time they wIll be opened and tabulated. Consideration for award of the Bonds will be by the City Council at 3:30 P.M., Central Time, of the same day. OF PROPOSALS Proposals may be submitted in a sealed envelope or by,fax (612) 223-3002 to Springsted. Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal price and coupons, by telephone (612) 223-3000 or fax (612) 223-3002 for inclusion in the submitted Proposal. Springsted will assume no liabiliry for the inability of the bidder to reach Springsted prior to the time of sale specified above. Proposals may also be filed electronically via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal, within a one-hour period prior to the time of sale established above, but no Proposals will be received afrer that time. If provisions in the Terms of Proposal conflict with the PARIT'Y Rules of Participation, the Terms of Proposal shall conuol. The normal fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibility of the bidder. For further information about PARITY, potential bidders may contact PARITY at 100 116th Avenue SE, Suite 100, Bellewe, Washington 98004, telephone (206) 635-3545. Neither the City nor Springsted Incorporated assumes any liability if there is a malfunction of PARITY. All bidders aze advised that each Proposal shall be deemed to consutute a conuact between the bidder and the City to purchase the Bonds regardless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated April 1, 1996, as the date of original issue, and wIll beaz interest payable on Mazch 1 and September 1 of each year, commencing September 1, 1996. Imerest will be computed on the basis of a 360-day year of twelve 30-day months. The Bonds will mature Much 1 in the years and amounts as follows: 1997 $375,000 1998 $575,000 1999 $575,000 2000 $575,000 2001 $575,000 2002 $550,000 2003 $550,000 2004 $550,000 2005 $550,000 2006 $525,000 2007 $4'75,000 ?A08 $350,000 2009 $250,000 2010 $175,000 2011 $100,000 * The Ciry reserves the right, afte� proposals are opened and prior to award, to increase or reduce the principal amouru of the Bonds ojjered for sale. Any such increare or reduction will be in a total amount not to exceed $100, 000 and will be made in multiples af $S, A00 in cury of the maturities. In the event the principai amouni of the Bonds is increased or reduced, arry premium offered or a�ry discount taken by the successful bidder wi11 be inc�e¢sed nr reduced by a percentage equal to the percentage by which the principal amount of the Bonds is increased or reduced. Page 21 Q�-a�� BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each year, will be registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), New York, New York, which will act as securiaes depository of the Bonds. Individuai purchases of the Bonds may be made in the principal amount of $5,000 or any muiriple thereof of a single maturity through book entries made on the books and records of DTC and its participants. Principal and interest aze payable by the registraz to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest paymenu to participants of DTC wffi be the responsibility of DTC; transfer of principal and interest payments to beneficial owners by participants will be the responsibility of such participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the Bonds with DTC. REGISTRAR The Treasurer of the City will serve as registrar. OPTIONAL REDEMPTION The City may elect on Mazch 1, 2004, and on any day thereafrer, to prepay Bonds due on or afrer Mazch 1, 2005. Redemption may be in whole or in part and if in part at the option of the City and in such manner as the City shall determine. If less than all Bonds of a maturity aze called for redemption, the City will notify DTC of the particulaz amount of such maturity to be prepaid. DTC wIll determine by lot the amount of each participant's interest in such maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such maturity to be redeemed. All prepayments shall be at a price of paz plus accrued interest. SECURITY AND PURPOSE The Bonds will be general obliga6ons of the City for which the City will pledge its full faith and credit and power to levy direct general ad valorem tases. In addirion the City will pledge special assessments against benefited property. The proceeds will be used to refund in advance of maturity the following issues: General Obligation Improvement Bonds, Series 1985A, dated July 1, 1985; General Obligation Street Improvement Special Assessment Bonds, Series 1986, dated June 1, 1986; General Obligation Street Improvement Special Assessment Bonds, Series 1987, dated April 1, 1987; General Obligation Street Improvement Special Assessment Bonds, Series 1988D, dated March 1, 1988; General Obligation Sueet Improvement Special Assessment Bonds, Series 1989B, dated Mazch 1, 1989; and General Obligation Street Improvement Special Assessment Bonds, Series 1990B, dated April 1, 1990. TYPE OF PROPOSALS Proposals shall be for not less than $6,675,750 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 casluer's check or a Financial Surety Bond in the amount of $67,500, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surery 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 Ciry. 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 guazanteed by such Financial Surety Bond. If the Bonds aze awarded to an underwriter using a Financial Surery 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 awazd. 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 wluch will be deducted at settlement and no interest wili 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 Page 22 cl` - a.l amended after tue time set for receiving proposaLs unless the meedng of rhe City scueciuied ior awazd of the Bonds is adjoumed, recessed, or continued to another date without awazd 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. - � •\ 7� The Bonds will be awazded on the basis of the lowest interest rate to be determined on a true interest cost (T'IC) basis. The City's computation of the interest rate of each proposal, in accordance with customary practice, will be controlling. The Ciry will reserve the right to: (i) waive non-substanrive informaliries of any proposal or of maaers relating to the receipt of proposals and awazd of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the City detemvnes to have failed to comply with the terms herein. 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 enor 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 Ci3SIP identification numbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their awazd, the Bonds will be delivered without cost to the purchaser at a place mutually satisfactory to the City and the purchaser. Delivery will be subject to receipt by the purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the City or its designee not later than 12:00 Noon, Central Time. Except as compliance with the terms of payment for the Bonds shall have been made impossible by action of the City, or its agents, the purchaser shall be liabie to the City for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DISCLOSURE On the date of the actual issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure Undertaldng whereunder the City will covenant to provide, or cause to be provided, annual financial information, including audited financial statements of the City, and notices of certain material events, as specified in and required by SEC Rule 15c2-12(b)(5). OFFICIAL STATEMENT The City has authorized the prepazation of an Official• Statement contauring pertinent inforntation relative to the Bonds, and said Official Statement wfll serve as a neazly-final Official Statement within the meaning of Rule 15c2-12 of the SecuriUes 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 Fast 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"Finai O�cial Statement" of the Ciry with respect to the Bonds, as that term is defined in Rule 15c2-12. By awazding 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 awazd, it shall provide without cost to the senior managing underwriter of the syndicate to which Page 23 9C -ato �a no„� �e awade3 27a copirs of the Ofiicial 5tacemeut and die addendum ur aduenua 3escribeci above. The City designates the senior managing underwriter of the syndicate to which the Bonds aze awazded as its agent for purposes of distributing copies of the Final Official Statement to each Participating Undervvriter. 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 designarion and (ii) it shall enter into a contractual relarionslup with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating Underwriter of the Final Official Statement. BY ORDER OF THE CITY COUNCII. Page 24 a � -� �o THE CITY HAS AUTHORIZED SPRINGSTED INCORPORAI'ED TO NEGOTIA'I'E TALS ISSUE ON TTS BEHAI.F. PROPOSALS WII.L BE RECEIVED ON THE FOLLOWING BASIS: TERMS OF PROPOSAL $9,100,000* CITY OF SAINT PAUL, NIINNESOTA GENERAL OBLIGATION WATER POLLUTION ABATEMENT REFUNDING BONDS, SERIES 1996D (BOOK ENTRY ONLI� Proposals for the Bonds will be received on Wednesday, March 13, 1996, until 10:30 A.M., Central Time, at the o�ces of Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Paul, Minnesota, afrer which time they will be opened and tabulated. Consideration for award of the Bonds wil] be by the Ciry Conncil at 3:30 P.M., Central Time, of the same day. SUBMISSION OF PROPOSALS Proposals may be submitted in a sealed envelope or by fax (612) 223-3002 to Springsted. Signed Proposals, without fmal price or coupons, may be submitted to Springsted prior to the time of sale. The bidder s:�al: be responsible for submitting to Springsted the fmal Proposal price and coupons, by telephone (612) 223-3000 or fax (612) 223-3002 for inclusion in the submitted Proposal. Springsted will assume no liability for the inabiliry of the bidder to reach Springsted prior to the time of sale specified above. Ptoposals may also be filed electronicaIly via PARITY, in accordance with PARITY Rules of Participation and the Terms of Proposal, within a one-hour period prior to the tune of sale established above, but no Proposals will be received after that time. If provisions in the Terms of Proposal conflict with the PARITY Rules of Participation, the Terms of Proposal shall control. The normal fee for use of PARITY may be obtained from PARITY and such fee shall be the responsibiliry of the bidder. For further information about PARITY, potential bidders may contact PARITY at 100 116th Avenue SE, Suite 100, Bellewe, Washington 98004, telephone (206) 635-3545. Neither the City nor Springsted Incorporated assumes any liabiliry if there is a malfunction of PARITY. All bidders are advised that each Proposal shall be deemed to constitute a contract between the bidder and the City to purchase the Bonds regardless of the manner of the Proposal submitted. DETAILS OF THE BONDS The Bonds will be dated Aprfl l, 1996, as the date of original issue, and will bear interest payable on March 1 and September 1 of each yeaz, commencing September 1, 1996. Interest will be computed on the basis of a 360-day yeaz of twelve 30-day months. The Bonds will mature March 1 in the years and amounts as follows: 1997 $1,225,000 1998 $1,250,000 1999 $1,275,000 2000 $1,350,000 2001 $1,425,000 2002 $ 975,000 2003 $1.000,000 2004 $ 475,000 2005 $ 125,000 * The Ciry reserves the right, after proposals are opened and prior to award, to increase or reduce the principal amount of the Bonds offered for sale. Arty such increase or reduction wi11 be in a tota! amount not ta exceed $100,000 arul will be made in mulaples of $5,000 in a�ry of the maturities. In the event the principal amount of the Bonds is increased or reduced, arry premium offered or arry discoura taken by the successful bidder wil[ be increased or reduced by a percentage equa[ ro the percentage by which the principal anwunt of the Bonds is increased or reduced. Page 25 Qc-z��o BOOK ENTRY SYSTEM The Bonds will be issued by means of a book entry system with no physical distribution of Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, representing the aggregate principal amount of the Bonds maturing in each yeaz, will be registered in the name of Cede & Co. as nominee of The Depository Tcust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual purchases of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single mahuity through book entries made on the books and records of DTC and its participants. Principal and interest are payable by the regisuaz to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments co participants of DTC will be the responsibility of DTC; transfer of principal and interest paymenTs to beneficial owners by participanu will be the responsibility of snch participants and other nominees of beneficial owners. The purchaser, as a condition of delivery of the Bonds, wIll be required to deposit the Bonds with DTC. f:�:Ct3GYY;7:\:7 The Treasurer of the Ciry will serve as registrar. OPTIONAL REDEMPTION The Bonds will not be subject to payment in advance of their respective stated maturiry datas. SECURITY AND PURPOSE The Bonds will be general obligations of the Ciry for which the City will pledge its full faith and credit and power to levy direct general ad valorem taxes. The proceeds will be used to refund the 1997 through 2005 maturities of the Ciry's General Obligation Water Pollution Abatement Refunding Bonds, Series 1975, dated Mazch i, 1975 and the 1997 through 20Q4 maturities of the City's General Obligation Water Pollution Abatement Refunding Bonds, Series 1987, dated April 1, 1987. TYPE OF PROPOSALS Proposals shall be for not less than $9,036,300 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 Surery Bond in the amount of $91,000, payable to the order of the City. If a check is used, it must accompany each proposal. If a Financial Surety Bond is used, it must be from an insurance company licensed to issue such a bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Springsted Incorporated prior to the opening of the proposals. The Financial 5urety Bond must identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the Bonds are awazded 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 cerkified or cashier's check or wire transfer as instructed by Springsted Incorporated not later than 330 P.M., Central Time, on the next business day following the award. If such Deposit is not received by that time, the Financial Surery Bond may be drawn by the City to satisfy the Deposit requirement. The Ciry will deposit the check of the purchaser, the amount of which will be deducted at settiement and no interest will accrue to the purchaser. In the event the purchaser faiIs to comply with the accepted proposal, said amount will be retained by the City. No proposal can be withdrawn or amended afrer the tune set for receiving proposals unless the meeting of the Ciry 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 muldples 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. Page 26 q,c. -a�b AWARD The $onds wdl be awarded on the basis of the lowest interest rate to be deternvned on a true interest cost (TIC) basis. The Ciry's computation of the interest rate of each proposat, in accordance with cvstomary pracdce, will be controlling. The City will reserve the right to: (i) waive non-substantive infotmalikes of any proposal or of matiers relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals without cause, and, (iii) reject any proposal which the Ciry deternlines to have faded to comply with the tertns herein. CUSIP NUMBERS If the Bonds qualify for assignment of CUSIP numbers such numbers wili be printed on the Bonds, but neither the failure to print such numbers on any Bond nor any error with respect thereto wi11 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 iden6ficadon nwnbers shall be paid by the purchaser. SETTLEMENT Within 40 days following the date of their awazd, 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 legai opuuon of Briggs and Morgan, Professional Association, of Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of settlement payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at the offices of the Ciry or its designee not later than 12:00 Noon, Central Tune. Except as compliance with the terms of payment for the Bonds shall have been made unpossible by action of the City, or its agents, the purchaset shall be liable to the Ciry for any loss suffered by the City by reason of the purchaser's non-compliance with said terms for payment. CONTINUING DTSCLOSURE On the date of the actual issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disciosure Undertaking whereunder the City will covenant'to provide, or cause to be provided, annual financial informaGon, including audited financial statements of the City, and notices of certain material events, as specified in and required by SEC Rule 15c2-12(b)(5). OFF[CIAL STATEMENT The City has authorized the prepararion of an Official Statement containing pertinent information reiative to the Bonds, and said Official Statement will serve as a neazly-fmal Official Statement within the meaning of Rule i5c2-12 of the Securities and Exchange Commission. For copies of the O�cial Statement or for any additional information prior to sale, any prospective purchaser is referred to the Financial Advisor to the Ciry, Springsted Incorporated, 85 East Seventh Place, Suite 100, Saint Pau1, Minnesota SS10I, telephone (612) 223-3000. The Official Statement, when further supplemented by an addendum or addenda specifying the maturity dates, principai amounts and interest rates of the Bonds, together with any othez information required by law, shall constitute a"Final Official Statement" of the City with respect to the Bonds, as that term is defined an Rule 15c2-12. By awarding the Bonds to any underwriter or underwriting syndicate submitting a proposal therefot, the Ciry agrees that, no more than seven business days after the date of such awazd, it shaIl provide without cost to the senior managing underwriter of the syndicate to which the Bonds are awarded 365 copies of the O�cial Statement and the addendum oz addenda described above. The Ciry 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 Ciry (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 Off'icial Statement. BY ORDER OF THE CITY COUNCIL Page 27