HomeMy WebLinkAbout15.F.1. Awarding Sale of 2003A Improvement Bonds-Res. No. 5893
/5". F. I.
CITY OF SHAKOPEE
Memorandum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Awarding Sale of 2003A Improvement Bonds
DATE: May 14, 2003
Introduction
Council action is needed to award the sale of improvement
bonds for 2003.
Background
The attached resolution was prepared by bond counsel to
award the sale of improvement bonds series 2003A. This is a
routine event. The bonds being sold will finance the
Vierling Dr./Sage to Marschall, Valley View/Sarazin, and
17th Ave/Colonial projects.
The resolution needs to be adopted at the May 20th Council
meeting to complete the bond sale. It is expected that
Springsted will bring a completed resolution to the council
meeting.
Springsted will make the presentation to Council of the
results of the sale.
Action
Offer Resolution No. 5jjJ A Resolution Awarding The Sale Of
$2,215,000 General Obligation Improvement Bonds Series
2003A, Fixing Their Form and Specifications; Directing Their
Execution And Delivery; and Providing For Their Payment, and
move its adoption.
Gregg Voxland
Finance Director
G:\finance\bonds\
Extract of Minutes of Meeting
of the City Council of the City of
Shakopee, Scott County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Shakopee, Minnesota, was duly held in the City Hall in said City on Tuesday, May 20, 2003,
commencing at o'clock .M.
The following members were present:
and the following were absent:
*** *** ***
The Mayor announced that the next order of business was consideration of the proposals
which had been received for the purchase of the City's $2,215,000 General Obligation
Improvement Bonds, Series 2003A.
The City Administrator presented a tabulation of the proposals that had been received in
the manner specified in the Terms of Proposal for the Bonds. The proposals were as set forth in
Exhibit A attached.
After due consideration of the proposals, Member then
introduced the following resolution, and moved its adoption:
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RESOLUTION NO. 5893
A RESOLUTION AWARDING THE SALE OF $2,215,000
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2003A
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Shakopee, Scott County,
Minnesota (City) as follows:
Section 1. Sale of Bonds.
1.01. The proposal of (Purchaser) to
purchase $2,215,000 General Obligation Improvement Bonds, Series 2003A (Bonds) of the City
described in the Terms of Proposal thereof is hereby found and determined to be a reasonable
offer and is hereby accepted, the proposal being to purchase the Bonds at a price of
$ plus accrued interest to date of delivery, for Bonds bearing interest as follows:
Year of Interest Year of Interest
Maturity Rate Maturity Rate
2005 2010
2006 2011
2007 2012
2008 2013
2009 2014
True interest cost:
1.02. The sum of $ being the amount proposed by the Purchaser in excess
of $2,190,635 will be credited to the Debt Service Fund hereinafter created. The City Finance
Director is directed to retain the good faith check of the Purchaser, pending completion of the
sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith.
The Mayor and City Administrator are directed to execute a contract with the Purchaser on
behalf of the City.
1.03. The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes,
Chapter 429 (Act) in the total principal amount of $2,215,000, originally dated June 1, 2003, in
the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward,
bearing interest as above set forth, and maturing serially on February 1 in the years and amounts
as follows:
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Year Amount Year Amount
2005 $495,000 2010 $130,000
2006 425,000 2011 170,000
2007 185,000 2012 165,000
2008 185,000 2013 165,000
2009 130,000 2014 165,000
1.04. Optional Redemption. The City may elect on February 1, 2011, and on any day
thereafter to prepay Bonds due on or after February 1, 2012. Redemption may be in whole or in
part and if in part, at the option of the City and in such manner as the City will determine. If less
than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in
Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine
by lot the amount of each participant's interest in such maturity to be redeemed and each
participant will then select by lot the beneficial ownership interests in such maturity to be
redeemed. Prepayments will be at a price of par plus accrued interest.
1.05. Term Bonds. To be completed if Term Bonds are requested by the Purchaser.
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The
interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by
check or draft issued by the Registrar described herein.
2.02. Dates: Interest Payment Dates. Each Bond will be dated as of the last interest
payment date preceding the date of authentication to which interest on the Bond has been paid
or made available for payment, unless (i) the date of authentication is an interest payment date
to which interest has been paid or made available for payment, in which case the Bond will be
dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest
payment date, in which case the Bond will be dated as of the date of original issue. The interest
on the Bonds is payable on February 1 and August 1 of each year, commencing February 1,
2004, to the registered owners of record thereof as of the close of business on the fifteenth day
of the immediately preceding month, whether or not that day is a business day.
2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating
agent and paying agent (Registrar). The effect of registration and the rights and duties of the
City and the Registrar with respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate trust office a
bond register in which the Registrar provides for the registration of ownership of Bonds
and the registration of transfers and exchanges of Bonds entitled to be registered,
transferred or exchanged.
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(b) Transfer of Bonds. Upon surrender for transfer of a 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 will
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 that
interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered owner
for exchange the Registrar will authenticate and deliver one or more new Bonds of a like
aggregate principal amount and maturity as requested by the registered owner or the
owner's attorney in writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be
promptly cancelled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is
satisfied that the endorsement on the Bond or separate instrument of transfer is valid and
genuine and that the requested transfer is legally authorized. The Registrar will incur no
liability for the 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 a Bond is registered in the bond register as the absolute owner of the
Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on
account of, the principal of and interest on the Bond and for all other purposes and
payments so made to registered owner or upon the owner's order will be valid and
effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or
sums so paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge upon the
owner thereof for a transfer or exchange of Bonds, sufficient to reimburse the Registrar
for any tax, fee or other governmental charge required to be paid with respect to the
transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated
or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount,
number, maturity date and tenor in exchange and substitution for and upon cancellation
of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost,
upon the payment of the reasonable expenses and charges of the Registrar in connection
therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the
Registrar of evidence satisfactory to it that the Bond was destroyed, stolen or lost, and of
the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or
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indemnity in form, substance and amount satisfactory to it and as provided by law, in
which both the City and the Registrar must be named as obligees. Bonds so surrendered
to the Registrar will be cancelled by the Registrar and evidence of such cancellation must
be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured
or been called for redemption in accordance with its terms it is not necessary to issue a.
new Bond prior to payment.
(i) Redemption. In the event any of the Bonds are called for redemption,
notice thereof identifying the Bonds to be redeemed will be given by the Registrar by
mailing a copy of the redemption notice by first class mail (postage prepaid) to the
registered owner of each Bond to be redeemed at the address shown on the registration
books kept by the Registrar and by publishing the notice if required by law. Failure to
give notice by publication or by mail to any registered owner, or any defect therein, will
not affect the validity of the proceedings for the redemption of Bonds. Bonds so called
for redemption will cease to bear interest after the specified redemption date, provided
that the funds for the redemption are on deposit with the place of payment at that time.
2.04. Appointment of Initial Registrar. The City appoints U.S. Bank National
Association, St. Paul, Minnesota, as the initial Registrar. The Mayor and the City Administrator
are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon
merger or consolidation of the Registrar with another corporation, if the resulting corporation is a
bank or trust company authorized by law to conduct such business, the resulting corporation is
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 the
Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event
the predecessor Registrar must deliver all cash and Bonds in its possession to the successor
Registrar and must deliver the bond register to the successor Registrar. On or before each
principal or interest due date, without further order of this Council, the City Finance Director
must transmit to the Registrar monies sufficient for the payment of all principal and interest then
due.
2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the
direction of the City Administrator and executed on behalf of the City by the signatures of the
Mayor and the City Administrator, provided that those signatures may be printed, engraved or
lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose
signature appears on the Bonds ceases to be such officer before the delivery of a Bond, that
signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the
officer had remained in office until delivery. Notwithstanding such execution, a Bond will not
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 the 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 a Bond is conclusive evidence that it has been authenticated and delivered
under this Resolution. When the Bonds have been so prepared, executed and authenticated, the
City Administrator will deliver the same to the Purchaser upon payment of the purchase price in
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accordance with the contract of sale heretofore made and executed, and the Purchaser is not
obligated to see to the application of the purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive
Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3
with such changes as may be necessary to reflect more than one maturity in a single temporary
bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be
exchanged therefor and cancelled.
Section 3. Form of Bond.
3.0l. The Bonds will be printed or typewritten in substantially the following form:
No.R- $
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF SCOTT
CITY OF SHAKOPEE
GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2003A
Date of
Rate Maturity Original Issue CUSIP
June 1,2003
Registered Owner: Cede & Co.
The City of Shakopee, Minnesota, a duly organized and existing municipal corporation in
Scott County, Minnesota (City), acknowledges itself to be indebted and for value received
hereby promises to pay to the Registered Owner specified above or registered assigns, the
principal sum of $ on the maturity date specified above, with interest thereon from
the date hereof at the annual rate specified above, payable February 1 and August 1 in each year,
commencing February 1, 2004, to the person in whose name this Bond is registered at the close
of business on the fifteenth day (whether or not a business day) of the immediately preceding
month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are
payable in lawful money of the United States of America by.check or draft by U.S. Bank
National Association, St. Paul, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and
Authenticating Agent, or its designated successor under the Resolution described herein. For the
prompt and full payment of such principal and interest as the same respectively become due, the
full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged.
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The City may elect on February 1, 2011, and on any day thereafter to prepay Bonds due
on or after February 1, 2012. Redemption may be in whole or in part and ifin part, at the option
of the City and in such manner as the City will determine. If less than all Bonds of a maturity are
called for redemption, the City will notify Depository Trust Company (DTC) of the particular
amount of such maturity to be prepaid. DTC will determine by lot the amount of each
participant's interest in such maturity to be redeemed and each participant will then select by lot
the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a
price of par plus accrued interest.
The City Council has designated the issue of Bonds of which this Bond forms a part as
"qualified tax exempt obligations" within the meaning of Section 265(b )(3) of the Internal
Revenue Code of 1986, as amended (the Code) relating to disallowance of interest expense for
financial institutions and within the $10 million limit allowed by the Code for the calendar year
of issue.
This Bond is one of an issue in the aggregate principal amount of $2,215,000 all of like
original issue date and tenor, except as to number, maturity date, redemption privilege, and
interest rate, all issued pursuant to a resolution adopted by the City Council on May 20, 2003
(the Resolution), for the purpose of providing money to defray the expenses incurred and to be
incurred in making local improvements, pursuant to and in full conformity with the Constitution
and laws of the State of Minnesota, including Minnesota Statutes, Chapter 429, and the principal
hereof and interest hereon are payable from special assessments against property specially
benefited by local improvements and from ad valorem taxes for the City's share of the cost of the
improvements, as set forth in the Resolution to which reference is made for a full statement of
rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged
for payment of this Bond and the City Council has obligated itself to levy additional ad valorem
taxes on all taxable property in the City in the event of any deficiency in special assessments and
taxes pledged, which additional taxes may be levied without limitation as to rate or amount. The
Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any
integral multiple thereof of single maturities.
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 the owner's attorney duly authorized in writing, upon
surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar,
duly executed by the registered owner or the owner's 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 will
be affected by any notice to the contrary.
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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 preliminary to and in the issuance of this Bond in
order to make it a valid and binding general obligation of the City in accordance with its terms,
have been done, do exist, have happened and have been performed as so required, and that the
issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or
statutory limitation of indebtedness.
This Bond is not valid or obligatory for any purpose or entitled to any security or benefit
under the Resolution until the Certificate of Authentication hereon has been executed by the
Bond Registrar by manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Shakopee, Scott County, Minnesota, by its City
Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures
of the Mayor and City Administrator and has caused this Bond to be dated as of the date set forth
below.
Dated:
CITY OF SHAKOPEE, MINNESOTA
(Facsimile ) (Facsimile )
City Administrator Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S. BANK NATIONAL ASSOCIATION
By
Authorized Representative
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The following abbreviations, when used in the inscription on the face of this Bond, will
be constructed as though they were written out in full according to applicable laws or
regulations:
TEN COM -- as tenants UNIF GIFT MIN ACT Custodian
III common (Cust) (Minor)
TEN ENT -- as tenants under Uniform Gifts or
by entireties Transfers to Minors
JT TEN -- as joint tenants with
right of survivorship and Act. . . . . . . . . . . .
not as tenants in common (State)
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, aSSIgns and transfers unto
the within Bond and all rights thereunder, and
does hereby irrevocably constitute and appoint attorney to
transfer the said Bond on the books kept for registration of the within Bond, with full power of
substitution in the premises.
Dated:
Notice: The assignor's signature to this assignment must correspond with the name
as it appears upon the face of the within Bond in every particular, without
alteration or any change whatever.
Signature Guaranteed:
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the
Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion
Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP")
or other such "signature guarantee program" as may be determined by the Registrar in addition
to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange
Act of 1934, as amended.
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The Bond Registrar will not effect transfer of this Bond unless the information
concerning the assignee requested below is provided.
Name and Address:
(Include information for all joint owners if this
Bond is held by joint account.)
Please insert social security or other
identifying number of assignee
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on
the books of the Registrar in the name ofthe person last noted below.
Signature of
Date of Registration Registered Owner Officer of Registrar
Cede & Co.
Federal ID #13-2555119
3.02. The City Administrator is directed to obtain a copy of the proposed approving
legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be
complete except as to dating thereof and to cause the opinion to be printed on or accompany each
Bond.
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Section 4. Payment; Security; Pledges and Covenants.
4.01. (a) The Bonds are payable from the Improvement Bonds, Series 2003A Debt
Service Fund (Debt Service Fund) hereby created, and the proceeds of general taxes hereinafter
levied (Taxes), and special assessments (Assessments) levied or to be levied for the
improvements described in the resolution authorizing the sale of the Bonds (Improvements)
financed by the Bonds are hereby pledged to the Debt Service Fund. If a payment of principal or
interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund
to pay the same, the City Finance Director is directed to pay such principal or interest from the
general fund of the City, and the general fund will be reimbursed for the advances out of the
proceeds of Assessments and Taxes when collected. There is appropriated to the Debt Service
Fund (i) capitalized interest financed from Bond proceeds, if any, (ii) any amount over the
minimum purchase price paid by the Purchaser, and (iii) the accrued interest paid by the
Purchaser upon closing and delivery of the Bonds.
(b) The proceeds of the Bonds, less the appropriations made in paragraph (a),
together with any other funds appropriated for the Improvements and Assessments and Taxes
collected during the construction of the Improvements will be deposited in a separate
construction fund (which may contain separate accounts for each Improvement) to be used solely
to defray expenses of the Improvements and the payment of principal and interest on the Bonds
prior to the completion and payment of all costs of the Improvement. Any balance remaining in
the construction fund after completion of the Improvements may be used to pay the cost in whole
or in part of any other improvement instituted under the Act. When the Improvements are
completed and the cost thereof paid, the construction account is to be closed and subsequent
collections of Assessments and Taxes for the Improvements are to be deposited in the Debt
Service Fund.
4.02. It is hereby determined that the Improvements will directly and indirectly benefit
abutting property, and the City hereby covenants with the holders from time to time of the Bonds
as follows:
(a) The City has caused or will cause the Assessments for the Improvements
to be promptly levied so that the first installment will be collectible not later than 2004
and will take all steps necessary to assure prompt collection, and the levy of the
Assessments is hereby authorized. The City Council will cause to be taken with due
diligence all further actions that are required for the construction of each Improvement
financed wholly or partly from the proceeds ofthe Bonds, and will take all further actions
necessary for the final and valid levy of the Assessments and the appropriation of any
other funds needed to pay the Bonds and interest thereon when due.
(b) In the event of any current or anticipated deficiency in Assessments and
Taxes, the City Council wi1llevy additional ad valorem taxes in the amount of the current
or anticipated deficiency.
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(c) The City will keep complete and accurate books and records showing:
receipts and disbursements in connection with the Improvements, Assessments and Taxes
levied therefor and other funds appropriated for their payment, collections thereof and
disbursements therefrom, monies on hand and, the balance of unpaid Assessments.
(d) The City will cause its books and records to be audited at least annually
and will furnish copies of such audit reports to any interested person upon request.
4.03. It is determined that at least 20% of the cost of the Improvements will be specially
assessed against benefited properties. For the purpose of paying the principal of and interest on
the Bonds, there is levied a direct annual irrepealable ad valorem tax (Taxes) upon all of the
taxable property in the City, which will be spread upon the tax rolls and collected with and as
part of other general taxes of the City. The taxes will be credited to the Debt Service Fund above
provided and will be in the years and amounts as follows (year stated being year of levy for
collection the following year):
Year Levy
(See Attachment A)
4.04. It is hereby determined that the estimated collections of Assessments and the
foregoing Taxes will produce at least five percent in excess of the amount needed to meet when
due the principal and interest payments on the Bonds. The tax ,levy herein provided is
irrepealable until all of the Bonds are paid, provided that at the time the City makes its annual tax
levies the City Administrator may certify to the County Auditor of Scott County the amount
available in the Debt Service Fund to pay principal and interest due during the ensuing year, and
the County Auditor will thereupon reduce the levy collectible during such year by the amount so
certified.
4.05. The City Administrator is authorized and directed to file a certified copy of this
resolution with the County Auditor of Scott County and to obtain the certificate required by
Minnesota Statutes, Section 475.63.
Section 5. Authentication of Transcript.
5.01. The officers of the City are authorized and directed to prepare and furnish to the
Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records
of the City relating to the Bonds and to the financial condition and affairs of the City, and such
other certificates, affidavits and transcripts as may be required to show the facts within their
knowledge or as shown by the books and records in their custody and under their control,
relating to the validity and marketability of the Bonds, and such instruments, including any
heretofore furnished, may be deemed representations ofthe City as to the facts stated therein.
5.02. The Mayor, City Administrator and Finance Director are authorized and directed
to certify that they have examined the Official Statement prepared and circulated in connection
with the issuance and sale of the Bonds and that to the best of their knowledge and belief the
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Official Statement is a complete and accurate representation of the facts and representations
made therein as of the date of the Official Statement.
Section 6. Tax Covenant.
6.01. 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 the Treasury Regulations promulgated
thereunder, in effect at the time of such actions, and that it will take or cause its officers,
employees or agents to take, all affirmative action within its power that may be necessary to
ensure that such interest will not become subject to taxation under the Code and applicable
Treasury Regulations, as presently existing or as hereafter amended and made applicable to the
Bonds.
6.02. (a) The City will comply with requirements necessary under the Code to establish
and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of
the Code, including without limitation requirements relating to temporary periods for
investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and
the rebate of excess investment earnings to the United States if the Bonds (together with other
obligations reasonably expected to be issued in calendar year 2003) exceed the small-issuer
exception amount of $5,000,000.
(b) For purposes of qualifying for the small-issuer exception to the federal arbitrage
rebate requirements, the City finds, determines and declares that the aggregate face amount of all
tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate
entities of the City) during the calendar year in which the Bonds are issued is not reasonably
expected to exceed $5,000,000, within the meaning of Section 148(f)(4)(C) of the Code.
6.03. The City further covenants not to use the proceeds of the Bonds or to cause or
permit them or any of them to be used, in such a manner as to cause the Bonds to be "private
activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code.
6.04. In order to qualify the Bonds as "qualified tax-exempt obligations" within the
meaning of Section 265(b )(3) of the Code, the City makes the following factual statements and
representations:
(a) the Bonds are not "private activity bonds" as defined in Section 141 of the
Code;
(b) the City hereby designates the Bonds as "qualified tax -exempt
obligations" for purposes of Section 265(b )(3) ofthe Code;
(c) the reasonably anticipated amount of tax-exempt obligations (other than
any private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by
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the City (and all subordinate entities of the City) during calendar year 2003 will not
exceed $10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City during
calendar year 2003 have been designated for purposes of Section 265(b )(3) of the Code.
6.05. The City will use its best efforts to comply with any federal procedural
requirements which may apply in order to effectuate the designations made by this section.
Section 7. Book-Entry System: Limited Obligation of City.
7.0l. The Bonds will be initially issued in the form of a separate single typewritten or
printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon
initial issuance, the ownership of each Bond will be registered in the registration books kept by
the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company,
New York, New York, and its successors and assigns (DTC). Except as provided in this section,
all of the outstanding Bonds will be registered in the registration books kept by the Bond
Registrar in the name of Cede & Co., as nominee ofDTC.
7.02. With respect to Bonds registered in the registration books kept by the Bond
Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the
Paying Agent will have no responsibility or obligation to any broker dealers, banks and other
financial institutions from time to time for which DTC holds Bonds as securities depository
(Participants) or to any other person on behalf of which a Participant holds an interest in the
Bonds, including but not limited to any responsibility or obligation with respect to (i) the
accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership
interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a
registered owner of Bonds, as shown by the registration books kept by the Bond Registrar,) of
any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to
any Participant or any other person, other than a registered owner of Bonds, of any amount with
respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar
and the Paying Agent may treat and consider the person in whose name each Bond is registered
in the registration books kept by the Bond Registrar as the holder and absolute owner of such
Bond for the purpose of payment of principal, premium and interest with respect to such Bond,
for the purpose of registering transfers with respect to such Bonds, and for all other purposes.
The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or
on the order of the respective registered owners, as shown in the registration books kept by the
Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge
the City's obligations with respect to payment of principal of, premium, if any, or interest on the
Bonds to the extent of the sum or sums so paid. No person other than a registered owner of
Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated
Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City
Administrator of a written notice to the effect that DTC has determined to substitute a new
nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of
DTC; and upon receipt of such a notice, the City Administrator will promptly deliver a copy of
the same to the Bond Registrar and Paying Agent.
SJB-231581vl
SH155-133
7.03. Representation Letter. The City has heretofore executed and delivered to DTC a
Blanket Issuer Letter of Representations (Representation Letter) which shall govern payment of
principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds.
Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the
Bonds will agree to take all action necessary for all representations of the City in the
Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be
complied with at all times.
7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the
City Council, determines that it is in the best interests of the persons having beneficial interests
in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon
DTC will notify the Participants, of the availability through DTC of Bond certificates. In such
event the City will issue, transfer and exchange Bond certificates as requested by DTC and any
other registered owners in accordance with the provisions of this Resolution. DTC may
determine to discontinue providing its services with respect to the Bonds at any time by giving
notice to the City and discharging its responsibilities with respect thereto under applicable law.
In such event, if no successor securities depository is appointed, the City will issue and the Bond
Registrar will authenticate Bond certificates in accordance with this resolution and the provisions
hereof will apply to the transfer, exchange and method of payment thereof.
7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution
to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee ofDTC,
payments with respect to principal of, premium, if any, and interest on the Bond and notices with
respect to the Bond will be made and given, respectively in the manner provided in DTC's
Operational Arrangements, as set forth in the Representation Letter.
Section 8. Continuing Disclosure.
8.01. The City hereby covenants and agrees that it will comply with and carry out all of
the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of
this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to
be considered an event of default with respect to the Bonds; however, any Bondholder may take
such actions as may be necessary and appropriate, including seeking mandate or specific
performance by court order, to cause the City to comply with its obligations under this section.
8.02. "Continuing Disclosure Certificate" means that certain Continuing Disclosure
Certificate executed by the Mayor and City Administrator and dated the date of issuance and
delivery of the Bonds, as originally executed and as it may be amended from time to time in
accordance with the terms thereof.
SJB-231581vl
SHl55-133
Adopted in adjourned regular session of the City Council of the City of Shakopee,
Minnesota, held this 20th day of May, 2003.
Mayor
ATTEST:
City Clerk
SJB-23 1581 vI
SHl55-133
The motion for the adoption of the foregoing resolution was duly seconded by Member
, 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.
SJB-231581vl
SHl55-133
STATE OF MINNESOTA )
)
COUNTY OF SCOTT ) SS.
)
CITY OF SHAKOPEE )
I, the undersigned, being the duly qualified and acting City Clerk of the City of
Shakopee, Scott County, Minnesota, do hereby certify that I have carefully compared the
attached and foregoing extract of minutes of a regular meeting of the City Council of the City
held on May 20, 2003 with the original minutes on file in my office and the extract is a full, true
and correct copy of the minutes insofar as they relate to the issuance and sale of $2,215,000
General Obligation Improvement Bonds, Series 2003A of the City.
WITNESS My hand officially as such City Clerk and the corporate seal of the City this
day of ,2003.
City Clerk
Shakopee, Minnesota
(SEAL)
SJB-231581vl
SHl55-133
STATE OF MINNESOTA COUNTY AUDITOR'S
CERTIFICATE AS TO
COUNTY OF SCOTT TAX LEVY AND
REGISTRATION
I, the undersigned County Auditor of Scott County, Minnesota, hereby certify that a
certified copy of a resolution adopted by the governing body of the City of Shakopee, Minnesota,
on May 20,2003, levying taxes for the payment of $2,215,000 General Obligation Improvement
Bonds, Series 2003A, of said municipality dated June 1, 2003, has been filed in my office and
said bonds have been entered on the register of obligations in my office and that such tax has
been levied as required by law.
WITNESS My hand and official seal this _ day of ,2003.
County Auditor
Scott County, Minnesota
(SEAL)
By
Deputy
SJB-231581vl
SH155-133
~
4 85 E. SEVENTH PLACE,SUITE 100
SAINT PAUL, MN 551-01-2887
651.223.3000 FAX: 651.223.3002
E-MAIL: advisorS@springsted.com
// SPRINGSTED
~ A..""" ,,,', P,b!;d,,,,,,
$2,215,000
CITY OF SHAKOPEE, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2003A
(BOOK ENTRY ONLY)
AWARD: NORTHLAND SECURITIES
SALE: May 20, 2003 Moody's Rating: A1
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
NORTHLAND SECURITIES 2.00% 2005-2008 $2,215,567.00 $288,953.00 2.5652%
2.30% 2009
2.60% 2010
2.80% 2011
3.00% 2012-2014
MORGAN STANLEY- 2.00% 2005-2007 $2,219,440.60 $294,817.73 2.6134%
MORGAN STANLEY OW INC. 2.25% 2008
CITIGROUP GLOBAL MARKETS, INC. 2.50% 2009
uas PAINEWEBBER INCORPORATED 2.75% 2010
CRONIN & COMPANY, INCORPORATED 3.00% 2011-2013
CIBC WORLD MARKETS 3.125% 2014
CITIZENS BANK
U.S. BANCORP PIPER JAFFRAY INC. 2.00% 2005-2007 $2,217,192.85 $296,212.15 2.6264%
WELLS FARGO BROKERAGE 2.10% 2008
SERVICES, LLC 2.40% 2009
2.70% 2010
2.90% 2011
3.00% 2012
3.10% 2013
3.20% 2014
{Continued)
CORPORATE OFFICE: SAINT PAUL, MN . Visit our website at www.springsted.com
DES MOINES, IA . MILWAUKEE. WI . MINNEAPOLIS, MN . OVERLAND PARK, KS . VIRGINIA BEACH, VA . WASHINGTON, DC
~
Interest Net Interest True Interest ~
Bidder Rates Price Cost Rate
COMMERCE BANK. N.A. 1.25% 2005 $2,200,934.75 $301,681.08 2.6825%
1.50% 2006
1.90% 2007
2.20% 2008
2.40% 2009
2.70% 2010
2.90% 2011
3.00% 2012
3.10% 2013
3.25% 2014
UMB BANK, N.A. 1.25% 2005 $2,198,055.25 $303,442.25 2.7006%
1.50% 2006
1 .80% 2007
2.10% 2008
2.40% 2009
2.70% 2010
3.00% 2011-2012
3.10% 2013
3.20% 2014
HARRIS TRUST & SAVINGS BANK 1.25% 2005 $2,213,513.40 $304,847.43 2.7038%
FTN FINANCIAL CAPITAL MARKETS 2.00% 2006
ISAAK BOND INVESTMENTS, INC. 2.20% 2007
The Bankers Bank 2.40% 2008
Kirlin Securities, Inc. 2.75% 2009
Axelrod Associates, Inc. 3.00% 2010-2011
3.05% 2012
3.10% 2013
3.20% 2014
LEGG MASON WOOD WALKER, INC. 2.00% 2005-2006 $2,216,378.35 $309,269.98 2.7454%
2.50% 2007 -2008
2.75% 2009
2.875% 2010
3.00% 2011-2012
3.10% 2013
3.20% 2014
WACHOVIA BANK, NATIONAL 2.00% 2005-2007 $2,214,827.31 $312,755.19 . 2.7750%
ASSOCIATION 2.50% 2008-2009
3.00% 2010
3.125% 2011
3.20% 2012-2014
RBC DAIN RAUSCHER INC. 1.50% 2005 $2,199,043.60 $322,675.98 2.8742%
2.00% 2006
2.125% 2007
2.25% 2008
2.625% 2009
2.75% 2010
3.00% 2011
3.10% 2012
3.25% 2013
3.375% 2014 (Continued)
I
.(
.
, -----------------------------------------------------------------------------------------------------------...-----------------------------...-----------------------
REOFFERING SCHEDULE OF THE PURCHASER
Rate Year Yield
2.00% 2005 1.15%
2.00% 2006 1.35%
2.00% 2007 1.75%
2.00% 2008 Par
2.30% 2009 Par
2.60% 2010 Par
2.80% 2011 Par
3.00% 2012 Par
3.00% 2013 3.10%
3.00% 2014 3.20%
881: 4.35%
, .
Average Maturity: 5.065 Years
OFFICIAL STATEMENT DATED MAY 8, 2003
Rating: Requested from Moody's
NEW ISSUE Investors Service
In the opinion of Kennedy & Graven, Chartered, Bond Counsel, under existing laws, regulations, rulings and decisions, assuming compliance
with the covenants set forth in the Resolution awarding the sale of the Bonds, the interest on the Bonds is not includable in the gross income of
the owners thereof for federal income tax purposes or in taxable net income of individuals, estates or trusts for Minnesota income tax purposes,
and is not a preference item for purposes of the computation of the federal alternative minimum tax or the computation of Minnesota alternative
minimum tax imposed on individuals, trusts and estates. Interest on the Bonds is includable in the calculation of certain federal and Minnesota
taxes imposed on corporations. (See "Tax Exemption" herein.)
:;.,
$2,215,000
City of Shakopee, Minnesota
General Obligation Improvement Bonds, Series 2003A
(Book Entry Only)
Dated Date: June 1, 2003 Interest Due: Each February 1 and August 1,
commencing February 1, 2004
The Bonds will mature February 1 as follows:
2005 $495,000 2007 $185,000 2009 $130,000 2011 $170,000 2013 $165,000
2006 $425,000 2008 $185,000 2010 $130,000 2012 $165,000 2014 $165,000
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial bonds and term
bonds. All term bonds shall be subject to mandatory sinking fund redemption and must conform to the maturity
schedule set forth above at a price of par plus accrued interest to the date of redemption.
The City may elect on February 1, 2011, and on any day thereafter, to prepay Bonds due on or after
February 1, 2012 at a price of par plus accrued interest.
The Bonds will be 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 against benefited properties.
Proceeds of the Bonds will be used to finance various improvement projects within the City.
Proposals must be for not less than $2,190,635 and accrued interest on the total principal amount of the Bonds and
shall be accompanied by a certified or cashier's check or a Financial Surety Bond in the amount of $22,150, payable
to the order of the City. Proposals shall specify rates in integral multiples of 5/100 or 1/8 of 1%. Rates must be in
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. Investors will not receive physical certificates representing their interest in the Bonds purchased.
(See "Book Entry System" herein.) The City has named U.S. Bank National Association, St. Paul, Minnesota as
registrar (the "Registrar") for the Bonds and will pay for registration services. Bonds will be available for delivery on
or about June 19, 2003.
PROPOSALS RECEIVED: May 20,2003 (Tuesday) until 12:00 Noon, Central Time
AWARD: May 20, 2003 (Tuesday) at 7:00 P.M., Central Time
~ SPRINGS TED Further information may be obtained from
SPRINGSTED Incorporated, Financial Advisor to the
Advisors to the Public Sector Issuer, 85 East Seventh Place, Suite 100, Saint Paul,
Minnesota 55101-2887 (651) 223-3000
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 Issuer from time to time
(collectively, the "Official Statement"), may be treated as an Official Statement with respect to
the Obligations described herein that is deemed final as of the date hereof (or of any such
supplement or correction) by the Issuer, 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 Obligations, together with any other
information required by law, shall constitute a "Final Official Statement" of the Issuer with
respect to the Obligations, 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 Obligations to any underwriter or underwriting syndicate submitting a Proposal
therefor, the Issuer 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 Obligations 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 Issuer designates the senior managing underwriter of the syndicate to which the
Obligations 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 Obligations agrees thereby that if its bid is accepted by the Issuer (i) it shall accept such
designation and (ii) it shall enter into a contractual relationship with all Participating
Underwriters of the Obligations 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 Issuer to give any
information or to make any representations with respect to the Obligations, 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
Issuer. Certain information contained in the Official Statement and the Final Official Statement
may have been obtained from sources other than records of the Issuer 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 ISSUER 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 Issuer have not been included as appendices to the
Official Statement or the Final Official Statement, they will be furnished on request.
TABLE OF CONTENTS
Paqe( s)
Terms of Proposal... ............................ ......... ............ ....... ...... ....... .............. ....................... i-iv
I ntrod uctory Statement ....................................................................................................... 1
Continuing Disclosure......................................................................................................... 1
The Bonds........................................................................................................................__ 2
Authority and Purpose ........ .................. .......... ........................ .................. ........... .... ........... 4
Security and Financing... ..... ........ ..... .... .................. ....... ...... ...... ..... ........... ... ....... ....... ........ 4
Future Financing. ... ....... .................... ... .... .... .... ....... .............. .... ..... .... ....... ....... ..... ...... ... ..... 5
Litigation.................................................................................................................... ......... 5
Legality......................................................................................................................... ...... 5
Tax Exemption.................................................................................................................... 5
Pending Legislation .............. .............. ....... ..... .......... ... ............ .......... ... ................ .... .......... 6
Bank-Qualified Tax-Exempt Obligations ............. .... .... ......... ... ............ ........... ........... .......... 7
Rating........................................................................................................................ ......... 7
Financial Advisor................................................................................................................ 7
Certification................................................................................................................... ...... 7
City Property Values .. .., ....... ....... ... ...... ... ............ .... ....... .... ... .... ..... ........... ........ ...... .... .... .... 8
City Indebted ness ............................................................................................................... 9
City Tax Rates, Levies and Collections............................................................................... 12
Funds on Hand ............ ........ ............. ........... ...... ........... ..... ... ......... .... ..... ...... ........ ..... ......... 13
City Investments................................................................................................................. 13
General Information Concerning the City....... ......... .............. .... ............... ........... ......... ....... 14
Governmental Organization and Services.............. ... ..... ..... ...... ......... ... ........ ........... ........... 16
Proposed Form of Legal Opinion ......... .......... ............ .......... ........................... .... .... Appendix I
Continuing Disclosure Certificate ............................................................................ Appendix II
Summary of Tax Levies, Payment Provisions, and
Minnesota Real Property Valuation ...................................................................... Appendix III
Selected Annual Financial Statements .................................................................... Appendix IV
Proposal Forms ...................................................................................................... Inserted
THE CITY HAS AUTHORIZED SPRINGSTED INCORPORATED TO NEGOTIATE THIS ISSUE
ON ITS BEHALF. PROPOSALS WILL BE RECEIVED ON THE FOLLOWING BASIS:
TERMS OF PROPOSAL
$2,215,000
CITY OF SHAKOPEE, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2003A
(BOOK ENTRY ONL Y)
Proposals for the Bonds will be received on Tuesday, May 20, 2003, until 12:00 Noon, Central
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 P.M., Central Time, of the same day.
SUBMISSION OF PROPOSALS
Springsted will assume no liability for the inability of the bidder to reach Springsted prior to the
time of sale specified above. All bidders are advised that each Proposal shall be deemed to
constitute a contract between the bidder and the City to purchase the Bonds regardless of the
manner in which the Proposal is submitted.
(a) Sealed Biddinf/. Proposals may be submitted in a sealed envelope or by fax
(651) 223-3046 to Springsted. Signed Proposals, without final price or coupons, may be
submitted to Springsted prior to the time of sale. The bidder shall be responsible for submitting
to Springsted the final Proposal price and coupons, by telephone (651) 223-3000 or fax
(651) 223-3046 for inclusion in the submitted Proposal.
OR
(b) Electronic Biddinf/. Notice is hereby given that electronic proposals will be received via
PARITVV. For purposes of the electronic bidding process, the time as maintained by PARITY@>
shall constitute the official time with respect to all Bids submitted to PARITY@>. Each bidder
shall be solely responsible for making necessary arrangements to access PARITyrs; for
purposes of submitting its electronic Bid in a timely manner and in compliance with the
requirements of the Terms of Proposal. Neither the City, its agents nor PARITY@> shall have
any duty or obligation to undertake registration to bid for any prospective bidder or to provide or
ensure electronic access to any qualified prospective bidder, and neither the City, its agents nor
PARITY@> shall be responsible for a bidder's failure to register to bid or for any failure in the
proper operation of, or have any liability for any delays or interruptions of or any damages
caused by the services of PARIty@>. The City is using the services of PARITY@> SOI~ as a
communication mechanism to conduct the electronic bidding for the Bonds, and PAR IT R is not
an agent of the City.
If any provisions of this Terms of Proposal. conflict with information provided by PARITY@>, this
Terms of Proposal. shall control. Further information about PARITY@>, including any fee
charged, may be obtained from:
PARITY@>, 40 West 23rd Street, 5th Floor, New York City, New York 10010, Customer
Support, (212) 404-8102.
- i -
DETAILS OF THE BONDS
The Bonds will be dated June 1, 2003, as the date of original issue, and will bear interest
payable on February 1 and August 1 of each year, commencing February 1, 2004. Interest will
be computed on the basis of a 360-day year of twelve 30-day months.
The Bonds will mature February 1 in the years and amounts as follows:
2005 $495,000 2009 $130,000 2012 $165,000
2006 $425,000 2010 $130,000 2013 $165,000
2007 $185,000 2011 $170,000 2014 $165,000
2008 $185,000
Proposals for the Bonds may contain a maturity schedule providing for a combination of serial
bonds and term bonds. All term bonds shall be subject to mandatory sinking fund redemption
and must conform to the maturity schedule set forth above at a price of par plus accrued
interest to the date of redemption. In order to designate term bonds, the proposal must specify
"Years of Term Maturities" in the spaces provided on the Proposal Form.
BOOK ENTRY SYSTEM
The Bonds will be issued by means of a book entry system with no physical distribution of
Bonds made to the public. The Bonds will be issued in fully registered form and one Bond,
representing the aggregate principal amount of the Bonds maturing in each year, will be
registered in the name of Cede & Co. as nominee of The Depository Trust Company ("DTC"),
New York, New York, which will act as securities depository of the Bonds. Individual purchases
of the Bonds may be made in the principal amount of $5,000 or any multiple thereof of a single
maturity through book entries made on the books and records of DTC and its participants.
Principal and interest are payable by the registrar to DTC or its nominee as registered owner of
the Bonds. Transfer of principal and interest payments to participants of DTC will be the
responsibility of DTC; transfer of principal and interest payments to beneficial owners by
participants will be the responsibility of such participants and other nominees of beneficial
owners. The purchaser, as a condition of delivery of the Bonds, will be required to deposit the
Bonds with DTC.
REGISTRAR
The City will name the registrar that shall be subject to applicable SEC regulations. The City
will pay for the services of the registrar.
OPTIONAL REDEMPTION
The City may elect on February 1, 2011, and on any day thereafter, to prepay Bonds due on or
after February 1, 2012. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be
prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to
be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest.
SECURITY AND PURPOSE
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition the City will pledge special
assessments against benefited property. The proceeds will be used to finance various
improvement projects within the City.
- ii -
~.... . ..
TYPE OF PROPOSALS
Proposals shall be for not less than $2,190,635 and accrued interest on the total principal
amount of the Bonds. Proposals shall be accompanied by a Good Faith Deposit ("Deposit") in
the form of a certified or cashier's check or a Financial Surety Bond in the amount of $22,150,
payable to the order of the City. If a check is used, it must accompany the proposal. If a
Financial Surety Bond is used, it must be from an insurance company licensed to issue such a
bond in the State of Minnesota, and preapproved by the City. Such bond must be submitted to
Springsted Incorporated prior to the opening of the proposals. The Financial Surety Bond must
identify each underwriter whose Deposit is guaranteed by such Financial Surety Bond. If the
Bonds are awarded to an underwriter using a Financial Surety Bond, then that purchaser is
required to submit its Deposit to Springsted Incorporated in the form of a certified or cashier's
check or wire transfer as instructed by Springsted Incorporated not later than 3:30 P.M., Central
Time, on the next business day following the award. If such Deposit is not received by that
time, the Financial Surety Bond may be drawn by the City to satisfy the Deposit requirement.
The Deposit received from the purchaser, the amount of which will be deducted at settlement
and no interest will accrue to the purchaser, will be deposited by the City. In the event the
purchaser fails to comply with the accepted proposal, said amount will be retained by the City.
No proposal can be withdrawn or amended after the time set for receiving proposals unless the
meeting of the City scheduled for award of the Bonds is adjourned, recessed, or continued to
another date without award of the Bonds having been made. Rates shall be in integral
multiples of 5/100 or 1/8 of 1%. Rates must be in level or ascending order. Bonds of the same
maturity shall bear a single rate from the date of the Bonds to the date of maturity. No
conditional proposals will be accepted.
AWARD
The Bonds will be awarded on the basis of the lowest interest rate to be determined on a true
interest cost (TIC) basis. The City's computation of the interest rate of each proposal, in
accordance with customary practice, will be controlling.
The City will reserve the right to: (i) waive non-substantive informalities of any proposal or of
matters relating to the receipt of proposals and award of the Bonds, (ii) reject all proposals
without cause, and, (iii) reject any proposal that the City determines to have failed to comply
with the terms herein.
BOND INSURANCE AT PURCHASER'S OPTION
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment
therefor at the option of the underwriter, the purchase of any such insurance policy or the
issuance of any such commitment shall be at the sole option and expense of the purchaser of
the Bonds. Any increased costs of issuance of the Bonds resulting from such purchase of
insurance shall be paid by the purchaser, except that, if the City has requested and received a
rating on the Bonds from a rating agency, the City will pay that rating fee. Any other rating
agency fees shall be the responsibility of the purchaser.
Failure of the municipal bond insurer to issue the policy after Bonds have been awarded to the
purchaser shall not constitute cause for failure or refusal by the purchaser to accept delivery on
the Bonds.
CUSIP NUMBERS
If the Bonds qualify for assignment of CUSIP numbers such numbers will be printed on the
Bonds, but neither the failure to print such numbers on any Bond nor any error with respect
thereto will constitute cause for failure or refusal by the purchaser to accept delivery of the
Bonds. The CUSIP Service Bureau charge for the assignment of CUSIP identification numbers
shall be paid by the purchaser.
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SETTLEMENT
Within 40 days following the date of their award, the Bonds will be delivered without cost to the
purchaser through DTC in New York, New York. Delivery will be subject to receipt by the
purchaser of an approving legal opinion of Kennedy & Graven, Chartered of Minneapolis,
Minnesota, and of customary closing papers, including a no-litigation certificate. On the date of
settlement, payment for the Bonds shall be made in federal, or equivalent, funds that shall be
received at the offices of the City or its designee not later than 12:00 Noon, Central Time.
Unless compliance with the terms of payment for the Bonds has been made impossible by
action of the City, or its agents, the purchaser shall be liable to the City for any loss suffered by
the City by reason of the purchaser's non-compliance with said terms for payment.
CONTINUING DISCLOSURE
In accordance with SEC Rule 15c2-12(b )(5), the City will undertake, pursuant to the resolution
awarding sale of the Bonds, to provide annual reports and notices of certain events. A
description of this undertaking is set forth in the Official Statement. The purchaser's obligation
to purchase the Bonds will be conditioned upon receiving evidence of this undertaking at or
prior to delivery of the Bonds.
OFFICIAL STATEMENT
The City has authorized the preparation of an Official Statement containing pertinent
information relative to the Bonds, and said Official Statement will serve as a nearly final Official
Statement within the meaning of Rule 15c2-12 of the Securities and Exchange Commission.
For copies of the Official Statement or for any additional information prior to sale, any
prospective purchaser is referred to the Financial Advisor to the City, Springsted Incorporated,
85 East Seventh Place, Suite 100, Saint Paul, Minnesota 55101, telephone (651) 223-3000.
The Official Statement, when further supplemented by an addendum or addenda specifying the
maturity dates, principal amounts and interest rates of the Bonds, together with any other
information required by law, shall constitute a "Final Official Statement" of the City with respect
to the Bonds, as that term is defined in Rule 15c2-12. By awarding the Bonds to any
underwriter or underwriting syndicate submitting a proposal therefor, the City agrees that, no
more than seven business days after the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to which the Bonds are awarded 90 copies of the
Official Statement and the addendum or addenda described above. The City designates the
senior managing underwriter of the syndicate to which the Bonds are awarded as its agent for
purposes of distributing copies of the Final Official Statement to each Participating Underwriter.
Any underwriter delivering a proposal with respect to the Bonds agrees thereby that if its
proposal is accepted by the City (i) it shall accept such designation and (ii) it shall enter into a
contractual relationship with all Participating Underwriters of the Bonds for purposes of assuring
the receipt by each such Participating Underwriter of the Final Official Statement.
Dated April 15, 2003 BY ORDER OF THE CITY COUNCIL
/s/ Judith Cox
City Clerk
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OFFICIAL STATEMENT
$2,215,000
CITY OF SHAKOPEE, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2003A
(BOOK ENTRY ONL Y)
INTRODUCTORY STATEMENT
This Official Statement contains certain information relating to the City of Shakopee, Minnesota
(the "City" or the "Issuer") and its issuance of $2,215,000 General Obligation Improvement
Bonds, Series 2003A (the "Bonds," the "Obligations" or the "Issue"). The Bonds are general
obligations of the City for which the City pledges its full faith and credit and power to levy
general ad valorem taxes. In addition, the City will pledge special assessments from benefited
properties.
Inquiries may be made to Mr. Gregg Voxland, Finance Director, City of Shakopee, 129 South
Holmes Street, Shakopee, Minnesota 55379, by telephoning (952) 496-9666, or via e-mail at
gvoxland@ci.shakopee.mn.us. Inquiries may also be made to Springsted Incorporated,
85 East Seventh Place, Suite 100, St. Paul, Minnesota 55101-2887, or by telephoning
(651) 223-3000. If information of a specific legal nature is desired, requests may be directed to
Kennedy & Graven, Chartered, Bond Counsel, 470 Pillsbury Center, Minneapolis,
Minnesota 55402, or by telephoning (612) 337-9300.
CONTINUING DISCLOSURE
In order to assist the Underwriters in complying with SEC Rule 15c2-12 promulgated by the
Securities and Exchange Commission, pursuant to the Securities Exchange Act of 1934, as the
same may be amended from time to time, and official interpretations thereof (the "Rule"),
pursuant to the Award Resolution, the City has entered into an undertaking (the "Undertaking")
for the benefit of holders including beneficial owners of the Bonds to provide certain financial
information and operating data relating to the City to certain information repositories annually,
and to provide notices of the occurrence of certain events enumerated in the Rule to certain
information repositories or the Municipal Securities Rulemaking Board and to any state
information depository. The specific nature of the Undertaking, as well as the information to be
contained in the annual report or the notices of material events is set forth in the Continuing
Disclosure Certificate to be executed and delivered by the City at the time the Bonds are
delivered in substantially the form attached hereto as Appendix II. The City has never failed to
comply in all material respects with any previous undertakings under the Rule to provide annual
reports or notices of material events. A failure by the City to comply with the Undertaking will
not constitute an event of default on the Bonds (although holders will have any available
remedy at law or in equity). Nevertheless, such a failure must be reported in accordance with
the Rule and must be considered by any broker, dealer or municipal securities dealer before
recommending the purchase or sale of the Bonds in the secondary market. Conseq uently,
such a failure may adversely affect the transferability and liquidity of the Bonds and their market
price.
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THE BONDS
General Description
The Bonds are dated June 1, 2003 and will mature annually each February 1, as set forth on
the cover page of this Official Statement. The Bonds are being issued in book entry form.
Interest on the Bonds is payable February 1, 2004 and semi-annually thereafter on August 1
and February 1. Interest will be payable to the holder (initially Cede & Co.) registered on the
books of the Registrar as of the fifteenth day of the calendar month next preceding such
interest payment date. Principal of and interest on the Bonds will be paid as described in the
section "Book Entry System" herein. U.S. Bank National Association, St. Paul, Minnesota, will
serve as Registrar for the Bonds and the City will pay for registration services.
Optional Redemption
The City may elect on February 1, 2011, and on any day thereafter, to prepay Bonds due on or
after February 1,2012. Redemption may be in whole or in part and if in part at the option of the
City and in such manner as the City shall determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC of the particular amount of such maturity to be
prepaid. DTC will determine by lot the amount of each participant's interest in such maturity to
be redeemed and each participant will then select by lot the beneficial ownership interests in
such maturity to be redeemed. All prepayments shall be at a price of par plus accrued interest.
Book Entry System
The Depository Trust Company ("DTC"), New York, New York, will act as securities depository
for the Obligations. The Obligations will be issued as fully-registered securities registered in the
name of Cede & Co. (DTC's partnership nominee) or such other name as may be requested by
an authorized representative of DTC. One fully-registered certificate will be issued for each
maturity of the Obligations, in the aggregate principal amount of such maturity, and will be
deposited with DTC.
DTC is a limited-purpose trust company organized under the New York Banking Law, a
"banking organization" within the meaning of the New York Banking Law, a member of the
Federal Reserve System, a "clearing corporation" within the meaning of the New York Uniform
Commercial Code, and a "clearing agency" registered pursuant to the provisions of Section 17 A
of the Securities Exchange Act of 1934. DTC holds securities that its participants ("Direct
Participants") deposit with DTC. DTC also facilitates the settlement among Direct Participants
of securities transactions, such as transfers and pledges, in deposited securities through
electronic computerized book-entry changes in Direct Participants' accounts, thereby
eliminating the need for physical movement of securities certificates. Direct Participants
("Direct Participants") include securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is owned by a number of its Direct
Participants and by the New York Stock Exchange, Inc.; the American Stock Exchange LLC;
and the National Association of Securities Dealers, Inc. Access to the DTC system is also
available to others such as securities brokers and dealers, banks, and trust companies that
clear through or maintain a custodial relationship with a Direct Participant, either directly or
indirectly ("Indirect Participants"). The Rules applicable to DTC and its Direct and Indirect
Participants are on file with the Securities and Exchange Commission.
Purchases of Obligations under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Obligations on DTC's records. The ownership
interest of each actual purchaser of each Obligation ("Beneficial Owner") is in turn to be
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recorded on the Direct and Indirect Participants' records. Beneficial Owners will not receive
written confirmation from DTC of their purchase, but Beneficial Owners are expected to receive
written confirmations providing details of the transaction, as well as periodic statements of their
holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into
the transaction. Transfers of ownership interests in the Obligations are to be accomplished by
entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial
Owners. Beneficial Owners will not receive certificates representing their ownership interests in
the Obligations, except in the event that use of the book-entry system for the Obligations is
discontinued.
To facilitate subsequent transfers, all Obligations deposited by Direct Participants with DTC are
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
their registration in the name of Cede & Co. or such other DTC nominee do not effect any
change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the
Obligations; DTC's records reflect only the identity of the Direct Participants to whose accounts
such Obligations are credited, which mayor may not be the Beneficial Owners. The Direct and
Indirect Participants will remain responsible for keeping account of their holdings on behalf of
their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time. Beneficial Owners of the
Obligations may wish to take certain steps to augment transmission to them of notices of
significant events with respect to the Obligations, such as redemptions, defaults, and proposed
amendments to the security documents. Beneficial Owners of the Obligations may wish to
ascertain that the nominee holding the Obligations for their benefit has agreed to obtain and
transmit notices to Beneficial Owners, or in the alternative, Beneficial Owners may wish to
provide their names and addresses to the Registrar and request that copies of the notices be
provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Obligations within a maturity
are being redeemed, DTC's practice is to determine by lot the amount of the interest of each
Direct Participant in such maturity to be redeemed.
Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect to
the Obligations. Under its usual procedures, DTC mails an Omnibus Proxy to the Registrar as
soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting
or voting rights to those Direct Participants to whose accounts the Obligations are credited on
the record date (identified in a listing attached to the Omnibus Proxy).
Principal and interest payments on the Obligations will be made to Cede & Co. or such other
nominee as may be requested by an authorized representative of DTC. DTC's practice is to
credit Direct Participants' accounts on the payable date in accordance with their respective
holdings shown on DTC's records, unless DTC has reason to believe that it will not receive
payment on the payable date. Payments by Participants to Beneficial Owners will be governed
by standing instructions and customary practices, as is the case with securities held for the
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
such payments to Direct Participants is the responsibility of DTC, and disbursement of such
payments to the Beneficial Owners is the responsibility of Direct and Indirect Participants.
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A Beneficial Owner shall give notice to elect to have its Obligations purchased or redeemed,
through its Direct Participant, to the nominee holding the Obligations, and shall effect delivery of
such Obligations by causing the Direct Participant to transfer the Direct Participant's interest in
the Obligations, on DTC's records, to the nominee holding the Obligations. The requirement for
physical delivery of the Obligations in connection with a purchase or redemption will be deemed
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
the nominee holding the Obligations.
DTC may discontinue providing its services as securities depository with respect to the
Obligations at any time by giving reasonable notice to the Registrar. Under such
circumstances, in the event that a successor securities depository is not obtained, certificates
are required to be printed and delivered.
The Issuer may decide to discontinue use of the system of book-entry transfers through DTC
(or a successor securities depository). In that event, certificates will be printed and delivered.
The information in this section concerning DTC and DTC's book-entry system has been
obtained from sources that the Issuer believes to be reliable, but the Issuer takes no
responsibility for the accuracy thereof.
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to Minnesota Statutes, Chapters 429 and 475. Proceeds
of the Bonds, along with funds from the City's Capital Improvement Fund, Water Fund, and
Storm Fund, will be used to finance various improvement projects within the City. The
composition of the Issue is as follows:
Total Project Costs $2,924,230
Less: Funds from Other Sources (796,570)
Plus: Capitalized Interest 36,835
Costs of Issuance 26,140
Allowance for Discount Bidding 24,365
Total Bond Issue $2,215,000
SECURITY AND FINANCING
The Bonds will be general obligations of the City for which the City will pledge its full faith and
credit and power to levy direct general ad valorem taxes. In addition, the City pledges special
assessments to be levied against benefited property for repayment of the Bonds. Special
assessments are expected to be filed in 2003 for first collection in 2004. Assessments will be
filed over a term of ten years with interest charged on the unpaid balance at a rate of not less
than 1.5% above the average rate on the Bonds.
Since the special assessments will not be filed until 2003 for first collection in 2004, the
principal amount of the Bonds includes capitalized interest sufficient to make the interest
payment coming due on February 1, 2004. Thereafter, special assessments, if collected in full,
will be sufficient to pay 105% of the August 1 interest payment due in the year of collection, and
the February 1 principal and interest payment due in the following year. The City does not
expect to levy ad valorem taxes to pay debt service on the Bonds.
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FUTURE FINANCING
The City does not expect to issue any additional debt within the next 90 days.
LITIGATION
The City is not aware of any threatened or pending litigation affecting the validity of the Bonds
or the City's ability to meet its financial obligations.
\ LEGALITY
)
The Bonds are subject to approval as to certain matters by Kennedy & Graven, Chartered, of
Minneapolis, Minnesota as Bond Counsel. Bond Counsel has not participated in the
preparation of this Official Statement, except for the following "Tax Exemption" section, and will
not pass upon its accuracy, completeness, or sufficiency. Bond Counsel has not examined nor
attempted to examine or verify, any of the financial or statistical statements, or data contained
in this official Statement and will express no opinion with respect thereto. A legal opinion in
substantially the form set out as Appendix I to this Official Statement, will be delivered at
closing.
TAX EXEMPTION
In the opinion of Bond Counsel, under existing statutes, regulations, rulings and decisions, interest
on the Bonds is not includable in the "gross income" of the owners thereof for purposes of federal
income taxation and is not includable in net taxable income of individuals, estates or trusts for
purposes of State of Minnesota income taxation, but is subject to State of Minnesota franchise
taxes measured by income that are imposed upon corporations and financial institutions.
Noncompliance following the issuance of the Bonds with certain requirements of the Internal
Revenue Code of 1986, as amended, (the "Code") and covenants of the bond resolution may
result in the inclusion of interest on the Bonds in gross income (for federal tax purposes) and
net taxable income for State of Minnesota tax purposes of the owners thereof. No provision
has been made for redemption of the Bonds, or for an increase in the interest rate on the
Bonds, in the event that interest on the Bonds becomes subject to United States or State of
Minnesota income taxation.
The Code imposes an alternative minimum tax with respect to individuals and corporations on
alternative minimum taxable income. Interest on the Bonds will not be treated as a preference
item in calculating alternative minimum taxable income. The Code provides, however, that a
portion of the adjusted current earnings of a corporation not otherwise included in the minimum
tax base would be included for purposes of calculating the alternative minimum tax that may be
imposed with respect to corporations. Adjusted current earnings include income received that
is otherwise exempt from taxation such as interest on the Bonds.
The Code provides that in the case of an insurance company subject to the tax imposed by
Section 831 of the Code, the amount which otherwise would be taken into account as "losses
incurred" under Section 832(b )(5) shall be reduced by an amount equal to 15% of the interest
on the Bonds that is received or accrued during the taxable year.
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Interest on the Bonds may be included in the income of a foreign corporation for purposes of
the branch profits tax imposed by Section 884 of the Code. Under certain circumstances,
interest on the Bonds may be subject to the tax on "excess net passive income" of
Subchapter S corporations imposed by Section 1375 of the Code.
The above is not a comprehensive list of all federal tax consequences which may arise from the
receipt of interest on the Bonds. The receipt of interest on the Bonds may otherwise affect the
federal or State income tax liability of the recipient based on the particular taxes to which the
recipient is subject and the particular tax status of other items or deductions. Bond Counsel
expresses no opinion regarding any such consequences. All prospective purchasers of the
Bonds are advised to consult their own tax advisors as to the tax consequences of, or tax
considerations for, purchasing or holding the Bonds.
PENDING LEGISLATION
The Minnesota legislature is considering various bills that could significantly affect the financial
condition of the Issuer. Two bills pending in the Minnesota Legislature would affect the ability of
municipalities to issue new debt and the total amount of taxes that may be levied.
Senate File 330 ("SF 330") as currently drafted prohibits the issuance of new debt after March
31st if issuing the debt would require a debt service levy first becoming payable in 2004 or
2005. House File 1590 (UHF 1590") contains similar restrictions, but affects debt sold after May
31, 2003. Both bills contain exceptions for certain refunding debt and for debt if the total debt
service levies first becoming payable in 2004 do not exceed the amount of the total debt service
levies for taxes payable in 2003. An author's amendment to SF 330 was adopted by the
Senate Tax Committee to change the March 31 date to May 31. This amendment was not
included in the first engrossment of SF 330. The author of SF 330 has indicated that he will
amend SF 330 to provide for a May 31 effective date (the same as the effective date in the
companion HF 1590). However, if SF 330 is enacted with an effective date of March 31,2003,
by its terms it would retroactively prohibit the issuance of bonds issued after that date (unless
the bonds are eligible for one of the exceptions described in the bill). It is not clear whether a
court would uphold legislation that retroactively prohibits the issuance of the bonds. The
Bonds meet certain exceptions in SF 330, and therefore may be issued even if that bill
were enacted with a retroactive effective date of March 31, 2003.
House File 751 ("HF 751") establishes levy limits for most municipalities and provides that many
debt service payments are no longer treated as special levies outside levy limits. The Bonds
meet certain exceptions such that levies for the Bonds are not limited by this bill, except
as described in the next sentence. HF 751 makes increases in property taxes subject to a
reverse referendum. If a referendum is required and voters do not approve an increase in
property taxes, the municipality will be required to extend its debt service levies, but will have to
reduce operating levies in order to stay within the levy limits.
House File 1597 ("HF 1597") is an omnibus tax bill that incorporates certain features of HF 751,
with important exceptions. The bill does not subject debt levies to levy limits, and it excludes
general obligation bonds from reverse referendum procedures. If HF 1597 becomes law
instead of HF 751, the ability of issuers to levy for most debt will be unaffected, though the bill
could affect the financial condition of issuers in other respects.
It is not possible to predict whether SF 330, HF 1590, HF 751 or HF 1597 will become law and,
if enacted, what their impact will be on the financial condition of the Issuer.
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BANK-QUALIFIED TAX-EXEMPT OBLIGATIONS
The City will designate the Bonds as "qualified tax-exempt obligations" for purposes of
't Section 265(b)(3) of the Internal Revenue Code of 1986, as amended, relating to the ability of
financial institutions to deduct from income for federal income tax purposes, interest expense
that is allocable to carrying and acquiring tax-exempt obligations.
RATING
An application for a rating of the Bonds has been made to Moody's Investors Service
("Moody's"), 99 Church Street, New York, New York. If a rating is assigned, it will reflect only
the opinion of Moody's. Any explanation of the significance of the rating may be obtained only
from Moody's.
There is no assurance that a rating, if assigned, will continue for any given period of time, or
that such rating will not be revised or withdrawn, if in the judgment of Moody's, circumstances
so warrant. A revision or withdrawal of the rating may have an adverse effect on the market
price of the Bonds.
FINANCIAL ADVISOR
The City has retained Springsted Incorporated, Advisors to the Public Sector, of St. Paul,
Minnesota, as financial advisor (the "Financial Advisor") in connection with the issuance of the
Bonds. In preparing the Official Statement, the Financial Advisor has relied upon governmental
officials, and other sources, who have access to relevant data to provide accurate information
for the Official Statement, and the Financial Advisor has not been engaged, nor has it
undertaken, to independently verify the accuracy of such information. The Financial Advisor is
not a public accounting firm and has not been engaged by the City to compile, review, examine
or audit any information in the Official Statement in accordance with accounting standards. The
Financial Advisor is an independent advisory firm and is not engaged in the business of
underwriting, trading or distributing municipal securities or other public securities and therefore
will not participate in the underwriting of the Bonds.
CERTIFICATION
The City has authorized the distribution of this Official Statement for use in connection with the
initial sale of the Bonds. As of the date of the settlement of these Bonds, the Purchaser will be
furnished with a certificate signed by the appropriate officers of the City. The certificate will
state that as of the date of the Official Statement, the Official Statement did not and does not as
of the date of the certificate contain any untrue statement of material fact or omit to state a
material fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading.
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The Minnesota Legislature is considering various legislative proposals that could
significantly affect the financial condition of the Issuer. The result of any potential
changes in legislation cannot be predicted at this time. In dealing with a projected
budget deficit, the Minnesota Legislature has proposed to and may reduce financial aids
to municipalities below levels of 2002 receipts for 2003 and later years. (See "Pending
Legislation" herein.)
CITY PROPERTY VALUES
2002 Indicated Market Value of Taxable Property: $2,457,825,030*
* Calculated by dividing the county assessor's estimated market value of $2,062, 115,200 by the 2001
sales ratio of 83.9% for the City as determined by the State Department of Revenue. (2002 sales
ratios are not yet available.)
2002 Taxable Net Tax Capacity: $22,399,411
2002 Net Tax Capacity $24,933,020
Less: Contribution to Fiscal Disparities (3,674,425)
Captured Tax Increment Tax Capacity (497,860)
Plus: Distribution from Fiscal Disparities 1,638,676
2002 Taxable Net Tax Capacity $22,399,411
2002 Taxable Net Tax Capacity by Class of Property
Residential Homestead $12,520,549 55.9%
Commercial/Industrial, Public Utility,
Railroad, and Personal Property* 8,126,088 36.3
Residential Non-Homestead 1,369,987 6.1
Agricultural and Other 382,787 -12
Total $22,399,411 100.0%
* Includes adjustments for fiscal disparities and captured tax increment tax capacity.
Trend of Values
Assessor's
Indicated Estimated Taxable Net
Market Value(a) Market Value Tax Capacity(b)
2002 $2,457,825,030 $2,062,115,200 $22,399,411
2001 2,161 ,872,467 1,813,811,000 16,866,252(c)
2000 1,571,033,143 1,374,654,000 22,124,647
1999 1,199,841,319 1,091,855,600 17,202,378
1998 1,014,374,781 925,109,800 14,908,685
(a) Calculated by dividing the county assessors estimated market value by the sales ratio determined for
the City each year by the State Department of Revenue.
(b) See Appendix III for an explanation of taxable net tax capacity, the Minnesota property tax law, and
2001 legislative changes to the Minnesota property tax system.
(c) The decrease in the taxable net tax capacity for 2001 was due primarily to reduction in property tax
class rates, as detailed in Appendix III.
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Ten of the Largest Taxpayers in the City
2002 Net
Taxpayer Type of Property Tax Capacity
ADC Telecommunications, Inc. Telecommunications $1,480,216
Seagate Technology Inc. Computer Hardware 1,478,500
Oire Minnesota LLC Warehousing 822,656
Rahr Malting Co. Malting Company 681,618
Xcel Energy Utility 642,708(a)
K-Mart Corporation Warehouse and Retail Store 597,624
Cedar Fair Limited Partnership Valleyfair Amusement Park 553,661
Principal Mutual Insurance Insurance 533,836
1000 Valley Drive LLC Industrial 522,500
Inland Shak Valley Marketplace Commercial 420,456
Total $7,733,775(b)
(a) Xcel Energy's Blue Lake Substation is located on an aO-acre site in the northeast section of the City
and houses oil-fueled gas turbine generator$, an electrical substation, and fuel storage and
maintenance facilities.
(b) Represents 34.5% of the City's 2002 taxable net tax capacity.
CITY INDEBTEDNESS
Legal Debt Limit
Legal Debt Limit (2% of Estimated Market Value) $41,242,304
Less: Outstanding Net Debt Subject to Limit (2,361,970)
Legal Debt Margin at April 2, 2003 $38,880,334
General Obligation Debt Supported by Taxes*
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 4-2-03
6-1-97 $3,140,000 Fire Station 2-1-2017 $2,445,000
* Subject to the statutory debt limit.
General Obligation Debt Supported by Taxes and/or Special Assessments
Principal ..
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 4-2-03
12-1-92 $1,665,000 Local Improvements 2-1-2004 $ 130,000
11-1-95 3,180,000 Local Improvements 2-1-2007 815,000
12-1-96 2,555,000 Local Improvements 2-1-2008 850,000
11-1-97 1,805,000 Local Improvements 2-1-2009 595,000
7-1-98 4,495,000 Local Improvements 2-1-2009 1,330,000
12-1-98 2,375,000 Local Improvements 2-1-2010 1,560,000
10-1-00 2,560,000 Local Improvements 2-1-2011 1,985,000
2-1-02 1,185,000 Local Improvements 2-1-2012 1,160,000
7-1-02 2,260,000 Local Improvements 2-1-2013 3,750,000
6-1-03 2,215,000 Local Improvements (this Issue) 2-1-2014 2,215,000
Total $14,390,000
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General Obligation Debt Supported by Revenues
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 4-2-03
11-1-95 $1,150,000 Storm Water Revenue 2-1-2006 $ 410,000
10-1-97 3,495,000 River City Centre-Housing 2-1-2027 3,345,000*
10-1-97 945,000 River City Centre-Taxable Retail 2-1-2020 915,000 *
10-1-97 1,170,000 River City Centre-Retail 2-1-2025 1,170,000*
Total $5,840,000
* These issues were sold by the Scott County HRA to finance a combination housing and retail project
located in the City. These issues are expected to be repaid solely from a combination of revenues of
the project and tax increment collections.
Revenue Debt
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 4-2-03
12-1-99 $ 9,850,000 Utility Improvements 2-1-2028 $ 9,640,000
6-1-01 12,000,000 Utility Improvements 2-1-2030 11,780,000*
5-1-03 3,385,000 Utility Improvement Refunding 8-1-2018 3,385,000 *
Total $24,805,000
* These issues were sold by the Shakopee Public Utilities Commission to finance capital improvements,
replacements and additions to the electric and water utilities comprising the Shakapee Public Utilities.
Annual Calendar Year Debt Service Payments Including This Issue
G.O. Debt Supported
G.O. Debt by Taxes and/or
Supported by Taxes Special Assessments
Principal Principal
Year Principal & Interest(a) Principal & Interest
2003 (at 4-2) (Paid) $ 64,325.01 (Paid) $ 249,026.88
2004 $ 125,000 250,618.77 $ 1,880,000 2,405,015.42
2005 130,000 249,402.52 2,075,000 2,520,733.76
2006 135,000 247,842.52 2,470,000 2,836,421.26
2007 140,000 245,967.52 2,180,000 2,460,759.38
2008 145,000 243,770.02 1,935,000 2,135,877.50
2009 155,000 246,042.52 1,185,000 1,323,762.50
2010 165,000 247,681.27 905,000 1,000,308.75
2011 ' 175,000 248,756.27 730,000 790,988.75
2012 185,000 249,306.27 505,000 540,582.50
2013 195,000 249,209.39 360,000 378,412.50
2014 205,000 248,459.38 165,000 168,135.00
2015 220,000 251,900.00
2016 230,000 249,525.00
2017 240,000 246,600.00
Total $2,445,000(b) $3,539,406.46 $14,390,000(c) $16,810,024.20
(a) Includes the Bonds at an assumed average annual interest rate of 3.00%.
(b) 63.4% of this debt will be retired within ten years.
(c) 98.9% of this debt will be retired within ten years.
- 10-
Annual Calendar Year Debt Service Payments Including This Issue (Continued)
G.O.DebtSupported
bv Revenues Revenue Debt
Principal Principal
Year Principal & Interest Principal & Interest
2003 (at 4-2) (Paid) $ 162,353.80 (Paid) $ 565,533.77
2004 $ 205,000 524,767.60 $ 510,000 1,795,489.43
2005 215,000 524,492.60 530,000 1,763,773.79
2006 225,000 523,505.10 565,000 1,778,073.79
2007 85,000 375,710.10 565,000 1,755,598.79
2008 90,000 376,310.10 595,000 1,762,573.79
2009 105,000 386,260.10 630,000 1,773,223.79
2010 110,000 385,552.60 645,000 1,762,195.04
2011 115,000 384,600.10 680,000 1,769,577.54
2012 125,000 388,227.60 725,000 1,783,925.04
2013 135,000 391,227.60 740,000 1,766,010.04
2014 150,000 398,385.10 790,000 1,781,128.79
2015 240,000 476,705.10 810,000 1,761,255.04
2016 260,000 480,935.10 870,000 1,778,937.54
2017 280,000 483,760.10 915,000 1,778,675.04
2018 295,000 480,438.85 950,000 1,767,872.54
2019 320,000 485,785.10 705,000 1,474,211.91
2020 340,000 486,169.47 1 ,050,000 1,772,296.28
2021 365,000 491,984.46 1,115,000 1,778,123.78
2022 390,000 496,693.82 1,175,000 1,774,727.53
2023 410,000 495,193.80 1,250,000 1,782,258.78
2024 430,000 492,618.78 1,325,000 1,785,597.53
2025 455,000 493,834.39 1,400,000 1,784,343.78
2026 240,000 260,156.26 1 ,485,000 1,788,175.03
2027 255,000 261,853.13 1,575,000 1,792,040.65
2028 1,670,000 1,795,684.39
2029 745,000 804,578.13
2030 790,000 810,243.75
Total $5,840,000(a) $10,707,520.76 $24,805,000(b) $46,286,125.30
(a) 24.1% of this debt will be retired within ten years.
(b) 24.9% of this debt will be retired within ten years.
Summary of Direct Debt Including This Issue
Less: Debt Net
Gross Debt Service Funds(a) Direct Debt
G.O. Debt Supported by Taxes $ 2,445,000 $ (83,030) $ 2,361,970
G.O. Debt Supported by Taxes
and/or Special Assessments 14,390,000 (4,428,572) 9,961,428
G.O. Debt Supported by Revenues 5,840,000 -0- (b) 5,840,000
Revenue Debt 24,795,000 (12,105)(c) 24,782,895
(a) Debt service funds are as of March 31, 2003 and include money to pay both principal and interest.
(b) Storm water funds are transferred to the debt service fund only as required.
(c) Monies from the City's various utility enterprises are transferred to the debt service fund only as
required. Includes a Reserve Fund of which has been established for the Shakopee Public Utilities
Commission's $3,385,000 Public Utilities Refunding Revenue Bonds, Series 2003.
- 11 -
Indirect General Obligation Debt
Debt Applicable to
2002 Taxable G.O. Debt Tax Capacity in City
Taxinq Unit Net Tax Capacity As of 4-2-03(a) Percent Amount
Scott County $ 80,922,742 $57,375,000 27.7% $15,892,875
ISO 720 (Shakopee) 25,205,885 53,925,000 86.0 46,375,500
ISO 191 (Burnsville) 50,262,579 48,035,000(b) 1.4 672,490
Metropolitan Council 1,964,914,748(c) 24,650,000(d) 1.1 271,150
Scott County HRA 80,922,742 1,590,000 27.7 440,430
Total $63,652,445
(a) Excludes general obHgation tax and aid certificates, general obligation debt supported by revenues
and revenue debt. Includes annual appropriation lease obligations.
(b) Includes $1,320,000 of lease revenue Bonds.
(c) 2001 taxable net tax capacity figure. 2002 figures not yet available.
(d) Does not include Metropolitan Council's general obligation debt supported by sanitary sewer
revenues, 911 user fees and rental housing revenues.
Debt Ratios
G.O. Net G.O. Indirect &
Direct Debt Net Direct Debt
To 2002 Indicated Market Value ($2,457,825,030) 0.50% 3.09%
Per Capita (22,192 - 2001 Met Council Estimate) $555 $3,424
* Excludes general obHgation debt supported by revenues and revenue debt.
CITY TAX RATES, LEVIES AND COLLECTIONS
Tax Capacity Rates for a City Resident in ISO 720
2002/03
For
1998/99 1999/00 2000/01 2001/02 Total Debt Onlv
Scott County 39.486% 36.366% 31.839% 39.517% 38.554% 2.827%
City of Shakopee(a) 23.358 20.132 18.199 33.976 33.939 0.767
ISO 720 (Shakopee)(b) 58.686 50.203 42.982 26.080 24.168 20.121
Special Districts(c) 3.962 2.222 2.272 3.628 3.628 2.142
Total 125.492% 108.923% 95.292% 103.201% 100.289% 25.857%
(a) The City also has a 2002/03 tax rate of 0.01393% spread on the market value of property in support of
debt service.
(b) Independent School District 720 (Shakopee) also has a 2002/03 tax rate of 0.12891% spread on the
market value of property in support of an excess operating levy.
(c) Special districts include the Shakopee EDA, the Scott County HRA, Metropolitan Council, Mosquito
Control, Regional Railroad Authority and the Lower Minnesota Watershed District. Until 1999/00
special districts also included Regional Transit District.
NOTE: Taxes are determined by multiplying the net tax capacity by the tax capacity rate, expressed as
a percentage. See Appendix 11/.
-12-
."-. .
Tax levies and Collections
Collected During Collected
Collection Year as of 12-31-02
Levv/Collect Net Levv * Amount Percent Amount Percent
2002/03 $7,308,728 (In Process of Collection)
2001/02 6,080,587 $5,918,244 97.3% $5,918,244 97.3%
2000/01 4,323,382 4,283,080 99.1 4,312,023 99.7
1999/00 3,782,563 3,734,750 98.7 3,772,248 99.7
1998/99 3,745,274 3,707,160 99.0 3,739,130 99.8
* The net levy excludes state aid for properly tax relief and fiscal disparities, if applicable. The net levy
is the basis for computing the tax capacity rates. The net levy beginning in 2001/02 was affected by
legislative changes in 2001 to the Minnesota property tax law. See Appendix 1/1.
FUNDS ON HAND
As of March 31, 2003
Fund Cash and Investments
General $ 3,759,363
Special Revenue 1,460,680
Debt Service:
G.O. Tax Levy 83,030
G.O. Special Assessment 4,428,572
Revenue 12,105
Capital Projects 5,844,612
Enterprise 41,612,829*
Internal Service 6,338,615
Trust and Agency 2,556,925
Total $66,456,741
* Includes Shakopee Public Utilities Commission cash and investments totaling $21,831,349.
CITY INVESTMENTS
Safety of principal is the foremost objective of the City's investment program. Investments shall
be undertaken in a manner that seeks to ensure the preservation of capital in the overall
portfolio. The objective will be to mitigate credit risk and interest rate risk.
The investment portfolio shall remain sufficiently liquid to meet all operating requirements that
may be reasonably anticipated. This is accomplished by structuring the portfolio so that
securities mature concurrent with cash needs to meet anticipated demands (static liquidity).
Furthermore, since all possible cash demands can not be anticipated, the portfolio should
consist largely of securities with active secondary or resale markets (dynamic liquidity).
The investment portfolio shall be designed with the objective of attaining a market rate of return
throughout budgetary and economic cycles, taking into account the investment risk constraints
and liquidity needs. Return on investment is of least importance compared to the safety and
liquidity objectives described above. The core of investments are limited to relatively low risk
securities in anticipation of earning a fair return relative to the risk being assumed.
- 13 -
As of March 31, 2003, the market value of the City's investments, excluding the Shakopee
Public Utilities Commission investments, totaled $47,241,720, including treasury securities
purchased at a discount and accruing interest. Of the City's total investments, approximately
18% of the investments will mature in less than one year (including government mutual funds
and money market funds), and 82% will mature in one to five years.
GENERAL INFORMATION CONCERNING THE CITY
Shakopee is located in northeastern Scott County, approximately 25 miles southwest of the City
of Minneapolis. Shakopee is the Scott County Seat and is part of the Minneapolis/S1. Paul
seven-county metropolitan area. The Minnesota River forms the City's northern boundary. The
City encompasses an area of 29 square miles. The City's population has been increasing
rapidly in recent years, as shown below.
U.S. Census
Year Population Percent Increase
2001 22,192 * 7.9%
2000 20,568 75.2
1990 11,739 18.1
1980 9,941 44.6
1970 6,876 ---
* Metropolitan Council estimate.
Major Employers in the City
Approximate
Number
Emplover Product/Service of Emplovees
Valleyfair Entertainment Center 1 ,600 *
ADC Telecommunications, Inc. Telecommunications 1 ,400
Seagate Technology Inc. Manufacturing 1,200
S1. Francis Regional Medical Center Health Care 660
Scott County Government 656
Independent School District 720 Education 550
Shakopee Valley Printing Newspaper 370
K-Mart Corporation Distribution Center 300
Anchor Glass Container Corp. Glass Container Mfg. 285
Toro Company Turf Care Products 267
CertainTeed Corp. Asphalt Shingles Mfg. 250
Northstar Auto Auction Automotive 250
Shakopee Friendship Manor Corp. Nursing Home 115
City of Shakopee City Government 110
* Number indicates seasonal peak.
Source: Telephone survey of individual employers, March 2003.
- 14 -
Labor Force Data
March 2003 March 2002
Civilian Unemployment Civilian Unemployment
"- Labor Force Rate Labor Force Rate
"". Scott County 58,635 4.5% 58,683 4.7%
Minneapolis/St. Paul MSA 1,819,893 4.4 1,817,687 4.6
Minnesota 2,892,011 4.9 2,889,529 5.0
Source: Minnesota Department of Jobs and Training. 2003 data are preliminary.
City-Issued Building Permits
Total Permits New SinQle Family Homes
Number Value Number Value
2003 (to 3-31) 145 $ 18,475,086 37 $ 9,068,992
2002 1,310 149,473,123 260 55,243,745
2001 1,469 158,959,090 442 93,043,662
2000 1 ,4 73 187,734,526 458 85,480,390
1999 1,057 216,139,070 385 54,807,169
1998 819 115,877,093 175 20,632,815
1997 648 91,419,910 140 17,067,391
1996 694 61,138,601 198 19,733,852
1995 607 55,189,772 159 18,068,018
1994 632 37,717,177 164 17,669,275
Recent Development
The City's residential growth is continuing at a rapid rate. Approximately 1,168 lots/units were
approved in 2002. Approximately 300 new lots were approved in 2001, and 1,030 lots were
approved in 2000.
A comprehensive plan for the City was adopted in 1996. This document guides the City's
growth and development for the next 20 years. Areas covered in the plan include zoning, future
utility facilities, transportation issues, and parks and trails. An update of the plan was approved
by Metropolitan Council in March of 2002 and another update is currently being prepared by
City staff.
Development at the corner of Hwy 169 and County Road 18 is occurring rapidly. Wal-Mart and
Sam's Club stores opened in early 2003. Other retail outlets are under construction. Home
Depot is expected to begin construction in the summer of 2003.
Ryan Development is developing plans for the 200+ acre Valley Green Business Park with a
housing component.
A new $3.5 million library is being constructed in the City and is scheduled to be completed in
2003. The City began construction on a new $4.5 million police station which is scheduled for
completion in 2003. The Shakopee school district has completed construction of a new
elementary school (Red Oak Elementary School) and is planning a new high school within the
City. Shakopee Area Catholic Schools is constructing a new $7.4 million facility. Shakopee
Public Utilities Commission is planning to start construction of a new $11 million service center
in the summer of 2003.
Annexation of 138 acres from Jackson Township has been completed and another 48 acres is
in the annexation process.
- 15-
Financial Institutions
The full service bank in the City is Citizens State Bank of Shakopee. Branches of the voyager
Bank, Wells Fargo Bank Minnesota, N.A., First National Bank of Chaska, Prime Security Bank,
TCF Bank, and Paragon Bank are also located in the City.
Sources: http://www.ffiec.gov/nic/and http://www.mnpro.com.
Health Care Facilities
S1. Francis Regional Medical Center, a general and acute care hospital with 70 beds and
16 infant bassinets, is located in the City. The Center has a medical staff of 70 active
physicians and approximately 200 affiliated physicians. The Center's total full- and part-time
employment is approximately 660.
Also located in the City are Shakopee Friendship Manor, an 80-bed nursing home, and
St. Gertrude's Health Center, a 75-bed nursing home.
Source: http://www.health.state.mn. us/divs/fpc/directory/fpcdir.html
Education
Most Shakopee residents are part of Independent School District 720 (Shakopee); a very small
percentage of City residents are within the boundaries of Independent School District 191
(Burnsville ). Independent School District 720 has a 2002/03 enrollment (kindergarten through
grade 12) of approximately 4,487 students, and has 550 employees.
The Shakopee Area Catholic School provides parochial education for grades kindergarten
through eight. The school has an enrollment of approximately 585 students.
GOVERNMENTAL ORGANIZATION AND SERVICES
Organization
Shakopee was incorporated as a City in 1870 and became a statutory city in April 1975, having
previously been governed under a home rule charter. The City has a mayor-council form of
government, with the Mayor elected to a two-year term of office and the four Council members
elected to overlapping four-year terms. The present Mayor and Council members are as shown
below:
Expiration of Term
William P. Mars Mayor December 31, 2003
Terry Joos Council Member December 31, 2005
Matt Lehman Council Member December 31, 2003
Clete Link Council Member December 31, 2003
Joe Helkamp Council Member December 31, 2003
The City's chief administrative officer is the City Administrator who is appointed by the City
Council. Mr. Mark McNeill was appointed City Administrator in July of 1996. Prior to that,
Mr. McNeill was the City Administrator in Mason City, Iowa for two years and in Savage,
- 16 -
Minnesota for ten years. Mr. McNeill holds a Bachelor of Arts degree in Political Science and a
Master's degree in Public Affairs. Mr. Gregg M. Voxland, the City's Finance Director/Treasurer,
has been with the City since 1978. Mr. Voxland previously worked for the City of Anoka,
Minnesota, and holds a Bachelor of Arts degree in Business and Accounting. Ms. Judith S. Cox
is the City Clerk.
The City has 89 full-time and 21 part-time employees.
Services
Police and fire protection for the City is provided by the Police Department, which is authorized
to staff up to 34 full-time officers. The City has a volunteer Fire Department authorized to staff
up to 50 members. The City has a class 5 rating for insurance purposes.
The Shakopee Public Utilities Commission is responsible for the management and maintenance
of the municipal water system and electrical distribution system. The electric system purchases
power from Minnesota Municipal Power Agency (MMPA) and has 10,498 metered customers.
The Commission is composed of five members appointed by the City Council to three-year
terms. The Commission makes an annual contribution in lieu of taxes to the City. The
Commission has placed a fourth electrical substation into operation to serve the growing load in
the industrial area.
Municipal water and sewer services are provided for all developed areas of the City. Water is
supplied by 12 wells and stored in a two million gallon standpipe, a 1.5 million gallon elevated
tank, and two 500,000 gallon elevated tanks. The water system has a pumping capacity of
12,000 gallons per minute; average demand is estimated to be 3.7 million gallons per day, while
peak demand reaches 11.0 million gallons per day.
Interceptor sewer lines and wastewater treatment plants in the seven-county metropolitan area
are under the jurisdiction of the Metropolitan Council's Environmental Services ("MCES").
MCES finances its operations through user charges based on volume.
Employee Pensions
All full-time and certain part-time employees of the City of Shako pee are covered by defined
benefit pension plans administered by the Public Employees Retirement Association of
Minnesota (PERA). PERA administers the Public Employers Retirement Fund (PERF) and the
Public Employees Police and Fire Fund (PEPFF) which are cost-sharing multiple-employer
retirement plans. PERF members belong to either the Coordinated Plan or the 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 who qualify for
membership by statute are covered by the PEPFF. The City's contributions for employees
covered by PERA for the years ended December 31, 2002, 2001, and 2000 were $419,353,
$339,073, and $301,457, respectively.
The City contributes to the Shakopee Fire Department Relief Association, a single-employer
public employee retirement system that acts as a common investment and administrator for the
City's volunteer fire fighters. Contributions to the relief association in 2002 consisted of $99,441
from the City and $103,284 from State aid.
- 17 -
General Fund Budget Summary
2001 2002 2003
Actual Actual Budqet
Revenue:
Taxes $ 3,863,980 $ 6,418,795 $ 7,418,570
Special Assessments 2,167 1,641 -0-
Licenses & Permits 2,740,253 2,313,544 1,877,800
Intergovernmental 981,799 520,322 131,930
Charges for Service 1,065,824 1,243,535 875,800
Fines and Forfeits 230,085 253,348 240,000
Miscellaneous 314,192 304,937 241 ,000
Total Revenue $ 9,198,300 $11,056,123 $10,785,100
Expenditures:
General Government $ 2,325,091 $ 2,621,617 $ 2,934,405
Public Safety 3,706,838 4,421,029 4,914,130
Public Works 1,625,264 1,847,806 2,041,920
Recreation 664,340 622,099 744,500
Miscellaneous 103,681 109,455 320,000
Total Expenditures $ 8,425,214 $ 9,622,006 $10,954,955
Excess (Deficiency) of Revenues
over Expenditures $ 773,086 $ 1,434,116 $ (169,855)
Other Sources $ 1,257,375 1,057,147 $ 1,115,000
Other Uses (3,843,340) (2,101,744 ) (932,520 )
Excess (Deficiency) of Revenues
and Other Sources Over
Expenditures and Other Uses $ (1,812,879) $ 389,519 $ 12,625
Residual Equity Transfer In 84,323 -0- -0-
Fund Balance, December 31 $ 3.144.560 $ 3.534.079 $ 3.546.704
- 18-
APPENDIX I
PROPOSED FORM OF LEGAL OPINION
Kennedy 470 Pillsbury Center
200 South Sixth Street
Minneapolis MN 55402
&
Graven (612) 337-9300 telephone
(612) 337-9310 fax
http://www.kennedy-graven.com
CHARTERED
$2,215,000
General Obligation Improvement
Bonds, Series 2003A
City of Shakopee
Scott County, Minnesota
We have acted as bond counsel in connection with the issuance by the City of Shakopee, Scott
County, Minnesota, of its General Obligation Improvement Bonds, Series 2003A, (the "Bonds"),
originally dated as of June 1, 2003, in the original aggregate principal amount of $2,215,000. For the
purpose of rendering this opinion we have examined certified copies of certain proceedings taken by the
City with respect to the authorization, sale and issuance of the Bonds, including the form of the Bonds,
certain other proceedings and documents furnished by the City, and applicable laws of the State of
Minnesota. From our examination of such proceedings and other documents, assuming the genuineness
of the signatures thereon and the accuracy of the facts stated therein, and based upon laws, regulations,
rulings and decisions in effect on the date hereof, it is our opinion that:
1. The Bonds are in due form, have been duly executed and delivered, and are valid and
binding general obligations of the City, enforceable in accordance with their terms. The rights of the
owners of the Bonds and the enforceability of the Bonds may be limited by bankruptcy, insolvency,
reorganization, moratorium, and other similar laws affecting creditor's rights generally and by equitable
principles, whether considered at law or in equity.
2. The principal of and interest on the Bonds are payable from special assessments levied or
to be levied on property specially benefited by local improvements and ad valorem taxes for the City's
share of the cost of the improvements, but if necessary for the payment thereof additional ad valorem
taxes are required by law to be levied on all taxable property in the City, which taxes are not subject to
any limitation as to rate or amount.
3. Interest on the Bonds is not includable in gross income of the recipient for federal
income tax purposes or in taxable net income for Minnesota income tax purposes, and is not a preference
item for purposes of the computation of the federal alternative minimum tax, or the computation of the
Minnesota alternative minimum tax imposed on individuals, trusts and estates, but such interest is
includable in the computation of "adjusted current earnings," used in the calculation of federal
alternative minimum taxable income of corporations, and is subject to Minnesota franchise taxes on
corporations (including financial institutions) measured by income and the alternative minimum tax base.
The opinion set forth in the preceding sentence is subject to the condition that the City comply with all
requirements of the Internal Revenue Code of 1986, as amended, that must be satisfied subsequent to the
issuance of the Bonds in order that interest thereon be, or continue to be, excluded from gross income for
1-1
federal income tax purposes and excluded from taxable net income for Minnesota income tax purposes.
We express no opinion regarding other federal or state tax consequences arising with respect to the
Bonds.
We have not been asked and have not undertaken to review the accuracy, completeness or
sufficiency of the Official Statement or other offering material relating to the Bonds, and accordingly we
express no opinion with respect thereto.
This opinion is given as of the date hereof and we assume no obligation to update, revise, or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our attention or
any changes in law that may hereafter occur.
Dated at Minneapolis, Minnesota,
1-2
APPENDIX II
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and
delivered by the City of Shakopee, Minnesota (the "Issuer") in connection with the issuance of
$2,215,000 General Obligation Improvement Bonds, Series 2003A (the "Securities"). The
Securities are being issued pursuant to authorizing resolutions adopted by the City Council of the
Issuer on April 15, 2003, and award resolutions adopted by the City Council of the Issuer on
May 20,2003 (collectively, the "Resolutions") and delivered to the Purchaser(s) on the date hereof.
Pursuant to the Resolutions, the Issuer has covenanted and agreed to provide continuing disclosure
of certain financial information and operating data and timely notices of the occurrence of certain
events. In addition, the Issuer hereby covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate. This Disclosure Certificate is being
executed and delivered by the Issuer for the benefit of the Holders (defined herein) ofthe Securities
in order to assist the Participating Underwriters (defined herein) in complying with SEC Rule 15c2-
12(b)(5). This Disclosure Certificate, together with the Resolutions, constitutes the written
agreement or contract for the benefit of the Holders of the Securities that is required by the Rule.
Section 2. Definitions. In addition to the defined terms set forth in the Resolutions, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this
Section, the following capitalized terms shall have the following meanings:
"Annual Report" means any annual report provided by the Issuer pursuant to, and as
described in, Sections 3 and 4 of this Disclosure Certificate.
"Audited Financial Statements" means the Issuer's annual financial statements, prepared in
accordance with generally accepted accounting principles ("GAAP") for Governmental Units as
Prescribed by the Governmental Accounting Standards Board ("GASB").
"Fiscal Year" means the fiscal year of the Issuer.
"Final Official Statement" means the deemed final official statement dated
, 2003 plus the addendum thereto which together constitute the final official
statement delivered in connection with the Securities, which is available from the MSRB.
"Holder" means the person in whose name a security is registered or a beneficial owner of
such a security.
"Issuer" means the City of Shakopee, Minnesota which is the obligated person with respect
to the Securities.
"Material Event" means any of the events listed in Section 5(a) of this Disclosure
Certificate.
"MSRB" means the Municipal Securities Rulemaking Board located at 1900 Duke Street,
Suite 600, Alexandria, VA 22314.
"NRMSIR" means any nationally recognized municipal securities information repository as
recognized from time to time by the SEC for purposes ofthe Rule.
"Participating Underwriter" means any of the original underwriter(s) of the Securities
(including the Purchaser(s)) required to comply with the Rule in connection with the offering of the
Securities.
"Repository" means each NRMSIR and each SID, if any.
11-1
"Rule" means SEC Rule 15c2-12(b)(5) promulgated by the SEC under the Securities
Exchange Act of 1934, as the same may be amended from time to time, and including written
interpretations thereofby the SEC.
"SEC" means Securities and Exchange Commission.
"SID" means any public or private repository or entity designated by the State of Minnesota
as a state information depository for the purpose of the Rule. As of the date ofthis Certificate, there
is no SID.
Section 3. Provision of Annual Financial Information and Audited Financial Statements.
(a) The Issuer shall provide, as soon as available, but not later than 12 months after the
end of the Fiscal Year commencing with the year that ends December 31, 2002,
each Repository with an Annual Report which is consistent with the requirements of
Section 4 of this Disclosure Certificate. The Annual Report may be submitted as a
single document or as separate documents comprising a package, and may cross-
reference other information as provided in Section 4 of this Disclosure Certificate;
provided that the Audited Financial Statements of the Issuer may be submitted
separately from the balance of the Annual Report and will be submitted as soon as
available.
(b) If the Issuer is unable or fails to provide to the Repositories an Annual Report by the
date required in subsection (a), the Issuer shall send a notice of that fact to the
Repositories and the MSRB.
(c) The Issuer shall determine each year prior to the date for providing the Annual
Report the name and address of each Repository.
Section 4. Content of Annual Reports. The Issuer's Annual Report shall contain or
incorporate by reference the following sections ofthe Final Official Statement:
1. City Property Values
2. City Indebtedness
3. City Tax Rates, Levies and Collections
In addition to the items listed above, the Annual Report shall include Audited Financial
Statements submitted in accordance with Section 3 ofthis Disclosure Certificate.
Any or all of the items listed above may be incorporated by reference from other documents,
including official statements of debt issues of the Issuer or related public entities, which have been
submitted to each of the Repositories or the SEe. If the document incorporated by reference is a
final official statement, it must also be available from the MSRB. The Issuer shall clearly identify
each such other document so incorporated by reference.
Section 5. Reporting of Material Events.
(a) This Section 5 shall govern the giving of notices of the occurrence of any of the
following events if material with respect to the Securities:
1. Principal and interest payment delinquencies;
2. Non-payment related defaults;
3. Unscheduled draws on debt service reserves reflecting financial difficulties;
11-2
4. Unscheduled draws on credit enhancements reflecting financial difficulties;
5. Substitution of credit or liquidity providers, or their failure to perform;
6. Adverse tax opinions or events affecting the tax-exempt status of the
security;
7. Modifications to rights of security holders;
8. Bond calls;
9. Defeasances;
>
10. Release, substitution or sale of property securing repayment ofthe securities;
and
II. Rating changes.
(b) Whenever the Issuer obtains knowledge of the occurrence of a Material Event, the
Issuer shall promptly file a notice of such occurrence with either all NRMSIRs or
with the MSRB and with any SID. Notwithstanding the foregoing, notice of
Material Events described in subsections (a)(8) and (9) need not be given under this
subsection any earlier than the notice (if any) of the underlying event is given to
Holders of affected Securities pursuant to the Resolutions.
(c) Unless otherwise required by law and subject to technical and economic feasibility,
the Issuer shall employ such methods of information transmission as shall be
requested or recommended by the designated recipients ofthe Issuer's information.
Section 6. Termination of Reporting Obligation. The Issuer's obligations under the
Resolutions and this Disclosure Certificate shall terminate upon the legal defeasance, or upon the
redemption or payment in full of all the Securities.
Section 7. Agent. The Issuer may, from time to time, appoint or engage a dissemination
agent to assist it in carrying out its obligations under the Resolutions and this Disclosure Certificate,
and may discharge any such agent, with or without appointing a successor dissemination agent.
Section 8. Amendment; Waiver. Notwithstanding any other provision of the Resolutions
or this Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any provision
of this Disclosure Certificate may be waived, if such amendment or waiver is supported by an
opinion of nationally recognized bond counsel to the effect that such amendment or waiver would
not, in and of itself, cause a violation of the Rule. The provisions of the Resolutions constituting
the Undertaking and this Disclosure Certificate, or any provision hereof, shall be null and void in
the event that the Issuer delivers to each then existing NRMSIR and the SID, if any, an opinion of
nationally recognized bond counsel to the effect that those portions of the Rule which require the
Resolutions and this Disclosure Certificate are invalid, have been repealed retroactively or
otherwise do not apply to the Securities. The provisions of the Resolutions and this Disclosure
Certificate may be amended without the consent of the Holders of the Securities, but only upon the
delivery by the Issuer to each then existing NRMSIR and the SID, if any, of the proposed
amendment and an opinion of nationally recognized bond counsel to the effect that such
amendment, and giving effect thereto, will not adversely affect the compliance of the Resolutions
and this Disclosure Certificate and by the Issuer with the Rule.
Section 9. Additional Information. Nothing in this Disclosure Certificate shall be deemed
to prevent the Issuer from disseminating any other information, using the means of dissemination
set forth in this Disclosure Certificate or any other means of communication, or including any other
11-3
information in any Annual Report or notice of occurrence of a Material Event, in addition to that
which is required by this Disclosure Certificate. If the Issuer chooses to include any information in
any Annual Report or notice of occurrence of a Material Event in addition to that which is
specifically required by this Disclosure Certificate, the Issuer shall have no obligation under this
Certificate to update such information or include it in any future Annual Report or notice of
occurrence of a Material Event.
Section 10. Default. In the event of a failure of the Issuer to comply with any provision of
this Disclosure Certificate any Holder of the Securities may take such actions as may be necessary
and appropriate, including seeking mandamus or specific performance by court order, to cause the
Issuer to comply with its obligations under the Resolutions and this Disclosure Certificate. A
default under this Disclosure Certificate shall not be deemed an event of default with respect to the .'
Securities and the sole remedy under this Disclosure Certificate in the event of any failure of the
Issuer to comply with this Disclosure Certificate shall be an action to compel performance.
Section 11. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of the
Issuer, the Participating Underwriters and Holders from time to time of the Securities, and shall
create no rights in any other person or entity.
IN WITNESS WHEREOF, we have executed this Certificate in our official capacities
effective the day of ,2003.
SHAKOPEE, MINNESOTA
Mayor
(SEAL)
City Administrator
11-4
APPENDIX III
SUMMARY OF TAX LEVIES, PAYMENT PROVISIONS, AND
MINNESOTA REAL PROPERTY VALUATION
(effective through payable 2003)
Following is a summary of certain statutory provisions effective through payable 2003 relative to
tax levy procedures, tax payment and credit procedures, and the mechanics of real property
valuation. The summary does not purport to be inclusive of all such provisions or of the specific
provisions discussed, and is qualified by reference to the complete text of applicable statutes,
rules and regulations of the State of Minnesota.
Property Valuations (Chapter 273, Minnesota Statutes)
Assessor's Estimated Market Value. Each parcel of real property subject to taxation must, by
statute, be appraised at least once every four years as of January 2 of the year of appraisal.
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
the "Estimated Market Value."
Limitation of Market Value Increases. Effective through assessment year 2003, the amount of
increase in market value for all property classified as agricultural homestead or non-homestead,
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
current assessment and the preceding assessment.
Indicated Market Value. Because the Estimated Market Value as determined by an assessor
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
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
relationship between the Estimated Market Value of property within the taxing unit and actual
selling price.
Net Tax Capacity. The Net Tax Capacity is the value upon which net taxes are levied,
extended and collected. The Net Tax Capacity is computed by applying the class rate
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
this Appendix. The formulas and class rates for converting Estimated Market Value to Net Tax
Capacity represent a basic element of the State's property tax relief system and are subject to
annual revisions by the State Legislature.
Property taxes are determined by multiplying the Net Tax Capacity by the tax capacity rate,
expressed as a percentage.
Property Tax Payments and Delinquencies
(Chapters 275, 276, 277, 279-282 and 549, Minnesota Statutes)
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.
111-1
The county treasurer is responsible for collecting all property taxes within the county. Real
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 that,
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%
or 8% on June 1. Thereafter, an additional 1 % penalty shall accrue each month through
October 1 of the collection year for unpaid real property taxes. In the case of the second
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
remaining unpaid on May 16 are deemed to be delinquent and a penalty of 8% attaches to the
unpaid tax. However, personal property that is owned by a tax-exempt entity, but is treated as
taxable by virtue of a lease agreement, is subject to the same delinquent property tax penalties
as real property.
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
filed for a tax lien judgment with the district court. By March 20 the clerk of court files a
publication of legal action and a mailing of notice of action to delinquent parties. Those
property interests not responding to this notice have judgment entered for the amount of the
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
rate charged by banks, but in no event is the rate less than 10% or more than 14%.
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
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
redemption period, unredeemed properties are declared tax forfeit with title held in trust by the
State of Minnesota for the respective taxing districts. The county auditor, or equivalent thereof,
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,
with any remaining balance in most cases being divided on the following basis: county - 40%;
town or city - 20%; and school district - 40%.
Property Tax Credits (Chapter 273, Minnesota Statutes)
In addition to adjusting the taxable value for various property types, primary elements of
Minnesota's property tax relief system are: property tax levy reduction aids; the circuit breaker
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 2002 and 2003 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.
111-2
Certain property tax levies are authorized outside of the new overall levy limitation ("special
levies"). Special levies which do not include levies for bonded indebtedness on installment
payments on conditional sales contracts, state-aid road bonds, contracts for deed, tax
increment revenue bonds, and lease payments under certificates of participation. In order to
receive approval for any special levy claims outside of the overall levy limitation, requests for
such special levies must be submitted to the Property Tax Division of the Department of
Revenue on or before September 15th in the year in which the levy is to be made for collection
in the following year. The Department of Revenue has the authority to approve, reduce or deny
a special levy request. Final adjustments to all levies must be made by the Department of
Revenue on or before December 10th.
Debt Limitations
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
defined as the amount remaining after deducting from gross debt the amount of current
revenues that are applicable within the current fiscal year to the payment of any debt and the
aggregate of the principal of the following:
1. Obligations issued for improvements that are payable wholly or partially from the
proceeds of special assessments levied upon benefited property.
2. Warrants or orders having no definite or fixed maturity.
3. Obligations payable wholly from the income from revenue producing conveniences.
4. Obligations issued to create or maintain a permanent improvement revolving fund.
5. Obligations issued for the acquisition and betterment of public waterworks systems,
and public lighting, heating or power systems, and any combination thereof, or for any
other public convenience from which revenue is or may be derived.
6. Certain debt service loans and capital loans made to school districts.
7. Certain obligations to repay loans.
8. Obligations speCifically excluded under the provisions of law authorizing their
issuance.
9. Certain obligations to pay pension fund liabilities.
10. Debt service funds for the payment of principal and interest on obligations other than
those described above.
Levies for General Obligation Debt
(Sections 475.61 and 475.74, Minnesota Statutes)
Any municipality that issues general obligation debt must, at the time of issuance, certify 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 revenues
pledged for payment of the obligations, produce at least five percent in excess of the 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 levies for
payment of general obligation indebtedness is without limitation as to rate or amount.
111-3
Metropolitan Revenue Distribution (Chapter 473F, Minnesota Statutes)
"Fiscal Disparities Law"
The Charles R. Weaver Metropolitan Revenue Distribution Act, more commonly known as
"Fiscal Disparities," was first implemented for taxes payable in 1975. Forty percent of the
increase in commercial-industrial (including public utility and railroad) net tax capacity valuation
since 1971 in each assessment district in the Minneapolis/St. Paul seven-county metropolitan
area (Anoka, Carver, Dakota, excluding the City of Northfield, Hennepin, Ramsey, Scott,
excluding the City of New Prague, and Washington Counties) is contributed to an area-wide tax
base. A distribution index, based on the factors of population and real property market value
per capita, is employed in determining what proportion of the net tax capacity value in the area-
wide tax base shall be distributed back to each assessment district.
Iron Range Fiscal Disparities
In 1996 Minnesota Legislature established a commercial-industrial tax base sharing program for
the Iron Range that is modeled after the Twin Cities metropolitan area program commonly
known as "fiscal disparities."
Under the Iron Range Fiscal Disparities ("IRFD") program, 40% of the growth in each
municipality's commercial-industrial tax base after 1995 is contributed to an area wide pool.
The tax base pool is distributed back to municipalities on the basis of property wealth per
capita; Le., municipalities with lower property wealth receive greater distributions. For the
purposes of the IRFD program, commercial-industrial property includes public utility property,
but does not include commercial, 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.
The IRFD program is identical to the Twin Cities metropolitan area program except for the
provisions summarized below:
1. The geographical area involved is the taconite tax relief area. This includes all of Cook
County and Lake County, most of Itasca County and St. Louis County (the City of Duluth
and surrounding area is not included), portions of Aitkin County and Crow Wing County,
and a very small portion of Koochiching County.
2. The base year is 1995, so that 40% of the growth in commercial-industrial tax base after
1995 will be shared. The first tax year to be affected was 1997/98.
3. Municipalities are not required to share commercial-industrial growth in tax increment
financing (TIF) districts created before May 1, 1996.
4. Municipalities that consciously exclude commercial-industrial development are excluded
from participation. This will be determined by a joint effort of the Department of
Revenue (MnDOR) and the Iron Range Resources and Rehabilitation Board (IRRRB).
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.
In July of 2001, the Minnesota Supreme Court agreed to review the Act. What the outcome
may be or what effect, if any, these court proceedings may have, cannot be determined at this
time.
111-4
STATUTORY FORMULAE
CONVERSION OF ESTIMATED MARKET VALUE (EMV) TO NET TAX CAPACITY FOR
MAJOR PROPERTY CLASSIFICATIONS
Net Tax
Net Tax Capacity Net Tax Capacity Levy Year
General Classifications Levv Year 1999 Levv Year 2000 2001.2002.2003
Residential Homestead First $76,000 of EMV at First $76,000 of EMV at See next page.
1.00% 1.00%
EMV in excess of $76,000 EMV in excess of $76,000
at 1.65% at 1.65%
Residential Non-Homestead 2.40%; except certain 2.40%; except certain See next page.
4 or more units cities of 5,000 cities of 5,000
population or less at population or less at
2.15% 2.15%
Agricultural Homestead First $76,000 EMV of First $76,000 EMV of See next page.
house, garage and 1 house, garage and 1
acre at 1.00% acre at 1.00%
EMV in excess of $76,000 EMV in excess of $76,000
of house, garage and 1 of house, garage and 1
acre at 1.65% acre at 1.65%
Remaining Property: Remaining Property:
First $115,000 of EMV at First $115,000 of EMV at
0.35% 0.35%
EMV in excess of EMV in excess of
$115,000 and less than $115,000 and less than
$600,000 at 0.80% $600,000 at 0.80%
EMV in excess of EMV in excess of
$600,000 at 1.20% $600,000 at 1.20%
Agricultural Non-Homestead First $76,000 of EMV of First $76,000 of EMV of See next page.
house, garage and 1 house, garage and 1
acre at 1 .20% acre at 1.20%
EMV in excess of $76,000 EMV in excess of $76,000
of house, garage and 1 of house, garage and 1
acre at 1.65% acre at 1.65%
EMV of land and other EMV of land and other
buildings at 1.20% buildings at 1.20%
Commercial-Industrial First $150,000 of EMV at First $150,000 of EMV at See next page.
2.40% 2.40%
EMV in excess of EMV in excess of
$150,000 at 3.40% $150,000 at 3.40%
Seasonal/Recreational Non-Commercial Non-Commercial See next page.
Residential First $76,000 of First $76,000 of
EMV at 1.20% EMV at 1.20%
EMV in excess of EMV in excess of
$76,000 at 1.65% $76,000 at 1.65%
Commercial - 1.60% Commercial - 1 .60%
Homestead Resorts - Homestead Resorts-
1.00% 1.00%
Vacant Land N/A N/A See next page.
(All vacant land is (All vacant land is
reclassified to highest and reclassified to highest and
best use pursuant to local best use pursuant to local
zoning ordinance) zoning ordinance)
111-5
2001 PROPERTY TAX AMENDMENTS
The Omnibus Tax Bill adopted by the Minnesota Legislature during the First Special Session in
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
education property tax levy and certain transit costs; increased the appropriation for Local
Government Aids by $140,000,000; re-imposed levy limits for two years on counties and cities
over 2,500 in population; repealed the Homestead and Agricultural Credit Aid for cities, school
districts and townships; provided for the gradual elimination of Limited Market Valuation; and
compressed the class rates applicable to various classes of property.
2001 Class Rate Changes Local Tax Local Tax Local Tax
Payable Payable Payable
Property Type 2001 2002 2003
Residential Homestead
Up to $76,000 1.000% 1.000% 1.000%
$76,000 - $500,000 1.650% 1.000% 1.000%
Over $500.000 1.650% 1.250% 1 .250%
Residential Non-homestead
Single Unit
Up to $76,000 1.200% 1.000% 1.000%
$76,000 - $500,000 1.650% 1.000% 1.000%
Over $500,000 1.650% 1.250% 1.250%
2-3 unit and undeveloped land 1.650% 1.500% 1.250% 1
Market Rate Apartments 1.800%2 1.500%2
Regular 2.400%
Small City 2.150% 1.800% 2 1.500%2
Low-Income 1.000% 0.900% 3 1.000% 3
Commercialllndustrial/Public Utility
Up to $150,000 2.400% 1.500% 1.500%
Over $150,000 3.400% 2.000% 2.000%
Electric Generation Machinery 3.400% 2.000% 2.000%
Seasonal Recreational Commercial
Homestead Resorts (1c)
Up to $500,000 1.000% 1.000% 1.000%
Over $500,000 1.000% 1.250% 1.250%
Seasonal Resorts (4c)
Up to $500,000 1.650% 1.000% 1.000%
Over $500,000 1.650% 1.250% 1.250%
Seasonal Recreational Residential
Up to $76,000 1.200% 1.000%4 1.000%4
$76,000 - $500,000 1.650% 1.000%4 1.000%4
Over $500,000 1.650% 1.250%4 1.250% 4
Disabled Homestead 0.450% 0.450% 0.450%
Agricultural Land & Buildings
Homestead
Up to $115,000 0.350% 0.550%4 0.550% 4
$115,000 - $600,000 0.800% 0.550% 4 0.550% 4
Over $600,000 1.200% 1.000%4 1.000%4
Non-homestead 1.200% 1.000% 4 1.000%4
1 Rate reduced to 1.25% in pay 2003 and thereafter.
2 Rate reduced to 1.5% in pay 2003 and 1.25% in pay 2004 and thereafter.
3 Rate increased to 1 % in pay 2003, classification abolished thereafter.
4 Exempt from referendum market value tax.
111-6
APPENDIX IV
SELECTED ANNUAL FINANCIAL STATEMENTS
The City is audited annually by an independent certified public accounting firm. Data on the
following pages was extracted from the audited financial statements for fiscal years ending
December 31,2001,2000, and 1999. The 2002 audited financial statement is not yet available.
The City's financial statements are prepared in accordance with generally accepted accounting
principles for governmental entities as prescribed by the Governmental Accounting Standards
Board. For all years presented, the modified accrual basis of accounting is used for
governmental fund types; the accrual basis is used for proprietary funds. The reader should be
aware that the complete audits may contain additional information which may interpret, explain
or modify the data presented here.
(
The City's comprehensive annual financial reports for the years ended 1984 through 2001 were
awarded the Certificate of Achievement for Excellence in Financial Reporting by the
Government Finance Officers Association of the United States and Canada (GFOA). The
Certificate of Achievement is the highest form of recognition for excellence in state and local
government financial reporting.
In order to be awarded a Certificate of Achievement, a government unit must publish an easily
readable and efficiently organized comprehensive annual financial report, whose contents
conform to program standards. Such financial report must satisfy both generally accepted
accounting principles and applicable legal requirements.
IV-1
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IV-4 '-
CITY OF SHAKOPEE, MINNESOTA
COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
ALL GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED DECEMBER 31, 2001
Governmental Fund Types
Total
. Special Debt Capital (Memorandum Only)
General Revenue Service Projects 2001 2000
Revenues
. Taxes $ 3,863,980 $ 445,681 $ 261,363 $ 1,498,695 $ 6,069,719 $ 5,148,137
Special Assessments 2,083,011 297,175 2,380,186 2,959,962
Licenses And Permits 2,000,133 418,969 2,419,102 2,517,470
Intergovernmental 981,799 496,318 149,762 1,627,879 2,234,040
Charges For Services 1,805,944 27,322 1,833,266 1,982,395
Fines And Forfeits 230,085 230,085 172,017
Miscellaneous 316,359 84,230 500,077 485,685 1,386,351 1,892,997
Total Revenues 9,198,300 1,053,551 2,844,451 2,850,286 15,946,588 16,907,018
Expenditures
Current
General Government 2,325,091 445,641 2,770,732 2,458,342
Public Safety 3,706,838 4,027 3,710,865 3,319,514
Public Works 1,625,264 394,679 2,019,943 1,907,102
Recreation 664,340 664,340 621,306
Miscellaneous 103,681 103,681 86,805
Capital Outlay 4,396,346 4,396,346 4,585,657
Debt Service
Principal 3,265,000 3,265,000 4,195,000
Interest And Other Charges 770,152 770.152 847,692
Total Expenditures 8,425,214 844,347 4,035,152 4,396,346 17,701,059 18,021,418
Excess (Deficiency) Of Revenues Over
Expenditures 773,086 209,204 (1,190,701) (1,546,060) (1,754,471 ) (1,114,400)
Other Financing Sources (Uses)
Operating Transfers In 1 ,243,695 55,300 420,000 1,718,995 2,273,569
Operating Transfers Out (3,843,340) (47,598) (377,802) (4,268,740) (3,086,736)
Proceeds Of Borrowing 2,550,892
Sale Of Property 13,680 13,680 102,517
Total Other Financing Sources (Uses) (2,585,965) 55,300 372,402 (377,802) (2,536,065) 1,840.242
. Excess Of Revenues & Other
Financing Sources Over Expenditures
& Other Financing Uses (1,812,879) 264,504 (818,299) (1,923,862) (4,290,536) 725,842
-
. Fund Balance January 1 4,873,116 680,537 9,321,002 6,446,760 21,321,415 20,595,573
Residual Equity Transfer 84,323 247 (247) 84,323
Fund Balance December 31 $ 3,144,560 $ 945,041 $ 8,502,950 $ 4,522,651 $ 17,115,202 $ 21,321,415
IV-5 ..
CITY OF 'SHAKOPEE, MINNESOTA
COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCES
AU. GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED DECEMBER 31,2000
Governmental Fund Types
Tolal
Special Debt Capital (Memorandum Only)
General Revenue Service Projects 2000 1999
Revenues .
Taxes . $ 3.399,045 S 278,198 $ 260,020 S 1,210,874 $ 5,148.137 S 5.499,168
Special Assessments 2,462,027 497,935 2,959,962 2,351,600
Licenses And Permits 2.023,037 494,433 2,517,470 2.415,281
Intergovemmental 872,607 267.921 1,093,512 2,234,040 1,293,661 ,
Charges For Services 1,957,569 24,826 1,982,395 1,964,050
Fines And Forfeits 172,017 172,017 148,835
Miscellaneous . 678,652 75,684 531,291 607,370 1,892.997 922.833
Total Revenues 9,102,927 646,629 3,253.338 3,904.124 16,907,018 14,595,428
, Expenditures
Current
General Government 2,218,058 240,284 2,458,342 2,269,240
Public Safety 3,318,628 886 3,319.514 2,906,930
Public Works 1.505.776 401,326 1,907,102 2.022,599
Recreation 621,306 621,306 458,417
Miscellaneous 86,805 86,805 109,182
Capital Outlay 4,585,657 4,585,657 2,619,354
Debt Service
Principal 4,195,000 4,195,000 2.010,000
Interest And Other Charges 847.692 847,692 964.694
Tolal Expenditures 7,750,573 642,496 5,042.692 4.585,657 18.021,418 13.360.424
Excess (Deficiency) Of Revenues Over
Expenditures 1 ,352.354 4,133 (1.789.354) (681.533) (1.114,400) 1,235,004
Other Financing Sources (Uses)
Operating Transfers In 1,133.943 1,139,626 2,273,569 2.866;069
Operating Transfers Out (2,416,038) (128,221) (542.479) (3,086.736) (4,154.048)
Proceeds Of Borrowing 16,492 2,534,400 2.550,892
Sale Of Properly 102.517 102,517 278,628
Total Other Fmancing Sources (Uses) (1.179.576) 1,027.897 1.991 ,921 1.840,242 (1.009.351)
Excess Of Revenues & Other
Financing Sources Over Expenditures
& Other Financing Uses 172,778 4,133 (761,457) 1.310,388 725,842 225.653
Fund Balance January 1 As Previously Reported 4,700,338 676,404 10,082,459 5,136,372 20,595,573 22.663.988
Prior Period Adjustment 188.362
Fund Balance January 1 As Restated 4.700,338 676,404 10.082,459 5,136,372 20,595,573 22,852,350
Residual Equity Transfer (2,482,430)
Fund Balance December 31 $ 4.873,116 $ 680,537 $ 9,321.002 $ 6,446,760 $ 21.321,415 $ 20,595,573 .
,
. .
lV-6 ~
CITY OF SHAKOPEE. MINNESOTA
COMBINED STATEMENT OF REVENUES. EXPENDITURES AND CHANGES IN FUND BALANCfS
ALl GOVERNMENTAL FUND TYPES
FOR THE YEAR ENDED DECEMBER 31.1SlS8
GowmmentaI Fund Types
Tclt.8I
l SpecW 0lIbt CapbI (Memorandum Only)
GenenII Revenue ServIc:e Projects 1999 1998
~
T_ $ 3.318,11" $ .csr_ $ 281.081 $ 1.<t61,874 $ 5,_,168 $ 5.200.663
. SplIciIII Aaessments 2,001.872 349.628 2,351.600 5,154,203
Ucense& IwJ Permits 1.875.506 53&,775 2."15.281 1,853.115
~ 859.684 313,180 120.7&7 1.293.661 2,084.018
ChlItges For s.rw:. 1.913.702 50,348 1.964.050 1,359.853
F_1wJ Forfeits 1.cs.835 1.cs.835 99.1<CO
Miscellaneous 335.088 82.768 218.942 286.035 922.833 1."18.724
Teal R-.- 8,450.929 904.295 2,.cs1.995 2.758.209 1",595.428 17,169.716
~
Current
GenenII ~ 2,039,286 22&,962 2.26&,2.cs 1.7.cs.550
Public: S8fCy 2,8&4,155 22,775 2,S1C16.830 2,.coo.SlOlJ
Public: Works 1,436,<C01 S86, 188 2.022,599 1.975.808
RecrutIon 6,"17 6.417 3&0,557
MisceIIarMlouS 109,182 109.182 413.064
CapbI Outlay 2.618,354 2,618,354 1.044.678
0lIbt ServIc:e
Princ:ipIII 2.010.000 2,010.000 2,250.000
......1wJ Other a.rg. 964.694 964.694 804.576
TeaI~ 6.927.441 838.935 2.97".694 2.619.354 13.360.424 18.028.1<C2
e- (OIfic:iency) Of R-.- 0YlIr
~ 1.523,488 65.360 (492.699) 138.855 1.235.004 (858,426)
Other FIIWlCing Soun:. (Usa)
Operating Transfwlln 1.065.541 1.211 1.466.171 333.1<t6 2.866._ 3.038.580
Operating TIMlIfwI ~ (2.096.800) (45.000) (2.012,248) (4.154.048) (2.485.342)
PnIeMds Of EIomMinG 8,838.664
Sale Of Property 278.628 278,628 130.100
Tclt.8I Other Flnanclng Sourcea cu-> (1.031,259) (43.789) 1.466.171 (1.400,,"<4) (1.009.351) 7.512.002
~ Of R-... & Other
FINIIIQng SouR:. CMr ~
& Other Flnanc:Ing u.. 492.229 21.571 973.472 (1.261.619) 225.653 6.653.576
Fund BaIanc=- .IMuuy 1 Aa Previously Report8d 4.019.7'" 654,833 8,608.467 8,380,841 22.663._ 16.010.412
. Prior Pwiod Adjustment 188.362 188.362
Fund BaIanc=- .IMuuy 1 As Restated 4.208.109 654.833 8.608.467 9.380,941 22.852.3S0 16.010,"12
Residual Equity TIaRSfer 500.520 (2.982.950) (2,482,430)
.
Fund BaIanc=- December 31 $ ".700,338 $ 676,.c04 $ 10.082,459 $ 5.136.372 $ 20,595.57'3 $ 22.663._
IV-7
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!V-10 . . r ,
,
~
CITY OF SHAKOPEE, MINNES01t.
EN1ERPRISE FUNDS,
COMBINiNG SIATEMENi OF RE\lENUES, EXPENSES AND CHANGES IN RE1AINED E';RN1NG~
FOR ;HE YEAR ENDED DECEME-ER 31,2001
Storm Retust I otdl~
EleClJX \'\t;ll€"f SewCf Dldioag€' CoJ:ectjon R~bOn
funC h.me: funC Func; rune Func 200' 2()()(,
Operating Revenues
~ S31es $ 18.504239 S 2.024.965 S 2.2'9.160 S 1.138.627 S 9.315 $ 570.465 S 24.496,771 $ 21.657.228
Cost Of Sates 12.984.805 12.984.805 11.089.223
Gross Profit 5,519.434 2.024,965 2.249,160 1.138.627 9.315 570.465 11.511,966 10.568,005
Ope<ating Expenses
Operations And Maintenance 1.904.973 1.034.280 239.453 229.355 53.323 1255.682 4.717.066 4.267.924
Treatment Charges 1,200.768 1200.768 1.002.960
Depreciation /Jutd Amortization 690.240 398,439 366,088 394 ,853 14.066 1.863.686 1.561.n3
lotal Oper,ating E.".:penses 2.595213 1.432.719 1.806,309 624208 53.323 1.269.748 7.781.520 6.832.657
Opeldting Income (Loss) 2.924.221 592.246 442,851 514.419 (44.008) (699.283) 3,730.446 3.735.348
Non-Operating Income (E.;.pense)
Investment Income 620.118 342.139 739.471 446.775 6.113 20.996 2.175.612 1.759.727
Other Income 28.116 30,838 266,974 402.504 31.569 4.345 764 .346 2.125.745
Interest Expense (842.608) (124.071) (32.493) (999.172) (526.533)
loss On Asset Disposal (3.497)
Net Non.Opel"3ting Income (194.37') 248,906 1,006.445 816.786 37.682 25.341 1.940.786 3.355.442
Income (Loss) Belore Opefdting lransfers 2.729.847 841.152 1.449.296 1.331.205 (6,326) (673.942) 5.671.232 7.090,790
Operating lraosfers In 538,040 538.040 347.110
Ope<aling .",nsfer.; (Out) (791.592) (446.703) (1.238.295) (1.133.943)
Net Income 1,938,255 394,449 1.449.296 1.331.205 (6.326) (135,902) 4.970,977 6.303.957
Adct. Capital Contributions 562.799 2.480.711 3.043,510
Add: Oeprecidtion On Contributed Assets
lhat Reduces Contributed Capibl 253.906 283.268 13.795 550.969 723.174
tncrease (Decrease) In Retained Eamings 2.501.054 2.875.160 1.703.202 1.614.473 (6.326) (122.107) 8.565.456 7.027.131
Re13ined Earnings January , 12.140256 8,681.737 10.729.270 8.747.834 90.649 76.594 40.466.340 33,439.209
ResKfuaI Equity Transfer Out (84,323) (84.323)
Rebined Earnings Decembef 31 $ 14.641.310 $ 11 ,556.897 $ 12.432.472 S 10.362.307 $ S (45.513) S 48.947.473 S 40.466.340
IV-11 I
CITY OF SHAKOPEE, MINNESOTA
ENTERPRISE FUNDS
COMBINING STATEMENT OF REVENUES, EXPENSES ANDCHANGE5 IN RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 2000
Storm Refuse Totals
Eledric Water Sewer Drainage Collection Recreation
Fund Fund Fund Fund Fund Fund 2000 1999
Operating Revenues
Sales $ 16,138.213 $ 1.814.352 $ 1.916.500 $ 1.259,529 $ 21.759 $ 506.875 $ 21.657,228 $ 18.485.285 .
Cost Of Sales 11,089.223 11.089.223 9,740,095 1
Gross Profit 5,048.990 1.814.352 1.916.500 1.259.529 21.759 506,875 10,568.005 8,745,190
OperatingExpenses .
Operations AsvJ Maintenance 1.849.634 1.061.046 110.972 212.779 30.801 1.002.692 4.267.924 3.314,755
Treatment Charges 1,002,960 1.002.960 1,487.852
Depreciation And Amortization 494.942 329,774 346.437 373,587 17,033 1.561,773 1.324.182
Total Operating Expenses 2.344,576 1,390,820 1.460.369 586,366 30.801 1,019.725 6.832.657 6.126.789
Operating Income (Loss) 2.704,414 423,532 456.131 673,163 (9.042) (512.850) 3.735.348 2.618.40'1
NoM)peraIing Income (Expense)
Investment Il1Q)me 275.844 458,176 663.467 339.039 7.491 15.710 1.759.727 623.963
Other Income 90.675 1.163.220 225.082 637,829 6.915 2.024 2.125,745 1,236.919
Interest Expense (344.426) (104.709) (41.217) (38.181) (526.533) (331.609)
Loss On Asset Disposal 13.497) (3.4971 (22.966)
Net Noo-Operaling Income 22.093 1.516.687 847.332 940.687 14.406 14.237 3.355.442 1.506.307
Income (LOSS) Before Operating Transfen; 2.726.507 1.940.219 1.303,463 1.613.850 5.364 (498.613) 7.090.790 4.124.708
Operating Transfers In 347,110 347.110 336,970
Operating Transfers (0uI) (157 .207) (366,738) (1.133.943) (1.048.991)
NellnCOme 1.959.300 1.573.4a3 1.303.463 1.613.850 5.364 (151,503) 6.303.957 3.412.687
Add: Deprec:iaIion On Conlributed Assets
That Reduces Contnbuted Capital 2.939 179,888 263.328 262.004 15.015 723.174 685,344
Increase (Decrease) In Retained Earnings 1.962.239 1.753,371 1.566,791 1,875,854 5.364 (138.488) 7.027.131 4,098,031
Retained Earnings January 1/'$ PnmsouIy Reported 10.178.017 6.928.366 9.162.479 6.871.980 85,285 213,082 33.439.209 28.630.590
Prior Period Adjustment 710.588
Retained Earnings /'$ Restated 10.178.017 6,928.366 9.162.479 6.871.980 85.285 213.082 33.439.209 29.341.178
Retained Earnings December 31 $ 12.140.256 $ 8.681.737 $ 10.729.270 $ 8.747.834 $ 90.649 $ 76.594 $ 40.466.340 $ 33.439.209
IV-12
atY OF &HAKOPEE. ....e&arA
ENTERPRISe FUNDS
COflOl"1INO STATEMENT OF REVENl.ES. EXPENSES N<<;) QW<<3ES IN RETAINED ~
FORltEVEAR ENOEDD""-o'OE:RS1,1.
a- R-.. TolIIII
a.cn: w_ s.. DnIiMge ColIaian ~
Fund Fund Fund Fund Fund Fund 11lll1l 111118
ap..Iing ~
s.- S 12,ll3ll,lllI1 S 2,050,ll3ll S 2,SlIll.5lS2 S m,lllO S 24,141 $ 478,306 $ 1&,485,285 S 18,887,577
eo.t Of s.- 8,7<<l,Oll5 8,7<<l,Oll5 8.sse,ll3ll
~
Glau PIafit 3.086.ll8ll 2,050,838 2,lIlI8.51S2 m,fJIl!tJ 24,141 478.306 8.745.1110 8.311,535
ap..Iing e.p...
ep..Iiona 1wJ ........._ 1.527,817 550, 1SO 13C,5:l8 172,215 ~;JfiT llOO.lO7 3,S14,755 2.75ll,042
. T_a.rv- 1,487,15:2 1,4117,15:2 1.547.3a2
o..p. . .. . 1tIr4~. c . 372.811 3OC.225 283.387 S!7471 115.501 1.324.182 1.22ll.3llD
TaliII ~ e.p... 1,llOO.A2e asc.355 1.l115.7411 !lOll." ~:2ST 8'I7,SOII e.12e.788 5,$35,724
ap..Iing h>ome (l.,ma) 1,1l1ll.4S8 1,1l1ll,2e1 453.814 217,llll7 lS.1181 (441,0031 2,818.401 2.775.814
~Inclame~)
........",..Inaame 1S3,00lS 140,_ 235.1lOt 1os.178 2,583 5,8DS 823,883 7OS,SlD
0lI.- h>ome 11,1102 2e.7Oll 325,014 llll3,OlI8 8,llOO 3,325 1.238.8'18 1,138,_
....... e...- (147,125) (83.S18) (IilO,477) (4O.lI8lI) (331,ecl8) ~
~ On A.- CM.-.& (e,3lllI) ne.5lI8l l22.lIll8l
NlIt~ h>ome 12.2111) 114,082 !5Oll.43ll ll21.1lI2 8.4lilS 17.35Ol 1,508.307 1.48ll,sse
Ina:Ime (l.,ma) EWln ClpeqIine T....... 1.184,240 1,21lO.3a 1164,252 1,138,ll2Il 4,S77 (44ll,S53) 4,124,7011 oC,2IlI5,173
ClpeqIine T....... In S30,lJ7O S30,870 S32,lI8O
~ T......... (OuQ l7S2 7e7) l2lllI.2241 n .048.llG1) (875,828l
NlIt IrIcxlI'ne 411,473 1,014,138 1164,252 1.138,ll2Il 4$T7 (111,383) 3,412.887 3,721'-
Add:o.,.. . "~..On~~
n.tReclucea~~ 2._ 1110,452 238 73S 2S7.2l5 15.015 ' ess.S44 e38.1lO1
~In ~&lmlnea 414.412 1.174.581 1.1Sl3.lllI5 1.407,OW 4S77 C8ll.38lIl 4,086.031 4.381._
RDned Eaminga........., 1 ,.. PNMauIy A8paMd 8,Cl53,017 5,753,715 7,llll8.484 5,4114.848 ao.l108 SOlI.450 28,830,_ 24.:ze&.7S4
Prior PwiDd &.I; -..It 710.!\8ll 710.588
RDned Eaminga'" R--.d 8.783.1105 5.753,775 7,888.484 5.4ll4.e4lI 1IO.8Oll 3OQ.450 29.341.178 24.288.7SC
RDned E.llmingo o.c-.bet 31 S 10,178,017 S e,m,38ll S 8.1112,m S e,m,_ S lIS,28S S 213,082 S 33,43ll,2OlI S 2e,ll3O,_
I
IV-13 j