HomeMy WebLinkAbout6.c. Accept Bids and Award Sale G.O. Improvement Bonds, 1993A . �� . � � � � . .
CITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: July 20, 1993
AGENDA ITEM: Accept Bids and Awa�d Sale - AGENDA SECTION;
G.O. Improvement Bonds, Series 1993A Old Business
PREPARED BY: AGEND���.�/� � �
Jeff May, Finance Direetor tt/l �
ATTACHMENTS: Draft Resolutian and �iP OVED Y:
Official Statement —
At 10 :30 A.M. , Tuesday, July 20, 1.993� sealed bids for G.O. pravement
Bonds, Series 1993A, will be opened and the results tabulated at the
offices of Springsted Inc. Da:n O'Nei11, from Springsted, will be presen�
at the Ju1y 20th City Cauncil meeting to give Springsted' s recommendation
for the issuance of these bonds and to answer any questions that you may
have.
Because the bid opening is not until Tuesday morning, you will receive
information regarding the bids' at the meeting that evening,
RECOI�tENDED ACTION: Motion to adopt A RESOLUTION ACCEPTING OFFER ON
THE SALE OF $555,000 GENERAL �BLTGATION IMPROVEMENT BONDS,. SERIES 1993A,
PROVIDING FOR THEIR ISSUANCE AND LEVYING A TAX FOR THE PAYMENT THERE�F.
CC>UNCIL ACTION:
CITY OF ROSEMOLL�NT
DAKt}TA CQIINTY, MINNESOTA
RESOLIITI�N 1993 -
RESOLIITION ACCEPTZNQ OFFER QN T88
SAL13 OF $555,000 aENERAL flBLIt3ATI4N ZMPROVEMENT
BONDB, BERIEB 1993A� PROVIDINt3 FOR T�iEIR ISSIIANCE
AND LEVYINC� A TAB FOR TH8 PAYMENT THEREOF
WHBRLAB, the City Council of the City of Rosemount, Minnesota
(the �tCity") , has heretofore determined and declared that it is
necessary and desirable to issue $555, 000 General Obligation
Improvement Bonds, Series 1993A {the "Bonds") of the �ity,
pursuant to Minnesota Statutes, Chapters 429 and 475, to finance
the construction of various improvement projects in the City (the
"Improvements") ; and
WHEREAS, the construction of the Improvements to be financed by
the Bonds has heretofore been ordered; and
WHEREAB, offers to purchase the Bonds were solicited on behalf of
the City by Springsted Incorporated; and
NHEREAS, the following offers were received, opened and recorded
by the City Administrator or his designee at the offices of
Springsted Incorporated at 1�:30 A.M. , this same day;
Bidder ' Interest Rate Net Interest Cost
(See Attached)
NOW, THEREFORE, BE IT RESOLV�D by the Council of the City of
Rosemot�nt, -Minnesota, as foll�ows:
1. Acceptance of Offer. Thie offer of
{the
"Purchaser") , to purchasie $555, 000 General Obligation
Improvement Bonds, Seri�s 1993A of the City (the "Bonds", or
individually a "Band") , in accordance with the Terms of
Offering, at the rates af interest hereinafter set farth,
and to pay ,�herefor the �sum o£ $ , plus interest
accrued to settlement, i�s hereby found, determined and
declared to be the most favorable offer received and is
hereby aceepted, and the Bonds are hereby awarded to said
Purchaser. The City Adm�inistrator is directed to retain the
depasit of said Purchase;r and to forthwith return to the
others making offers the;ir good faith checks or drafts.
2. Tit1e, Qriginal Issue Da,�te; Denominations; Maturities. The
Bonds shall be titled "G+eneral Obiigation Impravement Bonds,
Series 1993A", shail be �lated August 1, 1993 , as the date of
original issue and shall be issued forthwith on ar after
such date as fu11y regis�tered bonds, The Bonds shall be
numbered fram R-1 upward in the denomination of $5, OOa each
or in any integral multiple thereof of a single maturity.
The Bonds shall mature an February l in the years and
amaunts as follows:
Year Amour�t Year Amount
1995 $ 30,000 2001 $50,000
1996 60, 000 2002 50,fl00
1997 55, 000 2003 50, 000
1998 : 55, 000 2004 5O, a00
1999 5Q,000 2005 50,000
2000 50,000
3 . Purpose. The Bonds shall provide funds to finance the
: construction of the Improvements. The total cast of the
Improvements, which shal,l in�lude all casts enumerated in
Minnesota Statutes, Sect.ion 475. 65, is estimated tt� be at
least equal to the amount af the Bonds. Work on the
Improvements shali proce+ed with due diligence to completian.
The City covenants that it shall do all things and perform
all aets required of it to assure that work on the
Impravements proceed witlh due diligence to compietion and
that any and al2 permits and studies required under law for
the Improvements are obtiained.
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4. Interest. The Bonds shall bear interest payable semi-
annually on February 1 and August 1 of each year (each, an
"Interest Payment Date") , commencing August l, 1994,
calculated on the basis of a 360-day year of twelve 30-day
months, at the respective rates per annum sat forth oppasite
the maturity years as follows:
Maturity Interest Maturity Interest
Year Rate Year Rate
1995 $ 2001 $
1996 2002
1997 2003 �
1998 2004
1999 2005
2000 2006
5. Redemption. All Bonds maturing in the years 2003 to 2005,
both inclusive, shall be subject to redemption and prepay-
ment at the option of the City on February l, 2002, and on
any date thereafter at a price of par plus accrued interest.
Redemption may be :in whoZe or in part of the Bonds subject
to prepayment. If redemption is in part, the maturities and
the princi.pal amounts within each maturity to be redeemed
shall be determined by the City; and if only part of the
Sonds having a common maturity date are called for
prepayment, the specific Bonds to be prepaid shall be chosen
by lot by the Bond Registrar. Bonds or gartions thereof
called for redemptian shall be due and payabie on the
redemption date, and interest thereon shall cease to accrue
from and after the redemption date. Mailed natice of
redemption shall be given tfl the paying agsnt and to each
affected registered holder of the Bonds.
To effect a partial redemption of Bonds having a common
maturity date, the Bond Registrar prior to giving notice of
redemption shall assign to each Bond having a common
maturity date a distinctive number far each $5,000 of the
principal amount o� such Bond. The Bond Registrar sha11
then select by lot, using such method of selection as it
shall deem proper in zts discretion, fram the numbers so
assigned to such Bonds, as many numbers as, at $5,000 for
each number, shall equal the principal amount of such Bonds
to be redeemed. The Bonds to be redeemed shall be' the Bonds
to which were assigned numbers so selected; provided,
hawever, that only so much of the principal amount of each
such Bond of a denomination of more than $S,OOO sha11 be
redeemed as shall equal $5,0�0 far each number assigned to
it and so selected. If a Bond is to be redeemed only in
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part, it shall be surrendered to th� Band Registrar (with,
if the City or Bond Registrar so requires, a written
instrument of transfer in form satisfactory to the City and
Bvnd Registrar duly executed by the hoider thereof or his,
her or its attorney duly authorized in writing) and the City
shall execute (if �ecessary) and the Bond Registrar shal.l
authenticate and deliuer to the Holder of such Bond, without
service charge, a new Bond or Bonds of the same series
having the same stated maturity and interest rate and of any
authorized denomination or denaminations; as 'requested by
such Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the
Bond so surrendered. .
6. Bond Registrar,
, in , Minnesota, is
appvinted to act as bond registrar and transfer agent with
respect to the Bonds {the "Bond Registrar") , and shaii do so
unless and until a successor Bond Registrar is duly
appoint8d, all pursuant to any contraet the City and Bond
Registrar shall execute whi�h is consistent herewith. The
Bond Registrar shall also serve as paying agent unless and
until a sueeessor paying agent is duly appointed. Principal
and interest on the Bonds shall be paid to the registered
halders (or record holders) of the Bonds in the manner set
forth in the form af Bond and paragraph I2 of this
resolution.
7. Form of Bond. The Bonds, together with -the Band Registrar's
Certificate of Authentication, the farm of Assignment and
the registration information thereon, shall be in
substantially the following form;
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UNITED STATE$ OF AMERICA
- - STATE OF MINNESOTA
DAKOTA COUNTY
� CITY OF RQSEMOUNT
R- $
GENERAL OBLIGATION IMPRQVEMEN�
BQND, SERIES 1993A
INTEi2EST MATURITY DATE OF
RATE DATE ORIGINAL ISSUE CUSIP
August l, 1993
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the City of Rasemount,
Dakota County, Minnesota (the "Issuer") , certifies that it is
indebted and for value received promises to pay to the registered
owner specified above, or registered assigns, in the manner �
hereinafter set forth, the principal amount specified above, on
the maturity date specified above, unless cailed for earlier
redemption, and to pay interest thereon semiannually 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 Bond will bear interest from the most recent Interest
Fayment 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, an this Bond are payabXe upan
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 �n
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") an 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 sueh Interest Paynlent Date
(the "Regular Record Date"} . Any interest not so timely paid
shall cease to be payable to the person who is the Holder hereof
as of the Regular Record Date, and shall be payable to the person
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who is the Holder hereof at the ciose of business on a date (the
"Special R�cord Date") fixed by the Bond Registrar whenever money
becomes available for payment of the de€aulted interest. Notice
of the Special Record Date shall be given to Bondholders not less
than ten days priar to the Special Record Date. The principal of
and premium, if any, and interest on this Bond are payable in
lawful money af the United States of America.
REFERENCE iS HEREBY MADE TO THE F�7RTHER PROVISIONS OF THZS BOND
SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL
PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
IT IS HEREBY CERTIFZED 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, precedent ta
and in the issuance of this Bond, have been done, have happened
and have been performed, in xegular and due form, time and manner
as required by law, and that this Bond, together with all other
debts of the Issuer outstanding on the date of original issue
hereof and the date of its issuance and delivery ta the orig�.nal
purchaser, does not exceed any constitutionai or statutory
limitation of indebtedness.
IN WITNESS WHEREOF, the City af Rosemount, Dakota County,
Minnesota, by its Gity Council has caused this Bond to be
executed on its behalf by the facsimile signatures of its Mayor
and its Administrator.
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Date of Registration: Registrable by:
Payable at:
Bt?ND REGISTRAR'S CITY OF ROSEM4UNT,
CERTIFICATE OF I3AKflTA COUNTY, MINNESQTA
AUTHENTICATION
This Bond is one of the
Bonds described in the jsf Facsimile
Reso3ution mentioned Mayor
within.
(sj Facsimile
Administratar
Bond Registrar
By
Authorized Signature
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ON REVERSE OF BOND
Redemptian. All Bonds of this issua ,(the "Bonds") maturing in
the years 2003 to 2005, both inclusive, are subject to redemption
and prepayment at the optian of the Issuer on February 1, 2002,
and on any date thereafter at a price af par plus accrued
interest. Redemption may be in whole or in part of the Bonds
subject to prepayment. If redemption is in part, the maturities
and the principai amounts within each maturity to be redeemed
shall be determined by the Issuer; and if only part of the Bonds
having a common maturity date are called for prepayment, the �
specific Bonds to be prepaid shall be chosen by iot by the Bc,nd
Registrar. Bonds or portions thereof called for redemption shall
be due and payable on the redemption date, and interest thereon
shall cease to accrue from and after the redemption date. Mailed
notice of redemption shall be given to the paying agent and ta
each affected Holder af the Bonds.
Selection of Bonds for Redem_pti4n; Fartial Redemption. To effect
a partial redemption of Bonds having a common maturity date, the
Bond Registrar shall assign to each Bond having a comrnon maturity
date a distinctiye number for each $5,000 of the principal amount
of such Bond. The Bond Registrar shall then select by lot, using
such method of selection as it shall deem proper in its
discretion, from the numbers assigned to the Bonds, as many
numbers as, at $5,000 for each number, shall equal the principal
amount of such Bonds to. be redeemed. The Bonds to be redeemed
shall be the Bonds to which were assigned number5 so selected;
provided, however, that only so much of the principal amount of
such Bond of a denomination ot more than $5,000 shall be redeemed
as shall equal $5,000 for each number assigned to it and so
selected. If a Band is to be redeemed only in part, it shall be
surrendered to the Bond Registrar (with, if the Issuer or Bond
Registrar so requires, a written instrument of transfer in form
satisfactory to the Issuer and Bond Registrar duly executed by
the Holder thereof or his, her or its attorney duiy authorized in
writing) and the Issuer shall execute (it necessary) and the Bond
Registrar shall authenticate and deliver to the Hol.der of such
Bond, without service charge, a new Bond or Bonds of the same
series having the same stated maturity and interest rate and of
any authorized denomination or denama.nations, as requested by
such Holder, in aggregate prineipal amount equal ta and in
exchange for the unredeemed portion of the principal of the Bond
so surrendered.
Issuance, Purpose. General Obliqation. This Band is one of an
issue in the total principa2 amount of $555, 000, all ot like date
of ariginal. issue and tenor, except as to number, maturity,
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interest rate, denomination and redemption privilege, which Bond
has been issued pursuant to and in full conformity with the
Canstitution and iaws af the State of Minnesota and pursuant to a
resolution� adopted b� the City Council of the Issuer an July 20,
1993 (the "Resolution") , for the purpose of providing money to
finance the construction of various improvement projects within
the jurisdiction of the Issuer. This Bond is payable out of the
General Obiigation Improvement Bonds, Series 1993A Fund of the
Issuer. This Bond constitutes a general obligation of the
Issuer, and to provide moneys for the prompt and full payment af
its principal, premium, if any, and interest when the same become
due, the full faith and credit and taxing powers of the Issuer
have been and are hereby irrevocably pledged.
Denominations: Exchan�e: Resolution. The Bonds are issuable
solely as fully registered bonds in the denominations of $5,000
and integral muitiples thereof of a single maturity and are
exchangeable far Fully registered Bonds of other authorized
denominations in equal aggregate principal amaunts at the
principal office of the Bond Registrar, but only in the manner
and subject to the limitations provided in the Resolution.
Referenee is hereby made to the Resolution far a descriptian of
the rights and duties of the Bond Registrar. Copies of the
Resolution are on fi2e in the principal office of the Bond
Registrar.
Transfer. This Bond is transferable by the Holder in person or
by his, her or its attorney duly authorized in writing at the
principal office of the Bond Registrar upon presentation aMd
surrender hereof to the Bond Registrar, all subject to the terms
and conditions grovided 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 exehange for this
Bond, one or mare new fully registered Bonds in the name of th�
transferee (but not registered in blank or to "bearer" or sim�.lar
designation) , of an authorized �denomination ,or denc�minatians, in
aggregate principal amount equal ta the principal amount of this
Bond, of the same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss. The Bond Registrar may require
payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or
exchange af this Bond and any legal or unusual costs regarding
transfers and lost Bonds.
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Treatment of Registered Owners. The Issuer and Bond Registrar
may treat the person in whose name this Bond is registered as the
owner hereof for the purpose of' reeeiving payment as herein
provide� (except as otherwise provided on the reverse side hereof
with respect to the Record Date) and far all other purposes,
whether or not this Bond shall be overdue, and neither the Issuer
nor the Bond Registrar shal.l be affected by notice to the
contrary.
Authentication. This Bond shall nat be valid or become
obligatory for any purp�se or be entitied to any security unless
the Certificate 4f Authentication hereon shall have been executed
by the Bond Registrar.
4ualified Tax-Exempt �bliqation. This Bond has been designated
by the Issuer as a "qualified tax-exempt obligation" for purposes
of Section 265(b) (3) of the I�ternal Revenue Code of 1986, as
amended.
ABBREVIATIONS
The following abbreviations, when used in the in�criptian on the
face of this Bond, shall be construed as thaugh they were written �
out in full according to applicable laws or regu3ations:
TEN �OM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship
and not as tenants in common
UTMA - as custodian for
(Cust) (Minor)
under the Uniform
{State)
Transfers to Minors Act
Additional abbreviations may also be used �'I
though not in the abave list.
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�
ASSIGNMENT
For value -received, the undersigned hereby se11s, assigns and
tran�fers unto
the within Bond and dr�es
hereby irrevocably constitute and appoint
attorney to transfer the Bond on the books kept for the
registration thereof, with full power of substitution in the
premises.
Dated:
Notice: The assignor's signature to this
assignment must corresponsi with the name
as it appears upan the face af the
within Bond in every particular, without
alteration or any change whatever.
Signature Guaranteed;
Signature(s) must be +guaranteed by a national bank or trust
company or by a brokerage firm having a membership in one of the
major stock exchanges ar any other "Eligible Guarantor
Institution as defined in 17 CFR 240. i7 Ad-15(a) {2} .
The Bond Registrar will nQt effect transfer of this Bond unless
the information concerning the transferee requested below is
provided.
Name and Address:
(Include information for aIl joint owners
if the Bond is heid by joint aceount. )
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8. �.xecutian; Tempora Bonds. The Bo�ds shall be executed on
behalf of �the City by the signatures af its Mayor and
Administrator and be sealed with the seal of the City;
provided, however, that the seal of the City may be a
printed facsimile; and provided further that both of such
signatures may be printed facsimiles and the corporate seal
may be omitted on the Bonds as permitted by law. In the
event af disability or resignation or other absence of
either sueh officer, the Bonds may be signed_by the manual
or facsimile signature of that afficer wha may act on behalf
of such absent or disabled officer. In case either such
officer whose signature ar facsimile of whose signature
shall appear on the Bonds shall cease to be such officer
before the delivery of tha Bonds, such signature or
facsimile shall nevertheless be valid and suffieient for a11
purposes, the same as i€ he or she had remained in office
until delivery. The Gity may elect to deliver, in lieu of
printed definitive bonds, one ar 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 Administrator. Such temporary bonds shall, 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 for .
any purpose or be entitled to any security or benefit under
this resolution unless a Certificate of Authentication on
such Bond, substantially in the form hereinabove set forth,
shall have been duly executed by an authorized
representative of the Bond Registrar. Certificates of
Authentication on different BQnds nee� not be signed by the
same person. The Bond R�gistrar shall authenticate the
signatures of offic�rs of the City on each Bond by execution
of the Certificate of Aut!hentication on the Band and by
inserting as the date of registration in the space provided
the date on which the Bo�d is authenticated, except that �ar
purgoses of delivering the ariginal Bonds to the Purchaser,
the Bond Registrar shall insert as a date of registration
the date of original iss�e, which date is August 1, 1993.
The Certificate of Authenticatian so executed on each Bond
shall be conclusive evidence that it has been authenticated
and delivered under this resolution.
i0. Registration; Transfer; �xchanae. The City wiil cause tfl be
kept at the prineipal of�ice of the Bond Registrar a bond
register in which, subject to such reasanable regulations as
the Bond Regi$trar may prescribe, the Bond Registrar shall
241975 '
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provide for the registration of Bands and the registration
of transfers of Bonds entitled to be registered or
transferred as herein provided.
Upon surrender far transfer of any Bond at the principal
offiee of the Bond Registrar, the City shall execute (if
necessary) , and the Bond Registrar shall authenticate,
insert the date of registration (as provi�ed 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 . 2ike aggregate prineipal
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 Halder, Bands may be exchanged for
Bonds of any authorized denomination or denominations of a
like aggregate principal amount and stated maturity, upon
surrender of the Bonds to be exchanged at the principal
office of the Bond Registrar, Whenever any Bonds are so
surrendered for exchange, the City shall execute (if
necessaryj , and the Bond Registrar shall authenticate,
insert the date of registration of, and deliver the Bonds
which the Ho�der making the exchange is entitled t� receive.
All Bonds surrendered upon any exchange or transfer provided
for in this resolution shall be promptly caneelled by the
Bond Registrar and thereafter disposed of as directed by the
City.
All Bonds delivered in exchange for or upon transfer af
Bonds shall be valid general obligations of the City
evidencing the same debt, and entitled to the same benefits
under this resolution, as the Bonds surrendered for such
exchange or transfer.
Every Bond presented or sur�endered for transfer or exch;ange
shall be duly endorsed or be accompanied by a written
instrument of transfer, in form satisfactory to the Bond
Regzstrar, duly executed by the Holder thereof or his, her
or its attorney duly authorized in wr�ting.
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
legaZ or unusual costs regarding transfers and lost Bonds.
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Transfers shall also be subject to r�asonable regulations of
the City contained in any agree�ent with the Bond Registrar,
including regulations which permit the Bond Registrar to
alose its transfer books between reeord dates and payment
dates. The Administrator is hereby authorized to negotiate
and' execute the terms of said agreement.
11. �ghts Upon Transfer or Exchanqe. Each Bond delivered upon
transfer of or in excha�ge 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. �nterest Payment; Record Date� Interest on any Bond shall
be paid an each Interest Payment Date by check or draft
mailed to the person in whose name the Bond is registered
(the "Holder"} an the registration books of the City
maintained by the Bond Registrar and at the address
appearing therean at the clase of business on the fi�teenth
(i5th) day of the calendar month next preceding such
Interest Payment Date (the "Regular Record Date") . Any such
interest not so timely paid shall cease to be payable to the
person who is the Holder thereof as of the Regular Record
Date, and shall be payable to the person who is the Holder
thereof at the elose of 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 Recard Date shall be given by the Bond
Registrar to the Holders n.ot less than ten (10) days prior
to the Special Record Date.
13. Tre�tment of Reqistered Owner. The City and Bond Registrar
may treat the persan 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 nat
such Bond shall be overdue, and neither the City nor the
Bond Registrar sha11 be affected by notice to the contrary.
� 14. Lleliver�, ApplicatiQn of Proceeds. The Bonds when so
prepared and executed shall be delivered by the
Administrator to the Purchaser upon receipt af the purchase
price, and the Purchaser shall not be obliged to s�e to the
proper application thereoi.
15. Funz3 and Accounts. There ' is hereby created a special fund
to be designated the "General Obligation Smprovement Bonds,
Series 1993A Fund" (the °Fund") to be administered and
maintained by the Finance Director as a bookkeeping account
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� � .
separate and apart fram alI other funds maintained in the
officiai financial records' of the City. The Fund shall be
maintained in the manner herein specified until all of the
Bonds� and the interest thereon have been fully paid. There
shall be maintained in the Fund two (2) separate accounts,
to be designated the "Construction Account" and "Debt
Service Account", respectively.
(i) Construction Account. To the Construction Account
there shall be credited the proceeds of the sale of the
Bonds, less accrued interest received thereon, less any
amount paid for the Bonds in excess of $548,895, plus
any special assessments levied with respect to the
Improvements and collected pr�or to completion of the
Improvements and payment of the costs thereof. From
the Construction Account there shali be paid all costs
and expenses of makin�g the Improvements listed in
paragraph 16, including the cost of any construction
cantracts heretofore 'let and all other costs incurred
' and to be incurred of the kind authori2ed in Minnesota
Statutes, Section 475.65; and the moneys in said
account shall be used for no other purpose except as
otherwise provided by law; provided that the proceeds
of the Bonds may also be used to the extent necessary
to pay interest on the Bonds due prior to the '
anticipated date of commencement af the collection of
' taxes or special assessments herein or hereafter levied
or covenanted to be Sevied; and provided further that
if upon completion di the Zmpravements there shall
remain any unexpended balance in the Construction
Account, the balance (other than any special
assessments) may be transferred by the Council to the
fund of any other imgrovement instituted pursuant to
Minnesota Statutes, Chapter 429, and pravided further
that any special assessments credited to the
Construction Account ,shall only be applied towards
payment of the costs of the Improvements upon adaption
of a resolution by the City Council deterrnining that
the application af the special assessments for such
purpose will not cause the City to no longer be in
compliance with Minnesota Statutes, Section 475.b1,
Subdivision 1.
(ii) Debt Service Account. There are hereby i-rrevocabiy
appropriated and pledged to, and there shall be
credited ta, the Debt Service Account: (a) all
coliections of special assessments herein �covenanted to
be levied with respect to the Improvements and either
initially credited to the Construction Account and not
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already spent as permitted above and required to pay
any principal and interest due on the Bonds or
collected subsequent to the completion of the
Improvements and payment of the costs thereof; (b) all
accrued interest received upon delivery of the Bonds;
(c} all funds paid for the Bonds in excess of $548,895;
(d) any collections of all taxes herein levied for the
payment of the Bonds and interest thereon; {e) all
funds remaining in the Construction Account after
completion of the Improvements and payment of the costs
thereof, not so transferred to the account of anQther
improvement; (f) all investment earnings on funds held
in the Debt Service Account; and (g) any and all other
moneys, including but not limited to state aid funds,
which are properly available and are appropriated by
the governing body of the City to the Debt Service
Account. The Debt Service Account shall be u�ed solely
to pay the principal and interest and any premiums for
redemption of the Bonds and any other general
obligation bands of the City hereafter issued by the
City and made payable from said account as provided by
law.
No portion of the proceeds of the Bonds shall be used
directly or indirectly to acquire higher yielding
investments or to replace funds which were used
directly or indirectly to acquire higher yielding
investments, except (1) for a reasonable temporary
period until such procesds 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 Bonds or
$100,000. To this effect, any praceeds of the Bonds
and any sums from time to time held in the Canstruction
Account or the Debt Service Account (or any other City
account which will be' used to pay principal or interest
to become due on the Bonds payable therefrom) , in
excess of a�nounts which under then-applicable federal
arbitrage regulations may be invested without regard to
yield shall not be invested at a yield in excess of the
applicable yield restrictions imposed by said arbitrage
regulations on such investments after taking into
account any applicable "temporary periods" ar "minor
portion" made available under the federal arbitrage
regulations. Money in the Fund shall not be invested
in obligations ar dep+osits issued by, guaranteed by or
insured by the United States or any agency or
instrumentality thereof if and to the extent that such
investment would cause the Bonds to be "federally
241975
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guaranteed" within the meaning af Section 149 (b) of the
Internal Revenue Code of 1986, as amended (the "Code") .
16. Assessments. It is hereby determined that na less than
twenty percent (20�) of the cost to the City of each
Improvement �inanced hereunder within the meaning of
Minnesota Statutes, Section 475.58, Subdivision 1(3) , shall
be paid by special assessmients to be levied against every
assessable lot, piece and parcel of land benefited by any of
the Improvements. The City hereby covenants and agrees that
it will let all construction contracts nat heretofore let
within �ne (1j year after ordering each Impravement financed
hereunder unless the resolution ordering the Improvement
speci.fies a different time limit for the letting of
construction cantracts. The City hereby further covenants
and agrees that it will da' and perform as soon as they may
be done all acts and things necessary for the final and
valid levy of such special' assessments, and in the event
that any such assessment be at any time held invalid with
respect to any lot, piece or parcel of Zand due to any
errar, defect, or irregularity in any action or proceedings
taken or to be taken by the City or the City Council or any
of the City officers or em�loyees, either in the making of
the assessments or in the performance of any condition
precedent thereto, the City and the City Council will
forthwith do all further a�cts and take all further
proceedings as may be required by law to make the
assessments a valid and binding lien upon such property.
The special assessments hav� not heretofore been authorized,
and accordingly, for purposes of Minnesota Statutes, Section
475.55, Subdivision 3, the', special assessments are hereby
authorized. Subject to sueh adjustments as are required by
conditions in existence at' the time the assessments are
levied, it is hereby determined that the assessments shall
be payable in equal, consecutive, annual installments of
principal, with interest on the declining balance, with
general taxes for the years shown below and with interest on
the declining baiance of all such assessments at a rate per
annum not greater than the; maximum permitted by law and not
less than � per annum: '
Improvement ' Coilection
Desiqnation Amc,�unt Levy Years Years
#235 145th Street '
Reconstruction $1Q1,800 1994-2003 1995-2(?04
#243 Shannon Hills
5th 371,2Q0 ` 1994-2003 I995-2004
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At the time the assessments are in fact levied th� City
Counail shall, based on the then-current estimated col-
lections of the assessment�, make any adjustments in any ad
valorem taxes required to be levied in order to assure that
the City continues to be in compliance with Minnesota
Statutes, Section 475.61, Subdivision 1.
. 17. Tax Levy: Coverage Test. To provide maneys for payment of
the principal and interest on the Bonds there is hereby
levied upon all of the taxabie property in the City a direct
annual ad valorem tax which shall be spread upon the tax
rolls and collected with and as part of other general. .
property taxes in the City' for the years and in the amaunts
as follows: '
Year of Tax Year of Tax
Levy Collection Amoun�
1993 1994
1994 ' Z995
1995 , 199b
1995 ' 199?
1997 ' 1998
1998 1999
1999 2000
2Q00 2QO1
2401 2002
2Q02 ' 2003
2003 2 Q04
The tax levies are such that if collected in full they,
together with estimated collections of special assessments
and other revenues herein pledged for the payment of the
Bonds, will produce at least five percent {5�) in excess of
the amount needed to meet when due the principal and
interest payments on the B�nds. The tax levies shall be
irrepealable so long as any of the Bonds are outstanding and
unpaid, provided that the City reserves the right and power
to reduce the Tevies in the manner and to the extent
permitted by Minnesota Statutes, Section 475.61, Subdivision
3. '
18. General Obligation Pledge. For the prompt and full payment
of the principal and interest on the Bonds, as the same
respectively become due, the full faith, credit and taxing
powers of the •City shall be and are hereby irrevocably
pledged, If ths balance in the Debt Service Account is ever
insufficient ta pay all principal and interest then due on
the Bonds and any other bonds payable therefrom, the
241975
1$
deficiency shall be promptly paid out of any ather funds of
the C.�ty which are available for such purpose, and such
other funds may be reimbursed with or withaut interest from
the Debt Service Accaunt when a sufficient balance is
available therein.
19. Certificate of Registration. The Administrator is hereby
directed to file a certified copy of this resolution with
the County Auditor af Dakota County, Minnesota, tagether
with such other information as he or she si�all require, and
to obtain the County Auditor's certificate that the Bonds
have been entered in the Cour�ty Auditor's Bond Register, and
the tax levy required by law has .been made:
20. Records and Certificates. The officers af the City are
hereby authorized and direct�d to prepare and furnish to the
Furchaser, and to the attorneys approving the iegality of
the issuance of the Bands, certified copies of all
proceedings and records of the City relating to the Bonds
and to the financial candition and affairs of the City, and
such other affidavits, certificates and information as are
required to show the facts relating ta the legality and
marketability of the Bonds as the same appear from the boaks
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.
21. Nectative Covenant as to IIse of Proceeds and Improvements.
The City hereby covenants not to use the proceeds of the
Bonds or to use the Improvernents, or to cause or permit them
to be used, or to enter into any deferred payment
arrangements for the cost of the Improvements, in such a
manner as to cause the Bonds to be "private activity bonds"
within the meaning of Sections 103 and 142 thraugh 150 of
the Code.
22, Tax-Exempt Status of the Bonds; Rebate. The City sha1l
� comply with requirements necessary under the `Code to
establish and maintain the exclusion from gross ineome under
Section 103 of the Code of the interest on the Bonds,
ineluding without limitation (1) requirements reiating to
temporary periods for investments, (2) limitations on
amoutnts invested at a yield greater than the yield an the
Bonds, and (3) the rebate of excess investment earnings to
the United States if the Bonds (together with other
obligations reasonably expected to be issued and outstanding
2419'P5 .
19
at one time in this calendar year) exceed the small-issuer
excep�ion -amount of $5,OQ0,000.
For purposes of qualifying for the exception to the federal
arbitrage rebate requirements for governmental units issuing
$5,00O,OOfl or less of bonds, the City hereby finds,
determines and deciares that (1) the Bonds are issued by a
governmental unit with general taxing powers, (2) no Bond is
a private activity bond, (3) ninety-five percent {95�) or
more of the net proceeds of the Bonds are to be used for
local governmental activities of the City (or of a
governmental unit the jurisdiction of which is entirely
within the jurisdiction af the City) , and (4) the aggregate
face amount of all tax-exempt bonds (other than private
activity bonds) issued; by the City (and ail subordinate
entities thereof, and�,ali entities treated as one issuer
with the City) during the calendar year in which the Bonds
are issued and outstanding at one time is not reasonably
expected to exceed $S,QOO,OOO, all within the meaning of
Section 148 (f) (4) (D) of the Code.
23 . Designation of 4ualified Tax-Exempt Obligations. In order
to qualify the Bonds as "qualified tax-exempt obligations"
within the meaning of Section 265(b) (3) of the Code, the
Czty hereby makes the following factual statements and �
representations:
(aj the Bonds are issued after August 7, 1986;
{bj the Bonds are not "private activity bonds" as dsfined
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 5Q1(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 City) during this calendar year 1993
will not exceed $10,000,000; ,and
(e) not more than $10,000,0t?0 of obligations issued by the
City during this calendar year 1993 have been
designated for purposes of Section 265(b) (3) of the
Code.
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The City sha11 use its best efforts to camply with any
federa-1 procedural requirements which may apply in order to
effectuate the designation made by this paragraph.
24. Defeasance. When all Bonds have been discharged as provided
in this paragraph, a11 pledges, covenants and other rights
granted by this resolution to the registered holders of the
Bonds shall, to the extent permitted by law, cease. The
City may discharge its obligations with respect to any Bonds
which are due on any date by irrevoeably depasiting with the
Bond Registrar on or before that date a sum sufficient far
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 sutficient for the
pa�ment thereof in full with interest accrued to the date of
such deposit. The City may also discharge its obligations
with respect to any prepayable Bonds called for redemption
on any date when they ar� prepayable according to their
terms, by depositing with the Bond Registrar on or before
that date a sum sufficient far the payment thereof in full,
provided that notice of redemption thereof has been duiy
given. The City may also at any time discharge its
obligations with respect tc� any Bonds, subject to the
provisions of law now or hereafter authorizing and
regulating such action, by depositing irrevocably in escrow,
with a suitable banking institution qualified by law as an •
escrow agent for this purpose, cash or securities described
in Minnesota Statutes, Section 475.67, Subdivision 8,
bearing interest payable at such times and at such rates and
maturing on such dates as sha11 be required, subject to sale
and/or reinvestment, to pay all amounts to become due
thereon to maturity or, if notice of redemption as herein
required has been duly provided for, to such earlier
redemption date.
25. Compliance with Reimbursement Bond Reci,ulations. The
grovisions hereof are intended �o establish and provide for
the City's compliance with United States Treasury
Regulations Section 1.103-18 {the "Reimbursement
Regulations") applicable to the "reimbursement proceeds" of
the Bonds, being those portions thereof which will be used
by the City to reimburse itself for any expenditure which
the City paid or will have paid prior to the issuance of the
Bonds (an "E�enditure") .
The City hereby certifies and/or cavenants as fallows: �
(a) On or bafore the date of pa�rment of each Expenditure,
the City (or person designated to do so on behalf of
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the City) made or will have made a written declaration
o.f the City's official intent ta "Declaration") which
effectively (i) states the Gity's intention and
reasonable expectation to reimburse itself for the
payment of the Expenditure out of the proceeds of a
subsequent borrowing; {ii) give� a general ar�d
functional description of the property, project' or
pragram to which the Decl.aration relates and/or
identifies a specific fund or account of the City and
the general functional purpose thereof from which the
Expenditure was to be paid (calleetively the
"Project") ; (iii} states the maximum principal amount
of debt expected to be issued by the City for the
purpose of financing the Project; and (iv) states
specifically that the Declaration is a declaration of
official intent under Treasury Regulations Section
1. 103-18; provided, however, that no such Declaration
shall necessarily have been made with respect to
"preliminary expenditures" for the Project, defined in
the Reimbursement Regulations to include engineering or
architectural expenses and simiiar prefatory expenses,
which in the aggregate do not exceed 20� of the "issue
price" af the Bonds.
(b} Notwithstanding the foregoing provisions of paragraph
{a) above, with respect to E�enditures made by the
City prior to March 2, 1993, the City hereby represents
that there exists objeetive evidence, within the
meaning of the Reimbursement Regulations, that at the
time the Expenditure was paid the City e�cpected to
reimburse the cost thereof with the proeeeds of a
borrowing.
(c) As of the date of each Declaration, there were not and
were not thereafter expected to become available
sources of City funds which were or were expected to be
dedicated or otherwise available on a long-term basis
to provide financing for the Expenditure or Project.
(d) Each Declaratian was made a part of the publicly
' avai2able official books, records or praceedings of the
City and was continuously available for inspection by
the general public at the City xall during regular City
hours beginning not later than 30 days after the making
of the Declaratian and continuing through the date of
issuance of the Bonds, as required by the Reimbursement
Regulations.
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22
(e) Each Expenditure, other than the costs of issuing the
, Bonds, is a capital expenditure, that is, a cost of a
type that is praperly chargeable to a capital account
�or would be with a proper eiectian) under general
federal income tax principles.
(f) The "reimbursement allocation" described in the
Reimbursement Regulations for each Expenditure shall
and will be made forthwith following (but not prior to}
the issuance of the Bonds and in all events within the
period ending on the date which is the later of one
year after payment of the Expenditure or one year after
the date on which the Froject to which the Expenditure
relates is first placed in service.
(g) Each such reimbursement allocatian will be evidenced by
an entry on the official books or records of the City
maintained for and in connection with the Bonds and
will specifically identify the actuai p=ior Expenditure
or Project or, in the case of the reimbursement of a
particular fund or account described in the applicable
Declaration, the fund or aceount from which the
Expenditure was paid.
(h) The City is unaware of any facts or circumstances which
would cause it to question the reasonabiiity or
accuracy of the content of this paragraph or of any of
the Declarations, or its campliance with any of the
covenants 3�erein or therein, including without
' limitation the City's failure to issue qualifying
reimbursement bonds for costs for which it has made
declarations of official intent, absent extraorciinaxy
and unforeseeable circumstanees of the kind described
in the Reimbursement Regulations,
26. Severabilitv. If any section, paragraph or provision of
this resolution shall be held to be invalid or unenfarceable
for any reason, the invalidity or unenforceability of such
section, paragraph or provision sha11 not affect any of the
rema'ining provisions af this resolution.
27. Headinas. Headings in this resolution are included for
convenience of reference only and are not a part hereof, and
shall not limit or define the meaning of any provision
hereaf.
241975
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The maticn far t.he ad�pti�n o€ the For�goin� resaluti�n �as dul�
se�ondsd b3� member ancl, after a full
d�.scuss�o� 'kher�of and upon a vt��e be�.ng �en theze+�n, th�
fc�llo�ir�r� vc�ted i.r� ��var tb�r�af s
and the following vQtes� aga3nst the same:
Adapted this ZOth day of �7u�.y, 2.993.
E. 8. �+icMenomy, Ma�or
ATTEST•
Susan M. 'Tdalsh, Ca.ty Cl�rk
1�totion bY% Se+�onded by': ,
Vote�i in fa�rcr: ,
Voted against:
24797�
24
. � � -? T� I/1i./�('+(1(51�/�f'+ �F1���t //1L�111 •7 h /I i��51 n!? n i �i n 1,•r ti � n�/1A f�-r'7 ��r r rl nnr>♦ �r rv �rtrrl�*/1��lr � rvr�r�•�rn ihrf�t*f �
. ^
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF ROSEMOUNT
I, the undersigned, being the duiy qualified and acting
Clerk of the City of Rosemount, Minnesota, DO HEREBY CERTIFY that
I have compared the attached and foregoing extract of minutes
with the ariginal thereof on file in my office, �and that the same
is a full, true and complete transeript of the minutes of a
meeting of the City Council of said City, duiy called and held an
the date therein indicated, insofar as such minutes relate to
considering bids for, and awarding the sale of, $555,000 General
Obligation Improvement Bonds, Series 1993A af said City,
WITNESS my hand this day of .
, 1993.
Clerk
24i975
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