City Council Resolution 1998-58~ :.
RESOLUTION NO. 98-58
A RESOLUTION AWARDING THE SALE OF $3,000,000
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1999
FIXING THEIlZ FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIlZ PAYMENT
BE TT 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 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 (Act);
Proiect Designation & Description: Total Proiect Cost
State Trunk Highway 25, 7~' Street, Wildwood
Ridge sewer, water and pump station, fire hall
driveway and Resurrection/Methodist Church
sewer improvement projects:
Project Costs $3,529,100
Cost of Issuance 26,500
39'000
Discount
Total Sources $3,594,600
(b) it is necessary and expedient to the sound financial management of the
affairs of the City to issue $3,000,000 General Obligation Improvement Bonds, Series
1999 (Bonds) pursuant to the Act to provide financing for the Improvements.
1.02. The proposal of Suntrust Equitable Securities (Purchaser) to
purchase $3,000,000 General Obligation Improvement Bonds, Series 1999 (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
$ 2 , 961, 540.00 plus accrued interest to date of delivery, for Bonds bearing interest as follows:
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Year of Interest Year of Interest
Maturity Rate Maturity Rate
2001 $3.70% 2006 3.90%
2002 3.75 2007 3.95
2003 3.75 2008 4.00
2004 3.75 2009 4.05
2005 3.80 2010 4.10
True interest cost: 4.1569%
1.03. The sum of $12,540.00 being the amount proposed by the Purchaser in excess of
$2,961,000 will be 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 429 (Act) in the total principal amount of $3,000,000, originally dated January 1, 1999,
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
2001 $285,000 2006 $300,000
2002 285,000 2007 305,000
2003 290,000 2008 310,000
2004 295,000 2009 315,000
2005 295,000 2010 320,000
1.05. Optional Redemption. The City may elect on February 1, 2005, and on any day
thereafter to prepay Bonds due on or after February 1, 2006. 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.
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c
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The
interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by
check or draft issued by the Registrar described herein.
2.02. Date= st Payment Dates. EII ~ B hich inter st on the Bond has been paid
payment date preceding the date of authenticatio
or made available for payment, unless (i) the date for ua enent,tinnwh chl case the Bondtw 11 be
which interest has been paid or made available p ym
dated as of the date of authentication, or (ii)dated as of the date of original issuee fThe interest
payment date, in which case the Bond will be
on the Bonds is payable on February 1 and August 1 of each year, commencing August 1, 1999,
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. Re~i_ s_n• The City will appoint a btra on and the rights and duties of theaC ty
agent and paying agent (Registrar). The effect of reg
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 foe Hof Bonds entitled to rbe pregisBtereds
and the registration of transfers and exchang
transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed
by the registered owner thereof or accompanie bb the renisteredsownernthereo or by an
form satisfactory to the Registrar, duly executed y g
attorney duly authorized by the registered ow ~~ feree og~tranfe~ees, onellor more new
and deliver, in the name of the designated
Bonds of a like aggregate principal amount and maturity, as requested bean fer aft rr the
The Registrar may, however, close the books for registration of any
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 duested be the registered ownerf or the
aggregate pnncipal amount and matunty as req Y
owner's attorney in writing.
(d) Canc_ e_ 11_ Bonds surrendered sposed of as di ectd by the Cityl be
promptly cancelled by the Registrar and thereafter d p
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(e) Improper or Unauthorized Transfer. When a Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is
satisfied that the endorsement on the Bond or separate instrument of transfer is valid and
genuine and that the requested transfer is legally authorized. The Registrar will incur no
liability for the refusal, in good faith, to make transfers which it, in its judgment, deems
improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person
in whose name a Bond is registered in the bond register as the absolute owner of the
Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on
account of, the principal of and interest on the Bond and for all other purposes and
payments so made to registered owner 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
to the Registrar will be cancelled by the Registrar and evidence of such cancellation must
be given to the City. If the mutilated, destroyed, stolen or lost Bond has already matured
or been called for redemption in accordance with its terms it is not necessary to issue a
new Bond prior to payment.
(i) Redemption. In the event any of the Bonds are called for redemption,
notice thereof identifying the Bonds to be redeemed will be given by the Registrar by
mailing a copy of the redemption notice by first class mail (postage prepaid) not more
than 60 and not less than 30 days prior to the date fixed for redemption 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.
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2.04. Appointment of Initial Regisrrar. The City appoints
ar Bank of Minnesota N.A. St. Paul Minnesota, as the initial
Registrar. The Mayor and the City Administrator are authorized to execute and deliver, on
behalf of the City, a contract with the Registrar. Upon merger or consolidation of the Registrar
with another corporation, if the resulting corporation is a bank or trust company authorized by
law to conduct such business, the resulting corporation is authorized to act as successor
Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the
services performed. The City reserves the right to remove the Registrar upon 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 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 such officer before the delivery of any 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 Finance Director will deliver the sam retoforePmade and executed, andothe Purchasereis not
in accordance with the contract of sale
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 one maturity in a single temporary
bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be
exchanged therefor and cancelled.
Section 3. Form of Bond.
3.01. The Bonds will be printed or typewritten in substantially the following form:
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MN 190-?7
[Face of the Bond]
No. R-
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF MONTICELLO
GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 1999
Date of
Rate Maturity Original Issue CUSIP
January 1, 1999
Registered Owner: Cede & Co.
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
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 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 may elect on February 1, 2005, and on any day thereafter to prepay Bonds due
on or after February 1, 2006. 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. ff less than all Bonds of a maturity are
called for redemption, the City will notify Depository Trust Company (DTC) of the particular
amount of such maturity to be prepaid. DTC will determine by lot the amount of each
participant's interest in such maturity to be redeemed and each participant will then select by lot
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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 $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 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
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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
This Bond is one of an issue in the aggregate principal amount of $3,000,000 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 December 14,
1998 (the Resolution), for the purpose of providing money to defray the expenses incurred and to
be incurred in making local improvements, pursuant to and in full conformity with the
Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapter 429, and
the principal hereof and interest hereon are payable from special assessments against property
specially benefitted 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.
The City and the Bond Registrar may deem and treat the person in whose name this Bond
is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of
receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be
affected by any notice to the contrary.
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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 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.
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MN 190-77
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 Re isg trar
Cede & Co.
Federal ID #13-2555119
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MN 190-77
.a
3.02. The City Administrator is directed to obtain a copy of the proposed approving
le al o inion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is eabh B n lete
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except as to dating thereof and to cause the opinion to be printed on or accompany
Section 4. Pa ent• Securit -Pled es and Covenants.
The Bonds are payable from the Improvement Bonds, Series 1999 Debt
4.01. (a) and the proceeds of general taxes hereinafter
Service Fund (Debt Service Fund) hereby created,
levied Taxes), and special assessments (Assessments) levie e eb ° bledgeddtoothe Debt Servi e
( rovements) financed by the Bonds are h y P
Section 1.01 (Imp
Fund. If a payment of principal or interest on e same, the City Admii istratot is duected to
sufficient money in the Debt Service Fun eneral fund of the Ci and the general fund will be
ty,
pay such principal or interest from the g
reimbursed for the advances out of the proceeds of Assestalized eaestafinanced from Bond
There is appropriated to the Debt Service Fund (i) capi rice aid b the Purchaser, and
proceeds, if any, (ii) anY amount over the minimum purchase p P Y
(iii) the accrued interest paid by the Purchaser upon closing and delivery of the Bonds.
together
roceeds of the Bonds, less the appropriations made in paragraph (a),
(b) The P rovements and Assessments and Taxes collected
with any other funds appropriated for the Imp
rin the construction of the Improvements will be deposite nt nto be usedcse lyct o defray
du g roveme )
(which may contain separate accounts for each Imp
ex enses of the Improvements and the payment of principal and interest on the Bonds prior to the
P rovement. Any balance remaining in the
completion and payment of all costs of the Imp the cost in whole or
construction fund after completion of the Improvements may be used to paY rovements are
in part of any other improvement institconstrucdtion account isvto be closed and subsequent
completed and the cost thereof paid, the rovements are to be deposited in the Debt
collections of Assessments and Taxes for the Imp
Service Fund.
4.02. It is hereby determined that the Improvements will directly and indirectly benefit
uttin ro erty, and the City hereby covenants with the holders from time to time of the Bonds
ab g P P
as follows:
(a) The City has caused or will cause we 1~'be collet able not later than 19 9 9
to be promptly levied so that the first installment of the
and will take all steps necessary to assure prompt collection, and the levy
Assessments is hereby authorized. The City Council o struction of each~Impro e~ nt
diligence all further actions that are required for the c
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 Asses~mri W an a ee aPPropriation of any
other funds needed to pay the Bonds and interest the
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.~
(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.
4.03. It is determined that at least 20% of the cost of the Improvements will be specially
assessed against benefitted 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 levy for
collection the following year):
Year Levy
(See Attachment A)
4.04. 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 of Wright County the amount
available in the Debt Service Fund toduce Phe leP~collectible during suchgyear by the amount so
the County Auditor will thereupon re y
certified.
4.05. The City Administrator is authorized and directed to file a certified copy of this
resolution with the County Auditor of Wright County and to obtain the certificate required by
Minnesota Statutes, Section 475.63.
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MN190-77
Section 5. Authentication of Transcript.
5.01. 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.
5.02. The Mayor and City Administrator are authorized and directed to certify that they
have examined the Official Statement prepared and circulated in connection with the issuance
and sale of the Bonds and that to the best of their knowledge and belief the Official Statement is
a complete and accurate representation of the facts and representations made therein as of the
date of the Official Statement.
5.03. 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 6. Tax Covenant.
6.01. 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.
6.02. 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.
6.03. 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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MN 190-77
6.04. 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 1999 will not
exceed $10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City during
calendar year 1999 have been designated for purposes of Section 265(b)(3) of the Code.
6.05. 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 7. Book Entry System• Limited Obligation of City.
7.01. 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.
7.02. With respect to Bonds regim'nee of DTC e thle C tynthe Bond Regs tray and the
Registrar in the name of Cede & Co., as no
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 thanea~~goste~rlee Bondsr oThe City,~he Bond Registrar
respect to principal of, premium, if any, o
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
DJG-151993
MN 190-77
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.
7.03. 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.
7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the
City Council, determines that it is in theBondlceertificates~the C ty wi lanotf y DTC,lwhereupon
in the Bonds that they be able to obtain
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 Resolu Y n. D yC lmny
determine to discontinue providing its services with respect to the Bonds at an time b g g
notice to the City anal 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 d method ofe a 1 ent thereoof.~on and the provisions
hereof will apply to the transfer, exchange an P yin
7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution
to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC,
payments with respect to principal of, premium, if any, and interest on the Bond and notices with
respect to the Bond will be made and given, respectively in the manner provided in DTC's
Operational Arrangements, as set forth in the Representation Letter.
Section 8. Continuing Disclosure.
8.01. 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
D7G-151993
MN 190-77
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.
8.02. "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 tune to time in
accordance with the terms thereof.
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-151993
MN 190-77
EXHIBIT A
BID TABULATION
$3,000,000 General Obligation Improvement Bonds, Series 1999
City of Monticello, Minnesota
SALE: December 14, 1998
AWARD: SUNTRUST EQUITABLE SECURITIES
RATING: FSA Insured (Moody's Investors Service "Aaa")'
BBI: 4.94%
NET TRUE
NAME OF BIDDER RATE YEAR PRICE INTEREST INTEREST
COST RATE
SUNTRUST EQUITABLE SECURITIES
Atlanta, Georgia
J.C. BRADFORD & CO.
Nashville, Tennessee
WILLIAM R. HOUGH & COMPANY
St. Petersburg, Florida
NIKE SECURITIES L.P.
Lisle, Illinois
JOHN G. KINNARD & COMPANY
Minneapolis, Minnesota
MILLER, JOHNSON, KUEHN, INC.
Minneapolis, Minnesota
NORWEST INVESTMENT SERVICES, INC.
Minneapolis, Minnesota
3.70%
3.75%
3.80%
3.90%
3.95%
4.00%
4.05%
4.10%
3.50%
3.60%
3.70%
3.75%
3.80%
3.90%
4.00%
4.10%
4.15%
4.20%
3.50%
3.60%
3.70%
3.80%
3.90%
4.00%
4.05%
4.10%
*FSA Insurance purchased by SunTrust Equitable Securities
2001
2002-2004
2005
2006
2007
2008
2009
2010
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2001
2002
2003
2004
2005
2006-2008
2009
2010
$2,961,540.00
$2,966,700.00
$2,962,398.70
$829,160.42
$831,674.17
$831,106.09
4.1569%
4.1611%
4.1650%
-~~~~'"` FREERS LEADERS IN PUBLIC FINANCE
3060 Centre Pointe Drive, Roseville, MN 55113-1105
651.697.8500 fax 651.697.8555
' ~~``^'x` & ASSOCIATES I N C www.ehlers-inc.com
t!'{
NET TRUE
NAME OF BIDDER RATE YEAR PRICE INTEREST INTEREST
COST RATE
HARRIS TRUST & SAVINGS BANK 3.50% 2001 $2,966,900.00 $836,227.50 4.1849%
Chicago, Illinois 3.65% 2002
Kirlin Securities, Inc. 3.70% 2003
Southwest Securities, Inc. 3.80% 2004
Wachovia Capital Markets 3.90% 2005
4.00% 2006
4.05% 2007
4.10% 2008-2009
4.20% 2010
GRIFFIN, KUBIK, STEPHENS 3.90% 2001-2005 $2,965,400.00 $838,572.08 4.2034%
& THOMPSON, INC. 4.00% 2006-2008
Chicago, Illinois 4.10% 2009-2010
DAIN RAUSCHER, INC. 3.50% 2001 $2,955,600.00 $841,611.67 4.2228%
Minneapolis, Minnesota 3.60% 2002
3.70% 2003
3.80% 2004
3.90% 2005
3.95% 2006
4.00% 2007
4.05% 2008
4.10% 2009
4.15% 2010
PIPER JAFFRAY, INC. 3.70% 2001 $2,959,779.15 $844,049.81 4.2331%
Minneapolis, Minnesota 3.75% 2002
First Union Capital Markets Corp. 3.80% 2003
3.90% 2004-2005
4.00% 2006-2008
4.10% 2009
4.20% 2010
SALOMON SMITH BARNEY 3.50% 2001 $2,958,944.15 $847,675.23 4.2501%
Chicago, Illinois 3.65% 2002
CRONIN & COMPANY, INC. 3.75% 2003
Chicago, Illinois 3.85% 2004
4.00% 2005-2007
4.10% 2008
4.15% 2009
4.20% 2010
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r
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 December 14, 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 $3,000,000
General Obligation Improvement Bonds, Series 1999 of the City.
WITNESS My hand officially as such City Administrator and the corporate seal of the
City this 14th day of December , 1998.
City Administrat r
Monticello, Minnesota
(SEAL)
DJG-151993
MN190-77
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, December 14,
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 and Bruce 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 $3,000,000 General Obligation
Improvement Bonds, Series 1999.
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 set forth
in Exhibit A attached.
After due consideration of the proposals, Member
introduced the following resolution and moved its adoption:
Thielen then
DJG-151993
MN190-77
FREERS
& ASSOCIATES INC
November 25, 1998
Karen Doty
City of Monticello
P.O. Box 1147
Monticello, MN 55362-9245
Re: City of Monticello HRA; $3,000,000 General Obligation Improvement Bonds, Series 1999
Enclosed for your files is a completed, executed copy of the resolution awarding the sale of the above
Bonds. We will forward a copy as required to the Wright County Auditor for bond registration purposes.
Sincerely,
FREERS & ASSOCIATES, INC.
Nancy DeMarais
Encl.
N: W1 i nnsotaUvl ONTICE LW NALYS'IlB FAFSLE
'.. Equal Opportunity Employer
L E A D E R S I N P U B L I C F I N A N C E
'. Charter Member of the National Association
~.. of Independent Public Finance Advisors
3060 Centre Pointe Drive, Roseville, MN 55113-1105 651.697.8500 fax 651.697.8555 www.ehlers-inc.com
Memo
To:
From:
Subject:
Date:
Karen Doty
Nancy DeMarais
T
City of Monticello, MN; $3,000,000 G.O. Improvement
Bonds, Series 1999
January 6, 1999
Attached are two corrected pages that need to be inserted into the copy of
the Extract of Minutes for the December 14 Council meeting at which the
Council awarded the sale of the above Bonds that I sent to you in
December. If you have any questions, don't hesitate to call me.
Ehlers & Associates, Inc.
3060 Centre Pointe Drive
Roseville, Minnesota 551 1 3-1 1 05
(651) 697-8535 • FAX (651) 697-8555
Nancy @ eh le rs-i nc.com
[Face of the Bond]
No. R-
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF MONTICELLO
GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 1999
Date of
Rate Maturity Original Issue CUSIP
January 1, 1999
Registered Owner: Cede & Co.
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
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 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 may elect on February 1, 2004, and on any day thereafter to prepay Bonds due
on or after February 1, 2005. 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 Depository Trust Company (DTC) of the particular
amount of such maturity to be prepaid. DTC will determine by lot the amount of each
participant's interest in such maturity to be redeemed and each participant will then select by lot
DJG-151993
MN190-77
Year of Interest Year of Interest
Maturi Rate Maturitv Rate
2001 3.70% 2006 3.95%
2002 3.75 2007 4.00
2003 3.75 2008 4.05
2004 3.75 2009 4.10
2005 3.80 2010
True interest cost: 4.1569%
1.03. The sum of $~, ~o nn being the amount proposed by the Purchaser in excess
of $2,961,000 will be 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 429 (Act) in the total principal amount of $3,000,000, originally dated January 1, 1999,
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:
Peal' Amount Year Amount
2001 $285,000 2006 $300,000
2002 285,000 2007 305,000
2003 290,000 2008 310,000
2004 295,000 2009 315,000
2005 295,000 2010 320,000
1.05. Optional Redemption. The City may elect on February 1, 2004, and on any day
thereafter to prepay Bonds due on or after February 1, 2005. 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.
DJG-151993
MN 190-77