HomeMy WebLinkAbout89-160 CERTIFICATION OF MINUTES RELATING TO
$1,475,000 GENERAL OBLIGATION EQUIPMENT
CERTIFICATES OF INDEBTEDNESS, SERIES 1989B
Issuer: City of Lakeville, Minnesota
Governing Body: City Council
Kind, date, time .and place of meeting: A regular meeting
held Monday, November 20, 1989 at 7:00 o'clock p.m., at the
City Hall.
Members present: Zaun, Enright, Harvey, Nelson, Sindt
Members absent: None
Documents Attached:
Minutes of said meeting (including):
RESOLUTION N0. 89-160
RESOLUTION AUTHORIZING ISSUANCE, AWARDING
SALE, PRESCRIBING THE FORM AND DETAILS AND
PROVIDING FOR THE PAYMENT OF $1,475,000
• GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF
INDEBTEDNESS, SERIES 1989B
I, the undersigned, being the duly qualified and
acting recording officer of the public corporation issuing the
Obligations 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 Obligations; 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 ab`~ day of November, 1989.
Charlene iedges
• City erk
0605F
The City. Clerk presented to the Council affidavits
• showing publication in the official newspaper and in
Northwestern Financial Review of a Notice of Sale of $1,475,000
General Obligation Equipment Certificates of Indebtedness,
Series 19898, of the City, for which bids were to be considered
at this meeting in accordance with the resolution adopted by
the City Council on October 16, 1989. The affidavits were
examined, found satisfactory and directed to be placed on file
in the office of the City Clerk.
It was reported that 6 sealed bids for the
purchase of the Obligations had been received at or prior to
the time stated in the Notice of Sale. The bids having been
opened and tabulated as provided in the Notice of Sale, were
• then publicly read and considered, 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:
Purchase Interest Total Interest Cost
Bidder Price Rates And Net Average Rate
(See attached)
SPRINGSTED
_ ~ .PUBLIC FINANCE ADVISORS
85 East Seventh Place, Suite 100
Saint Paul; MN 55t01.2143
612.223.3000
.Fax: 612.223.3002
$1,475,000
CITY OF LAKEVILLE, MINNESOTA
GENERALOBLIGATION EQUIPMENT CERTIFICATES:'
OF INDEBTEDNESS, SERIES 19896
AWARD: THE NORTHERN TRUST COMPANY
And Associate
.SALE: November 20, 1:989 Moody's Rating: A
Interest Net Interest
Bidder Rates Price Cost Rate
THE NORTHERN TRUST COMPANY 5.80% 1990 $1;467,039.00 '$284,711.00
LaSalle Nationale Bank 5.85% 1991 (6.109%)
5.90% 1992
5, 95% 1993.
6..00°~ 1994:...
N~RWEST INVESTMENT SERVICES, 5.80% 1990-1994 $1,460,250.00 $2$5,030.00
INCORPORATED 6.1162°
( /o~
FIRST BANK NATIONAL ASSOCIATION
MERRILL LYNCH CAPITAL :MARKETS
American National:Bank Saint Pauf
Miller & Schroeder Financial, Incorporated
Dougherty, Dawkins, Strand
Yost, Incorporated
Marquette Bank Minneapolis, N,A.
PRUDENTIAL-BACHE CAPITAL FUNDING 5.80% 1990-1991 $1;,463,848.18 $286,991.82
SHEARSON LEHMAN HUTTON, INC. 5.94°~ 1992-1993 (6.1;586%)
SMITH BARNEY, HARRIS UPHAM & COMPANY 6.00% 1994
INCORPORATED
DEAN WITTER REYNOLDS INCORPORATED
PAINEWEBBER INCORPORATED
Mesrow Capital Markets
ALLISON-WILLIAMS COMPANY` 5.75°~ 1990 $1,466,150.00 ' $287,530.00
.Robert W. Baird & Company, Incorporated 5.80°~ 1991 (6.170172%)
Juran & Moody, Incorporated 5.90°~ 1992;
Piper, Jaffray & Hopwood Incorporated 6.00% 1993
Peterson Financial Corporation 6:10% 1994
M:H. Novick & Company,:Incorporated
Moore, Juran and Company, Incorporated
Indiana Office: Kansas Office Wisconsin Office lCOnt111Ued}
135 North Pennsylvania Street 6800 College Boulevard 500 Elm Grdve Road
Swte 2015 Suite 600 Suite 101
Indianapolis. W 46204.2498 Overland Park; KS 66211•t533 Elm Grove,.Wl 53122.0037
317.684.6000 913.345.8062 414.782.8222
Faz: 317.684.6004' Fax: 913.345.1770 Fax: 414.782.2904
Interest Net Interest
Bidder Rates Price Cost & Rate
CRONIN & COMPANY, INCORPORATED 5.90% 1990-1991 $1,467,772.50 $287,727.5
MILLER, JOHNSON & KUEHN, INC. 6.00% 1992-1993- ,(6.1744°
6.10% 1994
BLUNT, ELLIS & LOEWI, INCORPORATED 5.90°10 1990-1992 $1.,462,290.20 $290,609.80
CLAYTON BROWN & ASSOCIATES, 6.00% 1993-1994 (6.2362%)
INCORPORATED
GRIFFIN, KUBIK, STEPHENS & THOMPSON,
INCORPORATED.
REOFFERING SCHEDULE OF THE PURCHASER
Rate Year Yield
5.80% 1990 NRO
5.85% 1991 NRO
5.909'0. 1992 Pare
5.95% 1993 Par
6.00% 1994 .Par
BBL: 7>12
Average Maturity: 3.16 Years
Member Harvey introduced the
• following resolution and moved its adoption:
RESOLUTION NO. 89-160
RESOLUTION AUTHORIZING ISSUANCE, AWARDING
SALE, PRESCRIBING THE FORM AND DETAILS AND
PROVIDING FOR THE PAYMENT OF $1,475,000
GENERAL OBLIGATION EQUIPMENT CERTIFICATES OF
INDEBTEDNESS, SERIES 19898
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 adopted October 16,
1989, authorized the issuance and public sale of $1,475,000
General Obligation Equipment Certificates of Indebtedness,
Series 19898 (the Obligations) to finance the cost of acquiring
capital equipment for city purposes. The principal amount of
the Obligations does not exceed .25 percent of the market value
of taxable property in the Issuer, and the expected useful life
of all equipment to be financed is not less than 5 years.
(b) Notice of Sale has been duly published. Pursuant
to the Official Terms of Offering, 6 sealed bids for the
purchase of the Obligations 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
The Northern Trust Company ,
of Chicago Illinois and associates (the Purchaser) to
purchase the Obligations at a price of $ 1,467,039 plus accrued
interest on all Obligations to the day of delivery and payment,
on the further terms and conditions hereinafter set forth.
(c) The sale of the Obligations is hereby awarded to
the Purchaser and the Mayor and Clerk are hereby authorized and
directed to execute a contract on behalf of the Issuer for the
sale of the Obligations in accordance with the terms of the
bid. The good faith check of the Purchaser shall be retained
by the Finance Director until the Obligations have been
delivered. The good faith checks of other bidders shall be
returned to them forthwith.
r
Section 2. Obligation Terms; Registration; Execution
and Delivery.
2.01. Issuance of Obligations. 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
Obligations having been done, existing, having happened and
having been performed, it is now necessary for the Council to
establish the form and terms of the Obligations, to provide
security therefor and to issue the Obligations forthwith.
2.02. Maturities; Interest Rates; Denominations;
Payment. The Obligations shall be originally dated as of
December 1, 1989, shall be in the denomination of $5,000 each,
or any integral multiple thereof, shall mature on December 1,
without option of prior payment, in the respective years and
amounts stated below, 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
1990 $240,000 5.80
1991 280,000 5.85
1992 300,000 5.90
1993 315,000 5.95
1994 340,000 6.00
The Obligations shall be issuable only in fully registered
form. The interest thereon and, upon surrender of each
Obligation, the principal amount thereof shall be payable by
check or draft issued by the Registrar described herein.
2.03. Dates; Interest Payment Dates. Each Obligation
shall bear a date of original issue as of December 1, 19.89.
Upon the initial delivery of the Obligations pursuant to
Section 2.06 and upon any subsequent transfer or exchange
pursuant to Section 2.04, the date of authentication shall be
noted on each Obligation so delivered, exchanged or
transferred. Interest on the Obligations shall be payable on
each June 1 and December 1, commencing. June 1, 1990, 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. Registration. The Issuer shall appoint and
maintain a bond registrar, transfer agent and paying agent (the
Registrar}. The effect of registration and the rights and
duties of the Issuer and the Registrar with respect thereto
shall be as follows:
i
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(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 Obligations and the registration of transfers
and exchanges of Obligations entitled to be registered,
transferred or exchanged.
(b) Transfer of Obligations. Upon surrender for
transfer of any Obligation 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
Obligations 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 Obligations. Whenever any
Obligations are surrendered by the registered owner for
exchange the Registrar shall authenticate and deliver one
or more new Obligations of a like .aggregate principal
e amount and maturity, as requested by the registered owner
or the owner's attorney in writing.
(d) Cancellation. All Obligations surrendered upon
any transfer or exchange shall be promptly cancelled by the
Registrar and thereafter disposed of as directed by the
Issuer.
(e) Im roper or Unauthorized Transfer. When any
Obligation is presented to the Registrar for transfer, the
Registrar may refuse to transfer the same until it is
satisfied that the endorsement on such Obligation 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 Obligation
is at any time registered in the bond register as the
absolute owner of such Obligation, whether such Obligation
shall be overdue or not, for the purpose of receiving
payment of, or on account of, the principal of and interest
on such Obligation and for all other purposes, and all such
• payments so made to any such registered owner or upon the
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owner's order shall be valid and effectual to satisfy and
• discharge the liability upon such Obligation to the extent
of the sum or sums so paid.
(g) Taxes, Fees and Charges. For every transfer or
exchange of Obligations, 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
Obligations. In case any Obligation shall become mutilated
or be destroyed, stolen or lost, the Registrar shall
deliver a new Obligation of like amount, number, maturity
date and tenor in exchange and substitution for and upon
cancellation of any such mutilated Obligation or in lieu of
and in substitution for any such Obligation 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 Obligation destroyed, stolen or lost, upon
filing with the Registrar of evidence satisfactory to it
that such Obligation 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 Obligations 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
Obligation has already matured or been called for
redemption in accordance with its terms it shall not be
necessary to issue a new Obligation prior to payment.
Z.05. Appointment of Initial Registrar. The Issuer
hereby appoints Marquette Bank Minneapolis, National Association,
in Minneapolis Minnesota, as the initial 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 Obligations in its possession to the successor Registrar
and shall deliver the bond register to the successor Registrar.
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x.06. Execution, Authentication and Delivery. The
• Obligations 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 Obligations shall cease to be
such officer before the delivery of any Obligation, 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
Obligation 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
Obligation has been duly executed by the manual signature of an
authorized representative of the Registrar. Certificates of
authentication on different Obligations need not be signed by
the same representative. The executed certificate of
authentication on each Obligation shall be conclusive evidence
that it has been authenticated and delivered under this
Resolution. When the Obligations have been so prepared,
executed and authenticated, the Finance Director 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 not be obligated to see to
• the application of the purchase price.
2.07. Form of Obligations. The Obligations shall be
printed in substantially the following form:
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. [Face of the Obligations]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF LAKEVILLE
GENERAL OBLIGATION EQUIPMENT CERTIFICATE
OF INDEBTEDNESS, SERIES 1989E
Date of
Rate Maturity Original Issue CUSIP
December 1, 1989
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
FOR VALUE RECEIVED, the City of Lakeville, Dakota
County, 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, without option of
prior payment, with interest thereon from the date hereof at
the annual rate specified above, payable on June 1 and
December 1 in each year, commencing June 1, 1990, to the person
in whose name this Certificate 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 Minnesota, 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 Certificate 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.
i
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This Certificate 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, Dakota
County, Minnesota, by its City Council, has caused this
Certificate to be executed by the facsimile signatures of the
Mayor and City Clerk and has caused this Certificate to be
dated as of the date set forth below.
Date of Authentication:
(Facsimile Signature) (Facsimile Signature)
City Clerk Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Certificates delivered pursuant to
the Resolution mentioned within.
•
as Registar
By
Authorized Representative
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[Reverse of the Obligations]
This Certificate is one of an issue in the aggregate
principal amount of $1,475,000, issued pursuant to a resolution
adopted by the City Council on November 20, 1989 (the
Resolution), to finance the acquisition of capital equipment,
and is issued pursuant to and in full conformity with the
Constitution and laws of the State of Minnesota thereunto
enabling, including Minnesota Statutes, Section 412.301 and
Chapter .475. The Certificates of this series are issuable only
in fully registered form, in denominations of $5,000 or any
multiple thereof, of single maturities.
In the Resolution, the Council determined that in
calendar year 1989, the Issuer does not expect to issue tax
exempt obligations in an aggregate principal amount greater
than $10,000,000 (exclusive of "private activity bonds"), and
designated the Certificates as "qualified tax-exempt
obligations" within the meaning of 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 Certificate 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 Certificates of other authorized denominations.
Upon such transfer or exchange the Issuer will cause a new
Certificate or Certificates 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 Certificate is registered as the
absolute owner hereof, whether this Certificate 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 Certificate in order to make it a valid and
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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, prior to the issuance hereof
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 5% in
excess of the principal of and interest on the Certificates of
this issue when dine, and has appropriated such taxes to 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 Issuer, without limitation as to rate or amount; and that
the issuance of this Certificate 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 Certificate, 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 General Obligation Equipment Certificates of Indebtedness,
• Series 1989B, of the City of Lakeville, Dakota County,
Minnesota, which includes the within Certificate, dated as of
the date of initial delivery of and payment for the
Certificates.
(Facsimile Signature) (Facsimile Signature)
City Clerk Mayor
The following abbreviations, when used in the
inscription on the face of this Certificate, 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 the entireties
under Uniform Transfers to
JT TEN as joint tenants Minors
with right of
survivorship and Act
not as tenants in (State)
common
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Additional abbreviations may also be used.
•
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells,
assigns and transfers unto
the within Certificate and all rights thereunder, and hereby
irrevocably constitutes and appoints
attorney to transfer the within Certificate on the books kept
for registration thereof, with full power of substitution in
the premises.
Dated:
NOTICE: The signature to this
assignment must correspond
with the name as it appears
upon the face of the within
SIGNATURE GUARANTEE: Certificate in every
particular, without
alteration, enlargement
• or any change whatsoever.
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:
•
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Section 3. Series 1989B Equi ment Certificate Sinking
Fund. The Obligations to be issued shall be payable from a
separate Series 1989B Equipment Certificate Sinking Fund (the
Fund) of the Issuer, which Fund the Issuer agrees to maintain
until the Obligations have been. paid in full. If the money in
the Fund should at any time be insufficient to pay principal
and interest due on the Obligations, such amounts shall be paid
from moneys on hand in other funds of the Zssuer, which other
funds shall be reimbursed therefor when sufficient money
becomes available in the Fund. Into the Fund shall be paid all
proceeds received from the purchaser of the Obligations in
excess of $1,460,250, all taxes collected pursuant to Section 4
hereof, any excess Obligation proceeds remaining after
acquisition of the equipment is complete and any other funds
appropriated by the Council to the payment of the Obligations.
Section 4. Pledge of Taxing Powers. For the prompt
and full payment of the principal of and interest on the
Obligations as the 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 5% in excess of the amount
needed to meet when due the principal and interest payments on
the Obligations, ad valorem taxes are hereby levied on all
taxable property in the Issuer. The taxes are to be levied and
collected in the following years and amounts:
Levy Collection
Year Year Amount
1989 1990 $356,095
1990 1991 370,884
1991 19.92 374,685
1992 1993 371,850
1993 1994 378,420
The taxes shall be irrepealable as long as any of the
Obligations are outstanding and unpaid, provided that the
Issuer reserves the right and power to reduce the tax levies in
accordance with the provisions of Minnesota Statutes,
Section 475.61.
Section 5. Defeasance. When all of the Obligations
have been discharged as provided in this section, all pledges,
covenants and other rights granted by this resolution to the
holders of the Obligations shall cease. The Issuer may
discharge its obligations with respect to any Obligations 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 Obligation 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
*$356,095 was levied in 1989 in anticipation of this issue.
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• 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 Obligations, 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 the redemption date.
Section 6. Registration of Obligations. 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 may require,
and to obtain a certificate from the Auditor-that the
Obligations have been duly entered upon his bond register and
the tax required by law has been levied.
Section 7. Authentication of Transcript. The
officers of the Issuer and the County Auditor of Dakota County
are hereby authorized and directed to prepare and furnish to
the Purchaser, and to Dorsey & Whitney, the attorneys rendering
an opinion as to the legality thereof, certified copies of all
proceedings and records relating to the Obligations and such
other affidavits, certificates and information as may be
required to show the facts relating to the legality and
marketability of the Obligations, as the same appear from the
books and records in their custody and control or as otherwise
known to them, and alI 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 8. Tax Covenant.
(a) The Issuer covenants and agrees with the
registered owners from time to time of the Obligations that
it will not take, or permit to betaken by any of its
officers, employees or agents, any action which would cause
the interest payable on the Obligations to become subject
to taxation under the Internal Revenue Code of 1986, as
amended (the Code) and applicable Treasury Regulations (the
Regulations); and that it will take, or it will cause its
officers, employees or agents to take, all actions which
may be necessary to insure that such interest will not
become subject to taxation under the Code, including,
without limitation, compliance with Section 148 of the
Code. References to the Code herein include all
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. regulations, amended regulations and proposed regulations
issued thereunder as now existing or as hereafter amended
or groposed. The Issuer represents and covenants that the
capital equipment financed by the issuance of the
Obligations will be owned by the Issuer and used in its
municipal operations. The Issuer will not enter into any
lease or other agreement respecting the equipment which
would cause the Obligations to be considered "private
activity bonds" or "private loan bonds" pursuant to Section
141 of the Code.
(b) The Mayor and the Clerk being the officers of the
Issuer charged with the responsibility for issuing the
Obligations pursuant to this resolution, are authorized and
directed to execute and deliver to the Purchaser a
certificate in order to satisfy the provisions of Section
148 of the Code and the Regulations.
Section 9. Arbitrage Rebate Exemption. It is hereby
found that the Issuer has general taxing powers, that no
Obligation is a "private activity bond" within the meaning of
Section 141 of the Code, that 95% or more of the net proceeds
of the Obligations are to be used for local governmental
activities of the Issuer, and that the aggregate face amount of
all tax-exempt obligations (other than private activity bonds)
. issued by or on behalf of the Issuer and all subordinate
entities thereof during the year 1989 is not reasonably
expected to exceed $5,000,000. Therefore, pursuant to the
provisions of Section 148(f)(4)(C) of the Code, the Issuer
shall not be required to comply with the arbitrage rebate
requirements of paragraphs (2) and (3) of Section 148(f) of the
Code.
Section 10. Oualified Tax-Exempt Obligations. This
Council hereby designates the Obligations as "qualified
tax-exempt obligations" for purposes of Section 265(b)(3) of
the Code relating to the deductibility of certain interest
expenses of 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 or on behalf of the Issuer and
all subordinate entities thereof during calendar year 1989 does
not exceed $10,000,000.
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Adopted by the Council this 20th day of November, 1989.
a or
Attest:
City C1'er~
The motion for the adoption of the foregoing
resolution was duly seconded by Member Sindt and
upon vote being taken thereon, the following voted in favor
thereof: All members
. and the following voted against the same: None
whereupon the resolution was declared duly passed and adopted.
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LAKEVILLE, MINNESOTA Prepared November 20, 1989
'G 0 EQUIPMENT CERTIFICATES, 19896 By SPRINGSTED Lncorporated
POST SALE TAX LEVIES
Bond Date: 12/ 1/1989
Sale Date: 11/20/1989
Issue Size: $1,475,000
Annual LEVY + 5% Levy
Date Principal Rate Interest. Total Levy Year
6/ 1/1990 43,571.25 43,571.25
12/ 1/1990 240,000 5.800. 43,571.25 283,571.25 327,142.50 356,095* 1989
6/ 1/1991 36,611.25 36,611.25
12/ 1/1991 280,000 5.850 36,611.25 316,611.25 353,222.50 370,884 ; 1990
6/ 1/1992 28,421.25 28,421.25
12/ 1/1992 300,000 5.900 28,421.25 328,421.25 356,842.50 374,685 1991
6/ 1/1993 19,571.25 19,571.25
12/ 1/1993 315,000 5.950 19,571.25 334,571.2 5 354,142.50 371,850.. 1992
6/ 1/1994 10,200.00 10,200.00
12/ 1/1994 340,000 6.000 10,200.00 350.,200.00 360,400.00 378,420 1993
TOTALS $1,475,000 $276,750.00 $1,751,750.00 $1,751,750.00 $1,839,339
Discount (plus) $7,961.00
Net Interest Cost $284,711.00
Interest rounded on individual $5,000 denominations
* 56,095 was levied in 1989 in anticipation of this issue.
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