HomeMy WebLinkAboutResolution - 82-42 - Awarding Sale and Authorizing Issuance - $1,100,000 General Obligation Improvement Bonds of 1982 - 03/01/1982 The City Council then proceeded to consider such bid .
After the bid had been considered and discussed , Member Dean
Edstrom introduced the following resolution and moved its
adoption :
RESOLUTION NO. 82--42
RESOLUTION AWARDING THE SALE OF; FIXING THE FORM
AND DETAILS OF; PROVIDING FOR THE EXECUTION AND
DELIVERY OF AND THE SECURITY FOR AND LEVYING TAXES
FOR THE PAYMENT OF THE $1 , 100 , 000 GENERAL OBLIGA-
TION IMPROVEMENT BONDS OF 1982 .
BE IT RESOLVED by the City Council of the City of Eden
Prairie , Minnesota, as follows:
Section 1 . Award and Sale
1. 01. Bids. This City Council, under the authority of
Minnesota Statutes, Chapters 429 and 475 , and pursuant to a
resolution adopted on January 19 , 1982 , entitled "Resolution
Relating to $1 , 100, 000 General Obligation T Provement Bonds
of 1982; Authorizing the Issuance Thereof and Calling for .
the Public Sale Thereof" ( the "Resolution" ) , authorizing- the
issuance of and ordering that a public sale of $1 ,100 , 000
aggregate principal amount of the City ' s General Obligation
Improveme::t Eon�3c of 1952 (the "Bonds" ) held on thic
date. Notice of the public sale of the Bonds was duly given
as required by Minnesota Statutes , Section 475 . 60 . In ac-
cordance with the Official Notice of Sale for the Bonds one
(1) sealed bid was received for the Bonds by the Finance
Director-Clerk prior to 4 : 30 o ' clock p.m. , C.S .T. , on this
date. Those bids have been opened and publicly read aloud
and considered by this City Council, and the terms of each
have now been determined .
1 . 02. Award . The bid of BancNor thwe s t of Minneapolis ,
Minnesota ( the "Purchaser " ) , for the purchase of the Bonds
on the terms set forth in the Official Notice of Sale, at a
price of $1 , 080 , 000 plus accrued interest from the date of
the Bonds to the date of delivery thereof , the Bonds to bear
interest at the rates set forth in Section 4 hereof , results
in a net interest cost (determined by the addition of any
discount to and the deduction of any premium from the total
interest on all Bonds from their date to their stated matur-
ity) of $998 , 250 , which is the lowest net interest cost of
all bids received pursuant to the Notice of Bond Sale and
the Official Notice of Sale for the Bonds and is therefore
declared to be the best bid received and is hereby
accepted . The Mayor and the Finance Director-Clerk are
hereby authorized and directed to execute a contract for the
sale of the Bonds to the Purchaser in accordance with the
- 2 --
terms of paid bid , the Official Notice of Sale and this
resolution .
1 . 03 Interest Rates . Pursuant to the bid accepted by
this City Council by this resolution , Bonds maturing in the
years set forth below shall bear interest at the respective
rates per annum set forth opposite such years , as follows :
Year Rate Year Rate
1984 11. 00% 1990 11 . 00%
1985 11. 00 1991 11 . 00
1986 11. 00 1992 11 . 00
1987 11. 00 1993 11 . 25
1988 1.1. 00 1994 11 . 50
1989 11. 00 1995 11 . 75
1 . 04 . Good Faith Denosits. The Finance Director-Clerk
shall retain the good faith check of the successful bidder ,
pursuant to the Official Notice of Sale, and shall return
the good faith checks of the unsuccessful bidders forth-
with .
Section 2. Recitals
2. 01 . Authorization. This City Council has heretofore
ordered various local improvements designated as Project
Nos . 360 , 376 and 383 (the " Improvements" ) to be constructed
in the City under and pursuant to Minnesota' Statutes , Chap-
ter 429 . The present estimated total cost of the Improve-
ments to be financed from the proceeds of the issuance of
obligations of the City, together with additional obliga-
tions issued pursuant to Minnesota Statutes , Section 475. 56 ,
is $1 , 068 , 000 .
2. 02. Sale . This City Council has determined to issue
and sell the Bonds to defray in part the expense incurred
and estimated to be incurred by the City in making the im-
provements, including every item of cost of the kinds autho-
rized in Minnesota Statutes , Section 475 . 65 , and $-0- of
said issue representing interest as provided in Minnesota
Statutes , Section 475 . 56 . Pursuant to this resolution, a
public sale of the Bonds was held on this day, and this City
Council, by this resolution, has accepted the bid of
BancNorthwest, in Minneapolis , Minnesota, to purchase the
Bonds on the terms and conditions set forth in the Official
Notice of Sale , All acts, conditions and things which are
required by the Constitution and the laws of the State of
Minnesota to be done , to exist , to happen and to be per-
formed prior to the issuance of the Bonds having been done ,
existing and having happened, it is now necessary for this
City Council to establish the form and terms of the Bonds ,
to provide for the security thereof and to issue the Bonds
forthwith.
3 -
2. 03. Maturities . This City Council finds and deter-
mines that the maturities of the Bonds , as set forth in
Section 4 . 01 hereof , are warranted by the anticipated col-
lection of the assessments and ad valorem taxes to be levied
for the costs of the Improvements.
Section 3 . Form of Bonds and Coupons
3. 01 . Form of Bonds. The Bonds shall be prepared in
substantially the following form:
• i
- 4 -
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF EDEN PRAIRIE
GENERAL OBLIGATION IMPROVEMENT
BOND OF 1982
No. $5, 000
KNOW ALL PERSONS BY THESE PRESENTS that the City of Eden
Prairie , Hennepin County, Minnesota (the "City" ) , acknowl-
edges itself to be indebted and , for value received, hereby
promises to pay to bearer , upon presentation and surrender
hereof , the principal sum of :
FIVE THOUSAND DOLLARS
on March 1 , 19 or , if this Bond is redeemable as provided
below , then on a date prior thereto on which it shall have
been duly called for redemption, and to pay interest thereon
from the date hereof until said principal sum is paid or
until this ;,ond , if redeemable , has been duly called for
redemption , at the rate of percent ( %) per
annum. Interest hereon is payable semiannually on March 1
and September 1 in each year , commencing September 1, 1982 ,
in accordance with and upon presentation and surrender of
the interest coupons hereto appurtenant . Both principal and
interest are payable at the main office of Northwestern
National Bank of Minneapolis , in Minneapolis, Minnesota , or
its successor as paying agent , in any coin or currency of
the United States of America which on the respective dates
of payment is legal tender for the payment of public and
private debts . For the prompt and full payment of such
principal and interest as the same become due , the full
faith , credit and taxing powers of the City are hereby
irrevocably pledged .
This Bond is one of an issue in the aggregate principal
amount of $1 , 100 , 000 (the "Bonds" ) , all of like date and
tenor , except as to serial number , interest rate , redemption
privilege and maturity date, issued to defray in part the
cost of construction of local improvements designated as
Project Nos . 360 , 376 and 383 in the City ( the " Improve-
ments" ) and is' issued pursuant to and in full conformity
with the provisions of the Constitution and the laws of the
State of Minnesota thereunto enabling , including Minnesota
Statutes , Chapters 429 and 475 . This Bond is payable pri-
marily from the 1982 General Obligation Improvement Bond
Fund (the "Fund" ) of the City, but the City Council is re-
- 5 -
quired by law to pay the maturing principal hereof and in-
terest hereon out of any funds in the treasury if moneys on
hand in the Fund are insufficient therefor .
The Bonds of this issue maturing in the year 1993 and
thereafter are subject to redemption prior to maturity , in
whole , or in part in inverse order of serial numbers , on
March 1 , 1992 , and on any interest payment date thereafter ,
at a price equal to par plus accrued interest to the date
fixed for redemption. Not less than thirty (30 ) days before
the date fixed for such redemption, the City will cause
notice of the call of any Bond to be published in a daily or
weekly periodical published in a Minnesota city of the first
Class or its metropolitan area , which circulates throughout
the state and furnishes financial news as a part of its
service , and mailed to the bank at which the Bonds are then
payable and to the holder thereof , if known, 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. Holders of prepayable Bonds who desire to receive
such notice may register their names and addresses and the
serial numbers of their Bonds with the Finance Director-
Clerk at the City Hall.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED
that all acts , conditions and things required by the Con-
stitution and the laws of the State of Minnesota to be done ,
to exist, to happen and to be performed prece6ent to and in
the issuance of this Bond in order to make it a valid and
binding 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 agreed to levy ad valorem taxes upon all taxable proper-
ty within the City and special assessments on property spe-
cially benefited by the Improvements, collectible in the
years and amounts required to produce sums not less than
five percent ( 5%) in excess of the principal of and interest
on the Bonds as such principal and interest respectively
become due, and has appropriated the same to the Fund in the
manner specified in Minnesota Statutes , Section 429 . 091 ,
Subdivision 4 ; that to take care of any accumulated or an-
ticipated deficiency in the Fund, additional ad valorem
taxes are required by law to be levied upon all taxable
property in the City without limitation as to rate or
amount ; and that this Bond , together with all other debts of
the City outstanding on the date hereof and the date of its
actual issuance and delivery , does not exceed any constitu-
tional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of Eden Prairie , Hennepin
County , Minnesota , by its City Council , has caused this Bond
to be executed in its behalf by the facsimile signatures of
- 6 -
the Mayor and City Manager and the manual signature of the
Finance Director-Clerk , the corporate seal of said City
having been intentionally omitted as permitted by law, and
has caused the interest coupons to be executed and authenti-
cated by the facsimile signatures of said officers, all as
of March 1, 1982 .
ATTEST:
(Manual Signature) (Facsimile Sig nature )
Finance Director-Clerk Mayor
----(Facsimile Signature)
City Manager
z 3 . 02. , Form of Coupons . Interest on each Bond to matur-
ity shall be represented by a consecutively numbered set of
interest coupons printed in substantially the following
form:
No. $
On March (September ) 1 , 19 unless the Bond to which
this coupon appertains shall previously have been called for
redemption and provision for the payment thereof shall have
been made , the City of Eden Prairie , Hennepin County, Minne-
sota, will pay to bearer at the main office of Northwestern
National Bank of Minneapolis, in Minneapolis, Minnesota , the
sum shown hereon in coin or currency of the United States of
America which at the time of payment is legal tender for
payment of public and private debts, for interest then due
on its General Obligation Improvement Bond of 1982 , dated as
of March 1 , 1982 , No.
(Facsimile Signature) (Facsimile Signature)
Finance Director-Clerk Mayor
(Facsimile Signature)
City Manager
3. 03. Form of Certificate. A certificate in substan-
tially the following form shall be printed on the reverse
side of each Bond , following a copy of the text of the legal
opinion to be rendered by bond counsel.:
We certify that the above is a full, true and correct
copy of the legal opinion rendered by bond counsel on the
issue of Bonds of the City of Eden Prairie, Minnesota, which
includes the within Bond , dated as of the date of delivery
of and payment for the Bonds.
Facsimile Signature) Facsimile Signature)
Finance Director-Clerk Mayor
(Facsimile Signature )
City Manager
` Section 4 . Bond Terms , Execution and Delivery
4 . 01 . Date , Amount, Denomination and Maturity. The
City shall forthwith issue and deliver the Bonds , which
8
shall be negotiable coupon general obligation bonds , de-
nominated General Obligation Improvement Bonds of 1982 ,
payable primarily from the 1982 General Obligation Improve-
ment Bond Fund created in Section 5 . 02 hereof . The Bonds
shall be dated as of March 1 , 1982 , shall be 220 in number
and numbered serially from 1 to 220 , inclusive, each in the
denomination of $5 , 000 , and payable to bearer , and shall
mature serially on March 1 in the years and amounts set
forth below. The Bonds of each annual maturity shall bear
interest from date of issue until paid at the rate per annum
shown opposite the year of such maturity as follows :
Year Amount Rate Year Amount Rate
1984 $ 50 , 000 11 . 00% 1990 $100 , 000 11. 00%
1985 75 , 000 11. 00 1991 100 , 000 11. 00
1986 75 , 000 11 . 00 1992 100 , 000 11. 00
1987 100 , 000 11 . 00 1993 100 , 000 11 . 25
1988 100 , 000 11 . 00 1994 100 , 000 11 . 50
1989 100 , 000 11. 00 -.995 100 , 000 11 . 75
4. 02 . Interest. Interest on the Bonds shall be payable
on September 1 , 1982 , and semiannually thereafter on March 1
and September 1 of each year .
4. 03. Paying Agent. The Purchaser of the Bonds has
designated Northwestern National Bank of Minneapolis , in
Minneapolis , Minnesota , as paying agent. That recommenda-
tion is hereby approved . The Mayor and the Finance Direc-
tor-Clerk are hereby authorized and directed to enter into a
paying agency contract pursuant to which the City will pay
the usual and customary charges of said paying agent for the
receipt and disbursement of principal and interest moneys .
The principal of and interest on the Bonds shall be payable
at the main office of the paying agent designated herein, in
Minneapolis , Minnesota , or , in the event of its resignation,
removal or incapability of acting as paying agent, at the
office of such successor paying agent as may be approved by
this City Council. Upon merger or consolidation of the
paying agent with another corporation, if the resulting
corporation is a bank or trust company authorized by law to
conduct such business , such corporation shall be authorized
to act as successor paying agent. No resignation of the
paying agent and no appointment of a successor paying agent
shall become effective until the date specified in a daily
or weekly periodical published in a Minnesota city of the
first class or its metropolitan area which circulates
throughout the state and furnishes financial news as a part
of its service and specified by written notice to the Pur-
chaser of the Bonds, not less than thirty (30) days before
said effective date.
- 5 -
. 4 . 04 . Redemption Feature . Bonds of this issue maturing
in the year 1993 and thereafter shall be subject to redemp-
tion prior to maturity , in whole , or in part in inverse
order of serial numbers , on March 1, 1992 , and on any inter-
est payment date thereafter , at a price equal to par plus
accrued interest to the date fixed for redemption. Not less
than thirty (30 ) days before the date specified for redemp-
tion of any of the Bonds , notice stating the amount and
numbers of the Bonds to be redeemed shall be published in a
daily or weekly periodical published in a Minnesota city of
the first class or its metropolitan area which circulates
throughout the state and furnishes financial news as a part
of its services and sh:-,Il be mailed to the holders , if
known, of the Bonds to be redeemed and to the bank at which
principal and interest are then payable , but no defect in or
failure to give such mailed notice of redemption shall af-
fect the validity of proceedings for redemption of any
Bond. The Finance Director-Clerk shall maintain a record of
the names and addresses of holders of prepayable Bonds and
the serial numbers of such Bonds, so far as such information
is furnished by the holders .
4 . 05 . Preparation and Deliverv . The Bonds shall be
prepared unc?er the direction of the Finance Director-Clerk
and shall be executed on behalf of the City by the printed ,
engraved or lithographed facsimile signatures of the Mayor
and the City Manager and the manual signature of the Finance
Director-Clerk . On the reverse side of each Bond shall be
printed a copy of the legal opinion rendered thereon by bond
counsel and the certificate of the Mayor , the City Manager
and the Finance Director-Clerk . The certificate as to legal
opinion and interest coupons attached to the Bonds shall be
executed and authenticated by the printed , engraved or
lithographed facsimile signatures of the Mayor , the City
Manager and the Finance Director-Clerk . The official corpo-
rate seal of the City shall be omitted from the Bonds and
the interest coupons as permitted by law . When the Bonds
have been so executed and authenticated , they shall be
delivered by the Finance Director-Clerk to the Purchaser
thereof upon payment of the purchase price in accordance
with the contract of sale heretofore made and executed .
Said Purchaser shall not be obliged to see to the applica-
tion of the purchase price.
Section 5 . Security Provisions
5 . 01 . 1982 General Obligation Improvement Construction
Fund. There is hereby created a special fund to be desig-
nated as the " 1982 General Obligation Improvement Construc-
tion Fund " ( the "Construction Fund" ) to be held and admin-
istered by the Finance Director-Clerk separate and apart
from all other funds of the City. The City appropriates to
- 10 -
the Construction Fund : (a) the proceeds of the sale of the
Bonds and (b) all collections of special assessments levied
for the Improvements until completion and payment of all
costs of the Improvements . The Construction Fund shall be
used solely to defray in part expenses of the Improvements ,
including , but not limited to , the transfer to the Bond
Fund , as created and defined in Section 5 . 02 , of amounts
sufficient for the payment of interest and principal , if
any, due upon the Bonds prior to the completion and payment
of such costs of the Improvements . A separate account shall
be maintained in the Construction Fund to record expendi-
tures for the Improvements, and when the total cost thereof
has been paid , all subsequent collections of special assess-
ments levied for the Improvements shall be credited and paid
into the Bond Fund as defined in Section 5 . 02. Upon comple-
tion and payment of such costs of the Improvements, any
balance of the proceeds of the Bonds remaining in the Con-
struction Fund may be used to pay the cost, in whole or in
part, of any improvement instituted pursuant to Minnesota
Statutes , Chapter 429 , as directed by the City Council , but
any balance of such proceeds not so used shall be credited
and paid to the Bond Fund , as hereinafter defined .
5. 02. 1982 General Obligation Improvement Bond Fund .
So long as any of the Bonds are outstanding and any prin-
cipal of or interest thereon unpaid , the Finance Director-
Clerk shall maintain a separate and special fund designated
as the "1982 General Obligation Improvement" Bond Fund" (the
"Bond Fund" ) to be used for no purpose other than the pay-
ment of the principal of and interest on the Bonds and on
such other improvement bonds of the City as have been or may
be directed to be paid therefrom. The City irrevocably
appropriates to the Bond Fund : (a) collections of special
assessments and other funds to be credited and paid thereto
in accordance with the provisions of Section 5. 01 , (b) any
taxes levied in accordance with this resolution and (c) all
such other moneys as shall be received and appropriated to
the Bond Fund from time to time. If the balance in the Bond
Fund is at any time insufficient to pay all principal and
interest then due on all bonds payable therefrom, the pay-
ment shall be made from any fund of the City which is avail-
able for that purpose , subject to reimbursement from the
Bond Fund when the balance therein is sufficient . The City
covenants and agrees that it will each year levy a suffi-
cient amount to take care of any accumulated or anticipated
deficiency , which levy is not subject to any constitutional
or statutory tax limitation.
5. 03 . Additional Bonds . The City reserves the right to
issue additional bonds payable from the Bond Fund as may be
required to finance costs of the Improvements not financed
hereby; provided that the City Council shall , prior to the
delivery of such additional bonds , levy or agree to levy, by
resolution', sufficient additional ad valorem taxes and spe-
cial assessments which, together with other moneys or reve-
nues pledged for the payment of said additional bonds, will
produce revenues at least five percent (5%) in excess of the
amount needed to pay when due the principal of and interest
on all bonds payable from the Bond Fund . The additional ad
valorem taxes, special assessments and moneys or revenues so
pledged , levied or agreed to be levied shall be irrevocably
appropriated to the Bond Fund in the manner provided by
Minnesota Statutes , Section 475 . 61 .
5. 04 . Special Assessments. The City covenants and
agrees with all holders of the Bonds that it has levied or
will levy special assessments for the payment of the cost of
the Improvements upon properties within the area determined
to be assessable therefor , in amounts proportionate to and
not exceeding the benefits received by said properties from
the Improvements. It is estimated that the principal amount
of said assessments will be $1, 100 , 000 ; that the install-
ments of said assessments from time to time unpaid will bear
interest at thirteen percent (13 . 0%) per annum from the date
of the resolution levying said assessments until December 31
of the year in which the installment is payable; and that
said assessments will be made payabl: in equal annual in-
stallments collectible together with ad valorem taxes in
each of the years 1983 to 1994 .
The City covenants and agrees with all holders of the
Bonds that the principal amount of the special assessments
levied on account of the Improvements will in no event be
less than twenty percent (20%) of the total cost of the
Improvements, as finally ascertained , and that if the total
amount assessed for the Improvements should be less than
$220 , 000 , the City will levy additional ad valorem taxes
upon all taxable property within its corporate limits , at
the time of the levy of said assessments , and make the same
payable in the years and amounts required , together with the
special assessments to be collected and the taxes herein
levied , to produce sums not less than five percent (5%) in
excess of said annual principal and interest requirements
and will appropriate these taxes irrevocably to the Con-
struction Fund and the Bond Fund as set forth in -ections
5 . 01 and 5 . 02. In the event that any special assessment or
tax referred to in this paragraph should be held invalid
with respect to any lot , tract or parcel of land due to any
error , defect or irregularity in any action or proceedings
taken or to be taken by the City, this City Council or any
officer or employee, either in the making of such assessment
or in the performance of any condition precedent thereto,
the City hereby covenants and agrees that the City will
forthwith do all such further acts and take all such further
12 -
proceedings as may be required by law to make such assess-
meet or tax a valid and binding lien upon said property.
5. 05 . Ad Valorem Taxes . It is hereby found and deter -
mined to be just and equitable that all or part of the cost
of the improvements not paid by collections of the special
assessments agreed to be levied pursuant to Section 5. 04
hereof shall be paid from general ad valorem tax levies upon
all of the taxable property in the City and that such por-
tion of the cost will not exceed the total benefits to be
conferred by the Improvements upon the City at large. In
order to provide the additional amounts required by Minne-
sota Statutes , Section 475 . 61 , Subdivision 1 , for the pay-
ment of the Bonds and to provide for the payment of such
portion of said cost , there is hereby levied upon all of the
taxable property of the City a direct , annual ad valorem
tax, which shall be collectible with other taxes in the
years and amounts as set forth on Exhibit A attached
hereto. Said taxes shall be irr_ epealable as long as any of
the Bonds herein authorized are outstanding and unpaid;
provided that the City reserves the right and power to
reduce the levies in the manner and to the extent provided
in Minnesota Statutes, Section 475 . 61.
5. 06. Full Faith and Credit Pledged . The full faith ,
credit and taxing powers of the City are irrevocably pledged
for the prompt a:d full payment of the principal of and
interest on the Bonds, and the Bonds shall be payable from
the Bond Fund in accordance with the provisions and cove-
nants contained in this resolution. It is estimated that
the special assessments levied and to be levied , together
with the ad valorem taxes levied for the payment of the
Improvements , will be collected in amounts not less than
five percent (5%) in excess of the annual principal and
interest requirements of the Bonds . If the money on hand in
the Bond Fund should at any time be insufficient to pay
principal and interest due on all bonds payable therefrom,
such amounts may be paid from any other fund of the City ,
and such other fund shall be reimbursed therefor when suffi-
cient money is available in the Bond Fund . If on October 1
in any year the sum of the balance in the Bond Fund , plus
the amount of special assessments and ad valorem tares
theretofore levied for the Improvements and collectible
through the end of the following calendar year , is not suf-
ficient to pay when due all principal and interest to become
due on all bonds payable therefrom in the following calendar
year or the Bond Fund has incurred a deficiency in the man-
ner provided in this Section 5 . 06 , an additional, direct ,
irrepealable ad valorem tax shall be levied on all taxable
property within the corporate limits of the City for the
purpose of restoring such accumulated or anticipated defi-
ciency in accordance with the provisions of this resolu-
tion.
- 13 -
J
' Section 6 . Defeasance
6 . 01 . Defeasance . When all of the Bonds and all cou-
pons appertaining thereto have been discharged as provided
in this Section 6 . 01 , 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 and coupons appertaining thereto
which are due on any date by depositing with the paying
agent on or before that date a sum sufficient for the pay-
ment thereof in full , or if any Bond or coupon should not be
paid when due , such Bond or coupon may nevertheless oe dis-
charged 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 discharge its obli-
gations with respect to any prepayable Bonds which are
called for redemption on any date according to their terms
by depositing with the paying agent on or before that date
an amount equal to the principal and interest which are then
due , provided that notice of such redemption has been duly
given as provided herein. 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 qualified by law as an escrow agent for this
purpose, cash or securities which are 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 or said redemption date.
Section 7 . Registration , Certification
of Proceedings and Arbitrage
7. 01. Registration. The Finance Director-Clerk is
hereby authorized and directed to file a certified copy of
this resolution with the Director of Property Taxation , as
County Auditor (the "County Auditor" ) of Hennepin County ,
together with such other information as the County Auditor
shall require, and to obtain from said County Auditor a
certificate that the Bonds have been entered on the bond
register of the County Auditor as required by law.
7 . 02. Certification of Proceedings . The officers of
the City and the County Auditor are hereby authorized and
directed to prepare and furnish to the purchaser of the
Bonds and to O 'Connor & Hannan , Bond Counsel, certified
copies of all proceedings and records of the City and such
other affidavits, certificates and information as may be
-- 14 -
required to show the facts relating to the legality and
marketability of the Bonds as the same appear from the books
and records under the custody and control of or as otherwise
known to the City and the County Auditor . All such certi-
fied copies , certificates and affidavits , including any
heretofore furnished , shall be deemed representations of the
City as to the facts recited therein.
7 . 03. Investment of Mone Zs on Deposit in Bond Fund ;
Arbitrage .
(a) Covenant. The City covenants and agrees
with the holders from time to time of the Bonds
that the City 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 1954 , as amended (the "Code" ) , and
regulations , issued thereunder , as now existing or
as hereafter amended or proposed and in effect at
the time of such action.
(b) Investment of Moneys on Deposit in Bond
Fund. Unless and until the regulations under Sec-
tion 103 %c) of the Code which have been promulgated
by the Internal Revenue Service prior to the date
hereof have been modified or amended in pertinent
part, the Finance Director-Clerk shall ascertain
monthly the amount on deposit in the Bond Fund . If
the amount on deposit therein ever exceeds by more
than $165 , 000 the aggregate amount of principal and
interest due and payable from the Bond Fund within
thirteen (13) months thereafter , then to the extent
necessary to prevent the Bonds from being arbitrage
bonds, such excess shall either: (a) not be in-
vested except at a yield less than or equal to the
yield on the Bonds, based upon their amounts , matu-
rities and interest on their date of issue , com-
puted by the actuarial method or (b) be used to
redeem and prepay the Bonds then redeemable . L
any additional bonds are ever issued and made pay-
able from the Bond Fund pursuant to Section 5. 03
hereof, the dollar amount in the preceding sentence
shall be changed to equal fifteen percent (15%) of
the aggregate original principal amount of all
bonds, including the Bonds , which are outstanding
and payable therefrom. The City reserves the right
to amend the provisions of this Section 7 . 03 (b) at
any time , whether prior to or after the delivery of
the Bonds , if and to the extent that this City
Council determines that the provisions of this
Section 7 . 03 (b) are not necessary in order to as-
-
15 -
sure that the Bonds are not arbitrage bonds under
Section 103 (c) of the Code and the applicable regu-
lations.
(c) Certification. The Mayor and the Finance
Director-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 Pur-
chaser a--certificate in accordance - with the provi-
sions of Section 103 (c) of the Code and Treasury
Regulations , Section 1. 103-13, 1 . 103-14 and 1. 103-
15, stating - that on the basis of the facts , esti-
mates and circumstances in existence on the date of
issue and delivery of the Bonds, as such facts ,
estimates and circumstances are set forth in the
pertificate , it is not expected that the proceeds
of the Bonds will be used in a manner that would
cause the Bonds to be arbitrage bonds within the
meaning of Section 103 (c) of the Code and the
applicable Regulations.
Section 8 . Official Statement
8-. 01 . Official Statement. The Official Statement,
dated as of March 2, 1982 , relating to the Bonds , prepared
and distributed on behalf of the City by Ehlers and Asso-
ciates, Inc. , is hereby approved and the appropriate offi-
cers of the City are hereby authorized and directed to exe-
cute such certificates as are appropriate with respect to
the completeness and accuracy of the Of vial Statement.
Attest;
Mayor
n ;
Fia nce irector-Clerk
l
16
The motion for the adoption of the foregoing Resolution
was duly seconded by Member Paul Redpath and, upon vote
being taken thereon, the following voted :
YEAS ABSTAINS NAYS
Mayor Wolfgang Penzel None None
Paul Redpath
Dean Edstrom
George Bentley
George Tangen
Whereupon said Resolution was declared duly fussed and
adopted and was signed by the Mayor and attested by the
Finance Director-Clerk.
17 -
EXHIBIT A
Year P & I P & I + 5% Assessments Surplus Tax Levy
1983 $172,500 181 ,125 $ 234,667 $ 53,542 -0-
1984 192 ,000 201 ,600 222,750 74,692 -0-
1985 183,750 192 ,938 210833 92,587 -0-
1986 200,500 210 ,525 198:916 800,978 -0-
1987 189,500 198 ,975 187,000 789,003 -0-
1988 178,500 187 ,425 175 ,083 776,661 -0-
1989 167 ,500 175 ,875 163,167 763,953 -0-
1990 156 ,500 164 ,325 151 ,250 750,878 -0-
1991 145 ,500 152 ,775 139 ,333 737 ,436 -0-
1992 134 ,500 141 ,225 127 ,417 723 ,628 -0-
1993 123 ,250 129 ,412 115,500 709,716 -0-
1994 111 ,750 117 ,338 103,583 695,961. -0-
$1 ,955,750 $2,053 ,538 $2,029,499