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AUTHORIZATION TO RETAIN SPRINGSTED INCORPORATED FOR CONTINUING DISCLOSURE REQUIREMENTS By: Diana Lund, Finance Officer Background: The Securities and Exchange Commission (SEC) has created regulations for continuing disclosure of pertinent information relating to the issuance of municipal debt. The requirements of this disclosure state that a Municipality must agree in writing to comply with providing ongoing disclosure regarding the issue and the issuer of the debt for the life of the debt issue. Without authorizing in writing to comply with these disclosure requirements, the City may not market debt. Continuing Disclosure requires the City to file with four nationally recognized Municipal Securities Information Repositories copies of its annual financial statement, Annual Report, information on city property values, indebtedness, tax rates, levies, collections, and any material events that may have happened in the City within the year being reported. Attached is a letter from Springsted stating the consequences of non-compliance of continuing disclosure. The City has three new bond issues in 1999 which require continuing disclosure. They are the $3,000,000 Housing Development Revenue Bonds (City of Ramsey Unlimited Tax General Obligation -relating to the Sr. Housing Project), $1,195,000 General Obligation Tax Increment Bonds relating to the Sr. Housing Project, and the $1,665,000 Public Facility Lease Revenue Bonds pertaining to Fire Station #2. With the City having three new bond issues to report on, and with the new regulations being enforced by the Securities Exchange Commission, the City would at this time, for the year ending December 31, 1999, like to enter into a contract with Springsted Incorporated (Copy of Contract is attached). Springsted would disclose the City's financial information to the appropriate parties for the year of 1999. The contracted amount would be a one-time $250.00 fee to enter into the contract and a fee of $200.00 per each bond issue. This would total $850.00 which would be paid out &the Finance Department's 1999 budget. This contract would obtain the services of Springsted for the reporting period of one year only. At the end of the first year, the City may obtain their services again if needed. Staff Recommendation: Staff recommends entering into contract with Springsted Incorporated to perform continuing disclosure services in the amount of $850.00 for the period ending December 31, 1999.