HomeMy WebLinkAbout6.f. Accept Bids / Award Sale G.O. Municipal Building Refunding Bonds, 1993D 1 t
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CITY OF R4SEMOUN'T
EXECIITIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: July 20, 1993
AGENDA ITEM: Accept Bids and Award Sale-G.O. AGENDA SECTION:
Municipal Bldg Refunding Bonds, Series 1993D Old Business
PREPARED BY: AGENDA� #��/� ,/,�
Jeff May, Fiirlance Directox� lit� Tj� ��
ATTACI�+iENTS: ' Draft Resolution and APP VED Y•
Official Statement (See Agenda Item #�)
At ].0 :30 A.M. , Tuesday, July 20, 1993, sealed bids for G.O. Municipal
Building Refunding Bonds, Series 1993D, will be opened and the results
tabulated at the offices of Springsted Inc. Dan O'Neill, from Springsted,
will be present at the July 20th City Council meeting to give Springsted' s
recommez�dation for the issuance of these bonds and to answer any questa�ans
that you may have.
Because the bid opening is not until Tuesday morning, you wil3 receive
information re+�arding the bids at the meeting that evening.
RECONII�lENDED ACTION: Motion to adopt A RESOLUTTON ACCEPTING OFFER ON THE
SALE OF $845, Q00 GENERAL OBLIGATION MUNICIPAL BLTILDING REFi7NDING BONDS,
SERIES 1993I�, PROVIDING FOR THEIR ISSUANCE A1�D LEVYING A TAX FOR THE
PAYMENT THEREOF.
COUNCIL ACTIONs
�
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CITY OF ROSEMOUNT
DAROTA COUNTY� MINNESOTA
RESOLIITION 1993 -
RESOLIITION ACCEPTING OFFER ON 8AL8 OF
$84y,000 GENERAL O$LIGATION
�IINICIPAL BIIILDING REFIINDING BONDB, 8ERI88 1993D
FROVIDING FOR THEIR I88IIANCS
AI+TD LEVYING A TAB FOR THS PAYMENT THEREOF
WHEREAS, the City Council of the City af Rosemount, Minnesota
(the "City") has heretofore determined and deelared that it is
necessary and expedient to provide moneys for a crossover
refunding of the City's General Obligation Municipal Building
Bonds, Series 1986, dated April 1, 1986 (the "Prior Bonds") which
mature in 1996, and thereafter; and
WHEREAS, `$810,000 of the principal amount of the Prior Bonds
which mature on or after February 1, 1996, are caliable on
February 1, 1995, at a price of par plus accrued interest as
provided in the resalution of the City Council, adopted on
March 4, 1986, authorizing the issuance of the Prior Bonds {the
"Prior R�solution") ; and -
WSEREAS, the refunding of the ca11ab1e Prior Bonds, is consistent
with cavenants made with the holders thereof, and is necessary
and desirable for the reduction of debt service cost to the City;
and
NHEREAS, the City Council has heretofore determined and declared
that it is necessary and expedient to issue $845,Q00 Generai
Obligation Municipal Building Refunding Bonds, Series 1993D of
the City, pursuant to Minnesota Statutes, Chapter 475, to provide
moneys fcar a crossover refunding of the callable Prior Bonds; and
WHEREAS, the following affers were received, opened and recorded
at the aifices of Springsted Incorporated at 10:30 a.m. this same
day•
.
Bid Interest Rate Net Inte�est Cost
� , � •�
NOW, THEREFORE, BE TT RESOLVED by the City Council of the City of
Rosemaunt, Minnesota, as follows:
1. Acce,�tance of Offer. The offer of
(the "Furchaser") ,
to purchase $845,000 General Obligation Municipal Building ',
Refunding Bonds, Series 1993D of the City (the "Bonds" or
the �`Refunding Bonds", or individually a "Bond") , at the
rat�� of interest hereinafter set farth, ar►d to pay therefor
the �um of $ , plus interest accrued to sett3ement,
is h+ereby found, determined and declared to be the most
fava�able o€fer reeeived and is hereby accepted, and the
Bond� are hereby awarded to the Purchaser. The
Administrator is directed to retain the deposit of the
Purc�aser and to forthwith =eturn to the others makir�g
offers their good faith deposits.
2. Tit�.,g: Oriqinal Issue Date: enominations; Maturities. The
Bonds shall be titled "General Obligation Municipal Buildinq
Refunding Bonds, Series 1993D", shall be dated August 1,
1993, as the date of original issue and shall be issued.
fort�hwith on or after such date as fu11y registered bonds.
The Bonds shal2 be numbered from R-i upward in the denomin-
ation of $5, 000 each or in any integral multiple thereaf af
a single maturity. The Bonds shall mature an February l in
the years and amounts as follows;
ea au t . ear $�un _t
194� ------- --- $1I0,040 _ 2Q00 , . �125;OOQ
1997 $110, 000 2001 130,OOQ
199$ 115,000 2002 135,-000
1999 120,000
3 . Pur ose: Refunding Findings. The Bonds shall provide funds
for a crossover refunding of the City's caliabl� Prior Bonds
(the� "Refunded Bonds") (the "Refunding") . It is hereby
found, determined and declared that the Refundinq is
pursuant ta Minnesota Statutes, Section 475.67� 1I1d shall
result in a reduction of debt servicQ cost to the City. The
pre�ent value of the dollar amount af the debt service on
the Bonds is � lower than the present value of the
debt service on the Refunded Bonds, computed in accordance
with Minnesota Statutes, Secti.on 476. 67, subdivisions 12 and
13.
4. Interest. The Bonds shall bear interest payable semi-
annually on February 1 and August l of each year {each, an
"Interest Payment Date") , commencing August 1, 1994,
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calcul.ated on the basis of a 360-day year o� twelve 30-day
months, at the respective rates per annum set forth opposite
the maturity years as follows:
Maturity Interest Maturity Interest
Ye�r Rate Year Rate
1996 $ 2000 $
1997 2001
1998 20fl2
1999
5. No R�demption. The Bor�ds shall not be subject to redemption
and grepayment prior to their maturity.
6. �ond Registrar. , in
, Minnesota, is appointed to act as bond
regi�strar and transfer agent with respect to the Bonds (the
"Bond Registrar") , and shall do so unless and until a
succ+essor Bond Registrar is duly appointed, all pursuant to
any �ontract the City and Bond Registrar sha11 execute which
is c�nsistent herewith. The Bond Registrar shall also serve
as paying agent unless and until a successor paying aqent is
duly appointed. Principal and interest on the Bonds shall
be paid to the registered holders (or record holders� of the
Bond�c in the manner set forth in the form of Bond and
paragraph 12 of this resolution.
_ _- 7 . Form` �f Bond. The_ Bonds, tage_ther=-vr�tir--t�e Bond Registrar'_s__ - .
-- Certificat�--�f Authenticatian, the form of-Ass.ignment and
the registration information thereon, shall be in
substantially the following form:
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,
UNITED STATES OF AMERICA
STATE OF MINNESOTA
DAKOTA COUNTY
CITY OF ROSEMOUNT
R- � $
GENER.AL OBLIGATION MUNICIPAL BUILDING
REFUNDING BOND, SERIES 1993D
INTEREST MATURITY DATE OF
RATE DATE ORIGINAL ISSUE CUSIP
August 1, 1993
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the Gity of Rosemount,
Dakota Caunty, Minnesota (the "Issuer") , certifies that it is
indebted and for value received promises to pay to the registered
owner specified above, or registered assigns, without option of
prepayment in the manner hereinafter set forth, the principal
amount specified above, on the maturity date specified above, and
to pay interest thereon semiannually on February l and August 1
_ , of each year (each, an "Interest Payment Date") , commencing _
- - August 3.�---�-994, at the rat� per annu�t specified -above (calculated
on the basis of a 360-day year of twelve 30-day months) until the
principal sum is paid or has been provided for. This Bond will
bear int�rest from the most recent Znterest Payrnent Date to which
interest has been paid or, if no interest has been paid, from the
date of original issue hereaf. 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 e:ach Interest
Payment Date by check or draft rnailed to the person in whose name
this Bond is registered (the "Holder" Qr "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 i�ayabie to the person who is
the Holder hereof as of the Regular Record Date, and shall be
payable t4 the person who is the Holder hereof at the close of
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business on a date (the "Special Record Date") fixed by the Bond
Registrar �henever money becomes available for payment of the
defaulted interest. Notice of the Special Record Date shall be
given to B�ndholders not less than ten days priar to the Special
Record Dat�. The principal of and premium, if any, and interest
on this Bo�d are payable in lawful money of the United States of
America.
REFERENCE �S HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND
SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL
PURPOSES H�VE THE SAME EFFECT AS IF S�T FORTH HERE.
IT ZS 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 happen and to be performed, prec�dent 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 t2�e date of original issue
hereof and' the date of its issuance and delivery to the original
purchaser, does not exceed any can�titutional or 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 an its behalf by the facsimile signatures of its Mayor
- and its Administrator. �
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Date • e b .
of ' on• bl
R ` istrati Re istra
�I�J g Y'
Payable at:
BOND REGI�'�I'RAR' S CITY OF ROSEMOUNT
CERTIFICA'I��E OF • DAKOTA COUNTY, MINNESOTA
AUTHENTI C��T'I C1N
This Bond '';is one of the
Bonds desc� ibed in the
Resolutior��mentioned 1s/ Facsimile
within. Mayor
s acsimile
,/ / F
Administrator
Bond Regi ' rar
B .
Y
Authoriled Signature
'
,
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i
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ON REVERSE OF BOND
�to Redempi��ion. The Bonds of this issue (the "Bonds") are not
subject t� redemption and prepayment prior to their maturity.
Issuance•IIPur ose• General Ob i ation. This Bond is one of an
issue in ', he total principal amount of $845,000, a11 of like date
of origin�l issue and tenor, except as to number, maturity,
interest �ate and denomination, which Bond has been is�ued
pursuant !�o and in full confarmity with the Constitution and laws
of the Sti�te of Minnesota and pursuant to a resolution adopted by
the City i�ounci2 of the Issuer on 3uly 20, 1993 (the
"Resoluti�n") , for the purpose of providing funds sufficient for
a crossovl�r refunding of the Issuer's General Obligation
Municipai' Building Bonds, Series 1986, dated April l, 1986, which
mature on February 1, 1996, and thereafter. This Bond is payable
out of th� Escrow Account and the Debt Service Account of the
Issuer's �General Obliqation Municipal Building Refunding Bonds,
Series 19�93D Fund. This Bond constitutes a general obligation of
the Issue�, and to provide moneys for the prompt and full payment
of its pr�#incipal, premium, if any, and interest when the same
become du�,�, the fuil faith and credit and taxing powers of the
Issuer ha�ve been and are hereby irrevocably pledg+ed.
Denomina ''ons; Exchange; Resoiution. The Bonds are issuable
solely as fully registered bonds in the denominations of $5,000
� and integ�ral multiples thereof of a single maturity and- are-
- exchangea,ble for ,fully registered Bonds_ of other authorized -
denominat,ions in equal aggregate principal _amounts at the
principal� office of the Bond Registrar, but only in the manner
and subj��ct to the limitations provided in the Resolution. .
Referenceq is hereby made to the Resolution for a description of
the right4s and duties of the Bond Registrar. Copies of the
Resolutialn are on file in the principal affice of the Band
Registrar'.
Transfer. This Bond is transferable by the Holder in person or
by his, hlier 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 condi'tions provided in the Resolution and to reasonable
regulatit�ins of the Issuer contained in any agreement with the
Bond Rega�strar, Thereupon the Issuer sha.11 execute and the Bond
Registra�"�, shall authenticate and deliver, in exchange for this
Band, one�� ar more new fully registered Bonds in the name of the
transferekle (but not registered in blank or to "bearer" or similar
designati;lon) , of an authorized denomination or denominations, in
2419T8
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aggregate princ',ipal amount equal to the principai amount of this
Bond, of the same maturity and bearing interest at the same rate.
Fees upon ��ransfer or Loss. The Bond Registrar may require
� payment o�' a sum sufficient to cover any tax or other
governmen�2�1 charge payable in connection with the' transfer or
exchange af thi,s Bond and any legal or unusual costs regarding
transfers and lost Bonds.
Treatment�pf Reqistered Owners. The Issuer and Band Registrar
may treat the person in whose name this Bond is registered as the
owner her�of for the purpose of receiving payment as herein
provided �'except as otherwise provided on the reverse side hereof
with resp�ct to the Record Date} and for all other purposes,
whether o� not this Bond shall be overdue, and neither the Issuer
nor the Ba►nd Registrar shall be affected by notice to the
contrary.
Authentic�tion. This Bond shall not be valid or become
obligatar�; for any purpose or be entitled to any security unless
the Certi�'icate of Authentication hereon shall have been executed
by the Bortd Registrar.
4ualified„wTax-Exempt Obliqation. This Bond has been designated
by the Is��aer as a "qualified tax-exempt obligation" for purposes
of Sectio�t 265 (b) (3) of the Internal Revenue Code of 1986, as
amended.
. _ ABBREVIATIONS . _ :
The follo�t'ing abbreviations, when used in the inscription on the
face of t2�is Bond, shall be construed as though they were written
out in full according to �pplicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - 'as tenants by the entireties
JT TEN - �s joint tenants with right of survivorship
�nd not as tenants in common
UTMA - as custodian for
�Cust) (Minor)
under the Uniform
jState)
Tr�nsfers to Minors Act
Additional abbreviations may also be used
though not in the above list.
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ASSIGNMENT
For value recei'ved, the undersigned hereby sells, assigns and
transfers unto
the within Bond and does
hereby ir�'�vocably constitute and appoint
attorney �.o transfer the Bond on the books kept for the
registration thereof, with full power of substituti�n in the
premises.
Dated:
Notiee: 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 ar any change whatever.
Signature Guaranteed:
Signature�s) must be guaranteed by a natianal bank or trust
company or by a brokerage firm having a membership in one of the
major stock exchanges.
The Bond 1�egistrar will not effect transfer of this Bond unless
_ _
the information concerning the transferee requested below is
provided. ,
Name and Address:
{Include information for all joint awners
if the Bond is held by joint aecount. )
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8. Execution; Temporary Bonds. The Bonds shall be executed on
beha�.'f of ' the City by the signatures of its MayQr and
Administrator and the seal of the City, if a�y, shall be
omitted; provided that both of such signatures may be
printed facsimiles. In the event of disability or
resignation or other absence of either such officer, the
Bond� may be signed by the manual or facsimile signature of
that officer who may act on behalf of such absent or '
disabled afficer. Sn case either such officer whose
signature ar facsimile of whose signature shall appear on
the Bo�nds ' sha11 cease to be sueh officer before the delivery
of tl�e 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 Administratar. Such -
temporary bonds sha11, upon the printing of the definitive
bonds and the execution thereof, be exchanged therefor and
cancelled.
9. Authentication. No Bond shall be valid or abiigatory for
any purpose or be entitled to any security or benefit under
this 'resolution unless a Certificate of Authentication on
- such `Band, substantially in the form hereinabove set forth,
shall have been duly ex�cuted by an autharized _ - :
_ rep�ssentative 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 t�ie Certifieate of Authentication on the Bond and by
inserting as the date of registration in the space provided
the date on whzch the Bond is authenticated, except that for
purp�oses 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, 1993 .
The Certificate of Authentieation so executed on each Bond
shail be conclusive evidence that it has been authenticated
and �ielivered under this resolution.
10. Registration; Transfer; Exchange. The City will cause to be
kept at the principal office of the Bond Registrar a bond
regi�ter 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
241478
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of trannsfers 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 shali execute (if
nec��sary) , and the Bond Registrar shall authenticate,
ins�rt 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
Bonc�s 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
offi�e of the Bond Registrar. Whenever any Bonds are so
surrendered for exchange, the City shall execute (if _
necessary) , and the Bond Registrar 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 cancelled by the
Bond Registrar and thereafter disposed of as direeted by the
_ C_ity, ,.�__ _ __ - : a:
All �onds delivered in exchange for or upon transfer of
Bonds sha11 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
sha].l 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 i;ts attorney duly authorized in writing. -
The Bond Registrar may require payment of a sum sufficient
to cpver any tax or other governmental charge payable in
connection with the transfer or exchange of any 8dnd and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shali also be subject to reasonable regulations of
the City contained in any agreement with the Bond Registrar,
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including regulatians which permit the Bond Registrar to
close its transfer boaks between record dates and payment
dates. The Administrator is hereby authorized to negotiate
and execute the terms of said agreement.
11. Righ�s Upon Transfer or Exchanqe. Each Bond delivered upon
tran�fer 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 vr draft
mail�d to the person in whase name the Bond is registered
(the "Holder") on the registration books of the City
maintained by the Bor�d Registrar and at the` addr�:ss
appearing thereon at the close of business on the fifteenth
(i5t�) 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
persi�n who is the Holder thereof as of the Regular Reeord
Date, and shall be payable to the person who is the Holcier
thereof at the close of business on a date (the "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 by the �ond
Registrar to the Holders not less than ten (10) days prior
to the Special Record Date. _
13 , Treatment of Registered Owner-.,. The City and Bo�d Re�ist�ar _ _;
- 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 ta the eontrary.
14. Delivery; Applicatian of Proceeds. The Bonds when so
prepared and executed shall be delivered by the
Administrator to the Purchaser upon receipt of the purchase
pric�, arid the Purchaser shall not be nbliged to see to the
proper application thereof. -
15. Fund and Accounts. For the convenience and proper
administration af the moneys to be borrowed and repaid on
the Bonds and the Refunded Bonds, and to make adequate and
specific security to the Purchaser and holders from time to
time of the Bonds and Refunded Bonds, there is hereby
created a special fund to be designated the "General
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Obligation Municipal Building Refunding Bonds, Series 1993D
Fund" (the "Fund") to be administered and maintained by the
Finance Director as a k�ookkeeping account separate and apart
from ail other funds maintained in the official financial
� records of the City. The Fund shall be maintained in the .
manner herein specified until all of the Refunded Bonds and
the Bands herein authorized and the interest thereon shall
have been fully paid. There shall bs maintained in the Fund
two separate accounts, to be designated the "Escrow Account"
and "Debt Service Account" , respectively.
(i) Escrow Account. The Escrow Aceount shall be
maintained as an escrow account with
(the "Escrow
Agent") in ,
Minnesota, which is a suitable financial
institution within the State whose deposits are
insured by the Fed.eral Deposit Insurance
Corporation and whose combined capital and surplus
is not less than $500, 000. All proceeds of the
sale of the Bonds shall be received by the Escrow .
Agent and applied to fund the Escraw Account or to
pay costs of issuing the Bonds. Proceeds of the
Bonds not used to pay casts of issuance are hereby
irrevocable pledged and appropriated to the Escrow
Account, together with all investment earnings
thereon. The Escrow Account shall be invested in
securities maturing or callable at the option of
:the ho3der on ,such dates -and bearing interesf at
_ _ T _ __ _ _ _ ___ . _ _
such rates as shall be rsqu�r_ed ta provide
sufficient funds, together with any cash or other
funds retained in the Escrow Account, (i) to pay
when due the interest to accrue on the Refunding
Bonds to and including February 1, 1995; and (ii)
to pay when called for redemption on February 1,
1995, the principal amount of the Refunded Bonds.
From the Escrow Account there sha].1 be paid {1)
all interest on the Refunding Bonds herein
authorized to and including February 1, 1995, and
(2) the principal of the Refunded Bonds due by
reason of their call for redemption on February 1,
1995. The Escrow Account shall be irrevocable
appropriated to the payment of the interest on the
Crossover Refunding Bonds herein authorized until
the proceeds of the Bonds are applied to payment
of the Refunded Bonds. The moneys in the Eserow
Account shall be used solely for the purposes
herein set forth and for no other purp�tse, except
that any surplus in the Escrow Account may be
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remitted to the City, all in aceordance with an
agreement (the "Escrow Agreement") by and between
the City and Escrow Agent, a form af which
agreement is on file in the office of the
Administrator. Any moneys remitted to the City
upon termination of the Escrow Agreement shall be
deposited in the Debt Service Account.
(ii) Debt Se�rvice Account. To the Debt Service Account
there is hereby pledged and irrevocable
appropriated and there shall be credited: (1) any
- balance remitted to the City upon the termination
of the Escr�w Agreement; (2) any balance remaining
an February 2, 1995, in the Debt Service Account
of the General tlbligation Municipal Building
Bonds, Series 1986 Fund created by the resolution
adopted by the City on March 4, 1986, which
resolution authorized the issuance of the Prior
Bonds; (3) all investment earnings on funds in the
13ebt Service Account; (4) the taxes herein levied
for the payment of the Bonds; (5) any and all -
other moneys which are properly available and are
appropriated by the governing body of the City to
�he Debt Service Account, The amount of any
surplus remaining in the Debt Service Account when
the Bonds and interest thereon are paid sha11 be
used consistent with Minnesota Statutes, Section
475.61, Subdivision 4.
The moneys in the Debt Service Account shall be used soiely
to pay the principal of and interest on the Bonds or any
other bonds hereafter issued and made payabl.e from the Fund.
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 (2j 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 Fund {or
any other City account which will be used to pay principal
and interest to become due on the Bonds) in excess of
amounts which under the applicable federal arbitrage
reguiations may be invested without regard as to yield shall
not be invested in excess of the applicable yield
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restrictions imposed by the arbitrage regulations on such
investments after taking into account any applicable
"temporary periods" or "minor portian" made availabie under
the federal arbitrage regulations. In addition, the
proceeds af the Bonds and money in the Fund shali not be
invested in obligatians or deposits issued by, guaranteed by
or insured by the United States or any aqency or
instrumentality thereof if and ta the extent that such
investment would cause the Bonds to be "federally
guaranteed" within the meaning cf Seotion 149(b) of the
Internal Revenue Code af 1986, as amended �the "Code") .
T6. Prior Bonds; Security, Until retirement of the Prior Bonds,
all provisions theretofore made for the security thereof
shall be observed by the City and all of its officers and
agents.'
17. Tax Levys Cancellation of Certain Levies Relating to the
Refunded Bonds: Coveraqe Test. To pravide monies for the
payment of principal and interest on the Bonds th�re is
hereby levied upan all of the taxable praperty in the City a
direct annual ad valorem tax which shall. be spread upon the
tax rvlls and collected with and as part of, other general
property taxes in said City far the years and in the amounts
as follows:
Year of Tax Year of Tax
� Levy Coliection o nt
1994 1995 $
1995 1996
1996 : 1997
1997 1998
1998 1999
1999 200Q
2-000 2001
Said tax levies are such that if collected in fuli they,
together with estimated collections of investment earnings
and other revenues herein pledged for the payment of the
Bonds will, if collected w�en due, produce at -least five
percent in excess of the amount needed to meet when due the
principal and interest payments on the Bonds.
The tax levies shall be irrepealable so lang as any of said
Refunding Bonds are outstanding and unpaid, provided that
the City reserves the right and power to reduce the levies
in the manner and to the extent permitted by Minnesota
Statutes, Section 4'75.61(3) .
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Upon payment of the Refunded 'Bonds the taxes levied in
paragraph 16 of the March 4, 1986, resolutian authorizing
the issuanee of the Prior Bonds for the years 1994 through
2000 far collection in 1995 through 2001 shall be canceled.
18. General Obligation Pledqe. For the prompt and full ,payment
of the principal of and interest an the Bonds as the same
respectively become due, the full faith, credit and taxing
powers of the City shall be and are hereby irrevacably
pledged. If the balance in the Escrow Account or Debt
Service Account is ever insufficient to pay all principal
and interest then due on the Bonds and any othe= 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 ather funds may be reimbursed with or
without interest from the Escrow Account or Debt Service
Account when a sufficient balance is available therein.
19. Securities, Escrow A,gent. Securities purchased from moneys
in the Escrow Account shall be limited to securities set
forth in Minnesota Statutes, Section 475.67, Subdivision 8,
and an� amendments or supplements thereto. Secu�ities
purchased from the Escrow Account shall be purchased
simultaneously with the de2ivery of the Bonds. The City
Council has investigated the facts and hereby finds and
determines that the Escrow Agent is a suitable financial
institution to act as escrow agent.
20. Redemption of Prior Bonds. The Prior Bonds which mature in
1996 and thereafter shall be redeemed and prepaid on
February 1, 1995, in accordance with the terms and
conditions set forth in the Notice of Cail for Redemption
attached hereto as Exhibit A, which terms a:nd conditions are
hereby approved and incorporated herein by reference.
21. Escrow Agreement. On or prior to the delivery of the Bonds
the Mayor and Clerk shall, and are hereby authorized and
directed to, execute on behalf of the City the Escrow
Agreement. The Escrow Agreement is hereby approved and
adopted and made a part of this resolution, and the City
covenants that it will promptly enfarce all provisions
thereof in the event of default thereunder `by the Escrow
Agent.
22. Purchase of SLGS. Springsted Incorporated; as agent for the
City, is hereby authorized and directed to purchase the
appropriate United States Treasury Securities, State and
Local Government Series, from the praceeds of the Bonds in
accordance with the provisians of this resolution and to
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execute all such documents (including the appropriate
subscription form) required to effect such purchase in
accordance with the U.S. Treasury Regulations (31 CRF Part
344) .
23. Certificate of Recristration. The Clerk is hereby directed
to file a certified copy of this resolution with the County
Auditor ,of Dakota County, Minnesota, together with �uch
other informatian 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 that the tax
ievies for the Prior Bonds have been cancelled to the extent
provided in this Resolution and that the tax levies required
by law for the Refunding Bonds have been made.
24. Record� and Certificates. The officers af the City are
hereby authorized and directed to prepare and furnish to the
Purchaser, and to the attorneys approving the legality of
the issuance af the Bonds, certified copies of all
procsedings 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 a►s are
required to show the facts relating to the legality and
marketability of the Bonds as the same appear from the baoks
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. �tecrative Covenant as to, Use of Pracepds an Froject. The
City hereby covenants not to use the proceeds 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 €or
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.
26. Tax-Exempt Status of the Bonds� Rebate. The City shall
compiy 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 limitatic�n (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 af excess investmer►t earnings to
the United States if the Bonds (together with other
obligations reasonably expected to be issued and outstanding
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at one ti�e in this caiendar 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 governmental `units issuing
$5,000,000 or less of bonds, the City hereby finds,
determines and declares that (1) the aggregate face amount
of the Bonds does not exceed $5, 000,000, {2) the Refun�ed
Bonds were exempt from rebate, (3) the averag� maturity date
of the Bonds is not later than the average maturity date of
the Refunded Bands, and (4) none of the Bonds mature more
than 30 years after the date of issuance of the Refunded
Bonds.
27. Defeasance. When all Bonds have been discharged as' provided
in this paragraph, all pledges, cavenants and other rights
granted by this resolutzon to the registered holders of the
Bonds shall, to the extent permitted by 1aw, 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 thereot in full with interest accrued to the date of
such deposit. The City may also discharge its obligations
with respeet 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 ta any Bonds, subject fio the
provisions of law now or hereafter authorizing and
regulating such actian, 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 notic� of redemption as herein
required has been duly provided for, ta such earlier
redemption date.
28. Designation of Oualified Tax-Exempt Obligations; Issuan�e
Limit. In order to qualify the Bands as "qualified
tax-exempt obligations" within the meaning of Section
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265(b) (3) of the Code, the City hereby makes the following
factual statements and representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as 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 are treated
as issued by the Cityj during this calendar year i993
will not exceed $10,000,000;
(e) not more than $10,000,000 of obligations issued by the
City during this calendar year 1993 have been
designated for purposes of Sectian 265{b) (3) of the
Code; and
(f) the aggregate face amount of the Bonds does not exceed
$10, 000, 000.
_.. _ �.___._ _._
The City shal u�e its best effortsLLto compl� iaith any
federal procedural requirements which may apply in order to
effectuate the designation made by this paragraph.
29. Supplemental Resolution. The March 4, 1986 resolution
authorizing the issuance of the Prior Bonds and the is
hereby supplemented to the extent necessary ta give effect
to the provisions of this resolution.
30. 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 sueh
section,` paragraph or pro�ision shall not affect any of the
remaining provisions of this resz�iution.
31. Headincts. Headings in this resolutian are' included for
convenience of reference only and are not a part hereof, and
shali not limit or define the meaning of any provision
hereof.
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The mo�ian for the adoptio� af �he �oregaing resolution �as
duly seconded b� membe� �hd, �ft�r a full
discussion �hereof and upon a vate ng taken 'therevn, the
f allc�w�.ng voted in f ava= ther�aaf:
and the foll4wing vvted against the same;
�opted this 20th d�y of �7'Ltlyr �.993.
E, B. McMenamy, Ma�c�r
ATTEST:
susan M. Walsh, ��ty Clerk
AZati�rn by: seconded by:
Vated in favor:
uot�ed aqainst:
2419T8
2Q
�' 1 I��,(}�'Qfl��'C"nnT/(}}�'�f 'TC±/IL'�1 !'F �1 '1 (1 (r�rJ4 ('�i(}�_C77_7i� RnV7 'iQ niVn�tnl!�r '� nnnTVQ t�t?1UJ
STATE OF MINNESCITA
COUNTY OF DAKOTA
CITY OF ROSEMOUNT
I, the undersigned, being the duly qualified and acting Clerk of
the City of Rosemount, DO HEREBY CERTIFY that I have compared the
attached and foregoing extract of minutes witla 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, insofar as such minutes relate to considering offers
for, and awarding the sale of, $845,Ofl0 General Obligation -
Municipal Building Refunding Bonds, Series 1993D of said City.
WITNESS my hand this day af , 1993.
Clerk
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22
. � , � _ .� . �.
EXHIBIT A
NOTICE �F CALL FOR REDEMPTI4N
GENERAL OBLIGATION MUNICIPAL BUILDING
BONDS, SERIES 1986
CITY OF ROSEMOUNT,
DAKOTA COUNTY, M3NNESOTA
NOTICE IS HEREBY GIVEN that by order of the City CounciT of the
City of Rosemount, Dakota County, Minnesota, there have been
called for redemption and prepa�ment on
February 1, 1995
those outstanding bonds of the fiity designated as General
Obiigation Municipal Building Bonds, Series 1986, dated April l,
1986, having stated maturity dates in the years 1996 thraugh
2002 , and totaliing $810, 000 in principal amount. The bonds are
being called at a price of par plus accrued interest ta .
February 1, 1995, on which date all interest on said bonds will
cease ta accrue. Holders of the bonds hereby called for
redemptian are requested to present their bonds for payment at
American National Bank and Trust Company, in Saint Paul,
Minnesota, on or before February 1, 1995.
Dated: July 20, 1993 .
_ __—_ �.� -- .—.�__. __ _ �
-- _ - _ _-BY QRDER OF THE C.1TY ---- _
COUNCIL
/sl Susan Walsh
Clerk
Important Notice: Under the Interest and Dividend Compliance Act
of 1983, 31� will be withheld if tax identification is not
properly certified.
Additional information
may be obtained from:
Springsted Incorporated
85 East Seventh Place
Suite 1fJ0
St. Paul, Minnesota 55101
Telephone• (612) 223-3000
241978