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83-103 - 11-15 Sale $2,000,000 General Obligation Storm Sewer Improvement Bonds of 1983Resolution 83-103 November 15, 1983 Member Johnson introduced the following resolution and moved its adoption: RESOLUTION RELATING TO $2,000,000 GENERAL OBLIGATION STORM SEWER IMPROVEMENT BONDS OF 1983; AUTHORIZING THE ISSUANCE, AWARDING THE SALE, FIXING THE FORM AND DETAILS, AND PROVIDING FOR THE EXECUTION AND DELIVERY THEREOF AND SECURITY THEREFOR BE IT RESOLVED by the City Council (the Council) of the City of Golden Valley, Minnesota (the City), as follows: Section 1. Authorization and Sale. 1.01. Authorization. The Council has heretofore created a Storm Sewer Improvement District for the City of Golden Valley -1979 (the District) and has adopted a capital improvement program (the Program) and established a Storm Sewer Reserve Fund (the Reserve Fund) for the District, all pursuant to Minnesota Statutes, Section 444.17 to 444.21 and Laws 1979, Chapter 303, Article X. The estimated total cost of the Program is $3,500,000. In order to finance a portion of the costs of the Program, this Council has determined it to be necessary and desirable for the City to issue and sell its General Obligation Storm Sewer Improvement Bonds in the aggregate principal amount of $2,000,000 (the Bonds); $25,000 of such amount representing interest as provided in Minnesota Statutes, Section 475.56. 1.02. Sale. Notice of sale of the Bonds has been duly published and the Council has publicly received, opened and considered all sealed bids presented in conformity with the Notice. The most favorable of such bids is ascertained to be that of Piper, Jaffray, & Hopwood, Inc. of Minneapolis, Minnesota, and associates, to purchase the Bonds at a price of $1,975,026.45 plus interest accrued on all Bonds to the day of delivery and payment. It is hereby found and determined that said bid is reasonable and advantageous to the City, and the sale of the Bonds is hereby awarded to said bidder. 1.03. Contract for Sale. The Mayor and Finance Director -Clerk are hereby authorized and directed on behalf of the City to execute a contract for the sale of the Bonds in accordance with the terms of said bid. The good faith check of the successful bidder shall be retained by the Finance Director -Clerk until the Bonds have been delivered and the purchase price paid. 1.04. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed precedent to and in the valid issuance of the Bonds having been done, existing, having happened and having been performed, it is now necessary for this Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. Section 2. Form of Bonds. The Bonds shall be prepared in substantially the following form: (Face of the Bonds) UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN CITY OF GOLDEN VALLEY Resolution 83-103 - Continued November 15, 1983 GENERAL OBLIGATION STORM SEWER IMPROVEMENT BOND OF 1983 Date of Rate Maturity Original Issue CUSIP December 1, 1983 No. $ KNOW ALL MEN BY THESE PRESENTS that the City of Golden Valley, Hennepin County, Minnesota (the City), acknowledges itself to be indebted and, for value received, hereby promises to pay to , or registered assigns, the principal sum of DOLLARS, on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, payable on February 1 and August 1 in each year, commencing August 1, 1984, to the person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of the immediately preceding month, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful money of the United States of America by check or draft of , , in , as Bond Registrar, Transfer Agent and Paying Agent the Bond Registrar), or its successor designated under the Resolution described on the reverse hereof. 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 hereon. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under the Resolution until the Certificate of Authentication hereon shall have been executed by the Bond Registrar by manual signature of one of its authorized representatives. IN WITNESS WHEREOF, the City of Golden Valley, Hennepin County, State of Minnesota, by its City Council, has caused this Bond to be executed by the facsimile signatures of the Mayor and the City Manager and by a printed facsimile of the official seal of the City and has caused this Bond to be dated as of the date set forth below. Dated: (Facsimile Signature) (Facsimile Signature) City Manager Mayor (Facsimile Seal) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. By Authorized Representative Resolution 83-103 - Continued (Reverse of the Bonds) November 15, 1983 This Bond is one of an issue in the aggregate principal amount of $2,000,000 (the Bonds), all of like date and tenor except as to serial number, denomination, interest rate, maturity date and redemption privilege, issued pursuant to a resolution adopted by the City Council on November 15, 1983 (the Resolution) to finance the costs of a Capital Improvement Program (the Program) within Storm Sewer Improvement District for the City of Golden Valley -1979 (the District), and is issued pursuant to and in full conformity with the provisions of the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 475 and Section 444.17 to 444.21 and Laws 1979, Chapter 303. This Bond is payable primarily from the Storm Sewer Reserve Fund (the Reserve Fund) of the District, but the City is required by law to pay maturing principal hereof and interest hereon from any available funds of the City if moneys on hand in the Reserve Fund are insufficient therefor. The Bonds are issuable only as fully registered bonds, in denominations of $5,000 or any multiple thereof, of single maturities. Bonds maturing in the years 1986 through 1993 are payable on their respective stated maturity dates without option of prior payment, but Bonds having stated maturity dates in the years 1994 through 2003 are each subject to redemption and prepayment, at the option of the City and in inverse order of maturities and by lot, assigned in proportion to their principal amount, within any maturity, on February 1, 1993 and on any interest payment date thereafter, at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. At least thirty days prior to the date set for redemption of any Bond, notice of the call for redemption will be published in a daily or weekly periodical, published in a Minnesota city of the first class or its metropolitan area, which circulates throughout the state and furnishes financial news as part of its service, and will be mailed to the Bond Registrar and to the registered owner of each Bond to be redeemed at his address appearing in the Bond Register, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the registered 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 Bond Registrar, by the registered owner hereof in person or by his attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner or his 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 Bond Registrar may deem this Bond is registered as the absolute owner or not, for the purpose of receiving payment neither the City nor the Bond Registrar shall contrary. and treat the person in whose name hereof, whether this Bond is overdue and for all other purposes, and be affected by any notice to the Resolution 83-103 - Continued November 15, 1983 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 precedent to and in the issuance of this Bond in order to make it a valid and binding general obligation of the City according to its terms have been done, do exist, have happened and have been performed in regular and due form as so required; that prior to the issuance hereof the City has agreed to levy an annual ad valorem tax not exceeding one mill upon all taxable property within the District collectible in the years and amounts required to produce sums not less than five percent in excess of the principal of and interest on the Bonds as such principal and interest respectively become due, and has appropriated the same to the Reserve Fund in the manner specified in Laws 1979, Chapter 303; that, in the event of any accumulated or anticipated deficiency in the Reserve Fund, additional ad valorem taxes are required by law to be levied upon all taxable property in the City without limitation as to rate or amount; and that the issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation. 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 the applicable laws or regulations: TEN COM -- as tenants UNIF GIFT MIN ACT...Custodian....... in common (Cust) (Minor TEN ENT -- as tenants by the entireties under Uniform Gifts to JT TEN -- as joint tenants Minors with right of survivorship and Act ....................... not as tenants in (State) c ommo n Additional abbreviations may also be used. ASSIGNMENT FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and hereby irrevocably constitutes and appoints attorney to transfer the within Bond on the books kept for registration thereof, with full power of substitution in the premises. Dated: PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: NOTICE: The 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 whatsoever. Resolution 83-103 - Continued November 15, 1983 Section 3. Bond Terms, Execution and Delivery. 3.01. Maturities, Interest Rates, Denominations, Payment. The City shall forthwith issue and deliver the Bonds, which shall be denominated "General Obligation Storm Sewer Improvement Bonds of 1983" and shall be payable primarily from the Reserve Fund created by Ordinance No. 601 of the City. The Bonds shall be issuable in the denomination of $5,000 each or any integral multiple thereof, shall mature on February 1 in the years and amounts set forth below, and Bonds maturing in such years and amounts shall bear interest from date of issue until paid or duly called for redemption at the rates per annum shown opposite such years and amounts as follows: Year Amount Rate Year Amount Rate 1986 $50,000 7.60%. 1995 $110,000 8.50% 1987 60,000 7.80'% 1996 110,000 8.70% 1988 65,000 7.80% 1997 120,000 8.90% 1989 75,000 7.90% 1998 130,000 9.00% 1990 75,000 7.90% 1999 140,000 9.10% 1991 80,000 7.90% 2000 150,000 9.20% 1992 85,000 7.90% 2001 175,000 9.20% 1993 95,000 8.10% 2002 180,000 9.25% 1994 100,000 8.30% 2003 200,000 9.25% The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each bond, the principal amount thereof, shall be payable by check or draft issued by the Registrar described herein. 3.02. Dates; Interest Payment Dates. Each Bond shall be dated as of the last interest payment date preceding the date of authentication to which interest on the 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 .lade 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, 1984, in which case such Bond shall be dated as of December 1, 1983. The i,-iterest on the Bonds shall be payable on February 1 and August 1 in each year, commencing August 1, 1984, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not s4jch day is a business day. 3.03. Registration. The City shall appoint, and shall maintain, a bond registrar, transfer agent and paying agent (the Registrar). The effect of registration and the rights and duties of the City and the Registrar with respect thereto shall be as follows: (a) Register. 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 Bonds and the registration of transfers and exchanges of Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed Dy the registered owner 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. Resolution 83-103 - Continued November 15, 1983 (c) Exchange of Bonds. Whenever any Bond is 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 duly authorized 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. (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 legally authorized. The Registrar shall incur no liability for its 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 and 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 of the City upon such Bond to the extent of the sum or sums so paid. (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 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 lost, stolen or destroyed, 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 lost, stolen or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case of a Bond lost, stolen or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, 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, lost, stolen, or destroyed 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. 3.04. Appointment of Initial Registrar. The City hereby appoints Norwest Bank, Minneapolis, MN N.A. , as the initial Registrar. The Mayor and the Finance Director - Clerk are authorized to execute and deliver, on behalf of the City, a contract with Norwest Bank, Minneapolis, MN N.A., as 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. Resolution 83-103 - Continued November 15, 1983 The City reserves the right to remove any Registrar upon thirty (30) days' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall deliver the bond register to the successor Registrar. On or before each principal or interest due date, without further order of this Council, the Finance Director -Clerk shall transmit to the Registrar, from the 1983 Storm Sewer Reserve Fund described in Section 4.02 hereof, moneys sufficient for the payment of all principal and interest then due. 3.05. Redemption. Bonds maturing in the years 1986 through 1993 shall not be subject to redemption prior to maturity, but Bonds maturing in the years 1994 through 2003 shall each be subject to redemption and prepayment, at the option of the City, in inverse order of maturities and, within any maturity, in $5,000 principal amounts selected by the Registrar by lot, on February 1, 1993 and on any interest payment date thereafter at a price equal to the principal amount thereof to be redeemed plus interest accrued to the date of redemption. At least thirty days prior to the date set for redemption of any Bond, the Finance Director - Clerk shall cause notice of the call for redemption to be published in a daily or weekly periodical published in a Minnesota city of the first class or its metropolitan area, which circulates throughout the state and furnishes financial news as part of its service, and to be mailed to the Registrar and to the registered owner of each Bond to be redeemed, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any Bond not affected by such defect or failure. 3.06. Preparation and Delivery. The Bonds shall be prepared under the direction of the City Finance Director -Clerk and shall be executed on behalf of the City by the signatures of the Mayor and the City Manager, and shall be sealed with the official corporate seal of the City; provided that said signatures and the corporate seal may be printed, engraved, or lithographed facsimiles thereof. 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 such 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 or benefit under this resolution unless and until a 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 executed and authenticated, they shall be delivered by the Finance Director -Clerk to the purchaser thereof upon payment of the purchase price in accordance with the contract of sale heretofore made and executed, and the purchaser shall not be obligated to see to the application of the purchase price. Section 4. Security Provisions. 4.01. Storm Sewer Capital Improvement Program Construction Fund. There is hereby created a special fund to be designated as the 1983 Storm Sewer Capital Improvement Program Construction Fund" (the Construction Fund), to be held and administered by the Finance Director -Clerk separate and apart from all other funds of the City. The City appropriates to the Construction Fund the proceeds of the sale of the Bonds, except any accrued interest received from the purchaser in the sale of the Bonds. The Construction Fund shall be used solely to defray expenses of the Program. Upon completion and payment of all costs of the Program, any balance of the proceeds of Bonds remaining in the Construction Fund shall be credited and paid to the Storm Sewer Reserve Fund. Resolution 83-103 - Continued November 15, 1983 4.02. Storm Sewer Reserve Fund. The Reserve Fund was created for the District pursuant to Ordinance No. 601 of the City. So long as any of the Bonds are outstanding and any principal thereof or interest thereon unpaid, the Finance Director -Clerk shall maintain the Reserve Fund to be used for no purpose other than (i) the payment of the principal of and interest on the Bonds and on such other storm sewer improvement bonds of the City as have been or may be directed to be paid therefrom and (ii) the payment of costs of improvement projects now or hereafter identified in the Program. The City irrevocably appropriates to the Reserve Fund the collections of any taxes levied in accordance with this resolution and such other moneys as shall be received and appropriated to the Reserve Fund from time to time. If the balance in the Reserve Fund is at any time insufficient to pay all interest and principal then due on all bonds payable therefrom, the payment shall be made from any fund of the City which is available for that purpose, subject to reimbursement from the Reserve Fund when the balance therein is sufficient. The City hereby covenants and agrees, for the benefit of the holders from time to time of the Bonds, and any other bonds issued and made payable from the Reserve Fund, that, so long as any Bonds are outstanding, the City will not use any moneys on hand in the Reserve Fund for the payment of costs of the Program, other than the payment of principal of or interest on bonds payable from the Reserve Fund, unless the balance on hand in the Reserve Fund after deducting the amount proposed to be withdrawn to pay Program costs and adding the collection of any annual taxes levied pursuant to Ordinance No. 601 hereof then in the process of collection, will be not less than 5% in excess of amounts required to pay the principal of and interest due or to become due within the immediately succeeding twelve months on all bonds payable from the Reserve Fund. 4.03. Additional Bonds. The City reserves the right to issue additional bonds payable from the Reserve Fund as may be required to finance costs of the Program not financed hereby; provided that the City Council shall, prior to the delivery of such additional bonds, levy or agree to levy by resolution sufficient additional ad valorem taxes which, together with other moneys or revenues pledged for the payment of said additional obligations, will produce revenues at least five percent in excess of the amount needed to pay when due the principal and interest on all bonds payable from the Revenue Fund. The additional ad valorem taxes, and moneys or revenues so pledged, levied or agreed to be levied shall be irrevocably appropriated to the Reserve Fund in the manner provided by Minnesota Statutes, Section 475.61. 4.04. One Hill Levy. Pursuant to the authority granted by Laws 1979, Chapter 303, and Ordinance No. 601, the City Council hereby agrees to levy annually, so long as any bonds are outstanding and payable from the Reserve Fund, an ad valorem tax in an amount equal to one mill on all the taxable property in the District. Said tax is irrevocably appropriated to the Reserve Fund. Said taxes shall be irrepealable as long as any of the Bonds herein authorized are outstanding and unpaid; provided that the City reserves the right and power to reduce the levies in the manner and to the extent provided in Minnesota Statutes, Section 475.61. Resolution 83-103 - Continued November 15, 1983 4.05. Full Faith and Credit Pledged. The full faith and credit of the City are irrevocably pledged for the prompt and full payment of the principal of and interest on the Bonds, and the Bonds shall be payable from the Reserve Fund in accordance with the provisions and covenants contained in this resolution. It is estimated that the ad valorem taxes levied herein and other moneys legally available to the City for such purposes will be collected in amounts not less than five percent in excess of the annual principal and interest requirements of the Bonds. If the money on hand in the Reserve Fund should at any time be insufficient to pay all principal and interest due on all bonds payable therefrom, such amounts shall be paid from any other fund of the City and such other fund shall be reimbursed therefor when sufficient money is available in the Reserve Fund. If on October 1 in any year the sum of the balance in the Reserve Fund plus the amount of ad valorem taxes theretofor levied and collectible through the end of the following calendar year is not sufficient to pay when due all principal and interest to become due on all bonds payable therefrom in said following calendar year, or the Reserve Fund has incurred a deficiency in the manner provided in this Section 4.05, an additional direct, irrepealable, ad valorem tax shall be levied on all taxable property within the corporate limits of the City for the purpose of restoring such accumulated or anticipated deficiency in accordance with the provisions of this resolution. Section 5. Defeasance. When all of the Bonds have been discharged as provided in this Section 5, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City may discharge its obligations with respect to any Bonds which are due on any date by irrevocably depositing with the 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 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 Registrar on or before that date a sum sufficient for the payment thereof in full, provided that notice of the redemption thereof has been duly given as provided in Section 3.05. The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are general obligations of the United States or securities of United States agencies which are authorized by law to be so deposited, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without reinvestment, to pay all principal and interest to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. Section 6. County Auditor Registration, Certification of Proceedings, Investment of honeys and Arbitrage. 6.01. County Auditor Registration. The City Clerk is hereby authorized and directed to file a certified copy of this resolution with the Director of Finance and Records of Hennepin County, together with such other information as the County Auditor shall require, and to obtain from said County Auditor a certificate that the Bonds have been entered on his bond register and the taxes described in Section 4.04 hereof have been levied as required by law. Resolution 83-103 - Continued November 15, 1983 6.02. Certification of Proceedings. The officers of the City and the Director of Finance and Records of Hennepin County are hereby authorized and directed to prepare and furnish to the purchaser of the Bonds and to Dorsey & Whitney, Bond Counsel, certified copies of all proceedings and records of the City, and such other affidavits, certificates and information as may be 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. 6.03. Covenant. The City covenants and agrees with the holders from time to time of the Bonds 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 on the Bonds to become subject to taxation under the Internal Revenue Code of 1954, as amended (the Code), and the Treasury Regulations promulgated thereunder (the Regulations), and covenants to take any and all actions within its powers to ensure that the interest on the Bonds will not become subject to taxation under the Code and the Regulations. 6.04. Investment of Moneys on Deposit in Reserve Fund. From and after February 1, 993, the City Clerk shall ascertain month y the amount on deposit in the Reserve Fund. If the amount on deposit therein ever exceeds by more than $300,000 the aggregate amount of principal and interest due and payable from the Reserve Fund within the next succeeding 12 months, such excess shall be used to prepay and redeem Bonds or be invested at a yield less than or equal to the yield on the Bonds, based upon their amounts, maturities and interest rates on their date of issue, computed by the actuarial method. If any additional stone sewer improvement bonds are ever issued and made payable from the Reserve Fund pursuant to Section 4.03 hereof, the Dollar amount in the preceeding sentence shall be changed to equal 15 percent of the aggregate original principal amount of all bonds, including the Bonds which are then outstanding and payable therefrom. The City reserves the right to amend the provisions of this Section 6.04 at any time, whether prior to or after the delivery of the bonds, if and to the extent that this Council determines that the provisions of this Section 6.04 are not necessary in order to ensure that the Bonds are not "arbitrage bonds" within the meaning of Section 103(c) of the Code and Regulations. 6.05. Arbitrage Certification. The Mayor and Finance Director -Clerk, being the 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 purchase thereof a certificate in accordance with the provisions of Section 103(c) of the Code, and Sections 1.103-13, 1.103-14 and 1.103-15 of the Regulations, stating the facts, estimates and circumstances in existence on the date of issue and delivery of the Bonds which make it reasonable to expect that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds within the meaning of the Code and Regulations. Resolution 83-103 - Continued ATTEST: John LHu4rph, ty Clerk November 15, 1983 `Rosemary Thorsen, or The motion for the adoption of the foregoing resolution was seconded by Member Stockman and upon a vote being taken thereon, the following voted in favor thereof: Anderson, Johnson, Mitchell, Stockman and Thorsen, and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted, signed by the Mayor and her signature attested by the City Clerk.