4.3. & 4.4. SR 07-28-1997~ty of
ver
Item~.3. & 4.4.
MEMORANDUM
TO:
FROM:
Mayor & City Council
Lori Johnson, Asst. City Administrator/~
Finance Director
DATE:
July 28, 1997
SUBJECT:
Resolution Providing for the Issuance
and Sale of the City's $1,165,000 General
Obligation Improvement Bonds, Series
1997A and the $335,000 General
Obligation Water Revenue Bonds,
Series 1997B
Attached are resolutions awarding the sale of the city's $1,165,000 General
Obligation Improvement Bonds and the $335,000 General Obligation Water
Revenue Bonds which the Council authorized on June 30. Bids are being
accepted until 10 a.m. on Monday, July 28. On Monday night Dave
MacGillivray of Springsted will be at the Council meeting to present the bid
results. At this point we are anticipating very favorable interest rates on
both of these issues.
Also attached is a copy of the Official Statement which was used in
conjunction of the issuance of these two bonds. This document provides the
rating agency, underwriters, and potential purchasers with a variety of
financial, tax, growth, and employment information.
Action Requested
After presentation of the bids, the Council is asked to approve the two
attached resolutions providing for the issuance and sale of the city's
$1,165,000 General Obligation Improvement Bonds, Series 1997A and the
city's $335,000 General Obligation Water Revenue Bonds, Series 1997B.
\\elkriverXsysXshrdoc\council\gobonds.doc
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425
EXTRACT OF MINUTES OF A MEETING OF TEE
CITY COUNCIL OF THE CITY OF
ELK RIVER, MINNESOTA
Pursuant to due call and notice thereof, a regular or
special meeting of the City Council of the City of Elk River,
Minnesota, was duly held in the Elk River City Hall on July 28,
1997, commencing at 6:00 P.M., C.T., in part for the purpose of
considering the offers which had been received for the purchase
of the City's $1,165,000 General Obligation Improvement Bonds,
Series 1997A.
The following Councilmembers were present:
and the following were absent:
There was then presented a tabulation of the offers
which had been received in the manner specified in the Terms of
Proposal for the Bonds. The offers were as follows:
358~. 1
then introduced the
following Resolution and moved its adoption:
RESOLUTION NO.
RESOLUTION PROVIDING FOR THE
ISSUANCE AND SALE OF THE CITY'S
$1,165,000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 1997A
BE IT RESOLVED by the City Council (the "Council") of
the City of Elk River, Minnesota (the "City"), as follows:
1. Recitals. It is hereby determined:
(a) That the assessable public improvements (the
"Improvements") described in the Council's resolution of
June 30, 1997, relating to these Bonds have been duly
ordered by the City and have been constructed by the City or
will be constructed under contracts which the City has or
will let therefor, all pursuant to and in accordance with
the applicable provisions of Minnesota Statutes, Chapter
429.
(b) That is it necessary and expedient to the sound
financial management of the affairs of the City that the
City issue its bonds pursuant to Minnesota Statutes,
Chapters 429 and 475, to provide financing for the
Improvements.
(c) The Improvements and all their components have
been ordered on or prior to the date hereof, after a hearing
thereon (except where not required by law) for which mailed
and published notice was duly given as required by law
describing the Improvements and all their components by
general nature, estimated cost, and area to be assessed.
(d) The Council desires that the Bonds be issued
initially in "Book Entry Only Form" (as hereinafter
described).
2. Acceptance of Offer; Book Entry Bonds.
(a) The offer of (the
"Purchaser") to purchase the City's $1,165,000 General
Obligation Improvement Bonds, Series 1997A (the "Bonds"), at
the rates of interest and upon the other terms set forth in
this Resolution, and to pay therefor the sum of
$ plus interest accrued to settlement, is
hereby accepted.
358666.1 2
(b) Book Entry Only System. The Depository Trust
Company, a limited purpose trust company organized under the
laws of the State of New York, or any of its successors to
its functions hereunder (the "Depository"), will act as
securities depository for the Bonds, and to this end:
(i) The Bonds shall be initially issued and, so
long as they remain in book entry form only (the "Book
Entry Only Period"), shall at all times be in the form
of a separate single fully registered Bond for each
maturity of the Bonds; and for purposes of complying
with this requirement under paragraph 11 of this
Resolution, authorized denominations for each maturity
of Bonds shall be deemed to be limited during the Book
Entry Only Period to the outstanding principal amount
of that maturity. While in such~book entry form, the
Bonds are sometimes hereinafter referred to as being in
"Book Entry Only Form."
(ii) Upon initial issuance, ownership of the
Bonds shall be registered in a bond register maintained
by the Bond Registrar appointed pursuant to paragraph 7
of this Resolution mn the name of CEDE & CO., as the
nominee (it or any nominee of the existing or a
successor Depository, the "Nominee").
(iii) With respect to the Bonds, neither the City
nor the Bond Registrar shall have any responsibility or
obligation to any broker, dealer, bank, or any other
financial institution for which the Depository holds
Bonds as securities depository (the "Participant") or
to the person for which a Participant holds an interest
in the Bonds shown on the books and records of the
Participant (the "Beneficial Owner"). Without limiting
the immediately preceding sentence, neither the City,
nor the Bond Registrar, shall have any such
responsibility or obligation with respect to (A) the
accuracy of the records of the Depository, the Nominee
or any Participant with respect to any ownership
interest in the Bonds, or (B) the delivery to any
Participant, any Beneficial Owner or any other person,
other than the Depository, of any notice with respect
to the Bonds, including any notice of redemption, or
(C) the payment to any Participant, any Beneficial
Owner or any other person, other than the Depository,
of any amount with respect to the principal of or
premium, if any, or interest on the Bonds, or (D) the
consent given or other action taken by the Depository
as the registered owner of any Bonds (the "Holder").
For purposes of securing the vote or consent of any
Holder under this Resolution, the City may, however,
rely upon an omnibus proxy under which the Depository
assigns its consenting or voting rights to certain
35~66.1 3
Participants to whose accounts the Bonds are credited
on the record date identified in a listing attached to
the omnibus proxy.
(iv) The City and the Bond Registrar may treat as
and deem the Depository to be the absolute owner of the
Bonds for the purpose of payment of the principal of
and premium, if any, and interest on the Bonds, for the
purpose of giving notices of redemption and other
matters with respect to the Bonds, for the purpose of
obtaining any consent or other action to be taken by
Holders for the purpose of registering transfers with
respect to such Bonds, and for all purpose whatsoever.
The Bond Registrar, as paying agent hereunder, shall
pay all principal of and premium, if any, and interest
on the Bonds only to or upon the Holder or the Holders
of the Bonds, as shown on the Bond Registrar's bond
register, and all such payments shall be valid and
effective to fully satisfy and discharge the City's
obligations with respect to the principal of and
premium, if any, and interest on the Bonds to the
extent of the sum or sums so paid.
(v) Upon delivery by the Depository to the Bond
Registrar of written notice to the effect that the
Depository has determined to substitute a new Nominee
in place of the existing Nominee, and subject to the
transfer provisions in paragraph 11 hereof, references
to the Nominee hereunder shall refer to such new
Nominee.
(vi) So long as any Bond is registered in the
name of a Nominee, all payments with respect to the
principal of and premium, if any, and interest on such
Bond and all notices with respect to such Bond shall be
made and given, respectively, by the Bond Registrar or
the City, as the case may be, to the Depository as
provided in the Blanket Letter of Representations
required by the Depository as a condition to its acting
as book-entry Depository for the Bonds (said Blanket
Letter of Representations, together with any
replacement thereof or amendment or substitute thereto,
including any standard procedures or policies
referenced therein or applicable thereto respecting the
procedures and other matters relating to the
Depository's role as book-entry Depository for the
Bonds, are collectively hereinafter referred to as the
"Blanket Letter of Representations,,).
(vii) Ail transfers of beneficial ownership
interests in each Bond issued in book-entry form shall
be limited in principal amount to authorized
denominations and shall be effected by the Depository
35S666.1 4
with the Participants for recording and transferring
the ownership of beneficial interests in such Bonds.
(viii) In connection with any notice or other
communication to be provided to the Holders pursuant to
this Resolution by the City or the Bond Registrar with
respect to any consent or other action to be taken by
Holders, the Depository shall consider the date of
receipt of notice requesting such consent or other
action as the record date for such consent or other
action; provided, that the City or the Bond Registrar
may establish a special record date for such consent or
other action. The City or the Bond Registrar shall, to
the extent possible, give the Depository notice of such
special record date not less than 15 calendar days in
advance thereof to the extent possible.
(ix) Any successor Bond Registrar, in its written
acceptance of its duties under this Resolution and any
paying agency registrar agreement, shall agree to take
any actions necessary from time to time to comply with
the requirements of the Blanket Letter of
Representations.
(c) Termination of Book-Entry Only System.
Discontinuance of a particular Depository,s services and
termination of the book-entry only system may be effected as
follows:
(i) The Depository may determine to discontinue
providing its services with respect to the Bonds at any
time by giving written notice to the City and
discharging its responsibilities with respect thereto
under applicable law. The City may terminate the
services of the Depository with respect to the Bonds if
the City determines that the Depository is no longer
able to carry out its functions as securities
depository or the continuation of the system of book-
entry transfers through the Depository is not in the
best interests of the City.
(ii) Upon termination of the services of the
Depository as provided in the preceding paragraph, and
if no substitute securities depository is willing to
undertake the functions of the Depository hereunder can
be found which, in the opinion of the City, is willing
and able to assume such functions upon reasonable or
customary terms, or if the City determines that it is
in the best interests of the City that the Beneficial
Owners be issued certificates for the Bonds, the Bonds
shall no longer be registered in the name of the
Nominee, but may be registered in whatever name or
names the Holder of the Bonds shall designate at that
358666.1 5
time, in accordance with paragraph 11 hereof. To the
extent that the Beneficial Owners are designated as the
transferee by the Molders, in accordance with paragraph
11 hereof, the Bonds will be delivered to the
Beneficial Owners.
(iii) Nothing in this subparagraph (c) shall
limit or restrict the provisions of paragraph 11
hereof.
(d) Blanket Letter of Representations. The City's
execution of the City the Blanket Letter of Representations
in substantially the form on file in the offices of the City
has heretofore been authorized and is hereby ratified. The
provisions in the Blanket Letter of Representations are
incorporated herein by reference and made fully a part of
this Resolution to the same extent as if set forth in full
herein, and if and to the extent that any provisions of this
Resolution are inconsistent or in conflict with the
provisions of the Blanket Letter of Representations, the
provisions in the Blanket Letter of Representations shall
control.
3. Title; Original Issue Date; Denominations;
Maturities. The Bonds shall be titled "General Obligation
Improvement Bonds, Series 1997A," shall be dated August 1, 1997,
as the date of original issue and shall be issued forthwith on or
after such date as fully registered bonds. The Bonds shall be
numbered from R-1 upward in the denomination of $5,000 each or in
any integral multiple thereof of a single maturity. The Bonds
shall mature on February 1 in the years and amounts as follows:
Years Amounts Years Amounts
1999 $180,000 2007 $50,000
2000 200,000 2008 25,000
2001 190,000 2009 50,000
2002 80,000 2010 15,000
2003 75,000 2011 15,000
2004 75,000 2012 15,000
2005 75,000 2013 15,000
2006 75,000
4. Purpose. The Bonds shall provide funds to finance
the Improvements. The total cost of the Improvements, which
shall include all costs enumerated in Minnesota Statutes, Section
475.65, is estimated to be at least equal to the amount of the
Bonds. Work on the Improvements shall proceed with due diligence
to completion.
5. Interest. The Bonds shall bear interest payable
semiannually on February 1 and August 1 of each year (each, an
"Interest Payment Date"), commencing August 1, 1998, calculated
358666.1 6
on the basis of a 360-day year consisting of twelve 30-day
months, at the respective rates per annum set forth opposite the
maturity years, as follows:
Maturity Interest Maturity Interest
Year Rate Year Rate
1999 % 2007
2000 2008
2001 2009
2002 " 2010
2003 2011
2004 2012
2005 2013
2006
6. Redemption. Ail Bonds maturing after February 1,
2005, shall be subject to redemption and prepayment at the option
of the City on said date and on any date thereafter at a price of
par plus accrued interest to date of redemption. Redemption may
be in whole or in part of the Bonds subject to prepayment. If
redemption is in part, the City shall determine the amount of
Bonds of each maturity to be prepaid; and if only part of the
Bonds having a common maturity date are called for prepayment,
the specific Bonds to be prepaid shall be chosen by lot by the
Bond Registrar. Bonds or portions thereof called for redemption
shall be due and payable on the redemption date, and interest
thereon shall cease to accrue from and after the redemption date.
Published notice of redemption shall in each case be given if and
to the extent required by applicable law, and mailed notice of
redemption shall be given to the paying agent and to each
affected registered owner of the Bonds.
To effect a partial redemption of Bonds having a common
maturity date, the Bond Registrar, prior to giving notice of
redemption, shall assign to each Bond of that maturity a
distinctive number for each $5,000 of the principal amount of
such Bond. The Bond Registrar shall then select by lot, using
such method of selection as it shall deem proper in its
discretion, from the numbers so assigned to such Bonds, as many
numbers as, at $5,000 for each number, shall equal the principal
amount of such Bonds to be redeemed. The Bonds to be redeemed
shall be the Bonds to which were assigned numbers so selected;
provided, however, that only so much of the principal amount of
each such Bond of a denomination of more than $5,000 shall be
redeemed as shall equal $5,000 for each number assigned to it and
so selected. If a Bond is to be redeemed only in part, it shall
be surrendered to the Bond Registrar (with, if the City or Bond
Registrar so requires, a written instrument of transfer in form
satisfactory to the City or Bond Registrar duly executed by the
registered owner thereof or by the registered owner's attorney,
duly authorized in writing) and the City shall execute (if
necessary) and the Bond Registrar shall authenticate and deliver
35~666. ~ 7
to the registered owner of such Bond, without service charge, a
new Bond or Bonds of the same series having the same stated
maturity and interest rate and of any authorized denomination or
denominations, as requested by such registered owner, in
aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Bond so surrendered.
7. Bond Reqistrar.
, in , , is appointed to act as
bond registrar and transfer agent with respect to the Bonds (the
"Bond Registrar"), and shall do so unless and until a successor
Bond Registrar is duly appointed, all pursuant to any contract
the City and Bond Registrar shall execute which is consistent
herewith. The Bond Registrar shall also serve as paying agent
unless and until a successor paying agent is duly appointed. The
principal of and interest on the Bonds shall be paid to the
registered owners (or record owners) of the Bonds in the manner
set forth in the form of Bond and paragraph 13 of this
Resolution.
8. Form of Bond. The Bonds, together with the Bond
Registrar's Certificate of Authentication, the form of Assignment
and the registration information thereon, shall be in
substantially the following form:
~58666.1 8
EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
ELK RIVER, MINNESOTA
Pursuant to due call and notice thereof, a regular or
special meeting of the City Council of the City of Elk River,
Minnesota, was duly held in the Elk River City Hall on July 28,
1997, commencing at 6:00 P.M., C.T., in part for the purpose of
considering the offers which had been received for the purchase
of the City's $335,000 General Obligation Water Revenue Bonds,
Series 1997B.
The following Councilmembers were present:
and the following were absent:
There was then presented a tabulation of the offers
which had been received in the manner specified in the Terms of
Proposal for the Bonds. The offers were as follows:
3586?5.1
then introduced the following
Resolution and moved its adoption:
RESOLUTION NO.
RESOLUTION PROVIDING FOR THE
ISSUANCE AND SALE OF THE CITY'S
$335,000 GENERAL OBLIGATION WATER REVENUE
BONDS, SERIES 1997B
BE IT RESOLVED by the City Council (the "Council") of
the City of Elk River, Minnesota (the "City"), as follows:
1. Recitals. It is hereby determined:
(a) That the improvements (the "Improvements") to the
City's municipal water system described in the Council's
resolution of July 30, 1997, relating to these Bonds have
been duly ordered by the City and have been constructed by
the City or will be constructed under contracts which the
City has or will let therefor, all pursuant to and in
accordance with the applicable provisions of Minnesota
Statutes, Section 444.075.
(b) That is it necessary and expedient to the sound
financial management of the affairs of the City that the
City issue its bonds pursuant to Minnesota Statutes, Chapter
475 and Section 444.075, to provide financing for the
Improvements.
(c) The Council desires that the Bonds be issued
initially in "Book Entry Only Form" (as hereinafter
described).
2. Acceptance of Offer; Book Entry Bonds.
(a) The offer of (the
"Purchaser") to purchase the City's $335,000 General
Obligation Water Revenue Bonds, Series 1997B (the "Bonds"),
at the rates of interest and upon the other terms set forth
in this Resolution, and to pay therefor the sum of
$ plus interest accrued to settlement, is
hereby accepted.
(b) Book Entry Only System. The Depository Trust
Company, a limited purpose trust company organized under the
laws of the State of New York, or any of its successors to
its functions hereunder (the "Depository"), will act as
securities depository for the Bonds, and to this end:
358675.1 2
(i) The Bonds shall be initially issued and, so
long as they remain in book entry form only (the "Book
Entry Only Period"), shall at all times be in the form
of a separate single fully registered Bond for each
maturity of the Bonds; and for purposes of complying
with this requirement under paragraphs 6 and 11 of this
Resolution, authorized denominations for each maturity
of Bonds shall be deemed to be limited during the Book
Entry Only Period to the outstanding principal amount
of that maturity. While in such book entry form, the
Bonds are sometimes hereinafter referred to as being in
"Book Entry Only Form."
(ii) Upon initial issuance, ownership of the
Bonds shall be registered in a bond register maintained
by the Bond Registrar appointed pursuant to paragraph 7
of this Resolution in the name of CEDE & CO., as the
nominee (it or any nominee of the existing or a
successor Depository, the "Nominee").
(iii) With respect to the Bonds, neither the City
nor the Bond Registrar shall have any responsibility or
obligation to any broker, dealer, bank, or any other
financial institution for which the Depository holds
Bonds as securities depository (the "Participant") or
to the person for which a Participant holds an interest
in the Bonds shown on the books and records of the
Participant (the "Beneficial Owner"). Without limiting
the immediately preceding sentence, neither the City,
nor the Bond Registrar, shall have any such
responsibility or obligation with respect to (A) the
accuracy of the records of the Depository, the Nominee
or any Participant with respect to any ownership
interest in the Bonds, or (B) the delivery to any
Participant, any Beneficial Owner or any other person,
other than the Depository, of any notice with respect
to the Bonds, including any notice of redemption, or
(C) the payment to any Participant, any Beneficial
Owner or any other person, other than the Depository,
of any amount with respect to the principal of or
premium, if any, or interest on the Bonds, or (D) the
consent given or other action taken by the Depository
as the registered owner of any Bonds (the "Holder").
For purposes of securing the vote or consent of any
Holder under this Resolution, the City may, however,
rely upon an omnibus proxy under which the Depository
assigns its consenting or voting rights to certain
Participants to whose accounts the Bonds are credited
on the record date identified in a listing attached to
the omnibus proxy.
(iv) The City and the Bond Registrar may treat as
and deem the Depository to be the absolute owner of the
358675.1 3
Bonds for the purpose of payment of the principal of
and premium, if any, and interest on the Bonds, for the
purpose of giving notices of redemption and other
matters with respect to the Bonds, for the purpose of
obtaining any consent or other action to be taken by
Holders for the purpose of registering transfers with
respect to such Bonds, and for all purpose whatsoever.
The Bond Registrar, as paying agent hereunder, shall
pay all principal of and premium, if any, and interest
on the Bonds only to or upon the Holder or the Holders
of the Bonds, as shown on the Bond Registrar's bond
register, and all such payments shall be valid and
effective to fully satisfy and discharge the City's
obligations with respect to the principal of and
premium, if any, and interest on the Bonds to the
extent of the sum or sums so paid.
(v) Upon delivery by the Depository to the Bond
Registrar of written notice to the effect that the
Depository has determined to substitute a new Nominee
in place of the existing Nominee, and subject to the
transfer provisions in paragraph 11 hereof, references
to the Nominee hereunder shall refer to such new
Nominee.
(vi) So long as any Bond is registered in the
name of a Nominee, all payments with respect to the
principal of and premium, if any, and interest on such
Bond and all notices with respect to such Bond shall be
made and given, respectively, by the Bond Registrar or
the City, as the case may be, to the Depository as
provided in the Blanket Letter of Representations
required by the Depository as a condition to its acting
as book-entry Depository for the Bonds (said Blanket
Letter of Representations, together with any
replacement thereof or amendment or substitute thereto,
including any standard procedures or policies
referenced therein or applicable thereto respecting the
procedures and other matters relating to the
Depository's role as book-entry Depository for the
Bonds, are collectively hereinafter referred to as the
"Blanket Letter of Representations").
(vii) Ail transfers of beneficial ownership
interests in each Bond issued in book-entry form shall
be limited in principal amount to authorized
denominations and shall be effected by the Depository
with the Participants for recording and transferring
the ownership of beneficial interests in such Bonds.
35~. 1 4
(viii) In connection with any notice or other
communication to be provided to the Holders pursuant to
this Resolution by the City or the Bond Registrar with
respect to any consent or other action to be taken by
Holders, the Depository shall consider the date of
receipt of notice requesting such consent or other
action as the record date for such consent or other
action; provided, that the City or the Bond Registrar
may establish a special record date for such consent or
other action. The City or the Bond Registrar shall, to
the extent possible, give the Depository notice of such
special record date not less than 15 calendar days in
advance thereof to the extent possible.
(ix) Any successor Bond Registrar, in its written
acceptance of its duties under this Resolution and any
paying agency registrar agreement, shall agree to take
any actions necessary from time to time to comply with
the requirements of the Blanket Letter of
Representations.
(x) In the case of a partial prepayment of a
Bond, the Holder may, in lieu of surrendering the Bond
for a Bond of a lesser denomination as provided in
paragraph 6 hereof, make a notation of the reduction in
principal amount on the panel provided on the Bond
stating the amount so redeemed.
(c) Termination of Book-Entry Only System.
Discontinuance of a particular Depository's services and
termination of the book-entry only system may be effected as
follows:
(i) The Depository may determine to discontinue
providing its services with respect to the Bonds at any
time by giving written notice to the City and
discharging its responsibilities with respect thereto
under applicable law. The City may terminate the
services of the Depository with respect to the Bonds if
the City determines that the Depository is no longer
able to carry out its functions as securities
depository or the continuation of the system of book-
entry transfers through the Depository is not in the
best interests of the City.
(ii) Upon termination of the services of the
Depository as provided in the preceding paragraph, and
if no substitute securities depository is willing to
undertake the functions of the Depository hereunder can
be found which, in the opinion of the City, is willing
and able to assume such functions upon reasonable or
customary terms, or if the City determines that it is
in the best interests of the City that the Beneficial
358675.1 5
Owners be issued certificates for the Bonds, the Bonds
shall no longer be registered in the name of the
Nominee, but may be registered in whatever name or
names the Holder of the Bonds shall designate at that
time, in accordance with paragraph 11 hereof. To the
extent that the Beneficial Owners are designated as the
transferee by the Holders, in accordance with paragraph
11 hereof, the Bonds will be delivered to the
Beneficial Owners.
(iii) Nothing in this subparagraph (c) shall
limit or restrict the provisions of paragraph 11
hereof.
(d) Blanket Letter of Representations. The City's
execution of the City the Blanket Letter of Representations
in substantially the form on file in the offices of the City
has heretofore been authorized and is hereby ratified. The
provisions in the Blanket Letter of Representations are
incorporated herein by reference and made fully a part of
this Resolution to the same extent as if set forth in full
herein, and if and to the extent that any provisions of this
Resolution are inconsistent or in conflict with the
provisions of the Blanket Letter of Representations, the
provisions in the Blanket Letter of Representations shall
control.
3. Title; Original Issue Date; Denominations;
Maturities. The Bonds shall be titled "General Obligation Water
Revenue Bonds, Series 1997B," shall be dated August 1, 1997, as
the date of original issue and shall be issued forthwith on or
after such date as fully registered bonds. The Bonds shall be
numbered from R-1 upward in the denomination of $5,000 each or in
any integral multiple thereof of a single maturity. The Bonds
shall mature on February 1 in the years and amounts as follows:
Years Amounts Years Amounts
1998 $35,000 2003 $35,000
1999 25,000 2004 35,000
2000 30,000 2005 35,000
2001 30,000 2006 40,000
2002 30,000 2007 40,000
4. Purpose. The Bonds shall provide funds to finance
the Improvements. The total cost of the Improvements, which
shall include all costs enumerated in Minnesota Statutes, Section
475.65, is estimated to be at least equal to the amount of the
Bonds. Work on the Improvements shall proceed with due diligence
to completion.
5. Interest. The Bonds shall bear interest payable
semiannually on February 1 and August 1 of each year (each, an
358675.1 6
"Interest Payment Date"), commencing February 1, 1998, calculated
on the basis of a 360-day year consisting of twelve 30-day
months, at the respective rates per annum set forth opposite the
maturity years, as follows:
Maturity Interest Maturity Interest
Year Rate Year Rate
1998 % 2003
1999 2004
2000 2005
2001 2006
2002 2007
6. Redemption. Ail Bonds maturing after February 1,
2005, shall be subject to redemption and prepayment at the option
of the City on said date and on any date thereafter at a price of
par plus accrued interest to date of redemption. Redemption may
be in whole or in part of the Bonds subject to prepayment. If
redemption is in part, the City shall determine the amount of
Bonds of each maturity to be prepaid; and if only part of the
Bonds having a common maturity date are called for prepayment,
the specific Bonds to be prepaid shall be chosen by lot by the
Bond Registrar. Bonds or portions thereof called for redemption
shall be due and payable on the redemption date, and interest
thereon shall cease to accrue from and after the redemption date.
Published notice of redemption shall in each case be given if and
to the extent required by applicable law, and mailed notice of
redemption shall be given to the paying agent and to each
affected registered owner of the Bonds.
To effect a partial redemption of Bonds having a common
maturity date, the Bond Registrar, prior to giving notice of
redemption, shall assign to each Bond of that maturity a
distinctive number for each $5,000 of the principal amount of
such Bond. The Bond Registrar shall then select by lot, using
such method of selection as it shall deem proper in its
discretion, from the numbers so assigned to such Bonds, as many
numbers as, at $5,000 for each number, shall equal the principal
amount of such Bonds to be redeemed. The Bonds to be redeemed
shall be the Bonds to which were assigned numbers so selected;
provided, however, that only so much of the principal amount of
each such Bond of a denomination of more than $5,000 shall be
redeemed as shall equal $5,000 for each number assigned to it and
so selected. If a Bond is to be redeemed only in part, it shall
be surrendered to the Bond Registrar (with, if the City or Bond
Registrar so requires, a written instrument of transfer in form
satisfactory to the City or Bond Registrar duly executed by the
registered owner thereof or by the registered owner's attorney,
duly authorized in writing) and the City shall execute (if
necessary) and the Bond Registrar shall authenticate and deliver
to the registered owner of such Bond, without service charge, a
new Bond or Bonds of the same series having the same stated
35s675.1 7
maturity and interest rate and of any authorized denomination or
denominations, as requested by such registered owner, in
aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Bond so surrendered.
7. Bond Reqistrar.
in , , is appointed to act as
bond registrar and transfer agent with respect to the Bonds (the
"Bond Registrar"), and shall do so unless and until a successor
Bond Registrar is duly appointed, all pursuant to any contract
the City and Bond Registrar shall execute which is consistent
herewith. The Bond Registrar shall also serve as paying agent
unless and until a successor paying agent is duly appointed. The
principal of and interest on the Bonds shall be paid to the
registered owners (or record owners) of the Bonds in the manner
set forth in the form of Bond and paragraph 13 of this
Resolution.
8. Form of Bond. The Bonds, together with the Bond
Registrar's Certificate of Authentication, the form of Assignment
and the registration information thereon, shall be in
substantially the following form:
3586?5.1 8
85 E. SEVENTH P[~ACE, SUITE 100
SAINT PAUL, MN 55101-2143
612-223-3000 FAX: 612-223-3002
SPRINGSTED
Pub//c F'mance Adv/sors
$1,165,000
CITY OF ELK RIVER, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1997A
(BOOK ENTRY ONLY)
AWARD:
JURAN & MOODY, A DIVISION OF MILLER, JOHNSON & KUEHN, INC.
UNITED BANKERS BANK
SALE:
July 28, 1997
Moody's Rating: Aaa
FSA Insured
Bidder
JURAN & MOODY, A DIVISION OF
MILLER, JOHNSON & KUEHN, INC.
UNITED BANKERS BANK
Interest
Rates
4.375%
4.4O%
4.45%
4.50%
4.60%
4.70%
5.00%
1999
2000-2Q03
2004
2005
2006
2007
2008-2013
Price
$1,153,383.25
Net Interest True Interest
Cost Rate
$302,333.00 4.8159%
PIPER JAFFRAY INC.
4.10% 1999
4.2O% 2000
4.30% 2001
4.40% 2OO2
4.5O% 2003
4.60% 2004
4.65% 2005
4.70% 2006
4.75% 2007
4.80% 2008
4.90% 2009
5.00% 2010
5.10% 2011
5.20% 2012
5.25% 2013
$1,153,350.00 $302,848.75 4.8184%
(Continued)
SAINT PAUL, MN . MINNEAPOLIS, MN - BROOKFIELD, WI . OVERLAND PARK, KS . WASHINGTON, DC . IOWA CITY, IA
Bidder
BERNARDI SECURITIES, INCORPORATED
NORWEST INVESTMENT SERVICES, INC.
FBS INVESTMENT SERVICES, INC.
SMITH BARNEY
CRONIN & COMPANY, INCORPORATED
DAIN BOSWORTH INCORPORATED
Interest
Rates
4.375%
4.45%
4.50%
4.65%
4.75%
4.85%
5.00%
5.10%
5.20%
5.25%
5.30%
4.50%
4.55%
4.65%
4.75%
4.85%
4.95%
5.05%
5.10%
5.20%
5.30%
4.10%
4.20%
4.30%
4.40%
4.50%
4.60%
4.70%
4.80%
4.90%
5.00%
5.10%
5.20%
5.25%
4.40%
4.50%
4.60%
4.70%
4.75%
4.80%
4.90%
5.00%
5.10%
5.15%
5.20%
5.25%
1999
2000-2003
2004-2005
2006
2007
2008
2009
2010
2011
2012
2013
1999-2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011-2013
1999-2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Price
$1,153,366.50
$1,153,350.00
$1,153,350.00
Net Interest
Cost
$305,297.25
$306,366.25
True Interest
Rate
4.8608%
4.8809%
$1,153,350.00
$307,248.75
$307,381.25
4.8840%
4.8933%
(Continued)
Bidder
Interest
Rates
Net Interest True Interest
Price Cost Rate
DEAN WITTER REYNOLDS
INCORPORATED
PAINEWEBBER INCORPORATED
OPPENHEIMER & CO., INC.
4.60% 1999-2005
4.70% 2006
4.80% 2007
4.90% 2008
4.95% 2009
5.00% 2010-2011
5.10% 2012-2013
$1,153,350.00 $309,328.75 4.9331%
REOFFERING SCHEDULE OF THE PURCHASER
Rate Year Yield
4.375 1999
4.40 2000
4.40 2001
4.40 2002
4.40 2003
4.45 2004
4.50 2005
4.60 2006
4.70 2007
5.00 2008
5.00 2009
5.00 2010
5.00 2011
5.00 2012
5.00 2013
4.00%
4.05%
4.10%
4.20%
4.30%
4.40%
Par
Par
Par
Par
Par
Par
Par
Par
Par
BBI: 5.28%
Average Maturity: 5.40 Years
85 E. SEVENTH PLACE, SUITE I00
SAINT PAUL, MN 55101-2143
612-223-3000 FAX:612-223-3002
SPRINGSTED
Public Finance ,4dvi~ors
$335,000
CITY OF ELK RIVER, MINNESOTA
GENERAL OBLIGATION WATER REVENUE BONDS, SERIES 1997B
(BOOK ENTRY ONLY)
AWARD:
NORWEST INVESTMENT SERVICES, INC.
FBS INVESTMENT SERVICES, INC.
SALE:
July 28, 1997
Moody's Rating: Baal
Bidder
Interest
Rates
NORWEST INVESTMENT SERVICES, INC.
FBS INVESTMENT SERVICES, INC.
4.00% 1998
4.10% 1999
4.20% 200O
4.30% 2001
4.40% 2O02
4.50% 2003
4.60% 2004
4.70% 2005
4.80% 2006
4.90% 2007
DAIN BOSWORTH INCORPORATED
4.40% 1998-2002
4.50% 2003
4.60% 2004
4.70% 2005
4.75% 2006
4.80% 2007
Price
$331,985.00
Net Interest True Interest
Cost Rate
$85,262.50 4.8298%
$331,650.00 $85,485.00 4.8504%
(Continued)
SAINT PAUL, MN . MINNEAPOLIS, MN · BROOKFIELD, WI · OVERLAND PARK, KS · WASHINGTON, DC . IOWA CITY, lA
Bidder
BERNARDISECURITIES, INCORPORATED
JURAN & MOODY, A DIVISION OF
MILLER, JOHNSON & KUEHN, INC.
Interest
Ratee
4.10% 1998
4.2O% 1999
4.30% 2000
4.40% 2001
4.50% 2OO2
4.60% 2003
4.70% 2004
4.75% 2005
4.80% 2006
4.90% 2007
4.70% 1998
4.75% 1999-2000
4.80% 2001-2002
4.85% 2003-2006
4.90% 2007
Net Interest True Interest
Price Cost Rate
$332,420.50 $85,748.25 4.8548%
$331,655.85 $89,241.65 5.0695%
These Bonds are being reoffered at par.
BBI: 5.28%
Average Maturity: 5.29 Years