HomeMy WebLinkAbout6.d. Accept Bids and Award Sale G.O. Improvement Refunding Bonds, Series 1993B . s
CI�Y OF ROSEMI�UNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: July 20, 1993
AGENDA ITEM: Accept Bids and Award Sale-G.O. AGENDA SECTION;
Improvement Refunding Bonds, Series 1993B Old Business I
PREPARED BY: AGEND����.f Y 1 � ��
Jeff May, Finance Director
ATTACFiMENTS: Draft Resolution and AP OVED .
Offica.al Statement (See Agenda Item #��)
At 10 .30 A_M. , Tuesday, July 20, 1993, sealed bids far G.O.' Improvement
Refunding Bonds, Series 1993B, will be opened and the results tabulated at
the offices of Springsted inc. Dan 0`Neill, from Springs�ed, will be
present at the July 20th City Council meeting to give Springsted' s
recommendation for �he issuance af 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.
RECOMMENDED ACTI�N: Motion to adopt A RESOLUTION ACCEPTING OFFER ON
THE SALE OF $1, 415, 000 GENERAL OBLIGATION IMPROVEMENT REFUNDING BONDS,
SERIES 1993B, PROVIDING FOR THEIR ISSUANCE AND LEV�ING A TAX FOR THE
PAYMENT THEREOF.
COLTNCIL ACTION:
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CtTY OF ROSEM�UbiT
DAROTA COIINTY, MINNESOTA
RESOLIITION 1993 -
RESOLIITION ACC33PTINGi �FFER QN THB
SALE OF $1,415,400 G$NERAL OBLIGATIOlt
IMPROVEMENT REFDND22Ta' BO�B, SEItIEB 19938,
PROVIDINti FOR THEIR ISBIIANCE,
AND LBVYINC�i A TA8 FOR T� PAYMENT THBRE�F '
WHLREAB, the City Council of the City of Rosemount, Minnesota
(the "City") has heretofore determined and declared that it is
necessary and expedient to provide moneys for a crossover
refunding of' the City's General Qbligation Improvement Bonds,
Series 1987A, dated August 1, i987 (the "Series 1987A Prior
Bonds") which mature in 1997, and thereafter; and the City's
General Obligation Improvement Bonds, Series 1989B dated SuZy 1,
1989 (the �'Series 1989B Prior Bonds") which mature in 1996, and
thereafter; and
WHEREAS, $1,500, 000 of the principal amount of the Series 1987A
Prior Bonds which mature on or after February 1, 1997, are �
callable on February 1, 1996, at a price of par plus accrued
interest a provided in the resolution of the City Council,
adopted on July 21, 1987, autharizing the issuance of the Series
1987A Prio Bonds (the "Series 1987A Prior Resolution") ; and
WHEREAS, $ ,470, 000 of the principal amount of the Series 1989B
Prior Bond which mature on ar after February 1, 1996, are
callable a February 1, 1995, at a price of par plus accrued
interest a provided in the resolution of the City Council,
adapted on June 20, 1989, authorizing the issuance -of the Series
1989B Prio Bands (the "Series 19898 Prior Resolution") ; and
�PHEREAB, t e xefunding of the cailable Series 198'�A PriQr Bonds
and the Se ies i989B Prior Bonds �collectively, the "Prior
Bonds") , �, consistent with covenants made with the holders
thereof, a d is necessary and desirable for the reduction of debt
service co t to the City; and
1PHEREAB, e City Council has heretofore determined and declared
that it is necessary and e�edient to issue $1,415,000 General
Obligation Improvement Refunding Bonds, Series 1993B of the City,
pursuant t Minnesota Statutes, Chapter 475, to pravide moneys
for a cros over refunding of the callable Prior Bonds; and
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1PHRREAB, the City has retained Springsted Incorporated, an
independent financial consultant, in connection with the issuance
of the Bonds, and is therefore authorized to negotiate the sale
of the Bonds; and
WHEREAB, the following offers were received, opened and recorded
by the City Administrator Qr his designee at the offices of
Springsted Incorporated at 10:30 A.M. this same day:
Bidder Interest Rate N�t Interest Cast
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Rosemount, Minnesota, as follows:
1. Aece�tance of Offer. The offer of
(the "Purchaser"} ,
to purchase $1,41.5,000 General Obligation Impravement
Refunding Bonds, Series 1993B of the City (the "Bonds" or
the "Refunding Bonds", or individually a "Bond") , 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 offer received and is hereby accepted, and the
Bonds are hereby awarded to the Purchaser. The City
Administrator is directed to retain the deposit of the
Purchaser and to forthwith return to the others making
offers their good faith deposits.
2. Title: Original Issue Date; Denominations.• Maturiti.es. The
Bonds shall be titled "General Obligati4n Impravement
Refunding Bonds, Series 1993B", shall be dated August 1,
1993, 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 th� denomin-
ation of $5,000 each or in any integral multiple thereof of
a single maturity. The Bonds sha11 mature on, February 1 in
the years and amounts as follows:
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�
Year Amoun Year • oun
19'96 $165,000 I999 $300,000
1997 325,000 200t3 165,000
1998 325,000 2001 135,00�
3. Pu�pose: Refunding Findinas. The Bonds shall pravide funds
for a crossover refunding of the Cit�r's callable Series
1987A Prior Bonds (the "Series 1987A Refunded 8onds") and
the City's callable Series 1989B Prior Bonds (the "Series
1989B Refunded Bonds") . $ in grincipal amount
� o€ the Bonds (the "Series 1987A Refur�ding Bonds") are
allocable to the crossover refunding of the Series 1987A
Refunded Bonds (the "Series 1987A Refunding Bonds") and
$ in principal amaunt of the Bonds {the "Series
1989B Refunding Bonds'!) are allocable to the c=ossover
refunding of the Series 1989B Refunded Bonds. The Series
1987A Refunded Bonds and the Series 1989B Refur�ded Bonds are
collectively referred to as the "Refunded Bonds". It is
hereby found, determined and declared that the refunding of
the Refunded Bonds is pursuant to Minnesota Statutes,
Section 475.67, and shall result in a reduction of debt
service cost to the City. The present value of the dollar
amount of 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,
Section 476.67, subdivisions 12 and 13.
4. Interest. The Bonds shal]. bear interest payable semi-
annually on February l and August l of each year (each, an
"Interest Payment Date") , commencing August 1, 1994,
calculated on the basis of a 360-day year of twelve 30-day
months, at the respective rates per annum set forth opposite
the maturity years as follows:
Maturity Interest Maturity Interest
Year Rate Year Rate
1996 � 2009 $
1997 2000
1998 2fl01
5. No Redem�tion. The Bonds shall not be subject to redemption
and prepayment prior to their maturity.
6. Bond Regist=ar. , in
, Minnesota, is appointed to act as bond
registrar and transfer agent with respect to the Bonds (the
"Bond Registrar") , and sha11 do so unless and until a
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successor Bond Registrar is dul.y appointed, all pursuant to
any contract the City and Bond Registrar shall execute which
is consistent herewith. The Bond Registrar shal.l also serve
as paying agent unless and until a successor paying agent is
duly appointed. Principal and interest on the Bonds sha1.1
be paid' to the registered holders (or record holders) of the
Bonds in the manner set forth in the form of Bond and
paragraph 12 of this resolution.
7. Form of Bond. The Bonds, together with the Bc�nd Registrar's
Certificate of Authentication, the form of Assignment and
the registration information �hereon, shall be in
substantially the following form; �
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UNITED STATES OF AMERICA
STATE OF MINNES�TA
DAKOTA CQUNTY
CITY OF ROSEMOUNT
R- $
� GENERAL OBLIGATION IMFROVEMENT
REFUNDING BOND, SERIES i993B
INTEREST MATURITY DATE 4F
RATE DATE OR�,GI,�,tAL ISSUE CUSIP
August l, 1993
REGISTERED dWNER;
PRINCIPAL AMOUNT: DOLLARS
HIdOW ALL PERSQNS BY TIiE5E PRESENTS that the City of Rosemount,
Dakota County, Minriesota {the "Issuer") , certifies that it is
indebted and for value seceived promises to pay to the registered
owner specified above, or registered assigns, without option af
prepayment in the manner hereinafter set forth, the 'principal
amount specified above, on the maturity date specified above, and
to pay interest thereon semiannuaily on February 1 and August 1
of each year (each, an "Interest Payment Date") , commencing
August 1, 1994, at the rate per annum 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 Band will
bear interest fram 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 gayable 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 Fayment Date (the "Regular Record Date") . Any interest
not so timely paid shall cease to be payable to the person who is
the Holder her�of as of the Regular Recard Date, and sha11 be
payable to 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 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 ta the Special
Reeord Date. The principai 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 FURTHER PROVISIONS OF THIS BOND
SET FORTH ON THE REVERSE HERE�F, WHICH PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
IT IS HEREBY CERTIFIED AI3D RECITED that all acts, conditions and
things required by the Constitution and laws of the State of
Minnesata to be done, to happen and to be perfarmed, precedent to
and in the is'suance of this Bond, have been done, have happened
and have been perEormed, in regular and due form, time and manner
as required hy law, and that this Bond, together with all oth�r
debts of the Issuer outstanding on the date of original issue
hereof and the date of its issuance and delivery to the original
purchaser, daes not exceed any constitutional or statutory
limitation of indebtedness.
IN WTTNESS WFiEREOF, the City af Rosemount, Dakota County,
Minnesota, by its City Council has caused this Bond to be .
executed on its behalf by the facsimile signatures af its Mayor
and its Administrator.
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Date of Reqistration: Registrable by;
Payable at:
BOND REGISTRAR'S CITY OF R�SEMOUNT
CERTIFZCATE OF DAKOTA COUNTY, MINNESOTA
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned fsl Facsimile
within. Mayor
,(sj Facsimile
Administrator
Bond Registrar
By .
Authoriaed Signature
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ON REVERSE OF BOND
No Redemp�ion. The Bonds of this issue (the "Bonds") are not
subject to redemption and prepayment prior to their maturity.
Issuance; Purnose; General Obliqatian. This Bond is ane of an
issue in the total principal amount of $1,415,000, aIl of like
date of or�ginal issue and tenor, except as to number, maturity,
interest rate and denomination, which Bond has been issued
pursuant to and in full conformity with the Constitution and laws
of the State of Minnesota and pursuant to a resolution adapted by
the City Council of the Issuer an July 2a, 1993 {the
"Resolution"} , for the purpose of providing funds sufficient for
a crossover refunding of the Issuer's General. 4bligation
Improvement Bonds, Series 1987A, dated August l, 1987, which
mature an February l, 2997, and thereafter and the Issuer's
General Obligation Improvement Bonds, Series 1989B, dated July 1,
1989, which mature on February 1, 1995, and thereafter. This
Bond is payabie out of the Escrow Account and the Debt Service
Account of the Issuer's General Obligation Improvement Refunding
Bonds, Series 1993B Fund. This Bond constitutes a qeneral
obligatian of the Issuer, and to provide moneys for the prompt
and full payment of its principal, premium, if any, and interest
when the same become due, the tull faith and credit and taxing
pawers of the Issuer have been and are hereby irrevocably
pledged.
Denominations; Exchange; Resalution. The Bonds are issuable :
solely as fully registered bonds in the denominations of $5,000 -
and integraZ multiples thereof of a single maturity 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 R�solution 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 att4rney 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
Band 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
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transfere� (but not registered in blank or to "bearer" or similar
designation) , of an authorized denomination ar deno�inations, 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 charqe payable in connection with the transfer or
exchanqe of this Bond and any 1ega1 or unusual costs regarding
transfers and lost Bonds.
Treatment of Req�istered 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 al.l other purposes,
whether or not this Bond shall be overdue, and neither the Issuer
nor the Bond Registrar shall be affected by notice to the
contrary.
Authenticat�on. This Bond shall not be valid or become
obligatory for any purpose or be entitled to any security uniess
the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
4ualified Tax-Exempt Obligation. This Bond has been designated
by the Issuer as a "qualified t�x-exempt abligation" for purpases
of Section 2b5(b) (3) of the Internal Revenue Code of 1986, as
amended.
2�►147b
9
ABBREVIATIONS
The foliowing abbreviations, when used in the inscription on
the face of this Bond, shall be construed as though the� were
written out in full according to applicable laws or regulatiansz
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - a� joint tenants with right of survivarship
and not as tenants in common
UTMA - as custodian far
(Cust) � (Minor)
under the Uni€orm
(State)
Transfers to Minors Aet
Additional abbreviations may also be used
though not in the above 1ist.
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ASSIGNMENT
For value received, the undersigned hereby sells,
assigns and transfers unto
the within Bond and does
hereby irrevocably constitute and apgoint
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
assignment 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:
Signature(s) must be guaranteed by a national bank or tnzst
company or by a brokerage firm having a membership in one of the
major stock exchanges or any other "Eligible Guarantor
Institution as--defined in i? CFR 240. 17 Ad-15(a) (2) ,
The Bond Registrar will not effect transfer of this Bond
unless the information eoncerning the transferee requested beZow
is provided.
Name and Address:
(Include� information for all joint owners
if the Bond is held by joint account.j
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8. Execution: Temnorarv Bonds. . The Bonds shall be executed on
behalf of the City by the signatures of its Mayo= and
Administrator and the seal of the City, if any, shall be
o�itted; 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
Bonds may be signed by the manual or facsimile signature of
that officer who may act on behalf of such absent or
disabled officer. I� case either such officer whose
signature or facsimile of whose signature shall appear on
the Bonds shall cease to be such officer befo=e the delivery
of the Bonds, such signature or facsimile shall nevertheless
be valid and suffieient for all purposes, the same as if he
or she had remained in office until delivery. The City may
e�ect to deliver, in lieu of printed definitive bonds, one
or more typewritten temporary bands 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 Administrator. Such
temporary bonds shali, upon the printing of the definitive
bonds and the execution thereof, be exchanged therefor and
cancelled.
9. Authentication. No Bond shall be valid or obligatory far
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 authorized -
- representative of the Bond Registrar. Certificates of -
- Authent'ication 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 exeeution
of the Certificate of Authentication on the Band and by
inserting as the date of registration in the space provided
the date on which the Bond is authenticated, except that far
purposes of delivering the original Bonds ta the Purchaser,
the Bond Registrar shall insert as a date of registration
the date of original issue, which date is August 1, 1993.
The Certificate of Authentication so executed on each Bond
sha11 be conclusive evidence that it has been authenticated
and delivered under this resolution.
10, Reaistrationt Transfer: Exchanqe. 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
24t976
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of transfers of Bonds entitled to be registered or
transferred as herein provided.
Upon surrender for transfer` of any Band 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 o� any authorized
denomination or denaminations of a like aggregate principal
amount, havinq the same stated maturity and interest rate,
as requ�sted by the transferor; provided, however, that no
Bond may be registered in blank or in the name of "bearer"
or similar designation.
At th� aption 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 Bands 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 sha11 authenticate,
insert the date of registration of, and deliver the Bonds
which the Holder making the exchange is entitled to receive.
All Bands surrendered upon any exchange or transfer pravided
for in this resolution shall be promptly cancelled by the
Bond Registrar and thereafter disposed of as directed bX the
City.
_ All Bonds deli�ered in exchange for or upan 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 Sond presented or surrendered for transfer or exchange
shall be duly endorsed or be accompanied by a written
instrument o� tr�nsfer, 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,
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including regulations which permit the Band Registrar ta
clos� its transfer books between record dates and payment
dates. ' The Administratar is hereby authorized to negotiate
and �xeaute the terms af said agreement.
11. Ricrh�s '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 Band.
12 . Inte�est Payment; Record Date. Interest on any Bond shall
be paid on each Interest Payment Date by check or draft .
mailed tto the person in whose name the Bond is registered
(the "Holder") on 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 af 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 Halder
ther�of at the close af business an 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 Bond
Regi�trar to the Holders not less than ten (10) days prior
ta the Special Reeord Date.
13 ., Treatment of Registered Owner. The City and Bond R�s�istrar
- �_.. may treat the person in whose name any Bond is register..ed as -
T 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 shail be overdue, and neither the City nor the
Bond Registrar shali be affected by notice to the contrary.
14. Deliverv: Appl�.cation of Proceeds. The Bonds when so
prep�red and executed shall be delivered by the
Administrator to the Purchaser upon receipt of the purchase
price, aand the Purchaser shall not be obliged to see to the
prop�r 'application thereof.
15. Fund ' and Aecounts. For the convenience and proper
administration of the moneys to be borrowed and repaid on
the Bands 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
crea�ed a special fund to be designated the "General
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Obligation Tmprovement Refunding Bonds, Series 1993B Fund'�
(the "Fund"} to be administered and maintained by the
Finance Director as a bookkeeping account separate and apart
from `sll other funds maintained in the official financial
records of the City. The Fund sha11 be maintained in the
manner herein specified until all of the Refunded Bonds and
the Bonds herein authorized and the interest therean shall
have been fully paid. There shall be maintained in the Fund
two separate accounts, ta be designated the "Escrow Account"
and "Debt Service �,ccount", respectively.
(i) �scrow Account. The Escrow Account shall be
maintained as an escrow account with
' � (the "Escrow
Agent") in ,
Minnesota, which is a suitable financiai
institution within the State whose depasits are
insured by the Federal Deposit Insurance
Carporation and whose combined eapital and surplus
is' not less than $50fl,000. Ail proceeds of the
sale of the Bonds shall be received by the Escrow
,Agent and applied to fund the Escrow Account or to
;pay costs of issuing the Bonds. Proceeds of the :
Sonds not used ta pay costs 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 holder on such dates and bearing interest at
.- such rates-as shall be required to 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 Series
1987A Refunding Bonds to and including February 1,
1996; (ii) to pay when due the interest to accrue
on the Series 1989B Refunding Bonds to and
including February 1, 1995; and (iii) to pay when
called for redemption on February l, 1996, the
principal amount of the Series 1987A Refunded
� Bonds; and (iv) to pay when called for redemption
on. February l, 1995, the principal amount qf the
'Series 1989B Refunded Bonds. From the Escrow
Ac+count there shall be paid (1� all interest an
the Series 1987A Refunding Bonds herein authorized
'to and including February 1, 1996; (2) all
interes"t on the Series 1989B Refunding Bonds
herein authori2ed to and including February 1,
1995; (3) the principal of the Series '1987A
Refunded Bonds due by reason of their call. for
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redemption on February 1, 1.996; and {4j the
principal of the Series 19898 Refunded Bonds due
,by reason of their cali for redemption on
February 1, 1995. The Escrow Account shall be
irrevocable appropriated to the payment of the
interest on the Refunding Bonds herein authorized
until the proceeds of the Bonds are applied to
payment of the Refunded Bonds. The moneys in the
Escrow Account shall be used solely for the
purposes herein s�t forth and for no other
purpose, except that any surplus in the Escrow
Account may be remitted to the City, ali in
accordance with an agreement (the "Escrow
Agreement") by and between the City and Escrow
, Agent, a form of which agreement is on file in the
office of the Administrator. Any moneys remitted
to the City upon termination of the Escraw
; Agreement shall be deposited in the Debt Service
Account.
(ii} Debt Service Aecount. To the Debt Service Account
there is l�ereby pledged and irrevocable
appropriated and there shali be credited: (1) any
balance remitted to the City upan the termination
of the Es�row Agreement; _(2� any balance remaining �
on February 2, 1996, in the Debt Service Account
of the General Obligation Improvement Bonds,
Series 1987A Fund created by the_ resolution
adopted by the_ City_ on 3uly_..21, 1987, which� _ --- -
resolution authorized the issuance of the Series
' 1987A Refunded Bonds; (3) any balance remaining on
February 2, 1995, in the Debt Service Account of
the General Obligation Improvement Bonds, Series
1989B Fund created by the resolution adopted by
the City on June 20, 1989, which resalution
authorized the issuance of the Series 1989B
Refunded Bonds; (4) any uncollected special
assessments as of February 2, 1996, which were
heretofore pledged to the Debt Service Account for
the Series 1987A Prior Bonds; (5) any uncollected
special assessments as of February 2, 1995, which
were heretofore pledged to the Debt S�rvice
Account for the Series 1989B Prior Bonds; (6) aIl
investment earnings on funds in the Debt Service
Account; (7) any taxes hereinafter levied far the
payment of the Bonds in the event the monies
heretofore pledged are insufficient for the
`payment thereof; and (8) any and all other moneys
which are properly available and are appropriated
241976
16
r
by the governing body of the City to the Debt
' Service Account. The amount of any surplus
remaining in the Debt Service Aecount when the
Bonds and interest thereon are paid shall be used
consistent with Minnesota Statutes, Section
'475.61, Subdivision 4.
The moneys in the Debt Service Aecount shall be used solely
to pay the principal of and interest on the Bonds or any
other bonds hereafter issued and made payable from the Fund.
No portion of. the proceeds of the Bonds sha21 be used
direetly or indirectly to acquire higher yielding
investments ar to replace funds which were used directly or
indirectly to acquire higher yielding investme�ts, except
(2) 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 amount not greater
than the lesser of five percent (5�) of the proceeds of the
Bands 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 grincipal
and interest to become due on the Bonds) in excess of
amounts which under the applicable federal arbitrage
regulations may be invested without regard as to y�ield shall
not be invested in excess of the applicable yield
restrictions imposed by the arbitrage reguiations on su�h
inve�tments after taking into account any apglicable
"temporary periods" or "minor portion" made available under
the federal arbitrage regulatians. In addition, the
- - proceeds of--the Bonds and money in the Fund shall not be
_ _
invested in obligations or deposits issued by, guarant�ed by
or insured by the United States or any agency or
instrumentality thereo€ 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 �mended (the "Cade") ,
16. Priar Bonds; Securitv. Until retirement of the Prior Bonds,
ail provisions theretofore made for the security thereof
shall be observed by the City and all of its officers and
agents. -
17. SpeGial Assessments. The City has heretofore levied speciai
assessments pursuant to the Series 198'7A Prior Resoiution
and the Series 1989B Prior Resolution, which assessments
were pledged to the payment of the principal and interest on
the Prior Bands. Any special assessments levied for the
Series 1987A Prior Bonds which are uncollected �as of
February 2, 1996, and any uncollected special assessments
241976 �
17
levied for the Series 1989B Frior Bonds which are
uncollected as o� February 2, 1995 are hereby pledged to the
payment of principal and interest on the Bonds herein
authorized.
18, Tax L►evy; Cancellation of Certain Levies Relatin,g to the
Series 1987A Refunded Bonds and the Series 39898 Refunded
Bond�; CoveraQe Test. To provide monies for the payment of
principal and interest on the Bonds there is hereby levied
upon all of the taxable property in the Gity a direct annual
ad va�lorem tax which shall be spread upon the tax rolls and
collected with and as part of, other general property taxes
in s�id City for the years and in the amounts as followss
Year of Tax Year of Tax
Levy Collection Amount
1994 1995 $
1995 1996
1996 1997
' 1997 1998
1998 1999
' 1999 20Q4
Said tax ievies are such that if collected in full they,
together with estimated collections of investment earnings
and cther revenues herein pledged for the payment of the :
Bond� will, if collected when due, produce at l�east five
perc�nt in excess of the amount needed to meet when due the
prin�ipal and interest payments on the Bonds.
The tax levies shall be irrepealable so long as any of said
Refunding Bonds are outstanding and unpaid, provided that
the �ity reserves the right and power to reduce the levies
in the manner and to the extent permitted by Minnesota
Stat�ttes, Section 475.61(3) .
Upon payment of the Series 1987A Refunded Bonds the taxes
levied in paragraph 17 of the July 21, 1987, resolution
authorizing the issuance of the Series 1987A Prior Bonds_ for
the years 1995 through 199? for collectian in 1996 through
1998 shall be canceled. Upon payment of the Series 1989B
Refunded Bonds the taxes ],evied in paragraph 17 of the
June, 20, 1989, resolution authorizing the issuance of the
SeriQs 1989B Prior Bonds for the years 1994 through 1999 for .
� collection in 1995 through 2000 shall be canceled.
19. Gene�al Obliqation Pledc�e. For the prompt and full payment
of the principal of 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 Escrow Aecount or 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
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