HomeMy WebLinkAbout5.c. 1989 Bond Bid Award � � l ,�' � � I'O E�l)X ,in
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June 16, 1989 ITEM S. c.
T0: Mayor Hoke
Counci:lmembers: N�pper.
�xhorou�h
Walsh
Wippermann
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FROM: Stephan Jilk � �"��'
S'
Administrator/C1 rk
RE: 1989 General Obligation $2, 575,000 Bond Sale
On Tuesdap, June 20, 1989, the City wi11 open bids for the above
referenced bond sale, This opening will occur, as advertised, in
the officea of Springsted Inc . , our financial consultant.
Following that opening staff at Springsted will compile the bids
and prepare the documents for your consideration and approval to
award the sale to the lowest responsible bidder.
Mr. Jerry Shannon will be present, at the council, meet3.ng to
present the results of sale and ask your approval for the
awarding of the sale.
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� OFFI IAL STATEMENT DATED JUNE 6, 1989
NEW ISSUE Rating: Requested from Moody's
Investors Service, Inc.
In the opinion of Briggs and Morgan, Professiona!Association, 8ond Counsei, based on present federal and
Minnesota laws, regulations, rulings and decisions, at the time of their issuance and delivery to the vriginai
purchaser, interest on the Bonds is excluded from gross income for purposes of Unifed States income tax and is
excluded, to the same exfent, irr computing bvth gross and net taxable income for purposes of State of Minnesota
income tax(other than Minnesota franchise taxes measured by income and imposed on corporations and financiai
institutions). Interest on the Bonds is not an item of tax preference for purposes of the a/ternative minimum tax
imposed on individuals and corporations;however, interest on the Bonds is taken�nto account for the purpose of
determ►ning adjusted net book income(adjusted eurrenf earnings for taxable years beginning afier December 31,
1989) for purposes of comput►ng the afiernative minimum tax imposed on corporafions. No opinion will be
expressed by Bond Counsel regarding other state or federal tax consequences caused by the receipf or accrual
of interest on the Sonds or arising with respect to ownership of the Sonds. See "TAX EXEMPTlON"and"OTMER
FEDERAL TAX CONSIDERATIONS"herein.
$2,575,400
City of Rosemoun#, Minnesota
General Obiigation tmprovement Boncls, Series 1989B
Dated Date: July 1, 1989 tnterest Due: Each February 1 and August 1,
commencing February 1, 1990
The Bonds will mature February 1 as follows:
1991 $ 85,000 1994 $250,000 1997 $255,000 2Q00 $255,000
1992 $270,000 1995 $250,000 1998 $245,000 2001 $210,000
1993 $250,000 f996 $255,000 t999 $250,000
The City may elect on February 1, 1995, and on any interest payment date thereaiter,to prepay Bonds
due on or after February 1, 1996 at a price of par and accrued interest.
The Bonds will be generat obligations of the City for which the City pledges its fuil faifh and credit and
power to levy direct general ad valorem faxes. In addition, the City will pledge special assessments
against benefited property.
Bids must be for not less than $2,542,8t0 and accrued interest on the totai principal amount of the
Bonds, and must be accompanied by a certified or cashier's check in the amount of $25,75Q, payable
to the order of the City. Bidders shall specify rates in integral multiples of 5/100 or 1/8 of 1%. No rate
for any maturity sMall be more than 1% lower than any prior rate.
The Bonds wiil be bank-qualified tax-exempt obligations pursuant to 5ection 265(b)(3) of the Intemal
Revenue Code of 1986, and will not be subJect to the alternative minimum tax for individuals.
The Bonds wiil be issued in integral multiples of $5,000, as requested by the Purchatser, and will be
I fu0y registered as to principal and interest. The Bonds will be delivered without cost to the Purchaser
within 40 days following the date of their award. The City will name the Registrar and pay for
registration services.
BID QPENING: June 20, 1989 (Tuesday) at 12:00 Noon, Central Time
AWARD: June 20, 1989 (Tuesday) at 7;30 P.M., Central Time
SPRINGSTED Further information may be obtained from
SPRINGSTED lncorporated,Finartcial Adviso�to the
PUBUC FINANGf ADVISORS Issuer,85 East Seventh Place,Suite i0p,Saint Paul;
Minnesota 55101 (612}223-3D00.
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NOW THEREFORE, BE IT RESOLVED by the City Council of
the City of Rosemount, Minnesota, as follows :
1 . Acceptance of Bid. The bid of
(the "Purchaser" ) , to purchase $2 , 575, 000 General
Obligation Improvement Bonds , Series 1989B of the City
(the "Bonds " , or individually a "Bond" ) , in accordance
with the notice of bond sale, at the rates of interest
hereinafter set forth, and to pay therefor the sum of
$ , plus interest accrued to settlement, is
hereby found, determined and declared to be the most
favorable bid received and is hereby accepted, and the
Bonds are hereby awarded to said bidder. The
Administrator is directed to retain the deposit of said
bidder and to forthwith return to the unsuccessful
bidders their good faith checks or drafts .
2 . Title; Oriqinal Issue Date; Denominations;
Maturities . The Bonds shall be titled "General Obliga-
tion Improvement Bonds, Series 1989B" , shall be dated
July 1, 1989, as the date of original issue and shall be
issued forthwith on or after such date as fully
registered bonds . The Bonds shall be numbered from R-1
upward in the denomination of $5, 000 each or in any
integral multiple thereof of a single maturity. The
Bonds shall mature on February 1 in the years and amounts
as follows :
Year Amount Year Amount
1991 $ 85,000 1997 $255, 000
1992 270,000 1998 245,000
1993 250,000 1999 250,000
1994 250,000 2000 255,000
1995 250,000 2001 210,000
1996 255,000
3 . Purpose. The Bonds shall provide funds for
the construction of the Improvements and together with
other available funds of the City, provide funds to pay
on August 1, 1989, the outstanding principal and interest
on the Prior Bonds (the "Refunding" ) . The total cost of
the Improvements and the Refunding, which shall include
all costs enumerated in Minnesota Statutes, Section
475 . 65, is estimated to be at least equal to the amount
of the Bonds . Work on the Improvements shall proceed
with due diligence to completion. The City covenants
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that it shall do all things and perform all acts required
of it to assure that work on the Improvement proceeds
with due diligence to completion and that any and all
permits and studies required under law for the
Improvements are obtained.
4 . Interest. The Bonds shall bear interest
payable semiannually on February 1 and August 1 of each
year (each, an "Interest Payment Date" ) , commencing
February 1, 1990, calculated on the basis of a 360-day
year of twelve 30-day months , at the respective rates per
: annum set forth opposite the maturity years as follows :
Maturity Interest Maturity Interest
Year Rate Year Rate
1991 � 1997 � $
1992 1998
1993 i999
1994 2000
1995 2001
1996
5 . Redemption. All Bonds maturing in the year
1996 and thereafter shall be subject to redemption and
prepayment at the option of the City on February 1, 1995,
and on any Interest Payment Date thereafter at a price of
par plus accrued interest . Redemption may be in whole or
in part of the Bonds subject to prepayment. If redemp-
tion is in part, those Bonds remaining unpaid which have
the latest maturity date shall be prepaid first; 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 lot by the Bond 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.
Published notice of redemption shall in each case be
given in accordance with law, and mailed notice of
redemption shall be given to the paying agent and to each
affeeted 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 for
each $5, 000 of the principal amount of such Bond. The
Bond Registrar shall then select by lot, using such
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method of selection as it shall deem proper in its
discretion, from 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 redeerned shall be the Bonds to which were
assigned numbers so selected; provided, however, that
only so much of the principal amount of each such Bond of
a denomination of more than $5, 000 shall be redeemed as
shall equal $5, 000 for each number assigned to it and so
selected. If a Bond is to be redeemed only in part, it
shall be surrendered to the Bond Registrar (with, if the
City or Bond Registrar so requires , a written instrument
of transfer in form satisfactory to the City and Bond
Registrar duly executed by the holder thereof or his, her
or its attorney duly authorized in writing) and the City
shall execute ( if necessary) and the Bond Registrar shall
authenticate and deliver to the Holder of such Bond,
without service charge, a new Bond or Bonds of the same
series having the sarne stated maturity and interest rate
and of any author-ized denomination or denominations, 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 appointed to act as bond registrar and transfer agent
with respect to the Bonds (the "Bond Registrar" ) , and
shall do so unless and until a successor Bond Registrar
is duly appointed, all pursuant to any contract the City
and Bond Registrar shall execute which is consistent
herewith. The Bond Registrar shall also serve as paying
agent unless and until a successor paying agent is duly
appointed. Principal and interest on the Bonds shall be
paid to the registered holders (or record holders) of the
Bonds in the manner set forth in the form of Bond and
paragraph 12 of this resolution.
7 . Form of Bond. The Bonds, together with the .
Bond Registrar' s Ce�tificate of Authentication, the farm
of Assignment and the registration information thereon,
shall be in substantially the following form:
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UNITED STATE5 OF AMERICA
STATE OF MINNESOTA
DAKOTA COUNTY
CITY OF ROSEMOUNT
R- $
GENER.AL OBLIGATION IMPROVEMENT
BOND, SERIE5 1989�
INTEREST MATURITY DATE OF
RATE DATE ORIGINAL I55UE CUSIP
July 1, 1989
REGISTERED OWNER:
PRINCIPAL AMOUNT: DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Rosemount, Dakota County, Minriesota (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
called for earlier redemption, and to pay interest thereon
semiannually on February 1 and August 1 of each year (each, an
"Interest Payment Date" ) , commencing February 1, 1990, 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 Payment Date to which
interest has been paid or, if no interest has been paid, from
the date of original issue hereof . The principal of and
premium, if any, on this Bond are payable upon presentation
and surrender hereof at the principal office of ,
in , (the "Bond
Registrar" ) , acting as paying agent, or any successor paying
agent duly appointed by the Issuer. Interest on this Bond
will be paid on each Interest Payment Date by check or draft
mailed to the person in whose name this Bond is registered
(the "Ho2der" or "Bondholder" ) on the registration books of
the Issuer maintained by the Bond Registrar and at the address
appearing thereon at the close of business on the fifteenth
day of the calendar month next preceding such Interest Payment
Date (the "Regular Record Date" ) . Any interest not so timely
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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 who is the Holder hereof at the close of business
on a date (the "Special Record Date" ) fixed by the Bond
Registrar whenever money becomes available for payment of the
defaulted interest. Notice of the Special Record Date shall
be given to Bondholders not less than ten days prior to the
Special Record Date. The principal of and premium, if any,
and interest on this Bond are payable in lawful money of the
United States of America.
This Bond shall not be valid or become obligatory
for any purpose or be entitled to any security unless the
Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS
OF THIS BOND 5ET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS
SHALL FOR ALL PURPOSES HAVE THE SAME �FFECT AS IF SET FORTH
HERE.
IT IS HEREBY CERTIFIED AND RECITED that all acts,
conditions and things required by the Constitution and laws of
the State of Minnesota to be done, to happen and to be
performed, precedent to and in the issuance of this Bond, have
been done, have happened and have been performed, in regular
and due form, time and manner as required by law, and that
this Bond, together with all other debts of the Issixer
outstanding on the date of original issue hereof and the date
of its issuance and delivery to the original purchaser, does
not exceed any constitutional or statutory limitation of
indebtedness .
IN WITNESS WHEREOF, the City of Rosemount, Dakota
County, Minnesota, by its City Council has caused this Bond to
be executed on its behalf by the facsimile signatures of its
Mayor and its Administrator, the corporate seal of the Issuer
having been intentionally omitted as permitted by law.
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Date of Registration: Registrable by:
Payable at:
BOND REGISTRAR' S CITY OF ROSEMOUNT,
CERTIFICATE OF DAKOTA COUNTY, MINNESOTA
AUTHENTICATION
This Bond is one of the
Bonds described in the /s/ Facsimile
Resolution mentioned Mayor
within.
is/ Facsimile
, Administrator
Bond Registrar
By
Authorized Signature
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ON REVERSE OF BOND
Redemption. All Bonds of this issue (the "Bonds " )
maturing in the year 1996 and thereafter are subject to
redemption and prepayment at the option of the Issuer on
February 1 , 1995, and on any Interest Payment Date thereafter
at a price of par plus accrued interest . Redemption may be in
whole or in part of the Bonds subject to prepayment. If
redemption is in part, those Bonds remaining unpaid which have
the latest maturity date shall be prepaid first; and if only
part of the Bonds having a common maturity date are called for
prepayment, the specitic Bonds to be prepaid shall be chosen
by lot by the Bond 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 . Published notice of
redemption shall in each case be given in accordance with law,
and mailed notice of redemption shall be given to the paying
agent and to each affected Holder of the Bonds .
Selection of Bonds for Redemption; Partial
Redemption. To effect a partial redemption of Bonds having a
common maturity date, the Bond Registrar shall assign to each
Bond having a common maturity date a distinctive 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 numbers so selected; provided,
however, that only so much of the principal amount of such
Bond of a denomination of more than $5, 000 shall be redeemed
as shall equal $5, 000 for each number assigned to it and so
selected. If a Bond 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
duly authorized in writing) and the Issuer shall execute ( if
necessary) and the Bond Registrar shall authenticate and
deliver 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 denominations, 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.
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Issuance; Purpose; General Obligation. This Bond is
one of an issue in the total principal amount of $2 , 575, 000,
all of like date of original issue and tenor, except as to
number, maturity, interest rate, denomination and redemption
privilege, which Bond has been issued pursuant to and in full
conformity with the Constitution and laws of the State of
Minnesota and pursuant to a resolution adopted by the City
Council of the Issuer on June 20, 1989 (the "Resolution" ) , for
the purpose of providing money to finance the construction of
various improvements within the jurisdiction of the Issuer and
to provide funds to refund the Issuer ' s General Obligation
Temporary Improvement Bonds of 1986 . This Bond is payable out
of the General Obligation Improvement Bonds, Series 1989B Fund
of the Issuer. This Bond constitutes a general obligation of
the Issuer, and to provide moneys for the prompt and full
payment of its principal, premium, if any, and interest when
the same become due, the full faith and credit and taxing
powers of the Issuer have been and are hereby irrevocably
� pledged.
Denominations; Exchange; Resolution. The Bonds are
issuable solely as fully registered bonds in the denominations
of $5, 000 and integral multiples thereof of a single maturity
and are exchangeable for fully registered Bonds of other
authorized denominations in_ equal aggregate principal amounts
at the principal office of the Bond Registrar, but only in the
manner and subject to the limitations provided in the
Resolution. Reference is hereby made to the Resolution for a
description of the rights and duties of the Bond Registrar.
Copies of the Resolution are on file in the principal office
of the Bond Registrar.
Transfer. This Bond is transferable by the Holder
in person or by his, her or its attorney duly authorized in
writing at the principal office of the Bond Registrar upon
presentation and surrender hereof to the Bond Registrar, all
subject to the terms and conditions provided in the Resolution
and to reasonable regulations of the Issuer contained in any
agreement with the Bond Registrar. Thereupon the Issuer shall
execute and the Bond Registrar shall authenticate and deliver,
in exchange for this Bond, one or more new fully registered
Bonds in the name of the transferee (but not registered in
blank or to "bearer" or similar designation) , of an authorized
denomination or denominations, in aggregate principal amount
equal to the principal amount of this Bond, of the same
maturity and bearing interest at the same rate.
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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 of this Bond and any legal or unusual costs regarding
transfers and lost Bonds .
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 receiving
payment as herein provided (except as otherwise provided on
the reverse side hereof with respect to the Record Date} and
for all other purposes, whether or not this Bond shall be
overdue, and neither the Issuer nor the Bond Registrar shall
be affected by notice to the contrary.
Qualified Tax-Exempt Obligation. This Bond has been
designated by the Issuer as a "qualified tax-exempt
obligation" for purposes of Section 265(b) ( 3) of the Internal
Revenue Code of 1986 , as amended.
ABBREVIATIONS
The following abbreviations, when used in the inscription
on the face of this Bond, shall be construed as though they
were written out in full according to applicable laws or
regulations:
TEN COM - 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 P,ct
Additional abbreviations may also be used
though not in the above list .
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ASSIGNMENT
For value received, the undersigned hereby sells,
assigns and transfers unto
the within Bond and does
hereby irrevocably constitute and 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 correspond with the
name as it appears upon the face of
the within Bond in every particular,
without alteration or any change
whatever.
Signature Guaranteed:
Signature(s) must be guaranteed by a national bank or trust
company or by a brokerage firm having a membership in one of
the major stock exchanges .
The Bond Registrar will not effect transfer of this Bond
unless the information concerning the transferee requested
below is provided.
Name and Address:
( Include information for all joint owners
if the Bond is held by joint account. )
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8 . Execution; Temporary Bonds . The Bonds
shall be executed on behalf of the City by the signatures
of 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 of disability or resig-
nation or other absence of either such officer, the Bonds
may be signed by the manual or facsimile signature of
that officer who may act on behalf of such absent or
disabled officer. In case either such officer whose
signature or facsimile of whose signature shall appear on
the Bonds shall cease to be such officer before the
delivery of the Bonds, such signature or facsimile shall
nevertheless be valid and sufficient for all purposes,
the same as if he or she had remained in office until
delivery. The City may elect to deliver, in lieu of
printed definitive bonds, one or more typewritten tempo-
rary 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 Bonds need
not be signed by the same person. The Bond Registrar
shall authenticate the signatures of officers of the City
on each Bond by execution of the Certificate of
Authentication on the Bond and by inserting as the date
of registration in the space provided the date on which
the Bond is authenticated, except that for purposes of
delivering the original Bonds to the Purchaser, the Bond
Registrar shall insert as a date of registration the date
of original issue, which date is July 1, 1989 . The
Certificate of Authentication so executed on each Bond
shall be conclusive evidence that it has been
authenticated and delivered under this resolution.
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10 . Registration; Transfer; Exchange. The
City will cause to be kept at the principal office of the
Bond Reg.istrar a bond register in which, subject to such
reasonable regulations as the Bond Registrar may
prescribe, the Bond Registrar shall provide for the
registration of Bonds and the registration of transfers
of Bonds entitled to be registered or transferred as
herein provided.
Upon surrender for transfer of any Bond at the
principal office of the Bond Registrar, the City shall
execute ( if necessary) , and the Bond Registrar shall
authenticate, insert the date of registration (as
provided in paragraph 9 } of, and deliver, in the name of
the designated transferee or transferees, one or more new
Bonds of any authorized denomination or denominations of
a like aqgregate principal amount, having the same stated
maturity and interest rate, as requested by the
transferor; provided, however, that no Bond may be
registered in blank or in the name of "bearer" or similar
designation.
At the option of the Holder, Bonds may be
exchanged for 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 necessary) , and the Bond Registrar
shall authenticate, insert the date of registration of,
and deliver the Bonds which the Holder making the
exchange is entitled to receive.
All Bonds surrendered upon any exchange or
transfer provided for in this resolution shall be
promptly cancelled by the Bond Registrar and thereafter
disposed of as directed by the City.
All Bonds delivered in exchange for or upon
transfer of Bonds shall be valid general obligations of
the City evidencing the same debt, and entitled to the
same benefits under this resolution, as the Bonds
surrendered for such exchange or transfer.
Every Bond presented or surrendered for
transfer or exehange shall be duly endorsed or be
accompanied by a written instrument of transfer, in form
satisfactory to the Bond Registrar, duly executed by the
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he ContrdryRegist are
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14 . Delivery; A lication of Proceeds . The
Bonds when so prepared and executed shall be delivered by
the City Treasurer to the Purchaser upon receipt of the
purchase price, and the Purchaser shall not be obliged to
see to the proper application thereof .
15 . Fund and Accounts . There is hereby
created a special fund to be designated the "General
Obligation Improvement Bonds , Series 1989B Fund" (the
"Fund" ) to be administered and maintained by the
Treasurer as a bookkeeping account separate and apart
from all other funds maintained in the official financial
records of the City. The Fund shall be maintained in the
manner herein specified until all of the 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, and less any amount paid
for the Bonds in excess of $2 ,542 ,810, and less
capitalized interest in the amount of $ ,
plus any special assessments levied with respect to
the Improvements and collected prior to completion
of the Improvements and payment of the costs
thereof . From the Construction Account, in addition
to the transfer referred to in paragraph 16 hereof,
there shall be paid all costs and expenses of making
the Improvements list�d in paragraph 16 , including
the cost of any construction contracts heretofore
let and all other costs incurred and to be incurred
of the kind authorized 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 of the collection
of taxes or special assessments herein levied or
covenanted to be levied; and provided further that
if upon completion of the Improvements there shall
remain any unexpended balance in the Construction
Account, the balance (other than any special
assessments) may be transferred by the Council to
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the fund of any other improvement instituted
pursuant to Minnesota Statutes, Chapter 429, and
provided further that any special assessments
credited to the Construction Account shall only be
applied towards payment of the costs of the
Improvements upon adoption of a resolution by the
City Council determining that the application of the
special assessments for such purpose will not cause
the City to no longer be in compliance with
Minnesota Statutes, Section 475 . 61, Subdivision 1 .
( ii) Debt Service Account. There are hereby
irrevocably appropriated and pledged to, and there
shall be credited to, the Debt Service Account: (a)
all accrued interest received upon delivery of the
Bonds; (b) all funds paid for the Bonds in excess of
$2, 542, 810; (c) capitalized interest in the amount
of $ (d) all collections of special
assessments herein covenanted to be levied with
respect to the Improvements and either initially
credited to the Construction Account and not 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 anct
payment of the costs thereof; (e) aIl remaining
collections of special assessments levied with
respect to the improvements constructed with the
proceeds of the Prior Bonds ; ( f) any funds remaining
in the debt service account created for the Prior
Bonds after the payment of the Prior Bonds on
August 1, 1989; (g) any collections of all taxes
herein or hereafter levied for the payment of the
Bonds and interest thereon; (h) 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 another
improvement; ( i) all investment earnings on funds
held in the Debt Service Account; and ( j ) any and
all other moneys which are properly available and
are appropriated by the governing body of the City
to the Debt Service Account including, but not
limited to, annual contributions of $22, 165 from the
Minnesota Department of Transportation. The Debt
Service Account shall be used solely to pay the
principal and interest and any premiums for
redemption of the Bonds and any other general
obligation bonds of the City hereafter issued by the
City and made payable from said account as provided
by law.
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No portion of the proceeds of the Bonds shall be
used directly or indirectly to acquire higher yielding
investments or to replace funds which were used directly
or indirectly to acquire higher yielding investments,
except ( 1) for a reasonable temporary period until such
proceeds are needed for the purpose for which the Bonds
were issued and (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
proceeds of the Bonds and any sums from time to time held
in the Construction Account or 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 amounts 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" or
"minor portion" made available under the federal
arbitrage regulations . Money in the Fund shall not be
invested in obligations or deposits 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
guaranteed" within the meaning of Section 149(b) of the
Internal Revenue Code of 1986 , as amended (the "Code" ) .
16 . Payment of General Obligation Temporary
Improvement Bonds of 1986 . On or before August 1, 1989,
there shall be transferred to the Paying Agent for the
Prior Bonds from the Construction Account $ of
Bond proceeds, which together with other available funds
of the City will be used on August 1, 1989, to pay all
the principal and interest outstanding on the Prior Bonds
on that date.
17 . Assessments . It is hereby determined that
no less than twenty percent ( 20� ) of the cost to the City
of each Improvement financed hereunder within the meaning
of Minnesota Statutes, Section 475 . 58, Subdivision 1( 3) ,
shall be paid by special assessments 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
not heretofore let within one ( 1 ) year after ordering
each Improvement financed hereunder unless the resolution
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ordering the Improvement specifies a different time limit
for the letting of construction contracts . The City
hereby further covenants and agrees that it will do and
perform as soon as they may be done all acts and things
which may be 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 land due to any error,
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 employees, 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 acts 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 have not heretofore been
authorized, and accordingly, for purposes of Minnesota
Statutes, Section 475 . 55, Subdivision 3, the special
assessmerrts are hereby authorized. Subject to such
adjustments as are required by conditions in existence at
the time the assessments are levied, the assessments are
hereby authorized and it is hereby determined that the
assessments shall be payable in equal, consecutive,
annual installments, with general taxes for the years
shown below and with interest on the declining balance of
all such assessments at a rate per annum not greater than
the maximum permitted by law and not less than � per
annum:
Improvement Collection
Designation Amount Levy Years Years
194 - Shannon $822, 990 1990/1999 1991/2000
Parkway
195 - West 501,895 1990/1999 1991/2000
Ridge 3rd Addition
196 - Valley 226 , 960 1989/1998 1990/1999
Oaks Phase 4
191 - Chippendale 65,445 1989/1998 1990/1999
Avenue
At the time the assessments are in fact levied
the City Council shall, based on the then current
estimated collections of the assessments, make any
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promptly paid out of any other funds of the City which
are available for such purpose, and such other funds may
be reimbursed with or without interest from the Debt
Service Account 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 of Dakota
County, Minnesota, together with such other information
as he or she shall reguire, and to obtain the County
Auditor' s certificate that the Bonds have been entered in
the County Auditor' s Bond Register, and that the tax levy
required by law has been made.
20 . Records and Certificates . The officers of
the City are hereby authorized and directed to prepare
and furnish to the Purchaser, and to the attorneys
approving the legality of the issuance of the Bonds,
certified copies of all proceedings and records of the
City relating to the Bonds and to the financial condition
and affairs of the City, and such other affidavits,
certificates and information as are required to show the
facts relating to the legality and marketability of the
Bonds as the same appear from the books and records under
their custody and control or as otherwise known to them,
and all such certified copies , certificates and affi-
davits, including any heretofare furnished, shall be _
deemed representations of the City as to the facts
recited therein.
21 . Neqative Covenant as to Use of Proceeds
and Project. The City hereby covenants not to use the
proceeds of the Bonds or to use the Project, or to cause
or permit them to be used, or to enter into any deferred
payment arrangements for the cost of the Project, in such
a manner as to cause the Bonds to be "private activity
bonds" within the meaning of Sections 103 and 141 through
150 of the Code.
22 . Tax-Exempt Status of the Bonds; Rebate.
The City shall comply with requirements necessary under
the Code to establish and maintain the exclusion from
gross income under Section 103 of the Cade of the
interest on the Bonds, including without limitation
( 1) requirements relating to temporary periods for
investments, ( 2 ) limitations on amounts invested at a
yield greater than the yield on the Bonds, and ( 3) the
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rebate of excess investment earnings to the United States
if the Bonds (together with other obligations reasonably
expected to be issued and outstanding at one time in this
calendar year) exceed the small-issuer exception amount
of $5, 000, 000 .
For purposes of qualifying for the exception to
the federal arbitrage rebate requirements for govern-
mental units issuing $5 , 000,000 or less of bonds, the
City hereby finds, determines and declares 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
of the City) , and (4 ) the aggregate face amount of all
tax-exempt bonds (other than private activity bonds)
issued by the City (and all subordinate entities thereof,
and all 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 $5, 000, 000, all within the meaning of Section
148( f) (4 ) (C) of the Code.
23 . Desiqnation of Qualified Tax-Exempt
Obligations . In order to qualify the Bonds as
"quali�ied tax-exempt obligations " within the meaning of
Section 265(b) ( 3) of the Code, the City hereby makes the
following factual statements and representations:
(a) the Bonds are issued after August 7 , 1986;
(b) the Bonds are not "private activity bonds"
as defined in Section 141 of the Code;
(c) the City hereby designates the Bonds as
"qualified tax-exempt obligations" for purposes of
Section 265(b) ( 3) of the Code;
(d) the reasonably anticipated amount of
tax-exempt obligations (other than private activity
bonds, treating qualified 501 (c) ( 3) bonds as not
being private activity bonds ) which will be issued
by the City (and all entities treated as one issuer
with the City, and all subordinate entities whose
obligations are treated as issued by the City)
during this calendar year 1989 will not exceed
$10, 000,000;
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(e) not more than $10, 000,000 of obligations
issued by the City during this calendar year 1989
have been designated for purposes of Section
265 (b) ( 3) of the Code; and
( f) the aggregate face amount of the Bonds
does not exceed $10 , 000, 000 .
The City shall use its best efforts to comply with any
federal pracedural requirements which may apply in order
to effectuate �he designation made by this paragraph.
24 . Severability. If any section, paragraph
or provision of this resolution shall be held to be
invalid or unenforceable for any reason, the invalidity
or unenforceability of such section, paragraph or
provision shall not affect any of the remaining
provisions of this resolution.
25 . Headings . 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 hereof .
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CERTIFICATION
STATE OF MINNESOTA �
COUNTY OF DAKOTA
CITY OF ROSEMOUNT
I , the undersigned, being the duly qualified and
acting Deputy Clerk of the City of Rosemount, Minnesota, DO
HEREBY CERTIFY as follows :
1 . I have compared the attached and foregoing
extract of minutes with the original thereof on file in
my office, and that the same is a full, true and complete
transcript of the minutes of a meeting of the City
Council of said City, duly called and held June 20, 1989,
insofar as such minutes relate to considering bids for
and awarding the sale of, $2 , 575 , 000 General Obligation
Improvement Bonds, Series 1989B of said City.
2 . Member introduced the
attached Resolution No. 1989- entitled "Resolution
Accepting Bid or Sale of $2 , 575, 000 General Obligation
Improvement Bonds, Series 1989B, Providing For Their
Issuance and Levying, a Tax For the Payment Thereof" ; and
moved its adoption.
3 . The motion for the adoption of the foregoing
resolution was duly seconded by member
and, after a full discussion thereof and upon a vote
being taken thereon, the . following voted in favor
thereof :
and the following voted against the same:
Whereupon said resolution was declared duly
passed and adopted.
WITNESS my hand and the seal of said City this
day of , 1989 .
Deputy Clerk
(SE�)
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