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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. 24}475 2 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 $5,0�0 far each number assigned to it and so selected. If a Bond is to be redeemed only in 241975 3 part, it shall be surrendered to th� Band Registrar (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bvnd Registrar duly executed by the hoider thereof or his, her or its attorney duly authorized in writing) and the City shall execute (if �ecessary) and the Bond Registrar shal.l authenticate and deliuer to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated maturity and interest rate and of any authorized denomination or denaminations; as 'requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. . 6. Bond Registrar, , in , Minnesota, is appvinted to act as bond registrar and transfer agent with respect to the Bonds {the "Bond Registrar") , and shaii do so unless and until a successor Bond Registrar is duly appoint8d, all pursuant to any contraet the City and Bond Registrar shall execute whi�h is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a sueeessor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the registered halders (or record holders) of the Bonds in the manner set forth in the form af Bond and paragraph I2 of this resolution. 7. Form of Bond. The Bonds, together with -the Band Registrar's Certificate of Authentication, the farm of Assignment and the registration information thereon, shall be in substantially the following form; 241975 . 4 UNITED STATE$ 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 241975 5 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. 241975 . 6 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 241975 7 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, 241975 8 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. 241975 . 9 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. 241975 20 � 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. ) 241975 11 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 ' ' 12 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. 241975 13 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 241975 • 14 � � . 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 241975 15 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 ' 16 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 $1Q1,800 1994-2003 1995-2(?04 #243 Shannon Hills 5th 371,2Q0 ` 1994-2003 I995-2004 247475 17 At the time the assessments are in fact levied th� City Counail shall, based on the then-current estimated col- lections of the assessment�, make any adjustments in any ad valorem taxes required to be levied in order to assure that the City continues to be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. . 17. Tax Levy: Coverage Test. To provide maneys for payment of the principal and interest on the Bonds there is hereby levied upon all of the taxabie property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general. . property taxes in the City' for the years and in the amaunts as follows: ' Year of Tax Year of Tax Levy Collection Amoun� 1993 1994 1994 ' Z995 1995 , 199b 1995 ' 199? 1997 ' 1998 1998 1999 1999 2000 2Q00 2QO1 2401 2002 2Q02 ' 2003 2003 2 Q04 The tax levies are such that if collected in full they, together with estimated collections of special assessments and other revenues herein pledged for the payment of the Bonds, will produce at least five percent {5�) in excess of the amount needed to meet when due the principal and interest payments on the B�nds. The tax levies shall be irrepealable so long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the Tevies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. ' 18. General Obligation Pledge. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the •City shall be and are hereby irrevocably pledged, If ths balance in the Debt Service Account is ever insufficient ta pay all principal and interest then due on the Bonds and any other bonds payable therefrom, the 241975 1$ 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. 241975 20 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 241975 • 21 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. 241975 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 23 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 25