HomeMy WebLinkAboutResolution - 98-32 - Bond Sale - 02/17/1998 CITY OF EDEN PRAMIE
HENNEPIN COUNTY,MINNESOTA
RESOLUTION NO. 98-32
RESOLUTION AUTHORIZING ISSUANCE AND SALE OF GENERAL
OBLIGATION WATER AND SEWER REVENUE BONDS, SERIES 1998A
BE IT RESOLVED by the City Council of the City of Eden Prairie(the City), as follows:
1. ose. It is hereby determined to be in the best interests of the City to issue its General
Obligation Water and Sewer Revenue Bonds, Series 1998A, in the approximate aggregate
principal amount of$ 7,950,000 (subject to adjustment as provided in the Terms of
Proposal) (the Bonds), pursuant to Minnesota Statutes, Chapter 475 and Section 444.075, to
finance improvements to the water and sewer system of the City.
2. Terms of Proposal. Springsted Incorporated, financial consultant to the City, has presented to
this Council forms of Terms of Proposal for the Bonds which are attached hereto and hereby
approved and shall be placed on file by the Finance Director/Clerk. Each and all of the
provisions of the Terms of Proposal are hereby adopted as the terms and conditions of the
Bonds and of the sale thereof. Springsted Incorporated, as independent financial advisers,
pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph(9)is hereby
authorized to solicit proposals for the Bonds on behalf of the City on a negotiated basis.
3. '.Sale Meeting. This Council shall meet at the time and place shown in the Terms of Proposal,
for the purpose of considering sealed proposals for the purchase of the Bonds and of taking
such action thereon as may be in the best interests of the City.
ADOPTED by the Eden Prairie City Council on February 17, 1998
an L.Harris,Mayor
ATTEST: SEAL:
J D. ane, City Clerk
OFFICIAL STATEMENT DATED MARCH 5, 1998
I
Rating: Requested from Moody`s
NEW ISSUES investors Service
In the opinion of Dorsey& Whitney LLP, Bond Counsel, on the basis of laws in effect on the date of issuance of the Bonds,interest on
the Bonds is not includable in gross income of the recipient for federal income tax purposes or in taxable net income of individuals,
estates and trusts for Minnesota income tax purposes, but is includable in taxable income of corporations and financial institutions for
purposes of the Minnesota franchise tax. (For a discussion of related issues see 'Tax Exemption"herein).
$7,950,000*
City of Eden Prairie, Minnesota
General Obligation Water and Sewer
Revenue Bonds, Series 1998A
(the "Capital Appreciation Bonds")
(Book Entry Only)
Dated Date: Date of Settlement Interest compounded each June 1 and December 1,
(Expected to be on or about April 21, 1998) commencing December 1, 1998 and payable
only at maturity or upon prior redemption
The Capital Appreciation Bonds will have a total maturity value of approximately $11,500,000 and will be paid
December 1, 2001 through 2008. The City may elect on December 1, 2006, and on any day thereafter, to
prepay the Capital Appreciation Bonds due on or after December 1, 2007. All prepayments shall be at the
accreted value.
Within 48 hours of award, the successful purchaser shall provide a table of accreted values for a $5,000
maturity value of each maturity as of each June 1 and December 1 through its maturity date based on
semiannual compounding at the interest rate specified for such Capital Appreciation Bonds, from the assumed
settlement date of April 21, 1998. In the case of discrepancy, the City's calculation of accreted values shall be
controlling.
Proposals shall be for not less than the amount listed in the "Terms of Proposal" attached herein must be
submitted, along with a certified or cashier's check or a Financial Surety Bond, payable to the order of the City.
Proposals shall specify rates in integral multiples of 5/100 or 1/8 of 1%. Rates must be in ascending order.
Award of the Bonds will be made on the basis of True Interest Cost (TIC).
The Bonds will not be bank-qualified tax-exempt obligations pursuant to Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended, and will not be subject to the alternative minimum tax for individuals.
The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the
name of Cede & Co., as nominee of The Depository Trust Company ("DTC"). DTC will act as securities
depository of the Bonds. Individual purchases may be made in book entry form only, in the principal amount
of$5,000 and integral multiples thereof. Investors will not receive certificates representing their interest in the
Bonds purchased. (See "Book Entry System" herein.) The City will name the Registrar. The City will pay for
registration services. The Capital Appreciation Bonds will be available for delivery at DTC on or about
April 21, 1998.
The City reserves the right, after proposals are opened and prior to award, to increase or reduce the 2001 through
2008 maturity values, in multiples of $5,000 in order to result in an original principal amount of approximately
$7,950,000.
PROPOSALS RECEIVED: March 17, 1998 (Tuesday) until 10:30 A.M., Central Time
AWARD: March 17, 1998 (Tuesday) at 7:30 P.M., Central Time
SPRINGSTED Further information may be obtained from SPRINGSTED
Incorporated, Financial Advisor to the Issuer, 85 East
Public Finance Advisors Seventh Place, Suite 100, Saint Paul, Minnesota
55101-2887(612)223-3000