HomeMy WebLinkAbout9.c. Accept Bids and Award Sale - G.O. State Aid Street Bonds, Series 1994C CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: July 5, 1994
AGENDA ITEM: Accept Bids and Award Sale - G.O. State AGENDA SECTION:
Aid Street Bonds, Series 1994C Old Business
PREPARED BY: Jeff May, Finance Director AGEND � '�
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ATTACHMENTS: Draft Resolution and Official APPROVED BY:
StatementfSee Agenda Item # ) ��
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At 11 :00 A.M. Tuesday, July 5, 1994, sealed bids for G.O. State Aid Street Bonds, Series
1994C, will be opened and the results tabulated at the offices of Springsted Inc. A
representative frorn Springsted will be present at the July 5th Council meeting to give
Springsted's recommendation for the issuance of these bonds and to answer any questions that
you may have.
Because the bid opening is not until Tuesday morning, you will receive information regarding the
bids at the meeting that evening.
RECOMMENDfD ACTION:
Motion to adopt a RESOLUTION ACCEPTING PROPOSAL ON SALE OF 5700,000 GENERAL
OBLIGATION STATE AID STREET BONDS, SERIES 1994C, AND PROVIDING FOR THEIR
ISSUANCE.
COUNCIL ACTION:
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♦ {
CITY OF
ROSEMOUNT
DAKOTA COUNTY, MINNESOTA
RESOLUTION 1994 -
RESOLUTION ACCEPTING PROPOSAL ON 'i
SALE OF �
$700, 000 GENERAL OBLIGATION STATE AID STREET �,
BONDS, SERIES 1994C, AND PROVIDING FOR THEIR ISSUANCE il
A. WHEREAS, the City Council of the City of Rosemount, !�
Minnesota (the "City") , has heretofore determined and declared j
that it is necessary and expedient to issue $7u0, 000 General �I
Obligation State Aid Street Bonds, Series 1994C of the City, '
pursuant to Minnesota Statutes, Chapters 162 and 475, to provide ,
funds for improvements to a state aid street project in the City '
(the "Project") ; and
B. WHEREAS, the following offers were received, opened
and recorded at the offices of Springsted Incorporated at 11:00
o'clock A.M. , this same day:
Bidder Interest Rate Net Interest Cost
� '1 of the
NOW, THEREFORE, BE IT RESOLVED by the Counci
City of Rosemount, Minnesota, as follows:
1. Acceptance of Proposal. The proposal of
(the "Purchaser") , to
purchase $700, 000 General Obligation State Aid Street Bonds,
Series 1994C of the City (the "Bonds", or individually a "Bond") ,
in accordance with the Terms of Proposal established for the
Bonds, at the rates of interest hereinafter set forth, and to pay
therefor the sum of $ , plus interest accrued to
settlement, is hereby found, determined and declared to be the
most favorable proposal received and is hereby accepted, and the
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Bonds are hereby awarded to said proposal maker. The Finance
Director is directed to retain the deposit of said proposal maker
and to forthwith return to the unsuccessful proposal makers their '
good faith checks or drafts. j
2. Title; Original Issue Date: Denominations; ',
Maturities. The Bonds shall be titled "General Obligation State '
Aid Street Bonds, Series 1994C", sha11 be dated August 1, 1994, ',
as the date of original issue and shall be issued forthwith on or '�,
after such date as fully registered bonds. The Bonds shall be ',
numbered from R-1 upward in the denomination of $5,000 each or in I
any integral multiple thereof of a single maturity (the ',
"Authorized Denomination") . The Bonds shall mature on April 1 in '
the years and amounts as follows: '
Year ount Year Amount I
1995 $65, 000 2000 $70, 000 �'
1996 60, 000 2001 75, 000
1997 60, 000 2002 75, 000
1998 65, 000 2003 80, 000
1999 65, 000 2004 85, 000 �
3 . Purpose. The Bonds shall provide funds to finance I
improvements to a state aid street project in the Gity (the �
"Project") . The total cost of the Project, which shall include �
all costs enumerated in Minnesota Statutes, Section 475. 65, is I
� estimated to be at least equal to the amount of the Bonds. Work
on the Project shall proceed with due diligence to completion.
The average annual amount of principal and interest due in all
subsequent calendar years on the Bonds, including any other state
aid street obligations issued by the City pursuant to Minnesota
Statutes, Section 162 . 18, daes not exceed fifty percent (50$) of
the amount of the last annual allotment preceding the issuance of ',
the Bonds received by the City from the Construction Account in ',
the City's State-Aid Street Fund. '
4. Interest. The Bonds shall bear interest payable '
semiannually on April 1 and October l of each year (each, an !
"Interest Payment Date") , commencing April 1, 1995, calculated on '
the basis of a 360-day year of twelve 30-day months, at the i�
respective rates per annum set forth opposite the maturity years I
as follows: '
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Maturity Interest Maturity Interest
Year Rate Year Rate
1995 $ 2000 �
1996 2001
1997 2002 '
1998 2003 '
1999 2004 '
5. Redemption. Al1 Bonds maturing in the year 2004
shall be subject to redemption and prepayment at the option of '
the City on April 1, 2003, and on any date thereafter at a price
of par plus accrued interest. Redemption may be in whole or in
part of the Bonds subject to prepayment. If only part of the
Bonds are called for prepayment, the specific Bonds to be prepaid
shall be chosen by lot by the Bond Registrar. Bonds or portions '
thereof called for redemption shall be due and payable on the �
redemption date, and interest thereon shall cease to accrue from �,
and after the redemption date. Mailed notice of redemption shall ',
be given to the paying agent and to each affected registered i
holder of the Bonds. �
To effect a partial redemption of Bonds having a common
maturity date, the Bond Registrar prior to giving notice of ;
redemption shall assign to each Bond having a common maturity ',
date a distinctive number for each $5, 000 of the principal amount ',
of such Bond. The Bond Registrar shall then select by lot, using '
such method of selection as it shall deem proper in its ',
discretion, from the numbers so assigned to such Bonds, as many ',
numbers as, at $5, 000 for each number, shall equal the principal li
amount of such Bonds to be redeemed. The Bonds to be redeemed �
shall be the Bonds to which were assigned numbers so selected;
provided, however, that only so much of the principal amount of ,
each such Bond of a denomination of more than $5, 000 shall be ''�
redeemed as shall equal $5,000 for each number assigned to it and ',
so selected. If a Bond is to be redeemed only in part, it shall '�
be surrendered to the Bond Registrar (with, if the City or Bond �!
Registrar so requires, a written instrument of transfer in form �
satisfactory to the City and Bond Registrar duly executed by the ',
holder thereof or his, her or its attorney duly authorized in ',
�� writing) and the City shall execute (if necessary) and the Bond �
Registrar shall authenticate and deliver to the Holder of such
Bond, without service charge, a new Bond or Bonds of the same I
series having the same stated maturity and interest rate and of '
any Authorized Denomination or Denominations, as requested by ',
such Holder in a re ate rinci al amount
e ual to and in
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exchange for the unredeemed portion of the principal of the Bond
- so surrendered.
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6. Bond Reqistrar. , in
, Minnesota, is appointed to act as bond
registrar and transfer agent with respect to the Bonds (the "Bond
Registrar") , and shall do so unless and until a successor Bond
Registrar is duly appointed, all pursuant to any contract the
City and Bond Registrar shall execute which is consistent
herewith. The Bond Registrar shall also serve as paying agent
unless and until a successor paying agent is duly appointed.
Principal and interest on the Bonds shall be paid to the
registered holders (or record holders) of the Bonds in the manner
set forth in the form of Bond and paraqraph 12 of this
resolution.
7. Form of Bond. The Bonds, together with the Bond
Registrar's Certificate of Authentication, the form of Assignment
and the registration information thereon, shall be in
substantially the following form:
z�o23.� 4
UNITED STATES OF AMERICA
STATE OF MINNESOTA
DAKOTA COUNTY
CITY OF RQSEMOUNT
R- S
GENERAL OBLIGATION STATE AID STREET
BOND, SERIES 1994C
INTEREST MATURITY DATE OF
RATE DATE ORIGINAL ISSUE CUSIP
August 1, 1994
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Rosemount, IIakota County, Minnesota (the "Issuer") , certifies
that it is indebted and for value received promises to pay to the
registered owner specified above, or registered assigns, in the
manner hereinafter set forth, the principal amount specified
above, on the maturity date specified above, unless called for
earlier redemption, and to pay interest thereon semiannually on
April 1 and October 1 of each year (each, an "Interest Payment
Date") , commencing April 1, 1995, at the rate per annum specified
above (calculated on the basis of a 360-day year of twelve 30-day li
months) until the principal sum is paid or has been provided for. i
This Bond will bear interest from the most recent Interest ',
Payment Date to which interest has been paid or, if no interest '
has been paid, from the date of original issue hereof. The '
principal of and premium, if any, on this Bond are payable upon
presentation and surrender hereof at the principal office of
, in , Minnesota
(the "Bond Registrar") , acting as paying agent, or any successor
paying agent duly appointed by the Issuer. Interest on this Bond
will be paid on each Interest Payment Date by check or draft
mailed to the person in whose name this Bond is registered (the
"Holder" or "Bondholder") on the registration books of the Issuer
maintained by the Bond Registrar and at the address appearing
thereon at the close of business on the fifteenth day of the
calendar month next preceding such Interest Payment Date (the
"Regular Record Date") . Any interest not so timely paid shall
cease to be payable to the person who is the Holder hereof as of
the Regular Record Date, and shall be payable to the person who
is the Holder hereof at the close of business on a date (the
2c56oz3.� 5
"Special Record Date") fixed by the Bond Registrar whenever money
becomes available for payment of the defaulted interest. Notice
of the Special Record Date shall be given to Bondholders not less
than ten days prior to the Special Record Date. The principal of
and premium, if any, and interest on this Bond are payable in
lawful money of the United States of America.
REFERENCE IS HEREBY MADE TO THE FURTAER PROVISTONS OF
THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL
FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
IT IS HEREBY CERTIFIED AND RECITED that all acts,
conditions and things required by the Constitution and laws of
the State of Minnesota to be done, to happ�n and to be per€ormed,
precedent to and in the issuance of this Bond, have been done,
have happened and have been performed, in regular and due form,
time and manner as required by law, and that this Bond, together
with all other debts of the Issuer outstanding on the date of �,
original issue hereof and the date of its issuance and delivery '
to the original purchaser, does not exceed any constitutional or li
statutory limitation of indebtedness. ��
IN WITNESS WHEREOF, the City of Rosemount, Dakota
County, Minnesota, by its City Council has caused this Bond to be ��
executed on its behalf by the facsimile signatures of its Mayor '
and its City Clerk, the corporate seal of the Issuer having been '
intentionally omitted as permitted by law.
266o23.t 6
Date of Registration: Registrable by:
Payable at:
BOND REGISTRAR'S CITY OF ROSEMOUNT,
CERTIFICATE OF DAKOTA COUNTY, MINNESOTA
AUTHENTICATION
This Bond is one of the
Bonds described in the Js! Facsimile
Resolution mentioned Mayor
within.
js/ Facsimile
Clerk
, Minnesota
Bond Registrar
By
Authorized Signature .
I
266023.1 7
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ON REVERSE OF BOND
Redem�tion. All Bonds of this issue (the "Bonds")
maturing in the year 2004, are subject to redemption and
prepayment at the option of the Issuer on April i, 2003, and on
any date thereafter at a price of par plus accrued interest.
Redemption may be in whole or in part of the Bonds subject to
prepayment. If only part of the Bonds are called for prepayment,
the specific Bonds to be prepaid shall be chosen by lot by the
Bond Registrar. Bonds or portions thereof called for redemption
shall be due and payable on the redemption date, and interest
thereon shall cease to accrue from and after the redemption date.
Mailed notice of redemption shall be given to the paying agent
and to each affected Holder of the Bonds.
Selection of Bonds for Redemgtion: Partial Redem�tion.
To effect a partial redemption of Bonds having a common maturity
date, the Bond Registrar shall assign to each Bond having a
common maturity date a distinctive number for each $5,000 of the
principal amount of such Bond. The Bond Registrar shall then
select by lot, using such method of selection as it shall deem
proper in its discretion, from the numbers assigned to the Bonds,
as many numbers as, at $5, 000 for each number, shall equal the
principal amount of such Bonds to be redeemed. The Bonds to be
redeemed shall be the Bonds to which were assiqned numbers so
selected; provided, however, that only so much of the principal
amount of such Bond of a denomination of more than $5, 000 shall
be redeemed as shall equal $5,000 for each number assiqned to it
and so selected. If a Bond is to be redeemed only in part, it
shall be surrendered to the Bond Registrar (with, if the Issuer
or Bond Registrar so requires, a written instrument of transfer
in form satisfactory to the Issuer and Bond Registrar duly
executed by the Holder thereof or his, her or its attorney duly
authorized in writing) and the Issuer shall execute (if
necessary) and the Bond Registrar shall authenticate and deliver
to the Holder of such Bond, without service charge, a new Bond or
Bonds of the same series having the same stated maturity and
interest rate and of any Authorized Denomination or
Denominations, as requested by such Holder, in aggreqate
principal amount equal to and in exchange for the unredeemed
portion of the principal of the Bond so surrendered.
�ssuance: Purtiose: General Oblicration. This Bond is
one of an issue in the total principal amount of $700,000, a11 of
like date of original issue and tenor, except as to number,
maturity, interest rate, denomination and redemption privilege,
which Bond has been issued pursuant to and in full conformity
z�ot3.t 8
with the Constitution and laws of the State of Minnesota and II
pursuant to a resolution adopted by the City Council of the I
Issuer on July 5, 1994 (the "Resolution") , to provide funds for '�
improvements to a state aid street project within the
jurisdiction of the Issuer. This Bond is payable out of the li
General Obligation State Aid Street Bonds, Series 1994C Fund of
the Issuer. This Bond constitutes a general obligation of the I,
Issuer, and to provide moneys for the prompt and full payment of I
its principal, premium, if any, and interest when the same become I
due, the full faith and credit and taxing powers of the Issuer ',
have been and are hereby irrevocably pledged. '�
Denominations. Exchanqe: Resolution. The Bonds are '
issuable solely as fully registered bonds in the Authorized
Denominations (as defined in the Resolution) and are exchangeable '
for fully registered Bonds of other Authorized Denominations in '
equal aggregate principal amounts at the principal office of the '
Bond Registrar, but only in the manner and subject to the ',
limitations provided in the Resolution. Reference is hereby made ,
to the Resolution for a description of the rights and duties of
the Bond Registrar. Copies of the Resolution are on file in the
principal office of the Bond Registrar.
Transfer. This Bond is transferable by the Holder in
person or by his, her or its attorney duly authorized in writing
at the principal office of the Bond Registrar upon presentation
and surrender hereof to the Bond Registrar, all subject. to the
terms and conditions provided in the Resolution and to reasonable
regulations of the Issuer contained in any agreement with the
Bond Registrar. Thereupon the Issuer shall execute and the Bond
Registrar shall authenticate and deliver, in exchange for this
Bond, one or more new fully registered Bonds in the name of the
transferee (but not registered in blank or to "bearer" or similar
designation) , of an Authorized Denomination or Denominations, in
aggregate principal amount equal to the principal amount of this
Bond, of the same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss. The Bond Registrar may .
require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or
exchange of this Bond and any legal or unusual costs regarding
transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and Bond
Registrar may treat the person in whose name this Bond is
registered as the owner hereof for the purpose of receiving
payment as herein provided (except as otherwise provided on the
reverse side hereof with respect to the Record Date) and for all
other purposes, whether or not this Bond shall be overdue, and
266023.1
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neither the Issuer nor the Bond Registrar shall be affected by
notice to the contrary.
Authentication. This Bond shall not be valid or become
obligatory for any purpose or be entitled to any security unless
the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
Qualified Tax-Exempt Obliqation. This Bond has been
designated by the Issuer as a "qualified tax-exempt obligation"
for purposes of Section 265 (b) (3) of the Internal Revenue Code of
1986, as amended.
ABBREVIATIONS
The following abbreviations, when used in the inscription on
the face of this Bond, shall be construed as though they were
written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship
and not as tenants in common
UTMA - as custodian for
(Cust) � (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used
though not in the above list.
266023.1 1 0
ASSIGNMENT
For value received, the undersigned hereby sells,
assigns and transfers unto
the within Bond and does
hereby irrevocably constitute and appoint
attorney to transfer the Bond on the books kept for the
registration thereof, with full power of substitution in the
premises.
Dated:
Notice: The assignor's signature to this
assiqnment must correspond with the name
as it appears upon the face of the
within Bond in every particular, without
alteration or any change whatever.
Signature Guaranteed: I
Si nature s must be uaranteed by a national bank or trust III�I
g � ) g
company or by a brokerage firm having a membership in one of the I
major stock exchanges or any other "Eligible Guarantor i
Institution" as defined in 17 CFR 240. 17 Ad-15 (a) (2) . !,
The Bond Registrar will not effect transfer of this Bond I
unless the information concerning the transferee requested below ,
is provided. '
Name and Address: I
(Include information for all joint owners ,
if the Bond is held by joint account. }
266023.1 l i
8. Execution; Temporary Bonds. The Bonds sha11 be
printed (or, at the request of the Purchasers, typewritten) and
shall be executed on behalf of the City by the signatures of its
Mayor and City Clerk and be sealed with the seal of the City;
provided, however, that the seal of the City may be a printed
� (or, at the request of the Purchaser, photocopied) facsimile; and
provided further that both of such signatures may be printed (or,
at the request of the Purchaser, photocopied) facsimiles and the
corporate seal may be omitted on the Bonds as permitted by law.
In the event of disability or resignation or other absence of
either such officer, the Bonds may be signed by the manual or
facsimile signature of that officer who may act on behalf of such
absent or disabled officer. In case either such officer whose
signature or facsimile of whose signature shall appear on the
Bonds shall cease to be such officer before the delivery of the
Bonds, such signature or facsimile shall nevertheless be valid
and sufficient for all purposes, the same as if he or she had
remained in office until delivery. The City may elect to
deliver, in lieu of printed definitive bonds, one or more
typewritten temporary bonds in substantially the form set forth
above, with such changes as may be necessary to reflect more than
one maturity in a single temporary bond. Such temporary bonds
may be executed with photocopied facsimile signatures of the
Mayor and City Clerk. Such temporary bonds shall, upon the
printing of the definitive bonds and the execution thereof, be
exchanged therefor and canceled.
9. Authentication. No Bond shall be valid or
obligatory for any purpose or be entitled to any security or
benefit under this resolution unless a Certificate of
Authentication on such Bond, substantially in the form
hereinabove set forth, shall have been duly executed by an
authori2ed representative of the Bond Registrar. Certificates of
Authentication on different Bonds need not be signed by the same
person. The Bond Registrar shall authenticate the signatures of
officers of the City on each Bond by execution of the Certificate
`of Authentication on the Bond and by inserting as the date of
registration in the space provided the date on which the Bond is
authenticated, except that for purposes of delivering the
original Bonds to the Purchaser, the Bond Registrar shall insert
as a date of registration the date of original issue, which date
is August l, 1994. The Certificate of Authentication so executed
on each Bond shall be conclusive evidence that it has been
authenticated and delivered under this resolution.
10. Reqistration; Transfer; Exchanae.: The City will
cause to be kept at the principal office of the Bond Registrar a
bond register in which, subject to such reasonable regulations as
the Bond Registrar may prescribe, the Bond Registrar shall
provide for the registration of Bonds and the registration of
266023.1 1 2
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transfers of Bonds entitled to be registered or transferred as
herein provided.
Upon surrender for transfer of any Bond at the
principal office of the Bond Registrar, the City shall execute
(if necessary) , and the Bond Registrar shall authenticate, insert
the date of registration (as provided in paragraph 9) of, and
deliver, in the name of the designated transferee or transferees,
one or more new Bonds of any Authorized Denomination or
denominations of a like aggregate principal amount, having the
same stated maturity and interest rate, as requested by the
transferor; provided, however, that no Bond may be registered in
blank or in the name of "bearer" or similar designation.
At the option of the Holder, Bonds may be exchanged for
Bonds of any Authorized Denomination or Denominations of a like
aggregate principal amount and stated maturity, upon surrender of
the Bonds to be exchanged at the principal office of the Bond
Registrar. Whenever any Bonds are so surrendered for exchange,
the City shall execute (if necessary) , and the Bond Registrar �i
shall authenticate, insert the date of registration of, and
deliver the Bonds which the Holder making the exchange is �
entitled to receive.
All Bonds surrendered upon any exchange or transfer
provided for in this resolution shall be promptly canceled by the
Bond Registrar and thereafter disposed of as directed by the .
City.
All Bonds delivered in exchange for or upon transfer of '
Bonds shall be valid general obligations of the City evidencing
the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or
transfer. .
Every Bond presented or surrendered for transfer or
exchange shall be duly endorsed or be accompanied by a written
instrument of transfer, in form satisfactory to the Bond
Registrar, duly executed by the Holder thereof or his, her or its
attorney duly authorized in writing.
The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable
in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable
regulations of the City contained in any agreement with the Bond
Registrar, including regulations which permit the Bond Registrar
to close its transfer books between record dates and payment
dates. The Administrator is hereby authorized to negotiate and
execute the terms of said agreement.
266023.1 1 3
11. Rights Upon Transfer or ExchanQe. Each Bond
delivered upon transfer of or in exchange for or in lieu of any
other Bond shall carry all the rights to interest accrued and
unpaid, and to, accrue, which were carried by such other Bond.
12 . Interest Payment: Record Date. Interest on any
Bond shall be paid on each Interest Payment Date by check or
draft mailed to the person in whose name the Bond is registered
(the "Holder") an the registration books of the City maintained
by the Bond Registrar and at the address appearing thereon at the
close of business on the fifteenth (15th) day of the calendar
month next preceding such Interest Payment Date (the "Regular
Record Date") . Any such interest not so timely paid shall cease
to be payable to the person who is the Holder thereof as of the
Regular Record Date, and shall be payable to the person who is '
the Holder thereof at the close of business on a date (the
"Special Record Date") fixed by the Bond Registrar whenever money �I
becomes available for payment of the defaulted interest. Notice �
of the Special Record Date shall be given by the Bond Registrar
to the Holders not less than ten (10) days prior to the Special
Record Date.
13 . Treatment of Registered Owner. The City and Bond
Registrar may treat the person in whose name any Bond is
registered as the owner of such Bond for the purpose of receiving
payment of principal of and premium, if any, and interest
(subject to the payment provisions in paragraph 12 above) on,
such Bond and for all other purposes whatsoever whether or not
such Bond shall be overdue, and neither the City nor the Bond
Registrar shall be affected by notice to the contrary.
I' 14. Delivery; Application of Proceeds. The Bonds when
so prepared and executed shall be delivered by the Finance
Director to the Purchaser upon receipt of the purchase price, and
the Purchaser shall not be obliged to see to the proper
application thereof.
15. Fund and Accounts. There is hereby created a .
, ��
special fund to be designated the General Obligation State Aid
Street Bonds, Series 1994C Fund" (the "Fund") to be administered
and maintained by the Finance Director as a bookkeeping account
separate and apart from all other funds maintained in the
official inancial records of the Cit . The Fund shall be
f
Y
maintained in the manner herein specified until all of the Bonds
and the interest thereon have been fully paid. There shall be
maintained in the Fund two (2) separate accounts, to be
designated the "Construction Account" and "Debt Service Account" ,
respectively.
266023.1 1 4
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(i) Construction Account. To the Construction Account
there shall be credited the proceeds of the sale of the Bonds,
less accrued interest received thereon, and less any amount paid
for the Bonds in excess of $690,200. From the Construction
Account there shall be paid all costs and expenses of the
Project, including the cost of any construction contracts
heretofore let and all other costs incurred and to be incurred of
the kind authorized in Minnesota Statutes, Section 475.65; and
the moneys in said account shall be used only in accordance with
the rules and regulations of the Com�nissioner of Transportation
and as otherwise provided by law; provided that the proceeds of
the Bonds may also be used to the extent necessary to pay
interest on the Bonds due prior to the anticipated date of
commencement of the collection of taxes or moneys allotted or to
be allotted to the City from its account in the City's State-Aid
Street Fund.
(ii) Debt Service Account. There are hereby irrevocably
a ro riated and led ed to and there shall be credited to the
PP P P 5 ,
,
Debt Service Account: (a) all money allotted or to be allotted
to the City from its account in the City's State-Aid Street Fund
for payment of the Bonds; (b) all accrued interest received upon
' delivery of the Bonds; (c) all funds paid for the Bo�ds in excess
of $690, 200; (d) any collections of all taxes which may hereafter
be levied in the event that the money allotted or to be allotted
to the City from its account in the City's State-Aid Street Fund
herein pledged. to the payment of the principal and interest on
the Bonds are insufficient therefor; (e) all funds remaining in
the Construction Account after completion of the Project and
payment of the costs thereof; (f) all investment earnings on
funds held in the Debt Service Account; and (g) any and- all other
moneys which are properly available and are appropriated by the
governing body of the City to the Debt Service Account. The Debt
Service Account shall be used solely to pay the principal and
interest and any premiums for redemption of the Bonds and any
other general obligation bonds of the City hereafter issued by
the City and made payable from said account as provided by law.
No portion of the proceeds of the Bonds shall be used
directly or indirectly to acquire higher yielding investments or
to replace funds which were used directly or indirectly to
acquire higher yielding investments, except (1) for a reasonable
temporary period until such proceeds are needed for the purpose
for which the Bonds were issued and (2) in addition to the above
in an amaunt not greater than the lesser of five percent (5�) of
the proceeds of the Bonds or $100, 000. To this effect, any
proceeds of the Bonds and any sums from time to time held in the
Construction Account or Debt Service Account (or any other City
account which will be used to pay principal or interest to become
due on the bonds payable therefrom) in excess of amounts which
266023.1 1 5
under then-applicable federal arbitrage regulations may be
invested without regard to yield shall not be invested at a yield
in excess of the applicable yield restrictions imposed by said
arbitrage regulations on such investments after taking into
account any applicable "temporary periods" or "minor portion"
made available under the federal arbitraqe regulations. Money in
the Fund shall not be invested in obligations or deposits issued
by, guaranteed by or insured by the United States or any agency
or instrumentality thereof if and to the extent that such
investment would cause the Bonds to be "federally guaranteed"
within the meaning of Section 149(b) of the Internal Revenue Code
of 1986, as amended (the "Code") . ,
16. Restoration of Moneys. If any moneys of the City �,
other than moneys received from the City State-Aid Street Fund I
are used for the payment of the Bonds, the moneys so used shall
be restored to the appropriate fund from the moneys next received
by the City from the Construction or Maintenance Account in the
City's State-Aid Street Fund which are not required to be paid
into a debt service account for other obligations.
17. Pledqe of Allotted Monevs. There is hereby
irrevocably pledged and appropriated to the Debt Service Account
established herein moneys allotted or to be allotted to the City
from its account in the City's State-Aid Street Fund in an amount
sufficient to pay the principal of and interest on the Bonds
issued hereunder as they respectively become due.
18. Resolution Certifyinq. The City Council hereby
certifies to the State Commissioner of Transportation that the
amount of money required annually for the payment of principal
and interest on the Bonds is set forth on Exhibit A, and requests
the Finance Director to transmit this resolution� and Exhibit A to
the Commissioner of Transportation, all in accordance with
Minnesota Statutes, Section 162. 18, Subdivision 4 . Upon receipt
from the Commissioner of Finance of the annual amount of money
needed for payment of principal and interest due each year, the
same shall be deposited in the Debt Service Account established
herein.
19. Coverage Test. The City declares and determines
that the state-aid allotments, together with other funds herein
pledged for the payment of the Bonds (other than cash on hand) ,
w' ected when due soduce at least five ercent (5�)
ill if coll P
, , P
in excess of the amount needed to meet when due the principal and
interest payments on the Bonds, except for interest payable
hereunder from cash on hand on the date of the Bond closing and
pledged for such purpose.
z�o23.� 16
,I
20. Defeasance. When all Bonds have been discharged
as provided in this paragraph, all pledges, covenants and other '
rights granted by this resolution to the registered holders of
the Bonds shall, to the extent perntitted by law, cease. The City '
may discharge its obligations with respect to any Bonds which are '
due on any date by irrevocably depositing with the Bond 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 Bond Registrar
a sum sufficient for the payment thereof in full with interest
accrued 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 Bond Registrar on or before
that date a sum sufficient for the payment thereof in full,
provided that notice of redemption thereof has been duly given.
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 suitable banking institution
qualified by law as an escrow agent for this purpose, cash or
securities described in Minnesota Statutes, Section 475. 67,
Subdivision 8, bearing interest payable at such times and at such
rates and maturing on such dates as shall be required, subject to
sale and/or reinvestment, to pay all amounts to become due
thereon to maturity or, if notice of redemption as herein
required has been duly provided for, to such earlier redemption
date.
21. Compliance with Reimbursement Bond Reaulations.
The provisions of this paragraph are intended to establish and
provide for the City's compliance with United States Treasury
Regulations Section 1. 150-2 (the "Reimbursement Regulations")
applicable to the "reimbursement proceeds" of the Bonds, being
those portions thereof which will be used by the City to
reimburse itself for any expenditure which the City paid or will
have paid prior to the Closing Date (a "Reimbursement
Expenditure") .
The City hereby certifies and/or covenants as follows:
(a) Not later than 60 days after the date of payment of a
Reimbursement Expenditure, the City (or person
designated to do so on behalf of the City) has made or
will have made a written declaration of the City's
official intent (a "Declaration") which effectively (i)
states the City's reasonable expectation to reimburse
itself for the payment of the Reimbursement Expenditure
out of the proceeds of a subsequent borrowing; (ii)
gives a general and functional description of the
266023.1 1 7
property, project or program to which the Declaration
relates and for which the Reimbursement Expenditure is
paid, or identifies a specific fund or account of the
City and the general functional purpose thereof from
which the Reimbursement Expenditure was to be paid
(collectively the "Project") ; and (iii) states the
maximum rinci al amount of de
bt ex ected to be issued
P P
P
by the City for the purpose of financing the Project;
provided, however, that no such Declaration shall
necessarily have been made with respect to: (i)
"preliminary expenditures" for the Project, defined in
the Reimbursement Regulations to include engineering or
architectural, surveying and soil testing expenses and
similar prefatory costs, which in the aggregate do not
n � o
of the Bonds and ii
� ceed 0 of the issue rice
ex 2 � p , ( )
a de minimis amount of Reimbursement E�cpenditures not
in excess of the lesser of $100, 000 or 5� of the
proceeds of the Bonds. Notwithstanding the foregoing,
es ect to an Declaration made b the Cit
with r p y Y Y
between January 27, 1992 and June 30, 1993, with
enditure made rior to
respect to a Reimbursement Exp p
March 2, 1992 , the City hereby represents that there
exists objective evidence, that at the time the
Expenditure was paid the City expected to reimburse the
cost thereof with the proceeds of a borrowing (taxable
or tax-exempt) and that expectation was reasonable.
(b) Each Reimbursement Expenditure is a capital expenditure
or a cost of issuance of the Bonds or any of the other
t es of ex enditures described in S
ection 1.150-
YP P
2 (d) (3) of the Reimbursement Regulations.
(c) The "reimbursement allocation° described in the
Reimbursement Regulations for each Reimbursement
E�enditure shall and will be made forthwith following
but not rior to
the issuance of
the Bonds and in al1
( P )
events within the period ending on the date which is
the later of 18 months after payment of the
Reimbursement Expenditure or three years after the date
on which the Project to which the Reimbursement
Expenditure relates is first placed in service.
(d) Each such reimbursement allocation will be made in a
� e of Bond roceeds
writin that evidences the Cit s us p
g Y
to reimburse the Reimbursement Expenditure and, if made
within 30 days after the Bonds are issued, shall be
treated as made on the day the Bonds are issued.
Provided, however, that the City may take action contrary to any
of the foregoing covenants in this paragraph 21 upon receipt of
266023.t 1 8
an opinion of its Bond Counsel for the Bonds stating in effect
that such action will not impair the tax-exempt status of the
Bonds.
22 . General Obliqation Pledge. For the prompt and
full payment of the principal and interest on the Bonds, as the
same respectively become due, the full faith, credit and taxing
powers of the City shall be and are hereby irrevocably pledged.
If the balance in the Debt Service Account is ever insufficient
to pay all principal and interest then due on the Bonds and any
other bonds payable therefrom, the deficiency shall be promptly
paid out of any other funds of the City which are available for
such purpose, and such other funds may be reimbursed with or
without interest from the Debt Service Account when a sufficient
balance is available therein.
23 . Certificate of Reqistration. The City Clerk is
hereby directed to f ile a certified copy of this resolution with
the County Auditor of Dakota County, Minnesota, together with
such other information as he or she shall require, and to obtain
the County Auditor's certificate that the Bonds have been entered
in the County Auditor's Bond Register.
24. Records and Certificates. The officers of the
City are hereby authorized and directed to prepare and furnish to
the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, 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 are required to show the facts
relating to the legality and marketability of the Bonds as the
same appear 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 as to the
facts recited therein.
25. Neqative Covenant as to Use of Proceeds and .
Project. The City hereby covenants not to use the proaeeds of
the Bonds or to use the Project, or to cause or permit them to be
used, or to enter into any deferred payment arrangements for the ��,
cost of the Project, in such a manner as to cause the Bonds to be
"private activity bonds" within the meaning of Sections 103 and �
141 through 150 of the Code. '
�o
19
2 23.1
26. Tax-Exem�t Status of the Bonds; Rebate. The City
shall comply with requirements necessary under the Code to
establish and maintain the exclusion from gross income under
Section 103 of the Code of the interest on the Bonds, including
without limitation (1) requirements relating to temporary periods
for investments, (2) limitations on amounts invested at a yield
greater than the yield on the Bonds, and (3) the rebate of excess
investment earnings to the United States if the Bonds (together
with other obligations reasonably expected to be issued and
outstandinq at one time in this calendar year) exceed the small-
issuer exception amount of $5,000, 000.
For purposes of qualifying for the exception to the federal
arbitrage rebate requirements for qovernmental units issuing
$5, 000, 000 or less of bonds, the City hereby finds, determines
and declares that (1) the Bonds are issued by a governmental unit
with general taxing powers, (2) no Bond is a private activity
bond, (3) ninety-five percent (95�) or more of governmental
activities of the City (or of a governmental unit the
jurisdiction of which is entirely within the jurisdiction of the
City) , and (4) the aggregate face amount of all tax-exempt bonds
(other than private activity bonds) issued by the City (and all
subordinate entities thereof, and all entities treated as one
issuer with the City) during the calendar year in which the Bonds
are issued and outstanding at one time is not reasonably expected I
to exceed $5,000, 000, all within the meaning of Section
148 (f) (4) (D) of the Code.
27. Designation of 4ualified Tax-Exempt Obligations. �
In order to qualify the Bonds as "qualified tax-exempt
obligations" within the meaning of Section 265(b) (3) of the Code, '
the City hereby makes the following factual statements and j
representations: I
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as 1
defined in Section 141 of the Code; ',
(c) the City hereby designates the Bonds as
"qualified tax-exempt obligations" for purposes of
Section 265(b) (3) of the Code;
(d) the reasonably anticipated amount of
tax-exempt obligations (other than private activity
bonds, treating qualified 501(c) (3) bonds as not being
private activity bonds) which will be issued by the
City (and all entities treated as one issuer with the
City, and all subordinate entities whose obligations
266023.1 2 0
are treated as issued by the City) during this calendar
year 1994 will not exceed $10,000,000; and
(e) not more than $10,000,000 of obligations
issued by the City during this calendar year 1994 have
been designated for purposes of Section 265 (b) (3) of
the Code.
The City shall use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate
the designation made by this paragraph.
28. Severabilitv. If any section, paragraph or
provision of this resolution shall be held to be invalid or
unenforceable for any reason, the invalidity or unenforceability
of such sectian, paragraph or provision shall not affect any of
the remaining provisions of this resolution.
29. Headinas. Headings in this resolution are
included for convenience of reference only and are not a part
hereof, and shall not limit or define the meaning of any
provision hereof.
266023.1 2 1
The motion for the adoption of the foregoing resolution
was duly seconded by member and, after a full
discussion thereof and upon a vote being taken thereon, the
following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and
adopted.
266023.1 2 2
ADOPTED this day of July, 1994.
E.B. McMenomy, Mayor
ATTEST:
Susan M. Walsh, City Clerk
Motion by: Seconded by:
Voted in favor:
Voted Against:
266023.1 2 3
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF ROSEMOUNT
I, the undersigned, beinq the duly qualified and acting
Clerk of the City of Rosemount, Minnesota, DO HEREBY CERTIFY that
I have compared the attached and foreqoing extract of minutes
with the original thereof on file in my office, and that the same
is a full, true and complete transcript of the minutes of a
meeting of the City Council of said City, duly called and held on
the date therein indicated, insafar as such minutes relate to
considering proposals for, and awarding the sale of, $700, 000
General Obligation State Aid Street Bonds, Series 1994C of said
City.
WITNESS my hand and the seal of said City this day
of , 1994.
Clerk
(SEAL)
266023.1 2 4 '
EXIiIBIT A '
CERTIFICATE TO T�iE COMMISSIONER OF
TRANSPORTATION OF THE AMOUNT OF MONEY REQUIRED
ANNUALLY FOR PAYMENT OF PRINCIPAL AND '
INTEREST ON $700,000 GENERAL OBLIGATION '
STATE AID STREET BONDS, SERIES 1994C ',
� A. WHEREAS, the City of Rosemount, Minnesota {the "City") , ',
has sold its General Obligation State Aid Street Bonds, Series
1994C, dated August 1, 1994 (the "Bonds") , in the principal
amount of $700,000, to provide funds for street improvements �,
relating to a state aid street project in the City in accordance
with law; and
B. WHEREAS, said City has irrevocably pledged to the debt
service account from which the Bonds are payable that amount of I
their future state-aid allotments as is permissible by law and
needed to pay the principal and interest thereon, which principal
payments shall be made from the City's State-Aid Street Fund and
the interest payments made from the City's Normal Maintenance
Account in the City's State-Aid Street Fund, all as detailed in
the resolution authorizing the issuance of the Bands; and
C. WHEREAS, the amount of money required annually for
payment of principal and interest on said obligations is as
follows:
Date Principal Interest Total Due
4-1-95 $65, 000 $ $
10-1-95
4-1-96 60, 000
10-1-96
4-1-97 60,000
10-1-97
4-1-98 65, 000
10-1-98
4-1-99 65, 000
10-1-99
4-1-2000 70,000
10-1-2000
4-1-2001 75, 000
10-1-2001
4-1-2002 75, 000
10-1-2002
4-1-2003 80, 000
10-1-2003
4-1-2004 85, 000
266023.1 A-1
NOW THEREFORE, BE IT RESOLVED that the Commissioner of
Transportation be and is hereby requested to keep a bond record
in his or her office for the City.
BE IT FURTHER RESOLVED that the Commissioner of
Transportation be and is hereby requested upon receipt of this
certification to annually certify to the Commissioner of Finance
the sum of money .required for the payment of principal and
interest on the Bonds.
z�o23.t A-2
�''