Res 1992 - 86 Extract of Minutes of a Meeting of the City Council of MH (12/1/1992)RESOLUTYON N0. 92-86
EXTRACT OF MINUTES OF A MEETIIdG OF THE
CITY COUNCIL OF THE CITY OF
MENDOTA HEIGHTS, MINNESOTA
HELD: December 1, 1992
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Mendota Heights,
Dakota County, Minnesota, was duly held at the City Hall in said
City on Tuesday, the lst day of December, 1992, at 7:30 P.M., for
the purpose, in part, of,opening and considering bids for, and
awarding the sale of, $710,000 General Obligation Park Bonds of
1992 of the City.
The following members were present: Mertensotto, B1 esener
Cummins, Koch, Smith
and the following were absent: none
The City Clerk presented affidavits showing publication
of notice of call for bids on $710,000 Genera-1 Obligation Park _. ---
Bonds of 1992 of the City, for which bids were to be received at
this meeting, in accordance with the resolution adopted by the
City Council on October 20, 1992. The affidavits were examined,
were found to comply with the provisions of Minnesota Statutes,
Chapter 475, and were approved and ordered placed on file.
The Council then proceeded to receive and open bids.for
the sale of the Bonds. The following bids were received:
Bidder Interest Rate Net Interest Cost
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" BIDS RECEIVED �
$710,000 G.O. PARK BONDS OF 1992
Dec. 1, 1992
ACC�UNT
N!�RtJEST INVESTMENT SEP,VICES
MERRILL LYfVCH CAPITAL P�KTS.
FBS INVESTMEhT SERVICES
American national bank & Trust Co.
Marquette National Bank
Juran & Moody Inc.
lYliller Schroder Financial
Robert Peterson Co..
PIPER JAFFRAY & HOPWOOD INC.
Robert W. Baird & Co.
Dougherty Dawkins Strand & Yost
John Kinnard & Co.
DAIN BOSHIORTH Cd.
MILLER JOHNSQN & KUHLN
��9oore Juran & Co. Inc.
RATES DISCOUNT
3.20� 1994
3.70 1995 �9,230.00
4 1996
4.40 1997
4.60 1998
4.75 1999
4.90 2000
5.10 2001
5.25 2002
5.40 2003
5.60 2004
5.75 2005
5.90 2006
6 2007
G 200II
6.05 2009
6.10 20�:0/11
0
s
$ CQST RATE
$519,254.17 5.8816�
. ,
8,520.00 521,740.83 5.9098�
9,940.00 527,898.33 5.9795%
The Council then proceeded to consider and discuss the
bids, after which member C� h...,-, %.�. r introduced the
following resolution and moved its adoption:
RESOLUTION ACCEPTING BID ON
SALE OF
$710,000 GENERAL OBLIGATION PARK
BONDS OF 1992, PROVIDING FOR THEIR ISSUANCE
AND LEVYING A TAX FOR THE PAYMENT THEREOF
A. WHEREAS, the City Council of the City of Mendota
Heights, Minnesota (the "CityN), has heretofore determined and
declared that it is necessary and expedient to issue general
obligation bonds of the City, purauant to Minnesota Statutes,
Chapter 475, to provide money to finance the acquisition and
betterment of parks, consistinq of neiqhborhood and community
parks, bicycle and pedestrian trails, and community ballfields
(collectively, the "Park Improvements"); and
B. WHEREAS, pursuant to said determination the City
held an election on Auqust 15, 1989, at which the electorate
approved the issuance of general obligation bonds in an amount
not to exceed $3,400,000 for the Park Improvements; and
C. WHEREAS, pursuant to said authorization, the City
has heretofore issued $2,745,000 of general obligation bonds; and
D. WHEREAS, Minnesota Statutes, Section 475.56
authorizes the City to issue additional bonds in an amount not to
exceed two percent of the amount of bonds otherwise authorized to
be issued to pay for an underwriting discount; and
E. WHEREAS, the City has now determined to issue an
additional $710,000 in general obligation bonds pursuant to said
authorization to finance the Park Improvements (the "Project");
and
NOW, THEREFORE, BE IT RESOLVED by the Council of the
City of Mendota Heiqhts, Minnesota, as follows:
1. Acceptance of Bid. The bid of Nov�west Investment
Services (the "Purchaser'�) , to purchase $710, 000
General Obliqation Park Bonds of 1992 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 $ 700,770.00 , 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 Clerk is directed to
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retain the deposit of said bidder and to forthwith return to the
unsuccessful bidders their good faith checks or drafts.
2. ��tle: Qriqinal Issue Date: Denominations;
Maturities. The Bonds shall be titled "General Obligation Park
Bonds of 1992", shall be dated December 1, 1992, 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
Auqust 1 in the years and amounts as follows:
Year
1994-1997
1998-1999
2000-2001
2002
2003-2004
�-n . _ t
$20,000
25,000
30,000
35,000
40,000
Al1 dates are inclusive.
�ear
2005-2006
2007-2008
2009
2010
2011
.�_�� . �
$ 45,000
50,000
55,000
60,000
100,000
3. �pose. The Bonds shall provide funds to finance
the Project. The total cost of the Project, 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 Project shall proceed with due diligence to completion.
The City covenants that it,shall do all things and perform all
acts required of it to assure that work on the Project proceeds
with due diligence to completion and that any and all permits and
studies required under law for the Project 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 August 1, 1993, 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:
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Maturity Interest
Year ' Rate
1994
1995
1996
1997
1998
1999
2000
2001
2002
3.2 �
3.7
4
4.4
4.6
4.75
4.9
5.1
5.25
Maturity Interest
Year Rate
2003
2004
2005
2006
2007
2008
2009
2010'
2011
5.4 �
5.6
5.75
5.9
6
6
6. 05
6.1
6.1
5. Redempti.on. All Bonds maturinq in the years 2002
to 2011, both inclusive, shall be subject to redemption and
prepayment at the option of the City on August 1, 2001, 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 remaininq 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. Mailed notice of
redemption shall be given to the paying agent 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 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 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, 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
writinq) and the City shall execute (if necessary) and the Bond
Registrar shall authenticate and deliver to the Holder of such
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Bondj withaut service charge, a new Bond or Bonds of the same
series havinq the same stated maturity and interest rate and of
any authorized denomination or denominations, as requested by
such iiolder, in aggregate prirtcipal amount equal to and in
exchange for the unredeemed portian of the principal of the Bond
so surrendered.
6. Bond Reqist�ar. Norwest Bahk N.A.
, in Minneapolis, , Minnesota , is appainted to act
as bond registrar and transfer agent with respect to the Bonds
(the "Bond Registrar"), and shall do so unless and unti2 a
successor Bond Registrar is duly appointed, all pursuant to any
cantract the Ci.ty and Bond Registrar shall execute which is
consistent herewith. The Bond Registrar shall also serve as
payinq agent unless and until a successor paying agent is duly
appointed. Principal and interea� on the Bonds shall be paxd to
the registered holders (or record holdersj oi the Bonds in the
manner set forth in the form of Band and paraqraph 12 of this
resolution.
7. Form of Bond. The Bonds, together with the Bond
Registrar's Certificate af Authentication, the form of Assignment
and the registration a.nfornaation thereon, shall be in
substantially the fol2owing foria:
►��"�'i�
`i
�
R-
UNITED STATES OF AMERICA
STATE OF MINNESOTA
DAKOTA COUNTY
CITY OF MENDOTA HEIGHTS
$
GENERAL OBLIGATION PARK
BOND OF 1992
INTEREST MATURITY DATE OF
RATE DATE ORIGINAL ISSUE CUSIP
DECEMBER 1, 1992
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Mendota Heights, 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 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 August 1, 1993, 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 "Holder" or "Bondholder") on the
registration books of the Issuer maintained by the Bond Registrar
and at the address appearing thereon at the close of business on
the fifteenth day of the calendar month next preceding such
Interest Payment 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
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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.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS 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 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 Issuer 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 Mendota Heights, 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 Clerk, the corporate seal of the Issuer having been
intentionally omitted as permitted by law.
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Date of Registration:
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
Bond Registrar
By
Authorized Signature
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Registrable by:
Payable at:
CITY OF MENDOTA HEIGHTS,
DAKOTA COUNTY, MINNESOTA
Ll Facsimile
Mayor
/s� Facsimile
Clerk
J
8
ON REVERSE OF BOND
Redemption. All Bonds of this issue (the "Bonds")
maturing in the years 2002 to 2011, both inclusive, are subject
to redemption and prepayment at the option of the Issuer on
August 1, 2001, 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 prepaya►ent. 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 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.
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.
Issuance; Purpose; General ObliQation. This Bond is
one of an issue in the total principal amount of $710,000, all of
like date of original issue and tenor, except as to number,
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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 December 1, 1992 (the "Resolution"), for the purpose of
providing money to finance the acquisition and betterment of
parks, consisting of neighborhood and community parks, bicycle
and pedestrian trails, and community ballfields. �This Bond is
payable out of the General Obligation Park Bonds of 1992 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.
�ees 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
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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.
Authentication. 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. .
4ualified 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 Act
Additional abbreviations may also be used
though not in the above list.
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:
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(Include information for all joint owners
if the Bond is held by joint account.)
12
8. Execution; Temporary Bonds. The Bonds shall be
executed on behalf of the City by the signatures of its Mayor and
Clerk 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 resignation or
other absence of either such officer, the Bonds may be signed by
the manual or facsimile signature of that officer who may act on
behalf of such absent or disabled officer. 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 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 Clerk. Such temporary bonds shall,
upon the printing of the definitive bonds and the execution
thereof, be exchanged therefor and canceled.
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 December 1, 1992. The Certificate of Authentication so
executed on each Bond shall be conclusive evidence that it has
been authenticated and delivered under this resolution.
10. Registration; Transfer; Exchange. The City will
cause to be kept at the principal office of the Bond Registrar a
bond register in which, subject to such reasonable regulations as
the Bond Registrar may prescribe, the Bond Registrar shall
provide for the registration of Bonds and the registration of
transfers of Bonds entitled to be registered or transferred as
herein provided.
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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 aggregate 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 deno�ination 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.
Al1 Bonds surrendered upon any exchange or transfer
provided for in this resolution shall be promptly canceled 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
exchange shall be duly endorsed or be accompanied by a written
instrument of transfer, in form satisfactory to the Bond
Registrar, duly executed by the Holder thereof or his, her or its
attorney duly authorized in writing.
The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable
in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable
regulations of the City contained in any agreement with the Bond
Registrar, including regulations which permit the Bond Registrar
to close its transfer books between record dates and payment
dates. The Clerk is hereby authorized to negotiate and execute
the terms of said agreement.
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11. Ricthts Up,on Transfer or Exchanae. Each Bond
delivered upon transfer of or in exchange for or in lieu of any
other Bond shall carry all the rights to interest accrued and •
unpaid, and to accrue, which were carried by such other Bond.
12. Interest Payment; Record Date. Interest on any
Bond shall be paid on each Interest Payment Date by check or
draft mailed to the person in whose name the Bond is registered
(the "Holder") on the registration books of the City maintained
by the Bond Registrar and at the address appearing thereon at the
close of business on the fifteenth (15th) day 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 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 by the Bond Registrar
to the Holders not less than ten (10) days prior to the Special
Record Date.
13. Treatment of Reqistered Owner. The City and Bond
Registrar may treat the person 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 not
such Bond shall be overdue, and neither the City nor the Bond
Registrar shall be affected by notice to the contrary.
14. Delivery; Agplication of Proceeds. The Bonds when
so prepared and executed shall be delivered by the 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 Park Bonds
of 1992 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.
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r
(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 $700,000, and less capitalized
interest in the amount of $ -0- (together with interest
earnings thereon and subject to such other adjustments.as are
appropriate to provide sufficient funds to pay interest due on
the Bonds on or before 1, 199_). From the
Construction Account there shall be paid all costs and expenses
of the Project, 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 herein levied or
covenanted to be levied.
(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 $700,000; (c) capitalized interest in the amount of -=
$ -0- (together with interest earnings thereon and
subject to such other adjustments as are appropriate to provide
sufficient funds to pay interest due on the Bonds on or before
l, 199_); (d) any collections of all taxes herein or
hereafter levied for the payment of the Bonds and interest
thereon; (e) all funds remaining in the Construction Account
after completion of the Project and payment of the costs thereof,
not so transferred to the account of another project; (f) all
investment earnings on funds held in the Debt Service Account;
and (g) any and all other mone�rs 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 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.
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
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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. Tax Levy; Coverage Test. To provide moneys for
payment of the principal and interest on the Bonds there is
hereby levied upon all of the taxable 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 amounts as follows:
Years of Tax
Levy
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
200�
2008
2009
2010
The tax levies
together with estimated
pledged for the payment
zzv2n
Year of Tax
Collection ount
1993 $ 47,800
1994 61,600
1995 61,000
1996 59,100
1997 57,200
1998 63,400
1999 62,200
2000 66,000
2001 64,500
2 002 67, 900
2003 71,000
2004 b$,500
2005 71,500
2006 70,900
2007 Z1,000
2oos 68,000
2009 75,300
2010 71,300
2011 108,250
are such that if collected in full
collections of other revenues herein
of the Bonds, will produce at least
17
they,
f ive
k
percent (5�) in excess of the amount needed to meet when due the
principal and interest payments on the Bonds. 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 levies in the manner and to the extent permitted by
Minnesota Statutes, Section 475.61, Subdivision 3.
17. Defeasance. When all Bonds have been discharged
as provided in this paragraph, all 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 irrevocably depositing with the Bond Registrar
on or before that date a sum sufficient for 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 sufficient for the payment 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 are prepayable according to
their terms, by depositing with the Bond Registrar on or before
that date a sum sufficient for the payment thereof in full,
provided that notice of redemption thereof has been duly given.
The City may also at any time discharge its obligations with
respect to 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 shall 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.
18. Compliance With Reimbursement Bond Requlations.
The provisions of this paragraph are intended to establish and
provide for the City's compliance with United States Trea�sury
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 Closing Date (an "Expenditure").
zz9z�
The City hereby certifies and/or covenants as follows:
(a) On or before the date of payment
the City (or person designated to
the City) made or will have made
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of each Expenditure,
do so on behalf of
a written declaration
�
�
zz�z�
of the City's official intent (a "Declaration") which
effectively (i) states the City's intention and
reasonable expectation to reimburse itself for the
payment of the Expenditure out of the proceeds of a
subsequent borrowing; (ii) gives a general and
functional description of the property, project or
program to which the Declaration 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 (collectively 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 similar prefatory expenses,
which in the aggregate do not exceed 20� of the "issue
price" of the Bonds. Notwithstanding the foregoing,
with respect to Expenditures made by the City prior to
March 2, 1992, the City hereby represents that there
exists objective evidence, within the meaning of the
Reimbursement Regulations, that at the time the
Expenditure was paid the City expected t�o reimburse the
cost thereof with the proceeds of a borrowing.
(b) 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..
(c) Each Declaration was made a part of the publicly
available official books, records or proceedings of the
City and was continuously available for inspection by
the general public at City Hall during regular City
hours beginning not later than 30 days after the making
of the Declaration and continuing through the date of
issuance of the Bonds, as required by the Reimbursement
Regulations.
(d) Each Expenditure, other than the costs of issuing the
Bonds, is a capital expenditure, that is, a cost of a
type that is properly chargeable to a capital account
(or would be with a proper election) under general
federal income tax principles.
19
:�
(e) 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 Project to which the Expenditure
relates is first placed in service.
(f) Each such reimbursement allocation 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 actual prior Expenditure
or Project or, in the case of the reimbursement of a
particular fund or account described in the applicable
Declaration, the fund or account from which the
Expenditure was paid.
(g) The City is unaware of any facts or circumstances which
would cause it to question the reasonability or
accuracy of the content of this paragraph or of any of
the Declarations, or its compliance with any of the
covenants herein 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 extraordinary
and unforeseeable circumstances of the kind described
in the Reimbursement Regulations.
19. General Obligation PledQe. 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 the balance in the Debt Service Account is ever insufficient
to pay all principal and interest then due on the Bonds and any
other bonds payable therefrom, the deficiency shall be promptly
paid out 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.
20. Certificate of Reqistration. The Clerk 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 require, 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.
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20
s
►
21. 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 affidavits, including any heretofore
furnished, shall be deemed representations of the City as to the
facts recited therein.
22. Negative Covenant as to Use of Proceeds and
Proiect. 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.
23. 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 Code 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 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 governmental 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
z29zn
21
to exceed $5,000,000, all within the meaning of Section
148 (f) (4) (D) of the Code.
24. Desiqnation 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 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 1992 will not exceed $10,000,000; and
(e) not more than $10,000,000 of obligations
issued by the City during this calendar year 1992 have
been designated for purposes of Section 265(b)(3) of
the Code. •
The City shall use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate
the designation made by this paragraph.
25. Severabilitv. 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.
26. 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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t� �
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:
adopted.
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Whereupon said resolution was declared duly passed and
23
0
�
n ..
STATE OF MINNESOTA
COUNTY OF DAKOTA
CITY OF MENDOTA HEIGHTS
I, the undersigned, being the duly qualified and acting
Clerk of the City of Mendota Heights, Minnesota, DO HEREBY
CERTIFY that 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 on the date therein indicated, insofar as such
minutes relate to opening and considerinq bids for, and awarding
the sale of, $710,000 General Obligation Park Bonds of 1992 of
said City. .
WITNESS my hand this day of December, 1992.
T �' " ` �efAl-2 f'�-
Clerk
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