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STAFF AGENDA REPORT
DATE:
3
RALPH TESCHNER, FINANCE DIRECTOR
CONSIDER UTILIZA TION OF A MONEY MANAGER TO
ENHANCE THE CITY'S INVESTMENT PORTFOLIO RETURN
MAY 29, 1996
AGENDA #:
PREPARED BY:
SUBJECT:
INTRODUCTION:
The purpose for this agenda item is to request Council authorization
to engage the services of C.H. Brown Company to invest city funds
in the short term government market.
DISCUSSION:
The City of Prior Lake has a current investment portfolio exceeding
11 million dollars. As Finance Director it has been my
responsibility to invest these funds in market instruments that are
permissible under Minnesota State Statutes. These securities are
typically Certificates of Deposits (guaranteed by FDIC up to
$100,000 and 1100/0 collaterlized by government securities for
amounts above $100,000), Commercial Paper, (highest rated A-lor
P-l Rated i.e. GE Capital), Treasury Bills, Government Notes and
Short Term Government Bonds. We accomplish this by investing
with a number of local financial institutions and broker dealers
including Juran & Moody, Inc.
Generally we have invested principal in such securities according to
the following general time periods:
Money Market Funds
Commercial Paper
Certificates of Deposits
Treasury Bills
Treasury Notes/Bonds
30 days or less
270 days maximum
3 mos. - 24 mos.
1 year or less
1 yr. - 30 yrs.
Our investment strategy has been to invest principal over a
relatively short time period, thus ensuring that movements in
interest rates will not dramatically affect the principal that was
invested. On average approximately 400/0 of the city's portfolio is
invested over a time period of 3 to 7 years with the remaining 60%
two years or under for cash flow purposes. We have been
conservative in this philosophy while returning yields lately in the
4.50% to 6.0% range.
Steve Mattson of Juran & Moody recently brought to my attention
that a local money manager (C.H. Brown & Co. of Bloomington)
has been rated number one in the Country in short term government
16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
, '/
ALTERNATIVES:
The Council has the fOllowing alternatives:
I. Approve the use of C.H. Brown as money manager and to
invest a maximum principal amount not to exceed $500,000.
2. Approve the use of C.H. Brown as money manager and to
invest a maximum principal amount not to exceed $1,000,000.
3. Do not authorize the utilization ofC.H. Brown & Co. as money
manager of city funds.
RECOMMENDATION: Staff would recommend that the City of Prior Lake engage the
services of C.H. Brown as money manager for an investment
principal amount not to exceed $1,000,000. (Alternative #2). This
amount would represent approximately 9% of the City's entire
investment portfolio. The intent would be to invest this amount for
an ongoing period of time, unless cash flow requirements would
dictate otherwise or if performance was determined to be
unsatisfactory. In discussing how to evaluate the performance of
C.H. Brown with our financial advisor, Steve Mattson suggests that
continuation should depend upon if they can maintain their ranking
among the top 10% of money managers, based upon yield, within
the Nelson Publication report "The World's Best Money
Managers" (a survey ranking of 56 money managers within the
short term cash government Classification).
If the Council concurs with this recommendation it is important that
the City Council be comfortable with the money manager concept.
Steve Mattson of Juran & Moody will be present to discuss this
request with you immediately after the bond sale.
MOTION REQUIRED:
1~
Motion and second to authorize the Finance Director to enter into a
contract with C.H. Brown & Co. for money manager services of
City i . not to exceed $1,000,000.
Approved by:
Attachment
A9602.DOC
The World's Best Money Managers
u.s. Cash Management / Money Market
4 Quarter R.O.R. Ending 12/31/95
16.00 %
C. B. BROWN
CO.
TCW GROUP
GREAT
NORTHERN
CAPITAL
ICMA PACIFIC INV.
RETIREMENT MGMT. CO.
CORP.
14.00 %
12.00 %
10.00%
8.00 %
6.00 %
4.00 %
2.00 %
0.00%
u.s. Cash Management / Money Market
20 Quarter ROR Ending 12/31/95
9.00%
C.B.BROWN PAYDEN & ICMA J.P.MORGAN TCWGROUP
CO. RYGEL RETIREMENT INV. MGMT.
CORP.
8.00%
7.00 %
6.00 %
5.00 %
4.00 %
3.00%
2.00 %
1.00%
0.00%
Source: Nelson's Investment Manager Database -1996
TO:
FROM:
DATE:
The Mayor and City Counc~ ~
Frank Boyles, City Manager 19
May 17, 1996
SUBJECT: Issues Related to May 20 Agenda Items and Forum
-.. ."......."...."..
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Agenda Item 4K - Cardinal Ridee 4th Addition Final Plat - The attached
letter from Jim Johnston States he is unable to secure a Letter of Credit
before the final plat is approved as set forth in City Code. He states he can
get a Conditional Letter of Credit. This was our practice until City Attorney
Suesan Pace reviewed the ordinance and found that a literal reading would
require the Letter of Credit before Council approval. If the ordinance is to be
complied with literally, this plat approval should be deferred until a Letter of
Credit is submitted. If a Conditional Letter of Credit is satisfactory, the
developer should be asked to supply one before plat approval is granted. In
either case, the City Council should give staff direction with respect to
whether the ordinance (attached) should be revised for future plats or if the
status quo should be maintained. Jim will be present at the Forum to
discuss his request.
Agenda Item 8B - Pheasant Meadow - Terry Schneider has asked that I
convey the attached letter to the City Council requesting a trail rather than
street connection to Balsam, as proposed in the approving resolution.
0520AGMM.DOC
MRY 16 '96 10:06 SIENNR CORP
P.2/3
YK
ii
CORPORATION
Suite 608.4940 Viking Drive. Minneapolis, Minnesota 55435 . 612-835-2808
May 161 1996
Mr. Frank Boyles
City of Prior Lake
16200 Eagle Creek Avenue SE
Prior Lake1 MN 55372...1714
Re: Cardinal Ridge Fourth Addition
Dear Frank:
I just finished a phone conversation with John Wingard, Assistant City Engineer,
regarding the letter of credit requirements for our proposed Cardinal Ridge Fourth
Addition. What is at issue is the new City requirement that we deliver the actual Jetter
of credit and not some form of Bank letter of intent to the City prior to final plat
consideration by the City Council. This requirement becomes a virtual impossibility
given how most development loans are placed and how raw land is purchased for
development. I am seeking a reconsideration by the City.
The problem is two-fold for Cardinal Ridge. First. our lender, Century Bank) needs
absolute assurance that the plat has received City Council approval prior to closing our
loan. Without that approval we have only horse pasture and there isn't collateral to
secure the letter of credit. Second. since the Fourth Addition is being carved out of a
larger parcel, both the Bank and the land seller have no absolute assurance that the
City will approve the division of the parcel into the Fourth Addition and the residual to
be held for the future Fifth Addition. Without that assurance our title insurance provider
will not insure the lender. In summary, we cannot complete the financing and purchase
transaction.
We are occasionally requested to provide a City with a conditional Letter of Intent to
Provide Security and our Bank is willing to do so for Cardinal Ridge Fourth.
It seems to me that the City has excellent control over the final platting process, given
that it doesn't have to sign the plat until it has the letter of credit and other cash deposits
Planners . Developers . Contractors
MAY 16 '96 10:06 SIENNA CORP
P.3/3
1/L-
in hand. I respectfully submit that to require the letter of credit prior to final plat
approval is overkill and creates major problems in the normal process of development
financing.
I would appreciate your review and comment of this situation. Thank you.
JWJ/vas
c: Roger Knutson, Esq.
Susan Pace, Esq.
Michael Leek
John Wingard
~.
____H..
(C)
6-7-16:
6-7-17:
in the vicinity. The development contract shall require the subdivider to make an t./ ~
escrow deposit or, in lieu thereof, furnish performance bonds as described in
Section 6-7-15, (A)-(C), to insure the improvements will be completed in
accordance with the development contract. Acceptance of improvements by the
City Engineer may be subject to such reasonable conditions as he may impose
at the time of acceptance. The subdivider through his engineer shall provide for
competent daily inspection during the construction of all improvements. Asbuilt
drawings with service and value ties on reproduceable mylar shall be delivered to
the City Engineer within one hundred twenty (120) days of completion of the
improvements together with a written certification from a Registered Civil
Engineer that all improvements have been completed, inspected and tested in
accordance with the approved plans on file in the office of the C,ty Fngineer. .
---
(A)
FINANCIAL GUARANTEE FOR SUBDIVIDER INSTALLED UTILITIES: In the
event the Subdivider chooses to install the improvements, then the development
contract as set forth in Section 6-7-14 above shall require the subdivider to make
an escrow deposit, furnish a performance bond, make a cash deposit or file a
letter of credit, at the option of the City, prior to final plat approval, as follows:
A cash escrow deposit shall be made with the City Finance Director in a
sum equal to one hundred twenty-five percent (1250/0) of the project cost
as estimated by the City Engineer.
(B)
Performance Bond. In lieu of making a cash escrow deposit, the
subdivider may furnish the City with a performance bond with surety and
conditions satisfactory to the City in a sum equal to one hundred
twenty-five percent (1250/0) of the City Engineer's estimate of the project
cost.
Letter of Credit. The subdivider may file with the City an irrevocable letter of credit. The
letter of credit shall be in a form acceptable to the City Attorney. The letter of credit shall
be in an amount equal to one hundred twenty-five percent (1250/0) of the total project cost
as estimated by the City Engineer.
FINANCIAL GUARANTEE FOR CITY INSTALLED UTILITIES AT THE
SUBDIVIDER'S REQUEST: In the event the City installs the improvements as
per Section 6-7-14 above, a cash deposit will be required. The subdivider will be
required to deposit with the City an amount equal to twenty-five percent (250/0) or
more of the total project cost. The total project cost will be determined by the
City Council. The development contract shall provide that the City of Prior Lake
will install the improvements and assess all benefiting lots in accordance with the
policies on file in the office of the Director of Finance.
WARRANTY/MAINTENANCE BOND: The City shall require where appropriate
a warranty/maintenance bond of a subdivider in an amount equal to the original
cost of the improvements which shall be in force for one (1) year following
acceptance of any required improvements and shall guarantee satisfactory
performance of such improvements.
33
MAY-16-96 02:31 PM
P.02
1fJ
Project
Developers, Inc.
May 16, 1996
Via fax 447-4245
Mayor and City Council Membcrs
City of Prior Lake
4629 Dakota St. S.E.
Prior Lake, MN 55372
Re: Pheasant Mcadow CUPlPlat
Dear Mayor and Council:
The CUP and Preliminary Plat for the above project will he on your agenda for May
20th, and hascd on the gcncral discussion fronl the last City Council meeting, I am
requesting 011 behalf of Williams Developnlent consideration of a change in one uf
the stipulati\1JlS. We would request changing stipulation #1 of the Conditional Use
Permit and stipulation #14 of the Preliminary plat, both dealing with the extension of
Balsam Street from the SUllset Hills Al1dition to our new road. to the following
wording:
"Provide a trail easement and construct a 6 foot bituminous trail from the
castern tcrminus of Balsam Street to the sidewalk locatelJ on the west side of
thc new street."
We understand the staffs and Planning C,onlmission's desire to promote the linkage
of ncighburhoods via local streets and pedestrian trails as stated in the Development
Objectivcs of the Comprehensive Guide plan. However, under the circumstances,
where thc Sunset Hills Neighborhood has stated a strong preference for a trail
connection only, and the fact that vehicular traffic can still access the proposed
Q)nlmercial area east of our site by simply traveling one lot to 170th Street and back
in our main road to the commercial area, we feel a pedestrian connection would be
more appropriate. I am including a skctch of how the trail cOllncction could be
constructed. Staffs lriiffic review of this proposed vehicular connection has indicated
Interchange Tower, Suite 1970
(0) South Highway 169
St. Louis Park, MN 55426
(612) 545-0505
Fax (612) 545-1510
MAY-16-96 02:32 PM
P.03
z1>
that it would carry minimal traffic, we therefore believe that the connection is not
essential for traffic purposes, and the ohjective of linking the neighborhoods can be
achieved with a pedestrian connection.
If however, the Council uecides that they do not want to change the stipulation, we
would be agreeable to accepting the stipulation as written. We will assunlC that this
item will be discussed at the council meeting without us having to address the
Council. We will however be available for any questions the Council may have.
Thank you for your consideration of our request.
Sincerely)
Project Developers, fnc-
,~ ,)S~~
Terry Schneider
cc Frank Boyles
Don Rye
Jeff Wi Iliams
i,
?
02:33 PM ))
16-96
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PUBLIC HEARING
on
1996 Improvement Projects and Consider Resolution 96-48
May 6, 1996
Attendance - Please Print
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PUBHEARG.DOC
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T ABLE OF CONTENTS
Summary of Offering . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prin ci pal Ci ty Offici al s. . . . . . . . . . . . . . . . . . . ... . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . .. . . .
Issuer's Certificate .................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Official Tenns of Bond Sale ............................................... . . . . . . . . . . . . . . . . . . . . . . . .
Authority and Security for the Bonds. ..... .. . . .. . . ... ... .. ...... ... . . .. . . .. . . .. . .. . . .. . . .. . ... . ..
Purpose. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statutory Debt Limit..... ....... ..... ...... ..... ...... ...... ...... ........... ... ...... ... ..... .......
Estimated Source and Application of Funds .....................................................
Future Financing ....................................................................................
Bond Ra tin g.. . .. . . .. . . .. ..... ... .. .. . ..... . .. .... .. ...... ........ ... ... .. . .. ... .. ..... .. .. .. ... . . ....
I..itigation ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Certification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
ugality .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Continuing Disclosure. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Tax Exemption and Other Tax Considerations...................................................
~~ TaQ(-ExemptOl>ligations ................................................................
The City of Prior Lake (General Infonnation) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Minnesota Valuations, TaQ( Credits and uvy Limitations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The City of Prior Lake (Economic and Financial Information) ................................
Summary of Del>t and Debt Statistics. . . .. . .. . . .. .. .. . . .. .. .. . .. . . .. .. .. . . .. . . .. ... . . .. . . .. . . .. . ..
Appendix A - Continuing Disclosure. .. .. . . .. ... .. .. . . ... . .. . . .. .. ... ... . .. . . .. . . .. . . .. . . .. . ..
Appendix B - Proposed Form of Legal Opinion..............................................
Appendix C - Excerpts from the Financial Report.........................................
Coml>ined Balance Sheet - All Funds and Account Groups.........................
Coml>in~ Statement of Revenue, Expenditures and
Fund Balance - All Governmental Fund Types.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Statement of Revenue, Expenditures and Fund
Balance - Budget and Actual - General Fund..............................................
Coml>ined Statement of Revenue, Expense and
Retained Earnings - Proprietary Funds - Enterprise Funds...........................
Coml>ined Statement of Cash Flows--Proprietary Funds - Enterprise Funds...........
Notes to Financial Statements.. . . . . . . .. . .. . . . . . . .. . .. . . . . . . .. . . .. . . . . . .. . . .. . . . . . .. . . .. . . .. . . .
Worksheet. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bid Forms. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2
3
4
5- 10
11
11
11
12
13
13
13
13
13
14
15- 16
16
17- 21
22- 24
25- 32
33
34- 40
41- 42
43
44- 45
46- 47
48
49
50
51- 70
71
73- 74
SUMMARY OF OFFERING
$935,000
GENERAL OBLIGATION IMPROVEMENT BONDS OF 1996
AMOUNr - $935,000.
ISSUER - City of Prior Lake, Minnesota.
SAlEDA1E- Wednesday, May 29, 1996.
TYPE OF ISSUE - General Obligation Improvement Bonds of 1996. (See Authority and Security for the Bonds and
Estimated Source and Application of Funds for further details.)
OPENING- 11:30 A.M., Central Time, at Juran & Moody, Inc. Minnesota Mutual Life Building, 400 North Robert Street,
Suite 800, St. Paul, Minnesota 55101-2091.
AWARD - 5:30 P.M., Central Time, at the Prior Lake Fire Hall, 16776 Fish Point Road Southeast, Prior Lake, Minnesota
55372.
SECURITY & PURPOSE - These bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. The bonds
are payable primarily from special assessments and are additionally secured by ad valorem taxes
on all taxable property within the City and without limitation of amount. Furthermore, the
proceeds of these general obligation Improvement bonds will be used to finance various
improvements within the City including but not limited to storm sewer, streets, sidewalk,
sanitary sewer, water main and curb & gutter.
DA1EOFISSUE- June I, 1996.
INIERESTPAYABLEDA1ES- June I, 1997, and semiannually thereafter on each December 1 and June 1.
DENOMINATIONS - Fully registered general obligation bonds, $5,000 or larger denominations at the option of the
proposal maker.
MAnJRITIES-
12/01/97
12/01/98
$75,000
75,000
12/01199 $80,000
12/01/00 85,000
12/01101 $90,000
12/01/02 95,000
12/01/03 $100,000
12/01/04 105,000
12/01/05 $110,000
12/01/06 120,000
AVERAGEMA1lJRI1Y - 6.44118 years.
REDEMPTIONfEAlURE- At the option of the Issuer, bonds maturing on or after December 1, 2000 shall be subject to
prior payment on December 1, 1999, and any interest payment date thereafter, at a price of par
and accrued interest. Redemption may be in whole or in part of the bonds subject to prepay-
ment. If redemption is in part, the bonds remaining unpaid which have the latest maturity date
shall be prepaid first and if only part the bonds having a common maturity date are called for
prepayment the specific bonds to be prepaid shall be chosen by lot by the Registrar.
PAYING AGENTIREGISlRAR - First Trust National Association, St. Paul, Minnesota.
ME1lIOD OF SAlE- Sealed proposals only, accompanied by a good faith check in the amount of $18,700 at a price of not
less than $917,235 plus accrued interest. (See Official Terms of Bond Sale for full details.)
TAX DESIGNATIONS -
Private Activitv Bonds - These bonds are not "private activity bonds" as defined in U41 of the Internal Revenue Code
of 1986, as amended (the Code).
Oualified Tax-Exempt Ohli~ations - The City will designate these bonds "qualified tax-exempt obligations" for pur-
poses of ~265 (b) (3) of the Code.
LEGAL OPINION - Briggs and Morgan, Professional Association, St. Paul and Minneapolis, Minnesota.
RATING- The City's current general obligation bond rating is "An by Moody's Investors Service, Inc. The City hu
applied to Moody's for a rating to be assigned to this issue as well.
ESTIMATEDa.DSINGDA1E- June 19, 1996.
PRIMARY CONTACT - Frank Boyles, City Manager, (612) 447-4230.
Ralph Teschner, City Finance Director, (612) 447-4230.
Steven J. Mattson, Juran & Moody, Inc., (612) 224-1500 or (800) 950-4666.
- 2 -
CITY OF PRIOR LAKE
PRINCIPAL CITY OFFICIALS
Elected Officials
City Council
Name
Position
Lydia Andren
Allen Greenfield
Mayor
Council Member
Tom Kedrowski
Council Member
Wes Mader
Council Member
Peter Schenck
Council Member
Appointed Officials
City Manager
Frank Boyles
Ralph Teschner
Campbell, Knutson, Scott & Fuchs, P .A.-
Suesan Pace
Finance Director
City Attorney
City Engineer
Larry Anderson
Bond Counsel
Briggs and Morgan, Professional Association
St. Paul and Minneapolis, Minnesota
Bond Consultant
Juran & Moody, Inc.
St. Paul, Minnesota
- 3 -
Term Expires
12/31/97
12/31/97
12/31/99
12/31/99
12/31/97
ISSUER'S CERTIFICATE
This Preliminary Official Statement has been prepared in conformance with the Disclosure
Guidelines for offerings of municipal securities as promulgated by the Municipal Finance Officers
Association of the United States and Canada, insofar as possible.
The City of Prior Lake has retained the firm of Juran & Moody, Inc., St. Paul, Minnesota, to serve
as financial advisor with respect to the securities being offered in this Preliminary Official
Statement. All statements contained herein, while not guaranteed, have been compiled from
sources believed to be reliable in all material respects.
Financial statements of the City are audited annually by an independent firm of certified public ac-
countants. Excerpts from the financial statements for the year ended December 31, 1994, along
with comparative December 31, 1993 figures, are included in this Preliminary Official Statement
and complete financial statements are available for inspection at the Prior Lake City Hall as well as
at the St. Paul office of Juran & Moody, Inc.
The City of Prior Lake has always promptly met all payments of principal and interest on its in-
debtedness when due.
NO FINAL OFFICIAL STATEMENT WILL BE PREPARED.
THE ISSUER WILL PROVIDE THE SUCCESSFUL
UNDERWRITER WITH AN ADDENDUM THA T TOGETHER
WITH THIS PRELIMINARY OFFICIAL STATEMENT WILL
BE DEEMED THE FINAL OFFICIAL STATEMENT BY
THE ISSUER.
THE DATE OF THIS PRELIMINARY OFFICIAL STATEMENT IS MAY 13, 1996.
- 4 -
OFFICIAL TERMS OF
BOND SALE
$935,000
GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1996
CITY OF PRIOR LAKE
SCOTT COUNTY
MINNESOTA
NOTICE IS HEREBY GIVEN that these bonds will be offered for sale
according to the following terms:
TIME AND PLACE:
Sealed proposals will be opened by the
City Manager, or designee, on Wednesday,
May 29, 1996, at 11:30 A.M., Central
Time, at the offices of Juran & Moody,
Inc., 400 North Robert Street, Suite
800, in Saint Paul, Minnesota 55101-
2091. Consideration of the proposals
for award of the sale will be by the
City Council at its meeting in the Prior
Lake Fire Hall beginning at 5:30 P.M.,
on the same day.
Fully registered general obligation
bonds, $5,000 or larger denominations at
the option of the proposal maker.
TYPE OF BONDS:
DATE OF ORIGINAL
ISSUE OF BONDS:
June 1, 1996.
INTEREST PAYMENTS:
For the purpose of providing money to
finance the construction of various
improvements in the City.
June 1, 1997, and semiannually
thereafter on June 1 and December 1.
PURPOSE:
MATURITIES:
December 1 in each of the years and
amounts as follows:
319480.1
- 5 -
Year Amount
1997-1998 $ 75,000
1999 80,000
2000 85,000
2001 90,000
2002 95,000
2003 100,000
2004 105,000
2005 110,000
2006 120,000
All dates are inclusive.
REDEMPTION:
Proposals 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 amount of principal
maturing or subject to mandatory
redemption in each year conforms to the
maturity schedule set forth above.
At the option of the Issuer, bonds
maturing on or after December 1, 2000
shall be subject to prior payment, on
December 1, 1999 and any interest
payment date thereafter, at a price of
par and accrued interest. Redemption
may be in whole or in part of the bonds
subject to prepayment. If redemption is
in part, the bonds remaining unpaid
which have the latest maturity date
shall be prepaid first and if only part
of the bonds having a common maturity
date are called for prepayment the
specific bonds to be prepaid shall be
chosen by lot by the Registrar.
Principal will be payable at 'the main
corporate office of First Trust National
Association, in St. Paul, Minnesota (the
"Registrar"). Interest will be payable
by check or draft of the Registrar
mailed to the registered holder of the
bond at his address as it appears on the
books of the Registrar. The Issuer will
pay reasonable and customary charges for
the services of the Registrar.
BOND REGISTRAR:
319480.1
- 6 -
CUSIP NUMBERS:
If the bonds qualify for assignment of
CUSIP numbers such numbers will be
printed-on the bonds, but neither the
failure to print such numbers on any
bond nor any error with respect thereto
shall constitute cause for a failure or
refusal by the Purchaser thereof to
accept delivery of and pay for the bonds
in accordance with terms of the purchase
contract. The CUSIP Service Bureau
charge for the assignment of CUSIP
identification numbers shall be paid by
the Purchaser.
DELIVERY:
Forty days after award subject to
approving legal opinion of Briggs and
Morgan, Professional Association, of St.
Paul and Minneapolis, Minnesota. Bond
printing and legal opinion will be paid
by the Issuer and delivery will be
anywhere in the continental United
States without cost to the Purchaser.
Legal opinion will be printed on the
bonds at the request of the successful
proposal maker.
Sealed proposals of not less than
$917,235 and accrued interest on the
principal sum of $935,000 from date of
original issue of the bonds to date of
delivery must be filed with the
undersigned prior to the time of sale.
Proposals must be unconditional except
as to legality. A certified or
cashier's check (the "Deposit") in the
amount of $18,700 payable to the order
of the Finance Director of the Issuer,
or a Financial Surety Bond complying
with the provisions below, m~st
accompany each proposal, to be forfeited
as liquidated damages if proposal maker
fails to comply with accepted proposal.
Proposals for the bonds should be
delivered to Juran & Moody, Inc., and
addressed to:
TYPE OF PROPOSAL:
319480.1
- 7 -
RATES:
Ralph Teschner
Finance Director
Prior Lake City Hall
16200 Eagle Creek Avenue
Prior Lake, Minnesota 55372-1714
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 Issuer. Such bond must be submitted
to Juran & Moody, Inc. prior to the
opening of the proposals. The Financial
Surety Bond must identify each proposal
maker whose Deposit is guaranteed by
such Financial Surety Bond. If the
bonds are awarded to a proposal maker
using a Financial Surety Bond, then that
purchaser is required to submit its
Deposit to Juran & Moody, Inc. in the
form of a certified or cashier's check
or wire transfer as instructed by Juran
& Moody, Inc. 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 Issuer
to satisfy the Deposit requirement. The
Issuer will deposit the check of the
purchaser, the amount of which will be
deducted at settlement and no interest
will accrue to the purchaser. In the
event the purchaser fails to comply with
the accepted proposal, said amount will
be retained by the Issuer. No proposal
can be withdrawn after the time set for
receiving proposals unless the meeting
of the Issuer scheduled for award of the
bonds is adjourned, recessed, or
continued to another date without award
of the bonds having been made.
All rates must be in integral multiples
of 1/20th or 1/8th of 1%. No limitation
is placed upon the number of rates which
may be used. All bonds of the same
maturity must bear a single uniform rate
from date of issue to maturity and no
rate of any maturity may be lower than
319480.1
- 8 -
the highest rate applicable to bonds of
any preceding maturities.
INFORMATION FROM The successful purchaser will be
PURCHASER: required to provide, in a timely manner,
certain information relating to the
initial offering price of the bonds
necessary to compute the yield on the
bonds pursuant to the provisions of the
Internal Revenue Code of 1986, as
amended.
QUALIFIED TAX The Issuer will designate the
EXEMPT OBLIGATIONS: bonds as qualified tax exempt
obligations for purposes of Section
26S(b) (3) of the Internal Revenue Code
of 1986, as amended.
NO CONTINUING The bonds are exempt from continuing
DISCLOSURE UNDERTAKING: disclosure requirements of Rule 15c2-12
of the Securities and Exchange
Commission (as recently amended and
supplemented) because the bonds are
issued in the aggregate principal amount
of less than $1,000,000. Consequently,
the Issuer is not covenanting to provide
and will not provide annual financial
information, notices of certain material
events or any other disclosure or
information which would otherwise be
required by that Rule.
AWARD: Award will be made solely on the basis
of lowest dollar interest cost,
determined by addition of any discount
to and deduction of any premium from the
total interest on all bonds from their
date to their stated maturity.
319480.1
- 9 -
The Issuer reserves the right to reject any and all proposals, to
waive informalities and to adjourn the sale.
Dated: May 6, 1996.
BY ORDER OF THE CITY COUNCIL
/s/ Frank Boyles
City Manager
Additional information
may be obtained from:
JURAN & MOODY, INC.
Minnesota Mutual Life Building
400 North Robert Street
Suite 800
St. Paul, Minnesota 55101-2091
Telephone No.: (612) 224-1500
319480.1
- 10 -
AUTHORITY AND SECURITY FOR THE BONDS
$935.000 General Oblifation Improvement Bonds of 1996
The $935,000 General Obligation Improvement Bonds of 1996, dated June 1, 1996, are being
issued pursuant to Minnesota Statutes, Chapters 429 and 475. At closing, Briggs and Morgan,
Professional Association, Bond Counsel, will render an opinion that the bonds are valid and
binding general obligations of the City of Prior Lake. The bonds will be payable primarily from
special assessments. In addition, the full faith and credit of the City is pledged to their payment and
the City has validly obligated itself to levy ad valorem taxes in the event of any deficiency in the
Debt Service Account of this issue to pay principal and interest payments for this issue. These
taxes will be levied upon all of the taxable property within the City and without limitation of
amount. The interest on the bonds is not includable in the gross income of the recipient for pur-
poses of United States income tax or the State of Minnesota income tax (other than Minnesota cor-
porate excise taxes measured by income) according to present Federal and Minnesota laws, regula-
tions, rulings and decisions. (See Proposed Form of Legal Opinion.)
PURPOSE
$935.000 General Oblivation Imvrovement Bonds of 1996
The purpose of this general obligation Improvement bond issue is to finance the costs of various
improvements within the City including but not limited to storm sewer, streets, sidewalks, sanitary
sewer, water main and curb & gutter.
STATUTORY DEBT LIMIT
Minnesota Statutes, ~475.53, states that a City may not incur or be subject to a net debt in excess
of two percent (2%) of its estimated market value. Net debt is, with limited exceptions, debt paid
solely from ad valorem taxes.
Computation of Legal Debt Margin as of May 2, 1996, plus this issue:
1995-1996 Estimated Market Value
Times 2% of Estimated Market Value
$ 543,216,800
x .02
Statutory Debt Limit
$ 10,864.336
Amount of debt applicable to debt limit:
Legal debt margin
$ 16,315,000t
( 6,685,000)
( 100,000)
( 55,000)
( 3,025,000)
( 705,000)
( 2,200,000)
( 725.000)
$ 2,820.000
$ 8,044,336
Total Bonded Debt (includes this issue)
Less: General Obligation Improvement Bonds (includes this issue)
General Obligation Improvement Refunding Bonds
General Obligation Tax Increment Bonds
General Obligation Advance Refunding Bonds
General Obligation Refunding Bonds
General Obligation Water and Sewer Revenue Bonds
General Obligation Crossover Refunding
Total debt applicable to debt limit
t The outstanding $30,000 of the $180,000 General Obligation Sanitary Sewer Bonds of 1969, dated
October 1, 1969, bm!J:. been deducted since the bonds were assumed by the Metropolitan Waste Control
Commission.
- 11 -
ESTIMATED SOURCE AND APPLICATION OF FUNDS
$935.000 General Obligation Improvement Bonds of 1996
I. Source of Funds
General Obligation Improvement Bonds of 1996 $ 935,000
II. ApJ>1ication of Funds
Estimated Costs to be Financed:
Northwood Road $ 338,015
CSAH 21 Improvements 444,841
Lakefront Park 46,875
Bituminous Sealcoating 46.875
Total Project Hard Costs $ 876,606
Add Estimated Issuance Costs:
[Legal opinion, bond printing,
bond registration (one time fee),
fiscal fee and bond rating fee] $ 26,500
Capitalized interest (6 months) 14,400
Underwriter's Discount (1.90% of par) 17.765
Total Issuance Costs 58.665
Net Funds Required $ 935,271
Rounding Factor ( 271)
Par Amount of Bond Issue $ 935,000
- 12 -
FUTURE FINANCING
The City does not anticipate the need to finance any capital improvements with the issuance of
general obligation bonds for the remainder of 1996.
BOND RATING
The City's current general obligation bond rating is "A" by Moody's Investors Service, Inc. The
City has applied to Moody's for a rating to be assigned to this issue as well.
LITIGATION
On March 13, 1996, the City Attorney indicated that no litigation is pending or threatened that
would jeopardize the creditworthiness of the City of Prior Lake. Claims or other actions in which
the City is a defendant are covered by insurance or of insignificant amounts.
CERTIFICA TION
The City will furnish, upon request, a statement to the effect that this Preliminary Official
Statement to the best of their knowledge and belief, as of the date of sale and the date of delivery,
is true and correct in all material respects, and does not contain any untrue statements of a material
fact or omit to state a material fact necessary in order to make the statements made therein, in light
of the circumstances under which they were made, not misleading.
LEGALITY
Legal matters incident to the authorization and issuance of the bonds are subject to the approving
opinion of Briggs and Morgan, Professional Association, Bond Counsel, as to validity and tax ex-
emption. A copy of such opinion will be printed on the reverse side of the bonds and will be avail-
able at the time of the delivery of the bonds (see Proposed Form of Legal Opinion).
Bond Counsel has not participated in the preparation of this Preliminary Official Statement and is
not passing upon its accuracy, completeness or sufficiency. Bond Counsel has not examined, nor
attempted to examine, or verify, any of the financial or statistical statements or data contained in
this Preliminary Official Statement, and will express no opinion with respect thereto.
- 13 -
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with SEC Rule 15c2-12 (the "Rule"), pursuant to
the Award Resolution and a Continuing Disclosure Undertaking to be executed on behalf of the
City on or before Bond Closing, the City has and will covenant (the "Undertaking") for the benefit
of the holders of Bonds to provide certain financial information and operating data relating to the
City to certain information repositories annually, and to provide notices of the occurrence of certain
events enumerated in the Rule to certain information repositories or the Municipal Securities
Rulemaking Board and to any state information depository. The specific nature of the Undertaking,
as well as the information to be contained in the annual report or the notices of material events is set
forth in the Continuing Disclosure Undertaking in substantially the form attached hereto as
Appendix A. The City has never failed to comply in all material respects with any previous
undertakings under the Rule to provide annual reports or notices of material events. A failure by
the City to comply with the Undertaking will not constitute an event of default on the Bonds
(although holders will have an enforceable right to specific performance). Nevertheless, such a
failure must be reported in accordance with the Rule and must be considered by any broker, dealer
or municipal securities dealer before recommending the purchase or sale of the Bonds in the
secondary market. Consequently, such a failure may adversely affect the transferability and
liquidity of the bonds and their market price.
Please see Appendix A for further information regarding continuing disclosure for the City of
Prior Lake, Minnesota.
- 14 -
TAX EXEMPTION AND OTHER TAX CONSIDERATIONS
Tax Exemption. At closing Briggs and Morgan, Professional Association, Bond Counsel, will
render an opinion that, at the time of their issuance and delivery to the original purchaser, under
present federal and State of Minnesota laws, regulations, rulings and decisions (which excludes
any pending legislation that may have a retroactive effect), the interest on each Bond is excluded
from gross income for purposes of United States income tax and is excluded, to the same extent, in
computing both gross income and taxable net income for purposes of State of Minnesota income
tax (other than Minnesota franchise taxes measured by income and imposed on corporations and
financial institutions), and that interest on the Bonds is not an item of tax preference for purposes
of computing the federal alternative minimum tax imposed on individuals and corporations or the
Minnesota alternative minimum tax applicable to individuals, estates or trusts; provided that interest
on the Bonds is subject to federal income taxation to the extent it is included as part of adjusted
current earnings for purposes of computing the alternative minimum tax imposed on corporations.
No opinion will be expressed by Bond Counsel regarding other federal or state tax consequences
caused by the receipt or accrual of interest on the Bonds or arising with respect to ownership of the
Bonds. Preservation of the exclusion of interest on the Bonds from federal gross income and state
gross and taxable net income, however, depends upon compliance by the City with all re-
quirements of the Internal Revenue Code of 1986, as amended, (The "Code") that must be satisfied
subsequent to the issuance of the Bonds in order that interest thereon be (or continue to be) ex-
cluded from federal gross income and state gross and taxable net income.
The City will covenant to comply with requirements necessary under the Code to establish and
maintain the Bonds as tax-exempt under ~ 103 thereof, including without limitation, requirements
relating to temporary periods for investments and limitations on amounts invested at a yield greater
than the yield on the Bonds.
Property and Casualty Insurance Companies
Property and casualty insurance companies are required to reduce the amount of their loss reserve
deduction by 15% of the amount of tax-exempt interest received or accrued during the taxable year
on certain obligations acquired after August 7, 1986, including interest on the Bonds.
Foreivn Insurance Companies
Foreign companies carrying on an insurance business in the United States to a tax on income that is
effectively connected with their conduct of any trade or business in the United States, including
"net investment income". Net investment income inclupes tax-exempt interest such as interest on
the Bonds.
Branch Profits Tax
A foreign corporation is subject to a branch profits tax equal to 30% of the "dividend equivalent
amount" for the taxable year. The "dividend equivalent amount" is the foreign corporation's
"effectively connected earnings and profits," adjusted for increase or decrease in "U.s. net equity."
A branch's earnings and profits may include tax-exempt municipal bond interest, such as interest
on the Bonds.
Environmental Tax
Corporations are subject to a federal "environmental tax." Interest on the Bonds is subject to the
environmental tax to the extent included in adjusted net book income or adjusted current earnings
of a corporation whose modified alternative taxable income exceeds $2,000,000 for the taxable
years to which it applies.
- 15 -
Passive Investment Income of S Corporations
Passive investment income, including interest on the Bonds, may be subject to federal income
taxation under ~ 1375 of the Code for S corporations that have Subchapter C earnings and profits at
the close of the taxable year if more than 25% of the gross receipts of such S corporations is
passive investment income.
Oualified Financial Institutions
Prior to adoption of the Tax Reform Act of 1986 (the "Act"), financial institutions were generally
permitted to deduct 80% of their interest expense allocable to tax-exempt bonds. Under the Act,
however, financial institutions are generally not entitled to such a deduction for tax-exempt bonds
purchased after August 7, 1986. However, the City will designate the Bonds as "qualified tax-
exempt obligations" pursuant to ~265 (b) (3) of the Code that will permit financial institutions to
deduct interest expenses allocable to the Bonds to the extent permitted under prior law. See
"Qualified Tax-Exempt Obligations" below.
Social Security and Railroad Retirement Benefits
Certain recipients of social security benefits and railroad retirement benefits are required to include
a portion of such benefits within gross income by reason of receipt of interest on tax exempt
obligations, including the Bonds.
Exclusion Not Constitutionally Required: Pendinf Lefislation
The United States Supreme Court ruled in 1988 that the exclusion from gross income of interest on
state and local bonds is not required by the United States Constitution. The Constitution of the
State of Minnesota likewise does not require the exclusion from gross income or taxable net
income of interest on bonds of Minnesota issuers. Hence, future federal and/or state laws could
cause the inclusion of interest on bonds, including the Bonds, in gross income of taxable net
income, or could otherwise cause such interest to be taxed or to be included in the calculation of
other income which is taxed.
Oualified Tax-Exempt Oblivations
The City will designate the Bonds as "qualified tax-exempt obligations" for purposes of ~265 (b)
(3) of the Internal Revenue Code of 1986, as amended, relating to the ability of financial
institutions to deduct from income for federal income tax purposes, interest expense that is
allocable to carrying and acquiring tax-exempt obligations. "Qualified tax-exempt obligations" are
treated as acquired by a financial institution before August 8, 1986. Interest allocable to such
obligations remains subject to the 20% disallowance under prior law.
General
The preceding is not a comprehensive list of all federal tax consequences which may arise from the
receipt or accrual of interest on the Bonds. The receipt or accrual of interest on the Bonds may
otherwise affect the federal income tax (or Minnesota income tax or franchise tax) liability of the
recipient based on the particular taxes to which the recipient is subject and the particular tax status
of other items of income or deductions. Bond Counsel expresses no opinion regarding any such
consequences. All prospective purchasers of the Bonds are advised to consult their own tax
advisors as to the tax consequences of, or tax considerations for, purchasing or holding the bonds.
- 16 -
THE CITY OF PRIOR LAKE
GENERAL INFORMATION
Access and Transportation
The City of Prior Lake, situated in Scott County, is located in the east central portion of Minnesota
approximately 30 miles southeast of the Twin Cities Metropolitan Area. Access is provided via
State Highway 13 as well as County Roads 12, 21, 23, 39, 42, 44, 81, 82, and 87. There are
approximately 40 miles of paved residential streets within the City's corporate limits.
Tax Base
For taxes collectible in 1996, the tax breakdown is 72.74% residential homestead
(non-agriculture), 1.36% agricultural, .43% public utility, 10.23% commercial & industrial,
10.20% non-homestead residential, 1.76% seasonal recreational and 3.28% personal property.
Area
10,240 Acres
(16.00 Square Miles)
Population
1970 Census
1980 Census
1990 Census
1995 Estimate (111/96)
1,114
7,284
11,682
13,700
Municipal Facilities
Revenue Producinf Facilities:
The Waterworks System has approximately 4,266 connections that consists of two elevated water
storage facilities with a combined total of 1,750,000 gallons and three municipal wells that have the
capacity to pump 2,160,000 gallons per day. The average demand is 800,000 gallons per day
while peak demand reaches 1,500,000 gallons per day. Total tap water hardness is 350 parts per
million.
The Sewer System has approximately 4,266 connections. The sanitary sewer disposal needs are
served by the Metropolitan Waste Control Commission with 27 lift stations. The average demand
is 1,100,000 gallons per day while peak demand reaches 2,750,000 gallons per day.
The 1994 audited gross water & sewer utility revenues were $1,557,238 with the average water &
sewer utility charge per year per household and commercial connection at $365. The 1995
residential and industrial water rate is $1.05 per thousand gallons of water consumption. The 1995
sewage use charge is $2.70 per thousand gallons.
- 17 -
Other Municipal Services:
Fire Department. The City currently has a 35-member volunteer fire department consisting of one
tanker, two fire trucks, an aerial fire truck, one pumper, two ambulances, two 4x4 trucks, one
rescue truck, and other miscellaneous fire fighting equipment.
Police Department. The City operates its own police department with two part-time and twenty full-
time employees-one chief of police, one lieutenant, two sergeants, two detectives, one part-time
community services officer, twelve police officers, two full-time secretaries/dispatchers, and one
part -time secretary.
ParksIRecreation. The City currently operates 31 designated park sites totaling 466 acres as well as
a 40 acre athletic complex. Facilities include an indoor swimming pool, enclosed picnic shelters
with picnic tables, walking/snowmobiling/cross-country ski trails, skating/hockey/broomball
rinks, basketball courts, softball/baseball fields, football fields, and general playground equipment.
Employee Pension Programs
The City employs 63 people-56 full-time and 7 part-time. The pension plan covers 61 of the
City's employees.
The City participates in contributory pension plans through the Public Employees Retirement
Association (PERA) under Minnesota Statutes, Chapter 353, which covers substantially all em-
ployees except those qualifying as temporary or seasonal employees. This plan is a state adminis-
tered plan and is coordinated with the Federal Social Security Retirement Plan (FICA). State statute
requires the City to fund current service pension cost as it accrues. Prior service cost is being
amortized over a period of 40 years and is being funded by payment determined as a portion of
gross wages paid by all employers participating in the State Association. The amount of unfunded
prior service cost attributed to individual reporting entities is not determinable.
The City's contributions to PERA for the past five years have been as follows:
1995 $ 170,012
1994 152,499
1993 146,149
1992 129,744
1991 120,811
The volunteer firemen of the City are eligible for pension benefits through membership in the
Prior Lake Firemen's Relief Association organized under Minnesota Statutes, Chapter 69, and
administered by a separate Board elected by the membership. This plan is funded by state aids, in-
vestment earnings and City contributions. State statute requires this plan to fund current service
cost as it accrues and prior service cost to be amortized over a period of ten years.
All members of the Prior Lake Fire Department who have served for at least 20 years and have
reached the age of 50 years shall be paid a pension equal to the sum of $1,900 per year of service.
Volunteers who have served a minimum of 10 years but less than 20 years shall be paid a pension
at age 50 according to the following schedule:
10 years - 60%
11 years - 64%
12 years - 68%
13 years -72%
14 years -76%
15 years - 80%
16 years - 84%
17 years - 88%
18 years - 92%
19 years - 96%
20 years - 100%
Financial Institutions
Financial services are provided by the Prior Lake State Bank, Marquette Bank, N .A.(branch of
Golden Valley), Metropolitan Federal Bank (branch of Fargo, NO) and South Metro Federal Credit
Union. Prior Lake State Bank's reported deposits as of December 31, 1994, are $61,454,000.
- 18 -
City Government
Prior Lake is a Minnesota Statutory City with an Optional Plan B form of government. It has a
mayor elected at large for a four-year term and four council members also elected at large for four-
year terms. The professional staff is appointed and consists of a city manager, city finance director,
city attorney, and city engineer.
Schools
The City of Prior Lake is served by ISD #0719, Prior Lake and ISD #0720, Shakopee.
Independent School District #0719 operates one early childhood and kindergarten school, Ponds
Edge with a 1995 enrollment of 350. The District also operates three elementary schools, Five
Hawks Elementary, grades three and four, Grainwood Elementary, grades five and six, Westwood
Elementary, grades one and two, a junior high, grades seven and eight, and a senior high school,
grades nine through twelve. The 1995/1996 combined enrollment at the five schools is 4,228 with
a student teacher ratio of 15.1: 1. Independent School District #0720 operates two elementary
schools, grades kindergarten through four, one elementary, grades five and six, a junior high
school, grades seven through nine, and a senior high school, grades ten through twelve. The
1995/1996 combined enrollment at the five schools is approximately 3,045.
In addition, there are three parochial schools located within Prior Lake-Prior Lake Christian,
St. Michael, and St. Paul's Lutheran. Prior Lake Christian consists of grades kindergarten through
twelve and has an enrollment of 49. St. Michael is comprised of grades kindergarten through eight
with an enrollment of 373. St. Paul's Lutheran operates grades kindergarten through five with an
enrollment of 30. Furthermore, St. Michael and St. Paul's Lutheran are accredited by the
Minnesota Nonpublic School Accrediting Association.
Commercial/Industrial Development
Building construction and commerciaVindustrial growth completed within the past three years
have been as follows:
Name
Award Printing
Holiday
Keyland Homes
American GlasslMetro Cabinets}
E.M. Products}
Fairview Medical Clinic}
NBC Products}
Speiker Building}
Wilds Clubhouse}
Becker Arena Products
Commerce Building
Main Avenue Video
North Lake Office Complex
Prior Lake Mini-Storage
Wilds Sales Office
Product/Service
Printing Publication Company
Gas/Convenience
Construction Company
Glass Replacement/Cabinets
Industrial Generator Muffler
Medical Services
Air Filtration Systems
Office Space
Golf Clubhouse
Ice Arena Mfg. Products
Office Space
RetaillFast Food
Office Space
Cold Storage Facility
Golf Course Sales Office
} New building construction completed within the past twelve months.
- 19 -
Description
of Construction
Under Construction
Store Expansion
Millwork Expansion
New Construction
New Construction
New Construction
New Construction
New Construction
New Construction
New Construction
New Construction
New Construction
New Construction
New Construction
New Construction
..~,~-...............~,._--_._.......__...~_..~-.......~
Residential Development
There are approximately 4,197 single-family homes and 892 multifamily units located within the
City. In addition, there have been 173 single-family homes and 6 multifamily units constructed
within the past twelve months.
Building Permits
CommerciaV
Industrial Residential Total Total
Number of Number Number Permit
Year of Permits of Permits of Permits Valuation
1995
(as of 12/31/95) 44 68 112 $ 38,555,777
1994 38 517 555 34,522,273
1993 26 420 446 25,653,479
1992 10 301 311 16,525,726
1991 24 270 294 8,889,163
1990 22 292 314 11,123,419
1989 12 339 351 14,056,739
The status of residential subdivisions constructed or planned within the past three years is as
follows:
Subdivision Name
Busse 1st Addition
Cardinal Ridge 1 st Addition
Carriage Hills 2nd Addition
Carriage Hills 3rd Addition
Forest Oaks 1 st Addition
Jefferson's 2nd Addition
Hidden View
West Edge Estates
West Edge Estates 1 st Addition
Westbury Ponds
W oodridge Estates 2nd Addition
Wilds
Waterfront Passage Addition
Raspberry Ridge 2nd Addition
Sterling North
Sterling South
Villas at the Wilds
Cardinal Ridge 2nd Addition
Cardinal Ridge 3rd Addition
Carriage Hills 4th Addition
Knob Hill
Preserve at the Wilds
Westbury Ponds 1 st Addition
Westbury Ponds 2nd Addition
Wilderness Ponds
Windsong on the Lake 2nd Add.
W oodridge Estates 3rd Addition
Number of
Dwellinfs
Year
2 Lots
64 Lots
54 Lots
52 Lots
8 Lots
2 Lots
15 Lots
24 Lots
12 Lots
36 Lots
68 Lots
73 Lots
6 Lots
27 Lots
18 Lots
88 Lots
7 Lots
64 Lots
39 Lots
41 Lots
49 Lots
9 Lots
36 Lots
7 Lots
49 Lots
7 Lots
35 Lots
1993
1993
1993
1993
1993
1993
1993
1993
1993
1993
1993
1993
1993
1994
1994
1994
1994
1994
1995
1995
1995
1995
1995
1995
1995
1995
1995
- 20 -
Status
50% Completed
59% Completed
85% Completed
37% Completed
88% Completed
50% Completed
100% Completed
100% Completed
100% Completed
50% Completed
79% Completed
36% Completed
67% Completed
41 % Completed
78% Completed
91 % Completed
43% Completed
56% Completed
31 % Completed
80% Completed
6% Completed
0% Completed
50% Completed
43% Completed
0% Completed
15% Completed
0% Completed
In addition to the above, there are plans for the following additions:
Pendine:
Cardinal Ridge 4th Addition
Pheasant Meadows
Westbury Ponds 1st & 2nd,Addition
Total Lots Pending
# of Lots
35
50
12
97
Industrial Park
There is a 240-acre industrial park located within Prior Lake that has the potential to house 40 to 50
enterprises. At the present time there are nine enterprises occupying the park, the larger of which
include Scott Rice Telephone and Prior Lake Machine.
Major Employers
CommerciaVIndustrial
Product/Service
Number of
Employees
Mystic Lake Casino
ISD #0719, Prior Lake
Country Market
City of Prior Lake}
Edina Realty
Prior Lake State Bank
Radermacher's Super Value
Norex Corp.
Scott Rice Telephone2
Prior Lake Machine2
Keyland Homes
Entertainment
Public Education
Grocery
Government
Real Estate
Financial Services
Grocery Store
Computer Sales
Communications
Machine Parts
Millwork Company
4,000
481
132
63
47
43
32
32
27
26
20
Ten Largest Taxpayers
Percent of
1995-1996 Real Property
Estimated 1995-1996 To Net
Market Net Tax Tax Capacity
Name Service Value Capacity ($8.495.201 )t
MN Valley Electric Co-op. Electric Utility $ 2,110,700 $ 117,254 1.38%
Northern State Power Co. Utility 1,943,100 103,260 1.22
Minnesota Gas Company Gas Utility 1,928,100 88,692 1.04
Individual Industrial 1,607,000 72,322 .85
Midway National Bank Banking 1,700,000 57,800 .68
Individual Industrial 1,249,800 55,891 .66
Prior Lake Development LP Industrial 1,419,000 42,516 .50
Priordale Mall Investors Industrial 899,000 39,754 .47
First National Bank of Shakopee Banking 650,000 39,151 .46
SRMM Investments Apartment 1,102,500 37,485 .44
} Constitutes 56 full-time and 7 part-time employees.
2 Located within the industrial park.
t Before the tax increment and fiscal disparity adjustments.
- 21 -
MINNESOTA VALUATIONS. TAX CREDITS AND LEVY LIMITATIONS
Market Value
According to Minnesota Statutes, Chapter 273, all real property subject to taxation is to be ap-
praised at maximum intervals of four years. All real property becoming taxable in any year is listed
at its estimated market value on January 2 of that year. The estimated market value is the County
Assessor's appraisal of the worth of the property.
Indicated Market Value
The Minnesota Department of Revenue conducts the Real Estate Assessment/Sales Ratio Study to
accomplish equalization of property valuation in the State of Minnesota and to determine the prob-
able selling price of a property. The study is a three-year average of sale prices as related to the lat-
est assessor's estimated market value. The indicated market value is determined by dividing the
estimated market value by the Assessment/Sales Ratio for the city as determined by the Department
of Revenue.
Net Tax Capacity
Starting with taxes payable in 1990, net tax capacity replaced gross tax capacity as the measure of
taxable value. To determine net tax capacity, the estimated market value is multiplied by a factor
called "class rate," that varies depending on the use of the property. Net tax capacity differs from
gross tax capacity primarily in setting lower values for homesteaded residential and agricultural
properties. Net tax capacity is multiplied by the "local tax rate" to determine taxes payable.
Tax Cycle
Minnesota local government ad valorem property taxes are extended and collected by the various
counties within the state. The process begins in the fall of every year with the certification, to the
county auditor, of all local taxing districts' property tax levies. Local tax rates are calculated by di-
viding each taxing district's levy by its net tax capacity. One percentage point of local tax rate rep-
resents one dollar of tax per $100 net tax capacity. A list of taxes due is then prepared by the
county auditor and turned over to the county treasurer on or before the first Monday in January.
The county treasurer is responsible for collecting all property taxes within the county. Real estate
tax statements are to be mailed out no later than January 31 and personal property tax statements no
later than February 15. The due dates for payment of real property taxes are one-half on or before
May 15 and one-half on or before October 15. Personal property taxes become due one-half on or
before February 28 and one-half on or before June 30.
Following each settlement (March 5, June 5, and November 5 of each year), the county treasurer
must redistribute property tax revenues to the local taxing districts in proportion to their tax
capacity ratios. Delinquent property taxes are penalized at various rates depending on the type of
property and the length of delinquency.
Tax Credits
Prior to 1990, taxes on homestead residential and agricultural property were reduced by a direct
subsidy to the taxpayer. Beginning in 1990, the homestead credit has been eliminated. The state
subsidy is now accomplished through lower class rates to homesteaded classifications of property
and increased state aids paid directly to local taxing districts. This new system is intended to have
generally the same impact as the former homestead credit system.
- 22 -
Tax Levies for General Obligation Bonds
(Minnesota Statutes. Q475.61)
The governing body of any municipality issuing general obligations shall, prior to delivery of the
obligations, levy by resolution a direct general ad valorem tax upon all taxable property in the mu-
nicipality to be spread upon the tax rolls for each year of the term of the obligations. The tax levies
for all years shall be specified and such that if collected in full they, together with estimated collec-
tions of special assessments and other revenues pledged for the payment of said obligations, will
produce at least five percent in excess of the amount needed to meet when due the principal and in-
terest payments on the obligations. Such resolution shall irrevocably appropriate the taxes so levied
and any special assessments or other revenues so pledged to the municipality's debt service fund or
a special debt service fund or account created for the payment of one or more issues of obligations.
The governing body may, at its discretion, at any time after the obligation have been authorized,
adopt a resolution levying only a portion of such taxes, to be filed, assessed, extended, collected
and remitted as hereinafter provided, and the amount or amounts therein levied shall be credited
. against the tax required to be levied prior to delivery of the obligations.
The recording officer of the municipality shall file in the office of the county auditor of each county
in which any part of the municipality is located a certified copy of the resolution, together with full
information regarding the obligations for which the tax is levied. No further action by the munici-
pality is required to authorize the extension, assessment and collection of the tax, but the munici-
pality's liability on the obligations is not limited thereto and its governing body shall levy and cause
to be extended, assessed and collected any additional taxes found necessary for full payment of the
principal and interest. The auditor shall annually assess and extend upon the tax rolls the amount
specified for such year in the resolution, unless the amount has been reduced as authorized below
or, if the municipality is located in more than one county, the portion thereof that bears the same
ratio to the whole amount as the tax capacity value of taxable property in that part of the mu-
nicipality located in his county bears to the tax capacity value of all taxable property in the
municipality .
Tax levies so made and filed shall be irrevocable, except that if the governing body in any year
makes an irrevocable appropriation to the debt service fund of moneys actually on hand or if there
is on hand any excess amount in the debt service fund, the recording officer may certify to the
county auditor the fact and amount thereof and the auditor shall reduce by the amount so certified
the amount otherwise to be included in the rolls next thereafter prepared.
All such taxes shall be collected and remitted to the municipality by the county treasurer as other
taxes are collected and remitted, and shall be used only for payment of the obligations on account
of that levied or to repay advances from other funds used for such payments, except that any sur-
plus remaining in the debt service fund when the obligations and interest thereon are paid may be
appropriated to any other general purpose by the municipality.
Levy Limitations
In the past local governments in the State of Minnesota have had their ability to levy property taxes
restricted by statutory limitations. As scheduled these limitations have expired for taxes payable in
1993, but may be reinstated in the future. These limitations had restricted Minnesota cities with
populations over 2,500, school districts, and counties in their annual levy to 3% of the previous
year's levy limit base with adjustments for increases of households or population. This levy limit
did not apply to levies made for "special purposes," such as bonded indebtedness, unfunded
accrued pension liability and matching grants. In addition, the levy limit for counties did not
include levies for income maintenance programs and social service programs.
- 23 -
Class Rate
The factors (class rates) for converting estimated market value to net tax capacity represent a basic
element of the State's property tax relief system and are therefore subject to annual revisions by the
State Legislature. The following is a partial summary of these factors:
Property Tax Classifications
1992/1993 1993/1994 1994/1995 1995/1996
Class Rate Class Rate Class Rate Class Rate
Type Q.f Property f1:Im!1 Percent f1:Im!1 f1:Im!1
Residential Homestead
Under $72,000 1.000% 1.000% 1.000% 1.000%
Over $ 72,00 1 2.000 2.000 2.000 2.000
CommerciallIndustrial Public Utility
Under $100,000 3.000 3.000 3.000 3.000
Over $100,001 4.700 4.600 4.600 4.600
A~cultural Property
Homestead:
House, Garage & 1 Acre
Under $72,000 1.000 1.000 1.000 1.000
Over $72,00 1 2.000 2.000 2.000 2.000
Remainder to 320 Acres
Under $115,000 .450 .450 .450 .450
Over $115,001 1.300 1.000 1.000 1.000
Over 320 Acres
Under $115,000 .450 .450 .450 .450
Over $115,001 1.600 1.500 1.500 1.500
Non-Homestead:
House, Garage, 1 Acre 2.500 2.300 2.300 2.300
Landffimberland 1.600 1.500 1.500 1.500
Residential Non-Homestead
Apartments:
1 to 3 units 2.500 2.300 2.300 2.300
4 or more units 3.400 3.400 3.400 3.400
Type I and II, 5+ stories 3.400 3.400 3.400 3.400
Selected small cities with 4 or more 2.300
uni ts
Seasonal Recreational
Non-Commercial:
Under $72,000 2.000 2.000 2.000 2.000
Over $72,001 2.500 2.500 2.500 2.500
Commercial (i.e. resorts) 2.300 2.300 2.300 2.300
V acant Land * (See Footnote) * (See Footnote) * (See Footnote) * (See Footnote)
* (All vacant land is reclassified to highest and best use pursuant to local zoning ordinance).
- 24 -
THE CITY OF PRIOR LAKE
ECONOMIC AND FINANCIAL INFORMATION
Real Property
Personal Property
(Tax Increment Deduction)
Fiscal Disparities.
(Contribution to Pool)
Distribution from Pool
Total Valuation
Valuations
Estimated
Market Value
1995-1996
$ 536,958,900
6,257,900
Net Tax
Capacity
1995-1996
$8,495,201
287,862
( 76,066)
( 379,153)
1.163.967
$9.491.811
$ 543.216,800
Market Value After Assessment/Sales Ratio
The Minnesota Department of Revenue conducts the Real Estate Assessment/Sales Ratio Study to
accomplish equalization of property valuations in the State and to determine the probable selling
price of a property. The Study is a three-year average of sale prices as related to the latest asses-
sor's market value. In Prior Lake the latest (1994) assessment sales ratio is 82.5% meaning the
County Auditor's recorded real property market value of $536,958,900 is 82.5% of the probable
resale market value. We have made the following computations in deriving the market value figure
used in the "Summary of Debt and Debt Statistics."
$ 536,958,900
82.5%
= $ 650,859,273
+
6.257.900
= $ 657.117,173
County Auditor's recorded real property market value.
Latest Composite Ratio from the Real Estate
Assessment/Sales Ratio Study of the Minnesota Department
of Revenue.
Indicated market value of real property.
Personal property.
Indicated market value of real and personal property used in
"Summary of Debt and Debt Statistics."
· Fiscal Di$parities Law
The 1971 Legislature enacted a "fiscal disparities law" which allows all the Twin City Metropolitan Area
Municipalities to share in commerciaVindustrial growth, regardless of where the growth occurred geographically.
Forty percent (40%) of every metropolitan municipality's growth in commerciaVindustrial assessed valuation is
pooled, then redistributed to all municipalities on the basis of population and per capita valuation after the tax
increment and fiscal disparity adjustments.
- 25 -
The Assessment/Sales Ratio for the City of Prior Lake over the past six years have been as
follows:
1994
1993
1992
1991
1990
1989
82.5%
82.4
84.7
87.1
85.6
84.6
Valuation Trends (Real and Personal Property)
Net Tax Net Tax
Capacity Capacity
Levy Yearl Estimated Before Fiscal After Fiscal
Collection Year Market Value Disvarities t Disparities tt
1995/1996 $ 543,216,800 $ 8,783,063 $ 9,491,811
1994/1995 470,730,200 7,460,535 8,120,280
1993/1994 429,291,100 6,732,031 7,605,330
1992/1993 410,883,900 6,550,066 7,559,705
1991/1992 390,094,100 6,533,845 7,589,193
1990/1991 373,981,900 6,655,988 7,597,611
1989/1990 353,259,200 6,397,500 7,264,095
Breakdown of Valuations
1995-1996 Estimated Market Value, Real and Personal Property:
Residential Homestead
Agricultural
Public Utility
Commercial & Industrial
Non-Homestead Residential
Seasonal Recreational
Personal Property
$ 459,832,800
9,860,500
818,700
22,456,000
36,638,600
7,352,300
6.257.900
$ 543,216,800
84.65%
1.82
.15
4.13
6.75
1.35
1.15
Total
100.00%
1995-1996 Net Tax Capacity, Real and Personal Property (before the tax increment andfiscal dis-
parity adjustments):
Residential Homestead
Agricultural
Public Utility
Commercial & Industrial
Non-Homestead Residential
Seasonal Recreational
Personal Property
$6,388,386
119,711
37,660
898,373
896,219
154,852
287.862
$8,783,063
72.74%
1.36
.43
10.23
10.20
1.76
3.28
Total
100.00%
t Also before the tax increment deduction.
t t Also after the tax increment deduction.
- 26 -
Net Tax Capacity
1991192 1992193 1993/94 1994/95 1995196
Net Tax Net Tax Net Tax Net Tax Net Tax
Levy Yearl Capacity Capacity Capacity Capacity Capacity
Collection Year Rates Rates Rates Rates Rates
County of Scott 41.839% 45.564% 48.475% 50.217% 45.775%
City of Prior Lake 27.703 29.656 36.509 36.707 33.962
ISD #0719, Prior Lake 49.361 50.116 57.925 61.810 52.472
ISD #0720, Shakopee 66.508 61.499 65.540 70.685 64.535
Scott County HRA .207 .280 .785 .721 .698
Light Rail Transit Authority .091 .289 .389 .268 .247
Mosquito Abatement .449 .347 .411 .405 .244
Regional Transit District 1.384 3.004 3.465 3.612 2.845
Metropolitan Council .661 .435 .495 .577 .718
Prior Lake/Spring Lake Wtrshd. .803 2.215 1.400 2.195 1.591
Levy Yearl
Collection Year
Tax Levies and Collections
19911 19921 19931 19941
1992 1993 1994 1995
$2,830,080 $3,053,705' $ 2,794,465 $3,125,210
( 764,086) ( 850,183) ( 0) ( 0)
( 4.658) ( 5.287) ( 10.406) ( 2.718)
$2,061,336 $2,198,235 $2,784,059 $3,122,492
$2,008,591 $2,133,829 $2,743,611 $3,075,179
97.44% 97.07% 98.55% 98.48%
$ 52,745 $ 64,406 $ 40,448 $ 47,313
( 29,472) ( 30,924) ( 26,027) --------
Original Gross Tax Levy
Property Tax Credits.
Levy Adjustments
Net Tax Levy
Amount Collected during
Collection Year
Percent of Net Tax Levy
Collected
Amount Delinquent at end
of Collection Year
Delinquencies Collected
as of 12/31/94
Delinquencies
Abated or Cancelled
as of 12/31/94
(
4.655) (
5.504) (
748)
Total Delinquencies $
outstanding as of 12/31/94 $ 18,618 27,978 $ 13,673 $ 47,313
Percent of Net Tax Levy
Collected During Collection Year 99.10% 98.73% 99.51 % 98.48%
Note: 1995/1996 Original Gross Tax Levy $3,237,700
1995/1996 Net Tax Levy 2,812,998
· Property ,tax credits are aids provided by the State of Minnesota and paid directly to the City.
- 27 -
CITY OF PRIOR LAKE, MINNESOTA
GENERAL OBliGATION DEBT
as 0 Ma 2 1996 Plw This Issue
Purpose:
G.O. G.O. G.O. G.O. G.O. G.O.
Sanitary Improvement Improvement Parle Improvement Improvement
Sewer Bonds Bonds Bonds Bonds Bonds Bonds
of of of of of of 1977
1969 1973 1973 1973 1977 Series B
Dated: 1010 1/69 07/Oln3 IOIOIn3 12101n3 031OIn7 06I0In7
Original Amount: $180,000 $2,122,000 $575,000 $280,000 $1,900,000 $1,400,000
Maturity: I-Oct I-Jul I-Oct I-Dee I-Mar I-Jun
Interest Rates: 6. 9().. 7.00% 5.30-5.50% 5.40-5.50% 5.50-5.75% 5.20-5.75% 5.25-5.70%
1996 $10,000 $105,000 $35,000 $10,000 $0 $100,000 1996
1997 10,000 105,000 35,000 10,000 160,000 11 0,000 1997
1998 10,000 105,000 35,000 10,000 0 110,000 1998
1999 0 0 0 15,000 0 0 1999
2000 0 0 0 15,000 0 0 2000
2001 0 0 0 15,000 0 0 2001
2002 0 0 0 15,000 0 0 2002
2003 0 0 0 15,000 0 0 2003
2004 0 0 0 0 0 0 2004
2005 0 0 0 0 0 0 2005
2006 0 0 0 0 0 0 2006
2007 0 0 0 0 0 0 2007
2008 0 0 0 0 0 0 2008
2009 0 0 0 0 0 0 2009
2010 0 0 0 0 0 0 2010
2011 0 0 0 0 0 0 2011
2012 0 0 0 0 0 0 2012
2013 0 0 0 0 0 0 2013
2014 0 0 0 0 0 0 2014
$30,000 $315,000 $105,000 $105,000 $160,000 $320,000
(1) (2) (2) (3) (2) (2)
Purpose:
G.O. G.O. G.O. G.O. G.O. G.O.
Refunding Improvement Improvement Tar Improvement Improllement
Parle Reftuuling Bonds Increment Bonds Bonds
Bonds Bonds of Bonds of of
of 1977 of 1977 1978 of 1985 1987 1988
Dated: 09lOln7 09/Oln7 051OIn8 10/01/85 09101/87 06101/88
Original Amount: $280,000 $2,425,000 $220,000 $150,000 $225,000 $390,000
Maturity: I-Jul I-Sep I-May I-Dee I-Dee I-Dee
Interest Rates: 5.10-5.50% 5.10-5.50% 5.45-5.80% 7.50-9.00% 6.00-7.10% 5.90-7.50%
1996 $15,000 $100,000 $0 $15,000 $25,000 $35,000 1996
1997 15,000 0 10,000 20,000 30,000 35,000 1997
1998 15,000 0 10,000 20,000 0 35,000 1998
1999 15,000 0 0 0 0 35,000 1999
2000 15,000 0 0 0 0 20,000 2000
2001 0 0 0 0 0 20,000 2001
2002 0 0 0 0 0 0 2002
2003 0 0 0 0 0 0 2003
2004 0 0 0 0 0 0 2004
2005 0 0 0 0 0 0 2005
2006 0 0 0 0 0 0 2006
2007 0 0 0 0 0 0 2007
2008 0 0 0 0 0 0 2008
2009 0 0 0 0 0 0 2009
2010 0 0 0 0 0 0 2010
2011 0 0 0 0 0 0 2011
2012 0 0 0 0 0 0 2012
2013 0 0 0 0 0 0 2013
2014 0 0 0 0 0 0 2014
$75,000 $100,000 $20,000 $55.000 $55,000 $180,000
(3)(6) (2) (2) (8) (2) (2)
- 28 -
CITY OF PRIOR LAKE, MINNESOTA
GENERAL OBUGATION DEBT
tIS 0 M 2 1996 Plus This IlIue
Purpose:
G.O. G.O. G.O. G.O. G.O.
Impro~ment Adwuace Refunding Crossol'er Crosso~r
Bonds Refunding Bonds Refunding Refunding
of Bonds of Bonds Bonds
1991 of 1992 1992 of 1992A of 1992B
Dated: 03/01/91 02101/92 10/01/92 10/01/92 10101/92
Original Amount: $525,000 $4,265,000 $425,000 $175,000 $860,000
Maturity: I-Dee I-Dee I-Jul I-Aug I-Dee
Interest Rates: 4.90-6.80% 3.00-6.00% 3.20-4.75% 3.35-4.60% 3.35-4.60%
1996 $45.000 $310,000 $55,000 $30,000 $150,000 1996
1997 45,000 310,000 50,000 30,000 150,000 1997
1998 45.000 260,000 60,000 30,000 150.000 1998
1999 45,000 265,000 50,000 35,000 150,000 1999
2000 45,000 265,000 35,000 0 0 2000
2001 15,000 275,000 0 0 0 2001
2002 15,000 280,000 0 0 0 2002
2003 15,000 290,000 0 0 0 2003
2004 15,000 295,000 0 0 0 2004
2005 15,000 205,000 0 0 0 2005
2006 10,000 140.000 0 0 0 2006
2007 10,000 130,000 0 0 0 2007
2008 10,000 0 0 0 0 2008
2009 0 0 0 0 0 2009
2010 0 0 0 0 0 2010
2011 0 0 0 0 0 2011
2012 0 0 0 0 0 2012
2013 0 0 0 0 0 2013
2014 0 0 0 0 0 2014
$330,000 $3,025,000 $250,000 $125,000 $600,000
(2) (2)(4)(1l) (2X 12) (3) (7) (2XJ3)
Purpose:
General G.O. G.O. G.O. G.O.
Obligation I Equipment Improl'elMnt FiTe SUltiDn Impro~lMnt
RefU1Uling Cettijieate. Bonds Bonds Bonds
Bonds i of of of of
of 1993 ! 1993 1993 1993 1994
Dated: I 03/01/93 03/01/93 07/01/93 08/01/93 08/01/94
! i
Original Amount: ! $1, I 00,000 I $500.000 $3,000,000 $2.100,000 $800,000
Maturity: ! I-Oct I-Apr i I-Dee I-Dee I-Dee I-Dee
i 3.30-4.60% I 3.35-4.60% 4.25-4.375% 3.00-5.50% 3.80-5.20%
Interest Rates: i 3.40-4.60%1
! i
1996 ! $85,000 $01 $130,000 $230,000 $65,000 $80,000 1996
I
1997 I SO.OOO 120,000 I 135,000 245,000 70,000 SO,OOO 1997
1998 I 120,000 50,000 j 0 260.000 70,000 80.000 1998
1999 I 0 o! 0 275,000 75,000 80,000 1999
I
2000 0 01 0 295,000 75,000 85,000 2000
2001 ! 0 01 0 310,000 80,000 85.000 2001
2002 I 0 01 0 335,000 85,000 85,000 2002
I
2003 0 OJ 0 370,000 95,000 85,000 2003
2004 I 0 oj 0 50,000 100,000 85,000 2004
2005 I 0 O! 0 50,000 105,000 0 2005
2006 I 0 01 0 50,000 110,000 0 2006
2007 0 oj 0 50,000 120.000 0 2007
2008 i 0 01 0 50,000 125,000 0 2008
I
2009 I 0 oj 0 0 135,000 0 2009
2010 0 oj 0 0 145,000 0 2010
2011 0 01 0 0 155,000 0 2011
2012 I 0 OJ 0 0 175,000 0 2012
2013 0 Oi 0 0 190,000 0 2013
I
2014 0 01 0 0 0 0 2014
! $455,000 1 $265,000 $2,570,000 $1,975,000 $745,000
L.._".._."_____"_...."".."__"".Jtl~lj (3) (2) (3) (2)
29
CITY OF PRIOR LAKE, MINNESOTA
GENERAL OBUGATION DEBT
as 0 M 2 1996 Plus This I"ue
G.O. G.O. G.O. Water G.O.
Improvement Equipment and Sewer Improvement
Bonds CertiJkatel Revenue Bonds
of of Bonds of
1995 1995 of 1995 1996
This I"ue
Dated: 08/01/95 09/01/95 11/01/95 06/01/96
Original Amount: $950,000 $400,000 $2,200,000 $935,000
Maturity: I-Dee I-Dee I-Dee I-Dee
Interest Rates: 4.00-4.95% 4.40-4.80% 4.40-5.65% --------- TOTALS:
1996 $80,000 $90,000 $55,000 $0 $1,855,000 1996
1997 80,000 95,000 60,000 75,000 2,165,000 1997
1998 85,000 105,000 75,000 75,000 1,815,000 1998
1999 85,000 110,000 80,000 80,000 1,395,000 1999
2000 90,000 0 80,000 85,000 1,105,000 2000
2001 95.000 0 90,000 90,000 1,075,000 2001
2002 100,000 0 90,000 95,000 1,100,000 2002
2003 105,000 0 95,000 100,000 1,170.000 2003
2004 11 0,000 0 105,000 105,000 865,000 2004
2005 120,000 0 110,000 11 0,000 715,000 2005
2006 0 0 115.000 120,000 545,000 2006
2007 0 0 120,000 0 430,000 2007
2008 0 0 130,000 0 315,000 2008
2009 0 0 140,000 0 275,000 2009
2010 0 0 150,000 0 295,000 2010
2011 0 0 160,000 0 315,000 2011
2012 0 0 170,000 0 345,000 2012
2013 0 0 180.000 0 370,000 2013
2014 0 0 195,000 0 195,000 2014
$950,000 $400,000 $2,200,000 $935,000 $16,345,000
(2) (3) (9)( 10) (2)
Le,,: ( 30.(00) (1)
Net Debt: $16,315.000
( 1 ) These bonds were assumed by the Metropolitan Waste Control Commi.,.,ion and therefore are no longer considered part of the City debt.
(2) These bond, are payable primarily from .'pecial assessment, and are additioTUllly secured by ad valorem taxes on all taxable property within
the City and witlwut limitation of amount.
(3) These bond, are payable solely from ad valorem taxe.' on all taxable property within the City and witlwut limitation of amount.
(4) These bonds are payable primarily from net revenues of the municipal water system and are additioTUllly secured by ad valorem taxes on all
taxable property within the City and witlwut limitation of amount.
(5) Thi., issue refunded $515.000 of the $2.370.000 G.O. Refunding Bonds of 1976. dIlted October 1.1976 (Maturitie.d994-1998);
and $560.000 of the $2.025,000 G.O.lmprovement Bonds of 1978, Serie.' A. dilled October 1. 1978 (Maturities 1993-1999).
(6) These bond, refunded in advance of call dIlte the $280,000 General Obligation Park Bond, of 1976, dIlted February 1. 1976. The bonds were
calledfor redemption on June 1. 1986. at a price of par plus accraed intere.,t.
(7) This ;.,sue cro.'.,over refunded $175.000 of the $295,000 G.O. Fire Hall BontL, of 1984. cUlted April 1. 1984. which were called for
redemption on August 1.1993.
(8) These bond, are payable primarily from increases in asses.,ed valUiltionfrom Tax Increment FiTUlncing Di.'trict No.1 and are additioTUllly
.,ecured by ad valorem taxes on all taxable property within the City and witlwut limitation (if amount.
(9) The.,e bonds are payable primarily from net revenue.' of the municipal water and sewer sy.'tem., and are additioTUllly secured by ad valorem
taxes on all taxable property within the City and witlwut limitation of amount.
(10) The.'e bond, have been additioTUllly secured by FSA FiTUlncial Security A,surance.
(11) Th;., issue refunded in advance of call cUlte the (i) $3.450.000 General Obligation Improvement Bond, of 1986, cUlted February 1. 19M.
which were calledfor redemption on December 1.1994. at par plu., accrued interest; and (ii) $1.500.000 General Obligation Water
Revenue Bond, of 1987. cUlted October 1.1987, which will be calledfor redemption on December 1.1995 at par plus accrued intere.'t.
Plea.,e see "Refunded Bond I.,.,ues" in thi.' section for additioTUlI information.
(12) This is.,ue refunded $415.000 of the $1.425,000 G.O Improvement Bond, of 1979 cUlted July I. 1979.
(13) The.,e bond, crossover refunded $825.000 of the $1.175.000 G.O.lmprovement Bond, of 1989. dated August 1. 1989. which were
calledfor redemption on December 1,1993. @100%.
- 30 -
Overlapping Debt
1996
1996 Net Tax
Net Tax Capac.~ty Percentage City's
Capacity Value Applicable Share
Issuer Valuer 1) ~(l) in City Net Debt of Debt
County of Scott $ 49,634,195 $9,491,SII 19.12% $ 10,265,000(2) $ 1,962,668
ISD #0719,
Prior Lake 14,689,976 7,924,441 53.94 11,466,661 (3) 6,185,117
ISD #0720,
Shakopee 13,261,176 215,513 1.63 11,057,484(4) 180,237
Metropolitan
Council t 1,907,286,072 9,491,811 .50 21,952,559(5) 109,763
Regional Transit
Boardt 1,728,983,006 9,491,811 .55 63,805,705(6) 350.931
Total Overlapping Debt: $ 8,788,716
Overlapping Debt Future Financing
County of Scott
The County does not anticipate the issuance of
any additional bonding within the next twelve
months.
ISD #0719, Prior Lake
The District does not anticipate the issuance of
any additional bonding within the next five
months.
ISD #0720, Shakopee
The District does not anticipate the issuance of
any additional bonding within the next twelve
months.
Metropolitan Council
The Council is anticipating the issuance of
approximately 16 million in wastewater bonds
and 3 million in parks bonds in June of 1996.
The Board is anticipating the issuance of
14 million in transit bonds in June of 1996.
Metropolitan Transit District
(1) Taxable Net Tax Capacity values are after the tax increment and fiscal. disparity adjustments.
(2) Scott County did not report any sinking funds as of December 31, 1995.
(3) ISD #0719, Prior Lake, reported $278,339 in sinking funds as of June 30, 1995.
(4) ISD #0720, Shakopee, reported $164,426 in sinking funds as of April 30, 1996.
(5) Deductions: (A) $245,060,000 Metropolitan Waste Control Commission Debt as of March 31, 1996.
(B) $37,985,000 Metropolitan Council Sports Facility Revenue Bonds as of March 31, 1996.
Note 1: Debt Service on A above is 100% self supported from revenues of the Metro Sanitary Sewer System,
although the bonds are full faith and credit bonds. Sinking funds of $23,124,862 and escrow account
funds of $77,703,000 have not been deducted because said funds are attributable to A above. Fund
balances are as of March 31, 1996.
Note 2: Debt Service on B (Metropolitan Council, Minneapolis-St. Paul Area Sports Facility Revenue Bonds) is
not included in the above debt as the bonds are supported by revenues generated from the sports facility
although the bonds are full faith and credit bonds.
Note 3: The only debt supported solely by taxes as of March 31, 1996 is $23,465,000 with sinking funds of
$1,512,441 as of March 31, 1996.
t The Metropolitan Council and Metropolitan Transit District Tax Capacities for 1996 are not available at this time, tax
capacities above are for the 1995 tax year.
(6) The Metropolitan Transit District reported sinking funds of $3,754,295 as of March 31, 1996.
- 31 -
Cash and Investment Fund Balances as of May 1. 1996
(unaudited)
Fund
General Fund
Sewer and Water Funds
Storm Water Fund
Capital Park Fund
Severance Compensation Fund
Tax Increment Fund
Equipment Acquisition Fund
Building Fund
Construction Fund
Trunk Reserve Fund
Collector Street Fund
Debt Service Fund
Agency Fund
Total Fund Balances
$1,120,280
1,193,283
138,358
332,782
102,747
( 16,342)
214,370
1,379,716
777,806
1,144,772
784,916
3,699,450
308.500
$11, 180,638
- 32 -
SUMMARY OF DEBT AND DEBT STATISTICS
General Obligation Debt
Bonds secured primarily by sewer revenues
Bonds secured primarily by special assessments (includes this issue)
Bonds secured primarily by water revenues
Bonds secured primarily by water and sewer revenues
Bonds secured primarily by tax increments
Bonds secured solely by ad valorem taxes
Subtotal
$ 30,000
9,870,000
1,245,000
2,200,000
55,000
2.945.000
$16,345,000
( 30.000)
$16,315,000
( 3,699,450)
( 1.193.283)
$11,422,267
8.788.716
$20,210.983
Less: Bonds secured by sewer revenues}
Total General Obligation Direct Debt
Less: Debt Service Fund
Sewer and VVmerFund
Net Direct General Obligation Debt
Add City's share of net overlapping debt
Total Net Direct and Net Overlapping Debt
Facts for Ratio Computations
1995-1996 Indicated Market Value (real and personal property)
1995-1996 Net Tax Capacity (real and personal property, after
the tax increment and fiscal disparity adjustments)
Population (01/01/96 Estimate)
$657,117,173
$9,491,811
13,700
Debt Ratios
Net Direct
Net Net and Net
Direct Direct Overlapping Overlapping
Debt Debt Debt Debt
To Indicated Market Value 2.48 % 1.74% 1.34% 3.08%
Per Capita $1,191 $834 $642 $1,476
Per Capita Adjusted2 $1,064 $745 $574 $1,319
} These bonds were assumed by the Metropolitan Waste Control Commission and therefore are no longer
considered part of the City's debt.
2 The City's tax base is .43% public utility, 10.23% commercial & industrial, which has been deducted.
- 33 -
[Appendix ~ to Official Statement]
FORM OF
CONTINUING DISCLOSURE UNDERTAKING
This Continuing Disclosure Undertaking (the "Disclosure
Undertaking") is executed and delivered by the City of Prior
Lake, Minnesota (the "Issuer"), in connection with the issuance
of $935,000 General Obligation Improvement Bonds of 1996 (the
"Bonds"). The Bonds are being issued pursuant to a Resolution
adopted May 29, 1996 (the "Resolution"). Pursuant to the
Resolution and this Undertaking, the Issuer covenants and agrees
as follows:
SECTION 1. Puroose of the Disclosure Undertakina. This
Disclosure Undertaking is being executed and delivered by the
Issuer for the benefit of the Owners and in order to assist the
Participating Underwriters in complying with SEC Rule
15c2-12 (b) (5) .
SECTION 2. Definitions. In addition to the definitions
set forth in the Resolution, which apply to any capitalized term
used in this Disclosure Undertaking unless otherwise defined in
this Section, the following capitalized terms shall have the
following meanings:
"Annual Report" shall mean any annual financial information
provided by the Issuer pursuant to, and as described in, Sections
3 and 4 of this Disclosure Undertaking.
"Audited Financial Statements" shall mean the financial
statements of the Issuer audited annually by an independent
certified public accounting firm,' prepared pursuant to generally
accepted accounting principles promulgated by the Financial
Accounting Standards Board, modified by governmental accounting
standards promulgated by the Government Accounting Standards
Board.
"Dissemination Agent" shall mean such party from time to
time designated in writing by the Issuer to act as information
dissemination agent and which has filed with the Issuer a written
acceptance of such designation.
"Fiscal Year" shall be the fiscal year of the Issuer.
"Governing Body" shall, with respect to the Bonds, have the
meaning given that term in Minnesota Statutes, Section 475.51,
Subdivision 9.
319480.1
- 34 -
"MSRB" shall mean the Municipal Securities Rulemaking Board.
"National Repository" shall mean any Nationally Recognized
Municipal Securities Information Repository for purposes of the
Rule. Currently, the following are National Repositories:
Bloomberg Municipal Repository
P.O. Box 840
Princeton, NJ 08542-0840
Phone: (609) 279-3200
Fax: (609) 279-5962
Thomson Municipal Services
395 Hudson Street - Third Floor
New York, NY 10014
Attn: Municipal Disclosure
Phone: (800) 689-8466
Fax: ( 212 ) 989 - 2 078
Disclosure, Inc.
5161 River Road
Bethesda, MD 20816
Attn: Document Acquisitions/Municipal Securities
Phone: (301) 215-6015
Fax: (301) 718-2329
Kenny Information Systems Inc.
65 Broadway - 16th Floor
New York, NY 10006-2511
Attn: Repository Services
Phone: (212) 770-4595
Fax: (212) 797-7994
Moody's NRMSIR
Public Finance Information Center
99 Church Street
New York, NY 10007
Phone: (800) 339-6306
Fax: (212) 553-1460
R.R. Donnelly Financial
Municipal Securities Disclosure Archive
559 Main Street
Hudson, MA 01749
Phone: (800) 580-3670
Fax: (508) 562-1969
"Occurrence(s)" shall mean any of the events listed in
Section 5.A. of this Disclosure Undertaking.
-"-'
319480.1
- 35 -
If'
"Official Statement" shall be the Official Statement or
Preliminary Official Statement dated , 1996,
prepared in connection with the Bonds.
"Owners" shall mean the registered holders and, if not the
same, the beneficial owners of any Bonds.
"Participating Underwriter" shall mean any of the original
underwriters of the Bonds required to comply with the Rule in
connection with offering of the Bonds.
"Repository" shall mean each National Reposi.tory and each
State Depository.
"Resolution" shall mean the resolution or resolutions
adopted by the Governing Body of the Issuer providing for, and
authorizing the issuance of, the Bonds.
"Rule" shall mean Rule lSc2-12(b) (5) adopted by the
Securities and Exchange Commission under the Securities Exchange
Act of 1934, as the same may be amended from time to time or
interpreted by the Securities and Exchange Commission.
"State" shall mean the State of Minnesota.
"State Depository" shall mean any public or private
repository or entity designated by the State as a state
depository for the purpose of the Rule. As of the date of this
Disclosure Undertaking, there is no State Depository in
Minnesota.
SECTION 3.
Provision of Annual Reoorts.
C. Beginning in connection with the Fiscal Year
ending on December 31, 1996, the Issuer shall, or shall cause the
Dissemination Agent to, not later than December 31, 1997, and by
December 31 of each year thereafter, provide to each Repository
an Annual Report which is consistent with the requirements of
Section 4 of this Disclosure Undertaking.
D. If the Issuer is unable to provide to the
Repositories an Annual Report by the date required in subsection
A, the Issuer shall send a notice of such delay and estimated
date of delivery to each Repository or to the MSRB and to the
State Depository, if any.
SECTION 4. Content and Format of Annual Reports. The
Issuer's Annual Report shall contain or incorporate by reference
the financial information and operating data pertaining to the
Issuer listed below as of the end of the preceding Fiscal Year.
319480.1
- 36 -
The Annual Report may be submitted to each Repository as a single
document or as separate documents comprising a package, and may
cross-reference other information.. as provided in this Disclosure
Undertaking.
The following financial information and operating data shall
be supplied:
A. an update of the type of information contained in
the Official Statement under the caption ECONOMIC AND
FINANCIAL INFORMATION;
B. an update of the type of information contained in
the Official Statement under the caption SUMMARY OF DEBT AND
DEBT STATISTICS;
C. an update of the type of information contained in
the Official Statement under the caption and subheadings
GENERAL INFORMATION - "Major Employers" and "Building
Permi ts" ;
D. data extracted from preliminary, unaudited
financial statements of the Issuer and from past audited
financial statements of the Issuer in the form and of the
type contained in the Appendix of the Official Statement;
and
E. audited financial statements of the Issuer. The
audited financial statements of the Issuer may be submitted
to each Repository separately from the balance of the Annual
Report. In the event audited financial statements of the
Issuer are not available on or before the date for filing
the Annual Report with the appropriate Repositories as set
forth in Section 3.A. above, unaudited financial statements
shall be provided as part of the Annual Report. The
accounting principles pursuant to which the financial
statements will be prepared will be pursuant to generally
accepted accounting principles promulgated by the Financial
Accounting Standards Board, as such principles ar~ modified
by the governmental accounting standards promulgated by the
Government Accounting Standards Board, as in effect from
time to time. If audited financial statements are not
provided because they are not available on or before the
date for filing the Annual Report, the Issuer shall promptly
provide them to the Repositories when available.
319480.1
- 37 -
SECTION 5.
Reoortinq of Siqnificant Events.
A. This Section 5 shall govern the giving of notices
of the occurrence of any of the following events with respect to
the Bonds, if material:
(1) principal and interest payment delinquency;
(2) non-payment related defaults;
(3) unscheduled draws on debt service reserves
reflecting financial difficulties;
(4) unscheduled draws on credit enhancements
reflecting financial difficulties;
(5) substitution of credit or liquidity providers, or
their failure to perform;
(6) adverse tax opinions or events affecting the tax-
exempt status of the security;
(7) modifications to rights of security holders;
(8) optional or unscheduled redemption of any Bonds;
(9) defeasances;
(10) release, substitution or sale of property securing
repayment of the Bonds; and
(11) rating changes.
B. Whenever an event listed in Section 5.A. above has
occurred, the Issuer shall as soon as possible determine if such
event would constitute material information for Owners of Bonds.
If knowledge of the Occurrence would be material, the Issuer
shall promptly file a notice of such Occurrence with each
National Repository or the MSRB and with the State Depository, if
any.
C. The Issuer agrees to provide or cause to be
provided, in a timely manner, to each National Repository or the
MSRB and to the State Depository, if any, notice of a failure by
the Issuer to provide the Annual Reports described in Section 4.
SECTION 6. Termination of Reportina Obliaation. The
Issuer's obligations under this Disclosure Undertaking shall
terminate upon the legal defeasance, prior redemption or payment
in full of all of the Bonds.
319480.1
- 38 -
SECTION 7. Dissemination Aoent. The Issuer may, from
time to time, appoint or engage a Dissemination Agent to assist
it in carrying out its obligations under this Disclosure
Undertaking, and may discharge any such Agent, with or without
appointing a successor Dissemination Agent.
SECTION 8. Amendment: Waiver. Notwithstanding any other
provision of this Disclosure Undertaking, the Issuer may amend
this Disclosure Undertaking, and any provision of this Disclosure
Undertaking may be waived, if (a) a change in law or change in
the ordinary business or operation of the Issuer has occurred,
(b) such amendment or waiver would not, in and of itself, cause
the undertakings herein to violate the Rule if such amendment or
waiver had been effective on the date hereof but taking into
account any subsequent change in or official interpretation of
the Rule, and (c) such amendment or waiver is supported by an
opinion of counsel expert in federal securities laws to the
effect that such amendment or waiver would not materially impair
the interests of Owners.
......=--
=~:.....
SECTION 9. Additional Information. Nothing in this
Disclosure Undertaking shall be deemed to prevent the Issuer from
disseminating any other information, using the means of
dissemination set forth in this Disclosure Undertaking or any
other means of communication, or including any other information
in any Annual Report or notice of an Occurrence, in addition to
that which is required by this Disclosure Undertaking. If the
Issuer chooses to include any information in any Annual Report or
notice of an Occurrence in addition to that which is specifically
required by this Disclosure Undertaking, the Issuer shall have no
obligation under this Disclosure Undertaking to update such
information or include it in any future Annual Report or notice
of an Occurrence.
SECTION 10. Default. In the event of a failure of the
Issuer to provide information required by this Disclosure
Undertaking, any Owner may take such actions as may be necessary
and appropriate, including seeking mandamus or specific
performance by court order, to cause the Issuer to com~ly with
its obligations to provide information under this Disclosure
Undertaking. A default under this Disclosure Undertaking shall
not be deemed an Event of Default under the Resolution, and the
sole remedy under this Disclosure Undertaking in the event of any
failure of the Issuer to comply with this Disclosure Undertaking
shall be an action to compel performance.
SECTION 11. Beneficiaries. This Disclosure Undertaking
shall inure solely to the benefit of the Issuer, the Participa-
ting Underwriters and Owners from time to time of the Bonds, and
shall create no rights in any other person or entity.
319480.1
- 39 -
SECTION 12. Reserved Riahts. The Issuer reserves the
right to discontinue providing any information required under the
Rule if a final determination should be made by a court of
competent jurisdiction t~at the Rule is invalid or otherwise
unlawful or, subject to the provisions of Section 8 hereof, to
modify the undertaking under this Disclosure Undertaking if the
Issuer determines that such modification is required by the Rule
or by a court of competent jurisdiction.
Date: June
, 1996
CITY OF PRIOR LAKE, MINNESOTA
By
Its Mayor
By
Its Manager
319480.1
- 40 -
APPENDIX B
LAW OFFICES
BRIGGS AND MORGAN
PROFESSIONAL ASSOCIATION
2200 :FIRST NATIONAL BANX BUILDING
SAINT PAUL, MINNESOTA ~~101
TELEPBONEI6m) 223-6600
FACS~ILE 16121223-6400
W1UTEB'S DIBECT DIAL N'UHBEB
MINNEAPOLIS OFFICE
8400 IDS CENTBJi
MINNEAPOLIS, KDl'NESO'IA 5tW02
TELEPHONE le121 3:)4-8400
PACSUULE 1812) 3:)4-88C50
PROPOSED FORK OF LEGAL OPINION
$935,000
GENERAL OBLIGATION IMPROVEMENT BONDS OF 1996
CITY OF PRIOR LAKE
SCOTT COUNTY
MINNESOTA
We have acted as bond counsel in connection with the
issuance by the City of Prior Lake, Scott County, Minnesota (the
"Issuer"), of its $935,000 General Obligation Improvement Bonds
of 1996, bearing a date of original issue of June 1, 1996 (the
"Bonds"). We have examined the law and such certified
proceedings and other documents as we deem necessary to render
this opinion.
..".......;..
We have not been engaged or undertaken to review the
accuracy, completeness or sufficiency of the Official Statement
or other offering material relating to the Bonds, and we express
no opinion relating thereto.
As to questions of fact material to our opinion, we
have relied upon the certified proceedings and other
certifications of public officials furnished to us without
undertaking to verify the same by independent investigation.
Based upon such examinations, and assuming the
authenticity of all documents submitted to us as originals, the
conformity to original documents of all documents submitted to us
as certified or photostatic copies and the authenticity of the
originals of such documents, and the accuracy of the statements
of fact contained in such documents, and based upon present
Minnesota and federal laws (which excludes any pending
legislation which may have a retroactive effect on or before the
date hereof), regulations, rulings and decisions, it is our
opinion that:
I<- "'-...~
- 41 -
BRIGGS AND MORGAN
PROPOSED FORM OF LEGAL OPINION
(1) The proceedings show lawful authority for the issuance
of the Bonds according to their terms under the Constitution and
laws of the State of Minnesota now in force.
(2) The Bonds are valid and binding general obligations of
the Issuer and all of the taxable property within the Issuer's
jurisdiction is subject to the levy of an ad valorem tax to pay
the same without limitation as to rate or amount; provided that
the enforceability (but not the validity) of the Bonds and the
pledge of taxes for the payment of the principal and interest
thereon is subject to the exercise of judicial discretion in
accordance with general principles of equity, to the
constitutional powers of the United States of America and to
bankruptcy, insolvency, reorganization, moratorium and other
similar laws affecting creditors' rights heretofore or hereafter
enacted.
(3) At the time of the issuance and delivery of the Bonds
to the original purchaser, the interest on the Bonds is excluded
from gross income for United States income tax purposes and is
excluded, to the same extent, from both gross income and taxable
net income for State of Minnesota income tax purposes (other than
Minnesota franchise taxes measured by income and imposed on
corporations and financial institutions), and is not an item of
tax preference for purposes of the federal alternative minimum
tax imposed on individuals and corporations or the Minnesota
alternative minimum tax applicable to individuals, estates or
trusts; it should be noted, however, that for the purpose of
computing the federal alternative minimum tax imposed on
corporations, such interest is taken into account in determining
adjusted current earnings. The opinions set forth in the
preceding sentence are subject to the condition that the Issuer
comply with all requirements of the Internal Revenue Code of
1986, as amended, that must be satisfied subsequent to the
issuance of the Bonds in order that interest thereon be, or
continue to be, excluded from gross income for federal income tax
purposes and from both gross income and taxable net income for
State of Minnesota income tax purposes. Failure to comply with
certain of such requirements may cause the inclusion of interest
on the Bonds in gross income and taxable net income retroactive
to the date of issuance of the Bonds.
We express no opinion regarding other state or federal tax
consequences caused by the receipt or accrual of interest on the
Bonds or arising with respect to ownership of the Bonds.
BRIGGS AND MORGAN
Professional Association
- 42 -
APPENDIX C
The following f'mancial statements are excerpts from the annual financial report for the year ended
December 31, 1994. The complete fmancial report for the year 1994 and prior years are available
for inspection at the Prior Lake City Hall and the S1. Paul office of Juran & Moody, Inc. The
reader of this official statement should be aware that the complete financial report may have further
data relating to the excerpts presented in this appendix which may provide additional explanation,
interpretation or modification of the excerpts.
Excerpts from the Financial Report
Combined Balance Sheet - All Funds and Account Groups. . . .. . . ... .. .. .....
Combined Statement of Revenue, Expenditures and
Fund Balance - All Governmental Fund Types.....................................
Statement of Revenue, Expenditures and Fund
Balance - Budget and Actual - General Fund........................................
Combined Statement of Revenue, Expenses and
Retained Earnings - Proprietary Funds - Enterprise Funds.....................
Combined Statement of Cash Flows--Proprietary Funds - Enterprise Funds.....
Notes to Financial Statements... . . . . . .. . . . . . . . . . .. . . . . . . .. . . .. . . . . . . . . . . . . . . . . . . . . . . . . . .
44- 45
46- 47
48
49
50
51- 70
- 43-
crIY OF PRIOR L\KE, MINNESOrA
Liabilities
Accounts payable $ 297 ,909
Contracts payable
Accrued liabilities 9,188
Deposits payable
referred revenue 52,937
Equiptent leases payable
Bcn::s payable
Total liabilities 5 360,034
Equity
Contributa:i
Retained earn.i.rqs
Invested in property, plant am equiprent
Reserved for debt service
UnreseIved
Investment in general fixed assets
F\ln:l balance
Reserved $153,110
UnreseIved
Designated $1,485,015 167,919
uniesignatai
Total equity $1,485,015 $321,029
$ 693 $ 35,198
276,552
3,733,620
$3,734,313 $ 311,750
$4,521,962
$3,621,028
$4,521,962 $3,621,028
Total liabilities anj equity
51,845,049 $321,029 58,256,275 $3,932,778
See acccmpanyirq notes to financial statements.
- 44 -
Account GrouDs Totals
Proprietary Fiduciary General General (Mernorarrlum onl'l)
Furxi Type F\JJ"ds Fixed Lon;-tenn
Enterprise }Qercv Assets Cebt 1994 1993
$1,264,323 $ 144,000 $11,899,320 $12,846,275
1,337,441 1,337,441 1,247,444
23,185 19,554
70,876 97,580
304,078 323,511 280,539
25,322 17,336
305,482 551,050
2,511,874 2,805,225
898,325 1,049,039
15,834 25,471 69,883
6,070,416 6,070,416 6,295,169
$8,308,301 8,308,301 6,321,789
$ 4,521,962 4,521,962 4,898,794
10,260,939 10,260,939 11,176,719
$7,654,651 $1,481,441 $8,308,301 $14,782,901 $46,582,425 $47,676,396
$ 112 , 854 $ 446,654 $ 672,324
$ 143,033 419,585 269,825
38,958 323,390 371,536 344,168
$1,481,441 1,481,441 1,247,444
3,786,557 4,502,894
36,478 36,4i8 34,416
5,000 14,280,000 14,285,000 15,585,000
$ 156,812 $1,481,441 $14,782,901 $20,827,251 $22,656,071
$6,007,344 $ 201,500 $ 6,208,844 $ 6,437,405
63,072 63,072 59,264
5,175 5,175 5,522
1,422,248 1,422,248 1,079,778
8,106,801 8,106,801 6,120,289
4,675,072 5,079,025
5,273,962 5,939,267
299,775
$7,497,839 $8,308,301 $25,755,:74 $25,020,325
$7,654,651 $1,481,~41 $8,308,301 $14,782,901 $46,582,425 $47,676,396
- 45 -
CITY' OF PRIOR rAKE, MINNESOrA
o:MBINED STATEMENr OF REVENJE, EXPENDI'IURES AND FUND EAIANCE
AIL GOVERNMENrAL FUND TYPES
YEAR ENDED DECEMBER 31, 1994
Revenue
Taxes
Licenses an:i pennits
Intergovernmental
C1arges for services
Proj ect an:! investment management
Fines an:i forfeits
Interest on investments
Special assessments
Fees
Miscellaneous
Total revenue
other sources
Borxi an:i certificate p~
Transfers fran other funjs
Total revenue an:i other sources
Expen:li tures
General government
Public safety
Public works
CUlture - recreation
Econanic developnent
Contin;ency
Construction an:! iJnprovements
Property an:! equipnent ~
Miscellaneous
Cebt service
Principal
Interest an:! payin;J agent fees
Total expen:litures
other uses
Transfers to other funjs
Total expen:litures am other uses
Increase (decrease) in furxi balan:e
Furrl balance
Januarj 1
Cecember 31
See acccrnpanying notes to financial stat.eme.'1ts
- 46 -
Governmental
Special
General Revenue
$2,184,096
289,025
1,381,678
346,014
94,829
46,353
50,972
$ 8,862
45,125
121,066
$4,559,158
148,170
25
$157,057
150,000
$4,709,158
$157,057
$1,069,305
1,682,381
587,241
699,679
44,765
144,347
$ 33,142
52,708
19,563
$4,227,718 $105,413
728,200
$4,955,918 $105,413
$ (246,760) $ 51,644
1,731,775 269,385
$1,485,015 $321,029
Totals
FUn:l Types (Merccrarrlum Onl y)
Cebt Capital
SeIvice Proiects 1994 1993
$ 652,671 $ 2,836,767 $ 2,219,286
289,025 228,999
$ 746,944 2,128,622 1,391,447
346,014 316,597
94,829
46,353 61,021
64,910 178,623 303,367 289,320
1,240,944 1,240,944 1,007,236
155,851 795,884 1,145,030 2,741,092
21,509 2,340 144,940 443,315
$2,135,885 $1,723,791 $ 8,575,891 $ 8,698,313
11,992 771,778 783,770 6,584,722
507,213 414,660 1,071,873 845,770
$2,655,090 $2,910,229 $10,431,534 $16,128,805
$ 1,102,447 $ 1,065,028
1,682,381 1,454,554
587,241 597,788
699,679 636,602
44,765 39,448
144,347 53,711
$3,330,898 3,383,606 3,760,165
$ 107,513 150,288 277,364 546,701
141,193 141,193 375,023
2,116,761 2,116,761 3,790,000
807,648 807,648 727,384
$3,031,922 $3,622,379 $10,987,432 $13,046,404
84,935 813,135 450,570
$3,031,922 $3,707,314 $11,800,567 $13,496,974
$ (376,832) $ (797,085) $(1,369,033) $ 2, 631, 831
4,898,794 4,418,113 11,318,067 8,686,236
$4,521,962 $3,621,028 $ 9,349,034 $11,318,067
- 47 -
CITY' OF PIUOR lAKE, MJ:NNESOrA
srATEMENr OF REVENUE, EXPENDI'IURES AND FtJND BAlANCE
BJI:GET AND ACIUAL - GENERAL FUND
YEAR ENDED DECEMBER 31, 1994
Cecrease in furrl balance
Budqet Actual
$2,181,465 $2,184,096
357,715 289,025
1,326,970 1,381,678
544,720 440,843
66,000 46,353
148,310 217,163
$4,625,180 $4,559,153
150,000 150,000
$4,775,180 $4,709,158
$1,111,375 $1,069,305
1,695,720 1,682,381
652,040 587,241
736,425 699,679
51,410 44,765
100,000 144,347
$4,346,970 $4,227,718
428,210 728,200
$4,775,180 $4,955,918
$ -0- $ (246,760)
1,731,775
$1,485,015
Revenue
Taxes
Licenses arrl penni ts
Intergovernmental
Olarges for sel:Vices
Fines an:! forfeits
Miscellaneous
Total revenue
other sources
Transfers fran other fun:1s
Total revenue arrl other sources
Experxii tures
General government
Public safety
Public works
CUl. ture - recreation
Econcmic development
Contin:Jency
Total expen:litures
other uses
Transfers to other fun:1s
Total expen:li tures an:l other uses
F\1rx:i balance
January 1
Cecember 31
See accornpanyL"'X] notes to financial statements.
- 48 -
CITY: OF PRIOR LAKE, MINNESOI'A
a:MBINED STATEMENl' OF REVFlroE, EXPrnSE AND RETAINED EARNINGS
FRJPRIETARY FUNI:S - ENI'ERPRISE FUNes
YEAR nIDED DECEMBER 31, 1994
(with c:orrparative am:unts for year en:ied Cecembe.r 31, 1993)
1994
Operatirq revenue
Water sales
Sewer d1arges
stenn water d1arges
capital facility charge
connection d1arges
Meter sales
Total operatin; revenue
$ 355,087
908,567
140,257
114,600
145,6J2
33,382
$1,697,495
Operatirg ~
Personal sa:vices
SUpplies
Repair am maintenance
Professional sa:vices
Insurance
Utilities
Metropolitan Waste control Catmission
other
$ 305,646
70,022
27,911
7,194
6,317
54,597
623,867
45,838
$1,141,392
Operating incane before depreciation
$ 556,103
Cepreciation
Operatirq incane
234,414
$ 321,689
Ncnoperatirq revenue (~)
Interest incane
Interest am sa:vice charges
Nonoperatirg revenue - Net
$ 55,341
(922 )
$ 54,419
$ 376,108
$ (150,000)
5,922
(114,660)
$ (258,738)
$ 117,370
1,144,564
228,561
$1,490,495
Incare before operatirg transfers
Operatirq transfers in (out)
General Furd
General Furd
Cebt Service Furxl
Capital Proj ects f\.lnjs
Net incane (loss)
Retained earnin;s, J'anuarj 1
COntriJ::uted assets depreciation transfer
Retained e.azni.n;s, Cecembe.r 31
See acccmpanying notes to f.L'".ancial statements.
- 49 -
1993
$ 342,744
721,679
103,750
109,467
97,300
25,840
$1,400,780
$ 293,268
55,610
44,488
11,724
4,775
52,583
599,125
14,061
$1,075,634
$ 325,146
231,797
$ 93,349
$ 49,552
(1,267)
$ 48,285
$ 141,634
$ (150,000)
6,267
(142,000)
(109,467)
$ (395,200)
$ (253,566)
1,169,569
228,56:
$1,14~,564
CITY OF PRIOR lAKE, MINNESOrA
crMBINED STAT.EMENr OF CASH FLeWS
FR)ffiIETARY FUNI:S - Em'ERPRISE FUND.3
YEAR ENDED DECEMBER 31, 1994
(with ccttparative annmts for year errled Cecember 31, 1993)
Cash flows .fran operatirx] activities
Cash received fran customers
Cash paid to ~liers
Cash paid to arployees
Net cash provided by operati.rg activities
Cash flows fran non-capital financi.n] activities
Transfers to other :furds (net)
Cash flows fran capital am related firaocirg activities
Principal payments on revenue ~
Interest arx:l service dlaIges paid
Net cash used in capital anJ related
financirq activities
Cash flows fran investi.n] activities
InvestJnents p.lI"Chased
InvestJnents matured
Furd1ase of property am equipnent
Interest received
Net cash used in investiIg activities
Net irx::rease (decrease) in cash
Cash
January 1
CeceInber 31
Ealance sheet presentation
cash
Te1tp:)ra:ty investIrents
Reconciliation of operatirq inccme to net
cash provided by operatin; activities
Operatin; incane
Adjustments
Cepreciation
C1an;es in assets am liabilities
(Increase) decrease in receivables
Increase (decrease) in payables am
accrued expenses
Net cash provided by cperatirg activities
See acccmpanying notes to financial stateltents.
- 50 -
1994 1993
$1,629,261 $1,397,849
(917,519) (741,804)
(238,715) (252,909)
$ 473,027 $ 403,136
$ (258,738) $ (395,200)
$ (5,000) $ ( 5 , 000)
(922 ) (1,267)
$ (5,922) $ (6,267)
$ (200,000) $ (150,000)
99,980
(9,661) (21,320)
55,341 49,552
$ ( 154,320) $ (21,788)
$ 54,047 $ (20,119)
54,276 74,395
$ 108,323 $ 54,276
$ 108,323 $ 54,276
1,156,000 956,000
$1,264,323 $1,010,276
$ 321,689 $ 93,349
234,414 231,797
(68,234) (1,243)
(14,842) 79,233
$ 473,027 S 403,136
CI'lY OF PRIOR lAKE, KrNNESOI'A
NarES 'It) FINANCIAL STATEMENrS
DECEMBER 31, 1994
Note 1 - SUlmrar{ of Siqnificant Accountin:r Policies
'!he financial statements of the City of Prior Lake (City) have teen prepared in
.confonnity with generally accepted accountin; principles (GAAP) as applied to
goverrnnent mli.ts. '!he Governmental Accountirg st:anJards Board (GASB) is the
accepted st:arx2.rd-settirq body for establi.shi.Iq govemmental accountirq and
financial reportirq principles. '!he mre significant of the City's accounting
p:>licies are described belCIN.
A. Reportm; Entity
In evaluatirq hew to define the City, for financial reporting purposes,
management has considered all potential component units. rrhe decision to
inclooe a potential cc::It'pOnent unit in the reporting entity was made by applying
the criteria set forth in GAAP. 'Ihe basic criterion for including a potential
canponent unit within the reportirq entity is the City's ability to exercise
oversight responsibility. Significant manifestations of this ability include
financial interdeperx:iency, the selection of gcvernin] aut.hori ty, the
designation of management, the ability to significantly influence operations,
an::! ac:x:x:xmtability for fiscal matters. A seccoo criterion used in evaluating
potential canponent units is the ~ of public sm:vice. Application of this
criterion involves considerirg whether the activity benefits the City and/or
its citizens, or 1'Nhether the activity is corrlucted within t.'1e geographic
boun::iaries of the City an:} is generally available to its citizens. A t.hird
criterion is the existence of special financing relationships, regardless of
whether the City is able to exercise oversight responsibilities. Based upon
the application of these criteria, '!he Prior Lake Fire Cepartment Frrerren's
Relief an:i Pension Association an:} Irxieperxient School District No. 719 have
been exclooed fran the reportin; entity.
B. F\1rrl Accounti.rq
'!he City uses furos an:} account groups to report on its financial positicn and
. the results of its operations. F\1rxi accounting is designed to demonstrate
legal ccrr;:>liance ani to aid financial management by segregating transactions
related to certain City functions or activities.
A funj is a separate acx:amtirq entit'1 with a self-balancing set of acccunts.
An account group, on the other hard, is a financial reporting device designed
to provide accountability for cer+-...ain assets ard liabilities that are not
recorded in the funjs because they do not directly affect net expendable
available financial resources.
F\Jnjs are classified into three categories: governmental, proprietary ard
fiducicu:y. Each categoty, in tum, is divided into separate "fund types."
- 51 -
CITY' OF PRIOR lAKE, MINNESOI'A
NOITS ro FINANCIAL STATEMENIS (mNI'INUED)
DECEMBER 31, 1994
Note 1 - SUmmary of Siqnificant Account~ Policies (Continued)
B. FUn:i Accountm;; (COntinued)
Govenunental funis are used to aCCOlmt for all or JOOSt of the City's general
activities, incluciin; the collection an:i d.i.sbursercent of eannarked mnies
(special revenue furrls), the acquisition or construction of general fixed
assets (capital projects funis), ani the seIVicm;; of general lorq-t.enn debt
(debt service funis). '!he general furx:l is used to account for all activities
of the City not accounted for in another furrl.
Proprietary funis are used to account for activities similar to those foun:i in
the private sector, tNhere the determination of net incane is necessaIy or
useful to soun:i financial administration. Goods or seIVices fram such
activities can be provided either to outside parties (enterprise funds) or to
other departments or agencies primarily within the City (internal service
furds) .
Fiduciary funis are used to acccunt for assets held on behalf of outside
parties, incluciin; other gove.rranents, or on behalf of other funds wit.'1.in t.'1e
City. Aqercy funis generally are used to account for assets that the City
holds on behalf of others as their agent.
C. Basis of Accountm;;
'!he aCCOlmtm;; an:i financial :reportin; treatment applied to a fun:i is
det.ermined by its measurement focus. All gove.rranental funis are accounted for
usi.rq a current financial resources rreasurement focus. With this measurement
focus, only current assets an:i current liabilities generally are included in
the balance sheet. Operatirq statements of these funis present increases
( i. e., revenues am other financm;; sources) ani decreases ( i. e. , expenditures
am other financi.rq uses) in net current assets.
All proprietary funis are accounted for on a flow of economic resources
measurement focus. With this measurerrent focus, all assets ani all liabilities
associated with the operation of these fun:is are included in the balance
sheet. F\lrrl equity (i.e., net total assets) is segregated into contributed
capital ani :retained earrtin;s ~nents. Proprietary furxi-type operating
statements present increases (e.g., revenues) ani decreases (e.g., expenses) in
net total assets.
'!he m:xii.fied accrual basis of accountin;; is used by all governmental furxi types
am agency funis. Urxier the m:::d.:ified accrual basis of accountin;, revenues are
reccx;ni.zed when susceptible to accrual (i. e., 'When they become both measurable
arx:l available). "Measurable" means the ano.mt of the transaction can be
det.ermined am "available" means collectible within the current period or soon
enough thereafter to be used to pay liabilities of the current pericd. '!he
City considers pr-~J taxes as available if t.'1ey a.-re collected -N'it.'1.in 60 days
after year erd. Expen:titures are recorded -..;hen the related furd liability is
incurred. Principal ard interc-St. on gene..ral lcnq-te..l"'Zn debt are recor=.ed as
furrl liabilities ""hen due or whe.'1 payrrent is 14ade to t..":e paying agen~.
- 52 -
CI'IY OF PRIOR lAKE, MINNESarA
NOI'ES ro FINANCIAL STATEMEN1'S (CONITNUED)
DECEMBER 31, 1994
Note 1 - SUmmary of Sicmificant Accc1..lntin:r.l?olicies (Continued)
C. Basis of Accounti.rq (Continued)
Revenues susceptible to accrual are property taxes arrl special assessments.
Licenses, pennits arx:l c.~es for services are not susceptible to accrual
because generally they are not measurable until received in cash.
'!he accroal basis of accounting is utilized by proprietary fund types. Under
this method, revenues are recorded when earned am expenses are recorded at the
tine liabilities are incurred.
'!he City reports deferred revenue in its combined balance sheet. Ceferred
revenues arise when a potential revenue does not meet both the ''measurable'' arrl
"available" criteria for reco;ni.tion in the current period. In subsequent
periods, when both revenue reco;ni.tion criteria are met, or wnen the City has a
legal claim to the resources, the liability for defe...~ revenue is reIOOVed
fran the canbined balance sheet am revenue is reco;ni.zed.
D. aJdgets
Annual budgets are adcpted for the General Fun:l on a basis consistent with
generally accepted accountirq principles. All annual appropriations lapse at
fiscal year errl. Project-lergth financial plans are adopted for all capital
proj ects :furds.
Encumbrances represent canm.it:nents related to unperformed ccntracts for gocds
or services. Encumbrances outstan:ii.rq at year em are reported as reservations
of furrl balances an::i do not corstitute experxtitures or liabilities because t.~e
camni tments ~..,ill be honored durin;; the subsequent year.
E. cash an::i TeIrp::>rary Investments
In accordance with Minnesota Statutes, the City maintains deposits at
depositories authorized by the City Council.
Minnesota statutes require that all City deposits be protected by insurance,
surety 0000, or collateral. '!he market value of collateral pledged llUlSt equal
110% of the deposits not covered by insurance or bonis (140% in case of
lOOr-wgage notes pledged) .
Investments are stated at cost.
F. statement of Cash Flows
For ~ of the Prcprietarj Furx:l statement of Cash Fl~, cash is defined
as c.~ec::ki.rq account funis.
- 53 -
CITY OF PRIOR IAKE, MINNESarA
NOrES 'ro FINANCIAL STATEl-1EN!S (CONI'INUED)
DECEMBER 31, 1994
Note 1 - Sl..tnutm:Y of siqnificant Accolmtinq Policies (Continued)
G. Taxes an:l Special Assessments
Property taxes are set by the City Council with the levy certified to the
county, which acts as collection agent, in December prior to the year
collectible. Unpaid taxes at ~ 31, becane liens on the respective
property. If such taxes are not remitted to the City in the settlement
received in January, they are classified as delinquent an:i are offset by a
credit to deferred revenue. As a result, property tax revenue is ~zed
wilen it becanes measurable am available to finance current experx:litures.
Special as~es;sments are levied against the benefited properties for the
as~sable costs of special assessment improvement projec+-...s in accordance with
state Statutes. rrhe City usually adopts the assessment rolls when the
irrlividual projects are ~lete or substantially ~lete. '!he assessments are
collectible aver a tenn of years generally consistent with the term of years of
the related bom issue. Collection of annual installments (including interest)
is harxiled by the County in the same manner as property taxes. Prc~1 owners
are allC1.\Ted to prepay total future installments wi thcut interest or prepayment
penalties.
Special assessments receivable i.ocludes the followin; components:
Unremitted - AnaJnts remitted within 30 days of the
balarx:e sheet date.
Deli.rquent - Anomts billed to property CMlerS but not paid.
~ferred - Ass:~c:rnent installments whic.l-]. will be billed to
property CMlerS in future years.
other - Assessments for which payment has been delayed based
on state statutes or Council action.
Special a5u~t revenue is recognized when collected, including the
unremitted annmts at the balance sheet date. Since the last three categories
arove do not represent funjs available to finance current experx:li tures, they
are not recognized as revenue, kut are offset by deferred revenue in the
balance sheet.
H. Short-term Inter:fun:l Receivables/Payables
Oll"irxJ the course of operations, transactions occur be~..;een in::ii.vidual funds
for services rerrlered. 'Ihese receivables arxi payables are classified as "due
from other funds" or "due to other funjs" in the balance sheet.
- 54 -
CITY OF PRIeR LAKE, MINNESOrA
N<1I'ES TO FINANCIAL STATEMENIS (CONI'INUED)
DECEMBER 31, 1994
Note 1 - SUmrrarI of sicmificant Accountin:r POlieies (Continued)
I. Fixed Assets
General fixed assets are not capitalized in the fun:ls used to acquire or
construct them. Instead, capital acquisition an:l construction are reflected as
e:xperxii. tures in govel:T1nleI1tal fun:ls, ani the related assets are reported in the
general fixed assets account group. All ~ fixed assets are valued at
cost where historical records are available am at an esti..,:nated historical cost
where no historical records exist. Donated fixed assets are valued at t.~eir
estinated fair market value on the date received.
'!he costs of nonral maint.enance arxi repairs that do not add to the value of the
asset or materially exten:l asset lives are not capitalized. Improvements are
capitalized an::i depreciated over the remai.nin;; useful lives of the related
fixed assets, as applicable.
Public danain ("infrastrocture") general fixed assets consistirq of roads,
bridges, o.n:bs ani gutters, streets am sidewalks, drainage systeIrs arrl
lightirg systems are not capitalized, as these assets are :in'aoovable arrl of
value only to the City.
Assets in the general fixed assets account group are not depreciated.
D=preciation of equipment ani vehicles in the proprietary fun:i types is
camputed usirg the straight-line met.hcxi.
J. ~ted Abserx:es
In accordan:e with the provisions of GASB Statem:mt No. 16, a liability is
reccgnized for vacation arrl sick leave earned by eIt1?loyees at t.~e balance sheet
date if it is probable the benefit will be paid as time off or at separation of
ser/ice. '!he liability is recorded as a lon:;-tenn liability ani an ext:er.se in
the proprietary fun:ls as the benefits aCCIUe. For those employees whose
salaries are charged to goverrnnental funjs, the liabili~ is reported in the
General lon:;..JI'erm Cebt Aa:ount Group with no e:xperxii.ture currently recorded in
the funjs.
K. Lon;-Term Obligations
Lon;-te:rm debt is reco;ni.zed as a liability of a gOVernIre.'1tal furd when due.
For other lon;-tenn obligations, only that portion expec""..s:l to ::e financed frcm
experdable available financial resources is reported as a fun:i liability of a
govermrental furrl. '!be remai.nin;; portion of suc.~ obligations is reported in
the general long-term debt acccunt group. Lon:;-te..~ li~ilities expected to be
financed from prcprietary fi.Jn:i operations are acccunted :::;r in ":.~cse funds.
- 55 -
CITY OF PRIeR lAKE, MINNESOrA
NOTES 'IO FINANCIAL STATEMENTS (a:>NrINUED)
DECEMBER 31, 1994
Note 1 - SUrmnary of Siqnificant Accountin:J Policies (Continued)
L. Fun:! Equity
Contributed capital is recorded in proprietary :furXis that have received capital
grants or contrib.Itions fran developers, aJStamers or other :furXis. Reserves
represent those portions of furxi equity not appropriable for experx:liture or
legally se:flegated for a specific future use. Designated funj balances
represent tentative plans for future use of financial resources.
M. Bard Discounts/Issuance Costs
In governmental furxi types, baOO diSCOlmts arxi issuance costs are recognized in
the current pericxi.
N. Interfun:i Transactions
Quasi -exten1al transactions are accounted for as revenues, experrlitures or
expenses. Transactions that constitute rellnbursements to a furxi for .
experrlitures/expenses initially made from it that are properly applicable to
another fun:!, are recorded as experxii tu..""eS/ expenses in the reL'llbursjn; furrl an:l
as reductions of experx:li tures/ expenses in the furd that is rei.mbu..~.
All other interfurxi transactions, except quasi -external transactions an:i
reimbursements, are reported as transfers. Nonrecurrin; or nonrouti.ne
pennanent transfers of equity are reported as residual equity t...."'"aJ1Sfers. All
other interfurxi transfers are reported as operatin; transfers.
o. Mem:>rarx:lum Only - Total ColUItU1S
Total COlUIIU1S in the general purpose financial statements are captioned
''mem::;)rarx:lum only" to i.n:licate that they are presented only to facilitate
financial analysis. Data in these columns do not present financial position,
results of ~tions or charqes in financial position in confonnity with
generally aa:epted accountin; prin:iples. Neither are suc..~ data ~le to
a consolidation. Int:erfurrl eliminations have not been made in the a\:j~l.egation
of the data.
P. Ccmparati ve Data
Ccmparative total data for the prior year have been presented in the
aco::mpanyin:J financial statements in order to provide an un:lerst:anii.rq of
changes in tr..e City's financial position am ~tions.
- 56 -
CIT'{ OF PRIOR lAKE, MINNESOTA
NOI'ES 'ro FmANCIAL STATEMENIS (CDNTINUED)
DECEMBER 31, 1994
Note 2 - Excess of Expen:titures arrl other Uses Over Appropriations -
Budqet.aIy Furxi
General FL;nj experx:litures am other uses exceeded budget by $180,738 as shewn below:
Actual experx:litures ani other uses
Budgeted experx:litures an:l other uses
$4,955,918
4,775,180
$ 180,738
'!he excess over budget was caused by an unbudgeted transfer of $300,000 to the
Capital Projects F\1rrls - Equipnent Acquisition Furx:l which was approved by the City
Council.
Note 3 - Cash an:! Temporar{ Investnents
~its
In accordance with Minnesota statutes, the Cit'j maintains dep:sits at its
depositorj bank as authorized by the City Council. Certain idle funJs are also
invested in non-negotiable certificates of deposit as aut..~orized by Minr2S0ta
statutes an::i are classified as dePJSits. A Sl1llll'llal:Y of deposits at Cece..lllber 31,
1994 follow-s:
Deman:i deposits
Time deposits (CDs)
$ 289,668
5,400,000
$5,689,668
Minnesota statutes require that all City deposits be protected by insurance, surety
bon:1, or (X)llateral. '!he market value of collateral pledged m.JSt equal 110% of the
dePJSi ts not covered by insurance or OOms (140% in the case of mrtgage notes
pledged). At Cecember 31, 1994, all de~its were fully insured or collateralized.
Balances at Cecember 31, 1994 were as folla.vs:
Carrying
amo1.J.nt
Bank
balances
Insured or collateralized by securities
held by the City or its agent in the
City's name
COllateralized by securities held by the
pledgirq institution's t.n1sC depaItnent
in the ci t:'f' s name
Uncollateralized or collateralized wit.'1
securities not in the City's name
$ 200,000
$ 200,000
5,489,668
6,128,153
$5.689.668
$6,328,153
- 57 -
CI'IY OF PRIeR IAKE, MINNESOrA.
NOrES 'IO FINANCIAL STATEMEm'S (CCm'INUED)
DEC>>1BER 31, 1994
Note 3 - Cash arrl Temporary Investments (Continued)
Investments
'!he City also invests idle furrls in investments as authorized by Minnesota statutes.
'!he City's investments are categorized as follows to give an irrlication of the
level of risk assumed at year-erxi. Category 1 includes investments that are
insured or registered or for which the securities are held by the City or its agent
in the City's name. Category 2 includes uninsured arrl unregistered investments for
"Nhich the securities are held by the counter party's trust depart::nent or agent in
the City's naIre. Category 3 includes uninsured am unregistered investments for
which the securities are held by the counter party, or by its trust department or
agent but not in the City's name.
Balances at CeceInber 31, 1994 :
credit risk cateqoIY
123
carrying Market
cuoount value
$ 556,000 $ 556,000
4,653,652 4,567,532
$ 5,209,652 $5,123,532
1,000,000 1,000,000
$ 6,209,652 $6,123,532
5,689,668
$11,899,320
Negotiable certificates
of deposit
u.s. Government
securities
$ 556,000
4,653,652
Invest::rent in
4M F\.1rrl
$5,209,652
Deposits
Total cash ard
investments
Deposits with Tn1stee
Deferred ccnpmsation
plans
$ 1,337,441
Note 4 - soecial Ass:cessments
'!he payment of certain special as"'~sments has been ~~ned in accordance wit.~
applicable state statutes am City policies. 'Ihese assE'ssments in t..'1e anamt of
$898,325 are identified as ot.~ ~ts receivable in the fi.na.r:cial statements.
'!he ~ssments will be due for payment when the con:liticns set fcrt.'1 in the State
Statutes arrl City policies 0C0Jr.
- 58 -
CI'I"i OF PRIOR lAKE, MINNESOrA
NOrES 'IO FINANCIAL STATEMmIS (OJNrINUED)
DEC>>1BER 31, 1994
Note 5 - DJe from ot:.l-ter Goverrunental units
'!he am:JUI1t due fran other govenunental units at Cecernber 31, 1994 is ~ of
the followiJ);:
General F\lrxi
Court fines
Recycli.n;; grant
Proprietary Fun:i
~ - current value credit
Note 6 - General Fixed Assets
$ 4,732
4,905
$ 9,637
15,834
$ 25,471
A S\.IIlll1\aJ:Y of general fixed assets for the year erxied CeceInber 31, 1994 follow-s:
I.arrl ard ~rovements
Park ~rovements arx:1 equiprrent
Buildirgs
Equipnent
Construction in p~ess
Balarx:e
January 1
$2,047,067
427,223
1,234,989
2,612,510
Total general fixed assets
$6,321,789
Note 7 - Prcprie~"'"Y Furrl P!'OPe-~ am ::cui.pment
An analysis of the balance at Cecernber 31, 1994:
cost
I..anj
Euildin;s
Lift stations
Collection system
Distribution system
vehicles arx:l equipment
AccuIm.1lated depreciation
- 59 -
Disposals
am Balance
Additions Transfers Cece!rl::er 31
$ 138,730
72,272
21,000
271,960
1,508,385
$2,012,347
$2,185,797
499,495
1,255,989
2,858,635
1,508,385
$8,308,301
$ 25,835
$ 25,835
$ 19,500
1,407,408
562,248
4,392,291
2,954,678
220,376
$9,556,501
(3,486,085)
56,070,416
CITY' OF PRIOR lAKE, m:NNESOTA
~ 'IO F'INANCIAL STATEMEm'S (CONl'INUED)
DECEMBER 31, 1994
Note 8 - Deferred Revenue
Deferred revenue at December 31, 1994 included the followi.n;:
Deferred special assessments
other special asE~sments
Total deferred am other special
assessments not yet due for collection
$2,511,874
898,325
$3,410,199
Delinquent taxes
Delinquent special assessments
70,876
305,482
$3,i86,557
Note 9 - Lo~-tenn Debt
Followin;; is a sununart of lon;-tenn debt transactions for the year erded
December 31, 1994:
Balaoce Balance
Januar{ 1 Issued Redeerred Cecarnl:er 31
BcOOed debt
Special assessment barrls $11,009,250 $800,000 $1,651,500 $10,157,750
General obligation barrls 2,590,000 225,000 2,365,000
Equiprrent certificates 700,000 110,000 590,000
utility revenue bems 10,000 5,000 5,000
Revenue mOOs -
Advance refurdin; berm 1,275,750 108,500 1,167,250
Total mOOed debt $15,585,000 $800,000 $2,100,000 $14,285,000
Equipnent leases payable
$
34,416 $ 19,729 $ 17,667 S
36,478
Ccntract for deed
$ 164 , 794
$ 21,761 S 143,033
- 60 -
CTIY OF PRIOR IAKE, MINNESorA
NOrES ro FmANCIAL STATEMEmS (cnNI'INUED)
DECEMBER 31, 1994
Note 9 - LDnq-tenn Ce.bt (Continued)
'The i.n:li vidual bond issues out.st.an::tirx at Cecember 31, 1994 are listed below:
Interest Issue Maturity
. ~iption rates date date Amount
Special Assessment Borm
G.O. Improvement Berm of 1973 5.00 - 5.50 07/01/73 07/01/98 $ 420,000
G.O. Ilq)rovement Borm of 1973 5.10 - 5.50 10/01/73 10/01/98 135,000
G~O. Improvement Boros of 1977 4.50 - 5.75 03/01/77 03/01/97 450,000
G.O. Irrprovement Bonis of 1977 4.00 - 5.70 06/01/77 06/01/98 420,000
G.O. Refurxiin; Boros of 1977 4.80 - 5.50 10/01/77 07/01/96 200,000
G.O. In;:>rovement Bonis of 1978 4.90 - 5.80 05/01/78 05/01/98 35,000
G.O. Refurxiin; Bonis of 1987 3.60 - 5.25 04/01/87 12/01/95 250,000
G.O. Improvement Borm of 1987 5.75 - 7.10 09/01/87 12/01/97 80,000
G.O. Improvement Berm of 1988 5.90 - 7.70 06/01/88 12/01/01 215,000
G.O. Improvement Bords of 1991 4.90 - 6.80 03/01/91 12/01/08 375,000
G.O. Advance Refurrli.n:1 Boros of 1992 . 3.00 - 6.00 02/01/92 12/01/07 2,167,750
G.O. Refurxiin; Boros of 1992 3.40 - 3.95 10/01/92 07/01/00 310,000
G. o. Crossover Refurrli.n:1 Borm
of 1992B 3.60 - 4.80 10/01/92 12/01/99 730,000
G. o. Refurxiin; Borm of 1993 3.30 - 4.60 03/01/93 10/01/98 780,000
G.O. Improvement Boros of 1993 4.25 - 4.375 07/01/93 12/01/08 2,790,000
G. o. Improvement Bards of 1994 3.60 - 5.40 08/01/94 12/01/04 800,000
$10,157,750
C-€neral Obligation Boros
G.O. Park Bonds of 1973 5.50 - 5.75 12/01/73 12/01/03 $ 115,000
G.O. Refurxiin; Park Bonds of 1977 5.10 09/01/77 09/01/00 90,000
G.O. Tax Increment Bonds of 1985 7.25 - 9.00 10/01/85 12/01/98 70,000
G.O. Equipnent Certificates of 1991 5.30 03/01/91 12/01/95 105,000
G. o. Crossover Refurrli.n:1 Berm
of 1992A 3.60 - 4.80 10/01/92 08/01/99 150,000
G.O. Equipment certificates of 1993 3.40 - 4.25 03/01/93 12/01/97 385,000
G. o. Fire Station Boros of 1993 3.00 - 5.40 08/01/93 12/01/93 2,040,000
$ 2,955,000
C~'1eral Obligation Revenue Borx:s
G. o. Advance Refurrli.n:1 Bonis of 1992 3.00 - 6.00 02/01/92 12/01/07 $ 1,167,250
t:ti1ity Revenue Boros
G.O. Water Revenue Eon::!s of 1975 6.10 - 7.00 04/01/75 04/01/95 $ 5,000
514,235,000
- 61 -
CITY' OF PRIOR L\KE, MINNESGrA
NOI'ES 'IO FINANCIAL STATEMENI'S (CONI'INUED)
DECEMBER 31, 1994
Note 9 - Lorq-term Cebt (Continued)
'!he annual requirements to am:>rtize all borxied debt outsta.rxii.n;J as of December 31,
1994, inclu:::lin; interest payments of $4,097,141 are as follcws:
Year en:lin;J Special General
Dacernber 31 Assessment Obliqation
1995 $ 2,201,133 $ 500,448
1996 1,926,720 394,537
1997 1,785,227 397,929
1998 1,492,026 249,950
1999 1,017,882 237,645
2000-2004 3,432,307 919,393
2005-2009 616,708 871,685
2010-2013 758,815
$12,472,003 $4,330,402
Utility
Revenue
$ 5,175
$ 5,175
Advance
Refuncii.N;
Revenue
$ 168,534
164,194
159,528
137 ,146
134,573
626,033
184,553
$1,574,561
Special assessment am utility revenue bards are payable prinarily from special
assessments am utility revenues, respectively, with any deficiencies provided by
general property taxes. General obligation bonis are payable from general property
taxes arx:1 tax increments.
'!he City is in ccrrpliance with all significant bom covenants.
On February 1, 1992, the City issued $4,265,000 General Obligation Advance Refuncii.N;
Bonds to advance refund $2,550,000 of G.O. Improvement Bonds of 1986 and $1,370,000
of G.O. Water '!'ewer Revenue Bonis of 1987. '!he proceeds of the refuncii.N; bonis were
placed in an irrevocable trust to provide for all future debt service payrrents on
the old bonis. Accord.irqly, the trust acccunt assets an:i the liability for the
defeased l::onis are not included in the City's financial statements. On December 31,
1994, $1,235,000 of G.O. Water Revenue Eorxis of 1987 outstarx:1i.n;; are considered
defeased.
'!he change in accrued vacation pay durin; the year "..;as:
Balance
January 1
Increase Cecrease
Accrued vacation pay
$301,303
$ 53,005 $ 30,918
- 62 -
Balance
Cece..Tt'.cer 31
$323,390
CITY' OF PRIOR lAKE., MDtNESOI'A
NOrES 'IO FINANCIAL STATEMENrS (CONITNUED)
DECEMBER 31, 1994
Note 10 - Defined Benefit Pension Plans - staterllide
A. Plan Cescription
All full-time ani certain part-time employees of the City of Prior lake are
covered by defined benefit pension plans administered by the Public Ertq?loyees
Retirement Association of Minnesota (PERA). PERA administers the Public
~loyees Retirement Fun:i (PERF) am the Public Employees Police am Fire Fun:i
(r'l:J:'1"1'") which are cost-sharin;] nultiple-enployer retirement plans. PERF
members belorq to either the Coordinated Plan or the Basic Plan. Coordinated
members are covered by Social Sean:ity am Basic members are not. All new
members ItI.1St participate in the Coordinated Plan. All police officers, fire
fighters ard peace officers who qualify for merr.bershi.p by statute are covered
by the Pl:J:'l'"l'". '!he payroll for employees covered by PERF arrl PEPFF for the year
ended December 31, 1994, was $1,309,784 and $822,994, respectively; ~~e City's
total payroll was $2,457,321.
PERA provides retirement benefits as well as disability l:enefits to r.ieInbers,
an:i benefits to smvivors upon death of eligible Ina't'.be.rs. Benefits are
established by state statute, am vest after three years of credited service.
The defined retirement benefits are based en a me.111ber's average salarf fer any
five successive years of allowable ser/ice, age, a.rrl yea.."""S of c:-edit at
tennination of service. 'I\vo methc:rls are used to ccmpute =e..'1efits fer
Coordinated ani Basic members. '!he retirin; member receives t..~e higher of a
step-rate benefit aa:nJal formula (Metho:i 1) or a level accrual for:nula (Met..'1o:i
2). Urxier Methcd 1, the annuity aa:nJal rate for a Basic meIrl:er is 2 percent
of average salarj for each of the first 10 years of service an:i 2.5 percent fer
each remainirq year. For a Coordinated me.TI1ber, the annui t:j accrual rate is 1
percent of average salarj for each of the first 10 years ani 1.5 percent for
each remainirq year. Usirq Methcrl 2, the annuity aa:nJal rate is 2.5 percent
of average salar./ for Basic members and 1.5 percent fer Coorc:lL'1ated rrarJ:ers.1For r'l:J:'1'"1'" members, the annuity aa:nJal rate is 2.5 percent fer each year of
service. For PERF members whose annuity is calculated using Method 1, and for
all fJ.€.Pl'"l'" members, a full annuity is available ~Nhen age plus years of service
equal 90.
'!here are different types of annuities available to membe..'I"'S upcn retirement. A
nornal annuity is a lifetime annuity that ~~c:.es upon the deat.'"l of t..'1e
retiree. No sw:vivor annuity is payable. '!here are also various types of
joint ani SUIVivor annuity options available whi.c.~ will reduce t.~e m:nt.lly
nonral annuity anount, because the annuity is payable over joint lives.
Me.1f::e.rs may also leave the~ contributions in the furxi upon te..~tion of
public sexvice, in order to qualify for a defa.~ annuity at :-etirement age.
Rerun::Js of contributior.s are available at any ti..-ne to memba.'I"'S ~N'hO leave public
se.rvice, but before retirement benefits begin.
- 63 -
""""'"',....,...~.,',.~'.~M'~""_'",..,....--._..,..-l ~ "...__..........~_,_"__"'^"._,__..,,_~~'.......~___....,.,',.._,._,~_~,,__~......-.._........._~._,',_".". ,",' ~._.......,.~,_""',."",".......__~"-~"u...,,.."'-_,,~"',....~"'.~~_......
CIT'i OF PRIOR lAKE, MINNESOrA
NC1I'ES 'It) FINANCIAL S'I'A'I'Elv!ENI (<DNI'rntJED)
DECEMBER J 1, 1994
Note 10 - Defined Benefit Pension Plans - statewide (Continued)
B. Contributions Required arxi Contributions Made
Minnesota statutes Chapter 353 sets the rates for employer anj employee
contributions. '!be City makes annual contributions to the pension plans equal
to the anomt required by state statutes. Accordi..rq to Minnesota statutes
Chapter 356.215, SUbd. 4 (g), the date of full fun:ii.rq required for the PERF ani
the PEPFF is the year 2020. As part of the annual actuarial valuation, PERA's
actuary determines the sufficiency of the statutory contribution rates towards
meetin; the required full furx:li.ng deadline. '!he actuary ~ the actual
contribution rate to a "required" contribution rate. CUrrent ccmbined
statutory ccntril:ution rates arxi actuarially required contribution rates for
the plans are as follows:
statutorY rates
Emplovees Emclover
Required
rates
PERF (Basic am Coordinated Plans)
PEPFF
4.30%
7.90%
4.60%
11.70%
9.58%
17.45%
Total contributions made by the city duri.rx;I fiscal year 1994 were:
~unts
Enplovees Enn:>loyer
Percentage of
covered payroll
Employees Emplover
Totals
$117,952
$ 58,678
93,821
$152,499
4.23%
7.60%
4.48%
11.40%
PERF
PEPFF
$ 55,404
62,548
The City's contributien for the year en:ed Cecember 31, 1994 to the PERF
represented 0.05 percent of total contributions required of all participating
entities. For the PEPFF, contributions for the year e.rrled December 31, 1994,
represented 0.29 percent of total contri.butions required of all participating
entities.
C. F\.1n:iirq status am Progx ess
1. Pension Benefit Obligation
'!he "pension benefit obligation" is a starx:iardized disclosure measure of
the present value of pensien benefits, adjusted for the eff~~ of
projected salary increases arxi step-rate benefits, estinated to be payable
in the :future as a result of ~loyee service to date. '!he measure, wnic.~
is the actuarial present value of credited projec+-~ benefits, is interrled
to help users assess PEPA's fun:lirx; status on a going-concern basis,
ass:~s pJ::~l.ess made in accunulat:.l'-X; sufficient assets to pay benefits
when due, am make cc:at;ariscns am:ng Public Employees Retire..rnent Systen-s
am ancn; employers. PERA does I".Ct make separate measurernents ef asse~
ard pension benefit obligatiens fer irxlividual e."T.ploye...~.
- 64 -
CITY OF PRIOR LAKE, MINNESOI'A
NOI'ES TO FINANCIAL STATEMENrs (CONI'INUED)
DECEMBER 31, 1994
Note 10 - Defined Ber~fit Pension Plans - statewide (Continued)
c. FUn:iirg status am Progress (Continued)
1. Pension Benefit Obligation (Continued)
'!he pension benefit obligations as of June 30, 1994 are shown :below:
PERF PEPFF
(in thousan:is)
Total pension benefit obligatien
Net assets available for
benefits, at cost
(Market values for
PERF = $4,762,519;
PEPFF = $1,237,484)
Unfurxled (assets in excess of)
pension benefit obligation
$5,625,598
$1,020,950
4,733,845
$ 891,753
1,229,769
$ (208,819)
'!he measurement of the pension benefit obligation is based on an actuarial
valuation as of June 30, 1994. Net assets available to pay persian
benefits were valued as of June 30, 1994.
2. C1an;es in Benefit Provisions
For the PERF, significant actuarial asSUIt;?tions used in the calculatien of
the pension benefit obligation include (a) a rate of return on the
investment of present an:l future assets of 8.5 percent per year,
~ annually, prior to retirement, an:i 5 percent per year,
~ annually, followin; retirement; (b) projected salary increases
taken fran a select an:i ultimate table; (e) payroll ~th at 6 pe..~t
per year, consisting of 5 percent for inflation ani 1 percent due to
growth in group size; (d) post-retirement benefit increases that are
aCCOLmted for by the 5 percent rate of return ~ion followirq
retirement; arx:i (e) mrtality rates based on the 1983 Group Annuity
Mortality Table set fonvard one year for retired members ani set back five
years for eadl active member. Actuarial assumptions used in the
calculation of the PEPFF include (a) a rate of return on the investment of
present ard future assets of 8.5 percent per year, ccrnpcurrled annually,
prior to retirement, and 5 percent per year, ~ed annually,
following retirement; (b) proj ected salary increases of 6.5 percent per
year, ~ed annually, attrib.ttable to the effects of inflatien; (c)
pest-retirement increases t.~t are acounted for by t..'1e 5 percent rate or
return ~ion followirq retirement; ani (d) mortality rates based en
the 1971 Gra.1p Annuity Mortality Table projected to 1984 for males ani
females.
- 65 -
<<"""~'_d""""""""__""--"""~""""-,__"""___,_,~____",_,,,_,~,,,__,,,,,,,,,_~_,,,_-.._____~..",.,_......... ..._.,.."...-.,.,"."....,.,....<>~.-"'~4 .....;..,,~"'"_.'.,."_....~.>>''''..,._,_ .'_'~,.,.~,..,~"'......_c..,..~,..."'_........~.~_...__..~,,.,._...
CITY OF PRIOR lAKE, MnlNESOI'A
NOI'ES 'IO FINANCIAL STATEMENIS (CONTINUED)
DECEMBER 31, 1994
Note 10 - Defined Benefit Pension Plans - statewide (COntinued)
c. Fun:iin:J Status an:! Pl ogl: ess (Continued)
3. Charges in Plan Provisions
'!he 1994 legislative session did not include any benefit iIrprovements
which ~d iIrpact fun:ling costs for the PERF an:! the PEPFF.
4. Charges in Actuarial AssuIrptions
Prior to fiscal year 1994, the salcu:y increase assumption an:l the
lOOrtality tables used in the calculation of pension benefit obligation for
the PERF were the same as those specified for the PEPFF. For t.'1e July 1,
1994 actuarial valuation, PERA's l::x:2rd of trustees aproved new IrOrtality
rates UIXlated to the 1983 Group Annuity Mortality Table, salazy increases
which were c::han;ed to a select arxi ultimate table an:l a new payroll grcwt.~
assumption which 'HaS c:::han;ed from 6.5 percent to 6 percent. These changes
were made to reflect actual ~ience of the plan.
With the adcption of the actuarial assumptien c.'1.an;es an:l the ne!';
lOOrtality tables for the PERF, the persian benefit obligation increased
$56, 596, 000. '!he actuarial assurrption c::han;es also necessitated a
$81,201,000 transfer fran the PERF Benefit Reserve to the PERF Minnesota
Post Retirement Investment F\.1n:i (MPRIF) Reserve to finance the increased
ooligation for future retirement k:enefits. '!he c::han;e in t.~e lOOr---ality
rate assumption increased the PERF's costs because pensione...""S are living
larger than assumed previously. '!he c::han;e in the salazy increase
assumption, however, offset some of the additional costs because lower
salary increases generally translate into lower benefit liabilities in the
future .
Potential c.'1.an;es in the assumptions used for the PEPFF may be made in the
future after cc:mpletion of a special ~ience study for t.~t furrl.
Carpletion of the PEPFF ~ience study is expected by February 1, 1995.
D. Ten-Year Historical Tren:i Infonnation
Ten-year historical trerxi information is presented in PERA's ecn-prehensive
Annual Financial Report for ~'1e year en:ied June 30, 1994. '!his information is
useful in asS€'5Sin;J the pension plan's aCC'..In'lll.atien of sufficient assets to pay
pension benefits as they became due.
E. Related Party Invest:rents
As of June 30, 1994, an:! for the fiscal year then errled, PERA held no
securities issued by t.~e C:i.t'J or ot~er :-elat:.ed parties.
- 66 -
CITY' OF PRIOR lAKE, MINNESOI'A
NOI'ES TO FINANCIAL STATEMENrS (Cl)NTINUED)
DECEMBER 31, 1994
Note 11 - Cefined Benefit Pension Plans - Fire Ceoartment Firemen's Relief ani
Pension Association
A. Plan rescription
'!he Prior lake Fire Cepart:ment Firemen's Relief an:i Pension Association
operates a sirqle-etll'loyer p.Jblic employee defined benefit retirement plan for
certain fire fighters.
Vollmteer fire fighters of the City are members of the Relief ani Pension
Association which provides retirement benefits as well as death ani disability
benefits. All benefits vest based on years of credited service with the Fire
D=partment. At 10 years, members are 60 percent vested with 4 percent
increases eac.~ year to 100 percent vestin;J at 20 years of active service ani 10
years' me.'1'J:ership in the Association. Fully vested members t.Jho retire at age
50 years or nore receive a lunp sum pensien benefit of $1,900 for each year of
active service.
'!he City passes t.lu"ough state Aids allocated to the plan in accordance with
state statutes.
B. Contributions Required am Contributions Made
Financial requirements of the Associatien are detennined on an actuarial basis
using the ent....~ age nonnal actuarial cost method. Nonnal cost is furrled on a
OJrrent basis. '!he minimum tax levy obligation or City contribution is the
financial requirement for the year less anticipated state aids ani interest at
5% on furrl assets. '!he fun:tin;J st...-ategy for nomal cost ani the unfurxied
actuarial accrued. liability should provide sufficient resources to pay
Association ber~fits on a timely basis.
Total contributions to the plan in 1994 consisted of a City contribution of
$16,952 ard $41,573 of state of Minnesota Aid. '!he contributions arx:l
investment earnin;1s were for fun:tin;J the nonnal cost of $69,340 plus 10% of the
previous unfurxied pension liability.
Significant actuarial assumptions used to compute pension contribution require-
ments are substantially the same as t..~ose used to deter:n:ine the st:an:!antized
measure of the pension obligation.
'!he CCl'rput:ation of the pension contribution requirements fer 1994 was based on
the same actuarial assumptions, benefit provision, actuarial fun:tin;J method,
~ other significant fac+-...ors used to de~ pension contribution
requira'1'ents in previous years.
- 67 -
CI'IY OF PRIOR lAKE, MJ}mESCTA
NOI'ES 'IO FINANCIAL STATEMENIS (roNI'INUED)
DECEMBER 31, 1994
Note 11 - Defined Benefit Pension Plans - Fire Ceoartment Firemen's Relief arrl
Pension Association (Continued)
C. F\1n:ling status am Prcgress
'!he anomt shown below as the "pension J:enefit obligation" is a starx:1ardized
disclosure nvaasure of the present value of pension benefits. '!he nvaasure is
interrled to help users assess the fun:iirq status of the Association plan on a
goirq-concem basis, assess ptog1:ess made in accumulati.n;; sufficient assets to
pay benefits when due, am make ccmparisons ~ etq)loyers. '!he measure is
the actuarial present value of credited projected benefits ani is irxieperrlent
of the fun:ii.n; methcxi used to detenni.ne contributions to the Association.
'!he pension benefit obligation was c:arp.rted as part of an actuarial valuation
perfonned as of January 1, 1994. Significant actuarial assumptions use:i to
detennine the pension benefit obligatien are summarized below:
'!he present value of future pension benefits was ~uted by using
a discount rate of 5 percent. '!he discount rate is equal to the
estimated lon;-tenn rate of retum on current an:i future
investments of the pension plan.
'!he total unfun:Jed pension benefit ooligation as of Januaty 1, 1995 is as
follows:
Pension benefit ooligation
Net assets available for benefits, at cost
$601,666
527,018
$ 74,648
Unfurxied persion benefit obligation
D. Related-Party InvestIrents
Olring 1994 ani as of Cecember 31, 1994, the Association held no securities
issued by the city or other related parties.
E. Trerrl Information
Ten-year historical trerxi infonnation is presented in the Association's Annual
Financial Report for the year enied Cece.'tll:er 31, 1994. '!his infonnatien is
useful in ~eesin;J the plan's accumulation of sufficient assets to pay
benefits when due.
Note 12 - Deferred Ccmpensation Plan
TI1e City offers its employees a deferred ~tien plan established in accordance
~Nith Internal Revenue cede Section 457. ~.e plan, available to all employees,
pe...-r:ni.ts them to defer a portion of their salary until futu....-e years. '!he defe-"'"::'ed
ccrnpeI"'.sation is not available to employees \.:I1til tenni.natien, retirement, deat.'1, or
unforeseeable emergency.
- 68 -
CITY OF PRIOR I.AKE, MINNESGr.1\
NOI'ES 'It> FINANCIAL STATEMEmS (OONI'INUED)
DECEMBER 31, 1994
Note 12 - Ceferred Canpensation Plan (Continued)
All annmts of CCltpmSation deferred urxler the plan, all property ani rights
purchased with those arna.mts, ani all in:x:me attributable to those annmts,
property, or rights are (\mtil paid or made available to the employee or other
beneficicuy) solely the property am rights of the City.
'!he city feels it has no liability for losses urxier the plan but does have the duty
of due care that would be required of an ordinary prode.'1t investor.
Ceposits un:ier the plan, at market value, anounted to $1,337,441 at CeceIr.ber 31,
1994.
Note 13 - ReseIVed/~iqnated F\1ni Equity
'!he follow:in; reseJ:Vationsjdesignations have been made of fun:i equity balances at
December 31, 1994:
Retained ~s
Cebt ser.J'ice
Desiqr.ations
Reservations
$
5,175
Furx:1 balance
General Furrl
Work.in;; capital
Special revenue furx:l
Severance ~tion
IIrprovements
Cebt service furrls
Debt service
Capital proj ects funjs
Inpravements
$1,485,015
$ 153,110
167,919
4,521,962
3,621,028
$5,273,962
$4,675,072
Note 14 - Contributed Equity
Contributed equity represents the cost, or estimated current value, of assets
donated to the City by third parties or by one fun:i to another. An analysis of
c.harqes in contributed equity duri.rg 1994 foll~:
Prcprietazy F\1rxl
Balance, January 1
Contributed assets depreciation transfer
$6,235,905
228,561
Balance, Cecember 31
$6,007,344
General Fixed Assets Account Group
Balance, January 1 arx:1 Cecer.ber 31
S 201.300
- 69
CI'IY OF PRIeR rAKE, MINNESOrA
NarES TO FrnANCIAL STATEMENTS (CONI'INUED)
DECEMBER 31, 1994
Note 15 - Seqment Information for Ente.rDrise F\Jn::ls
'!he City has two Enterprise Furrls: '!he utility F\1rxi which accounts for sanitary
sewer ard water savices, am the stem Water Fun:i which accounts for the stann
water cl1arges to residents. Segment information for the year enjed December 31,
1994 follC1NS:
Operatin; revenue
utility
$1,557,238
storm
Water
Total
$140,257
$1,697,495
Depreciation
234,414
234,414
Operatin; incane
Operatin; transfers, net
Net incane (loss)
Property am equiprent
Additions
246,463
75,226
321,689
(258,738)
(258, 738)
42,144
75,226
117,370
9,661
9,661
Cash
9,066
99,257
108,323
Total assets
7,529,739
124,912
7,654,651
Furrl equity
Contributed
Retained ea.rni.rqs
6,007,344
1,373,640
116,855
6,007,344
1,490,495
Note 16 - Accolmtirn Char'x;e
'!he City adopta:i GASB statement No. 16 in 1994 to account for the liability for
rompensated absences. Urxler the rew methcd, the total liability at December 31,
1994 is $359,435, am is $10,951 higher than it would have been urrler the previous
methcx:i. '!be liability is reported in the financial statements as follows:
Proprietary :furx:3s
utility Furxi
General Lon;-TeIm ~ Account Group
$ 36,045
323,390
$359,435
Because the c.~e in accountin; is recorded totally in the General I.on;~enn Cebt
Account Group arx:1 had no effect on funj results, it was not considered meanirgful
to restate the prior year financial statements.
- 70 -
$935,000
GENERAL OBLIGATION IMPROVEMENT BONDS OF 1996
CITY OF PRIOR LAKE, MINNESOTA
(SCOTT COUNTY)
CUMULATIVE BOND YEARS AND WORKSHEET
(DEC. 1) CUMULATIVE
YEAR AMOUNT BOND YEARS BOND YEARS
1996 $ 75,000 112.500 112.500
1997 75,000 187.500 300.000
1998 80,000 280.000 580.000
1999 85,000 382.500 962.500
2000 90,000 495.000 1,457.500
2001 95,000 617.500 2,075.000
2002 100,000 750.000 2,825.000
2003 105,000 892.500 3,717.500
2004 110,000 1,045.000 4,762.500
2005 120,000 1,260.000 6,022.500
AVERAGEMATURlTY: 6.44118 years.
BONDS DATED: June 1, 1996.
INTEREST PAYMENTS: June 1, 1997, and semiannually thereafter on December 1 and
June 1.
REDEMPTION: At the option of the Issuer, bonds maturing on or after
December 1, 2000 shall be subject to prior payment on
December 1, 1999, and any interest payment date thereafter, at
a price of par and accrued interest. Redemption may be in
whole or in part of the bonds subject to prepayment. If re-
demption is in part, the bonds remaining unpaid which have
the latest maturity date shall be prepaid first and if only part the
bonds having a common maturity date are called for prepay-
ment the specific bonds to be prepaid shall be chosen by lot by
the Registrar.
PROPOSAL: Sealed proposals only for not less than $917,235 Good faith
check or a Financial Surety Bond for $18,700 must accom-
pany proposal.
RATES: All rates must be in integral multiples of 1/20th or 1/8th of 1 %.
No limitation is placed upon the number of rates which may be
used. All bonds of the same maturity must bear a single uni-
form rate from date of issue to maturity and no rate of any ma-
turity may be lower than the highest rate applicable to bonds of
any preceding maturities.
ESTIMATED CLOSING DATE: June 19, 1996.
- 71 -
-4~_~.~_~____......~~_...;.,~-..~,....._...... ~.. ~''",___,,,,,,,........,,,~,____-...~_......,",,~..",,~.,,,,.,_,...~,_
PROPOSAL FORM
HONORABLE CITY COUNCIL
CITY OF PRIOR LAKE
PRIOR LAKE, MINNESOTA
FOR ALL OF THE $935,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1996,
OF YOUR CITY AS DESCRIBED IN THE OFFICIAL TERMS OF BOND SALE, WE WILL
PAY YOU DOLLARS
($ ) (NOT LESS THAN $917,235) PLUS ACCRUED
INTEREST FROM THE DATE OF SAID BONDS TO THE DATE OF DELIVERY.
SAID BONDS SHALL BEAR INTEREST PAYABLE JUNE 1, 1997, AND SEMIANNUALLY
EACH DECEMBER 1 AND JUNE 1 THEREAFfER AS FOLLOWS:
DATED: MAY 29, 1996
_%-1997 _%-1999 _%-2001 _%-2003 _%-2005
_%-1998 _%-2000 _%-2002 _%-2004 _%-2006
DESIGNATION OF SERIAL AND TERM MATURITIES
LAST YEAR OF SERIAL MATURITIES
YEAR OF TERM MATURITIES
PRINCIPAL WILL BE PAYABLE AT FIRST TRUST NATIONAL ASSOCIATION, ST.
PAUL, MINNESOTA. CUSIP NUMBERS WILL BE ISSUED AT THE COST OF THE
SUCCESSFUL UNDERWRITER.
THIS PROPOSAL IS FOR PROMPT ACCEPTANCE AND SUBJECT TO ALL TERMS IN
THE OFFICIAL NOTICE OF SALE. WE ARE TO BE FURNISHED THE APPROVING
LEGAL OPINION OF BOND COUNSEL, TOGETHER WITH THE DELIVERY OF THE
BONDS, WITHIN 40 DAYS AFTER AWARD OR AT OUR OPTION THEREAFTER.
DELIVERY Wll..L BE MADE AT
(SPECIAL INSTRUCfIONS-SEE OVER)
ACCOUNT MEMBERS:
ACCOUNT MANAGER
BY:
ACCEPTED FOR THE ADDRESSEE THIS
DAY OF MAY, 1996.
BY:
MAYOR
AITEST:
CITY MANAGER
WE COMPUTE OUR TOTAL NET INTEREST COST TO BE $ FOR A
NET INTEREST RATE OF %. THESE COMPUTATIONS ARE NOT APART
OF THIS OFFER.
IT IS NOT NECESSARY TO USE THIS FORM; HOWEVER, ANY PROPOSAL MUST
COMPLY WITH THE TERMS STATED IN THIS OFFICIAL TERMS OF BOND SALE.
PLEASE SUBMIT THIS PROPOSAL IN DUPLICA TE
- 73 -
SPECIAL INSTRUCTIONS:
SALE RESULTS WILL BE FURNISHED BIDDERS AT 8:30 A.M. ON DAY AFfER THE
SALE AT 224-1500. IF RESULTS ARE DESIRED IMMEDIATELY, PLEASE COMPLETE
THE FOLLOWING:
CONTACT:
TELEPHONE NUMBER:
THE UNDERSIGNED HEREBY ACKNOWLEDGES RECEIPT FOR THE GOOD FAITH
CHECK IN THE AMOUNT OF $18,700 TO BE RETURNED TO THE UNSUCCESSFUL
BIDDER.
JURAN & MOODY, INC.
BY:
DATED: MAY 29, 1996
- 74-
PROPOSAL FORM
HONORABLE CITY COUNCIL
CITY OF PRIOR LAKE
PRIOR LAKE, MINNESOTA
FOR ALL OF THE $935,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1996,
OF YOUR CITY AS DESCRIBED IN THE OFFICIAL TERMS OF BOND SALB. ~ WILL
PAY YOU DOLLARS
($ ) (NOT LESS THAN $917,235) PLUS ACCRUED
INTEREST FROM THE DATE OF SAID BONDS TO THE DATE OF DELIVERY.
SAID BONDS SHALL BEAR INTEREST PAYABLE JUNE 1, 1997, AND SEMIANNUALLY
EACH DECEMBER 1 AND JUNE 1 THEREAFTER AS FOLLOWS:
DATED: MAY 29, 1996
_% - 1997 _% - 1999 _% - 2001 _% - 2003 _% - 2005
_%-1998 _%-2000 _%-2002 _%-2004 %-2006
DESIGNATION OF SERIAL AND TERM MATURITIES
LAST YEAR OF SERIAL MATURITIES
YEAR OF TERM MATURITIES
PRINCIPAL WILL BE PAYABLE AT FIRST TRUST NATIONAL ASSOCIATION, ST.
PAUL, MINNESOTA. CUSIP NUMBERS WILL BE ISSUED AT THE COST OF THE
SUCCESSFUL UNDERWRITER.
THIS PROPOSAL IS FOR PROMPT ACCEPTANCE AND SUBJECT TO ALL TERMS IN
THE OFFICIAL NOTICE OF SALE. WE ARE TO BE FURNISHED THE APPROVING
LEGAL OPINION OF BOND COUNSEL, TOGETHER WITH THE DELIVERY OF THE
BONDS, WITHIN 40 DAYS AFfER AWARD OR AT OUR OPTION THEREAFTER.
DELnffiRY~LBEMADEAT
(SPECIAL INSTRUCTIONS-SEE OVER)
ACCOUNT MEMBERS:
ACCOUNT MANAGER
BY:
ACCEPTED FOR THE ADDRESSEE THIS
DAY OF MAY, 1996.
BY:
MAYOR
ATTEST:
CITY MANAGER
WE COMPUTE OUR TOTAL NET INTEREST COST TO BE $ FOR A
NET INTEREST RATE OF %. THESE COMPUTATIONS ARE NOT APART
OF THIS OFFER.
IT IS NOT NECESSARY TO USE THIS FORM; HOWEVER, ANY PROPOSAL MUST
COMPL Y WITH THE TERMS STATED IN THIS OFFICIAL TERMS OF BOND SALE.
PLEASE SUBMIT THIS PROPOSAL IN DUPLICA TE
- 7.3 -
SPECIAL INSTRUCTIONS:
SALE RESULTS WILL BE FURNISHED BIDDERS AT 8:30 A.M. ON DAY AFrER THE
SALE AT 224-1500. IF RESULTS ARE DESIRED IMMEDIATELY, PLEASE COMPLETE
THE FOLLOWING:
CONT ACf:
TELEPHONE NUMBER:
THE UNDERSIGNED HEREBY ACKNOWLEDGES RECEIPT FOR THE GOOD FAITH
CHECK IN THE AMOUNT OF $18,700 TO BE RETURNED TO THE UNSUCCESSFUL
BIDDER.
JURAN & MOODY, INC.
BY:
DATED: MAY 29, 1996
- 74-
PROPOSAL FORM
HONORABLE CITY COUNCIL
CITY OF PRIOR LAKE
PRIOR LAKE, M~SOTA
FOR ALL OF THE $935,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1996,
OF YOUR CITY AS DESCRIBED IN THE OFFICIAL TERMS OF BOND SALE, WE Wll..L
PAY YOU DOLLARS
($ ) (NOT LESS THAN $917,235) PLUS ACCRUED
INTEREST FROM THE DATE OF SAID BONDS TO THE DATE OF DELIVERY.
SAID BONDS SHALL BEAR INTEREST PAYABLE JUNE 1, 1997, AND SEMIANNUALLY
EACH DECEMBER 1 AND JUNE 1 THEREAFfER AS FOLLOWS:
DATED: MAY 29, 1996
_% - 1997 _% - 1999 _% - 2001 _% - 2003 % - 2005
_%-1998 _%-2000 _%-2002 _%-2004 _%-2006
DESIGNA TION OF SERIAL AND TERM MATURITIES
LAST YEAR OF SERIAL MATURITIES
YEAR OF TERM MATURITIES
PRINCIPAL WILL BE PAYABLE AT FIRST TRUST NATIONAL ASSOCIATION, ST.
PAUL, MINNESOTA. CUSIP NUMBERS WILL BE ISSUED AT THE COST OF THE
SUCCESSFUL UNDERWRITER.
THIS PROPOSAL IS FOR PROMPT ACCEPTANCE AND SUBJECT TO ALL TERMS IN
THE OFFICIAL NOTICE OF SALE. WE ARE TO BE FURNISHED THE APPROVING
LEGAL OPINION OF BOND COUNSEL, TOGETHER WITH THE DELIVERY OF THE
BONDS, WITHIN 40 DAYS AFrER AWARD OR AT OUR OPTION THEREAFTER.
DELIVERY WILL BE MADE AT
(SPECIAL INSTRUCI10NS-SEE OVER)
ACCOUNT MEMBERS:
ACCOUNT MANAGER
BY:
ACCEPTED FOR THE ADDRESSEE THIS
DAY OF MAY, 1996.
BY:
MAYOR
ATIEST:
CITY MANAGER
---------------------------------.----------------------------------
WE COMPUTE OUR TOTAL NET INTEREST COST TO BE $ FOR A
NET INTEREST RATE OF %~ THESE COMPUTATIONS ARE NOT A PART
OF THIS OFFER.
IT IS NOT NECESSARY TO USE THIS FORM; HOWEVER, ANY PROPOSAL MUST
COMPL Y WITH THE TERMS STATED IN THIS OFFICIAL TERMS OF BOND SALE.
PLEASE SUBMIT THIS PROPOSAL IN DUPLICA TE
- 73 -
SPECIAL INSTRUcrIONS:
SALE RESULTS WILL BE FURNISHED BIDDERS AT 8:30 A.M. ON DAY AFfER THE
SALE AT 224-1500. IF RESULTS ARE DESIRED IMMEDIATELY, PLEASE COMPLETE
THE FOLLOWING:
CaNT ACf:
TELEPHONE NUMBER:
-------------------------------------------------------------------
THE UNDERSIGNED HEREBY ACKNOWLEDGES RECEIPT FOR THE GOOD FAITH
CHECK IN THE AMOUNT OF $18,700 TO BE RETURNED TO THE UNSUCCESSFUL
BIDDER.
JURAN & MOODY, INC.
BY:
DATED: MAY 29, 1996
- 74-
"
,
[[i]
JURAN & MOODY, INC.
INVESTMENT SECURITIES SINCE 1939
SAINT PAUL, MN 55101.2091
Minnesota Mutual life Center
400 North Robert Street, Suite 800
(612) 224-1500
(800) 950-4666
Fax: (612) 224-1524
MINNEAPOLIS, MN S5402.33OO
130 International Centre
900 Second A venue South
(612) 339-8100
(800) 950-4666
Fax: (612) 339-2019
HOUSTON, TX 77027.9008
1177 West Loop South
Suite 1850.
(713) 961-1882
(800) 950-5444
Fax: (713) 961-0962
CLEARWATER, FL 34619-1035
Two Prestise. Place
2650 McConnick Drive, Suite 150
(813) 791-8897
(800) 950-2055
Fax: (813) 725-9973
AWARD:
DATE OF SALE:
MOODY'S RATING:
TABULATION OF BIDS
CITY OF PRIOR LAKE. MINNESor A
$935,000
GENERAL OBUGATION IMPROVEMENT BONDS OF 1996
FBS INVESTMENT SERVICES, INC.
WEDNESDAY, MAY 29. 1996
A
BIDDER
INrEREST RATE
NET INTEREST COST
(RATE)
FBS INVESTMENT SERVICES. INC. 4.00% - 1997
4.15% - 1998
4.25% - 1999
4.40% - 2000
4.55% - 200 1
4.65% - 2002
4.75% - 2003
4.90% - 2004/06
PURCHASE PRICE: $925.257.30
294.292.70 /
(4.8865%) v
JOHN G. KINNARD & CO. 4.00% - 1997
AMERICAN NATIONAL BANK. ST. PAUL) JT. MGR. 4.20% - 1998
4.40% - 1999
4.50% - 2000/02
4.75% - 2003106
PURCHASE PRICE: $918.649.95
DOUGHERTY. DAWKINS. STRAND 4.00% - 1997
& BIGELOW 4.20% - 1998
4.40% - 1999
4.50% - 2000
4.60% - 2001
4.70% - 2002103
4.80% - 2004
4.90% - 2005/06
PURCHASE PRICE: $923.197.45
NORWEST INVESTMENT SERVICES. INC 4.00% - 1997
4.20% - 1998
4.35% - 1999
4.50% - 2000
4.60% - 2001
4.70% - 2002
4.80% - 2003
4.90% - 2004
5.00% - 2005
5.10% - 2006
PURCHASE PRICE: $925.650.00
$295.826.30
(4.9120%)
$296.537.55
(4.9238%)
$299.152.50
(4.9672%)
(Continued)
CITY OF PRIOR LAKE, MINNESOr A
$935,000 GENERAL OBUGATION IMPROVEMENT BONDS OF 1996
PAGE 2
CRONIN & CO., INC.
4.00% - 1997
4.20% - 1998
4.30% - 1999
4.40% - 2000
4.50% - 2001
4.60% - 2002
4.75% - 2003
5 .()O% - 2004/06
PURCHASE PRICE: $919,125.05
$303,299.95
(5.0361%)
DAIN BOSWORnI INCORPORATED
4.00% - 1997
4.25% - 1998
4.35% - 1999
4.50% - 2000
4.60% - 2001
4.70% - 2002
4.80% - 2003
4.90% - 2004
5.00% - 2005
5.10% - 2006
PURCHASE PRICE: $917,235.00
$307,661.25
(5.1085%)
MINNESOTA MUNICIPAL BOND SALES
MA Y 1996
DAlE MA 1URITY MUNICIPALITY AMOUNT TYPE RATING NIC
5- 6 20 Benidji $ 330,000 G.O. Tax Increment NR 5.89
5- 6 16 Winthrop 500,000 G.O. Bonds NR 5.74
5- 6 16 Austin 1,875,000 G.O. Improvement, Sere 96A A 1 5.41
5- 7 20 Foley 405,000 G.O. Improvement NR 5.82
5- 7 20 State of Minnesota 210,000,000 G.O. Bonds Aaa 5.39
5- 7 17 Becker 1,010,000 G.O. Improvement A 5.52
5- 7 12 Golden Valley 1,050,000 G.O. Improvement Aal 4.95
5- 15 16 Cottage Grove 4,100,000 G.O. Improvement Aaa 5.31
FSA
5- 20 18 County of Ramsey 17,570,000 G.O. Improvement Aaa 5.38
5- 20 20 Wells 1,500,000 G.O. Improvement NR 5.66
5- 21 16 Andover 2,055,000 G.O. Tax Increment A 5.31
5- 21 5 Andover 1,220,000 G.O. Crossover Refunding A 4.48
5- 21 10 Andover 600,000 G.O. Improvement A 4.88
5- 21 10 Springfield 800,000 G.O. Improvement NR 4.96
5- 28 19 Belgrade EDA 860,000 G.O. Housing Development NR 5.83
5- 29 10 Prior Lake 935,000 G.O. Improvement A 4.88
JURAN & MOODY, INC.
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