4.1. SR 09-25-2000Item #4.1.
City of
River
MEMORANDUM
TO:
Mayor & City Council
FROM: Lori Johnson, Finance Director
DATE:
September 25, 2000
SUBJECT:
Resolution Providing for the Sale of $1,740,000 G.O. Tax
Increment Bonds, Series 2000A, $1,275,000 G.O.
Permanent Improvement Revolving Fund Bonds, Series
2000B, $900,000 G.O. Improvement Refunding Bonds,
Series 2000C, $515,000 Taxable G.O. Tax Increment
Refunding Bonds, Series 2000D
Attached is the Bond Sale Report prepared by Ehlers & Associates, Inc. for
the city's upcoming bond issues. The bonds to be issued include financing for
both the Western Area Phase IV improvements and the street and storm
sewer portion of the East Elk River improvements. In addition, three current
issues are being refunded in an effort to reduce future interest costs. Please
refer to the Purpose sections of the Bond Sale Report for summary
information on each issue. This memo will provide only an overview of each
of these bond issues; if you would like a detailed financial analysis of each of
these issues, please contact me. Sid Inman, Ehlers and Associates, and I will
be present on Monday to discuss this item with the council and address any
questions you may have.
$1,740,000 G.O. TIF Bonds Series 2000A - East Elk River
Improvement Project
In 1999, the city issued $5,725,000 of improvement bonds to finance the
sewer and water portion of the East Elk River improvements. As you may
recall, repayment of the 1999 debt will be mainly from trunk sewer and water
special assessments with smaller obligations from TIF 19 (Elk River
Crossing), and the sewer and water funds. Now that bids have been awarded
for all components of this project, it is time to issue the next bond to finance
the street and storm sewer part of this project not covered by state or federal
funds.
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone (763) 441-7420 · Fax (763) 441-7425
The total project cost for the East Elk River improvements is expected to be
approximately $13,300,000. The final financing methods and revenue
sources for this project are consistent with the financing proposals presented
to the council throughout the project feasibility and numerous council
discussions on the project whereby a portion of the street and storm sewer
costs were to be funded by TIF 19 and other city revenue sources including,
but not limited to, Capital Project reserves, Storm Sewer fund reserves, and
tax levies. Approximately $725,000 of the 2000A issue is for eligible TIF 19
costs and tax increment will be used to fund that portion of the debt. The
balance of the issue, $867,489, will be funded through Capital Project
reserves, Storm Sewer fund reserves, and tax levies. This bond issue will
require a tax levy that the city may cancel if other funds are available to
meet debt service. As you may recall, no assessments were levied for the
street and storm sewer portion of this project. More specific information on
the amount of city funding required will be available after the project is
completed.
$1~275,000 G.O. Improvement Bonds Series 2000B - Western Area
Phase IV
This bond will finance the special assessment portion of this project. The
state is a participant in this project and will pay its share of the street and
intersection improvements and part is MSA eligible.
$900,000 G.O. Improvement Refunding Bonds, Series 2000C - Refund
1992B Western Area Phase I Improvements
$515,000 Taxable Tax Increment Refunding Bonds, Series 2000D -
Refund 1989B TIF 6, Mork Clinic Project, and Refund 1990A TIF 7,
AmericInn Project
These three bonds are being refunded now to reduce costs of issuance since
they can be spread among all four bonds being issued thereby reducing
issuance costs for the refunding, which creates a larger savings. The 2000C
refunding results in a net present value savings of $40,393.06 and the 2000D
results in a $26,943.18 savings.
Action Requested
The City Council is asked to consider the attached resolution providing for
the sale of the above mentioned bond issues.
BOND SALE REPORT
$1,740,000
G.O. Tax Increment Bonds, Series 2000A
$1,275,000
G.O. Permanent Improvement Revolving Fund Bonds,
Series 2000B
$900,000
G.O. Improvement Refunding Bonds, Series 2000C
$510,000
Taxable G.O. Tax Increment Refunding Bonds, Series 2000D
City of Elk River, Minnesota
September 25, 2000
EHLERS
& AssoCIATES INC
3060 Centre Pointe Drive Roseville, MN 55113-1105
651.697.8506 fax651,697.8506 www.ehlers-inc,com
Bond Sale Report
Overview
This report describes the proposed plan for the City of Elk River to issue:
$1,740,000 G.O. Tax Increment Bonds, Series 2000A (the "2000A Bonds").
$1,275,000 G.O. Permanent Improvement Revolving Fund Bonds, Series 2000B (the "2000B Bonds").
$900,000 G.O. Improvement Refunding Bonds, Series 2000C (the "2000C Bonds").
$515,000 Taxable G.O. Tax Increment Refunding Bonds, Series 2000D (the "2000D Bonds").
This report has been prepared by Ehlers & Associates, in consultation with City Staff and bond counsel.
This report deals with:
· Purpose and components of bond issue.
· Stmcture.
· Other considerations in issuing bonds.
· Market conditions.
· Issuing process.
Bond Sale Report
2000A Bonds
Purpose
The $1,740,000 G.O. Tax Increment Bonds, Series 2000A are being issued pursuant to Minnesota Statutes,
Chapters 475 and 469. The 2000A Bonds are being issued to finance a portion of the costs of the East Elk
River Improvement Project. Financing these projects requires a bond issue in the amount of $1,740,000.
The proposed finance plan consists of the following sources and uses of funds:
SOURCES USES
Par Amount of Bonds $1,740,000 Project Costs $1,592,489
Up-Front Revenue 0 Costs of Issuance 21,900
Discount 27,951
Capitalized Interest 97,660
Total Sources $1,740,000 Total Uses $1,740,000
Structure and Repayment
The 2000A Bonds are general obligations of the City of Elk River and as such are secured by a pledge of
the City' s full faith, credit, and taxing powers. It is the intent of the City to pay principal and interest from
several different sources. Approximately 42% of the revenue support will come from the City's Tax
Increment Financing District No. 19. As required by State Law, the City will certify a property tax levy
sufficient to provide revenues equivalent to 105% of annual debt service. It is the intent of the City to
abate the annual levy from other available revenues. The preliminary projection of debt service and
revenues for the 2000A Bonds appears below.
The 2000A Bonds will be sold October 23, 2000 and be dated November 1, 2000. The first interest
payment on the 2000A Bonds will be August 1, 2001, and semiannually thereafter on February 1 and
August 1. Principal on the 2000A Bonds will be due on February 1 in the years 2003 through 2015. We
recommend that 2000A Bonds maturing in the 2008 years through 2015 be subject to prepayment at the
discretion of the City on February 1, 2007 and any date thereafter.
$1,740,000 O.Q Tc~ Inc~rnent Bcnc~, Se~ie~ 2000A
Tc~ Ocldtdized 01her
Dale Prindod Rote Inter~t P&I I ncr ~-~-~-~ Intgest Revenue
2/1/2001
2/1/2002 0 0.000% ] 04,] 00.00 104,100.00 0 97,660 6,440
2/1/2003 80,000 4.45096 83,280.00 163280.00 59,498 103,782
2/1/2004 105,000 4.50056 79,720.00 184,720.00 83,510 101210
2/1/2005 110,000 4.5§0% 74,995.00 184,995.00 81,510 103,485
2/1/2006 120,000 4.60056 69,Q90.00 189,990.00 84,435 105,555
2/1/2007 120,000 4.65056 64.470.00 184,470.00 82,125 102,345
2/1/2008 130,000 4.70056 58,890.00 188,890.00 84,788 104,102
2/1/2009 130,000 4.750% 82,780.00 182,780.00 82208 100,572
2/1/2010 140,000 4.800% 46,005.00 186,605.00 84,598 102,007
2/1/2011 145,000 4.850% 39,885.00 184,885.00 81,705 103,180
2/1/2012 155,000 4.900% 32,852.50 187,852 ~50 83,748 104,105
2/1/2013 160,000 4.95056 2§,257.50 185,257 ~50 80,528 104,730
2/1/2014 170,000 5.00056 17,337.50 187,33730 82238 105,100
2/1/2015 175,000 5.050% 8,837.80 183,837 ~50 78,638 105,200
TOTAL 1,740,000 759,000.00 2,499,000.00 1,049,529 97,660 1251,811
Av~m~e Li~
Ax~z~ge Coupon
N et I~l~-2~st Cost (NI2)
Tnle l~t~tCost
8 ~74 Yems
4 ~6071%
5.03971%
5.07780%
2
Bond Sale Report
2000B Bonds
Purpose
The $1,275,000 G.O. Permanent Improvement Revolving Fund Bonds, Series 2000B (the "Bonds") are
being issued pursuant to Minnesota Statutes, Chapter 475 and Section 429.091. The 2000B Bonds are
being issued to finance a portion of the costs associated with the Western Area Improvement Project Phase
IV.
Financing these costs requires a bond issue in the amount of $1,275,000. The proposed finance plan
consists of the following sources and uses of funds:
SOURCES
Par Amount of Bonds
MnDOT/MSA
Total Sources
USES
$1,275,000 Project Costs $1,717,442
477,931 Costs of Issuance 16,389
Discount 19,100
Capitalized Interest 0
$1,752,931 Total Uses $1,752,931
Structure and Repayment
The 2000B Bonds are general obligations of the City of Elk River and as such are secured by a pledge of
the City's full faith, credit, and taxing powers. It is the intent of the City to pay the entire amount of
principal and interest from revenues of the Permanent Improvement Revolving Fund. These revenues
include approximately $1,733,000 assessed for the Phase IV improvements. These revenues will be
sufficient to provide revenues equivalent to 105% of debt service on the 2000B Bonds. The preliminary
projection of debt service and revenues for the 2000B Bonds appears on the next page.
The 2000B Bonds will be sold October 23, 2000 and be dated November 1, 2000. The first interest
payment on the 2000B Bonds will be August 1, 2001, and semiannually thereafter on February 1 and
August 1. Principal on the 2000B Bonds will be due on February 1 in the years 2002 through 2016. We
recommend that 2000B Bonds maturing in the years 2007 through 2016 be subject to prepayment at the
discretion of the City on February 1, 2006 and any date thereafter.
$1,275,000
Bond Sale Report
~.0. P~rnc~Nm~ Inl~ov~,-,-~,-~ Re.~lvlngFund Ba~l~, SQl,~ 2000B
Ass~nm~t Surl:lU~/
Dale Prind~:x~l R~e ~ P&I R~ ~dt~
2~001
2A~002 85,000 ~.~00% 7~,70~.]~ 160,70313 337,640 176,937
2A~003 85,000 ~.~0~ ~6,822.S0 141,822 30 204,704 62,881
2A~004 85,000 ~.~00~ ~3,0~0.00 138,040.00 197,738 59,698
2~005 85,000 4.550% 49,215.00 134,215 D0 190,771 56,556
2A~006 85,000 4.600% 45,347.50 130,347 ~0 183,805 53,457
2~007 85,000 4.6~0~ 4],437.~0 126A37~0 176,838 50,401
2A~008 85,000 4.700~ 37,48~.00 122~85.00 169,872 47,387
2A~009 85,000 4.750~ 33,490.00 118,490.00 162,906 44,416
2~010 85,000 4.800% 29,452.50 114A52 ~0 155,939 41A87
2A~011 85,000 4.850% 25,372.~0 110,372 ~0 148,973 38,600
2A~012 85,000 4.900~ 2],2~0.00 106,250.00 142,007 35,757
2 A~013 85,000 4.950~ ] 7,085.00 102,085.00 135,040 32,955
2~014 85,000 5.000% ]2,877.50 97,87730 128,074 30,196
2A~015 85,000 5.050% 8,627.50 93,62730 121,108 27A80
2A~016 85,000 5.] 00~ 4,33~.00 89,335.00 114,141 24,806
~T~ 1 275,000 ~] ] ,540.63 1,786,540.63
B and YearD o]]~:s $10,518 .75 ~s~ssrnsqt T sm 15.00
A'v~s~m:3e Li~ 8.250 Yea~ ,~$~ssrl~ Rote 6.50%
Avenge Coupc~ 4 ~6313% Tctd/~s~ssed 1,733,592
N et ~t~stCost ~T~) 5 .04471%
Tzue ~t~n~'tCost ~X~) 5 .07909%
Oamuldive
176 937
239 818
299 516
356 072
409 529
459 930
507 317
551 733
593 220
631 820
667 577
700 532
730 729
758 209
783 015
2000C Bonds
Purpose
The $900,000 G.O. Improvement Refunding Bonds, Series 2000C are being issued pursuant to Minnesota
Statutes, Chapters 475 and 429. The 2000C Bonds are being issued to undertake a current refunding of the
G.O. Improvement Bonds, Series 1992B. The 1992B Bonds are eligible for call and prepayment on
February 1,2001 and on any date thereafter.
Financing these projects requires a bond issue in the amount of $900,000. The proposed finance plan
consists of the following sources and uses of funds:
SOURCES
Par Amount of Bonds
Cash Contribution
$900,000
196,409
USES
Bonds to Call $1,075,000
Costs of Issuance 10,550
Discount 9,900
Capitalized Interest 0
Rounding 959
Total Sources $1,096,409 Total Uses $1,096,409
Structure and Repayment
The 2000C Bonds refinance the 2002 through 2008 maturities of the 1992B Bonds. The combined use of
cash and lower interest rates reduced debt service expense by over $270,000. The present value of this
savings, after accounting for the cash contribution, is $40,393. The preliminary projection of debt service
and savings appears on the next page.
The 2000C Bonds are general obligations of the City of Elk River and as such are secured by a pledge of
the City's full faith, credit, and taxing powers. It is the intent of the City to pay the entire amount of
principal and interest from the special assessments and other revenues pledged to the 1992B Bonds.
4
Bond Sale Report
The 2000C Bonds will be sold October 23, 2000 and be dated the date of closing (tentatively November
14, 2000). The first interest payment on the 2000C Bonds will be August 1, 2001, and semiannually
thereafter on February 1 and August 1. Principal on the 2000C Bonds will be due on February 1 in the
years 2002 through 2008. We recommend that 2000C Bonds maturing in the years 2006 through 2008 be
subject to prepayment at the discretion of the City on February 1, 2005 and any date thereafter.
$900,000 C~O Irnl~cx, ement RefunclngBcncl% Seriee 2000C
E~isting
Dote Prim:iDd Rote Ir~emt Pal DeI~ S~ncs
2/1/2001
2/1/2002 125,000 4.400% 51,162.50 176,162.50 216,360 40,198
2/1/2003 135,000 4.450% 35,430.00 170,430.00 207,510 37,080
2/1/2004 135,000 4.500% 29,422.50 164,422 .50 203,360 38,938
2/1/2005 130,000 4.550% 23,347.50 153,347.50 193,750 40,403
2/1/2006 130,000 4.600% 17,432.50 147 ,432 .50 184,063 36,630
2/1/2007 125,000 4.650% ]],452.50 136,452 ~50 174,375 37,923
2/1/2008 120,000 4.700% 5,640.00 125,640.00 164,688 39,048
TOTAL 900,000 ] 73,887.50 1,073,887 .50
Bond YearD oIb~s $3,785.00 ToizLl saviags 270,217 .50
Avenac3e Li~ 4 ~ 06 Yearn Pm~ent~a3ue of savings 219,433.47
Aveuage Coupc~ 4,59412% CSBjr cash contnbutim3 (180,000.00)
Net ~Cost IN]E) 4.85568% Roundixg ~n ount 959 .59
Tzue ~=~-tCost fi]E) 4.88358%
N et p~es~ut vaJue savi~gs $ 40,393.06
% ofmfunded prhc~al 3.76%
% o f ~fnncl~g pzi%cJpal 4.49%
2000D Bonds
Purpose
The $515,000 Taxable Tax Increment Refunding Bonds, Series 2000D (the "Bonds") are being issued
pursuant to Minnesota Statutes, Chapters 475 and 469. The Bonds are being issued as a current refunding
of the Taxable G.O. Tax Increment Bonds, Series 1989B and the Taxable G.O. Tax Increment Bonds,
Series 1990A. Both issues are eligible for call and prepayment on any date.
Financing these projects requires a bond issue in the amount of $510,000. The proposed finance plan
consists of the following sources and uses of funds:
SOURCES
Par Amount of Bonds
Up-Front Revenue
Total Sources
USES
$510,000 Principal Called $500,000
7,559 Costs of Issuance 8,550
Discount 6,120
Capitalized Interest 0
Rounding 2,889
$517,559 Total Uses $517,559
Bond Sale Report
Structure and Repayment
The Bonds are general obligations of the City of Elk River and as such are secured by a pledge of the
City's full faith, credit, and taxing powers. It is the intent of the City to pay the entire amount of principal
and interest from tax increment revenues connected with the original issues. Revenues from Tax
Increment Financing District No. 6 support the 1989B Bonds. Revenues from Tax Increment Financing
District No. 7 support the 1990A Bonds. The debt service on the refunding bonds will be allocated to
these TIF districts. The preliminary projection of debt service and savings for the 2000D Bonds appears
below.
The Bonds will be sold October 23, 2000 and be dated November 1, 2000. The first interest payment on
the Bonds will be August 1, 2001, and semiannually thereafter on February 1 and August 1. Principal on
the Bonds will be due on February 1 in the years 2002 through 2010. We recommend that Bonds maturing
in the years 2006 through 2010 be subject to prepayment at the discretion of the City on February 1, 2005
and any date thereafter.
D~e
2/1/2001
2/1/2002 50,000 7.000%
2/1/2003 60,000 7.050%
2/1/2004 65,000 7.050%
2/1/2005 75,000 7.150%
2/1/2006 70,000 7.150%
2/1/2007 80,000 7.200%
2/1/2008 35,000 7.200%
2/1/2009 40,000 7.250%
2/1/2010 35,000 7.250%
510,000
Bond YearDoIhm $2,502 `50
A~mge Li~ 4.907 Yea~
Ax~mge Coupon 7 ~17360%
Net Ixt~stCost ~112) 7.41816%
Tzue I~Cost {plP) 7.46346%
$510,000 Tc~bleTc~ Increment Refundng Bonds, Series 2000D
E~sting
Pri~Dd R~e Interest P&I Debt
45,496.88 95/196.88
32,897.50 92,897 `50
28,667.50 93,667 `50
24,085.00 99,085.00
18,722.50 88,722`50
13,717.50 93,717,50
7,957.50 42,957 .50
5,437.50 45/t37 .50
2,537.50 37,537 `50
179,519.38 689,519..38
97 807
98 127
97 952
102 290
95 660
99 000
46 385
47 920
43 960
Total savings
P~sse~t vaJue o f savings
C~ cash cc~tnbutim
N etp~l~s~mt valle savi~gs
% ofmfunded p~i~cJpa~l
% of~fundi~g p~cJpal
2,311
5,230
4,285
3,205
6,937
5,282
3/127
2,482
6,422
39,583 &2
26,943 X8
$26,943 ~8
539%
528%
Bond Sale Report
Other Considerations
Bank Qualified Bonds
We anticipate that the City (in combination with any subordinate taxing jurisdictions or debt issued in the
City's name by 501(c)3 corporations) will not issue more than a total of $10,000,000 in tax-exempt debt
during this calendar year. This will allow the Series 2000A, 2000B and 2000C Bonds to be designated as
bank qualified. Taxable bonds (Series 2000D) are not eligible for this designation. Bank qualified status
broadens the market and achieves lower interest rates.
Arbitrage
Rebate: Only the Series 2000A and 2000B Bonds count against the annual allocation from exemption from
arbitrage rebate. Since the City does not anticipate issuing more than $5,000,000 in tax-exempt bonds in
this calendar year, these bonds qualify for the small issuer exemption from arbitrage rebate.
Ongoing: This exemption from rebate does not eliminate the need to comply with other arbitrage
regulations governing the investment of bond proceeds and debt service funds. In particular, the City
should familiar with the requirements for maintaining a "bona fide" debt and the potential need to restrict
the investment of monies in the debt service fund. These requirements will be explained in the bond
record book received following closing.
Global Book Ent~
The Bonds will be global book entry. As "paper less" bonds, you will avoid the costs of bond printing and
annual registrar charges. The City will designate a Paying Agent for the issue. The Paying Agent will
invoice you for the interest semi-annually and on an annual basis for the principal coming due. You will
be charged only for paying agent/transfer agent services provided by the bank.
Rating
Moody's Investors Service will be asked to rate this issue. The City currently has an "A3" rating on its
outstanding general obligation bonds. Ehlers will assist City Staff in preparing for the rating review
process for these issues.
Continuing Disclosure
Regulations of the Securities and Exchange Commission on the continuing disclosure of municipal
securities apply to long-term securities with an aggregate principal amount of $1,000,000 or more. Since
aggregate amount of the Series 2000A and 2000B Bonds are over $1,000,000 and the City has more than
$10,000,000 in total municipal obligations outstanding, you will be obligated to comply with Full
Continuing Disclosure requirements as required by paragraph (b)(5) of Rule 15c2-12 promulgated by the
Securities and Exchange Commission under the Securities Exchange Act of 1934. You will be required to
provide certain financial information and operating data relating to the City annually and to provide
notices of the occurrence of certain material events. The specific nature of the Undertaking, as well as the
information to be contained in the notices of material events will be set forth in the Continuing Disclosure
Certificate that you will enter into at the time of closing for this issue.
Bond Sale Report
Market Conditions
The Bond Buyer's 20-Year G.O. Index (BBI) currently stands at 5.51% The chart below illustrates trends
in tax-exempt interest rates over recent years. Changes in the BBI also illustrate the relative trend for
taxable rates. Rates have followed a downward trend during the last half of 2000. The current BBI is
below the median Index since 1995. Significant changes in rates are not expected prior to the sale.
Be:nd Buyer's 20-Yecr Index
7.00%
6.50%
6.00%
5.50%
5.00%
4.50%
1995
HI I[ Il lll Il IH II II It IIIII II II IIHI II Iltll II II IIIII II IIIII II II I[HI II I[ II Ill Il II Ill I114 II Ill I$ II Bill ~1 ll ll~ il II IIHI II II ~IHI II ~1111 II II IIIII II II I'll II fl IIIII ~1 II I&DI ~1 IIHg II Ii IIIII II II IIHI II IIIII II [I IIIII II II II Ill II li tll II ii IIIII II II il lll II IH II II ~1 Il lll II II I il II II II lll ~l It ItHI Ii IH II II Ill
1996 1997 1998 1999 2000
Issuing Process
Following is a tentative schedule for the steps in the issuing process.
September 25, 2000
Week of October 9
Week of October 16
October 23, 2000
November 14, 2000
City Council adopts resolution calling for the sale of the
Bonds.
Submit draft Official Statement and rating materials to
Moody's Investors Service for credit rating.
Distribute Official Statement
Receive credit rating
Bond sale
Bond closing (estimated)
C:XProjects~ActiveXElk River~2000BondsXPreTIF. wpd
8
Bond Sale Report
ATTACHMENT 1
TERMS AND CONDITIONS OF ISSUE
$1,740,000 G.O. Tax Increment Bonds, Series 2000A
DATE:
ISSUER:
BOND NAME:
BOND ATTORNEY:
PURPOSE:
September 25, 2000
City of Elk River, Minnesota
$1,740,000 G.O. Tax Increment Bonds, Series 2000A
Briggs & Morgan - Jim O'Meara
Finance a portion of the costs of the East Elk River Improvement Project
Sale Date:
Est. Closing Date:
Proposal Opening:
Proposal Award:
Type of Sale:
Bonds Dated:
Maturity:
Term Bond Option:
First Interest:
Call Feature:
Minimum Proposal:
Good Faith:
October 23, 2000
November 15, 2000
11:00 a.m., office of Ehlers & Associates, Inc.
6:00 p.m., City offices
Competitive
November 1, 2000
February 1 2003 - 2015
All dates are inclusive. Bids for the bonds may contain a
maturity schedule providing for any combination of serial
bonds and term bonds, subject to mandatory redemption, so
long as the amounts of principal maturing or subject to
mandatory redemption in each year conforms to the maturity
schedule set forth above.
August 1, 2001. Interest will be computed on the basis of a
360-day year of twelve 30-day months and will be rounded
pursuant to rules of the MSRB.
Bonds maturing in the years 2006 through 2015 will be
subject to redemption prior to final maturity on February 1,
2007 and on any date thereafter. Notice of such call shall be
given by mailing a notice thereof by registered or certified
mail at least thirty (30) days prior to the date fixed for
redemption to the registered owner of each bond to be
redeemed at the address shown on the registration books.
$1,712,049
$34,800, payable to the Issuer (Cashiers or Certified Good
Faith Check or wire transfer of funds to Ehlers Good Faith
Escrow or financial surety bond.
9
Record Date:
CUSIP Numbers:
Paying Agent:
Book Entry:
Financial Advisor:
Rating Requested:
Qualified Tax-Exempt Obligations:
Continuing Disclosure:
Bond Sale Report
Close of business on the 15th day (whether or not a business
day) of the immediately preceding month.
The Issuer will assume no obligation for the assignment or
printing of CUSIP numbers on the Bonds or for the
correctness of any numbers printed thereon, but will permit
such numbers to be printed at the expense of the purchaser, if
the purchaser waives any delay in delivery occasioned
thereby.
To be named by the Issuer.
This offering will be issued as fully registered Bonds and,
when issued, will be registered in the name of Cede & Co., as
nominee of The Depository Trust Company, New York, New
York.
Ehlers & Associates, Inc. - (Rusty Fifield/Sid Inman)
Moody's Investors Service.
These Bonds WILL be designated as qualified tax-exempt
obligations.
Full Undertaking
10
Bond Sale Report
ATTACHMENT 2
TERMS AND CONDITIONS OF ISSUE
$1,275,000 G.O. Permanent Improvement Revolving Fund Bonds, Series 2000B
DATE:
ISSUER:
BOND NAME:
BOND ATTORNEY:
PURPOSE:
September 25, 2000
City of Elk River, Minnesota
$1,275,000 G.O. Permanent Improvement Revolving Fund Bonds, Series
2000B
Briggs & Morgan - Jim O'Meara
Finance a portion of the costs associated with the Western Area
Improvement Project Phase IV.
Sale Date:
Est. Closing Date:
Proposal Opening:
Proposal Award:
Type of Sale:
Bonds Dated:
Maturity:
Term Bond Option:
First Interest:
Call Feature:
Minimum Proposal:
Good Faith:
October 23, 2000
November 1, 2000
11:00 a.m., office of Ehlers & Associates, Inc.
6:00 p.m., City offices
Competitive
November 1, 2000
February 1 2002 - 2016
All dates are inclusive. Bids for the bonds may contain a
maturity schedule providing for any combination of serial
bonds and term bonds, subject to mandatory redemption, so
long as the amounts of principal maturing or subject to
mandatory redemption in each year conforms to the maturity
schedule set forth above.
August 1, 2001. Interest will be computed on the basis of a
360-day year of twelve 30-day months and will be rounded
pursuant to rules of the MSRB.
Bonds maturing in the years 2007 through 2016 will be
subject to redemption prior to final maturity on February 1,
2006 and on any date thereafter. Notice of such call shall be
given by mailing a notice thereof by registered or certified
mail at least thirty (30) days prior to the date fixed for
redemption to the registered owner of each bond to be
redeemed at the address shown on the registration books.
$1,255,900
$25,500, payable to the Issuer (Cashiers or Certified Good
Faith Check or wire transfer of funds to Ehlers Good Faith
Escrow or financial surety bond.
11
Record Date:
CUSIP Numbers:
Paying Agent:
Book Entry:
Financial Advisor:
Rating Requested:
Qualified Tax-Exempt Obligations:
Continuing Disclosure:
Bond Sale Report
Close of business on the 15th day (whether or not a business
day) of the immediately preceding month.
The Issuer will assume no obligation for the assignment or
printing of CUSIP numbers on the Bonds or for the
correctness of any numbers printed thereon, but will permit
such numbers to be printed at the expense of the purchaser, if
the purchaser waives any delay in delivery occasioned
thereby.
To be named by the Issuer.
This offering will be issued as fully registered Bonds and,
when issued, will be registered in the name of Cede & Co., as
nominee of The Depository Trust Company, New York, New
York.
Ehlers & Associates, Inc. - (Rusty Fifield/Sid Inman)
Moody's Investors Service.
These Bonds WILL be designated as qualified tax-exempt
obligations.
Full Undertaking
12
Bond Sale Report
ATTACHMENT 3
TERMS AND CONDITIONS OF ISSUE
$900,000 G.O. Improvement Refunding Bonds, Series 2000C
DATE:
ISSUER:
BOND NAME:
BOND ATTORNEY:
PURPOSE:
September 25, 2000
City of Elk River, Minnesota
$900,000 G.O. Improvement Refunding Bonds, Series 2000C
Briggs & Morgan - Jim O'Meara
Current refunding of the G.O. Improvement Bonds, Series 1992B
Sale Date:
Est. Closing Date:
Proposal Opening:
Proposal Award:
Type of Sale:
Bonds Dated:
Maturity:
Term Bond Option:
First Interest:
Call Feature:
Minimum Proposal:
Good Faith:
October 23, 2000
November 14, 2000
11:00 a.m., office of Ehlers & Associates, Inc.
6:00 p.m., City offices
Competitive
Date of closing
February 1 2002- 2008
All dates are inclusive. Bids for the bonds may contain a
maturity schedule providing for any combination of serial
bonds and term bonds, subject to mandatory redemption, so
long as the amounts of principal maturing or subject to
mandatory redemption in each year conforms to the maturity
schedule set forth above.
August 1, 2001. Interest will be computed on the basis of a
360-day year of twelve 30-day months and will be rounded
pursuant to rules of the MSRB.
Bonds maturing in the years 2006 through 2008 will be
subject to redemption prior to final maturity on February 1,
2005 and on any date thereafter. Notice of such call shall be
given by mailing a notice thereof by registered or certified
mail at least thirty (30) days prior to the date fixed for
redemption to the registered owner of each bond to be
redeemed at the address shown on the registration books.
$890,100
$18,000, payable to the Issuer (Cashiers or Certified Good
Faith Check or wire transfer of funds to Ehlers Good Faith
Escrow or financial surety bond.
13
Record Date:
CUSIP Numbers:
Paying Agent:
Book Entry:
Financial Advisor:
Rating Requested:
Qualified Tax-Exempt Obligations:
Continuing Disclosure:
Bond Sale Report
Close of business on the 15th day (whether or not a business
day) of the immediately preceding month.
The Issuer will assume no obligation for the assignment or
printing of CUSIP numbers on the Bonds or for the
correctness of any numbers printed thereon, but will permit
such numbers to be printed at the expense of the purchaser, if
the purchaser waives any delay in delivery occasioned
thereby.
To be named by the Issuer.
This offering will be issued as fully registered Bonds and,
when issued, will be registered in the name of Cede & Co., as
nominee of The Depository Trust Company, New York, New
York.
Ehlers & Associates, Inc. - (Rusty Fifield/Sid Inman)
Moody's Investors Service.
These Bonds WILL be designated as qualified tax-exempt
obligations.
This issue is exempt from continuing disclosure requirements.
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Bond Sale Report
ATTACHMENT 4
TERMS AND CONDITIONS OF ISSUE
$510,000 Taxable G.O. Tax Increment Refunding Bonds, Series 2000D
DATE:
ISSUER:
BOND NAME:
BOND ATTORNEY:
PURPOSE:
September 25, 2000
City of Elk River, Minnesota
$510,000 Taxable G.O. Tax Increment Refunding Bonds, Series 2000D
Briggs & Morgan - Jim O'Meara
Current refunding of the Taxable G.O. Tax Increment Bonds, Series
1989B and the Taxable G.O. Tax Increment Bonds, Series 1990A
Sale Date:
Est. Closing Date:
Proposal Opening:
Proposal Award:
Type of Sale:
Bonds Dated:
Maturity:
Term Bond Option:
First Interest:
Call Feature:
Minimum Proposal:
Good Faith:
October 23, 2000
November 14, 2000
11:00 a.m., office of Ehlers & Associates, Inc.
6:00 p.m., City offices
Competitive
November 1, 2000
February 1 2002- 2008
All dates are inclusive. Bids for the bonds may contain a
maturity schedule providing for any combination of serial
bonds and term bonds, subject to mandatory redemption, so
long as the amounts of principal maturing or subject to
mandatory redemption in each year conforms to the maturity
schedule set forth above.
August 1, 2001. Interest will be computed on the basis of a
360-day year of twelve 30-day months and will be rounded
pursuant to rules of the MSRB.
Bonds maturing in the years 2006 through 2008 will be
subject to redemption prior to final maturity on February 1,
2005 and on any date thereafter. Notice of such call shall be
given by mailing a notice thereof by registered or certified
mail at least thirty (30) days prior to the date fixed for
redemption to the registered owner of each bond to be
redeemed at the address shown on the registration books.
$503,880
$10,200, payable to the Issuer (Cashiers or Certified Good
Faith Check or wire transfer of funds to Ehlers Good Faith
Escrow or financial surety bond.
15
Record Date:
CUSIP Numbers:
Paying Agent:
Book Entry:
Financial Advisor:
Rating Requested:
Qualified Tax-Exempt Obligations:
Continuing Disclosure:
Bond Sale Report
Close of business on the 15th day (whether or not a business
day) of the immediately preceding month.
The Issuer will assume no obligation for the assignment or
printing of CUSIP numbers on the Bonds or for the
correctness of any numbers printed thereon, but will permit
such numbers to be printed at the expense of the purchaser, if
the purchaser waives any delay in delivery occasioned
thereby.
To be named by the Issuer.
This offering will be issued as fully registered Bonds and,
when issued, will be registered in the name of Cede & Co., as
nominee of The Depository Trust Company, New York, New
York.
Ehlers & Associates, Inc. - (Rusty Fifield/Sid Inman)
Moody's Investors Service.
NA.
This issue is exempt from continuing disclosure requirements.
16
Bond Sale Report
Resolution No.
Resolution Providing for the Sale of
$1,740,000 G.O. Tax Increment Bonds, Series 2000A
$1,275,000 G.O. Permanent Improvement Revolving Fund Bonds, Series 2000B
$900,000 G.O. Improvement Refunding Bonds, Series 2000C
$515,000 Taxable G.O. Tax Increment Refunding Bonds, Series 2000D
WHEREAS, the City Council of the City of Elk River, Minnesota, determines that it is necessary
and expedient to issue the City's $1,740,000 G.O. Tax Increment Bonds, Series 2000A to finance a portion
of the East Elk River Improvement Project; and
WHEREAS, the City Council determines that it is necessary and expedient to issue the City's
$1,275,000 G.O. Permanent Improvement Revolving Fund Bonds, Series 2000B to finance a portion of the
West Area Improvement Project Phase IV; and
WHEREAS, the City Council determines that it is necessary and expedient to issue the City's
$900,000 G.O. Improvement Refunding Bonds, Series 2000C to refund the outstanding maturities of the
G.O. Improvement Bonds, Series 1992B; and
WHEREAS, the City Council determines that it is necessary and expedient to issue the City's
$515,000 Taxable G.O. Tax Increment Refunding Bonds, Series 2000D to refund the outstanding
maturities of the Taxable G.O. Tax Increment Bonds, Series 1989B and the Taxable G.O. Tax Increment
Bonds, Series 1990A; and
WHEREAS, the City has designated Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"),
as its independent financial advisor and is therefore authorized to solicit proposals in accordance with
Minnesota Statutes, Section 475.60, Subdivision 2(9);
NOW, THEREFORE, BE IT RESOLVED by the City Council of City of Elk River, Minnesota, as
follows:
1. Authorization; Findings. The City Council hereby authorizes Ehlers to solicit proposals for the
sale of the Bonds.
2. Meeting; Proposal Opening. The City Council shall meet at the time and place to be specified in
the Terms of Proposal for the purpose of considering sealed proposals for, and awarding the sale of the
Bonds. The City Clerk, or designee, shall open proposals at the time and place to be specified in such
Terms of Proposal.
3. Terms of Proposal. The terms and conditions of the Bonds and the sale thereof are fully set forth
in the Bond Sale Report and are hereby approved and made a part hereof.
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Bond Sale Report
4. Official Statement. In connection with said sale, the officers or employees of the City are hereby
authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds
and to execute and deliver it on behalf of the City upon its completion.
Dated: September 25, 2000
ATTEST
City Clerk Mayor
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