03-077 RESEXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
ELK RIVER, MINNESOTA
Pursuant to due call and notice thereof, a special meeting of the City Council of
the City of Elk River, Minnesota, was duly held in the Elk River City Hall on November 10,
2003, commencing at 7:07 P.M., C.T., in part for the purpose of considering the sale of the City's
$1,255,000 General Obligation Improvement Bonds, Series 2003A.
The following Councilmembers were present: Stephanie Klinzing, John Dietz,
Louise Kuester, Paul Motin and Dan Tveite;
and the following were absent: none.
During said meeting, Deitz introduced the following Resolution and moved its
adoption:
RESOLUTION NO. 03-77
RESOLUTION PROVIDING FOR THE
ISSUANCE AND SALE OF THE CITY'S
$1,255,000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 2003A
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 following assessable public improvements (the "Improvements")
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:
1581385vl
Zane Avenue, Boston/Concord Streets and 2003
Pavement Rehabilitation Improvement Projects:
Net Project Costs $1,225,650
Bond Discount 11,002
Issuance Costs 18,061
Rounding 287
Net Bond Issue
$1,255,000
(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 by requisite Council
vote 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 Citigroup Global Markets, Inc, Chicago, Illinois (the
"Purchaser") to purchase the City's $1,255,000 General Obligation Improvement Bonds,
Series 2003A (the "Bonds"), at the rates of interest and upon the other terms set forth in
this Resolution, and to pay therefor the sum of $1,249,434.49 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:
(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
1581385vl 2
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 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
1581385vl 3
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) All 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.
(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 ofBook-Ent _ry 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
1581385vl 4
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 Issuer Letter of Representations. The City's execution of the City
the Blanket Issuer Letter of Representations (the "Letter of Representations") in
substantially the form on file in the offices of the City is hereby ratified and approved.
The provisions in the 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 Letter of Representations, the provisions in the Letter of
Representations shall control.
3. Title; Original Issue Date; Denominations; Maturities. The Bonds shall be
titled "General Obligation Improvement Bonds, Series 2003A," shall be dated December 9,
2003, 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
2005 $185,000 2010 $95,000
2006 225,000 2011 90,000
2007 225,000 2012 90,000
2008 100,000 2013 90,000
2009 95,000 2014 60,000
As may be permitted in the offering of the Bonds and as may be requested by the
Purchaser, one or more term Bonds may be issued having mandatory sinking fund redemption
and final maturity amounts conforming to the foregoing principal repayment schedule, and
corresponding additions or other changes may be made to the form of the Bonds.
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, 2004,
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:
1581385vl 5
Maturity Interest Maturity Interest
Year Rate Year Rate
2005 2.00% 2010 3.25%
2006 2.00% 2011 3.50%
2007 2.25% 2012 3.50%
2008 2.75% 2013 3.70%
2009 3.00% 2014 4.00%
6. Redemption. All Bonds maturing after February 1,2011, 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. Ifa 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 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 Registrar. U. S. Bank National Association, in St. Paul, Minnesota,
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
1581385vl 6
(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:
1581385vl 7
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF SHERBURNE
CITY OF ELK RIVER
GENERAL OBLIGATION IMPROVEMENT
BOND, SERIES 2003A
INTEREST MATURITY DATE OF
RATE DATE ORIGINAL ISSUE CUSIP
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS
The City of Elk River, Sherbume County, Minnesota (the "City"), hereby
acknowledges itself to be indebted and, for value received, promises to pay to the registered
owner specified above, or registered assigns, in the manner hereinafter set forth, the principal
amount specified above on the maturity date specified above, unless duly called for earlier
redemption, and to pay interest thereon semiannually on February 1 and August 1 of each year
(each, an "Interest Payment Date"), commencing August 1, 2004, at the rate per annum specified
above (calculated on the basis of a 360-day year consisting of twelve 30-day months) until the
principal sum is paid or has been provided for. This Bond will bear interest from the most recent
Interest Payment Date to which interest has been paid or, if no interest has been paid, from the
date of original issue hereof. The principal of and premium, if any, on this Bond are payable
upon presentation and surrender hereof at the principal office of
, in ,
(the "Bond Registrar"), acting as paying agent, or at the principal office of any
successor paying agent duly appointed by the City. Interest on this Bond will be paid on each
Interest Payment Date by check or draft mailed to the person in whose name this Bond is
registered (the "Registered Owner") on the registration books of the City maintained by the Bond
Registrar. and at the address appearing thereon at the close of business on the fifteenth day of the
calendar month preceding such Interest Payment Date (the "Regular Record Date"). Any interest
not so timely paid shall cease to be payable to the person who is the Registered Owner hereof as
of the Regular Record Date, and shall be payable to the person who is the Registered Owner
hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar
whenever money becomes available for payment of the defaulted interest. Notice of the Special
Record Date shall be given to Registered Owners not less than ten days prior to the Special
Record Date. The principal of and premium, if any, and interest on this Bond are payable in
lawful money of the United States of America.
1581385vl 8
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL
FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
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 have happened and
to be performed, precedent to and in the issuance of this Bond, have been done, have happened
and have been performed in regular and due form, time and manner as required by law, and that
this Bond, together with all other indebtedness of the City outstanding on the date of original
issue hereof and the date of its actual issuance and delivery to the original purchaser, does not
exceed any constitutional or statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of Elk River, Sherbume County, Minnesota,
by its City Council, has caused this Bond to be executed on its behalf by the facsimile signatures
of its Mayor and its City Administrator; has caused the corporate seal of the City to be
intentionally omitted herefrom, as permitted by law; and has caused this Bond to be executed
manually by the Bond Registrar, acting as the City's duly appointed authenticating agent for the
Bonds.
1581385vl 9
Date of Registration:
Registrable by:
BOND KEGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
Payable at:
CITY OF ELK RIVER,
SHERBURNE COUNTY,
MINNESOTA
Mawr
Bond Registrar
City Administrator
By
Authorized Signature
1581385vl 10
Redemption. All Bonds of this issue maturing after February 1,2011, are 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 Bonds of that maturity 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 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.
Issuance; Purpose; General Obligation. This Bond is one of an issue in the total
principal amount of $1,255,000, all of like date of original issue and tenor, except as to
registration number, maturity, interest rate, denomination and redemption privilege, which Bond
has been issued pursuant to and in full conformity with the Constitution and laws of the State of
Minnesota and pursuant to a resolution adopted by the City Council on November 10, 2003 (the
"Resolution"), for the purpose of providing money to finance certain costs of assessable public
improvements within the City. This Bond constitutes a general obligation of the City, and to
provide moneys for the prompt and full payment of its principal, premium, if any, and interest
when the same become due, the full faith and credit and taxing powers of the City have been and
are hereby irrevocably pledged. Each capitalized term which is used but not otherwise defined in
this Bond shall have the meaning given to that term in the Resolution.
[For Bonds in Book Entry Only Form, the following paragraph shall be added, and this
Bond form (1) may be rearranged so that the signature blocks hereof appear at the end of
the main text of this form or (2) may otherwise be amended to conform to book entry
requirements and the Blanket Letter of Re ~resentations.]
~s8~38Svl 11
Book Entry_ Only Form; Blanket Letter of Representations. Pursuant to the
Resolution, the Bonds may be issued in Book Entry Only Form, and during any period in which
Bonds are in such form, the provisions applicable to the Bonds pursuant to the Blanket Letter of
Representations shall apply, notwithstanding any contrary or inconsistent provision herein or in
the Resolution.
Denominations; Exchange; Resolution. The Bonds are issuable solely as fully
registered bonds in the denominations of $5,000 and integral multiples thereof of a single
maturity and are exchangeable for fully registered bonds of other authorized denominations in
equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the
manner and subject to the limitations provided in the Resolution. Reference is hereby made to
the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the
Resolution are on file in the principal office of the Bond Registrar.
Transfer. This Bond is transferable by the Registered Owner in person or by the
Registered Owner's attorney duly authorized in writing at the principal office of the Bond
Registrar upon presentation and surrender hereof to the Bond Registrar, all subject to the terms
and conditions provided in the Resolution and to reasonable regulations of the City contained in
any agreement with the Bond Registrar. Thereupon the City shall execute and the Bond
Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully
registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or
similar designation), of an authorized denomination or denominations, in aggregate principal
amount equal to the principal amount of this Bond, of the same maturity and bearing interest at
the same rate.
Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable in connection with the transfer
or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds.
Treatment of Registered Owners. The City and Bond Registrar may treat the
person in whose name this Bond is registered as the owner hereof for the purpose of receiving
payment as herein provided (except as otherwise provided herein with respect to the Record
Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the City
nor the Bond Registrar shall be affected by notice to the contrary.
Authentication. This Bond shall not be valid or become obligatory for any
purpose or be entitled to any security unless the Certificate of Authentication hereon shall have
been executed by the Bond Registrar.
Designation of Bonds as Qualified Tax-Exempt Obligations. The Bonds have
been designated by the City as "qualified tax~exempt obligations" for purposes of Section
265(b)(3) of the Internal Revenue Code of 1986, as amended.
~ss~38Sv~ 12
ABBREVIATIONS
The following abbreviations, when used in the inscription on thc face of this
Bond, shall be construed as though they were written out in full according to applicable laws or
regulations:
TEN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship
and not as tenants in common
UTMA - as custodian for
(Gust)
under the
(State)
Transfers to Minors Act
(Minor)
Uniform
Additional abbreviations may also be used
though not in the above list.
~58~38Svl 13
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and does hereby
irrevocably constitute and appoint as attorney to transfer the Bond on the
books kept for the registration thereof, with full power of substitution in the premises.
Dated:
Notice:
The assignor's signature to this assigmnent must correspond
with the name as it appears upon the face of the within
Bond in every particular, without alteration or any change
whatever.
Signature Guaranteed:
Signature(s) must be guaranteed by a national bank or trust company, by a brokerage firm having
a membership in one of the major stock exchanges or by any other "Eligible Guarantor
Institution" as defined in 17 CFR 240.17 Ad-15(a)(2).
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the transferee requested below is provided.
Name and Address:
(Include information for all joint owners if the
Bond is held by joint account.)
~581385v~ 14
9. Execution; Temporary Bonds. The Bonds shall be executed on behalf of
the City by the signatures of its Mayor and City Administrator and be sealed with the seal of the
City; provided, however, that the seal of the City may be a printed facsimile; and provided
further that both of such signatures may be printed facsimiles and the corporate seal may be
omitted on the Bonds as permitted by law. In the event of disability or resignation or other
absence of either such officer, the Bonds may be signed by the manual or facsimile signature of
that officer who may act on behalf of such absent or disabled officer. In case either such officer
whose signature or facsimile of whose signature shall appear on the Bonds shall cease to be such
officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid
and sufficient for all purposes, the same as if he or she had remained in office until delivery. The
City may elect to deliver, in lieu of printed definitive bonds, one or more typewritten temporary
bonds in substantially the form set forth above, with such changes as may be necessary to reflect
more than one maturity in a single temporary bond. Such temporary bonds shall, upon the
printing of the definitive bonds and the execution thereof, be exchanged therefor and cancelled.
10. Authentication. No Bond shall be valid or obligatory for any purpose or
be entitled to any security or benefit under this Resolution unless a Certificate of Authentication
on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by
an authorized representative of the Bond Registrar. Certificates of Authentication on different
Bonds need not be signed by the same person. The Bond Registrar shall authenticate the
signatures of officers of the City on each Bond by execution of the Certificate of Authentication
on the Bond and by inserting as the date of registration in the space provided the date on which
the Bond is authenticated, except that for purposes of delivering the original Bonds to the
Purchaser, the Bond Registrar shall insert as a date of registration the date of original issue,
which date is December 9, 2003. The Certificate of Authentication so executed on each Bond
shall be conclusive evidence that it has been authenticated and delivered under this Resolution.
11. Registration; Transfer; Exchange. The City will cause to be kept at the
principal office of the Bond Registrar a bond register in which, subject to such reasonable
regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the
registration of Bonds and the registration of transfers of Bonds entitled to be registered or
transferred as herein provided.
Upon surrender for transfer of any Bond at the principal office of the Bond
Registrar, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert
the date of registration (as provided in paragraph 10) of, and deliver, in the name of the
designated transferee or transferees, one or more new Bonds of any authorized denomination or
denominations of a like aggregate Principal amount, having the same stated maturity and interest
rate, as requested by the transferor; provided, however, that no Bond may be registered in blank
or in the name of "bearer" or similar designation.
At the option of the.registered owner thereof, Bonds may be exchanged for Bonds
of any authorized denomination or denominations of a like aggregate principal amount and stated
maturity, upon surrender of the Bonds to be exchanged at the principal office of the Bond
Registrar. Whenever any Bonds are so surrendered for exchange, the City shall execute (if
necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and
deliver the Bonds which the registered owner making the' exchange is entitled to receive._
1581385vl 15
All Bonds surrendered upon any exchange or transfer provided for in this
Resolution shall be promptly cancelled by the Bond Registrar and thereafter disposed of as
directed by the City.
All Bonds delivered in exchange for or upon transfer of Bonds shall be valid
obligations of the City evidencing the same debt, and entitled to the same benefits under this
Resolution, as the Bonds surrendered for such exchange or transfer.
Every Bond presented or surrendered for transfer or exchange shall be duly
endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond
Registrar, duly executed by the registered owner thereof or the registered owner's attorney duly
authorized in writing.
The Bond Registrar may require payment of a sum sufficient to cover any tax or
other governmental charge payable in connection with the transfer or exchange of any Bond and
any legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable regulations of the City contained in
any agreement with the Bond Registrar, including regulations which permit the Bond Registrar
to close its transfer books between record dates and payment dates.
12. Rights Upon Transfer or Exchange. Each Bond delivered 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 carded by such other Bond.
13. Interest Payment; Record Date. Interest on any Bond shall be paid on
each Interest Payment Date by check or draft mailed to the person in whose name the Bond is
registered on the registration books of the City maintained by the Bond Registrar and at the
address appearing thereon at the close of business on the fifteenth (15th) day of the calendar
month preceding such Interest Payment Date (the "Regular Record Date"). Any such interest not
so timely paid shall cease to be payable to the person who is the registered owner thereof as of
the Regular Record Date, and shall be payable to the person who is the registered owner thereof
at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar
whenever money becomes available for payment of the defaulted interest. Notice of the Special
Record Date shall be given by the Bond Registrar to the registered owners not less than ten (10)
days prior to the Special Record Date.
14. Treatment of Registered Owner. The City and Bond Registrar may treat
the person in whose name any Bond is registered as the owner of such Bond for the purpose of
receiving payment of principal of and premium, if any, and interest (subject to the payment
provisions in paragraph 13 above) on, such Bond and for all other purposes whatsoever whether
or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected
by notice to the contrary.
15. Delivery; Application of Proceeds. The Bonds when so prepared and
executed shall be delivered by the City to the Purchaser upon receipt of the purchase price, and
the Purchaser shall not be obliged to see to the proper application thereof.
1581385vl 16
16. Fund and Accounts. There is hereby created a special fund of the City
designated the "$1,255,000 General Obligation Improvement Bonds, Series 2003A Fund" (the
"Fund") to be held and administered by the City as a bookkeeping account separate and apart
from all other funds maintained in the official financial records of the City. The Fund shall
continue to be maintained in the manner herein specified until all of the Bonds herein authorized
and all other bonds payable from said Fund and the interest thereon have been fully paid. There
shall be maintained in the Fund two (2) separate accounts, to be designated the "Capital
Account" and "Debt Service Account", respectively.
(i) Capital Account. To the Capital Account there shall be credited
the proceeds of the sale of the Bonds, less any amounts thereof deposited into the
Debt Service Account pursuant to paragraph 16(ii) below, plus any special
assessments levied with respect to the Improvements and collected prior to
completion of the Improvements and payment of the costs thereof. From the
Capital Account there shall be paid all costs and expenses of making the
Improvements, 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; and the moneys in said account shall be used for no
other purpose except as otherwise provided by law; provided that the proceeds of
the Bonds may also be used to the extent necessary to pay interest on the Bonds
due prior to the anticipated date of commencement of the collection of taxes or
special assessments levied or covenanted to be levied; and provided further that if
upon completion of the Improvements there shall remain any unexpended balance
in the Capital Account, the balance (other than any special assessments) may be
transferred by the Council to the fund of any other improvement instituted
pursuant to Minnesota Statutes, Chapter 429; and provided further that any special
assessments credited to the Capital Account shall only be applied towards
payment of the costs of the Improvements upon adoption of a resolution by the
City Council determining that the application of the special assessments for such
purpose will not cause the City to no longer be in compliance with Minnesota
Statutes, Section 475.61, Subdivision 1.
(ii) Debt Service Account. There are hereby irrevocably appropriated
and pledged to, and there shall be credited to, the Debt Service Account: (a) all
collections of special assessments herein covenanted to be levied with respect to
the Improvements and either initially credited to the Capital Account and not
already spent as permitted above and required to pay any principal and interest
due on the Bonds or collected subsequent to the completion of the Improvements
and payment of the costs thereof; (b) $9,494.49 of the proceeds of the Bonds, to
be used to pay the interest first coming due thereon; (c) any collections of all
taxes herein or hereafter levied for the payment of the Bonds and interest thereon;
(d) all funds remaining in the Capital Account after completion of the
Improvements and payment of the costs thereof, not so transferred to the account
of another improvement; (e) all investment earnings on funds held in the Debt
Service Account; and (f) any and all other moneys which are properly available
and are appropriated by the Council to the Debt Service Account. The Debt
Service Accbunt shall be used solely to pay the principal and interest and any
~ss~38Sv~ 17
premiums for redemption of the Bonds and any other general obligation bonds of
the City hereafter issued by the City and made payable from said account as
provided by law.
No portion of the proceeds of the Bonds shall be used directly or indirectly to
acquire higher yielding investments or to replace funds which were used directly or indirectly to
acquire higher yielding investments, except (1) for a reasonable temporary period until such
proceeds are needed for the purpose for which the Bonds were issued and (2) in addition to the
above in an amount not greater than the lesser of five percent (5%) of the "Sale Proceeds" of the
Bonds (being the "issue price" of the Bonds less accrued interest). To this effect, any proceeds
of the Bonds and any sums from time to time held in the Capital Account or Debt Service
Account in excess of amounts which under then-applicable federal arbitrage regulations may be
invested without regard to yield shall not be invested at a yield in excess of the applicable yield
restrictions imposed by said arbitrage regulations on such investments after taking into account
any applicable "temporary periods" or "minor portion" made available under the federal arbitrage
regulations. Money in the Fund shall not be invested in obligations or deposits issued by,
guaranteed by or insured by the United States or any agency or instrumentality thereof if and to
the extent that such investment would cause the Bonds to be "federally guaranteed" within the
meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the
"Code").
17. Assessments. It is hereby determined that no less than twenty percent
(20%) of the cost to the City of the Improvements financed hereunder within the meaning of
Minnesota Statutes, Section 475.58, Subdivision 1 (3), shall be paid by special assessments
heretofore levied or to be levied hereafter against every assessable lot, piece and parcel of land
benefitted by any of the Improvements. The City hereby covenants and agrees that it will let all
construction contracts not heretofore let within one (1) year after ordering each Improvements
financed hereunder unless the resolution ordering said Improvement specifies a different time
limit for the letting of construction contracts. The City hereby further covenants and agrees that
it will do and perform as soon as they may be done, all acts and things necessary for the final and
valid levy of such special assessments, and in the event that any such assessment be at any time
held invalid with respect to any lot, piece or parcel of land due to any error, defect, or irregularity
in any action or proceedings taken or to be taken by the City or the Council or any of the City
officers or employees, either in the making of the assessments or in the performance of any
condition precedent thereto, the City and the Council will forthwith do all further acts and take
all further proceedings as may be required by law to make the assessments a valid and binding
lien upon such property.
At the time all of the assessments are in fact levied the Council shall, based on the
then-current estimated collections of the assessments, make any adjustments in any ad valorem
taxes required to be levied in order to assure that the City continues to be in compliance with
Minnesota Statutes, Section 475.61, Subdivision 1.
· 18. Tax Levies. To provide moneys for payment of the principal of and
interest on the Bonds, there is hereby levied upon all of the taxable property in the City 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 the City for the years and in tl~e amounts as follows:
1581385vl 18
Year of Tax Year of Tax
Levy Collection Amount
See Attached
Levy
The foregoing respective tax levies shall be irrepealable so long as any of the
Bonds are outstanding and unpaid, provided that the City 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.
19. 105% Debt Service Coverage. It is hereby determined and reasonably
anticipated that the estimated collections of special assessments relating to the Improvements
and the other revenues available to the Debt Service Account will produce at least 5% in excess
of the amount needed to meet, when due, the principal of and interest on the Bonds. The City
shall cause to be filed a certified copy of this Resolution with the County Auditor of Sherbume
County and to obtain the certificate of said official required by Minnesota Statutes, Section
475.63.
20. General Obligation Pledge. The full faith and credit and taxing powers of
the City are hereby pledged to the payment of the principal of and interest on the Bonds, and in
the event of any current or anticipated deficiency of funds in the Debt Service Account of
amounts needed to make any such payment, when due, the Council shall levy ad valorem taxes
on all taxable property in the City in the amount of such deficiency. If the balance in the Debt
Service Account is ever insufficient to pay all principal and interest then due on the Bonds and
any other bonds payable therefrom, the deficiency shall be promptly paid out of any other funds
of the City which are available for such purpose, and such other funds may be reimbursed with
or without interest from the Debt Service Account when a sufficient balance is available therein.
21. Records and Certificates. The officers of the City are hereby authorized
and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality
of the issuance of the Bonds, certified copies of all proceedings and records of the City relating
to the Bonds and to the financial condition and affairs of the City, and such other affidavits,
certificates and information as are required to show the facts relating to the legality and
marketability of the Bonds as the same appear from the books and records under their custody
and control or as otherwise known to them, and all such certified copies, certificates and
affidavits, including any heretofore furnished, shall be deemed representations of the City as to
the facts recited therein.
22. Negative Covenant as to Use of Improvements. The City hereby
covenants not to use the Improvements or to cause or permit the Improvements to be used, or to
enter into any deferred payment arrangements for the cost of the Improvements, in such a
manner as (or to take any action or permit any other circumstance to exist or any action to be
taken, the effect to which would be) to cause the Bonds to be "private activity bonds" within the
meaning of Sections 103 and 141 through 150 of the Code. In particular, but without limitation,
the City covenants to forebear the implementation, effectuation or enforcement of any and all
contracts or other agreements respecting the Improvements or any property.benefitted thereby or
Tax Levy Calculation For:
Cib/of Elk River, Minnesota
$1,255,000 General Obligation Improvement Bonds, Series 2003A
Dated Date: 12/9/2003
(2) (3) (4) (5)
Levy Collect Pay Total Funds P & I Less: Less: Less: Net Tax
Year Year Year P & I Available (1) x 105% Spec Assmts Spec Assmts Spec Assmts Levy Levy
2003 / 2004 / 2005 223,888.22 9,494.49 225,113.42 51,905 46,978 43,056 83,174.42 83,200
2004 / 2005 / 2006 255,280.00 268,044.00 50,063 45,311 41,472 131,198.00 131,200
2005 / 2006 / 2007 250,780.00 263,319.00 48,221 43,644 39,888 131,566.00 131,600
2006 / 2007 / 2008 120,717.50 126,753.38 46,379 41,977 38,304 93.38 100
2007 / 2008 / 2009 112,967.50 118,615.88 44,538 40,310 36,720 -2,952.13 0
2008 / 2009 / 2010 110,117.50 115,623.38 42,696 38,643 35,136 -851.63 0
2009 / 2010 / 2011 102,030.00 107,131.50 40,854 36,976 33,552 -4,250.50 0
2010 / 2011 / 2012 98,880.00 103,824.00 39,012 35,309 31,968 -2,465.00 0
2011 / 2012 / 2013 95,730.00 100,516.50 37,170 33,642 30,384 -679.50 0
2012 / 2013 / 2014 62,400.00 65,520.00 35,329 31,975 -1,784.00 0
Totals 1,432,790.72 9,494.49 1,494,461.04 436,167 394,765 330,480 333,049.04 346,100
(1) The following funds am available to pay a portion of the interest payment due August I, 2004:
Unused Discount: $9,494.49
(2) Projected Special Assessment revenue based on $334,869 assessed at 5.50%. (Boston & Concord)
(3) Projected Special Assessment revenue based on $303,081 assessed at 5.50%. (2003 Street Rehab)
(4) Projected Special Assessment revenue based on $259,198 assessed at 5.50%. (2002 Zane Street)
(5) Cashflow and levy needs should be reviewed annually to account for prepaid and/or delinquent assessments.
EHLERS
& ASSOCIATES tNC
assessed with respect thereto, which it may now or in the future have with developers,
contractors, owners or any other person or parties to the extent that such implementation,
effectuation or enforcement would (individually or in the aggregate) cause the Bonds to become
such "private activity bonds," and to said limited extent the City would and hereby does (solely
for the benefit of the owners of the Bonds) disavow any and all such provisions, entitlements and
enforcements which would or could become so offending.
Without limitation of the foregoing, the City does not currently have and shall not
enter into any lease, use agreement, management or operation contract or other agreement
respecting the Improvements which would adversely affect the exemption from federal income
tax of the interest of the Bonds, taking into account and observing the requirements of Revenue
Procedure 97-13 of the Internal Revenue Service and any similar or other applicable revenue
procedures or guidelines relating to leases, management contracts and service contracts involving
facilities financed with tax-exempt obligations.
23. Tax-Exempt Status of the Bonds; Rebate. The City shall comply with
requirements necessary under the Code to establish and maintain the exclusion from gross
income under Section 103 of the Code of the interest on the Bonds, including without limitation
(1) requirements relating to temporary periods for investments, (2) limitations on amounts
invested at a yield greater than the yield on the Bonds, and (3) the rebate of excess investment
earnings to the United States if the Bonds (together with other obligations reasonably expected to
be issued and outstanding at one time in this calendar year) exceed the small-issuer exception
amount of $5,000,000. For purposes of qualifying for the small issuer exception to the federal
arbitrage rebate requirements, the City hereby finds, determines and declares that (1) the Bonds
are issued by a governmental unit with general taxing powers, (2) no Bond is a private activity
bond, (3) ninety-five percent (95%) or more of the net proceeds of the Bonds are to be used for
local governmental activities of the City (or of a governmental unit the jurisdiction of which is
entirely within the jurisdiction of the City), and (4) the aggregate face amount of all tax-exempt
obligations (other than private activity bonds) issued by the City (and all entities subordinate to,
or treated as one issuer with, the City) during the 2003 calendar year is not reasonably expected
to exceed $5,000,000, all within the meaning of Section 148(f)(4)(D) of the Code.
24. Designation of Qualified Tax-Exempt Obligations. The City hereby
designates the Bonds as "qualified tax-exempt obligations" within the meaning of Section
265(b)(3) of the Code and hereby determines that:
(a) the reasonably anticipated amount of tax-exempt obligations (other than
private activity bonds, treating qualified 501(c)(3) bonds as not being private activity
bonds) which will be issued by the City (and all entities subordinate to, or treated as one
issuer with, the City) during calendar year 2003 will not exceed $10,000,000; and
(b) not more than $10,000,000 of obligations issued or to be issued by the
City during calendar year 2003 have been designated for purposes of Section 265(b)(3) of
the Code.
The City shall use its best efforts to comply with any federal procedural
requirements.which may apply in order to effectuate the designation made by this paragraph.
1581385vl 20
25. Defeasance. When any obligation of a Bond has been discharged as
provided in this paragraph, all pledges, covenants and other rights granted by this Resolution to
the registered owner of that Bond (with respect to the obligation thereof so defeased) shall, to the
extent permitted by law, cease. The City may at any time discharge any or all of such
obligation(s) with respect to any Bond, subject to the provisions of law now or hereafter
authorizing or regulating such action, by depositing irrevocably in escrow, with a suitable
institution qualified by law as an escrow agent for this purpose, cash or securities which are
backed by the full faith and credit of the United States of America, bearing interest payable at
such times and at such rates and maturing on such dates and in such amounts as shall be required
and sufficient, subject to sale and/or reinvestment in like securities, to pay said obligation(s),
which may include any interest payment on such Bond and/or principal amount due thereon at a
stated maturity (or if irrevocable provision shall have been made for permitted prior redemption
of such principal amount, at such earlier redemption date).
26. Compliance With Reimbursement Bond Regulations. With respect to the
Improvements, the City has complied and will continue to comply with the "Reimbursement
Regulations" provided in United States Treasury Regulations Section 1.150-2. In particular,
except where the following may not be required by said Regulations (e.g., with respect to certain
"preliminary expenditures"), to the extent that any of the proceeds of the Bonds will be used to
reimburse the City for a cost of the Improvements theretofore paid and temporarily financed by
the City out of other City funds, prior to the initial payment thereof (or within applicable time
limits thereafter) the City has made or will have made a duly qualifying statement of its official
intent to bond for such costs (and the City will also make the written "reimbursement allocation"
required by the Reimbursement Regulations); otherwise, the proceeds of the Bonds are to be
used for initial payment, and not for such reimbursement, of costs of the Improvements.
27. Continuing Disclosure Undertaking. The Council hereby acknowledges
that the Bonds are subject to continuing disclosure requirements under Rule 15c2-12(b)(5) (the
"Rule") of the Securities and Exchange Commission. Consequently, on the date of actual
issuance and delivery of the Bonds, the City will execute and deliver a Continuing Disclosure
Undertaking (the "Undertaking") whereunder the City will covenant to provide, or cause to be
provided, annual financial information, including audited financial statements of the City, and
notices of certain material events, as specified in the Undertaking. The proposed form of the
Undertaking which has been submitted to the City for the Council's consideration is hereby
approved, and the officers of the City are hereby authorized to execute and deliver that
Undertaking in the proposed form or in such final form thereof reflecting such modifications
thereof as are consistent with the Rule, requested by the original purchaser of the Bonds and
acceptable to the City officials who shall execute the Undertaking (which consent shall be
conclusively evidenced by their execution and delivery thereof). The Undertaking, as so
executed and delivered by the City, shall be as much a part of this Resolution as if set forth in
full herein and shall be for the benefit of the owners from time to time of the Bonds.
28. Severability. If any section, paragraph or provision of this Resolution
shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of
such section, paragraph or provision shall not affect any of the remaining provisions of this
Resolution.
~58~385v~ 21
29. Headings. Headings in this Resolution are included for convenience of
reference only and shall not limit or define the meaning of any provision hereof.
Adopted on December 30, 2003, by the Elk River City Council.
The motion for the adoption of the foregoing resolution was duly seconded by
Councilmember Tveite and upon a vote being taken thereon, the following voted in favor
thereof: Klinzing, Dietz, Kuester, Tveite and Motin;
and the following voted against the same: none.
Whereupon said resolution was declared duly passed and adopted.
1581385vl
22
BID TABULATION
$1,275,000' General Obligation Improvement Bonds, Series 2003A
CITY OF ELK RIVER, MINNESOTA
,?,ALE: November 10, 2003
AWARD: CITIGROUP GLOBAL MARKETS, INC.
RATING: Moody's Investors Service "A2."
BBI: 4.83%
NAME OF BIDDER MATURITY RATE REOFFERING PRICE
(February 1) YIELD
NET TRUE
INTEREST INTEREST
COST RATE
CITIGROUP GLOBAL MAP,KETS, INC.
Chicago, Illinois
CP, ONIN & CO., INC.
Minneapolis, Minnesota
UBS FINANCIAL SERVICES INC.
Chicago, Illinois
MORGAN STANLEY & CO., INC.
New York, New York
CIBC WORLD MARKETS
New York, New York
CITIZENS BANK
Flint, Michigan
UNITED BANKERS BANK
Bloomington, Minnesota
2005 2.000% 1.350%
2006 2.000% 1.700%
2007 2.250% 2.150%
2008 2.750% 2.600%
2009 3.000% 2.880%
2010 3.250% 3.100%
2011 3.500% 3.400%
2012 3.500% 3.600%
2013 3.700% 3.750%
2014 4.000% 3.900%
2005 1.450%
2006 1.900%
2007 2.200%
2008 2.500%
2OO9 3.150%
2010 3.150%
2011 3.500%
2012 3.500%
2013 3.800%
2014 3.800%
$1,269,251.00 $187,224.92 3.2058%
$1,264,800.00 $188,421.25 3.2325%
MILLER JOHNSON STEICHEN KINNARD
INVESTMENT SECURITIES, INC.
Minneapolis, Minnesota
2O05 1.350%
2006 1.700%
20O7 2.100%
2O08 2.5O0%
2009 2.850%
2010 3.150%
2011 3.300%
2012 3.550%
2013 3.700%
2014 3.800%
$1,259,700.00 $188,365.83 3.2397%
*Subsequent to bid opening the issue size was decreased to $1,255,000 with the 2006 maturity decreased $5,000 to $225,000, the 2007
maturity decreased $5,000 to $225,000, the 2012 matudty decreased $5,000 to $90,000, and the 2013 maturity decreased $5,000 to $90,000
in maturity value.
Adjusted Price - $1,249,434.49
Adjusted Net Interest Cost - $183,356.23
Adjusted TIC - 3.2016%
EHLERS
& ASSOCIATES tNC
LEADERS IN PUBLIC FINANCE
3060 Centre Pointe Drive, Roseville, MN 55113-1105
651.697.8500 tax 651.697.8555 www.ehlers inc.com
Offices in Roseville, MN, Brookfield, WI and Naperville, IL
$1,275,000 General Obligation Improvement Bonds, Series 2003A
City of Elk River, Minnesota
Page
NAME OF BIDDER MATURITY RATE
(February 1)
REOFFERING
YIELD
PRICE
NET
INTEREST
COST
TRUE
INTEREST
RATE
RBC DAINRAUSCHERINC.
Minneapolis, Minnesota
2005 2.000%
2006 2.250%
2007 2.375%
2008 2.500%
2009 2.800%
2010 3.100%
2011 3.400%
2012 3.625%
2013 3.750%
2014 3.875%
$1,265,555.50
$190,165.96
3.2647%
U.S. BANCORP PIPER JAFFRAY
Minneapolis, Minnesota
WELLS FARGO BROKERAGE SERVICES, LLC
Minneapolis, Minnesota
2005 3.000%
2006 3.000%
2007 3.000%
2OO8 3.000%
2009 3.450%
2010 3.450%
2011 3.450%
2012 3.450%
2013 3.700%
2014 3.700%
$1,274,976.30
$195,841.67
3.3588%
STATE OF MINNESOTA
CITY OF ELK RIVER
I, the undersigned, being the duly qualified and acting City Clerk of the City of
Elk River, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and
foregoing extract of minutes with the original minutes of a meeting of the City Council duly
called and held on the date therein indicated, which are on file and of record in my office, and
the same is a full, tree and complete transcript therefrom insofar as the same relates to awarding
the sale of the City's $1,255,000 General Obligation Improvement Bonds, Series 2003A.
WITNESS my hand as such City Clerk and the official seal of the City this p.~-p/~.2
day of "-7"~(J~~'~' ~, 2003.
(SEAL)
City..'y~rk
1581385vl