HomeMy WebLinkAbout86-003The Council then proceeded to consider and discus
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the bids,; after which member Fitzscrald introduced
the following resolution and moved its adoption:
RESOLUTION 86 -03
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RESOLUTION ACCEPTING BID ON SALE OF
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$3 GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1986
PROVIDING FOR THEIR ISSUANCE AND LEVYING
A TAX FOR THE PAYMENT THEREOF
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BE IT RESOLVED by the Council of the City of Prior
Lake, Minnesota, as follows:
1 The bid of Merrill Lynch Capital Markets (the
"Purchaser ") to purchase $3,450,000 General Obligation
°
Improvement Bonds of 1986 of the City (hereinafter referred to
as "Bonds" or individually as "Bond "), in accordance with the
notice of bond sale, at the rates of interest hereinafter set
forth, and to pay therefor the sum of $ 3,385,485.00 , plus
interest accrued for settlement hereby found, determined and
declared be the most favorable bid received and is hereby
accepted, and the Bonds are hereby awarded to said bidder. The
City Manager is directed to retain the deposit of said bidder
and to forthwith, return the good faith checks, or drafts to the
unsuccessful bidders.
2. The Bonds shall be dated February 1 1986, as the
date of original issue and shall be issued forthwith as fully
regis'tered bonds. The Bonds shall be numbered from-R-1 upward
in the denomination of $5,000 each or in any int egral multiple
thereof. The Bonds shal'1 mature on December 1 in the years and
amounts as follows:
1987 $100,000
1988- 1997 $200,000`"
1998 -2006 $150,000
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3. The Bonds shall provide funds for the construe-
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tion of various improvements (the' "Improvements ")'irk the City.
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The tots) cost of the Improvements, which shall include all
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costs enumerated in Minnesota Statutes, Section 475.65, is
estimated to be at least equal to the amount of the Bonds
or
herein authorized. Work on the Improvements shall proceed with
due diligence to completion.
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4.. The Bonds shall bear interest payable 'semi -�
annually on June l and December 1 of each year commencing,
December 1,,1986 at the respective rates per annum set forth
opposite the maturity years as follows:
G
Maturity Years Interest Rate °
1987 7.00% j
1988 7.00 °
1989 Z00
,. 1990 7.10 no
1991 7.00
1992 7.00
1993 7. OP
1994
(V 7.00
1995 7.10
1996 7.20 r
1997 7.30
1998 7.40
1999 7.50
2000 7.60
2001 7.70
2002 7.75
X 2003 7.$0, i� n
2004 7.80" ,
2005 7.90/ =
2006 7 7:90
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S. All Bonds of this issue maturing in the' Vears °
1995 to 2006, bothAnclusive, shall be subject to redemption f
and .prepayment at the option of the City',onADecember 1, 1994
and on any interest payment date thereafter at par and 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 ifqonly part of'`the;/Bonds having a common `
maturity date care called for prepayment, the specific Bonds to
be prepaid shall be chosen by lot by�f he
E Registrar.
Published notice of redemption fpihal1 ,in ach case be given in
accordance with law, aid' mailed notice of "redemption shallbe °
given to the paying agent and to each registered holder of the
Bonds. d ;
To effect a partial redemption of Bondi having. a com
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mon maturity date, the Bond Registrar prior to vrvring notice of
redemption, shall assign to iach Bond having a//" maturity !
date)a distinctive number for each $5,000 o the principal
amount of,, such Bond. The Bond Registrae sh li then select by
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lot;- using such method of selection as it, shall deem proper in
its discretion; numbers so assigned to such Bonds, as, many
numbers as, at $5,000 for eactk number, shall equal the
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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 A
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_ _shall be redeemed as stall equal $ 5 , O'C1:0 for each number
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assigned to it and so selected. If aBond is to be redeemed
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only in part, it shall jhe surrendered to the Bond Registrar
(with, if the City or t� Bond Registrar so requires,, a written
instrument of transfer T.n form satisfactory to the City and the
Bond Registrar duly executed by the holder thereof or>his
attorney duly authorized in writing) and the G'ty shall execute
and,, the< Bond Registrar shall authenticate ar4 deliver to the
holder of such Bond, without service charge,"o new Bond" or
Bonds of the same series, having the saute stated maturity and
interest 'rate and of any authorized denomination or
denominations, as requested,by such holder,- in aggregate
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principal amount equal to and in exchange for'the unredeemed
portion of,the principal of the Bond so surrendered.,"
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6 • Ngj Bank Minneapolis. N/A r , in Mi nnea of is ,
Minnesota is':appointed to registrar and er
agent, (the 'Bond; Registrar " -1 and shall do so unless and a `
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,until
successor Bond Regstrar,is duly appointed, all pursuant to any
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contract the City °and Bond Registrai shall execute which is
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consistent herewith. The Bodd Registrar shall serve as
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paying agent unless and until a successor paying agent is duly
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- appointed. Principal and interest on the 'Bonds'stiall be paid
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to the registered holders (or record holden) of the Bonds in
the manner set. forth is the form of Bond ar',�>i�
� d paragrap °12 of
this resolution. ,
1 7. The Bonds to be ,issued hereunder, together with Y
Ithe Bond Registrar Certificate of Authentication, the form of
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Assient,and the registration information thereon shall be in
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�aJbs'.ant ally the following form:
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UNITED STATES OF AMERICA
STATE OF MINNESOTA
SCOTT COUNTY`"
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CITY OF PRIOR LAKE
$
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GENERAL OBLIGATION IMPROVEMENT
BOND OF 0 1986
INTEREST MATURITY DATE OF
RATE DATE ORIGINAL ISSUE CUSIP
February A,
REGISTERED OWNER;
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PRINCIPAL AMOUNT:
KNOW ALL PERSONS BY THESE PRESENTS, that the City of
Prior Lake, Scott County, Minnesota (the "Issuer "), certifies
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that it is indebted and for value 'received promises to pay to
the registered owner specified above, or registered „assigns,,in
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the manner hereinafter set forth, the principal amount
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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 December 1, 1986 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
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from the most recent. Interest' Payment Date to which interest
has been paid or, if no interest has been"paid, from the date
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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 : , a
duly organized and
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validly existi un the laws o
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(the "Bond, Registr "), acting as paying Agent, or any
successor 7[aY � 9 in 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
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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,
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the close of business on a date (the "Special Record Date ")
fixed by,the'Rond. Registrar whenever money becomes available
for payment of the defaulted interest. Notice of the Special
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Record Date shall be given to Bondholders not less than ten
days prior to the Special Record Date. The principal of,and
premium, if any, and .interest on this Bond are payable in A .
lawful money;,of the United States of America.
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF o
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 HtREBY`CERTIFIED AND RECITED,that all acts,
conditions and things - required by the Constitution and laws of
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the State °of Minnesota to be done, to happen and to be
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Performed, precedent to and in the issuance of this-Bond, have
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been done, have happened and,have been performed, in regular
and "due form, t me,and mangler as .required by law, and this
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Bond, together {with all other debta of the Issuer outstanding-
on the`date of original issue hereof and`the date of
issuance and delivery to the original purchaser" =does not exceed '
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any constitutional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of Prior Lake, Scott
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County, Minnesota, by its City Council has caused this Bond to
be executed in its behalf by the facsimile signatures of the,
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Mayor and.the City Manager, the corporate seal of the Issuer
having,been,intentipnally omitted as permitted by law.
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Date oft Registr
Registrable by:
Payable -at:
Boub REGISTRAR'S
CITY OF-PRIOR LAKE,
CERTIFICATE`bF
SCOTT COUNTY, MINNES'O'TA
AUTHENTICATION
Thin Bond is one of the
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Bonds described in the
/ Facsimile
within fientidned
Mayor
Resolution,
lat Facsimile
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Manager
Bon _'R�gistrar
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Authorized S gnature
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ON REVERSE OF BOND
All Bonds of this issue maturing in the years 1995 to
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2006, both inclusive, are subject to redemption and prepayment
at the option of the Issuer on December 1, 1994 and on any
Interest Payment Date thereafter at par and accrued interest.
Redemption may be in whole or in part'of the Bonds Llubject 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
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date are called for prepayment, the specific Bonds to be
prepaid shall be chosen by lot by the Bond Registrar.
Published notice of redemption shall in each case be given in
accordance with law, and mailed notice of redemption shall be
given tp the paying agent and to the' Holders of the Bonds.
To effect a partial redemption of Bonds having a
common maturity date, the Bond Registrar shall assign to each
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Bond having a common maturity date, a distinctive number for
each $5,000 of the. principal amount of such Bond. The Bond:`
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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 the
Bond Registrar so requires, a written instrument of transfer in
form - satisfactory to the Issuer and the Bond Registrar duly
executed by the Holder thereof or his attorney duly authorized
in writing) and the Issuer shall execute and the Bond Registrar.
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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
Holde in aggregate principal amount equal to and in exchange
for the unredeemed portion of the principal of the Bond so
surrendered.
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This Bond is one of an issue in the total principal
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amoun t ,of $3,450,000 all of like date of original issue and
tenor, except as to number, maturity, interest rate,
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denomination and redemption privilege, which, Bond has been
issued pursuant to.ard full conformity with the Constitution
laws ?e
and of the Sta of�Minnesota and pursuant to a resolution
adopted by the City Coun6i,l on February 3, 1986 (the
"Resolution ") for the p)'Iapose of providing money to, finance the
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construction of variou4 improvements in the City and is payable
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out of the General Obll.gation Improvement Bonds of 1986 Fund of
the Issuer. This Bond constitutes a general obligation of the
Issuer, and to provide moneys for the prompt and.full payment
of the principal and interest when the same become due, the
full faith and credit and taxing - powers of`the Issuer have been
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and are hereby irrevocably pledged.
The Bonds are issuable solely as fully registered
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Bonds in the denominations of $5,000 and integral multiples
thereof and are exchangeable for fully registered Bonds of
other denominations in equal aggregate principal amounts and in
Authorized denominations 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
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fie in the principal office.of the Bond Registrar.
This Bond is transferable by the Holder in person or
by his attorney duly authorized in writing at the principal
office of the Bond Registrar upon presentation and surrender
hereof to the Bond Registrar, all sub to the terms and
conditions provided in the Resolution and to reasonable regula-
tions of the Issuer contained in any agreement with the Bond
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Registrar. Thereupon
g the Issuer Shall execute and the Bond`
Registrar shall authenticate and deliver,` 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,-An aggregate principal amount equal to "the
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cprincipal amount of this Bond, of the same maturity and bearing'
interest at the same rate.
The Bond Registrar may require payment of a sum
sgfficient to _cover any tax or other governmental charge
payable in connection with the transfer or exchange of this
Bond.
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The Issuer and the Bond Registrar may treat the
person °in whose name th]s 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.
This Bond shall not be valid or become obligatory for
any purpose or b4 entitled to any security unless the
Certificate of Authentication hereon shall have been executed
ti by the Bond Registrar.
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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
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regulations:'
TEN COIF! -'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
UNIF GIFT MIN ACT Custodian
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Cust) "(Minor
under uniform Gifts to Minors'
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Act
State
Additional abbreviations may also be used
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though not in the above list.
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:ASSIGNMENT
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For value - received, the undersigned hereby sells.,
assigns and transfers unto _
the within Bond and does
hereby irrevocably constitute and appoint
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attorney to transfer the'Bond on the books kept for the
registration thereof, with full power of substitution in the
premises.
Dated:
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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:
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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.
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The Bond Registrar will not effect transfer of this Bond
unless the °information concerning the <transferee requested'
below is provided.,
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Name and Address:
Include information for all joint. owners
if the Bond it held,,by joint account.)
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8. The Bonds shall be executed on behalf of the City
by the signatures of its Mayor and City Manager and be ,sealed
with the seal of the City;. provided, however, that the seal of
the City may be a printed facsimile; 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.
9. No Bond shall be valid or obligatory for any
' purpose or be entitled to any security or benefit under this
resolution unless and until 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
4 different Bonds need not be signed by the same person. The
Bond Registrar shall authenticate the signatures of officers of
Q the City ofi each Bond by execution of the,Certificate of
Authentication'on the Bond and by inserting as the date of ffa
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 February 1, 1986. The execute& Certificate of
Authentication on each Bond shall be conclusive evidence that
it „has been authenticated and delivered under this resolution.
10. The City will cause to be kept at the principal
° office 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 has 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 the date of registration (as provided in paragraph 9)
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and deliver, in the name of the designated transferee or
transferees, ono or more new Bonds of any authorized
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'denomination or denominations /of a like aggregate principal
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. j
At t, a option of the holder, Bonds may be exchanged
for Bonds of ai 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
exchaRegistrar. Whenever any Bonds are so surrendered
for exchange
,,the City shall execute (if cessary), 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 cancelled by
the Bond Registrar and thereafter disposed of as directed by
the City': t
All _Bonds delivered'in exchange for or upon transfer
v of Bonds shall be valid - general obligations -of the City
evidencing "the same debt, and entitled to the same benefits
s 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, inform satisfactory to the Bond „
Registrar, duly executed by,,the holder thereof or his 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 withthe transfer or exchange of any
Bond.
Transfers shall also be subject to reasonable regula
tions 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,
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11. Each `Bond delivered upon transfer of or in
exchange °'for or in lieu of any other Bond shall carry all the
rights to interest accrued and unpaid, and to accrue, which
were carried by such other Bond.
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12. Interest on any Bond shall be paid on each
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interest a ent date b check or draft mailed to the
P ym y 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 day of the calendar month next preceding'such-
interest payment date (the "Regular Record'Date "). Any such
interest not so timely paid shall'cea'se 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`thq Registrar whenever money becomes available
for payment of the defaulted interest -. Notice of the Special
Record bate shall be given by the Bond Registrar to the Holders
not.,less than 10 days prior to the Special Record Date.
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13. Tfte "City and the_ Bond Registrar may treat' the
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person in whose name any Bond is registered as the owner of `'
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such Bond for the purpose of receiving payment of principal rif
and premium, any, and interest (subject to the payment
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provisions-in paragraph 12'above) on, such Bond and for all
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other ;purposes whatsoever whether not such Bond shall be a
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overdue, and neither the City por the Bond Registrar shall be
affected by 'notice to the contrary.
14. The Bonds when so prepared and executes shall.,be.:
delivered by the City Finance Director to the Purchaser upon'"
receipt of the purchase price, and the Purchaser shall not be ;,
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obli,ged'to see to the proper application thereof.
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15.. Thera is hereby created'_ special fund tito be',
designated "General Obligation ,Improvement Bonds of 1986- Fund"
�t',inance
(the "Fund ") to be held and administered by i�he.Cit�,y
Director _separate and apart from all other fundi' of� the Cit.,
The >Fund'shall be maintained in the manner herein specified��
until all of the Bonds herein authorized and the �er�est
thereon have been fully "`paid. There "shal °l be maintained in ? the
Fund two separate accounts to be designated th'� ��� "Constr`6c tion ;vt
Account" and the "Debt Service Account ", respeztvely. Ii The
proceeds of the sale of the Bonds herein autho;�ized,.leis any
accrued interest received thereon, and less anSiI amount
paid for
the. Bonds in excess of $3,382,380, and less capitalized,
interest
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in, amount of $ 150.000 (;tacjethert� with interest
earnings thereon and subject to such other adjustments "as are
appropriate to provide _sufficient funds to pay i�xterest due on'��
the Bonds on or before August 1', 1986) plum any special
assessments levied with respect to Improvements financed ,by „' °
Bonds and collected prior to completion of the Improv aid'
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payment of the costs thereof, shall be credited to the
�s
Construction Account, from which there shall be paid'all costs
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and expenses of making the Improvements listed in paragraph 16,
j including the cost of any constructioi contracts heretofn're "let
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and .other costs incurred and to be incurred of the kind
authorizer',in, Minnesota Statutes,, Section 475.65; and the
Moneys in said account shall be used for no other purpose
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except as otlserwise provided by �aw;' provided that the Bond
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proceeds may also be used to the extent necessary ° to pay -
interest on the Bonds due prior to the snticipated'jAate of 4
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commencement of the collection of taxes' or ' special assessments
10.
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herein levied orcovPnanted to <belevied; and ,provided. = .further
that if upon completion of.,the Improvements there shall remain
am+ unexpended balance in the Construction Account, the balance=
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(other han 'any special as'aeasmu ts.) may be -transfers A'�by _'ch'�"
Council,D to • the fund 'of any 'other `''improvement instituted
pursuant to Minnesota Statutes, Chapter 429, and provided
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"further that any ;special assessments credited „�to the
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Construction,,Account are hereby pledged, and shall be= used -only
to pay principal and interest "due °`on the Bonds, `mere-is
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;hereby pledged and there ; shall be credited to the Debt Service
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Account (a) all collections of,,special assessments herein
covenanted to be levied and either initially credited to the
' Const�t ctiorf Account and• re uired to a an `. ' rinci al and in-
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tares,. due on the Bonds or collected subsequent to the cam -
pletion of the� and payment of the costs' thereof;
- d interest received upon deliver ,� f the Bonds;
{�) a-1-1 acc >ue in p y ,
(),all funds paid for the'Bonds in excess of $3,382,380; (d) =
capitalized 2nterest in the - amount. of $ 15Q„000 (together with
-
interest earniigs thereon and subject to such other adjustments,
as'aice appropriate to, provide sufficient funds` to pay interest
due on °the Bonds -on or' before August 1, 1986); {e) any
:
i:ollections of all taxes herein levied`for' the-payment of the"
Bonds and `interest thereon; (f) all funds remaining in the
Construction Account after completion of the Improvements and''
p payment of the costs thereof, not so transferred to the account,
-
of another improvement; and (g), all investment earnings on
funds held inthe Debt Service Account. The Debt Service
_.
Account her�'2in created shall be used solely to `pay the
principal and interest and any premiums for redemption 'of the;
Bonds issued hereunder and any other general obligation bonds
,,
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of the; City =hoteaFtEr iss�ied by the City and made payable from a
said account an provided by law. Any sums from time to time =
- -held in the Debt Service Account in e xcess of amounjts which
_. -- under the applicable federal `arbitrage regulations may be
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invested wi', riaut regard as to yield shall not be invested at a
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yield in excess of the applicable yield restrictions imposed by
said arbitrage regulations on such investments afterctaking
into account an applicable "temporary Y PP p y periods" made. available `
under the federal arbitrage regulations. In addition, money in
the Account 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 103(h) of the '
Internal Revenue Code of 1954, as amended.
6. It is hereby determined that no less than 20% of
the cori`tb'the City of each Improvement financed hereunder
" within the m ning of Minnesota Statutes, Section 475.58,
Subdivisigh 1(3) shall be paid by special assessments to be
levied aa'ainst every assessable lot, piece and parcel of land
benefited by the Improvements. The City hereby covenants -and
agrees that it will let all construction contracts not here-
tofore let within `one year after ordering each Improvement
financed hereunder unless the resolution ordering the
Improvement specifies a different time limit for the letting of
construction contracts and will do and perform as soon as they
may 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
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 this Council or any of the City officers or
employees, either in the making of the assessments or the
performance of any condition precedent thereto, the City and
this 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
a pecial assesments 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 adjustmenis 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 taxes for the
years shown below and with interest -onzthe declining balance of
all such assessments at a rate per annum not greater than the
maximum permitted by law and not less than gig per annum:
C'
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Improvement
Designation Amount
Levy-Years
Project 82 -3
worth Shore $1,900,000
1986 -2005
Project 86 -11
Street overlay 650,000'
1986 -1995.
Project 86 -12
Cates Street 50,000:
_ 1986 -4995 ,
At the time the assessments
are in fact levied the
City Council shall, based on-the then
current estimated,col-
lections of the asees,smenta, 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 I.
17. To provide moneys for payment of the
,k..
and interest onth• Bands there is hereby levied upon all of
the taxable property`in the City a direct annual Ad valorem tax
which shall be s read p 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.-=
1
!
Year.: of Tax Year of Tax
v .'
Levy Collection
Amount
1586 1987
` 60,000
aY i
+
1987 1988
60,000
1988 1989
65,000
1989 1990
70,000
1990. 1991
75,000
1991 1992
80,000 ° -
Y
1992 1993
90,000
1993 1994
95,006
r,.
1994 1995
100,000
1995 1996
110,000
' 1996 1997
125;000
j
...
1 1997 1998
Via` 100,000
1998 1999
100,000
t
1999 2000
95,000
,,
2000 2001
95,000
2001 2002
_ 95,000 `
2002 2003
90,000
2003 2004
90,000
J 2004 +2005
+ 85,000
17
„
i
The, -tax levies are such that if collected in full
they, together with estimated collections of special assess
ments and other revenues herein pledged for the payment of the
Bonds, will produce at leastofive percent in excess of the
amount needed to meet when due the principal and.interest
payments on the Bonds. The tax levies shall. b6 rxepealable `so
long as any of the Bonds are outstanding and unpaid, provided 4,
that the City - reserves the right and power to.,,redsce the levies,
in the manner and to the extent permitted by Minnesota
- Statutes, Section 475 .fit( 3.)
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 on the Bonds payable therefrom, the
deficiency shall oe promptly paid,out of any other funds of the'
City which are available for such purpose, and such other funds
s. may be reimbursed with or without interest from the Debt
+ Service,Account When a sufficient available therein.
18. The Manag,or is hereby directed to file a
certified copy of this esolution with the County Auditor of
Scott County, Minnesota, together with such other information '
as he shall require, and to obtain from the Auditor his
certificate that the .Bonds have been entered in the Auditor's
Bond Register, and that the tax levy required by has been,
made.
19. =The officers of the City are hereby authorized
and directed to prepare,and furnish'to the Purchaser of the
Bonds, and to the, attorneys approving thw legality of the
issuance thereof, 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 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 aw otherwise k nown: to them, and all such certified
copies, and affidavits, including any heretofore
(furnished, shall be deemed representations of the City as to
the facts recited therein.
20. On the date this resolution is adopted, H.R. 3838
(to be cited as the "Tax Reform Act of 1985 ") has been passed
by the United States House of Representatives and proposes new
rules applicable to bonds exempt from federal income taxation,
s
to be made ''retroactively effective for all _bonds issued on'
s,
.
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�r •• ���e: .r,�;v','::.�.- ��*+`+ax".� ,,. �.s:�.x � � >..rro.�..:�,:aa` v. T _ .t,..�.; ��
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after aanrary 1, 1986. Unless and,to the extent in the opinion
of 'bond counsel the following representations and covenants are
r" not necessary to maintain the tax.- exempt status of the Bonds,
the City represents and covenants, that the Improvements and
their use will not cause the Bonds to be nonessential function
bonds within the mean! „ng of H.R. 3838 and the City shall comply
with rules relating to"the Bonds to be imposed retroactivel§ in,
H.R. 3838 in the form adopted by the House on December 18,
1985, including without,. limitation rule& relating to temporary
periods for investments; limitations on amounts invested at a
yield'�'greater than 'the yield on the Bonds, the rebate of'oexcess
investment earnings to the United States., the expenditure of 51
of net °proceeds within thirty (30) days and of all net proceeds
within three (3) years, refunding bonds, and informational
repdrtinq. In addition, to the extent that H. 3838 (the - "Tax n,
Reform Act 19asw) is enacted in a different form and imposes
any other requirements retroactively eff«ctive to the time the
Bonds are issued, the City shall use its best efforts to meet
" such requirements, provided that in meeting such. requirements
f� the City will & so only to the extent consistent with the
purposes of this resolution, to the extent:�consistent; with the
laws of Minnesota, and to the extent that there,is a reasonable
period of time in whi to comply.
The motion for the; adoption of the foregoing
resolution was ,duly seconded,by member- White and
upon vote.beng taken thereon, the following voted in favor
thereof: a
Mayor Andren, CounciLeebers Atsse, FA*Serald, Scott and White,
and the following - again'st the. same.: None �
z. t
1h6reup6ikw "resolution was declared duly passed
and adopted: •�,, <,
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