City Council Resolution 2020-58Extract of Minutes of Meeting
of the City Council of the City of
Monticello, Wright County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City of Monticello,
Minnesota, was duly held in the City Hall in said City on August 10, 2020, commencing at 6:30 P.M.
The following members were present:
Davidson, Fair, Gabler, Hilgart, and Stumpf
and the following were absent:
None.
The resolution was presented by Member Hilgart , who moved its adoption;
The motion for the adoption of the consent agenda was duly seconded by Member Davidson
and upon vote being taken thereon the following members voted in favor of the motion:
Davidson, Fair, Gabler, Hilgart, and Stumpf
and the following voted against:
None.
whereupon the resolution was declared duly passed and adopted.
MN 190-164-659S99.v2
follows:
CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
RESOLUTION NO. 2020-58
A RESOLUTION AWARDING THE SALE OF GENERAL
OBLIGATION IMPROVEMENT BONDS, SERIES 2020A, IN THE
ORIGINAL AGGREGATE PRINCIPAL AMOUNT OF $2,1559000;
FIXING THEIR FORM AND SPECIFICATIONS; DIRECTING
THEIR EXECUTION AND DELIVERY; AND PROVIDING FOR
THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Monticello, Minnesota (the "City"), as
Section 1. Sale of Bonds.
1.01 Authority. It is hereby determined that:
(a) Certain assessable public improvements designated as the 2020 Street
Improvements Project, City Project No. 200001 (the "Improvements"), have been made, duly
ordered or contracts let for the construction thereof pursuant to the provisions of Minnesota
Statutes, Chapters 429 and 475, as amended (collectively, the "Act").
(b) It is necessary and expedient to the sound financial management of the affairs of
the City to issue its General Obligation Improvement Bonds, Series 2020A (the "Bonds"), in the
original aggregate principal amount of $2,155,000, pursuant to the Act, to provide financing for the
Improvements.
(c) The City desires to proceed with the sale of the Bonds by direct negotiation with
Northland Securities, Inc. (the "Purchaser"). The Purchaser will purchase the Bonds in an arm's
length commercial transaction with the City. The City hereby retains Blue Rose Capital Advisors,
Inc. in Minneapolis, Minnesota ("Blue Rose") to act as an independent financial advisor for the
purpose of reviewing the pricing fairness associated with the purchase and subsequent reoffering
of the Bonds. The Mayor and/or the City Administrator of the City is hereby authorized to execute
an agreement with Blue Rose for an amount not to exceed $1,800. It being thus determined that
the City has retained an independent municipal advisor in connection with such sale, the City is
authorized by Section 475.60, subdivision 2(9) of the Act to negotiate the sale of the Bonds.
1.02. Award to the Purchaser and Interest Rates. The proposal of the Purchaser, to purchase the
Bonds of the City is hereby found and determined to be a reasonable offer and is hereby accepted, the
proposal being to purchase the Bonds at a price of $2,223,955 (par amount of $2,155,000, plus an original
issue premium of $101,280, less underwriter's discount of $32,325), plus accrued interest, if any, to date
of delivery for Bonds bearing interest as follows:
MN 190-164-659599.v2 2
Year
Interest Rate
Year
Interest Rate
2021
2.00%
2026
2.00%
2022
2.00
2027
2.00
2023
2.00
2028
2.00
2024
2.00
2030*
1.00
2025
0.45
*Term Bond
True interest cost:
0.9491005%
1.03. Purchase Contract. The Mayor and City Administrator are directed to execute a contract with
the Purchaser on behalf of the City.
1.04. Ten -ns and Principal Amounts of the Bonds. The City will forthwith issue and sell the Bonds
pursuant to the Act in the total principal amount of $2,155,000, originally dated September 9, 2020, in the
denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward, bearing interest
as above set forth, and maturing serially on December 15 in the years and amounts as follows:
Year
Amount
Year
Amount
2021
$1901000
2026
$21500
2022
205,000
2027
2203000
2023
21000
2028
22500
2024
21000
2030*
465,000
2025
21500
*Terni Bond
1.05. Optional Redemption. The City may elect on December 15, 2028, and on any day thereafter
to prepay Bonds due on or after December 15, 2029. Redemption may be in whole or in part and if in part, at
the option of the City and in such manner as the City will determine. If less than all Bonds of a maturity are
called for redemption, the City will notify DTC (as defined in Section 7 hereof) of the particular amount of
such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest in such
maturity to be redeemed and each participant will then select by lot the beneficial ownership interests in such
maturity to be redeemed. Prepayments will be at a price of par plus accrued interest.
1.06. Mandatory Redemption; Term Bonds. The Bond maturing on 2030 shall hereinafter be
referred to as the "Term Bond." The principal amount of the Term Bond subject to mandatory sinking fund
redemption on any date may be reduced through earlier optional redemptions, with any partial redemptions of
the Term Bond credited against future mandatory sinking fund redemptions of such Term Bond in such order
as the City shall determine. The Term Bond are subject to mandatory sinking fund redemption and shall be
redeemed in part at par plus accrued interest on December 15 of the following years and in the principal
amounts as follows:
Sinkin4 Fund Installment Date
Tenn Bond Principal Amount
2029 $2305000
2030* 235,000
* Maturity
MN 190-164-659599.v2 3
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The interest
thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check or draft issued
by the Registrar described herein.
2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest payment
date preceding the date of authentication to which interest on the Bond has been paid or made available
for payment, unless (i) the date of authentication is an interest payment date to which interest has been
paid or made available for payment, in which case the Bond will be dated as of the date of authentication,
or (ii) the date of authentication is prior to the first interest payment date, in which case the Bond will be
dated as of the date of original issue. The interest on the Bonds is payable on June 15 and December 15
of each year, commencing June 15, 2021, to the registered owners of record thereof as of the close of
business on the last day of the preceding month, whether or not such day is a business day.
2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating agent
and paying agent (the "Registrar"). The effect of registration and the rights and duties of the City and the
Registrar with respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate trust office a bond
register in which the Registrar provides for the registration of ownership of Bonds and the
registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by the
registered owner thereof or accompanied by a written instrument of transfer, in form satisfactory
to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized
by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the
designated transferee or transferees, one or more new Bonds of a like aggregate principal amount
and maturity, as requested by the transferor. The Registrar may, however, close the books for
registration of any transfer after the last day of the month preceding each interest payment date and
until that interest payment date.
(c) Exchanp-e of Bonds. When Bonds are surrendered by the registered owner for
exchange the Registrar will authenticate and deliver one or more new Bonds of a like aggregate
principal amount and maturity as requested by the registered owner or the owner's attorney in
writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly
cancelled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the Registrar for
transfer, the Registrar may refuse to transfer the Bond until the Registrar is satisfied that the
endorsement on the Bond or separate instrument of transfer is valid and genuine and that the
requested transfer is legally authorized. The Registrar will incur no liability for the refusal, in good
faith, to make transfers which it, in its judgment, deems improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person in
whose name a Bond is registered in the bond register as the absolute owner of the Bond, whether
the Bond is overdue or not, for the purpose of receiving payment of, or on account of, the principal
of and interest on the Bond and for all other purposes and payments so made to registered owner
MN 190-164-659599.v2 4
or upon the owner's order will be valid and effectual to satisfy and discharge the liability upon the
Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charizes. The Registrar may impose a charge upon the owner
thereof for a transfer or exchange of Bonds, sufficient to reimburse the Registrar for any tax, fee or
other governmental charge required to be paid with respect to the transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or is
destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number, maturity
date and tenor in exchange and substitution for and upon cancellation of the mutilated Bond or in
lieu of and in substitution for any Bond destroyed, stolen or lost, upon the payment of the reasonable
expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed,
stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the Bond was
destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an
appropriate bond or indemnity in form, substance and amount satisfactory to it and as provided by
law, in which both the City and the Registrar must be named as obligees. Bonds so surrendered to
the Registrar will be cancelled by the Registrar and evidence of such cancellation must be given to
the City. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for
redemption in accordance with its terms it is not necessary to issue a new Bond prior to payment.
(i) Redemption. In the event any of the Bonds are called for redemption, notice thereof
identifying the Bonds to be redeemed will be given by the Registrar by mailing a copy of the
redemption notice by first class mail (postage prepaid) to the registered owner of each Bond to be
redeemed at the address shown on the registration books kept by the Registrar and by publishing the
notice if required by law. Failure to give notice by publication or by mail to any registered owner, or
any defect therein, will not affect the validity of the proceedings for the redemption of Bonds. Bonds
so called for redemption will cease to bear interest after the specified redemption date, provided that
the funds for the redemption are on deposit with the place of payment at that time.
2.04. Appointment of Initial Registrar. The City appoints U.S. Bank National Association, St.
Paul, Minnesota, as the initial Registrar. The Mayor and the City Administrator are authorized to execute
and deliver, on behalf of the City, a contract with the Registrar. Upon merger or consolidation of the
Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by
law to conduct such business, the resulting corporation is authorized to act as successor Registrar. The City
agrees to pay the reasonable and customary charges of the Registrar for the services performed. The City
reserves the right to remove the Registrar upon thirty (30) days' notice and upon the appointment of a
successor Registrar, in which event the predecessor Registrar must deliver all cash and Bonds in its
possession to the successor Registrar and must deliver the bond register to the successor Registrar. On or
before each principal or interest due date, without further order of this City Council, the City Finance
Director must transmit to the Registrar moneys sufficient for the payment of all principal and interest then
due.
2.05. Execution, Authentication and Deliverv. The Bonds will be prepared under the direction
of the City Administrator and executed on behalf of the City by the signatures of the Mayor and the City
Administrator, provided that those signatures may be printed, engraved or lithographed facsimiles of the
originals. If an officer whose signature or a facsimile of whose signature appears on the Bonds ceases to
be such officer before the delivery of a Bond, that signature or facsimile will nevertheless be valid and
sufficient for all purposes, the same as if the officer had remained in office until delivery. Notwithstanding
such execution, a Bond will not be valid or obligatory for any purpose or entitled to any security or benefit
under this resolution unless and until a certificate of authentication on the Bond has been duly executed by
the manual signature of an authorized representative of the Registrar. Certificates of authentication on
MN 190-164-659599.v2 5
different Bonds need not be signed by the same representative. The executed certificate of authentication
on a Bond is conclusive evidence that it has been authenticated and delivered under this resolution. When
the Bonds have been so prepared, executed and authenticated, the City Administrator will deliver the same
to the Purchaser upon payment of the purchase price in accordance with the contract of sale heretofore
made and executed, and the Purchaser is not obligated to see to the application of the purchase price.
Section 3. Form of Bond.
3.01. Execution of the Bonds. The Bonds will be printed or typewritten in substantially the form
set forth in EXHIBIT A.
3.02. Approving Legal Opinion. The City Administrator is authorized and directed to obtain a
copy of the proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota,
which is to be complete except as to dating thereof and cause the opinion to be printed on or accompany
each Bond.
Section 4. Pavment; Securitv; Pledges and Covenants.
4.01. Debt Service Fund. The Bonds will be payable from the General Obligation Improvement
Bonds, Series 2020A Debt Service Fund (the "Debt Service Fund") hereby created. The Debt Service Fund
shall 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 City Finance Director shall
timely deposit in the Debt Service Fund the special assessments levied against property specially benefited
by the Improvements (the "Assessments") and the ad valorem taxes hereinafter levied (the "Taxes"), which
are pledged to the Debt Service Fund. There is also appropriated to the Debt Service Fund capitalized
interest financed from the proceeds of the Bonds, if any.
4.02. Construction Fund. The City hereby creates the General Obligation Improvement Bonds,
Series 2020A Construction Fund (the "Construction Fund"). Proceeds of the Bonds, less the appropriations
made in Section 4.01 hereof, together with the Assessments and Taxes and any other funds appropriated
for the Improvements collected during the construction of the Improvements, will be deposited in the
Construction Fund to be used solely to defray expenses of the Improvements and the payment of principal
of and interest on the Bonds prior to the completion and payment of all costs of the Improvements. Any balance
remaining in the Construction Fund after completion of the Improvements may be used to pay the cost in whole
or in part of any other improvement instituted under the Act, under the direction of the City Council. When
the Improvements are completed and the cost thereof paid, the Construction Fund is to be closed and any
subsequent collections of Assessments and Taxes for the Improvements are to be deposited in the Debt Service
Fund.
4.03. City Covenants. It is hereby determined that the Improvements will directly and indirectly
benefit abutting property, and the City hereby covenants with the holders from time to time of the Bonds
as follows:
(a) The City has caused or will cause the Assessments for the Improvements to be
promptly levied so that the first installment will be collectible not later than 2021 and will take all
steps necessary to assure prompt collection, and the levy of the Assessments is hereby authorized.
The City Council will cause to be taken with due diligence all further actions that are required for
the construction of each Improvement financed wholly or partly from the proceeds of the Bonds,
and will take all further actions necessary for the final and valid levy of the Assessments and the
appropriation of any other funds needed to pay the Bonds and interest thereon when due.
MN 190-164-659599.v2
(b) In the event of any current or anticipated deficiency in Assessments and Taxes, the
City Council will levy additional ad valorem taxes in the amount of the current or anticipated
deficiency.
(c) The City will keep complete and accurate books and records showing receipts and
disbursements in connection with the Improvements, Assessments and Taxes levied therefor and
other funds appropriated for their payment, collections thereof and disbursements therefrom,
monies on hand, and the balance of unpaid Assessments.
(d) The City will cause its books and records to be audited at least annually and will
furnish copies of such audit reports to any interested person upon request.
(e) At least twenty percent (20%) of the cost of the assessable Improvements described
herein will be specially assessed against benefited properties.
4.04. General Oblii4ation Pledge. 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 will
be and are hereby irrevocably pledged. If a payment of principal of or interest on the Bonds becomes due
when there is not sufficient money in the Debt Service Fund to pay the same, the Finance Director is directed
to pay such principal or interest from the general fund of the City, and the general fund will be reimbursed
for those advances out of the proceeds of Assessments and Taxes when collected.
4.05. Pledp-e of Tax Levy. For the purpose of paying a portion of the principal of and interest on
the Bonds, there is levied a direct annual irrepealable ad valorem tax upon all of the taxable property in the
City, which will be spread upon the tax rolls and collected with and as part of other general taxes of the
City. The Taxes will be credited to the Debt Service Fund above provided and will be in the years and
amounts as attached hereto as EXHIBIT B.
4.06. Certification to Countv Auditor/Treasurer as to Debt Service Fund Amount. It is hereby
determined that the estimated collections of Assessments and the foregoing Taxes 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 levy herein provided is irrepealable until all of the Bonds are paid, provided that at the time
the City makes its annual tax levies the City Administrator may certify to the County Auditor/Treasurer of
Wright County, Minnesota (the "County Auditor/Treasurer") the amount available in the Debt Service Fund
to pay principal and interest due during the ensuing year, and the County Auditor/Treasurer will thereupon
reduce the levy collectible during such year by the amount so certified.
4.07. Certificate of County Auditor/Treasurer as to Registration of Resolution. The City
Administrator is authorized and directed to file a certified copy of this resolution with the County
Auditor/Treasurer and to obtain the certificate required by Section 475.63 of the Act.
Section 5. Authentication of Transcript.
5.01. Citv Proceedings and Records. The officers of the City are authorized and directed to
prepare and furnish to the Purchaser and to the attorneys approving the Bonds certified copies of
proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the
City, and such other certificates, affidavits and transcripts as may be required to show the facts within their
knowledge or as shown by the books and records in their custody and under their control, relating to the
validity and marketability of the Bonds, and such instruments, including any heretofore furnished, may be
deemed representations of the City as to the facts stated therein.
MN 190-164-659599.v2 7
5.02. Certification as to Official Statement. The Mayor, the City Administrator, and the Finance
Director are authorized and directed to certify that they have examined the Official Statement prepared and
circulated in connection with the issuance and sale of the Bonds and that to the best of their knowledge and
belief the Official Statement is a complete and accurate representation of the facts and representations made
therein as of the date of the Official Statement.
5.03. Other Certificates. The Mayor, the City Administrator, and the Finance Director are hereby
authorized and directed to furnish to the Purchaser at the closing such certificates as are required as a
condition of sale. Unless litigation shall have been commenced and be pending questioning the Bonds or
the organization of the City or incumbency of its officers, at the closing the Mayor, the City Administrator,
and the Finance Director shall also execute and deliver to the Purchaser a suitable certificate as to absence
of material litigation, and the City Finance Director shall also execute and deliver a certificate as to payment
for and delivery of the Bonds.
Section 6. Tax Covenant.
6.01. Tax -Exempt Bonds. The City covenants and agrees with the holders from time to time of
the Bonds that it will not take or permit to be taken by any of its officers, employees or agents any action
which would cause the interest on the Bonds to become subject to taxation under the Internal Revenue Code
of 1986, as amended (the "Code"), and the Treasury Regulations promulgated thereunder, in effect at the
time of such actions, and that it will take or cause its officers, employees or agents to take, all affirmative
action within its power that may be necessary to ensure that such interest will not become subject to taxation
under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and
made applicable to the Bonds.
6.02. No Rebate Required.
(a) The City will comply with requirements necessary under the Code to establish and
maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the
Code, including without limitation requirements relating to temporary periods for investments,
limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of
excess investment earnings to the United States, if the Bonds (together with other obligations
reasonably expected to be issued in calendar year 2020) exceed the small -issuer exception amount
of $5,000,000.
(b) For purposes of qualifying for the small issuer exception to the federal arbitrage
rebate requirements, the City finds, determines and declares that the aggregate face amount of all
tax-exempt bonds (other than private activity bonds) issued by the City (and all subordinate entities
of 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.
6.03. Not Private Activitv Bonds. The City further covenants not to use the proceeds of the
Bonds or to cause or permit them or any of them to be used, 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.
6.04. Qualified Tax -Exempt Obliizations. In order to qualify the Bonds as "qualified tax-exempt
obligations" within the meaning of Section 265(b)(3) of the Code, the City makes the following factual
statements and representations:
(a) the Bonds are not "private activity bonds" as defined in Section 141 of the Code;
MN190-164-659599.v2 8
(b) the City designates the Bonds as "qualified tax-exempt obligations" for purposes
of Section 265(b)(3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations (other than any
private activity bonds that are not qualified 501(c)(3) bonds) which will be issued by the City (and
all subordinate entities of the City) during calendar year 2020 will not exceed $10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City during calendar year
2020 have been designated for purposes of Section 265(b)(3) of the Code.
6.05. Procedural Requirements. The City will use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate the designations made by this section.
Section 7. Book -Entry Svstem; Limited Obliization of City.
7.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten or
printed fully registered Bond for each of the maturities set forth in Section 1.04 hereof. Upon initial
issuance, the ownership of each Bond will be registered in the registration books kept by the Registrar in
the name of Cede & Co., as nominee for The Depository Trust Company, New York, New York, and its
successors and assigns ("DTC"). Except as provided in this section, all of the outstanding Bonds will be
registered in the registration books kept by the Registrar in the name of Cede & Co., as nominee of DTC.
7.02. Participants. With respect to Bonds registered in the registration books kept by the
Registrar in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying Agent will
have no responsibility or obligation to any broker dealers, banks and other financial institutions from time
to time for which DTC holds Bonds as securities depository (the "Participants") or to any other person on
behalf of which a Participant holds an interest in the Bonds, including but not limited to any responsibility
or obligation with respect to (i) the accuracy of the records of DTC, Cede & Co. or any Participant with
respect to any ownership interest in the Bonds, (ii) the delivery to any Participant or any other person (other
than a registered owner of Bonds, as shown by the registration books kept by the Registrar) of any notice
with respect to the Bonds, including any notice of redemption, or (iii) the payment to any Participant or any
other person, other than a registered owner of Bonds, of any amount with respect to principal of, premium,
if any, or interest on the Bonds. The City, the Registrar and the Paying Agent may treat and consider the
person in whose name each Bond is registered in the registration books kept by the Registrar as the holder
and absolute owner of such Bond for the purpose of payment of principal, premium and interest with respect
to such Bond, for the purpose of registering transfers with respect to such Bonds, and for all other purposes.
The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on the
order of the respective registered owners, as shown in the registration books kept by the Registrar, and all
such payments will be valid and effectual to fully satisfy and discharge the City's obligations with respect
to payment of principal of, premium, if any, or interest on the Bonds to the extent of the sum or sums so
paid. No person other than a registered owner of Bonds, as shown in the registration books kept by the
Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon delivery by
DTC to the City Administrator of a written notice to the effect that DTC has determined to substitute a new
nominee in place of Cede & Co., the words "Cede & Co." will refer to such new nominee of DTC; and
upon receipt of such a notice, the City Administrator will promptly deliver a copy of the same to the
Registrar and Paying Agent.
7.03. Representation Letter. The City has heretofore executed and delivered to DTC a Blanket
Issuer Letter of Representations (the "Representation Letter") which will govern payment of principal of,
premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any Paying Agent or
MN 190-164-659599.v2 9
Registrar subsequently appointed by the City with respect to the Bonds will agree to take all action
necessary for all representations of the City in the Representation Letter with respect to the Registrar and
Paying Agent, respectively, to be complied with at all times.
7.04. Transfers Outside Book -Entry Svstem. In the event the City, by resolution of the City
Council, determines that it is in the best interests of the persons having beneficial interests in the Bonds that
they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC will notify the
Participants, of the availability through DTC of Bond certificates. In such event the City will issue, transfer
and exchange Bond certificates as requested by DTC and any other registered owners in accordance with
the provisions of this resolution. DTC may detennine to discontinue providing its services with respect to
the Bonds at any time by giving notice to the City and discharging its responsibilities with respect thereto
under applicable law. In such event, if no successor securities depository is appointed, the City will issue
and the Registrar will authenticate Bond certificates in accordance with this resolution and the provisions
hereof will apply to the transfer, exchange and method of payment thereof.
7.05. Payments to Cede & Co. Notwithstanding any other provision of this resolution to the
contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC, payments with
respect to principal of, premium, if any, and interest on the Bond and all notices with respect to the Bond
will be made and given, respectively in the manner provided in DTC's Operational Arrangements, as set
forth in the Representation Letter.
Section 8. Continuini4 Disclosure.
8.01. Execution of Continuing Disclosure Certificate. "Continuing Disclosure Certificate"
means that certain Continuing Disclosure Certificate executed by the Mayor and City Administrator and
dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from
time to time in accordance with the terms thereof.
8.02. Citv Compliance with Provisions of Continuinp, Disclosure Certificate. The City hereby
covenants and agrees that it will comply with and carry out all of the provisions of the Continuing
Disclosure Certificate. Notwithstanding any other provision of this resolution, failure of the City to comply
with the Continuing Disclosure Certificate is not to be considered an event of default with respect to the
Bonds; however, any Bondholder may take such actions as may be necessary and appropriate, including
seeking mandate or specific performance by court order, to cause the City to comply with its obligations
under this section.
Section 9. Defeasance. When all Bonds and all interest thereon have been discharged as
provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the
Bonds will cease, except that the pledge of the full faith and credit of the City for the prompt and full payment
of the principal of and interest on the Bonds will remain in full force and effect. The City may discharge all
Bonds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for
the payment thereof in full. If any Bond should not be paid when due, it may nevertheless be discharged by
depositing with the Registrar a sum sufficient for the payment thereof in full with interest accrued to the date
of such deposit.
MN190-164-659599.v2 10
ADOPTED BY the City Council of the City of Monticello, Minnesota, this 10th day of August, 2020.
ATTEST:
t
JeffQNe' , City
MN190-164-659599.v2
Administrator
Brian Stumpf, Mayor
No. R -
EXHIBIT A
FORM OF BOND
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF MONTICELLO
GENERAL OBLIGATION IMPROVEMENT BOND
SERIES 2020A
Date of
Rate Maturity Original Issue CUSIP
% December 15, 20_ September 9, 2020 614468
Registered Owner: Cede & Co.
The City of Monticello, Minnesota, a duly organized and existing municipal corporation in Wright
County, Minnesota (the "City"), acknowledges itself to be indebted and for value received hereby promises
to pay to the Registered Owner specified above or registered assigns, the principal sum of $ on
the maturity date specified above, with interest thereon from the date hereof at the annual rate specified
above (calculated on the basis of a 360 day year of twelve 30 day months), payable June 15 and December 15
in each year, commencing June 15, 2021, to the person in whose name this Bond is registered at the close
of business on the last day (whether or not a business day) of the immediately preceding month. The interest
hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of
the United States of America by check or draft by U.S. Bank National Association, St. Paul, Minnesota, as
Bond Registrar, Paying Agent, Transfer Agent and Authenticating Agent, or its designated successor under
the Resolution described herein. For the prompt and full payment of such principal and interest as the same
respectively become due, the full faith and credit and taxing powers of the City have been and are hereby
irrevocably pledged.
The City may elect on December 15, 2028, and on any day thereafter to prepay Bonds due on or after
December 15, 2029. Redemption may be in whole or in part and if in part, at the option of the City and in such
manner as the City will determine. If less than all Bonds of a maturity are called for redemption, the City will
notify The Depository Trust Company ("DTC") of the particular amount of such maturity to be prepaid. DTC
will determine by lot the amount of each participant's interest in such maturity to be redeemed and each
participant will then select by lot the beneficial ownership interests in such maturity to be redeemed.
Prepayments will be at a price of par plus accrued interest.
The Bond maturing on 2030 shall hereinafter be referred to as the "Term Bond." The principal amount
of the Term Bond subject to mandatory sinking fund redemption on any date may be reduced through earlier
optional redemptions, with any partial redemptions of the Term Bond credited against future mandatory sinking
fund redemptions of such Term Bond in such order as the City shall determine. The Term Bond are subject to
mandatory sinking fund redemption and shall be redeemed in part at par plus accrued interest on December 15
of the following years and in the principal amounts as follows:
MN 190-164-659599.v2 A-1
Sinkinv- Fund Installment Date
Term Bond Principal Amount
2029
2030*
* Maturity
$230,000
235,000
This Bond is one of an issue in the aggregate principal amount of $2,155,000 all of like original
issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued
pursuant to a resolution adopted by the City Council on August 10, 2020 (the "Resolution"), for the purpose
of providing money to defray the expenses incurred and to be incurred in making local improvements,
pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including
Minnesota Statutes, Chapters 429 and 475, as amended, and the principal hereof and interest hereon are
payable in part from special assessments against property specially benefited by local improvements and in
part from ad valorem taxes for the City's share of the cost of the improvements, as set forth in the Resolution
to which reference is made for a full statement of rights and powers thereby conferred. The full faith and
credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself
to levy additional ad valorem taxes on all taxable property in the City in the event of any deficiency in
special assessments and taxes pledged, which additional taxes may be levied without limitation as to rate
or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000
or any integral multiple thereof of single maturities.
The City Council has designated the issue of Bonds of which this Bond forms a part as "qualified
tax-exempt obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as
amended (the "Code") relating to disallowance of interest expense for financial institutions and within the
$10 million limit allowed by the Code for the calendar year of issue.
As provided in the Resolution and subject to certain limitations set forth therein, this Bond is
transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner
hereof in person or by the owner's attorney duly authorized in writing, upon surrender hereof together with
a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner
or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized
denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in
the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at
the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental
charge required to be paid with respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving
payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any
notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions
and things required by the Constitution and laws of the State of Minnesota, to be done, to exist, to happen
and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding
general obligation of the City in accordance with its terms, have been done, do exist, have happened and
have been performed as so required, and that the issuance of this Bond does not cause the indebtedness of
the City to exceed any constitutional or statutory limitation of indebtedness.
MN 190-164-659599.v2 A-2
This Bond is not valid or obligatory for any purpose or entitled to any security or benefit under the
Resolution until the Certificate of Authentication hereon has been executed by the Bond Registrar by
manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Monticello, Wright County, Minnesota, by its City Council,
has caused this Bond to be executed on its behalf by the facsimile or manual signatures of the Mayor and
City Administrator and has caused this Bond to be dated as of the date set forth below.
Dated: September 9, 2020
CITY OF MONTICELLO, MINNESOTA
(_Facsimile) (Facsimile)
Mayor City Administrator
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S. BANK NATIONAL ASSOCIATION
LODZ
Authorized Representative
ABBREVIATIONS
The following abbreviations, when used in the inscription on the face of this Bond, will 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 entireties
JT TEN -- as joint tenants with right of
survivorship and not as tenants in common
UNIF GIFT MIN ACT
Custodian
(Cust) (Minor)
under Uniform Gifts or Transfers to Minors
Act, State of
Additional abbreviations may also be used though not in the above list.
MN l 90-164-659599.v2 A-3
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and all rights thereunder, and does
hereby irrevocably constitute and appoint attorney to transfer the said Bond
on the books kept for registration of the within Bond, 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:
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the Securities
Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program ("SEMP"), the
New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other such "signature guarantee
program" as may be determined by the Registrar in addition to, or in substitution for, STAMP, SEMP or
MSP, all in accordance with the Securities Exchange Act of 1934, as amended.
The Registrar will not effect transfer of this Bond unless the information concerning the assignee
requested below is provided.
Name and Address:
(Include information for all joint owners if this Bond is
held by joint account.)
Please insert social security or other identifying
number of assignee
MN 190-164-659599.v2 A-4
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on the books
of the Registrar in the name of the person last noted below.
Date of Registration Registered Owner
Cede & Co.
September 9, 2020 Federal ID #13-2555119
MN 190-164-659599.v2 A-5
Signature of
Officer of Registrar
EXHIBIT B
TAX LEVY SCHEDULE
YEAR * TAX LEVY
2021
$117,585.56
2022
123,195.62
2023
126,690.38
2024
124,830.12
2025
128,219.88
2026
129,753.74
2027
1331038.50
2028
1361218.24
2029
139,293.00
2030
144,677.74
* Year tax levy collected.
MN 190-164-659599.v2 B
STATE OF MINNESOTA )
COUNTY OF WRIGHT ) SS.
CITY OF MONTICELLO )
1, the undersigned, being the duly qualified and City Administrator of the City of Monticello,
Minnesota (the "City"), do hereby certify that I have carefully compared the attached and foregoing extract
of minutes of a regular meeting of the City Council of said City held on August 10, 2020, with the original
thereof on file in my office and the same is a full, true and correct copy thereof insofar as the same relates
to the issuance and sale of the City's General Obligation Improvement Bonds, Series 2020A, in the original
aggregate principal amount of $2,155,000.
WITNESS my hand as such City Administrator and the corporate seal of the City this day
of 52020.
Ci mistrator
City of Monticello, Minnesota
(SEAL)
MN 190-164-659599.v2
STATE OF MINNESOTA CERTIFICATE OF COUNTY
AUDITOR/TREASURER AS TO
COUNTY OF WRIGHT TAX LEVY AND REGISTRATION
I, the undersigned County Auditor/Treasurer of Wright County, Minnesota, hereby certify that a
resolution adopted by the City Council of the City of Monticello, Minnesota (the "City"), on August 10,
2020, levying taxes for the City's General Obligation Improvement Bonds, Series 2020A, in the original
aggregate principal amount of $2,155,000, dated September 9, 2020, has been filed in my office and said
obligations have been registered on the register of obligations in my office and that such tax has been levied
as required by law.
WITNESS My hand and official seal this day of 12020.
COUNTY AUDITOR/TREASURER,
WRIGHT COUNTY, MINNESOTA
:A
Its
(SEAL)
MN 190-164-659599.v2