HomeMy WebLinkAbout88-151 CERTIFICATION OF MINUTES RELATING TO
$2,400,000 GENERAL OBLIGATION IMPROVEMENT BONDS,
SERIES 1988A
Issuer: City of Lakeville, Minnesota
Governing Body: City Council
regular
Kind, date, time and place of meeting: A council meeting
held November 21, 1988 at 7:00 o'clock P.M., at the City Hall.
Members present: Nelson, Zaun, Enright, Sindt, Harvey
Members absent : None
Documents Attached:
Minutes of said meeting (including):
RESOLUTION NO. 88-151
RESOLUTION AUTHORIZING ISSUANCE, CONFIRMING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING
FOR THE PAYMENT OF $2,400,000 GENERAL OBLIGATION
IMPROVEMENT BONDS, SERIES 1988A
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 suc ~ recor--ding o ficer
this 21st day of November, 1988.
f
Patrick McGarvey
Its City Clerk-Administrator
Councilmember Enright introduced the following
resolution and moved its adoption:
RESOLUTION N0. 88-151
RESOLUTION AUTHORIZING ISSUANCE, CONFIRMING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING
FOR THE PAYMENT OF $2,400,000 GENERAL OBLIGATION
IMPROVEMENT BONDS, SERIES 1988A
BE IT RESOLVED by the City Council of the City of
Lakeville, Minnesota, as follows:
Section 1. Authorization and Sale.
(a) For the purpose of paying the costs of the
improvement projects described in the Council resolution of
October 17, 1988 (Resolution No. 88-140), this Council has
heretofore determined that it is necessary to sell and issue
General Obligation Improvement Bonds of the City in the amount
of $2,400,000.
(b) Pursuant to the terms of the Official Terms of
Offering, bids for the Bonds were opened on November 16, 1988
by the City Administrator or his designee; the lowest and best
bidder was determined to be Cronin & Company, Incorporated
of Minneapolis Minnesota and associates, who offered to
purchase the Bonds at a price of $2,364,960 plus accrued
interest to the date of delivery, at the rates set forth in
said bid and in accordance with the provisions of the Official
Terms of Offering; and the Bonds were awarded to said bidder
subject to confirmation of sale by this Council.
(c) The sale of the Bonds to said bidder is hereby
confirmed and the City will proceed to issue the Bonds forthwith
in accordance with the provisions of this resolution.
Section 2. Bond Terms; Registration; Execution and
Delivery.
2.01. Maturities; Interest Rates; Denominations;
Payment. The Bonds shall be designated General Obligation
Improvement Bonds, Series 1988A, shall be originally dated as
of December 1, 1988, 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:
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Year Amount Rate Year Amount Rate
1990 $ 80,000 5.80°s 2001 $110,000 6.90°s
1991 140,000 6.00 2002 115,000 7.00
1992 100,000 6.10 2003 115,000 7.05
1993 100,000 6.20 2004 120,000 7.10
1994 100,000 6.30 2005 120,000 7.15
1995 100,000 6.40 2006 125,000 7.15
1996 100,000 6.50 2007 130,000 7.20
1997 100,000 6.60 2008 140,000 7.20
1998 100,000 6.70 2009 145,000 7.20
1999 105,000 6.75 2010 145,000 7.20
2000 110,000 6.80
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.
2.02. Dates; Interest Payment Dates. Each Bond shall
be dated as of the last interest payment date preceding the
date of authentication to which interest on the Bond has been
paid or made available for payment, unless (i) the date of
authentication is an interest payment date to which interest
has been paid or made available for payment, in which case such
• Bond shall be dated. as of the date of authentication, or (ii)
the date of authentication is prior to August 1, 1989, in which
case such Bond shall be dated as of December 1, 1988. The
interest on the Bonds shall be payable on February 1 and
August 1 in each year, .commencing August 1, 1989, to the owner
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.
2.03. Registration. The City shall. appoint, and
shall maintain, a bond registrar, transfer agent and paying
agent (the Registrar). The effect of registration and the
rights and duties of the City 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
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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
City.
(e) Improper 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 Owners. The City 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 Charges. For every transfer or
exchange of Bonds, the Registrar may impose a charge upo n
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.
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(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
City 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
City. 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.
2.04. Appointment of Initial Registrar. The City
hereby appoints Marquette Bank Minneapolis, National Association,
Minneapolis, Minnesota as the initial Registrar. The Mayor and
the City Clerk are authorized to execute and deliver, on behalf
. of the City, a contract with said 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 City agrees to
pay the reasonable and customary charges of the Registrar for
the services performed. The City reserves the right to remove
the Registrar upon 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.
2.05. Execution, Authentication and Delivery. The
Bonds shall be prepared under the direction of the City Clerk
and shall be executed on behalf of the City by the signatures
of the Mayor and the City 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
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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
the same to the purchaser thereof upon payment of the purchase
price in accordance with the contract of sale heretofore made
and executed, and said purchaser shall not be obligated to see
to the application of the purchase price.
2.06. Redemption. Bonds maturing in the years 1990
through 1997 shall not be subject to redemption prior to
maturity, but Bonds maturing in the years 1998 through 2010
shall be subject to redemption and prepayment at the option of
the City, in whole or in part, in inverse order of maturity
dates and by lot, selected by the Registrar in multiples of
$5,000, within any maturity, on February 1, 1997, and any
interest payment date thereafter, at a price equal to the
principal amount thereof and accrued interest to the date of
redemption. The City Clerk shall cause notice of the call for
redemption thereof to be published as required by law, and, at
least 30 days prior to the designated redemption date, shall
cause notice of the call thereof for redemption to be mailed,
by registered or certified mail, to the registered holders of
any Bonds to be redeemed at their addresses as they appear on
the bond register described in Section 2.03 hereof, and to the
bank at which principal and interest are then payable.
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
City shall default in the payment of the redemption price) such
Bonds or portions of Bonds shall cease to bear interest.
2.07. 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 BOND, SERIES 1988A
Date of
Rate Maturity Original Issue CUSIP
December 1, 1988
Registered Owner:
Principal Amount: Dollars
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Lakeville, a duly organized and existing municipal corporation
of Dakota County, Minnesota (the .City), acknowledges itself to
be indebted and for value received hereby promises t'o pay to
the registered owner specified above, or registered assigns,
the principal sum specified above on the maturity date
specified above, or earlier designated redemption date, 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, 1989, to the person in whose name
this Bond is registered at the close of business on the 15th
day (whether or not a business day) of the immediately
preceding month. The interest hereon and, upon presentation
and surrender hereof, the principal hereof are payable in
lawful money of the United States of America by check or draft
by in ,
as Bond Registrar and Paying Agent, or its
designated successor under the Resolution described herein.
For the prompt and full payment of such principal and interest
as the same respectively become due, the full faith and credit
and taxing powers of the City have been and are hereby
irrevocably pledged.
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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 Bond Registrar by manual signature of
one of its authorized representatives.
IN WITNESS WHEREOF, the City of Lakeville, 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-Administrator and has caused this Bond to be dated as of
the date set forth below.
Dated: CITY OF LAKEVILLE, MINNESOTA
(facsimile)
Mayor
Attest: (facsimile)
City Clerk-Administrator
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 a series in the aggregate
principal amount of $2,400,000, all of like date and tenor,
except as to denomination, maturity date, interest rate and
redemption provisions, issued, pursuant to a resolution adopted
by the City Council on November 21, 1988 (the Resolution), for
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the financing of local improvements within the City, and is
issued pursuant to and in full conformity with the Constitution
and laws of the State of Minnesota thereunto enabling,
including Minnesota Statutes, Chapters 429 and 475. The Bonds
of this series are issuable only as fully registered bonds, in
denominations of $5,000 or any multiple thereof, of single
maturities.
Bonds of this series have been designated as
"Qualified Tax-Exempt Obligations" pursuant. to Section 265 of
the Internal Revenue Code of 1986.
Bonds of this series maturing in 1997 and earlier
years are payable on their respective stated maturity dates
without option of prior payment, but Bonds having stated
maturity dates in 1998 and later years are each subject to
redemption and prepayment at the option of the City, in whole
or in part, and if in part in inverse order of maturity dates
and by lot, as selected by the Registrar in multiples of
$5,000, within any maturity, on February 1, 1997 and any
interest payment date thereafter, at a price equal to the
principal amount thereof plus interest accrued to the date of
redemption. The City will cause notice of the call for
redemption to be published as required by law and, at least
thirty days prior to the date specified for redemption, will
cause notice of the call thereof to be mailed, by registered or
certified 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 Bond Registrar, and to the bank at
which principal and interest are then payable. 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 City 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.
As provided in the Resolution and subject to certain
limitations set forth therein, this Bond is transferable upon
the books of the City at the principal office of the Bond
Registrar, by the registered owner hereof in person or by the
owner's attorney duly authorized in writing upon surrender
hereof together with a written instrument of transfer satis-
factory to the Bond Registrar, duly executed by the registered
owner or the owner's attorney; and may also be surrendered in
exchange for Bonds of other authorized denominations. Upon
such transfer or exchange the City will cause a new Bond ox
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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 gaid with respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the
person in whose name this Bond is registered as the absolute
owner hereof, whether this Bond is overdue or not, for the
purpose of receiving payment and for all other purposes, and
neither the City nor the Bond Registrar 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 City in accordance with its terms,
have been done, do exist, have happened and have been performed
as so required; that, prior to the issuance hereof the City has
covenanted and agreed to levy special assessments upon property
specially benefited by the local improvements financed by the
Bonds and ad valorem taxes on all taxable property in the City,
which special assessments and taxes will be collectible for the
years and in amounts sufficient to produce sums not less than
. 5% in excess of the principal of and interest on the Bonds of
this series when due, and has appropriated such special assess-
, ments and taxes to the Series 1988A Improvement Bond Account
for the payment of such principal and interest; that if
necessary for payment of such principal and interest, additional
ad valorem taxes are required to be levied upon all taxable
property in the City, without limitation as to rate or amount;
and that the issuance of this Bond does not cause the indebted-
, Hess of the City 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, Minnesota, which includes
the within Bond, dated as of the date of delivery of and
payment for the Bonds.
(Facsimile Signature) (Facsimile Signature)
City Clerk-Administrator Mayor
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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)
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.
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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 whatever.
Signature Guaranteed:
Signature(s) must be guaranteed by a national 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:
Section 3. Use of Proceeds. There is hereby
established on the official books and records of the City a
Series 1988A Improvement Construction Fund, and an account for
each improvement financed by the Bonds, and the Finance Director
shall continue to maintain each account until payment of all
costs and expenses incurred in construction of the improvement
for which it is established. To each account there shall be
credited from the proceeds of the Bonds, exclusive of unused
discount and accrued and capitalized interest, an amount equal
to the estimated cost of the improvement for which the account
was established, and from each account there shall be paid all
costs and expenses of said improvement. There shall also be
credited to each account all special assessments collected with
respect to the improvement financed by the Bonds, until all
costs of said improvement have been fully paid. After payment
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of all costs incurred with respect to each improvement, the
account for it shall be discontinued and any Bond proceeds
remaining therein may be transferred to the other funds or
accounts established for construction of other improvements
instituted pursuant to Minnesota Statutes, Chapter 429. All
special assessments on hand in each account when terminated or
thereafter received, and any Bond proceeds not so transferred,
shall be credited to the Series 1988A Improvement Bond Account
of the City. All proceeds of the Bonds deposited in the
Construction Fund will be expended solely for the payment of the
costs of the improvements referred to in Section 1 hereof (or
other improvements authorized pursuant to Chapter 429). All
improvements so financed will be owned and maintained by the
City and available for use by members of the general public on
an equal basis for so long as any Bonds remain outstanding. The
City shall not enter into any lease, use or other agreement with
any non-governmental person relating to the use of the
improvements or security for the payment of the Bonds which
might cause the Bonds to be considered "private activity bonds"
or "private loan bonds" pursuant to Section 141 of the Internal
Revenue Code of 1986 (the Code).
Section 4. Series 1988A Improvement Bond Account. So
long as any of the Bonds are outstanding and any principal of or
interest thereon unpaid, the Finance Director shall maintain a
separate debt service account on the official books and records
of the City to be known as the Series 1988A Improvement Bond
Account (hereinafter referred to as the Account), and the
principal of and interest on the Bonds shall be payable from the
Account. The City irrevocably appropriates to the Account
(a) any amount in excess of $2,364,000 received from the
purchaser of the Bonds; (b) capitalized interest in the amount
of $ 95,000 (c) all taxes .and special assessments levied
in accordance with this resolution; and (d) all other moneys as
shall be appropriated by the Council to the Account from time to
time. If the balance in the Account 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 City
which is available for that purpose, subject to reimbursement
from the Account when the balance therein is sufficient, and the
Council covenants and agrees that it will each year levy a
sufficient amount to take care of any accumulated or anticipated
deficiency, which levy is not subject to any constitutional or
statutory tax limitation.
Section 5. Special Assessments. The City hereby
covenants and agrees that, for the payment of the cost of
improvements financed by the Bonds the City has done or will do
and- perform all acts and things necessary for the final and
valid levy of special assessments in an amount not less than 20%
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of the cost of each of the improvements financed by the Bonds,
and the City estimates it will levy assessments in the aggregate
amount of $1,564,431. The principal of said assessments shall
be payable over 2-20 years with interest on unpaid installments
thereof from time to time at the estimated rate. of 8.60$ - 8.75$ per
annum. It is presently estimated that the principal and
interest on such special assessments will be collected in the
years and amounts set forth in Appendix I attached hereto. In
the event that any such assessment shall at any time be held
invalid with respect to any lot or tract of land, due to any
error, defect or irregularity in any action or proceeding taken
or to be taken by the City or by this Council or by any of the
officers or employees of the City, either in the making of such
assessment or in the performance of any condition precedent
thereto, the City hereby covenants and agrees that it will
forthwith do all such further things and take all such further
proceedings as shall be required by law to make such assessment
a valid and binding lien upon said property.-
Section 6. 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 City shall be and are hereby
irrevocably pledged. In order to produce aggregate amounts not
less than 5% in e$cess of the amounts needed to meet when due
the principal and interest payments on the Bonds, in addition to
the special assessments referenced above, ad valorem taxes. are
hereby levied on all taxable property in the City, said taxes to
be levied and collected in the following years and amounts:
Levy Collection
Year Year Amount
1988 1989 $51,209*
1989 1990 39,894
1990 1991 70,031
1991 1992 69,971
1992 1993 69,805
1993 1994 69,534
1994 1995 69,159
1995 1996 68,678
1996 1997 68,093,
1997 1998 72,652
1998 1999 76,804
1999 2000 75,295
2000 2001 78,919
2001 2002 76,813
2002 2003 79,894
2003 2004 77,292
* $53,375 was levied in 1988 in anticipation of issuing these Bonds
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Levy Collection
• Year Year Amount
2004 2005 79,878
.2005 2006 82.087
2006 2007 89,103
2007 2008 90,116
2008 2009 108,385
Said taxes shall be irrepealable as long as any of the Bonds are
outstanding and unpaid, provided that the City reserves the
right and power to reduce said levies in accordance with the
provisions of Minnesota Statutes, Section 475.61.
Section T. 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.
holders of the Bonds shall cease. The City 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 City may also discharge its
obligations with respect to any prepayable Bonds called for
redemption on any .date when they are prepayable according to
their terms, by depositing with the Registrar on or before that
date an amount equal to the principal, interest and redemption
premium, if any, which are then due, provided that notice of
such redemption has been duly given as provided herein. The
City 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 8. 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, together
with such additional information as the Auditor shall require,
and to obtain from said County Auditor a certificate that the
Bonds have been duly entered upon the bond register and the tax
required by law has been.'levied.
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Section 9. Authentication of Transcript. The officers
of the City and said County Auditor are hereby authorized and
directed to prepare and furnish to the purchasers of the Bonds,
and to the attorneys rendering an opinion as to the legality
thereof, 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 City as to the
correctness of all statements contained therein.
Section 10. Tax Covenant. (a) The City covenants and
agrees with the holders 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 Code and regulations issued thereunder, in
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.
(b) From and after February 1, 199.7, the Finance
Director shall ascertain, each time a deposit is made to the
Bond Fund, the amount on deposit in the Account. If the amount
on deposit therein ever exceeds by more than a "minor portion"
($100,000) the aggregate amount of principal and interest due
and payable on the Bonds through the next following February 1,
plus a reasonable carryover as permitted by the Code and
applicable regulations, such excess shall either (i) not be
invested except at a yield less than or equal to the yield on
the Bonds, computed in accordance with Section 148 of the Code,
or (ii) be used to purchase or to prepay and redeem Bonds. The
City reserves the right to amend the provisions of this section
at any time, .whether prior to or after the delivery of the
Bonds, if and to the extent the City Council determines that the
provisions of this section are not necessary, or otherwise
require amendment, in order to assure that the Bonds are not
arbitrage bonds under the Code and the applicable regulations.
Section 11. Arbitrage Rebate Exemption. It is hereby
found that the City has general taxing powers, that no Bond is a
"private activity bond" within the meaning of Section 141 of the
Code, that 95% or more of the net proceeds of the Bonds are to
-15-
be used for local governmental activities of the City, .and that
the aggregate face amount of .all tax-exempt obligations (other
than private activity bonds) issued by the City and all
subordinate entities thereof during the year 1988 is not
reasonably expected to exceed $5,000,000. Therefore, pursuant
to the provisions of Section 148(f)(4)(C) of the Code, the City
shall not. be required to comply with the arbitrage rebate
requirements of paragraphs (2) and (3) of Section 148(f) of the
Code.
Section I2. Qualified Tax-Exempt Obligations. In
order to enhance the marketability of the Bonds, and since the
City does not reasonably expect to issue in excess of $10,000,000
of governmental or qualified 501(c)(3) bonds duri-nq calendar
year 1988,-the Bonds are hereby designated as "Qualified Tax
Exempt Obligations" pursuant to Section 265(b) of the Code.
Passed: November 21, 1988.
Mayor
Attest•
Clerk-Administrator
•
The motion for the adoption of the foregoing resolution
was duly seconded by Councilmember Nelson
and upon vote being taken thereon, the following voted in favor
thereof: Nelson, Zaun, Enright, Sindt, Harvey
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.
-16-
APPENDIX I
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SPRINGSTED
, PUBLIC FINANCE ADVISORS
85 East Seventh Place,Suite 100
Saint Paul, Minnesota 55101.2143
612.223.3000
Fax: s12~2z3~3oo2 $2,400,000
CITY OF LAKEVILLE, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, .SERIES i 988A
AWARD: CRONIN 8~ COMPANY, INCORPORATED
DAIN BOSWORTH INCORPORATED
MILLER SECURITIES, INCORPORATED
And Assoclute
SALE: November 16, 1988 Moody's Ratinge A
Interest Netlnterest
Bidder Rates PricB Cost & Rate
CRONIN & COMPANY, INCORPORATED S . 80% 1990 $2 ~ 364, 960.00 $2 ~ 022 ~ b 12.92
DAIN BOSWORTH INCORPORATED 6.00% 1991 (7.I I3I%)
MILLER SECURITES, INCORPORATED 6.10% 1992
Park Investments Corporation 6.20% 1993
6.30% 1994
6.40% 1995
6.50% 1996
6.60% f997
6.70% 1998
6.75% 1999
6.80% 2000
6.90% 2001
.7.00% 2002
7.05% 2003
7 . i 09'0 2004
7.15% 2005-2006
7.20%2007 -2010
ALLISON-WILLIAMS COMPANY 5.90%.1990 $2,.367,840.00 $2,022,822.92
PIPER, JAFFRAY & HOPWOOD 6.009'0 1991 (7.113849°,/0)
INCORPORATED 6. I0% 1992
Juran & Moody, Incorporated 6.20% 1993
Moore, .Juran and Company, Incorporated 6.30% 1994
Robert W. Baird 8~ Company,. Incorporated 6.40% 1995
Peterson Financial Corporation 6.50% 1996
M.H. Novick & Company, .Incorporated 6.60% 1997
6.70% 1998
6.75°:0 1999
6.80% 2000
6.90% 200
7.00% 2002
7.05% 2003
7.10% 2004
7.15%.0 2005-2006
7.20%.0 2007 -2008
7.25% 2009-2010
Continued)
4
A
- Interest Netlnterest
Bidder ~ Rates Price Cost &'Rate
MERRILL LYNCH CAPITAL MARKETS 7.00°k 1990-2003 $2, 364, 000.00 $2; 024, 768.13.:5
7.05% 2004 (7.12068%)
7. I 0°k 2005
` 7.1.5°6:2006
7.20% 2007
7.25°l0 2008
7 . DO% 2009
6.375% 2010
DEAN WITTER REYNOLDS 6.50% 1990-1997 $2,365,280.70 $2,025,650. I3
INCORPORATED 6.60% 1998 (7.1237%)
PRUDENTIAL-BACHE SECURITIES 6.70% 1999
INCORPORATED 6..80% 2000
SHEARSON,LEHMAN HUTTON, INC. 6.90% 2001
SMITH BARNEY, HARRIS- UPHAM 7.:00%.2002-2003
& COMPANY 7. i0% 2004-2005
7.Z0% 2006-2010
GRIFFIN, KUBIK, STEPHENS & 7.50% 1990- 1999 $2, 364, t 00.00 $2, 038, 650.42
THOMPSON, INC. 7.00% 2000 (7.1.:69510%)
BLUNT, ELLIS & LOEWI, INC. 7. LD% 2001-2002
CLAYTON BROWN & ASSOCIATES, 7.20%2003
INCORPORATED ' 7.25%2004 -2007
6.:50% 2008 -20 I 0
FIRST BANK N.A.- 6.00% 1990-1991 $2,366,400.00 $2,.042,158.75.
NORWEST INVESTMENT SERVICES 6:10% 1992 (7.1818%)
American National-$ank and Trust Company 6:20% 1993
Miller &Schroeder-Financial, Incorporated 6.:30% 1.994
Dougherty, Dawkins, Strand & Yost 6:40% 1995
Incorporated 6.50% 1996
Marcotte Hurne & Associates, Incorporated 6:60% 1997
.Craig-Hallum, Incorporated 6.70%.1998
Marquette. Bank. Minneapolis, N.A. 6.75% 1`999
6.80% 2000
6'.90% 2001
7.00% 2002
7 . I-0% 2003
7.15%:2004
7.20% 2005 -2006
7 30% 2007 -2008
7.40% 2009 -20 I 0
5
(Continued)
_ Interest Netlnterest
Bidder Rates Price Cost & Rate
THE NORTHERN TRUST COMPANY 5.90% 1990 $2, 364, 377.00... $2, 068, 708.83
LaSalle National Bank 6.009'0 1991 (7.275%)
First Wisconsin National Bank 6.10% 1992
6.25% ! 993
6.40% 1994
..6.50% 1995
6.60% 1996
6.70% 1997
6.80% 1998
6.90% 199.9.
7.0096 2000
7.10% 200}-2002
7.20% 2003
7.25% 2004
7.3096 2005-2006
7.40% 2007 -20 I 0
REOFFERING SCHEDULE OF THE PURCHASER
Rate. Year Yield
5.80°,6 1990 Par
.6.00% 199 I Par
6.10% 1992 Par
6.20% 1993 Par
6.3090 1994 Par
6.40% 1995 Par
6.5090 t 996 Par
6.60% 1997 Par
6.70% 1998 Par
6.75% 1999 Par
6.80% 2000 Par
6.90% 2001 Par
7.00% 2002 Par
7.05% 2003 Par
7.1096 2004 Par
7.15% 2005 Par
7.15% 2006 Par
7.20% 2007 Par
7.20% 2008 7.20%
7.20% 2009 7.2.0%
7.20% 20 I 0 7.20%
BBI: 7.44
Average Maturity: l 1.85 Years