92-071 RES
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CERTIFICATION OF MINUTES RELATING TO
$560,000 GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS
SERIES 1992C
Issuer: City of Elk River, Minnesota
Governing Body: City Council
Kind, date, time, and place of meeting: A regular Council
meeting held Monday, August 3, 1992, at 7:00 o'clock p.m., at the
Elk River City Library in Elk River, Minnesota (the City).
Members present: J. Dietz, R. Holmgren, D. Kropuenske, G. Schuldt
and J. Tralle
Members absent: None
Documents Attached:
Minutes of said meeting (including):
RESOLUTION NO. 92-71
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $560,000 GENERAL OBLIGATION TEMPORARY
IMPROVEMENT BONDS, SERIES 1992C.
I, the undersigned, certify that the documents attached
hereto, as described above, have been carefully compared with
original records of the City, from which they have been
transcribed; that said documents are a correct and complete
transcript of the minutes of a meeting of the governing body of
the City, and correct and complete copies of all resolutions and
other actions taken and of all documents approved by the
governing boqy at said meeting, so far as they relate to said
bonds; and that said meeting was duly held by the governing body
at the time and place and was attended throughout by the members
indicated above, pursuant to call and notice of such meeting
given as required by law.
. WITNESS my hand and the seal of the City this 3~ day of
August, 1992.
~a~,
City Clerk
(Seal)
Member Kropuenske introduced the following resolution and
~ moved its adoption:
RESOLUTION NO. 92-71
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $560,000 GENERAL OBLIGATION TEMPORARY
IMPROVEMENT BONDS, SERIES 1992C.
BE IT RESOLVED by the City Council of the City of Elk River,
Minnesota (the City), as follows:
Section 1. Authorization and Sale.
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1.01. This Council, by resolution duly adopted July 6, 1992
(the Prior Resolution), authorized the issuance and sale of the
General Obligation Temporary Improvement Bonds, Series 1992C, of
the City, initially dated September 1, 1992, hereinafter called
"the Bonds," the proc~eds of ~hich are to be used, together with
any additional funds. of the City which might be required, to
finance the costs of an improvement project known as the Hillside
Estates Development Improvement Project (the Improvements).
1.02. The Prior Resolution authorized and directed Springsted
Incorporated (Springsted), fiscal consu~tant to the City, to
negotiate on behalf of the City with potential purchasers of the
Bonds for the purchase of the Bonds in accordance with the Terms
of Proposal set forth in the Official Statement dated July 20,
1992, prepared in connection with the offer to sell the Bonds.
eiqht (JL) proposals for the purchase of the Bonds have been
received at the time and place designated in the Terms of
Proposal. The proposals received are described on the schedule
attached hereto. .
1.03. The Council has publicly considered all proposals
presented in conformity with the Terms of Proposal. The most
favorable of such proposals is determined to be that of FBS Investment
Services Inc. (the Purchaser), to purchase the Bonds at a
price of $557,480.00 plus accrued interest to the day of delivery
and paYment, and upon the further terms and conditions set forth
in this resolution. The proposal of the Purchaser is hereby
accepted and the sale of the Bonds is hereby awarded to the
Purchaser.
1.04. The Mayor and the Administrator are directed to execute
in duplicate a contract on the part of the City for the sale of
the Bonds in accordance with the terms described in Section 1.03,
and to deliver a duplicate to the Purchaser. The City Treasurer
is directed to deposit the Purchaser's check securing the
contract of sale, and to return the checks securing other bids to
the respective. bidders.
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Section 2. Bond Terms: Reqistration: Execution and Delive~.
2.01. Maturities: Interest Rates: Denominations. The Bonds
shall be designated General Obligation Temporary Improvement
Bonds, Series 1992C, shall be originally dated as of September 1,
1992, shall be in the denomination of $5,000 each, or any
integral multiple thereof as requested by the Purchaser, shall
mature on August 1 in the respective years and amounts stated
below, and shall bear interest from date of issue until paid or
duly called for redemption at the respective annual rates set
forth opposite such years and amounts, as follows:
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Amount
1994
1995
3.25%
3.75
$275,000
$285,000
2.02. Dates: Interest Payment Dates: Interest and Principal
Payment. Each Bond shall be dated as of the last interest
payment date preceding the date of authentication to which
interest on the Bond has been paid or made available for payment,
unless (i) the date of authentication is an interest payment date
to which interest has been paid or made available for payment, in
which case such Bond shall be dated as of the date of
authentication, or (ii) the date of authentication is prior to
August 1, 1993, in which case such Bond shall be dated as of
September 1, 1992. Interest on the Bonds shall be payable on
February 1 and August 1 in each year, commencing August 1, 1993,
to the owner of record thereof as of the close of business on the
fifteenth day of the immediately preceding month, whether or not
such day is a business day (the Record Date). The Issuer shall
appoint, and shall maintain, a bond registrar, transfer agent,
and paying agent (the Registrar). Interest shall be paid on each
interest payment date by check or draft of-the Registrar mailed
to the person in whose name tne Bond is registered on the
registration books of the City maintained by the Registrar and at
the address appearing thereon on the Record Date. Principal of
any Bond, at maturity or earlier redemption, is payable on
presentation and surrender of the Bond at the main corporate
office of the Registrar, acting as paying agent.
. 2.03. Reqistration. The Bonds shall be issued in fully
registered form. The effect of registration and the rights and
duties of the Issuer and the Registrar with respect thereto shall
be as follows:
(a) Reqister. The Registrar shall keep at its
principal corporate trust office a bond register in
which the Registrar shall provide for the
registration of ownership of the Bonds and the
registration of transfers and exchanges of Bonds.
(b) Transfer of Bonds. Upon surrender for transfer of
any Bond duly endorsed by the registered owner
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thereof, or accompanied by a written instrument of
transfer, in form satisfactory to the Registrar,
duly executed by the registered owner thereof or by
an attorney duly authorized by the registered owner
in writing, the Registrar shall authenticate and
deliver, in the name of the designated transferee
or transferees, one or more new Bonds of a like
aggregate principal amount and maturity, as
requested by the transferor. The Registrar may,
however, close the books for registration of any
transfer after the fifteenth day of the month
preceding each interest payment date and until such
interest payment date.
(c) Exchange of Bonds. Whenever any Bonds are
surrendered by the registered owner for exchange,
the Registrar shall authenticate and deliver one or
more new Bonds of a like aggregate principal amount
and maturity, as requested by the registered owner
or the owner's attorney, so designated in writing.
(d) Cancellation. All Bonds surrendered upon any
transfer or exchange shall be promptly cancelled by
the Registrar and thereafter disposed of as
directed by the City.
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(e) Improper or Unauthorized Transfer. When any Bond
is presented to the Registrar for transfer, the
Registrar may refuse to transfer the same until it
is satisfied that the endorsement on such Bond or
separate instrument of transfer is valid and
genuine and that the requested transfer is legally
authorized. The Registrar shall incur no liability
for the refusal, in good faith, to make transfers
which it, in its judgment, deems improper or
unauthorized.
(f) Persons Deemed Owners. The City and the Registrar
may treat the person in whose name any Bond is at
any time registered in the bond register as the
absolute owner of such Bond, whether such Bond
shall be overdue or not, for the purpose of
receiving payment of, or on account of, the
principal of or any interest on such Bond, and for
all other pUrPOses, and all such payments so made
to any such registered owner or upon the owner's
order shall be valid and effectual to satisfy and
discharge the liability upon such Bond to the
extent of the sum or sums so paid.
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(g) Taxes, Fees. and Charges. For every transfer or
exchange of Bonds, the Registrar may impose a
charge upon the owner thereof sufficient to
reimburse the Registrar for any tax, fee, or other
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governmental charge required to be paid with
respect to such transfer or exchange.
(h) Mutilated, Lost, Stolen. or Destroyed Bonds. In
case any Bond shall become mutilated or be
destroyed, stolen or lost, the Registrar shall
deliver a new Bond of like amount, number, maturity
date, and tenor in exchange and substitution for
and upon cancellation of any such mutilated Bond or
in lieu of and in substitution for any such Bond
destroyed, stolen, or lost, upon the payment of the
reasonable expenses and charges of the Registrar in
connection therewith; and, in the case of a Bond
destroyed, stolen, or lost, upon filing with the
Registrar of evidence satisfactory to it that such
Bond was destroyed, stolen, or lost, and of the
ownership thereof, and upon furnishing to the
Registrar of an appropriate bond or indemnity in
form, substance, and amount satisfactory to it, in
which both the City and the Registrar shall be
named as obligees. All Bonds so surrendered to the
Registrar shall be cancelled by it and evidence of
such cancellation shall be given to the City. If
the mutilated, destroyed, stolen, or lost Bond has
already matured or been called for redemption in
accordance with its terms, it shall not be
necessary to issue a new Bond prior to payment.
2.04. ~ppointment of Initial Registrar. The City hereby
appoints First Trust National Association, St. Paul, Minnesota,
as the initial Registrar. The Mayor and the Administrator are
authorized to execute and deliver, on behalf of the City, a
contract with said Registrar. Upon merger or consolidation of
the Registrar with another corporation, if the resulting
corporation is a bank or trust company authorized by law to
conduct such business, such corporation shall be authorized to
act as successor Registrar. The City agrees to pay the
reasonable and customary charges of the Registrar for the
services performed. The City reserves the right to remove the
Registrar upon thirty (30) days' notice and upon the appointment
of a successor Registrar, in which event the predecessor
~egistrar shall deliver all cash and Bonds in its possession to
the successor Registrar and shall deliver the bond register to
the successor Registrar.
2.05. Optional Redemption. Bonds due on or after August 1,
1994, are subject to redemption prior to maturity on August 1,
1993, and on any date thereafter, at the option of the City, in
whole or in part; and if in part, in such order of maturity as
the City shall determine and by lot assigned in proportion to
their principal amount within each maturity, at a redemption
price equal to their principal amount, without premium, plus
accrued interest to the redemption date. Bonds selected for
redemption will cease to bear interest on the date fixed for
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redemption. Prior to the date set for redemption of any Bond
that is to be called for redemption prior to its stated maturity
date, the City Clerk shall cause notice of the call for
redemption thereof to be published as required by law, and, at
least thirty (30) days prior to the designated redemption date,
shall cause notice of the call for redemption thereof to be
mailed to the registered holders of any Bonds to be redeemed at
their addresses as they appear on the bond register described in
Section 2.03 hereof.
2.06. Execution, Authentication, and Delive~. The Bonds
shall be prepared under the direction of the Administrator and
shall be executed on behalf of the City by the signatures of the
Mayor and Administrator, provided that all signatures may be
printed, engraved, or lithographed facsimiles of the originals.
In case any officer whose signature, or a facsimile of whose
signature, shall appear on the Bonds shall cease to be such
officer before the delivery of any Bond, such signature or
facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if that officer had remained in office
until delivery. Notwithstanding such execution, no Bond shall be
valid or obligatory for any pUrPOse or entitled to any security
hereunder until the certificate of authentication on such Bond
has been duly executed by the manual signature of an authorized
representative of the Registrar. Certificates of authentication
on different Bonds need not be signed by the same representative.
The executed certificate of authentication on each Bond shall be
conclusive 'evidence that it has been authenticated and delivered
under this resolution. When the Bonds have been so prepared,
executed, and authenticated, the City Treasurer shall deliver the
same to the Purchaser upon payment of the purchase price in
accordance with the contract of sale, and the Purchaser shall not
be obligated to see to the application of the purchase price.
2.07. Form of Bonds. The Bonds shall be printed in
substantially the following form:
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[Face of the Bonds]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF SHERBURNE
CITY OF ELK RIVER
GENERAL OBLIGATION TEMPORARY IMPROVEMENT BOND, SERIES 1992C
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Maturity
Date of
Oriqinal Issue
CUSIP
September 1, 1992
REGISTERED OWNER:
PRINCIPAL AMOUNT:
DOLLARS.
KNOW ALL PERSONS BY THESE PRESENTS that City of Elk River,
Minnesota (the City), acknowledges itself to be indebted, and for
value received hereby promises to pay, to the registered owner
specified above, or registered assigns, the principal amount
specified above on the maturity date specified above, unless
called for earlier redemption, with interest thereon from the
date hereof at the annual rate specified above (calculated on the
basis of a 360-day year of twelve 30-day months), payable on
February 1 and August 1 in each year, commencing August I, 1993
(the Interest Payment Dates), until the principal sum is paid or
has been provided for. The principal of and premium, if any, on
this Bond are payable upon presentation and surrender hereof at
the principal office of First Trust National Assocjat~on, a national
banKing association duly organized and validly ex~sting under
the laws of . the United States of America (the Registrar), acting as
paying agent, or 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 registered owner at
the address appearing on the bond register maintained by the
Registrar at the close of business on the 15th day, whether or
~ot a business day, of the calendar month next preceding such
Interest Payment Date. The principal of and premium, if any, and
interest on this Bond are payable in lawful money of the United
States of America. For the prompt and full payment of such
principal and interest as the same respectively become due, the
full faith and credit and taxing powers of the City have been and
are hereby irrevocably pledged.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED, AND AGREED that
all acts, conditions, and things required by the Constitution and
laws of the State of Minnesota to be done, to exist, to happen,
and to be performed prior to and in the issuance of this Bond, in
order to make it a valid and binding general obligation of the
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City in accordance with its terms, have been done, do exist, have
happened, and have been performed in regular and due form, time,
and manner as so required; that the Bonds are payable from a
separate debt service account of the City and from special
assessments which have been appropriated to such account; that,
if necessary for payment of principal and of interest on the
bonds of this issue, ad valorem taxes may be levied upon all
taxable property within the corporate limits of the City without
limitation as to rate or amount; that, if necessary for the
payment of principal and of interest on the bondS of this issue,
the Bonds shall be paid from the proceeds of improvement bonds or
additional temporary improvement bonds which the City Council
shall offer for sale in advance of the maturity of the Bonds, and
the City hereby pledges to issue such bonds, provided, however,
that the indebtedness funded by the issuance of the Bonds shall
not be extended by the issuance of additional temporary
improvement bonds for more than six years from the date of issue
of the Bonds; and that the issuance of this Bond does not cause
the indebtedness of the City to exceed any constitutional or
statutory limitation.
ADDITIONAL PROVISIONS OF THIS BOND ARE CONTAINED ON THE
REVERSE HEREOF AND SUCH PROVISIONS SHALL FOR ALL PURPOSES HAVE
THE SAME EFFECT AS THOUGH FULLY SET FORTH IN THIS PLACE.
This Bond shall not be valid or become obligatory for any
purpose or be entitled to any security or benefit under the
resolution authorizing its issuance (the Resolution) until the
Certificate of Authentication hereon shall have been executed by
the Registrar by manual signature of one of its authorized
representatives.
IN WITNESS WHEREOF, the City by its City Council has caused
this Bond to be executed on its behalf by the facsimile
signatures of the Hayor and the Administrator and has caused this
Bond to be dated as of the date set forth below.
Dated:
CITY OF ELK RIVER, HINNESOTA
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Hayor
ATTEST:
Administrator
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CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution
mentioned within.
By:
Authorized Representative
[Reverse of the Bonds]
This Bond is one of an issue in the aggregate principal
amount of $560,000, all of like date and tenor, except as to
maturity date, interest rate, and denomination, issued pursuant
to a resolution adopted by the City Council on August 3, 1992
(the Resolution), to provide funds to finance a certain
improvement project, and is issued pursuant to and in full
conformity with the Constitution and laws of the State of
Minnesota thereunto enabling, including Chapters 429 and 475.
The Bonds of this series are issuable only as fully registered
bonds, in denominations of $5,000 or any multiple thereof, of
single maturities. The Bonds have been designated by the Issuer
as "qualified tax-exempt obligations" within the meaning of
Section 265(b)(3) of the Internal Revenue Code (the Code).
'Bonds due on or after August 1, 1994, are subject to
redemption prior to maturity on August 1, 1993, and on any date
thereafter, at the option of the City, in whole or in part, and
if in part, in such order of maturity as the City shall determine
and by lot assigned in proportion to their principal amount
within each maturity, at a redemption price equal to their
principal amount, without premium, plus accrued interest to the
redemption date. Bonds selected for redemption will cease to'
bear interest on the date fixed for redemption. Prior to the
date specified for .the redemption of any Bond that is to be
called for redemption prior to its stated maturity date, the City
will cause notice of the call for redemption to be published as
r~quired by law and, at least thirty (30) days prior to the
designated redemption date, will cause notice of the call for
redemption thereof to be mailed to the registered owner of any
Bond to be redeemed at such owner's address as it appears on the
bond register maintained by the Registrar. Upon partial
redemption of any Bond, a new Bond or Bonds will be delivered to
the owner without charge, representing the remaining principal
amount outstanding.
As provided in the Resolution and subject to certain
limitations set forth therein, this Bond is transferable upon the
books of the City at the principal office of the Registrar, by
the registered owner hereof in person or by the owner's attorney
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duly authorized in writing upon surrender hereof together with a
written instrument of transfer satisfactory to the Registrar,
duly executed by the registered owner or the owner's attorney,
and may also be surrendered in exchange for Bonds of other
authorized denominations. Upon such transfer or exchange the
City will cause a new Bond or Bonds to be issued in the name of
the transferee or registered owner, of the same aggregate
principal amount, bearing interest at the same rate and maturing
on the same date, subject to reimbursement for any tax, fee, or
governmental charge required to be paid with respect to such
transfer or exchange.
The City and the Registrar may deem and treat the person in
whose name this Bond is registered as the absolute owner hereof,
whether this Bond is overdue or not, for the purpose of receiving
payment and for all other purposes, and neither the City nor the
Registrar shall be affected by any notice to the contrary.
(Form of certificate to be printed on the reserve side of each
Bond, following a full copy of the legal opinion)
We certify that the above is a full, true, and correct copy
of the legal opinion rendered by bond counsel on the issue of
Bonds of the City of Elk River, Hinnesota, which includes the
within bond, dated as of the date of delivery of and payment for
the Bonds.
(Facsimile Signature)
Administrator
(Facsimile Signature)
Hayor
The following abbreviations, when used in the inscription on the
face of this Bond, shall be construed as though they were written
out in full according to applicable laws or regulations:
TEN COH -- as tenants in
common
UNIF TRANS HIN ACT Custodian
( Cust) (MInOr)
~EN ENT
as tenants by
the entireties under Uniform Transfers to Hinors
JT TEN
as joint
tenants with
right of
survivorship
and not as
tenants in
common
(State)
Act
Additional abbreviations may also be used though not in
the above list.
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ASSIGNMENT
For value received, the undersigned hereby sells, assigns,
and transfers unto
the within Bond and all rights thereunder, and does hereby
irrevocably constitute and appoint
attorney to transfer the said Bond on the books kept for
registration of the within Bond, with full power of substitution
in the premises.
Dated:
Notice:
The assignor's signature to this assignment
must correspond with the name as it appears
upon the face of the within Bond in every
particular, without alteration or
enlargement or any change whatever.
Signature Guaranteed:
Signature(s) must be guaranteed by a national bank or trust
company or by a brokerage firm having a membership in one of the
major stock exchanges.
The Registrar will not effect transfer of this Bond unless
the information concerning the assignee requested below is
provided.
Name and Address:
(Include information for all joint owners if
the Bond is held by joint account)
Please insert social security
or other identifying number
of assignee
Section 3. Use of Bond Proceeds.
3.01. Improvement Costs. A special fund designated
"Improvement Bonds Common Fund" has previously been established
separate from other funds of the City. A separate account is
hereby established within the Improvement Bonds Common Fund
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designated the nSeries 1992C Temporary Improvement Bonds
Construction Account.n The proceeds of the sale of the Bonds,
plus any special assessments levied with respect to the
Improvements and collected prior to the completion of the
Improvements and payment of the cost thereof, less (i) any
accrued interest, and (ii) proceeds, if any, in excess of
$554,400, shall be credited to the Series 1992C Temporary
Improvement Bonds Construction Account. From such account shall
be paid all costs and expenses related to the construction of the
Improvements, including overhead costs. The moneys in such
account may also be used to the extent necessary to pay interest
or principal due on the Bonds prior to the commencement of the
collection of special assessments levied or to be levied for the
purpose of paying the costs of the Improvements and the principal
and interest due upon the Bonds. The moneys in such account
shall be used for no other purpose, except as otherwise permitted
by law, prior to the completion and payment of all costs of the
Improvements. If upon completion of the Improvements there shall
remain any unexpended balance in such account, the balance (other
than any special assessments) may be transferred by the Council
to the account of any other improvement instituted pursuant to
Minnesota Statutes, Chapter 429. Any special assessments
credited to such account are hereby pledged and shall be used
only to pay principal and interest due on the Bonds. When the
total cost of the Improvements has been paid, such account shall
be discontinued and any money remaining in such account (not
transferred by the Council to the account of any other
improvement) shall be transferred to the separate account in the
Common Debt Service Account of the City authorized in
Section 4.01 hereof.
3.02. Other Proceeds. Proceeds attributable to accrued
interest and proceeds, if any, in excess of $554,400 shall be
deposited in the debt service account created in Section 4.01
hereof.
Section 4. Sinking Fund and Tax Levies.
4.01. Debt Se~ice Account. A special fund desiqnated
.Common Debt Service Accountn has previously been established
separate from other funds of the City. A separate account within
the Common Debt Service Account is hereby established, desiqnated
the .Series 1992C Temporary Improvement Bond Debt Service
Account.n It is hereby pledged and there shall be credited to
such separate account (i) all accrued interest received from the
purchaser of the Bonds, (ii) proceeds, if any, in excess of
$554,400, (iii) all collections of special assessments to be
levied and either initially credited to the Series 1992C
Temporary Improvement Bonds Construction Account or collected
subsequent to the completion of the Improvements and payment of
the cost thereof, (iv) all taxes levied for payment of the Bonds,
and (v) all funds remaining in the Series 1992C Temporary
Improvement Bonds Construction Account after completion of the
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Improvements and payment of the cost thereof (not transferred by
the Council to the payment of the costs of any other
improvement). Such separate account shall be .used solely to pay
principal and interest on the Bonds and any other general
obligation bonds of the City heretofore or hereafter issued by
the City and made payable from such separate account as permitted
by law. If moneys in such separate account should at any time be
insufficient to pay principal and interest due on Bonds, such
amount shall be paid from the general fund of the City, which
shall be reimbursed therefor when sufficient money becomes
available in such separate account. Any sums from time to time
held in such separate account (or any other fund of the City
which will be used to pay principal or interest to become due on
the Bonds) in excess of amounts which under Section 148 of the
Internal Revenue Code of 1986, as amended (the Code), may be
invested without regard to yield, shall not be invested at a
yield in excess of applicable yield restrictions imposed by such
provisions of the Code and regulations.
4.02. Special Assessments. The City hereby covenants and
agrees that, for the payment of the cost of Improvements, the
City will do and perform all acts and things necessary for the
final and valid levy of special assessments in an amount not less
than twenty percent (20%) of the cost of each of the
Improvements. The City estimates that it will levy assessments
in the aggregate principal amount of Five Hundred Sixty Thousand
Dollars ($560,000), payable in equal, consecutive annual
installments, with estimated interest on unpaid installments
thereof from time to time at the rate of Five and Twenty-five Hundreths
percent (5.25 %) per annum. It is presently estimated that the
principal and interest on such special assessments will be
collected in the years and amounts as follows:
Collection
Year
Amount
1993
1994
1995
$ 223,476
206,267
196,467
In the event that any such assessment shall at any time be held
invalid with respect to any lot or tract of land due to any
error, defect, or irregularity in any action or proceeding taken
or to be taken by the City or by this Councilor by any of the
officers or employees of the City, either in the making of such
assessment or in the performance of any condition precedent
thereto, the City hereby covenants and agrees that it will
forthwith do all such further things and take all such further
proceedings as shall be required by law to make such assessment a
valid and binding lien upon said property.
4.03. Pledge of Full Faith and Credit. The City pledges its
full faith and credit to the payment of the Bonds. In the event
that said special assessments do not prove sufficient to pay
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principal and interest on the Bonds, the City will promptly levy
taxes as necessary for such payment without limitation as to rate
or amount.
4.04. Obligation to Issue Additional Bonds. To the extent
that the principal of and interest on the Bonds cannot be paid
when due from receipts of special assessments, taxes, or other
funds appropriated for the pUrPOse, the Bonds shall be paid from
the proceeds of improvement bonds or additional temporary
improvement bonds which the City Council shall offer for sale in
advance of the maturity of the Bonds, and the City pledges to
issue such bonds; provided, the indebtedness funded by the
issuance of the Bonds shall not be extended by the issuance of
additional temporary improvement bonds for more than six years
from t4~ date of issue of the Bonds.
. ~ection 5. Miscellaneous.
5.01. Oualified Tax Exempt Obligations. The Bonds are hereby
designated as "Qualified Tax-Exempt Obligations" as such term is
defined in Section 265(b)(3) of the Code. The City represents
and covenants that it does not reasonably anticipate issuing
bonds which would constitute Qualified Tax Exempt Obligations in
an aggregate amount greater than $10,000,000 in 1992.
5.02. County Auditor Registration. The City Clerk is
directed to file with the County Auditor of Sherburne County a
certified copy of this resolution and to obtain from the County
Auditor a certificate stating that the Bonds have been entered
upon his bond register.
S.03. Authentication of Transcript. The officers of the City
and said County Auditor are authorized and directed to prepare
and furnish to the purchasers of the Bonds, and to bond counsel,
certified copies of all proceedings and records of the City
relating to the authorization and issuance of the Bonds and such
other affidavits and certificates as may reasonably be required
to show the facts relating to the legality and marketability of
the Bonds as such facts appear from the officers' books and
records or are otherwise known to them. All such certified
copies, certificates, and affidavits, including any heretofore
turnished, shall be deemed representations of the City as to the
correctness of all statements contained therein.
5.04. Arbitrage. The City covenants and agrees with the
holders from time to time of the Bonds herein authorized that it
will not take, or permit to be taken, by any of its officers,
employees, or agents, any action which would cause the interest
payable on the Bonds to become subject to taxation under the
Code; and that it will take, or will cause its officers,
employees, or agents to take, all affirmative actions within its
powers which may be necessary to insure that such interest will
not become subject to taxation under the Code. The Code as used
herein includes the Code and all regulations adopted thereunder.
14.
.
.
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The City will make payments to the United States, if any, which
are required to be made by the provision of paragraph (f) of
Section 148 of the Code. The Mayor and the Administrator, being
officers of the City charged with the responsibility for issuing
the Bonds pursuant to this Resolution, are authorized and
directed to execute and deliver to the Purchaser a certification
in order to satisfy the provisions of Section 148 of the Code.
The motion for the adoption of the foregoing resolution was
duly seconded by Member Holmqren and upon vote being taken
thereon, the following voted in favor thereof: J. Dietz, R. Holmgren,
D. Kropuenske, G. Schuldt and J. Tralle
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.
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LAS:DU2a
15.
". ~ SPRINGSTED
".. ~ PUBLIC FINANCE ADVISORS
222 South Ninth Street
Suite 2825
Minneapolis, MN 55402-3368
(612) 333-9177
Fax: (612) 333-2363
.
Home Office
85 East Seventh Place
Suite 100
Saint Paul, MN 55101-2143
(612) 223-3000
Fax: (612) 223-3002
16655 West Bluemound Road
Suite 290
Brookfield, WI 53005-5935
(414) 782-8222
Fax: (414) 782-2904
6800 College Boulevard
Suite 600
Overland Park, KS 66211-1533
(913) 345-8062
Fax: (913) 345-1770
1800 K Street NW
Suite 831 .
Washington. DC 20006-2200
$560 000 (202) 466-3344
, Fax: (202) 223-1362
CITY OF ELK RIVER, MINNESOTA
GENERAL OBLIGATION TEMPORARY IMPROVEMENT
BONDS, SERIES 1992C
AWARD: FBS INVESTMENT SERVICES, INC.
SALE: August 3, 1992 Moody's Rating: Baa1
Interest Net Interest Net Interest
Bidder Rates Price Cost Rate
eFBS INVESTMENT SERVICES, INC, 3.25% 1994 $557,480.00 $50,822.08 3.7415%
3.75% 1995
DOUGHERTY, DAWKINS, STRAND & 3.60% 1994 $558,035.00 $53,358.74 3.9282%
BIGELOW, INCORPORATED 3.90% 1995
AMERICAN NATIONAL BANK SAINT PAUL 3.40% 1994 $556,008.00 $53,500.33 3.9386%
3.80% 1995
MOORE, JURAN AND COMPANY, 3.50% 1994 $557,256.00 $53,610.66 3.9467%
INCORPORATED 3.90% 1995
NORWEST INVESTMENT SERVICES, 3.40% 1994 $556,696.00 $53,643.58 3.9492%
INCORPORATED 3.90% 1995
CRONIN & COMPANY, INCORPORATED 3.60% 1994 $556,976.00 $54,417.75 4.0062%
Marquette Bank Minneapolis, N.A. 3.90% 1995
PIPER JAFFRA Y, INC. 3.70% 1994 $556,920.00 $55,832.08 4.1103%
4.00% 1995
MILLER & SCHROEDER FINANCIAL, INC. 3.75% 1994-1995 $554,400.00 $56,537.50 4.1622%
----------------------------------------------------------------------------------.....--------------------------.............-------------------------------------------..........------------
.
These Bonds are being reoffered at par.
BBI: 5.89
Average Maturity: 2.43 Years