City Council Resolution 2010-54RESOLUTION NO. 2010-54
A RESOLUTION AWARDING THE SALE OF
$3,255,000 GENERAL OBLIGATION
IMPROVEMENT AND REFUNDING BONDS, SERIES 2010A
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, Wright County,
Minnesota (the "City") as follows:
Section 1. Sale of Bonds.
1.01 It is hereby determined that:
(a) the following assessable public improvements (the "Improvements") have
been made, duly ordered or contracts let for the construction thereof, by the City pursuant
to the provisions of Minnesota Statutes, Chapter 429 (the "Improvement Act"), at the
following estimated cost;
Project Designation & Description:
2010 Street Improvements and
Highway 25/Co. Rd 75 Improvements
Project Construction Fund
Costs of Issuance
Underwriter's Discount
Capitalized Interest
Contingency
Total Project Costs:
Total Project Cost
$2,645,209.00
35,419.35
27,450.00
28,888.93
8,032.72
$2,745,000
(b) it is necessary and expedient to the sound financial management of the
affairs of the City to issue approximately $2,745,000 General Obligation Improvement
Bonds pursuant to the Improvement Act to provide financing for the Improvements;
(c) the City is further authorized by Minnesota Statutes, Chapter 475
(the "Act") and Section 475.67, Subdivision 3, of the Act to issue and sell its general
obligation bonds to refund obligations and the interest thereon before the due date of the
obligations, if consistent with covenants made with the holders thereof, when determined
by the City Council to be necessary or desirable for the reduction of debt service cost to
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available for their payment;
3736150 MM MN190-138
(d) Section 475.67, subdivision 4 of the Act permits the sale of refunding
obligations during the six month period prior to the date on which the obligations to be
refunded may be called for redemption;
(e) it is necessary and desirable to reduce debt service costs that the City issue
approximately $510,000 General Obligation Improvement Refunding Bonds to refund
certain outstanding general obligations of the City;
(f) the outstanding bonds to be refunded (the "Refunded Bonds") consist of
the $2,420,000 General Obligation Improvement Bonds, Series 2002, dated December
305 2002, of which $865,000 in principal amount is currently outstanding and is callable
on October 1, 2010.
(g) The City is authorized by Minnesota Statutes, section 475.60, subdivision
2(9) to negotiate the sale of its bonds, it being determined that the City has retained an
independent financial adviser in connection with such sale. The actions of the City staff
and financial advisers in negotiating the sale of its bonds are ratified and confirmed in all
aspects.
1.02. The proposal of United Bankers' Bank (the "Purchaser") to purchase $3,255,000
General Obligation Improvement and Refunding Bonds, Series 2010A (the "Bonds") of the City
described in the Terms of Proposal thereof 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 $3,235,470
plus accrued interest to date of delivery, for Bonds bearing interest as follows:
Year of
Interest
Year of
Interest
Maturity
Rate
Maturity
Rate
2011
0.400%
2017
1.800%
2012
0.500
2018
2.050
2013
0.600
2019
2.250
2014
0.850
2020
2.450
2015
1.050
2021
2.700
2016
1.450
True interest cost: 2.0047127%
1.03. The sum of $13,020 being the amount proposed by the Purchaser in excess of
$3,222,450 will be credited to the Debt Service Fund hereinafter created. The City Finance
Director is directed to retain the good faith check of the Purchaser, pending completion of the
sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith.
The Mayor and City Administrator are directed to execute a contract with the Purchaser on
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373615vl WTI MN190-138
1.04. The City will forthwith issue and sell the Bonds pursuant to the Improvement Act
and the Act in the total principal amount of $3,255,000, originally dated September 14, 2010, 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 February 1 in the years and amounts
as follows:
Year
Amount
Year
Amount
2011
$16000
2017
$27500
2012
415,000
2018
275,000
2013
405,000
2019
2805000
2014
32000
2020
290,000
2015
2655000
2021
3003000
2016
2705000
$2,490,000 of the Bonds (the "2010 Street Improvement Bonds") maturing in the amounts and on
the dates set forth below are being issued to finance the 2010 Street Improvements:
Year Amount
Year Amount
2012
$235,000
2017
$25000
2013
240,000
2018
25000
2014
240,000
2019
255,000
2015
240,000
2020
265,000
2016
2451000
2021
27000
$255,000 of the Bonds (the "Highway 25 & County Road 75 Improvement Bonds") maturing in the
amounts and on the dates set forth below are being issued to finance the Highway 25 & County
Road 75 Improvements:
Year Amount
Year Amount
2012
$255000
2017
$25,000
2013
25,000
2018
25,000
2014
25,000
2019
25,000
2015
25,000
2020
25,000
2016
25,000
2021
30,000
The remaining $510,000 of the Bonds (the "Current Refunding Bonds") maturing in the amounts
and on the dates set forth below are being issued to redeem and prepay the Refunded Bonds:
373615v1 MNI MN190-138
Year Amount Year Amount
2011 $16000 2013 $140,000
2012 155,000 2014 55,000
1.05. Optional Redemption. The City may elect on February 1, 2019, and on any day
thereafter to prepay Bonds due on or after February 1, 2020. 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.
Section 2. Registration and Pam.
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 February 1 and August 1 of each year, commencing February 1,
2011, to the registered owners of record thereof as of the close of business on the fifteenth day
of the immediately preceding month, whether or not that day is a business day.
2.03. Registration. The City will appoint a bond registrar, transfer agent, authenticating
agent and paying agent (Registrar). The effect of registration and the rights and duties of the
City and the Registrar with respect thereto are as follows:
(a) Re ig ster. 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
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authenticate and deliver, in the name of the designated transferee or transferees, one or
373615v1 NINI MN190-138
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 fifteenth day of the month preceding each interest payment date and until that
interest payment date.
(c) Exchange 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.
(0 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 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 Charges. 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 a 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
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be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured
373615v1 MNI MN190-138
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 Re ig strar. The City appoints Bond Trust Services
Corporation, Roseville, 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 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 Council,
the City Finance Director must transmit to the Registrar monies sufficient for the payment of all
principal and interest then due.
2.05. Execution, Authentication and Delivery. 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
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.
3736150 MM MN190-138
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive
Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3
with such changes as may be necessary to reflect more than one maturity in a single temporary
bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be
exchanged therefor and cancelled.
No. R -
Section 3. Form of Bond.
3.01. The Bonds will be printed or typewritten in substantially the following form:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF MONTICELLO
GENERAL OBLIGATION IMPROVEMENT AND
REFUNDING BOND, SERIES 2010A
Date of
Rate Maturity Original Issue CUSIP
February 1, 20_ September 14, 2010
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, payable February 1 and August 1 in each
year, commencing February 1, 2011, to the person in whose name this Bond is registered at the
close of business on the fifteenth 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 Bond
Trust Services Corporation, Roseville, 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.
3736150 NN1 NlN190-138
The City may elect on February 1, 2019, and on any day thereafter to prepay Bonds due
on or after February 1, 2010. 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.
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 $30 million limit allowed by the Code for the calendar year
of issue.
This Bond is one of an issue in the aggregate principal amount of $3,255,000 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 23, 2010
(the "Resolution"), for the purpose of providing money to defray the expenses incurred and to be
incurred in making local improvements and to refund the outstanding principal amount of certain
general obligation bonds of the City, pursuant to and in full conformity with the Constitution and
laws of the State of Minnesota, including Minnesota Statutes, Chapter 429 and Section 475.67,
and the principal hereof and interest hereon are payable from special assessments against
property specially benefited by local improvements and 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.
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.
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registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose
3736150 NIM NW 190-138
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.
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:
CITY OF MONTICELLO, MINNESOTA
(Facsimile) (Facsimile)
City Administrator Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
BOND TRUST SERVICES
CORPORATION
Do
373615vl NNI MN190-138
Authorized Representative
The following abbreviations, when used in the inscription on the face of this Bond, will
be constructed as though they were written out in full according to applicable laws or
regulations:
TEN COM -- as tenants UNIF GIFT MIN ACT Custodian
in common (Gust) (Minor)
TEN ENT -- as tenants under Uniform Gifts or
by entireties Transfers to Minors
JT TEN -- as joint tenants with
right of survivorship and Act . . . . . . . . . . . .
not as tenants in common (State)
Additional abbreviations may also be used though not in the above list.
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
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Act of 1934, as amended. tJ
3736150 N ff NIN190-138
The Bond 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
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.
Federal ID #13-2555119
Signature of
Officer of Re ig strar
3.02. The City Administrator is 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 to cause the opinion to be printed on or accompany each
Bond.
Section 4. Payment; Security; Pledges and Covenants.
4.01. (a) The Bonds are payable from the Improvement and Refunding Bonds, Series
2010A Debt Service Fund (the "Debt Service Fund") hereby created, and the proceeds of general
taxes hereinafter levied (the "Taxes"), and special assessments (the "Assessments") levied or to
be levied for the 2010 Street Improvements and Highway 25 and County Road 75 Improvements
financed by the Bonds and the improvements financed by the Refunded Bonds (collectively, the
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interest on the Bonds becomes due when there is not sufficient money in the Debt Service Fund
373615vl MNI N N190-138
to pay the same, the City 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 the advances out of the
proceeds of Assessments and Taxes when collected. There is appropriated to the Debt Service
Fund (i) capitalized interest financed from Bond proceeds, and (ii) any amount over the
minimum purchase price paid by the Purchaser.
(b) The proceeds of the Bonds, less the appropriations made in paragraph (a) of this
Section and less proceeds in the amount of $510,000 applied for redemption of the Refunded
Bonds under Section 5, together with any other funds appropriated for the Improvements and
Assessments and Taxes collected during the construction of the Improvements, will be deposited
in a separate construction fund (which may contain separate accounts for each Improvement) to
be used solely to defray expenses of the Improvements and the payment of principal and interest
on the Bonds prior to the completion and payment of all costs of the Improvement. 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. When the
Improvements are completed and the cost thereof paid, the construction account is to be closed
and subsequent collections of Assessments and Taxes for the Improvements are to be deposited
in the Debt Service Fund.
4.02. 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 2011
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.
(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.
3736150 MNI MN190-138
4.03. Pledge of Tax Levy. It is determined that at least 20% of the cost of the
Improvements will be specially assessed against benefited properties. For the purpose of paying
the principal of and interest on the Bonds, there is levied a direct annual irrepealable ad valorem
tax (Taxes) 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 follows (year stated
being year of collection):
Year Levy
(See Attachment B)
4.04. Certification to County Auditor 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 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 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.
4.05. The City Administrator is authorized and directed to file a certified copy of this
resolution with the County Auditor/Treasurer of Wright County and to obtain the certificate
required by Minnesota Statutes, Section 475.63.
Section 5. Refunding-, Findings; Redemption of Refunded Bonds.
5.01. The Refunded Bonds are the General Obligation Improvement Bonds, Series
2002, of the City, dated December 30, 2002, of which $865,000 in principal amount is callable
on October 1, 2010. It is hereby found and determined that based upon information presently
available from the City's financial advisers, the issuance of the Bonds is consistent with
covenants made with the holders thereof and is necessary and desirable for the reduction of debt
service cost to the municipality.
5.02. It is hereby found and determined that the Proceeds, along with other City funds,
will be sufficient to prepay all of the principal of, interest on and redemption premium (if any) on
the Refunded Bonds.
5.03. The Refunded Bonds maturing on February 1, 2011 and thereafter will be
redeemed and prepaid on October 1, 2010. The Refunded Bonds will be redeemed and prepaid
in accordance with their terms and in accordance with the terms and conditions set forth in the
forms of Notice of Call for Redemption attached hereto as Attachment C which terms and
conditions are hereby approved and incorporated herein by reference. The Registrar for the
RPf inrlarl Rnnr1C is and rlirPntarl to eanA n nrinxi of tl,a T\TntirP of RPrlamr�tinn to marl,
1 �Vl.11l�,►V\4 1IV1a%41j LJ 4 AA%.& {.V OVAA%-4 1.4 V\JV f V1 LALV 1 \V�LVV V1 1\VUVlll{J b1V 11 \.V VblVll
registered holder of the Refunded Bonds. 1 .
3736150 NII NI190-138
5.04. 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.
Section 6. Authentication of Transcript.
6.01. 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.
6.02. The Mayor, City Administrator and 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.
Section 7. Tax Covenant.
7.01. 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.
7.02. 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.
373615v1 MINI MN190-138
7.03. 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.
7.04. 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;
(b) the City hereby 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 2010 will not
exceed $30,000,000; and
(d) not more than $30,000,000 of obligations issued by the City during
calendar year 2010 have been designated for purposes of Section 265(b)(3) of the Code.
7.05. 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 8. Book -Entry System; Limited Obligation of City.
8.01. 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 1.03 hereof. Upon
initial issuance, the ownership of each Bond will be registered in the registration books kept by
the Bond 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 Bond
Registrar in the name of Cede & Co., as nominee of DTC.
8.02. With respect to Bonds registered in the registration books kept by the Bond
Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond 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
(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 UWner of Bonds, Qs shoVVn by the regiStrativn books kept by the Bvlid ReglJtrar,) of
any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to
3736150 MM MN190-138
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 Bond 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 Bond 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
Bond 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 Bond 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 Bond Registrar and Paying Agent.
8.03. Representation Letter. The City has heretofore executed and delivered to DTC a
Blanket Issuer Letter of Representations (Representation Letter) which shall govern payment of
principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds.
Any Paying Agent or Bond 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 Bond Registrar and Paying Agent, respectively, to be
complied with at all times.
8.04. Transfers Outside Book -Entry System. 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
determine 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 Bond
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.
8.05. 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 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.
373615vl MM MN190-138
Section 9. Continuing Disclosure.
9.01. City Compliance with Provisions of Continuing 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.
9.02. 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.
Section 10. Defeasance.
10.01. Pledges, Covenants, and Other Rights to Cease. 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.
(The remainder of this page is intentionally left blank.)
3736150 MNI NIN190-138
The motion for the adoption of the foregoing resolution was duly seconded by Member
Brian Stumpf, and upon vote being taken thereon, the following voted in favor thereof. Clint
Herbst, Thomas Perrault, Glen Posusta, Brian Stumpf and Susie Wojchouski
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.
373615vl NWl MN190-138
STATE OF MINNESOTA )
COUNTY OF WRIGHT ) SS.
CITY OF MONTICELLO )
I, the undersigned, being the duly qualified and acting City Administrator of the City of
Monticello, Wright County, Minnesota, do hereby certify that I have carefully compared the
attached and foregoing extract of minutes of a regular meeting of the City Council of the City
held on August 23, 2010 with the original minutes on file in my office and the extract is a full,
true and correct copy of the minutes insofar as they relate to the issuance and sale of $3,255,000
General Obligation Improvement and Refunding Bonds, Series 2010A of the City.
WITNESS my hand officially as such City Administrator and the corporate seal of the
City this 31 st day of August, 2010.
l
Cit nistrator
Monticello, Minnesota
(SEAL)
373615vl MNI MN190-138
EXHIBIT A
PROPOSALS
373615v1 MMMN190-138 A-1
BID TABULATION
$3,255,000*' General Obligation Improvement and Refunding Bonds, Series 2010A
CITY OF MONTICELLO, MINNESOTA
SALE: August 23, 2010
AWARD: UNITED BANKERS` BANK
RATING: Moody's Investors Service, Inc. "AaY BBI: 4.03%
NET TRUE
gAM'E OF BIDDER MATURITY RATE REOFFERING PRICE INTEREST INTEREST
(February 1) YIELD COST RATE
JNITED BANKERS' BANK
Bloomington, Minnesota
'-RONIN & COMPANY, INC.
Minneapolis, Minnesota
2011
0.400%
0.400%
2012
0.500%
0.00%
2013
0.600%
0.600%
2014
0.850%
0.850%
2015
1.050%
1.0:0%
2016
1..450%
1.4,50%
2017
1.800%0
1.800%0
2018
2.050%
2.050%
2010
2.250%
2.250%
2020
2.450%
2.450%
2021
2.700%
2.700%
2011
2012
2013
2014
2015
2016
2017
20188
2019
2020
2021
2.000%
2.000%
2.000%
2.000%
2.000%
2.000%
2.250%
2.500%
2.500%
2.750%
2.750%
$3,235,470.00 $355,617.53 2.0218%
$3,317.090.70 $360,584.99 2..0238%
fiubsequent to bid opening the 2012 maturity increased $10,000 to $415,000, the 2013 maturity increased $10,000 to $405,000,
he 2014 maturity increased $10,000 to $320,000, the 2015 maturity increased $5,000 to $265,000, the 2016 maturity increased
;5,000 to $270,000, the 2010 maturity decreased55,000 to $275,000, the 2010 maturity decreased $10,000 to $280,000, the
>_020 maturity decreased $10,000 to $200,000 and the 2021 maturity decreased $15,000 to $300,000 in maturity value.
%djusted Price - $3,235,470.00 Adjusted Net Interest Cost - $347,502.32
373615vl MM MN190-138 A-2
Adjusted TIO - 2.0047%
$3,255,000 General Obligation Improvement and Refunding Bonds, Series 2010A
City of Monticello, Minnesota
Page 2
FIRST SOUTHWEST COMPANY
Dallas, Texas
J.P. MORGAN SECURITIES, INC
New York., New York
BAIRN
MINvaukee, Wisconsin
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
20`11
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2.000%
2..000%
2.000%
2.000%
2.000%
2.125%
2.250%
2.375%
2.500%
3.000°'o
3.000%
2..000%
2.000%
2.000%
2.000%
2.000%
2.250%
2.500°
3.000016
3.000%
3.000%
3.000%
2.000%
2.000%
2.000%
2.00G%
2.000%
2.000%
3.000%
3.000%
3.000070
3.000%
3.000%
373615vl MM MN190-138 A-3
$3,318,968.96 $373,115.50 2.0912%
$3,347,354,00 $375,967.63 2.0935%
$3,351,729.45 $376,800.83 2.0962%
NET
TRITE
NAME OF BIDDER MATURITY
RATE
REOFFERING PRICE INTEREST
INTEREST
(February 1)
YIELD COST
RATE
UrviS BANK, N -A- 2011
1.000%
$3,243,133.70 $364,562.51
2.0723%
Kansas City, Missouri 2012
1.000%
2013
1.000%
2014
1.050%
2015
1.300%
2016
1.550°x6
2017
1.850%a
2018
2.100%
2019
2.250%
2020
2.500%
2021
2.700%
FIRST SOUTHWEST COMPANY
Dallas, Texas
J.P. MORGAN SECURITIES, INC
New York., New York
BAIRN
MINvaukee, Wisconsin
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
20`11
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2.000%
2..000%
2.000%
2.000%
2.000%
2.125%
2.250%
2.375%
2.500%
3.000°'o
3.000%
2..000%
2.000%
2.000%
2.000%
2.000%
2.250%
2.500°
3.000016
3.000%
3.000%
3.000%
2.000%
2.000%
2.000%
2.00G%
2.000%
2.000%
3.000%
3.000%
3.000070
3.000%
3.000%
373615vl MM MN190-138 A-3
$3,318,968.96 $373,115.50 2.0912%
$3,347,354,00 $375,967.63 2.0935%
$3,351,729.45 $376,800.83 2.0962%
$3,255,000 General Obligation Improvement and Refunding Bonds, Series 2010A
City of Monticello, Minnesota
Page 3
UBS FINANCIAL SERVICES INC
New York, New York.
MORGAN KEEGAN & CO_, INC -
Memphis, Tennessee
WELLS FARGO BANK, NATIONAL
ASSOCIATION
Charlotte, North Carolina
2011
2012
2013
2014
2015
20'16
2017
2018
2019
2020
2021
201'1
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2000%
2.000%
2.000%
2.000%
2.000%
2.250%
2..500%
2.500%
2500%
2.500%
2.626'%
2.000%
2.000%
2000°70
2.000°.
2.000%
2.2`0%
2.500%
2.500%
3.000%
3.000%
3.000%
2.000%
2.000%
2.500%
2.500%
3.000%
3.000%
3.000%
3.000%
3.000%
3.000%
3.000%
373615vl MM MN190-138 A-4
$3,298,559.55 $375,944.63 2.1209°.
$3,329,828.90 $383,159.95 2.1419%
$3,373,538.25 $390,581.40 2.1685%
NET
TRUE
NAME OF BIDDER MATURITY
RATE
REOFFERING PRICE INTEREST
INTEREST
(February 1)
YIELD COST
RATE
BMO CAPITAL MARKETS GKST INC. 2011
1.750%
$3,304,609.10 $373,742.18
2.0989%
Chicago, Illinois 2012
1.750%
2013
1.750%
2014
1.750%
2015
1.750%
2016
2.000%
2017
2.250%
2018
2.250%
2019
2.500%
2020
3.00010/0
2021
3.000%
UBS FINANCIAL SERVICES INC
New York, New York.
MORGAN KEEGAN & CO_, INC -
Memphis, Tennessee
WELLS FARGO BANK, NATIONAL
ASSOCIATION
Charlotte, North Carolina
2011
2012
2013
2014
2015
20'16
2017
2018
2019
2020
2021
201'1
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2000%
2.000%
2.000%
2.000%
2.000%
2.250%
2..500%
2.500%
2500%
2.500%
2.626'%
2.000%
2.000%
2000°70
2.000°.
2.000%
2.2`0%
2.500%
2.500%
3.000%
3.000%
3.000%
2.000%
2.000%
2.500%
2.500%
3.000%
3.000%
3.000%
3.000%
3.000%
3.000%
3.000%
373615vl MM MN190-138 A-4
$3,298,559.55 $375,944.63 2.1209°.
$3,329,828.90 $383,159.95 2.1419%
$3,373,538.25 $390,581.40 2.1685%
EXHIBIT B
TAX LEVY SCHEDULE
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373615vl N4Nl MN190-138
ATTACHMENT C
NOTICE OF CALL FOR REDEMPTION
$2,420,000
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2002
CITY OF MONTICELLO
WRIGHT COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that, by order of the City Council of the City of
Monticello, Wright County, Minnesota, there have been called for redemption and prepayment
on
OCTOBER 1, 2010
all outstanding bonds of the City designated as General Obligation Improvement Bonds,
Series 2002, dated December 30, 2002, having stated maturity dates of February 1 in the years
2011 through 2014, both inclusive, totaling $865,000 in principal amount, and with the following
CUSIP numbers:
Year of Maturity
Amount CUSIP
2011 $265,000 614468 VW3
2012 275,000 614468 VX1
2013 28500 614468 VY9
2014 4000 614468 VZ6
The bonds are being called at a price of par plus accrued interest to October 1, 2010, on which
date all interest on said bonds will cease to accrue. Holders of the bonds hereby called for
redemption are requested to present their bonds for payment at the main office of U.S. Bank
National Association, in the City of St. Paul, Minnesota, on or before October 1, 2010.
If by mail:
If b, hand:
U.S. Bank National Association U.S. Bank National Association
Corporate Trust Operations 60 Livingston Avenue
60 Livingston Avenue 3rd Floor — Bond Drop Window
EP-MN-WS3C St. Paul, MN 55107
St. Paul, MN 55107
Important Notice: In compliance with the Jobs and Growth Tax Relief Reconciliation Act
of 2003, federal backup withholding tax will be withheld at the applicable backup withholding rate
in effect at the time the payment by the redeeming institutions if they are not provided with your
social security number or federal employer identification number, properly certified. This
373615vl MM MN190-138
requirement is fulfilled by submitting a W-9 Form, which may be obtained at a bank or other
financial institution.
The Registrar will not be responsible for the selection or use of the CUSIP number, nor is
any representation made as to the correctness indicated in the Redemption Notice or on any
Bond. It is included solely for convenience of the Holders.
Additional information may be obtained from:
U.S. Bank National Association
Corporate Trust Division
Bondholder Relations (800) 934-6802
Dated: August 23, 2010.
BY ORDER OF THE CITY COUNCIL
By /s/ Jeff O'Neill
City Administrator
3736150 MNI MN190-138
Extract 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 Monday, August 23,
2010, commencing at 7:00 P.M.
The following members were present: Clint Herbst, Thomas Perrault, Glen Posusta,
Brian Stumpf and Susie Wojchouski
and the following were absent: None
The Mayor announced that the next order of business was consideration of the proposals
which had been received for the purchase of the City's approximately $3,255,000 General
Obligation Improvement and Refunding Bonds, Series 2010A.
The City Administrator presented a tabulation of the proposals that had been received in
the manner specified in the Terms of Proposal for the Bonds. The proposals were as set forth in
Exhibit A attached.
In accordance with the official Terms of Proposal the following adjustments were made:
Principal Amount:
Maturities:
Minimum Purchase Price:
After due consideration of the proposals, Member Glen Posusta then introduced the
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