City Council Resolution 1986-10C1TY OF MONTICELLO, MINNESOTA
RESOLII'I'ION NO. 86-10
BBING A BFSOLVI'ION AIITHORIZING AND AWARDING THE
SALE OF, AND PROVIDING THE FORM, TERMS,
COVENANTS AND DIRECTIONS FOR 51,050,000
GENERAL OBLIGATION SEWER INTERCEPTOR BONDS,
3ERIE.S 1986A
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 March 10, 1986, the Council of the Lssuer passed Resolution No.
86-4 authorizing the issuance and public sale of its $1,050,000 General Obligation
Sewer Interceptor Bonds, Series 1986A (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, Chapters
115 and 475, for the purpose of providing funds (i) to pay the costs of constructing
improvements to the Issuer's sewer interceptor system (the "Project") ordered by
the Minnesota Pollution Control Agency pursuant to Minnesota Statutes, Chapter
115; and (ii) to pay costs of issuance of the Bonds. Pursuant to Minnesota Statutes,
Section 115.46, the Issuer is authorized to issue its obligations for such purpose
without a referendum.
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 After considering the bids received, the Issuer hereby awards the sale
of the $1,050,000 General Obligation Sewer Interceptor Bonds, Series 1986A (the
"Bonds") to First Ir'ational Bank of Minneapolis
(the "Purchaser" as the bidder offering the lowest net interest cost by its bid to
purchase the Bonds at a price of $ 1 , 0 3 5 , 3 0 0 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
1989 5. 4 0% 1996 6. 4 0%
1990 5. 6 0 1997 6. 5 0
1991 5. 7 5 1998 6. 6 U
1992 5. 9 0 1999 6. 7 0
1993 6.00 2000 6.80
1994 6. 2 0 2001 6. 9 0
1995 6. 3 0 2002 7. 0 0
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SPRINGSTED INCORPORATED
I:
$1,050,000
CITY OF MONTICELLO, MINNESOTA
AWARD:
Public Finance Atlwso~s
85 East Seventh Place, Sude t00
Saint Paul. Minnesota 55101.2 i d3
612 223 3000
GENERAL OBLIGATION SEWER INTERCEPTOR BONDS, SERIES 1986A
FIRST NATIONAL BANK OF MINNEAPOLIS
THE FIRST NATIONAL BANK OF SAINT PAUL
and Associate
SALE: APRIL 14, 1986 Moody's Rating: A
Interest Net Interest
Bidder Rates Price Cost & Rate
FIRST NATIONAL BANK OF
MINNEAPOLIS
THE FIRST NATIONAL BANK OF
SAINT PAUL
Robert W. Baird & Company Incorporated
NORWEST INVESTMENT SERVICES
American National Bank & Trust Co.
of Saint Paul
Dougherty, Dawkins, Strand & Yost
Incorporated
Moore, Juran and Company, Incorporated
Robert S. C. Peterson, Incorporated
JOHN G. KINNARD & COMPANY
INCORPORATED
Marcotte Hume & Associates
Summit Investment Corporation
CRONIN & COMPANY, INCORPORATED
5.40%
S .609'0
5.75%
5.90%
6.00%
6.20%
6.30%
6.40%
6.50%
6.609'0
6.709'0
6.80%
6.90%
7.00%
5.25%
5.50%
5.70%
5.90%
6.00%
6.20%
6.40%
6.509'0
6.609'0
6.75%
6.90%
7.00%
5.50%
5.75°'0
6.00°0
6.109'0
6.209'0
6.30%
6.40%
6.50%
6.60%
6.70%
6.80%
6.90%
7.00%
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2001-2002
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001-2002
$1,035,300.00
$1,034,250.00
$1,034,565.00
5.50% 1989 $1,034,302.50
5.709'0 1990
5.90% 1991
6.00% 1992
6.10% 1993
6.25 % 1994
6.40% 1995
6.50% 1996
6.65% 1997
6.80% 1998
6.90% 1999
7.00% 2000-2002
$732,334.38
(6.7294%)
$743,176.25
(6.8290%)
$743,347.50
(6.83066°0)
$746,233.13
(6.857 I %)
The Clerk-Administrator of the Issuer is directed to retain the good faith check of
the Purchaser pending delivery of and payment for the Bonds, and to return the
checks of the unsuccessful bidders.
2.03 The Issuer shall issue the Bonds in the aggregate principal amount of
$1,050,~tT6; dated May 1, 1986 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 February 1, 1987 and semiannually thereafter on each August 1 and
February 1, and shall mature on February 1 in the years and amounts as follows:
Year Amount Year Amount
1989 $ 45,000 1996 $ 75,000
1990 50,000 1997 80,000
1991 55,000 1998 85,000
1992 55,000 1999 90,000
1993 60,000 2000 100,000
1994 65,000 2001 105,000
1995 70,000 2002 115,000
2.04 All Bonds maturing on or after February 1, 1997, 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, 1996, 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 In the event that pursuant to federal laws, regulations and rulings the
Lssuer, upon advice of bond counsel, is required to use unexpended Bond proceeds
for early redemption of Bonds in order to continue exemption of the Bonds from
federal taxation, the Issuer shall use such unexpended Bond proceeds to redeem
Bands on any date at a price of 102% 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.
2.06 The Bonds shall be payable as to principal upon presentation at the
main office of American National Bank and Trust Company (the
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"Registrar"), or at the office of such other successor registrar as the Lssuer 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 to
the registered holder thereof at his or her address as it appears on the
bond register at the close of business on the ISth 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
CITY OF MONTICELLO
No. R- ~
GENERAL OBLIGATION SEWER INTERCEPTOR BOND, SERIES 1986A
Rate Maturity Nominal Date of Original Issue CUSIP
May 1,• 1986
~ The City of Monticello, Minnesota (the "City"), for value received, hereby
certifies that it is indebtec and hereby promises to pay to
or registered assigns, the principal sum o
DOS (S ) on the maturity
date specified above, upon the presentation and surrender hereof, and to pay to the
re_istered owner hereof interest on such principal sum at the interest rate
specified above from May 1,1986 , or the mast 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 February 1, 1987, until said principal sum
is paid. Principal and the redemption price are payable in lawful money of the
United States of America at
Registrar, Transfer Agent and Paying Agent, in ' ~
the offices of such successor a ent as the Cit ma desi 'Minnesota, or• at
to the registered owners at their registered addresses (thet"Regist ar )ayInterest
shall be paid on each February 1 and August 1 by check or draft of the Registrar
Trailed 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 cn 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, 199?, are subject
to redemption at the option of the City, in whole or in part in inverse order of
maturity and by Iot within a maturity, on February 1, 1996 and any interest
payment date thereafter at a price equal to par and accrued interest. Thirty days'
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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.
The Bonds of this series are also subject to redemption in the event that,
pursuant to federal laws, regulations and rulings the Lssuer, upon advice of bond
counsel, is required to use unexpended Bond proceeds for early redemption of the
Bonds in order to continue exemption of the Bonds from federal taxation. 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 call for redemption of any Bond.
This Bond is one of a series of Bonds in the aggregate principal amount of
One Million and Fifty Thousand Dollars ($1,050,000) 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
constructing improvements to the Issuer's sewer interceptor system pursuant to an
authorizing resolution (the "Resolution") adopted by the City Council of the City on
April 14, 1986, and pursuant to and in full conformity with the Constitution and
laws of the State of Minnesota, including Minnesota Statutes, Chapter 475 and
Section 115.46.
The Bonds of this series are payable from the General Obligation Sewer
Interceptor Bonds, Series 1986A 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.
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
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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 Clerk-
Administrator, both as of the Nominal Date of Original Issue specified above.
Dated:
THE CITY OF MONTICELLO, MINNESOTA
By
(Facsimile)
Mayor
(Facsimile)
Clerk-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 Bonds are 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 pa.*ticular, without
exchanges. alteration or any change whatever.
Please Insert Soeiai Security Number
or Other Identifying Number of
Assignee
(Form of Certificate)
CERTIFICATE AS TO LEGAL OPINION
I, Thomas Eidem, Clerk-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 ac Graven, Chartered, of Minneapolis, Minnesota, which
was delivered to me upon delivery of the bonds and is now on file in my office.
(Facsimile)
Clerk-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 Co.
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
6
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 Lssuer 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
cast 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. ]n 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 Clerk-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 & 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 Clerk-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 Clerk-Administrator delivered to the
Purchaser thereof shall n of the aurchasemoneya tThe Bonds shallnot be valbd fodr
to see to the applicatio p
any purpose until authenticated by the Registrar.
4.02 The Official Statement relating to the Bonds, on file with the Clerk-
Administrator presented to this meeting, is hereby approved, and the furnishing
thereof to prospectiv ates tdo the Bonds and the sale thereofatified and evnfirmed,
insofar as the same rel
4.03 If such officers find the same to be accurate, the Mayor and the
Clerk-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
8
litigation 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 of its officers, at the closing, the. Mayor and the Clerk-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 ac 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 bank excise taxes
measured by income) under present laws and rulings.
Section 5. Bond Fund and Accounts, Ap ropriations, Pledge.
5.01 There is hereby created a special fund of the Issuer designated
"General Obligation Sewer Interceptor Bonds, Series 1986A Fund" (the "Bond Fund")
held and administered by the Clerk-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, Sections 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 revenues derived from any other
sources available and pledged to pay principal, premium, if any, and interest on 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 will produce at least five
percent (596) in excess of the amount needed to meet when due the principal and
9
ATTACHMENT
Lew Year Collection Year Amount Levied
1986 1987 $ b 4, 2 5 0
1987 1988 $ 1 18 , 0 34
1988 1989 $ 12 0 , 7 3 2
1989 1990 $ 123, 042
1990 1991 $ 1 19 , 7 2 1
1991 1992 $ 121 , 5 6 4
1992 1993 $ 123,034
1993 1994 $ 124,053
1994 1995 $ 12 4 , 6 7 2
1995 1996 $ 124,882
1996 1997 $ 12 4 , 6 7 2
1997 1998 $ 12 4 , 0 3 2
1998 1999 $ 128, 200
1999 2000 $ 12 6 , 310
2000 2001 $ 129, 203
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 as 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 Lssuer 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 Clerk-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 103(c) of the Internal Revenue Code of 1954, as amended,
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 103(c) and
regulations thereunder. The Mayor and Clerk-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 industrial
development bonds under Section 103(b) of the Internal Revenue Code of 1954, as
amended. The proceeds of the Bonds will likewise be used in such manner that the
Bonds are not private loan bonds as defined in Section 103(0) of the Internal
Revenue Code of 1954, as amended.
6.02 The Clerk-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.
6.03 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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Section 7. Pending Tax Legislation.
The United States House of Representatives on December 17, 1985, adopted
H.R. 3838 (the "Tax Bill") which, among other things, imposes substantial additional
requirements and restrictions which must be complied with by issuers of tax-
exempt municipal obligations. On March 14, 1986, a joint statement (the
"Statement") was issued by the Secretary of the Treasury and the Chairmen and
Ranking Minority Members of the Senate Finance Committee and the House Ways
and Means Committee endorsing a postponement of the effective date of certain
provisions of the Tax Bill to September 1, 1986, with respect to obligations issued
for public purposes. The Statement's proposed postponement applies to the Bonds,
and the Issuer does not covenant to comply with the provisions of the Tax Bill
included in the proposed postponement. However, there is no assurance that the
proposed postponement will apply to the Bonds if and when the Tax Bill is finally
enacted. Thus, the Issuer hereby covenants and agrees, to the extent possible, to
take all reasonable actions necessary to comply with the Tax Bill, if enacted in its
current form and with an effective date prior to the date of issuance of the Bonds,
and to refrain from any actions that would cause interest on the Bonds to become
subject to federal income taxation under the Tax Bill to the extent that, upon
enactment, it is applicable to the Bonds. If necessary, the Issuer shall seek
direction from bond counsel as to compliance with this covenant.
Adopted this 14th day of April, 1986.
J
Clerk-Administrator Mayor
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Whereupon said resolution was declared duly passed and adopted. The attached
resolution is in :full force and effect and no action has been taken by the City
Council of the City of Monticello which would in any way alter or amend the
attached resolution.
Witness my hand .officially as the Clerk-Administrator of the City of
Monticello, Minnesota, this 14th day of April, 1986.
Clerk-A mirustrator
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CERTIFICATION OF MINUTES
Municipality: City of Monticello, Minnesota
Governing body: City Council
Meeting: A meeting of the City Council of the .City of Monticello,
Minnesota held on the 14th day of April, 1986, at 7:30 p.m. at
the City Municipal Building in the City of Monticello,
Minnesota.
Members
present: Mayor Grimsmo, D. Blonigen, F. Fair, W. Fair & J. Maxwell
Members
absent: None
Documents: A copy of a resolution adopted by the City Council of the City
of Monticello at said meeting.
Certification:
I, Thomas A. Eidem , Administrator
Monticello do hereby certify the following:
of the City of
Attached hereto is a true and correct copy of a resolution on file and of
record in the offices of the City of Monticello, which resolution was adopted by the
City Council, at the meeting referred to above. Said meeting was a regular
meeting of the City Council, was open to the public, and was held at the time and
place at which meetings of the City Council are regularly held. Member
F. Fair moved the adoption of the attached resolution. The motion for
adoption of the attached resolution was seconded by Member J. Maxwell A
vote being taken on the motion, the following voted in favor of the resolution:
All members
and the following voted against the resolution:
None
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