HomeMy WebLinkAboutCC PACKET 03122002 Meeting Sheet
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102959
Box: 29
Folder: CC PACKETS 2001-2004
Document: CC PACKET 03122002
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APPENDIX II
3. Interest on the Bonds (a)is not includable in gross income for federal income tax CONTINUING DISCLOSURE COVENANTS
purposes or in taxable net income of individuals, estates or trusts for Minnesota income tax
purposes; (b) is includable in taxable income of corporations and financial institutions for In order to permit bidders for the Bonds and other participating underwriters
in the
purposes of the Minnesota franchise tax; (c)is not an item of tax preference includable in
alternative minimum taxable income for purposes of the federal alternative minimum tax primary offering of the Bonds to comply with paragraph(b)(5) of Rule 15c2-12 promulgated
by
applicable to all taxpayers or the Minnesota alternative minimum tax applicable to individuals, the Securities and Exchange Commission under the Securities Exchange Act of
1934 (as in effect
estates and trusts; and (d) is includable in adjusted current earnings of corporations in and interpreted from time to time,the "Rule"), the City will covenant and agree in
the Bond
determining alternative minimum taxable income for purposes of the federal alternative Resolutions, for the benefit of the Owners (as hereinafter defined)from time to time
of any
minimum tax imposed on corporations.
Bonds which are Outstanding, to provide annual reports of specified information and notice of
the occurrence of certain events, if material, as hereinafter described (the "Disclosure
4. The City has designated the Bonds as "qualified tax-exempt obligations" within the r Covenants"). The City is the only"obligated person"in respect of the Bonds within
the meaning
meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the "Code"), of the Rule for purposes of identifying the entities in respect of which continuing
disclosure must
and, financial institutions described in Section 265(b)(5) of the Code may treat the Bonds for be made. The City has complied in all material respects with any undertaking previously
entered
purposes of Section 265(b)(2) and 291(e)(1)(B) of the Code as if they were acquired on August 7, into by it under the Rule.
1986.
Breach of the Disclosure Covenants will not constitute a default under the Bond
The opinions expressed in paragraphs 1 and 2 are subject as to enforceability to the effect Resolutions or the Bonds. A broker or dealer is to consider a known breach of
the Disclosure
of any state or federal laws relating to bankruptcy, insolvency,reorganization, moratorium or Covenants,however,before recommending the purchase or sale of Bonds in the secondary
creditors'rights and the exercise of judicial discretion. market. Thus, a failure on the part of the City to observe the Disclosure Covenants may
adversely affect the transferability and liquidity of the Bonds and their market price.
The opinions set forth in paragraphs 3 and 4 are subject to the condition that the City
comply with all the requirements of the Code that must be satisfied subsequent to the issuance of As used herein, "Owner"or"Bondowner" means,in respect of a Bond, the registered
the Bonds in order that interest thereon be, or continue to be,excluded from gross income for holder or holders thereof appearing in the bond register maintained by the Registrar
or any
federal income tax purposes, and the Bonds be and continue to be qualified tax-exempt "Beneficial Owner" (as hereinafter defined) thereof,if such Beneficial Owner provides to
the
obligations. The City has covenanted in the resolution authorizing the issuance of the Bonds to Registrar evidence of such beneficial ownership in form and substance reasonably
satisfactory to
comply with these continuing requirements. Failure of the City to comply with these the Registrar. As used herein, "Beneficial Owner"means, in respect of a Bond, any person
or
requirements may result in the inclusion of interest on the Bonds in federal gross income and in entity which (i) has the power,directly or indirectly, to vote or consent
with respect to,or to
Minnesota taxable net income,retroactive to the date of issuance of the Bonds. Except as stated dispose of ownership of, such Bond (including persons or entities holding Bonds
through
in this opinion, we express no opinion regarding federal, state or other tax consequences to nominees,depositories or other intermediaries), or(b)is treated as the owner of
the Bond for
owners of the Bonds. federal income tax purposes.
We have not been asked, and have not undertaken, to review the accuracy, completeness As used herein, a"Material Fact"is a fact as to which a substantial likelihood
exists that a
or sufficiency of any offering materials relating to the Bonds,and accordingly, we express no reasonably prudent investor would attach importance thereto in deciding to buy, hold
or sell a
opinion with respect thereto. Bond or, if not disclosed, would significantly alter the total information otherwise available to an
investor from the Official Statement, information disclosed under the Disclosure Covenants or
Dated: March , 2001. information generally available to the public. Notwithstanding the foregoing sentence, a
` "Material Fact" is also an event that would be deemed"material" for purposes of the purchase,
Very truly yours, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted
at the time of discovery of the occurrence of the event.
i
Information To Be Disclosed
The City will provide, in the manner set forth under"Manner of Disclosure" below, either
directly or indirectly through an agent designated by the City, the following information at the
following times:
1-2
II-1
APPENDIX I
Annual Information PROPOSED FORM OF LEGAL OPINION
As soon as available,but not later than 365 days after the end of each fiscal year of the
City, commencing with the fiscal year ending December 31, 2001, the following financial
information and operating data(the"Disclosure Information"): D O R S E Y & WHITNEY L L P
(A) The audited financial statements of the City for such fiscal year,
MINNEAPOLIS
accompanied by the audit report and opinion of the accountant or government U IRK SUITE 1500 COSTA MESA
1 NGW YKIC 7U SOUTH $U{TH STIi EC-T nu.l INU.
auditor relating thereto, as permitted or required by the laws of the State of SEATTLE FARGO
MINNEAPOLIS, MINNESOTA 554U_ 1496
.
Minnesota, hich financial statements shall contain balance sheets as of the DENVER 340.2600 ""NG KONG
a, TELEPHONE: (G1_)
WA.HI N(:TON,D.C. (:BEAT FALLS
end of such fiscal year and a statement of operations,changes in fund balances NORTFI P.ICN V1R<:INIA
FAX: (612) :340.2868 ROCIIE.STIiR
and cash flows for the fiscal year then ended, showing in comparative form UL.MU3N L. www.[1Dr.rylaw.coin .,.(,K YO
such figures for the preceding fiscal year of the City, prepared in accordance
LONDON DCIN MI..C) VE
� ANC'H()ILAC:E VANCOUVER
EK
with generally accepted accounting principles promulgated by the Financial .ALT LAKE CITY %HANG;TC'
Accounting Standards Board as modified in accordance with the governmental BRUSSELS SHANGHAI
accounting standards promulgated by the Governmental Accounting Standards
Board or as otherwise provided under Minnesota law, as in effect from time to City of St. Anthony
time,or,if and to the extent such financial statements have not been prepared St. Anthony,Minnesota
in accordance with such generally accepted accounting principles for reasons
beyond the reasonable control of the City, noting the discrepancies therefrom
and the effect thereof, and certified as to accuracy and completeness in all
material respects by the fiscal officer of the City; and
(B) To the extent not included in the financial statements referred to in Re: $1,500,000 General Obligation Improvement Bonds, Series 2002A
paragraph(A)hereof, information of the type set forth below, which City of St. Anthony, Hennepin and Ramsey Counties,Minnesota
information may be unaudited,but is to be certified as to accuracy and Ladies and Gentlemen:
completeness in all material respects by the City's financial officer to the best
of his or her knowledge, which certification may be based on the reliability of As Bond Counsel in connection with the authorization, issuance and sale by the City of
information obtained from governmental or other third party sources: St. Anthony,Hennepin and Ramsey Counties, Minnesota(the "City"), of its General Obligation
City Property Values; City Tax Capacity Rates; and City Tax Improvement Bonds, Series 2002A dated, as originally issued, as of March 1, 2001, in the total
Levies and Collections principal amount of$1,500,000 (the 'Bonds"), we have examined certified copies of certain
proceedings taken, and certain affidavits and certificates furnished,by the City in the
Notwithstanding the foregoing paragraph, if the audited financial statements are not authorization, sale and issuance of the Bonds, including the form of the Bonds. As to questions
available by the date specified,the City shall provide on or before such date unaudited financial of fact material to our opinion we have assumed the authenticity of and
relied upon the
statements in the format required for the audited financial statements as part of the Disclosure proceedings, affidavits and certificates furnished to us without undertaking
to verify the same by
Information and,within 10 days after the receipt thereof,the City shall provide the audited independent investigation. From our examination of such proceedings, affidavits
and
financial statements. certificates, and based upon laws, regulations,rulings and decisions in effect on the date hereof,
it is our opinion that:
f
Any or all of the Disclosure Information may be incorporated, if it is updated as required 1. The Bonds are valid and binding general obligations of the City enforceable
in
by the Disclosure Covenants,by reference from other documents, including official statements. accordance with their terms.
If the document incorporated by reference is a final official statement, it must be available from 2. The principal of and interest on the Bonds are payable from
special assessments
the Municipal Securities Rulemaking Board (the"MSRB"). which the City has levied or agreed to levy on the property specially benefited by the
If any part of the Disclosure Information can no longer be generated because the improvements financed by the issuance of the Bonds and ad valorem taxes levied on all
taxable
operations of the City have materially changed or been discontinued, such Disclosure property in the City, and, to any extent not so paid, from additional ad valorem taxes
required by
Information need no longer be provided if the City includes in the Disclosure Information a law to be levied on all taxable property in the City without limitation of rate
or amount.
II-2 I-1
General Fund Budget statement to such effect; provided,however, if such operations have been replaced by other City
operations in respect of which data is not included in the Disclosure Information and the City
Bud-get d-g 2002 determines that certain specified data regarding such replacement operations would be a Material
Budget Fact, then, from and after such determination, the Disclosure Information shall include such
Revenues:
Property Taxes and Homestead Credit $1,766,475 $2,210,467 additional specified data regarding the replacement operations.
Licenses and Permits 110,050 122,700 If the Disclosure Information is changed or the Disclosure Covenants are amended as
Intergovernmental Revenue(a) 1,301,200 942,545 permitted by the Bond Resolution, then the City is to include in the next Disclosure Information
Charges for Services 100,000 105,000 to be delivered under the Disclosure Covenants, to the extent necessary, an explanation of the
Miscellaneous 142,150 145,788
Transfers 100.000 _ 100,000 reasons for the amendment and the effect of any change in the type of financial information or
' operating data provided.
Total Revenues $3,519,875 $3,626,500
Expenditures: Certain Material Events
General Government $ 915,100 $ 837,600 In a timely anner, notice of the occurrence of an of the following events which is a
Police(b) Y Y g
1,474,800 1,580,400 Material Fact(the "Material Events")
:
Fire 527,975 555,900
Public Works 496,900 543,400
Parks 105.100 109.200 (1) Principal and interest payment delinquencies;
(2) Non-payment related defaults;
Total Expenditures $3,519,875 $3,626,500 (3) Unscheduled draws on debt service reserves reflecting financial
difficulties;
(a) Includes revenues from Lauderdale/Falcon Heights police contracts. (4) Unscheduled draws on credit enhancements reflecting financial
(b) Includes Lauderdale/Falcon Heights Police contract expenses. difficulties;
(5) Substitution of credit or liquidity providers, or their failure to perform;
Employee Pensions (6) Adverse tax opinions or events affecting the tax-exempt status of the
security;
All full-time and certain part-time employees of the City of St. Anthony are covered by defined (7) Modifications to rights of security holders;
benefit pension plans administered by the Public Employees Retirement Association of (8) Bond calls;
Minnesota (PERA). The PERA administers the Public Employees Retirement Fund (PERF) and (9) Defeasances;
the Public Employees Police and Fire Fund (PEPFF) which are cost-sharing multiple-employer (10) Release, substitution, or sale of property securing repayment of the
public employee retirement plans. PERF members belong to either the Coordinated Plan or the securities; and
Basic Plan. Coordinated members are covered by Social Security and Basic members are not.
All new members must participate in the Coordinated Plan. All police officers, fire fighters and (11) Rating changes.
peace officers who qualify for membership by statute are covered by the PEPFF. The City's
contributions for employees covered by PERA for the year ended December 31, 2000, 1999 Certain Other Information
and 1998 were $199,050, $218,135, and $204,546, respectively.
In a timely manner, notice of the occurrence of any of the following events or conditions:
The St. Anthony Firefighters Relief Association is the administrator of a single employer
retirement system established to provide pension and other benefits to its membership in (A) the failure of the City to provide the Disclosure Information at the
accordance with Minnesota Statutes. The Association maintains a separate Special Fund to time specified under"Annual Information" above;
accumulate assets to fund the retirement benefits earned by its membership. Funding of the
Association is derived primarily from an insurance premium tax in accordance with the
Volunteer Firefighter's Relief Association Financing Guidelines Act of 1971. (B) the amendment or supplementing of the Disclosure Covenants
pursuant to the Bond Resolution, together with a copy of such amendment or
supplement and any explanation provided by the City under the Disclosure
Covenants;
(C) the termination of the obligations of the City under the Disclosure
Covenants pursuant to the Bond Resolution;
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I I-3
(D) any change in the accounting principles pursuant to which the GOVERNMENTAL ORGANIZATION AND SERVICES
financial statements constituting a portion of the Disclosure Information [or
the audited financial statements, if any, furnished pursuant to the Disclosure The City has been a municipal corporation since 1946 and is a statutory City operating under
Covenants] are prepared; and the council-manager plan. The City Council is comprised of the Mayor and four Council
members, all elected at large. The current Council members are:
(E) any change in the fiscal year of the City.
Expiration of Term
Manner of Disclosure
' Randy Hodson Mayor December 31, 2003
The City agrees to deliver the information described under"Information To Be Jerome Faust Member December 31, 2003
Richard Horst Member December 31, 2003
Disclosed"above to the following entities by telecopy, overnight delivery, mail or other means,
` Amy Sparks Member December 31, 2003
as appropriate: Brian Thuesen Member December 31, 2005
(1) the information described under"Annual Information" above,to each then nationally The City Manager, Mr. Michael Mornson, is responsible for the daily administration
and
recognized municipal securities information repository under the Rule and to any state operating function of the City and implementation of Council directives. The Finance
Director,
information depository then designated or operated by the State of Minnesota as contemplated by Mr. Roger Larson, Sr., is responsible for maintaining the records and accounts
of the City's
the Rule (the "State Depository"), if any;
operations. The City has a total of 57 full-time employees. The City Clerk is Connie Kroeplin.
(2) the information described under"Certain Material Events" and "Certain Other City Services
Information" above, to the Municipal Securities Rulemalung Board and to the State Depository,
if any; and Protective services are provided by the City through 18 police officers, 7 full-time firefighters,
and 23 volunteer firefighters. The City also provides police services to the cities of Lauderdale
(3) the information described under"Information To Be Disclosed"to any rating agency and Falcon Heights through contract agreement.
then maintaining a rating of the Bonds and, at the expense of such Bondholder, to any St. Anthony's water system is supplied by three wells and has two storage facilities
with total
Bondholder who requests in writing such information, at the time of transmission under clauses capacity of 2,250,000 gallons.
(1)or(2) above, as the case may be, or,if such information is transmitted with a subsequent time
of release, at the time such information is to be released. Interceptor sewer lines and wastewater treatment plants in the seven-county metropolitan area,
of which the City is a part, are under the jurisdiction of the Metropolitan Council Environmental
Terns Services ("MCES"). MCES finances its operations through user charges based on usage. The
City is responsible for the construction and maintenance of sewer laterals.
The Disclosure Covenants shall remain in effect until all Bonds have been paid or
The City owns and operates two municipal liquor stores: one with on- and off-sale and one off-
defeased under the Bond Resolutions. Notwithstanding the preceding sentence, however, the
sale warehouse. The Liquor Fund transfers $100,000 to the General Fund annually.
Disclosure Covenants shall terminate and be without further effect as of any date on which the
City delivers to the Registrar an opinion of Bond Counsel to the effect that,because of legislative
action or final judicial or administrative actions or proceedings, the failure of the City to comply
with the Disclosure Covenants will not cause participating underwriters in the primary offering
of the Bonds to be in violation of the Rule or other applicable requirements of the Securities
Exchange Act of 1934, as amended, or any statutes or laws successory thereto or amendatory
thereof.
Amendments; Interpretation
The Disclosure Covenants (and the form and requirements of the Disclosure Information)
may be amended or supplemented by the City from time to time, without notice to or the consent
of the Owners of any Bonds,by a resolution of the governing body of the City filed with the
Registrar accompanied by an opinion of Bond Counsel, who may rely on certificates of the City
and others and the opinion may be subject to customary qualifications, to the effect that: (i) such
amendment or supplement(a) is made in connection with a change in circumstances that arises
from a change in law or regulation or a change in the identity, nature or status of the City or the
II-4 - 17 -
Labor Force Data type of operations conducted by the City, or(b)is required by, or better complies with, the
December 2001 December 2000 provisions of paragraph (b)(5)of the Rule; (ii) the Disclosure Covenants as so amended or
Civilian Unemployment Civilian Unemployment supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the
Labor Force Rate Labor Force Rate time of the primary offering of the Bonds, giving effect to any change in circumstances
applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time
Hennepin County 674,654 3.3% 667,280 2.0% of the amendment or supplement was in effect at the time of the primary offering; and (iii) such
Ramsey County 288,758 3.2 286,413 2.1 amendment or supplement does not materially impair the interests of the Bondowners under the
St. Paul MSA 1,768,014 3.4 1,751,629 2.1
State of Minnesota 2,809,944 3.7 2,773,643 2.8 Rule. If the Disclosure Information is so amended, the City agrees to provide,
State
contemporaneously with the effectiveness of such amendment, an explanation of the reasons for
Source: Minnesota Department of Economic Security. 2001 data are preliminary. the amendment and the effect,if any, of the change in the type of financial information
or
operating data being provided hereunder.
Summary of City Building Permits The Disclosure Covenants are to be construed so as to satisfy the requirements of
New paragraph (b)(5) of the Rule.
Total Permits Commercial/Industrial Single Family
Year Number Value Number Value Number Value Default; Remedies
2001 313 $ 6,000,195 29 $3,336,270 0 -0- If the City fails to comply with any of the Disclosure Covenants, any person aggrieved
2000 314 4,396,650 32 1,319,550 6 $1,036,000 thereby, including the Owners of any Outstanding Bonds, may take whatever action at law or in
1999 414 4,475,575 19 1,658,825 0 -0- equity may appear necessary or appropriate to enforce performance and observance of any such
1998 256 5,761,050 28 4,589,250 8 1,171,800 covenant. Direct, indirect, consequential and punitive damages shall not be recoverable, -
1997 302 9,953,478 57 6,453,578 0
1996 226 10,496,600 45 8,542,400' 6 900,000 however, for any default thereunder to the extent permitted by law. In no event shall a default
1995 205 2,764,940 56 1,745,140 2 1,099,800 under the Disclosure Covenants constitute a default under the Bonds or under any other provision
1994 222 1,635,000 31 539,500 2 1,046,500 of the Bond Resolutions.
1993 258 2,365,280 47 1,388,480 1 976,800
1992 229 2,445,015 10 878,400 8 190,000
Commercial development figures include several large building permits: $411,500 for Apache
Commons, $432,100 for an Unocal station, and$3,019,800 Cub Foods at Apache Plaza. In addition,
permits in the amount of$1,043,500 were issued for remodeling and repairing the middle/high school
and the middle/high school library. The City was issued a permit in the amount of$3,000,000 for -
building the new city hall/community center complex.
The City continues to progressively move ahead with the redevelopment of Apache Plaza, a
1960s shopping center that has been under study and preliminary redevelopment for several
years. Recently, Pratt/Ordway Properties was selected as the developer. The preliminary
redevelopment plan includes possible townhomes, villas, multi-family housing, retail space and
a Main Street Village atmosphere.
Education
Independent School District 282 ("ISD 282") is headquartered in the City. The City constitutes
82.5% of ISD 282's valuation. ISD 282 has a 2001/02 enrollment of approximately 1,510 in
kindergarten through grade 12 and employs a total staff of approximately 248, of whom 121 are
teachers and administrators.
Parochial education is available at St. Charles Borromeo School, which has approximately 380
students in kindergarten through grade eight.
- 16 - I I-5
Current Value of City Investments at December 31, 2001
Total Booked at Cost $8,957,099.04
Change in Valuation (5,901.68)
Current Valuation $8,951,197.36'
' The amount listed is the value of the assets as of December 31,2001. It is a policy of the City of
St.Anthony to hold all its investments until maturity unless capital gains can be realized by the sale of
the investment.
GENERAL INFORMATION CONCERNING THE CITY
The City of St. Anthony is located in Hennepin and Ramsey Counties, immediately north of the
City of Minneapolis. The City encompasses an area of 1,600 acres or approximately 3 square
miles. Historical population figures for the City are shown below.
Percent
U.S. Census Population Increase/(Decrease)
(This page was left blank intentionally.)
1970 9,239 82%'
1980 7,981 (14%)
1990 7,727 (3%)
2000 8,012 4%
Represents increase in population from 1960 to 1970.
Employment
The City is centrally located within the Minneapolis/St. Paul metropolitan area which provides
City residents with easy access to employment opportunities throughout the metropolitan area.
Some of the larger employers within the City limits are:
Approximate
Number
Employer Product/Service of Employees
y Independent School District 282 Education 248
St. Anthony Health Center 150-Bed Nursing Home 240
Apache Plaza Mall Shopping Center 115
Herbergers Merchandise Sales 90
Source: 2002 survey of individual employers.
St. Anthony's industrial park has approximately 25 small or medium-sized businesses, each
with employment ranging up to 50 employees.
- 15 -
APPENDIX III
FUNDS ON HAND SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND
As of December 31, 2001 MINNESOTA REAL PROPERTY VALUATION
(effective through payable 2002)
Fund Cash and Investments
Following is a summary of certain statutory provisions effective through 2001 relative to tax levy
General $ 1,058,579 procedures, tax payment and credit procedures, and the mechanics of real property valuation.
Special Revenue 198,216 The summary does not purport to be inclusive of all such provisions or of the specific provisions
HRA Fund 911,437 discussed, and is qualified by reference to the complete text of applicable statutes, rules and
Capital Equipment (7,980) regulations of the State of Minnesota.
Debt Service:
Taxes and Special Assessments 987,328
Tax Increment 282,809 Property Valuations (Chapter 273, Minnesota Statutes)
Capital Projects 84,263
Community Center 36,352 Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by
Enterprise 6,533,798 statute, be appraised at least once every four years as of January 2 of the year of appraisal.
Miscellaneous 155,753 With certain exceptions, all property is valued at its market value which is the value the
assessor determines to be the price the property to be fairly worth, and which is referred to as
Total $10,240,555 the "Estimated Market Value."
Limitation of Market Value Increases. Effective through assessment year 2002, the amount of
increase in market value for all property classified as agricultural homestead or non-homestead,
INVESTMENTS residential homestead or non-homestead, or non-commercial seasonal recreational residential,
which is entered by the assessor in the current assessment year, may not exceed the greater of
(i) 10.0% of the value in the preceding assessment or (ii) 15% of the difference between the
The City's current investments are in accordance with Minnesota State Statutes compliance current assessment and the preceding assessment.
requirements sections 118.01, 471.56 and 475.66. In addition, the City has an investment
policy for Mortgage Backed Securities which does not permit the City to invest in the following Indicated Market Value. Because the Estimated Market Value as determined by
an assessor
high risk securities (as defined in Minnesota Statutes, Chapter 475.66, Subdivision 5): may not represent the price of real property in the marketplace, the "Indicated
Market Value" is
generally regarded as more representative of full value. The Indicated Market Value is
1. Interest-only or Principal-only backed securities. determined by dividing the Estimated Market Value of a given year by the same year's sales
ratio determined by the State Department of Revenue. The sales ratio represents the overall
2. Any mortgage derivative security that: relationship between the Estimated Market Value of property within the taxing unit and actual
selling price.
a. has an expected average life greater than ten years;
Net Tax Capacity. The Net Tax Capacity is the value upon which net taxes are levied,
b. has an expected average life which will extend more than four years as the result of extended and collected. The Net Tax Capacity is computed by applying the
class rate
an immediate and parallel shift in the yield curve of plus 300 basis; percentages specific to each type of property classification against the Estimated Market Value.
Class rate percentages vary depending on the type of property as shown on the last page of
c. has an expected average life which will shorten by more than six years as the result this Appendix. The formulas and class rates for converting Estimated Market Value
to Net Tax
of an immediate and sustained parallel shift in the yield curve of minus 300 basis Capacity represent a basic element of the State's property tax relief system and are subject
to
points; annual revisions by the State Legislature.
d. will have an estimated change in price of more than 17 percent, as the result of an Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity
rate,
immediate and sustained parallel shift in the yield curve of plus or minus 300 basis expressed as a percentage.
points.
Investment firms are required to repurchase any and all securities which do not comply with Property Tax Payments and Delinquencies
Minnesota State Statutes, Sections 118.01, 471.56 and 475.66, or the City's investment policy (Chapters 275, 276, 277, 279-282 and 549, Minnesota Statutes)
with regard to high risk, at full face value of the purchase price. Ad valorem property taxes levied by local governments in Minnesota are extended and
collected by the various counties within the State. Each taxing jurisdiction is required to certify
the annual tax levy to the county auditor within five (5) working days after December 20 of the
year preceding the collection year. A listing of property taxes due is prepared by the county
auditor and turned over to the county treasurer on or before the first business day in March.
- 14 - III-1
The county treasurer is responsible for collecting all property taxes within the county. Real CITY TAX RATES, LEVIES AND COLLECTIONS
estate and personal property tax statements are mailed out by March 31. One-half (1/2) of the
taxes on real property is due on or before May 15. The remainder is due on or before
October 15. Real property taxes not paid by their due date are assessed a penalty which, Tax Capacity Rates for a City Resident in Hennepin County
depending on the type of property, increases from 2% to 4% on the day after the due date. In
the case of the first installment of real property taxes due May 15, the penalty increases to 4% 2000/01
or 8% on June 1. Thereafter, an additional 1% penalty shall accrue each month through For
October 1 of the collection year for unpaid real property taxes. In the case of the second 1996/97 1997/98 1998/99 1999/00 Total Debt
Only
installment of real property taxes due October 15, the penalty increases to 6% or 8% on
November 1 and increases again to 8% or 12% on December 1. Personal property taxes Hennepin County 35.515% 38.386% 40.994% 39.655% 37.624% 2.694%
remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the City of St. Anthony 26.653 29.632 32.497 30.625 30.552 4.055
unpaid tax. However, personal property owned by a tax-exempt entity, but which is treated as ISD 282 (St. Anthony)(a)72.105 58.269 60.534 56.353 60.921 8.816
taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties ' Special Districts(b) 6.659 7.483 8.553 8.426 8.126 1.400
as real property.
Total 140.932% 133.770% 142.578% 135.059% 137.223% 16.965%
On the first business day of January of the year following collection all delinquencies are
subject to an additional 2% penalty, and those delinquencies outstanding as of February 15 are (a) ISD 282 also has a tax rate of 0.15705% spread on the market value of
property in support of an
filed for a tax lien judgment with the district court. By March 20 the clerk of court files a excess operating levy for 2000/01.
publication of legal action and a mailing of notice of action to delinquent parties. Those (b) Includes Metropolitan Council, Regional Transit District, Mosquito Control
District, Hennepin Parks,
property interests not responding to this notice have judgment entered for the amount of the Park Museum, and County Regional Railroad Authority.
delinquency and associated penalties. The amount of the judgment is subject to a variable
interest determined annually by the Department of Revenue, and equal to the adjusted prime NOTE.• Taxes are determined by multiplying the net tax capacity by the tax capacity
rate, expressed as
rate charged by banks, but in no event is the rate less than 10% or more than 14%. a percentage. (See Appendix Ill.)
Property owners subject to a tax lien judgment generally have five years (5) in the case of all
property located outside of cities or in the case of residential homestead, agricultural City Tax Levies and Collections
homestead and seasonal residential recreational property located within cities or three (3) years
with respect to other types of property to redeem the property. After expiration of the Collected During Collected
redemption period, unredeemed properties are declared tax forfeit with title held in trust by the Net Collection Year As of 5-31-01
State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof, Leyy/Collect LAC Amount Percent Amount Percent
then sells those properties not claimed for a public purpose at auction. The net proceeds of the
sale are first dedicated to the satisfaction of outstanding special assessments on the parcel, 2001/02 $2,579,866 (In Process of Collection)
with any remaining balance in most cases being divided on the following basis: county - 40%; 2000/01 2,046,538 (Information Not Yet Available)
town or city-20%; and school district - 40%. 1999/00 1,895,975 $1,887,817 99.6%
$1,892,450 99.8%
1998/99 1,864,149 1,856,684 99.6 1,862,448 99.9
1997/98 1,751,756 1,732,268 98.9 1,737,595 99.2
Property Tax Credits (Chapter 273, Minnesota Statutes) 1996/97 1,674,559 1,656,422 98.9 1,660,182 99.1
In addition to adjusting the taxable value for various property types, primary elements of The net levy excludes state aid for property tax relief and fiscal disparities,
if applicable. The net levy
Minnesota's property tax relief system are: property tax levy reduction aids; the circuit breaker is the basis for computing tax capacity rates.
credit, which relates property taxes to income and provides relief on a sliding income scale; and
targeted tax relief, which is aimed primarily at easing the effect of significant tax increases. The
circuit breaker credit and targeted credits are reimbursed to the taxpayer upon application by
the taxpayer. Property tax levy reduction aid includes educational aids, local governmental aid, '
equalization aid, homestead and agricultural credit aid (HACA) and disparity reduction aid.
HACA has been repealed for cities, school districts, and townships.
Levy Limitations for Counties and Cities (M.S. 275.70 to 275.74)
Levy limitations are in effect for taxes levied in 2001 and 2002 for all counties and cities with
populations exceeding 2,500. Levy increases for cities are limited to its adjusted levy limit base
from 1999 plus any increase due to growth in population. Counties are limited in their levy
increases to the difference between their adjusted levy limit from 1999 plus any increase due to
growth in population and one-half of the county's share of the net cost to the state for
assumption of district court costs.
III-2 - 13 -
Summary of Debt Certain property tax levies are authorized outside of the new overall levy limitation ("special
levies"). Special levies include debt service levies for bonded indebtedness, excluding
Gross Less: Debt Net installment payments on conditional sales contracts, debt service on state-aid road bonds,
Debt Service Funds(a) Direct Debt payments on contracts for deed, any levies to pay debt service on tax increment revenue
bonds, and lease payments under certificates of participation. In order to receive approval for
G.O. Debt Supported Primarily by any special levy claims outside of the overall levy limitation, requests for such special levies
Special Assessments $5,645,000 $ (987,328) $4,657,672 must be submitted to the Property Tax Division of the Department of Revenue on or before
G.O. Debt Supported by Tax Increments 3,985,000 (282,809) 3,702,191 September 15th in the year in which the levy is to be made for collection in the following
year.
G. O. Debt Supported by Revenues 2,560,000 (b) 2,560,000 The Department of Revenue has the authority to approve, reduce or deny a special levy
Revenue Debt 740,000 (c) 795,000 request. Final adjustments to all levies must be made by the Department of Revenue on or
(a) Debt service funds are as of December 31,2001 and include money to pay both principal and interest. before December 10th.
(b) State-Aid road bonds are paid from allotments from the State of Minnesota's Highway Fund, and
storm sewer bonds are paid from user fees. Debt Limitations
(c) Debt service is paid directly from net revenues of the City's Liquor Enterprise. All Minnesota municipalities (counties, cities, towns and school districts) are subject
to statutory
"net debt" limitations under the provisions of Minnesota Statutes, Section 475.53. Net debt is
Indirect Debt defined as the amount remaining after deducting from gross debt the amount of current
revenues which are applicable within the current fiscal year to the payment of any debt and the
Debt Applicable to
aggregate of the principal of the following:
2000 Taxable G.O. Debt Tax Capacity in City 1. Obligations issued for improvements which are payable wholly or partially from the
Taxing Unit(a) Net Tax Capacity As of 1-2-02(b) Percent Amount proceeds of special assessments levied upon benefited property.
Hennepin County $1,203,615,230 $309,820,000 0.4% $1,239,280 2. Warrants or orders having no definite or fixed maturity.
Ramsey County 404,818,171 120,125,000 0.5 600,625
ISD 282 (St. Anthony- 3. Obligations payable wholly from the income from revenue producing conveniences.
New Brighton) 8,136,033 4,920,000 82.5 4,059,000
Northeast Metro 4. Obligations issued to create or maintain a permanent improvement revolving fund.
Intermediate District 479,831,501 1,290,000 0.4 5,160 5. Obligations issued for the acquisition and betterment of public waterworks systems,
Ramsey County Library 214,851,525 4,480,000 0.9 40,320
Hennepin County and public lighting, heating or power systems, and any combination thereof, orfor any
Park District 894,636,440 31,425,000 0.5 157,125 other public convenience from which revenue is or may be derived.
Metropolitan Council 2,244,229,627(c) 29,660,000(d) 0.3 88,980 6. Certain debt service loans and capital loans made to school districts.
Metropolitan Transit
District 1,988,859,543(c) 144,715,000 0.3 434.145 7. Certain obligations to repay loans.
Total $6,624,635 8. Obligations specifically excluded under the provisions of law authorizing their
(a) Only those taxing units which have outstanding general obligation debt are presented here. issuance.
(b) Excludes general obligation debt supported by revenues and revenue-supported debt. 9. Certain obligations to pay pension fund liabilities.
(c) Represents 1999 taxable net tax capacity. 2000 values are not yet available. 10. Debt service funds for the payment of principal and interest on obligations other
than
(d) Excludes general obligation debt supported by sewer system revenues, 911 user fees, and rental those described above.
housing revenues.
Levies for General Obligation Debt
Debt Ratios Including This Issue
(Sections 475.61 and 475.74, Minnesota Statutes)
G.O. Net G.O. Indirect & Any municipality which issues general obligation debt must, at the time of issuance, certify
Direct Debt` Net Direct Debt levies to the county auditor of the county(ies) within which the municipality is situated. Such
levies shall be in an amount that if collected in full will, together with estimates of other
To 2000 Indicated Market Value ($487,932,889) 1.71% 3.07% revenues pledged for payment of the obligations, produce at least five percent in excess of the
Per Capita (8,012- 2000 U.S. Census) $1,043 $1,870 amount needed to pay principal and interest when due. Notwithstanding any other limitations
upon the ability of a taxing unit to levy taxes, its ability to levy taxes for a deficiency in prior
' Excludes revenue debt. levies for payment of general obligation indebtedness is without limitation as to rate or amount.
- 12 - III-3
Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes) Annual Debt Service Payments Including This Issue
"Fiscal Disparities Law"
G.O. Debt
The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as Supported Primarily by G.O. Debt Supported
Fiscal Disparities, was first implemented for taxes payable in 1975. Forty percent of the
Special Assessments by Tax Increments
increase in commercial-industrial (including public utility and railroad) net tax capacity valuation Principal Principal
since 1971 in each assessment district in the Minneapolis/St. Paul seven-county metropolitan Year Principal & Interest(a) Principal & Interest
area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott, 2002 (at 1-2) $ 220,000 $ 415,855.01 $ 250,000 $ 490,700.00
excluding the City of New Prague, and Washington Counties) is contributed to an area-wide tax 2003 290,000 561,805.85 295,000 507,762.50
base. A distribution index, based on the factors of population and real property market value 2004 400,000 631,311.26 315,000 511,460.00
per capita, is employed in determining what proportion of the net tax capacity value in the area- 2005 405,000 619,377.51 330,000 508,868.75
wide tax base shall be distributed back to each assessment district. 2006 410,000 606,406.26 350,000 510,000.00
2007 430,000 607,340.01 365,000 504,830.00
2008 445,000 601,951.26 390,000 508,155.00
Iron Range Fiscal Disparities 2009 465,000 600,227.51 410,000 504,742.50
2010 440,000 553,288.13 435,000 504,603.75
In 1996 Minnesota Legislature established a commercial-industrial tax base sharing program for the 2011 405,000 497,761.25 210,000 259,106.25
Iron Range that is modeled after the Twin Cities metropolitan area program commonly known as 2012 335,000 410,176.25 225,000 258,538.75
"fiscal disparities." 2013 345,000 404,191.25 240,000 256,720.00
2014 290,000 334,143.75 55,000 61,730.00
Under the Iron Range Fiscal Disparities (1RFD") program, 40% of the growth in each municipality's 2015 230,000 261,796.25 55,000 59,172.50
commercial-industrial tax base after 1995 is contributed to an area wide pool. The tax base pool is 2016 205,000 226,301.25 60,000 61,440.00
distributed back to municipalities on the basis of property wealth per capita; i.e., municipalities with 2017 210,000 221,160.00
lower property wealth receive greater distributions. For the purposes of the IRFD program, 2018 120,000 123,000.00
commercial-industrial property includes public utility property, but does not include commercial, Total $5,645,000(6) $7,676,092.80 $3,985,000(°) $5,507,830.00
seasonal, recreational property. All local taxing jurisdictions in the area, including counties, cities,
towns (including unorganized towns), school districts, and special taxing districts, participate in the
IRFD program. G.O. Debt Supported
by Revenues Revenue Debt
The IRFD program is identical to the Twin Cities metropolitan area program except for the Principal Principal
provisions summarized below: Year Principal & Interest Principal & Interest
1. The geographical.area involved is the taconite tax relief area. This includes all of Cook 2002 (at 1-2) $ 150,000 $ 277,660.00 (Paid) $ 20,731.50
County and Lake County, most of Itasca County and St. Louis County (the City of Duluth 2003 155,000 275,432.50 $ 55,000 95,031.25
2004 160,000 272,867.50 60,000 97,012.50
and surrounding area is not included), portions of Aitkin County and Crow Wing County, and
2005 165,000 269,980.00 65,000 98,650.00
a very small portion of Koochiching County.
2006 170,000 266,790.00 65,000 95,075.00
2. The base year is 1995, so that 40% of the growth in commercial-industrial tax base after 2007 175,000 263,232.50 70,000 96,362.50
1995 will be shared. The first tax year to be affected was 1997/98. 2008 180,000 259,322.50 75,000 97,281.25
2009 185,000 255,105.00 80,000 97,825.00
3. Municipalities are not required to share commercial-industrial growth in tax increment 2010 185,000 245,625.00 85,000 98,081.25
financing (TIF) districts created before May 1, 1996. 2011 190,000 240,905.00 90,000 98,050.00
2012 200,000 240,665.00 95,000 97,731.25
4. Municipalities that consciously exclude commercial-industrial development are excluded 2013 205,000 234,862.50
from participation. This will be determined by a joint effort of the Department of Revenue 2014 215,000 233,447.50
(MnDOR) and the Iron Range Resources and Rehabilitation Board (IRRRB). a 2015 225,000 231,267.50
Total $2,560,000(d) $3,567,162.50 $740,000(e) $991,837.50
In September 2000, a lower court declared the Iron Range Fiscal Disparities Act
unconstitutional. In April 2001, this ruling was overturned by the Minnesota Court of Appeals. (a1 Includes the Bonds at an assumed average annual interest rate of 4.45%
In July of 2001, the Minnesota Supreme Court agreed to review the Act. What the outcome (6) 69.3%of this debt will be retired within ten years.
may be or what effect, if any, these court proceedings may have, can not be determined at this (c)
84.1/of this debt will be retired within ten years.
time.
(d) 67.0%of this debt will be retired within ten years.
(e) 100.0%of this debt will be retired within ten years.
III-4
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STATUTORY FORMULAE
CONVERSION OF ESTIMATED MARKET VALUE(EMV)TO NET TAX CAPACITY FOR
MAJOR PROPERTY CLASSIFICATIONS
Net Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax Capacity Net Tax
General Classifications Levy Year 1997 Levy Year 1998 Levy Year 1999 Levy Year 2000 Levy Year 2001
Residential Homestead First$75,000 of EMV at 1.00% First$75,000 of EMV at 1.00% First$76,000 of EMV at 1.00% First$76,000 of EMV at 1.00% See next page.
EMV In excess of$75,000 EMV in excess of$75,000 EMV in excess of$76,000 EMV in excess of$76,000
at 1.85% at 1.70% at 1.65% at 1.65%
Residential Non-Homestead 2.90%;except certain cities of 2.50%;except certain cities of 2.40%;except certain cities of 2.40%;except certain cities of See
next page.
4 or more units 5,000 population or less 5,000 population or less 5,000 population or less 5,000 population or less
at 2.30% at 2.15% at 2.15% at 2.15%
Agricultural Homestead First$75,000 EMV of house, First$75,000 EMV of house, First$76,000 EMV of house, First$76,000 EMV of house, See next page.
garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00% garage and 1 acre at 1.00%
EMV in excess of$75,000 of EMV In excess of$75,000 of EMV in excess of$76,000 of EMV in excess of$76,000 of
house,garage and 1 acre house,garage and 1 acre house,garage and 1 acre house,garage and 1 acre
at 1.85% at 1.70% at 1.65% at 1.65%
Remaining Property: Remaining Property: Remaining Property: Remaining Property:
First$115,000 of EMV on first First$115,000 of EMV on First$115,000 of EMV at 0.35% First$115,000 of EMV at 0.35%
320 acres at 0.40% first 320 acres at 0.35% EMV in excess of$115,000 and EMV in excess of$115,000 and
EMV in excess of$115,000 on EMV in excess of$115,000 on less than$600,000 less than$600,000
first 320 acres at 0.90% first 320 acres at 0.80% at 0.80% at 0.80%
EMV in excess of$115,000 EMV In excess of$115,000 EMV in excess of$600,000 EMV in excess of$600,000
over 320 acres at 1.40% over 320 acres at 1.25% at 1.20% at 1.20%
Agricultural Non-Homestead First$75,000 of EMV of house, First$75,000 of EMV of house, First$76,000 of EMV of house, First$76,000 of EMV of house, See next page.
garage and 1 acre at 1.90% garage and 1 acre at 1.25% garage and 1 acre at 1.20% garage and 1 acre at 1.20%
EMV in excess of$75,000 of EMV In excess of$75,000 of EMV in excess of$76,000 of EMV in excess of$76,000 of
house,garage and 1 acre house,garage and 1 acre house,garage and 1 acre house,garage and 1 acre
at 2.10% at 1.70% at 1.65% at 1.65%
EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings EMV of land and other buildings
at 1.40% at 1.25% , at 1.20% at 1.20%
Commercial-Industrial First$150,000 of EMV at 2.70% First$150,000 of EMV at 2.45% First$150,000 of EMV at 2.40% First$150,000 of EMV at 2.40% See next page.
EMV in excess of$150,000 EMV in excess of$150,000 EMV in excess of$150,000 EMV in excess of$150,000
at 4.00% at 3.50% at 3.40% at 3.40%
Seasonal/Recreational Non-Commercial Non-Commercial Non-Commercial Non-Commercial See next page.
Residential First$75,000 of EMV First$75,000 of EMV First$76,000 of EMV First$76,000 of EMV
at 1.40% at 1.25% at 1.20% at 1.20%
EMV in excess of$75,000 EMV in excess of$75,000 EMV in excess of$76,000 EMV in excess of$76,000
Commercial-2.10% Commercial-1.80% Commercial-1.60% Commercial-1.60%
Homestead Resorts-1.00% Homestead Resorts-1.00%
Vacant Land N/A N/A N/A N/A See next page.
(All vacant land is reclassified to (All vacant land Is reclassified to (All vacant land is reclassified to (All vacant land is reclassified to
highest and best use highest and best use highest and best use highest and best use
pursuant to local zoning pursuant to local zoning pursuant to local zoning pursuant to local zoning
ordinance ordinance ordinance ordinance
2001 PROPERTY TAX AMENDMENTS Trend of Values
Assessor's
Ta
Estimated Taxable Tax
The Omnibus Tax Bill adopted by the Minnesota Legislature during the First Special Session in Market Indicated aced a) Market Value Ca le x
2001 (the `Tax Bill") made numerous changes to the property tax system. Among its
provisions, the Tax Bill provided for the assumption by the State of Minnesota of the general 2000 $487,932,889 $417,647,700 $6,711,060
education property tax levy and certain transit costs; increased the appropriation for Local 1999 442,650,440 383,067,100 6,116,003
Government Aids by $140,000,000; re-imposed levy limits for two years on counties and cities 1998 392,499,174 353,614,300 5,713,569(c)
over 2,500 in population; repealed the Homestead and Agricultural Credit Aid for cities, school 1997 364,196,638 335,789,300 5,914,038(c)
districts and townships; provided for the gradual elimination of Limited Market Valuation; and 1996 349,640,546 319,921,100 6,234,749
compressed the class rates applicable to various classes of property.
(a) Calculated by dividing the county assessors' estimated market value by the sales ratios determined
2001 Class Rate Changes Local Tax Local Tax a for the City each year by the State Department of Revenue.
Payable Payable
Property Type 2001 2002 (b) See Appendix 111 for an explanation of tax capacity and the Minnesota property tax system.
Residential Homestead: (c) The decrease in taxable tax capacity for 1997 and 1998 was due to a reduction in property tax class
Up to$76,000 1.000% 1.000% rates, as detailed in Appendix 111.
$76,000-$500,000 1.650% 1.000%
Over$500,000 1.650% 1.250%
Residential Non-homestead Ten of the Largest Taxpayers in the City
Single Unit:
Up to$76,000 1.200% 1.000% 2000 Net
$76,000-$500,000 1.650% 1.000% Taxpayer Type of Property Tax Capacity*
Over$500,000 1.650% 1.250%
2-3 unit and undeveloped land 1.650% 1.500%'
Glaser Financial Group Inc. Apartments $ 304,344
Market Rate Apartments: ° 2 St. Anthony Nursing Home/
Regular 2.400% 1.8009/°
Small City 2.150% 1.800%2 Chandler Place Health Facility 209,186
Low-Income 1.000°i° o.soo°i3 SuperValu Inc. Grocery 202,636
CommerciaUlndustriaUPublic Utility: Equinox Properties Apartments 147,470
Up to$150,000 2.400% 1.500% Welsh Companies Apartments 130,464
Over$150,000 3.400% 2.000% Northern States Power Company Utility 99,541
Electric Generation Machinery 3.400% 2.000% St. Anthony Shopping Center Shopping Mall 68,098
Seasonal Recreational Commercial: St. Anthony Business Center Corp. Commercial 66,500
Homestead Resorts(1c) Resourcenet International Industrial 61,400
Up to$500,000 1.000% 1.000% Village North Apartments 55,569
Over$500,000 1.000% 1.250%
Seasonal Resorts(4c) Total $1,345,208'
Up to$500,000 1.650% 1.000%
Over$500,000 1.650% 1.250% Represents 20.0% of the City's total 2000 taxable net tax capacity.
Seasonal Recreational Residential:
Up to$76,000 1.200% 1.000%4
$76,000-$500,000 1.650% 1.000%4
Over$500,000 1.650% 1.250%4 CITY INDEBTEDNESS
Disabled Homestead 0.450% 0.450%
Agricultural Land&Buildings:
a Legal Debt Limit
Homestead:
Up to$115,000 0.350% 0.550%4
$115,000-$600,000 0.800% 0.550%4 Legal Debt Limit (2% of Estimated Market Value) $8,352,954
Over$600,000 1.200% 1.000%4 Less: Outstanding Debt Subject to Limit (-0-)
Non-homestead 1.200% 1.000%4
'Rate reduced to 1.25%in pay 2003 and thereafter Debt Margin as of January 2, 2002 $8,352,954
2 Rate reduced to 1.5%in pay 2003 and 1.25%in pay 2004 and thereafter
3 Rate reduced to 1%in pay 2003,classification abolished thereafter
4 Exempt from referendum market value tax
III-6 - 9 -
APPENDIX IV
CITY PROPERTY VALUES SELECTED ANNUAL FINANCIAL STATEMENTS
2000 Indicated Market Value of Taxable Property: $487,932,889* Excerpts from the City's annual financial statements from the years ended December 31, 2000,
1999 and 1998 are presented on the following pages. The City's financial statements are
Calculated by dividing the Hennepin and Ramsey county 2000 estimated market values of audited annually by an independent certified public accounting firm. Governmental
funds and
$303,752,000 and $113,895,700, respectively by the 2000 sales ratios of 86.9% and 82.3%, expendable trust funds are accounted for using the modified accrual basis of accounting.
respectively, for the City as determined by the State Department of Revenue. Proprietary funds are accounted for using the accrual basis of accounting. The readers should
be aware that the complete financial statements may contain additional data relating to the
2000 Net Tax Capacity: $6,912,648
information presented here, which may interpret, explain or modify it
Hennepin Ramsey
Coun Counly Total
Real Estate $4,524,856 $2,279,149 $6,804,005
Personal Property 72,592 36,051 108,643
Total $4,597,448 $2,315,200 $6,912,648
2000 Taxable Net Tax Capacity: $6,711,060
2000 Net Tax Capacity $6,912,648
Less: Captured Tax Increment Tax Capacity (822,302)
Contribution to Fiscal Disparities (443,156)
Plus: Distribution from Fiscal Disparities 1,063,870
2000 Taxable Net Tax Capacity $6,711,060
2000 Taxable Net Tax Capacity by Property Class
Real Estate:
Residential Homestead $3,912,534 58.3%
Non-Homestead Residential 1,058,204 15.8
Commercial/Industrial, Railroad and
Public Utility' 1,631,679 24.3
Personal Property 108.643 1.6
Total $6,711,060 100.0%
Reflects adjustments for fiscal disparities and captured tax increment tax capacity.
-8 - IV-1
CITY OF ST. ANTHONY
COMBINED BALANCE SHEET - ALL FUND TYPES AND ACCOUNT GROUPS
DECEMBER 31, 2000 (With Comparative Totals for 1999)
Governmental Fund Types Proprietary Fund Types --- Account Groups
Totals
----------------------------------------------------------------- ----------
Special Debt Capital Internal General General (Memorandum Only)
General Revenue Service Project Enterprise Service Fixed Long-Term -----------------------'-
ASSETS AND OTHER DEBITS Fund Funds Funds Funds Funds Fund Assets Debt 2000 1999
Cash and Investments $978,737 $407,903 $1,122,484 $4,132,346 $6,534,862 $214,774 $13,391,106 $12,527,823
Accounts and Other Receivables 22,446 49,008 12,758 433,679 517,891 358,247
Taxes Receivable 9,561 90 3,721 1,903 15,275 18,411
Special Assessments Receivable 337,820 337,820 393,737
Due from Other Governmental Units 55,731 20,454 517,110 593,295 295,450
Due from Other Funds 328,836 71,185 77,816 477,837 411,929
Inventory, at Cost 504,175 504,175 461,418
Prepaid Items and Other Assets 112,516 47,421 52,304 212,241 199,879
Property, Plant and Equipment, at Cost 2,504,129 $8,066,582 10,570,711 10,063,378
Amounts Available in Debt Service Funds $1,126,438 1,126,438 1,928,192
Amounts to be Provided for Debt 8-468,372 8,468,372 5,414-888
----------- --------- ---------- --------------------- ---------- ---------- ---------- ------------- ------- ----
Totals $1,507,827 $477,455 $1,464,025 $4,782,723 $10,029,149 $292,590 $8,066,582 $9,594,810 $36,215,161 $32,073,352
- ----------- -------- -
N LIABILITIES, EQUITY AND OTHER CREDITS
Liabilities
Accounts Payable $80,235 $20,698 $440 $546,539 $346,090 $996,002 $798,985
Accrued Payroll and Related Items 101,394 36,940 $489,205 627,539 506,598
Other Accrued Liabilities 2,697 69,133 $209,810 281,640 165,810
Due to Other Funds 51,185 33,043 295,793 97,816 477,837 411,929
Deferred Revenue and Deposits 295,793 337,147 6,783 86,730 726,453 1,035,807
Bonds and Notes Payable 795,000 9,385,000 10,180,000 8,087,849
----------- ---------- ------ --- ------------------- ---------- ---------- ----------- --
Total Liabilities 531,304 53,741 337,587 851,115 1,431,709 489,205 9,594,810 13,289,471 11,006,978
Fund Equity
472,931 472,931 534,500
Contributed Capital
Investment in General Fixed Assets $8,066,582 8,066,582 7,840,154
Retained Earnings
Reserved 8,124,509 8,124,509 7,1859247
Unreserved (196,615) (196,616) (94,773)
Fund Balance
Reserved 34,868 1,126,438 1,161,306 3,827,004
Unreserved - Designated 941,655 423,714 3,990,567 5,355,936 1,774,242
Unreserved - Undesignated (58,959) (58,959)
----------- ---------- --------- ------------�----- --------- ------- ---------- --
Total Fund Equity 976,523 423,714 1,126,438 3,931,608 8,597,440 (196,615) 8,066,582 22,925,690 21,066,374
Totals $1,507,827 $477,455 $1,464,025 $4,782,723 $10,029,149 $292,590 $8,066,582 $9,594,810 $36,215,161 $32,073,352
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I OI�MQt�M1 N N W 1 m 11 O 1n M to co 1 e7 I a N O Q I Q I W 11
I m M 01�NNQ�NrMO I N II M01DQ 100- I M 1 OI- Q.- W N ; c 1 ,71:
^ I O bN.-ODQTM0II MO I 1L1 II Or-01 my m- I O I am mQ 1-M I Q I W 11
subject to the tax imposed by Section 831 of the Code, the amount which otherwise would be T � M M Q Q o 1 ° 11 °Q 1°°,�, 1_I 1°�l °_,.
taken into account as losses incurred under Section 832(b)(5) of the Code must be reduced by ` ' °'"" ' "' " " A N eh
an amount equal to fifteen percent of the interest on the Bonds that is received or accrued 1
during the taxable year. Section 86 of the Code requires recipients of certain Social Security m ; M� O°,m°m N aG N ;; 0 m° O m ; QD ; °Q �, Q
N
L I N Q�M 10N�NA01m I at7 11 w Oj OO Q I 1 010 'T
and railroad retirement benefits to take into account, in determining the taxability of such ° ' °°N Q Q° °° ^°° ; M ;; m° °m ; ° ; N °N 1 M
1 M II
N ; rn r tDm M .1;- _rnMmQ 1 M 11 a01010�hoti I s0 I QO 1A Q r�Q 1 10
Y 101 N M.•-CI(p.-1001 tp N I C 11 01 O- .-M co I O I MQ w 01 N1� 1 ID
benefits, receipts or accruals o interest on the Bonds. Passive investment income, including Z M M N Q Q °c: ° o. Q°° ; ° �,�, m^ , ° I ° tl
interest on the Bonds, may be subject to federal income taxation under Section 1375 of the � o 1 N 11 m I cq ev;
Code for a Subchapter S corporation that has Subchapter C earnings and profits at the close of
I I 11
the taxable year if greater than twenty-five percent of the gross receipts of such Subchapter S ; E " ° ;; ° ° °
�1 1 11 m
corporation is passive investment income. Section 265 of the Code denies a deduction for Y _*3 c m O
°
interest on indebtedness incurred or continued to purchase or carry the Bonds or, in the case of " ' ° ' a m° ' `° " W � °' i
r 7 ; Gci co as ; 1Q�1 ;; ° N I Q 1 v ;;
a financial institution, that portion of the holder's interest expense allocated to interest on the ° ' " ° ' ' ' '" p - " "="
A II
Bonds, except with respect to certain financial institutions (within the meaning of Section 265(b) Q ; Q
of the Code). DO 1 L ° N t2 1 ^ II t2
d 1.1 ; ;; .2 ; t2
U I Gr % Ql O. 1 O. ; O ; O;;
a l G LL N
Q I Q 11
The foregoing is not intended to be an exhaustive discussion of collateral tax consequences < ;; °° m
arising from receipt of interest on the Bonds. Prospective purchasers or holders of the Bonds
should consult their tax advisors with respect to collateral tax consequences, including without 1n 'Gl I Gl
w N O
a I m i ; ^ ;
limitation the calculations of alternative minimum tax, environmental tax or foreign branch profits ; � > m;; N ; N ; ; m
tax liability or the inclusion of Social Security or other retirement payments in taxable income. S a N LL '° N � ; co ;;
= I ,•., I w 11 w I I I 1 w 11
LL I
L 1 GI 1D O M m M Q 1 11 1 I II
I I
m I n QN 10 �,ON I N 11 r`pmt•BOO 1 u7 1 O r J r I N II
Z; I M 11 Q 10�01 O Q I m I O Q I Q I eo 11
Q Qt N I r 11 MlAO10�000 1 01 I 1tl N I F- 1 N 11
I d C Of Q ao d e7 I .-;; r Co ui
L I L = � tD In I 110 11 QNY70101Q I t0 1 M l0 I I m 11
BANK QUALIFIED TAX-EXEMPT BONDS a l /n LL M Q N 11 M ao U, ,
0 4d 1 C f0 N I OI 11 1
a l W w 49.w II I ^ I ~ I n l q II
I Go m O Q I A 11 10 O W I Q I Q Ol I M I N 11
1 al 10 N N N O m 1 N 11 m O N 11 OM I Q I N 11
G II , Y G) P- oI OI O O m I Q 11 M O W I N I M 01 1 N 1 Q 11
The City will designate the Bonds as qualified tax-exempt obligations for purposes of . . . . . .
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the ability of L_LL A N° °1' °° 1 °'e! m i °
I G 0 7 Q.- Hl M Q I OI II 10 0 1n 1 0 1 1D I m 1 01 11
I N 11 w M N ; O ; O O I M I N 11
financial institutions to deduct from income for federal income tax purposes, interest expense ; "a „;; I 1 ; N ; ;;
1 1 1 I I w u
that is allocable to carrying and acquiring tax-exempt obligations. y ; Q " ° ;; o ° ; ; N N ; m
G) I Gl N w M M
co 11 1 U N 11Y 01 f- N 1 't.1 11 ° O 1 t0 1 O1 1 01 1 N II
el >. I v, -o 1 O N I N I 1 1 Q 11
^ H 1 L > C u7 M O 1 II O M '
O Co I d L 7 01 N I M 11 01 ' M I O I m l 11
w(n 1 0 GILL l71 M I M 11 w e., I O I N I N I M 11
l:7 lA C I N 1 _„ 1 Q 1 T 1 01 I aTl 11
7 1 I N 11 1 1 1 � I -II
Z L LL ; w I N 11 1 I ^ I T I N 11
RATING o w ; Co Q M ; N ;; °, ; a, ; M ; M ; N ;;
U Y 1 '- G) Co�01 r
Q4 c 1 m = /n Q O N N ; p ;; 00, 1 t0 1 O_ I O I f` It
m E 1 U Gl C N N u 1 O II 10 I ; I ; I 11 ci
O 0 C 1 Gl > 7 N
1 10 1 ' I M 1 O 11
1 11 1 11 ¢H N I N cc'L w I Q 11 w 1 1 Q I Q I Q 11
Application for a rating of the Bonds has been made to Moody's Investors Service ( Moody s ), > 1 w ;
99 Church Street, New York, New York. If a rating is assigned, it will reflect only the opinion of o o.'
2 T 4-1 I ^ 10 1n M 10 O N I N 11 M r-N N O I Q I Co 0 I W 1 N II
1
H I- m I t`�O Co o Q 1 W II mQ HMO I r I
0o y s. Any explanation o the significance o the rating may be obtained only from Moody s. < o L_ ; L m N m e _ I N ;; N 1p N N O i i O
N ; N
Z cE x 1 W C N Q .-- o M I !p 11 OQNOO 0 1 m 11
H LL O 1
a) m MM Of 1 M II p0 N� 1 Q I NG7 1 m I M 11
There is no assurance that the rating, if assigned, will continue for any given period of time, or M J° I ° ; ;; I _„
that such rating will not be revised or withdrawn if, in the judgment of Moody's, circumstances a 5 N
so warrant. A revision or withdrawal of the rating may have an adverse effect on the market ' ' 3 o`
N
U LL p E
W T a
price of the Bonds.
U W 01
N a.l GI W
N 2 OI m
N
a+ <
U' Gl O Y 1-I GI ¢
¢ m > m rn Gl m O 2 1.1 N O G'
Z M 1- D m
J d' m > Y ¢ 4�-I H m GI a N
_ O O . d LL Y
m m O tU U GI L 7 G)'� O O y
FINANCIAL ADVISOR ° °' E ° Q°o Z a
O W IY Gl d' C L W GI ¢ C L
W U W N K L N 1-1 C C.D N m ^ m N T
Z W = Y N y O . H =
m D H C L Y > C aI C > m m'O Y C N GI IS
O N Gl c O = N a m Gl 0 G'�-J 7 = n U C O W
2 E t Gl GI o LL O C L N O LL C m 1 C 0
O O «I 41 E U m Y z a O m O-o GJ Gl d m U C c
U z N O D In L L C m m W >. L GI L >
The City has retained Springsted Incorporated Advisors to the Public Sector, of St. Paul ¢ ° N ° °Y ° d LL
Incorporated, r r > > (D c c m E� -a O Q. m L L IZ 10 m Gl a+Lu > C� > °
11 11 � 1co L)000 -°'� > o '- w Gi vl° v o a m lTO is ,'I� GCiv > G`/� > `y iG '-
Minnesota, as financial advisor (the Financial Advisor ) in connection with the issuance of the W ° < _< Y ...� Y.0< ° m m m 1 E ° L m L m Y
Bonds. In preparing the Official Statement the Financial Advisor has relied upon governmental " c In ° E E ` ` ° ° ` ° = Y = v m ° d °
N C aI l): 0 0 0 Y N N 7 = L 1..I L N N H cT L N-� o L N L ,-
r ¢ m e m L L y.I•'o L J a-I J O L Gl G) N W 1..1 v m N C B Gl C
officials who have access to relevant data to provide accurate information for the Official = " ` ° °' ` ` Y ° "t °"` ` o ° > Y m= =m
o O X V m O,o = = m D V U o 7 G7 0 0 r O C QI =
m U 11 G7 = = > Gl 0 0 0 ¢ m¢ ¢OOOmZ CUr•rm LL
Statement, and the Financial Advisor has not been engaged, nor has it undertaken, to m m °_ _ ` ` L E E .. _
U¢ .- N00..C.G ¢¢ JJ LL
independently verify the accuracy of such information. The Financial Advisor is not a public
- 6 - IV-3
I 1 11 I 1 I 1 11
m W W 1l)c I N 1 o 11
1 10NM/-O WN71D W tD I W 11 V MI-W NOO 1 t0 1 V M M" OM 1 O 1 oil
I 01^10N O1-m"W N O I 1n 11 V c V~MO V I M I MIl) W~ "O I Il'J 1 0> 11
1 I 11 - I ` I C.
1 1- f0 Nrpp m"W"^V 10 I O II V V W"W"" I N I co r t0 W O 1 W 1 O 11
1-a m co M w V Go te a l �� °Q°°V N�r I I e �° I < I FUTURE FINANCING
I"- _ _ , .„ I , . 1 .. I 1 11
C I N W 10 I ^ 11 r l- 1 ^ 1 ~ 10 " 1 0 1 ^ 11
O I ^ I M II w 1 ^ I I N I M 11
N I w 1 N 11 1 I 1 1 N II
E I I u 1 1 1 1 n
1
F to 1 ^N W N"W O r O M~ I W 11 "W W W 1r°M I V I V N O o r co 1 1 W 11 The City does not expect to issue any additional general obligation debt
within the next 90 days.
L , ""M W V O~r N1-1- I N 11 r0 W^000 W 1 W I 1-r
O I W^M V 1-MMNNOO.- I oD 11 W r"M100 W I M I ^W I-O V r I V I m II
d I W M W rNN V^N^M O I N 11 M010 V 1DOr I M I OI- V^ "N I W , N II
W~M O 1 " II O~W W V co^ 1 0 1 O W co V I-M I V I " II
v l W "M M V"V r W O r 1 O 11 10 V "01 01 1 ~ 1 10" W v "H I M I O II
1 ^ ` I `II _ 1 - I - I I `II
I M W N" I M II 1- I ^ I 1- 10 N M 1 r 1 M 11
I ^ 1 M I I N I ^ I I N I M 11
N ; » » LITIGATION
I E M~ I O ii O O I O I O 1
r L ~~ 1 " 11 " O 1 " I " 11
1 m m m^ 1 O 11 O O I O I O 11
' L~'o ' '" ^ ' ' '" The City is not aware of any threatened or pending litigation affecting the validity of the Bonds
N I N l a M O I V II W " I V I V 11
n I = O)d M O I M II V co I M I M 11
= I 0 C° °^ 1 ^ " N 1 ^ 1 ^ 11 or the City's ability to meet its financial obligations.
O I 00 . I .11 1 - 1 -11
L I J N" I ~ 11 1- I ~ 1 1- 11 1,
0 I w I N II I I N 11
4j I It
I
C I N I I N 11 N_ I N I N 11
7 1 � r 11
O I N W I W 11 W I W I W 11
U 1-I L myJ I II I 1 11
0 I m
Q I C r N W I W 11 W I W I W 11
W In Ili , " 11 in I " 1 " 11 LEGALITY
-
I r7 a 1 11 - -II
I el I ~ 11 ti I A 1 f- II
1 N 1 N 11 N I 1 N 11
" 1 " I O 1 0
" I m 11 I ^ 1 " 1 " I to II The Bonds are subject to approval as to certain matters by Dorsey & Whitney LLP of
O. I r- O O O I O 11 1 I O I O I O 11 11 L > _ ° ° 1 W 11 W I W 1 I I W 11 Minneapolis Minnesota as Bond Counsel.
Bond Counsel has not participated in the
1 y L 7 " 1- 1 lo 11 f0 I 10 1 < I V I N 11 f
V
Jj I of W N 1
I =m » 1 » 11 » I I I I »
11 11 II preparation of this Official Statement except for guidance concerning the following section, ax
7 I M I II I 1 1 I
LL 1 I 11 I I I I II
Exemption," and will not pass upon its accuracy, completeness, or sufficiency. Bond Counsel
L I o 10 N Co O W oo 1 M 11 ""W O M O M I W I V O I V I M 11
01 1 N "N W r-v O 1 Oil N V"M N 0<71, I ~ 1 " 1 N 1 ° 11 has not examined nor attempted to examine or verify, any of the financial
or statistical
iJ M^M I N II "r W I-r Om I N I r ~ I W I N 11
n= a I- " r M M , " II °°e "r I ° I ° It I I " 11 statements, or data contained in this Official Statement, and will express no
opinion with
L I L 7 N O co M 10 I- I W II N V^W W r I O I O co I W I W II
CL 1 ,1 M V M I ^ 11 e N W 1 1 " W ' °- ' ^ " respect thereto. A legal opinion substantially in the form as set out in Appendix
I herein will be
O 1 4) - I `11 N 1 1 1 1 -11 c In
0_ I W N N I N 11 1 ^ I f0 I ~ 1 N II
delivered at closing.
I I 11 I 1 1 I II
1 O~ V m" V I W 11 W O 10 I V I "O 1 " I W u
I i-1 M N OMN ^ 1 M 11 O O~ I W I "O I " I M 11
1 10 U N m N o V M W I Lei II " O O
1 Y a)"o _ , _ I, _ I __ I
I 'I-)C N" ao~N V 1 11 " O 10 I I M ID 1 W I ^ II
I 4 0 = O^ ^W V I W 11 1- O~ I " 1 O N I N I W 11
I w L W 11!
M^ I ~ 11 O M r
I UO-
N 11 TAX EXEMPTION
I w I N 11 w I I I I II
I
0 I M N co " I co II " O_ I " 1 M I M I m 11
N I m 10 N 1- N 1 W 11 O 1 ^ 1 I- I ~ I W 11
co n l U N W O" W I V I I N V I 1p 1 W 1 W 1 V 11
C >1 1 iJ r V ^ - - . I ^11 -
1- I M > C /0 V M M 1 W 11 ^ M I V I M I M I W 11
1 L 7 ° ~ N ° 11 w ~ ' ~ 1 M I M I ° II In the opinion of Dorsey & Whitney LLP as Bond Counsel under federal and Minnesota laws
d'W r 1 0 0)LL O M 1 V 11 M I M I O I O I V I I f 1 1
040 C 1 co I -11 1 1 - I - 1 ^11
7 1 N I N II 1 1 N I N I N II re ulations r )
LL , w , N 11 , , , , w „ g , ulings and decisions in effect on the date of issuance of the Bonds interest on the
I 1 II I I 1 1 II Bonds is not includable in gross income for federal income tax purposes or in taxable net
O W m l "W^ ^ I 10 11 N I N I V V I 10 11
U v ^^~ ~ W " ' ^ ' W I W ' W " income of individuals, estates and trusts for Minnesota income tax purposes. Interest on the
U N C 1 10 = N N N 1 to II ^ ^ 1 " I " I 10 II
Qr y 1 C•O - - 1 - II - I - 1 ^ 1 I II
E 1 ° > = 10 N 1 _M " < I a 1 � 11 Bonds is includable in taxable income of corporations and financial institutions for purposes of
O 0 C 1 1 > 7 O 1 11 1 1 W I W I 11
Z - L I ) m LL M I M 11 N 1 1 N I N I M 11
> ' �' » N " » 11 the Minnesota franchise tax. Certain provisions of the Internal Revenue Code of 1986 as
> 1 I 11 I 1 I I 11
2 W > C.o I I 11 1 1 I 1 11
oQ-- 1 1 11 1 I 1 I II amended (the "Code"), however, impose continuing requirements that must be met after the
S >-Y 1 O V 10 co O oo 1 10 11 "W O"O 1 W 1 M V I I- I 10 II
r ~ L. °m° M° ~ " N^~° ' N ' "W ' ° ' ~ " issuance of the Bonds in order for interest thereon to be and remain not includable in federal
Z
L. I /0 V Il'J N M O N 1 to 11 N W o7"O I 10 1 W N I N I /O 11
6 O IO I L - - - I -11 - ` ^ - 1 - 1 - I 1 -11
Z a m ° M V~ a° v M 11 ~<N W° 1 < I ~ gross income and in Minnesota taxable net income. Noncompliance with such requirements by
• E I G 7 ~ M O W I ° 11 W r- 1-O I " 1 M r I V I o II
H W O I 0 W to M I M 11 N M 1 " I 1- I I- I M II
y U 1 -" the District may cause the interest on the Bonds to be includable in gross income for purposes
J I 1 11 I 1 1 I ^ II
o a 5 1 .J 111 1 N " 1 1 1 » " of federal income taxation and in taxable net income for purposes of Minnesota income
H ' O 7 !- 'A .
o E d taxation, retroactive to the date of issuance of the Bonds, irrespective in some cases of the date
Lu in to 0 " 41 y on which such noncompliance is ascertained. No provision has been made for redemption of or
W m � for an increase in the interest rate on the Bonds in the event that interest on the Bonds
z r y a m c m° W m o m becomes includable in federal gross income or Minnesota taxable income.
Z M F 0 > N OJ h S a� N O T w
N 10 >0 y E L I- of d n m
J Lu m > r+' Q n.o O O m LL +J
a W W y C raw m�J O l0 in a)co co d E m u a) z - m - - Interest on the Bonds is not an item of tax preference includable
in alternative minimum taxable
OW z m K C t W OJ Q �r = L
2 W S +` N 0I� O�—7 } 0 2 o y C N m V
° c L 41 > C 4J C > m = m o W ° W income for purposes of the federal alternative minimum tax applicable to all taxpayers or the
m O No CO = wV woo N rJ 77 ^ ncmC
= E t E°LL o = L _� _ � W c I w Minnesota alternative minimum tax applicable to individuals estates and trusts but is
° o 4110 E UIva Jo o >.L- 9 dm m c� cc c f )
U Z 0 0 11 0 L L C 10 l0 W o L y L >r r r L 0 o V 7 11J
Q m > o � m E o 0 - w - m m a a d r > LL includable in adjusted current earnings in determining the alternative minimum taxable income
» > I4LL of Erra O - a . LLC W a7 0l aJ W > C'O > O
N C C r N aJ J.J d d 0 H W N a V J.J >^>• >.JJ C m L W y L 1-
m IA°° _.1 > o W d �, ° +J = 0'a > 0 m J of corporations for purposes of the alternative minimum tax. Interest on the Bonds may be
W V Q >.N -aar MrJt.3V man N a E m L y m L N aJ
N V N d L >. F a.f C 0 O L O T r V c m o m o 0 O
m =.J z o o aJ N N r = = L,.J L 0 0 -- Q L-
< o r L o L includable in the income of a foreign corporation for purposes of the branch profits tax imposed
/0 C W L L yJ r L.0 4J J r O L 0 0 y .1 41 4) l0 m ='O 4) c
0 C W a = C m r 0 0-o m w c o C > ° C ° by Section 884 of the Code and is includable in the net investment income of foreign insurance
tomv man= = macJ �aJ = moo vocm =
muXmmal > aJ000 aloaao°°mz cc�l+m W
U<~ J J LL companies for purposes of Section 842(b) of the Code. In the case of an insurance company
IV-4 - 5 -
- I °,Ot-COMt-ON 1 to I ImN tOMrt rt0 1 -C 1 W I Nt-t-
I ot-to .-. Ve co Co I O 1 Nv WN�Mto n W 1 toWW to 1 -4 to
I CT t-�-V co W M W I L1_ 1 W LO N t0 ..0 N I N 1 in 1 .-1.-1.-I I .-1 1 efw W I N 11
such payments to Direct Participants is the responsibility of DTC, and disbursement of such o o 6 N o C o { o M c°a c,C, ' - 1 N 0 N I LS f o o
i o f�
payments to the Beneficial Owners is the responsibility of Direct and Indirect Participants. 0 1 -4 N M 1 I o 1 1 1 �* I M
I „
1 N N t C° I .-i M I pp 1 .-. I .-C.-1 I I `.
1 !A I I I 1 v l v l I t0 1 ty 11
h � I I 1 I 1 I I 1 I 11
Beneficial Owner shall give notice to elect to have its Obligations purchased or redeemed, �� i
through its Direct Participant, to the nominee holding the Obligations, and shall effect delivery of Ey I' N N to M N Q,Cb i i tc N t`t-co-4°, 1 O i w
i o M cn i o i t- cc i M i
such Obligations by causing the Direct Participant to transfer the Direct Participant's interest in o M N'" au "�'`°'� `° °' `°°'�' N N 1 w I
M , , o° is
I C9 t- -t C%-t OM- 1 ti� I V t wW to Nt- 1 N 1 N 1 NC°C° I N I O N I N 11
t N 1 O C°N tO -1 N CO to M , V' , M N C.;CO,-1 CO , Cc , N , CT M CA 1 M , t• .-1 1 CID II
the Obligations, on DTC's records, to the nominee holding the Obligations. The requirement for 1 N °° N I i �WN W °° i c I i 1 1
physical delivery of the Obligations in connection with a purchase or redemption will be deemed I N I I M 1 1 I N I N 1 11
satisfied when the ownership rights in the Obligations are transferred by the Direct Participants
on DTC's records and followed by a book-entry credit of purchased or redeemed Obligations to _
.- r+ e>• M T i CO i tO W 1 rl 1 M I O O N I N I O M co 1 co II
the nominee holding the Obligations. V (D co o le I M 1 N 1 , o , o 1 1 co ti , 0 11
to M CO .-. co '-� , "'I , .-� °� 1 0 1 T I N M N I
cc! I N N In I co 11
CD e. 1 N I M M I ti I CA 00 M I I I ry 11
V a "J � to N M.Mq i N i N O' 1 N i I 11,.�-1 N t? I tD M Cep 1 11
DTC may discontinue providing its services as securities depository with respect to the w �► I M i i ! N N N i M 11
Obligations at any time by giving reasonable notice to the Registrar. Under such 1 1 i i 1 i
circumstances, in the event that a successor securities depository is not obtained, certificates
are required to be printed and delivered. t° 1 1 .�M i I I , I Is
W N to I CD I tO O I tO I W I co 1 00 1 N CI t I M 11
}, V to M[ O 1 r1 I 1`N I CA I N I to to I Co
The Issuer may decide to discontinue use of the system of book-entry transfers through DTC 0 >c co o °� N i —4 N i i I V La N LO i N 11
A 5. 7 C 1 0 1 0 I co I •'fir I N I N I
(or a successor securities depository). In that event, certificates will be printed and delivered. w "'
� II
1 1 1 i i i i i i1
The information in this section concerning DTC and DTC's book-entry system has been _
co 1.1 LO CO to 1 lO I ti N O 10 I tO 1 O In I to 1 N M I V' 11
obtained from sources that the Issuer believes to be reliable, but the Issuer takes no tv CO La N LO I I O O N 1 N , V I c co ,
O „
Z to °, M tO co tO I N I V'14 V: 1 M 1 M. I O N I N I CO rt I t� II
responsibility for the accuracy thereof. v c M ' t N t � q 0 N U 1 o N
A ~ LL > ~
Z S. a i i i I�I i I 11
AUTHORITY AND PURPOSE CO N M tY N i W i M 0 t-t-M 1 c° 1 o i too i to I to co i M ill
o O .-1 Cc t-to V�-4 1 W 1 00 CD ti C°M 1 ao 1 00 I M O I M I .� O I N It
W 1.� C° CO v to V:M.--I 1 M 1 O N tb tO-W I N I O I l^O I t w i 00 t.1 1 to 11
67 N r, co to V' t`C°tO 0 i t• 1 °) n.-I tf') i H i C° I V'lt) i C, , to O I O II
�
� co v) i C? I to Lnn V U') I N I n N I O W I M tl
The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. The i "' i 1 M I I I i
proceeds of the Bonds will be used to finance various street improvement projects within the A w a
City. The composition of the Bonds is as follows: a >: o
W F 0
Project Costs $1,405,754 ° W Z a N
Plus: Issuance Costs 21,050
Allowance for Discount Bidding 16,500 E w H o
Capitalized Interest 56,696 N a z
° W z
Total Bonds M
$1,500,000 �. va a a
F W W W > O
o id
UW O C7W co y to o
W -� A 7 > + C to �•fl M � C � >
SECURITY AND FINANCING o a A p�� N y a w rte'• c a d
J 14
F z tC m y d ° cd m p C w U fl w >.
Z W E" 45 V v, i~ C obi [ G w
In addition to its general obligation pledge, the City pledges special assessments levied against x > c, ;3 ZE o y v C y o td ° .J a o
-da benefited property. Special assessments in the principal amount of $309,101 are expected to H w v ° v ' [ o ,, °
°
0 N a° w °W F a
be filed on or about August 15, 2002 for first collection in 2003. Assessments will be spread H o a p k IT. > > �x n 2 r. v c o N ; d
fTl W
$. m 0 $4 2 �' d � to N 1. +' �' iV % U U w°' `� y �
over 15 years in equal annual principal installments with interest charged on the unpaid balance H a a ; to iv ; a 3° o > e w W w o o a [
at a rate of 6.5%. Capitalized interest in the approximate amount of $56,696 is included in the °w x °' to e a M ~ rn > `—' v a ° w
principal amount of this Issue to pay the February 1, 2003 interest payment. Thereafter, special ° a c F c r A a n L. H ; u o
N d W.., .G.-. C a� v W Z 7 0 t0 d
assessments and levy collections will be in an amount sufficient to pay 105% of the interest o i> o to a ° w P-4 o i o a a a ° A U y a H F 0 In � r.
coming due August 1 in the year of collection and the principal and interest coming due a W W o W w a w
February 1 of the following year.
- 4 - IV-5
Purchases of Obligations under the DTC system must be made by or through Direct
to Participants, which will receive a credit for the Obligations on DTC's records. The ownership
O 1 d 1 N M I N 11
I ID 01 O N In M M N I N I N t1 to M V 1 1n I 01 1 M V 1 C 1 .•- 1A I 11 11
I CO .. . ^ - 1 , . . . ^ ^ . , ^ 1 , - , 1 - . 1 II
a �, I ° 1 ° I M N , 1 ° interest of each actual purchaser of each Obligation ("Beneficial caner° is in turn to e
m M M I to l N M 1A 1� V O 1 r• I ID 1 �to 0 I Io I O O 1 O II ,
' _ r m M N 1 °_ ' ° M m M I v I I_ 1n v , m I v I 1, recorded on the Direct and Indirect Participants records. Beneficial Owners
will not receive
C I _ I I . I 1 1 I I 1 II
O 1 N N I n l .- M I r I I I 1 an 1 to 11
01, 1 I I 1 I I 1 I «, 11 written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive
I I I I 1 I I I 11
I written confirmations providing details of the transaction, as well as periodic statements of their
~ °1 °m CND G I N 10 10 N V 0 In I I; ; 10 ; 2� 2 ; L4 ; I; holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered
into
O 1 01 V V fo ID 01 t0 11 to 01 N tD O V N I N 1 N I I I O I N 11
E ' ° - - - - ^ - - 1 - - - - - ° - - - 1 - - - - - - 1 the transaction. Transfers of ownership interests in the Obligations
are to be accomplished by
01 10/ ONOONO MM I V I M V COO) ID 1 to 1 .- I 001 .T 11, 1 Io 1 11
tDN0 00 1 N 1 010 to 1001-0 I w 1 01 I NCO ) I CIO I O O 1 O II
M I ro 11n 1D 1 ° I _ I I 1 M I ° 11 entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial
N N 1 M ' ro ' ID ' � " Owners. Beneficial Owners will not receive certificates representing their ownership interests in
I M! 1 1 I I � 1 � I I I .9 II
I I 1 1 I I 1 I the Obligations, except in the event that use of the book-entry system for the Obligations is
M .- V O N V I V I t� M I O 1 Io 1 N to I V I N In 1 M 11
m M r° 0, , N , �, , ° ° , ° , discontinued.
�� 01 m 01 CO MID I t0 I O M I V I CD I OHO I I 1� 01 1 N 11
4j 0)'O N T V 01 O IM
0 I w 1 V V I CO I � 1 to �N I 1 O 01 1 II
r_ ° M M ^ ' T I ° 1 I ° 1 r 1 0 1 N I m II To facilitate subsequent transfers all Obligations deposited by Direct Participants
with DTC are
O. O 7 N V N I I M 1 1n 1 M I. V N I 10 I Ip N 1 M 11 1
10 L LL H - I - I _ I - I ^ I - I 1 v . 1 11 f
00. � 1 N 1 M 1 M 1 � I w� l 1 M I N It registered in the name of DTC's partnership nominee, Cede & Co. or such other name as
requested by an authorized representative of DTC. The deposit of Obligations with DTC and
In° ° I N ; 1 m ; 1 °° their registration in the name of Cede & Co. or such other DTC nominee do not effect any
M O I N I to to I V I N 1 IA to to I to I m I-
4J O II Ili 0t 1 1 v 1 1 e 1 o I N 1 ° m I II change in beneficial ownership. DTC has no knowledge of the actual Beneficial
Owners of the
+� u N � I 1
"r•G 01 t0 t0 11 ID ti I V I N I In can M I 117 M I m II
° > _ ° N 1 1 M 1 I o I I_c, 1 Z. 1 ° M 1 N II Obligations; DTC's records reflect only the identity of the Direct Participants to whose accounts
O L
°LL «� I _ I I - 1 .. 1 1 .. ° I such Obligations are credited, which may or may not be the Beneficial Owners. The Direct and
Cn I r l I r l I I I N 1 t- II
Indirect Participants will remain responsible for keeping account of their holdings on behalf of
r` o N o1 01 i ti ; U�M o i m Ir i o o i o 1 01 v 1 M their customers.
N
o O M o I V I M W 01 I m 1 "I 1 O V I to 1 m I O 11
0) O O M I M I I V I m 1 O M I to I N 1l] 1 11
t0 7 D I. II
W r IV O v tD to N I I- I N r M I � 1 01 I 4 1 I Io 1 CO V 1 M 11
co ° > = <' N ' I M I 1 I 11 Conveyance of notices and other communications by DTC to Direct Participants by Direct
2 m O) > 7 fA I N I 1 N 1 I 1 1 r N I < 11 1
¢ 01 a 01 LL I I 1 I 1 1 I I H II
W I I I I 1 I 1 11 Participants to Indirect Participants and by Direct Participants and Indirect Participants to
¢ I I I I I I I I II ,
m L Beneficial Owners will be governed by arrangements among them, subject to any statutory or
Z w I I I I 1 �"� I I I I I
m 1 M I v In In M m 1 In 1 m 1 0 1 I I m II regulatory requirements as may be in effect from time to time. Beneficial Owners of the
LL N N to N N V V V I � I m O to N O I OI 1 � 1 V M I IA 1 to V I O 11
O V In to M t0 I m I m N N IO O 1 " 1 1 -1" I M I - N 1 11 Obligations may wish to take certain steps to augment transmission to
them of notices of
Z IO'O _ 1 I I -I 1 I - I I II
n.1 o L C M OmIOO N� I m I t-P ID M 11A 1 N 1 Iol-
a 1 1 �• tT 1 O 11
° a = N M°N 2 1 o I N In V 1 1 M I m(4 1 1 < I II significant events with respect to the Obligations such as redemptions defaults and
proposed
(n H LL Io N 1(1 I M I 1l7 01 V 1 0 1 N I I I t� I CO II f I 1
W 01 ^ I ^ I - 1 ^ 1 1 v l l 1 N 11
0 m ° r 1 M I _ I M 1 1 1 1 1 It amendments to the security documents. Beneficial Owners of the Obligations may wish to
"' 1 1 1 1 1 1 1 1 11 ascertain that the nominee holding the Obligations for their benefit has agreed to obtain and
0 W transmit notices to Beneficial Owners, or in the alternative, Beneficial Owners may wish to
Y a>. E provide their names and addresses to the Registrar and request that copies of the notices be
0 co° `u provided directly to them.
S K Z L L
. °
zr •r +
Z a 3 Redemption notices shall be sent to DTC. If less than all of the Obligations within a maturity
to 0.Z a) a -- m In are being redeemed, DTC's practice is to determine by lot the amount of the interest of each
LL Lu2: w a`�i aL1=
p ^Z _ L p Direct Participant in such maturity to be redeemed.
z°M °°
U p Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to
W W N U N O
W_j� r L a) N In > C L. the Obligations. Under its usual procedures, DTC mails an Omnibus Proxy to the Registrar as
Cr¢W N U a) C 0)10 N N O C W 1
LL W L 4J o�C �' > m Y soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting
p 0 C L m O 0) m 7 7 C1 O) L 4-
N D, D, - LL LL = m ° L or voting rights to those Direct Participants to whose accounts the Obligations are credited on
H G a) > N In a-1 'D N 1f, a� ro
Z W X w ° 1- 0 d ° L L r �-r C the record date (identified in a listing attached to the Omnibus Proxy).
W 1� IO N a.1 C a.l L 10 O) O V 01 0) C O - C Y
Y 2 F- a•+ C 7 a.l M L L N L L ro C •r
W W C E 01 a1 N C C N = . 7 a1 Y I. N C 11.
H >, W L A L � E In 0) O) ro a.1 a.l >. 0 ro 00 r T G C O
¢ I +� E 0)4J L O) O 0) E U N � U W to LL V X
¢ L �,a = =w „ N _ _ ° _ E-� = w m Principal and interest payments on the Obligations will be made to Cede & Co. or such other
y W w In O) U L c 01 c L >. w III U c Ol M E O O L N 0) C
Y O. 0.0 E O►+ 7 0) O1�J 1n C r 01 W C O L 41 O) •� L m W /
0 0 In = c L LL c > > °Y DI � °� a U L 4- r ° nominee as may be requested by an authorized representative of DTC. DTC's practice is to
W W L In IO L 0 L/ DI 0) In O W L 4.1 7 C X — U 4- 1.1 •� > 0) O)
2 2 O. ¢ d 4- C > Q_' 0I() CO O C 0 > 01 W W = N N p 4- 0 V U
Z In , c ° ° L N a L E �, In L L �, _ = credit Direct Participants' accounts on the payable date in accordance with their respective
m m O In ro E Ix � - ro 01 0) O c 10 0) 0) O to t0 ro ,
X x N m A In (r 0) +1 m 10 ° ° = m In � -- d�4- ° -- 4) holdings shown on DTC's records, unless DTC has reason to believe that it will not receive
O O Q) L •r C L 0)N 0 L 4.) 1--r•� Y O N LL O) 0 fn 41 U ro ro
U LL 7 0) U O! O) L O) 0) 01 O � 0)r r y-._, L O N U C C O 1n L m m
° _ >t c =S.0 L as a In L ° ro ro In ° payment on the payable date. Payments by Participants to Beneficial Owners will be governed
O) 0) O. J C L•r C a.1 W 0) 7 7 t0 t0 01 E 0) O) L L L O) O
C.7 m J..U LL.,o x c�a a a v o.. X � a 1•_ X m ; by standing instructions and customary practices, as is the case with securities held for the
W W 0 W LL IA. accounts of customers in bearer form or registered in 'street name," and will be the
responsibility of such Participant and not of DTC (nor its nominee), the Registrar, or the Issuer,
subject to any statutory or regulatory requirements as may be in effect from time to time.
Payment of principal and interest:to Cede & Co. (or such other nominee as may be requested
by an authorized representative of DTC) is the responsibility of the Registrar, disbursement of
IV-6 - 3 -
THE BONDS
I I �
I OO Io I--N
I I Ot1D 0 r r M N00117M04M 0 1 W I I W Q Ln NMIt0 W M p M W W�lN/ 1 tD I W I O� CI I N I W 1-O I M T 111
O W
1 M I O I Cl! 11 I N 11
_ w , .. , , .. 11
General Description th 0 o M t.-M M 1 M 1 M o o Iq ;.:;v; 1 < 1 0 1 Co�W , M „
T 1 T �0,V OMI�M CI I CI-I 0P. OV "a r. I Q! I O I Co Lo Ci I Q I 10 10 I O 11
I W co M N I CI I tD Q N O)r I W I CI I t0 C/W 1 1 O I CI 11
C 1 I ^ I - I ^ I - I v , I ^ I •• 11
N ° 1 N I Q I .•- N I '� 1 v l I I v '� I N 11
The Bonds are dated as of March 1, 2002 and will mature in the years and amounts as set forth
on the cover of this Official Statement. The Bonds are issued in book entry form. Interest on 0 a 1
F- W I Qt0 st 1O N OI t0 t0 I N I 01�W 1� .- 10N I 1 Ol I M Q o� 1 01 I O OI I O+ 11
the Bonds is payable February 1, 2003 and semiannually thereafter on August 1 and L I ("Q V N Q W i,Q I W 1 L P_1n W M , r , N , r-to co I
Q I M 1 n 11
O 1 t0 01 W N W M M 1O I LL'I I N r Q t0 M r Q Q O 1 1n I 10 11
February 1. Interest will be payable to the holder (initially Cede & Co.) registered on the books E ' W " " - " ' " " ' ' ' ' � ' ' ' ' ' ' ' ' ' ' ' '
' ' I
W I OI N 10 W M W M M I 1n I r N CI CI CI M I 10 I O I t0 M N I r I 10 I r 11
Z I C/ I�10 CI W r W MM 11O I A NM1O 1�Q0 I U, I ID I X100 1 W I O O 1 O 11
of the registrar (the "Registrar") on the fifteenth day of the calendar month next preceding such ' " ' - W W M N ' ° ' W W ° M W M ' 1n ' v ' W v , W 1
Q ° , M 11
I I I 1 I I I 1 ^ 1 11
I N N 1 1 M I N I I 1 I N 1 10 11
interest payment date. U.S. Bank, N.A., St. Paul, Minnesota will serve as Registrar for the 1 ,el' 1 1 1 1 1 1 1 I «► II
Bonds. The City will.pay for registration services. Principal of and interest on the Bonds will be _ _
"Book • Q W M M W O 1 1 W N I A 1 O I 1n 14 N I N I N M I N 11
paid as described in the section herein entitled Book Entry System. W W � N �� , O , � M , O , O , r`W N , � , � Q , �, „
4I N O W Q I M I Q I N T I W I Q Y7 I O/ 11
t0 U 01 • I I ^ I • I • I • . 1 w I • - 1 ^ 11
+j W _ r M Oi 10 Q I N I f� M 1 W I 1O W O I N 1 V 47
'0 C CI A.- O M I M I N O I M I 01 I A , N I N O 1 N II
O.O 7 N co N N+- M I W I A I Q 1 O I N O 1 N II
10 L LL ei} I I ^ I ^ I t/ 1 �/ I I I ^ 11
U Q. I N I M I M I 1 I - 1 M I M 11
Optional Redemption
W I- 1n 1 O 1 M 10 1 1 I co 1 W 1 C. Q I M
The City may elect on February 1, 2010, and on any day thereafter, to prepay Bonds due on or , Q , W� , �, , 0) , �, , M M I ti
O M 10 01 I CI 1 f• 1 W I O 1 A I 01 I W O I W 11
after February 2011. Redemption may be in whole or in art and if in art at the option of the ° N - - ,
rY I P Y part P r C W co I 10 I 1O CI I Q I N I N M II
W > C co 1n W I M I Q Q I CI I Q I 1 I Q o+ I M II
City and in such manner as the City shall determine. If less than all Bonds of a maturity for an ° L ° .- , O I W I W I co , O „
W LL. 44 1 ^ 1 1 1 1 1 I 1 11
issue are called for redemption, the City will notify DTC of the particular amount of such
I I 1 I I I I I u
maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in
M Q 10 �• I W I co t0 N I 10 I OI 1 O I O I M In 1 Q 11
such maturity to be redeemed and each participant will then select by lot the beneficial U7 W N O I N 1 W ti .- I u7 I W 1 O I O 1
W 1 W „
W N t0 N b I I Q 47 M I M I M I O I O 1 M N 1 27 11
ownership interests in such maturity to be redeemed. All prepayments shall be at a price of par ,. co ' N c ' ' - ' ' ' ' ' ' ^ ' - ' -
- -
W C'O M In W I O I I.-W co W 1 0 1 O I O O I O Q I Q 11
U V W C M Q Q r I Q I N N ti
plus accrued accrued interest. W > 0 N M I �'• I 1 I I N r I N C 11
J OOi W)LL
I I 1 I I I II
to 1 I 1 I I I I 1 11
L
O O
Z 4- I I I I 1 .-. I .-� I
Book Entry System _ CI Q W M N,n 1 _° I N- W 1- I CI I O 1 1 O � 1 l;
LL .W _ W V 10 t2 co�I� I I co N I.-1n.- I Q I W 1 O W 1 t0 I O Q I Q 11
CI W Q M 10 Q 10 Q I QI 1 O I O 47 I 47 I 1O r I N 11
Z W t0 - I I
I-• N L C to 10 10 0 Wµ]M I W I M Q N MCI I 01 I W I W �• 1 10 I W 'CO) 1 CI 11
The Depository Trust Company ("DTC"), New York, New York, will act as securities depository W d U. W ° ^W N ' Q ' Q 0) M 1n N ' 1n ' W ' W M ' '0
' Q "
!'n F- C LL 1n 10 117 1 0 1 10 N Q I W I I N I 1 I t+ 11
1 - 1 - I ^ I 1 v l v 1 N 11
C7 W C7 .-• I 1 I N I 1 1 I 1 11
for the Obligations. The Obligations will be issued as fully-registered securities registered in the > � t•7
name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by °W L
an authorized representative of DTC. One fully-registered certificate will be issued for each Z a a
maturity of the Obligations, in the aggregate principal amount of such maturity, and will be >.W o N
deposited with DTC.
Z __ � °
Z F LL
"banking is a limited-purpose trust company organized under the New York Banking Law, a <°Z 3 L W
1-W 1-W C N
banking organization within the meaning of the New York Banking Law, a member of the co W� x y t
Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform ° ^Z � o
Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17A n o
O N io p
of the Securities Exchange Act of 1934. DTC holds securities that its participants ("Direct "�J m N N U N 10
" W_a S W L t/1 N > > 0 W
Participants ) deposit with DTC. DTC also facilitates the settlement among Direct Participants ix <W N ° W ° W M N O ° W
U W•� L W 01 C rn W N >
of securities transactions such as transfers and pledges in deposited securities through LL W ' ' L �' O = N > W
' ' ' ° ° N d d t ° 0]li C C C 7 O L
electronic computerized book-entry changes in Direct Participants' accounts thereby ° W >co N 4J N�- _ to
' - W O m N�I 0 YI L O C N 4- W O L LL U 4.•� = W
eliminating the need for physical movement of securities certificates. Direct Participants _ Z I- *)- _ _ W m ` W t L ° r }
W W C E W L.1 W C C N 7 7 r�..I W C W C 4-
F A W C W L•.- E N W W 10 41 a> >. O td O L •� >.a C O
("Direct Participants") include securities brokers and dealers, banks, trust companies, clearing 1 < ir 4J E W 4j L W O W E V N ° 0) to LL °
%
H < L. VI 0. 0 7 4- u m 7 c c >. O 'O c E O C tiJ 0
corporations, and certain other organizations. DTC is owned by a number of its Direct W W W to W° L = W ° L J C W ° W ° E ° L W
W
> 0 W c E O n+ 7 W W+� N C W W C O L 0 W L m W
Participants and by the New York Stock Exchange the American Stock Exchange LLC; ° N ` ` L LL W > -" W X " -"'"
W W L N 10 L O a.I W W N O V- L �./ 7 T C % V 4- yI > y W
1 Inc.;f f Z S d < W4-•O C > K WO l0 O C O > W W 4- C N N O 4"0 U U
I-1 _ N > C W W L (O 3 L E W W 0 L L _ W c c
an the National Association of Securities Dealers, Inc. Access to the DTC system is also m W O N W E 0 1- W W W ° - W W ° to W _W
f N W t0 01 Ir W FI 10 4J 0 V V Z t0 N > t0 ..•. +- W 4-4- W ....W
O O W L r C L CI N V1 L yI L•,•- .0 O 42 LL W 01 01 4J V t0 t0
available to others such as securities brokers and dealers, banks, and trust companies that ° LL W ° W W L W W co O W Y- L ° N ° ° O N L m
c
C C W u+I t0 C >L F- C C M L a.0 O. F 01 L O W t0 ,- N 7
clear through or maintain a custodial relationship with a Direct Participant, either directly or W W nr =r C 45 W W = = W W W E W W L L L W O
f7 rn J N U LL►r O w�a n.a U°►r W O W y li ti
indirectly ("Indirect Participants"). The Rules applicable to DTC and its Direct and Indirect Cr
Participants are on file with the Securities and Exchange Commission.
-2 - IV-7
��7NeN�y� 1
to to I O I N 11
I ,dj p t0 V:0 N V�t't0 I �4 1 V'N N N V� I N 1 It N N I C I 11
C. 1+ M O V• t0 O t0 I N ; M O O I V' I t0 + t0 10 I O 1 t0 11
.� O ; N OI N P I N I P-�P V' I O I M I N I N I M II
}� > 1 1 I I 1 1 II-
o ;w OFFICIAL STATEMENT
I
a I I 1 I I I I II
1 V•N V'O N O O 1 rt l t0 N t-N M 1 1C1 I t0 I 10 I I O l t0 .-t 1 t- II U'l 0 1 t00 W<IO" "I �W I N I W V-W ttt09-.^'-t I W ' V'
1 t't: I O I 7 co I N 11
p ; O.0.1 a O O M N ; cr+7 ; 0;0'N tt0 O Pi09 ; M O I N O I M ; N cc ; O 11 $1,500,000
t0 1 N t V W 1 t0 f I �v I I ~
.ti 1 .i 11
1 1 CITY OF ST. ANTHONY, MINNESOTA
1 I I I I I I I 1 11
-' 1 1 I I I I I 1 1 II
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2002A
3i °o�v °°° ioi I ° I oI °oI ° I c11
O I t-O to N 0 0 0 1 O I t0 N 0 0 r I t0 1 O 1 O O 1 0 1 O I I
F 1 0 V NV'O O O 1 0 1 Onto^CO tO 1 0 1 O 1 00 1 0 1 O II
bo N t o o N_ N ' N W N 1 C N W (BOOK ENTRY ONLY)
V to 1 7 tD N n.••t N co t0 O b 1 W , N M Nf , 1 cu, 11
1 1 I 1 I I 1 1 11
t- to N N N t- o o N I N o INTRODUCTORY STATEMENT
I U A IT 0�V' win I t0 I M.-1 Ot I M 1 t'7 I O N I N I CO 11
I U 0 I I 1 I 1 1 II
1 C W t0 M M V• 1 r 1 I v C a 1 t0 1 t0 O t0 1 tt1 O II
1 � O y N.ti 1 0 1 ^.. N.. l l i N N I N LO
N II
Cd
° 1 This Official Statement contains certain information relating to the City of St. Anthony,
t; I �.
w I 1 1 I 1 1 I 1 I 11 Minnesota (the "City" or the `Issuer"), and its issuance of $1,500,000 General Obligation
co -4 t0 t0 In 1 t0 I t-N O I -M 1 t0 I O t0 1 tt) 1 �+ M 1 V• 11
°° N to I I °° N I N I V. I °t- 1 ° ' ° ' Improvement Bonds, Series 2002A (the "Bonds," the "Obligations" or the "Issue"). The Bonds
I t- t+f IA W to ; N I v_0 v 1 Of I V. I O t t I N 1 t0 "'� ; �11
G I y M T N.�•1 I M 1 -W M l tNp 1 i0 I N-�+ 1 0 1 .N•1 1 N II
> 1 I N I 1 c, 1 _ ; I ; are general obligations of the City for which the City pledges its full faith and credit and power
to levy direct general ad valorem taxes without limit as to rate or amount. Additional sources of
I 1 1 I I I I I 1 11
1 authority and pledged security for the Bonds are described in more detail herein.
� i o °° °oioi °° oloi i oioi 011
al 0 00 00101 00 0101 II olol ou
1 o �, o 0 1 1 ..o to 1 1 1 0 1 Inquiries may be directed to Mr. Roger Larson Finance Director City of St. Anthony, 3301
I �� Io1 � � Io1 I � IN1 X11 '
14 ; N ; I N I N ; N ;; Silver Lake Road, St. Anthony, Minnesota 55418 or by telephoning (612) 789-8881. Inquiries
may also be made to Springsted Incorporated, 85 East Seventh Place, Suite 100, St. Paul,
w Minnesota 55101-2887, or by telephoning (651) 223-3000. If information of a specific legal
M-o v=e- i 1 tp t0 N t7 N ° 1 matter is desired, requests may be directed to Mr. Jerome Gilligan, Dorsey & Whitney LLP,
1 I I N N I 1 I N ; ; `° ;; Bond Counsel 50 South Sixth Street Suite 1500 Minneapolis Minnesota 55402 or by
aT I Cd O 0 N o v t0.+400 i °CO i 0000.mi t- t0 i M ; M I N ; N i f f f f f
W 1 r telephoning (612) 340-2962.
z!n I W C 1 1 1 1 I I 1 II
(r,Z I 1 I I I I 1 I 11
1
nZi GL C 1 I 1 1 1 1 I I I II
I t0NMV'N V'0 1 tD 1 01O[ M 1 W 1 O 1 CnO 1 M 1 0 co 1 M II
ts7 0 I O.-I t0 1l7 V•.-t I t0 1 O W W t0 to I W I O 1 t+7 O I t- 1 .-I O 1 N 11
l,w47 1 a'i X10-tOt�00N0 I /0 ; 00i O�00t>7M ; O ; I On ; N ; O C 1 II
w 1 I 1 I 1 ' 1 1 1 11 CONTINUING DISCLOSURE
t0"W to. .-I 1 t•f 1 t0 to V 0 "~ 0 1 O 11
I w 1 1 1 1 I 1 I II
U a'N 41 I I I 1 1 I I I 1 u
In order to permit bidders for the Bonds and other participating underwriters in the primary
offering of the Bonds to comply with paragraph (b)(5) of Rule 15c2-12 promulgated by the
Z 2W, I y mv�eN0000 1 I• b6-406,40
OR w W 2 � C Ip O v C r Ul) '` N ' to � °In I ° ' Securities and Exchange Commission under the Securities Exchange Act of 1934 as amended co 0
4.
tO Of r-Ln V i CO-I W t0 t0 0 t0 i Vw i CO 1 N` 1 N 1 II n '
b w 1 m I I I I -" (the "Rule"), the City will covenant and agree, for the benefit of the registered holders or
beneficial owners from time to time of the outstanding Bonds, in the Bond Resolution, to
provide annual reports of specified information and notice of the occurrence of certain events, if
ma w
o W W w a material, as hereinafter described (the "Disclosure Covenants"). The information to be
> ° ° — ° provided on an annual basis, the events as to which notice is to be given, if material, and a
summary of other provisions of the Disclosure Covenants, including termination, amendment
and remedies, are set forth in Appendix II to this Official Statement.
w
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$+
> m a w ° a w m Breach of the Disclosure Covenants will not constitute a default or an "Event of Default" under
° „ d
w A 6 0 n 0 m 0 o o the Bonds or the Bond Resolution. A broker or dealer is to consider a known breach of the
w y v O m 2 = A" to ° w �o m Disclosure Covenants however, before recommending the purchase or sale of the Bonds in the
Fd a v U 1i C y G 1+ ttl y C C pO 0.... ,, C m W f f
a o w 10 d d y- U d w s secondary market. Thus, a failure on the art of the Ci to observe the Disclosure Covenants
Fm , rC11 d > m >�,x,y> a oC ��-- r � s�.o d d ry p tY
a w a w ,,a°. ; �, o g ; g may adversely affect the transferability and liquidity of the Bonds and their market price.
° y d O t0 2 t�yy E U) O W .:+w °0
H1+ 4 110 m N It of ,O 1...U...0 Yt G. t0 0 L O pa O
pq C v a� C >L H 0 C L A'xt..0 F rn d S. m F m.Z
G1 py1 of W > d M 1,
Q > C7.7..Uli..,0 �t7aaa0 XO yFF KO t0 > >
a w w o w w w
IV-8 -1 -
I .-. i••. I 1 2 I I I 2.-. 1 � 1 u
I al V N NMF O W 1 W 1 � N10-W I ti I N 1 10r I N I O 11
11 a/r 01n 1DN V W M I ID 1 r MMI�01 I C I W 1 tOM 1 O I W 11
I Ol r,D IT Q r W t0 V-1 I M 1 r 10 t- N V I I V I 01 0 1 0 1 V It
I C tO L N N V v t0 N I 1 M t0 M a N I O I r 1 V V M I N 11
I O1 L 0 M N I 01 1 M O+ W , r I W I W V INI M 11
description of this undertaking is set forth in the Official Statement. The purchaser's obligation �_ o > w 1 N 1 ..., , , M „
I L > CO to purchase the Bonds will be conditioned upon receiving evidence of this undertaking at or I 1 I 1 I 1 " 1 w 11
I 0 M w 1 1 1 I 1 I 1 II
1 >LL C I I I 1 I I I II
O I 1 1 I I 1 1 11
prior to delivery of the Bonds. v I 1
E I I I I I 1 1 1 1 11
V M r o W 1 0 1 T W 1n M W I M I r l O 1 r` I O• , I I
I u'1 M 10 V W M I t0 I N W 10 N M I W I 1� I V M I -M I W M 1 .- II
OFFICIAL STATEMENT = ' r °��° °Q° ' 100 N°tr I ° I 10 1 MO 1 1 W I W 11
C I t0 - - ^ - - I - I - • - - - I - 1 - 1 - I - 1 - I ^ II
L I 7 W O 10"O W 0 1 10 I M V W 01 W I M I N 1 10 01 I N I 01 M 1 M 11
O 1 +1 ID N W O M10 I W I OW10 t0 M I M I N I O 1 I M V 1 00 II
E 1 U t0.'•W t0 r I 10 V r 1 M I N 1 N N O 1 N II
^ I
e City has authorized the preparation of an Official Statement containing pertinent = ; 44 ; M ; ; M ;
N I I I I I 1 I I I II
information relative to the Bonds, and said Official Statement will serve as a nearly-final Official r ,
t0 I I 1 I I I 1
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission. � 1 °N�O O° I M I O O O O O I O 1 h 1 CD O I I ° 11
O I V G ti ti 0 0 0 1 01 I 0 0 0 0 0 1 0 1 O I 0 0 1 0 1 O 11
1 1- 1 �•.' ^ O M r 0 0 1n 1 I W- tT tT 1n I t0 I W I M C I M I In II
For copies of the Official Statement or for any additional information prior to sale, any I d - - - - - - - 1 . 1 - - - ^ - I - I ^ I
- ^
I W N W r M O N N 1 V 1 W�r'W V I M I W I .-10 I 10 I N 11
prospective purchaser is referred to the Financial Advisor to the City Springsted Incorporated I n M W 10 °M< I ° 1 M W�,r�, I o , o I
1 m W N tD>- i N i W C,U, 1 10 1 N 1 N I ^ I W II
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (651) 223-3000. ti
I .n I 1 I I 1 I 1 II
1 I I I I 1 I I II
The Official Statement, when further supplemented by an addendum or addenda specifying the N ° ° °° °
I I a)r N W M W I v I 10 ID 01 I W I 1n I O t0 I 10 1 11
1 U.0 a O In IT 10 M I In I O 1- V I I M I O 1D I 10 I O II
maturity dates, principal amounts and interest rates of the Bonds, together with any other 1 W a _ _ . _ , _ , _ _ _ , . , _ , . . ,
u u i m L- 0 en "' '�°f i 110 i W°' °`�-° i ib
information required by law, shall constitute a Final Official Statement of the City with respect 0 ; «� ^ ;
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any >
"
LL C I I 1 I 1 I 1 11
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no = I 1 I 1 II
LL i O N O O I I ID M O I W I M I Q 0 1 0 1 01 V I M II
more than seven business days after the date of such award, it shall provide without cost to the 1 N W M W , V I M° , W 1 I ° , ° , W ,
(/ 1 r O O 1� r•M I M I r 11 01 I V I --1 I O M I 10 I O N I r 11
senior managing underwriter of the syndicate to which the Bonds are awarded 65 copies of the C ; 0 1� � N ; M; ; o ;
N I N V V V N I ti I N M O) I 10 I I N N I 01 I OI I r 11
Official Statement and the addendum or addenda described above. The City designates the ; ; �» ; N ; ; N ;
I
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. .. „
N I O 00 00 1 0 1 O O 0 1 0
CX
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its o 1 ° °° °° 1 ° 1 0° O 1 ° O O 1 O 1 ° II
fn I W O 10 W u]O I W 1 W O 10 I M I 1n I O O 1 0 1 In II
proposal P Y City (i) P g (ii) ' - - - - - 1 - - -
ro osa is accepted b the Ci i it shall accept such designation and a it shall enter into a 1 m �_ �� W M
I 7 1A V r
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.
I d r�NI[1ti01 T I W I t010 tlIr W 110 1 M I 10� I N I r- 11
11 alr r 10100 V 1A V I I I OT Mf-O f 0 1 N I t0 tT I 10 1 t0 11
Dated February 12, 2002 BY ORDER OF THE CITY COUNCIL 1 r m - I 1 N 0 N O 1 M 1 , O1 , W , V
I V L W - I I 1 - I _ I 1 - 1 II
W I C 10 L 1A N W M 11 10 10 M 01 M 1 1 01 I V N'1 I •-• II
U 1 W L. 0 44"( v M I T N I I N 11
O > r I N I I M I II
Q I L > 10 I I 1 1 I v v I v l N 11
Q I J LL tO C I I I 1 1 1 1 II
m 1 v 1 1 1 I 1 I 1 II
/s/Connie Kroeplin o ;
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Clerk =O C I V r v ��;M I M I V In In M W 1 u7 I W 1 O r• I r` I f` ; W i1
LL Z 7 1 _ • N 10 N N V V V 1 1 01 0 10 N 0 1 01 I 1 V O1 1 W 1 10 V I O 11
M LL I O V 10 t D M t 0 1 W 1 W N N b 0 1 01 I W I M t 0 I M I V N 1 N 11
Z LL I A - - - _ , , _ _ _ _ , _ , _ I _ _ I _ I
ID r A W OM M _
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to L I V 1p 10 I M co I 1n 01 V
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Z I-•1 M I V O N O O O I 01 I O O O O 1 0 1 O I O O I O I I 11
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a aL O C L T N y Y L L i L. t0 tO
LL N f!1 41 v L O t0 t0
U 7 N N W L m W N O � al r r Y N O 0 L C C O N d M M
C C U iI 10 C >r I- C C.0 M L r 1- Ul al L t0 t0 F IA r
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1 ^ ^^ I I ^ ^ 1 I 1 ^^ 1 ^ 1 II
1 O W Qr rrM O I A I O�NMM 1 Ill I N I Nr I M I Q1 II
I I m� Il1Q ai Q r MN 1 1 o N QN I O 1 r l co 1D I Q I ID II
as r< r 1 1 1 0 0-^ N 1 ° 1 0 1 0. 1 1 M 11 be withdrawn or amended after the time set for receiving proposals unless the meeting of the
I—V d W I 1 I 1 I I I .II
1 C Ia L M N Q I° O t I r 1 O N an r I m l O I N/D I co 1 r 11
1 ` ° w M T v v r 1 1 �, I , , v , M , M 11 City scheduled for award of the Bonds is adjourned, recessed, or continued to another date
I O > I I I t M I I V I r l l
^ I L > W I I 1 1 I ..i I I N II
T ; >LL ; ; ;; without award of the Bonds having been made. Rates shall be in integral multiples of 5/100 or
Q1
1/8 of 1%. Rates must be in level or ascending order. Bonds of the same maturity shall bear a
E ' ^ ' ^ ' 1 single rate from the date of the Bonds to the date of maturity. No conditional proposals will be
7 1 NQ N t71 CA M tp I Il9 1 OI�tp 1�M I W 1 O I Or I I O) N I r 11
V 1 N Q II)r ap M� I M I w all t-N N 1 0 1 M I O IO I IO I 10 o I M 11 accepted.
C 1 Nat) . M Ip A I r. I N r Q IC S I M I Q I O IA I N 1 fD OI I CD 11
al I 41 _ _ . _ . , , _ 1 I I I • I
L I. 7 I�IDA Ma70r 1 IA I rrNO1N 1 0 1 W I Ilyr 1 ID I I 11
E I V co O l�1p al' T I m 1 I7 N M Lon o I o 1 OI I ISM I o I i.0, Q I Iv, 11
N 1 < r ; N1 emQ r ; off r ; Cm I of ;� AWARD
�-+ I I I1
v l r I M I I M I 1 1 r
1 r1 I 1 I I 1 1 I I N 11
Co I I I I I ^ I ^ I I II
.! ' ~°r O O 0° ' w ' O O 0 O 0 1 0 I N , N° , N I o 11 The Bonds will be awarded on the basis of the lowest interest rate to be determined on
a true
O I 10001 a!00 O I I Ill In 000 1 0 1 ao 1 W O 1 co I O 11
H 1 J N 01 Ol r•O I n O I O I N r N M I0 I Q I h 1 O O I O I O !1
II interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
I to MMNOIO O Q I M I r01NrQ 1 a0 I Q I AN I N I N II
I 3 to IO O IOOM Q 101 I r OM fO In I IO I A I N I to 1 01 11
I� r 1 0 1 Q I° I N 1 r I N- 1 I » II accordance with customary practice, will be controlling.
I m 1 1 I 1 I 11
M ; r I M I I I I I I
M Q e r ; ; N;, _N ; „ ; ° ; ° ; „ ;; The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of
1 I d^ In au M "s 1 N 1 M 1 L 1 W 1 1 ° 1 ° 1 m II matters relating to the receipt of proposals and award of the Bonds, (ii) reject
all proposals
I u r m I Q O I A I N II] t0 1 m I a0 I 0 1 0 1 a0 11
I V� a1 . . I _ , , , _ I •• I 1 11
° r ° ° " without cause, and, (iii) reject any proposal which the City determines to have failed to comply
1 a1 L 0 I M I N I I 1 O I O I r 11
I O > q v 1 I ...� 1 v 1 I r l l II
1 of al W I I 1 I I I I II
1 >LL = 1 1 1 1 I , , „ with the terms herein.
N I v I 1 I I 1 1 I II
C I
u. ; Q ID ; �, ; m N ; „ ; „ ; O ; ° BOND INSURANCE AT PURCHASER'S OPTION
1 IA at!IO N O I N I IO N , N I ID I O I O I IO
tD l N a7 u] Iq A I r I Q u•! M I M I 11
M I O 1 0 1 M N I N
C 1 7 r rM u'!a0 1 0 1 I�N IO I O I O t O 1 0 1 O Q I Q 11
m l M Q r I Q l ^N I� I M I r l r l r 1 N 1 II If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
> I V N I N I I N I I I 1 N I N II
m l Q I I 1 I I I 1 I N 11
therefor at the option of the underwriter, the purchase of any such insurance policy or the
I I 1 I 1 1 1 I I 11
r issuance of any such commitment shall be at the sole option and expense of the purchaser of
V 1 I I I I ^ I 1 ^ 1 ^ 11
g ; c 0 0 o g ; o ; g g o ; c ; Q ; g o ; o ; g the Bonds. Any increased costs of issuance of the Bonds resulting. from such purchase of
' � °° ° ' ° ' c- "- ' L' ' - ' -° ' °- ' "'" insurance shall be paid by the purchaser, except that, if the City has requested
and received a
1 d 1 I I I I I 1 11
1 OI to "m ti M I O I r Q I N I N I O O 1 0 1 N II
' r "= ' r ' ^r " , r , .. ' r° ' 11 rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
1 7 q I N I I N I I 1 1 N II
1 1 1 I I 1 1 1 II agency fees shall be the responsibility of the purchaser.
I 1 I I I I 1 1 11
1 m O D Q P 1 r N N I N I a o r N M r I r l M I N I M I O 11
"Q r I I I m Io 1 Q I 0 II Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
I fD�L 1�01QO<Or0 1 1 QQ"fr 1 01 1 1 ON I a7 I N II
1 VM a1 . . . . I . , . . , . , , . I • 1 •11
W 1 C a1 L r N m r r N N t r 1 m N°r„ , , , N„ , m , „ purchaser shall not constitute cause for failure or refusal by the purchaser to accept
delivery on
U I a1 L O M CA v N I t0 I N v 01 N I 01 I In I O h I M I 11 -•
Z 1 O > v v I r , r ..i I r 1 M I r I M 1 K 11
Q I L > Itl 1 1 I I I v.... 1 1 11
6 1 >LL C the Bonds.
m 1 v I 1 I I I I I 11
Z N 1 1 1 1 t ^ I ^ 1 1 II CUSIP NUMBERS
u.O C 1 Of Qa0 M 01 NI17 1 0 1 Nr1pr r l 01 I r l O r I r l O v I r 11
LL Z 7 1 IDQID h a0 r,� I r l a0N1�It7 I Q I 10 1 O t0 1 ID 1 O Q I Q 11
� LL I 01 aDQ re•!r0 I O I nloQlo Q I Ol I O 1 OI° I O I O I N 11
1-+LL 1 7 NmOO m If!M I 11'1 ' MQ N0101 1 W I Il•) 1 W.- I ID 1 at1 O 1 01 11
W 1 I° r N°, I Q f Q a M,°N I w- I m 1 I°M , I° , M , < „ If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed
on the
y O L 1 V Y'1 m W 1 0 1 10 n Q I m l r I N I I 1 11
W Z m l 4 I 1 1 I I I v l I .1,11 Bonds b
O W. C 1 I M I r I N I I 1 I 1 11 but neither the failure to print such numbers on any Bond nor any error with respect
Z>OI d 1 N I I 1I
`=z- " thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
U J . I 1 I t I
<„ I o g g ; � ; N o g ; g ; g m ;; Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
Q U 1 r-1 1�01 01 x 0 0 0 I W 1 N r N M I o 1 O 1 O O 1 0 1 11
W tr m . . . _ _ . . , . , . . . . _ , _ , . . , . , shall be paid by the purchaser.
Z M a W 1 T r M m r 0 M r , M l O N N r I W I N 1 N Ln I N I 11
2 1Y'n S I 7 N O I�Ln 1 at) I f�01 M IO I Ill I I Q
H 7 0 W I m . r ; O ; I D O ; O I v i N v I I M 11
Z F-•Z U 1 r I N I I M I 1 I I 11
..a W 1 w 1 SETTLEMENT
=J 0 I I 1 I 1 1 I 1 II
I.-d 1 W
u.
0 W Z Z ; • Within 40 days following the date of their award, the Bonds will be delivered without cost to the
>y 3 purchaser through DTC in New York, New York. Delivery will be subject to receipt by the
Z > m purchaser of an approving legal opinion of Dorsey & Whitney LLP of Minneapolis, Minnesota,
and of customary closing papers, including a no-litigation certificate. On the date of settlement,
LLaIY >> > >c N to >c >
coo o L ° v 7 ) ° payment for the Bonds shall be made in federal, or equivalent, funds which shall be received at
LL m >N N N" ; r X L the offices of the City or its designee not later than 12:00 Noon, Central Time. Unless
W� �y a L. o m" o W compliance with the terms of payment for the Bonds has been made impossible by action of the
W a7 ~ E m N m C 7 L. N 7 L m C m C W
° L L r e N m 0 °8 r _ O City, or its agents the purchaser shall be liable to the City for any loss suffered by the City by
Ia••m L a c L.Yom- V 7 C C M C 7 N O 'L C° N M � ! ' 1
m m a, L = m = L _ al++ =5 L m N d d r reason of the purchasers non-compliance with said terms for payment.
QLE Owl 1) o41 NC o CL
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m ° `_T "' " m . ' °°" m > m ` ` m J ` c r In accordance with SEC Rule 15c2-12(b)(5) the City will undertake pursuant to the resolution c
r_a7 J1-IULL►•I O lL C7 CL 11 a0 W O OF-H W O 41 LL !i 1 f
awarding sale of the Bonds, to provide annual reports and notices of certain events. A
IV-10
- iii -
CITY OF ST. ANTHONY
BOOK ENTRY SYSTEM ENTERPRISE FUNDS
COMBINING STATEMENT OF OPERATIONS AND CHANGES IN RETAINED EARNINGS
The Bonds will be issued by means of a book entry system with no physical distribution of FOR THE YEARS ENDED DECEMBER 31, 2000 AND 1999
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond, Totals
representing the aggregate principal amount of the Bonds maturing in each year, will be Liquor Utility -
registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"), Fund Fund 2000 1999
New York, New York, which will act as securities depository of the Bonds. Individual purchases Operating Revenues
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single Sales and Cost of Sales
maturity through book entries made on the books and records of DTC and its participants. Sales $4,742,093 $4,742,093 $4,662,867
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of Cost of Sales 3,432,132 3,432,132 3,417,747
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 Gross Profit 1,309,961 1,309,961 1,245,120
participants will be the responsibility of such participants and other nominees of beneficial Charges for Services $1,119,767 1,119,767 1,123,893
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the _
Bonds with DTC. Total Operating Revenues 1,309,961 1,119,767 2,429,728 r 2,369,013
REGISTRAR
The City will name the registrar which shall be subject to applicable SEC regulations. The City Operating Expenses
Personal Services 593,932 336,033 929,965 841,031
will pay for the services of the registrar. Supplies 42,933 28,154 71,087 62,738
OPTIONAL REDEMPTION Contracted Services 253,016 226,502 479,518 496,802
Filtration and Other Charges 92,153 92,153 76,800
The City may elect on February 1, 2010, and on any day thereafter, to prepay Bonds due on or Treatment Charges 378,624 378,624 433,037
after February 1, 2011. Redemption may be in whole or in part and if in part at the option of the Depreciation 86,026 94,329 180,355 188,825
City and in such manner as the City shall determine. If less than all Bonds of a maturity are Other Charges 120,263 120,263 106,141_ _
_
called for redemption, the City will notify DTC of the particular amount of such maturity to be --
Total Operating Expenses 1,096,170 1,155,795 2,251,965 2,205,374
prepaid. DTC will determine by lot the amount of each participants interest in such maturity to
be redeemed and each participant will then select by lot the beneficial ownership interests in Operating Income (Loss) Y 213,791 (36,028) 177,763 163,639
such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest. _
SECURITY AND PURPOSE Nonoperating Revenues (Expenses)
Reimbursements 126,938 126,938 177,975
The Bonds will be general obligations of the City for which the City will pledge its full faith and Commissions, Rental and Other 47,211 18,993 66,204 61,201
credit and power to levy direct general ad valorem taxes. In addition the City will pledge special Investment Income 8,287 689,968 698,255 (48,746)
assessments against benefited properties. The proceeds will be used to finance street Interest and Amortization (51,467) (51,467) (52,529)
improvements within the City.
Loss on Disposal of Equipment (1,717)
TYPE OF PROPOSALS Total Nonoperating Revenues M 4,031 W 835,899 839,930 136,184
Proposals shall be for not less than $1,483,500 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in Income Before Transfers 217,822 799,871 1,017,693 299,823
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $15,000,
payable to the order of the City. If a check is used, it must accompany the proposal. If a Transfers to Other Funds (140,000) (140,000) (65,000)
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to Net Income (Loss) After Transfers 77,822 799,871 877,693 M 234,823
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 Retained Earnings Beginning of Year 1,056,911 6,128,336 7,185,247 6,884,750
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's Redistribution of Depreciation
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central to Contributed Capital 61,569 61,569 65,674
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. Retained Earnings End of Year $1,134,733 $6,989,776 $8,124,509
$7,185,247
The City will deposit the check of the purchaser, the amount of which will be deducted at
settlement and no interest will accrue to the purchaser. In the event the purchaser fails to ----------- ---------- ----- '°-°-"---�
comply with the accepted proposal, said amount will be retained by the City. No proposal can
- ii - IV-11
CITY OF ST. ANTHONY
ENTERPRISE FUNDS THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
COMBINING STATEMENT OF OPERATIONS AND CHANGES IN RETAINED EARNINGS ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
FOR THE YEARS ENDED DECEMBER 31, 1999 AND 1998
Totals TERMS OF PROPOSAL
Liquor Utility ---------__-________
Fund Fund 1999 1998
Operating Revenues $1,500,000
Sales and Cost of Sales CITY OF ST. ANTHONY, MINNESOTA
Sales $4,662,867 $4,662,867 $4,180,692 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2002A
Cost of Sales 3,417,747 3,417,747 3,031 ,420
-
Gross Profit 1 ,245,120 1 ,245,120 1 ,149,272 (BOOK ENTRY ONLY)
Charges for Services $1 ,123,893 1 ,123,893 1 ,026,017
- ---------- ____________ Proposals for the Bonds will be received on Tuesday, March 12, 2002, until 10:00 A.M., Central
Total Operating Revenues 1 ,245,120 1 ,123,893 2,369,013 2,175,289 Time, at the offices of Springsted Incorporated, 85 East Seventh Place, Suite
100, Saint Paul,
-------- ------------ ------------ ---------
--- Minnesota, after which time they will be opened and tabulated. Consideration for award of the
Bonds will be by the City Council at 7:00.M., Central Time, of the same day.
Operating Expenses
Personal Services 558,424 282,607 841 ,031 835,006 SUBMISSION OF PROPOSALS
Supplies 35,971 26,767 62,738 55,563
Contracted Services 240,380 256,422 496,802 426,920 Proposals may be submitted in a sealed envelope or by fax (651) 223-3046 to Springsted.
Filtration and Other Charges 76,800 76,800 76,800 Signed Proposals, without final price or coupons, may be submitted to Springsted prior to the
Treatment Charges 433,037 433,037 489,928 time of sale. The bidder shall be responsible for submitting to Springsted the final Proposal
Depreciation 91 ,081 97,744 188,825 184,145 price and coupons, by telephone (651) 223-3000 or fax (651) 223-3046 for inclusion in the
Other Charges 106,141 106,141 45,159 submitted Proposal. 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
Total Operating Expenses 1 ,031 ,997 1 ,173,377 2,205,374 2,113,521 shall be deemed to constitute a contract between the bidder and the City to
purchase the Bonds
---------- -----"----- ------------ ------------ regardless of the manner of the Proposal submitted.
Operating Income (Loss) 213,123 (49,484) 163,639 61 ,768
----------- --------- --------- ---------
-- DETAILS OF THE BONDS
Nonoperating Revenues (Expenses) The Bonds will be dated March 1, 2002, as the date of original issue, and will bear interest
Reimbursements 177,975 177,975 110,666 payable on August 1 and February 1 of each year, commencing February 1, 2003. Interest will
Commissions, Rental and Other 37,396 23,805 61 ,201 50,263 be computed on the basis of a 360-day year of twelve 30-day months.
Investment Income 8,952 (57,698) (48,746) 356,661
Interest and Amortization (52,529) (52,529) (57,945) The Bonds will mature February 1 in the years and amounts as follows:
Loss on Disposal of Equipment (1,717) (1 ,717)
2004 $95,000 2009 $ 90,000 2014 $105,000
Total Nonoperating Revenues (7,898) 144,082 136,184 459,645 2005 $85,000 2010 $ 95,000 2015 $110,000
___---- -- __-__-____ 2006 $85,000 2011 $ 95,000 2016 $115,000
2007 $90,000 2012 $100,000 2017 $120,000
Income Before Transfers 205,225 94,598 299,823 521 ,413 2008 $90,000 2013 $105,000 2018 $120,000
Transfers to Other Funds (65,000.) (65,000) (161,676) Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
____________ _______--- ___--__-_ ____-______ bonds and term bonds, provided that no serial bond may mature on or after the first mandatory
Net Income (Loss) After Transfers 140,225 94,598 234,823 359,737 sinking fund redemption date of any term bond. All term bonds shall be subject to mandatory
sinking fund redemption and must conform to the maturity schedule set forth above at a price of
Retained Earnings Beginning of Year 916,686 5,968,064 6,884,750 6,456,839 par plus accrued interest to the date of redemption. In order to designate term
bonds, the
proposal must specify "Last Year of Serial Maturities" and "Years of Term Maturities" in the
Redistribution of Depreciation spaces provided on the Proposal Form.
to Contributed Capital 65,674 65,674 68, 174
Retained Earnings End of Year $1 ,056,911 $6,128,336 $7,185,247 $6,884,750
IV-12 - i -
(This page was left blank intentionally.) -;
f
TABLE OF CONTENTS
Page(s)
Termsof Proposal............................................................................................................. i-iv
IntroductoryStatement...................................................................................................... 1
ContinuingDisclosure....................................................................................................... 1
TheBonds ........................................................................................................................ 2
Authorityand Purpose....................................................................................................... 4
Securityand Financing...................................................................................................... 4
FutureFinancing............................................................................................................... 5
Litigation ........................................................................................................................... 5
Legality ............................................................................................................................. 5
TaxExemption................................................................................................................... 5
Bank Qualified Tax-Exempt Bonds.................................................................................... 6
Rating ............................................................................................................................... 6
FinancialAdvisor............................................................................................................... 6
Certification....................................................................................................................... 7
CityProperty Values ......................................................................................................... 8
CityIndebtedness............................................................................................................. 9
City Tax Rates, Levies and Collections............................................................................. .13
Fundson Hand ................................................................................................................. 14
Investments....................................................................................................................... 14
General Information Concerning the City.......................................................................... 15
Governmental Organization and Services......................................................................... 17
Proposed Form of Legal Opinion ............................................................................ Appendix I
Continuing Disclosure Covenants ........................................................................... Appendix II
Summary of Tax Levies, Payment Provisions, and
Minnesota Real Property Valuation ...................................................................... Appendix III
Selected Annual Financial Statements .................................................................... Appendix IV
ProposalForms ....................................................................................................... Inserted
For purposes of compliance with Rule 15c2-12 of the Securities and Exchange Commission,
this document, as the same may be supplemented or corrected by the City from time to time
(collectively, the "Official Statement"), may be treated as an Official Statement with respect to
the Bonds described herein that is deemed final as of the date hereof (or of any such
supplement or correction) by the City, except for the omission of certain information referred to
in the succeeding paragraph.
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. Any such addendum shall, on and after
the date thereof, be fully incorporated herein and made a part hereof by reference.
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 copies of the Official Statement and the addendum or addenda described
in the preceding paragraph in the amount specified in the Terms of Proposal.
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 bid is accepted by the City (1) 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.
No dealer, broker, salesman or other person has been authorized by the City to give any
information or to make any representations with respect to the Bonds, other than as contained
in the Official Statement or the Final Official Statement, and if given or made, such other
information or representations must not be relied upon as having been authorized by the City.
Certain information contained in the Official Statement and the Final Official Statement may
have been obtained from sources other than records of the City and, while believed to be
reliable, is not guaranteed as to completeness or accuracy. THE INFORMATION AND
EXPRESSIONS OF OPINION IN THE OFFICIAL STATEMENT AND THE FINAL OFFICIAL
STATEMENT ARE SUBJECT TO CHANGE, AND NEITHER THE DELIVERY OF THE
OFFICIAL STATEMENT OR THE FINAL OFFICIAL STATEMENT NOR ANY SALE MADE
UNDER EITHER SUCH DOCUMENT SHALL CREATE ANY IMPLICATION THAT THERE HAS
BEEN NO CHANGE IN THE AFFAIRS OF THE CITY SINCE THE DATE THEREOF.
References herein to laws, rules, regulations, resolutions, agreements, reports and other
documents do not purport to be comprehensive or definitive. All references to such documents
are qualified in their entirety by reference to the particular document, the full text of which may
contain qualifications of and exceptions to statements made herein. Where full texts of
documents prepared by or on behalf of the City have not been included as appendices to the
Official Statement or the Final Official Statement, they will be fumished on request.
OFFICIAL STATEMENT DATED FEBRUARY 26, 2002
Rating: Requested from Moody's
NEW ISSUE Investors Service
In the opinion of Dorsey& Whitney LLP, Bond Counsel, on the basis of laws in effect on the date of issuance of the Bonds,
interest on the Bonds is not includable in the gross income of the recipient for federal income tax purposes and in taxable net
income of individuals, estates and trusts for Minnesota income tax purposes,but is includable in taxable income of corporations
and financial institutions for purposes of the Minnesota franchise tax. (See "Tax Exemption'herein.)
$1 ,500,000
City of St. Anthony, Minnesota
General Obligation Improvement Bonds, Series 2002A
(Book Entry Only)
Dated Date: March 1,2002 Interest Due: Each February 1 and August 1,
commencing February 1,2003
The Bonds will mature each February 1 as follows:
2004 $95,000 2007 $90,000 2010 $ 95,000 2013 $105,000 2016 $115,000
2005 $85,000 2008 $90,000 2011 $ 95,000 2014 $105,000 2017 $120,000
2006 $85,000 2009 $90,000 2012 $100,000 2015 $110,000 2018 $120,000
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds
and term bonds, provided that no serial bond may mature on or after the first mandatory sinking fund
redemption date of any term bond. All term bonds shall be subject to mandatory"sinking fund
redemption and must conform to the maturity schedule set forth above at a price of par plus accrued
interest.
The City may elect on February 1, 2010, and on any day thereafter, to prepay the Bonds due on or after
February 1, 2011 at a price of par plus accrued interest.
The Bonds are general obligations of the City for which the City pledges its full faith and credit and
power to levy direct general ad valorem taxes. In addition the City will pledge special assessments from
benefitted properties. The proceeds will be used to finance street improvements within the City.
Proposals for not less than $1,483,500 must be submitted along with a good faith deposit of $15,000 in
the form of a certified or cashier's check or a Financial Surety Bond, payable to the order of the City.
Rates shall be specified in integral multiples of 5/100 or 1/8 of 1% and must be in level or ascending
order. Award will be made on the basis of True Interest Cost (TIC).
The Bonds will be bank-qualified tax-exempt obligations pursuant to Section 265(b)(3) of the Internal
Revenue Code of 1986, as amended, and will not be subject to the alternative minimum tax for
individuals.
The Bonds will be issued as fully registered bonds without coupons and, when issued, will be registered
in the name of Cede & Co., as nominee of The Depository Trust Company ("DTC"). DTC will act as
securities depository of the Bonds. Individual purchases may be made in book entry form only, in the
principal amount of $5,000 and integral multiples thereof. Purchasers will not receive certificates
representing their interest in the Bonds purchased. (See "Book Entry System" herein.) U.S. Bank, N.A.,
St. Paul, Minnesota will serve as the Registrar for the Bonds. Bonds will be available for delivery at DTC
on or about March 28, 2002.
PROPOSALS RECEIVED: March 12, 2002 (Tuesday) until 10:00 A.M., Central Time
AWARD: March 12, 2002 (Tuesday) at 7:00 P.M., Central Time
Further information may be obtained from SPRINGSTED
S PR I N G S T E D
Incorporated,Financial Advisor to the Issuer,85 East Seventh Place,
Advisors to the Public Sector Suite 100,Saint Paul,Minnesota 55101-2887(651)223-3000
CITY OF ST. ANTHONY
Our mission is to be a progressive and livable community,
a walkable village, which is safe and secure.
CITY COUNCIL MEETING AGENDA
March 12, 2002
7:00 PM
Council Chambers
Call to Order.
Pledge of Allegiance.
Roll Call.
Consideration, Discussion, and Possible Action on All of the Following Items:
I. Approval of March 12, 2002 City Council Meeting Agenda. Action requested.
II. Proclamations and Recognitions.
A. Presentation of appreciation plaque to Dr. William Carr.
III. Community Forum.
Individuals may address the City Council about any item not included on the
regular agenda. Speakers are requested to come to the podium, state their name
and address for the Clerk's record and limit their remarks to five minutes.
Generally, the City Council will not take official action on items discussed at this
time,.but may typically refer the matter to staff for a future report or direct that the.
matter be scheduled on an upcoming agenda.
IV. Consent Agenda.
These items are considered routine and will be enacted by one motion. There
will be no separate discussion of these items unless a Councilmember or citizen
so requests, in which event the item will be removed from the Consent Agenda
and placed elsewhere on the agenda.
1. Consider February 26, 2002 Council meeting minutes. (pp. 1 - 10)
2. Consider licenses and permits. (pp. 11 - 12)
3. Consider payment of claims. (pp. 13 - 16)
V. Public Hearings - None.
Page 2
VI. Reports From Commissions and Staff.
VII. General Policy Business of the Council.
1. Resolution 02-034 -Amend Joint Cooperative Agreement with Mississippi
Watershed Management Organization. A representative will be present.
Action requested. (pp. 17 -38)
2. Preview of Board of Review. Tamara Doolittle, Hennepin County
Assessing, will be present.
3. Resolution 02-029 -Award sale of bonds for 2002 street and utility
improvements. Bob Thistle, Springsted, Inc. will be present. Action
requested. (pp. 39 - 64)
4. Resolution 02-.030 -Award bid for improvements to the parks. Parks
Commission representatives will be present as well as Molly Olivier, Short-
Elliott-Hendrickson. Action requested. (pp.65 - 73)
5. Resolutions 02-031 and 02-032 -Approve contracts for police.services
for Lauderdale and Falcon Heights. Police Chief Engstrom will be present.
Action requested. (pp. 74 - 78)
6. Ordinance 2002-001 relating to physical culture and health services and
clubs (3' reading)..Action requested. (pp. 79 - 87)
VIII. Reports From City Manager and Councilmembers.
IX. Information and Announcements.
X. Miscellaneous Informational Documents.
XI. Adjournment.
Page 2
VI. Reports From Commissions and Staff.
VII. General Policy Business of the Council.
1. Resolution 02-034 -Amend Joint Cooperative Agreement with Mississippi
Watershed Management Organization. A representative will be present.
Action requested. (pp. 17 - 38)
2. Preview of Board of Review. Tamara Doolittle, Hennepin County
Assessing, will be present.
3. Resolution 02-029 -Award sale of bonds for 2002 street and utility
improvements. Bob Thistle, Springsted, Inc. will be present. Action
requested. (pp. 39 - 64)
4. Resolution 02- 030 - Award bid for improvements to the parks. Parks
Commission representatives will be present as well as Molly Olivier, Short-
Elliott-Hendrickson. Action requested. (pp.65 - 73)
5. Resolutions 02-031 and 02-032 -Approve contracts for police services
for Lauderdale and Falcon Heights. Police Chief Engstrom will be present.
Action requested. (pp. 74 - 78)
6. Ordinance 2002-001 relating to physical culture and health services and
clubs (3' reading). Action requested. (pp. 79 - 87)
VIII. Reports From City Manager and Councilmembers.
IX. Information and Announcements.
X. Miscellaneous Informational Documents.
XI. Adjournment.
1
1 CITY OF ST. ANTHONY
2
3 CITY COUNCIL REGULAR MEETING MINUTES
4
5 February 26, 2002
6
7 CALL TO ORDER
8 Mayor Hodson called the meeting to order at 7:00 p.m.
9
10 PLEDGE OF ALLEGIANCE.
11 Mayor Hodson invited the Council and audience to join him in the Pledge of Allegiance.
12
13 ROLL CALL.
14 Present: Mayor Hodson; Councilmembers Horst, Sparks, and Thuesen.
15 Absent: Councilmember Faust.
16 Also Present: City Manager Mike Mornson; City Attorney Jerry Gilligan.
17
18 CONSIDERATION,DISCUSSION,AND POSSIBLE ACTION ON ALL OF THE FOLLOWING
19 ITEMS.
20
21 I. APPROVAL OF FEBRUARY 26,2002 CITY COUNCIL MEETING AGENDA.
22 Motion by Councilmember Sparks, second by Councilmember Horst, to approve the City
23 Council Meeting Agenda of February 26, 2002.
24
25 Motion carried unanimously.
26
27 II. PROCLAMATIONS AND RECOGNITIONS.
28 None.
29
30 III. COMMUNITY FORUM.
31 Mayor Hodson invited-residents to come forward at this time and address the Council on items
32 that are not on the regular agenda.
33
34 Hearing none, Mayor Hodson moved forward with the agenda.
35
36 IV. CONSENT AGENDA.
37
38 1. Consider February 12, 2002 Council meeting minutes. -
39 2. Consider licenses and permits.
40 3. Consider payment of claims.
41
42 Motion by Councilmember Thuesen, second by Councilmember Horst, to approve the Consent
43 Agenda.
44
45 Motion carried unanimously.
46
2
1 Councilmember Sparks clarified with Mornson that there were banner violations with Harvey's
2 on Stinson Boulevard, which is to be discussed this evening. She requested that there be no
3 banner or sign violations at the time that renewals are due.
4
5 Mornson stated that Councilmember Sparks' request was appropriate.
6
7 V. PUBLIC HEARINGS.
8 None.
9
10 VI. REPORTS FROM COMMISSIONS AND STAFF.
11 1. Planning Commission Meeting-February 19, 2002.
12 A. Ray Whitehill; side yard variance request for 3601 Roosevelt Street (Resolution
13 02-028).
14 Planning Commissioner Thomas came forward to address the Council regarding
15 the side yard variance request.
16
17 Commissioner Thomas indicated that the home has several code violations since
18 it was built in the late 1940's. He continued that the foundation was not covered
19 with the proper materials, and is beginning to deteriorate.
20
21 Commissioner Thomas continued that the lot is sub-standard, and city code
22 would only allow a new home to be 15 feet wide, which is not aesthetically
23 pleasing.
. 24
25 Commissioner Thomas reviewed the findings that were comprised by Planning
26 Commissioner Chair Melsha which recommend,unanimously, approval of the
27 side yard variance request.
28
29 Motion by Councilmember Sparks, second by Councilmember Horst, to approve
30 Resolution 02-028, re: side yard variance for 3601 Roosevelt Street.
31
32 Motion carried unanimously.
33
34 Mayor Hodson suggested that the Planning Commission should consider lot
35 coverage regarding some of the older housing stock in the City of St. Anthony.
36
37 Mayor Hodson added that residents would probably begin to desire upgrades to
38 their homes as the Northwest Quadrant Project proceeds.
39
40 Commissioner Thomas stated that Commissioner Stille had attended the City
41 Council goal setting meeting, and learned that the Council was looking for
42 reasons as to why the Planning Commission should discuss a point-of-sale
43 housing ordinance.
44
45 Commissioner Thomas stated that he and Commissioner Hanson have been
46 examining ways for the last year and a half to comprise a housing ordinance that
47 was acceptable to the Council, as well as to residents. He continued that their
48 main objective with the point-of-sale housing ordinance was to upgrade the older
- 3
I housing stock without placing financial pressure on the owner,or seller in order_to
2 meet city code.
3
4 Commissioner Thomas requested that the Council put some of their thoughts
5 down on paper and pass them along to the Planning Commission for them to .
6 review in the next month, or so.
7
8 Councilmember Horst noted that there were some housing issues, such as
9 electrical, that would require an inspector to determine whether they were in
10 violation of the housing code,or not.
11
12 Mayor Hodson stated that the comments that the Council made back at their
13 annual goal setting meeting reflected that they did not want to impose a housing
14 ordinance code at this time. Mayor Hodson added that the main reasons for their
15 feelings are that there are enough checks and balances with the mortgage
16 companies at this time.
17
18 Councilmember Thuesen stated that the Council felt that most home-owners who
19 were buying a house,brought in an inspector to examine the home.
20
21 Councilmember Horst stated that the main question was whether the mortgage
22 companies require adequate checks and balances, and did not leave any room for
23 loopholes.
24
25 The Council discussed a few different housing scenarios.
26
27 Councilmember Sparks felt that she did not have enough information to make a
28 decision at this point. Councilmember Horst echoed Councilmember Sparks'
29 feelings.
30
31 Mayor Hodson stated that he was happy to revisit the housing ordinance at a later
32 date when they have a full Council.
33
34 Therefore, the Council requested more information from the Planning
35 Commission regarding the point-of-sale housing ordinance.
36
37 Commissioner Thomas thanked the Council for their time.
38
39 VII. GENERAL POLICY BUSINESS OF THE COUNCIL.
40
41 A. Resolution 02-017-Approving 2002-2003 Fire Department Union Agreement.
42 City Manager Mike Mornson reviewed the resolution with the Council. He stated that,
43 for the most part, the Agreement was consistent with what the Police Department and
44 Public Works Department have agreed to in terms of salary and health insurance.
45
46 Mornson highlighted some of the health insurance benefits that are included in the health
47 plan. Momson indicated that some of the issues that delayed the Agreement were related
48. to retirement health insurance and 0%wage increase. He indicated that the contents of
49 the Agreement reflect what he feels is a fair compromise.
. 4
1
2 Motion by Councilmember Thuesen, second by Councilmember Horst,to approve
3 Resolution 2002-2003,re: Agreement between the City of St. Anthony and International
4 Association of Firefighters, Local 3486,representing the St. Anthony Fire Department:
5
6 Motion carried unanimously.
7
8 B. Ordinance 2002-001-Physical culture and health services and clubs (2nd reading).
9 City Attorney Jerry Gilligan indicated that there have been a couple of revisions made
10 after the first reading. The revisions included changing some of the language in the hours
11 of operation: "no persons"was changed to "no customers". He indicated that the capital
12 investment requirement that was eliminated from the ordinance. Also, Gilligan stated
13 that they have inserted some educational requirements that massage therapists would
14 need to meet.
15
16 Motion by Councilmember Horst, second by Councilmember Sparks,to approve the
17 second reading of Ordinance 2002-001.
18
19 _Motion carried unanimously.
20
21 VIII. REPORTS FROM CITY MANAGER AND COUNCILMEMBERS.
22 1. Review candle manufacturing on 37`h Avenue.
23 Mornson indicated that the review of the candle manufacturing business was a request
24 from residents Doug Tanner and Steve Valek. Mornson added that other residents from
25 the neighborhood were in attendance this evening and would like to continue to discuss
26 some of the odor issues, some of the actions that the City is planning to pursue with the
27 company, and any response to Tanner's comments made at the last Council meeting.
28
29 Mornson indicated that the owner of the candle manufacturing company(Levitus)and the
30 owner of the property(Solie)were also in attendance this evening. Mornson added that
31 he and Assistant City Manager Susan Henry had met with Solie and Levitus and asked
32 for an update on some of the issues that were brought to their attention, such as whether
33 they were open on Sundays.
34
35 Mornson added that, at that meeting, Solie and Levitus indicated that they wanted to
36 apply to amend the conditional use permit in March in order to make their situation more
37 permanent,which they have since done. Their request is to eliminate the September 1,
38 2002 deadline.
39
40 Mornson indicated that they have an estimate on the cost to reduce the odor. He added
41 that they have requested that the amendment be considered at the April 9,2002 City
42 Council meeting where they will have a full Council.
43
44 Mayor Hodson invited residents to come forward at this time and address the Council.
45
46 Resident Steve Valek, 2614 37`h Avenue, came forward and distributed a handout with a
47 list of names and telephone numbers of the people that have been contacted regarding
48 Essenco, formerly Home Essence.
49
- 5
I Valek stated that he was present this evening to discuss four points: additional
2 information that they have acquired relative to the odor problem at Essenco, the action'
3 that the city is planning to pursue in response to the misrepresentation that Essenco used
4 in order to acquire their conditional use permit, a response to Doug Tanner's comments
5 from the January 22, 2002 City Council meeting, and the idea of Essenco wanting to
6 make their presence more permanent.
7
8 Valek stated that the information that he would be reviewing this evening was attained by
9 himself,his wife, Jennifer Tanner, and her father,Doug Tanner.
10
11 Valek indicated that they contacted a leasing agent with United properties, who lease the
12 property where Home Essence was located in St. Paul. He indicated that they received
13 several complaints from tenants about the odors caused by Home Essence. He added that
14 they were having trouble getting new tenants to move in due to the strong odor.
15
16 Valek continued that the Glincher Group,the property owners, finally made a deal with
17 Home Essence to move simply because they wanted them out of the building.
18
19 Valek referred to an interview with Ronald Paites,who manages property for the
20 Glincher Group. Paites indicated that they had a major problem with Home Essence due
21 to odors, and complaints from other tenants in the building. Valek indicated that they
22 were going to pursue legal action against Home Essence of they did not vacate the
23 property. Valek indicated that the Glincher Group lost a lot of money just to get Home
24 Essence out of the building.
25
26 Valek reviewed an interview with an employee at Ramsey Family Physicians, a company
27 located in the same building as Home Essence in St. Paul, and affected by the odors. The
28 employee stated that the odor was overwhelming inside and outside of the building, and
29 that they received several complaints from patients. He indicted that one Ramsey Family
30 Physicians employee went over to Home Essence manufacturing floor to complain about
31 the odor and made a phone call to call OSHA after visiting the floor because the fumes
32 were so intense, she was concerned about the workers.
33
34 Valek stated that the Glincher Group agreed to replace all of the carpet,wall-paper,
35 ceiling tiles, as well as repaint the space. The costs to the Glincher Group was$32,000.
36
37 Valek requested a response from the City Council regarding the misrepresentation that
38 Home Essence made in order to obtain their conditional use permit, as well as Doug
39 Tanner's comments from the January 22, 2002 City Council meeting.
40
41 Valek stated that the felt that the information that they have obtained is damaging to
42 Essenco, and feels that he cannot trust them.
43
44 Councilmember Horst asked what grounds the Glincher Group was going to take legal
45 action against Home Essence. Valek indicated that Tanner had that information,but that
46 the Glincher Group was willing to share the information, if they were contacted.
47
48 Resident Carol Patrick, 3633 Edward Street Northeast, stated she was concerned about
49 the season to come where windows will be open and time will be spent outside. She
1 asked how long the candle manufacturing company has before they make any corrections
2 to the odor.
3
4 Patrick asked what the Council planned to do when the conditional use permit expires in
5 September. She also referred to the statement that the odor could be worse, and stated .
6 that they do not complain about much,but that the odor was above and beyond the
7 tolerable line.
8 -
9 Patrick stated that she was not calling because there is no confirmation from anyone that
10 the message is received, and she was simply unwilling to call every time she smelled the
11 odor.
12
13 Resident Mary Jo Pollak, 37`h Avenue, stated that when the candle manufacturing
14 business first came into town, she did not make a big deal about it because she did not
15 smell it all the time. She stated that her son has had to visit an allergy specialist in the
16 last couple of months,which reflects the fact that there are problems associated with the
17 odor emitted from Essenco.
18
19 Resident Kimberly Shaddrick, 2510 37`h Avenue Northeast, reviewed her unfavorable
20 feelings about Essenco. She indicated that she had been approached by Solie and
21 Levitus, and was told that the odor could be worse. She stated that she believes that the
22 Planning Commission and City Council have, undeservingly,bent over backwards for
23 them.
24
25 Shaddrick added that she feels that Solie and Levitus are not interested in providing the
26 whole truth, and are playing games. She added that she feels that it is time for the
27 residents that are fighting the fight for the rest of the community to be treated
28 courteously,rather than told that they should have documented every moment that they
29 have smelled the odor.
30
31 Resident Dwight Skinner, 3629 Edward Street, stated that he also recalls the initial
32 promise of no odor. He added that he is a bike-rider, and noticed the odor immediately.
33 He stated that he felt that the developers of the Northwest Quadrant would be interested
34 in any actions that would reduce their property value.
35
36 Solie came forward and explained that he does not represent the business,but is the
37 property owner. He stated that all of the comments he has made at previous meetings are
38 sincere, and that he does wish to work with the community in relation to the problem.
39
40 Solie stated that the call logs speak for themselves:
41 • 29 phone calls
42 • 22 phone calls from a residence that is not occupied
43 • 3 phone calls from one residence
44 • 2 phone calls each from two other residents
45
46 Solie added that there are twenty-five to thirty residents that are in the immediate
47 proximity of the property, none of whom seem fit to complain. He added that he spoke
48 with a resident last night that lives in the area and stated that he has not observed any
49 problems regarding odors, nor had any neighbors complained to him.
- 7
1 _
.. 2 Solie stated that Essenco intends to present some plans to the Planning Commission and .
3 the City Council over the next few weeks to install equipment that will help with the odor
4 that may be coming out of the building.
5
6 Solie concluded that he did not feel that four residents out of thirty really represent a
7 majority feeling of the community regarding the odor.
8
9 Levitus stated he has nothing to say.
10
11 Valek stated that his wife was outside shoveling, and Solie came up to her. He stated he
12 could smell nothing,while he held a cigarette in his hand. However,when he put the
13 cigarette out,he admitted he could smell the odor. Valek stated he was frustrated that,
14 before the Council, Solie behaves as though there is no odor.
15
16 Jennifer Tanner came forward and expressed her disappointment at this time. She
17 referred to shoveling and the constant odor. Furthermore, she expressed her
18 disappointment that it has been implied that the residents are playing games.
19
20 Tanner stated she felt that there was a decent representation of concerned residents at the
21 meeting who are concerned about the odor, especially compared to the number of
22 residents at other meetings.
23
24 Mayor Hodson indicated that Gilligan provided the Council with a legal opinion on the
25 issue. He added that the issue before them is that there has been a conditional use permit
26 issued through the end of August. He added that they do not have a remedy for the
27 residents at this point.
28
29 Mayor Hodson reiterated that the area is a light industrial area, and needs to be
30 considered as such.
31
32 Councilmember Horst explained that until the end of August, there really does not exist
33 any option.
34
35 Mornson explained that the decision of permanence will be made within the next six
36 weeks.
37
38 Mayor Hodson stated that the phone calls are not in vain, as all of the Councilmembers
39 and city staff see the call sheets.
40
41 Jennifer Tanner expressed her disappointment with the situation, as she and her husband
42 and father have spent a great deal of time and effort on the issue.
43
44 Valek added that there are residents who simply do not want to invest the time in making
45 a phone call, or attending a meeting. Mayor Hodson suggested that those people come to
46 his coffee with the mayor on Saturday morning from 7:30 am to 10:30 am.
47
48 Councilmember Sparks referred to a part in the approved conditional use permit that
49 requires that reasonable efforts be made to eliminate or remediate odors. She asked
1 Gilligan how it is determined as to whether they are meeting that standard. Gilligan -
2 stated that they have not had that discussion to them, and that the thought was that they
3 were going to look at different,options for equipment.
4
5 Mayor Hodson asked if anything has been done to remediate the odors at this point.
6
7 Solie reiterated that they had a consultant involved who will be presenting a plan to the
8 Planning Commission and the City Council at future meetings. In response to residents
9 calling every time they smell the odor, he asked if he should call every time he does not
10 smell the odor.
11
12 Tanner came forward and expressed her desire that everyone remain civil to one another,
13 and that the immature dialogue does not belong in a meeting of this type.
14
15 Mayor Hodson asked for any additional comments.
16
17 Mornson restated the public hearing dates: March 19, and April 9. He added that
18 residents who live within 350 feet of the candle manufacturing company will receive a
19 notice of the public hearings.
20
21 The Council thanked all of the residents for their time.
22
23 Mornson reminded the Council that the League of Minnesota Cities Lobby Day is
24 February 28, 2002 at the Sheraton.
25
26 Mornson stated that Mayor Hodson met with a committee to discuss redevelopment funds
27 for the Metropolitan Council. Mornson indicated that he met with the House
28 Environmental Committee on flood bonding bill. He added that the city looks good at
29 this point to proceed with the last stage of the flood plan.
30
31 Mornson stated that the bid opening for the parks buildings was on February 19, 2002.
32 He indicated that the Parks Commission will consider them at their March 11 meeting;
33 Council will consider them at their March 12,2002 meeting. He added that the early_
34 indication was that the bid was less than the estimate was.
35
36 Momson stated that the public hearing regarding the DNR Grant for Central Park would
37 be rescheduled for March 26, 2002.
38
39 Mornson stated that they have been proceeding with Pratt/Ordway Dominium on a
40 redevelopment agreement. He added that the redevelopment agreement would be
41 approved at the April 23, 2002 meeting.
42
43 Mornson referred to the Council's desire to have a media consultant assist them with the
44 promotion of the Apache redevelopment in order to enhance the visibility of the project
45 for the purpose of obtaining more funding. He discussed the media kit that a meeting
46 consultant would help them develop.
47
48 Momson mentioned a meeting that he and the mayor will have with Ted Grindahl, a
49 lobbyist who helps communities with outside funding. Mornson requested that Grindahl
1 put proposal together of a feasibility study in order to determine what funding is available
2 for the Apache project. Mornson indicated that for$2500 they would be able to tap into
3 various state-funded programs to determine how much other funding is available for
4 demolition,renovation, transportation, etc. issues for Apache Plaza.
5
6 Mornson recommended that they make the motion to hire the media consultant for the
7 remainder of the year at the cost of$10,000, as well as hire the firm that Ted Grindahl.
8 works for at the cost of$2500. He indicated that the funding would immediately come
9 from the H.R.A. account,but would be largely reimbursed by Pratt/Ordway Dominium.
10
11 Councilmember Thuesen asked about the primary role of the media consultant. Mayor
12 Hodson indicated that it was for the purpose of getting the issue in front of the legislature,
13 in the newspapers, and in the community.
14
15 Motion by Councilmember Horst, second by Councilmember Sparks, to hire both a
16 media consultant and a lobbyist to aid with outside funding for the Northwest Quadrant
17 redevelopment project for the remainder of the year.
18
19 Motion carried unanimously.
20
21 Mornson highlighted the Police open house to be held on May 9, 2002.
22
23 Mornson indicated that he would be meeting soon with Jim Prosser and the charitable.
24 gambling board to begin discussions on the future plans with the Stonehouse.
25
26 Councilmembers Horst, Sparks, and Thuesen had nothing new to report this evening.
27
28 Mayor Hodson stated that he met with the North Metropolitan Mayors Association a
29 week ago and stated that the City of St. Anthony is the only city in the North
30 Metropolitan area that is not a member of the association. He stated that he was invited
31 to join them in part because of his background with the Department of Transportation.
32 Mayor Hodson asked for the Council to consider joining the association.
33
34 Councilmember Thuesen asked about the kind of financial commitment the membership
35 would be for the city. Mayor Hodson stated the cost would be about$4,000.
36 Councilmember Thuesen suggested that Mayor Hodson present them with the benefits of
37 the membership at a future meeting. Mayor Hodson stated that he would have an existing
38 member come to a future meeting for the purpose of informing the Council of the
39 benefits of the membership.
40
41 IX. INFORMATION AND ANNOUNCEMENTS.
42 None.
43
44 X. MISCELLANEOUS INFORMATIONAL DOCUMENTS.
45 None.
46
47 XI. ADJOURNMENT.
48 Motion by Councilmember Sparks, second by Councilmember Horst, to adjourn the meeting at
49 9:48 p.m.
10
1
2 Motion carried unanimously.
3
4 Respectfully submitted,
5
6
7 Courtney Seesz
8 Timesaver Off Site Secretarial, Inc.
9
10 Mayor
11 ATTEST:
12 City Clerk
11
Saint Anthony Village
DATE: March 12, 2002 Approval:
TO: Mayor and Councilmembers
FROM: Judy Monson, License Clerk .
ITEM: Licenses and Permits for Approval:
Bench License:
U.S. Bench Corporation
Heating License:
Architect Mechanical Inc.,New Brighton,MN
General Contractors License:
Suburban Lighting, Stillwater, MN
Service Station License: (Renewal)
Dick's St. Anthony 66 Service, 2700 Kenzie Terrace
Don's Apache Auto Wash, 3725 Stinson Boulevard
Stop—N—Go, 2400—37`h Avenue NE
St. Anthony Mobile, 2801 Kenzie Terrace
Cigarette License: (Renewal)
Walgreen Co, 3700 Silver Lake Road
Stop—N—Go, 2400—37`h Avenue NE
Stonehouse
SAVI
SAVII
3.2 Beer License: (Renewal)
SuperValu (Cub Foods)
12
Garbage Hauler's License: (Renewal) .
Walter's Recycling&Refuse, Circle Pines, MN
Aspen Waste Systems, St. Paul, MN
13
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007366 PARTS MIDWEST, INC . 17107 03/ 13/02 159.4='
007217 PARTS PL.US 17108 03/132/02 14.5i"
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007057 PRAXAIR 17111 03/ 1.3/02'
008372 OWE:ST INTEPRISE AMERICA, 1711.2 03/13/02 49,9`:
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008462 RAMSEY COUNTY 17113 03/13/02 54.00
008777 RAMSEY COUNTY CHIEFS ASS 17114 03/13/02 60.0 O
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007337 TIMESAVER OFF SITE SECRE 17119 03/13/02 282.50
- .00003 TRACE ANALYTICS, INC . 17120 03/13/02 516.00
003560 -TRACY-PRINTING -'� ' - -' - - - - 17121 -03213/02-- --- - 1,491 .7O
008010 UNIFORMS UNLIMITED 17122 03/13/02 650.00
0O8336 UNITED ELECTRIC COMPANY 17123 03/ 13/02 24.74
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OO8862 US BANK 17125 03/ 13/02 150.00
008792 VANCO SERVICES 17126 03/13/02 24.3O
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008227 VERIZON WIRELESS, BELLEV 17128 03/13/02 57.O8
004494 WASTE MANAGEMENT - BLAIN 17129 03/13/02 263.67
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008196 MPLS HEALTH DEPARTMENT 19975 02/28/02 50.00
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17
CITY OF ST. ANTHONY
RESOLUTION 02 - 034
A RESOLUTION RELATING TO AN AMENDMENT TO THE
JOINT AND COOPERATIVE AGREEMENT WITH THE
MISSISSIPPI WATERSHED MANAGEMENT ORGANIZATION(MWMO)
WHEREAS, in 1997,the St. Anthony City Council approved the Joint and Cooperative
Agreement with the MWMO; and
WHEREAS, the MWMO is requesting Council's approval of an amendment to the 1997 Joint
and Cooperative Agreement which would allow the MWMO to replace the
subwatershed levy authority with a watershed wide levy authority and
identification that those funds generated from the levy will be available to the
City.
NOW, THEREFORE,BE IT RESOLVED, that the City Council of the City of St. Anthony
hereby approves the aforesaid amendment on behalf of the City of St. Anthony.
Adopted this day of 92002.
Mayor
ATTEST:
City Clerk
Reviewed for Administration:
City Manager
Aft NIHOPF,
Mississippi Watershed Management Organiza,fY-_l�
250 South Fourth Street,Room 414,Minneapolis,MN 55415
Office:612.673.5897 Fax:612.673.2635
Connie Kroeplin
City of St. Anthony
3301 Silver Lake Road
St. Anthony,MN 55418
March 6, 2002
Dear Ms. Kroeplin:
In 2000 the MWMO completed their Watershed Management Plan and began preparation for
implementation. At that time we were informed that the MWMO did not.possess the special taxing
authority necessary for a subwatershed levy as identified in the January 1997 Joint and Cooperative
Agreement. The subwatershed levy authority was one of several funding mechanism for capital projects
- and watershed programs. Since that time, the MWMO has worked with the State Legislature to obtain the
necessary authorities and were informed that levy authority existed but could only be placed across the
entire watershed and not the subwatershed as originally intended. With this information the MWMO met
with each Member's Council and informed them of the outcomes and alternatives. All member
communities indicated that they wished to continue participation with the MWMO.
As'a result of these Council meetings and legislative actions it was determined that the 1997 Joint,and
Cooperative Agreement needed to be amended. The result is the submission of the January 2002 Joint and
Cooperative Agreement for your Council's approval, through resolution, to replace the existing 1997 Joint
and Cooperative Agreement. The changes in the document involved replacing the subwatershed levy
authority with a watershed wide levy authority and identification that those funds generated from the levy
in the communities of Lauderdale, St. Anthony and St. Paul will be available to those communities
respectively. The other changes involved updating definitions that were related to the levy authority and
administrative clarifications on appointments and approvals.
Please call me at 612-673-3179 if you have any questions pertaining to the 2002 Joint and Cooperative
Agreement. Mississippi Watershed Management Organization staff will also be available for the Council
meeting.
Sincerely,
Alison L. Fong
MWMO Staff
Joe Biernat•City of Minneapolis Amy Sparks•City of Saint Anthony Karen Gill-Gerbig•City of Lauderdale
Karlyn Eckman • City of Saint Paul Jon Olson•Minneapolis Park and Recreation Board
`r
NOW
Joint and Cooperative Agreement
p g
for the Mississippi Watershed
OOONZ
Management Organization
City of Minneapolis
City of St. Paul
City of St. Anthony
City of Lauderdale
Minneapolis Park and Recreation Board
January 2002
. 2®
Membership
This Agreement entered into as of the date of execution by and among the following:
Cities of
Lauderdale
Minneapolis
St. Anthony
Saint Paul
and the Minneapolis Park and Recreation Board for the establishment of a Watershed Management
Organization. The aforementioned cities and the Minneapolis Park and Recreation Board shall hereinafter
be referred to as Members.
WHEREAS, the Members have authority pursuant to Minnesota Statutes, Section 471.59 to jointly and
cooperatively by agreement exercise powers common to the contracting bodies pursuant to Minnesota
Statutes, Section 103B.201 to 103B.251 and
WHEREAS,the Members desire to plan a comprehensive water management program in accordance with
Minnesota Statutes, Sections 103B.201 to 103B.251;
NOW THEREFORE,the parties to this Agreement do mutually agree as follows:
2
21
Article I
Legal Purpose
The purpose of this Joint and Cooperative Agreement for the Mississippi Watershed Management
Organization .is to replace the Joint Powers 'Agreement for the Middle Mississippi River Watershed
Management Organization executed in 1985,and 'the Joint and Cooperative Agreement for the Middle
Mississippi River Watershed Management Organization of January 1997.
The purpose of the Mississippi Watershed Management Organization, as provided for in this Agreement,
is to provide for the wise, long-term management of water and associated land resources within the
watershed through implementation measures, that realize multiple objectives, respect ecosystem
principles, and cultural and historical community values. The Mississippi Watershed Management
Organization seeks to: (a) protect, enhance, and restore the quality and quantity of surface and ground
water resources within the Mississippi Watershed Management Organization jurisdiction; (b) protect,
preserve, and use natural surface and ground water storage and retention systems; (c) efficiently utilize
public capital expenditures needed to correct and control flooding and water quality problems; (d) identify
and plan for means to use protect and improve surface and ground water quality; (e) establish more
uniform local policies and official controls for surface and ground water management; (f) promote ground
water recharge; (g) protect and enhance fish and wildlife habitat and water recreation facilities; (h) secure
the other benefits associated with the proper management of surface and ground water; and (i) promote
and encourage cooperation among Members and among other organizations in coordinating local
comprehensive water management programs.
A legal description and map of the boundaries of the Mississippi Watershed Management Organization
are included pursuant to Minnesota Rules 84010.0030, Subpart 1.B in Appendix A and C respectively of
this Agreement.
3
22
Article II
Definitions
For the purpose of this Agreement,the terms used herein shall have the meanings defined in this article.
Subdivision 1:"Organization" is the Mississippi Watershed Management Organization.
Subdivision 2:"Commission" shall mean the governing body of the Organization and shall consist of a
Commissioner or Alternate from each of its Members.
Subdivision 3:"Commissioner" shall mean any person appointed to the Commission by each Members
governing body, or in the Commissioner's absence,the Alternate.
Subdivision 4: "Alternate" shall mean any person appointed to the Commission by each Member's
governing body to represent the Member in the absence of the Commissioner.
Subdivision 5: "Council" shall mean the governing body of a Member. In the case of municipalities, this
shall be the elected officials responsible for governing the city and for Minneapolis Park & Recreation
Board, its Board of Commissioners.
Subdivision 6: "Member" or 'Member Community shall mean any city, county, or special purpose
government entity within the watershed that enters into this Agreement.
Subdivision 7: "Agreement" shall mean the "Joint and Cooperative Agreement adopted by the member
councils creating and the establishing the Mississippi Watershed Management Organization.
Subdivision 8: "Plan" shall mean the Watershed Management Plan adopted by the Mississippi Watershed
Management Organization.
Subdivision 9: "Watershed" means the area contained within a line drawn around the extremities of all
terrain whose surface drainage is tributary to the Mississippi River and within the mapped areas
reasonably demonstrated on the map identified as Appendix C, as defined within the legal description
identified in App_endix A.
4
23
Subdivision 10: "Act" is defined as the Metropolitan Surface Water Management Act as found in '
Minnesota Statutes, Sections 103B.201 to 103B.251.
Subdivision 11: `.`Operating Budget"refers to the administrative expenses incurred by the Organization.
Subdivision 12: "Capital Improvement Project" shall mean a physical improvement project other than
routine maintenance within the Watershed Management Organization boundaries.
Subdivision 13: "Majority" shall be defined as greater than half of the quorum.
Subdivision 14: "Subwatershed" a smaller geographic section of a larger watershed unit with a drainage
area whose boundaries include all the land area draining to a point.
Subdivision 15: "Year" shall mean from January 1 to December 31.
Subdivision 16: "Quorum" shall mean the number of Commissioners or Alternates required to be present
for business to be legally transacted. This number shall be any number which is greater than half of the
Members. Any number less than a quorum may adjourn a scheduled meeting.
5
24
Article III
Board of Commissioners
Subdivision 1: The governing body of the Organization shall be its Commission which shall consist of
five (5) voting Commissioners. Each Commissioner shall have one vote. All appointments. to the
Commission shall be in accordance with Minnesota Statutes 103B.227. The Board of Water and Soil
Resources shall be notified of all appointments and vacancies of the Commission within 30 days. All
vacancies shall be filled within ninety (90) ,days after they occur. Notices of all vacancies and
appointments shall be published in a legal publication of the Members community appointing the
Commissioner at least fifteen (t5) days prior to the appointment. Vacancies shall be filled for the
remainder of the term by the Council who appointed or had the right to appoint the Commissioner. The
Council of each Member shall appoint one (1) Commissioner to represent the Member to the
Commission. Each Commissioner shall serve until his or her successor is appointed.
Subdivision 2: A Commissioner may not be removed from the Commission except for just cause by the
Council that made the appointment.
Subdivision 3: Member Councils may select and appoint alternates to the Commission in the same
manner as Commissioners. In the absence of a Member's Commissioner, the designated Alternate may
vote and act in the Commissioner's place. The Alternate shall serve a term concurrent with the Member's
Commissioner.
Subdivision 4: Each Member's Council shall, within thirty (30) days of appointment, file with the
Secretary of the Commission a record of the appointment of its Commissioner and Alternate. The
Commission shall notify the Board of Water and Soil Resources of Member appointments and vacancies
within thirty(30) days after receiving notice from the Member.
Subdivision 5: The Council of each Member shall determine the eligibility and qualifications of its
Commissioner and Alternate. However, the terns of each Commissioner shall be as established by this
Agreement.
Subdivision 6: Regular meetings shall be held by the Commission periodically at the time and place
determined by the Commission pursuant to open meeting law,Minnesota State Statutes 471.705.
6
25
Subdivision 7: At the first meeting of the Commission each year and each calendar year thereafter, staff
will confer with Commissioners and recommend officers for the various positions on the Commission. At
the first meeting of the Commission and each calendar year thereafter,the Commission shall elect from its
Members a chairperson, a vice chairperson, a treasurer, a secretary, and such other officers as it deems
necessary to conduct its meetings and affairs.
Subdivision 8: The Commission shall adopt those bylaws and procedures necessary for the conduct of its
meetings. Such rules may be amended at either a regular or special meeting of the Commission provided
that a ten (10) day prior notice of the proposed amendment has been furnished to each Commissioner and
Alternate to whom notice of meetings is required to be sent.
Subdivision 9: The Commission may create such committees, task forces or working groups as needed to
accomplish its mission.
Subdivision 10: Commissioners shall serve without compensation from the Organization, but this shall
not prevent a Member's Council from providing compensation for its Commissioner for serving on the
Commission, if such compensation is authorized by such governmental unit and by law.
7
26
Article IV
Powers and Duties of the Board of Commissioners
Subdivision 1: The Commission shall employ such persons, as it deems necessary to accomplish its duties
and powers. The Commission may hire staff on a full time,part time or consulting basis. The Commission
may also incur expenses and expenditures necessary and incidental to the effectuation and/or
implementation of its purposes and powers.
Subdivision 2: In order for the Commission to conduct business, a quorum must be present. Decisions by
the Commission require a majority vote of the quorum present.
Subdivision 3: The Commission shall have an established Citizen Advisory Committee and Technical
Advisory Committee to provide input and to serve in an advisory role.
Subdivision 4: The Commission shall review and approve a Local Water Management Plan for each of its
Member Communities as established under Minnesota Statutes, Chapter 103B. Approval of the plan shall
require no more than a majority vote.
Subdivision 5: The Commission may acquire, operate, construct, and maintain capital improvement
projects delineated in the Watershed Management Organization Watershed Management Plan for the
protection, enhancement, and improvement of the watershed.
Subdivision 6: The Commission shall make a reasonable attempt to assess the compatibility of proposed
capital improvement projects with other existing policies, programs, and projects within the MWMO and
across its boundaries. In particular, compatibility with neighborhood association and community council
plans in the project area should be considered. An informal review should occur at least two months
before the capital improvement project proposal is approved in the MWMO budget.
Subdivision 7: The Commission shall develop a comprehensive Watershed Management Organization
Watershed Management Plan to meet the requirements of Minnesota Statutes, Chapter 103B. The plan
shall establish comprehensive goals and policies for the protection, enhancement, and improvement of the
watershed, and shall establish specific implementation strategies to realize these goals and policies.
8
27
Subdivision 8: The Commission shall have the power to contract with any governmental unit, private or
nonprofit association to accomplish the purposes for which it is organized.
Subdivision 9: The Commission has the authority to apply for, accept, and use grants, loans, money or
other property from the United States, the State of Minnesota, a unit of government or any person or
entity for the Organization. The Organization may use and dispose of such money or property for any
expenses/fees, policies, goals, capital improvement projects, or any use the Organization deems necessary
to pursue its goals and policies.
Subdivision 10: The Commission may establish and maintain devices for acquiring and recording
hydrologic and water quality data within the watershed.
Subdivision 11: The Commission may contract for, or purchase such insurance, as they deem necessary
for the protection of the Commission.
Subdivision 12: The Commission shall have the authority to invite governmental entities within the area
of the watershed to join the Organization. Furthermore, any governmental entities within the area of the
watershed may petition for membership in the Organization. The addition of new Members shall require a
majority vote of the Commission and appropriate resolution by current Member Councils. The effective
date shall be the date of filing by the last Council resolution approving the addition. As Members are
added to the Organization, there shall be created one voting Commissioner. Furthermore, as each new
Member is added,the cost shares of the operating budget(Article V, Subdivision 3)will be reassessed.
Subdivision 13: The Commission has the authority to contract for the space, equipment, and supplies to
carry on its activities either with an individual Member or elsewhere.
Subdivision 14: The Commission may investigate on its own initiative or upon petition of any Member,
complaints relating to the pollution of surface or ground water in the watershed. Upon a finding that the
watershed is being polluted, the Commission may take appropriate action to alleviate the pollution
including recommending enforcement and other regulatory actions to the appropriate jurisdiction.
9
28
Subdivision 15: Commissioners and staff may enter upon lands within or without the watershed to ...��
surveys and investigations to accomplish the purposes, goals and policies of the Organization. Such
entrance shall occur after obtaining a duly executed search warrant, with permission of the property
owner, or when a search warrant for access to the property is not required. The Commission shall be liable
for actual damages,resulting therefrom, subject to the limitations of Minnesota Statues Section 466.0 1, et.
seq. Every person'who claims damages shall serve the Chair or Secretary of the Commission with'a notice
of claim as required by Minnesota Statutes, Chapter 466.05.
Subdivision 16: The Commission may vote to provide legal and technical assistance in connection with
litigation or other proceedings between one or more of its Members and any other political subdivision,
commission, board or agency relating to the planning or construction of capital improvement projects
approved by the Organization.
Subdivision 17: The Commission shall at least every 2 years solicit interest proposals for professional or
technical consultant services before retaining the services of a consultant or extending annual service
agreements.
Subdivision 18: The Commission may designate one or more national or state bank or trust companies
authorized by Chapters 118 or 427 of Minnesota Statutes to receive deposits of public moneys to act as
depositories for the Organization's funds. No funds may be disbursed without the signature of the Chair
and the Treasurer. The Treasurer shall be required to file with the Secretary of the Commission a bond in
the sum of at least $10,000 or such higher amount as shall be determined by the Commission. The
Commission shall pay the premium on said bond.
Subdivision 19: The Commission may exercise all other powers necessary and incidental to the
implementation of the purposes and powers set forth herein.
10
29
Article V
Operating Budget
Subdivision 1: The Commission shall adopt.an operating budget for the ensuing year on or before.
September 1 of each year. The budget shall then be certified by the Secretary of the Commission on or
before October 1 to the clerk of each Members Council together with a statement of the proportion of the
budget to be provided by each Member. The Council of each Member agrees to review the budget. The
Commission shall upon notice from any Member received prior to November 1, hear objections to the
budget. Such notice shall be written to the Commission's Secretary and delivered by certified mail to their
principal business address. The Commission, upon notice delivered by US Mail to all Members and after
a hearing, may modify or amend the budget. If no objections are submitted to the Commission, each
Member agrees to provide the funds required by the budget on or before February 1. Modifications or
amendments to the original budget require a majority vote. The operating budget shall not exceed$20,000
annually.
Subdivision 2: The Commission has the duty to make a full and complete financial accounting report to
each Member at least once annually. A certified public accountant shall perform the audit of the
Organization. The report shall include the approved budget; a reporting of revenues; a reporting of
expenditures; a financial audit report or section that includes a balance sheet; a classification of revenues
and expenditures; an analysis of changes in final balances; and any additional statements considered
necessary for full financial disclosure; and the status of all Commission projects and work within the
watershed; copies of said report shall be transmitted to the clerk, or appropriate staff member of each
Member's Council.
Subdivision 3: Member contributions to the operating budget will be determined on a percentage basis of
the geographic area of each Member's properties and jurisdictional boundaries within the watershed,
excluding properties owned by the Minneapolis Park and Recreation Board. The Minneapolis Park and
Recreation Board share shall be determined by that portion of property owned by them. This assessment
shall be allocated as follows:
11
Member Share 30
Minneapolis 94.3%
St. Anthony 3.3%
Saint Paul 1.4%
Minneapolis Park and Recreation Board 0.6%
Lauderdale 0.4%
Subdivision 4: Projects or other necessary expenditures which cannot be accomplished through the capital
budget and would exceed the cost of the operating budget of Article V, Subdivision 1, shall be addressed
by mutual agreement of the affected Members outside of this Agreement.
12
31
Article VI
Capital Budget
Subdivision 1: The Members recognize that on-going capital expenditures will be required to solve some
of the water resource problems within the watershed. For the purposes of this Agreement,capital
improvement projects are those determined necessary to implement the Organization's Capital
Improvement Program.
Subdivision 2: Capital Projects will be financed over the entire watershed.
Subdivision 3: In order to finance an approved capital improvement project, the Commission may levy an
ad valorem tax against the entire watershed.
Subdivision 4: Approval of capital improvement projects shall require a majority vote of the quorum
present and other such bodies as required by law. Capital improvement projects shall be financed in
accordance with Minnesota.Statutes, 103B and 103D.
Subdivision 5: The Commission shall have the authority to prepare and adopt a Capital Improvement
Program as defined in Minnesota Statutes 103B.205 Subdivision 3 as part of the Watershed Management
Plan. The Capital Improvement Program shall set forth the schedule of capital projects identified in the
Watershed Management Plan as well as designating Members for participation in each project and
estimating the total costs for such projects. Projects not identified in the Watershed Management
Organization Watershed Management Plan shall not be included in the Capital Improvement Program
until and unless the Watershed Management Organization Watershed Management Plan is amended to
include such projects. Implementation of the Capital Improvement.Program will begin upon adoption of
the Watershed Management Organization Watershed Management Plan subject to the availability of
funding.
Subdivision 6: All capital improvement projects need to be listed in the Watershed Management Plan.
Subdivision 7: All capital improvement project proposals for the following year must be submitted to staff
before May 1 so that the proposed capital budget can be submitted to the Commissioners during the May
13
32
Commission meeting. All WMO capital improvement project proposals for subsequent fiscal year(s)must
be submitted to WMO staff before May I"of the extant budget year. By the August Commission meeting
within this extant budget year,presentation of this proposed capital budget will be submitted to the
Commissioners.
Subdivision 8: Funding for any and all capital improvement projects may only occur if the project(s)'is in
the approved capital budget.
Subdivision 9: Beginning with the year the Watershed Management Plan is adopted, the Commission
shall submit,by June 1, a draft capital budget to the clerk of Member's Council for their review. The
Council of each Member may review and comment on the budget. The Commission shall upon notice
from any Member received prior to August 1,hear objections to the budget. Such notice shall be written
to the Commission's Secretary and delivered by certified mail to their principal business address. The
Commission, upon notice delivered by US Mail to all Members and after a hearing, may modify or amend
the budget. The MMRWMO Commission shall hold a public hearing in accordance with Minnesota
Statutes 103B and 103D on the proposed capital budget. On or before September 15 of each year, the
Commissioners shall adopt a capital budget for the next year and decide on the total amount to be raised
from ad valorem tax levies. By the September 15 of each year the budget shall be certified by the
Secretary of the Commission to the County, Counties or the clerk or appropriate staff member of each
Member's Council together with a statement of the proportion of the budget to be provided.
Subdivision 10: If the Organization is responsible for the planning,design, acquisition,relocation,or
construction of an approved capital project on behalf of a Member, each Member having a financial
obligation therefore, shall also provide to the Organization the funds required by the budget from that
member on or before February 1.
If the Member is responsible for the completion of the capital project, the Organization's approved share
of the project cost coming from its tax levy will be reimbursed to the member from actual tax revenues
received in a manner agreed to. The Member being reimbursed for project costs by the Organization shall
agree to be responsible for providing any requested documentation of costs requested by the Organization
or its auditors.
Subdivision 11: Projects will be funded in the watershed on the basis of potential merit to all the Members
and according to the criteria established in the MWMO Watershed Management Plan. Annually a review
14
33
shall take place showing how much each Member has contributed to the watershed levy and how MU,
each Member has benefited from projects undertaken in their jurisdiction. Funds generated through the
annual levy in the cities of St. Anthony, St. Paul, and Lauderdale,will be made available to that member
community if capital improvement projects have been designated in the MWMO Watershed Management `
Plan and approved in the MWMO capital budget.
Subdivision 12: If a member has a capital improvement project designated for a future year, all generated
funds collected as part of an approved capital budget for said project may be held in an account and
designated for the project per MN Statute 103B.241 Subd. 1.
Subdivision 13: If a member has no designated capital improvement projects, all generated funds will be
placed in a general account for use by those members with designated capital improvement projects.
15
.34
Article VII
Duration
Each Member agrees to be bound by the terms of this Agreement until January 1, 2010, and it may be
continued thereafter upon the agreement of all Members.
16
35
Article VIII
Dissolution
Any Member may petition the Commission to dissolve the .Organization. Upon thirty days advance
written notice to each Member, the Commission shall hold a hearing to consider dissolution of the
Organization. If a majority of the Commission votes in favor of dissolution, the Commission shall submit
a resolution for dissolution of the Organization for consideration by each Member's Council, the board of
each affected County and the Minnesota Board of Water and Soil Resources. Each governmental unit
shall have 90 days in which to consider dissolution of the Organization. If, within 90 days of the date the
notice was given, a majority of Members' Councils has ratified said resolution; then the Organization
shall be dissolved and this Agreement shall be terminated.
Upon dissolution, the Organization shall complete all work in progress and dispose of all personal
property.All property of the Organization shall be sold and the proceeds thereof, together with moneys on
hand, shall be distributed to the eligible Members of the Commission as follows: assets derived from
contributions to the operating budget shall be apportioned and distributed to each Member in the
percentage e b which the Member contributed to the Organization under the last annual budget; assets
derived from the Capital Improvement Budget shall be apportioned and distributed on an asset by asset
basis to each Member in the P ercentage by which the Member contributed to the specific asset.
_
17
. 36
Article IX
Amendments
Any Member may recommend to the Commission amendments to this Agreement. Upon a majority vote,
amendments to this Agreement shall be forwarded by the Commission to its Members' Councils. No
amendment shall be effective until the amendment has been ratified by the Council of each Member. The
effective date of any amendment shall be the date on which the last Member's Council ratifies the
amendment and is filed with the Secretary of the Commission.
18
37
Article X
Effective Date
This Agreement shall be adopted upon ratification by the Council of each Member and the execution of
the Agreement by each Member. Upon voting to ratify the Agreement, the clerk of the Council of the
ratifying Member shall file a certified copy of the resolution of the ratification with the Clerk of the City
of Minneapolis. The effective date of the Agreement shall be the later of January 1, 1997; or the date on
which the last Member to ratify files its resolution of ratification. Upon adoption of this Agreement, the
Minneapolis City Clerk shall supply to each Member and the Board of Water and Soil Resources a copy
of the Members' ratification resolutions and a copy of the signed Agreement.
IN WITNESS WHEREOF, the undersigned Members,by action of their Councils,have caused this
agreement to be executed in accordance with the authority of Minnesota Statutes Sections 103B.211 and
471.59.
19
38
City of St. Anthony
By: Dated: 920
Randy Hodson,Mayor
Attest: Dated: , 20
Michael Mornson,City Manager
22
39
CERTIFICATION OF MINUTES RELATING TO
$1,500,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2002A
Issuer: City of St. Anthony, Minnesota
Governing body: City Council
Kind, date, time and place of meeting: A regular meeting held on March 12, 2002,
at 7:00 o'clock P.M., at the City Hall.
.. Members present:
Members.absent:
Documents attached:
Minutes of said meeting(including): Pages 1 through 22
RESOLUTION 02-029 .
RESOLUTION RELATING TO $1,500,000 GENERAL
OBLIGATION IMPROVEMENT BONDS, SERIES 2002A;
AWARDING THE SALE,FIXING THE FORM AND DETAILS
AND PROVIDING FOR THE EXECUTION AND DELIVERY
THEREOF AND SECURITY THEREFOR AND LEVYING AD
VALOREM TAXES FOR THE PAYMENT THEREOF
I, the undersigned, being the duly qualified and acting recording officer of
the public corporation issuing the obligations referred to in the title of this certificate,
certify that the documents attached hereto, as described above,have been carefully
compared with the original records of the corporation in my legal custody, from which
they have been transcribed; that the documents are a correct and complete transcript of
the minutes of a meeting of the governing body of the corporation, and correct and
complete copies of all resolutions and other actions taken and of all documents approved
by the governing body at the meeting, insofar as they relate to the obligations; and that
the meeting was duly held by the governing body at the time and place and was attended
throughout by the members indicated above,pursuant to call and notice given as required
by law.
WITNESS my hand officially as such recording officer this day of
March, 2002.
Connie Kroeplin, City Clerk
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It was reported that U proposals for the purchase of
the$1,500,000 General Obligation Improvement Bonds, Series 2002A of the City(the"Bonds") -
in accordance with the Terms of Proposal for the sale of the Bonds approved by the City Council
by Resolution 02- , adopted February 12,2002. The bids have been opened, read and
tabulated, and the terms of each were found to be as follows:
Bidder Purchase Price Interest Rates Net Interest Cost
(See Attached)
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Councilmember then introduced the following
resolution and moved its adoption:
RESOLUTION 02-029
RESOLUTION RELATING TO$1,500,000 GENERAL OBLIGATION
IMPROVEMENT BONDS, SERIES 2002A; AWARDING THE SALE,
FIXING THE FORM AND DETAILS AND PROVIDING FOR THE
EXECUTION AND DELIVERY THEREOF AND SECURITY
THEREFOR AND LEVYING AD VALOREM TAXES FOR THE
PAYMENT THEREOF
BE IT RESOLVED by the City Council of the City of St. Anthony, Minnesota
(the"City"), as follows:
Section 1. Recitals, Authorization and Sale of Bonds.
1.01. Authorization. This Council has heretofore ordered the an improvement
project to be constructed within the City under and pursuant to Minnesota Statutes, Chapter 429,
consisting of various street improvements (collectively the"Improvements"). The present
estimated total cost of the Improvements is as follows:
Project Costs......................................................... $1,405,754
Issuance Expenses................................................. 21,050
Capitalized Interest............................................... 56,696
Discount Allowance.............................................. 16,500
Total................................................................. $1,500,000
This Council hereby determines to issue and sell $1,500,000 principal amount of General
Obligation Improvement Bonds, Series 2002A,of the City(the"Bonds")to defray a portion of
the expense incurred and estimated to be incurred by the City in making the Improvements,
including every item of cost of the kinds authorized in Minnesota Statutes, Section 475.65, and
$16,500 representing interest as provided in Minnesota Statutes, Section 475.56. The City has
retained Springsted Incorporated to act as financial advisor to the City in connection with the
issuance and sale of the Bonds, and it is hereby determined to sell the Bonds without meeting the
requirements as to public sale under Minnesota Statutes, Section 475.60, subdivision 1,pursuant
to the exception from such requirement contained in clause (9)of Minnesota Statutes, Section
475.60, subdivision 2.
1.02. Sale of Bonds. The City has received ( )proposals
for the purchase of the Bonds. The most favorable proposal received is that of
, of ,
(the"Purchaser"), to purchase the Bonds at a price of$ ,
the Bonds to bear interest at the rates set forth in Section 3.01 hereof and to be subject to the
further terms and conditions set forth in this Resolution. The proposal is hereby accepted, and
the Mayor and the City Manager are hereby authorized and directed to execute a contract on the
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part of the City for the sale of the Bonds with the Purchaser. The good faith checks of the
unsuccessful bidders shall be returned forthwith.
1.03. Performance of Requirements. All acts, conditions and things which are
required by the Constitution and laws of the State of Minnesota to be done, to exist,to happen
and to be performed precedent to and in the valid issuance of the Bonds having been done,
existing, having happened and having been performed, it is now necessary for this Council to
establish the form and terms of the Bonds,to provide security therefor and to issue the Bonds
forthwith.
1.04. Maturities of Bonds. The Council hereby finds that the maturities of the
Bonds as set forth in Section 3.01 hereof are warranted by the anticipated collections of special
assessments and ad valorem taxes levied and to be levied for the payment of the Bonds as
provided in Section 4 hereof.-
Section 2. Form of Bonds. The Bonds shall be prepared in substantially the
following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTIES OF HENNEPIN AND RAMSEY
CITY OF ST. ANTHONY
GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2002A
No. R- $
Date of
Interest Rate Maturity Original Issue CUSIP
March 1, 2002
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
THE CITY OF ST. ANTHONY,Hennepin and Ramsey Counties, Minnesota(the
"City"), acknowledges itself to be indebted and, for value received,hereby promises to pay to the
registered owner named above, or registered assigns,the principal amount specified above,on
the maturity date specified above,with interest thereon from the date of original issue specified
above, or from the most recent interest payment date to which interest has been paid or duly
provided for, at the annual rate specified above. Interest hereon is payable on February 1 and
August 1 in each year, commencing February 1, 2003, to the person in whose name this Bond is
registered at the close of business on the 15th day(whether or not a business day) of the
immediately preceding month, all subject to the provisions referred to herein with respect to the
redemption of the principal of this Bond before maturity. The interest hereon and, upon
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presentation and surrender hereof, the principal hereof, are payable in lawful money of the
United States of America by check or draft of Wells Fargo Bank Minnesota,National
Association, in Minneapolis, Minnesota, as Bond Registrar,Transfer Agent and Paying Agent
(the"Bond Registrar"), or its successor designated under the Resolution described herein.
This Bond is one of an issue in the aggregate principal amount of$1,500,000(the
"Bonds"), issued pursuant to a resolution adopted by the.City Council on March 12,2002 (the
"Resolution"), for the purpose of financing a portion of the costs of various street improvements
in the City(the"Improvements"), and is issued pursuant to and in full conformity with the
provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including
Minnesota Statutes, Chapters 429 and 475. The Bonds are payable primarily from the 2002
Improvement Bond Fund(the"Fund") of the City. In addition, for the full and prompt payment
of the principal and interest on the Bonds as the same become due,the full faith, credit and
taxing power of the City have been and are hereby irrevocably pledged. The Bonds are issuable
only as fully registered bonds in denominations of$5,000 or any multiple thereof, of single
maturities.
Bonds maturing in the years 2004 through 2010 are payable on their respective
stated maturity dates without option of prior payment,but Bonds having stated maturity dates in
2011 and later years are each subject to redemption and prepayment, at the option of the City and
in whole or in part, and if in part, in the maturities selected by the City and,within a maturity, in
$5,000 principal amounts selected by lot, on February 1, 2010 and on any date thereafter, at a
price equal to the principal amount thereof to be redeemed plus accrued interest to the date of
redemption.
[INSERT REDEMPTION PROVISIONS FOR ANY TERM BONDS.]
At least thirty days prior to the date set for redemption of any Bond,notice of the
call for redemption will be mailed to the Bond Registrar and to the registered owner of each
Bond to be redeemed at his address appearing in the Bond Register,but no defect in or failure to
give such mailed notice of redemption shall affect the validity of the proceedings for the
redemption of any Bond not affected by such defect or failure. Official notice of redemption
having been given as aforesaid, the Bonds or portions of the Bonds so to be redeemed shall, on
the redemption date,become due and payable at the redemption price herein specified and from
and after such date (unless the City shall default in the payment of the redemption price) such
Bond or portions of Bonds shall cease to bear interest. Upon the partial redemption of any Bond,.
a new Bond or Bonds will be delivered to the registered owner without charge, representing the
remaining principal amount outstanding.
The Bonds have been designated by the City as "qualified tax-exempt
obligations"pursuant to Section 265(b) of the Internal Revenue Code of 1986, as amended.
As provided in the Resolution and subject to certain limitations set forth therein,
this Bond is transferable upon the books of the City at the principal-office of the Bond Registrar,
by the registered owner hereof in person or by his attorney duly authorized in writing upon
surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar,
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duly executed by the registered owner or his attorney; and may also be surrendered in exchange
for Bonds of other authorized denominations. Upon such transfer or exchange,the City will
cause a new Bond or Bonds to be issued in the name of the transferee or registered owner,of the
same aggregate principal amount,bearing interest at the same rate and maturing on the same
date, subject to.reimbursement for any tax, fee or governmental charge required to be paid with
respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose name
this Bond is registered as the absolute owner hereof,whether this Bond is overdue or not, for the
purpose of receiving payment and for all other purposes, and neither the City nor the Bond
Registrar shall be affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that
all acts,conditions and things required by the Constitution and laws of the State of Minnesota to
be done,to exist, to happen and to be performed precedent to and in the issuance of this Bond in
order to make this Bond a valid and binding general obligation of the City according to its terms,
have been done,do exist,have happened and have been performed in regular and due form as so
required; that prior to the issuance hereof the City has levied or agreed to levy special
assessments on property specially benefited by the Improvements and ad valorem taxes on all
taxable property in the City, collectible in the years and amounts required to produce sums not
less than 5% in excess of the principal of and interest on the Bonds as such principal and interest
respectively become due, and has appropriated the same to the Fund in the manner specified in
Minnesota Statutes, Section 429.091, Subdivision 4; that,to take care of any accumulated or
anticipated deficiency in the Fund, additional ad valorem taxes are required by law to be levied .
upon all taxable property in the City without limitation as to rate or amount; and that the issuance
of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory
limitation.
This Bond shall not be valid or become obligatory for any purpose or be entitled
to any security or benefit under the Resolution until the Certificate of Authentication hereon shall
have been executed by the Bond Registrar by the manual signature of a person authorized to sign
on its behalf.
IN WITNESS WHEREOF,the City of St. Anthony, Hennepin and Ramsey
Counties, Minnesota,by its City Council,has caused this Bond to be executed by the signatures
of the Mayor and the City Manager and has caused this Bond to be dated as of the date set forth
below.
CITY OF ST. ANTHONY
City Manager Mayor
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CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
Date of Authentication:
WELLS FARGO BANK MINNESOTA,
NATIONAL ASSOCIATION
Minneapolis,Minnesota, as Bond Registrar
By
Authorized Representative
The following abbreviations, when used in the inscription on the face of this
Bond, shall be construed as though they were written out in full according to applicable laws or
regulations: .
TEN COM——as tenants UNIF TRANS MIN ACT. . . . . . . Custodian. . . . . . . .
in common (Cust) (Minor)
TEN ENT——as tenants
by the entireties under Uniform Transfers to
Minors
Act. . . . . . . . . . . . . . . . . . . . . .
JT TEN—— as joint tenants (State)
with right of
survivorship and
not as tenants in
common
Additional abbreviations may also be used.
ASSIGNMENT
FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers
unto the
within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints
attorney to transfer the
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within Bond on the books kept for registration thereof,with full power of substitution in the
premises.
Dated:
PLEASE INSERT SOCIAL SECURITY
OR OTHER IDENTIFYING NUMBER NOTICE: The signature(s)to this
OF ASSIGNEE: assignment must correspond with the name
as it appears upon the face of the within
Bond in every particular, without alteration,
enlargement or any change whatsoever.
Signature(s)must be guaranteed by an
"eligible guarantor institution"meeting
the requirements of the Bond Registrar,
which requirements include membership
or participation in the Securities Transfer
Association Medalion Program(STAMP)
or such other"signature guaranty program"
as may be determined by the Bond Registrar
in addition to-or in substitution for STAMP,.
all in accordance with the Securities Exchange
Act of 1934, as amended.
Section 3. Bond Terms, Execution and Delivery.
3.01. Maturities, Interest Rates, Denominations, Payment, Dating of Bonds. The
City shall forthwith issue and deliver the Bonds, which shall be denominated"General
Obligation Improvement Bonds, Series 2002A"and shall be payable primarily from the 2002
General Obligation Improvement Bond Fund of the City created in Section 4.02. The Bonds
shall be dated as of March 1, 2.002, shall be issuable in the denominations of$5,000 or any
. integral multiple thereof, shall mature on February 1 in the years and amounts set forth below,
and Bonds maturing in such years and amounts shall bear interest, computed on the basis of a
360-day year consisting of twelve 30-day months, from March 1, 2002 until paid or duly called
for redemption at the rates per annum set forth opposite such years and amounts,respectively:
m
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Year Amount Rate Year Amount Rate
2004 $95,000 % 2012 $100,000 %
2005 85,000 2013 105,000
2006 85,000 2014 105,000
2007 90,000 '2015 110,000
2008 90,000 2016 115,000
2009 90,000 2017 120,000
2010 95,000 2018 120,000
. 2011 95,000
The Bonds shall be issuable only in fully registered form, of single maturities.
The interest thereon and, upon surrender of each Bond at the principal office of the Registrar
described herein, the principal amount thereof, shall be payable by check or draft issued by the
Registrar. Each Bond shall be dated by the Registrar as of the date of its authentication.
3.02. Interest Payment Dates. Interest on the Bonds shall be payable on
February 1 and August 1 in each year, commencing February 1,2003,to the owners thereof as
such appear of record in the bond register as of the close of business on the fifteenth day of the
immediately preceding month, whether or not such day is a business day.
3.03. Registration. The City shall appoint, and shall maintain, a bond registrar,
transfer agent and paying agent(the"Registrar"). The effect of registration and the rights and
duties of the City and the Registrar with respect thereto shall be as follows:
(a) Register. The Registrar shall keep at its principal office a bond register in
which the Registrar shall provide for the registration of ownership of Bonds and the
registration of transfers and exchanges of Bonds entitled to be registered, transferred or
exchanged.
(b) Transfer of Bonds. Upon surrender to the Registrar for transfer of any Bond
duly endorsed by the registered owner thereof or accompanied by a written instrument of
transfer, in form satisfactory to the Registrar, duly executed by the registered owner
thereof or by an attorney duly authorized by the registered owner in writing, the Registrar
shall authenticate and deliver, in the name of the designated transferee or transferees,one
or more new Bonds of a like aggregate principal amount and maturity, as requested by
the transferor. The Registrar may,however, close the books for registration of any
transfer after the fifteenth day of the month preceding each interest payment date and
until such interest payment date.
(c) Exchange of Bonds. Whenever any Bond is surrendered by the registered
owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds
of a like aggregate principal amount, interest rate and maturity, as requested by the
registered owner or the owner's attorney duly authorized in writing.
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(d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be
promptly cancelled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When any Bond is presented to the
Registrar for transfer,the Registrar may refuse to transfer the same until it is satisfied that
the endorsement on such Bond or separate instrument of transfer is valid and genuine and
that the requested transfer is legally authorized. The Registrar shall incur no liability for
its refusal, in good faith, to make transfers which it, in its judgment, deems improper or
unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person in
whose name any Bond is at any time registered in the bond register as the absolute owner
of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving
payment of, or on account of, the principal of and interest on such Bond and for all other
purposes, and all such payments so made to any such registered owner or upon the
owner's order shall be valid and effectual to satisfy and discharge the liability of the City
upon such Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except
for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge
upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other
governmental charge required to be paid with respect to such transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become
mutilated or be lost, stolen or destroyed, the Registrar shall deliver a new Bond of like
amount,number, interest rate, maturity date and tenor in exchange and substitution for
and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any
such Bond lost, stolen or destroyed, upon the payment of the reasonable expenses and
charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen or
destroyed, upon receipt by the Registrar of evidence satisfactory to it that such Bond was
lost, stolen or destroyed, and of the ownership thereof, and upon receipt by the Registrar
of an appropriate bond or indemnity in form, substance and amount satisfactory to it,in
which both the City and the Registrar shall be named as obligees. All Bonds so
surrendered to the Registrar shall be cancelled by it and evidence of such cancellation
shall be given to the City. If the mutilated, lost, stolen or destroyed Bond has already
matured or been called for redemption in accordance with its terms, it shall not be
necessary to issue a new Bond prior to payment.
(i) Authenticating Agent. The Registrar is hereby designated authenticating
agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55,
Subdivision 1.
3.04. Appointment of Initial Registrar. The City hereby appoints Wells Fargo
Bank Minnesota, National Association in Minneapolis,Minnesota, as the initial Registrar. The
Mayor and City Manager are authorized to execute and deliver, on behalf of the City, a contract
with Wells Fargo Bank Minnesota,National Association, as Registrar. Upon merger or
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consolidation of the Registrar with another corporation, if the resulting corporation is a bank or
trust company authorized by law to conduct such business, such corporation shall be authorized
to act as successor Registrar. The City agrees to pay the reasonable and customary charges of
the Registrar for the services performed. The City reserves the right to remove any Registrar
upon thirty(30)days' notice and upon the appointment of a successor Registrar, in which event_
the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor
Registrar. On or before each principal or interest due date, without further order of this Council,
the Finance Director shall transmit to the Registrar from the 2002 Improvement Bond Fund
described in Section 4 hereof, moneys sufficient for the payment of all principal and interest then
due.
3.05. Redemption. (a) Bonds maturing in the years 2004 through 2010 are
payable on their respective stated maturity dates without option of prior payment,but Bonds
maturing in 2011 and later years are each subject to redemption, at the option of the City and in
whole or in part, and if in part, in the maturities selected by the City and,within any maturity,in
$5,000 principal amounts selected by the Registrar by lot, on February 1, 2010 and on any date
thereafter, at a redemption price equal to the principal amount thereof to be redeemed plus
accrued interest to the date of redemption.
(b) Bonds maturing in the year shall be subject to mandatory sinking fund
redemption by lot at a redemption price equal to the principal amount of the Bonds to be so
redeemed plus interest accrued thereon to the date fixed for redemption, on February 1, in the
years and principal amounts set forth below:
Year Amount
*Final Maturity
In the event that an y Bonds maturing in the year are redeemed pursuant to (a) above by the
City and canceled by the Registrar and not reissued,the Bonds maturing in the year so
redeemed and canceled may be applied by the City as a credit against the Bonds to be redeemed
pursuant to this subsection(b), such credit to be equal to the principal amount of the Bonds
maturing in the year so redeemed or canceled provided that the City has notified the
Register not less than thirty-five (35)days prior to the redemption date of its election to apply
such Bonds as a credit.
(c) Bonds maturing in the year shall be subject to mandatory sinking fund
redemption by lot at a redemption price equal to the principal amount of the Bonds to be so
redeemed plus interest accrued thereon to the date fixed for redemption, on February 1, in the
years and principal amounts set forth below:
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so
Year Amount
*Final Maturity
In the event that any Bonds maturing in the year are redeemed pursuant to (a) above by the
City and canceled by the Registrar and not reissued,the Bonds maturing in the year so
redeemed and canceled may be applied by the City as a credit against the Bonds to be redeemed
pursuant to this subsection(c), such credit to be equal to the principal amount of the Bonds
maturing in the year so redeemed or canceled provided that the City has notified the
Register not less than thirty-five(35) days prior to the redemption date of its election to apply
such Bonds as a credit.
(d) At least thirty days prior to the date set for redemption of any Bond, the City
shall cause notice of the call for redemption to be mailed to the Registrar,and to the registered
owner of each Bond to be redeemed,but no defect in or failure to give such mailed notice of
redemption shall affect the validity of proceedings for the redemption of any Bond not affected
by such defect or failure. The notice of redemption shall specify the redemption date,
redemption price, the numbers, interest rates and CUSIP numbers of the Bonds to be redeemed
and the place at which the Bonds are to be surrendered for payment,which is the principal office
of the Registrar. Official notice of redemption having been given as aforesaid, the Bonds or
portions thereof so to be redeemed shall, on the redemption date,become due and payable at the
redemption price therein specified and from and after such date (unless the City shall default in
the payment of the redemption price) such Bonds or portions thereof shall cease to bear interest.
Bonds in a denomination larger than$5,000 may be redeemed in part in any
integral multiple of$5,000. The owner of any Bond redeemed in part shall receive without
charge, upon surrender of such Bond to the Registrar,one or more new Bonds in authorized
denominations equal in principal amount to be unredeemed portion of the Bond so surrendered.
3.06. Preparation and Delivery. The Bonds shall be prepared under the direction
of the City Manager and shall be executed on behalf of the City by the signatures of the Mayor
and the City Manager;provided that said signatures may be printed, engraved, or lithographed
facsimiles thereof. In case any officer whose signature, or a facsimile of whose signature, shall
appear on the Bonds shall cease to be such officer before the delivery of any Bond, such
signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if
such officer had remained in office until delivery. Notwithstanding such execution,no Bond
shall be valid or obligatory for any purpose or entitled to any security or benefit under this
Resolution unless and until a certificate of authentication on such Bond has been duly executed
by the manual signature of an authorized representative of the Registrar. Certificates of
authentication on different Bonds need not be signed by the same representative. The executed
certificate of authentication on each Bond shall be conclusive evidence that it has been
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authenticated and delivered under this Resolution. When the Bonds have been so executed and
authenticated, they shall be delivered by the City Manager to the Purchaser upon payment of the
purchase price in accordance with the contract of sale heretofore made and executed, and the
Purchaser shall not be obligated to see to the application of the purchase price.
3.07. Securities Depository. (a) For purposes of this Section the following terms
shall have the following meanings:
"Beneficial Owner"shall mean,whenever used with respect to a Bond, the person
in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on
the records of such Participant,or such person's subrogee.
"Cede &Co." shall mean Cede&Co.,the nominee of DTC, and any successor
nominee of DTC with respect to the Bonds.
"DTC"shall mean The Depository Trust Company of New York,New York.
"Participant" shall mean any broker-dealer,bank or other financial institution for
which DTC holds Bonds as securities depository.
"Representation Letter"shall mean the Representation Letter from the City to
DTC with respect to the procedures of DTC presently on file with DTC.
(b) The Bonds shall be initially issued as separately authenticated fully registered
bonds, and one Bond shall be issued in the principal amount of each stated maturity of the
Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the bond
register in the name of Cede &Co., as nominee of DTC. The Registrar and the City may treat
DTC (or its nominee) as the sole and exclusive owner of the Bonds registered in its name for the
purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions
thereof to be redeemed, if any, giving any notice permitted or required to be given to registered
owners of Bonds under this resolution,registering the transfer of Bonds, and for all other
purposes whatsoever; and neither the Registrar nor the City shall be affected by any notice to the
contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any
Participant, any person claiming a beneficial ownership interest in the Bonds under or through
DTC or any Participant, or any other person which is not shown on the bond register as being a
registered owner of any Bonds,with respect to the accuracy of any records maintained by DTC
or any Participant,with respect to the payment by DTC or any Participant of any amount with
respect to the principal of or interest on the Bonds,with respect to any notice which is permitted
or required to be given to owners of Bonds under this resolution,with respect to the selection by
DTC or any Participant of any person to receive payment in the event of a partial redemption of
the Bonds, or with respect to any consent given or other action taken by DTC as registered owner
of the Bonds. So long as any Bond is registered in the name of Cede& Co., as nominee of DTC,
the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with
respect to such Bond,only to Cede &Co. in accordance with the Representation Letter, and all
such payments shall be valid and effective to fully satisfy and discharge the City's obligations
with respect.to the principal of and interest on the Bonds to the extent of the sum or sums so
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paid. No person other than DTC shall receive an authenticated Bond for each separate stated
maturity evidencing the obligation of the City to make payments of principal and interest. Upon
delivery by DTC to the Registrar of written notice to the effect that DTC has determined to
substitute a new nominee in place of Cede&Co., the Bonds will be transferable to such new
nominee in accordance with paragraph (d)hereof.
(c) In the event the City determines that it is in the best interest of the Beneficial
Owners that they be able to obtain Bonds in the form of bond certificates,the City may notify
DTC and the Registrar, whereupon DTC shall notify the Participants of the availability through
DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in
accordance with paragraph(d)hereof. DTC may determine to discontinue providing its services
with respect to the Bonds at any time by giving notice to the City and the Registrar and
discharging its responsibilities with respect thereto under applicable law. In such event the
Bonds will be transferable in accordance with paragraph(d)hereof.
(d) In the event that any transfer or exchange of Bonds is permitted under
paragraph (b) or(c)hereof, such transfer or exchange shall be accomplished upon receipt by the
Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to
the permitted transferee in accordance with the provisions of this resolution. In the event Bonds
in the form of certificates are issued to owners other than Cede&Co., its successor as nominee
for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds,
the provisions of this resolution shall also apply to all matters relating thereto, including,without
limitation, the printing.of such Bonds in.the form of bond certificates and the method of payment
of principal of and interest on such Bonds in the form of bond certificates.
Section 4. Security Provisions.
4.01. 2002 Improvement Construction Fund. There is hereby created a special
bookkeeping fund to be designated as the"2002 Improvement Construction Fund"(the
"Construction Fund"), to be held and administered by the Finance Director separate and apart
from all other funds of the City. The City appropriates to the Construction Fund(a) $
of the proceeds of the sale of the Bonds, and(b) all collections of special assessments levied for
the Improvements until completion and payment of all costs of the Improvements. The
Construction Fund shall be used solely to defray expenses of the Improvements, including but
not limited to the transfer to the Bond Fund, created in Section 4.02 hereof, of amounts sufficient
for the payment of interest and principal, if any, due upon the Bonds prior to the completion and
payment of all costs of the Improvements and the payment of the expenses incurred by the City
in connection with the issuance of the Bonds. Upon completion and payment of all costs of the
Improvements, any balance of the proceeds of Bonds remaining in the Construction Fund may be
used to pay the cost, in whole or in part, of any other improvements instituted pursuant to the
Act,as directed by the City Council,but any balance of such proceeds not so used shall be
credited and paid to the Bond Fund.
4.02. 2002 Improvement Bond Fund. So long as any of the Bonds are
outstanding and any principal of or interest thereon unpaid,the Finance Director shall maintain a
separate and special bookkeeping fund designated"2002 Improvement Bond Fund"(the"Bond
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Fund')to be used for no purpose other than the payment of the principal of and interest on the
Bonds and on such other improvement bonds of the City as have been or may be directed to be
paid therefrom. The City irrevocably appropriates to the Bond Fund (a) all amounts in excess of
$ received from the Purchaser, (b) the collections of special assessments and other
funds to be credited and paid thereto in accordance with the provisions of Section 4.01, (c) any
taxes levied in accordance with this resolution, and(d)all such other moneys as shall be received
and appropriated to the Bond Fund from time to time. If the balance in the Bond Fund is at any
time insufficient to pay all interest and principal then due on all bonds payable therefrom,the
payment shall be made from any fund of the City which is available for that purpose, subject to
reimbursement from the Bond Fund when the balance therein is sufficient, and the Council
covenants and agrees that it will each year levy a sufficient amount to take care of any
accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory
tax limitation.
There are hereby established two accounts in the Bond Fund, designated as the
. "Debt Service Account" and the"Surplus Account." All money appropriated or to be deposited
in the Bond Fund shall be deposited as received into the Debt Service Account. On each
February 1, the Finance Director shall determine the amount on hand in the Debt Service
Account. If such amount is in excess of one-twelfth of the debt service payable from the Bond
Fund in the immediately preceding 12-months, the Finance Director shall promptly transfer the
amount in excess to the Surplus Account. The City appropriates to the Surplus Account any
amounts to be transferred thereto from the Debt Service Account as herein provided and all
income derived from the investment of amounts on hand in the Surplus Account. If at any time
the amount on hand in the Debt Service Account is insufficient to meet the requirements of the
Bond Fund, the Finance Director shall transfer to the Debt Service Account amounts on hand in
the Surplus Account to the extent necessary to cure such deficiency.
4.03. Additional Bonds. The City reserves the right to issue additional bonds
payable from the Bond Fund as may be required to finance costs of the Improvements not
financed hereby;provided that the City Council shall,prior to the delivery of such additional
bonds, levy or agree to levy by resolution sufficient additional special assessments and ad
valorem taxes, if any,which, together with other moneys or revenues pledged for the payment of
said additional obligations,will produce revenues at least five percent(5%) in excess of the
amount needed to pay when due the principal and interest on all bonds payable from the Bond
Fund. The additional special assessments, ad valorem taxes and moneys or revenues so pledged,
levied or agreed to be levied shall be irrevocably appropriated to the Bond Fund in the manner
provided by Minnesota Statutes, Section 475.61.
4.04. Levy of Special Assessments. The City hereby covenants and agrees that
for payment of the cost of each of the Improvements it will do and perform all acts and things
necessary for the full and valid levy of special assessments against all assessable lots, tracts and
parcels of land benefited thereby and located within the area proposed to be assessed therefor,
based upon the benefits received by each such lot, tract or parcel, in an aggregate principal
amount not less than twenty percent(20%)of the cost of the Improvements. In the event that
any such assessment shall be at any time held invalid with respect to any lot,piece or parcel of
land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by
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the City or this Council or any of the City's officers or employees, either in the making of such
assessment or in the performance of any condition precedent thereto, the City and this Council
hereby covenant and agree that they will forthwith do all such further acts and take all such
further proceedings as may be required by law to make such assessments a valid and binding lien,
upon such property. The Council presently estimates that the special assessments shall be in the
aggregate principal-amount of$309,101 payable in not more than 15.installments, the first
installment to be collectible with taxes during the year 2003, and that deferred installments shall
bear interest at the rate of not less than six and five hundredths percent(6.50%)-per annum from
the date of the resolution levying said assessment until December 31 of the year in which the
installment is payable.
4.05. Ad Valorem Taxes. The full faith and credit and taxing powers of the City
are irrevocably pledged for the prompt and full payment of the principal of and interest in the
Bonds as the same become respectively due. For the purpose there is hereby levied upon all of
the taxable property of the City a direct, annual ad valorem tax,which shall be spread upon the
tax rolls prepared in each of the following years and collected with other taxes in the following
_ years and amounts as follows:
Levy Collection
Year Year Amount
2002 2003 $
2003 2004
2004 2005
2005 2006
2006 2007
2007 2008
2008 2009
2009 2010
2010 2011.
2011 2012
2012 2013
2013 2014
2014 2015
2015 2016
2016 2017
The foregoing tax levies are such that if collected in full they will produce at least five percent
(5%)in excess of the amount needed to pay when due the principal of and interest on the Bonds.
This tax shall be irrevocably appropriated to the Bond Fund as long as any of the Bonds are
outstanding and unpaid; provided that the City reserves the right and power to reduce the levies
in the manner and to the extent permitted by Minnesota Statutes, Section 475.61.
4.06. Full Faith and Credit Pledged. The full faith and credit of the City are
irrevocably pledged for the prompt and full payment of the principal of and the interest on the
Bonds, and the Bonds shall be payable from the Bond Fund in accordance with the provisions
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and covenants contained in this resolution. It is estimated that the special assessments and ad
valorem taxes levied and to be levied for the payment of the Improvements will be collected in
amounts not less than five percent(5%) in excess of the annual principal and interest
requirements of the Bonds. If the money on hand in the Bond Fund should at any time be
insufficient for the payment of principal and interest then due, this City,shall pay the principal
and interest out of any.fimd of the City, and such other fund or funds shall.be reimbursed
therefor when sufficient money is available to the Bond Fund. If on October 1 in any year the
sum of the balance in the Bond Fund plus the amount of taxes and special assessments
theretofore levied for the Improvements and collectible through the end of the following calendar
year is not sufficient to pay when due all principal and interest become due on all Bonds payable
therefrom in said following calendar year, or the Bond Fund has incurred a deficiency in the
manner provided in this Section 4.06, a direct, irrepealable, ad valorem tax shall be levied on all
taxable property within the corporate limits of the City for the purpose of restoring such
accumulated or anticipated deficiency in accordance with the provisions of this resolution.
Section 5. Defeasance. When any Bond has been discharged as provided in this
Section 5, all pledges,covenants and other rights granted by this resolution to the holders of such
Bonds shall cease, and such Bonds shall no longer be deemed outstanding under this Resolution.
The City may discharge its obligations with respect to any Bond which is due on any date by
irrevocably depositing with the Registrar on or before that date a sum sufficient for the payment
thereof in full; or, if any Bond should not be paid when due, the City may nevertheless discharge
its obligations with respect thereto by depositing with the Registrar a sum sufficient for the
payment thereof in full with interest accrued to the date of such deposit. The City may also
discharge its obligations with respect to any prepayable Bond called for redemption on any date
when it is prepayable according to their terms, by depositing with the Registrar on or before that
date a sum sufficient for the payment thereof in full; provided that notice of the redemption
thereof has been duly given as provided in Section 3.05. The City may also at any time
discharge its obligations with respect to any Bonds, subject to the provisions of law now or
hereafter authorizing and regulating such action,by depositing irrevocably in escrow,with a
bank qualified by law as an escrow agent for this purpose, cash or securities which are
authorized by law to be so deposited,bearing interest payable at such times and at such rates and
maturing on such dates as shall be required, without reinvestment, to pay all principal and
interest to become due thereon to maturity or, if notice of redemption as herein required has been
duly provided for,to such earlier redemption date.
Section 6. County Auditor Registration. Certification of Proceedings, Investment
of Money; Arbitrage and Official Statement.
6.01. County Auditor Registration. The City Clerk is hereby authorized and
directed to file a certified copy of this Resolution with the County Auditors of Hennepin and
Ramsey Counties, together with such other information as the County Auditors shall require, and
to obtain from said County Auditors a certificate that the Bonds have been entered on his bond
register and the taxes described in Section 4.05 hereof have been levied as required by law.
6.02. Certification of Proceedings. The officers of the City and the County
Auditors of Hennepin and Ramsey Counties are hereby authorized and directed to prepare and
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furnish to the Purchaser and to Dorsey&Whitney LLP,Bond Counsel to the City, certified
copies of all proceedings and records of the City, and such other affidavits, certificates and
information as may be required to show the facts relating to the legality and marketability of the
Bonds as the same appear from the books and records under their custody and control or as
otherwise known to them, and all such certified copies, certificates and affidavits, including any
heretofore furnished, shall be deemed representations of the City as to the facts recited therein.
6.03. Covenant. The City covenants and agrees with the holders from time to
time of the Bonds that it will not take or permit to be taken by any of its officers, employees or
agents any action which would cause the interest on the Bonds to become subject to taxation
under the Internal Revenue Code of 1986, as amended(the"Code'), and Regulations
promulgated thereunder(the"Regulations"), as such are enacted or promulgated and in effect on
the date of issue of the Bonds, and covenants to take any and all actions within its powers to
ensure that the interest on the Bonds will not become subject to taxation under such Code and
Regulations. The Improvements are public improvements available for use by members of the
general public on a substantially equal basis. The City will not enter into any lease,use
agreement or other contract respecting the Improvements which would cause the Bonds to be
considered"private activity bonds"or"private loan bonds"pursuant to Section 141 of the Code.
For purposes of complying with the requirements of Section 148(f)(4)(C)of the
Code relating to the exemption of certain small governmental units from the rebate requirements
.of the Code, the City represents that:
(i) the City is a governmental unit with general taxing powers;
(ii) the Bonds are not"private activity bonds"as defined in Section 141 of the
Code(Private Activity Bonds);
(iii) ninety-five percent of the net proceeds of the Bonds are to be used for the
local governmental purposes of the City; and
(iv) the aggregate face amount of all tax-exempt bonds(other than Private
Activity Bonds) issued by the City in calendar year in which the Bonds are
to be issued is not reasonably expected to exceed $5,000,000.
Therefore,pursuant to the provisions of Section 148(f)(4)(C)of the Code,the City shall not be
required to comply with the arbitrage rebate requirements of paragraphs (2) and(3)'of Section
148(f)of the Code.
6.04. Investment of Money on Deposit in the Bond Fund. The Finance Director
shall ascertain monthly the amount on deposit in the Bond Fund. If the amount on deposit
therein ever exceeds the aggregate amount of principal and interest due and payable from the
Bond Fund through the next following February 1 plus a reasonable carryover as permitted by
the Regulations, such excess shall be used to prepay and redeem Bonds or be invested at a yield
less than or equal to the yield on the Bonds,based upon their amounts,maturities and interest
rates on their date of issue, computed by the actuarial method. The City reserves the right to
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amend the provisions of this Section at any time, whether prior to or after the delivery of the
Bonds, if and to the extent that this Council determines that the provisions of this Section are not
necessary in order to ensure that the Bonds are not"arbitrage bonds"within the meaning of
Section 148 of the Code and Regulations.
6.05. Arbitrage Certification. The Mayor and the City Manager,being the
officers of the City charged with the responsibility for issuing the Bonds pursuant to this
resolution, are authorized and directed to execute and deliver to the Purchaser a certification in
accordance with the provisions of Section 148 of the Code, and the Regulations, stating the facts,
estimates and circumstances in existence on the date of issue and delivery of the Bonds which
make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that
would cause the Bonds to be arbitrage bonds within the meaning of the Code and Regulations.
6.06. Interest Disallowance. The City hereby designates the Bonds as "qualified
tax—exempt obligations" for purpose of Section 265(b)of the Code relating to the disallowance
of interest expenses for financial institutions. The City represents that in calendar year 2002 it
does not reasonably expect to issue tax—exempt obligations which are not private activity bonds
(not treating qualified 501(c)(3)bonds under Section 145 of the Code as private activity bonds
for purposes of this representation) in an amount in excess of$10,000,000.
6.07. Official Statement. The Official Statement relating to the Bonds, dated
February 26, 2002,prepared and distributed on behalf of the City by Springsted Incorporated, is
hereby approved. Springsted Incorporated, is hereby authorized of behalf of the City to prepare
and distribute to the Purchaser a supplement to the Official Statement listing the offering price,
the interest rates, other information relating to the Bonds required to be included in the Official
Statement by Rule 15c2-12 adopted by the Securities and Exchange Commission under the
Securities Exchange Act of 1934. Within seven business days from the date hereof, the City
shall deliver to the Purchaser 30 copies of the Official Statement and such supplement. The
officers of the City are hereby authorized and directed to execute such certificates as may be
appropriate concerning the accuracy, completeness and sufficiency of the Official Statement.
The officers of the City are hereby authorized and directed to execute such certificates as may be
appropriate concerning the accuracy, completeness and sufficiency of the Official Statement.
Section 7. Continuing Disclosure
(a) Purpose and Beneficiaries. To provide for the public availability of certain
information relating to the Bonds and the security therefor and to permit the original purchaser
and other participating underwriters in the primary offering of the Bonds to comply with
amendments to Rule 15c2-12 promulgated by the Securities and Exchange Commission(the
"SEC") under the Securities Exchange Act of 1934(17 C.F.R. § 240.15c2-12), relating to
continuing disclosure (as in effect and interpreted from time to time, the"Rule"),which will
enhance the marketability of the Bonds, the City hereby makes the following covenants and
agreements for the benefit of the Owners (as hereinafter defined) from time to time of the
Outstanding Bonds. The City is the only"obligated person" in respect of the Bonds within the
meaning of the Rule for purposes of identifying the entities in respect of which continuing
disclosure must be made.
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If the City fails to comply with any provisions of this Section 7, any person
aggrieved thereby, including the Owners of any Outstanding Bonds,may take whatever action at
law or in equity may appear necessary or appropriate to enforce performance and observance of
any agreement or covenant contained in this Section 7, including an action for a writ of
mandamus or specific performance. Direct, indirect, consequential and punitive damages shall
not be recoverable for any default hereunder to the extent permitted by law. Notwithstanding
anything to the contrary contained herein, in no event shall a default under this Section 7
constitute a default under the Bonds or under any other provision of this resolution.
As used in this Section 7, "Owner"or`Bondowner"means, in respect of a Bond,
the registered owner or owners thereof appearing in the bond register maintained by the Registrar
or any`Beneficial Owner"(as hereinafter defined) thereof, if such Beneficial Owner provides to
the Registrar evidence of such beneficial ownership in form and substance reasonably
satisfactory to the Registrar. As used herein,"Beneficial Owner"means, in respect of a Bond,
any person or entity which(i)has the power, directly or indirectly,to vote or consent with
respect to, or to dispose of ownership of, such Bond(including persons or entities holding Bonds
through nominees, depositories or other intermediaries),or(b) is treated as the owner of the
Bond for federal income tax purposes. As used herein, "Outstanding"when used as of any
particular time with reference to Bonds means all Bonds theretofore, or thereupon being,
authenticated and delivered by the Registrar under this Resolution except(i) Bonds theretofore
canceled by the Registrar or surrendered to the Registrar for cancellation; (ii)Bonds with respect
to which the liability of the City has been discharged in accordance with Section 5 hereof; and
(iii) Bonds for the transfer or exchange or in lieu of or in substitution for which other Bonds shall
have been authenticated and delivered by the Registrar pursuant to this Resolution.
(b) Information To Be Disclosed. The City will provide, in the manner set forth
in subsection(c)hereof, either directly or indirectly through an agent designated by the City,the
following information at the following times:
(1) on or before 365 days after the end of each fiscal year of the City,
commencing with the fiscal year ending December 31,2002 the following financial information
and operating data in respect of the City(the"Disclosure Information"):
(A) the audited financial statements of the City for such fiscal year,
accompanied by the audit report and opinion of the accountant or government
auditor relating thereto, as permitted or required by the laws of the State of
Minnesota,containing balance sheets as of the end of such fiscal year and a
statement of operations, changes in fund balances and cash flows for the fiscal
year then ended, showing in comparative form such figures for the preceding
fiscal year of the City,prepared in accordance with generally accepted accounting
principles promulgated by the Financial Accounting Standards Board as modified
in accordance with the governmental accounting standards promulgated by the
Governmental Accounting Standards Board or as otherwise provided under
Minnesota law, as in effect from time to time,or, if and to the extent such
financial statements have not been prepared in accordance with such generally
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accepted accounting principles for reasons beyond the reasonable control of the
City,noting the discrepancies therefrom and the effect thereof, and certified as to
accuracy and completeness in all material respects by the fiscal officer of the
City; and
(B) To the extent not included in the financial statements referred to in
paragraph(A) hereof, the information for such fiscal year or for the period most
recently available of the type set forth below,which information may be
unaudited,but is to be certified as to accuracy and completeness in all material
respects by the City's financial officer to the best of his or her knowledge, which
certification may be based on the reliability of information obtained from
governmental or third party sources:
• City Property Values
• City Indebtedness
• City Tax Capacity Rates
• City Tax Levies and Collections
• Current General Fund Budget
Notwithstanding the foregoing paragraph, if the audited financial
statements are not available by the date specified, the City shall provide on or
before such date unaudited financial statements in the format required for the
audited financial statements as part of the Disclosure Information and,within 10
days after the receipt thereof, the City shall provide the audited financial
statements.
Any or all of the Disclosure Information may be incorporated by
reference, if it is updated as required hereby, from other documents, including
official statements, which have been submitted to each of the repositories
hereinafter referred to under subsection(b) or the SEC. If the document
incorporated by reference is a final official statement, it must be available from
the Municipal Securities Rulemaking Board. The City shall clearly identify in the
Disclosure Information each document so incorporated by reference.
If any part of the Disclosure Information can no longer be
generated because the operations of the City have materially changed or been
discontinued, such Disclosure Information need no longer be provided if the City
includes in the Disclosure Information a statement to such effect; provided,
however, if such operations have been replaced by other City operations in
respect of which data is not included in the Disclosure Information and the City
determines that certain specified data regarding such replacement operations
would be a Material Fact (as defined in paragraph(2)hereof), then, from and after
such determination, the Disclosure Information shall include such additional
specified data regarding the replacement operations.
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If the Disclosure Information is changed or this
Section 7 is amended as permitted by this paragraph(b)(1)or
subsection(d),then the City shall include in the next Disclosure
Information to be delivered hereunder,to the extent necessary, an
explanation of the reasons for the amendment and the effect of any
change in the type of financial information or operating data
provided.
(2) In a timely manner, notice of the occurrence of any of the
following events which is a Material Fact (as hereinafter defined):
(A) Principal and interest payment delinquencies;
(B) Non-payment related defaults;
(C) Unscheduled draws on debt service reserves reflecting financial
difficulties;
(D) Unscheduled draws on credit enhancements reflecting financial
difficulties;
(E) Substitution of credit or liquidity providers,or their failure to perform;
(F) Adverse tax opinions or events affecting the tax-exempt status of the
security;
(G) Modifications to rights of security holders;
(H) Bond calls;
(I) Defeasances;
(J) Release, substitution, or sale of property securing repayment of the
securities; and
(K) Rating changes.
As used herein, a"Material Fact"is a fact as to which a substantial likelihood exists that
a reasonably prudent investor would attach importance thereto in deciding to buy,hold or sell a
Bond or, if not disclosed, would significantly alter the total information otherwise available to an
investor from the Official Statement, information disclosed hereunder or information generally
available to the public. Notwithstanding the foregoing sentence,a"Material Fact"is also an
event that would be deemed"material" for purposes of the purchase,holding or sale of a Bond
within the meaning of applicable federal securities laws, as interpreted at the time of discovery of
the occurrence of the event.
(3) In a timely manner, notice of the occurrence of any of the following events or
conditions:
(A) the failure of the City to provide the Disclosure Information required
under paragraph(b)(1) at the time specified thereunder;
(B) the amendment or supplementing of this Section 7 pursuant to
subsection(d), together with a copy of such amendment or supplement and any
explanation provided by the City under subsection(d)(2);
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(C) the termination of the obligations of the City under this
Section 7 pursuant to subsection(d);
(D) any change in the accounting principles pursuant to which the financial
statements constituting a portion of the Disclosure Information are prepared; and
(E) any change m the fiscal year of the City.
(c) Manner of Disclosure. The City agrees to make available the information described
in subsection(b)to the following entities by telecopy,overnight delivery, mail or other means, as
appropriate:
(1) the information described in paragraph(1)of subsection(b), to each then nationally
recognized municipal securities information repository under the Rule and to any state
information depository then designated or operated by the State of Minnesota as contemplated by
the Rule(the"State Depository"), if any;
(2) the information described in paragraphs(2) and(3) of subsection(b), to the
Municipal Securities Rulemaking Board and to the State Depository, if any; and
(3)the information described in subsection(b),to any rating agency then maintaining a
rating of the Bonds and, at the expense of such Bondowner, to any Bondowner who requests in
writing such information, at the time of transmission under paragraphs(1) or(2) of this
subsection(c), as the case may be, or, if such information is transmitted with a subsequent time
of release, at the time such information is to be released.
(d) Term, Amendments: Interpretation.
(1) The covenants of the City in this Section 7 shall remain in effect so long as any
Bonds are Outstanding. Notwithstanding the preceding sentence,however,the obligations of the
City under this Section 7 shall terminate and be without further effect as of any date on which the
City delivers to the Registrar an opinion of Bond Counsel to the effect that,because of legislative
action or final judicial or administrative actions or proceedings,the failure of the City to comply
with the requirements of this Section 7 will not cause participating underwriters in the primary
offering of the Bonds to be in violation of the Rule or other applicable requirements of the
Securities Exchange Act of 1934, as amended, or any statutes or laws successory thereto or
amendatory thereof.
(2) This Section 7 (and the form and requirements of the Disclosure Information)may be
amended or supplemented by the City from time to time,without notice to (except as provided in
paragraph(c)(3)hereof)or the consent of the Owners of any Bonds,by a resolution of the City
Council filed in the office of the City Clerk of the City accompanied by an opinion of Bond
Counsel, who may rely on certificates of the City and others and the opinion may be subject to
customary qualifications, to the effect that: (i) such amendment or supplement(a) is made in
connection with a change in circumstances that arises from a change in law or regulation or a
change in the identity, nature or status of the City or the type of operations conducted by the
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City, or(b) is required by, or better complies with, the provisions of paragraph(b)(5)of the Rule;
(ii)this Section 7 as so amended or supplemented would have complied with the requirements of
paragraph(b)(5)of the Rule at the time of the primary offering of the Bonds, giving effect to any
change in circumstances applicable under clause(i)(a) and assuming that the Rule as in effect
and interpreted at the time of the amendment or supplement was in effect at the time of the
primary offering; and(iii) such amendment or supplement does not materially impair the
interests of the Bondowners under the Rule.
If the Disclosure Information is so amended,the City agrees to provide,
contemporaneously with the effectiveness of such amendment, an explanation of the reasons for
the amendment and the effect, if any, of the change in the type of financial information or
operating data being provided hereunder.
(3) This Section 7 is entered into to comply with the continuing disclosure provisions of
the Rule and should be construed so as to satisfy the requirements of paragraph(b)(5) of the
Rule.
Mayor
Attest:
City Clerk
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember , and upon 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, and was signed by the Mayor
which signature was attested by the City Clerk.
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COUNTY AUDITOR'S CERTIFICATE AS TO
REGISTRATION OF BONDS AND TAX LEVY
CITY OF ST. ANTHONY,MINNESOTA
I, the undersigned,being the duly qualified and acting County Auditor of
Hennepin County, Minnesota, hereby certify that there has been filed in my office a certified
copy of a resolution of the City Council of the City of St. Anthony, in said County, adopted
March 12, 2002, awarding the sale, fixing the form and details and providing for the execution,
delivery and security of$1,500,000 General Obligation Improvement Bonds, Series 2002A,of
the City,to be dated, as of March 1, 2002 and levying taxes for the payment of principal of and
interest on said Bonds.
I further certify that said Bonds have been entered on my bond register and the tax
required by law for payment of the Bonds has been levied and filed, as required by Minnesota
Statutes, Sections 475.61 to 475.63.
WITNESS my hand and official seal this day of , 2002.
Hennepin County Auditor
(SEAL)
64
COUNTY AUDITOR'S CERTIFICATE AS TO
REGISTRATION OF BONDS AND TAX LEVY
CITY OF ST. ANTHONY,MINNESOTA
I, the undersigned,being the duly qualified and acting County Auditor of Ramsey
County, Minnesota, hereby certify that there has been filed in my office a certified copy of a
resolution of the City Council of the City of St. Anthony, in said County, adopted March 12,
2002, awarding the sale, fixing the form and details and providing for the execution, delivery and
security of$1,500,000 General Obligation Improvement Bonds, Series 2002A, of the City,to be
dated,as of March 1, 2002 and levying taxes for the payment of principal of and interest on said
Bonds.
I further certify that said Bonds have been entered on my bond register and the tax
required by law for payment of the Bonds has been levied and filed, as required by Minnesota
Statutes, Sections 475.61 to 475.63.
WITNESS my hand and official seal this day of , 2002.
Ramsey County Auditor
(SEAL)
65
CITY OF ST. ANTHONY
RESOLUTION 02 -030
A RESOLUTION AWARDING A BID FOR
PARKS IMPROVEMENTS
WHEREAS, the City Council desires improvements to be made to the Central Park Pavilion
and Restroom Building and Silver Point Park; and
WHEREAS, bids were requested/advertised and 13 bids were submitted; and
WHEREAS, bids were received and reviewed as follows:
Combined Base Bid
Thompson Homes, Inc. $709,875
CM Construction, Inc. $755,000
Rochon Corporation $765,000
Merrimac Construction $778,514
TCM Construction $793,722
S/L National Corp. $799,302
Faulkner Construction $810,000
Ebert Inc. $822,400
Weber, Inc. $831,126
Construction 70 Inc. $865,000
Lund Martin Construction $866,500
Rak Construction $900,338
M-C Builders $923,282
NOW, THEREFORE,BE IT RESOLVED that the City Council of the City of St. Anthony
hereby awards the bid for the improvements to be made to the Central Park Pavilion and
Restroom Building, and Silver Point Park to the apparent low bidder, Thompson Homes,Inc. in
the amount of$709,875 (combined amount).
Adopted this day of . 2002.
Mayor
ATTEST:
City Clerk
Reviewed for Administration:
City Manager
® 1200 25th Avenue South, P.O. Box 1717,St. Cloud, MN 56302-1717 320.229.4300 320.229!11l- 66
architecture engineering environmental transportation
February 27, 2002 RE: Village of St. Anthony
Park Pavilion and Restroom Buildings
SEH No. A-SANTH0102.00
Mayor and Members of the City Council
Attn: Mike Mornson, City Manager
City of St. Anthony Village
3301 Silver Lake Road
St. Anthony, MN 55418-1699
Dear Mr. Mornson:
Bids were opened in the St. Anthony City Hall at 2:00 p.m. on February 19, 2002, for the above-
referenced improvement. The project is to be bid and awarded on the basis of a combined bid to
construct both buildings at Central Park and Silver Point Park. The low bid was submitted by
Thompson Homes Inc. for the combined project amount of $709,875. As a point of reference, the
combined construction budget, determined by the Architect's estimate, was $703,097.
The breakdown for the bid included $453,096.90 for the construction of the Central Park building,
and $256,778.10 for the building in Silver Point Park. We understand that the City of St. Anthony
will fund the construction of the Central Park pavilion, while funding for the Silver Point Park
building will be provided by the Minnesota DNR.
We have reviewed the low bidders' Bid Form, Bid Bond, and supporting documents, and find them to
be in order. We also contacted three references provided by Thompson Homes for past construction
work. All three references were favorable and very complimentary of Thompson Homes, Inc. As .
Thompson Homes, Inc. appears to be a responsive/responsible bidder, we recommend award of this
contract to Thompson Homes, Inc.
The attached sketch shows how the design of Central Park Pavilion fits into the community.
Sincerely,
Brad Forbrook, AIA
Project Manager
sl
c: Molly Olivier, NCIDQ
H:\SANTH\0102\I-genl\14-corr\L-city recommend bids 022002.doc
Short-Elliott-Hendrickson-inc----L---Your—Trusted-Resource Equal-Opportunity-Employer
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The following is a summary of the approval process for the Central Park design and cost estimate:
1. June 4, 2001: SEH submitted a design and cost estimate of$295,884 to the Parks Commission.
This design was presented and rejected because it was too small.
2. June 19, 2001: A meeting was held with Jay Hartman, Bob Kost of URS, Carol Jindra, Maurie
Anderson, and Molly Olivier to discuss the total budget as submitted in a memo by URS. Carol
recommended the City subtract $153,000 (identified for irrigation and past professional fees)
from the list and make this amount available for the Central Park building project. It was
decided that Molly should proceed with the design of the building at the cost of $419,088.
(Subsequent to this meeting, SEH developed another cost estimate confirming the design at
$418,092).
3. July 9, 2001: This information was presented to the Parks Commission based on their previous
directive in Item 2 above. SEH was directed to present this same information to the City
Council.
4. August 13, 2001: Molly Olivier of SEH confirmed and reviewed the upcoming presentation
with the Parks Commission.
5. August 14, 2001: Molly Olivier presented this design and the estimate of $418,092 to the City
Council. (It should be noted that the soils condition of Central Park was not available until much
later. That soils report later revealed that an additional $20,000 was necessary for soils
correction). This design and cost estimate, as submitted by SEH, was approved and SEH was
directed to proceed with construction documents and public bidding for the project.
6. February 19, 2002: The low bid received for the Central Park building is $453,096.90. As a
point of reference, the total estimated cost, including soils correction, for the Central Park
project was $438,092.
\\sehsc3\scu\santh\0102\1-genl\14-corr\project review.doc
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MEMORANDUM
DATE: March 1, 2002
TO: Mike Mornson, City Manager
FROM: Roger Larson,Finance Director
ITEM: CENTRAL PARK CONSTUCTION COSTS
In May of 2001, the Central Park project was upgraded from $1,600,000 project to
$2,300,000.
A review of the costs was as follows:
Hard Costs:
Construction/Pavilion $1,975,950
Soft Costs:
Engineering 324,050
$2,300,000
On February 19, 2002, bids were opened for the park shelter buildings. Combined with
the construction cost of the park(approved in August)the total costs are at$2,645,100
A summary of the costs is as follows:
Hard Costs:
Construction/Park Building $2,142,959
Soft Costs:
Engineering $ 324,050
Environmental Clean-up:
Hard/Soft costs: 178,091
$2,645,100
The enhancement of costs from the original $2.3 million budget includes: 1) the Central
Park building came in at$453,097 (increase of$167,009) and; 2)Environmental clean-up
costs totaling $178,091 were added to the project.
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Funding Option:
Upon review of the various funding options, it becomes clear that the availability of using
reserves without affecting our A-1 credit rating is near its end. However, with some
special considerations, funding could be available from the following sources:
1) Designate 2001 Liquor Profits $ 51,300
2) Apache LGA reserves $293,800
Total $345,100
Special Considerations:
At this time, the State Legislature is meeting and appears to be close to settling the
State's budget crisis. For the past three to six months, we have adopted a"wait and see
approach" when considering the use of reserves to fund projects.
Using the Apache LGA reserves to fund the Central Park project would eliminate the
availability to use these funds for budget shortfalls. Potential changes and/or cuts could
occur in the general operating budget as well as capital equipment expenditures could be
reduced or delayed till future years.
In addition,the Apache LGA was earmarked as a potential funding source for
Community Center renovations. Using the funds for Central Park,removes them as a
funding source for the Community Center project.
Other Considerations:
The project is well underway and at this point it seems feasible that we should move
ahead on the project. Keep in mind that on a positive note the bids that were rejected last
fall total $2.9 Million.
However, all concerned should acknowledge that the commitment to use our remaining
reserves means the we will have to bond for all major capital expenditures, until such
time we can build reserves back to a level that could support capital expenditures.
Central Park Improvement Project 70
Hard Costs: 01/31/2002
Expenditures Balance
Central Park Constuction - Veit $1,661,762.13 $218,619.14 $1,443,142.99
City Hall Irrigation $28,100.00 $0.00 $28,100.00
Park Building $453,096.90 $0.00 $453,096.90
Total $2,142,959.03 $1,924,339.89
Soft Costs:
URS - Planning & Design $269,050.00 $174,730.00 $94,320.00
SEH - Enginnering/Planning $55,000.00 $51,300.00 $3,700.00
Total $324,050.00 $98,020.00
Additional Environmental Costs:
Common Excavation $9,520.00 $0.00 $9,520.00
Common Borrow $36,988.00 $0.00 $36,988.00
Contaminated Soil/Disposal $25,153.58 $0.00 $25,153.58
Soccer Goal Posts $3,000.00 $0.00 $3,000.00
Erosion Control Fence $4,674.25 $0.00 $4,674.25
Lab, Testing- Soils Analysis $1,500.00 $0.00 $1,500.00
Environmental Field Supplies $295.00 $0.00 $295.00
Lead/Oil Drum Disposal $3,500.00 $0.00 $3,500.00
Additional Lighting Foundation $30,000.00 $0.00 $30,000.00
Practice Soccer Field $10,000.00 $0.00 $10,000.00
STS Consultants - Soil Borings $6,646.00 $2,520.00 $4,126.00
STS- Constuction Testing $5,000.00 $0.00 $5,000.00
URS- Environmental Services $13,500.00 $0.00 $13,500.00
Bond Issuance $23,881.54 $23,881.54 $0.00
Pollution Control $2,362.50 $2,362.50 $0.00
Advertisement for Bids $390.10 $390.10 $0.00
Maurice Anderson $1,680.00 $1,680.00 $0.00
Total $178,090.97 $147,256.83
Central Park Project-Totals $2,645,100.00 $475,483.28 $2,169,616.72
• i
71
XMS
BR ,, InC MEMORANDUM
Thresher Square
700 Third Street South
Minneapolis,N1N 55415
Phone: (612)370-0700
Fax: (612)370-1378
To: Jay Hartman, Copy: Mike Mornson File: 35185-005
Director of Public City Manager
Works
From: Bob Kost, ASLA
Date: August 9, 2001
Subject: Central Park Redevelopment—Re-Bid Results & Budget Summary
Summary
Bids were opened on August 7, 2001 for the redevelopment of Central Park. 4 general
contractors submitted bids: Veit & Company, Jay Brothers, Park Construction and Forest Lake
Contracting. The base bids for all items ranged from $1,661,762 to $2,068,641. The Apparent
low bidder is Veit& Company. The engineers estimate for the all base bid items was
$1,650,000. The low bid is approximately 1% over the engineer's estimate.
An add alternate bid for a new automatic irrigation system for the areas surrounding the City
Hall/Community Center was also included. Veit & Company's price for this item is $28,100.The
total bid price for the base bid and alternate#1 is $1, 689,862.
Park Commission Recommendation
The Parks Commission discussed the bids in detail at their August 13 meeting. The
commission's recommendation is to:
Accept the total bid (base bid and alternate#1) from Veit and Company in the amount of
$1,689,862 and award Veit & Company a contract for the redevelopment of Central Park and
installation of automatic irrigation system at the City Hall/Community Center complex per the
plans and specifications.
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The City Council established a total project budget of$2,300,000 at it's meeting on May 2, 2001.
Based on proceeding with the park renovation as recommended the approximate overall, Central
Park Project cost is as follows:
HARD COST
Central Park Redevelopment Construction Cost: $1,661,762
Irrigation System for City Hall/Community Center: $28,100
Central Park Pavilion/Warming House: $286,088
Silver Point Pavilion (DNR Funded) ($314,206)
Sub-Total: $1,975,950
SOFT COST
URS/BRW Engineering Fees for Central Park Plans,
Specification and Construction Administration: $269,050
SHE Architectural Fees: $55,000
Sub-Total: $324,050
Total Project Costs: $2,300,000.
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CITY OF ST. ANTHONY
RESOLUTION 02 - 031
A RESOLUTION APPROVING THE JOINT POWERS AGREEMENT
FOR POLICE SERVICES WITH THE CITY OF FALCON HEIGHTS
AND AUTHORIZING THE MAYOR AND CITY MANAGER
TO EXECUTE SAID AGREEMENT
WHEREAS, the City of St. Anthony and the City of Falcon Heights desire to enter into a joint
powers agreement whereby the City of St. Anthony agrees to provide police
services for the City of Falcon Heights during 2003 and 2004.
NOW,THEREFORE,BE IT RESOLVED that the City Council of the City of St. Anthony
hereby approves the Joint Powers Agreement with the City of Falcon Heights and authorizes the
Mayor and City Manager to execute said Agreement on behalf of the City of St. Anthony.
Adopted this day of , 2002.
Mayor
ATTEST:
City Clerk
Reviewed for Administration:
City Manager
I
75
Joint Powers Agreement
for Police Services
Page 3
fire/rescue personnel,accompanying fire/rescue personnel to the hospital
upon request of such personnel, and providing follow-up information to
fire/rescue personnel upon request of such personnel;
J. Officers will be available at Falcon Heights City Hall to answer questions
from, and provide information regarding police activities to, Falcon
Heights residents, business owners and staff on an as-needed basis;
K. License inspections, background investigations and license enforcement
services as called for under applicable state law or city ordinances;
L. Review and comment, upon request, of proposed Falcon Heights
ordinances affecting police services or enforcement;
M. Follow-up on reported crimes with the person(s)who reported the crime,
including routine notification by telephone or mail as to the status of the
investigation; and
N. Special event traffic patrol services, including ten days per year during
the State Fair; and other events such as periodic parades and the
National Street Rods Association Convention.
V. PAYMENT FOR SERVICES
This Agreement will be effective January 1, 2003 and will continue until December 31,
2004, In consideration of the services to be provided under this Agreement, Falcon
Heights will pay St. Anthony an annual fee of $444,153 for the year 2003, and an
annual fee of $463,030 for the year 2004, for the police services under this
Agreement. This Agreement will be effective January 1, 2003 and will continue
indefinitely unless canceled in accordance with the procedure outlined in Section XX
of this Agreement. Inconsideration of services provided for under this Agreement, St.
Anthony and Falcon Heights shall establish the fee for these services on a biennial
basis by May 15th of the even numbered year preceding each biennium.
VI. METHOD OF PAYMENT
St. Anthony will bill Falcon Heights monthly for 1/12 of the annual fee, and Falcon
Heights will promptly remit payments to St. Anthony within 30 days after receiving
each billing from St. Anthony.
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CITY OF ST. ANTHONY
RESOLUTION 02 - 032
A RESOLUTION APPROVING THE JOINT POWERS AGREEMENT
FOR POLICE SERVICES WITH THE CITY OF LAUDERDALE
AND AUTHORIZING THE MAYOR AND CITY MANAGER
TO EXECUTE SAID AGREEMENT
WHEREAS, the City of St. Anthony and the City of Lauderdale desire to enter into a joint
powers agreement whereby the City of St. Anthony agrees to provide police
services for the City of Lauderdale during 2003 and 2004.
NOW,THEREFORE, BE IT RESOLVED that the City Council of the City of St. Anthony
hereby approves the Joint Powers Agreement with the City of Lauderdale and authorizes the
Mayor and City Manager to execute said Agreement on behalf of the City of St. Anthony.
Adopted this day of , 2002.
Mayor
ATTEST:
City Clerk
Reviewed for Administration:
City Manager
77
Joint Powers Agreement
for Police Services
Page 3
fire/rescue personnel, accompanying fire/rescue personnel to the hospital
upon request of such personnel, and providing follow-up information to
fire/rescue personnel upon request of such personnel;
J. Officers will be available at Lauderdale City Hall to answer questions
from, and provide information regarding police activities to, Lauderdale
residents, business owners and staff on an as-needed basis;
K. License inspections, background investigations and license enforcement
services as called for under applicable state law or city ordinances;
L. Review and comment, upon request, of proposed Lauderdale ordinances
affecting police services or enforcement;
M. Follow-up on reported crimes with the person(s)who reported the crime,
including routine notification by telephone or mail as to the status of the
investigation; and
N. Special event traffic patrol services, including ten days per year during
the State Fair; and other events such as periodic parades and the
National Street Rods Association Convention.
V. PAYMENT FOR SERVICES
This Agreement will be effective January 1, 2003 and will continue until December 31,
2004, In consideration of the services to be provided under this Agreement,
Lauderdale will pay St. Anthony an annual fee of$231,000 for the year 2003, and an
annual fee of $240,818 for the year 2004, for the police services under this
Agreement. This Agreement will be effective January 1, 2003 and will continue
indefinitely unless canceled in accordance with the procedure outlined in Section XX
of this Agreement. In consideration of services provided for under this Agreement, St.
Anthony and Lauderdale shall establish the fee for these services on a biennial basis
by May 15th of the even numbered year preceding each biennium.
VI. METHOD OF PAYMENT
St. Anthony will bill Lauderdale monthly for 1/12 of the annual fee, and Lauderdale will
promptly remit payments to St. Anthony within 30 days after receiving each billing
.78
MEMORANDUM
DATE: February 28, 2002
TO: Mike Morrison, City Manager
FROM: Roger Larson, Finance Director
ITEM: POLICE-CONTRACTS 2003—2004
Staff has reviewed the police contracts for 2003 and 2004. Recommendation to the City
Council is for a 4.5% increase for contract year 2003 &a 4.25% increase in 2004.
The proposed increase is necessary to offset increased costs in the following areas:
✓ Salaries—Union contract for salaries will increase 3.5% and 3.25% over
the next two years.
✓ Health insurance increased 12%.
✓ Increasing costs of maintenance (labor, tires,parts &etc.).
✓ Fuel costs are expected to remain on an upward trend.
✓ Upgrade of records management/computer system.
✓ Hennepin/Ramsey County 800 MHZfVHF radio system.
Both Lauderdales' and Falcon Heights' Councils have approved and signed their respective
contracts.
The proposed increase is contingent on a favorable approval by the St. Anthony City Council.
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CITY OF ST. ANTHONY
ORDINANCE 2002-001
AN ORDINANCE RELATING TO PHYSICAL CULTURE AND
HEALTH SERVICES AND CLUBS; ADDING
SECTION 575 TO THE ST. ANTHONY CITY CODE
The City Council of the City of St. Anthony hereby ordains:
Section 1. The St. Anthony City Code is hereby amended by adding Section 575 as follows:
Section 575 —PHYSICAL CULTURE AND HEALTH SERVICES AND CLUBS
575.01 Definitions. Unless the context otherwise clearly indicates, the following terms shall
have the stated meanings:
"Massage". The rubbing,pressing, stroking, kneading, tapping, rolling, pounding,
vibrating, or stimulating the superficial parts of the human body with the hands or any
instrument by a person who is not duly licensed by the State to practice medicine,
surgery, osteopathy, chiropractic,physical therapy or podiatry.
"Physical Culture and Health Services," "Physical Culture and Health Club,"
"Reducing Club," "Reducing Salon," "Therapeutic Massage Studio." Any building,
room, structure, place, or establishment used by the public other than a hospital,
sanitarium, rest home, nursing home, boarding home or other institution for the
hospitalization or care of human beings, duly licensed under the provisions of M.S.
144.50 through 144.703, inclusive, where non-medical and non-surgical manipulative
exercises or massages are practiced upon the human body for a fee or other valuable
consideration by anyone not duly licensed by the State to practice medicine, surgery,
osteopathy, chiropractic, physical therapy or podiatry, with or without the use of
mechanical, therapeutic, or bathing devices.
575.02 Business License Required.
Subd. 1 Limiting Business Licenses. It is found and determined that the type of business
activity subject to being licensed under this Section is particularly subject to abuse which
may take a number of forms contrary to the morals, health, safety and general welfare of
the community. Further, it is found that control of these abuses requires intensive efforts
of the Police Department as well as other departments of the City. These efforts exceed
those required to control and regulate other business activities licensed by the City. This
concentrated use of City services tends to detract from and reduce the level of service
available to the rest of the community and thereby diminishes the ability of the City to
promote the general health, welfare, morals and safety of the community. Therefore, the
number of business licenses which may be in force under this Section at any one time
shall not exceed seven.
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Subd. 2 Requiring License and Defining Businesses Operating within City. No person,
partnership, corporation, or other organization shall operate a physical culture and health
service or club, reducing club or salon, or therapeutic massage studio within the City,
either exclusively or in connection with any other operation or enterprise, unless such
business is currently licensed under this Section.
Subd. 3 Certain Businesses Exempt.
A. The preceding provisions of this Section notwithstanding, no business license
shall be required for a business establishment which offers massage as an
accessory use if it meets all of the following criteria as evidenced by affidavits
and other documents submitted to and in form and substance reasonably
acceptable to the Clerk:
1. The principal activity of the business shall not be performing massage
for a fee or other consideration;
2. The annual gross revenue of the business from performing massage is
less than 25% of the total annual gross revenue of the business as shown
by financial statements or an affidavit signed by the authorized Officer of
the business. In lieu of delivery of the aforementioned affidavit, at the
direction of the City, the business shall be required to deliver, a
certification from a certified public accountant, acceptable to the Manager,
that the annual gross revenue from massage services, for the preceding
twelve months, is less than 25% of its total annual gross revenue for such
period of time.
3. The room or rooms where massage is performed shall not have an
exclusive entrance from or exit to the exterior of the building in which the
principal business is located or to a public concourse or public lobby.
Notwithstanding the foregoing, massage may be performed by an
individual at the residence of the person receiving the massage.
4. All fees or other consideration derived from performing massage shall
be received by and accounted for by the proprietor of the principal
business.
5. All individuals performing massage in connection with the business
shall be employees of the principal business or shall be independent
contractors or agents who perform massage pursuant to a written
agreement with the owner of the principal business and each individual
performing massage in connection with the business shall meet the
educational requirements of subd. 5 of Subsection 575.13.
B. Any business that requests an exemption from the business license
requirement shall submit the required affidavits and documents on an annual
basis. The exemption request shall be due on or before the fifteenth day of March
of each year.
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575.03 License Application and Procedures. Every application for a license under this Section
shall be made on a form supplied by the Clerk and shall be filed with the Clerk. The provisions
of Subsection 500.02 of this Code shall apply to all licenses required by this Section and to the
holders of such licenses. In addition to the information required by Subsection 500.02 of this
Code, the application for a license under this Section shall contain the following information.
Failure to complete or supply such information may cause a license to be denied.
A. Whether the applicant is a natural person, a partnership, a corporation, or other
form of organization.
B. If the applicant is a natural person:
1. The true name, place and date of birth, current address and telephone
number of the applicant.
2. Whether the applicant has ever used or has been known by a name
other than the applicant's true name; and if so, such name or names and
information concerning dates and places where used.
3. A specific statement as to the type and nature of the business to be
licensed.
4. The name of the business, if it is to be conducted under a name other
than the full individual name of the applicant, in which case a certified
copy of the certification required by M.S. Chapter 333, shall be attached to
the application.
5. The addresses at which the applicant has lived during the previous five
years, including a statement of how long the applicant has been
continuously a resident of the State during the period as of and
immediately preceding the date of application.
6. The kind, name and location of every business or occupation in which
the applicant has been engaged during the preceding five years.
7. The names and addresses of the applicant's employer(s) and partner(s),
if any, who were such at any time during the preceding five years.
8. Whether the applicant has ever been convicted of any felony, crime, or
violation of any provisions of this Code or State Law other than traffic
violations and, if so, information as to the time,place and offense for
which convictions were had.
C. If the applicant is a partnership:
1. The names and addresses of all partners and all information concerning
each partner as is required of an applicant under paragraph B. of this
Subsection.
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2. The names(s) of the managing partner(s), and the interest of each
partner in the business.
3. A true copy of the partnership agreement shall be submitted with the
application. If the partnership is required to file a certificate as to trade
name under the provisions of M.S. Chapter 333, a certified copy of such
certification shall also be attached.
D. If the applicant is a corporation or other organization.
1. The name of the applicant, and if incorporated, the state of
incorporation.
2. A true Certificate of Good Standing, dated as of a current date, and true
copies of the Articles of Incorporation or Association Agreement and
Bylaws shall be attached to the application. If a foreign corporation, a
Certificate of Authority issued pursuant to M.S. Chapter 303, shall also be
attached.
3. The name of the person(s) who is to manage the business and all
information concerning the person(s) as is required of an applicant under
paragraph B. of this Subsection.
4. The names of all officers, directors and persons who control or own an
interest in excess of 5% in such corporation or organization and all
information concerning the persons as is required of an applicant under
paragraph B. of this Subsection.
E. The location of the business premises.
F. Whether the applicant is licensed in other communities or has had a license
revoked, or has been denied a license, to conduct any of the activities required to
be licensed hereunder; and if so, when and where the applicant is or was so
licensed, has had a license revoked or has been denied a license.
G. The names, residences and business addresses of three residents of Hennepin
County or Ramsey County, not related to the applicant or financially interested in
the business to be licensed, who may be referred to by the City for information as
to the applicant's character. If the applicant is a partnership, three such names
shall be supplied for each partner, and if the applicant is a corporation or other
organization, three such names shall be supplied for each officer of the applicant
and each manager of the business.
H. The amount of capital investment to be made by the applicant in the premises
described in the application to operate the business to be licensed. Capital
investment shall mean the amount of money that the applicant actually invests to
acquire, refurbish, repair, remodel, or furnish the premises, including moneys
invested to comply with Subsection 575.14.
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I. A financial statement, certified as being true and correct by an independent
accountant, showing the gross income of the business to be licensed for the last
three fiscal years of such business, or shorter period of time that the applicant may
have been in the business to be licensed, itemized as to each activity of the
business including, without limitation,the gross income from performing
massage.
J. The names of all individuals performing massages in connection with the
business and evidence that all such individuals meet the educational requirements
of subd. 5 of Subsection 575.13,
575.04 Execution of Application. All applications for any license under this Section shall be
signed by the applicant in accordance with Subd. 2 of subsection 500.02 of the Code. Any
falsification of information on any license application shall result in the denial of the license
applied for, and shall constitute adequate grounds for the suspension or revocation of any license
issued to the applicant.
575.05 License and Investigation Fees.
Subd. 1 License Fee. Each application for a license or renewal license shall be
accompanied by payment in full of the required license fee. The fee for a business
license shall be as set forth in Subsection 615.06 of this Code. Upon rejection of any
application for a license, the Clerk shall refund the amount paid.
Subd. 2 Investigation Fee. At the time of each original application for a business license,
the applicant shall deposit an investigation fee as set forth in Subsection 615.06 of this
Code. The cost of the investigation will be based on the expense involved. All deposit
monies not expended on the investigation will be refunded to the applicant.
575.06 Investigation. All applications shall be referred by the Clerk to the Police Department
and to such other City departments for investigation of the applicant's character and verification
of the facts set forth in the application. Within 60 days after the application date, the Police
Chief and any other consultants shall submit a written recommendation to the Manager as to
issuance or non-issuance of the license, setting forth the facts upon which the recommendation is
based.
575.07 Approval or Denial of Application. Within 90 days after the application date, the
Manager shall either approve or deny the application and shall notify the Clerk in writing of the
decision. If the application is approved, the Clerk shall issue the license. If the application is
denied, the Clerk shall furnish written notice of the denial to the applicant, together with the
reason or reasons for denial. A license may also be denied for any of the following reasons:
Subd. 1 Under Legal Age. If an individual applicant is under the age of 18.
Subd. 2 Convictions. If the applicant, or any officers, managers, directors, shareholders
or owners, if a corporation or association, or any partners, if a partnership, has been
convicted of a felony, or has been convicted of any illegal conduct involving moral
turpitude, dishonesty, fraud, deceit or misrepresentation.
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Subd. 3 Conviction without Sufficient Rehabilitation. If the applicant, or any principal
officers, managers, directors, shareholders or owners, if a corporation or association, or
any partners, if a partnership, has been convicted of any crime or crimes directly relating
to the occupation of massage services, as provided in M.S. 364.03, Subd. 2, and has not
shown competent evidence of sufficient rehabilitation and present fitness to perform the
duties of the occupation of massage services, as provided in M.S. 364.03, Subd. 3.
Subd. 4 Prior Denial of License. If the applicant, or any principal officers, managers,
directors, shareholders or owners, if a corporation or association, or any partners, if a
partnership, has within one year prior to the date of application been denied a license
under this Section, or any similar ordinance of any municipality within the State, or
within the period has had revoked any license issued under this Section, or any similar
ordinance of any municipality within the State.
Subd. 5 Zoning Restriction. If the business to be licensed is not permitted by Chapter 16
of this Code upon the premises described in the application.
Subd. 6 Failure to Meet Construction Requirements. If the premises described in the
application for a business license fail to comply with the requirements of Subsection
575.14.
575.08 Renewal Application. Not less than 30 nor more than 60 days before the expiration of
any license issued pursuant to this Section, any license holder desiring to renew the license shall
submit a written application to the Clerk on forms provided by the City together with payment in
full of the license fee as required for the original license. The renewal application shall be
forwarded to the Manager who shall,within 30 days after the renewal application date, either
approve or deny the application and shall notify the Clerk in writing of the decision. The Clerk
shall then issue the license or, in case of denial, notify the applicant in writing of the denial
setting forth the reason or reasons therefor.
575.09 Appeal to Council. Any applicant may appeal the denial of a license or a license renewal
by filing a written notice of appeal to the Council in the Clerk's office within 10 days after the
denial. The Council shall hear the appeal within 60 days after the notice is filed, and opportunity
shall be given to any person to be heard in favor of or opposing the issuance or renewal of the
license. The Council may order and conduct such additional investigation as it deems necessary.
Any licensee is authorized to continue to operate until final action by the Council upon licensee's
renewal application, unless prohibited by Council resolution made after the denial.
575.10 License Not Transferable; Duration. Each license shall be issued to the applicant only
and shall not be transferable to another holder. Any change in the persons named as partners on
the application, as required by paragraph C.1 of Subsection 575.03 and any change in the persons
who are named in the application as required by paragraph DA of Subsection 575.03 shall be
deemed a transfer for purposes of this Section. If the licensee is a limited partnership, a change
in the limited partners of less than 25%cumulatively over the license period shall not be deemed
a transfer. The change in or addition of a vice-president, secretary, or treasurer of a corporate
licensee shall not be deemed a transfer. All licenses issued pursuant to this Section shall be
effective for the period provided in Section 500.07.
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575.11 Suspension or Revocation of License. The Council may suspend for any period not
exceeding 60 days, or revoke, any license issued pursuant to this Section upon finding a violation
of any provision of this Section or upon violation of any other provision of this Code or State
Law or regulation affecting the activities covered by this Section. Any conviction for
prostitution or any other crime or violation involving moral turpitude shall result in the
revocation of any license issued under this Section. Except in the case of a suspension pending a
hearing on revocation, revocation or suspension by the Council shall be preceded by written
notice to the licensee of a hearing. The notice may be served upon the licensee personally or by
mailing it to the business or residence address set forth in the application or on file with the
Clerk. The notice shall give at least ten days notice of the time and place of the hearing and shall
state the nature of the charges against the licensee. The Council may, without notice, suspend
any license pending a hearing on revocation for a period not exceeding 30 days.
575.12 Hours of Operation. No business licensed under this Section shall be open for business,
nor shall any customers be permitted on the premises, between the hours of 10:00 P.M. and 7:00
A.M.
575.13 Restrictions and Regulations.
Subd. 1 Notice of Change in Management. The individual designated by a partnership
or a corporation in its business license application to be manager and in responsible
charge of the business shall remain responsible for the conduct of the business until
another suitable person has been designated in writing by the license holder. The license
holder shall promptly give the Police Department written notice of any such change
indicating the name and address of the new manager and the effective date of the change.
Subd. 2 Clothing Requirements. Employees of businesses licensed under this section
shall be and shall remain fully clothed while performing massage.
Subd. 3 Location of Services. No person shall perform a massage for a fee or other
consideration at any place other than (i) a physical culture and health service, physical
culture or health club, reducing salon, or therapeutic massage studio that has been duly
licensed pursuant to Subd. 2 of Subsection 575.02, (ii) a business which is exempt from a
business license pursuant to Subd. 3 of Subsection 575.02, or(iii) the residence of the
person receiving the massage.
Subd. 4 No Services Allowed by Sexually Oriented Businesses. No person shall perform
a massage for a fee or other consideration in connection with a sexually oriented business
as defined by Subd. 87 of Subsection 1605 of this Code.
Subd. 5 Educational Requirements. No person shall perform a massage for a fee or other
consideration unless the person has at least 150 hours of education in massage therapy
from a school for massage therapy accredited by the Integrated Massage Somatic
Therapy Accreditation Council or other accrediting agency approved by the Manager.
575.14 Construction Requirements. No business license shall be issued under this Section
unless the premises used for the operation shall comply with the following requirements:
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Subd. 1 Requirements for Steam or Hot Air Rooms. All rooms utilizing steam or hot air
as a cleaning, relaxing or reducing agent, and all restrooms, changing rooms and
bathrooms used in connection with such rooms, shall be constructed with materials
impervious to moisture,bacteria, mold and fungus growth. Floor-to-wall and wall-to-
wall joints shall be constructed so as to provide a sanitary cove with a minimum radius of
3/8 inch.
Subd. 2 Public Restroom Requirements. All public restrooms shall be provided with
mechanical ventilation with 2 cfm (cubic feet per minute)per square foot area, a
minimum of 15 foot candles of illumination, a hand washing sink equipped with hot and
cold running water under pressure, sanitary towels with dispensers and soap with
dispensers.
Subd. 3 Requirements for Janitor's Closet. Each such operation shall have a janitor's
closet for the storage of cleaning supplies with a mop sink, mechanical ventilation with 2
cfm per square foot area and a minimum of 15 footcandles of illumination.
Subd. 4 Lockers. Individual lockers shall be provided for use by customers and shall
have separate keys for locking.
575.15 Maintenance; Sanitary Conditions; Communicable Disease.
Subd. 1 Clean and Sanitary Business. All businesses licensed under this Section at all
times shall be kept in a clean and sanitary condition.
Subd. 2 Clean and Sanitary Instruments. All instruments and mechanical, therapeutic,
and bathing devices or parts that come into contact with the human body at all times shall
be kept clean and sanitary.
Subd. 3 Towels and Linens. No towels and linens furnished for use by one patron shall
be furnished for use by another until thoroughly laundered.
Subd. 4 Hand Washing. All individuals who practice massage shall wash their hands
before each massage.
Subd. 5 Communicable Disease. No person suffering from a communicable disease
shall work or be employed in a licensed business. No person suffering from a
communicable disease to the knowledge of the owner, custodian, or employees of a
licensed business shall be accommodated as a patron.
575.16 Inspection. Each business required to be licensed shall at all times be held open for
inspection by duly authorized representatives of the City.
575.17 Barber Shops and Beauty Salons Exempted. Barber shops and beauty salons which do
not give, or hold themselves out to give, massages, other than are customarily given in such
shops and salons for the purpose of facial beautification only shall not be subject to the
provisions of this Section.
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Section 2. Subsection 615.06 of the St. Anthony City Code shall be amended to add the
following fee for licenses issued under Section 575 of the St: Anthony City Code:
Minnesota Applicable -'
License Fee Term Transferable Statutes Code Section
Physical Culture and Health $250 license
Service or Club,Reducing Club fee'and$500
or Salon,Sauna Parlor, investigation
Therapeutic Massage Studio fee deposit
One Year No 575
Section 3. Clause (eee) of Subsection 1635.02 of the St. Anthony City Code shall be
amended to read as follows:
(eee) Physicians, dentists and health care professionals, including optometrists,
chiropractors, chiropodists and osteopaths, therapists, and physical culture and
health service or club, reducing club or salon or therapeutic massage studio, as
defined in Subsection 575.01.
Section 4. This ordinance shall become effective as of the date of its publication. Any
person, partnership, corporation, or other organization operating a physical culture and health
service or club, reducing club or salon or therapeutic massage studio in the City as of the
effective date of this ordinance which is required to obtain a business license under this
ordinance shall comply with this ordinance no later than 120 days after the effective date of this
ordinance.
First Reading: January 8, 2002
Second Reading: February 26, 2002
Adopted: March 12, 2002
Mayor
ATTEST:
City Clerk
Publish: St. Anthony Bulletin
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` March 6,2002
ills e C FUTURE COUNCIL AGENDA ITEMS
Meeting Date Meeting Type Staff Present Items/Issues
March 26 Regular T. Hubmer Public hearing on park grant application
Jay Hartman Annual Public Works report for 2001
April 2 Work Session Review development agreement with Pratt Ordway
Review goals with J. Prosser
Review preliminary work on Fire Station and Public
Works facilities&off-sale liquor
April 9 Regular Board of Review
Proclamation re: Volunteer Week
Planning Commission report from 3/19 meeting
Dick Engstrom Annual Police report for 2001
Res. re: Development agreement with Pratt Ordway
April 23 Regular Joel Hewitt Annual Fire report for 2001
Public hearing on 2003 City budget
Planning Commission report from 4/16
Prosser Financial strategies
Res.re: development agreement with Pratt Ordway
May 14 Regular Roger Larson Annual Finance report for 2001
Presentation of 2001 City audit
May 28 Regular
January - 2002 City of St.Anthony
Profit&Loss Statement from Operations
Actual Actual
Year to Date Year to Date Increase
SAV I SAV II STONEHOUSE 01/31/02 01/31/01 (Decrease)
Sales $133,759.00 $143,483.00 $63,513.00 $340,755.00 $341,788.00 ($1,033.00)
Less: Cost of Goods Sold $103,577.00 $113,664.00 $22,043.00 $239,284.00 $242,096.00 ($2,812.00)
Gross Profit $30,182.00 $29,819.00 $41,470.00 $101,471.00 $99,692.00 $1,779.00
Ratio to Net Sales 22.56% 20.78% 65.29% 29.78% 29.17%
Operating Expense:
Salaries,Wages, Benefits $15,212.00 $15,771.00 $23,714.00 $54,697.00 $51,300.00 $3,397.00
All Other Expenses $9,470.00 $11,533.00 $16,874.00 $37,877.00 $43,925.00 ($6,048.00)
Total Operating Expense $24,682.00 $27,304.00 $40,588.00 $92,574.00 $95,225.00 ($2,651.00)
Ratio to Net Sales 18.45% 19.03% 63.91% 27.17% 27.86%
Profit from Operations $5,500.00 $2,515.00 $882.00 $8,897.00 $4,467.00 $4,430.00
Other Income $83.00 $302.00 $2,672.00 $3,057.00 $3,983.00 ($926.00)
Net Income $5,583.00 $2,817.00 $3,554.00 $11,954.00 $8,450.00 $3,504.00
Ratio to Net Sales 4.17% 1.96% 5.60% 3.51% 2.47%
January-Net Income $11,954.00
Y-T-D
SAV I SAV II STONEHOUSE ALL STORES
YEAR TO DATE 01/31/02 $5,583.00 $2,817.00 $3,554.00 $11,954.00
YEAR TO DATE 01/31/01 $4,972.00 $5,329.00 ($1,851.00) $8,450.00.
INCREASEIDECREASE $611.00 ($2,512.00) $5,405.00 $3,504.00
January- 2002 City of St.Anthony
Reconciliation to Inventory Valuation Report
SAVI SAVII
Beginning Inventory: $194,584.65 Beginning Inventory: $217,933.08
Plus or Minus: Plus or Minus:
Transfers: SAV 1 $2,347.97 Transfers ($2,347.97)
Stonehouse ($7,032.09) Adjustments ($2,547.31)
Adjustments ($468.99) Returns to Vendors ($4,299.30)
Returns to Vendors ($3,018.94)
Add: Receiving $170,357.99
Add: Receiving $162,100.62
Less: Cost of Goods Sold ($111,116.57)
Less:Cost of Goods Sold ($103,107.95)
TOTAL $267,979.92,
TOTAL $245,405.27
Total per Valuation Report $269,170.22
Total per Valuation Report $244,166.70
Difference $1,190.30
Difference ($1,238.57)
Beginning February 2002 Inventory $244,166.70 Beginning February 2002 Inventory $269,170.22
"'Comes from Valuation Report "'Comes from Valuation Report
2001 Actual Profits (Non-Audited) 2002 Y-T-D Profits
Actual Y-T-D
SAV 1 SAV 11 Stonehouse SAV I SAV 11 Stonehouse Prottta Comparison
January $4,972.00 $5,329.00 ($1,851.00) $8,450.00 January $5,583.00 $2.817.00 $3,554.00 $11,954.00 $3,504.00
February $7,218.00 $6,065.00 $9,410.00 $31,143.00 February $0.00 $0.00 $0.00 $11,954.00
March $9,510.00 $7,064.00 $7,510.00 $55,227.00 March $0.00 $0.00 $0.00 $11,954.00
April $5,631.00 $4,295.00 $10,712.00 $75,865.00 April $0.00 $0.00 $0.00 $11,954.00
May $5,705.00 $6,957.00 $1,372.00 $89,899.00 May $0.00 $0.00 $0.00 $11,954.00
June $16,325.00 $14,485.00 $2,734.00 $123,443.00 June $0.00 $0.00 $0.00 $11,954.00
July $9,392.00 $12,077.00 $3,712.00 $148,624.00 July $0.00 $0.00 $0.00 $11,954.00
August $3,986.00 $8,106.00 $3,261.00 $163,977.00 August $0.00 $0.00 $0.00 $11,954.00
September $12,586.00 $10,394.00 $4,417.00 $191,374.00 September $0.00 $0.00 $0.00 $11,954.00
October $6,104.00 $7,558.00 $2,934.00 $207,970.00 October $0.00 $0.00 $0.00 $11,954.00
November $11,007.00 $11,302.00 $12,660.00 $242,939.00 November $0.00 . $0.00 $0.00 $11,954.00
December $19,321.00 $26.845.00 $6,387.00 $295,492.00 December ,0.00 $0.00 $0.00 $11,954.00
Total $111,757.00 $120,477.00 $63,258.00 $295,492.00 Total $5,583.00 $2,817.00 $3,554.00 $11,954.00
Increase/(Decrease) $611.00 ($2,512.00) $5,405.00 $3,504.00
Y-TD By Store