City Council Resolution 1988-52CITY OF MONTICELLO, MINNESOTA
RESOLUTION NO. 8 8 - 5 2
BEING A RESOLUTION AUTHORIZING AND AWARDING THE
SALE OF, AND PROVIDING THE FORM, TERMS,
COVENANTS AND DIRECTIONS POR ;1,100,000
GENERAL OBLIGATION WATER SYSTEM BONDS,
SERIES 1988B
BE IT RESOLVED BY THE CITY COUNCIL (THE "COUNCIL") OF THE
CITY OF MONTICELLO, MINNESOTA (THE "ISSUER") AS FOLLOWS:
Section 1. Recitals.
1.01 On October 11, 1988, the Council of the Issuer passed a resolution
authorizing the issuance and public sale of its $1,100,000 General Obligation Water
System Bonds, Series 1988B (the "Bonds"), authorizing publication of the Official
Notice of Sale, and soliciting bids for the purchase of the Bonds.
1.02 The Bonds are being issued pursuant to Minnesota Statutes, Chapter
475, for the purpose of providing funds to pay the costs of construction of cer-
tain water system facilities the "Project") undertaken by the Issuer.
1.03 Pursuant to Minnesota Statutes, Section 475.58, an election of the
eligible voters of the Issuer was held on September 13, 1988 in regard to the
issuance of the Bonds. Issuance of the Bonds for the Project was approved by a
vote of 177 in favor and 26 against.
Section 2. Award of Sale; Terms of Bonds.
2.01 Affidavits showing publication of notice of call for bids in the official
newspaper of the Issuer and in Commercial West have been examined and have
been approved and ordered placed on file.- The following bids for the sale of the
Bonds were received:
[See attached]
2.02 Alter considering the bids received, the Issuer hereby awards the sale
of the BOndB t0 Norwest Investment Services, Incorporated (the
"Purchaser") as the bidder offering the lowest net interest cost by its bid to
purchase the Bonds at a price of $ 1, 086, 80o plus accrued interest to the date of
delivery, the Bonds to bear interest at the rates per annum as follows:
Year of Interest Year of Interest
Maturity Rate Maturity Rate
1990 5.90 96 1998 6.70 96
1991 6.00 1999 6.80
1992 6.10 2000 6.90
1993 6.20 2001 7.00
1994 6.30 2002 7.05
1995 6.40 2003 7.10
1996 6.50 2004 7.15
1997 6.60
2.03 The Issuer shall issue the Bonds in the aggregate principal amount of
$1,100,000, dated December 1, 1988 as fully registered bonds without coupons. The
Bonds shall be in denominations of $5,000 or any integral multiple thereof not
exceeding the principal amount of a single maturity, shall be numbered from R-1
upwards in order of issuance, and shall bear interest at the rates set forth above,
payable August 1, 1989 and semiannually thereafter on each February 1 and August
1, and shall mature on February 1 in the years and amounts as follows:
Year Amount Year Amount
1990 $ 30,000 1998 $ 75,000
1991 50,000 1999 80,000
1992 50,000 2000 85,000
1993 55,000 2001 95,000
1994 60,000 2002 100,000
1995 65,000 2003 105,000
1996 65,000 2004 115,000
1997 70,000
2.04 All Bonds maturing on or after February 1, 2000, shall be subject to
redemption and prior payment in whole or in part in inverse order of maturity and
by lot within maturity at the option of the Issuer on February 1, 1999, and any
interest payment date thereafter at a price of par plus accrued interest. Thirty
days' prior notice of redemption shall be given by first-class mail to the Registrar
and to the registered owners of the Bonds, and notice of redemption will be
published in the manner provided by Chapter 475, Minnesota Statutes. Upon notice
having been so given, the Bonds or portions of Bonds therein specified shall be due
and payable at the stated redemption date and price with accrued interest to the
redemption date, and upon funds for such payment being held by or on behalf of the
Registrar for such payment on the specified redemption date, interest thereon shall
cease to accrue after such redemption date. No defect in the mailed notice of
redemption shall affect the validity of the call for redemption of any Bond.
2.05 The Bonds shall be payable as to principal upon presentation at the
main office of Amercian National Bank and Trust Company(the "Registrar"), or at
the office of such other successor registrar as the Issuer may hereafter designate
upon 60 days mailed notice to the registered owners. Interest on each Bond shall
be payable by check or draft of the Registrar mailed the last business day prior to
the interest payment date to the registered holder thereof at his or her address as
it appears on the bond register at the close of business on the 15th day (whether or
not a business day) of the calendar month next preceding the interest payment
date.
Section 3. Form and Execution of the Bonds.
3.01 The Bonds shall be in substantially the following form, with the
necessary variations as to number, CUSIP Number, rate of interest and date of
maturity, the blanks to be properly filled in:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF WRIGHT
CITY OF MONTICELLO
No. R-
Rate
GENERAL OBLIGATION WATER SYSTEM BOND, SERIES 1988B
Maturity Nominal Date of Original Issue CUSIP
December 1, 1988
The City of Monticello, Minnesota (the "City"), for value received, hereby
certifies that it is indebted and hereby promises to pay to
or registered assigns, the principal sum of
Dollars ($ ) on the maturity
date specified above, upon the presentation and surrender hereof, and to pay to the
registered owner hereof interest on such principal sum at the interest rate
specified above from December 1, 1988, or the most recent interest payment date
to which interest has been paid or duly provided for as specified below, on February
1 and August 1 of each year, commencing August 1, 1989, until said principal sum
is paid. Principal and the redemption price are payable in lawful money of the
United States of America at , as Registrar,
Transfer Agent and Paying Agent, in ,Minnesota, or at the
offices of such successor agent as the City may designate upon 60 days notice to
the registered owners at their registered addresses (the "Registrar"). Interest shall
be paid on each February 1 and August 1 by check or draft of the Registrar mailed
the last business day prior to the interest payment date to the person in whose
name this Bond is registered at the close of business on the preceding January 15
and July 15 (whether or not a business day) at his or her address set forth on the
bond register maintained by the Registrar. Any such interest not punctually paid
or provided for will be paid to the person in whose name this Bond is registered at
the close of business on a special record date established by the Registrar for the
payment of such defaulted interest.
The Bonds of this series maturing on or after February 1, 2000, are subject
to redemption at the option of the City, in whole or in part in inverse order of
maturity and by lot within a maturity, on February 1, 1999 and any interest
payment date thereafter at a price equal to par and accrued interest. Thirty days'
prior notice of redemption will be given by first-class mail to the Registrar and to
the registered owners, and notice of redemption will be published in the manner
provided by Minnesota Statutes, Chapter 475. No defect in mailed notice will
affect the validity of the call for redemption of any Bond.
This Bond is one of a series of Bonds in the aggregate principal amount of
One Million One Hundred Thousand Dollars ($1,100,000) of like date and tenor
except for number, interest rate, denomination, date of maturity and redemption
privilege, and is issued for the purpose of providing funds to pay the costs of
certain improvements pursuant to an authorizing resolution (the "Resolution")
adopted by the City Council of the City on Kovember 14, 1988, and pursuant to and
in full conformity wit` the Constitution and Laws of the State of Minnesota,
including Minnesota Statutes, Chapter 475.
The Bonds of this series are payable from the General Obligation Water
System Bonds, Series 19888 Fund of the City (the "Bond Fund"). All taxable
property within the City is subject to the levy of direct general ad valorem taxes
required by law to be levied and extended if needed for this purpose, without
limitation of rate or amount. The issuance of this Bond does not cause the
indebtedness of the City to exceed any constitutional or statutory limitation
thereon.
The City has designated the Bonds as "Qualified Tax-Exempt Obligations"
within the meaning of Section 265 of the Internal Revenue Code of 1986, as
amended.
As provided in the Resolution, and subject to certain limitations set forth
therein, this Bond is transferable upon the books of the City kept for that purpose
at the principal office of the Registrar, by the registered owner hereof in person or
by such owner's attorney duly authorized in writing, upon surrender of this Bond
together with a written instrument of transfer satisfactory to the Registrar, duly
executed by the registered owner or such owner's duly authorized attorney. Upon
such transfer and the payment of any tax, fee or governmental charge required to
be paid by the City or the Registrar with respect to such transfer, there will be
issued in the name of the transferee a new Bond or Bonds of the same aggregate
principal amount as the surrendered Bond.
The Bonds of this series are issuable only as fully registered bonds without
coupons in denominations of $5,000 or any integral multiple thereof not exceeding
the principal amount maturing in any one year. As provided in the Resolution and
subject to certain limitations therein set forth, the Bonds of this series are
exchangeable for a like aggregate principal amount of Bonds of this series of a
different authorized denomination, as requested by the registered owner or his duly
authorized attorney, upon surrender thereof to the Registrar.
It is hereby Certified and Recited 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 in order to make this Bond a valid and binding
general obligation of the City according to its terms, have been done, do exist,
have happened and have been performed in due form, time and manner as so
required.
This Bond shall not be valid or become obligatory for any purpose until the
Certificate of Authentication hereon shall have been manually signed by a person
authorized to sign on behalf of the Registrar.
IN WITNESS WHEREOF, The City of Monticello, Minnesota has caused this
Bond to be executed with the facsimile signatures of its Mayor and its
Administrator, both as of the Nominal Date of Original Issue specified above.
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Dated:
THE CITY OF MONTICELLO, MINNESOTA
By
(Facsimile)
Mayor
(Facsimile)
Administrator
Certificate of Authentication
This is one of the Bonds described in the within mentioned Resolution.
Bond Registrar
By
Authorized Signature.
ASSIGNMENT
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto
(Please Print or Typewrite Name and Address of Transferee.
Include information for all joint owners if the Bond is held by joint account.)
the within Bond and all rights thereunder, and hereby irrevocably constitutes and
appoints attorney to transfer the within Bond on
the books kept for registration thereof, with full power of substitution in the
premises.
Dated:
Signature Guaranteed by:
Signature(s) must be guaranteed by a Notice: The signature(s) on this
commercial bank or trust company or assignment must correspond with the
by a brokerage firm having name(s) appearing on the face of this
membership in one of the major stock Bond in every particular, without
exchanges. alteration or any change whatever.
Please Insert Social Security Number
or Other Identifying Number of
Assignee
(Form of Certificate)
CERTIFICATE AS TO LEGAL OPINION
I, Rick Wolfsteller, Administrator of Monticello, Minnesota, hereby certify
that except for the date line, the above is a full, true and compared copy of the
legal opinion of Holmes ~ Graven, Chartered, of Minneapolis, Minnesota, which
was delivered to me upon delivery of the bonds and is now on file in my office.
(Facsimile)
Administrator
3.02 As long as any of the Bonds issued hereunder shall remain
outstanding, the Issuer shall cause to be kept at the principal office of the
Registrar the Register in which, subject to such reasonable regulations as the
Registrar may prescribe, the Registrar shall provide for the registration of Bonds
and the registration of transfers Of Bonds. American National Bank and Trust Company
is hereby appointed Registrar, Transfer Agent and Paying Agent with respect to
the Bonds.
Upon surrender for transfer of any Bond with a written instrument of
transfer satisfactory to the Registrar, duly executed by the registered owner or his
duly authorized attorney, and upon payment of any tax, fee or other governmental
charge required to be paid with respect to such transfer, the Issuer shall execute
and the Registrar shall authenticate and deliver, in the name of the designated
transferee or transferees, one or more fully registered Bonds of any authorized
denominations and of a like aggregate principal amount, interest rate and maturity.
Any Bonds, upon surrender thereof at the office of the Registrar may, at the option
of the registered owner thereof, be exchanged for an equal aggregate principal
amount of Bonds of the same maturity and interest rate of any authorized
denominations. In all cases in which the privilege of exchanging or transferring
fully registered Bonds is exercised, the Issuer shall execute and the Registrar shall
deliver Bonds in accordance with the provisions of this Resolution. For every such
exchange or transfer of Bonds, whether temporary or definitive, the Issuer or the
bond Registrar may make a charge sufficient to reimburse it for any tax, fee or
other governmental charge required to be paid with respect to such exchange or
transfer, which sum or sums shall be paid by the person requesting such exchange
or transfer as a condition precedent to the exercise of the privilege of making such
exchange or transfer. Notwithstanding any other provision of this Resolution, the
cost of preparing each new Bond upon each exchange or transfer, and any other
expenses of the Issuer or the Bond Registrar incurred in connection therewith
(except any applicable tax, fee or other governmental charge) shall be paid by the
Issuer. The Issuer shall not be obligated to make any such exchange or transfer of
Bonds during the fifteen (15) days next preceding the date of the first publication
of notice of redemption in the case of a proposed redemption of Bonds. The Issuer
and the Registrar shall not be required to make any transfer or exchange of any
Bonds called for redemption.
3.03 Interest on any Bond which is payable, and is punctually paid or duly
provided for, on any interest payment date shall be paid to the person in whose
name that Bond (or one or more Bonds for which such Bond was exchanged) is
registered at the close of business on the preceding January 15 and July 15, as the
case may be. Any interest on any Bond which is payable, but is not punctually paid
or duly provided for, on any interest payment date shall forthwith cease to be
payable to the registered holder on the relevant regular record date solely by
virtue of such holder having been such holder; and such defaulted interest may be
paid by the Issuer to the person in whose name such Bond is registered at the close
of business on a special record date established by the Registrar for the payment of
such defaulted interest. Subject to the foregoing provisions of this paragraph, each
Bond delivered under this Resolution upon transfer of or in exchange for or in lieu
of any other Bond shall carry all the rights to interest accrued and unpaid, and to
accrue, which were carried by such other Bond and each such Bond shall bear
interest from such date that neither gain nor loss in interest shall result from such
transfer, exchange or substitution.
3.04 As to any Bond, the Issuer and the Registrar and their respective
successors, each in its discretion, may deem and treat the person in whose name
the same for the time being shall be registered as the absolute owner thereof for
all purposes and neither the Issuer nor the Registrar nor their respective successors
shall be affected by any notice to the contrary. Payment of or on account of the
principal of any such Bond shall be made only to or upon the order of the registered
owner thereof, but such registration may be changed as above provided. All such
payments shall be valid and effectual to satisfy and discharge the liability upon
such Bond to the extent of the sum or sums so paid.
3.05 If (i) any mutilated Bond is surrendered to the Registrar, and the
Issuer and the Registrar receive evidence to their satisfaction of the destruction,
loss, or theft of any Bond, and (ii) there is delivered to the Issuer and the Registrar
such security or indemnity as may be required by them to save each of them
harmless, then, in the absence of notice to the Issuer or the Registrar that such
Bond has been acquired by a bona fide purchaser, the Issuer shall execute, and upon
its request the Registrar shall authenticate and deliver, in exchange for or in lieu
of any such mutilated, destroyed, lost, or stolen Bond, a new Bond of like tenor and
principal amount, bearing a number not contemporaneously outstanding. In case
any such mutilated, destroyed, lost, or stolen Bond has become or is about to
become due and payable, the Issuer in its discretion may, instead of issuing a new
Bond, pay such Bond.
Upon the issuance of any new Bond under this subsection, the Issuer may
require the payment of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto. Every new Bond issued pursuant to
this subsection in lieu of any destroyed, lost, or stolen Bond shall constitute an
original additional contractual obligation of the Issuer, whether or not the
destroyed, lost, or stolen Bond shall be at any time enforceable by anyone, and
shall be entitled to all the benefits of this Resolution equally and proportionately
with any and all other Bonds duly issued hereunder.
The provisions of this Section are exclusive and shall preclude (to the extent
lawful) all other rights and remedies with respect to the replacement or payment
of mutilated, destroyed, lost, or stolen Bonds.
Section 4. Execution and Delivery
4.01 The Bonds shall be executed by the respective facsimile signatures of
Mayor and the Administrator as set forth in the form of Bond. The seal of the
Issuer shall be omitted from the Bonds as permitted by law. The text of the
approving legal opinion of Holmes do Graven, Chartered, of Minneapolis, Minnesota,
as bond counsel, shall be printed on the reverse side of each Bond and shall be
certified by the facsimile signature of the Administrator. When said Bonds shall
have been duly executed and authenticated by the Registrar in accordance with
this resolution, the same shall be delivered to the Purchaser upon payment of the
purchase price, and the receipt of the Administrator delivered to the Purchaser
thereof shall be a full acquittance; and the Purchaser shall not be bound to see to
the application of the purchase money. The Bonds shall not be valid for any
purpose until authenticated by the Registrar.
4.02 The Official Statement relating to the Bonds, on file with the
Administrator presented to this meeting, is hereby approved, and the furnishing
thereof to prospective bidders for the Bonds is hereby ratified and confirmed,
insofar as the same relates to the Bonds and the sale thereof.
4.03 If such officers find the same to be accurate, the 'Mayor and the
Administrator are authorized and directed to furnish to the Purchaser at the
closing a certificate that, to the best of the knowledge of such officers, the
Official Statement does not, at the date of closing, and did not, at the time of sale
of the Bonds, contain any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein, in the light
of the circumstances under which they were made, not misleading. Unless
..tigation shall have been commenced and be pending questioning the Bonds,
revenues pledged for payments of the bonds, or the organization of the Issuer or
incumbency o! its officers, at the closing, the Mayor and the Administrator shall
execute and deliver to the successful bidder a suitable certificate as to absence of
material litigation, and a certificate as to payment for and delivery of the Bonds,
together with the arbitrage certificate referred to below and the signed approving
legal opinion of Holmes do Graven, Chartered, as to the validity and enforceability
of the Bonds and the exemption of interest thereon from federal and Minnesota
income taxation (other than Minnesota corporate and financial institution franchise
taxes measured by net income) under present laws and rulings.
Section 5. Bond Fund and Accounts, Appropriations, Pledge.
5.01 There is hereby created a special fund of the Issuer designated
"General Obligation Water System Bonds, Series 19888 Fund" (the "Bond Fund")
held and administered by the Administrator separate and apart from all other funds
of the Issuer. The Bond Fund shall be maintained in the manner specified until all
of the Bonds herein authorized, any refunding bonds issued to refund the Bonds, and
any other general obligation bonds hereafter issued and made payable from the
Bond Fund, and the interest thereon, have been fully paid. In the Bond Fund there
shall be maintained two separate accounts, to be designated as the "Capital
Account" and the "Debt Service Account," respectively.
Capital Account. The proceeds from the sale of the Bonds, less the amount
of the proceeds of the Bonds deposited in the Debt Service Account, and less any
accrued interest received thereon, shall be credited to the Capital Account, from
which there shall be paid all costs and expenses of the Project, including the cost
of any construction contracts heretofore let and all other costs incurred and to be
incurred, of the kind authorized in Minnesota Statutes, Section 475.65.
Debt Service Account. There is hereby pledged and there shall be credited
to the Debt Service Account (a) all unused discount and accrued interest received
upon delivery of and payment for the Bonds, (b) collections of general ad valorem
taxes levied for the payment of the Bonds, and (c) all funds remaining in the
Capital Account after completion of the Project and payment of the costs thereof.
The Debt Service Account herein created shall be used solely to pay principal of,
premium, if any, and interest on the Bonds and any other general obligation bonds
hereafter issued and made payable from said Debt Service Account as provided by
law.
5.02 To provide moneys for the payment of principal and interest on the
Bonds there is hereby levied upon all of the taxable property in the Issuer a direct
annual ad valorem tax which shall be spread upon the tax rolls and collected with
and as part of, other general property taxes in said Issuer for the years and in the
amounts as follows:
Levy Year Collection Year Amount Levied
[See Attached]
Said tax levies are such that if collected in full, they together with other available
revenues will produce at least five percent (596) in excess of the amount needed to
meet when due the principal and interest payments on the Bonds (except for any
interest payable from funds which shall be on hand and irrevocably deposited to the
Debt Service Account ss of the date of delivery of and payment for the Bonds).
Said tax levies shall be irrevocable so long as any of the Bonds are outstanding and
unpaid, provided that the Issuer reserves the right and power to reduce the levies in
the manner and to the extent permitted by Minnesota Statutes, Section 475.61,
subdivision 3. The full faith and credit and taxing powers of the Issuer are hereby
irrevocably pledged for the prompt and full payment of the principal of and
interest on the Bonds and such other general obligation indebtedness as may be
made payable from the Bond Fund, as such principal and interest respectively
become due.
5.03 The Administrator is directed to keep on file in his office a
tabulation of the dates and amounts of the principal and interest payments to
become due and amounts of the principal and interest payments to become due on
bonds payable from the Bond Fund, and of the balance required in the Bond Fund on
October 1 in each year in order to cancel the taxes levied pursuant to this
Resolution for collection the following year.
Section 6. Miscellaneous.
6.01 The Issuer covenants and agrees with the Purchaser and holders of
the Bonds that the investments of proceeds of the Bonds, including the investment
of any revenues pledged to the Bonds which are considered proceeds under the
applicable regulations, and accumulated sinking funds, if any, shall be limited as to
amount and yield in such manner that the Bonds shall not be arbitrage bonds within
the meaning of Section 148 of the Internal Revenue Code of 1986, as amended (the
"Code"), and regulations thereunder. On the basis of the existing facts, estimates
and circumstances, including the foregoing findings and covenants, the Issuer
hereby certifies that it is not expected that the proceeds of the Bonds will be used
in such manner as to cause the Bonds to be arbitrage bonds under Section 148 of
the Code and any regulations thereunder. The Mayor and Administrator shall
furnish an arbitrage certificate to the Purchaser embracing or based on the
foregoing certification at the time of delivery of the Bonds to the Purchaser. The
proceeds of the Bonds will likewise be used in such manner that the Bonds are not
Private Activity bonds under Section 103(b) of the Code.
6.02 The Issuer hereby designates the Bonds as "Qualified Tax-Exempt
Obligations" within the meaning of Section 265 of the Code. With respect to such
designation, the Issuer covenants that it does not reasonably anticipate issuing
qualified tax-exempt obligations in an aggregate amount greater than $10,000,000
in calendar year 1988.
6.03 The Administrator is hereby authorized and directed to certify a copy
of this Resolution and to cause the same to be filed in the office of the Wright
County Auditor, together with such other information as such auditor may require,
and to obtain from the county auditor a certificate that the Bonds have been
entered upon his bond register.
6.04 The officers of the Issuer are authorized and directed to prepare and
furnish to the Purchaser and to the attorneys approving the Bonds, certified copies
of all proceedings and records of the Issuer relating to the power and authority of
the Issuer to issue the Bonds within their knowledge or as shown by the books and
records in their custody and control, and such certified copies and certificates shall
be deemed representations of the Issuer as to the facts stated therein.
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6.05 The Issuer covenants that it will file with the Internal Revenue
Service the information required under Section 149(e) of the Code.
Adopted this 14th day of November, 1988.
Administrator
Mayor
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