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15-073 Bond Resolution 2015B
EXTRACTOFMINUTESOFAMEETINGOFTHE CITYCOUNCILOFTHE CITYOFPRIORLAKE,MINNESOTA HELD:April27,2015 Pursuanttoduecallandnoticethereof,aregularorspecialmeetingoftheCityCouncil oftheCityofPriorLake,ScottCounty,Minnesota,wasdulyheldattheCityHallonApril27, 2015,at7:00P.M.,forthepurpose,inpart,ofauthorizingtheissuanceandawardingthesaleof $2,490,000TaxableGeneralObligationBonds,Series2015B. Thefollowingmemberswerepresent:MayorHedbergandCouncilorsMcGuire, Keeney,MortonandThompson. andthefollowingwereabsent:None MemberThompsonintroducedthefollowingresolutionandmoveditsadoption: RESOLUTIONNO.15-073 RESOLUTIONPROVIDINGFORTHEISSUANCEANDSALEOF $2,490,000TAXABLEGENERALOBLIGATIONBONDS,SERIES2015B,PLEDGING SPECIALASSESSMENTSFORTHESECURITYTHEREOFANDLEVYINGATAXFOR THEPAYMENTTHEREOF A.WHEREAS,theCityCounciloftheCityofPriorLake,Minnesota(the"City"), hasheretoforedeterminedanddeclaredthatitisnecessaryandexpedienttoissue$2,490,000 TaxableGeneralObligationBonds,Series2015B(the"Bonds"orindividually,a"Bond"), pursuanttoMinnesotaStatutes,Chapter475and429andSection475.58,Subdivision3b,to financetheconstructionofvariouspublicimprovementswithintheCity(the"Improvements'),in theamountof$160,000(the"ImprovementPortionoftheBonds"),andtofinancestreet reconstructionimprovementsundertheCity'sStreetReconstructionPlan2015-2019,adopted August11,2014(the"StreetReconstructionImprovements")intheamountof$2,330,000(the "StreetReconstructionPortionoftheBonds"); B.WHEREAS,theImprovementsandalltheircomponentshavebeenorderedprior tothedatehereof,afterahearingthereonforwhichnoticewasgivendescribingthe Improvementsoralltheircomponentsbygeneralnature,estimatedcost,andareatobeassessed; and C.WHEREAS,onNovember10,2014,followingdulypublishednoticethereof,the Councilheldapublichearingontheissuanceofapproximately$6,157,000principalamountof bondstofinancetheStreetReconstructionImprovementsandallpersonswhowishedtospeakor providewritteninformationrelativetothepublichearingwereaffordedanopportunitytodoso; and 7000395v2 D.WHEREAS,nopetitionsignedbyvotersequalto5percentofthevotescastin theCityinthelastmunicipalgeneralelectionrequestingavoteontheissuanceoftheStreet ReconstructionPortionoftheBondshasbeenfiledwiththeCityManagerwithin30daysafter thepublichearingonNovember10,2014;and E.WHEREAS,theStreetReconstructionPortionoftheBonds,togetherwithany outstandingbondsoftheCitythataresubjecttotheCity’snetdebtlimit,donotexceedthe City’snetdebtlimit;and F.WHEREAS,itisinthebestinterestsoftheCitythattheBondsbeissuedinbook- entryformashereinafterprovided;and NOW,THEREFORE,BEITRESOLVEDbytheCityCounciloftheCityofPriorLake, Minnesota,asfollows: 1.AcceptanceofOffer.TheofferofNorthlandSecurities,Inc.(the"Purchaser"),to purchasetheBondsinaccordancewiththetermsandattheratesofinteresthereinaftersetforth, andtopaythereforthesumof$2,467,666.60,plusinterestaccruedtosettlement,ishereby confirmedandaccepted. 2.BondTerms. (a)OriginalIssueDate;Denominations;Maturities;TermBondOption.TheBonds shallbedatedMay1,2015,asthedateoforiginalissue,shallbeissuedforthwithonorafter suchdateinfullyregisteredform,shallbenumberedfromR-1upwardinthedenominationof $5,000eachorinanyintegralmultiplethereofofasinglematurity(the"Authorized Denominations")andshallmature,withoutoptionofprepayment,onDecember15intheyears andamountsasfollows: YearAmount 2016$280,000 2017230,000 2018650,000 2019355,000 2020210,000 2021315,000 2022450,000 Alldatesareinclusive. AsmayberequestedbythePurchaser,oneormoretermBondsmaybeissuedhaving mandatorysinkingfundredemptionandfinalmaturityamountsconformingtotheforegoing principalrepaymentschedule,andcorrespondingadditionsmaybemadetotheprovisionsofthe applicableBond(s). 2 7000395v2 (b)Allocation.TheImprovementPortionoftheBonds,beingtheaggregateprincipal amountof$160,000,maturingineachoftheyearsandamountshereinaftersetforth,isissuedto financetheImprovements.TheStreetReconstructionPortionoftheBonds,beingtheaggregate principalamountof$2,330,000,maturingineachoftheyearsandamountshereinaftersetforth, isissuedtofinancetheStreetReconstructionImprovements. ImprovementStreetReconstruction YearPortion(Amount)Portion(Amount)TotalAmount 2016$20,000$260,000$280,000 201720,000210,000230,000 201820,000630,000650,000 201925,000330,000355,000 202025,000185,000210,000 202125,000290,000315,000 202225,000425,000450,000 IfBondsareprepaid,theprepaymentsshallbeallocatedtotheportionsofdebtservice (andhenceallocatedtothepaymentofBondstreatedasrelatingtoaparticularportionofdebt service)asprovidedinthisparagraph.Ifthesourceofprepaymentmoneysisthegeneralfundof theCity,orothergenerallyavailablesource,theprepaymentmaybeallocatedtoanyofthe portionsofdebtserviceinsuchamountsastheCityshalldetermine.Ifthesourceofa prepaymentisspecialassessmentspledgedtoandtaxesleviedfortheImprovements,the prepaymentshallbeallocatedtotheImprovementPortionofdebtservice.Ifthesourceofa prepaymentistaxesleviedfortheStreetReconstructionImprovements,theprepaymentshallbe allocatedtotheStreetReconstructionPortionofdebtservice. (c)BookEntryOnlySystem.TheDepositoryTrustCompany,alimitedpurpose trustcompanyorganizedunderthelawsoftheStateofNewYorkoranyofitssuccessorsorits successorstoitsfunctionshereunder(the"Depository")willactassecuritiesdepositoryforthe Bonds,andtothisend: (i)TheBondsshallbeinitiallyissuedand,solongastheyremaininbook entryformonly(the"BookEntryOnlyPeriod"),shallatalltimesbeintheformofa separatesinglefullyregisteredBondforeachmaturityoftheBonds;andforpurposesof complyingwiththisrequirementunderparagraphs5and10,AuthorizedDenominations foranyBondshallbedeemedtobelimitedduringtheBookEntryOnlyPeriodtothe outstandingprincipalamountofthatBond. (ii)Uponinitialissuance,ownershipoftheBondsshallberegisteredinabond registermaintainedbytheBondRegistrar(ashereinafterdefined)inthenameofCEDE &CO.,asthenominee(itoranynomineeoftheexistingorasuccessorDepository,the "Nominee"). (iii)WithrespecttotheBondsneithertheCitynortheBondRegistrarshall haveanyresponsibilityorobligationtoanybroker,dealer,bank,oranyotherfinancial institutionforwhichtheDepositoryholdsBondsassecuritiesdepository(the 3 7000395v2 "Participant")orthepersonforwhichaParticipantholdsaninterestintheBondsshown onthebooksandrecordsoftheParticipant(the"BeneficialOwner").Withoutlimiting theimmediatelyprecedingsentence,neithertheCity,northeBondRegistrar,shallhave anysuchresponsibilityorobligationwithrespectto(A)theaccuracyoftherecordsofthe Depository,theNomineeoranyParticipantwithrespecttoanyownershipinterestinthe Bonds,or(B)thedeliverytoanyParticipant,anyOwneroranyotherperson,otherthan theDepository,ofanynoticewithrespecttotheBonds,includinganynoticeof redemption,or(C)thepaymenttoanyParticipant,anyBeneficialOwneroranyother person,otherthantheDepository,ofanyamountwithrespecttotheprincipalofor premium,ifany,orinterestontheBonds,or(D)theconsentgivenorotheractiontaken bytheDepositoryastheRegisteredHolderofanyBonds(the"Holder").Forpurposesof securingthevoteorconsentofanyHolderunderthisResolution,theCitymay,however, relyuponanomnibusproxyunderwhichtheDepositoryassignsitsconsentingorvoting rightstocertainParticipantstowhoseaccountstheBondsarecreditedontherecorddate identifiedinalistingattachedtotheomnibusproxy. (iv)TheCityandtheBondRegistrarmaytreatasanddeemtheDepositoryto betheabsoluteowneroftheBondsforthepurposeofpaymentoftheprincipalofand premium,ifany,andinterestontheBonds,forthepurposeofgivingnoticesof redemptionandothermatterswithrespecttotheBonds,forthepurposeofobtainingany consentorotheractiontobetakenbyHoldersforthepurposeofregisteringtransfers withrespecttosuchBonds,andforallpurposewhatsoever.TheBondRegistrar,as payingagenthereunder,shallpayallprincipalofandpremium,ifany,andinterestonthe BondsonlytotheHolderortheHoldersoftheBondsasshownonthebondregister,and allsuchpaymentsshallbevalidandeffectivetofullysatisfyanddischargetheCity's obligationswithrespecttotheprincipalofandpremium,ifany,andinterestontheBonds totheextentofthesumorsumssopaid. (v)UpondeliverybytheDepositorytotheBondRegistrarofwrittennoticeto theeffectthattheDepositoryhasdeterminedtosubstituteanewNomineeinplaceofthe existingNominee,andsubjecttothetransferprovisionsinparagraph10hereof, referencestotheNomineehereundershallrefertosuchnewNominee. (vi)SolongasanyBondisregisteredinthenameofaNominee,allpayments withrespecttotheprincipalofandpremium,ifany,andinterestonsuchBondandall noticeswithrespecttosuchBondshallbemadeandgiven,respectively,bytheBond RegistrarorCity,asthecasemaybe,totheDepositoryasprovidedintheLetterof RepresentationstotheDepositoryrequiredbytheDepositoryasaconditiontoitsacting asbook-entryDepositoryfortheBonds(saidLetterofRepresentations,togetherwithany replacementthereoforamendmentorsubstitutethereto,includinganystandard proceduresorpoliciesreferencedthereinorapplicabletheretorespectingtheprocedures andothermattersrelatingtotheDepository'sroleasbook-entryDepositoryforthe Bonds,collectivelyhereinafterreferredtoasthe"LetterofRepresentations"). (vii)AlltransfersofbeneficialownershipinterestsineachBondissuedin book-entryformshallbelimitedinprincipalamounttoAuthorizedDenominationsand 4 7000395v2 shallbeeffectedbyproceduresbytheDepositorywiththeParticipantsforrecordingand transferringtheownershipofbeneficialinterestsinsuchBonds. (viii)Inconnectionwithanynoticeorothercommunicationtobeprovidedto theHolderspursuanttothisresolutionbytheCityorBondRegistrarwithrespecttoany consentorotheractiontobetakenbyHolders,theDepositoryshallconsiderthedateof receiptofnoticerequestingsuchconsentorotheractionastherecorddateforsuch consentorotheraction;provided,thattheCityortheBondRegistrarmayestablisha specialrecorddateforsuchconsentorotheraction.TheCityortheBondRegistrarshall, totheextentpossible,givetheDepositorynoticeofsuchspecialrecorddatenotlessthan 15calendardaysinadvanceofsuchspecialrecorddatetotheextentpossible. (ix)AnysuccessorBondRegistrarinitswrittenacceptanceofitsdutiesunder thisResolutionandanypayingagency/bondregistraragreement,shallagreetotakeany actionsnecessaryfromtimetotimetocomplywiththerequirementsoftheLetterof Representations. (x)InthecaseofapartialprepaymentofaBond,theHoldermay,inlieuof surrenderingtheBondsforaBondofalesserdenominationasprovidedinparagraph5 hereof,makeanotationofthereductioninprincipalamountonthepanelprovidedonthe Bondstatingtheamountsoredeemed. (d)TerminationofBook-EntryOnlySystem.Discontinuanceofaparticular Depository'sservicesandterminationofthebook-entryonlysystemmaybeeffectedasfollows: (i)TheDepositorymaydeterminetodiscontinueprovidingitsserviceswith respecttotheBondsatanytimebygivingwrittennoticetotheCityanddischargingits responsibilitieswithrespecttheretounderapplicablelaw.TheCitymayterminatethe servicesoftheDepositorywithrespecttotheBondifitdeterminesthattheDepositoryis nolongerabletocarryoutitsfunctionsassecuritiesdepositoryorthecontinuationofthe systemofbook-entrytransfersthroughtheDepositoryisnotinthebestinterestsofthe CityortheBeneficialOwners. (ii)UponterminationoftheservicesoftheDepositoryasprovidedinthe precedingparagraph,andifnosubstitutesecuritiesdepositoryiswillingtoundertakethe functionsoftheDepositoryhereundercanbefoundwhich,intheopinionoftheCity,is willingandabletoassumesuchfunctionsuponreasonableorcustomaryterms,orifthe CitydeterminesthatitisinthebestinterestsoftheCityortheBeneficialOwnersofthe BondthattheBeneficialOwnersbeabletoobtaincertificatesfortheBonds,theBonds shallnolongerberegisteredasbeingregisteredinthebondregisterinthenameofthe Nominee,butmayberegisteredinwhatevernameornamestheHolderoftheBonds shalldesignateatthattime,inaccordancewithparagraph10hereof.Totheextentthat theBeneficialOwnersaredesignatedasthetransfereebytheHolders,inaccordancewith paragraph10hereof,theBondswillbedeliveredtotheBeneficialOwners. (iii)Nothinginthissubparagraph(c)shalllimitorrestricttheprovisionsof paragraph10hereof. 5 7000395v2 (e)LetterofRepresentations.TheprovisionsintheLetterofRepresentationsare incorporatedhereinbyreferenceandmadeapartoftheresolution,andifandtotheextentany suchprovisionsareinconsistentwiththeotherprovisionsofthisresolution,theprovisionsinthe LetterofRepresentationsshallcontrol. 3.Purpose.TheImprovementPortionoftheBondsshallprovidefundstofinance theconstructionoftheImprovements.TheStreetReconstructionPortionoftheBondsshall providefundstofinancetheStreetReconstructionImprovements.TheImprovementsandStreet ReconstructionImprovementscollectivelyarehereinreferredtotogetherastheProject.The totalcostoftheProject,whichshallincludeallcostsenumeratedinMinnesotaStatutes,Section 475.65,isestimatedtobeatleastequaltotheamountoftheBonds.TheCitycovenantsthatit shalldoallthingsandperformallactsrequiredofittoassurethatworkontheProjectproceeds withduediligencetocompletionandthatanyandallpermitsandstudiesrequiredunderlawfor theProjectareobtained. 4.Interest.TheBondsshallbearinterestpayablesemiannuallyonJune15and December15ofeachyear(each,an"InterestPaymentDate"),commencingDecember15,2015, calculatedonthebasisofa360-dayyearoftwelve30-daymonths,attherespectiveratesper annumsetforthoppositethematurityyearsasfollows: MaturityInterestMaturityInterest YearRateYearRate 20161.00%20201.90% 20171.0020212.10 20181.4020222.25 20191.60 5.NoRedemption.TheBondsshallnotbesubjecttoredemptionandprepayment priortotheirstatedmaturitydates. 6.BondRegistrar.NorthlandTrustServices,Inc.inMinneapolis,Minnesotais appointedtoactasbondregistrarandtransferagentwithrespecttotheBonds(the"Bond Registrar"),andshalldosounlessanduntilasuccessorBondRegistrarisdulyappointed,all pursuanttoanycontracttheCityandBondRegistrarshallexecutewhichisconsistentherewith. TheBondRegistrarshallalsoserveaspayingagentunlessanduntilasuccessorpayingagentis dulyappointed.PrincipalandinterestontheBondsshallbepaidtotheregisteredholders(or recordholders)oftheBondsinthemannersetforthintheformofBondandparagraph12. 7.FormofBond.TheBonds,togetherwiththeBondRegistrar'sCertificateof Authentication,theformofAssignmentandtheregistrationinformationthereon,shallbein substantiallythefollowingform: 6 7000395v2 UNITEDSTATESOFAMERICA STATEOFMINNESOTA SCOTTCOUNTY CITYOFPRIORLAKE R-_______$_________ TAXABLEGENERALOBLIGATIONBOND,SERIES2015B INTERESTMATURITYDATEOF RATEDATEORIGINALISSUECUSIP _____%DECEMBER15,____MAY1,2015 REGISTEREDOWNER:CEDE&CO. PRINCIPALAMOUNT:___________________DOLLARS THECITYOFPRIORLAKE,SCOTTCOUNTY,MINNESOTA(the"Issuer"),certifies thatitisindebtedandforvaluereceivedpromisestopaytotheregisteredownerspecifiedabove, orregisteredassigns,inthemannerhereinaftersetforth,theprincipalamountspecifiedabove, onthematuritydatespecifiedabove,withoutoptionofpriorpayment,andtopayinterestthereon semiannuallyonJune15andDecember15ofeachyear(each,an"InterestPaymentDate"), commencingDecember15,2015,attherateperannumspecifiedabove(calculatedonthebasis ofa360-dayyearoftwelve30-daymonths)untiltheprincipalsumispaidorhasbeenprovided for.ThisBondwillbearinterestfromthemostrecentInterestPaymentDatetowhichinterest hasbeenpaidor,ifnointeresthasbeenpaid,fromthedateoforiginalissuehereof.The principalofandpremium,ifany,onthisBondarepayableuponpresentationandsurrender hereofatNorthlandTrustServices,Inc.,inMinneapolis,Minnesota(the"BondRegistrar"), actingaspayingagent,oranysuccessorpayingagentdulyappointedbytheIssuer.Intereston thisBondwillbepaidoneachInterestPaymentDatebycheckordraftmailedtothepersonin whosenamethisBondisregistered(the"Holder"or"Bondholder")ontheregistrationbooksof theIssuermaintainedbytheBondRegistrarandattheaddressappearingthereonatthecloseof businessonthefirstdayofthecalendarmonthofsuchInterestPaymentDate(the"Regular RecordDate").Anyinterestnotsotimelypaidshallceasetobepayabletothepersonwhoisthe HolderhereofasoftheRegularRecordDate,andshallbepayabletothepersonwhoisthe Holderhereofatthecloseofbusinessonadate(the"SpecialRecordDate")fixedbytheBond Registrarwhenevermoneybecomesavailableforpaymentofthedefaultedinterest.Noticeof theSpecialRecordDateshallbegiventoBondholdersnotlessthantendayspriortotheSpecial RecordDate.Theprincipalofandpremium,ifany,andinterestonthisBondarepayablein lawfulmoneyoftheUnitedStatesofAmerica.SolongasthisBondisregisteredinthenameof theDepositoryoritsNomineeasprovidedintheResolutionhereinafterdescribed,andasthose termsaredefinedtherein,paymentofprincipalof,premium,ifany,andinterestonthisBondand noticewithrespecttheretoshallbemadeasprovidedinLetterofRepresentations,asdefinedin theResolution,andsurrenderofthisBondshallnotberequiredforpaymentoftheredemption priceuponapartialredemptionofthisBond.Untilterminationofthebook-entryonlysystem 7 7000395v2 pursuanttotheResolution,BondsmayonlyberegisteredinthenameoftheDepositoryorits Nominee. NoOptionalRedemption.TheBondsofthisissue(the"Bonds")arenotsubjectto redemptionandprepaymentpriortotheirstatedmaturitydates. Issuance;Purpose;GeneralObligation.ThisBondisoneofanissueinthetotalprincipal amountof$2,490,000,alloflikedateoforiginalissueandtenor,exceptastonumber,maturity, interestrate,denomination,issuedpursuanttoandinfullconformitywiththeConstitutionand lawsoftheStateofMinnesotaandpursuanttoaresolutionadoptedbytheCityCouncilonApril 27,2015(the"Resolution"),forthepurposeofprovidingmoneytofinancetheconstructionof variouspublicimprovementsandstreetreconstructionimprovementswithinthejurisdictionof theIssuer.ThisBondispayableoutoftheTaxableGeneralObligationBonds,Series2015B FundoftheIssuer.ThisBondconstitutesageneralobligationoftheIssuer,andtoprovide moneysforthepromptandfullpaymentofitsprincipal,premium,ifany,andinterestwhenthe samebecomedue,thefullfaithandcreditandtaxingpowersoftheIssuerhavebeenandare herebyirrevocablypledged. Denominations;Exchange;Resolution.TheBondsareissuablesolelyinfullyregistered forminAuthorizedDenominations(asdefinedintheResolution)andareexchangeableforfully registeredBondsofotherAuthorizedDenominationsinequalaggregateprincipalamountsatthe officeoftheBondRegistrar,butonlyinthemannerandsubjecttothelimitationsprovidedinthe Resolution.ReferenceisherebymadetotheResolutionforadescriptionoftherightsandduties oftheBondRegistrar.CopiesoftheResolutionareonfileintheofficeoftheBondRegistrar. Transfer.ThisBondistransferablebytheHolderinpersonorbytheHolder'sattorney dulyauthorizedinwritingattheofficeoftheBondRegistraruponpresentationandsurrender hereoftotheBondRegistrar,allsubjecttothetermsandconditionsprovidedintheResolution andtoreasonableregulationsoftheIssuercontainedinanyagreementwiththeBondRegistrar. ThereupontheIssuershallexecuteandtheBondRegistrarshallauthenticateanddeliver,in exchangeforthisBond,oneormorenewfullyregisteredBondsinthenameofthetransferee (butnotregisteredinblankorto"bearer"orsimilardesignation),ofanAuthorized DenominationorDenominations,inaggregateprincipalamountequaltotheprincipalamountof thisBond,ofthesamematurityandbearinginterestatthesamerate. FeesuponTransferorLoss.TheBondRegistrarmayrequirepaymentofasum sufficienttocoveranytaxorothergovernmentalchargepayableinconnectionwiththetransfer orexchangeofthisBondandanylegalorunusualcostsregardingtransfersandlostBonds. TreatmentofRegisteredOwners.TheIssuerandBondRegistrarmaytreatthepersonin whosenamethisBondisregisteredastheownerhereofforthepurposeofreceivingpaymentas hereinprovided(exceptasotherwiseprovidedhereinwithrespecttotheRecordDate)andforall otherpurposes,whetherornotthisBondshallbeoverdue,andneithertheIssuernortheBond Registrarshallbeaffectedbynoticetothecontrary. 8 7000395v2 Authentication.ThisBondshallnotbevalidorbecomeobligatoryforanypurposeorbe entitledtoanysecurityunlesstheCertificateofAuthenticationhereonshallhavebeenexecuted bytheBondRegistrar. TaxableInterest.TheinterestonthisBondisincludedinthegrossincomeoftheowner hereofforpurposesofUnitedStatesincometaxandtothesameextentinbothgrossincomeand taxablenetincomeforpurposesofStateofMinnesotaincometax. ITISHEREBYCERTIFIEDANDRECITEDthatallacts,conditionsandthings requiredbytheConstitutionandlawsoftheStateofMinnesotatobedone,tohappenandtobe performed,precedenttoandintheissuanceofthisBond,havebeendone,havehappenedand havebeenperformed,inregularanddueform,timeandmannerasrequiredbylaw,andthatthis Bond,togetherwithallotherdebtsoftheIssueroutstandingonthedateoforiginalissuehereof andthedateofitsissuanceanddeliverytotheoriginalpurchaser,doesnotexceedany constitutionalorstatutorylimitationofindebtedness. INWITNESSWHEREOF,theCityofPriorLake,ScottCounty,Minnesota,byitsCity CouncilhascausedthisBondtobeexecutedonitsbehalfbythefacsimilesignaturesofits MayoranditsManager. DateofRegistration:Registrableby:NORTHLANDTRUSTSERVICES,INC. Payableat:NORTHLANDTRUSTSERVICES,INC. BONDREGISTRAR'SCITYOFPRIORLAKE, CERTIFICATEOFSCOTTCOUNTY,MINNESOTA AUTHENTICATION ThisBondisoneofthe /s/Facsimile Bondsdescribedinthe Mayor Resolutionmentioned within. NORTHLANDTRUST SERVICES,INC., Minneapolis,Minnesota, /s/Facsimile BondRegistrar Manager By 9 7000395v2 ABBREVIATIONS Thefollowingabbreviations,whenusedintheinscriptiononthefaceofthisBond,shall beconstruedasthoughtheywerewrittenoutinfullaccordingtoapplicablelawsorregulations: TENCOM-astenantsincommon TENENT-astenantsbytheentireties JTTEN-asjointtenantswithrightofsurvivorship andnotastenantsincommon UTMA-_________________ascustodianfor________________________ (Cust)(Minor) underthe_______________________________UniformTransferstoMinorsAct (State) Additionalabbreviationsmayalsobeusedthoughnotintheabovelist. ASSIGNMENT Forvaluereceived,theundersignedherebysells,assignsandtransfersunto ________________________________________________________thewithinBondanddoes herebyirrevocablyconstituteandappoint_________________attorneytotransfertheBondon thebookskeptfortheregistrationthereof,withfullpowerofsubstitutioninthepremises. Dated:_________________________________________________________________ Notice:Theassignor'ssignaturetothisassignmentmust correspondwiththenameasitappearsuponthe faceofthewithinBondineveryparticular, withoutalterationoranychangewhatever. SignatureGuaranteed:___________________________ Signature(s)mustbeguaranteedbyanationalbankortrustcompanyorbyabrokeragefirm havingamembershipinoneofthemajorstockexchangesoranyother"EligibleGuarantor Institution"asdefinedin17CFR240.17Ad-15(a)(2). TheBondRegistrarwillnoteffecttransferofthisBondunlesstheinformation concerningthetransfereerequestedbelowisprovided. NameandAddress:________________________________________ ________________________________________ ________________________________________ (IncludeinformationforalljointownersiftheBondisheldbyjointaccount.) 10 7000395v2 8.Execution.TheBondsshallbeintypewrittenform,shallbeexecutedonbehalfof theCitybythesignaturesofitsMayorandManagerandbesealedwiththesealoftheCity; provided,aspermittedbylaw,bothsignaturesmaybephotocopiedfacsimilesandthecorporate sealhasbeenomitted.Intheeventofdisabilityorresignationorotherabsenceofeitherofficer, theBondsmaybesignedbythemanualorfacsimilesignatureoftheofficerwhomayacton behalfoftheabsentordisabledofficer.Incaseeitherofficerwhosesignatureorfacsimileof whosesignatureshallappearontheBondsshallceasetobesuchofficerbeforethedeliveryof theBonds,thesignatureorfacsimileshallneverthelessbevalidandsufficientforallpurposes, thesameasiftheofficerhadremainedinofficeuntildelivery. 9.Authentication.NoBondshallbevalidorobligatoryforanypurposeorbe entitledtoanysecurityorbenefitunderthisresolutionunlessaCertificateofAuthenticationon theBond,substantiallyintheformhereinabovesetforth,shallhavebeendulyexecutedbythe BondRegistrar.CertificatesofAuthenticationondifferentBondsneednotbesignedbythe sameperson.TheBondRegistrarshallauthenticatethesignaturesofofficersoftheCityoneach BondbyexecutionoftheCertificateofAuthenticationontheBondand,byinsertingasthedate ofregistrationinthespaceprovided,thedateonwhichtheBondisauthenticated,exceptthatfor purposesofdeliveringtheoriginalBondstothePurchaser,theBondRegistrarshallinsertasa dateofregistrationthedateoforiginalissue,whichdateisMay1,2015.TheCertificateof AuthenticationsoexecutedoneachBondshallbeconclusiveevidencethatithasbeen authenticatedanddeliveredunderthisresolution. 10.Registration;Transfer;Exchange.TheCitywillcausetobekeptattheofficeof theBondRegistrarabondregisterinwhich,subjecttosuchreasonableregulationsastheBond Registrarmayprescribe,theBondRegistrarshallprovidefortheregistrationofBondsandthe registrationoftransfersofBondsentitledtoberegisteredortransferredashereinprovided. UponsurrenderfortransferofanyBondattheofficeoftheBondRegistrar,theCityshall execute(ifnecessary),andtheBondRegistrarshallauthenticate,insertthedateofregistration (asprovidedinparagraph9)of,anddeliver,inthenameofthedesignatedtransfereeor transferees,oneormorenewBondsofanyAuthorizedDenominationorDenominationsofalike aggregateprincipalamount,havingthesamestatedmaturityandinterestrate,asrequestedbythe transferor;provided,however,thatnoBondmayberegisteredinblankorinthenameof "bearer"orsimilardesignation. AttheoptionoftheHolder,BondsmaybeexchangedforBondsofanyAuthorized DenominationorDenominationsofalikeaggregateprincipalamountandstatedmaturity,upon surrenderoftheBondstobeexchangedattheofficeoftheBondRegistrar.Wheneverany Bondsaresosurrenderedforexchange,theCityshallexecute(ifnecessary),andtheBond Registrarshallauthenticate,insertthedateofregistrationof,anddelivertheBondswhichthe Holdermakingtheexchangeisentitledtoreceive. AllBondssurrendereduponanyexchangeortransferprovidedforinthisresolutionshall bepromptlycanceledbytheBondRegistrarandthereafterdisposedofasdirectedbytheCity. 11 7000395v2 AllBondsdeliveredinexchangefororupontransferofBondsshallbevalidgeneral obligationsoftheCityevidencingthesamedebt,andentitledtothesamebenefitsunderthis resolution,astheBondssurrenderedforsuchexchangeortransfer. EveryBondpresentedorsurrenderedfortransferorexchangeshallbedulyendorsedor beaccompaniedbyawritteninstrumentoftransfer,informsatisfactorytotheBondRegistrar, dulyexecutedbytheHolderthereoforhis,heroritsattorneydulyauthorizedinwriting. TheBondRegistrarmayrequirepaymentofasumsufficienttocoveranytaxorother governmentalchargepayableinconnectionwiththetransferorexchangeofanyBondandany legalorunusualcostsregardingtransfersandlostBonds. TransfersshallalsobesubjecttoreasonableregulationsoftheCitycontainedinany agreementwiththeBondRegistrar,includingregulationswhichpermittheBondRegistrarto closeitstransferbooksbetweenrecorddatesandpaymentdates.TheManagerishereby authorizedtonegotiateandexecutethetermsofsaidagreement. 11.RightsUponTransferorExchange.EachBonddeliveredupontransferoforin exchangefororinlieuofanyotherBondshallcarryalltherightstointerestaccruedandunpaid, andtoaccrue,whichwerecarriedbysuchotherBond. 12.InterestPayment;RecordDate.InterestonanyBondshallbepaidoneach InterestPaymentDatebycheckordraftmailedtothepersoninwhosenametheBondis registered(the"Holder")ontheregistrationbooksoftheCitymaintainedbytheBondRegistrar andattheaddressappearingthereonatthecloseofbusinessonthefirst(1st)dayofthecalendar monthofsuchInterestPaymentDate(the"RegularRecordDate").Anysuchinterestnotso timelypaidshallceasetobepayabletothepersonwhoistheHolderthereofasoftheRegular RecordDate,andshallbepayabletothepersonwhoistheHolderthereofatthecloseof businessonadate(the"SpecialRecordDate")fixedbytheBondRegistrarwhenevermoney becomesavailableforpaymentofthedefaultedinterest.NoticeoftheSpecialRecordDateshall begivenbytheBondRegistrartotheHoldersnotlessthantendayspriortotheSpecialRecord Date. 13.TreatmentofRegisteredOwner.TheCityandBondRegistrarmaytreatthe personinwhosenameanyBondisregisteredastheownerofsuchBondforthepurposeof receivingpaymentofprincipalofandpremium,ifany,andinterest(subjecttothepayment provisionsinparagraph12)on,suchBondandforallotherpurposeswhatsoeverwhetherornot suchBondshallbeoverdue,andneithertheCitynortheBondRegistrarshallbeaffectedby noticetothecontrary. 14.Delivery;ApplicationofProceeds.TheBondswhensopreparedandexecuted shallbedeliveredbytheManagertothePurchaseruponreceiptofthepurchaseprice,andthe Purchasershallnotbeobligedtoseetotheproperapplicationthereof. 15.FundandAccounts.Thereisherebycreatedaspecialfundtobedesignatedthe "TaxableGeneralObligationBonds,Series2015BFund"(the"Fund")tobeadministeredand maintainedbytheFinanceDirectorasabookkeepingaccountseparateandapartfromallother fundsmaintainedintheofficialfinancialrecordsoftheCity.TheFundshallbemaintainedin 12 7000395v2 themannerhereinspecifieduntilalloftheBondsandtheinterestthereonhavebeenfullypaid. ThereshallbemaintainedintheFundthefollowingseparateaccounts: (a)ConstructionAccount.TotheConstructionAccountthereshallbecreditedthe proceedsofthesaleoftheBonds,lessaccruedandcapitalizedinterestreceivedthereon,plusa proratashareofanyspecialassessmentsleviedwithrespecttotheImprovementsandcollected priortocompletionoftheProjectandpaymentofthecoststhereof.FromtheConstruction AccountthereshallbepaidallcostsandexpensesoftheProject,includingthecostofany constructioncontractsheretoforeletandallothercostsincurredandtobeincurredofthekind authorizedinMinnesotaStatutes,Section475.65.MoneysintheConstructionAccountshallbe usedfornootherpurposeexceptasotherwiseprovidedbylaw;providedthattheproceedsofthe BondsmayalsobeusedtotheextentnecessarytopayinterestontheBondsduepriortothe anticipateddateofcommencementofthecollectionoftaxesorspecialassessmentshereinlevied orcovenantedtobelevied;andprovidedfurtherthatifuponcompletionoftheProjectthereshall remainanyunexpendedbalanceintheConstructionAccount,thebalance(otherthananyspecial assessments)shallbetransferredbytheCounciltotheDebtServiceAccount,orinthecaseof anybalanceattributabletotheImprovementPortionoftheBonds,thefundofanyother improvementinstitutedpursuanttoMinnesotaStatutes,Chapter429,andprovidedfurtherthat anyspecialassessmentscreditedtotheConstructionAccountshallonlybeappliedtowards paymentofthecostsoftheImprovementsuponadoptionofaresolutionbytheCityCouncil determiningthattheapplicationofthespecialassessmentsforsuchpurposewillnotcausethe CitytonolongerbeincompliancewithMinnesotaStatutes,Section475.61,Subdivision1. (b)DebtServiceAccount.Thereshallbemaintainedseparatesubaccountsinthe DebtServiceAccounttobedesignatedthe"ImprovementDebtServiceSubaccount"andthe "StreetReconstructionDebtServiceSubaccount".Thereareherebyirrevocablyappropriated andpledgedto,andthereshallbecreditedtotheseparatesubaccountsoftheDebtService Account: (i)ImprovementDebtServiceSubaccount.Thereareherebyirrevocably appropriatedandpledgedto,andthereshallbecreditedto,theImprovementDebt ServiceSubaccount:(i)aproratashareofallcollectionsofspecialassessmentsherein covenantedtobeleviedwithrespecttotheImprovementsandeitherinitiallycreditedto theConstructionAccountandnotalreadyspentaspermittedaboveandrequiredtopay anyprincipalandinterestdueontheImprovementPortionoftheBondsorcollected subsequenttothecompletionoftheImprovementsandpaymentofthecoststhereof;(ii) capitalizedinterestintheamountof$2,870.05(togetherwithinterestearningsthereon andsubjecttosuchotheradjustmentsasareappropriatetoprovidesufficientfundstopay interestdueontheImprovementPortionoftheBondsonorbeforeJune15,2016);(iii)a proratashareofallaccruedinterestreceivedupondeliveryoftheBonds;(iv)any collectionsofalltaxeshereinorhereafterleviedforthepaymentoftheImprovement PortionoftheBondsandinterestthereon;(v)aproratashareoffundsremaininginthe ConstructionAccountaftercompletionoftheImprovementsandpaymentofthecosts thereof,notsotransferredtotheaccountofanotherimprovement;(vi)allinvestment earningsonfundsheldintheImprovementDebtServiceSubaccount;and(vii)anyand allothermoneyswhichareproperlyavailableandareappropriatedbythegoverning bodyoftheCitytotheImprovementDebtServiceSubaccount.TheImprovementDebt 13 7000395v2 ServiceSubaccountshallbeusedsolelytopaytheprincipalandinterestandany premiumsforredemptionoftheImprovementPortionoftheBondsandanyothergeneral obligationbondsoftheCityhereafterissuedbytheCityandmadepayablefromsaid accountasprovidedbylaw. (ii)StreetReconstructionDebtServiceSubaccount.Therearehereby irrevocablyappropriatedandpledgedto,andthereshallbecreditedto,theStreet ReconstructionDebtServiceSubaccount:(i)capitalizedinterestintheamountof $41,236.92(togetherwithinterestearningsthereonandsubjecttosuchotheradjustments asareappropriatetoprovidesufficientfundstopayinterestdueontheStreet ReconstructionPortionoftheBondsonorbeforeJune15,2016);(ii)aproratashareof allaccruedinterestreceivedupondeliveryoftheBonds;(iii)anycollectionsofalltaxes hereinorhereafterleviedforthepaymentoftheStreetReconstructionPortionofthe Bondsandinterestthereon;(iv)aproratashareoffundsremainingintheConstruction AccountaftercompletionoftheStreetReconstructionImprovementsandpaymentofthe coststhereof,notsotransferredtotheaccountofanotherimprovement;(v)allinvestment earningsonfundsheldintheStreetReconstructionDebtServiceSubaccount;and(vi) anyandallothermoneyswhichareproperlyavailableandareappropriatedbythe governingbodyoftheCitytotheStreetReconstructionDebtServiceSubaccount.The StreetReconstructionDebtServiceSubaccountshallbeusedsolelytopaytheprincipal andinterestandanypremiumsforredemptionoftheStreetReconstructionPortionofthe BondsandanyothergeneralobligationbondsoftheCityhereafterissuedbytheCityand madepayablefromsaidaccountasprovidedbylaw. NoportionoftheproceedsoftheBondsshallbeuseddirectlyorindirectlytoacquire higheryieldinginvestmentsortoreplacefundswhichwereuseddirectlyorindirectlytoacquire higheryieldinginvestments,except(1)forareasonabletemporaryperioduntilsuchproceedsare neededforthepurposeforwhichtheBondswereissuedand(2)inadditiontotheaboveinan amountnotgreaterthanthelesseroffivepercent(5%)oftheproceedsoftheBondsor$100,000. Tothiseffect,anyproceedsoftheBondsandanysumsfromtimetotimeheldinthe ConstructionAccountorDebtServiceAccount(oranyotherCityaccountwhichwillbeusedto payprincipalorinteresttobecomedueonthebondspayabletherefrom)inexcessofamounts whichunderthen-applicablefederalarbitrageregulationsmaybeinvestedwithoutregardto yieldshallnotbeinvestedatayieldinexcessoftheapplicableyieldrestrictionsimposedbysaid arbitrageregulationsonsuchinvestmentsaftertakingintoaccountanyapplicable"temporary periods"or"minorportion"madeavailableunderthefederalarbitrageregulations.Moneyinthe Fundshallnotbeinvestedinobligationsordepositsissuedby,guaranteedbyorinsuredbythe UnitedStatesoranyagencyorinstrumentalitythereofifandtotheextentthatsuchinvestment wouldcausetheBondstobe"federallyguaranteed"withinthemeaningofSection149(b)ofthe InternalRevenueCodeof1986,asamended(the"Code"). 16.CovenantsRelatingtotheImprovementPortionoftheBonds. (a)Assessments.Itisherebydeterminedthatnolessthantwentypercent(20%)of thecosttotheCityofeachImprovementfinancedhereunderwithinthemeaningofMinnesota Statutes,Section475.58,Subdivision1(3),shallbepaidbyspecialassessmentstobelevied againsteveryassessablelot,pieceandparceloflandbenefittedbyanyoftheImprovements. 14 7000395v2 TheCityherebycovenantsandagreesthatitwillletallconstructioncontractsnotheretoforelet withinone(1)yearafterorderingeachImprovementfinancedhereunderunlesstheresolution orderingtheImprovementspecifiesadifferenttimelimitforthelettingofconstructioncontracts. TheCityherebyfurthercovenantsandagreesthatitwilldoandperformassoonastheymaybe doneallactsandthingsnecessaryforthefinalandvalidlevyofsuchspecialassessments,andin theeventthatanysuchassessmentbeatanytimeheldinvalidwithrespecttoanylot,pieceor parceloflandduetoanyerror,defect,orirregularityinanyactionorproceedingstakenortobe takenbytheCityortheCityCounciloranyoftheCityofficersoremployees,eitherinthe makingoftheassessmentsorintheperformanceofanyconditionprecedentthereto,theCityand theCityCouncilwillforthwithdoallfurtheractsandtakeallfurtherproceedingsasmaybe requiredbylawtomaketheassessmentsavalidandbindinglienuponsuchproperty.The specialassessmentshaveheretoforebeenauthorized.Subjecttosuchadjustmentsasarerequired bytheconditionsinexistenceatthetimetheassessmentsarelevied,itisherebydeterminedthat theassessmentsshallbepayableinequal,consecutive,annualinstallments,withgeneraltaxes fortheyearsshownbelowandwithinterestonthedecliningbalanceofallsuchassessmentsat theratesperannumnotlessthantherateperannumsetforthoppositethecollectionyears specifiedbelow: ImprovementCollection DesignationAmountLevyYearsYearRate CreditRiverRoad$399,1852015-20242016-20253.75% MushtownRoad,Maple$294,3822015-20242016-20253.75% LaneandPanamaAvenue$509,8082015-20342016-20353.75% HighlandAvenue,MarchStreet, SkylineAvenue,GrainwoodTrail andEauClaireTrail$928,6062015-20242016-20253.75% AtthetimetheassessmentsareinfactleviedtheCityCouncilshall,basedonthethen- currentestimatedcollectionsoftheassessments,makeanyadjustmentsinanyadvaloremtaxes requiredtobeleviedinordertoassurethattheCitycontinuestobeincompliancewith MinnesotaStatutes,Section475.61,Subdivision1. (b)TaxLevy;CoverageTest.Toprovidemoneysforpaymentoftheprincipaland interestontheImprovementPortionoftheBondsthereisherebylevieduponallofthetaxable propertyintheCityadirectannualadvaloremtaxwhichshallbespreaduponthetaxrollsand collectedwithandaspartofothergeneralpropertytaxesintheCityfortheyearsandinthe amountsasfollows: YearofTaxLevyYearofTaxCollectionAmount SeeAttachedSchedule 15 7000395v2 Thetaxleviesaresuchthatifcollectedinfullthey,togetherwithestimatedcollectionsof specialassessmentsandotherrevenueshereinpledgedforthepaymentoftheImprovement PortionoftheBonds,willproduceatleastfivepercent(5%)inexcessoftheamountneededto meetwhenduetheprincipalandinterestpaymentsontheImprovementPortionoftheBonds. ThetaxleviesshallbeirrepealablesolongasanyoftheImprovementPortionoftheBondsare outstandingandunpaid,providedthattheCityreservestherightandpowertoreducethelevies inthemannerandtotheextentpermittedbyMinnesotaStatutes,Section475.61,Subdivision3. (c)GeneralObligationPledge.Forthepromptandfullpaymentoftheprincipaland interestontheImprovementPortionoftheBonds,asthesamerespectivelybecomedue,thefull faith,creditandtaxingpowersoftheCityshallbeandareherebyirrevocablypledged.Ifthe balanceintheImprovementDebtServiceSubaccountiseverinsufficienttopayallprincipaland interestthendueontheImprovementPortionoftheBondsandanyotherbondspayable therefrom,thedeficiencyshallbepromptlypaidoutofanyotherfundsoftheCitywhichare availableforsuchpurpose,andsuchotherfundsmaybereimbursedwithorwithoutinterest fromtheImprovementDebtServiceSubaccountwhenasufficientbalanceisavailabletherein. 17.CovenantsRelatingtotheStreetReconstructionPortionoftheBonds. (a)TaxLevyandCoverageTest.Toprovidemoneysforpaymentoftheprincipal andinterestontheStreetReconstructionPortionoftheBondsthereisherebylevieduponallof thetaxablepropertyintheCityadirectannualadvaloremtaxwhichshallbespreaduponthetax rollsandcollectedwithandaspartofothergeneralpropertytaxesintheCityfortheyearsandin theamountsasfollows: YearsofTaxLevyYearsofTaxCollectionAmount SeeAttachedSchedule Thetaxleviesaresuchthatifcollectedinfullthey,togetherwithotherrevenuesherein pledgedforthepaymentoftheStreetReconstructionPortionoftheBonds,willproduceatleast fivepercentinexcessoftheamountneededtomeetwhenduetheprincipalandinterest paymentsontheStreetReconstructionPortionoftheBonds.Thetaxleviesshallbeirrepealable solongasanyoftheStreetReconstructionPortionoftheBondsareoutstandingandunpaid, providedthattheCityreservestherightandpowertoreducetheleviesinthemannerandtothe extentpermittedbyMinnesotaStatutes,Section475.61,Subdivision3. (b)GeneralObligationPledge.Forthepromptandfullpaymentoftheprincipaland interestontheStreetReconstructionPortionoftheBonds,asthesamerespectivelybecomedue, thefullfaith,creditandtaxingpowersoftheCityshallbeandareherebyirrevocablypledged.If thebalanceintheStreetReconstructionDebtServiceSubaccountiseverinsufficienttopayall principalandinterestthendueontheStreetReconstructionPortionoftheBondsandanyother bondspayabletherefrom,thedeficiencyshallbepromptlypaidoutofanyotherfundsoftheCity whichareavailableforsuchpurpose,andsuchotherfundsmaybereimbursedwithorwithout 16 7000395v2 interestfromtheStreetReconstructionDebtServiceSubaccountwhenasufficientbalanceis availabletherein. 18.Defeasance.WhenallBondshavebeendischargedasprovidedinthisparagraph, allpledges,covenantsandotherrightsgrantedbythisresolutiontotheregisteredholdersofthe Bondsshall,totheextentpermittedbylaw,cease.TheCitymaydischargeitsobligationswith respecttoanyBondswhicharedueonanydatebyirrevocablydepositingwiththeBond Registraronorbeforethatdateasumsufficientforthepaymentthereofinfull;orifanyBond shouldnotbepaidwhendue,itmayneverthelessbedischargedbydepositingwiththeBond Registrarasumsufficientforthepaymentthereofinfullwithinterestaccruedtothedateofsuch deposit.TheCitymayalsodischargeitsobligationswithrespecttoanyprepayableBondscalled forredemptiononanydatewhentheyareprepayableaccordingtotheirterms,bydepositing withtheBondRegistraronorbeforethatdateasumsufficientforthepaymentthereofinfull, providedthatnoticeofredemptionthereofhasbeendulygiven.TheCitymayalsoatanytime dischargeitsobligationswithrespecttoanyBonds,subjecttotheprovisionsoflawnowor hereafterauthorizingandregulatingsuchaction,bydepositingirrevocablyinescrow,witha suitablebankinginstitutionqualifiedbylawasanescrowagentforthispurpose,cashor securitiesdescribedinMinnesotaStatutes,Section475.67,Subdivision8,bearinginterest payableatsuchtimesandatsuchratesandmaturingonsuchdatesasshallberequired,without regardtosaleand/orreinvestment,topayallamountstobecomeduethereontomaturityor,if noticeofredemptionashereinrequiredhasbeendulyprovidedfor,tosuchearlierredemption date. 19.ComplianceWithReimbursementBondRegulations.Theprovisionsofthis paragraphareintendedtoestablishandprovidefortheCity'scompliancewithUnitedStates TreasuryRegulationsSection1.150-2(the"ReimbursementRegulations")applicabletothe "reimbursementproceeds"oftheBonds,beingthoseportionsthereofwhichwillbeusedbythe CitytoreimburseitselfforanyexpenditurewhichtheCitypaidorwillhavepaidpriortothe ClosingDate(a"ReimbursementExpenditure"). TheCityherebycertifiesand/orcovenantsasfollows: (a)Notlaterthan60daysafterthedateofpaymentofaReimbursementExpenditure, theCity(orpersondesignatedtodosoonbehalfoftheCity)hasmadeorwillhavemadea writtendeclarationoftheCity'sofficialintent(a"Declaration")whicheffectively(i)statesthe City'sreasonableexpectationtoreimburseitselfforthepaymentoftheReimbursement Expenditureoutoftheproceedsofasubsequentborrowing;(ii)givesageneralandfunctional descriptionoftheproperty,projectorprogramtowhichtheDeclarationrelatesandforwhichthe ReimbursementExpenditureispaid,oridentifiesaspecificfundoraccountoftheCityandthe generalfunctionalpurposethereoffromwhichtheReimbursementExpenditurewastobepaid (collectivelythe"Project");and(iii)statesthemaximumprincipalamountofdebtexpectedtobe issuedbytheCityforthepurposeoffinancingtheProject;provided,however,thatnosuch Declarationshallnecessarilyhavebeenmadewithrespectto:(i)"preliminaryexpenditures"for theProject,definedintheReimbursementRegulationstoincludeengineeringorarchitectural, surveyingandsoiltestingexpensesandsimilarprefatorycosts,whichintheaggregatedonot exceed20%ofthe"issueprice"oftheBonds,and(ii)ademinimisamountofReimbursement Expendituresnotinexcessofthelesserof$100,000or5%oftheproceedsoftheBonds. 17 7000395v2 (b)EachReimbursementExpenditureisacapitalexpenditureoracostofissuanceof theBondsoranyoftheothertypesofexpendituresdescribedinSection1.150-2(d)(3)ofthe ReimbursementRegulations. (c)The"reimbursementallocation"describedintheReimbursementRegulationsfor eachReimbursementExpenditureshallandwillbemadeforthwithfollowing(butnotpriorto) theissuanceoftheBondsandinalleventswithintheperiodendingonthedatewhichisthelater ofthreeyearsafterpaymentoftheReimbursementExpenditureoroneyearafterthedateon whichtheProjecttowhichtheReimbursementExpenditurerelatesisfirstplacedinservice. (d)Eachsuchreimbursementallocationwillbemadeinawritingthatevidencesthe City'suseofBondproceedstoreimbursetheReimbursementExpenditureand,ifmadewithin30 daysaftertheBondsareissued,shallbetreatedasmadeonthedaytheBondsareissued. Provided,however,thattheCitymaytakeactioncontrarytoanyoftheforegoingcovenantsin thisparagraphuponreceiptofanopinionofitsBondCounselfortheBondsstatingineffectthat suchactionwillnotimpairthetax-exemptstatusoftheBonds. 20.ContinuingDisclosure.TheCityisthesoleobligatedpersonwithrespecttothe Bonds.TheCityherebyagrees,inaccordancewiththeprovisionsofRule15c2-12(the"Rule"), promulgatedbytheSecuritiesandExchangeCommission(the"Commission")pursuanttothe SecuritiesExchangeActof1934,asamended,andaContinuingDisclosureUndertaking(the "Undertaking")hereinafterdescribedto: (a)ProvideorcausetobeprovidedtotheMunicipalSecuritiesRulemakingBoard (the"MSRB")byfilingatwww.emma.msrb.orginaccordancewiththeRule,certainannual financialinformationandoperatingdatainaccordancewiththeUndertaking.TheCityreserves therighttomodifyfromtimetotimethetermsoftheUndertakingasprovidedtherein. (b)ProvideorcausetobeprovidedtotheMSRBnoticeoftheoccurrenceofcertain eventswithrespecttotheBondsinnotmorethanten(10)businessdaysaftertheoccurrenceof theevent,inaccordancewiththeUndertaking. (c)ProvideorcausetobeprovidedtotheMSRBnoticeofafailurebytheCityto providetheannualfinancialinformationwithrespecttotheCitydescribedintheUndertaking,in notmorethanten(10)businessdaysfollowingsuchamendment. (d)TheCityagreesthatitscovenantspursuanttotheRulesetforthinthisparagraph andintheUndertakingisintendedtobeforthebenefitoftheHoldersoftheBondsandshallbe enforceableonbehalfofsuchHolders;providedthattherighttoenforcetheprovisionsofthese covenantsshallbelimitedtoarighttoobtainspecificenforcementoftheCity'sobligationsunder thecovenants. TheMayorandManageroftheCity,oranyotherofficeroftheCityauthorizedtoactin theirplace(the"Officers")areherebyauthorizedanddirectedtoexecuteonbehalfoftheCity theUndertakinginsubstantiallytheformpresentedtotheCityCouncilsubjecttosuch modificationsthereoforadditionstheretoasare(i)consistentwiththerequirementsunderthe Rule,(ii)requiredbythePurchaseroftheBonds,and(iii)acceptabletotheOfficers. 18 7000395v2 21.CertificateofRegistration.Acertifiedcopyofthisresolutionisherebydirected tobefiledwiththeCountyAuditorofScottCounty,Minnesota,togetherwithsuchother informationastheAuditorshallrequire,andthereshallbeobtainedfromtheCountyAuditora certificatethattheBondshavebeenenteredintheCountyAuditor'sBondRegister,andthatthe taxlevyrequiredbylawhasbeenmade. 22.RecordsandCertificates.TheofficersoftheCityareherebyauthorizedand directedtoprepareandfurnishtothePurchaser,andtotheattorneysapprovingthelegalityofthe issuanceoftheBonds,certifiedcopiesofallproceedingsandrecordsoftheCityrelatingtothe BondsandtothefinancialconditionandaffairsoftheCity,andsuchotheraffidavits,certificates andinformationasarerequiredtoshowthefactsrelatingtothelegalityandmarketabilityofthe Bondsasthesameappearfromthebooksandrecordsundertheircustodyandcontroloras otherwiseknowntothem,andallsuchcertifiedcopies,certificatesandaffidavits,includingany heretoforefurnished,shallbedeemedrepresentationsoftheCityastothefactsrecitedtherein. 23.TaxableStatusoftheBonds.TheCitydoesnotqualifytheBondsastax-exempt undertheInternalRevenueCodeof1986,asamended.ItisherebydeterminedthattheBonds aretobeissuedasfullytaxableobligations,andallinterestreceivedontheBondsistobe includedinthegrossincomeoftheHolderofanyBondforfederalincometaxationpurposes and,tothesameextent,inbothgrossincomeandtaxablenetincomeforstateincometaxation purposes. 24.PaymentofIssuanceExpenses.TheCityauthorizesthePurchasertoforwardthe amountofBondproceedsallocabletothepaymentofissuanceexpensestotheBondRegistrar ontheclosingdateforfurtherdistributionasdirectedbythePurchaser. 25.Severability.Ifanysection,paragraphorprovisionofthisresolutionshallbeheld tobeinvalidorunenforceableforanyreason,theinvalidityorunenforceabilityofsuchsection, paragraphorprovisionshallnotaffectanyoftheremainingprovisionsofthisresolution. 26.Headings.Headingsinthisresolutionareincludedforconvenienceofreference onlyandarenotaparthereof,andshallnotlimitordefinethemeaningofanyprovisionhereof. Themotionfortheadoptionoftheforegoingresolutionwasdulysecondedbymember McGuireand,afterafulldiscussionthereofanduponavotebeingtakenthereon,thefollowing votedinfavorthereof:Hedberg,Keeney,McGuire,MortonandThompson andthefollowingvotedagainstthesame:None. Whereupontheresolutionwasdeclareddulypassedandadopted. 19 7000395v2 TAXLEVIES ImprovementPortionoftheBonds YearofTaxLevyYearofTaxCollectionAmount 20152016$386.52 201620173,094.35 201720183,458.26 201820198,988.19 201920209,142.12 202020219,217.31 202120229,239.99 StreetReconstructionPortionoftheBonds YearofTaxLevyYearofTaxCollectionAmount 20152016$292,932.94 20162017257,635.88 20172018696,430.88 20182019372,169.88 20192020214,375.88 20202021320,935.13 20212022456,290.63 7000395v1