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HomeMy WebLinkAboutResolution - 2020-92 - GO Refunding Bonds Seiries 2020A - 10/06/2020CITY OF EDEN PRAIRIE HENNEPIN COUNTY, MINNESOTA RESOLUTION NO. 2020-92 RESOLUTION RELATING TO $7 ,417 ,000 GENERAL OBLIGATION REFUNDING BONDS, SERIES 2020A; AUTHORIZING THE ISSUANCE , AWARDING THE SALE , FIXING THE FORM AND DETAILS, PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND THE SECURITY THEREFOR AND LEVYING AD V ALO REM TAXES FOR THE PAYMENT THEREOF BE IT RESOLVED by the City Council (the "Council ") of the City of Eden Prairie , Minnesota (the "City"), as follows: SECTION 1. RECITALS. 1.01. Authorization. This Council hereby determines it to be in the best interests of the City to issue and sell $7,417 ,000 principal amount of General Obligation Refunding Bonds , Series 2020A, of the City (the "Bonds"), pursuant to Minnesota Statutes , Chapters 429 and 475 , as amended, and Section 475.67, to : (i) currently refund the December 1, 2021 , through December 1, 2025, maturities (the "Series 20 lOA Refunded Bonds") of the City 's $1 , 190 ,000 General Obligation Permanent Improvement Revolving Fund Bonds , Series 201 OA (the "Series 20 I OA Bonds "), dated as of December 1, 2010 , the proceeds of which financed various public improvement projects within the City pursuant to Minnesota Statutes, Chapters 429 and 475 ; (ii) currently refund the December 1, 2021 , through December 1, 2025 , maturities (the "Series 201 lD Refunded Bonds") of the Ci ty's $1 ,805 ,000 General Obligation Permanent Improvement Revolving Fund Crossover Refunding Bonds , Series 201 lD (the "Series 201 lD"), dated as of December 1, 2011 , the proceeds of which refinanced th e City's General Obligation Permanent Improvement Revolving Fund Bonds , Series 2005B ; (iii) currently refund the January 1, 2022 , through January 1, 2026 , maturities (the "Series. 2012A Refunded Bonds") of the City 's $5 ,110 ,000 General Obligation Crossover Refunding Bonds , Series 2012A (the "Series 2012A Bonds"), dated as of March 1, 2012 , the proceeds of which refinanced the City 's General Obligation Bonds , Series 2005C; and (iv) currently refund the January 1, 2022, through January 1, 2027 , maturities (the "Series 2012B Refunded Bonds ") of the City's $3,170 ,000 General Obli gation Capital Improvement Plan Crossover Refunding Bonds , Series 2012B (the "Series 2009A Bonds "), dated as of March 1, 2012, the proceeds of which refinanced the City's General Obligation Capital Improvement Plan Bonds , Series 2006B. The Series 201 OA Refunded Bonds , Series 2011 D Refunded Bonds , Series 2012A Refunded Bonds , and Series 2012B Refunded Bonds are collecti vel y referred to herein as the "Refunded Bonds." 4820 -5790-6 122\8 The portion of the Bonds used to refund the Series 201 OA Refunded Bonds and Series 201 lD Refunded Bonds is referred to herein as the "Special Assessment Bonds." The portion of the Bonds used to refund the Series 2012A Refunded Bonds and Series 2012B Refunded Bonds is referred to herein as the "Ad Valorem Tax Bonds." The Series 2010A Refunded Bonds and Series 201 lD Refunded Bonds will be redeemed on December 1, 2020 (the "2010A Redemption Date" and the "201 lD Redemption Date"), and the principal and interest payments on the Series 201 OA Bonds and Series 2011 D Bonds not constituting Refunded Bonds will be paid at maturity from the debt service funds for the respect ive series of bonds. The Series 2012A Refunded Bonds and Series 2012B Refunded Bonds will be redeemed on January 1, 2021 (the "2012A Redemption Date" and the "2012B Redemption Date"), and the principal and interest payments on the Series 2012A Bonds and Series 2012B Bonds not constituting Refunded Bonds will be paid at maturity from the debt service funds for the respective series of bonds. The refunding is being carried out for the purpose described in Minnesota Statutes, Section 475 .67, subdivision 3, section (b)(2)(i) and in compliance with Minnesota Statues, Chapter 475. The City anticipates substantial debt service savings to result from the refunding of the Refunded Bonds. 1.02 . Sale of Bonds . The City has retained Ehlers & Associates, Inc., an independent municipal advisor ("Ehlers"), to assist the City in connection with the sale of the Bonds. The Bonds are being sold pursuant to Minnesota Statutes, Section 475.60, Subdivision 2 , paragraph (9), without meeting the requirements for public sale under Minnesota Statutes, Section 475 .60, Subdivision 1. The Council has received a proposal from U.S. Bank National Association, in New York, New York (the "Purchaser"), to purchase the Bonds at a price of $7,417,000 plus accrued interest, if any, on all Bonds to the day of delivery and payment, on the further terms and conditions hereinafter set forth . 1.03. Award . The sale of the Bonds is hereby awarded to the Purchaser, and the Mayor and City Manager are hereby authorized and directed to execute a contract on the part of the City with the Purchaser for the sale of the Bonds in accordance with the Preliminary Term Sheet. The Mayor and City Manager are hereby authorized to enter into a Continuing Covenant Agreement with Purchaser establishing such other terms and conditions for the sale of the Bonds as are acceptable to such officers. SECTION 2. FORM OF BONDS. The Bonds shall be prepared in substantially the form attached as Exhibit A hereto. 2 4820-5790-6122\8 SECTION 3. BOND TERMS, EXECUTION AND DELIVERY. 3.01. Issuance of Bonds. All acts , conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, now existing, having happened and having been performed, it is now necessary for the Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith . 3.02 . Maturities, Interest Rates, Denominations, Payment. The Bonds shall be originally dated as of the date of issuance thereof, shall be in the denomination of $100 ,000 each, or any integral multiple of $1,000 in excess thereof, of single maturities , shall mature on December 1 in the years and amounts stated below, and shall bear interest from the date of original issue until paid or duly called for redemption at the annual rates set forth opposite such years and amounts (except as otherwise provided below in this Section 3.02), as follows: Year 2025 Amount $ 7 ,417,000 Rate 0.850% Upon the occurrence of an Event of Default, as defined in the Continuing Covenant Agreement between the Purchaser and the City relating to the Bonds , the Bonds shall bear interest at the Default Rate, as provided in the Continuing Co venant Agreement. Interest accruing at the Default Rate shall be payable to the Purchaser upon demand. The Bonds shall be issuable only in fully registered form . The interest thereon and , upon surrender of each Bond at the principal office of the Registrar (as hereinafter defined), the principal amount thereof, shall be payable by check or draft issued by the Registrar . 3.03. Dates ; Interest Payment Dates . Upon initial delivery of the Bonds pursuant to Section 3 .07 and upon any subsequent transfer or exchange pursuant to Section 3.06, the date of authentication shall be noted on each Bond so delivered, exchanged or transferred . Interest on the Bonds shall be payable each June 1 and December 1, commencing June 1, 2021 (each such date , an "Interest Payment Date "), to the person in whose name the Bonds are registered on the Bond Register (as hereinafter defined) at the Registrar's close of business on the fifteenth day of the calendar month next preceding such Interest Payment Date, whether or not such day is a business day. Interest shall be computed on the basis of a 360-day year composed of twelve 30 - day months . 3.04 . Redemption. The Bonds are not subject to optional redemption and prepayment prior to maturity . The Bonds shall be subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of this Section 3 .04 at a redemption price equal to the stated principal amount thereof plus interest accrued thereon to the redemption date , without premium. The Registrar shall select for redemption , by lot or other manner deemed fair , on December 1 in each of the following years the following stated principal amounts of such Bonds: 3 4 82 0-5790 -6 122\8 Term Bond Maturing in 2025 Sinking Fund Aggregate Payment Date Principal Amount 2021 2022 2023 2024 2025 (final maturity) $ 1,446,000 1,486,000 1,486,000 1,489,000 1,510,000 Prior to the date specified for the redemption of any Bond prior to its stated maturity date, the City will cause notice of the call for redemption to be published if and as required by law, and, at least thirty days prior to the designated redemption date, will cause notice of the call to be mailed by first class mail, to the registered owner of any Bond to be redeemed at the owner's address as it appears on the Bond Register maintained by the Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed shall, on the redemption date, become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of such Bonds shall cease to bear interest. Upon partial redemption of any Bond, the registered owner of such Bond will not be required to surrender such Bond in connection with such redemption. In such case the Registrar shall maintain in the Bond Register the outstanding principal amount of such Bond following such partial redemption. Upon repayment of the Bonds in full, the Bonds shall be delivered by the registered owners to the Registrar in connection with such repayment. 3.05 . Appointment of Initial Registrar. The City hereby appoints the Finance Manager, as the initial bond registrar, transfer agent and paying agent (the "Registrar"). The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City reserves the right to remove the Registrar upon thirty days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the Bond Register to the successor Registrar. 3 .06 . Registration . The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges of Bonds entitled to be registered , transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer , in form satisfactory to the Registrar, duly executed by the registered owner 4 4 82 0-5790-6122\8 thereof or by an attorney duly authorized by the registered owner in writing , the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a like aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. ( c) Exchange of Bonds. Whenever any Bond is surrendered by the registered owner for exchange , the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney duly authorized in writing . ( d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the City. (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is legally authorized . The Registrar shall incur no liability for its refusal, in good faith , to make transfers which it, in its judgment, deems improper or unauthorized . (f) Persons Deemed Owners . The City and the Registrar may treat the person in whose name any Bond is at any time registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not , for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner 's order shall be valid and effectual to satisfy and discharge the liability of the City upon such Bond to the extent of the sum or sums so paid. (g) Taxes, Fees and Charges. For every transfer or exchange of Bonds (except for an exchange upon a partial redemption of a Bond), the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated, Lost, Stolen or Destroyed Bonds. In case any Bond shall become mutilated or be lost , stolen or destroyed , the Registrar shall deliver a new Bond of like amount , number , maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond lost , stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith ; and , in the case of a Bond lost, stolen or destroyed , upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form , substance and amount satisfactory to it , in which both the City and the Registrar shall be named as obligees. All Bonds so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the City. If the mutilated , lost , stolen or destroyed Bond has already 5 4 820 -5790 -6 122 \8 matured or been called for redemption in accordance with its terms , it shall not be necessary to issue a new Bond prior to payment. 3 .07. Execution, Authentication and Delivery. The Bonds shall be prepared under the direction of the City Manager and shall be executed on behalf of the City by the signatures of the Mayor and City Manager, provided that the signatures may be printed, engraved or lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of whose signature shall appear on the Bonds shall cease to be such officer before the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes , the same as if such officer had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unless and until a certificate of authentication on the Bond has been duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authentication on different Bonds need not be signed by the same representativ e . The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this Resolution . When the Bonds have been prepared, executed and authenticated, the City Manager shall deliver them to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore executed , and the Purchaser shall not be obligated to see to the application of the purchase price . SECTION 4 . REFUNDING; SECURITY PROVISIONS. 4.01. Refunding . (a) Series 2010A Refunding . Proceeds of the Bonds in the amount of $455 ,000.00 shall be deposited in the sinking fund established for the Series 201 OA Bonds to be applied to the redemption of the Series 201 OA Refunded Bonds on the 201 OA Redemption Date , and proce eds of the Bonds in the amount of $4 ,000.00 shall be used to pay costs of issuance of the portion of the Bonds that refund the Series 201 OA Refunded Bonds ; (b) Series 201 lD Refunding. Proceeds of the Bonds in the amount of $870,000.00 shall be deposited in the sinking fund established for the Series 201 lD Bonds to be applied to the re demption of the Series 2011 D Refunded Bonds on the 2011 D Redemption Date , and proceeds of the Bonds in the amount of $6,755.70 shall be used to pay costs of issuance of the portion of the Bonds that refund the Series 201 lD Refunded Bonds . (c) Series 2012A Refunding . Proceeds of the Bonds in the amount of $4 ,375 ,000 .00 shall be deposited in the sinking fund established for the Series 2012A Bonds to be applied to the redemption of the Series 2012A Refunded Bonds on the 2012A Redemption Date , and proceeds of the Bonds in the amount of $33,000.00 shall be used to pay costs of issuance of the portion of the Bonds that refund the Series 2012A Refunded Bonds. (d) Series 2012B Refunding. Proceeds of the Bonds in the amount of $1 ,660 ,000 .00 shall be deposited in the sinking fund established for the Series 2012B Bonds to be applied to the redemption of the Series 2012B Refunded Bonds on the 2012B Redemption Date , and proceeds of the Bonds in the amount of $12 ,744.30 shall be used to pay costs of issuance of the portion of the Bonds that refund the Series 2012B Refunded Bonds. 6 4 820 -5790 -6 122\8 4.02. General Obligation Refunding Bonds, Series 2020A Bond Fund. The Bonds shall be payable from a separate General Obligation Refunding Bonds , Series 2020A Bond Fund (the "Bond Fund") of the City, which shall be created and maintained on the books of the City as a separate debt redemption fund until the Bonds, and all interest thereon, are fully paid. Within the Debt Service Account (as defined below) of the Bond Fund shall be created the following subaccounts: (a) Special Assessment Bonds Subaccount. Into the Special Assessment Bonds Subaccount shall be deposited: L any funds received from the Purchaser upon delivery of the Bonds in excess of the amounts specified in Sections 4.0l(a) and (b) above ; IL $244 .30, representing a rounding amount for the Special Assessment Bonds ; m. all excess amounts on deposit in the respective debt service funds maintained for the payment of the Series 2 010A Refunded Bonds and Series 201 lD Refunded Bonds upon the retirement of such obligations on their respective Redemption Date ; IV . any special assessments collected pursuant to Section 4.04 hereof; v. any taxes collected pursuant to Section 4 .05 hereof and allocable to the Special Assessment Bonds; and vi. any other funds appropriated by this Council for the payment of the Sp ecial Assessment Bonds. (b) Ad Valorem Tax Bonds Subaccount. Into the Ad Valorem Tax Bonds Subaccount shall be deposited: i. any funds received from the Purchaser upon delivery of the Bonds in excess of the amounts specified in Sections 4.0l(c) and (d) above ; IL $255.70 , repre senting a rounding amount for the Ad Valorem Tax Bonds; 111. all excess amounts on deposit in the respective debt service funds maintained for the payment of the Series 2012A Refunded Bonds and Series 2012B Refunded Bonds upon the retirement of such obligations on their respectiv e Redemption Date ; IV. any taxes collected pursuant to Section 4.05 hereof and allocable to the Ad Valorem Tax Bonds ; and v. any other funds appropriated by this Council for the payment of the Ad Valorem Tax Bonds. 7 4820-5790 -6 122 \8 There are hereby established two accounts in the Bond Fund, designated as the "Debt Service Account" and the "Surplus Account." All money appropriated or to be deposited in the Bond Fund shall be deposited as received into the Debt Service Account. On each December 1, the Finance Manager shall determine the amount on hand in the Debt Service Account. If such amount is in excess of one-twelfth of the debt service payable from the Bond Fund in the immediately preceding 12 months, the Finance Manager shall promptly transfer the amount in excess to the Surplus Account. The City appropriates to the Surplus Account any amounts to be transferred thereto from the Debt Service Account as herein provided and all income derived from the investment of amounts on hand in the Surplus Account. If at any time the amount on hand in the Debt Service Account is insufficient to meet the requirements of the Bond Fund, the Finance Manager shall transfer to the Debt Service Account amounts on hand in the Surplus Account to the extent necessary to cure such deficiency. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all Bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Surplus Account when the balance therein is sufficient, and the City covenants and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional , statutory or charter limitation. 4.03. Levy of Special Assessments . The City hereby covenants and agrees that , for the payment of the costs of the projects refinanced by the Special Assessment Bonds, the City has levied special assessments against all assessable lots, tracts and parcels of land benefited thereby and located within the area proposed to be assessed therefor , based upon the benefits received by each such lot , tract or parcel, in an aggregate principal amount not less than twenty percent (20%) of the cost of the improvements. In the event that any such assessment shall 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 proceeding taken or to be taken by the City or this Council or any of the City's officers or employees, either in the making of such assessment or in the performance of any condition precedent thereto, the City and this Council hereby covenant and agree that they will forthwith do all such further acts and take all such further proceedings as may be required by law to make such assessments a valid and binding lien upon such property. 4.04. Pledge of Taxing Power. For the prompt and full payment of the principal of and interest on the Bonds as such payments respectively become due, the full faith, credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. In order to produce aggregate amounts which, together with the collections of other amounts as set forth in Section 4.02, will produce amounts not less than 5% in excess of the amounts needed to meet when due the principal and interest payments on the Bonds, ad valorem taxes are hereby levied on all taxable property in the City, the taxes to be levied and collected in the following years and amounts: Levy Years Collection Years Amount See attached schedules 8 482 0-5 790 -6 122\8 The taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the tax levies from other legally available funds, in accordance with the provisions of Minnesota Statutes, Section 475.61. SECTION 5. DEFEASANCE. When all of the Bonds have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by depositing with the paying agent 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 paying agent a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. 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 bank or trust company qualified by law as an escrow agent for this purpose, cash or securities which are non- callable general obligations of the United States or securities of United States agencies which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due thereon to maturity. SECTION 6 . REGISTRATION, CERTIFICATION OF PROCEEDINGS, INVESTMENT OF MONEYS AND ARBITRAGE . 6.01. Registration. The City Clerk is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of Hennepin County, together with such other information as he shall require , and to obtain from the County Auditor a certificate that the Bonds have been entered on his bond register and that the tax required for the payment thereof has been levied and filed as required by law. 6.02. Certification of Proceedings. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey & Whitney LLP , Bond Counsel, 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 may be required to show the facts relating to the legality and marketability of the Bonds as the same appear from the books and records in 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 correctness of all statements contained therein. 6.03. Covenant. The City covenants and agrees with the holders from time to time of the Bonds that it will not take or permit to be taken by any of its officers , employees or agents any action which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code of 1986 , as amended (the "Code"), and Regulations promulgated thereunder (the "Regulations"), as such are enacted or promulgated and in effect on the date of issue of the Bonds, and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under such Code and Regulations. The improvements refinanced by the Bonds will be owned and maintained by the City and available for use by members of the general public on a substantially equal basis. The City shall not enter 9 4 820 -5 790 -6 12 2\8 into any lease, use or other agreement with any non-governmental person relating to the use of such improvements or security for the payment of the Bonds which might cause the Bonds to be considered "private activity bonds " or "private loan bonds" within the meaning of Section 141 of the Code . The Bonds are being issued as "qualified 501(c)(3) bonds" within the meaning of Section 145 of the Code due to anticipated use of the facilities refinanced by the Bonds by other governmental entities; certain youth hockey associations including the Eden Prairie Hockey Association and other organizations described in Section 501(c)(3) of the Code . 6.04. Arbitrage Certification . The Mayor and City Clerk , being the officers of the City charged with the responsibility for issuing the Bonds pursuant to this resolution, are authorized and directed to execute and deliver to the Purchaser a certificate in accordance with the provisions of Section 148 of the Code, and Section l.148 -2(b )(2) of the Regulations , statin g the facts and estimates in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of said Code and Regulations. 6 .05. Arbitrage Rebate. The City acknowledges that the Bonds may be subject to the rebate requirements of Section 148(£) of the Code . The City covenants and agrees to retain such records, make such determinations , file such reports and documents and pay such amounts at such times as are required under said Section 148(£) and applicable Regulations to preserve the exclusion of interest on the Bonds from gross income for federal income tax purposes , unles s the Bonds qualify for an exception from the rebate requirement pursuant to one of the spending exceptions set forth in Section 1.148-7 of the Regulations and no "gross proceeds " of the Bonds (other than amounts constituting a "bona fide debt service fund ") arise during or after the expenditure of the original proceeds thereof. 6.06 . Qualified Tax Exempt Obligations. The City Council hereb y designates the Bonds as "qualified tax-exempt obligations " for purpos es of Section 265(b)(3) of the Code relating to the disallowance of interest expense for financial institutions , and hereby finds that the reasonably anticipated amount of tax-exempt governmental obligations (within the meaning of Section 265(b)(3) of the Code) which will be issued by the City and all subordinate entities during calendar year 2020 doe s not exceed $10 ,000 ,000. 6.07. Continuing Disclosure . Upon request , and pursuant to any agreement with the Purchaser, the City will provide to Purchaser certain financial information, which shall be limited to the following: the information in the City's audited financial statements , which shall be for the most recent fiscal year of the City (the "Disclosure Information"). The City shall (i) provide such Disclosure Information at the same time as or later than any equivalent disclosure information, relating to any outstanding obligations of the City , that the City is required to provide to the Municipal Securities Rulemaking Board (the "MSRB ") through its Electronic Municipal Market Access System ("EMMA"), or (ii) pro vide the Disclosure Information to the MSRB through EMMA on the same date as the City provides such Disclosure Information to Purchaser. SE CTION 7. AUTHORIZATION OF PAYMENT OF CERTAIN COSTS OF ISSUANCE OF THE BONDS . The City authorizes the Purchaser to forward the amount of Bond proceeds allocable to the payment of issuance expenses to Old National Bank on the 10 4820-5790 -6 122 \8 closing date for further distribution as directed by the City 's municipal advisor, Ehlers & Associates, Inc. SECTION 8. REDEMPTION OF REFUNDED BONDS . The City Clerk is hereby directed to advise Wells Fargo Bank, National Association, as paying agent for the Refunded Bonds , to call the Refunded Bonds for redemption and prepayment on the respective Redemption Dates, and to give thirty days' mailed Notice of Redemption, substantially in the form attached hereto , all in accordance with the provisions of the resolutions authorizing the issuance of the Refunded Bonds. ADOPTED by the Eden Prairie City Council on this 6th day of October, 2020. 17',/ ~ -e--z--- Ronald A. Case, Mayor ATTEST: 11 4820 -5790 -6 122\8 R-1 EXHIBIT A UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF EDEN PRAIRIE GENERAL OBLIGATION REFUNDING BOND, SERIES 2020A Interest Rate Maturity Date Date of Original Issue 0.850% December 1, 2025 October 28, 2020 REGISTERED OWNER: U.S . BANK NATIONAL ASSOCIATION $7,417,000 PRINCIPAL AMOUNT: SEVEN MILLION FOUR HUNDRED SEVENTEEN THOUSAND DOLLARS THE CITY OF EDEN PRAIRIE, Hennepin County, Minnesota (the "City"), acknowledges itself to be indebted and , for value received , hereby promises to pay to the registered owner above named , the principal amount indicated above , on the maturity date specified above , with interest thereon from the date of original hereof specified above at the annual rate specified above computed on the basis of a 360- day year consisting of twelve 30-day months , payable on June 1 and December 1 in each y ear, commencing June 1, 2021 , to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. Upon the occurrence of an Event of Default , as defined in the Continuing Covenant Agreement between the City and U .S. Bank National related to the Bonds , the Bonds shall bear interest at the Default Rate , as provided in such Continuing Covenant Agreement. The interest he reon and the principal hereof are payable in lawful money of the United States of America by check or draft of the Finance Manager of the City, as Bond Registrar , Transfer Agent and Paying Agent (the "Bond Registrar"), or its successor designated under the Resolution described herein. This Bond is one of an issue in the aggregate principal amount of $7 ,417,000 (the "Bonds "), all of like date and tenor except as to serial number, interest rate, redemption privilege and maturity date , issued pursuant to a resolution adopted by the City Council on October 6, 2020 (the "Resolution ") to currently refund certain general obligation bonds of the City, and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475 , as amended, and Section 4 75.67. For the full and prompt payment of the principal of and interest on the Bonds as the same become due , the full faith , credit and taxing power of the City have been and are hereby irrevocably pledged. The Bonds are issuable only in fully registered form , in the denomination of $100 ,000 or any integral multiple of $1 ,000 m excess thereof, of single maturities . The Bond s are not s ubject to optional redemption and prepayment prior to maturity. A-1 48 20-5 790-6122\8 The Bonds shall be subject to mandatory redemption prior to maturity pursuant to the sinking fund requirements of the Resolution at a redemption price equal to the stated principal amount thereof plus interest accrued thereon to the redemption date , without premium . The Registrar shall select for redemption, by lot or other manner deemed fair , on December 1 in each of the following years the following stated principal amounts of such Bonds: Tenn Bond Maturing in 2025 Sinking Fund Aggregate Payment Date Principal Amount 2021 2022 2023 2024 2025 (final maturity) $ 1,446 ,000 1,486,000 1,4 86,000 1,489,000 1,510,000 Prior to the date specified for the redemption of any Bond prior to its stated maturity date , the City will cause notice of the call for redemption to be published if and as required by law , and , at least thirty days prior to the designated redemption date , will cause notice of the call to be mailed by first class mail, to the registered owner of any Bond to be redeemed at the owner's address as it appears on the Bond Register maintained by the Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or fai lure. Official notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be redeemed sha ll , on the redemption date , become due and payable at the redemption price therein specified, and from and after such date (unless the City shall default in the payment of the redemption price) such Bonds or portions of such Bonds shall cease to bear interest. Upon partial redemption of any Bond, the registered owner of such Bond will not be required to surrender such Bond in connection with such redemption . In such case the Registrar shall maintain in the Bond Register the outstanding principal amount of such Bond following such partial redemption. Upon repayment of the Bonds in full , the Bonds shall be delivered by the registered owners to the Re g istrar in connection with such repayment. The Bonds have been designated as "qualified tax-exempt obligations" pursuant to Section 265(b) of the Internal Revenue Code of 1986 , as amended. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his attorney; and may also be surrendered in exchange for Bonds of other authorized denominations . Upon such transfer or exchange, the City will cause a new Bond or Bonds to be issued in the name of th e transferee or registered owner, of the same aggregate principal amount, bearing interest at the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental charge required to be paid with respect to such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of recei vi ng payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done , to exist, A -2 4820-5790-6122 \8 to happen and to be performed precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been done , do exist, have happened and have been performed as so required; that prior to the issuance hereof the City has by the Resolution levied or agreed to levy special assessments on property specially benefitted by the improvements refinanced by the Bonds and covenanted and agreed to collect and apply to payment of the Bonds ad valorem taxes levied on all taxable property in the City, which taxes and assessments are estimated to be collectible in years and amounts sufficient to produce sums not less than 5% in excess of the principal of and interest on the Bonds when due , and has appropriated such assessments and taxes to its General Obligation Refunding Bonds, Series 2020A Bond Fund for the payment of such principal and interest; that if necessary for the payment of such principal and interest, additional ad valorem taxes are required to be levied upon all taxable property in the City, without limitation as to rate or amount; that all proceedings relative to the projects financed by this Bond have been or will be taken according to law and that the issuance of this Bond, together with all other indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the City to exceed any constitutional or statutory limitation of indebtedness. This Bond shall not be valid or become obligatory for any purpo se or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by manual signature of the authorized representative of the Bond Registrar. A-3 4820-5790-6 122 \8 IN WITNESS WHEREOF, the City of Eden Prairie, Hennepin County, State of Minnesota, by its City Council, has caused this Bond to be executed by the signatures of the Mayor and the City Clerk and has caused this Bond to be dated as of the date set forth below. CITY OF EDEN PRAIRIE, MINNESOTA (Facsimile Signature -Mayor) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within . Date of Authentication: 4820-5790-6 122 \8 FINANCE MANAGER, as Bond Registrar Finance Manager A-4 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 the applicable laws or regulations: TEN COM --as tenants in common UTMA ................. as Custodian for ................ .. (Cust) (Minor) TEN ENT --as tenants by the entireties under Uniform Transfers to Minors Act .......................... . (State) JT TEN --as joint tenants with right of survivorship and not as tenants in common Additional abbreviations may also be used. ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond , with full power of substitution in the premi ses. 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 enlargement or any change whatsoever. Signature Guaranteed: ___________ _ Signature(s) must be guaranteed by an "eligible guarantor in stitution" meetin g the require ments of the Registrar, which requirements include membership or participation in ST AMP or such other "signature guaranty program " as may be determined by the Registrar in addition to or in substitution for STAMP, a ll in accordance with the Securities Exchange Act of 1934 , as amended . Please insert social security or other id entifying number of assignee: _________ _ A-5 4820-5790 -6 122 \8 TAX I.EVY CA L CULAno r~ Exhibit B TAX LEVIES tssue IDB _.c..,ttv...,.o ... f ..,E-.den--.P..,r.,.a .. · ...,ie ........ N.._ _______________ Dated Date~ $7,417,000 Ge.ne ral o igation Refun 1rog Bonds, series 2020A Cil I Da te: 339111 1 0/28/2020 on-<111 able $6,081,000 current RE'fund ing • Seiies2012A Refu n ng Portio n I ()u re t IRenmding ·:Ser ies 20128 C1P Refu n di ng Po n Tax TilC Bo nd Levy Coll&t Pay Y~a r Year Yea r TOtal P&I Fu nd5 AVllila le !1'1 e t Le~ 0 0 I 2021 I 2 21 1,246,426.62 (2-55 .701 1 ,30s,4 79.4 2021 I 2022 I 2022 1,259,573.SO 1,322,552.18 0 2 I 023 J 2CIH 1,249,220.SO 1 ,311,6-1~1 .'53 1 ,31 6S l .53 2023 I 2024 J 2024 1,236,867.SO 1 ,2.9 8, 710 .88 1 ,29 8,710.BS 0 ol I 025 I 2 25 1 ,249,531-5 0 1,u ,OOB .00 1 ,3 1 ~00S Totals ~2"1,619 .'62 (2.55 .70 1 16,553,432.12 6,,553,432.12 (1] l'he f olio ·ng fu nds are avail.ab le ,t o pay ii portion .o f the i nt erest payme nt due ·6/1/21: De,pos · to 'De bt Se ·ce Fund 25'5 .70 ot es: Ori1f I t ax levies for c.o l ·on v~ars 2021 t hr.o ug h 2025 on the series 2012A Bo nd5 wi II be cancell ed. Original t ax levies. f col ·on .rears 2021 t hro ugh 2025 o n the ser ies 2 0128 Bo nd s wil I be ca ncelled. 4820-5790 -6122\8 EXHIBIT C NOTICE OF REDEMPTION $1 , 190 ,000 General Obligation Permanent Improvement Revolving Fund Bonds , Series 20 I OA Dated as of December I , 20 I 0 City of Eden Prairie, Minnesota NOTICE IS HEREBY GIVEN THAT all outstanding Bonds of the above referenced issue, maturing in the following years on the following dates and having the interest rates listed below : Maturity 12/1 /2021 * 12/1 /2023* 12/1 /2025* * Indicates full call. Amount $ 160 ,000 180 ,000 195 ,000 Rate 3 .500 % 3 .750 4.000 CUSIP Number® 279518AV6 279518 AX2 279518 AZ7 are called for redemption and prepayment on December I , 2020. The Bonds will be redeemed at a price of 100 % of their principal amount plus accrued interest to the date of redemption . Holders of such Bonds should present them for payment on or before said date , on which date they will cease to bear interest. A Form W-9, Payer's Request for Taxpayer Identification Number, must be completed and returned with the called note or 31 % of the note redemption proceeds will be withheld. P ayment of bond s to be redeemed will be made on and after December I , 2020, by submitting said note along with the completed form W-9 to Wells Farg o Bank, National Association following address: By Mail or Courier Service: Wells Fargo Bank, N .A . Corporate Trust Operations N9300-070 600 South 4th Street, 7th Floor Minneapolis , MN 55415-1526 By Registered or Certified Mail : Wells Fargo Bank, N .A. Corporate Trust Operation s P . 0 . Box 1517 Minneapolis , MN 55480-1517 In Person, By Hand: Corporate Trust Operation s MAC N9300-060 600 South 4th Street, 6th Floor Minneapolis , MN 55415-1526 If you request payment of principal an d/or intere st via wire tran sfer , plea se b e advi sed there is a wire trans fe r fee which will be deducted from y our payment. Additional information may be obtained from the unders igned or from Ehl ers & Ass ociates , Inc ., 3060 Centre Point Drive, Ros eville , Minnesota 5511 3-1105 (651-69 7-8500), financi a l advisor to th e C ity. Dated : October 6, 202 0 . ® BY ORDER OF THE CITY COUNCIL CITY 0: EDE N ~OTA By sf ~ .<::::, itY Manager - Reg istered Trad emark 2015 , Am eri can Bankers Assoc iation . T he R egistrar sha ll not be res pon sibl e for th e selecti on or use of th e CU SIP numbers, nor is any re presentation made as to th e ir co rr ec tness ind icated in thi s No tic e of Redempti on or on any Bond . They are in clud ed so le ly for co nven ience of th e H o lders . 4 820 -5790 -6 122 \8 EXHIBITD NOTICE OF REDEMPTION $1,805,000 General Obligation Permanent Improvement Revolving Fund Crossover Refunding Bonds, Series 201 ID, Dated as of December 1, 2011 City of Eden Prairie, Minnesota NOTICE IS HEREBY GIVEN THAT all outstanding Bonds of the above referenced iss ue, maturing in the following years on the following dates and having the interest rates listed below : Maturity 12/1 /2021 * 12/1 /2022* 12 /1/2023* 12 /1/2024* 12 /1/2025* * Indicates full call. Amount $ 165,000 170 ,000 175 ,000 180,000 180,000 Rate 2.100% 2.200 2.350 2.500 2.650 CUSIP Number® 279518 CL6 279518 CM4 2795 18 CN2 279518 CP7 279518 CQ5 are called for redemption and prepayment on December 1, 2020. The Bonds will be redeemed at a price of 100 % of their principal amount plus accrued interest to the date of redemption. Holders of such Bonds should present them for payment on ot before said date , on which date they will cease to bear interest. A Form W-9, Payer's Request for Taxpayer Identification Number, must be completed and returned with the called note or 31 % of the note redemption proceeds will be withheld. Payment of bonds to be redeemed will be made on and after December l , 2020 , by submitting said note along with the completed form W-9 to Wells Fargo Bank, National Association following address: By Mail or Courier Service: Wells Fargo Bank, N .A. Corporate Trust Operations N9300-070 600 South 4th Street, 7th Floor Minneapolis, MN 55415-1526 By Registered or Certified Mail : Wells Fargo Bank, N.A. Corporate Trust Operations P . 0 . Box 1517 Minneapolis , MN 55480-1517 In Person, By Hand: Corporate Trust Operations MAC N9300-060 600 South 4th Street, 6th Floor Minneapolis, MN 55415-1526 If you request payment of principal and/or interest via wire transfer, please be advised there is a wire transfer fee which will be deducted from your payment. Additional information may be obtained from the undersigned or from Eh lers & Associates , Inc ., 3060 Centre Point Drive, Roseville, Minnesota 55113-1105 (651-697-8500), financial advisor to the City. Dated: October 6, 2020. ® BY ORDER OF THE CITY COUNCIL CITY OF DEN P:m!NNESOTA Bys/ ,.........__~ City Manager Registered Trademark 2015 , American Bankers As sociation. The Registrar shall not be res ponsibl e for the se lection or use of th e CUSIP numb ers, nor is any representation made as to their correctness indicated in this Notice of Redemption or on any Bond. They are included so lel y for convenience of the Holders. 4820-5 790 -6122\8 EXHIBIT E NOTICE OF REDEMPTION $5,110,000 General Obligation Crossover Refunding Bonds, Series 2012A Dated as of March 1, 2012 City of Eden Prairie, Minnesota NOTICE IS HEREBY GIVEN THAT all outstanding Bonds of the above referenced issue , maturing m the following years on the following dates and having the interest rates listed below : Maturity Amount 1/1/2 022 * $ 550 ,000 11112 023 * 835 ,000 1/1 /2024* 855,000 1/1 /2025* 875 ,000 1/1 /2026* 895 ,000 * Indicates full call . Rate 2.000% 2.125 2.250 2 .375 2.500 CUSIP Number® 279518 CYB 279518 CZ5 279518 DA9 279518 DB7 279518 DC5 are called for redemption and prepayment on January I , 2021. The Bonds will be re deeme d at a price of 100 % of their principal amount plu s accrued intere st to the date of redemption. Holders of s uch Bonds should present them for payment on or befo re said date , on which date the y will cease to bear interest. A Form W-9, Pay er's Request for Taxpayer Identification Number, must be completed and returned with the called note or 3 I % of the note redemption proceeds will b e withheld. Payment of bond s to b e redeemed will be made on and after January 1, 2021, by submitting said note along with the completed form W-9 to Wells Fargo Bank, National Association following address: By Mail or Courier Service: W e ll s Fargo Bank, N.A . Corporate Trust Op erations N9300-070 600 South 4th Street, 7th Floor Minneapolis, MN 55415-1526 By Reg istered or Ce rtified Mail : Wells Fargo Bank, N.A. Corporate Trust Operations P . 0 . Box 1517 Minneapoli s, MN 55480-1517 In Person , By Hand : C orporate Trust Operations MAC N9300-060 600 South 4th Street, 6th Floor Minneapolis, MN 55415-1526 If you re que st paym ent of princ ip a l and/or interest via wire transfer, please be advised th ere is a wire transfer fee which will be deducte d from your p ayment. Additional information may b e obtained from the undersigned or from Ehlers & Associates , Inc ., 3060 Centre Point Drive , Ro sevi lle , Minnesota 55113-1105 (651-697-8500), financial advisor to th e City. D ate d : October 6, 2020. ® BY ORDER OF THE CITY COUNCIL CITY OF ~EN P~SO ~ By s/ r \.-- City Manager Regi stered Trademark 2015 , Am e rican Bankers As soci ation. The Registrar shall not be res ponsible for the selection or use of the CUSIP numbers, nor is any representation made as to their correctness indi cated in thi s Notice of Redemption or on any Bond . Th ey are included so lely for convenience of the Holders. 4820-5790-6122\8 EXHIBIT F NOTICE OF REDEMPTION $3, 170 ,000 General Obligation Capital Improvement Plan Crossover Refunding Bonds, Series 2012B Dated as of March 1, 2012 City of Eden Prairie, Minnesota NOTICE IS HEREBY GIVEN THAT all outstanding Bonds of the above referenced issue , maturing in the following years on the following dates and having the interest rates listed below: Maturity 1/112022* 1/1/2023* 1/1/2 024 * 1/1 /2025* 111 /2026* 1/1 /2027* * Indicates full call. Amount $ 265,000 280 ,000 275,000 270,000 290,000 280,000 Rate 2.000% 2.000 2.125 2.250 2.375 2.500 CUSIP Number® 279518 DK7 279518 DL5 279518 DM3 279518 DNl 279518 DP6 279518 DQ4 are called for redemption and prepayment on January 1, 2021. The Bonds will be redeemed at a price of I 00% of their principal amount plus accrued interest to the date of redemption . Holders of such Bonds should present them for payment on or before said date , on which date they will cease to bear interest. A Form W-9, Payer's Request for Taxpayer Identification Number, must be completed and returned with the called note or 31 % of the note redemption proceeds will be withheld. Payment of bonds to be redeemed will be made on and after January I , 2021, by s ubmitting said note along with the completed form W-9 to Wells Fargo Bank, National Association following address: By Mail or Courier Service: Wells Fargo Bank, N .A . Corporate Trust Operations N9300-070 600 South 4th Street, 7th Floor Minneapolis, MN 55415-1526 By Regis tered or Certified Mail: Wells Fargo Bank, N.A. Corporate Trust Operations P . 0 . Box 1517 Minneapolis, MN 55480-1517 In Person, By Hand: Corporate Trust Operations MAC N9300-060 600 South 4th Street, 6th Floor Minneapolis , MN 55415-1526 If you request paym ent of principal and/or intere st via wire transfer , please be advised there is a wire transfer fee which will be deducted from your payme nt. Additional information may be obtained from the undersigned or from Ehlers & Associates, Inc ., 3060 Centre Point Drive, Roseville , Minnesota 55113-1105 (651-697-8500), financi a l advisor to the City. Dated : October 6, 2020. ® BY ORDER OF THE CITY COUNCIL CITY OF ~)\EN P:s;r=OT A Bys/ t\_ ~ City Manager Registered Trademark 2015 , Am eri can Bankers As sociation. The Regi strar shall not be re sponsible for the se lection or use of the CUSIP numbers, nor is any representation made as to their correctness indicated in this Notice of Redemption or on any Bond. They are included solely for convenience of the Holders. 4820-5790-6122\8 CERTIFICATE OF HENNEPIN COUNTY AUDITOR AS TO REGISTRATION AND TAX LEVY I, the undersigned , being the duly qualified and acting County Auditor of Hennepin County, Minnesota, hereby certify that there has been filed in my office a certified copy of a resolution adopted October 6, 2020 , by the City Council of the City of Eden Prairie , Minnesota, setting forth the form and details of an issue of $7 ,417 ,000 General Obligation Refunding Bonds, Series 2020A , dated as of October 28, 2020 , and levying taxes for the payment thereof. I further certify that the bond issue has been entered on my bond register and the tax required by law for payment of the Bonds has been levied and filed , as required by Minnesota Statutes , Sections 475.61to475 .63 . WITN E SS my hand and official seal this ___ day of October, 2020. Hennepin County Auditor (SEAL) 4820 -5790 -6 122 \8