HomeMy WebLinkAboutResolution - 86-317 - Resolution Relating to $2,300,000 G.O. Building Bonds, Series 1986; Fixing the Form and Details and Providing for Execution and Delivery and Security - J CERTIFICATION OF MINUTES RELATING TO
$2 , 300 , 000 GENERAL OBLIGATION BUILDING BONDS , SERIES 1986
Issuer : City of Eden Prairie, Minnesota
Governing body: City Council
Kind, date , time and place of meeting : A reg„lar
meeting held on Tuesday, December 16 , 1986 , at 7:30 o ' clock
P .M . , C .A . T . , at the City Hall .
Members present : Mayor Gar, Peterson, Council Members: Paul Redpath,
Richard Anderson, George Bentley, Patricia Pidcock
Members absent : None
Documents attached :
Minutes of said meeting ( including) :
RESOLUTION NO . 86-317
RESOLUTION RELATING TO $2 , 300 , 000 GENERAL
OBLIGATION BUILDING BONDS , SERIES 1986 ;
FIXING THE FORM AND DETAILS AND PROVIDING
FOR THE EXECUTION AND DELIVERY THEREOF AND
SECURITY THEREFOR
I , the undersigned, being the duly qualified and
acting recording officer of the public corporation issuing the
obligations referred to in the title of this certificate,
certify that the documents attached hereto, as described above,
have been carefully compared with -the original records of the
corporation in my legal custody, from which they have been
transcribed; that the documents are a correct and complete
transcript of the minutes of a meeting of the governing body of
the corporation , and correct and complete copies of all
resolutions and other actions taken and of all documents
approved by the governing body at the meeting, insofar as they
relate to the obligations ; and that the meeting was duly held
by the governing body at the time and place and was attended
throughout by the members indicated above, pursuant to call and
notice given as required by law .
WITNESS my hand officially as such recording officer
this 17th day of December , 1986 .
9� John D . Frane
;�� Finance Director-Clerk
Counci lmember Bentley introduced the
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following resolution and moved its adoption :
RESOLUTION NO .
RESOLUTION RELATING TO $2 , 300 , 000 GENERAL
OBLIGATION BUILDING BONDS , SERIES 1986 ;
FIXING THE FORM AND DETAILS AND PROVIDING
FOR THE EXECUTION AND DELIVERY THEREOF AND
SECURITY THEREFOR
BE IT RESOLVED by the City Council ( the Council ) of
the City of Eden Prairie, Minnesota ( the City) , as follows :
Section 1 . Authorization . At a special election duly
called and held on May 6 , 198 , the voters of the City
authorized the City to issue general obligation bonds in an
amount not exceeding $ 2,300,000 , to provide funds to build and
equip a new Fire Hall Building in the City. Pursuant to the
authorization recited in a resolution of even date herewith
entitled "Resolution Relating to $5 , 000 , 000 General Obligation
Bonds and Certificates of Indebtedness ; Authorizing the
Issuance and Awarding the Sale Thereof , " this Council hereby
determines that it is necessary to establish the form and terms
of the issue of $2 , 300 , 000 General Obligation Building Bonds
j authorized therein ( the Bonds ) , to provide security therefor
and to issue the Bonds forthwith .
Section 2 . Form of Bonds . The Bonds shall be
prepared in substantially the following form:
(Face of the Bonds ]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF EDEN PRAIRIE
GENERAL OBLIGATION BUILDING BOND, SERIES 1986
No . $
Date of
Rate Matur_ty Original Issue CUSIP
December 1 , 1986
REGISTERED OWNER : SEE REVERSE
PRINCIPAL AMOUNT : FOR CERTAIN
DEFINITIONS
IU40W ALL !riEN BY THESE PRESENTS that 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 identified above , or registered
assigns , the principal sum specified above on the maturity date
specified above , with interest thereon from the date hereof at
the annual rate specified above, all subject to the provisions
referred to herein with respect to the redemption of the
principal of this Bond before maturity. Interest hereon is
payable on March 1 and September 1 in each year , commencing
September 1 , 1987 , 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 . The
interest hereon and , upon presentation and surrender hereof at
maturity at the principal office of the Bond Registrar
hereinafter designated, the principal hereof , are payable in
lawful money of the United States of America by check or draft
of American National Ba k & Trust Conpany , in St. Paul
Minnesota , as Bond Registrar , Transfer Agent and Paying
Agent (the Bond Registrar ) , or its successor designated under
the Resolution described herein . For the prompt and full
payment of such principal and interest as the same respectively
become due, the full faith , credit and taxing powers of the
City have been and are hereby irrevocably pledged .
Additional provisions of this Bond are contained on
the reverse hereof and such provisions shall for all purposes
have the same effect as though fully set forth hereon .
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This Bond shall not be valid or become obligatory for
any purpose or be entitled to any security or benefit under the
Resolution until the Certificate of Authentication hereon shall
have been executed by the Bond Registrar by manual signature of
one of its authorized representatives .
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 facsimile signatures of the
Mayor and the City Manager and by a printed facsimile of the
official seal of the City.
Date of Authentication :
(Facsimile Signature ) ( Facsimile Signature )
City Manager Mayor
( Facsimile Seal )
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the
Resolution mentioned within .
as Bond Registrar
By _
Authorized Representative
[Reverse of the Bonds ]
This Bond is one of an issue in the aggregate
principal amount of $2 , 300 , 000 (the Bonds) , issued pursuant to
a resolution adopted by the City Council on December 16 , 1986
(the Resolution) to finance the building and equipping of a new
Fire Hall Building in the City, and is issued pursuant to the
requisite majority vote of the electors of the City at an
election duly called and held in and for the City, and pursuant
to and in full conformity with the provisions of the
Constitution and laws of the State of Minnesota thereunto
enabling, including Minnesota Statutes , Chapter 475 . The Bonds
are issuable only as fully registered bonds , in denominations
{ of $5 , 000 or any multiple thereof , of single maturities .
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Bonds maturing in the years 1989 through 1997 are
payable on their respective stated maturity dates without
option of prior payment , but Bonds having stated maturity dates
in the years 1998 through 2008 are each subject to redemption
and prepayment , at the option of the City and in inverse order
of maturities and by lot , assigned in proportion to their
principal amount , within any maturity, on March 1 , 1997 and on
any interest payment date thereafter , at a price equal to the
principal amount thereof to be redeemed plus interest accrued
to the date of redemption . At least thirty days prior to the
date set for redemption of any Bond , notice of the call for
redemption will 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 will be
mailed to the Bond Registrar and to the registered owner of
each Bond to be redeemed at his address appearing in the Bond
Register , 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 . Upon partial redemption of any
Bond, a new Bond or Bonds will be delivered to the registered
owner without charge , representing the remaining principal
amount outstanding .
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 the 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 receiving 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
r Constitution and laws of the State of Minnesota to be done , to
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exist , 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 in
regular and due form as so required; that prior to the issuance
hereof , the City has levied ad valorem taxes upon all taxable
property within the City for the years and in the amounts
required to produce sums not less than five percent in excess
of the principal of and interest on the Bonds as such principal
and interest respectively become due, and additional ad valorem
taxes , if necessary, will be levied upon all taxable property
in the City without limitation as to rate or amount ; and that
the issuance of this Bond does not cause the indebtedness of
the City to exceed any constitutional or statutory limitation .
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 UNIF GIFT MIN ACT . . . . . Custodian . . . . .
in common (Cust ) (Minor )
TEN ENT -- as tenants
by the entireties
under Uniform Gifts to
JT TEN -- as joint tenants Minors
with right of
survivorship and Act. . . . . . . . . . . . . . . . . . . . . .
not as tenants in ( State)
common
?additional abbreviations may also be used .
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)
City Manager Mayor
i
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ASSIGNMENT
FOR VALUE RECEIITED the undersigned hereby sells ,
assigns and transfers unto
the within Bond and all rights thereunder , and hereby
irrevocably constitutes and appoints
attorney to transfer the within Bond on the books kept for
registration thereof , with full power of substitution in the
premises .
Dated :
PLEASE INSERT SOCIAL SECURITY _
OR OTHER IDENTIFYING NUMBER NOTICE : The signature to this
OF ASSIGNEE: assignment must correspond with
the name as it appears on the
face of the within Bond in every
particular , without alteration,
enlargement or any change
whatsoever .
Signature( s ) must be guaranteed by a commercial bank
or trust company or by a brokerage firm having a membership in
one of the major stock exchanges .
Section 3 . Bond Terms , Execution and Delivery .
3 . 01 . Maturities , Interest Rates , Denominations ,
Payment . The City shall forthwith issue and deliver the Bonds ,
which shall be denominated "General Obligation Building Bonds ,
Series 1986 , " shall be issuable in the denominations of $5 , 000
each or any integral multiple thereof , of single maturities ,
shall mature on March 1 in the years and amounts set forth
below, and Bonds maturing in such years and amounts shall bear
interest from the date of issue until paid or duly called for
redemption at the rates per annum shown opposite such years and
amounts as follows :
Year Amount Rate Year Amount Rate
1989 $ 50 , 000 4.60% 1999 $ 100 , 000 6.30%
1990 50 , 000 4.80% 2000 125 , 000 6.40%
1991 75 , 000 5.00% 2001 125 , 000 6.50%
1992 75 , 000 5.20% 2002 125 , 000 6.60%
1993 75 , 000 5.40% 2003 150 , 000 6.70%
1994 75 , 000 5.60% 2004 150 , 000 1.80%
1995 75 , 000 5.80% 2005 175 , 000 6.90%
1996 100 , 000 6.00% 2006 175 , 000 6.90%
1997 100 , 000 6.10% 2007 200 , 000 6.90%
1998 100 , 000 6.20% 2008 200 , 000 6.90%
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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 described herein , the
principal amount thereof , shall be payable by check or draft
issued by the Registrar .
3 . 02 . Dates ; Interest Payment Dates . Each Bond shall
bear an original issue date of December 1 , 1986 , and the
Registrar shall place the date of authentication on each Bond
as of the date of its authentication and delivery . The
interest on the Bonds shall be payable on March 1 and
September 1 in each year , commencing September 1 , 1987 , to the
owner of record thereof as such appear in the bond register as
of the close of business on the fifteenth day of the
immediately preceding month , whether or not such day is a
business day .
3 . 0.3 . Registration . The City shall appoint , and
shall maintain, a bond registrar , transfer agent and paying
agent ( the Registrar ) . 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
principal corporate trust office a bond register in which
the Registrar shali 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 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 the transfer of any Bond or
portion thereof selected for redemption .
( 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 .
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(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 an exchange upon 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 Band 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
receipt by 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
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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 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 . 04 . Appointment of Initial Registrar . The City
hereby appoints rican Nation-Bank & Trust Company , as
the initial Registrar . The Mayor and the City Manager are
authorized to execute and deliver , on behalf of the City, a
contract with An-eri.can National Bank & Trust Company
as Registrar . Upon merger or consolidation of the Registrar
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 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 any Registrar upon thirty
( 30 ) 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 . On or before each principal or interest due date ,
without further order of this Council , the Finance
Director-Clerk shall transmit to the Registrar , from the 1986
General Obligation Building Bond Fund described in Section 4 . 01
hereof , moneys sufficient for the payment of all principal and
interest then due .
3 . 05 . Redemption . Bonds maturing in the years 1989
through 1997 shall not be subject to redemption prior to
maturity, but Bonds maturing in the years 1998 through 2008
shall each be subject to redemption and prepayment , at the
option of the City, in inverse order of maturities and by lot ,
assigned in proportion to their principal amount , within any
maturity, on March 1 , 1997 and on any interest payment date
thereafter at a price equal to the principal amount thereof to
be redeemed plus interest accrued to the date of redemption .
At least thirty days prior to the date set for redemption of
any Bona, the Finance Director-Clerk shall cause notice of the
call for redemption 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 to
be mailed to the Registrar and to the registered owner of each
Bond to be redeemed, 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.
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3 . 06 . Preparation and Delivery . The Bonds shall be
prepared under the direction of the Finance Director-Clerk and
shall be executed on behalf of the City by the signatures of
the Mayor and the City Manager , and shall be sealed with the
official corporate seal of the City; provided that said
signatures and the corporate seal may be printed , engraved, or
lithographed facsimiles thereof . 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 ent_tled to any security or benefit undeL this
resolution unless and until a certificate of authentication on
such 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 representative . 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 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 , and the purchaser shall not be obligated to see to
the application of the purchase price .
Section 4 . Security Provisions .
4 . 01 . 1986 General Obligation Building Bond Fund . So
long as any of the Bonds are outstanding and any principal
thereof or interest thereon unpaid, the Finance Director-Clerk
shall maintain a separate and special 1986 General Obligation
Building Bond Fund ( the Bond Fund) to be used for no purpose
other than the payment of the principal of and interest on the
Bonds , provided that if any payment of principal or interest
shall become due when there is not sufficient money in the Bond
Fund therefor , the City Finance Director-Clerk shall
nevertheless provide sufficient moneys from any funds of the
City which are available for that purpose, and such other funds
shall be reimbursed from the proceeds of the takes levied
pursuant to this resolution and all other money received for or
appropriated to the payment of principal of and interest on the
Bonds .
4 . 02 . Ad Valorem Taxes . The full faith and taxing
powers of the City are hereby irrevocably pledged for the
prompt and full payment of the principal of and interest on the
Bonds as the same become respectively due . For this purpose
t
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there is hereby levied upon all of the taxable property of the
City a direct , annual ad valorem tax, which shall be spread
upon the tax rolls prepared in each of the following years and
collected with other taxes in the years and amounts as follows :
Levy Collection Levy Collection
Year Year Amount Year Year Amount
See attached bid tabulation
The foregoing tax levies are such that if collected in full
they will produce at least five percent ( 5% ) in excess of the
amount needed to pay when due the principal of and interest on
the Bonds . This tax shall be irrevocably appropriated to the
Bond Fund as 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 .
Section 5 . Defeasance . When all of the Bonds have
been discharged as provided in this Section 5 , 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 irrevocably depositing with the 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 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 Registrar on or before that
date a sum sufficient for the payment thereof in full , provided
that notice of the redemption thereof has been duly given as
provided in Section 3 . 05 . 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
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DATE 12/17/86
COMPUTATION OF TAX LEVY ON --
CITY OF EDEN PRAIRIE, MINNESOTA
$2,300,000 G.O. BUILDING BONDS, SERIES 1966
OF INDEBTEDNESS, SERIES 1986
LEVY COLLECTION FBI TAX
YEAR YEAR PLUS 5 (ROUNDED)
1986 1987 $191, 526. 56 $191 ,600
1987 1988 $205,721 .25 $205 ,800
1988 1989 $203, 306. 25 $203 ,400
1989 1990 $227,036 . 25 $227 ,100
1990 1991 $223,098. 75 $223 ,100
1991 1992 $219,003. 75 $219 ,100
1992 1993 $214, 751. 25 $214 ,800
1993 1994 $210, 341. 25 $210,400
1994 1995 $232,023. 75 $232 ,100
1995 1996 $225, 723. 75 $225 ,800
1996 1997 $219,318. 75 $219 ,400
1997 1998 $212,808. 75 $212 ,900
1998 1999 $232,443. 75 $232 ,500
1999 2000 $224,043. 75 $224 ,100
2000 2001 $215 , 512. 50 $215 ,600
2001 2002 $233,100.00 $233 ,100
4 2002 2003 $222, 547 .50 $222 ,600
2003 2004 $238,087 . 50 $238 ,100
2004 2005 $225, 408.75 $225 ,500
2005 2006 $238,980.00 $239 ,000
$4,414,784. 06 $4,416 ,000
CAPITALIZED INTEREST, FUNDS AVAILABLE & FUNDS ON HAND
HAVE BEEN DEDUCTED FROM THE FIRST YEAR LEVY SHOWN ABOVE.
COMPUTER ROUNDING MAY CAUSE DIFFERENCE OF A FEW DOLLARS
WHEN CHECKING COLUMN TOTALS WITH TOTALS SHOWN.
PROGRAM 'LEVYCALC' -- SHORT FORM
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 , it
notice of redemption as herein required has been duly provided
for, to such earlier redemption date .
Section 6 . County Auditor Registration , Certification
of Proceedings , Investment of Moneys , Arbitrage and Qualified
Tax-Exempt Obligations .
6 . 01 . County Auditor Registration . The Finance
Director-Clerk is hereby authorized and directed to file a
certified copy of this resolution with the Director of Property
Taxation of Hennepin County, together with such other
information as the Director of Property Taxation shall require ,
and to obtain from said Director of Property Taxation a
certificate that the Bonds have been entered on his bond
register and the taxes described in Section 4 . 02 hereof have
been levied as requited by law.
6 . 02 . Certification of Proceedings . The officers of
the City and the Director of Property Taxation of Hennepin
County are hereby authorized and directed to prepare and
furnish to the Purchaser and to Dorsey & Whitney, Bond Counsel ,
certified copies of all. proceedings and records 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 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 .
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 ( the Code) and applicable Treasury Regulations ( the
Regulations ) , 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 the Code and the Regulations .
6 . 04 . Investment of Moneys on Deposit in Bond Fund .
From and after December 1, 1996 , 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 $100 , 000 the aggregate amount of principal and interest
due and payable from the Bond Fund within the next succeeding
12 months , such excess shall be used to prepay and redeem Bonds
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or be invested at a yield less that. or equal to the yield on
the Bonds , based upon their amounts , maturities and interest
rates on their date of issue, computed by the actuarial
method. The City reserves the right to amend the provisions of
this Section 6 . 04 at any time , whether prior to or after the
delivery of the Bonds , if and to the extent that this Council
determines that the provisions of this Section 6 . 04 are not
necessary in order to ensure that the Bonds are not "arbitrage
bonds " within the meaning of Section 148 of the Code and
Regulations .
6 . 05 . Arbitrage Certification . The Mayor and 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 purchaser thereof a certificate in accordance with the
provisions of Section 148 of the Code , and Sections 1 . 103-13 ,
1 . 103-14 and 1 . 103-15 of the Regulations , stating the facts ,
estimates and circumstances 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 the Code and Regulations .
6 . 06 . Official Statement . The Official Statement
relating to the Bonds , prepared on behalf of the City by Ehlers
and Associates , Inc . is hereby approved, and the officers of
the City are hereby authorized and directed to execute such
certificates as may be appropriate concerning the accuracy,
completeness and sufficiency thereof .
6 . 07 . Qualified Tax-Exempt Obligations . The City
hereby designates the Bonds as "qualified tax-exempt
obligations" for purposes of Section 265 ( b) ( 3 ) of the Code
relating to the disallowance of interest expense for financial
institutions .
6 . 08 . Exemption from Rebate Requirements . For
purposes of compliance with the requirements of Section
148 ( f ) ( 4 ) ( C) of the Code relating to the exemption for certain
small governmental units from the rebate requirements of the
Code , the City hereby determines and declares that :
( a) it is a governmental unit with general taxing
powers ;
(b) the Bonds are not "private activity bonds" as
defined in Section 141 of the Code (Private
Activity Bonds ) ;
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( c ) ninety-five percent of the net proceeds of the
Bonds are to be used for the local governmental
purposes of the City; and
( d) the aggregate face amount of all tax-exempt bonds
( other than Private Activity Bonds) issued by the
City in calendar year 1986 is not reasonably
expected to exceed $5 , 000 , 000 .
/s/ Gary Peterson
Mayor
Attest :
/s/ John D. RLane
Finance Director-Clerk
The motion for the adoption of the foregoing
resolution. was duly seconded by Councilmember Pidcock ,
and upon vote being taken thereon, the following voted in favor
thereof : Mayor Cary Peterson, Council Members: Paul Redpath, Richard Anderson,
George Bentley, Patricia Pidcock
and the following voted against the same : hone
whereupon said resolution was declared duly passed and adopted,
and was signed by the Mayor , whose signature was attested by
the Finance Director-Clerk .
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