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G t� Colin M e m o r and u m
To: Mayor Hicks & City Councilmembers
From: Charlene Stark
Date: August 27 2010
Item: Resolution- Setting Bond Sale Date
Council Action Requested:
Council action to set th e bored sale date for two bored issues. G.O. Improvement Bonds and
Equipment Certificates. The bond date. will be October ” 2010.
Ba ckground Inform tion;
This is the annual issuance of bonds to finance the road construction p or dered in earlier
this gear. "I mis' is also the issuance of b Onds t o finance equipment approved in the 20 10 budget.
Financial Impact:
Attached is the debt management analysis
Advisory Commission Discussion:
TA
Council Committee Discussion:
NA
Attachments:
0 Resolution prepared b
• Debt Management analy is
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EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF HASTINGS, MINNESOTA
HELD: September 7, 2010
Pursuant to due call and notice thereof, a regular meeting of the City Council of
the City of Hastings, Dakota and Washington Counties, Minnesota, was duly held at the City
Hall in said City on the 7th day of September, 2010 at 7:00 o'clock P.M. for the purpose in part
of authorizing the competitive negotiated sale of the $1,185,000 General Obligation
Improvement Bonds, Series 2010B of said City.
The following members were present:
and the following were absent:
adoption:
Member
introduced the following resolution and moved its
RESOLUTION PROVIDING FOR THE COMPETITIVE NEGOTIATED
SALE OF $1,18500
GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 2010B
A. WHEREAS, the City Council of the City of Hastings, Minnesota, has
heretofore determined that it is necessary and expedient to issue its $1,185,000 General
Obligation Improvement Bonds, Series 2010B (the "Bonds ") to finance various improvement
projects in the City; and
B. WHEREAS, the City has retained Springsted Incorporated, in Saint Paul,
Minnesota ("Springsted"), as its independent financial advisor in connection with the issuance of
the Bonds and is therefore authorized to sell these obligations by a competitive negotiated sale in
accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Hastings, Minnesota, as follows:
1. Authorization; Findings The City Council hereby authorizes Springsted to solicit
bids for the competitive negotiated sale of the Bonds.
2. Meeting; Bid Opening This City Council shall meet at the time and place
specified in the Terms of Proposal attached hereto as Exhibit A for the purpose of considering
sealed bids for, and awarding the sale of, the Bonds. The Administrator, or his designee, shall
open bids at the time and place specified in such Terms of Proposal.
3. Terms of Proposal The terms and conditions of the Bonds and the negotiation
thereof are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby
approved and made a part hereof.
z6807z1vl
4. Official Statement In connection with said competitive negotiated sale, the
Administrator and other officers or employees of the City are hereby authorized to cooperate
with Springsted and participate in the preparation of an official statement for the Bonds, and to
execute and deliver it on behalf of the City upon its completion.
The motion for the adoption of the foregoing resolution was duly seconded by
member and, after full discussion thereof and upon a vote being taken
thereon, the following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and adopted.
2
2680721v1
STATE OF MINNESOTA
COUNTIES OF DAKOTA AND WASHINGTON
CITY OF HASTINGS
I, the undersigned, being the duly qualified and acting Clerk of the City of
Hastings, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing
extract of minutes with the original thereof on file in my office, and that the same is a full, true
and complete transcript of the minutes of a meeting of the City Council of said City, duly called
and held on the date therein indicated, insofar as such minutes relate to providing for the sale of
the City's $1,185,000 General Obligation Improvement Bonds, Series 2010B.
WITNESS my hand this day of September, 2010.
Clerk
3
2680721v1
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$1
CITY OF HASTINGS, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2010B
(BOOK ENTRY ONLY)
Proposals for the Bonds and the Good Faith Deposit ( "Deposit ") will be received on Monday,
October 4, 2010, until 10:30 A.M., Central Time, at the offices of Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals will be opened
and tabulated. Consideration for award of the Bonds will be by the City Council at 7:00 P.M.,
Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the
time of sale specified above. All bidders are advised that each Proposal shall be deemed to
constitute a contract between the bidder and the City to purchase the Bonds regardless of the
manner in which the Proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax
(651)223-3046 to Springsted. Signed Proposals, without final price or coupons, may be
submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting
to Springsted the final Proposal price and coupons, by telephone (651) 223 -3000 or fax
(651) 223 -3046 for inclusion in the submitted Proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via
PARITY . For purposes of the electronic bidding process, the time as maintained by PARITY
shall constitute the official time with respect to all Bids submitted to PARITY Each bidder shall
be solely responsible for making necessary arrangements to access PARITY for purposes of
submitting its electronic Bid in a timely manner and in compliance with the requirements of the
Terms of Proposal. Neither the City, its agents nor PARITY shall have any duty or obligation to
undertake registration to bid for any prospective bidder or to provide or ensure electronic access
to any qualified prospective bidder, and neither the City, its agents nor PARITY shall be
responsible for a bidder's failure to register to bid or for any failure in the proper operation of, or
have any liability for any delays or interruptions of or any damages caused by the services of
PARITY . The City is using the services of PARITY solely as a communication mechanism to
conduct the electronic bidding for the Bonds, and PARITY is not an agent of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY this
Terms of Proposal shall control. Further information about PARITY including any fee charged,
may be obtained from:
PARITY 1359 Broadway, 2 nd Floor, New York, New York 10018
Customer Support: (212) 849 -5000
* Preliminary, subject to change.
DETAILS OF THE BONDS
The Bonds will be dated November 1, 2010, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing August 1, 2011. Interest will be
computed on the basis of a 360 -day year of twelve 30 -day months.
The Bonds will mature February 1 in the years and amounts* as follows:
2013 $120 2015 $115 2017 $115 2019 $120 2021 $120
2014 $120 2016 $115 2018 $120 2020 $120 2022 $120
The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Bonds or the maturity amounts offered for sale. Any such increase or
reduction will be made in multiples of $5, 000 in any of the maturities. In the event the principal
amount of the Bonds is increased or reduced, any premium offered or any discount taken by the
successful bidder will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Bonds is increased or reduced.
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption at
a price of par plus accrued interest to the date of redemption and must conform to the maturity
schedule set forth above. In order to designate term bonds, the proposal must specify "Years of
Term Maturities" in the spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company ( "DTC "),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2020, and on any day thereafter, to prepay Bonds due on or
after February 1, 2021. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be
prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to
be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition, the City will pledge special
assessments against benefited properties. The proceeds will be used to finance various
improvement projects throughout the City.
BIDDING PARAMETERS
Proposals shall be for not less than $1,175,520 and accrued interest on the total principal
amount of the Bonds.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made. Rates shall be in integral multiples
of 5/100 or 1/8 of 1%. Rates are not required to be in level or ascending order; however, the
rate for any maturity cannot be more than 1% lower than the highest rate of any of the
preceding maturities. Bonds of the same maturity shall bear a single rate from the date of the
Bonds to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
Proposals, regardless of method of submission, shall be accompanied by a Deposit in the
amount of $11,850, in the form of a certified or cashier's check, a wire transfer, or Financial
Surety Bond and delivered to Springsted Incorporated prior to the time proposals will be
opened. Each bidder shall be solely responsible for the timely delivery of their Deposit whether
by check, wire transfer or Financial Surety Bond. Neither the City nor Springsted Incorporated
have any liability for delays in the transmission of the Deposit.
Any Deposit made by certified or cashier's check should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota
55101.
Any Deposit sent via wire transfer should be sent to Springsted Incorporated as the City's
agent according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
For credit to Springsted Incorporated, Account #635- 5007954
Contemporaneously with such wire transfer, the bidder shall send an e -mail to
bond services @springsted.com, including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies,
and (iv) the return wire instructions if such bidder is not awarded the Bonds.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the City
following the award of the Bonds. Any Deposit made by check or wire transfer by an
unsuccessful bidder will be returned to such bidder following City action relative to an award of
the Bonds.
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 pre- approved by the City. Such bond must be
submitted to Springsted Incorporated prior to the opening of the proposals. The Financial
Surety Bond must identify each underwriter whose Deposit is guaranteed by such Financial
Surety Bond. If the Bonds are awarded to an underwriter using a Financial Surety Bond, then
that underwriter is required to submit its Deposit to the City in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time on the next business day following the award. If such Deposit is not received by that time,
the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement,
will be deposited by the City and no interest will accrue to the purchaser. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non - substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and (iii) reject any proposal that the City determines to have failed to comply with
the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser through DTC in New York, New York. Delivery will be subject to receipt by the
purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of
Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-
litigation certificate. On the date of settlement, payment for the Bonds shall be made in federal,
or equivalent, funds that shall be received at the offices of the City or its designee not later than
12:00 Noon, Central Time. Unless compliance with the terms of payment for the Bonds has
been made impossible by action of the City, or its agents, the purchaser shall be liable to the
City for any loss suffered by the City by reason of the purchaser's non - compliance with said
terms for payment.
- iv -
CONTINUING DISCLOSURE
On the date of actual issuance and delivery of the Bonds, the City will execute and deliver a
Continuing Disclosure Undertaking (the "Undertaking ") whereunder the City will covenant for the
benefit of the owners of the Bonds to provide certain financial and other information about the
City and notices of certain occurrences to information repositories as specified in and required
by SEC Rule 15c2- 12(b)(5).
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent information
relative to the Bonds, and said Official Statement will serve as a nearly final Official Statement
within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission. For copies of
the Official Statement or for any additional information prior to sale, any prospective purchaser
is referred to the Financial Advisor to the City, Springsted Incorporated, 380 Jackson Street,
Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223 -3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2 -12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 50 copies of the
Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring
the receipt by each such Participating Underwriter of the Final Official Statement.
Dated September 7, 2010
BY ORDER OF THE CITY COUNCIL
/s/ Melanie Mesko Lee
City Clerk
-v -
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
HASTINGS, MINNESOTA
HELD: September 7, 2010
Pursuant to due call and notice thereof, a regular meeting of the City Council of
the City of Hastings, Dakota and Washington Counties, Minnesota, was duly held at the City
Hall, in said City on the 7th day of September, 2010, at 7:00 o'clock P.M. for the purpose in part
of authorizing the competitive negotiated sale of $285,000 General Obligation Equipment
Certificates of Indebtedness, Series 2010C of said City.
The following members were present:
and the following were absent:
adoption:
Member
introduced the following resolution and moved its
RESOLUTION PROVIDING FOR THE
COMPETITIVE NEGOTIATED SALE OF $285,000 GENERAL
OBLIGATION EQUIPMENT CERTIFICATES OF INDEBTEDNESS, SERIES 2010C
A. WHEREAS, the City Council of the City of Hastings, Minnesota, has
heretofore determined that it is necessary and expedient to issue its $285,000 General Obligation
Equipment Certificates of Indebtedness, Series 2010C (the "Certificates ") to finance the
acquisition of equipment for City purposes; and
B. WHEREAS, the City has retained Springsted Incorporated, in Saint Paul,
Minnesota ("Springsted"), as its independent financial advisor in connection with the issuance of
the Certificates and is therefore authorized to sell these obligations by a competitive negotiated
sale in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9); and
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Hastings, Minnesota, as follows:
1. Authorization; Findings The City Council hereby authorizes Springsted to solicit
bids for the competitive negotiated sale of the Certificates.
2. Meeting; Bid Opening This City Council shall meet at the time and place specified in
the Terms of Proposal attached hereto as Exhibit A for the purpose of considering sealed bids
for, and awarding the sale of, the Certificates. The Administrator or his designee, shall open bids
at the time and place specified in such Terms of Proposal.
26807 19v l
3. Terms of Proposal The terms and conditions of the Certificates and the negotiation
thereof are fully set forth in the "Terms of Proposal" attached hereto as Exhibit A and hereby
approved and made a part hereof.
4. Official Statement In connection with said competitive negotiated sale, the
Administrator and other officers or employees of the City are hereby authorized to cooperate
with Springsted and participate in the preparation of an official statement for the Certificates, and
to execute and deliver it on behalf of the City upon its completion.
The motion for the adoption of the foregoing resolution was duly seconded by
member and, after a full discussion thereof and upon a vote being taken
thereon, the following voted in favor thereof:
and the following against the same:
Whereupon said resolution was declared duly passed and adopted.
0)
26807 19v l
STATE OF MINNESOTA
COUNTIES OF DAKOTA AND WASHINGTON
CITY OF HASTINGS
I, the undersigned, being the duly qualified and acting Clerk of the City of Hastings,
Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that the same is a full, true and
complete transcript of the minutes of a meeting of the City Council of said City, duly called and
held on the date therein indicated, insofar as such minutes relate to the sale of the City's
$285,000 General Obligation Equipment Certificates of Indebtedness, Series 2010C.
WITNESS my hand this day of September, 2010.
Clerk
3
26807 19v l
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS
ISSUE ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$285,000
CITY OF HASTINGS, MINNESOTA
GENERAL OBLIGATION CERTIFICATES OF INDEBTEDNESS, SERIES 2010C
(BOOK ENTRY ONLY)
Proposals for the Certificates and the Good Faith Deposit ( "Deposit ") will be received on
Monday, October 4, 2010, until 10:30 A.M., Central Time, at the offices of Springsted
Incorporated, 380 Jackson Street, Suite 300, Saint Paul, Minnesota, after which time proposals
will be opened and tabulated. Consideration for award of the Certificates will be by the City
Council at 7:00 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the
time of sale specified above. All bidders are advised that each Proposal shall be deemed to
constitute a contract between the bidder and the City to purchase the Certificates regardless of
the manner in which the Proposal is submitted.
(a) Sealed Bidding. Proposals may be submitted in a sealed envelope or by fax
(651)223-3046 to Springsted. Signed Proposals, without final price or coupons, may be
submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting
to Springsted the final Proposal price and coupons, by telephone (651) 223 -3000 or fax
(651) 223 -3046 for inclusion in the submitted Proposal.
OR
(b) Electronic Bidding. Notice is hereby given that electronic proposals will be received via
PARITY . For purposes of the electronic bidding process, the time as maintained by PARITY
shall constitute the official time with respect to all Bids submitted to PARITY Each bidder shall
be solely responsible for making necessary arrangements to access PARITY for purposes of
submitting its electronic Bid in a timely manner and in compliance with the requirements of the
Terms of Proposal. Neither the City, its agents nor PARITY shall have any duty or obligation to
undertake registration to bid for any prospective bidder or to provide or ensure electronic access
to any qualified prospective bidder, and neither the City, its agents nor PARITY shall be
responsible for a bidder's failure to register to bid or for any failure in the proper operation of, or
have any liability for any delays or interruptions of or any damages caused by the services of
PARITY . The City is using the services of PARITY solely as a communication mechanism to
conduct the electronic bidding for the Certificates, and PARITY is not an agent of the City.
If any provisions of this Terms of Proposal conflict with information provided by PARITY this
Terms of Proposal shall control. Further information about PARITY including any fee charged,
may be obtained from:
PARITY 1359 Broadway, 2 nd Floor, New York, New York 10018
Customer Support: (212) 849 -5000
Preliminary, subject to change.
DETAILS OF THE CERTIFICATES
The Certificates will be dated November 1, 2010, as the date of original issue, and will bear
interest payable on February 1 and August 1 of each year, commencing August 1, 2011.
Interest will be computed on the basis of a 360 -day year of twelve 30 -day months.
The Certificates will mature February 1 in the years and amounts* as follows:
2012 $55 2013 $55 2014 $55 2015 $60 2016 $60
The City reserves the right, after proposals are opened and prior to award, to increase or reduce the
principal amount of the Certificates or the maturity amounts offered for sale. Any such increase or
reduction will be made in multiples of $5, 000 in any of the maturities. In the event the principal
amount of the Certificates is increased or reduced, any premium offered or any discount taken by the
successful bidder will be increased or reduced by a percentage equal to the percentage by which the
principal amount of the Certificates is increased or reduced.
Proposals for the Certificates may contain a maturity schedule providing for a combination of
serial bonds and term bonds. All term bonds shall be subject to mandatory sinking fund
redemption at a price of par plus accrued interest to the date of redemption and must conform to
the maturity schedule set forth above. In order to designate term bonds, the proposal must
specify "Years of Term Maturities" in the spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Certificates will be issued by means of a book entry system with no physical distribution of
Certificates made to the public. The Certificates will be issued in fully registered form and one
Certificate, representing the aggregate principal amount of the Certificates maturing in each
year, will be registered in the name of Cede & Co. as nominee of The Depository Trust
Company ( "DTC "), New York, New York, which will act as securities depository of the
Certificates. Individual purchases of the Certificates may be made in the principal amount of
$5,000 or any multiple thereof of a single maturity through book entries made on the books and
records of DTC and its participants. Principal and interest are payable by the registrar to DTC
or its nominee as registered owner of the Certificates. Transfer of principal and interest
payments to participants of DTC will be the responsibility of DTC; transfer of principal and
interest payments to beneficial owners by participants will be the responsibility of such
participants and other nominees of beneficial owners. The purchaser, as a condition of delivery
of the Certificates, will be required to deposit the Certificates with DTC.
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The Certificates will not be subject to payment in advance of their respective stated maturity
dates.
SECURITY AND PURPOSE
The Certificates will be general obligations of the City for which the City will pledge its full faith
and credit and power to levy direct general ad valorem taxes. The proceeds will be used to
finance the acquisition of equipment for City purposes.
BIDDING PARAMETERS
Proposals shall be for not less than $279,585 and accrued interest on the total principal amount
of the Certificates.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Certificates is adjourned, recessed, or continued
to another date without award of the Certificates having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1%. Rates are not required to be in level or ascending order;
however, the rate for any maturity cannot be more than 1% lower than the highest rate of any of
the preceding maturities. Certificates of the same maturity shall bear a single rate from the date
of the Certificates to the date of maturity. No conditional proposals will be accepted.
GOOD FAITH DEPOSIT
Proposals, regardless of method of submission, shall be accompanied by a Deposit in the
amount of $2,850, in the form of a certified or cashier's check, a wire transfer, or Financial
Surety Certificate and delivered to Springsted Incorporated prior to the time proposals will be
opened. Each bidder shall be solely responsible for the timely delivery of their Deposit whether
by check, wire transfer or Financial Surety Certificate. Neither the City nor Springsted
Incorporated have any liability for delays in the transmission of the Deposit.
Any Deposit made by certified or cashier's check should be made payable to the City and
delivered to Springsted Incorporated, 380 Jackson Street, Suite 300, St. Paul, Minnesota
55101.
Any Deposit sent via wire transfer should be sent to Springsted Incorporated as the City's
agent according to the following instructions:
Wells Fargo Bank, N.A., San Francisco, CA 94104
ABA #121000248
For credit to Springsted Incorporated, Account #635- 5007954
Contemporaneously with such wire transfer, the bidder shall send an e-mail to
bond services @springsted.com, including the following information; (i) indication that a wire
transfer has been made, (ii) the amount of the wire transfer, (iii) the issue to which it applies,
and (iv) the return wire instructions if such bidder is not awarded the Certificates.
Any Deposit made by the successful bidder by check or wire transfer will be delivered to the City
following the award of the Certificates. Any Deposit made by check or wire transfer by an
unsuccessful bidder will be returned to such bidder following City action relative to an award of
the Certificates.
If a Financial Surety Certificate is used, it must be from an insurance company licensed to
issue such a bond in the State of Minnesota and pre- approved by the City. Such bond must be
submitted to Springsted Incorporated prior to the opening of the proposals. The Financial
Surety Certificate must identify each underwriter whose Deposit is guaranteed by such Financial
Surety Certificate. If the Certificates are awarded to an underwriter using a Financial Surety
Certificate, then that underwriter is required to submit its Deposit to the City in the form of a
certified or cashier's check or wire transfer as instructed by Springsted Incorporated not later
than 3:30 P.M., Central Time on the next business day following the award. If such Deposit is
not received by that time, the Financial Surety Certificate may be drawn by the City to satisfy the
Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement,
will be deposited by the City and no interest will accrue to the purchaser. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
The Certificates will be awarded on the basis of the lowest interest rate to be determined on a
true interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non - substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Certificates, (ii) reject all proposals
without cause, and (iii) reject any proposal that the City determines to have failed to comply with
the terms herein.
CUSIP NUMBERS
If the Certificates qualify for assignment of CUSIP numbers such numbers will be printed on the
Certificates, but neither the failure to print such numbers on any Certificate nor any error with
respect thereto will constitute cause for failure or refusal by the purchaser to accept delivery of
the Certificates. The CUSIP Service Bureau charge for the assignment of CUSIP identification
numbers shall be paid by the purchaser.
SETTLEMENT
Within 40 days following the date of their award, the Certificates will be delivered without cost to
the purchaser through DTC in New York, New York. Delivery will be subject to receipt by the
purchaser of an approving legal opinion of Briggs and Morgan, Professional Association, of
Saint Paul and Minneapolis, Minnesota, and of customary closing papers, including a no-
litigation certificate. On the date of settlement, payment for the Certificates shall be made in
federal, or equivalent, funds that shall be received at the offices of the City or its designee not
later than 12:00 Noon, Central Time. Unless compliance with the terms of payment for the
Certificates has been made impossible by action of the City, or its agents, the purchaser shall
be liable to the City for any loss suffered by the City by reason of the purchaser's non-
compliance with said terms for payment.
CONTINUING DISCLOSURE
On the date of actual issuance and delivery of the Certificates, the City will execute and deliver
a Continuing Disclosure Undertaking (the "Undertaking ") whereunder the City will covenant for
the benefit of the owners of the Certificates to provide certain financial and other information
about the City and notices of certain occurrences to information repositories as specified in and
required by SEC Rule 15c2- 12(b)(5).
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent information
relative to the Certificates, and said Official Statement will serve as a nearly final Official
Statement within the meaning of Rule 15c2 -12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
380 Jackson Street, Suite 300, Saint Paul, Minnesota 55101, telephone (651) 223 -3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Certificates, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Certificates, as that term is defined in Rule 15c2 -12. By awarding the Certificates to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Certificates are awarded 10 copies of
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the Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Certificates are awarded as its agent
for purposes of distributing copies of the Final Official Statement to each Participating
Underwriter. Any underwriter delivering a proposal with respect to the Certificates agrees
thereby that if its proposal is accepted by the City (i) it shall accept such designation and (ii) it
shall enter into a contractual relationship with all Participating Underwriters of the Certificates for
purposes of assuring the receipt by each such Participating Underwriter of the Final Official
Statement.
Dated September 7, 2010
BY ORDER OF THE CITY COUNCIL
/s/ Melanie Mesko Lee
City Clerk
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City of Hastings
Key Financial, Economic, and [Debt Ratios
201 0 New
02/01/2010 201 O New C". C).
As of After Equipment Improvement
Limit 12/31/2009 Feb Payments Certificates Bonds
Total annual debt service for G.O.
will not exceed 35% of total
budgeted expenditures.
Annual GO 201 0 [Debt Service Payment 8,805,172 3,807,933
Preliminary 201 1 Budget 8,941,138 4,953,109
Percentage Rate -2010
Percentage Rate -201 1
Net Bonded debt outstanding will not
exceed (3.5 %) of Assessor's Market
Value of taxable property
28,415,000
Maximum debt outstanding limit 64,548,876.0
Assessor's Market Value (08 /pay 09) -Final 1,844,253,C>00
Percentage 3.500% 1 .541
25,425, 000 25,188,000 26, 373, 000
1 .379% 1 .366% 1 .430%
Maximum debt outstanding limit
60,859,351
Assessor's Market Value (09 /pay 1 0)- Preliminary
1,738,838,E500
Percentage
3.500% 1 .634%
1 .462%
1 _449%
1 .51 7%
bonded debt will not exceed
1 Gross
$1,800 per capita.
Outstanding debt (G.O.)
28,41 5,000
25,425,000
25,188,000
26,373,000
Population 2007/08 estimated
22,500
22,500
22,500
22,500
$ \/alue
1 ,262'.89
1 , 1 30.00
1,119-47
1 , 172.1 3