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HomeMy WebLinkAbout07-241 CITY OF LAKEVILLE RESOLUTION Date: December 17, 2007 Resolution No. 07-241 RESOLUTION AUTHORIZING ISSUANCE AND AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $3,675,000 GENERAL OBLIGATION STATE-AID STREET BONDS, SERIES 2007G BE IT RESOLVED. by the City Council of the City of Lakeville, Minnesota (the City), as follows: SECTION 1. SEALED PROPOSALS AUTHORIZATION AND SALE. 1.01. Sealed Proposals. It was reported that five (5) sealed proposals for the purchase of $3,675,000 General Obligation State-Aid Street Bonds, Series 2007G, were received prior to 12:00 o'clock noon, pursuant to the Terms of Proposal and the Official Statement distributed to potential purchasers of the. Bonds by Springsted Incorporated, financial advisor to the City. The proposals have been publicly opened, read and tabulated and were found to be as follows: {see ..attached).. 1.02. Authorization. This Council, by resolution duly adopted on November 19, 2007, authorized the issuance and sale of $3,675,000 aggregate principal amount of General Obligation State-Aid Street Bonds, Series 2007G (the Bonds) of the City to finance the cost of construction and improvement of various state-aid streets (the Projects).. The City has previously established a system of municipal state-aid streets in accordance with the rules of the Commissioner of Transportation and approved by written order of such Commissioner. The average annual debt service due on the Bonds and any other obligations issued by the City under Minnesota Statutes, Section 1.62.18, does not exceed 90 percent of the amount of the last annual allotment received by the City from the construction account in the municipal state-aid street fund established under Minnesota .Statutes, Chapter 162. 1.03. Sale. Pursuant to the Terms of Proposal and the Official Statement prepared on behalf of the- City by Springsted Incorporated, sealed proposals for the purchase of the Bonds were received at or before the time specified forreceipt of proposals. The proposals have been opened, publicly read and considered and the purchase price, interest rates and net interest cost under the terms of each proposal have been determined. The most favorable proposal received is that of Harris, N.A., in Chicago, Illinois, and associates (the Purchaser), to purchase the Bonds at a price of $3,737,952.85 plus accrued interest on all Bonds to the day of delivery and payment, on the further terms and conditions hereinafter set forth. 1.04. Award. The sale of the Bonds is hereby awarded to the Purchaser,. and the Mayor and City Clerk are hereby authorized and directed to execute a contract on behalf of the City for • the sale of the Bonds in accordance with the terms of the proposal. The good faith deposit of the 0 Purchaser shall be retained by the City until the Bonds have been delivered, and shall be . deducted from the purchase price paid at settlement. SECTION 2. BOND TERMS• REGISTRATION• EXECUTION AND DELIVERY. .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 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 December 15, 2007, shall be in the denomination of $5,000 each, or any. integral multiple thereof, of single maturities, shall mature on April 1 in the respective years and amounts stated below, and shall bear interest from date of issue until paid or duly called for. redemption at the respective annual rates set forth opposite such years and amounts, as follows: Year Amount Rate Year Amount Rate 2009 $270,000 4.00% 2014 $375,000 4.00% 2010 325,000 4.00 2015 390,000 4.00. 2011 335,000 4.00 2016 405.,000 4.00 2012 345,000 .4.00 2017 425,000 4.00 2013 365,000 4.00: 2018 440,000 4.00 • .The Bonds shall be issuable only in fully registered form. Interest shall be computed on the basis ofa 360-day year composed of twelve 30-day months. The interest on and, upon surrender of each Bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein; provided that, so long as the.Bonds are registered in the name of a securities depository, or a nominee thereof, in accordance with Section 2.08 hereof, principal and interest, shall be payable in accordance with the operational arrangements of the securities depository. 2.03. Dates and Interest Payment Dates. Each Bond shall bear a date of original issue of December 15,.2007. Upon initial delivery of the Bonds pursuant to Section 2.07 hereof, and upon any subsequent transfer or exchange pursuant to Section 2.06 hereof, the date of authentication shall be noted on each Bond so delivered,. exchanged or transferred. Interest on the Bonds shall be payable on April 1 and October 1 in each year, commencing October 1, 2008, 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.. Interest shall be computed on the basis of a 360-day year composed of twelve 30-day months. 2.04. Redemption. Bonds maturing in 2017 and later years shall be subject to redemption and prepayment at the option of the City, in whole or in part, in such order of maturity dates as the City may select and, within a maturity, by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in • multiples of $5,000, on April 1, 2016 and on any date thereafter, at a price equal to the principal amount thereof and accrued interest to the date of redemption. The Finance Director shall cause notice of the call for redemption thereof to be published as required by law and, at least thirty {30) but no more than sixty (60) days prior to the designated redemption date, shall cause notice of call for redemption to be mailed, by first class mail, to the registered holders of any Bonds to be redeemed at their addresses as they appear on the bond register described in Section 2.6 hereof, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified and from and after such date (unless the 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 chaxge, representing the remaining principal amount outstanding. 2.05. Appointment of Initial Re istrar. The City hereby appoints U.S. Bank National Association, in St. Paul, Minnesota, as the initial bond registrar, transfer agent and paying agent (the 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 c©mpany 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 xeserves 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 City and the Registrar with respect thereto shall be as follows: {a) Re ister. 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 i registered owner or the owner's attorney in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the City. (e) Imp~er or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the .endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. (f) Persons Deemed 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 tn~ 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 transferor exchange. of Bonds (except for an exchange upon a partial redemption of a Bond), 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. City and .the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be canceled 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. (i) 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. (j) .Valid Obli atg ions. All Bonds issued upon any transfer or exchange of • Bonds shall be the valid obligations of the City, evidencing the same debt, and entitled to • the same benefits under this Resolution as the Bonds surrendered upon such transfer or exchange. 2.07. 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 City Clerk, provided that all signatures may be printed, engraved or lithographed facsimiles of the. originals. Incase any officer whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same. as if he had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security 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 if has been authenticated and delivered under this Resolution. When the Bands have been so prepared, executed and authenticated, the City Clerk shall deliver the same to the Purchaser upon payment of the purchase price in accordance with. the contract of sale heretofore made and executed, and the Purchaser shall not be obligated to see to the application of the purchase price. 2.08. Securities Depository. (a) For purposes of this section the following terms shall have the following meanings: "Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the records of such Participant, or such person's subrogee. "Cede & Co." .shall mean Cede & Co., the nominee of DTC, and any successor- nominee of DTC. with. respect to the Bonds. "DTC" shall mean The Depository Trust. Company of New York, New York. "Participant" shall mean any broker-dealer, bank or other financial institution for which DTC holds Bonds as securities depository: "Representation Letter" shall mean the Representation Letter pursuant to which the sender agrees to comply. with DTC's Operational Arrangements. (b) The Bonds shall be initially issued as separately authenticated fully registered bonds, and one. Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon initial issuance, the ownership of such Bonds shall be registered in the bond register in the name of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee) as the sole and exclusive owner of the .Bonds registered in its name for the purposes of payment of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be redeemed, if any, giving any notice permittedor required to be given to registered owners of Bonds under this resolution, registering the transfer of Bonds, and for all other purposes • whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary. Neither the Registrar nor the City shall have any responsibility or obligation to any Participant, .any person claiming a beneficial ownership interest in the Bonds under or through DTC or any . Participant, or any other person which is not shown on the bond register as being a registered owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any Participant, with respect. to the payment by DTC or any Participant of any amount with respect to the principal of or interest on the Bonds, with respect to any notice which is permitted or required to be given to owners of Bonds under this resolution, with respect to the selection by DTC or any Participant of any person to receive payment in the event of a partial redemption of the Bonds, or with respect to any consent given or other action taken by DTC as registered owner of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC, the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with respect to such Bond, only to Cede & Co. in accordance with DTC's Operational Arrangements,. and all such payments shall be valid and effective to fully satisfy and discharge the City's obligations with respect to the principal of and interest on the Bonds to the extent of the sum or sums so paid. No person other than DTC shall receive an authenticated Bond for each separate stated maturity evidencing the obligation of the City to make payments of principal and interest. Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new nominee. in accordance with paragraph (e) hereof. (c) In the event the City determines that it is in the best interest of the Beneficial Owners that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and _ -the Registrar, whereupon DTC shall notify the Participants of the availability through DTC of Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance with paragraph (e) hereof. DTC may determine to discontinue providing its services with. respect to the Bonds at any time by giving notice to the City and the. Registrar and discharging its responsibilities with respect thereto under applicable law. In such event the Bonds will be transferable in accordance with. paragraph (e) hereof. (d) The execution and delivery of the Representation Letter to DTC, if not previously filed with DTC, by the Mayor or City Clerk is hereby authorized and directed. (e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b) or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted transferee in accordance with the provisions of this. resolution. In the event Bonds in the form of certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions of this resolution shall also apply to all matters relating .thereto, including, without limitation, the. printing of such Bonds in the form of bond certificates and the method of payment of principal of and interest on such Bonds in the form of bond certificates. 2.09. Form of Bonds. The Bonds shall be prepared in substantially the following form: • UNITED STATES OF AMERICA STATE OF MINNESOTA CITY OF LAKEVILLE GENERAL OBLIGATION STATE-AID STREET BOND, SERIES 2007G .Interest Maturity Date of Rate Date Original Issue - CUSIP April 1, 20_ December 15, 2007 Registered Owner: CEDE & CO. Principal Amount: THOUSAND DOLLARS CITY OF LAKEVILLE, MINNESOTA (the City), acknowledges itself to be indebted and for value received hereby promises to pay to the registered owner specified .above, or registered assigns, the principal sum specified above on the maturity date specified above, with interest thereon from the date of original issue specified above or from the most recent interest payment date to which interest has been paid or duly provided for,. at the annual rate specified above, payable on April 1 and October 1 in each year, commencing. October 1, 2008,. 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) ofthe-immediately preceding month, ah subject to theprovisions referred to herein with respect to the redemption of the principal of this Bond before maturity. Interest hereon shall be computed on the basis of a 360-day year composed of twelve 30-day months: 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 drawn on U.S. Bank National Association, in St. Paul, Minnesota, 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: This Bond is one of an issue in the aggregate principal amount of $3,675,000, issued pursuant to a resolution adopted by the City Council on December 17, 2007 (the Resolution), to finance the construction and improvement of various state-aid streets in 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, Chapter 475 and Section 162.18. The Bonds are issuable only in fully registered form, in denominations. of $5,000 or any integral multiple thereof, of single maturities. Bonds. maturing in 2017 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 such order of maturity dates as the City may select and by lot as selected by the Registrar (or, if applicable, by the bond depository in accordance with its customary procedures) in multiples of $5,000 as to Bonds maturing on the same date, on April 1, 2016, and on any date thereafter, at a price equal to the principal amount • thereof plus accrued interest to the date of redemption. Prior to the date specified for the redemption of any Bond prior. to its stated maturity date, the City will cause notice of the call -for redemption to be published as required by law, and, at least thirty and no more than sixty days prior to the designated redemption date, will cause notice of the call to be mailed by first class mail, to the registered owner of any Bond to be redeemed at the owner's address as it appears on the bond register maintained by the Registrar. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered owner without charge, representing the remaining principal amount outstanding. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City 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; this Bond may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City 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 City 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 City nor the Registrar shall be affected by any notice to the contrary. Notwithstanding any other provisions of this Bond, so long as this Bond is registered in the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any other nominee of The Depository Trust Company or other securities depository, the Registrar shall pay all principal of and interest on this Bond, and shall give all notices with respect to this Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of The Depository Trust Company or other securities depository as agreed to by the City. 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 Council has by the Resolution irrevocably pledged and appropriated to a separate and special debt service fund, to be maintained for the payment of this and other bonds issued under Section 162.18, as long as any of such bonds are outstanding, an amount of the moneys allotted and. to be allotted to-the City from its. account in the Municipal State-Aid Street Fund of the State of Minnesota sufficient to pay when due the principal of and interest on all bonds; that, if in any year the moneys so allotted and transferred to the Bond Fund should be insufficient to pay all such principal and interest due in such year, the City is obligated to pay such deficiency out of its general fund and to levy a direct, irrepealable, ad valorem tax upon all taxable property within its corporate limits for the repayment of such deficiency, which levy may be made without limitation as to rate or amount; that the issuance of this Bond, together with all other indebtedness of the City outstanding on the date of issuance of this Bond, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. . 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 has caused this Bond to be executed on its behalf by the .facsimile signatures of the Mayor and City Clerk. CITY OF LAKEVILLE, MINNESOTA. (Facsimile Signature City Clerk) (Facsimile Signature Mayor) CERTIFICATE OF AUTHENTICATION. This is one of the Bonds delivered pursuant to the Resolution mentioned within. Date of Authentication: U.S. BANK NATIONAL ASSOCIATION, as Registrar By .Authorized Representative 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 the applicable laws or regulations: TEN COM - as tenants in common UTMA.......as Custodian for (Gust) (Minor) TEN ENT - as tenants by the entireties under Uniform Transfers to Minors Act..... . (State) JT TEN - as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. .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, withouf alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by an eligible guarantor institution meeting the requirements of the Registrar, which requirements include membership or participation in STAMP or such other signature guaranty. program as may be determined by the Registrar in addition to or in substitution for STAMP., -all in accordance with the Securities Exchange Act of 1934, as amended. PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: [end of bond form] SECTION 3. GENERAL OBLIGATION STATE-AID STREET BONDS SERIES 2007E CONSTRUCTION FUND. There is hereby established on the official books and records of the City a General Obligation State-Aid Street Bonds, Series 2007E Construction Fund (the Construction Fund), which shall continue to be maintained until payment of all costs and expenses incurred in construction of the Projects to be financed by the Bonds. To the Construction Fund there shall be credited $3,7.37,952.85 of the proceeds of the Bonds and from the Construction Fund there shall be paid capital costs incurred by the City in the construction of the Projects and the costs of issuance of the Bonds. Any Bond proceeds not needed for the foregoing purpose shall be transferred to the General Obligation State-Aid Street Bonds, Series 2007E Bond Fund established in Section 4 hereof.. SECTION 4. GENERAL OBLIGATION STATE-AID STREET BONDS SERIES 2007E BOND FUND. There is hereby created and shall be maintained on the official books and records of the City a General Obligation State-Aid Street Bonds, Series 2007E Bond Fund (the Bond Fund), the moneys in which shall be used solely for the payment of the principal of and interest on the Bonds. Any proceeds of the Bonds received by the City upon delivery thereof to the Purchaser in excess of the amount required to be credited to the Construction Fund shall be deposited in the Bond Fund. There is hereby irrevocably appropriated to the Bond Fund, out of moneys allotted and to be allotted to the City from its account in the Municipal State-Aid Street Fund of the State of Minnesota, such amount as shall be sufficient to pay the principal of and interest on the Bonds when due, on the dates and in the amounts as follows: Year Amount Rate 2009 $270,000 4.00% Year Amount Rate. 2010 325,000 4.00 2011 335,000 4.00 2012 345,000 4.00 . 2013 365,000 4.00 2014 375,000 4.00 2015 _ 390,000 4.00 2016: 405,000 4.00 2017 425,000 4.00 2018 440,000 4.00 The Finance Director shall follow the procedure set forth in Minnesota Statutes, Section 162.18, Subdivision 4, for obtaining such funds. All interest on the Bonds shall be paid out of the City's normal maintenance account in the- Municipal State-Aid Street Fund. If at any time the moneys in the Bond Fund should be insufficient to pay all principal and interest due on the Bonds, the Finance Director shall nevertheless pay the same from any moneys on hand in the general fund of the City, and. the moneys so used -shall be restored to the general fund from the moneys next received by the City from the Construction or Maintenance Account in he .Municipal State-Aid Street Fund of the State of Minnesota, which are not required for the payment of additional principal and interest.. In order to ensure compliance with the Code and applicable Regulations (as defined in Section 7.01. hereof), the Finance Director, upon allocation of any funds to the Bond Fund, shall ascertain the balance then on hand in the Bond Fund. If it exceeds the amount of principal and .interest on the Bonds to become due and .payable through April 1 next following, plus a reasonable carryover equal to 1/12th of the debt service due in the following bond year, the excess shall (unless an opinion is otherwise received from bond counsel) be used to prepay or purchase Bonds, or invested at a yield which does not exceed the yield on the Bonds calculated in accordance with Section 148 of the Code. 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 City shall be and are hereby irrevocably pledged. However, it is estimated that the state-aid street allotments appropriated for the payment of such principal and interest in Section 4 hereof will be sufficient to pay the principal and interest when due, and accordingly no tax is levied at this time. However, if an actual or anticipated deficiency should arise in the receipt of such allotments, the City shall levy an ad valorem tax upon all taxable property in the City in accordance with Minnesota Statutes, Section 475.61, in an amount sufficient to eliminate the actual or anticipated deficiency. 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 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 Tawas 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 and interest to become due thereon to maturity or earlier designated redemption date. Provided, however, that if such deposit is made more than ninety days before the maturity date or specified redemption date of the Bonds to be discharged, the City shall have received a written opinion of Bond Counsel to the effect that such deposit does not adversely affect the exemption of interest on any Bonds from federal income taxation and a written report of an accountant or investment. banking firm verifying that the deposit is sufficient to pay when due all of the principal and interest on the Bonds to be discharged on and before their maturity dates or earlier designated redemption date. SECTION 7. TAX COVENANTS ARBITRAGE MATTERS AND CONTINUING DISCLOSURE. .7.01. General Tax Covenant. The City covenants and agrees with the registered owners of the Bonds that it will not take, or permit to be taken by any of its officers, employees or agents, any actions that would cause interest on the Bonds to become includable in gross income of the recipient under the Internal Revenue Code of 1986, as amended (the Code) and applicable Treasury. Regulations (the Regulations), and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become includable in gross income of the recipient under the. Code and the Regulations. In particular, the City covenants and agrees that all proceeds of the Bonds deposited: in the Construction Fund will be expended solely for the payment of the costs of the Projects. All improvements so financed will be owned and maintained by the City and available for use by members of the general public on a substantially equal basis. The City shall not enter into any lease, use. or other agreement with any non- governmental person relating to the. use of the Projects or security for the payment ofthe Bonds which might cause the Bonds to be considered "private activity bonds" or "private loan bonds" pursuant to Section 141 of the Code. 7.02. Reimbursement. The City certifies that the proceeds. of the Bonds will not be used by .the City to reimburse itself for any expenditure with respect to the equipment which the City paid or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect to such prior expenditures, the City shall have made a declaration of official intent which complies with the provisions of Section 1.150-2 of the Regulations; provided that this certification shall not apply (i) with respect to certain de minimis expenditures, if any, with respect to the equipment meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or (ii) with respect to "preliminary expenditures" for the equipment as defined. in Section 1.150- 2(f)(2) of the Regulations which in the aggregate do not exceed 20% of the "issue price" of the Bonds. 7.03. Arbitrage Certification. The Mayor and City Clerk being the officers of the City charged with the responsibility for issuing the Bonds-pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code, and applicable Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which-make it reasonable to expect that the proceeds of the Bonds willnot be used in a manner that would cause the Bonds to be "arbitrage bonds" within the meaning of the Code and Regulations. 7.04. Arbitrage Rebate. The City acknowledges that the. Bonds are subject to the rebate requirements of Section 148(f) of the Code: The City covenants and agrees to retain such records, makesuch determinations, file such reports and documents and pay such amounts at such times as are required under said Section 148(f) and applicable Regulations to preserve the exclusion of interest on the Bonds from gross income for federal income tax .purposes, unless-the Bonds qualify for an exception from the rebate. requirement pursuant to one of the spending .exceptions. set forth in Section 1.148-7 of the Regulations and no "gross proceeds" of the Bonds (other than amounts constituting a "bona fide debt service fund") arise during or after the expenditure of the original proceeds thereof. 7.05_. ;Not Qualified Tax-Exempt Obii~;ations. The City does not designate 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. 7.06. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the public availability of certain information relating to the Bonds and the security therefor and to permit the Purchaser and other participating underwriters in the primary offering of the Bonds to comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities. Exchange Act of 1934 (17 C.F.R. § 240.15c2-12), relating to continuing disclosure (as in effect and interpreted from dime to time, the Rule), which will .enhance the marketability of the Bonds, the City hereby makes the following covenants and agreements. for the benefit of the Owners (as hereinafter defined) from time to time. of the outstanding Bonds.. The City is the only obligated person in respect of the Bonds within the meaning of the Rule for purposes of identifying the entities in respect of which continuing disclosure must be made. The City has complied. in all material respects with any undertaking previously entered into by it under the Rule. If the City fails. to comply with any provisions of this section, any person aggrieved thereby, including the Owners of any outstanding Bonds, may take whatever action at Iaw or in equity may appear necessary or appropriate to enforce performance and observance of any agreement or covenant contained in this section, including an action for a writ of mandamus or specific performance. Direct; indirect, consequential .and punitive damages shall not be recoverable for any default hereunder to the extent permitted. by law. Notwithstanding anything to the contrary contained herein, in no event- shall a default. under this section constitute a default under the Bonds or under any other provision of this resolution. As used in this section, Owner or Bondowner means, in respect of a Bond, the registered owner or owners thereof appearing in the bond register maintained by-the Registrar or any Beneficial Owner (as hereinafter defined) thereof, if such Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and substance reasonably satisfactory to the Registrar.. As used herein, Beneficial Owner means, in respect of a Bond, any person or entity which (i) has the power, directly or indirectly, to vote or consent with respect to, or to dispose of ownership of, such Bond (including persons or entities holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the .owner of the Bond for federal income tax purposes. (b) Information To Be Disclosed. The City will provide, in the manner set forth in subsection (c) hereof, either. directly or indirectly through an agent designated by the City, the following .information at the following times:. (1) on or before 365 days after the end of each fiscal year of the City, commencing with the fiscal year ending December 31,-2007, the following financial information and operating data in respect of the City (the Disclosure Information): (A) the audited financial statements of the City for such fiscal year, containing balance sheets as of the end of such fiscal year and a statement of operations, changes in fund balances and cash flows for the fiscal year-then ended, showing in comparative form such figures for the preceding fiscal year of the City, prepared in accordance with generally accepted accounting principles promulgated by the .Financial Accounting. Standards Board as modified in accordance with the governmental accounting standards promulgated by the Governmental Accounting Standards Board or as otherwise provided under Minnesota law, as in effect from time to time, or, if and to the extent such .financial statements have not been prepared in accordance with such generally .accepted accounting principles for reasons beyond the reasonable control of the City, noting the. discrepancies therefrom and the effect thereof, and certified as to accuracy .and completeness in all material respects by the fiscal officer of the City; and (B) to the extent not included in the financial statements referred to in paragraph (A) hereof, the information for such fiscal year or for the period most recently available of the type contained in the. Official Statement under headings: City Property Values.; City Indebtedness; and City Tax Rates, Levies and Collections. Notwithstanding the foregoing paragraph, if the audited financial statements are not available by the date specified, the .City shall provide on or before such date unaudited financial statements in the format required for the audited financial statements as part of the Disclosure Information and, within 10 days after the receipt thereof, the City shall provide the audited financial statements.. Any or all of the Disclosure Information may be incorporated by reference, if it is updated as required hereby, from other documents, including official statements, which have been submitted to each of the repositories hereinafter referred to under subsection (c) or the SEC. If the document incorporated by reference is a final official statement, it must be available from the Municipal Securities Rulemaking Board. The City shall clearly identify in the Disclosure Information each document so incorporated by reference. If any part of the Disclosure Information can no longer be generated because the operations of the City have materially changed or been discontinued, such Disclosure. Information need no longer be provided if the City includes in the Disclosure Information a statement to such effect; provided, however, if such operations have been replaced by other City operations in respect of which data is not included in . the Disclosure Information and the City determines that certain specified data regarding such replacement operations would be a Material Fact (as defined in paragraph (2) hereof}, then, from and after such determination, the Disclosure Information shall include such additional specified data regarding the replacement operations. If the Disclosure Information is changed or this section is amended as permitted by this paragraph (b)(1) or subsection (d), then the City shall include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an explanation of the reasons for the amendment and the effect of any change in the type of financial information or operating data provided. (2) In a timely manner, notice of the occurrence of any of the following events. which is a Material Fact (as hereinafter defined): (A) Principal and interest payment delinquencies;. (B) Non-payment related defaults; (C) Unscheduled draws on debt service reserves reflecting financial difficulties; (D) Unscheduled draws on credit enhancements. reflecting financial difficulties; (E) Substitution of credit or liquidity providers, or their failure to perform; (F) Adverse tax opinions or eventsaffecting the tax-exempt status of the security; (G} Modifications to rights of security holders; (H) Bond calls; (I) Defeasances; - (J) Release, substitution, or sale of property securing repayment of the securities; and (K) Rating changes. As used herein, a Material Fact is a fact as to which a substantial likelihood exists that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or sell a Bond or, if not disclosed, would significantly alter. the total information otherwise available to an investor from the. Official Statement, information disclosed hereunder. or information generally available to the public. Notwithstanding the foregoing sentence, a Material Fact is also an event that would be deemed material for purposes of the purchase, holding or sale of a Bond within the meaning of applicable federal securities laws, as interpreted at the time of discovery of the occurrence of the event. (3) In a timely manner, notice of the occurrence of any of the following events or conditions: (A) the failure of the City to provide the Disclosure Information required under paragraph (b)(1) at the time specified thereunder; (B) .the amendment or supplementing of this section pursuant to subsection (d), together with a copy of such amendment or supplement and any explanation provided by the City under subsection. (d)(2); (C) the termination of the obligations of the City under this section pursuant to subsection (d); (D} .any change in the accounting principles pursuant to which the financial statements constituting a portion of the Disclosure Information axe prepared; • and (E) any change in the fiscal year of the City.. (c) Manner of Disclosure. The City agrees to make available the information described in subsection (b) to the following entities by telecopy, overnight delivery, mail or other means, as . appropriate: (1) the information described in paragraph (1) of subsection (b), to each then nationally recognized municipal securities information repository under the Rule and to any state information depository then designated or operated by the State of Minnesota as contemplated by the Rule (the State Depository), if any; (2) the information described in paragraphs (2) and (3) of subsection (b), to the Municipal Securities Rulemaking Board and to the State Depository, if any; and (3) the information described in subsection (b), to any rating agency then maintaining a rating of the Bonds at the request of the City and, at the expense of such Bondowner, to any Bondowner who requests in writing such information, at the time of transmission under paragraphs,(1) or (2) of this subsection (c), as the case maybe, or, if such information is transmitted with a subsequent time of release,. at the time such information is to be released. (d) Term; Amendments; Interpretation. (1) The covenants of the City in this section shall remain in effect so long as any Bonds are outstanding. Notwithstanding the preceding sentence, however, the obligations of the City under this section shall terminate and be without further effect as of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the effect that, because of legislative action or final judicial or administrative actions or proceedings, the failure of the City to comply with the requirements of this section .will not cause participating underwriters in the primary offering of theBonds to be in violation of the Rule or other applicable requirements. of the Securities Exchange Act of 1934; as amended, or any statutes or laws successory thereto or amendatory thereof. (2) This section (and the form and requirements of the Disclosure Information) may be amended or supplemented by the City from time to time, without notice to (except as provided in paragraph (c)(3} hereof) or the consent of the Owners of any Bonds, by a resolution of this Council filed in the office. of the recording officer of the City accompanied by an opinion of Bond Counsel, who may rely on certificates of the City and others and the opinion may be subject to customary qualifications, to the effect that: (i) such amendment or supplement (a) is made in connection with a change in circumstances that arises from a change in law or regulation or a change in the identity, nature or status of the City or the type of operations conducted by the City, or (b) is required by, or better complies with, the provisions of paragraph (b)(5) of the Rule; (ii) this section as so amended or supplemented would have complied with the requirements of paragraph (b)(5) of the Rule at the time of the primary . offering of the.Bonds,.giving effect to any change in circumstances applicable under clause (i)(a) and assuming that the Rule as in effect and interpreted at the time. of the amendment or supplement was in effect at the time of the primary offering; and (iii) .such amendment or supplement does not materially impair the interests of the Bondowners under the Rule. If the Disclosure Information is so amended, the City agrees to provide, contemporaneously with the effectiveness of such amendment, an explanation of the reasons for the amendment and the effect,. if any, of the change in the type of financial information or operating data being provided hereunder. (3} > This section is entered into to comply with the continuing .disclosure provisions of the Rule and shouldbe construed so as to .satisfy the requirements'ofpamgraph (b)(5) of the Rule.. SECTION 8. CERTIFICATION. OF PROCEEDINGS. 8.01. Registration. The County Auditor is hereby authorized and directed to file a certified copy of this resolution in the records of the City, together with such additional information as required, and to issue a certificate that the Bonds have been duly entered upon the County Auditor's bond register. 8.02. Certification of Records. The officers of the City are hereby authorized. and i directed to prepare and furnish to the Purchaser and to Dorsey & Whitney LLP, Bond Counsel, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, 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 they appeax from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofore furnished, shall be deemed representations of the City to the facts .recited herein. 8.03.. Official Statement. The Official .Statement, dated as of December 3, 2007, and the supplement thereto, relating to the Bonds prepared and distributed by Springsted Incorporated, the financial advisor for the City, is hereby- approved. Springsted Incorporated is hereby authorized on behalf of the City to prepare and distribute to the Purchaser within seven business .days from the date hereof, a supplement to the Official Statement listing the offering price, the interest rates, selling. compensation, delivery date, the underwriters and such other information relating to the Bonds required to be included in the Official Statement by Rule 15c2-12 adopted by the Securities and Exchange Commission under the Securities Exchange Act of 1934.. The officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency of the Official Statement. Springsted Incorporated 380 Jackson Street, .Suite 300- ® tJ p r ~ n ~ $ ~ ~ d .Saint Paul, MN .551.01-2887 Tel: 651-223-3000 Fax: 651-223-3002 Email: advisors~springsted.com wwwspringsted.com $3,775,000* CITY OF LAKEVILLE, MINNESOTA GENERAL OBLIGATION STATE-AID STREET BONDS, SERIES 2007G (BOOK ENTRY ONLY) AWARD: HARRIS, N.A. MESIROW FINANCIAL INC. FIRST TRUST PORTFOLIOS L.P. SALE: December 17, 2007 Moody's Rating: Aa2 Interest Net Interest True Interest Bidder Rates Price Cost Rate HARRIS, N.A. 4.00% 2009-2018 $3,839,665.85 .$864,595.26 3.6764% MESIROW FINANCIAL INC.. FIRST TRUST PORTFOLIOS L.P. • RBC CAPITAL MARKETS 3.75% 2009-2016 $3,789,735.25 $865,417.33 3.7107% 3.80°/a 2017 3.90% 2018 PIPER JAFFRAY & CO. 4.00% 2009-2018 $3,830,679.75 $873.,581.36 3.7205% Wells Fargo Brokerage Services, LLC. CITIGROUP GLOBAL MARKETS, INC. 3.50% 2009-2016 $3,765,065.20 $866,416.19. 3.7253% UBS SECURITIES LLC 4.00% 2017-2018 CRONIN & COMPANY, tR~tCORPORATED WACHOVIA SECURITIESLLC BERNARDI SECURITIES INCORPORATED 4.00% 2009-20.18 $3,834,193.45 $870,067.66' 3.7032% NORTHLAND SECURITIES D.A. DAVIDSON & CO. (Continued Public Sector Advisors F REOFFERING SCHEDULE OF THE PURCHASER Rate Year Yield 4.00% .2009 3.05% 4.00% 2010 3.14% .4.00% 2011 3..20% 4.00% 20.12 3.29% 4.00% 2013 3.375% 4.00% 2014 3.48% 4.00% 2015 3.58% 4.00% 2016 3:69% 4.00% 2017 3.78% 4.00% 2018 3.90% B61: 4.46% Average Maturity: 6:154 Years " Subsequent to bid opening, fhe issue size decreased from $3,775,000 to $3,675,000. APPROVED AND ADOPTED this 17t" day of December, 2007.. • CITY OF LAKEVILLE, MINNESOTA rj By. H ~1 ' ahl, Mayor .F.' A TEST. arlene Friedges, Ci Clerk