HomeMy WebLinkAbout93-238
1.4
CERTIFICATION OF MINUTES RELATING TO
$630.000 GENERAL. OBLIGATION IMPROVEMENT REFUNDING BONDS,
SERIES 1993E
Issuer: City of Lakeville, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting held
Monday, November 15, 1993, at 7:00 o'clock P.M., at the City Hall,
Lakeville, Minnesota.
Members present: Duane R. Zaun, Patrick G. Harvey, Lynette Mulvihill,
Wenceslaus Ruhmann and Elizabeth L. Sindt
Members absent: None
Documents Attached:
Minutes of said meeting (including):
RESOLUTION NO. 93-238
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING
THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF
$630.000 GENERAL OBLIGATION IMPROVEMENT REFUNDING
BONDS, SERIES 1993E
I, the undersigned, being the duly qualified and acting
recording officer of the public corporation issuing the bonds
referred to in the title of this certificate, certify that the
documents attached hereto, as described above, have been carefully
compared with the original records of said corporation in my legal
custody, from which they have been transcribed; that said
documents are a correct and complete transcript of the minutes of
a meeting of the governing body of said corporation, and correct
and complete copies of all resolutions and other actions taken and
of all documents approved by the governing body at said meeting,
so far as they relate to said bonds; and that said meeting was
duly held by the governing body at the time and place and was
attended throughout by the members indicated above, pursuant to
call and notice of such meeting given as required by .law.
WITNESS my hand officially as such recording .officer
this ,lS''~' day of November, 1993.
r-
City Cl~=~k
The Clerk reported that 2 sealed bids had been
received at or prior to the time stated in the: Terms of Proposal,
and the bids having been opened, publicly read and considered,
were all found to conform to the Terms of Proposal, and the
highest and best bid of each bidder was found to be as follows:
(See next page)
•
' SPRINGSTED -2C ~c~,^ ;x,~ _
' Surre 2507 il
- , PUBIiG FINANCE ADVISORS Minneapolis. MN 55402 1800
(612) 333-9.177
Fax: (6121 345-5230
Home Office
85 East Seventh Place 16655 West Bluemound Road
Swte 100:. Swte 290
Sarnt Paul, MN 55101-2143 ':Brookfield. WI 53005-5935.
(612) 223-3000 (414) 782-8222
Fax: 1612) 223-3002 fax: (414) 782-2904
6800 College Boulevard
Surte 600
Overland Park, KS 66211 1533
(913J 345-8062
Fax: (913) 345-1770
1800 K Street NW
Swte 83 L
.Washington, DC 20006-2200
1202) a66-3:344
Fax: 1202) 223-1362
$640,000*
CITY OF LAKEVILLE MINNESOTA
GENERAL QBLIGATION IMPRQVEMENT REFUNDING BONDS, SERIES 1993E
AWARD: - FBS :INVESTMENT SERVICES, INC.
SALE: November f5,1993 Moody's Rating: A
interest ~ NoE interest True merest
der Rates Price ost Rate
S INVESTMENT SERVICES, iNC. 4.00% 1997-1.999 $632,960.00 $245,785.83 4:7751%
.4.20% .2000
4.3596 2001
4.50% 2002
4.70% 2003
4.80% 2004
4.90% 2005.
- 5.00% 2006-2007
NORWEST INVESTMENT SERVICES, INC. 3.75% 1.997 ' $632,960.00 ' $254,886.25 4.9470%
3.95% 1998
4.15% 1999
4.35% 2000
4.55% 2001
4.75% 2002
4.90% 2003
5.00% 2004
5.10% 2005
5.2096 2006
5.25%...2007
{Continued)........
REOFFERING. SCHEDULE OF THE PURCHASER
Rate:. Year Yield...
4.00% 1997 3.60%
.4.00% 1998: 3.80%
4.00% ` 1.999. Par
4.20% 2000 Par
4.35% 2001 Par-
4.50%' ' 2002 Par
4.70% 2003 Par.
4.80% 2004 Par
4.90% 2005 Par
5.00% 2006 Par
5:00% 2007 Par
BBI: `5.46.
Average Maturity: 8.06 Years
`Subsequent to bid opening, the issue size. was reduced by $10,000 to .$630,000. The 2002 and 2003 maturities were
- each reduced. by $5,000.
Member Mulvihill introduced the following
. resolution and moved its adoption:
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING
THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF
$630,000 GENERAL OBLIGATION IMPROVEMENT REFUNDING
BONDS, SERIES 1993E
BE IT RESOLVED by the City Council of the City of
Lakeville, Minnesota (the Issuer), as follows:
Section 1. Au ho i.a ion and Sal
1.01. Authorization. By Resolution No. 93-213 duly
adopted on October 18, 1993, this Council authorized the sale of
its General Obligation Improvement Refunding Bonds, Series 1993E
in the approximate principal amount of $640,000, subject to
adjustment in accordance with the Terms of Proposal approved by
Resolution No. 93-213 (the Bonds), the proceeds of which would be
used, together with any additional funds of the Issuer which might
be required, to refund in advance of maturity the 1997 through
2007 maturities, aggregating $1,350,000 in principal amount,. of
the City's outstanding General Obligation Improvement Bonds,
Series 1986A, dated August 1, 1986 (the Refunded Bonds), in a
"crossover refunding" as defined in Minnesota Statutes, Section
475.67, subd. 13.
1.02. Sale. Bids have been received in accordance with
Resolution No. 93-213 and the Terms of Proposal and the Council
has publicly considered all sealed bids presented in conformity
with the Terms of Proposal. The most favorable of such bids is
ascertained to be that of FBS Investment Services, Inc. ,
of Minneapolis Minnesota , and associates (the
Purchaser). In accordance with the Terms of Proposal, it is
hereby determined to issue the Bonds in the principal amount of
$ 630,000 at a price of $623.070.00 plus accrued interest,.
and upon the further terms and .conditions set forth herein.
1.03. Award. The sale of the Bonds is hereby awarded
to the Purchaser .and the Mayor and City Clerk are hereby
authorized and directed to execute a contract on behalf of the
Issuer for the sale of the Bonds in accordance with the terms of
the bid. The .good faith deposit of the Purchaser shall be
retained and deposited by the Issuer until the Bonds have been
delivered, and shall be deducted from the purchase price paid at
settlement.
1.04. ~avinas. It is hereby determined that:
(a) by the issuance of the Bonds the Issuer will realize
a substantial interest rate reduction, a gross savings of
approximately $468,037.65 and a present value savings
(using the yield on the Bonds, computed in accordance with
Section 148 of the Internal Revenue Code of 1986, as amended,
as the discount factor) of approximately $ 142,408.19 ;
and
(b) as of February 1, 1996 (the Crossover Date), the
present value of the debt service on the Bonds, computed to
their stated maturity dates, after deducting any premium, is
lower by 10.07 ~ (not less than 3~) than the sum of (i) the
present value of the debt service on the Refunded Bonds,
computed to their stated maturity dates, plus (ii) any
expenses of the refunding payable from a source other than
the proceeds of the Bonds or investment earnings thereon,
using the yield of the Bonds as the discount rate.
Section 2 . Bond Terms: R~~gi ra i on: .x ~ ~ on and
Del~verv.
2.01. Issuan of BondG. All acts, conditions and
things which are required by the Constitution and laws of the
State of Minnesota to be done, to exist, to happen and to be
performed precedent to and in the valid issuance of the Bonds
having been done, now existing, having happened and having been
performed, it is now necessary for the City Council to establish
the form and terms of the Bonds, to provide security therefor and
to issue the Bonds forthwith.
2.02. Matur; i 7n r Ra and D nomina ions.
The Bonds shall be originally dated as of December 1, 1993, shall
be in the denomination of $5,000 each, or any integral multiple
thereof, shall mature on February 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 set forth opposite such years and amounts, as follows.:
Year .Amount Rate Year Amount Rate
1997 $60,000 4.00 2003 $55,000 .4.700
1998 60,000 4.00 2004 55,-000 4.80
1999 60,000 4.00 2005 55,000 4.90
2000 60,000 4.20. 2006 55,000 5.00
2001 60,000 4.35 2007 55,000 5.00
2002 55,000 4.50
The Bonds shall be issuable only in -fully registered form. The
interest thereon and, upon surrender of each Bond, .the. principal
amount thereof shall be payable by check or draft issued by the
Registrar described herein.
2.03. Dates and In r G PaXment Dates. Upon the
initial delivery of the Bonds pursuant to Section 2.07, and upon
any subsequent transfer or exchange pursuant to Section 2.06, the
date of authentication shall be noted on each Bond so delivered,
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exchanged or transferred. Interest on the Bonds shall be payable
on each February 1 and August 1, commencing August 1, 1994, to the
owners of record thereof as of the close of business on the
fifteenth day of the immediately preceding month, whether or not
such day is a business day.
2.04. Redemption. Bonds maturing in 2002 and later
years shall be subject to redemption and prepayment at the. option
of the Issuer, in whole or in part, in such order as the Issuer
shall determine and within a maturity by lot as selected by the
Registrar in multiples of $5,000, on February 1, 2001, and on any
date thereafter, at a price equal to the principal amount thereof
and accrued interest to the date of redemption. The Clerk shall
cause notice of the call for redemption thereof to be published as
required by law, and at least thirty days prior to the designated
redemption date, shall cause notice of call for redemption to be
mailed, by first class mail, to the registered holders of any
Bonds to be redeemed at their addresses as they appear on the bond
register described in Section 2.06 hereof, but no defect in or
failure to give such mailed .notice of redemption shall affect the
validity of proceedings for the redemption of -any Bond not
affected by such defect or failure. Official notice of redemption
having been given as aforesaid, the Bonds or portions of Bonds so
to be redeemed shall, on the redemption date, become due and
payable at the redemption price therein specified and from and
after such date (unless the Issuer shall default in the payment of
the redemption price) such Bonds or portions of Bonds shall cease
to bear interest. Upon partial redemption of any Bond, a new Bond
or Bonds will be delivered to the owner without charge,
representing the remaining principal amount outstanding.
2.05. ~r~ointment of Initial Registrar. The Issuer
hereby appoints American National Bank and Trust Comgany ,
in St. Paul , Minnesota , as the initial bond .registrar,
transfer agent and paying agent (the Registrar). The Mayor and
the Clerk are authorized to execute and deliver, on behalf of the
Issuer, 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, such corporation shall be authorized to
act as successor Registrar. The Issuer agrees to pay the
reasonable and customary charges of the Registrar for the services.
performed. The Issuer reserves the right to remove the Registrar
upon thirty (30) days notice and upon the appointment of a
successor Registrar, in which event the predecessor Registrar
shall deliver all cash and Bonds in its possession to the
successor Registrar and shall deliver the bond register to the
successor Registrar.
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2,-06. 13~cyi_st_ration. The effect of registration and the
rights and duties of the .Issuer and the Registrar with respect
thereto shall be as follows:
(a) RecLster. The Registrar shall keep at its
principal corporate trust office a bond. register in which the
Registrar shall provide for the registration of ownership of
Bonds and the registration of transfers and exchanges of
Bonds entitled to be registered, transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of
any Bond duly endorsed by the registered owner thereof or
accompanied by a written instrument of transfer, in form
satisfactory to the Registrar, duly executed by the
registered owner thereof or by an attorney duly authorized by
the registered owner in writing, the Registrar shall
authenticate and deliver, in the name of the designated
. transferee or transferees, one or more new Bonds of a like
aggregate principal amount and maturity, as requested by the
transferor. The Registrar may, however,. close the books for
registration of any transfer after the fifteenth day of the
month preceding each interest payment date and until such
interest payment date.
(c) Exchange of Bonds. Whenever any Bonds are
surrendered by the registered owner for exchange the
Registrar shall 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. All Bonds surrendered upon any
transfer or exchange shall be promptly cancelled by the
Registrar and thereafter disposed of as directed by the
Issuer.
(e) ImAroz~er or Unauthorized Transfer. When. any Bond
is presented to the Registrar for transfer, the Registrar may
refuse to transfer the same until it is satisfied that the
endorsement on such Bond. or separate instrument of transfer
is valid and genuine and that the requested transfer is
legally authorized. The Registrar shall incur no liability
for the refusal, in good faith, to make transfers which it,
in its judgment, deems improper or unauthorized.
(f) Persons Deemed OwnQ,~rs. The Issuer and the
Registrar may treat the person in whose name any Bond is at
any time registered in the bond register as the absolute
owner of such Bond, whether such Bond shall be overdue or
not, for the purpose of receiving payment of, or on account.
of, the principal of and interest on such Bond and for all
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other purposes, and all such payments so made to any such
registered owner or upon the owner's order shall be valid and
effectual to satisfy and discharge the liability upon such
Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer or
exchange of Bonds, the Registrar may impose a charge upon the
owner thereof sufficient to reimburse the Registrar for any
tax, fee or other governmental charge required to be paid
with respect to such transfer or exchange.
(h) Mutilated, ?.ost, Stolen or Destroyed Bonds. In
case any Bond shall become mutilated or be destroyed, stolen
or lost, the Registrar shall deliver a new Bond of like
amount, number, maturity date and tenor in exchange and
substitution for and upon cancellation of .any such mutilated
Bond or in lieu of and in substitution for any such Bond
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 such Bond was destroyed, stolen or lost, and of
the ownership thereof, and upon furnishing to the Registrar
of an appropriate bond or indemnity in form, substance and
amount satisfactory to it, in which both the. Issuer and the
Registrar shall be named as obligees. All Bonds so
surrendered to the Registrar shall be cancelled by it and
evidence of such cancellation shall be given to the Issuer.
If the mutilated, destroyed, stolen or lost Bond has already
matured or been called for redemption in accordance with its
terms it shall not be necessary to issue a new Bond prior to
payment.
2.07. ExecLtion, Authentication and Delivery. The
Bonds shall be prepared under the direction of the Clerk and shall
be executed on behalf of the Issuer by the signatures of the Mayor.
and the Clerk, provided that all signatures may be printed,
engraved or lithographed facsimiles of the originals. In case any
officer whose signature or a facsimile of whose signature shall
appear on the Bonds shall cease to be such officer before the
delivery of any Bond, such signature or facsimile shall
nevertheless be valid and sufficient for all purposes, the same as
if he had remained in office until delivery. Notwithstanding such
execution, no Bond shall be valid or obligatory for any purpose or
entitled to any security hereunder until a certificate of
authentication on such Bond has been duly executed by the manual
signature of an authorized representative of the Registrar.
Certificates of authentication on different Bonds need not be
signed by the same representative. The executed certificate of
authentication on each Bond shall be conclusive evidence that it
has been authenticated and delivered under this Resolution. When
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the Bonds have been so prepared, executed and authenticated, the
Clerk shall deliver the same to the Purchaser upon payment of the
purchase price in accordance with the contract of sale heretofore
made and executed and the Purchaser shall net be obligated to see
to the application of the purchase price.
2.08. Form of Bonds. The Bonds shall be printed in
substantially the following form:
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[Face of the Bonds]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF LAKEVILLE
GENERAL OBLIGATION IMPROVEMENT REFUNDING BOND, SERIES 1993E
Interest Rate Ma Sri y Date Date of Original Issue CUSIP
December 1, 1993
REGISTERED OWNER:
PRINCIPAL AMOUNT:
THE CITY OF LAKEVILLE, COUNTY OF DAKOTA, MINNESOTA (the
Issuer), acknowledges itself to be indebted and hereby promises to
pay to the registered owner named above,. or registered assigns,
the principal amount specified above on the maturity date
specified-above, with interest thereon from the date hereof at the
annual rate specified above, payable on February 1 and .August 1 in
each year, commencing August 1, 1994, 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, all subject to the provisions referred to herein with
respect to the redemption of the principal of this Bond before
maturity. The interest hereon and, upon presentation and
surrender hereof, the principal hereof are payable in lawful money
of the United States of America by check or draft by
in
as Bond Registrar and Paying Agent, or its designated successor
under the Resolution described herein (the Registrar). 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 Issuer-have been and are hereby irrevocably pledged.
Additional provisions of this Bond are contained on the
reverse hereof and such provisions shall for all purposes have the
same effect as though fully. set forth in this place.
This Bond shall not be valid or become obligatory for any.
purpose or be entitled to any security or benefit under the
Resolution until the Certificate of Authentication hereon shall
have been executed by the Registrar by manual signature of one of
its authorized representatives.
IN WITNESS WHEREOF, the .City of Lakeville, County of
Dakota, Minnesota, by its City Council, has caused this Bond to be
executed on its behalf by the facsimile signatures. of the Mayor
~
and City Clerk and has caused this Bond to be dated as of the date
set forth below.
Date of Authentication:
CITY OF LAKEVILLE MINNESOTA
(facsimile signature) (facsimile signature)
City Clerk Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the
Resolution mentioned within.
as Registrar
By
Authorized Representative
[Reverse of the Bonds]
This Bond is one of an issue in the aggregate principal.
amount of $ , all of like date and tenor, except as to
maturity date, interest rate, denomination and redemption
provision, issued pursuant to a resolution adopted by the City
Council on November 15, 1993 (the Resolution), to provide funds to
refund certain outstanding general obligation bonds of the Issuer,
and is issued pursuant to and in full conformity with the
Constitution and laws of the State of Minnesota thereunto
enabling, including Minnesota Statutes, Chapter 475. The Bonds
are issuable only in fully registered form, in denominations of
$5,000 or any integral multiple thereof, of single maturities..
Bonds maturing in 2002 and later years are each subject
to redemption and prepayment at the option of the Issuer, in whole
or in part, in such order as the Issuer shall determine and,
within a maturity, by lot as selected by the Registrar in
multiples of $5,000 on February 1, 2001, and on any date
thereafter, at a price equal to the principal amount thereof plus
interest accrued to the date of redemption. The Issuer will cause
notice of the call for redemption to be published as required by
law and, at least thirty days prior to the designated redemption
date, will cause notice of the call thereof to be .mailed by first
class mail to the registered owner of any Bond to be redeemed at
the owner's address as it appears on the bond register maintained
by the Registrar, but no defect in or failure to give such mailed
notice of redemption shall affect the validity of proceedings for
the redemption of any Bond not affected by such defect or failure.
Official notice of redemption having been given as aforesaid, the
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Bonds or portions of Bonds so to be redeemed shall, on the
redemption date, become due and payable at the redemption price
therein specified, and from and after such date (unless the Issuer
shall default in the payment of the redemption price) such Bonds
or portions of Bonds shall cease to .bear interest. Upon partial
redemption of any Bond, a new Bond or Bonds will be delivered to
the registered owner without charge, representing the remaining
principal amount outstanding.
As provided in the Resolution and subject to certain
limitations set forth therein, this Bond is transferable upon the
books of the Issuer at the principal office of the 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 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 Issuer 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 Issuer and the 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
Issuer nor the Registrar shall be affected by any notice to the.
contrary..
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED
that all acts, conditions and things required by the Constitution
and laws of the State of Minnesota, to be done, to exist, to
happen and to be performed precedent to and in the issuance of
this Bond, in order to make it a valid and binding general
obligation of the Issuer in accordance with its terms, have been
done, do exist, have happened and have been performed in regular
and due form, time and manner as so required; that the Bonds are
payable from a separate debt redemption fund of the Issuer and
from ad valorem taxes, special assessments and other funds which
have been appropriated to such fund; that if necessary for payment
of such principal and interest, additional ad valorem taxes are
required be levied upon all taxable property in the Issuer without
limitation as to rate or amount; and that the issuance of this
Bond does not cause the indebtedness of the Issuer to exceed any
constitutional or statutory limitation.
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Form of certificate to be printed on the reverse side of
each Bond, following a full copy of the legal opinion;
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, County of Dakota, Minnesota, which
includes the within Bond, dated as of the date of original
delivery of and payment for the Bonds.
.(facsimile signature-city Glerk) (facGimil_e signature-Mayor).
The following abbreviations, when used in the .inscription
on the face of this Bond, shall be construed as though they were
written out in full according to applicable laws or regulations:
TEN COM as tenants UTMA as Custodian for
in common (Gust) (Minor)
under Uniform Transfers to Minors Act
TEN ENT as tenants by entireties (State)
JT TEN --as joint tenants with right of survivorship and not as
tenants in common
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 enlargement or any
change whatsoever.
Signature Guaranteed:
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Signature(s) must be guaranteed by an "eligible guarantor
institution" meeting the requirements of the Registrar, which
requirements include membership or participation in STAMP or such
other "signature guaranty program" as may be determined by the
Registrar in addition to or in substitution for STAMP, all in
accordance with the Securities Exchange Act of 1934, as amended.
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE:
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• Section 3. ~ of Pro ds. The Finance Director is
hereby authorized and directed, simultaneously with the delivery.
of the Bonds, to deposit the proceeds in the aggregate amount of
$.599,825.18 in escrow with First Trust National Association ,
in St. Paul , Minnesota (the Escrow Agent), a
banking institution whose deposits are insured by the Federal
Deposit Insurance Corporation and whose combined capital and
surplus is not less than $500,000, and to invest the funds so
deposited in securities authorized for such purpose. by Minnesota
Statutes, Section 475.67, subdivision 8, maturing on such dates
and bearing interest at such rates as are required to provide
funds sufficient, with cash retained in the escrow account, to pay
the interest to become. due on the Bonds to and including the
Crossover Date, and for the payment and redemption of the
principal amount of the Refunded Bonds on the Crossover Date. The
Mayor and Clerk are hereby authorized to enter into an Escrow
Agreement with the Escrow Agent, with respect to the Refunded
Bonds, establishing the terms and conditions for the escrow
account in accordance with Minnesota Statutes, Section 475.67. Of
the. remaining proceeds of the Bonds, $24,891.29 shall be
applied to pay issuance expenses and $ -0- shall be
deposited in the Sinking Fund created pursuant to Section 4.01
hereof .
Section 4. Sinking Fund and Tax Lew ,
4.01. Sinkinc,~ Fund. The Bonds shall be payable from a
separate General Obligation Improvement Refunding Bonds, Series
1993E Sinking Fund (the Sinking Fund) which shall be created and
maintained on the books of the Issuer as a separate debt
redemption fund until the Bonds, and all interest thereon, are
fully paid. There shall be credited to the Sinking Fund the
following:
(a) All receipts of principal and interest on the
investments held in the escrow account established in Section
3 to and including the Crossover Date (other than the sum of
$1,350,000 received from maturing investments on the
Crossover Date to be used to redeem the Refunded Bonds).
(b) All amounts on deposit in the debt service fund
maintained for the payment of the Refunded Bonds upon the
retirement of the Refunded Bonds and all future collections
of special assessments received with respect to the
improvements financed or refinanced by the Refunded Bonds.
(c) All ad valorem taxes levied and collected as
specified in Section 4.02 hereof.
(d) Any other funds appropriated by the Council for the
payment of the Bonds.
• /
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There are hereby established two accounts in the Sinking
Fund, designated as the "Debt Service Account" and the "Surplus
Account." During each Bond Year (i.e., each twelve month period
commencing on February 2 and ending on the following February 1),
as monies are received into the Sinking Fund, the Finance Director
shall first deposit such monies into the Debt Service Account
until an amount has been appropriated thereto sufficient to pay
all principal and interest due on the Bonds through. the end of the
Bond Year. All subsequent monies received in the Bond Fund during
the Bond Year shall be appropriated to the Surplus Account. If at
any time the amount on hand in the Debt Service Account is
insufficient for the payment of principal and interest then due,
the Finance Director shall transfer to the Debt Service Account
amounts on hand in the Surplus Account to the extent necessary to
cure such deficiency. Investment earnings (and losses) on amounts
from time to time held in the Debt Service Account and Surplus
Account shall be credited or charged to said accounts.
If the aggregate balance in the Sinking Fund is at any
time insufficient to pay all interest and principal then due on
all Bonds payable therefrom, the payment shall be made from any
fund of the Issuer which is available for that purpose, subject to
reimbursement from the Surplus Account in the Sinking Fund when
the balance therein is sufficient, and the City Council covenants
and agrees that it will each year levy a sufficient amount of ad
valorem-taxes to take care of any accumulated or anticipated
deficiency, which levy is not subject to any constitutional or
statutory limitation. .
4.02. TaxTax
Levv. For the prompt and full payment of the
principal of and interest on the Bonds as such payments
respectively become due, the full faith, credit and unlimited
taxing powers of the Issuer shall be and are hereby irrevocably
pledged. To provide moneys for the payment of the principal and
interest on the Bonds, in addition to the other funds specified in
Section 4.01, there is hereby levied upon all taxable property in
the Issuer a direct, annual ad valorem tax which shall be spread
upon the tax rolls for collection in the years and. amounts as
follows, with and as part of other general taxes of the Issuer, as
follows:
Levy Years Collection nears Amount
1995-2005 1996-2006 See attached Levy Computation
The taxes shall be irrepealable so long as any of the Bonds are
outstanding and unpaid; provided that .the Issuer reserves the
right and power. to reduce levies in the manner and to the extent
permitted by Minnesota Statutes, Section 475.61..
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Section 5. Defeasance. When all of the Bonds have been
discharged as provided in this section, all pledges, covenants and
other rights granted by this Resolution to the registered owners
of the Bonds shall cease. The Issuer may discharge its
obligations with respect to any Bonds which are due on any date by
depositing with the Registrar on or before that date a sum
sufficient for the payment thereof in full; or, if any Bond should
not be paid when due, it may nevertheless be discharged by
depositing with the Registrar a sum sufficient for the payment
thereof in full with interest accrued from the due date to the
date of such deposit. The Issuer may also at any time discharge
its obligations with respect to any Bonds, subject to the
provisions of law now or hereafter authorizing and regulating such
action, by depositing irrevocably in escrow, with a bank qualified
by law as an escrow agent for this purpose, cash or securities
which are authorized by law to be so deposited, bearing interest
payable at such time and at such rates and maturing or callable at
the holder's option on such dates as shall be required to pay all
principal, interest and redemption premiums to become due thereon
to maturity, or earlier designated redemption date.
Section 5. Tax Covenant and Arbitrage Matters.
5.01. Restrictive Action. The Issuer covenants and
agrees with the registered owners of the Bonds, .that it will not
take or permit to be taken by any of its officers, employees or
• agents any actions that would cause interest on the Bonds to
become includible in gross income of the recipient under the
Internal Revenue Code of 1986, as amended (the Code) and
applicable Treasury Regulations (the Regulations), and covenants
to take any and all actions actions within its powers to ensure
that the interest will not become includible in gross income of
the recipient under the Code and the Regulations. The Issuer
represents and covenants that the proceeds of the Refunded Bonds
were used to finance public improvements and facilities owned and
maintained by the Issuer and available for use by members'of the
general public on a substantially equal basis. The Issuer
covenants and agrees that, so long as the Bonds are outstanding,
the Issuer shall not enter into any lease, management agreement,
use agreement or other contract with any nongovernmental entity.
relating to the facilities or improvements so financed which would
cause the Bonds to be considered"private activity bonds" or
"private loan bonds" pursuant to Section 141 of the Code.
5.02 8rbitrac~e Cer~,ification. The Mayor and Clerk
being the officers of the Issuer charged with the responsibility
for issuing the Bonds pursuant to this Resolution, are authorized
and directed to execute and deliver to the Purchaser a certificate
in accordance with the provisions of Section 148 of the Code, and
applicable Regulations stating the facts, estimates and
circumstances in existence on the date of issue and delivery of
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the Bonds which make it reasonable to expect that the proceeds of
.the Bonds will not be used in a manner that would cause the Bonds
to be "arbitrage bonds" within the meaning of the Code and the
Regulations.
5.03. Arbitrage Rebate. The Issuer shall pay to the
United States the "rebate amount", if any, due with respect to the
Bonds at the times and in the manner .required by Section 148 of
the Code and applicable Regulations. The Issuer shall maintain
records of the interest rate borne by the Bonds and the
investments of the proceeds of the Bonds, including amounts held
in the escrow fund and Sinking Fund, and earnings thereon, in
adequate detail to enable the Issuer to calculate any rebate.
amount required to be paid to the United .States. The Issuer shall
pay the rebate amount to the United States at times and in
installments which satisfy Section 148 of the Code and applicable
Regulations, within 60 days after each computation date and within
60 days after the Bonds are fully discharged. The first
computation date shall be a date not later than 5 years after the
issue date of the Bonds and subsequent computation dates shall be
not later than 5 years after the previous computation date. Each
rebate installment payment must be in an amount that, when added
to the future value, as of the computation date, of previous
rebate payments made for the Bonds, equals at least 90~ of the
rebate amount as of that date. For the final computation date, a
final rebate payment .shall be paid in an amount that, when added
to the future value of previous rebate payments made for the
Bonds, equals 1000 of the rebate amount as of that date.
Calculations of the rebate amount and records relating to the
payment thereof shall be retained by the Issuer until at least 6
years following final discharge of the Bonds.
5.04. Oua ; ; d Tax-Ex_mpt Obligations. The Council
hereby determines and declares that the Issuer (including any
,subordinate entities or entities acting on behalf of the Issuer)
does not reasonably anticipate to issue in calendar year 1993
tax-exempt obligations in an aggregate principal amount greater
than $10,000,000 (exclusive of Private Activity Bonds). The
Council hereby specifically designates the Bonds as "qualified
tax-exempt obligations" within the meaning of Section 265 of the
Code, and covenants that it will not in any event designate in
calendar year 1993 more than $10,000,000 of its obligations as
such "qualified tax-exempt obligations."
Section 6. Redemption of Refunded Bonds and
r _;fi a ion o Pro . ding.
6.01. Refunded Bonds Call. The Clerk is directed to
call for redemption and prepayment the Refunded Bonds at their
earliest permissible redemption date (February 1, 1996) and to
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give notice of redemption in accordance with the resolution
authorizing issuance of the Refunded Bonds.
6.02. $ggistration of Bonds. The Clerk is hereby
authorized and directed to file a certified copy of this
resolution with the County Auditor of Dakota County and obtain a
certificate that the Bonds .have been duly entered upon the
Auditor's bond register and the tax required by law has been
levied.
6.03. ALthen i a-ion of Tran .rim. The officers of
the Issuer and the County Auditor are hereby authorized and
directed to prepare and furnish to the Purchaser and to Dorsey &
Whitney, Bond Counsel, certified copies of all proceedings and
records relating to the Bonds and such other affidavits,
certificates and information as may be required to show the facts
relating to the legality and marketability of the Bonds, as the
same appear from the books and records in their custody and
control or as otherwise known to them, and all such certified.
copies, affidavits and certificates, including any heretofore
furnished, shall be deemed representations of the Issuer as to the.
correctness of all statements contained therein.
6.04. Official Statement. The Official Statement
relating to the Bonds, dated November 3, 1993, prepared and
delivered on behalf of the Issuer by Springsted Incorporated, is
hereby approved, and the officers of the Issuer are hereby
authorized and directed to execute such certificates as may be
appropriate concerning the accuracy, completeness and sufficiency
thereof.
The motion for the adoption of the foregoing resolution was
.duly seconded by Councilmember Harvey and,. upon
vote being taken thereon, the following voted in favor thereof:
Duane R. Zaun, Patrick G. Harvey, Lynette Mulvihi-11, Wenceslaus
Ruhmann and Elizabeth L. Sindt
and the following voted against the same: None
whereupon the resolution was declared duly passed and adopted.
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LEVY COMPUTATION
•
Levy Years Collection Years Amount
1995 1996 $35,304
1996 1997 35,556
1997 1998 35,808
1998 1999 37,061
1999 2000 36,187
2000 2001 30,968
2001 2002 31,142
2002 2003 .31,200
2003 2004 31,201
2004 2005 31,143
-2005 2006 33,492
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