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HomeMy WebLinkAbout77-32RESOLUTION 77-32 ' Councilperson Emond then introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING, SELLING AND ESTABLISHING THE TERMS OF $200,000 LIQUOR DISPENSARY REVENUE BONDS OF 1977, AND MAKING PROVISION FOR THEIR PAYMENT BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota, as follows: Section 1. Authorization and Sale. 1.01. Liquor Dispensary Improvements. The City of Lakeville now owns and operates a Municipal Liquor Dispensary selling liquor both off -sale and on -sale, as a public revenue- producing convenience, pursuant to Minnesota Statutes, Chapter 340. This Council has determined that it is necessary for the City to provide for the acquisition and betterment of additions and improvements to the Municipal Liquor Dispensary at an estimated construction cost of approximately $250,000. 1.02. Existing Indebtedness and Liens. The City now has outstanding $20,000 principal amount of Municipal Liquor Revenue Bonds of 1961 dated October 1, 1961, hereinafter referred to as "the 1961 Bonds," payable as to both principal and interest from the net revenues to be derived from the operation of the Municipal Liquor Dispensary, and constituting a first lien and charge on such net revenues. 1.03. Additional Bonds. It is necessary and expedient for the City to sell and issue its Liquor Dispensary Revenue Bonds of 1977, in the principal amount of $200,000, upon the terms and conditions hereinafter set forth, to finance a portion of the cost of such additions and improvements; and to make the bonds payable solely from the net revenues of the Municipal Liquor Dispensary on a parity as to both priDcipal and interest with the outstanding 1961 Bonds, it being hereby found and determined that the revenues to be derived from reasonable charges for the services, products and by-products of said Dispensary during the term of the 1961 Bonds will be more than ample to meet all payments of principal and interest on the 1961 Bonds and the bonds herein authorized. 1.04. dated August 24, Bonds, the City Parity Lien. In 196 authorizing reserved the right -3- Paragraph 5 of the resolution the issuance of the 1961 to issue additional bonds payable from such net revenues and the Sinking and Account of its Liquor Dispensary Municipal Building a parity as to both principal and interest with the Bonds, and secured by each and all of the covenants provisions made in such resolution for the benefit holders of the 1961 Bonds, provided that: Interest Fund on 1961 and other of the The net revenues derived from the ownership and operation of said dispensary, after provision for the payment of the necessary expenses for current operation, maintenance and ordinary repairs, shall have been, for each of the two calendar years immediately preceding the date of such additional issue in an amount at least one and one- half times the average annual interest and principal requirements of the bonds issued hereunder and such additional bonds, during the then remaining life of the bonds issued hereunder. The amount of net revenues of the Municipal Liquor Dispensary during the calendar years 1975 and 1976, were $86,711 and $86,624, respectively. The average amount of principal and interest to become due and payable from the Sinking and Interest Account in the current or any subsequent calendar year during the term of the 1961 Bonds, on the 1961 Bonds M and the bonds now to be issued, is $26,123.75 ; and 150% of this amount is $39,185.63 , which is less than such net revenues for each of the calendar years 1975 and 1976. Therefore, the bonds now to be issued can be made payable from the Sinking and Interest Account and the net revenues of the Municipal Liquor Dispensary pledged thereto, on a parity as to both principal and interest with the 1961 Bonds, and except as hereinafter provided shall be secured in accordance with said resolution dated August 24, 1961. 1.05. Sale of Bonds. Notice of sale of the bonds now to be issued as been duly published and the Council has publicly received, opened and considered all sealed bids presented in conformity with the notice. The most favorable of such bids is ascertained to be that of Cronin & Marcotte, Inc. of Minneapolis ,Minnesota , and associates, to purchase the bonds at a price of $197,000.00 plus accrued interest, and upon the further terms and conditions set forth in this resolution. 1.06. Sale Contract. The Mayor and City Adminis- trator are directed to execute in duplicate a contract on the part of the City for the sale of the bonds in accordance with the proposal described in Section 1.05, and to deliver a duplicate to the purchaser. The Treasurer is directed to -4- retain the purchasers' check securing the contract of sale until the bonds are delivered and the purchase price is paid, and to return the checks securing other bids to the respective bidders. Section 2. Form of Bonds and Coupons. 2.01. Bond Form. The bonds issued hereunder shall be printed in substantially the following form: -5- UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF LAKEVILLE LIQUOR DISPENSARY REVENUE BOND OF 1977 No. $5,000 KNOW ALL MEN BY THESE PRESENTS, that the City of Lakeville, a municipal corporation of Dakota County, Minnesota, hereby acknowledges itself to be specially indebted and for value received promises to pay to bearer, solely from the net revenues of the City's Municipal Liquor Dispensary pledged to the Sinking and Interest Account of its Liquor Dispensary Municipal Building Fund, the sum of FIVE THOUSAND DOLLARS on the 1st day of December, 19 , without option of prior payment, and to pay interest thereon from said net revenues at the rate of percent ( o) per annum from the date hereof until the principal sum is paid, payable semiannually I on each June 1 and December 1, commencing June 1, 1978, in accordance with and upon presentation and surrender of the interest coupons appurtenant hereto. Both principal and interest are payable at , in . • in any coin or currency of the United States of America which on the respective dates of payment is legal tender for public and private debts. This bond is one of an issue in the aggregate principal amount of $200,000, all of like date and tenor except as to serial number, interest rate, maturity date and redemption privilege, all issued for the purpose of financing improvements to the Municipal Liquor Dispensary of the City, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and an Authorizing Resolution of the City Council adopted on June 6, 1977. The bonds of said issue are payable solely from the net revenues of the Municipal Liquor Dispensary as defined in said Resolution, which net revenues have been pledged to said Sinking and Interest Account; and are payable from such net revenues on a parity as to both principal and interest with the outstanding Municipal Liquor Revenue Bonds of 1961 of the City dated October 1, 1961. The full faith and credit and taxing powers of the City are not pledged for the payment of the principal or interest on said bonds. -6- IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen, to exist and to be performed precedent to and in the issuance of this bond in order to make it a valid and binding special obligation of the City according to its terms have been done, have happened, do exist and have been performed in regular and due form, time and manner as so required; that the City has established and will maintain said Sinking and Interest Account until the bonds herein authorized are paid or discharged and will transfer each month to said Account a sum not less than one - twelfth of the aggregate amount of principal and interest to become due within the twelve months next following, on said said bonds and all other obligations payable from said Account, and any sum needed to maintain the required reserve in said Account; that the City and its officers and employees will establish and maintain operating policies covering the purchase and sale of merchandise, and will do all other things necessary and feasible, to assure that the gross receipts of its Municipal Liquor Dispensary will at all times be adequate to pay all costs of operation and maintenance thereof and to produce net revenues adequate to make such transfers to said Sinking and Interest Account; that in and by said Authorizing Resolution the City has made and entered into covenants with the holders of all such bonds which will be fully and promptly performed by the City and all of its officers and employees; and that the issuance of this bond does not cause the special or general indebtedness of the City to exceed any constitutional or statutory limitation. IN WITNESS WHEREOF the City of Lakeville, Dakota County, Minnesota, by its City Council, has caused this bond and the interest coupons appurtenant hereto and the certificate on the reverse side hereof to be executed and authenticated by the signatures of the Mayor and City Administrator, and its corporate seal to be affixed hereto, all such signatures and the seal being authentic printed, engraved or lithographed facsimiles except for the manual signature of one of said officers on the face of this bond, and has dated this bond as of June 1, 1977. Mayor 6�t Attest: /% City Administrator (SEAL) -7- - 2.02 Legal Opinion Certificate. A copy of the text of the legal opinion of bond counsel shall be printed on the reverse side of each bond and identified by a certificate in the following form: We certify that the above is a full, true and correct copy of the legal opinion rendered by bond counsel on the issue of bonds of the City of Lakeville which includes the within bond, dated as of the date of delivery of and payment for the bonds. City Administrator Mayor 2.03. Interest Coupons. Interest on each bond to maturity shall be represented by a consecutively numbered set of interest coupons, printed in substantially the following form: No. On the 1st day of June (December), 19 , the City of Lakeville, Dakota County, Minnesota, will pay to bearer solely from the net revenues described in the bond to which this coupon appertains, at , in , the amount shown hereon in lawful money of the United States of America for interest then due on its Liquor Dispensary Revenue Bond of 1977, dated June 1, 1977, No. City Administ ator Mayor Section 3. Bond Terms, Execution and Delivery. 3.01. Terms. The bonds issued hereunder shall be designated LiquorD si pensary Revenue Bonds of 1977, dated June 1, 1977, shall be issued in the denomination of $5,000 each, numbered serially from 1 to 40, inclusive, shall mature serially on December 1 in the respective years and amounts stated below, and shall bear interest from date of issue until paid or duly called for redemption at the respective annual rates stated opposite such maturity years and amounts: CFS 3.02 Interest; Paying Agent. Interest on the bonds shall be payable semiannually on June 1 and December 1 in each year, commencing June 1, 1978. The principal of and interest on the bonds shall be payable at American National Bank & Trust Co. in St. Paul, MN, which is designated as paying agent, or in the event of its resignation, removal or incapability of acting as paying agent, at the office of such successor paying agent as may be appointed by the Council, and the City agrees to pay the reasonable and customary charges of the paying agent for this service, and to account for such charges as an operating cost of the Municipal Liquor Dispensary. 3.03. Redemption Before Maturity. The bonds shall not be subject to redemption prior to maturity. 3.04. Execution and Delivery. The bonds and the interest coupons and the certificate on the reverse side of each bond shall be executed and authenticated in behalf of the City by the signatures of the Mayor and the City Administrator, and the corporate seal of the City shall be affixed to each bond. All signatures and the seal shall be printed, engraved or lithographed facsimiles except for the manual signature of one of these officers on the face of each bond. The bonds shall then be delivered by the Treasurer to the purchasers on receipt of the cash purchase price stated in Section 1.05. Section 4. Security Provisions; Bond Proceeds. 4.01. Existing Bond Resolution. Except as herein- after expressly provided, the provisions of Paragraphs 2, 4, 5 and 6 of the resolution adopted by the City Council on August 24, 1961 authorizing the issuance and sale of the 1961 Bonds are incorporated herein, and shall apply to the bonds herein authorized. Said Paragraphs read as follows: -9- Interest Interest' Year Amount Rate Year Amount Rate 1978 $10,000 5.00% 1983 $25,000 5.10% 1979 20,000 5.00% 1984 25,000 5.25% 1980 20,000 5.00% 1985 20,000 5.40% 1981 20,000 5.00% 1986 20,000 5.40% 1982 20,000 5.10% 1987 20,000 5.50% 3.02 Interest; Paying Agent. Interest on the bonds shall be payable semiannually on June 1 and December 1 in each year, commencing June 1, 1978. The principal of and interest on the bonds shall be payable at American National Bank & Trust Co. in St. Paul, MN, which is designated as paying agent, or in the event of its resignation, removal or incapability of acting as paying agent, at the office of such successor paying agent as may be appointed by the Council, and the City agrees to pay the reasonable and customary charges of the paying agent for this service, and to account for such charges as an operating cost of the Municipal Liquor Dispensary. 3.03. Redemption Before Maturity. The bonds shall not be subject to redemption prior to maturity. 3.04. Execution and Delivery. The bonds and the interest coupons and the certificate on the reverse side of each bond shall be executed and authenticated in behalf of the City by the signatures of the Mayor and the City Administrator, and the corporate seal of the City shall be affixed to each bond. All signatures and the seal shall be printed, engraved or lithographed facsimiles except for the manual signature of one of these officers on the face of each bond. The bonds shall then be delivered by the Treasurer to the purchasers on receipt of the cash purchase price stated in Section 1.05. Section 4. Security Provisions; Bond Proceeds. 4.01. Existing Bond Resolution. Except as herein- after expressly provided, the provisions of Paragraphs 2, 4, 5 and 6 of the resolution adopted by the City Council on August 24, 1961 authorizing the issuance and sale of the 1961 Bonds are incorporated herein, and shall apply to the bonds herein authorized. Said Paragraphs read as follows: -9- 2. In order to provide for the proper administra- tion of all funds which will be derived from the operation of the dispensary and in order to provide security for the bonds to be issued hereunder, the Village Treasurer shall maintain a separate Liquor Dispensary Municipal Building Fund with the fol- lowing subaccounts: (A) A Building Construction Account to which shall be credited all proceeds received from the sale of the bonds issued hereunder and any other amounts which may be appropriated for the purpose of constructing a municipal building to house the liquor dispensary. The moneys therein shall be used solely for the purpose of paying for the costs of construction of such building, and any surplus shall be transferred to the sinking and interest account hereinafter provided for. (B) An Operation and Maintenance Account to which shall be credited, as received, all receipts from the operation of the Municipal Liquor Dispensary. There shall be charged against such account all items of disbursement which by sound accounting practices constitute normal and reasonable costs of current operation and maintenance of the dispensary. Such costs shall include compensation for the manager and other necessary employees, insurance, utility services, costs of replacement of merchandise sold and similar expense items. There shall be retained in said account an amount which will be sufficient to pay all anticipated expenditures for such current operation and maintenance for one month in advance. Any balance therein shall be deemed net revenue. (C) A Sinking and Interest Account to which shall be credited on the first secular day of each calendar month, commencing on October 1, 1961, the amount of one -twelfth of the total amount of prin- cipal and interest due for said bonds issued pursuant to this resolution for the period from October 1, last, to October 1, next, from the net revenues in the Operation and Maintenance Account to pay prin- cipal and interest on the bonds until said bonds and interest have been fully paid. In addition, commencing with November 1, 1961, there shall be credited to a surplus account from the net revenues in the Operation and Maintenance Account the sum of $300 on the 1st day of each month until a reserve of $13,000 has be accumulated over and above the amount required to pay principal and interest coming -10- due within the next year. The monies constituting �-' the $13,000 reserve shall be used only to the extent necessary for the payment of principal and interest on said revenue bonds whenever other monies in the Sinking and Interest Account are insufficient thereof, and whenver so used said balance shall be restored by the transfer of additional monies from the net revenues in the Operation and Maintenance Account. All said monthly credits shall be cumulative and in the event the earnings are insufficient to make the credits required herein, the difference between the amount in fact credited and the amount required hereunder shall be made up out of the net revenue for the following period or periods. Provided, however, that the monies constituting the $13,000 reserve may be used to prepay bonds, when such prepayment will retire all bonds of this issue then outstanding. 4. The Village reserves the right and privilege of issuing and selling refunding bonds if and to the extent needed to refund maturing bonds of the issue herein authorized, if monies in the Sinking and Interest Account and Surplus Account are at any time insufficient for the payment in full of the principal and interest due thereon, which refunding bonds shall be payable from said fund on a parity with this issue as to interest, but shall mature subsequent to all of the bonds payable from said fund which are to remain outstanding upon the completion of such refunding. 5. The Village also reserves the right and privilege of issuing bonds payable from surplus net revenues of the liquor dispensary, without regard to the limitations set forth in paragraph 4, provided that such bonds are expressly made subject and junior to the lien and charge on the net revenues in favor of bonds payable from the Sinking and Interest Account and Surplus Account. Provided, however, that the Village may authorize the issuance of additional Municipal Building Revenue Bonds or other obligations payable from the revenues of the liquor dispensary and on a parity as to lien upon the earnings of such dispensary with the bonds authorized to be issued hereunder if, but only if, the net revenues derived from the ownership and operation of said dispensary, after provision for the payment of the necessary expenses for current operation, maintenance and ordinary repairs, shall have been, for each of the two calendar years immediately preceding the date of -11- such additional issue in an amount at least one and one-half times the average annual interest and principal requirements of the bonds issued hereunder and such additional bonds, during the then remaining life of the bonds issued hereunder. 6. The Village of Lakeville hereby certifies and represents to, and covenants and agrees with, the purchaser and holders from time to time of each bond issued hereunder as follows: 6.1. As long as any of said bonds are outstand- ing, the Village will continue its ownership and operation of said dispensary as a revenue producing utility and convenience, in the manner authorized and subject to the restrictions imposed by the Statutes and Laws of the State of Minnesota including sections 340.20 and 340.25, Minnesota Statutes relating to elections on the licensing of intoxicating liquors, and will not authorize the establishment or operation of any other establishment within the Village for the on -sale or off -sale of intoxicating liquors at retail, and the Village will maintain the dispensary building, furnishings, equipment and merchandise in good condi- tion, and free from all liens, provided that purchase money liens may be created on merchandise acquired for resale, or such merchandise may be acquired subject to liens existing at the time of acquisition. 6.2. If any properties constituting capital assets of the dispensary shall be sold and disposed of, it shall be only at their fair market value, and the proceeds of such sale or disposition shall be used either to procure other capital assets or applied to pay principal of and interest on bonds issued hereunder. No such sale or sales shall be made at times or prices such as to imperil the prompt and full payment of the bonds issued hereunder and the interest thereon. 6.3. The Village will procure and keep in force insurance on the dispensary building and the equip- ment and furnishings thereof and all stocks of merchandise, protecting against loss or damage by fire, tornado, windstorm, flood, theft and all other causes customarily insured against for like properties, in amounts sufficient to cover total loss thereof, and will procure and keep in force suitable fidelity bonds covering all employees handling monies of the dispensary. The bond of the liquor store manager, and bonds of other employees shall be in such amounts --12 - as the council shall determine will be adequate to protect the Village and the holders of bonds issued hereunder. In the event of loss covered by said insurance policies or bonds the proceeds shall be used to repair or restore the damage or to retire bonds payable from the revenues of said dispensary. The Village will further keep in force a liability insurance policy (covering its operation of said dispensary) in the maximum amount possible. Said policy shall specifically provide for the payment by the insurance company on behalf of the insured of all sums which the Village shall be obligated to pay by reason of liability imposed upon it by law for injuries or damage to persons, other than employees, including liability imposed by reason of M.S.A. 340.95. 6.4. The Village will continue its "Liquor Dispensary Funds" and establish and continue therein the accounts specified in paragraph 2 hereof and its subdivisions, and will cause proper and adequate books and records of account to be kept separate from all other records of the Village, reflecting all receipts and disbursements relating to said dispensary and its operation. All of said books - and records shall be open to inspection and copying at all reasonable times by the holder of any of said bonds or his agent or attorney, and the Village will, without cost, furnish copies of any portions thereof reasonably requested by any bondholder. The Village will cause annual operating statements to be pre- pared and an independent audit of books of the dispensary to be made by a competent public accountant, within ninety days after the close of such fiscal year, and will furnish a copy thereof without cost to the purchaser of said bonds, and, upon request, to any bondholder. 6.5. The gross and net revenues of the dis- pensary will be used and applied only as prescribed in paragraph 2 hereof and its subdivisions. The Village will at all times maintain operating policies concerning the purchase and sale of merchandise and do and perform all other acts and things necessary to assure that the net revenues collected will be at least sufficient to meet all payments of principal and interest on the bonds and to establish and main- tain the reserve therefor above defined. -13- 6.6. In the event that monies in said "Liquor Dispensary Fund" shall at any time be insufficient to pay principal and interest then due on bonds issued hereunder, said monies shall first be applied to pay the accrued interest on all such bonds then outstanding and the balance shall be applied in payment of maturing principal, in order of the serial numbers, lowest numbers first, of the bonds which are then due and payable. 6.7. The appropriation and pledge of revenues hereinabove made to the Liquor Dispensary Municipal Building Fund and its sub -accounts shall at all times constitute an irrevocable pledge and appropriation for the benefit and security of the holders of bonds issued hereunder, and the Village will not issue any additional Bonds or other evidences of indebted- ness or incur or suffer to be incurred any obliga- tion payable from said revenues, except as expressly authorized in paragraphs 4 and 5. 6.8. Each and all of the foregoing provisions of this resolution, which in any wise tend to secure or assure prompt and full payment of the principal of and interest on bonds issued hereunder will be promptly and faithfully performed and carried out by the Village and its officers and agents. 6.9. The holders of 20 percent or more in aggregate principal amount of bonds under this resolution and at any time outstanding may, either at law or in equity, by suit, action or other pro- ceedings protect and enforce the rights of all holders of bonds issued hereunder and then out- standing, or enforce and compel the performance of any and all of the covenants and duties herein specified to be performed by the Village or its officers and agents. 6.10. The Village further covenants and agrees that as long as any of the bonds issued hereunder or any bonds issued to refund the same remain outstanding, all real and personal properties acquired by the Village from the proceeds of bonds issued hereunder or from revenues derived from such properties or from the operation thereof shall be and are hereby irrevocably appropriated to be used only for the liquor dispensary purposes of the Village, including payment of the principal of and -14- interest on said bonds, and shall not be devoted to any other use or purpose; that upon any discontinuance of the operation of the liquor dispensary as a municipally owned revenue producing convenience or utility, while any of said bonds remain outstanding, all of the bonds then outstanding shall forthwith be and become immediately due and payable, notwith- standing any provisions therein or herein to the contrary, and all such real and personal property, including the stock of merchandise, shall be sold and disposed of as specified in part 6.2 hereof, and the net proceeds thereof and any working capital then on hand are hereby irrevocably appropriated to be used so far as needed for the prorata payment of the outstanding bonds and interest thereon. 4.02. Payment of Bonds. The principal of an interest on the bonds herein authorized shall be payable from the Sinking and Interest Account established by Paragraph 2(c) of said resolution dated August 24, 1961; and the payment of such principal and interest shall be secured by the reserve held in said Account; all on a parity as to both principal and interest with the 1961 Bonds. On the first day of each month commencing on July 1, 1977 there shall be credited to said account from the net revenues on hand in the Operation and Maintenance Account established by Paragraph 2(B) of said resolution, a sum equal to not less than one -twelfth of the total amount of principal and interest due on all bonds payable from said Account in the next twelve months, and any sum required to maintain the bond reserve as required by Section 4.03. 4.03. Increase of Reserve. There is hereby appro- priated to said Sinking and Interest Account from moneys now on hand in the General Fund, the sum of $ 18,000.00 , which shall be added to the $13,000 reserve presently held in said Account, and shall constitute a reserve securing the payment of the principal of and interest on all bonds payable from said Account. A reserve in the total amount of $ 30,847.50 shall thereafter be maintained in said Account by the transfer in accordance with Section 4.02 of additional net revenues from the Operation and Maintenance Account established by said resolution dated August 24, 1961 whenever necessary. 4.04. Bond Proceeds. The proceeds of the bonds herein authorized shall be credited to the Building Construc- tion Account established by Paragraph 2(A) of said resolution dated August 24, 1961. -15- 4.05. Liquor Licenses. Notwithstanding the pro- visions of Paragraph .1 of said resolution dated August 24, 1961, in any year after the payment of the 1961 Bonds the City may authorize and issue licenses for the establishment and operation of privately owned liquor dispensaries, selling on -sale, off -sale, or both, if the net revenues derived by the City from the operation of its Municipal Liquor Dispensary for the preceeding calendar year were not less than 125% of the aggregate amount of principal and interest to become due in the current year or any subsequent year on all bonds payable from said Sinking and Interest Account. 4.06. Particular Covenants. The City covenants and agrees with the holders from time to time of the bonds herein authorized, until such bonds and the interest thereon are fully paid or discharged as herein provided, that except as expressly provided in Section 4.05, it will fully and promptly perform and do all acts and thing's required in Paragraphs 2, 4, 5 and 6 of said resolution dated August 24, 1961. Section 5. Defeasance. 5.01. Effect. When the revenue bonds of any series issued under and secured by this resolution and all coupons appertaining thereto have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of such series of bonds shall cease. 5.02. Deposit With Paying Agent. The City may discharge the revenue bonds of any series and the coupons appertenant thereto which are due on any date by depositing with the paying agent or agents for such revenue bonds on or before that date a sum sufficient for the payment thereof in full; or if any revenue bond or coupon shall not be paid when due, it may nevertheless be discharged by depositing with the paying agent a sum sufficient for the payment thereof in full with interest accrued to the date of•such deposit. 5.03. Deposit With Paying Agent; Redemption. The City may also discharge any prepayable revenue bonds of any series which are called for redemption on any date in accordance with their terms, by depositing with the paying agent or agents on or before that date an amount equal to the principal, interest and redemption premium, if any, which are then due thereon, provided that notice of such redemption has been duly given as provided in the resolution authorizing such revenue bonds. i6- 5.04. Deposit In Escrow. The City may also at any time discharge any series of such revenue bonds in its entirety, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevo- cably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing interest payable at such times and at such rates and maturing or redeemable at the option of the holder on such dates as shall be required to provide funds sufficient to pay all principal, interest and redemption premiums to become due on all revenue bonds of the series on and before the maturity dates of the bonds or their earlier redemption date. Section 6. Registration of Revenue Bonds and Authentication of Transcript. 6.01. Registration. The City Administrator is authorized and directed to cause a copy of this resolution to be filed with the County Auditor of Dakota County, and to obtain from said County Auditor a certificate that the issue of revenue bonds hereunder has been duly entered upon his bond register. 6.02. Authentication. The City Administrator and other officers of the City and County are also authorized and directed to prepare and furnish to the purchaser of each series of revenue bonds hereunder and to the attorneys approving the legality thereof, certified copies of this resolution and of all other resolutions, proceedings and records of the City relating to the authorization and issuance of said revenue bonds, and all other proceedings and records reasonably required to show the validity or marketability of the revenue bonds; and all statements contained in such documents shall be deemed representations and recitals by the City of Lakeville. Section 7. Official Statement. Springsted Incorpo- rated has prepared and presented to this Council an Official Statement containing financial and other information relating to the City and the bonds herein authorized. Such Official Statement and its distribution to prospective purchasers of such bonds is hereby approved. Section 8. Arbitrage; Certificate of Mayor and Clerk. The Mayor and City Administrator being the officers of the City charged with the responsibility for issuing the obligations pursuant to this resolution, are authorized and directed to execute and deliver to the purchaser a certification in order to satisfy the provisions of Section 1.103-13 of the amended Income Tax Regulations (26 CFR Part 1) published in the Federal -17- Register, May 5, 1973. Such certification shall state that on the basis of the facts, estimates and circumstances in existence on the date of issue and delivery of the bonds as therein set forth, it is not expected that +the proceeds of the bonds will be used in such a manner that would cause the bonds to be arbitrage bonds, and the certification shall further state that to the best of the knowledge and belief of the certifying officers there are not other facts, estimates or circumstances that would materially change such expectation. Mayor OAttest:a2 City AdminisJ The motion for the adoption of the foregoing resolution duly seconded by Councilperson Zaun and upon vote being taken thereon, the following voted in favor thereof: Mako, Clarkson, Emond and Zaun and the following voted against the same: Curry whereupon the resolution was declared duly passed and adopted, and was signed by the Mayor, whose signature was attested by the City Administrator.