City Council Resolution 1998-52
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Fj~FCOpY
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, November 9, 1998,
commencing at 7:00 o'clock P.M.
The following members were present:
Mayor Bill Fair and Council Members Roger Carlson, Clint Herbst,
Brian Stumpf andBruce Thielen -
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 $515,000 General Obligation Water System
Refunding Bonds, Series 1998B.
The City Administrator presented a tabulation of the proposals which had been received in
the manner specified in the Terms of Proposal for the Bonds. The proposals were as follows:
See Attachment C
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Fi~F cQer
S tum f then introduced
After due consideration of the proposals, Member
the following resolution and moved its adoption:
RESOLUTION NO. 98-52
A RESOLUTION AWARDING g~FUNDING ONDS~SERIES 99 B;
OBLIGATION WATER SYSTEM
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING T ~IN~C ~ ~A~ EERY;
AND PRO
BE IT RESOLVED By the City Council of the City of Monticello, Wright County,
Minnesota (City) as follows:
Section 1. Sale of Bonds.
1.01. It is hereby determined that:
(a) the City is authorized by Minnesoell its~eneral obligation bonds toSrefund
475.67, Subdivision 3, of the Act to issue ands g
obligations and the interest thereon before the due ddetennined by the City Council to be
covenants made with the holders thereof, when
necessary or desirable for the reduction of debt service cost to the City or fore ~' extension
or adjustment of maturities in relation to the resources available for their paym
(b) 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;
(c) it is necessary and desirable to reduce debt service costs that the City issue
$515,000 General Obligation Water System RefunCng Bonds, Series 1998B (Bonds) to
refund certain outstanding general obligations of th ty,
(d) the outstanding bonds to be refun dsd S nes 1988B~ dated Decemberdle
$1,100,000 General Obligation Water System Bon ,
1988 of which $500,000 in principal amount is currently outstanding and is callable on
February 1, 1999.
Services Inc. (Purchaser) to
1.02. The proposal of Norw s
urchase $515,000 General Obligation Water System Refund ~g a °o be a reasonabgBofBfernand os
P
the City described in the Terms of Proposal thereof Is eterm
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accepted, the proposal being to purchase the Bonds at a price of $ 509.850. oo plus accrued
interest to date of delivery, for Bonds bearing interest as follows:
Year of Interest Year of Interest
Maturi Rate Maturi Rate
2000 3.40% 2003 3.70%
2001 3.50 2004 3.80
.. 2002 3.60
True interest cost: 3.9982%
1.03. The sum of $ -0- being the amount proposed by the Purchaser in excess of
$509,850 is credited to the Debt Service Fund hereinafter created. The City Finance Director is
directed to deposit 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 behalf of the City.
1.04. The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes,
Chapter 475 (Act) in the total principal amount of $515,000, originally dated December 1, 1998, in
the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1, upward,
bearing interest as above set forth, and which mature serially on February 1 in the years and
amounts as follows:
year Amount
Year Amount
20p0 $ 90,000
2001 100,000
2002 105,000
Section 2. Registration and Payment.
2003 $105,000
2004 115,000
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
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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 August 1, 1999, to the
registered owners of record 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, and will maintain, 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) 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 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) Improver 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
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made to a registered owner or upo Bond to the extent of the um orsums so paid. to satisfy
and discharge the habihry upon the
(g) Taxes Fees and Char. 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 stanitution foruany Bond destroyed, s t nllor lost, upon
mutilated Bond or in lieu of and in sub
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 an appropriate bond or indemnity in
form, substance and amount satisfactory to it and as provided bylaw, in which both the City
and the Registrar must be named as obligees. Bonds so sunenderLd to the Registrar will be
cancelled by the Registrar and evidenc st Bond hasc already mat redgore been called for
the mutilated, destroyed, stolen or to to issue a new Bond pnor to
redemption in accordance with its terms it is not necessary
payment.
2.04. Appointment of Initial Registrar. The City appoints
st . Paul ,Minnesota, as the initial
Firstar Bank of Minnesota ,
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 mu. ~~ rsv St t ~ anu won o
in its possession to the successor Registrar and must deliver the bo g
Registrar. On or before each principal or interest due date, without fizrther 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 Ciry by the signatures of the
Mayor and the City Administrator, provided that all 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.d and sufficient for all purposes, the same as if the
signatre or facsimile will nevertheless be vah
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officer had remained in office until delivery. Notwi ~u~Wrid og benefit nde>°this Resolution unless
valid or obligatory for any purpose or entitled to any tY
and until a certificate of authentication on the Bond has been duly executed by the manual signature
of an authorized representative of the Registrar. e executed certif cafe of authentication on aBond
need not be signed by the same representative. Th
is conclusive evidence that it has been authenticated and delivered under this Resolution. When the
Bonds have been so prepared, executed and authenticated, ~ accordance with the ontractiof sale
same to the Purchaser upon payment of the purchase pnce
heretofore made and executed, and the Purchaser is not obligated to see to the application of the
purchase price.
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 ~~ 0i ~B nds will be texchangedt he efor pand
the execution and delivery of definitive Bonds th p ~'
cancelled.
Section 3. Form of Bond.
3.01. The Bonds will be printed or typewritten in substantially the following form:
[Face of the Bond]
UNITED STATES OF AMERICA ~
No. R-_. STATE OF ~,BNNESOTA
COUNTY OF WRIGHT
CITY OF MONTICELLO
GENERAL OBLIGATION WATER SYSTEM REFUNDING BOND, SERIES 1998B
Date of
Rate Maturit Ori>?inal Issue
December 1, 1998
Registered Owner: Cede & Co.
CUSIP
The City of Monticello, Minnesota, a duly organized and existing municipal corporation in
Wright County, Minnesota (City), acknowledges itself to be indebted and for value received
promises to pay to the Registered Owner specified abov interest thereon from the dat Whereof a the
$ on the maturity date specified above with
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annual rate specified above, payable February 1 and August 1 in each year, commencing August 1,
1999, 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
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 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.
Additional provisions of this Bond are contained on the reverse hereof and such provisions
for all purposes have the same effect as though fully set forth in this place.
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 Ciry
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)
City Administrator
(Facsimile)
Mayor
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CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
By
Authorized Representative
[Reverse of the Bond]
is one of an issue in the aggregate principal amount of $515,000 all of like
This Bond
' sue date and tenor, except as to number, maturity daCo~cillon November 9an1998e(the
original is P the Cit
rate, all issued pursuant to a resolution ado ted b to refund the outstanding principal amount of
Resolution), for the purpose of providing money With Constitution
ursuant to and in full conformity rinci al
certain general obligation bonds of the City, p
laws of the State of Minnesota, including Minnesota Statutes, Seasons 475.67 and the p P
and a able rimarily from ad valorem taxes, as set forth in the
hereof and interest hereon are p Y p owers thereby conferred.
Resolution to which reference is made fore ocabin pledged for paymenPof this Bond and the City
The full faith and credit of the Cit addi 'onal ad valorem taxes on all taxable property in the City in
Council has obligated itself to levy which additional taxes may be levied without
the event of any deficiency in taxes Pledged, as full re istered Bonds in
limitation as to rate or amount. 'The Bonds ~~ hereof of single~matunties. Y g
denominations of $5,000 or any integral mul p
' ed in the Resolution and subject to certain limitatio f the Bond Registry by the
As proved Y rinci al office o
is transferable upon the books of the Cit tee owner's att rney duly authorized in writing, upon
registered owner hereof in person or by
hereof together with a written instrument of transrfnee sa~fdario Y also b B rrenderedin
surrender e the City
duly executed by the registered owner or the owners alto y,
han e for Bonds of other authorized denominations. e of°the transferee o ~regi feted o~"~ner, of
exc g on the same
will cause a new Bond or Bonds to be issued interest at the same rate and maturing aid With
the same aggregate principal amount, beaanxnf ~ or governmental charge required to be p
date, subject to reimbursement for any
respect to such transfer or exchange.
d the Bond Registrar may deem and treat the person i or notefor thee purpose of
The City an
registered as the absolute owner hTreuf, o es,~and neither the City nor the Bond Registrar will be
receiving payment and for all othe p rP
affected by any notice to the contrary.
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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.
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 UNIF GIFT MIN ACT Custodian
in common (Gust) (Minor)
TEN ENT -- as tenants under Uniform Gifts or
by entireties Transfers to Minors
7T 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.
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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 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.
Signature of
Date of Registration Registered Owner Officer of Re ig_strar
Cede & Co.
Federal ID #13-2555119
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MN190-77
3.02. 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. Payment- Securit - Pledges and Covenants.
4.01. (a) The Bonds are payable from the General Obligation Water System
_. Refunding Bonds, Series 1998B DebtlS~e note undl(De(gbtaS~> desc bed hn Section 1101
and the proceeds of ad valorem taxes
(Improvements) are hereby pledged to the Debt Service Fund.
(b) The debt service fund, if any, heretofore established for the Refunded Bonds
as defined in the resolution providing for the issuance and sale of the Bonds, is terminated,
and all monies therein are hereby transferred to the Debt Service Fund herein created. If a
payment of principal or interest on the Bonds becomes due when there is not sufficient
money in the Debt Service Fund to pay the same, the City Finance Director will pay such
principal or interest from the genera~eun o eeds of the Taxes eyed by this resolutions
reimbursed for those advances out of p
when collected.
_ (c) There is hereby appropriated to the Debt Service Fund (i) capitalized interest
financed from Bond proceeds, if any, (ii) any amount over the minimum purchase price of
the Bonds paid by the Purchaser and (iii) the accrued interest paid by the Purchaser upon
closing and delivery of the Bonds.
4.02. For the purpose of paying the principal of and interest on the Bonds, there is hereby
levied a direct annual iirepealable 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 Ciry.
Such tax will be credited to the Debt Service Fund collection the fol owing year)in the years and
amounts as follows (year stated being year of levy fo
Year
(See Attachment A)
4.03. The Administrator is directed to file a certified copy of this resolution with the
County Auditor of Wright County and to obtain the certificate required by Section 475.63 of the
Act.
4.04. It is hereby determined that upon the receipt of proceeds of the Bonds (Proceeds) for
payment of the Refunded Bonds that an irrevocable appropriation to the debt service fund for the
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Refunded Bonds will have been made within the meaning of Section 475.61, Subdivision 3 of the
Act and the City Administrator is hereby authorized and directed to certify such fact to and request
the County Auditor to cancel any and all tax levies made by the resolution authorizing and
approving the Refunded Bonds.
4.05. It is hereby determined that the estimated collection of 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 will be irrepealable until all of the
_. Bonds are paid, provided that the City Administrator may annually, at the time the City makes its
tax levies, certify to the County Auditor the amount available in the Debt Service Fund to pay
principal and interest due during the ensuing year, and the [County Auditor] [Taxpayer Services
Division Manager] will thereupon reduce the levy collectible during such year by the amount so
certified.
Section 5. Refunding- Findings; Redemption of Refunded Bonds.
5.01. The Refunded Bonds are the General Obligation Water System Bonds, Series
1988B, of the City, dated December 1, 1988, of which $500,000 in principal amount is callable on
February 1, 1999. 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 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 2J00 and thereafter will be
redeemed and prepaid on F~~arv t , 1999. 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 B which terms and
conditions are hereby approved and incorporated herein by reference. The Registrar for the
Refunded Bonds is authorized .and directed to send a copy of the Notice of Redemption to each
registered holder of the Refunded Bonds.
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
Ciry 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.
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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,
will be deemed representations of the City as to the facts stated therein.
6.02. The Mayor and City Administrator are hereby 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.
6.03. The City authorizes the Purchaser to forward the amount of Bond proceeds allocable
to the payment of issuance expenses (other than amounts payable to Kennedy & Graven, Chartered
as Bond Counsel) to Resource Bank & Trust Company, Minneapolis, Minnesota on the closing date
for further distribution as directed by the City's financial adviser, Ehlers and Associates, Inc.
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.
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.
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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 Ciry 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
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 1998 will not exceed
$10,000,000; and -
(d) not more than $10,000,000 of obligations issued by the City during calendar
year 1998 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 owner of Bonds, ~ as shown by the
registration books kept by the Bond 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 Bond Registrar and the Paying Agent may treat and consider the
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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 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 Bond Registrar subsequently appointed by the Ciry with respect to the Bonds will
agree to take all action necessary for all representations of the Ciry 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
Ciry 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 Ciry
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.
DIG-151919
MN190-77
Section 9. Continuing Disclosure.
9.01. Participating underwriters need not comply with the continuing disclosure
requirements of Rule 15c2-12 promulgated by the Securities and Exchange Commission under the
Securities Exchange Act of 1934 (the "Rule"), because the offering is in a principal amount less
than $1,000,000. Consequently, the City will not enter into any undertaking to provide continuing
disclosure of any kind with respect to the Bonds.
_, The motion for the adoption of the foregoing resolution was duly seconded by Member
Herbst ,and upon vote being taken thereon, the following voted in favor
thereof: Mayor Fair and Members Carlson, Herbst, Stumpf and Thielen
and the following voted against the same: None .
whereupon said resolution was declared duly passed and adopted.
DJG-151919
MN 190-77
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 November 9, 1998 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 $515,000 General
Obligation Water System Refunding Bonds, Series 1998B of the City.
WITNESS My hand officially as such City Administrator and the corporate seal of the City
this 9th day of November , 1998.
C~J~*K GU
City Administrator
Monticello, Minnesota
DJG-151919
MN 190-77
Tax Levy Calculations For:
City of Monticello, Minnesota
$515,000 General Obligation Water System Refunding Bonds, Series 19986
Date of Bonds: 12/01 /98
Levy collect Pay
voter Ypar Year
Total Funds P & I
P & I Available x 105%
1998 / 1999 / 2000
1999 / 2000 / 2001
2000 / 2001 / 2002
2001 / 2002 / 2003
2002 / 2003 / 2004
1111,694.17 $361.57 $116,899.23
115,535.00 121,311.75
117, 035.00 122, 886.75
113,255.00 118,917.75
-119,370.00 125,338.50
ATTACHMENT A
Net Tax
$116,899.23 $116,900
121,311.75 121,400
122,886.75 122,900
118,917.75 119,000
125,338.50 125,400
Total $576,889.17 $361.57 $605,353.98 $605,353.98 $605,600
ATTACHMENT B
NOTICE OF CALL FOR REDEMP'T`ION
$1,100,000
GENERAL OBLIGATION WA"~R SYS ELM.L~ NDS, SERIES 1988B
-~ - CITY OF MONTI SOTA
WRIGHT COUNTY, MINNE
TICE IS HEREBY GNEN that, by order of the City Council of the City of Ivionticello,
NO y p re a ent on
Wright Count ,Minnesota, there have been called for redem tion and p P ym
FEBRUARY 1, 1999
din bonds of the City designated as General Obliga of F baruary 1s in ~eoyearsS2000
all outstan g
1988B, dated December 1, 1988, having stated matunty~ca ~ amount, and with the following
through 2004, both inclusive, totalling $500,000 m p p
CUSIP numbers:
t CUSIP
Year
$ 85 000 614468 MN3
2000 95,000 614468 MP8
2001 000
100 614468 MQ6
2002 ,
000
105 614468 MR4
2003 ,
000
115 614468 MS2
2004 ,
ds will be redeemed at a price of 100% of their Pn= Sent them fo rpaymen 1 °
Such bon
interest to the date of redemption. Holders of such bonds shoul p N ~,
Milwaukee, Wisconsin, as agent for Firstar Bank of Minnesota,
Firstar Trust Company,
r to American Bank National Association, St. Paul, Minnesota, at the address below, on o
successo
before said date, when they will cease to bear interest.
commended that you mail your bonds registered or certified mail to guard against
It is re
loss.
DJG-151919
MN 190-77
1 ~
Firstar Trust Company
Attn: Corporate Trust Services
1555 North Rivercenter Drive
Suite 301
Milwaukee, Wisconsin 53212
In compliance with the Interest and Dividend Como lwianthhold a specif9ed percentage of
Reporting Requirements, the redeeming institution is require
the ~ci al amount of your holdings redeemed unless ~eY ertifiedide~w C mpliance h u d be
P P ro erl
number or federal employer identification number, p p Y
filled throw h the submitting of a W-9 Form which maybe obtained at a Bank or other Financial
fulf~ g
Institution.
The Registrar will not be responsible for the selection °edem tion Noticeor on anY~Bonds
any representation made ~venience of the Holdersated in the R p
It is included solely for con
Dated: November 9, 1998.
BY ORDER OF THE CITY COUNCIL
By
Ciry Administrator
Ciry of Monticello, Minnesota
DJG-151919
MN190-77
BID TABULATION
ATTACHMENT C
$515,000 General Obligation Water System Refunding Bonds, Series 19986
City of .Monticello, Minnesota
SALE: November 9, 1998
AWARD: NORWEST INVESTMENT SERVICES, INC.
RATING: Moody's Investors Service "A3"
BBI: 5.04%
NET TRUE
NAME OF BIDDER RATE YEAR PRICE INCOSTST IN RATE T
NORWEST INVESTMENT SERVICES, INC.
Minneapolis, Minnesota
JOHN G. KINNARD & COMPANY, INC.
Minneapolis, Minnesota
CRONIN & COMPANY, INC.
Minneapolis, Minnesota
DAIN RAUSCHER INCORPORATED
Minneapolis, Minnesota
BERNARDI SECURITIES, INC.
Chicago, Illinois
3.40%
3.50%
3.60%
3.70%
3.80%
3.60%
3.70%
3.75%
3.85%
3.90%
2000
2001
2002
2003
2004
2000
2001
2002
2003
2004
3.60% 2000
3.80% 2001
3.90% 2002
4.00% 2003-2004
3.875% 2000-2002
3.95% 2003
4.05% 2004
3.85%
3.90%
4.00%
4.10%
4.20%
2000
2001
2002
2003
2004
$509,850.00
$67,039.17
3.9982%
$511,189.00
$511,123.60
$509,850.00
$510,880.00
$68,092.67
$70,123.90
$71,843.96
$72,805.00
4.0545%
4.1755%
4.2860%
4.3360%
LEADERS I N P U B L I C F I N A N C E
E H L E R S 3060 Centre Pointe Drive, Roseville, MN 55113-1105
651.697.8500 fax 651.697.8555
& ASSOCIATES I N C www.ehlers-inc.com