RES 05-054
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EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE
CITY OF ELK RIVER, MINNESOTA
HELD: May 16,2005
Pursuant to due call and notice thereof, a regular or special meeting of the City Council
of the City of Elk River, Sherburne County, Minnesota, was duly held at the City Hall on
May 16, 2005, at 6:30 P.M., for the pwpose, in part, of authorizing the issuance and awarding
the sale of$I,660,000 General Obligation Sewer Revenue Refunding Bonds, Series 2005B.
The following members were present: Mayor Stephanie Klinzing, John Dietz, Jerry
Gumphrey, Larry Farber and Paul Motin;
and the following were absent: none.
Member Morin introduced the following resolution and moved its adoption:
RESOLUTION NO. 05-54
RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE
. OF $1,660,000 GENERAL OBLIGATION SEWER REVENUE
REFUNDING BONDS, SERIES 2005B AND PLEDGING NET
REVENUES FOR THE SECURITY THEREOF
A. WHEREAS, the City Council of the City of Elk River, Minnesota (the "City"),
owns and operates a municipal wastewater treatment system and utility as a separate revenue
producing public utility (the "System"); and the net revenues of the System are pledged to all or
a portion ofthe payment of the City's outstanding (i) $1,080,000 original principal amount
General Obligation Storm Sewer Revenue Bonds, Series 1994C, dated June 1, 1994; and (ii)
$2,655,000 original principal amount General Obligation Sewer Revenue Bonds, Series 1996A,
dated July 1, 1996 (collectively, the "Outstanding Bonds"); and
B. WHEREAS, the $2,655,000 original principal amount General Obligation Sewer
Revenue Bonds, Series 1996A, dated July 1, 1996 (the "Prior Bonds"), were heretofore issued
pursuant to the resolution of the City Council adopted on June 3, 1996 (the "Prior Resolution"),
for the pwpose of providing money to finance the construction of improvements to the System
(the "Project"); and
C. WHEREAS, $1,630,000 in principal amount of the Prior Bonds which mature on
and after February 1, 2007, are subject to redemption and prepayment at the option of the City on
February 1,2006, and on any interest payment date thereafter at a price of par plus accrued
interest, as provided in the Prior Resolution; and
D. WHEREAS, the refunding of the callable Prior Bonds is consistent with the
covenants made with the holders thereof and is necessary and desirable for the reduction of debt
service cost to the City; and
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E. WHEREAS, the City Council deems it desirable and in the best interests of the
City to issue $1,660,000 General Obligation Sewer Revenue Refunding Bonds, Series 2005B
(the "Bonds"), pursuant to Minnesota Statutes, Chapter 475.67, subdivision 13, to provide funds
for a crossover refunding, on February 1, 2006 (the "Refunding"), of the callable Prior Bonds
which mature on and after February 1, 2007 (the "Refunded Bonds"), in accordance with the
Prior Resolution; and
F. WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville,
Minnesota ("Ehlers"), as its independent financial advisor for the sale of the Bonds and was
therefore authorized to sell the Bonds by private negotiation in accordance with Minnesota
Statutes, Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been
solicited by Ehlers; and
G. WHEREAS, the proposals set forth on Exhibit A attached hereto were received
by the Administrator, or designee, at the offices of Ehlers at 10:00 a.m. this same day pursuant to
the Terms of Proposal established for the Bonds; and
H. WHEREAS, it is in the best interests of the City that the Bonds be issued in book-
entry form as hereinafter provided; and
NOW, THEREFORE, BE IT RESOL YED by the City Council of the City of Elk River,
Minnesota, as follows:
1. Acceptance of Offer. The offer of Piper Jaffray & Co., in Minneapolis,
Minnesota (the "Purchaser"), to purchase $1,660,000 General Obligation Sewer Revenue
Refunding Bonds, Series 2005B (the "Bonds" or individually a "Bond"), at the rates of interest
hereinafter set forth, and to pay therefor the sum of$I,663,108.08, plus any interest accrued to
settlement, is hereby accepted.
2. Bond Terms.
(a) Original Issue Date: Denominations: Maturities: Term Bond Option. The Bonds
shall be dated June 14,2005, as the date of original issue, shall be issued forthwith on or after
such date in fully registered form, shall be numbered from R-l upward in the denomination of
$5,000 each or in any integral multiple thereof of a single maturity (the "Authorized
Denominations") and shall mature on February 1 in the years and amounts as follows:
Year Amount Year Amount
2007 $140,000 2012 $170,000
2008 145,000 2013 175,000
2009 150,000 2014 180,000
2010 160,000 2015 185,000
2011 160,000 2016 195,000
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
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repayment schedule, and corresponding additions may be made to the provisions of the
applicable Bond(s).
(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 or 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 ofthe Bonds; and for purposes of
complying with this requirement under paragraphs 5 and 10 Authorized Denominations
for any Bond shall be deemed to be limited during the Book Entry Only Period to the
outstanding principal amount of that Bond.
(ii) Upon initial issuance, ownership of the Bonds shall be registered in a bond
register maintained by the Bond Registrar (as hereinafter defined) 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 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 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 Holder 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 the Holder and the Holders of the Bonds as shown on the bond register,
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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 10 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 City, as the case may be, to the Depository as provided in the Letter of
Representations to the Depository required by the Depository as a condition to its acting
as book-entry Depository for the Bonds (said 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, collectively hereinafter referred to as the "Letter of Representations It).
(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 procedures 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 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 of such special record date to the extent possible.
(ix) Any successor Bond Registrar in its written acceptance of its duties under
this Resolution and any paying agency/bond registrar agreement, shall agree to take any
actions necessary from time to time to comply with the requirements of the Letter of
Representations.
(x) In the case of a partial prepayment of a Bond, the Holder may, in lieu of
surrendering the Bonds for a Bond of a lesser denomination as provided in paragraph 5
hereof, make a notation of the reduction in principal amount on the panel provided on the
Bond stating the amount so redeemed.
(c) Termination ofBook-Entrv Only System. Discontinuance of a particular
Depository's services and termination of the book-entry only system may be effected as follows:
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(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 Bond if it 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 or the Beneficial Owners.
(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 or the Beneficial Owners of the
Bond that the Beneficial Owners be able to obtain certificates for the Bonds, the Bonds
shall no longer be registered as being registered in the bond register in the name of the
Nominee, but may be registered in whatever name or names the Holder of the Bonds
shall designate at that time, in accordance with paragraph 10 hereof. To the extent that
the Beneficial Owners are designated as the transferee by the Holders, in accordance with
paragraph 10, the Bonds will be delivered to the Beneficial Owners.
(iii) Nothing in this subparagraph (d) shall limit or restrict the provisions of
paragraph 10.
(d) Letter of Representations. The provisions in the Letter of Representations are
incorporated herein by reference and made a part of the resolution, and if and to the extent any
such provisions are inconsistent with the other provisions of this resolution, the provisions in the
Letter of Representations shall controL
3. Purpose; Refunding Findings. The Bonds (together with other available funds, if
any, appropriated in paragraph 15) shall provide funds to finance the Refunding. It is hereby
found, determined and declared that the Refunding is pursuant to Minnesota Statutes, Section
475.67, subdivision 13, shall result in a reduction of the present value (as of the crossover date)
of the dollar amount of the debt service to the City from a total dollar amount of$2,264.275.00
for the Prior Bonds to a total dollar amount of$2.086.657.11 for the Bonds, computed in
accordance with the provisions of Minnesota Statutes, Section 475.67, subdivision 12. The
dollar amount of such present value of the debt service for the Bonds is lower by at least three
percent (3.00%) than the dollar amount of such present value of the debt service for the Prior
Bonds as required in Minnesota Statutes, Section 475.67, subdivision 12.
4. Interest. The Bonds shall bear interest payable semiannually on February 1 and
August 1 of each year (each, an "Interest Payment Date"), commencing February 1, 2006,
calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per
annum set forth opposite the maturity years as follows:
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. Maturity Interest Maturity Interest
Year Rate Year Rate
2007 3.000% 2012 3.500%
2008 3.000% 2013 3.625%
2009 3.250% 2014 3.750%
2010 3.250% 2015 3.875%
2011 3.375% 2016 4.000%
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5. Redemption. All Bonds maturing on February 1, 2015, and thereafter, shall be
subject to redemption and prepayment at the option of the City on February 1, 2014, and on any
date thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of
the Bonds subject to prepayment. Ifredemption is in part, the selection of the amounts and
maturities to be prepaid shall be at the discretion of the City; 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. Mailed notice of redemption shall be given to the paying agent and to each
affected registered holder of the Bonds at least thirty days prior to the date fixed for redemption.
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 having a common
maturity date 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 and Bond Registrar dilly executed by the holder thereof or the Holder's attorney dilly
authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall
authenticate and deliver to the Holder 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 Holder, in aggregate principal amount
equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered.
6. Bond Registrar. U.S. Bank National Association, in 8t. 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. Principal and interest on the Bonds shall be paid to the registered holders (or
record holders) of the Bonds in the manner set forth in the form of Bond and paragraph 12 ofthis
resolution.
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7. 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:
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UNITEDSTATESOFAMEIDCA
STATE OF MINNESOTA
SHERBURNE COUNTY
CITY OF ELK RIVER
R-
$
GENERAL OBLIGATION SEWER REVENUE REFUNDING
BOND, SERIES 2005B
INTEREST RATE MATURITY DATE
DATE OF OIDGINAL ISSUE
CUSIP
%
FEBRUARY 1,_
JUNE 14, 2005
REGISTERED OWNER:
CEDE & CO.
PRINCIPAL AMOUNT:
DOLLARS
THE CITY OF ELK RNER, SHERBURNE COUNTY, MINNESOTA (the "Issuer"),
certifies that it is 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 called for prepayment, and to pay
interest thereon semiannually on February 1 and August 1 of each year (each, an "Interest
Payment Date"), commencing February 1, 2006, at the rate per annum specified above
(calculated on the basis of a 360-day year 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 U.S. Bank National Association, in St.
Paul, Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent
duly appointed by the Issuer. 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 "Holder" or
"Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at
the address appearing thereon at the close of business on the fifteenth day of the calendar month
next 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 Holder hereof as of the Regular
Record Date, and shall be payable to the person who is the Holder 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 Bondholders 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. So long as this Bond is registered in the name of the Depository or its Nominee as
provided in the Resolution hereinafter described, and as those terms are defined therein, payment
of principal of, premium, if any, and interest on this Bond and notice with respect thereto shall be
made as provided in the Letter of Representations, as defmed in the Resolution, and surrender of
this Bond shall not be required for payment of the redemption price upon a partial redemption of
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this Bond. Until termination of the book-entry only system pursuant to the Resolution, Bonds
may only be registered in the name of the Depository or its Nominee.
Redemption. All Bonds of this issue (the "Bonds") maturing on February 1, 2015, and
thereafter, are subject to redemption and prepayment at the option of the Issuer on February 1,
2014, and on any date thereafter at a price of par plus accrued interest. Redemption may be in
whole or in part of the Bonds subject to prepayment. Ifredemption is in part, the selection of the
amounts and maturities to be prepaid shall be at the discretion of the City; 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. Mailed notice of redemption shall be given to the
paying agent and to each affected Holder of the Bonds at least thirty (30) days prior to the date
fixed for redemption.
Selection of Bonds for Redemption: Partial Redemption. To effect a partial redemption
of Bonds having a common maturity date, the Bond Registrar shall assign to each Bond having a
common maturity date 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 assigned to the 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 such Bond of a denomination of more
than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so
selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar
(with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form
satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or the Holder's
attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond
Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a
new Bond or Bonds of the same series having the same stated maturity and interest rate and of
any Authorized Denomination or Denominations, as requested by such Holder, in aggregate
principal amount equal to and in exchange for the unredeemed portion ofthe principal of the
Bond so surrendered.
Issuance: Purpose: General Obligation. This Bond is one of an issue in the total principal
amount of$I,660,000, all of like date of original issue and tenor, except as to number, maturity,
interest rate, redemption provision and denomination, 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 May 16, 2005 (the "Resolution"), for the purpose of providing money for a
crossover refunding on February 1, 2006, of the General Obligation Sewer Revenue Bonds,
Series 1996A, dated July 1, 1996, which mature on and after February 1, 2007. This Bond is
payable out of the Escrow Account and the General Obligation Sewer Revenue Refunding
Bonds, Series 2005B Fund of the Issuer. This Bond constitutes a general obligation of the
Issuer, 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 Issuer
have been and are hereby irrevocably pledged.
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Denominations: Exchange: Resolution. The Bonds are issuable solely in fully registered
form in Authorized Denominations (as defined in the Resolution) 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 Holder in person or by the Holder's attorney
duly authorized in writing at the principal office of the Bond Registrar upon presentation and
surrender hereofto the Bond Registrar, all subject to the terms and conditions provided in the
Resolution and to reasonable regulations of the Issuer contained in any agreement with the Bond
Registrar. Thereupon the Issuer 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 Issuer 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 Issuer 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.
Qualified Tax-Exempt Obligation. This Bond has been designated by the Issuer as a
"qualified tax-exempt obligation" for purposes of Section 265(b)(3) of the Internal Revenue
Code of 1986, as amended.
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 happen 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, that the
Issuer has covenanted and agreed with the Holders of the Bonds that it will impose and collect
charges for the service, use and availability of the municipal wastewater treatment system and
utility (the "System") at the times and in amounts necessary to produce net revenues, together
with other sums pledged to the payment of the adequate to pay all principal and interest when
due on the Bonds; and that the Issuer will levy a direct, annual, irrepealable ad valorem tax upon
all of the taxable property of the Issuer, without limitation as to rate or amount, for the years and
in amounts sufficient to pay the principal and interest on the Bonds as they respectively become
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due, if the net revenues from the System, and any other sums irrevocably appropriated to the
Debt Service Account are insufficient therefor and that this Bond, together with all other debts of
the Issuer outstanding on the date of original issue hereof and the date of its 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, Sherburne 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, the corporate seal of the Issuer having been intentionally
omitted as permitted by law.
Date of Registration:
Registrable by: U.S. BANK NATIONAL
ASSOCIATION
Payable at:
U.S. BANK NATIONAL
ASSOCIATION
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bonds is one of the
Bonds described in the
Resolution mentioned
within.
CITY OF ELK RIVER,
SHERBURNE COUNTY, MINNESOTA
/s/ Facsimile
Mayor
U.S. BANK NATIONAL
ASSOCIATION
St. Paul, Minnesota
Bond Registrar
/s/ Facsimile
City Administrator
By:
Authorized Signature
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ABBREVIATIONS
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 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
(Cust)
under the
(Minor)
Uniform Transfers to Minors Act
(State)
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond
and does hereby irrevocably constitute and appoint attorney to transfer the
Bond on the books kept for the registration thereof, with full power of substitution in the
prermses.
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
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 or any other "Eligible Guarantor
Institution" as defined in 17 CPR 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.)
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PREPAYMENT SCHEDULE
This Bond has been prepaid in part on the date(s) and in the amount(s)as follows:
Date Amount Authorized Signature of Holder
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8. Execution; Temporary Bonds. The Bonds shall be printed (or, at the request of
the Purchaser, typewritten) and 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 (or, at the request of the Purchaser, photocopied) facsimile;
and provided further that both of such signatures may be printed (or, at the request of the
Purchaser, photocopied) 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 officer, the
Bonds may be signed by the manual or facsimile signature of an officer who may act on behalf
of the absent or disabled officer. In case either officer whose signature or facsimile of whose
signature shall appear on the Bonds shall cease to be the officer before the delivery of the Bonds,
the signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as
if the officer 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 may be executed with photocopied facsimile signatures
of the Mayor and City Administrator. Such temporary bonds shall, upon the printing of the
definitive bonds and the execution thereof, be exchanged therefor and cancelled.
9. 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
the 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 June 1( 2005. The Certificate of Authentication so executed on each Bond shall
be conclusive evidence that it has been authenticated and delivered under this resolution.
10. 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 9) 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 Holder, 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
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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
Holder making the exchange is entitled to receive.
All Bonds surrendered upon any exchange or transfer provided for in this resolution shall
be promptly canceled 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 general
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 Holder thereof or the Holder'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. The Administrator is hereby
authorized to negotiate and execute the terms of said agreement.
11. 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 carried by such other Bond.
12. 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 (the "Holder") 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 next 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 Holder thereof as of
the Regular Record Date, and shall be payable to the person who is the Holder 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 ofthe Special Record
Date shall be given by the Bond Registrar to the Holders not less than ten days prior to the
Special Record Date.
13. 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 12) 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.
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14. Deliverv~ Application of Proceeds. The Bonds when so prepared and executed
shall be delivered by the Finance Director to the Purchaser upon receipt of the purchase price,
and the Purchaser shall not be obliged to see to the proper application thereof.
15. Fund~ Accounts and Subaccounts. For the convenience and proper administration
of the moneys to be borrowed and repaid on the Bonds, and to make adequate and specific
security to the Purchaser and holders from time to time of the Bonds, there is hereby created a
special fund to be designated the "General Obligation Sewer Revenue Refunding Bonds, Series
2005B Fund" (the "Fund") to be administered and maintained by the Finance Director as a
bookkeeping account separate and apart from all other funds maintained in the official financial
records of the City. The Fund shall be maintained in the manner herein specified until the Bonds
and the interest thereon shall have been fully paid. The Operation and Maintenance Account
heretofore established by the City shall continue to be maintained in the manner heretofore
provided by the City. All moneys remaining after paying or providing for the items set forth in
the resolution establishing the Operation and Maintenance Account shall constitute and are
referred to as "net revenues" until the Bonds and the Outstanding Bonds have been paid. There
shall be maintained in the Fund the following separate accounts to which shall be credited and
debited all net revenues of the System as hereinafter set forth. The City Finance Director and all
officials and employees concerned therewith shall establish and maintain financial records of the
receipts and disbursements of the System in accordance with this resolution. In such records
there shall be established and maintained the Escrow Account and the Debt Service Account, for
the purposes as follows:
(a) Escrow Account. The Escrow Account shall be maintained as an escrow account
with U.S. Bank National Association (the "Escrow Agent") in St. Paul, Minnesota, which is a
suitable financial institution within or without the State whose deposits are insured by the
Federal Deposit Insurance Corporation and whose combined capital and surplus is not less than
$500,000. A11proceeds of the sale of the Bonds shall be received by the Escrow Agent and
applied to fund the Escrow Account or to pay costs of issuing the Bonds. Proceeds of the Bonds
not used to pay costs of issuance are hereby irrevocably pledged and appropriated to the Escrow
Account, together with all investment earnings thereon. The Escrow Account shall be invested
in securities maturing or callable at the option ofthe holder on such dates and bearing interest at
such rates as shall be required to provide sufficient funds, together with any cash or other funds
retained in the Escrow Account, (i) to pay when due the interest to accrue on the Bonds to and
including February 1, 2006; and (ii) to pay when called for redemption on February 1, 2006, the
principal amount of the Prior Bonds. The Escrow Account shall be irrevocable appropriated to
the payment of (i) all interest on the Bonds to and including February 1, 2006; and (ii) the
principal of the Prior Bonds due by reason of their call for redemption on February 1, 2006. The
moneys in the Escrow Account shall be used solely for the purposes herein set forth and for no
other purpose, except that any surplus in the Escrow Account may be remitted to the City, all in
accordance with an agreement (the "Escrow Agreement") by and between the City and Escrow
Agent, a form of which agreement is on file in the office of the City Administrator. Any moneys
remitted to the City upon termination of the Escrow Agreement shall be deposited in the Debt
Service Account.
(b) Debt Service Account. To the Debt Service Account there is hereby pledged and
irrevocably appropriated and there shall be credited: (i) after the crossover date, the net revenues
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of the System not otherwise pledged and applied to the payment of other obligations of the City,
in an amount, together with other funds which may herein or hereafter from time to time be
irrevocably appropriated to the account sufficient to meet the requirements of Minnesota
Statutes, Section 475.61 for the payment of the principal and interest of the Bonds; (ii) any
collections of all taxes which may hereafter be levied in the event that the net revenues of the
System herein pledged to the payment of the principal and interest on the Bonds are insufficient
therefor; (iii) any balance remitted to the City upon termination of the Escrow Agreement; (iv)
any funds remaining after February 1, 2006 in the Debt Service Account of the $2,655,000
General Obligation Sewer Revenue Bonds, Series 1996A Fund established by the Prior
Resolution for the Prior Bonds after the same have been paid and discharged; (v) all investment
earnings on funds in the Debt Service Account; and (vi) any and all other moneys which are
properly available and are appropriated by the governing body of the City to the Debt Service
Account. The amount of any surplus remaining in the Debt Service Account when the Bonds
and interest thereon are paid shall be used consistent with the Minnesota Statutes, Section
475.61, Subdivision 4.
The moneys in the Debt Service Account shall be used solely to pay the principal of and
interest on the Bonds or any other bonds hereafter issued and made payable from the Fund. 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 (i) for a reasonable temporary period until such proceeds are needed
for the purpose for which the Bonds were issued, and (ii) in addition to the above, in an amount
not greater than the lesser offive percent of the proceeds of the Bonds or $100,000. To this
effect, any proceeds of the Bonds and any sums from time to time held in the Fund (or any other
City account which will be used to pay principal and interest to become due on the Bonds) in
excess of amounts which under the applicable federal arbitrage regulations may be invested
without regard as to yield shall not be invested in excess of the applicable yield restrictions
imposed by the arbitrage regulations on such investments after taking into account any
applicable "temporary periods" or "minor portion" made available under the federal arbitrage
regulations. In addition, the proceeds of the Bonds and 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").
16. Covenants Relating to the Bonds.
(a) Sufficiency of Net Revenues: Coverage Test. It is hereby found, determined and
declared that the net revenues of the System are sufficient in amount to pay when due the
principal of and interest on the Bonds and the Outstanding Bonds and a sum at least five percent
in excess thereof, and the net revenues of the System are hereby pledged on a parity with the
Outstanding Bonds for the payment of the Bonds and shall be applied for that purpose, but solely
to the extent required to meet the principal and interest requirements of the Bonds as the same
become due.
As used herein the term net revenues means the gross revenues derived by the City from
the operation of the System, including all charges for service, use, availability, and connection to
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the System, and all monies received from the sale of any facilities or equipment of the System or
any by-products thereof, less all normal, reasonable, or current costs of owning, operating, and
maintaining the System.
Nothing contained herein shall be deemed to preclude the City from making further
pledges and appropriations of the net revenues of the System for the payment of other or
additional obligations of the City, provided that it has first been determined by the City Council
that the estimated net revenues of the System will be sufficient, in addition to all other sources,
for the payment of the Bonds and such additional obligations and any such pledge and
appropriation of the net revenues may be made superior or subordinate to, or on a parity with the
pledge and appropriation herein.
(b) Pledge to Produce Revenues. The City hereby covenants and agrees with the
Holders of the Bonds that it will impose and collect charges for the service, use, availability and
connection to the System at the times and in the amounts required to produce net revenues
adequate to pay all principal and interest when due on the Bonds and the Outstanding Bonds.
(c) Excess Net Revenues. Net revenues of the System in excess of those required for
the foregoing may be used for any proper purpose.
(d) General Obligation Pledge. For the prompt and full payment of the principal of
and interest on the Bonds as the same respectively become due, the full faith, credit and taxing
powers of the City shall be and are hereby irrevocably pledged. lfthe net revenues of the
System appropriated and pledged to the payment of the principal and interest on the Bonds,
together with other funds irrevocably appropriated to the Escrow Account or the Debt Service
Account, shall at any time be insufficient to pay the principal and interest when due, the City
covenants and agrees to levy, without limitation as to rate or amount an ad valorem tax upon all
taxable property in the City sufficient to pay such principal and interest as it becomes due. lfthe
balance in the Escrow Account or Debt Service Account is ever insufficient to pay all principal
and interest then due on the Bonds payable therefrom, the deficiency shall be promptly paid out
of any other accounts of the City which are available for such purpose, and such other funds may
be reimbursed without interest from the Escrow Account or Debt Service Account when a
sufficient balance is available therein.
17. Refunding Requirements.
(a) On or prior to the delivery of the Bonds the Mayor and City Administrator shall,
and are hereby authorized and directed to, execute on behalf of the City the Escrow Agreement.
The Escrow Agreement is hereby approved and adopted and made a part of this resolution and
the City covenants that it will promptly enforce all provisions thereof in the event of default
thereunder by the Escrow Agent.
(b) Securities purchased from moneys in the Escrow Account shall be limited to
securities set forth in Minnesota Statutes, Section 475.67, Subdivision 8, and any amendments or
supplements thereto. Securities purchased from the Escrow Account shall be purchased
simultaneously with the delivery of the Bonds. The City has investigated the facts and hereby
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finds and determines that the Escrow Agent is a suitable financial institution to act as escrow
agent.
(c) The Prior Bonds which mature on or after February 1, 2007 shall be redeemed
and prepaid on February 1,2006, in accordance with the terms and conditions set forth in the
Notice of Call for Redemption substantially in the form attached to the Escrow Agreement,
which terms and conditions are hereby approved and incorporated herein by reference. The
Notice of Call for Redemption shall be given pursuant to the Escrow Agreement. Failure to give
notice by mail to any registered owner, or any defect therein, will not affect the validity of any
proceedings for the redemption of the Prior Bonds.
(d) The Purchaser, as agent for the City, is hereby authorized and directed to purchase
on behalf of the City and in its name the appropriate United States Treasury Securities, State and
Local Government Series, and/or open market securities as provided in paragraph (c), from the
proceeds of the Bonds and, to the extent necessary, other available funds, all in accordance with
the provisions of this resolution and the Escrow Agreement and to execute all such documents
(including the appropriate subscription form) required to effect such purchase in accordance with
the applicable U.S. Treasury Regulations.
( e) Until retirement of the Prior Bonds, all provisions theretofore made for the
security thereof shall be observed by the City and all of its officers and agents.
18. Defeasance. When all Bonds have been discharged as provided in this paragraph,
all pledges, covenants and other rights granted by this resolution to the registered Holders of the
Bonds shall, to the extent permitted by law, cease. The City may discharge its obligations with
respect to any Bonds which are due on any date by irrevocably depositing with the Bond
Registrar on or before that date a sum sufficient for the payment thereof in full; or if any Bond
should not be paid when due, it may nevertheless be discharged by depositing with the Bond
Registrar a sum sufficient for the payment thereof in full with interest accrued to the date of such
deposit. The City may also discharge its obligations with respect to any prepayable Bonds called
for redemption on any date when they are prepayable according to their terms, by depositing
with the Bond Registrar on or before that date a sum sufficient for the payment thereof in full,
provided that notice of redemption thereof has been duly given. The City may also at any time
discharge its obligations with respect to any Bonds, subject to the provisions oflaw now or
hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a
suitable banking institution qualified by law as an escrow agent for this purpose, cash or
securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest
payable at such times and at such rates and maturing on such dates as shall be required, without
regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity.
19. Certificates of Registration. A certified copy of this resolution is hereby directed
to be filed with the County Auditor of Sherburne County, Minnesota, together with such other
information as the County Auditor shall require, and there shall be obtained from the County
Auditor a certificate that the Bonds have been entered in the County Auditor's Bond Register.
20. 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
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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.
21. Negative Covenant as to Use of Proceeds and Proiect. The City hereby covenants
not to use the proceeds of the Bonds or to use the Project, or to cause or permit them to be used,
or to enter into any deferred payment arrangements for the cost of the Project, in such a manner
as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141
through 150 of the Code.
22. 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
( a) requirements relating to temporary periods for investments, (b) limitations on amounts
invested at a yield greater than the yield on the Bonds, and (c) 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 exception to the federal arbitrage rebate requirements
for governmental units issuing $5,000,000 or less of bonds, the City hereby finds, determines and
declares:
(a) the Bonds are issued by a governmental unit with general taxing powers;
(b) no Bond is a private activity bond;
(c) ninety- five percent 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
(d) the aggregate face amount of all tax-exempt bonds (other than private
activity bonds) issued by the City (and all subordinate entities thereof, and all entities
treated as one issuer with the City) during the calendar year in which the Bonds are
issued is not reasonably expected to exceed $5,000,000, all within the meaning of Section
148(f)(4)(D) of the Code.
Furthermore:
(e) each of the Prior Bonds was issued as part of an issue which was treated as
meeting the rebate requirements by reason of the exception for governmental units
issuing $5,000,000 or less of bonds;
(f) the average maturity of the Bonds does not exceed the remaining average
maturity of the Prior Bonds; and
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(g) no maturity of the Bonds has a maturity date which is later than the date
which is thirty years after the dates the Prior Bonds were issued.
23. Designation ofOualified Tax-Exempt Obligations. In order to qualify the Bonds
as "qualified tax-exempt obligations" within the meaning of Section 265(b)(3) of the Code, the
City hereby makes the following factual statements and representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as defined in Section 141 of the
Code;
(c) the City hereby designates the Bonds as "qualified tax -exempt
obligations" for purposes of Section 265(b)(3) of the Code;
(d) 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 treated as one issuer with the
City, and all subordinate entities whose obligations are treated as issued by the City)
during this calendar year 2005 will not exceed $10,000,000; and
(e) not more than $10,000,000 of obligations issued by the City during this
calendar year 2005 have been designated for purposes of Section 265(b )(3) of the Code;
(f) the aggregate face amount of the Bonds does not exceed $10,000,000; and
(g) the Bonds are issued to refimd, and not to "advance refimd" the Prior
Bonds within the meaning of Section 149( d)( 5) of the Code, and shall not be taken into
account under the $10,000,000 issuance limit to the extent the Bonds do not exceed the
outstanding amount of the Prior Bonds.
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.
24. Pavment of Issuance Expenses. The City authorizes the Purchaser to forward the
amount of Bond proceeds allocable to the payment of issuance expenses to U. S. Trust Company
N.A., Greenwich, Connecticut on the closing date for further distribution as directed by the
City's financial advisor, Ehlers.
25. 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.
26. Headings. Headings in this resolution are included for convenience of reference
only and are not a part hereof, and shall not limit or define the meaning of any provision hereof.
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The motion for the adoption of the foregoing resolution was dilly seconded by member
Farber and, after a full discussion thereof and upon a vote being taken thereon, the following
voted in favor thereof: Klinzing, Dietz, Gumphrey, Farber and Motin;
and the following voted against the same: none.
Whereupon the resolution was declared duly passed and adopted.
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BID TABULATION
.
$1,695,000* General Obligation Sewer Revenue Refunding Bonds, Series 2005B
CITY OF ELK RIVER, MINNESOTA
SALE: May 16, 2005
AWARD: PIPER JAFFRAY & CO.
RATING: Moody's Investors Service, Inc. "A 1 II
NAME OF BIDDER
MATURITY RATE REOFFERING
(February 1) YIELD
PRICE
881: 4.35%
NET TRUE
INTEREST INTEREST
COST RATE
PIPERJAFFRAY & CO.
Minneapolis, Minnesota
$1,698,206.90 $394,117.02 3.5966%
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
.s FARGO BROKERAGE SERVICES, LLC
eapolis, Minnesota
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
3.000%
3.000%
3.250%
3.250%
3.375%
3.500%
3.625%
3.750%
3.875%
4.000%
2.800%
2.900%
3.000%
3.100%
3.250%
3.400%
3.550%
3.650%
3.750%
3.850%
2.800%
2.900%
3.000%
3.100%
3.250%
3.400%
3.500%
3.600%
3.700%
3.800%
$1,684,660.50 $393,899.21 3.6132%
.Subsequent to bid opening the issue size was decreased to $1,660,000 with the 2007 maturity decreased $5,000 to $140,000, the 2009
maturity decreased $5,000 to $150,000, the 2011 maturity decreased $5,000 to $160,000, the 2013 maturity decreased $5,000 to $175,000,
the 2014 maturity decreased $5,000 to $180,000, the 2015 maturity decreased $5,000 to $185,000, and the 2016 maturity decreased $5,000
to $195,000 in maturity value.
Adjusted Price - $1,663,108.08
Adjusted Net Interest Cost - $385,437.81
Adjusted TIC - 3.5956%
.
EHLERS
8
& ASSOCIATES INC
ifJ5-\
3060 Centre Pointe Drive, Roseville, MN 55113
651.697.8500 fax 651.697.8555 www.ehlers-inc.com
Offices in Rosevi/le, MN Brookfield, WI and Lisle, IL
.
.
.
STATE OF MINNESOTA
COUNTY OF SHERBURNE
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 compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that the same is a full, true and complete
transcript of the minutes of a meeting of the City Council, duly called and held on the date therein
indicated, insofar as such minutes relate to awarding the sale of $1,660,000 General Obligation
Sewer Refunding Bonds, Series 200SB.
WITNESS my hand on May 16, 2005.
4 /7 ~1 {
,. I/.;?? /j~{-
u:>1<.-/ , /
22
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