HomeMy WebLinkAboutResolution - 87-334 - Sale of $5,000,000 General Obligation Water and Sewer Bonds - Counci lrnember Bentley introduced the
following resolution and moved its adoption :
RESOLUTION NO . 57-334
RESOLUTION RELATING TO $ 5 , 000 , 000 GENERAL
OBLIGATION WATER AND SEWER REVENUE BONDS ,
SERIES 1987 ; AUTHORIZING THE ISSUANCE,
AWARDING THE SALE , 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 Prai. rie , Minnesota ( the City) , as follows :
Section 1 . Authorization and Sale .
1 . 01 . Authorization and Sale of Bonds . By resolution
adopted November 1_7 , 1987 , this Council called for the public
sale on this date of $5 , 000 , 000 General Obligation Water and
Sewer Revenue Bonds , Series 1987 of the City ( the Bonds) for
the purpose of financing a water plant expansion and sewer and
water capital costs under and pursuant to Minnesota Statutes ,
Section 444 . 075 . Notice of the sale was duly published as
required by Minnesota Statutes , Section 475 . 60 . Pursuant to
the Notice of Sale and the Terms and Conditions of Sale,
t ;v ._ sealed bids for the purchase of the Bonds were
received at or before the times specified for receipt of bids .
The bids have been opened and publicly read and considered , and
the purchase price , interest rates and net interest cost under
the terms of each bid have been determined . The most favorable
proposal received is that of Clayton Brown & Associates,_ Inc .
_i , of Chicago , Illinois
( the Purchaser) , to purchase the Bonds at a price of
$4,902 ,000 , the Bonds to bear interest at the rates set forth
in Section 3 . 01 hereof . The proposal is hereby accepted , and
the Mayor and Finance Director-Clerk are hereby authorized and
directed to execute a contract on the part of the City for the
sale of the Bonds with the Purchaser . The Finance Director-Clerk
shall retain the good faith check of the Purchaser , but the
good faith checks of the unsuccessful bidders shall be returned
forthwith .
1 . 02 . 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 , existing , having happened and having been
performed , it is now necessary for this Council to establish
the form and terms of the Bonds , to provide the security
therefor and to issue the Bonds forthwith .
t., Section 2 . Form of Bonds . The Bonds shall be
prepared in substantially the following form:
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[Face of the Bonds ]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF EDEN PRAIRIE
GENERAL OBLIGATION WATER AND SEWER REVENUE BOND , SERIES 1987
Date of
Rate [Maturity Original Issue CUSIP
December 15 , i997
REGISTERED OWNER : SEE REVERSE
PRINCIPAL AMOUNT : FOR CERTAIN
DEFINITIONS
No . $
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 February 1
and August 1 in each year , commencing August 1 , 1988 , 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 Bank
and Trust Company, 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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i' 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 .
AMERICAN NATIONAL BANK AND TRUST
COMPANY, as Bond Registrar
BY_ — -
Authorized Representative
[Reverse of the Bonds ]
This Bond is one of an issue in the aggregate
principal amount of $5 , 000 , 000 ( the Bonds ) , issued pursuant to
a resolution adopted by the City Council on December 22 , 1987
( the Resolution) to finance a water plant expansion and sewer
and water system capital costs ( the Improvements) , 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 , Section
444 . 075 . This Bond is payable primarily from the Water and
Sewer System General Obligation Revenue Bond Fund ( the Bond
Fund) of the City , but the City is required by law to pay
maturing principal hereof and interest hereon from any
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available funds of the City if moneys on hand in the Bond Fund
are insufficient therefor . The Bonds are issuable only as
fully registered bonds , in denominations of $5 , 000 or any
multiple thereof , of single maturities .
Bonds maturing in the years 1989 through 1996 are
payable on their respective stated maturity dates without
option of prior payment, but Bonds having stated maturity dates
in the years 1997 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 February 1 , 1996 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 ir. 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
Constitution and laws of the State of: Minnesota to be done , to
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; the City has covenanted
and agreed with the holders of the Bonds that the City will
impose and collect charges for the service , use and
availability of its water and sewer systems at the times and in
the amounts required to produce net revenues which with
collections of special assessments will be adequate to pay all
principal and interest due on Bonds of this issue ; that all
taxable property within the City is also subject to the levy of
a direct , general , ad valorem tax , if needed , for the payment
of the principal and interest hereon, 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 TRANS MIN ACT . . . . . Custodian . . . . .
in common (Cust ) (Minor )
TEN ENT -- as tenants
by the entireties
under Uniform Transfers
JT TEN -- as joint tenants to Minors
with right of
survivorship and Act . . . . . . . . . . . . . . . . . . . . . .
not as tenants in (State )
common
Additional abbreviations may also be used .
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ASSIGNMENT
FOR VALUE RECEIVED 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 .
[Form to appear on reverse of Bond and to follow copy
of legal opinion of 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)
City Manager Mayor
Section 3 . Bond Terms , Execution and Deliver .
3 . 01 . Maturities , Interest Rates , Denominations ,
Payment . The City shall forthwith issue and deliver the Bonds ,
which shall be denominated "General Obligation Water and Sewer
Revenue Bonds , Series 1987 , " shall be i.ssuable in the
denominations of $5 , 000 each or any integral multiple thereof ,
of single maturities , shall mature on February 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 :
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Year Amount Rate Year Amount Rate
1989 $100 , 000 6.00% 1.999 $225 , 000 7.00%
1990 125 , 000 6.20 2000 250 , 000 7.10
1991 125 , 000 6.20 2001 275 , 000 7.20
1992 150 , 000 6 . 90 2002 300 , 000 7.25
1993 150 , 000 6. 90 2003 325 , 000 7.40
1994 150 , 000 6. 90 2004 350 , 000 7 .50
1995 175 , 000 6. 90 2005 375 , 000 7.50
1996 200 , 000 6. 90 2006 400 , 000 7.50
1997 200 , 000 6 . 90 2007 425 , 000 7.50
1998 225 , 000 6.90 2008 475 , 000 7.50
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 15 , 1987 , 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 February 1 and
August 1 in each year , commencing August 1 , 1988 , 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 . 03 . 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 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 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
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1' 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 .
( d) Can_cellation . 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) I[-n roper or Unauthorized 'Cransfer .. 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) Muti_ lated , 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
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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 or 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
indernnity 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 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 American National Bank and Trust Company, in
St . Paul , Minnesota , as the initial Registrar . The Mayor and
the City Manager are authorized to execute and deliver , on
behalf of the City , a contract with American National Bank and
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 Water Revenue 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 1996 shall. not be subject to redemption prior to
maturity, but Bonds maturing in the years 1997 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 February 1 , 1996 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 .
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At least thirty days prior to the date set for redemption of
any Bond, 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 finaricial 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 .
3 . 06 . Preparation and Delivery . The Bonds shall be
prepared Linder 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 hIariager ,, 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 sarne as if such
officer had remained in office until delivery . [gotwithstanding
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
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 . Water and Sewer System General Obligation
Revenue Bond Fund . Principal of and interest on the Bonds
shall be paid from the "Water and Sewer System General
Obligation Revenue Bond Fund" ( hereinafter , the Bond Fund)
heretofore created by Resolution No . 416 adopted by this
Council on April 6 , 1971 ; provided , that if any payment of
principal or interest shall become due when there is not
sufficient money in the Bond Fund therefor , the Finance
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Director-Clerk shall pay the same from the general fund of the
City and the general fund shall be reimbursed for such advances
out of the proceeds of the taxes levied to make good such
deficiency. Into the Bond Fund shall be credited the receipts
of al. l water and sewer system net revenues pledged by the terms
of this Resolution , all collections of ad valorem taxes levied
herein , and all other moneys received for or appropriated to
the payment of the Bonds and interest thereon .
4 . 02 . Net Revenues . It is estimated that the net
revenues of the municipal slater and sewer systems , together
with collections of any taxes and special assessments levied
for water and sewer improvements and paid into the Bond Fund ,
will be sufficient to pay the principal of and interest on all
General Obligation Water and Sewer Bonds of the City, including
the Bonds herein authorized and bonds previously issued .
4 . 03 . Covenants . Pursuant to the provisions of
Section 444 . 075 , Minnesota Statutes , as amended , the City
hereby covenants and agrees with the holders fro[7, time to time
of the Bonds that so long as any of the Bonds are outstanding ,
the City will impose and collect reasonable charges for the
service, use and availability of its water and sewer systems to
the City and its inhabitants according to schedules calculated
to produce net revenues which, together with collections of
special assessments levied for water and sewer improvements
paid into the Bond Fund , will be sufficient to pay all
principal and interest when due on the Bonds , and said net
revenues , to the extent necessary, are hereby irrevocably
pledged and appropriated to the payment of the Bonds and
interest thereon; provided that nothing herein shall preclude
the City from hereafter making further pledges and
appropriations of net revenues of the water and sewer systems
for the payment of additional obligations of the City hereafter
authorized if the City Council determines before the
authorization of such additional obligations that the estimated
net revenues of the water and sewer systems will be sufficient ,
together with any other sources pledged to or projected to be
used for the payment of the Bonds and such additional
obligations . Such further pledged and appropriations of said
net revenues may be made superior or subordinate to or on a
parity with the pledge and appropriation herein made .
4 . 04 . 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,
in the event and to the extent that the net revenues
hereinabove pledged to the payment of the Bonds are
insufficient for that purpose in any year , there is hereby
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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 levy computation
The foregoing tax levies are such that if collected in full
they will produce at least five percent ( 5o) 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 prepavable 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 ,
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COMPUTATION OF TAX LEVY ON --
CITY OF ED EN PRAIRIE, MINNESOTA
$5,000,000 G.O. WATER AND SEWER REVENUE BONDS
SERIES 1987
LEVY COLLECTION P&I TAX
YEAR YEAR PRINCIPAL INTEREST PLUS 5 % (ROUNDED)
1987 1988 $100,000.00 $179,362.50 $293,330. 63 $293,400
1988 1989 $125,000.00 $352,725.00 $501,611.25 $501,700
1989 1990 $125,000.00 $344, 975.00 $493, 473. 75 $493,500
1990 1991 $150,000.00 $337,225.00 $511,586.25 $511,600
1991 1992 $150,000.00 026,875. 00 t500,718. 75 $500,800
1992 1993 $150,000.00 $316,525.00 $489,851.25 $489,900
1993 1994 $175,000.00 $306,175.00 1505,233.75 $505,300
1994 1995 $200,000.00 $294,100.00 $518,805.00 $518,900
1995 1996 $200,000. OO $280, 300. 00 $504,315. 00 $504,400
1996 1997 $225,000.00 $266,500.00 $516,075.00 $516,100
1997 1998 025-,000.00 $250,975.00 $499,773.75 1499,800
1998 1999 $250,000.00 $235,225.00 $509,486.25 $509,500
1999 2000 $275,000.00 $217, 475. 00 $517,098. 75 $517,100
2000 2001 $300,000.00 $197,675.00 $522,558.75 $522,600
2001 2002 $325,000.00 $175, 925. 00 $525,971.25 1526,000
2002 2003 $350,000.00 $151,875.00 $526,968.75 $527,000
2003 2004 $375,000.00 $125,625.00 $525,656.25 4525,700
2004 2005 t400,000.00 $97,500.00 $522,375.00 $522,400
` 2005 2006 $425,000.00 $67, 500. 00 $517,125.00 $517,200
2006 2007 $475,000.00 05,625.00 $536,156.25 $536,200
$5, 000,000.00 $4, 560,162. 55.0 $10,038,170.63 $10,039,100
NOTE: BOND PROCEEDS (CAPITALIZED INTEREST) OF $37000.00
AND FUNDS ON HAND AMOUNTING TO $188199.58
WILL BE USED TO PAY $225199.58 OF INTEREST PAYMENTS DUE
8/l/1988
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.
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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 , if
notice of redemption as herein required has been duly provided
for , to such earlier redemption date .
Section 6 . County Auditor Re istration , 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 . 04 hereof have
been levied as required 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 February 1 , 1996 , the Finance Director-Clerk
shall ascertain monthly the amount on deposit in the Bond
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Fund. If the amount on deposit therein ever exceeds by more
than $250 , 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
or be invested at a yield less than 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 cleaning 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 cnay 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 :
f
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` (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 ) ;
(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 1987 is not reasonably
expected to exceed $5 , 000 , 000 .
/s/ Gary Peterson
- _ Mayo r---� _
Attest
/s/ Jo -ln D. Frane
Finance Director-Clerk
The motion for the adoption of the foregoing
resolution was duly seconded by Councilmerriber Pidcock ,
and upon vote being taken thereon , the following voted in favor
thereof : Mayor Gary Peterson,
Council Members: Ceorge Bentley, Jean L. Harris, Patricia Pidcock
and the following voted against the same :
None. Council. Member Richard Anderson was absent.
whereupon said resolution was declared duly passed and adopted ,
and was signed by the Mayor , whose signature was attested by
the Finance Director-Clerk . !
`13 r.l
i
A
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r�"
CERTIFICATION OF MINUTES RELATING TO
$5 , 000 , 000 GENERAL OBLIGATION WATER AND SEWER REVENUE BONDS,
J SERIES 1987
i
Issuer : City of Eden Prairie, Minnesota
Governing body : City Council
Kind , date, time and place of meeting : A
meeting held on ;- December 22 , 1987 , at �-/ ` �r--d o ' clock p .m.
P. M. , C . D . T . , at the City Hall .
Members present : Mayor Gary Peterson, CouncilMembers : George Bentley,
Jean L. Harris , Patricia Pidcock
Members absent : Council Member Dick Anderson
Documents attached :
Minutes of said meeting ( including) :
RESOLUTION NO .
i
RESOLUTION RELATING TO $5 , 000 , 000 GENERAL
OBLIGATION WATER AND SEWER REVENUE BOND ,
SERIES 1987 ; AUTHORIZING THE ISSUANCE,
AWARDING THE SALE, 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 .
W TNESS my hand officially as such recording officer
this cJ. ' day of December , 1987 . f
John D . Frane
�� Finance Director-Clerk
The Finance Director-Clerk presented affidavits
showing publication in the official newspaper and in Commercial
West of the notice of sale of $5 , 000 , 000 General Obligation
Water and Sewer. Revenue Bonds , Series 1987 of the City, bids
for which are to be considered at this meeting as provided by
the resolution of the City Council adopted November 17 , 1987 .
The affidavits were examined and approved and ordered placed on
file in the office of the Finance Director-Clerk .
Tt was reported that five sealed bids for the
purchase of said Bonds had been received from the following
institutions at Dr before the time stated in the notice . The
bids , having been opened and tabulated by the Finance
Director-Clerk as provided in the notice of sale , were then
publicly read and considered , and were all found to conform to
the notice of sale and the terms and conditions of sale and to
be accompanied by the required security, and the purchase
price, interest rates and net interest cost under the terms of
each bid were found to be as follows :
Bidder Purchase Price Interest Rates Net Interest Cost
See attached bid tabulation
} BID TABULATION
$5,000,000 General Obligation Water & Sewer Revenue Bonds
City of Eden Prairie, Minnesota
SALE: Tuesday, December 22, 1987
AWARD: CLAYTON BROWN & ASSOCIATES, INC.
RATING: Moody's "A" BBI: 8.01%
COUPON NET INTEREST COST
NAME OF BIDDER RATE YEAR & RATE PRICE
CLAYTON BROWN & ASSOCIATES. INC. 6.00% 1989 $4,883,362.08 $4,902,000.00
Chicago, Illinois 6.20% 1990 -1991
BLUNT, ELLIS & LOEWI, INC. 6.90% 1992 -1998 7.4710%
Chicago, Illinois 7.00% 1999
GRIFFIN, KUBIK, STEPHENS & THOMPSON. INC. 7.10% 2000
Chicago, Illinois 7.2.0% 2001
7.25% 2002
7.40% 2003
7.50% 2004 -2008
CRONIN & COMPANY, INC. 5.40% 1989 $4.904,423.75 $4,920,000.00
Minneapolis. Minnesota 5.60% 1990
5.80% 1991 7.5032%
6.00% 1992
6.20% 1993
6.40% 1994
6.60% 1995
6.70% 1996
6.80% 1997
6.90% 1998
7.00% 1999
7.10% 2000
7.20% 2001
7.30% 2002
7.40% 2003
7.50% 2004
7.60% 2005
7.70% 2006
7.75% 2007 -2008
0 �
Ehlers and A$swlaM,Inc. 507 Marquette Avenue
Minneapolis,MN 55402
LEADERS I P U B L I C F I N A N C L•
(612)339-8291
COUPON NET INTEREST CQS-r
NAME OF BIDDER RATE YEAR & RATE PRICE
NORWEST INVESTMENT SERVICES, INC. 5.50% *1'989 $5,021,501.46 $4,907,500.00
Minneapolis, Minnesota 5.75% 1990
JURAN & MOODY, INC.. 5.90% 1991 7.6823%
St. Paul, Minnesota 6.10% 1992
American National Bank & Trust Company 6.25% 1993
Dougherty, Dawkins. Strand & Yost, Inc. 6.40% 1994
M.H. Novick & Company, Inc. 6.60% 1"5
6.75% 1996
IN ASSOCIATION WITH - 6.90% -1997
7.00% 1"8
PIPER, JAFFRAY & HOPWOOD INC. 7.10% 1999
Minneapolis, Minnesota 7.25% 2000
THE FIRST NATIONAL BANK OF ST. PAUL 7.40% .2001
FIRST NATIONAL BANK OF MINNEAPOLIS 7.50% 2002
Minneapolis, Minnesota 7.60% 2003
Robert W. Baird & Company, Inc. 7.70% 2004
Craig-Hallum, Inc. 7.80% - 2005
Marquette Bank Minneapolis, N.A. 7.90%- 2006 -2008
DAIN BOSWORTH, INC. 5.60% 1989 $5,089,740.42 $4,910,000.00
Minneapolis, Minnesota 5.80%- 1990
MILLER SECURITIES, INC. 6.00% 1991 7.7867%
Minneapolis, Minnesota 6.21 %- 1992
MERRILL LYNCH CAPITAL MARKETS 6.40% 1993
Chicago, Illinois 6.60% 1994
KIDDER, PEABODY & COMF,ANY, INC. 6.75% 1995
Chicago, Illinois 6.90% 1996
7.00% 1997
7,10% 1998
7.25% 1999
7-40% 2000
7.50% 2001
7.60% 2002
7..70% 2003
7.80% 2004
7.90% 2005
8.00% 2006 -2008
PRUIDENTIAL-BAC.HE CAPITAL FUNDING 5.75% 1989 $5,128,452.85 $4,905,000.0L
Chif-'-ago, Illinois' - 6.00% 1990
1-HE r,R5CJN LEF;&4f- ►Z BRO(HERS, INC. 6.20% 1991 7.8460%
Chicago. Illinois 6.40% 1992
SMITH BARNEY. HARRI-S UPHAM 6.55% 1993
a COMPAT-1-y; INC. 6.70% 1994
Chicago- Illinois `' 6.85% 1995
DEAN WITTER REYNOLDS, INC. 7.00% 1996
Chicago, Illinois 7.15% 1997
First Tennessee Bank, N.A. 7.30% 1998
7.40% 1999
7.50% 2000
7.60% 2001
7.70% 2002
7.80% 2003
7.85% 2004
7.90% 2005
7.95% 2006
8.00% 2007 --2008