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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: . r 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 241976 � r 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: 241976 2 � 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 241976 - 3 . , 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; � 241976 4 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 241976 5 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. 24�975 6 . , 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 24i476 7 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 241976 8 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. 241976 , 10 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 24t976 11 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 . 12 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, 241976 13 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 241476 14 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 241476 ' . 15 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 241476 � Q