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HomeMy WebLinkAbout90-133 CERTIFICATION OF MINUTES RELATING TO . $535,000 GENERAL OBLIGATION MIJNICII'AL BUILDING REFUNDING BONDS, SERIES 19900 Issuer: City of Lakeville, Minnesota Governing Body: City Council Kind, date, time and place of meeting: A regular meeting held Monday, November 5, 1990 at 7:00 o'clock p.m., at the: City Hall, Lakeville, Minnesota. Members present: Zaun, Harvey, Mulvihill, Ruhmann, Sindt Members absent: None Documents Attached: Minutes of said meeting (including): RESOLUTION N0.90- 133 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $535,000 GENERAL OBLIGATION MUNICIl'AL BUILDING REFUNDING BONDS, SERIES 19900 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 rnrporation in my legal custody, from which they have been transcribed; that said documents are a rnrrect 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 5th day of November, 1990. City Clerk x The Clerk presented to the City Council affidavits showing publication in the official newspaper of the City and in Northwestern Financial Review of a Notice of Sale of $535,000 General Obligation Municipal Building Refunding Bonds, Series 1990C of the City for which bids were to be considered at this meeting in accordance with the resolution adopted by the Council on October 1, 1990. The affidavits were examined, found satisfactory and directed to be placed on file in the office of the Clerk. It was reported that 4 sealed bids had been received prior to the time stated in the Notice of Sale. The bids having been opened and tabulated, as provided on the Notice of Sale, were all found to conform to the Notice of Sale and the Official Terms of Offering and the purchase price, interest rates and net interest cost under the terms of each bid were found to be as follows: Interest Total Interest Cost Name of Bidder Purchase Price Rates And Net Average Rate (See attached) SPRINGSTED PUBLIC FINANCE ADVISORS 500 Elm Grove Road 85 East Seventh Place 135 North Pennsylvania Street Suite 101, P.O. Box 37 Suite 100 Suite 2015 Elm Grove, WI 53122 -0037 Saint Paul, MN 55101 -2143 Indianapolis, IN 46204 -2498 (414) 782 -8222 (612) 223 -3000 (317) 684 -6000 Fax: (414) 782 -2904 Fax: (612) 223 -3002 Fax: (317)684 -6004 2739 Second Avenue S.E. 512 Nicollet Mall 6800 College Boulevard Cedar Rapids, IA 52403 -1434 Suite 550 Suite 600 (319) 363 -2221 Minneapolis, MN 55402 -1017 Overland Park, KS 66211 Fax: (319) 363 -6999 (612) 333 -9177 (913) 345 -8062 Fax: (612) 333 -2363 Fax: (913) 345 -1770 $535,000 CITY OF LAKEVILLE, MINNESOTA GENERAL OBLIGATION MUNICIPAL BUILDING REFUNDING BONDS, SERIES I 990 AWARD: FBS INVESTMENT SERVICES, INC. SALE: November 5, 1990 Moody's Rating: A Interest Net interest Bidder Rates Price Cost Rate FBS INVESTMENT SERVICES, INC. 5.80% 1992 $531,148.00 $150,070.75 5.90% 1993 (6.2955 6.00% 1994 6.05% 1995 6.10% 1996 6.20% 1997 6.30% 1998 CRONIN COMPANY, INCORPORATED 5.90% 1992 $529,650.00 $153,378.75 MILLER, JOHNSON KUEHN, INC. 6.00% 1993 (6.4343 DAIN BOSWORTH INCORPORATED 6.10% 1994 John G. Kinnard Company Incorporated 6.15% 1995 6.20% 1996 6.25% 1997 6.35% 1998 ALLISON- WILLIAMS COMPANY 5.90% 1992 $529,650.00 $153,660.63 PIPER, JAFFRAY HOPWOOD 6.00% 1993 (6.446172 INCORPORATED 6.05% 1994 MOORE, JURAN AND COMPANY, 6.10% 1995 INCORPORATED 6.20% 1996 6.30% 1997 6.40% 1998 (Continued) Interest Net Interest Bidder Rates Price Cost Rate DEAN WITTER REYNOLDS INCORPORATED 5.90% 1992 $530,185.00 $154,079.38 LEHMAN BROTHERS CAPITAL MARKETS 6.00% 1993 (6.4637 PRUDENTIAL -BACHE CAPITAL FUNDING 6.05% 1994 SMITH BARNEY, HARRIS UPHAM 6.15% 1995 COMPANY INCORPORATED 6.25% 1996 6.35% 1997 6.45% 1998 These Bonds are being reoffered at par. BBI: -7.43 Average Maturity: 4.46 Years Member Harvey then introduced the followin g resolution and moved its adoption: RESOLUTION NO. 90 133 RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $535,000 GENERAL OBLIGATION MUNICIPAL BUILDING REFUNDING BONDS, SERIES 1990C BE IT RESOLVED by the City Council of the City of Lakeville, Minnesota (the Issuer), as follows: Section 1. Authorization and Sale (a) This Council, by Resolution No. 90-123 adopted October 1, 1990, authorized the issuance and public sale of $535,000 General Obligation Municipal Building Refunding Bonds, Series 1990C (the Bonds), of the Issuer to refund, on February 1, 1991, together with funds on hand, the Issuer's outstanding 1992 through 1998 maturities of the $795,000 General Obligation Municipal Building Bonds of 1983, dated June 1, 1983 (the Refunded Bonds). (b) Notice of Sale has been duly published. Pursuant to the Official Terms of Offering and the Notice of Sale, 4 sealed bids for the purchase of the Bonds were received at or before the time specified for receipt of bids. The bids have been opened, publicly read and considered and the purchase price, interest rates and net interest cost under the terms of each bid have been determined. The most favorable bid received is that of FsS Investment services, Inc. of Minneapolis Minnesota and associates (the Purchaser), to purchase the Bonds at a price of 531,148 plus accrued interest on all Bonds to the day of delivery and payment, on the further terms and conditions hereinafter set forth. (c) The sale of the Bonds is hereby awarded to the Purchaser and the Mayor and Clerk are hereby authorized and directed on behalf of the Issuer to execute a contract for the sale of the Bonds in accordance with the terms of the bid. The good faith check 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. The good faith checks of other bidders shall be returned to them forthwith. Section 2. Bond Terms; Registration; Execution and Deli very 2.01. Issuance of Bonds All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, existing, having happened and having been performed, it is now necessary for the City Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. 2.02. Maturities; Interest Rates; Denominations and Payment The Bonds shall be originally dated as of November 1, 1990, shall be in the denomination of $5,000 each, or any integral multiple thereof, of single maturities, shall mature on February 1 in the years and amounts stated below, without option of prior payment and shall bear interest from date of issue until paid at the respective annual rates set forth opposite such years and amounts, as follows: Year Amount Rate 1992 $60,000 5.80 1993 70,000 5.90 1994 75,000 6.00 1995 80,000 6.05 1996 80,000 6.10 1997 85,000 6.20 1998 85,000 6.30 The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each Bond at the principal office of the Registrar described herein, the principal amount thereof shall be payable by check or draft issued by the Registrar described herein. 2.03. Dates and Interest Payment Dates Each Bond shall bear a date of original issue of November 1, 1990. 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, exchanged or transferred. Interest on the Bonds shall be payable on each February 1 and August 1, commencing August 1, 1991, to the owners of record thereof as of the dose of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 2.04. Redemption The Bonds shall not be subject to redemption prior to maturity. -2- 2.05. Avvointment of Initial Registrar The Issuer hereby appoints First Trust National Association in Minneapolis 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. 2.06. Registration The effect of registration and the rights and duties of the Issuer and the Registrar with respect thereto shall be as follows: (a) Register 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) Improper or Unauthorized Transfer When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same -3- 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 Owners 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 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 Char 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, Lost, 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. W Authenticating Agent The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1, as amended. 2.07. Execution, 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 -4- 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 or she had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on such Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representative. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared, executed and authenticated, the Finance Director shall deliver them to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 208. Form of Bonds The Bonds shall be printed in substantially the following form: -5- [Face of the Bonds] UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF DAKOTA CITY OF LAKEVILLE GENERAL OBLIGATION MUNICIPAL BUILDING REFUNDING BOND, SERIFS 19900 Date of Rate Maturi Original Issue CUSIP November 1, 1990 REGISTERED OWNER: PRINCIPAL AMOUNT: i FOR VALUE RECEIVED, 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 sum 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 l in each year, commencing August 1, 1991, 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, without option of prior payment. 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, Transfer Agent and Paying Agent (the Registrar), 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 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 hereon. -6- 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 P ursuant to the Resolution mentioned within. as Registrar B Authorized Representative -7- [Reverse of the Bonds] This Bond is one of an issue in the aggregate principal amount of $535,000, all of like date and tenor, except as to maturity date, interest rate and denomination, issued pursuant to a resolution adopted by the City Council on November 5, 1990 (the Resolution), to refund certain of the Issuer's outstanding General Obligation Municipal Building Bonds of 1983, dated as of June 1, 1983, 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 of this issue are issuable only in fully registered form, in denominations of $5,000 or any integral multiple thereof, of single maturities. Bonds of this series have been designated as "qualified tax exempt obligations" pursuant to Section 265(b) of the Internal Revenue Code of 1986, as amended. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the 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 preliminary 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 as so required; that in and by the Resolution the Issuer has levied ad valorem taxes on all taxable property in the Issuer, which taxes will be collectible for the years and in amounts sufficient to produce sums not less than five percent in excess of the principal and interest when due on the Bonds of this series, and has appropriated such taxes to its Series 1990C Municipal Building Refunding Bond Sinking Fund for the payment of such principal and interest; but if necessary for the payment of such principal and interest when due, additional ad valorem taxes are required to 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 of indebtedness. (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) (Facsimile Signature) City Clerk Mayor -9- 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 (Cost) (Minor) TEN ENT as tenants by entireties under Uniform Transfers to Minors jT TEN --as joint tenants with right of Act survivorship and (State) not as tenants in common Additional abbreviations may also be used though not in the above list. -ia 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: Signature(s) must be guaranteed by a commercial bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: -11- Section 3. Use of Proceeds Upon payment for the Bonds by the Purchaser, the Finance Director shall deposit 519,650 of the proceeds of the Bonds in the sinking fund established for the Refunded Bonds to be applied to the redemption and prepayment of the callable maturities of the Refunded Bonds on February 1, 1991. The City Clerk shall cause notice of such redemption to be given as required by the resolution authorizing the issuance of the Refunded Bonds. Any funds remaining in said sinking fund after such redemption shall be transferred to the Bond Fund established pursuant to Section 4 hereof. Of the remaining proceeds of the Bonds, lo, goo shall be used to pay costs of issuance of the Bonds and 4,022.28 representing accrued interest and unused discount, shall be deposited in the Bond Fund established in Section 4. Section 4. Series 19900 Municipal Building Refunding Bond Sinking Fund The Bonds shall be payable from a separate and special Series 19900 Municipal Building Refunding Bond Sinking Fund (the Bond Fund) of the Issuer, which Bond Fund the Issuer agrees to maintain until the Bonds have been paid in full. If the money in the Bond Fund should at any time be insufficient to pay principal and interest due on the Bonds, such amounts shall be paid from other moneys on hand in other funds of the Issuer, which other funds shall be reimbursed therefor when sufficient money becomes available in said Bond Fund. The moneys on hand in the Bond Fund from time to time shall be used only to pay the principal of and interest on the Bonds. Into the Bond Fund shall be paid all Bond proceeds received from the Purchaser in excess of $529,650, all taxes collected pursuant to Section 5 hereof, and any other funds appropriated by the Council for the payment of the Bonds. Section 5. Pledge of Taxing Powers 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. In order to produce aggregate amounts not less than five percent in excess of amounts needed to meet when due the principal and interest payments on the Bonds, ad valorem taxes are hereby levied on all taxable property in the Issuer, said taxes to be levied and collected in the following years and amounts: Levy Year Collection Year Amount 1990 1991 $105,598 1991 1992 103,924 1992 1993 104,838 1993 1994 105,363 1994 1995 100,281 1995 19% 100,407 19% 1997 94,873 -12- Said taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, provided that the Issuer reserves the right and power to reduce said levies in accordance with the provisions of Minnesota Statutes, Section 475.61. Section 6. 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. Section 7. Registration 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. Section 8. Authentication of Transcript The officers of the Issuer and County Auditor of Dakota County 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. Section 9. Tax Covenant and Arbitrage Certificate (a) The Issuer covenants and agrees with the registered owners from time to time of the Bonds herein authorized, 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 payable on the Bonds to become subject to taxation under the Internal Revenue Code of 1986, as amended (the Code) and regulations issued thereunder, in -13- effect at the time of such action, and that it will take, or it will cause its officers, employees or agents to take, all affirmative actions within its powers which may be necessary to insure 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. The Issuer hereby certifies that all improvements financed and refinanced by the Refunded Bonds were and are owned and maintained by the Issuer as public improvements and are available for use by members of the general public on a substantially equal basis. The Refunded Bonds would not be considered "private activity bonds" or "private loan bonds applying the tests set forth in Section 141 of the Code. (b) 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 Sections 1.103- 13,1.103 -14 and 1.103 -15 of the Regulations, stating that on the basis of facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds, it is reasonably expected 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 applicable regulations. Section 10. Arbitrage Rebate Exemption It is hereby found and determined that the Bonds will qualify for the "small issuer" exception from arbitrage rebate set forth in Section 148(f)(4)(C)(v) and NO since (a) the aggregate amount of the Bonds does not exceed $5,000,000, (b) the average maturity of the Bonds does not exceed the average maturity of the Refunded Bonds, (c) no Bond has a maturity date which is later than the date which is 30 years from the date the Refunded Bonds were issued, (d) no Refunded Bond was an industrial development bond or private loan bond, (e) the Issuer has general taxing powers and (f) the Issuer did not issue in excess of $5,000,000 of bonds (other than industrial development bonds or private loan bonds) in the year 1983. Section 11. Qualified Tax- Exempt Obligations The City Council hereby designates the Bonds as "qualified tax- exempt obligations" for purposes of Section 265(b)(3) of the Code relating to the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of qualified tax- exempt obligations (within the meaning of Section 265(b)(3) of the Code) which will be issued by the Issuer and all subordinate entities during calendar year 1990 does not exceed $10,000,000. Section 12. Official Statement The Official Statement relating to the Bonds, dated October 22, 1990, prepared and delivered on behalf of the Issuer by Springsted Incorporated, is hereby approved, and the officers of the Issuer are hereby -14- authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency thereof. M Attest: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Councilmember Sindt and upon vote being taken thereon, the following voted in favor thereof: zaun, Harvey, Milvihill, Ruhmann and Sindt and the following voted against the same: None whereupon the resolution was declared duly passed and adopted. -15- i O ­4 N M d Ln to Cl 0) N 0) O1 ON M cn ON M O1 i O1 O1 O O Olt C (D r-� w e d .-•L Ln i Ln L a% N M t0 00 O h 00 i U .-4 LO LM Ln ON 00 M N d 00 N .Q 4C ti 69 tlf M d• Ln O O d- Ln d W Cl Co O (D O O CA W J O 1— Z Ln 0) cm d 0) N 0) eti Rf N to a. 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