HomeMy WebLinkAbout7B - Gen. Obligation Bonds
AGENDA #:
PREPARED BY:
SUBJECT:
DATE:
INTRODUCTION:
BACKGROUND:
DISCUSSION:
7B
RALPH TESCHNER FINANCE DIRECTOR
CONSIDER APPROVAL OF RESOLUTION 94-34 AUTHORIZING
ISSUANCE OF $800,000 G.O. IMPROVEMENT BONDS OF 1994
JUNE 20,1994
The City's bond and fiscal consultant Steve Mattson from Juran & Moody
will be present during the Council meeting to request Council approval for
a negotiated sale of bonds in the amount of $800,000 to finance
improvements associated with Project 94-01 Prior South street overlay,
paving of Sand Point Beach parking lot and seal coating.
The City Council approved Resolution 94-07 on January 18, 1994 which
accepted the feasibility report for a number of projects identified for
construction during 1994 which were to be financed by a combination of
municipal state aid funding and general obligation bonds. A summary of
those improvements are listed below:
Project Description
Project Financing
1. Proj. 94-01 (Prior South)
2. Bituminous Seal Coating
3. Sand Point Parking Lot
4. CSAH 18 to CSAH 42
5. Proj. 94-02 (Northwood)
6. Carriage Hills Parkway
G.O. Bonds
G.O. Bonds
G.O. Bonds
G~O. Bonds
G.O. Bonds/MSA
MSA State Aid
Subsequently, the public hearings for the Prior South and Northwood
street overlay improvements were conducted on March 21 and April 4,
1994 and Resolutions 94-13 and 94-15 ordering the respective
improvements were approved.
Because right-of-way acquisition for the Northwood Road project is not
expected to be completed until late in this year's construction season, bids
will be scheduled for spring of 1995. Also, due to the present court
injunction, the upgrade of the CSAH 18 approach to the Bloomington
Ferry bridge will in all probability be delayed for a minimum of one year.
Therefore, the bonding for these two improvements will not occur until
next year as well.
The remaining projects of Prior South street reconstruction, general
area-wide sealcoating and the paving of Sand Point parking lot require a
bond issue in the amount of $800,000.00. Minnesota statutes allow for
negotiated bond sales of up to a maximum amount of $1,200,000 in any
single issuance as well as an aggregate total during a calender year.
4629 Dakota St. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245
AN EQUAL OPPORTUNITY EMPLOYER
T' 'rr
The distinction between a public sale and a negotiated sale is that in a
market whereby interest rates are rising you are able to sell bonds in a
quicker timeframe thereby saving costs associated with potential higher
interest rates. Also attributed with a public bond sale are the standard
consultant fee of $11,000.00, Moody's Investor's Service rating charge of
$5,500.00 and prospectus preparation costs in excess of $1,000.00.
All of these costs, plus additional miscellaneous expenditures associated
with a public sale would not be incurred by a negotiated bond sale. Such
savings as indicated could exceed $15,000 in financing costs. Juran and
Moody, Inc. would earn their profit, as would the underwriter on a public
sale, by purchasing the bonds at the industry standard 1.96% discount
factor.
The City would benefit from a public sale only if the successful low
bidder resulted in a low enough interest rate, whereby the interest savings
would be substantial enough to offset the additional aforementioned
expenses.
Typically, the threshold for public bond sales are $1,000,000 and above.
Any dollar amount below this could result in beneficial savings to the City
by selecting either way of financing depending upon market conditions. At
this point it is the recommendation of the City's financial advisor that a
negotiated sale may be in our best interest. However, the City Council has
the option to choose either process. Since this being the case, Mr. Mattson
will have on hand both a resolution authorizing the sale of bonds on a
negotiated basis as well as a resolution establishing a date of public sale in
the event the Council chooses the public sale process.
On a number of occasions, for Council information, the city has sold
bonds on a negotiated basis for the purpose of equipment certificates and
utility improvements of smaller issuance sizes. This would represent the
largest negotiated sale and if the Council were agreeable the structure of
the bond issue itself would be based upon the following components:
Prior South (70%)
Estimated Construction...
Engineering.. .
Administration.. .
Financing.. .
$435,000.00
73,250.00
26,750.00
28,000.00
Sealcoating (20%)
Estimated construction...
Financing...
$150,000.00
8,000.00
Sand Point Parking Lot (10%)
Estimated construction...
Financing...
TOTAL...
$75,000.00
4.000.00
$800,000.00
TAX IMPACT:
ALTERNATIVES:
The above financing expenses breakdown accordingly:
Bond printing ...
Bond Registration ...
Bond Counsel...
Capitalized interest (4 mos.) ..,
Discount factor ...
Rounding.. .
500.00
2,500.00
3,000.00
16,000.00
16,000.00
2.000.00
Subtotal...
$40,000.00
Approximately 41 % of the bonds will be recovered thru payment of
special assessments. The remainder will be levied against the overall
property taxes within the City. If bid today, a net effective interest rate of
under 5Y4% would probably be a close estimate. The minimum interest
rate of 8%, as per the City Assessment Policy, is to be charged on the Prior
South assessments.
The bond issue is to be dated 8/1/94 and will will be structured 10 years in
length. The following is a schedule of tax levies/assessment terms and
their corresponding amounts necessary to amortize the bond debt:
10 year assessment stream ...
10 year property tax levy ...
Total ...
$330,000.00
$470.000.00
$800,000.00
The special levies associated with the 1994 construction improvements are
expected to generate the following approximate 1995 property tax
increases on homesteaded residential property:
Market Value: $85,000 $110,000 $125,000 $150,000 $175,000
Tax Increase:
$8.82
$13.32
$16.02
$20.52
$25.02
These levies would represent a 2.4% increase in property taxes for next
year.
The following alternatives are available to the City Council:
1. Execute bond purchase agreement with Juran and Moody,
Inc. and approve Resolution 94-34 Authorizing Issuance of
$800,000 General Obligation Improvement Bonds of 1994.
2. Authorize public bond sale and approve Resolution 94-34
Authorizing Public Sale of $800,000 General Obligation
Improvement Bonds of 1994.
3. Delay financing to a future time as determined by the City
Council.
_~.,.4-..""- ,,_~'--"'__^"_'" . 4..<"'" ,'_,.. ....,-.__..,....,~-+; .....,- .....
'1' r
r
RECOMMENDATION:
ACTION REQUIRED:
REVIEWED BY:
A9410WRT
Attached is a copy of one resolution authorizing negotiated sale and
another which would authorize a public sale. If the Council accepts the
negotiated sale, a purchase agreement authorizng Juran & Moody, Inc. to
buy the bonds from the City of Prior Lake will be presented at the
meeting. Staff would recommend Alternative #1. Steve Mattson will be
present at the meeting to discuss the resolution and answer any questions
the Council may have with respect to the bond issuance process.
Motion, to aiov e" ~esolution 94-34 Authorizing Issuance of $800,000
Gene{al Ob I ation ~mprovement Bonds of 1994.
. li ( (
. IIrLJ " r;t7 /~
/;
/ .
CITI' OF PRIOR LAKE, MI!I<'NESOT A PUBLIC SALE OPTION
GENERAL OBLIGATION IMPROVEMENT BONDS OF 1994
PAR A."IOU]I.;'T: $815,000.00
'YEAR AMOUNT BONDS DA!ED: AUGUST 1. 1994
1994
1995 $60,000 BONDS MA TIJRE: DECEMBER I, 1995 THROUGH 2004
1996 80,000
1997 80.000 INfEREST: JUNE I, 1995 AJ\;l) SEMANNUALL)' THEREAFTER ON EACH
1998 85.000 JUNE 1 A."ID DECE.'vffiER 1.
1999 85.000
2000 85.000 OPTION: ALL BONDS MA TIJRING IN 11IE YEARS 2000 THROUGH 2004. ARE
2001 85.000 CALLABLE AT 11IE OPTION OF 11IE OTY ON DECEMBER 1. 1999
2002 85.000 OR ANI' PAYl\.1ENT DATE THEREAFTER AT PAR
2003 85.000
2004 85.000 PURCHASE PRICE: $799.026,00
2005 0
2006 0 EST. AVERAGE COUPON RATE 4.884%
2007 0
2008 0 EST. NET EFFECTIVE RA.TE: 5.150%
2009 0
2010 0 PAYING AGTh-r &
2011 0 REGISTRAR FlRSTNATIONAL mUST ASSOOATION
2012 0
2013 0 BOND SALE DATE: JUNE 20. 1994
2014 0 BOND SALE TIME: 7:30 PM
TOTALS $815,000 BOND SALE PLA.CE: cm' HALL
EST. BOND a..OSING DATE: AUGUST 5, 1994
766.250.00
47,783.33
814.033.33
0.00
814.033.33
$815.000.00
660.000.00
73.250.00
33.000.00
3,000.00
500.00
2.300.00
11.893.33
11,000.00
5.500.00
550.00 (A)
13.040.00
(ESTIMATED COSTS)
CONSTRUCTION BIDS
ESTIMATED ENGINEERING
ESTIMATED ADMlNISTRA TION
SUBTOTAL
ADD: (SOFT COSTS)
ESTIM~ TED LEGAL OPINION
ESTIMATED BOND PRINTING
ESTIMATED REGIS1RATION (ONE TIME - UP FRO!'\11)
CAPITAL INTEREST (4 MOl'<'THS)
ESTIM~ TED FlSCAL FEE
ESTIMATED BOl'-.'D RATING FEE
MISC COSTS
ESTIMATED DISCOL'1\'T FACTOR (1.60% OF PAR)
TOTAL SOFT CDSTS OF ISSUANCE
SUBTOTAL
LESS: EST. CITI' INVESTME"lT EARNINGS
TOTAL HARD COSTS
ROUNDED FOR ISSUANCE
APPLICA nON OF FUNDS
COSTS OF COUNTY AUDITOR FEES Al\1J) FlLING OF 8038-G IRS FORMS
(A)
l.
]
PUBLIC SALE OPTION
Name ofIS'luer CIlY OF PRIOR LAKE, MIl\'1'o'ESOT A
Type ofBond GENERAL OBUGA nON IMPROVEMENT BONDS OF 1994
PAR AMOUNr: $815,000.00
Jun-20-1994
Aug-I-I994
DATE OF A. "IALYSIS:
DATED DATE OF BOND ISSUE:
HLE PRlOR LAKE 429 PS
RESIDENTIAL HOMESTEAD
MARKET VALUE
$85.000 $110,000 $125,000 $150.000
NET TAX CAP ACfIY
$1.480 $1,780 S2,28O
TAX
CAPACITY
RATE
INCREASE
$21. 20
21.43
21.20
20.98
20.75
20.52
20.29
20.06
20.06
18.70
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$20.72
$1.73
$16.55
16.73
16.55
16.38
16.20
16.02
15.84
15.66
15.66
14.60
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$16.18
$1.35
$13.76
13.91
13.76
13.62
13.47
13.32
13.17
13.02
13.02
12.14
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$13.45
$1.12
$980
$9.11
9.21
9.11
9.02
8.92
8.82
8.72
8.62
8.62
8.04
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$8.91
$0.74
0.93%
0.94%
0.93%
0.92%
0.91%
0.90%
0.89%
0.88%
0.88%
0.82%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
6,763,327
6,830,%0
6.899,270
6,968,263
7,037,946
7,108,325
7.179,408
7.251.202
7,323,714
7.3%,951
7.470,921
7,545,630
7,621,086
7,6'Tl.297
BALANCE
511,893.33
29,701.33
25.997.33
22,929.33
15.457.33
9,272.33
4.552.83
.477.33
224.33
883.08
542.83
542.83
542.83
542.83
542.83
542.83
542.83
542.83
542.83
542.83
542.83
ANNUAL
TAX CAPACITY
CUMULATIVE VALUEINCR
1.00%
6,371,359
6.435,073
6,499,424
6,564.418
6,630,062
6.6%,363
Ml~U AL
SURPLUS
/DEBaT
$11,893.33
17,808.00
(3,704.00)
(3.068.00)
(7,472.00)
(6,185.00)
(4.719.50)
(3,075.50)
(1.253.00)
658. 75
TAX RATES&
LEVY CHARGES
CAPIT Al1ZED ASSESSMTh'TS
INrEREST 'ASSESSMTh'T INfEREST @ ASSESSMENT
OMON1HS PRNOPAL 8.00% Il\COME
$11,893.33
TOTAL ST A TIJA TORY
DEBT COVERAGE
SERVICE @ 105.00%
EST.
(12-1) INTEREST
YEAR PRINCIPAL RATES Il'\'TEREST
1994
(340.25)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$542.83
7,774,270
A VG. ANNUAL INCR
MO!\'TIll..Y INCR
QOO
QOO
QOO
QOO
QOO
QOO
QOO
QOO
QOO
QOO
QOO
QOO
QOO
QOO
QOO
QOO
QOO
QOO
QOO
QOO
moo
(+)
60,000.00
61.000.00
61.000.00
61,000.00
61,000.00
61,000.00
61,000.00
61.000.00
61.000.00
58.000.00
0.00
0.00
0.00
0.00
0.00
$606.000.00
+)
0.00
0.00
0.00
0.00
0.00
$73.700.00
.56,760.00
54,120.00
51,480.00
48,840.00
46,200.00
43.560.00
40.920.00
38,280.00
35,640.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0,00
489.500.00
(+)
$40,700.00
23,760.00
21,120.00
18.480.00
15,840.00
13,200.00
10,560.00
7,920.00
5,280.00
2,640.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
159,500.00
$33,000.00
33,000.00
33,000.00
33,000.00
33,000.00
33.000.00
33,000.00
33,000.00
33,000.00
33,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
330,000.00
115.892.00
121.464,00
118,188.00
119.952.00
116,025.00
111,919.50
107,635.50
103,173.00
98,621.25
93,980.25
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1,106.850.50
110.373.33
115.680.00
112,560.00
114,240.00
110.500.00
106,590.00
102,510.00
98.260.00
93,925.00
89,505.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1,054,143.33
50,373.33
35,680.00
32,560.00
29,240.00
25,500.00
21.590.00
17,510.00
13.260.00
8,925.00
4.505.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
239,143.33
3.50%
3.90%
4.15%
4.40%
4.60%
4.80%
5.00%
5.10%
5.20%
5.30%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
$60,000.00
80,000.00
80,000.00
85,000.00
85,000.00
85.000.00
85,000.00
85,000.00
85,000.00
85,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
815,000.00
1995
19%
19'Tl
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
11,893.33
(+)
JURAN & MOODY, INC.
STEVEN J. MATTSON V.P.
612-224-1500
1-800-956-4666
PREPARED BY:
[rI)
:l
$330,000.00
40.49%
8.00%
1995
10
6/15/94
AMOUNr OF ADDmONAL ASSESSME,"'ITS:
PERCENTAGE OF ISSUE ASSESSID:
INTEREST RATE ON ASSESSMENTS:
HRST INSTALLMENT COu..ECTION:
# OF A."lNUAL INSTALLMENTS:
START DATE OF ASSESSMENTS:
..
- ~e~
J~-\ ?<'N;J: S~
AUGUST 1,1994
DECEMBER 1, 1995 THROUGH 2004
JUNE 1, 1995 AND SEMIANl\TUAlL Y THEREAFfER ON EArn
JUNE 1 AND DECE.\1BER 1.
AlL BO~1)S MAl1JRING IN THE YEARS 2000 THROUGH 2004, ARE
CALLABLE AT THE OPTION OF THE aTY ON DECEMBER 1. 1999
OR A..,",'Y PA YMEN'T DATE THEREAFTER AT PAR
1994
BONDS DATED:
BONDS MAl1JRE:
INTEREST:
OPTION:
CITY OF PRIOR LAKE, ~nNNESOT A
GE)'o.,'ERAL OBLIGATION IMPROVEMENT BOI'o.'DS OF
PAR AMOVl'-'T: $800,000.00
PURCHA.8E PRICE: $784,320.00
EST. A \'ERAGE COUPON RATE: 4.9894%
EST. NEf EFFECTIVE RATE: 53133%
PAYING AGTh'T &
REGISTRAR: HRSTNATIONAL 1RUST ASSOaATION
BOND SALE DATE: JUNE 20. 1994
BOND SALE TIME: 7:30 PM
BOND SALE PLACE: aTY HALL
EST. BOND CLOSING DATE: AUGUST 5,1994
AMOUNT
$55,000
80,000
SO,OOO
80,000
80,000
85.000
85,000
85,000
85,000
85,000
o
o
o
o
o
o
o
o
o
o
$800,000
YEAR
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
TOTALS
766.250.00
660,000.00
73,250.00
33,000.00
34.021.67
800.271.67
0.00
800.271.67
$800,000.00
(A)
3.000.00
500.00
2,300.00
11,991.67
0.00
0.00
550.00
15.680.00
CONS1RUCTION BIDS
ESTIMATED ENGINEERING
ESTIMATED ADMINISTRATION
SUBTOTAL
ADD: (SOFT COSTS)
ESTIMATED LEGAL OPINION
ESTIMATED BOND PRINTING
ESTIMATED REGISTRATION (ONE TItvlE- UPFROl'-'T)
CAPITAL INTEREST (4 MONTIfS)
ESTIMATED HSCAL FEE
ESTIMATED BOND RATING FEE
MISC COSTS
ESTIMATED DISCOVNT FACTOR (1.96% OF PAR)
TOTAL SOFT COSTS OF ISSUANCE
SUBTOTAL
LESS: EST. aTY INVESTMENT EAR1,,1NGS
TOTAL HARD COSTS
APPLICATION OF FUNDS (ESTIMATED COSTS)
ROUNDED FOR ISSUA..NCE
(A) COSTS OF COUNTY AUDITOR FEES AND HLING OF S038-G IRS FORMS
]
\
ANNUAL TAX
ANNUAL TAX CAPACITY CAPAC1TI'
TAX RATES & SURPLUS CUMlJI...ATIVE V ALu'E INCR. RATE
LEVY CHARGES IDEFlOT BALANCE 1.00% INCREASE
511,991.67
32,804.67
25,790.92
20,497.17
16,133.42
13,909.67
7,743.92
3,311.42
790.67
RESIDEl'<'TIAL HOMESTEAD
MARKET VALUE
$85.000 $1l0,000 $125.000 $150,000
- NETTAXCAPAOTY
$980 $1.480 $1.780 52,280
Name of Issuer CITY OF PRIOR LAKE, MINNESOTA
Type of Bond GENERAL OBUGATION IMPROVEMEr-.'T BONDS OF 1994
PAR AMOUNT: $800,000.00
CAPlT ALIZED ASSESSMEl'<'TS
INTEREST 'ASSESSMENT INTEREST @ ASSESSMENT
o MOl'.'THS PRL'lCIPAL 8.00% INCOME
$11,991.67
STATlJATORY
COVERAGE
@ 105.00%
TOTAL
DEBT
SERVICE
Jun-20-1994
Aug-I-1994
EST.
(12-1) INTEREST
YEAR PRINCIPAL RATES INTEREST
DATE OF A'lALYSIS:
DA 1ED DATE OF BOND ISSUE:
HLE: PRIOR LAKE 429 N
$20.52
20.29
20.52
20.29
20.52
20.29
20.06
19.84
19.61
19.15
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$20.22
$1.69
$16.02
15.84
16.02
15.84
16.02
15.84
15.66
15.49
15.31
14.95
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$15.78
$1.32
$13.32
13.17
13.32
13.17
13.32
13.17
13.02
12.88
12.73
12.43
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$13.12
$1.09
$8.82
8.72
8.82
8.72
8.82
8.72
8.62
8.53
8.43
8.23
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$8.69
$0.72
0.90%
0.89%
0.90%
0.89%
0.90%
0.89%
0.88%
0.87%
0.86%
0.84%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
6,371,359
6,435,073
6,499,424
6,564,418
6,630.062
6,696,363
6,763,327
6,830,960
6,899,270
6,968,263
7.037,946
7.1 08,325
7.179,408
7.251,202
7,323,714
7.396,951
7,470,921
7.545,630
7,621,086
7,697,297
270.92
841.42
841.42
841.42
841.42
841.42
841.42
841.42
841.42
841.42
841.42
841.42
$11 ,991.67
20,813.00
(7.013.75)
(5.293.75)
(4.363.75)
(2.223.75)
(6,165.75)
(4.432.50)
(2,520.75)
(519.75)
570.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$841.42
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$0.00
(+)
58.000.00
58,000.00
59,000.00
59.000.00
60,000.00
60,000.00
60,000.00
60,000.00
60.000.00
59.000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
$593,000.00
(+)
$73,700.00
56,760.00
54,120.00
51,480.00
48,840.00
46,200.00
43,560.00
40,920.00
38,280.00
35,640.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
489,500.00
(+)
$40,700.00
23,760.00
21,120.00
18,480.00
15,840.00
13,200.00
10,560.00
7,920.00
5,280.00
2,640.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
159,500.00
$33,000.00
33,000.00
33,000.00
33.000.00
33.000.00
33,000.00
33,000.00
33,000.00
33,000.00
33,000.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
330,000.00
110,887.00
121,773.75
118,413.75
114,843.75
111,063.75
112,365.75
107,992.50
103.440.75
98,799.75
94,069.50
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
1.093,650.25
(-)
105,606.67
115,975.00
112,775.00
109,375.00
105.775.00
107.015.00
102,850.00
98.515.00
94,095.00
89,590.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
,571.67
50.606.67
35,975.00
32,775.00
29,375.00
25,775.00
22,015.00
17,850.00
13.515.00
9.095.00
4,590.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
241.571.67
3.60%
4.00%
4.25%
4.50%
4.70%
4.90%
5.10%
5.20%
5.30%
5.40%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
$55,000.00
80,000.00
80,000.00
80,000.00
80,000.00
85.000.00
85,000.00
85,000.00
85,000.00
85,000.00
0.00
0.00
0.00
0,00
0.00
0.00
0.00
0.00
0.00
0.00
800,000.00
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
7,774,270
AVG.ANNUALINCR.
MONTHLY INCR.
11,991.67
(+)
1,041
'ARED BY
[li] JURAN & MOODY, INC.
[ IlOO I STEVEN J. MA TISON V.P.
Q!jji'c 612-224-1500
1-800-950-4666
$330.000.00
41.25%
8.00%
1995
10
6/15/94
AMOUNT OF ADDmONAL ASSESSMENTS:
PERCENTAGE OF ISSUE ASSESSFD:
INfEREST RATE ON ASSESSMENTS:
HRST INST AI...LMENT COllECTION:
II OF A~AL INSTALLMENTS:
START DATE OF ASSESSMENTS:
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EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
PRIOR LAKE, MINNESOTA
HELD: June 20, 1994
Pursuant to due call and notice thereof, a regular meeting
of the city council of the City of Prior Lake, Scott county,
Minnesota, was duly called and held at the city Hall in said City
on Monday, the 20th day of June, 1994, at 7:30 P.M.
The following members were present:
and the following were absent:
Member
resolution and moved its adoption:
Resolution Number 94- 34
introduced the following
RESOLUTION" PROVIDING FOR PUBLIC SALE
OF $800,000
GENERAL OBLIGATION IMPROVEMENT BONDS OF 1994
BE IT RESOLVED by the city council of the City of Prior
Lake, Minnesota, as follows:
1. Findina: Amount and Puroose. It is hereby found,
determined and declared that this City should issue $800,000
General Obligation Improvement Bonds of 1994 (the "Bonds") for
the purpose of providing money to finance the construction of
various improvements in the City.
2. Aooointment of Financial Advisor. The city council does
hereby appoint Juran' Moody, Inc., in st. Paul, Minnesota, to
act as its financial advisor to the city for the sale of the
Bonds.
3. Meetina: Bid ooenina. This council shall meet at the
time and place specified in the form of Notice of Bond Sale
attached hereto as Exhibit A for the purpose of considering bids
for, and awarding the sale of, the Bonds. The city Manager, or
designee, shall open bids at the time and place specified in such
Notice of Bond Sale.
266184.1
.,.- "~......,,,--_.......
I
4. Notice of Bond Sal~. The City Manager is hereby
authorized and directed to cause notice of the time, place and
purpose of said meeting to be published in the official newspaper
of the City and in Northwestern Financial Review not less than
ten (10) days in advance of the date of sale, as provided by law,
which notice shall be in substantially the form set forth in
Exhibit A attached hereto and made a part hereof.
5. Official Terms of Bond Sale. The terms and conditions
of the Bonds and the sale thereof are fully set forth in the
"Official Terms of Bond Sale" attached hereto as Exhibit Band
hereby made a part hereof.
6. Official Statement. The City Manager, Finance Director
and other officers or employees of the City are hereby authorized
to participate in the preparation of an official statement for
the Bonds with Juran & Moody, Inc.
The motion for the adoption of the foregoing resolution was
duly seconded by member and, after full
discussion thereof and upon a vote being taken thereon, the
following voted in favor thereof:
and the following voted against the same:
Whereupon said resolution was declared duly passed and
adopted.
266184.1
2
STATE OF MINNESOTA
COUNTY OF SCOTT
CITY OF PRIOR LAKE
I, the undersigned, being the duly qualified and acting
Manager of the City of Prior Lake, Minnesota, DO HEREBY CERTIFY
that I have carefully compared the attached and foregoing extract
of minutes with the original minutes of a meeting of the City
Council of said City duly called and held on the date therein
indicated, which are on file and of record in my office, and the
same is a full, true and complete transcript therefrom insofar as
the same relates to said City's $800,000 General Obligation
Improvement Bonds of 1994.
WITNESS my hand as such Manager and the official seal of the
City this 20th day of June, 1994.
city Manager
( SEAL)
266184.1
3
.. ,_,,,,,,,",,,~,,,,,"""-',~_"""''-'4-....,...,~_,,,.~_."
,
I'
EXHIBIT A
NOTICE OF BOND SALE
$800,000
CITY OF PRIOR LAKE
SCOTT COUNTY
MINNESOTA
GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1994
These bonds will be offered , 1994. Sealed bids
will be opened by the Ci~y Manager, or designee, at __:__ _oM.,
Central Time, at the off~ces of Juran & Moody, Inc., 400 North
Robert Street, Suite 800, in Saint Paul, Minnesota 55101-2091.
Consideration of the bids and award of the sale of the bonds will
be by the City Council at the City Hall in Prior Lake, Minnesota,
at __:__ _.M. following the opening of the bids. The bonds will
be dated August 1, 1994, as the date of original issue. Interest
will be payable June 1, 1995 and semiannually thereafter. The
bonds will mature on December 1 in the years and amounts as
follows:
~
Amount
~
Amount
1995
1996-1999
$55,000
80,000
2000-2004
$85,000
All dates are inclusive.
Bidders must specify a price of not less than $784,320 plus
accrued interest. An approving legal opinion will be furnished
by Briggs and Morgan, Professional Association, of st. Paul and
Minneapolis, Minnesota.
Bidders should be aware that the Official Terms of Bond Sale to
be published in the Official Statement for the sale may contain
additional bidding terms and information relative to the Issue.
In the event of a variance between statements in this Notice of
266184.1
A-l
Bond Sale and said Official Terms of Bond Sale the provisions of
the latter shall be those to be complied with.
Dated: June 20, 1994.
BY ORDER OF THE CITY COUNCIL
Isl Frank Bovles
city Manager
Additional information
may be obtained from:
JURAN & MOODY, INC.
Minnesota Mutual Life Building
400 North Robert street
suite 800
st. Paul, Minnesota 55101-2091
Telephone No.: (612) 224-1500
266184.1
A-2
.,_....,.._._.".~,.-.."'.".___...~""',._..__..._.,_".~,_w_,,_..,~._.,......._"..~...".~,~_''''._._",.,._~,..""'''_~...AA'-'''._._~~..~.......," .. '., ,........ ~,."_,.,',_.__.,___~".....~,""'"'..~.~,,_,,....... r "'l ~ -,' f
,
.
EXHIBIT B
OFFICIAL TERMS OF
BOND SALE
$800,000
GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1994
CITY OF PRIOR LAKE
SCOTT COUNTY
MINNESOTA
NOTICE IS HEREBY GIVEN that these bonds will be offered for sale
according to the following terms:
TIME AND PLACE:
TYPE OF BONDS:
DATE OF ORIGINAL
ISSUE OF BONDS:
PURPOSE:
INTEREST PAYMENTS:
MATURITIES:
266184.1
Sealed bids will be opened by the City
Manager, or designee, on
, 1994, at : .M.,
Central Time, at the offices-of Juran &
Moody, Inc., 400 North Robert Street,
Suite 800, in Saint Paul, Minnesota
55101-2091. Consideration of the bids
for award of the sale will be by the
City Council at its meeting in the Prior
-Lake City Hall beginning at __:__ _.M.,
on the same day.
Fully registered general obligation
bonds, $5,000 or larger denominations at
the option of the bidder.
August 1, 1994.
For the purpose of providing money to
finance the construction of various
improvements in the City.
June 1, 1995, and semiannually
thereafter on June 1 and December 1.
December 1 in each of the years and
amounts as follows:
B-1
~
Amount
1995
1996;"1999
2000-2004
$55,000
80,000
85,000
All dates are inclusive.
REDEMPTION:
At the option of the Issuer, bonds
maturing on or after December 1, 2000
shall be subject to prior payment, on
December 1, 1999 and any interest
payment date thereafter, at a price of
par and accrued interest. Redemption
may be in whole or in part of the bonds
subject to prepayment. If redemption is
in part, the bonds remaining unpaid
which have the latest maturity date
shall be prepaid first and if only part
of the bonds having a common maturity
date are called for prepayment the
specific bonds to be prepaid shall be
chosen by lot by the Registrar.
BOND REGISTRAR:
Principal will be payable at the main
corporate office of First Trust National
Association, in st. Paul, Minnesota (the
"Registrar"). Interest will be payable
by check or draft of the Registrar
mailed to the registered holder of the
bond at his address as it appears on the
books of the Registrar. The Issuer will
pay reasonable and customary charges for
the services of the Registrar.
CUSIP NUMBERS:
If the bonds qualify for assignment of
CUSIP numbers such numbers will be
printed on the bonds, but neither the
failure to print such numbers on any
bond nor any error with respect thereto
shall constitute cause for a failure or
refusal by the Purchaser thereof to
accept delivery of and pay for the bonds
in accordance with terms of the purchase
contract. The CUSIP Service Bureau
charge for the assignment of CUSIP
identification numbers shall be paid by
the purchaser.
266184.1
B-2
.~."_._............~,_'.^""""'4~"" _~,,,>,"_,__.,..o-"."..,.,,~._._.......",.,_.....,., _u_..,._,.".._._,~__...~,._..,; ",.",-""-~~,-,"""~",,,,,,,,,,,",,,",,,,*,,--=-'''-'
I
I'
DELIVERY:
Forty days after award subject to
approving legal opinion of Briggs and
Morgan, Professional Association, of St.
Paul and Minneapolis, Minnesota. Bond
printing and legal opinion will be paid
by the Issuer and delivery will be
anywhere in the continental United
States without cost to the Purchaser.
Legal opinion will be printed on the
bonds at the request of the successful
bidder.
TYPE OF BID:
Sealed bids of not less than $784,320
and accrued interest on the principal
sum of $800,000 from date of original
issue of the bonds to date of delivery
must be filed with the undersigned prior
to the time of sale. Bids must be
unconditional except as to legality. A
certified or cashier's check (the
"Deposit") in the amount of $16,000
payable to the order of the Finance
Director of the Issuer, or a Financial
Surety Bond complying with the
provisions below, must accompany each
bid, to be forfeited as liquidated
damages if bidder fails to comply with
accepted bid. Bids for the bonds should
be delivered to Juran & Moody, Inc., and
addressed to:
Ralph Teschner
Finance Director
Prior Lake City Hall
4629 Dakota Street Southeast
Prior Lake, Minnesota 55372-1714
If a Financial Surety Bond is used, it
must be from an insurance company
licensed to issue such a bond in the
State of Minnesota, and preapproved by
the Issuer. Such bond must be submitted
to Juran & Moody, Inc. prior to the
opening of the bids. The Financial
Surety Bond must identify each bidder
whose Deposit is guaranteed by such
Financial Surety Bond. If the bonds are
awarded to a bidder using a Financial
Surety Bond, then that purchaser is
required to submit its Deposit to Juran
266184.1
B-3
RATES:
INFORMATION FROM
PURCHASER:
QUALIFIED TAX
EXEMPT OBLIGATIONS:
AWARD:
266184.1
, Moody, Inc. in the form of a certified
or cashier's check or wire transfer as
il}~;tr,%;'U9:t!1."~"PY Juran , Moody, Inc. not
latet~b:an'3:30 P.M., Central Time, on
the next business day following the
award. If such Deposit is not received
by that time, the Financial Surety Bond
may be drawn by the Issuer to satisfy
the Deposit requirement. The Issuer
will deposit the check of the purchaser,
the amount of which will be deducted at
settlement and no interest will accrue
to the purchaser. In the event the
purchaser fails to comply with the
accepted bid, said amount will be
retained by the Issuer. No bid can be
withdrawn after the time set for
receiving bids unless the meeting of the
Issuer scheduled for award of the bonds
is adjourned, recessed, or continued to
another date without award of the bonds
having been made.
All rates must be in integral multiples
of 1/20th or 1/8th of 1%. No limitation
is placed upon the number of rates which
may be used. All bonds of the same
maturity must bear a single uniform rate
from date of issue to maturity and no
rate of any maturity may be lower than
the highest rate applicable to bonds of
any preceding maturities.
The successful purchaser will be
required to provide, in a timely manner,
certain information relating to the
initial offering price of the bonds
necessary to compute the yield on the
bonds pursuant to the provisions of the
Internal Revenue Code of 1986, as
amended.
The Issuer will designate the
bonds as qualified tax exempt
obligations for purposes of Section
265(b) (3) of the Internal Revenue Code
of 1986, as amended.
Award will be made solely on the basis
of lowest dollar interest cost,
B-4
I
.
determined by addition of any discount
to and deduction of any premium from the
total interest on all bonds from their
date to their stated maturity.
The Issuer reserves the right to reject any and all bids, to
waive informalities and to adjourn the sale.
Dated: June 20, 1994.
BY ORDER OF THE CITY COUNCIL
/s/ Frank Bovles
City Manager
Additional information
may be obtained from:
JURAN & MOODY, INC.
Minnesota Mutual Life Building
400 North Robert street
suite 800
st. Paul, Minnesota 55101-2091
Telephone No.: (612) 224-1500
266184.1
B-5
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
PRIOR LAKE, MINNESOTA
HELD: June 20, 1994
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Prior Lake, Scott
County, Minnesota, was duly held at the City Hall in said City on
Monday, the 20th day of June, 1994, at 7:30 P.M., for the
purpose, in part, of authorizing the issuance of, and awarding
the sale of, $800,000 General obligation Improvement Bonds of
1994 of the City.
The following members were present:
and the following were absent:
Member
and moved its adoption:
introduced the following resolution
Resolution Number 94-34
RESOLUTION PROVIDING FOR THE ISSUANCE
AND SALE OF
$800,000 GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1994,
AND LEVYING A TAX FOR THE PAYMENT THEREOF
A. WHEREAS, the City Council of the City of Prior
Lake, Minnesota (the "City"), has heretofore determined and
declared that it is necessary and expedient to issue $800,000
General Obligation Improvement Bonds of 1994 of the City,
pursuant to Minnesota Statutes, Chapters 429 and 475, for the
purpose of providing money to finance the construction of various
improvements in the City (the "Improvements"); and
B. WHEREAS, the Improvements and all their components
have been ordered prior to the date hereof, after a hearing
thereon for which notice was given describing the Improvements or
all their components by general nature, estimated cost, and area
to be assessed; and
c. WHEREAS, no other obligations have been sold
pursuant to a private sale within the last twelve (12) calendar
months of the date hereof which when combined with this issue
would exceed the $1,200,000 limitation on negotiated sales as
266190.1
.-.~~-""._~-"~,,...,,,-.' .., ,. ---"."-".,."...,..._-,...;.~,.,._....,,-.,..,..._,,._.,.."",,",...,.~,,.....,...~.__.......-._....,,_.....~.......-,
,
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required by Minnesota statutes, section 475.60, Subdivision 2(2);
and
NOW, THEREFORE, BE IT RESOLVED by the Council of the
City of Prior Lake, Minnesota, as follows:
1. Acceptance of Offer. The offer of Juran & Moody,
Inc. (the "Purchaser"), to purchase $800,000 General Obligation
Improvement Bonds of 1994 of the City (the "Bonds", or
individually a "Bond"), in accordance with the terms and at the
rates of interest hereinafter set forth, and to pay therefor the
sum of $784,320, plus interest accrued to settlement, is hereby
accepted.
2. Title: Oriainal Issue Date: Denominations:
Maturities. The Bonds shall be titled "General Obligation
Improvement Bonds of 1994", shall be dated August 1, 1994, as the
date of original issue and shall be issued forthwith on or after
such date as fully registered bonds. The Bonds shall be numbered
from R-1 upward in the denomination of $5,000 each or in any
integral multiple thereof of a single maturity. The Bonds shall
mature on December 1 in the years and amounts as follows:
Year
Amount
Year
Amount
1995
1996-1999
$55,000
80,000
2000-2004
$85,000
All dates are inclusive.
3. Puroose. The Bonds shall provide funds to finance
the Improvements. The total cost of the Improvements, which
shall include all costs enumerated in Minnesota Statutes, Section
475.65, is estimated to be at least equal to the amount of the
Bonds. Work on the Improvements shall proceed with due diligence
to completion. The City covenants that it shall do all things
and perform all acts required of it to assure that work on the
Improvements proceeds with due diligence to completion and that
any and all permits and studies required under law for the
Improvements are obtained.
4. Interest. The Bonds shall bear interest payable
semiannually on June 1 and December 1 of each year (each, an
"Interest Payment Date"), commencing June 1, 1995, calculated on
the basis of a 360-day year of twelve 30-day months, at the
respective rates per annum set forth opposite the maturity years
as follows:
266190.1
2
Maturity
Year
Interest
Rate
'" Maturity
Year
Interest
Rate
1995
1996
1997
1998
1999
,
2000
2001
2002
2003
2004
,
5. RedemDtion. All Bonds maturing in the years 2000
to 2004, both inclusive, shall be subject to redemption and
prepayment at the option of the city on December 1, 1999, and on
any Interest payment Date thereafter at a price of par plus
accrued interest. Redemption may be in whole or in part of the
Bonds subject to prepayment. If redemption is in part, those
Bonds remaining unpaid which have the latest maturity date shall
be prepaid first; and if only part of the Bonds having a common
maturity date are called for prepayment, the specific Bonds to be
prepaid shall be chosen by lot by the Bond Registrar. Bonds or
portions thereof called for redemption shall be due and payable
on the redemption date, and interest thereon shall cease to
accrue from and after the redemption date. Mailed notice of
redemption shall be given to the paying agent and to each
affected registered holder of the Bonds at least thirty (30) days
prior to the date fixed for redemption.
To effect a partial redemption of Bonds having a common
maturity date, the Bond Registrar prior to giving notice of
redemption shall assign to each Bond having a common maturity
date a distinctive number for each $5,000 of the principal amount
of such Bond. The Bond Registrar shall then select by lot, using
such method of selection as it shall deem proper in its
discretion, from the numbers so assigned to such Bonds, as many
numbers as, at $5,000 for each number, shall equal the principal
amount of such Bonds to be redeemed. The Bonds to be redeemed
shall be the Bonds to which were assigned numbers so selected;
provided, however, that only so much of the principal amount of
each such Bond of a denomination of more than $5,000 shall be
redeemed as shall equal $5,000 for each number assigned to it and
so selected. If a Bond is to be redeemed only in part, it shall
be surrendered to the Bond Registrar (with, if the city or Bond
Registrar so requires, a written instrument of transfer in form
satisfactory to the City and Bond Registrar duly executed by the
holder thereof or his, her or its attorney duly authorized in
writing) and the city shall execute (if necessary) and the Bond
Registrar shall authenticate and deliver to the Holder of such
Bond, without service charge, a new Bond or Bonds of the same
series having the same stated maturity and interest rate and of
any authorized denomination or denominations, as requested by
such Holder, in aggregate principal amount equal to and in
exchange for the unredeemed portion of the principal of the Bond
so surrendered.
266190.1
3
___.-..-..'"'___......,-"'""".___...H".... .' .. :..,,,.",................,,.....,,,.,,,'",,,-_... ,,',. '-""-'-"'~-"'~"""
I
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6. Bond Reaistrar. First Trust National Association,
in st. Paul, Minnesota, is appointed to act as bond registrar and
transfer agent with respect to the Bonds (the "Bond Registrar"),
and shall do so unless and until a successor Bond Registrar is
duly appointed, all pursuant to any contract the City and Bond
Registrar shall execute which is consistent herewith. The Bond
Registrar shall also serve as paying agent unless and until a
successor paying agent is duly appointed. Principal and interest
on the Bonds shall be paid to the registered holders (or record
holders) of the Bonds in the manner set forth in the form of Bond
and paragraph 12 of this resolution.
7. Form of Bond. The Bonds, together with the Bond
Registrar's Certificate of Authentication, the form of Assignment
and the registration information thereon, shall be in
substantially the following form:
266190.1
4
UNITED STATES OF AMERICA
STATE OF MINNESOTA
SCOTT COUNTY
CITY OF PRIOR LAKE
$
R-
GENERAL OBLIGATION IMPROVEMENT
BOND OF 1994
INTEREST
RATE
MATURITY
DATE
DATE OF
ORIGINAL ISSUE
CUSIP
AUGUST 1, 1994
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
KNOW ALL PERSONS BY THESE PRESENTS that the City of
Prior Lake, Scott county, Minnesota (the "Issuer"), certifies
that it is indebted and for value received promises to pay to the
registered owner specified above, or registered assigns, in the
manner hereinafter set fqrth, the principal amount specified
above, on the maturity date specified above, unless called for
earlier redemption, and to pay interest thereon semiannually on
June 1 and December 1 of each year (each, an "Interest Payment
Date"), commencing June 1, 1995, at the rate per annum specified
above (calculated on the basis of a 360-day year of twelve 30-day
months) until the principal sum is paid or has been provided for.
This Bond will bear interest from the most recent Interest
Payment Date to which interest has been paid or, if no interest
has been paid, from the date of original issue hereof. The
principal of and premium, if any, on this Bond are payable upon
presentation and surrender hereof at the principal office of
First Trust National Association, in st. Paul, Minnesota (the
"Bond Registrar"), acting as paying agent, or any successor
paying agent duly appointed by the Issuer. Interest on this Bond
will be paid on each Interest Payment Date by check or draft
mailed to the person in whose name this Bond is registered (the
"Holder" or "Bondholder") on the registration books of the Issuer
maintained by the Bond Registrar and at the address appearing
thereon at the close of business on the fifteenth day of the
calendar month next preceding such Interest Payment Date (the
"Regular Record Date"). Any interest not so timely paid shall
cease to be payable to the person who is the Holder hereof as of
the Regular Record Date, and shall be payable to the person who
is the Holder hereof at the close of business on a date (the
"Special Record Date") fixed by the Bond Registrar whenever money
becomes available for payment of the defaulted interest. Notice
of the Special Record Date shall be given to Bondholders not less
266190.1
5
f
..
than ten days prior to the Special Record Date. The principal of
and premium, if any, and interest on this Bond are payable in
lawful money of the united States of America.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL
FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
IT IS HEREBY CERTIFIED AND RECITED that all acts,
conditions and things required by the Constitution and laws of
the State of Minnesota to be done, to happen and to be performed,
precedent to and in the issuance of this Bond, have been done,
have happened and have been performed, in regular and due form,
time and manner as required by law, and that this Bond, together
with all other debts of the Issuer outstanding on the date of
original issue hereof and the date of its issuance and delivery
to the original purchaser, does not exceed any constitutional or
statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of Prior Lake, Scott
County, Minnesota, by its City Council has caused this Bond to be
executed on its behalf by the facsimile signatures of its Mayor
and its Manager, the corporate seal of the Issuer having been
intentionally omitted as permitted by law.
266190.1
6
Date of Registration:
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
FIRST TRUST NATIONAL
ASSOCIATION
st. Paul, Minnesota
Bond Registrar
By
Authorized Signature
266190.1
Registrable by: FIRST TRUST
NATIONAL ASSOCIATION
Payable at: FIRST TRUST
NATIONAL ASSOCIATION
CITY OF PRIOR LAKE,
SCOTT COUNTY, MINNESOTA
Isl Facsimile
Mayor
Isl Facsimile
Manager
7
,
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ON REVERSE OF BOND
Redemption. All Bonds of this issue (the "Bonds")
maturing in the years 2000 to 2004, both inclusive, are subject
to redemption and prepayment at the option of the Issuer on
December 1, 1999, and on any Interest Payment Date thereafter at
a price of par plus accrued interest. Redemption may be in whole
or in part of the Bonds subject to prepayment. If redemption is
in part, those Bonds remaining unpaid which have the latest
maturity date shall be prepaid first; and if only part of the
Bonds having a common maturity date are called for prepayment,
the specific Bonds to be prepaid shall be chosen by lot by the
Bond Registrar. Bonds or portions thereof called for redemption
shall be due and payable on the redemption date, and interest
thereon shall cease to accrue from and after the redemption date.
Mailed notice of redemption shall be given to the paying agent
and to each affected Holder of the Bonds at least thirty (30)
days prior to the date fixed for redemption.
Selection of Bonds for Redemption: Partial Redemption.
To effect a partial redemption of Bonds having a common maturity
date, the Bond Registrar shall assign to each Bond having a
common maturity date a distinctive number for each $5,000 of the
principal amount of such Bond. The Bond Registrar shall then
select by lot, using such method of selection as it shall deem
proper in its discretion, from the numbers assigned to the Bonds,
as many numbers as, at $5,000 for each number, shall equal the
principal amount of such Bonds to be redeemed. The Bonds to be
redeemed shall be the Bonds to which were assigned numbers so
selected; provided, however, that only so much of the principal
amount of such Bond of a denomination of more than $5,000 shall
be redeemed as shall equal $5,000 for each number assigned to it
and so selected. If a Bond is to be redeemed only in part, it
shall be surrendered to the Bond Registrar (with, if the Issuer
or Bond Registrar so requires, a written instrument of transfer
in form satisfactory to the Issuer and Bond Registrar duly
executed by the Holder thereof or his, her or its attorney duly
authorized in writing) and the Issuer shall execute (if
necessary) and the Bond Registrar shall authenticate and deliver
to the Holder of such Bond, without service charge, a new Bond or
Bonds of the same series having the same stated maturity and
interest rate and of any authorized denomination or
denominations, as requested by such Holder, in aggregate
principal amount equal to and in exchange for the unredeemed
portion of the principal of the Bond so surrendered.
Issuance: Purpose: General Obliqation. This Bond is
one of an issue in the total principal amount of $800,000, ~ll of
like date of original issue and tenor, except as to number,
maturity, interest rate, denomination and redemption privilege,
which Bond has been issued pursuant to and in full conformity
with the Constitution and laws of the State of Minnesota and
266190.1
8
pursuant to a resolution adopted by the city council of the
Issuer on June 20 1994 (the "Resolution"), for the purpose of
~~;;~e;~;n~~n:lt~~nf~~:nj~ti~Xl~~t~~~~~t~~~ ~;s~:~:ou;hiS Bond is
payable out of the General Obligation Improvement Bonds of 1994
Fund of the Issuer. This Bond constitutes a general obligation
of the Issuer, and to provide moneys for the prompt and full
payment of its principal, premium, if any, and interest when the
same become due, the full faith and credit and taxing powers of
the Issuer have been and are hereby irrevocably pledged.
Denominations: Exchanae: Resolution. The Bonds are
issuable solely as fully registered bonds in the denominations of
$5,000 and integral multiples thereof of a single maturity and
are exchangeable for fully registered Bonds of other authorized
denominations in equal aggregate principal amounts at the
principal office of the Bond Registrar, but only in the manner
and subject to the limitations provided in the Resolution.
Reference is hereby made to the Resolution for a description of
the rights and duties of the Bond Registrar. Copies of the
Resolution are on file in the principal office of the Bond
Registrar.
Transfer. This Bond is transferable by the Holder in
person or by his, her or its attorney duly authorized in writing
at the principal office of the Bond Registrar upon presentation
and surrender hereof to the Bond Registrar, all subject to the
terms and conditions provided in the Resolution and to reasonable
regulations of the Issuer contained in any agreement with the
Bond Registrar. Thereupon the Issuer shall execute and the Bond
Registrar shall authenticate and deliver, in exchange for this
Bond, one or more new fully registered Bonds in the name of the
transferee (but not registered in blank or to "bearer" or similar
designation), of an authorized denomination or denominations, in
aggregate principal amount equal to the principal amount of this
Bond, of the same maturity and bearing interest at the same rate.
Fees UDon Transfer or Loss. The Bond Registrar may
require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or
exchange of this Bond and any legal or unusual costs regarding
transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and Bond
Registrar may treat the person in whose name this Bond is
registered as the owner hereof for the purpose of receiving
payment as herein provided (except as otherwise provided on the
reverse side hereof with respect to the Record Date) and for all
other purposes, whether or not this Bond shall be overdue, and
neither the Issuer nor the Bond Registrar shall be affected by
notice to the contrary.
266190.1
9
,
..
Authentication. This Bond shall not be valid or become
obligatory for any purpose or be entitled to any security unless
the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
Oualified Tax-Exempt Obligation. This Bond has been
designated by the Issuer as a "qualified tax-exempt obligation"
for purposes of Section 265(b) (3) of the Internal Revenue Code of
1986, as amended.
ABBREVIATIONS
The following abbreviations, when used in the inscription on
the face of this Bond, shall be construed as though they were
written out in full according to applicable laws or regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship
and not as tenants in common
UTMA - as custodian for
(Cust) (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used
though not in the above list.
266190.1
10
ASSIGNMENT
For value received, the undersigned hereby sells,
assigns and transfers unto
the within Bond and does
hereby irrevocably constitute and appoint
attorney to transfer the Bond on the books kept for the
registration thereof, with full power of substitution in the
premises.
Dated:
Notice:
The assignor's signature to this
assignment must correspond with the name
as it appears upon the face of the
within Bond in every particular, without
alteration or any change whatever.
signature Guaranteed:
signature(s) must be guaranteed by a national bank or trust
company or by a brokerage firm having a membership in one of the
major stock exchanges or any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad-15(a) (2).
The Bond Registrar will not effect transfer of this Bond
unless the information concerning the transferee requested below
is provided.
Name and Address:
(Include information for all joint owners
if the Bond is held by joint account.)
266190.1
11
_.~.,.,<... ......^......._"'~.M~'''.'_,.,.......... ..."...~"_.."'-"._.~"""~"...".^,.,....._.......,"..-...,j...-..~,_.~",,.~"""'-
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8. Execution: TemDorary Bonds. The Bonds shall be
executed on behalf of the City by the signatures of its Mayor and
Manager and be sealed with the seal of the City; provided,
however, that the seal of the City may be a printed facsimile;
and provided further that both of such signatures may be printed
facsimiles and the corporate seal may be omitted on the Bonds as
permitted by law. In the event of disability or resignation or
other absence of either such officer, the Bonds may be signed by
the manual or facsimile signature of that officer who may act on
behalf of such absent or disabled officer. In case either such
officer whose signature or facsimile of whose signature shall
appear on the Bonds shall cease to be such officer before the
delivery of the Bonds, such signature or facsimile shall
nevertheless be valid and sufficient for all purposes, the same
as if he or she had remained in office until delivery. The City
may elect to deliver, in lieu of printed definitive bonds, one or
more typewritten temporary bonds in substantially the form set
forth above, with such changes as may be necessary to reflect
more than one maturity in a single temporary bond. Such
temporary bonds may be executed with photocopied facsimile
signatures of the Mayor and Manager. Such temporary bonds shall,
upon the printing of the definitive bonds and the execution
thereof, be exchanged therefor and canceled.
9. Authentication. No Bond shall be valid or
obligatory for any purpose or be entitled to any security or
benefit under this resolution unless a Certificate of
Authentication on such Bond, substantially in the form
hereinabove set forth, shall have been duly executed by an
authorized representative of the Bond Registrar. Certificates of
Authentication on different Bonds need not be signed by the same
person. The Bond Registrar shall authenticate the signatures of
officers of the City on each Bond by execution of the Certificate
of Authentication on the Bond and by inserting as the date of
registration in the space provided the date on which the Bond is
authenticated, except that for purposes of delivering the
original Bonds to the Purchaser, the Bond Registrar shall insert
as a date of registration the date of original issue, which date
is August 1, 1994. The Certificate of Authentication so executed
on each Bond shall be conclusive evidence that it has been
authenticated and delivered under this resolution.
10. Registration: Transfer: Exchanqe. The City will
cause to be kept at the principal office of the Bond Registrar a
bond register in which, subject to such reasonable regulations as
the Bond Registrar may prescribe, the Bond Registrar shall
provide for the registration of Bonds and the registration of
transfers of Bonds entitled to be registered or transferred as
herein provided.
Upon surrender for transfer of any Bond at the
principal office of the Bond Registrar, the City shall execute
(if necessary), and the Bond Registrar shall authenticate, insert
266190.1
12
the date of registration (as provided in paragraph 9) of, and
deliver, in the name of the designated transferee or transferees,
one o~ mo~e new Bond~ of a~;Yi~,,~~llq.F4,~ed. denomination or
denom~nat~ons of a l~ke aggregate'pr~nc~pal amount, having the
same stated maturity and interest rate, as requested by the
transferor; provided, however, that no Bond may be registered in
blank or in the name of "bearer" or similar designation.
At the option of the Holder, Bonds may be exchanged for
Bonds of any authorized denomination or denominations of a like
aggregate principal amount and stated maturity, upon surrender of
the Bonds to be exchanged at the principal office of the Bond
Registrar. Whenever any Bonds are so surrendered for exchange,
the city shall execute (if necessary), and the Bond Registrar
shall authenticate, insert the date of registration of, and
deliver the Bonds which the Holder making the exchange is
entitled to receive.
All Bonds surrendered upon any exchange or transfer
provided for in this resolution shall be promptly canceled by the
Bond Registrar and thereafter disposed of as directed by the
city.
All Bonds delivered in exchange for or upon transfer of
Bonds shall be valid general obligations of the City evidencing
the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or
transfer.
Every Bond presented or surrendered for transfer or
exchange shall be duly endorsed or be accompanied by a written
instrument of transfer, in form satisfactory to the Bond
Registrar, duly executed by the Holder thereof or his, her or its
attorney duly authorized in writing.
The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable
in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable
regulations of the city contained in any agreement with the Bond
Registrar, including regulations which permit the Bond Registrar
to close its transfer books between record dates and payment
dates. The Manager is hereby authorized to negotiate and execute
the terms of said agreement.
11. Riahts UDon Transfer or Exchanae. Each Bond
delivered upon transfer of or in exchange for or in lieu of any
other Bond shall carryall the rights to interest accrued and
unpaid, and to accrue, which were carried by such other Bond.
266190.1
13
"T_"'_'_"""'~ "." .,..._..,_",_...,...,.~..,,,,.,,_..,.._,"~_"._""'_'""'""~"'"',".. - l' ,..----...,-..,-..,-.,.-,~~"'.........'"'......,,-~..
I
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12. Interest PaYment: Record Date. Interest on any
Bond shall be paid on each Interest Payment Date by check or
draft mailed to the person in whose name the Bond is registered
(the "Holder") on the registration books of the City maintained
by the Bond Registrar and at the address appearing thereon at the
close of business on the fifteenth (15th) day of the calendar
month next preceding such Interest Payment Date (the "Regular
Record Date"). Any such interest not so timely paid shall cease
to be payable to the person who is the Holder thereof as of the
Regular Record Date, and shall be payable to the person who is
the Holder thereof at the close of business on a date (the
"Special Record Date") fixed by the Bond Registrar whenever money
becomes available for payment of the defaulted interest. Notice
of the Special Record Date shall be given by the Bond Registrar
to the Holders not less than ten (10) days prior to the Special
Record Date.
13. Treatment of Reqistered Owner. The City and Bond
Registrar may treat the person in whose name any Bond is
registered as the owner of such Bond for the purpose of receiving
payment of principal of and premium, if any, and interest
(subject to the payment provisions in paragraph 12 above) on,
such Bond and for all other purposes whatsoever whether or not
such Bond shall be overdue, and neither the City nor the Bond
Registrar shall be affected by notice to the contrary.
14. Deliverv: AD~lication of Proceeds. The Bonds when
so prepared and executed shall be delivered by the Finance
Director to the Purchaser upon receipt of the purchase price, and
the Purchaser shall not be obliged to see to the proper
application thereof.
15. Fund and Accounts. There is hereby created a
special fund to be designated the "General Obligation Improvement
Bonds of 1994 Fund" (the "Fund") to be administered and
maintained by the Finance Director as a bookkeeping account
separate and apart from all other funds maintained in the
official financial records of the City. The Fund shall be
maintained in the manner herein specified until all of the Bonds
and the interest thereon have been fully paid. There shall be
maintained in the Fund two (2) separate accounts, to be
designated the "Construction Account" and "Debt Service Account",
respectively.
(i) Construction Account. To the Construction Account
there shall be credited the proceeds of the sale of the Bonds,
less accrued interest received thereon, and less capitalized
interest in the amount of $ (together with interest
earnings thereon and subject to such other adjustments as are
appropriate to provide sufficient funds to pay interest due on
the Bonds on or before December 1, 1994), plus any special
assessments levied with respect to the Improvements and collected
prior to completion of the Improvements and payment of the costs
266190.1
14
thereof. From the Construction Account there shall be paid all
costs and expenses of making the Improvements listed in paragraph
16, including the cost o~ 'l'\Yt1tQ~nll;J:':uction 70ntracts heretofore
let and all other costs ~ncurredand to be ~ncurred of the kind
authorized in Minnesota statutes, Section 475.65; and the moneys
in said account shall be used for no other purpose except as
otherwise provided by law; provided that the proceeds of the
Bonds may also be used to the extent necessary to pay interest on
the Bonds due prior to the anticipated date of commencement of
the collection of taxes or special assessments herein levied or
covenanted to be levied; and provided further that if upon
completion of the Improvements there shall remain any unexpended
balance in the Construction Account, the balance (other than any
special assessments) may be transferred by the Council to the
fund of any other improvement instituted pursuant to Minnesota
Statutes, Chapter 429, and provided further that any special
assessments credited to the Construction Account shall only be
applied towards payment of the costs of the Improvements upon
adoption of a resolution by the City Council determining that the
application of the special assessments for such purpose will not
cause the city to no longer be in compliance with Minnesota
statutes, Section 475.61, Subdivision 1.
(ii) Debt Service Account. There are hereby irrevocably
appropriated and pledged to, and there shall be credited to, the
Debt Service Account: (a) all collections of special assessments
herein covenanted to be levied with respect to the Improvements
and either initially credited to the Construction Account and not
already spent as permitted above and required to pay any
principal and interest due on the Bonds or collected subsequent
to the completion of the Improvements and payment of the costs
thereof; (b) all accrued interest received upon delivery of the
Bonds; (c) capitalized interest in the amount of $
(together with interest earnings thereon and subject to such
other adjustments as are appropriate to provide sufficient funds
to pay interest due on the Bonds on or before December 1, 1994);
(d) any collections of all taxes herein or hereafter levied for
the payment of the Bonds and interest thereon; (e) all funds
remaining in the construction Account after completion of the
Improvements and payment of the costs thereof, not so transferred
to the account of another improvement; (f) all investment
earnings on funds held in the Debt Service Account; and (g) any
and all other moneys which are properly available and are
appropriated by the governing body of the City to the Debt
Service Account. The Debt Service Account shall be used solely
to pay the principal and interest and any premiums for redemption
of the Bonds and any other general obligation bonds of the City
hereafter issued by the City and made payable from said account
as provided by law.
No portion of the proceeds of the Bonds shall be used
directly or indirectly to acquire higher yielding investments or
to replace funds which were used directly or indirectly to
266190.1
15
........_,_~.~_...~,.~_._~~.,. .,_, . '_'''''_'"'''''''''''_'''''''''.'~'_'"''_____''_'"_."'__'~~~..,~__...~.....__,.."_..,,,,A'_'"'_""""""'""'~~''^'''''~'''~''''''''''''"'~..'"
1
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acquire higher yielding investments, except (1) for a reasonable
temporary period until such proceeds are needed for the purpose
for which the Bonds were issued and (2) in addition to the above
in an amount not greater than the lesser of five percent (5t) of
the proceeds of the Bonds or $100,000. To this effect, any
proceeds of the Bonds and any sums from time to time held in the
Construction Account or Debt Service Account (or any other City
account which will be used to pay principal or interest to become
due on the bonds payable therefrom) in excess of amounts which
under then-applicable federal arbitrage regulations may be
invested without regard to yield shall not be invested at a yield
in excess of the applicable yield restrictions imposed by said
arbitrage regulations on such investments after taking into
account any applicable "temporary periods" or "minor portion"
made available under the federal arbitrage regulations. Money in
the Fund shall not be invested in obligations or deposits issued
by, guaranteed by or insured by the United States or any agency
or instrumentality thereof if and to the extent that such
investment would cause the Bonds to be "federally guaranteed"
within the meaning of Section 149(b) of the Internal Revenue Code
of 1986, as amended (the "Code").
16. Assessments. It is hereby determined that no less
than twenty percent (20%) of the cost to the City of each
Improvement financed hereunder within the meaning of Minnesota
Statutes, Section 475.58, Subdivision 1(3), shall be paid by
special assessments to be levied against every assessable lot,
piece and parcel of land benefitted by any of the Improvements.
The City hereby covenants and agrees that it will let all
construction contracts not heretofore let within one (1) year
after ordering each Improvement financed hereunder unless the
resolution ordering the Improvement specifies a different time
limit for the letting of construction contracts. The City hereby
further covenants and agrees that it will do and perform as soon
as they may be done all acts and things necessary for the final
and valid levy of such special assessments, and in the event that
any such assessment be at any time held invalid with respect to
any lot, piece or parcel of land due to any error, defect, or
irregularity in any action or proceedings taken or to be taken by
the City or the City Councilor any of the City officers or
employees, either in the making of the assessments or in the
performance of any condition precedent thereto, the City and the
City Council will forthwith do all further acts and take all
further proceedings as may be required by law to make the
assessments a valid and binding lien upon such property. The
special assessments have not heretofore been authorized, and
accordingly, for purposes of Minnesota Statutes, Section 475.55,
Subdivision 3, the special assessments are hereby authorized.
Subject to such adjustments as are required by conditions in
existence at the time the assessments are levied, the assessments
are hereby authorized and it is hereby determined that the
assessments shall be payable in equal, consecutive, annual
installments, with general taxes for the years shown below and
266190.1
16
with interest on the declining balance of all such assessments at
a rate per annum not greater than the maximum permitted by law
and not less than , per annum:
Improvement
Oesianation
Amount
Levy Years
Collection
Years
$330,000
1994-2003
1995-2004
At the time the assessments are in fact levied the City
Council shall, based on the then-current estimated collections of
the assessments, make any adjustments in any ad valorem taxes
required to be levied in order to assure that the City continues
to be in compliance with Minnesota statutes, Section 475.61,
Subdivision 1.
17. Tax Levv: Coveraae Test. To provide moneys for
payment of the principal and interest on the Bonds there is
hereby levied upon all of the taxable property in the City a
direct annual ad valorem tax which shall be spread upon the tax
rolls and collected with and as part of other general property
taxes in the City for the years and in the amounts as follows:
Year of Tax
Levy
Year of Tax
Collection
Amount
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
$
The tax levies are such that if collected in full they,
together with estimated collections of special assessments and
other revenues herein pledged for the payment of the Bonds, will
produce at least five percent (5'> in excess of the amount needed
to meet when due the principal and interest payments on the
Bonds. The tax levies shall be irrepealable so long as any of
the Bonds are outstanding and unpaid, provided that the City
reserves the right and power to reduce the levies in the manner
and to the extent permitted by Minnesota Statutes, Section
475.61, Subdivision 3.
18. Defeasance. When all Bonds have been discharged
as provided in this paragraph, all pledges, covenants and other
rights granted by this resolution to the registered holders of
the Bonds shall, to the extent permitted by law, cease. The City
may discharge its obligations with respect to any Bonds which are
due on any date by irrevocably depositing with the Bond Registrar
on or before that date a sum sufficient for the payment thereof
in full; or if any Bond should not be paid when due, it may
266190.1
17
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nevertheless be discharged by depositing with the Bond Registrar
a sum sufficient for the payment thereof in full with interest
accrued to the date of such deposit. The City may also discharge
its obligations with respect to any prepayable Bonds called for
redemption on any date when they are prepayable according to
their terms, by depositing with the Bond Registrar on or before
that date a sum sufficient for the payment thereof in full,
provided that notice of redemption thereof has been duly given.
The City may also at any time discharge its obligations with
respect to any Bonds, subject to the provisions of law now or
hereafter authorizing and regulating such action, by depositing
irrevocably in escrow, with a suitable banking institution
qualified by law as an escrow agent for this purpose, cash or
securities described in Minnesota statutes, section 475.67,
Subdivision 8, bearing interest payable at such times and at such
rates and maturing on such dates as shall be required, without
regard to sale and/or reinvestment, to pay all amounts to become
due thereon to maturity or, if notice of redemption as herein
required has been duly provided for, to such earlier redemption
date.
19. ComDliance with Reimbursement Bond Regulations.
The provisions of this paragraph are intended to establish and
provide for the City's compliance with United states Treasury
Regulations section 1.150-2 (the "Reimbursement Regulations")
applicable to the "reimbursement proceeds" of the Bonds, being
those portions thereof which will be used by the City to
reimburse itself for any expenditure which the City paid or will
have paid prior to the Closing Date (a "Reimbursement
Expenditure").
The city hereby certifies and/or covenants as follows:
(a)
266190.1
Not later than 60 days after the date of payment of a
Reimbursement ,Expenditure, the City (or person
designated to do so on behalf of the City) has made or
will have made a written declaration of the City's
official intent (a "Declaration") which effectively (i)
states the City's reasonable expectation to reimburse
itself for the payment of the Reimbursement Expenditure
out of the proceeds of a subsequent borrowing; (ii)
gives a general and functional description of the
property, project or program to which the Declaration
relates and for which the Reimbursement Expenditure is
paid, or identifies a specific fund or account of the
City and the general functional purpose thereof from
which the Reimbursement Expenditure was to be paid
(collectively the "Project"); and (iii) states the
maximum principal amount of debt expected to be issued
by the City for the purpose of financing the Project;
provided, however, that no such Declaration shall
necessarily have been made with respect to: (i)
"preliminary expenditures" for the project, defined in
the Reimbursement Regulations to include engineering or
architectural, surveying and soil testing expenses and
similar prefatory costs, which in the aggregate do not
18
exceed 20' of the "issue price" of the Bonds, and (ii)
a de minimis amount of Reimbursement Expenditures not
in excess of the lesser of $100,000 or 5' of the
proceeds of the .~8~~,.'f.n~itw~ thstanding the foregoing,
with respect to a.tlY~~LJ~a'tatlon made by the City
between January 27, 1992 and June 30, 1993, with
respect to a Reimbursement Expenditure made prior to
March 2, 1992, the City hereby represents that there
exists objective evidence, that at the time the
Expenditure was paid the City expected to reimburse the
cost thereof with the proceeds of a borrowing (taxable
or tax-exempt) and that expectation was reasonable.
(b) Each Reimbursement Expenditure is a capital expenditure
or a cost of issuance of the Bonds or any of the other
types of expenditures described in Section 1.150-
2{d) (3) of the Reimbursement Regulations.
(c) The "reimbursement allocation" described in the
Reimbursement Regulations for each Reimbursement
Expenditure shall and will be made forthwith following
(but not prior to) the issuance of the Bonds and in all
events within the period ending on the date which is
the later of three years after payment of the
Reimbursement Expenditure or one year after the date on
which the Project to which the Reimbursement
Expenditure relates is first placed in service.
(d) Each such reimbursement allocation will be made in a
writing that evidences the City'S use of Bond proceeds
to reimburse the Reimbursement Expenditure and, if made
within 30 days after the Bonds are issued, shall be
treated as made on the day the Bonds are issued.
Provided, however, that the City may take action contrary to any
of the foregoing covenants in this paragraph 19 upon receipt of
an opinion of its Bond Counsel for the Bonds stating in effect
that such action will not impair the tax-exempt status of the
Bonds.
20. General Obliaation Pledae. For the prompt and
full payment of the principal and interest on the Bonds, as the
same respectively become due, the full faith, credit and taxing
powers of the City shall be and are hereby irrevocably pledged.
If the balance in the Debt Service Account is ever insufficient
to pay all principal and interest then due on the Bonds and any
other bonds payable therefrom, the deficiency shall be promptly
paid out of any other funds of the City which are available for
such purpose, and such other funds may be reimbursed with or
without interest from the Debt Service Account when a sufficient
balance is available therein.
21. certificate of Reaistration. The Manager is
hereby directed to file a certified copy of this resolution with
the County Auditor of Scott County, Minnesota, together with such
other information as he or she shall require, and to obtain the
266190.1
19
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,
.'
County Auditor's certificate that the Bonds have been entered in
the County Auditor's Bond Register, and that the tax levy
required by law has been made.
22. Records and certificates. The officers of the
City are hereby authorized and directed to prepare and furnish to
the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and
records of the City relating to the Bonds and to the financial
condition and affairs of the City, and such other affidavits,
certificates and information as are required to show the facts
relating to the legality and marketability of the Bonds as the
same appear from the books and records under their custody and
control or as otherwise known to them, and all such certified
copies, certificates and affidavits, including any heretofore
furnished, shall be deemed representations of the City as to the
facts recited therein.
23. Negative Covenant as to Use of Proceeds and
Improvements. The City hereby covenants not to use the proceeds
of the Bonds or to use the Improvements, or to cause or permit
them to be used, or to enter into any deferred payment
arrangements for the cost of the Improvements, in such a manner
as to cause the Bonds to be "private activity bonds" within the
meaning of Sections 103 and 141 through 150 of the Code.
24. Tax-Exempt status of the Bonds: Rebate. The City
shall comply with requirements necessary under the Code to
establish and maintain the exclusion from gross income under
Section 103 of the Code of the interest on the Bonds, including
without limitation (1) requirements relating to temporary periods
for investments, (2) limitations on amounts invested at a yield
greater than the yield on the Bonds, and (3) the rebate of excess
investment earnings to the United states if the Bonds (together
with other obligations reasonably expected to be issued and
outstanding at one time in this calendar year) exceed the
small-issuer exception amount of $5,000,000.
For purposes of qualifying for the exception to the
federal arbitrage rebate requirements for governmental units
issuing $5,000,000 or less of bonds, the City hereby finds,
determines and declares that (1) the Bonds are issued by a
governmental unit with general taxing powers, (2) no Bond is a
private activity bond, (3) ninety-five percent (95%) or more of
the net proceeds of the Bonds are to be used for local
governmental activities of the City (or of a governmental unit
the jurisdiction of which is entirely within the jurisdiction of
the City), and (4) the aggregate face amount of all tax-exempt
bonds (other than private activity bonds) issued by the City (and
all subordinate entities thereof, and all entities treated as one
issuer with the City) during the calendar year in which the Bonds
are issued and outstanding at one time is not reasonably expected
to exceed $5,000,000, all within the meaning of Section
148(f) (4) (D) of the Code.
266190.1
20
25. Designation of Qualified Tax-ExemDt Obligations.
In order to qualify the. Bonds as "qualified tax-exempt
obligationa" within the meaning of Section 265(b) (3) of the Code,
the City hereby makes the following factual statements and
representations: "'?'r.~i,.";~,.";~,,
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as
defined in Section 141 of the Code;
(c) the City hereby designates the Bonds as
"qualified tax-exempt obligations" for purposes of
Section 265(b)(3) of the Code;
(d) the reasonably anticipated amount of
tax-exempt obligations (other than private activity
bonds, treating qualified 501(c) (3) bonds as not being
private activity bonds) which will be issued by the
City (and all entities treated as one issuer with the
City, and all subordinate entities whose obligations
are treated as issued by the City) during this calendar
year 1994 will not exceed $10,000,000; and
(e) not more than $10,000,000 of obligations
issued by the City during this calendar year 1994 have
been designated for purposes of Section 265(b) (3) of
the Code.
The City shall use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate
the designation made by this paragraph.
26. Severability. If any section, paragraph or
provision of this resolution shall be held to be invalid or
unenforceable for any reason, the invalidity or unenforceability
of such section, paragraph or provision shall not affect any of
the remaining provisions of this resolution.
27. Headinas. Headings in this resolution are
included for convenience of reference only and are not a part
hereof, and shall not limit or define the meaning of any
provision hereof.
266190.1
21
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The motion for the adoption of
was duly seconded by member
discussion thereof and upon a vote
following voted in favor thereof:
the foregoing resolution
and, after a full
being taken thereon, the
and the following voted against the same:
Whereupon said resolution was declared duly passed and
adopted.
266190.1
22
STATE OF MINNESOTA
COUNTY OF SCOTT
CITY OF PRIOR LAKE
I, the undersigned, being the duly qualified and acting
Manager of the city of Prior Lake, Minnesota, DO. HEREBY CERTIFY
that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that
the same is a full, true and complete transcript of the minutes
of a meeting of the City Council of said City, duly called and
held on the date therein indicated, insofar as such minutes
relate to authorizing the issuance of, and awarding the sale of,
$800,000 General Obligation Improvement Bonds of 1994 of said
City.
WITNESS my hand and the seal of said City this 20th day
of June, 1994.
Manager
( SEAL)
266190.1
23
,
.'