HomeMy WebLinkAbout01-221 CITY OF LAKEVILLE
RESOLUTION
Date December 3, 2001 Resolution No. o~ -221
Motion By David Luick Seconded By Laurie Rieb
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $1,040,000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 2001A
BE TT RESOLVED by the City Council of the City of Lakeville, Minnesota (the City),. as
follows:
SECTION l . SEALED PROPOSALS. It was reported that five (5) sealed proposals for the
purchase of $1,040,000 General Obligation Improvement Bonds, Series 2001A, were received
prior to 10:00 o'clock a.m., pursuant to the Official Statement distributed to potential purchasers
of the Bonds by Springsted Incorporated, financial consultant to the. City. The proposals have
been publicly opened, read and tabulated -and were found to be as follows: (see attached)
SECTION 2. AUTHORIZATION AND SALE.
2.01. Authorization. This Council, by Resolution No. 01-189 duly adopted on October
15, 2001, authorized the issuance and sale of $1,040,000 General Obligation Improvement
Bonds, Series 2001A (the Bonds), of the City to finance the construction of Improvement Project
01-21, Kenyon Avenue Reconstruction (the Project).
2.02. 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 for receipt 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 RBC Dain Rauscher, in Minneapolis, Minnesota and associates (the Purchaser), to
purchase the Bonds at a price of $1,026,835.00 plus accrued interest on all. Bonds to the day of
delivery and payment, on the further terms and conditions hereinafter set forth.
2.03. Award. The sale of the Bonds is hereby awarded to the Purchaser, and the .Mayor
and Clerk are hereby authorized and directed on behalf of the City to execute a contract for the
sale of the Bonds with the Purchaser in accordance with the Terms of Proposal. The good faith
deposit of the Purchaser shall be retained and deposited by the City until the Bonds have been
delivered and shall be deducted from the purchase price paid at settlement.
85 E. SEVENTH PLACE, SUTCE 100
SAINT PAUL, MN 551.01-2887
651.223.3000 FAX: 651.223.3002
E-MAIL: advisors@sprin~sted.com
SPRINGSTED
Advisors to the Public: Sector
$1,040,000
CITY OF LAKEVILLE, MINNESOTA
GENERAL OBLIGATIONIMPROVEMENT BONDS, SERIES 2001A
(BOOK ENTRY ONLY)
AWARD: RBC DAIN RAUSCHER
SALE: December 3, 2001 Moody's Rating: Al
Interest Net Interest True Interest
idder Rates Price Cost Rate
BC DAIN RAUSCHER 2.875% 2004 $1,026,835.00 $318,150.42 4.3846%
3.25% 2005
3.50% 2006
3.75% 2007
4.00% 2008
4.125% 2009
4.25% 2010.
4.375% 2011
4.50% 2012
4.625% 2013.
CRONIN & COMPANY, INCORPORATED 3.50% 2004-2005 $1,027,775.35 $320,103.40 .4.4161%
4.00% 2006-2008
4.10% 2009
4.25% 2010
4.35% 2011
4.45% 2012
4.55% 2013
UNITED BANKERS' BANK 3.50% 2004-2006 $1,025,960.00 $323,100.00 4.4573%
3.75% 2007
4.00% 2008
4.15% 2009
4.30% 2010
4.45% 2011
4.55% 2012
4.65% 2013
(Continued).
CORPORATE OFFICE: SAINT PAUL, MN • Visit our website at wwwspringsted.com
DES MOIIVES, IA • MILWAUKEE, WI • MINNEAPOLiS, MN • OVERLAND PARK, KS • VIRGIIVIA BEACH, VA • WASHINGTON, DC
, }
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
U.S. BANCORP PIPER JAFFRAY INC. , 3.50% 2004-2005. $1,025,960.00 $323,519.38 4.4670°/~
3.875% 2006-2007
4.05% 2008
4.20% 2009
4.30% 2010
4.40%° 2011
4.50% 2012
:....4.55% 2013
MILLER JOHNSON STEICHEN 4.10% 2004-2008 $1,025,960.00 $331,330.42 4.5797%
KINNARD, INC. 4.20% 2009
BERNARDI SECURITIES, 4.35% 2010
INCORPORATED. 4.45% 2011
4.55% 2012
4.65% 2013
These Bonds. are being reoffered at Par.
BBL• 5.15%
Average Maturity: ,6.998 Years
- 2.04. Sup,.plemental Resolution for Term Bonds. Should the Purchaser determine that
any Bonds be issued in the form of term bonds, this Council shall, by a separate and
supplemental resolution, set forth further terms and provisions as necessary to provide for the
issuance of the term bonds. Should the Purchaser determine that the Bonds be issued only in the
form of serial bonds, no further resolution of the Council shall be required.
SECTION 3. BOND TERMS- REGISTRATION• EXECUTION AND DELIVERY.
3.01. 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 theBonds having been done, now existing,
having happened and having been performed, it is now necessary for the City Council to
establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds
forthwith.
3.02. Maturities• Interest Rates• Denominations and Payment. 'The Bonds shall be
originally dated as of December 1, 2001, shall be in the denomination of .$5,000 each or any
integral multiple thereof, of single maturities, shall mature on February l in the years. and
amounts stated below and shall bear interest from date of original issue until paid ai the annual
.rates set forth apposite such years and amounts, as follows:
Year Amount Rate Year Amount -Rate
2004 $$0,000 2.875% 2009 $115,000 4.125%
2005. 80,000 3.25 2010. 115,000 4.25
2006 80,000 3.50 2011 115,000 4.375
2007 11.5,000 3.75 2012 115,000 4.50
.2008 115,000 4.00 2013. 110,000 4.625
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; provided that, so long as the Bonds are registered in the name of a
securities depository, or a nominee. thereof, in accordance with Section 3.08 hereof, principal and
interest shall be payable in accordance with the operational arrangements of the securities
depository...
3.03. Dates and Interest Payment Dates.. Upon initial delivery of the Bonds pursuant to
Section 3.07 and upon any subsequent transfer or exchange pursuant to Section 3.06, the date of
authentication shall. be noted on each Bond so delivered, exchanged or transferred. Interest on
the Bonds shall be payable on February 1 and August 1 in each year, commencing August 1,
2002, each such date being referred to herein as an Interest Payment Date, to the persons in
whose names the Bonds are registered on the Bond Register, as hereinafter defined, at the
Registrar's. close of business on-the fifteenth day of the calendar month next preceding such
Interest Payment Date, 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.
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3.04. R_ edem
tp ion. Bonds maturing in 2011 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 February 1, 2010, and on any date thereafter, at a price equal to the
principal amount thereof and accrued interest to the date of redemption, without premium. The
Clerk shall cause notice of the call for redemption thereof to be published as required by law, and
at least thirty days prior to the designated redemption date, shall cause notice of call for ,
redemption to be mailed, by first class mail, to the registered holders of any Bonds to be
redeemed at their addresses as they appear on the bond register described in Section 3.06 hereof,
but no defect in or failure to give such mailed notice of redemption shall affect the validity of
proceedings for the redemption of any Bond- not affected by such defect or failure. Official
notice of redemption having been. given as aforesaid, the Bonds or portions of Bonds so to be
redeemed shall, on the redemption date, become due and payable at the redemption price therein
specified and from and after such date (unless the City shall default in the payment of the
redemption price) such.Bonds or portions of Bonds shall cease to bear interest. Uponpartial
redemption of any Bond,. a new Bond or Bonds- will be delivered to the owner without charge,
representing the remaining principal amount. outstanding.
3.05. Appointment of Initial Re istrar. The City hereby appoints U.S. Bank Trust
National Association, in St. Paul, Minnesota, as the initial bond registrar, transfer agent and
paying agent (the "Registrar"). The Mayor and Clerk are authorized to execute and deliver, on
behalf of the City, 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 organized under
the laws of the United States or one of the states of the United States and. 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, effective upon not less than
thirty days' written notice and upon the appointment and acceptance 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.
.3.06. 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 inter. 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
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more new Bonds of a like aggregate principal amount and maturity, as requested by the
transferor. The Registraz 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 aze surrendered by the registered
owner for exchange the Registraz 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 canceled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When any Bond is presented to the
Registraz for transfer, the Registraz may refuse to transfer the same until it is satisfied that
the endorsement on such Bond or sepazate instrument of transfer is valid and genuine and
that the requested transfer is legally authorized. The Registraz shall incur no liability for
the refusal, in good faith, to make transfers which it, in its judgment, deems improper ar
unauthorized.
(f) Persons Deemed Owners. The City and the Registraz may-treat the person in
whose name any Bond is at any time registered in the bond register as the absolute owner
of the Bond, whether the Bond shall be overdue or not, for the purpose of receiving
payment of or on account of, the principal of and interest on the Bond and for all other
purposes; and all payments made to any registered owner or upon the owner's order shall
be valid and effectual to satisfy and discharge the liability upon Bond to the extent of the
sum or sums so paid.
(g) Taxes, Fees and Chazges. For every transfer or exchange of Bonds (except
for an exchange upon a partial redemption of a Bond), the Registraz may impose a chazge
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 Bond
destroyed, stolen or lost, upon the payment. of the reasonable. expenses -and chazges of the
Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost,
upon filing with the Registraz of .evidence satisfactory to it that the 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 Registraz 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
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called for redemption in accordance with its terms it shall not be necessary to issue anew
Bond prior to payment.
(i) Authenticating A .gent. 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 ations. 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..
3.07. Execution, Authentication and Delivery. The Bonds shall be prepared under the
direction of the Clerk and shall be executed on behalf of the City by the signatures of the Mayor
.and the Clerk, provided that the signatures may be printed, engraved or lithographed facsimiles
of the originals. In .case any officer whose signature or a facsimile of whose signature shall
appear on the Bonds shall cease to be -such officer before the delivery of any Bond, such
signature or facsimile shall nevertheless be valid and sufficient for all purposes,. the same as if he
had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or
obligatory for any purpose or entitled to any security or benefit under this Resolution unless and
until a certificate of authentication on the 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 prepared, executed and authenticated, the Clerk shall -
deliver them to the Purchaser upon payment of the purchase price in accordance with the
contract of sale heretofore executed, and the Purchaser shall not be obligated to see to the
application of the purchase price..
3.08. 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.
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"Representation Letter" shall mean the Representation Letter pursuant to which the City
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, giving any notice permitted or 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 ali 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 Clerk is hereby authorized and directed.
(e) In the event that any transfer or exchange of Bonds is perntted under paragraph (b)
or (c) hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of
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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 ofsuch 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 certif Cates.
3.09. Form of Bonds. The Bands shall be prepared in substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
DAKOTA COUNTY
CITY OF LAKEVILLE
GENERAL OBLIGATION. IMPROVEMENT BOND, SERIES 2001A
Interest Rate Maturity Date Date of Original Issue CUSIP No.
December 1, 2001 . -
REGISTERED OWNER:.
PRINCIPAL AMOUNT:
THE CITY OF LAKEVILLE, DAKOTA COUNTY, 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 amount specified above on
' the maturity:. date specified above and promises to pay 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 interest rate specified above, payable on February 1 and
August 1 in each year, commencing August 1, 2002, to the person in whose name this Bond is
registered at the close of business on the fifteenth day (whether or not a business day) of the
immediately preceding month, all subject to the provisions referred to herein with respect to the
redemption of the principal of this Bond before maturity. 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 at the principal office of the agent of the Registrar described
below, the principal hereof are payable in lawful money of the United States. of America by
check or draft drawn on U.S. Bank. Trust National Association in St. Paul, Minnesota, as bond
registrar, transfer agent and paying agent, or its successor designated under the Resolution
described herein (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 City have been and are hereby
• irrevocably pledged.
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This Bond is one of an issue in the aggregate principal-amount of $1.,040,000 issued.
pursuant to a resolution adopted by the City Council on December 3, 2001 (the Resolution), to
finance certain municipal improvements, 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 aze issuable only in fully registered form, in
denominations of $5,000 or any integral- multiple thereof, of single maturities.
Bonds maturing in 2011 and later years aze each. 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 February 1,
2010, and on any 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 bylaw and, at least thirty days prior to the designated redemption date, will
cause notice of the call thereof to be mailed by first class mail to the registered owner of any
Bond to be redeemed at the owner's address as it appeazs on the bond register maintained by the
Registrar, but no defect in or failure to give such mailed notice of redemption -shall affect the
validity of proceedings for the redemption of any Bond. not affected by such defect. or failure.
Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds o
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 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 Registraz, by the -
registered owner hereof in person or by the owner's attorney duly authorized in writing upon
surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly
executed by the registered owner or the owner's attorney; and may also be surrendered in
exchange for Bonds of other authorized denominations. Upon such transfer or exchange the 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, beazing interest at the same rate and maturing on the same
date, subject to reimbursement for any tax, fee or governmental chazge required to be paid with
respect to such transfer or exchange.
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 Warne 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.
The Bonds have been designated by the City as "qualified tax=exempt obligations"
pursuant to Section 265(b)(3) of the Internal Revenue Code of 1986.
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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.
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 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 will be collectible for the years
and in amounts sufficient to produce sums not less than five percent in excess of the principal of
and interest on the Bonds of this issue when due, and has appropriated such special assessments
and taxes to its General Obligation Improvement Bonds, Series 2001A Bond Fund 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; that the issuance of this Bond, together with all
other indebtedness of the City outstanding on the date hereof and on the date of its actual
issuance and delivery, does not cause the indebtedness of the City to exceed any. constitutional or
statutory limitation of indebtedness; and that the opinion printed hereon is a full, true and correct
s copy of the legal opinion given by Bond Counsel with reference to the Bonds, dated as of the
date of original delivery of the Bonds.
This Bond shall not be valid or become obligatory for any purpose or be entitled to any
securityor 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, byits City
Council, has caused this Bond to be executed on its behalf by the facsimile signatures of the
Mayor and Clerk and has caused this Bond to be dated as of the date. set forth below.
CITY OF LAKEVILLE, MINNESOTA
(facsimle signature -Clerk) (facsimile signature - Mayor)
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CERTIFICATE OF AUTHENTICATION
.This is one of the Bonds delivered pursuant to the Resolution mentioned within:
Date of Authentication: U.S. BANK TRUST NATIONAL
ASSOCIATION, as Registrar
By
Authorized Representative:
[insert legal opinion]
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 asCustodian 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, without 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.
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PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE: .
[end of bond.. form]
SECTION 4. GENERAL OBLIGATION IMPROVEMENT BONDS SERIES 2001A
CONSTRUCTION FUND. There is hereby established on the official books and records of the
City a General Obligation Improvement Bonds, Series 2001A Construction Fund (the
Construction Fund). The Finance Director shall continue to maintain. the Construction Fund until
payment of all costs and expenses incurred in connection with the construction of the Project
have been paid. To the Construction Fund there shall be credited from the proceeds of the
Bonds, exclusive of unused discount and capitalized and accrued interest, an amount equal to the
estimated cost of the Project (including bond issuance expenses) and from the Construction Fund
there shall be paid all construction costs and expenses (including bond issuance expenses)..
There shall also be credited to the Construction Fund all special assessments collected with
respect to the Project, until all costs of the Project have been fully paid. After payment of alI
construction costs and bond issuance costs, the Construction Fund. 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 the Construction Fund when terminated or thereafter
received, and any Bond proceeds not so transferred, shall be credited to the General Obligation
Improvement Bonds,. Series 2001A Bond.Fund of the City.
SECTION 5. GENERAL OBLIGATION IMPROVEMENT BONDS SERIES 2001A BOND
FUND. 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 fund. on the official books and
records of the City to be known as the General Obligation Improvement Bonds, Series 2001A
Bond Fund (the Bond. Fund), and the. principal of and interest on the Bonds shall be payable .from
the Bond Fund. The City irrevocably appropriates to the Bond Fund (a) any amount in excess of
$1,025,960 received from the Purchaser; (b) capitalized interest in the amount of $38,000;
(c) the amountsspecified in Section 4 above,.after payment of all costs of the Project; (d) all
taxes and special assessments levied and collected in accordance with. this resolution; and (e) all
other moneys as shall be appropriated by the City Council to the Bond Fund from timeto time.
There are hereby established two accounts in the Bond Fund, designated as the "Debt
Service. Account" and the "Surplus Account." There shall initially be deposited into the Debt
Service Account upon the issuance of the Bonds the amount set forth in (a) above. Thereafter,
during each Bond Year (i.e., each twelve month period commencing on February 2 and ending
on the following February 1), as monies are received into the Bond Fund, the Finance Director
shall first deposit such monies into. the Debt Service Account until an amount has been
appropriated thereto sufficient to pay all principal and interest due on the Bonds through. the end
of the Bond Year. All subsequent monies. received in the Bond Fund during the Bond Year shall
be appropriated to the Surplus Account. If at any time the. amount on hand in the Debt Service
. Account is insufficient for the payment of principal and interest then due, the Finance Director
11
shall transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent
necessary to cure such deficiency. Investment earnings (and losses) on amounts from time to
time held in the Debt Service Account and Surplus Account shall be credited or charged to said
accounts.
If the aggregate balance in the Bond Fund is at any time insufficient to pay all interest
and principal then due on all Bonds payable therefrom, the payment shall be made from any fund
of the City which is available for that purpose, subject to reimbursement from the Surplus
• Account in the Bond Fund when the balance. therein is sufficient, and the City Council covenants
and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any
accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory
limitation.
SECTION 6. SPECIAL ASSESSMENTS. The City hereby covenants and agrees-that, for the
payment of the cost of the Project, 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% of
the cost of each of the improvements financed by the Bonds.. The City estimates it will levy
special assessments in the aggregate principal amount of $602,800. It is estimated that the
principal and interest on such. special assessments will be levied and collected in the years and
amounts shown on Appendix I attached hereto. In the event 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 the City 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 7. 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 which, together with the collections of special assessments
and other amounts as set forth in Section 5, will produce amounts not less than 5% in excess of
the amounts needed to meet when due the principal and interest payments. on the Bonds, ad
valorem taxes are hereby levied on all taxable property in the City. The taxes will be levied and
collected in the following years and amounts:
Levy Years Collection Years Amount.
2001-2011 2002-2012 See attached Levy Computation
The taxes shall be irrepealable as long as any of the Bonds are ohtstanding and unpaid, provided
than the City reserves the right and power to reduce the tax levies in accordance with the
provisions of Minnesota Statutes, Section 475.61.
SECTION 8. DEFEASANCE. -When all of the Bonds have been discharged as provided in this
section, all pledges, covenants and other rights granted bythis Resolution to the registered
12
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 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 and interest to become due thereon to maturity or earlier designated
redemption date.
SECTION 9. CERTIFICATION OF PROCEEDINGS.
.9.01.. Registration of Bond and Levy of Taxes. The Clerk is hereby authorized and
directed. to file a certified copy of this resolution with the County Treasurer-Auditor of Dakota.
County and obtain a certificate that the Bonds have been duly: entered -upon the County
Treasurer-Auditor's bond register and the tax required by law has been levied.
,
9.02. Authentication of Transcript. The officers of the City and the County Treasurer-
Auditor are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey
& Whitney LLP, Bond Counsel, certified copies of all proceedings and records relating to the
Bonds and such other affidavits, certificates and information as may be required to show the
facts relating to the legality and marketability of the Bonds, as the same appear from the books
and records in their custody and control or as otherwise known to them, and all such certified
copies, affidavits and certificates, including any heretofore furnished, shall be deemed
representations of the City as to the correctness of all statements contained therein.
9.03. Official Statement. The Official Statement, dated as of November 15, 2001, and
the supplement thereto, relating to the Bonds prepared and distributed by Springsted
Incorporated, the financial consultant 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 SEC 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. '
13
. SECTION 10. TAX COVENANTS• ARBITRAGE MATTERS: REIMBURSEMENT AND
CONTINUING DISCLOSURE.
10.01. General Tax Covenant. The City covenants and agrees with the registered owners
from time to time 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 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
Project. 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 Project 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 Code.
10.02. Arbitrage Certification. The Mayor and 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 will not be used in a manner that would
cause the Bonds to be "arbitrage bonds" within the meaning of the Code and Regulations.
10.03. Arbitrage Rebate Exem
tp ion. (a) 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 tote 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
2001 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to Section
148(f)(4)(D) 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.
(b) Notwithstanding the provisions of paragraph (a) of this Section 10.03, if the arbitrage
rebate provisions of Section 148(fj of the Code apply to the Bonds, the City hereby covenants
and agrees to make the determinations, retain records and rebate to the United States the amounts
at the times and. in the manner required by said Section 148(f) and applicable Regulations.
10.04. 4ualified Tax-Exempt Obli atg ions. The City Council hereby designates the
Bonds as "qualified tax-exempt obligations"for
purposes of Section 265(b)(3) of the Code
relating to the disallowance of interest expense for financial institutions, and hereby finds that
the reasonably anticipated amount of qualified tax-exempt obligations (within the meaning of
Section 265(b)(3) of the Code) which will be issued by the City and all subordinate entities
• during calendar year 2001 does not exceed $10,000,000.
14
10.05. 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 Project 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 Project
meeting the requirements of Section 1.150-2(f)(1) of the Regulations, or (ii) with respect to
"preliminary expenditures" for the Project as defined in Section 1.150-2(f)(2) of the Regulations,
including engineering or architectural expenses and similar preparatory expenses, which in the
aggregate do not exceed 20% of the "issue price" of the Bonds.
10.06. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide far the public
availability ofcertain 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 time 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 law 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:
15
(1) on or before 365 days after the end of each fiscal year of the City, commencing with
the fiscal year ending December 31,2001, 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
i 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
16
• 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 events affecting 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 are prepared;
and
(E) any change in the fiscal year of the City.
17
(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 may be,
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 Cityto comply with the requirements of this section
will not cause participating underwriters in the primary offering of the Bonds 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
18
clause (i)(a) and assumingthat 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 should be construed so as to satisfy the requirements of paragraph
(b)(5) of the.Rule.
APPROVED AND ADOPTED this 3`~ day of December, 2001.
CTI'Y OF LAKEVILLE
By: -
Robert D. Jo son, Mayor
S
Charlene Friedges, City Jerk
•
19
•
City of Lakeville, Minnesota
General Obligation Improvement Bonds, Series 2001A
Projected Assessment Income
ASSESSMENT INCOME
Date Principal Coupon Interest Total P+I
12/31/2002 8,050.00 7.500% 6,037.50. 14,087.50
12/31/2003 38,918.40 7.500% 28,585.06. 67,503.46
12/31/2004 38,9:18.40 7.500% 25,666.18 64,584.58
12/31/2005 38,918.40 7.500% 22,747.30 81,665.70
12/31/2006 60,280.00 7.500% 35,849.62 96,129.62
12/31 /2007 60,280,00 7.500% 31,328.62 91,60$.62
12!31/2008 60,280.00: 7.500% 26,807.62 87,087.62
12/31!2009 60,280.00 7.500% 22,286.62 .82,566.62
12/31/2010 60,280.00. 7.500% 17,765.62 78,045.62
12/31/2011 60,280.00 7.500% 13,244.62 73,524.62
12/31/2012 52,230.00 7.500% 8,723.62 60,953.62
12/31 /201.3 21,361.60 7.500% 4,806.36 26,167.96
12/31/2014 21,361.60 7.500% 3,204.24 24,565.84
12/31/2015 21,361.60 7.500% 1,602.12 .22,963.72
Total 602,800.00 - 248,655.10 851,455.10
SIGNIFICANT DATES
Dated 1 /01 /2002
Delivery Date 1/01/2002
.First Coupon Date 12/31/2002
YIELD STATISTICS
Bond Year Dollars $4,478.55.
Average Life 7.430 Years.
Average Coupon 5.5521365%
Net Interest Cost (NIC) 5.5521365%
True Interest Cost (TIC) 7.4699374%
Bond Yield for. Arbitrage Purposes 7.4699374%
All Inclusive Cost (AIC) 7.4699374%
Springsted Incorporated File = LAKEUILLE 2.SF-200iA Assessments-Issue Summary
Public. Finance Advisors 12/ 3/2001 11:52 AM
Ci of Lakeville, Minnesota
$1,040,000
General Obligation Improvement Bonds, Series 2001 A
LEVY COMPUTATION
Date Principal Coupon Interest Total P+I CIF 105% Overlevy Revenue. Levy Amount. Levy Year
2/01/2003 - - 48,460.42 48,460.42 (38,000.00) 10,983.44 14,087.50 ..(3,104.06) 2001
2/01/2004 80,000.00 2.875% 41,537.50 .1.21,537.50 - 127,614.38 67,503.46 60,110.92 .2002
2/01!2005 80,000.00 3.250% 39,237.50 119,237.50 - 125,199.38 64,584.58 60,614.80 2003
2/01/2006 80,000.00 3.500% 36,637.50 116,637.50 - 122,469.38 61,665.70 60,803.68 2004
2/01/2007 115,000.00. 3.750% 33,837.50 148,837.50 - 156,279.38 96,129.62 60,149.76 2005
2/01/2008. 115,000.00 4.000% 29,525.00 144,525.00 - 151,751.25 91,608.62 60,142.63 2006
2/01/2009 115,000.00 4.125% 24,925.00 139,925.00 - 146,921.25 87,087.62 59,833.63 2007.
2/01/2010 115,000.00 4.250% 20,181..25 135,181.25 - 141,940.31 82,566.62 59,373.69 2008
2/01/2011 115,000.00 4.375% .15,293.75 130,293.75 - 136,808.44 78,045.62 58,762.82 2009
2101/2012 115,000.00 4.500% 10,262.50 125,262.50 - 131,525.63 73,524.62 58,001.01 2010.
2/01/2013 110,000.00 4.625% 5,087.50 115,087.50 - 120,841.88 60,953.62 .59,888.26 2011
2/01 /2014 - - - - - 26,167.96 (26,167.96) 2012
2/01/2015 - - - - - - 24,565.84 (24,565.84) 2013
.2!01/2016 - - - - - - 22,963.72 (22,963.72) 2014
Total 1,040,000.00 - 304,985.42 1,344,985.42 (38,000.00) 1,372,334.69 851.,455.10 520,879.59 -
Dated ry 12/01 /2001
Delive Date.. 12/20/2001-
First Coupon Date 8/01/2002
YIELD STATISTICS
Bond Year Dollars $7,278.33
Average Life 6.998. Years
Average Coupon 4.1.903194%
Net Interest Cost (NIC) 4.3711988%
True Interest Cost (TIC) 4.3846443%
Bond. Yield for Arbitrage Purposes 4.1705105%
All Inclusive Cost (AIC) 4.7061200°~
Weighted Average Maturity 6.946 Years
Springsted Incorporated File = LAKEVILLE 2.SF-2001A Post-Sale- SINGLE PURPOSE
Public Finance Advisors 12/ 3/2001 11:51 AM