Loading...
85-076 - 08-20 Issue $6,460,000 General Obligation Bonds Series 1985Resolution 85-76 August 20, 1985 Member Stockman introduced the following resolution and moved its adoption: RESOLUTION RELATING TO $6,460,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1985; 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 of the City of Golden Valley, Minnesota (the City), as follows: Section 1. Authorization and Sale. 1.01. Sale of Bonds. By resolution adopted August 6, 1985, this Council called for the public sale on this date of $6,460,000 General Obligation Improvement Bonds, Series 1985 of the City (the Bonds) to finance the cost of certain local improvements (the Improvements). Notice of the sale was duly published as required by Minnesota Statutes, Section 475.60. Pursuant to the Notice of Sale and the Terms and Conditions of Sale, two sealed bids for the purchase of the Bonds were received at or before the time specified for receipt of bids. The bids have been opened and publicly read and considered, and the purchase price, interest rates and net interest cost under the terms of each bid have been determined. The most favorable proposal received is that of Northwest Investment Services, of Minneapolis, Minnesota, to purchase the Bonds at a price of $6,337,260.00, the Bonds to bear interest at the rates set forth in Section 3.01 hereof. The proposal is hereby accepted, and the Mayor and the City Clerk are hereby authorized and directed to execute a contract on the part of the City for the sale of the Bonds with Northwest Investment Services, of Minneapolis, Minnesota (the Purchaser). The good faith checks of the unsuccessful bidders shall be returned forthwith. 1.02. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota and the home rule charter of the City 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 GENERAL OBLIGATION IMPROVEMENT BOND SERIES 1985 Date of Rate Maturity Original Issue CUSIP September 1, 1985 Resolution 85-76 August 20, 1985 Member Stockman introduced the following resolution and moved its adoption: RESOLUTION RELATING TO $6,460,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 1985; 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 of the City of Golden Valley, Minnesota (the City), as follows: Section 1. Authorization and Sale. 1.01. Sale of Bonds. By resolution adopted August 6, 1985, this Council called for the public sale on this date of $6,460,000 General Obligation Improvement Bonds, Series 1985 of the City (the Bonds) to finance the cost of certain local improvements (the Improvements). Notice of the sale was duly published as required by Minnesota Statutes, Section 475.60. Pursuant to the Notice of Sale and the Terms and Conditions of Sale, two sealed bids for the purchase of the Bonds were received at or before the time specified for receipt of bids. The bids have been opened and publicly read and considered, and the purchase price, interest rates and net interest cost under the terms of each bid have been determined. The most favorable proposal received is that of Northwest Investment Services, of Minneapolis, Minnesota, to purchase the Bonds at a price of $6,337,260.00, the Bonds to bear interest at the rates set forth in Section 3.01 hereof. The proposal is hereby accepted, and the Mayor and the City Clerk are hereby authorized and directed to execute a contract on the part of the City for the sale of the Bonds with Northwest Investment Services, of Minneapolis, Minnesota (the Purchaser). The good faith checks of the unsuccessful bidders shall be returned forthwith. 1.02. Issuance of Bonds. All acts, conditions and things which are required by the Constitution and laws of the State of Minnesota and the home rule charter of the City 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 GENERAL OBLIGATION IMPROVEMENT BOND SERIES 1985 Date of Rate Maturity Original Issue CUSIP September 1, 1985 Resolution 85-76 - Continued August 20, 1985 REGISTERED OWNER: SEE REVERSE FOR CERTAIN PRINCIPAL AMOUNT: DEFINITIONS NO. $ THE CITY OF GOLDEN VALLEY, Hennepin County, Minnesota (the City), acknowledges itself to be indebted and, for value received, hereby promises to pay to the registered owner identified above, or registered assigns, the principal sum specified above on the maturity date specified above, with interest thereon from the date hereof at the annual rate specified above, all subject to the provisions referred to herein with respect to the redemption of the principal of this Bond before maturity. Interest hereon is payable on February 1 and August 1 in each year, commencing August 1, 1986, 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. The interest hereon and, upon presentation and surrender hereof at maturity at the principal office of the Bond Registrar hereinafter designated, 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 herein. For the prompt and full payment of such principal and interest as the same respectively becomes due, the full faith, credit and taxing powers of the City have been and are hereby irrevocably pledged. 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 the 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 Clerk and by a printed facsimile of the official seal of the City. Date of Authentication: (Facsimile Signature) (Facsimile Signature) City Clerk Mayor (Facsimile Seal) CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within. as Bond Registrar By Authorized Representative Resolution 85-76 - Continued [Reverse of the Bonds] August 20, 1985 This Bond is one of an issue in the aggregate principal amount of $6,460,00.0 (the Bonds), issue pursuant to a resolution adopted by the City Council on August 20, 1985 (the Resolution) to finance the costs of construction of various; improvements (the Improvements) heretofore duly ordered to be made within the City in accordance with the provisions of Minnesota Statutes, Chapter,429 and 475, and is issued pursuant to and in full conformity with the provisions of the home rule charter of the City and the Constitution and laws of the State of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475. This Bond is payable primarily from the 1985 Improvement Bond Account (the Bond Account) in the Sinking Fund of the City, but the City is required by law to pay maturing principal hereof and interest hereon from any available funds of the . City if monies on hand in the Bond Account are insufficient therefor. The -Bonds' are issuable only as fully registered bonds of single maturities, in denominations of $5,000 or any integral multiple thereof. Bonds maturing in the years 1987 through 1994 are payable on their respective stated maturity dates without option of prior payment, but Bonds having stated maturity dates in the years 1995 through 2001 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, 1994 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 a 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 and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar shall be affected by any notice to the contrary. Resolution 85-76 - Continued August 20, 1985 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 and the home rule charter of the City 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 levied ad valorem taxes upon all taxable property within the City and has agreed to levy special assessments on property specially benefited by the Improvements, 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 Bond Account in the manner specified in Minnesota Statutes, Section 429.091 and 475.61; that, in the event of any accumulated or anticipated deficiency in the Bond Account, 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, statutory or charter 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 applicable laws or regulations: TEN COM -- as tenants in common TEN ENT -- as tenants UNIF GIFT MIN ACT..... Custodian.......... (Cust) (Minor) by the entireties JT TEN -- as joint tenants with under Uniform Gifts to Minors right of survivorship and not as tenants in Act .............. .. ............ common (State) 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: Signature Guarantee: 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 any change whatsoever. Resolution 85-76 - Continued August 20, 1985 Signatures must be guaranteed by a commercial bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges. 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 Improvement Bonds, Series 1985" and shall be payable primarily from the 1985 Improvement Bond Account in the Sinking Fund of the City created in Section 4.02. The Bonds shall be issuable in the denominations of $5,000 each or any integral multiple thereof, of single maturities, 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 1987 $135,000 6.00% 1988 250,000 6.30 1989 275,000 6.60 1990 300,000 6.90 1991 325,000 7.20 1992 350,000 7.40 1993 375,000 7.60 1994 400,000 7.80 Year Amount Rate 1995 $450,000 8.00% 1996 500,000 8.20 1997 525,000 8.40 1998 575,000 8.60 1999 600,000 8.70 2000 675,000 8.80 2001 725,000 8.90 The Council finds and determines that such maturities, as set forth above, are warranted by the anticipated collection of the special assessments and ad valorem taxes levied or to be levied for the cost of the Improvements. The Bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of the Bond at the principal office of the Registrar described herein, the principal amount thereof, shall be payable by check or draft issued by the Registrar. 3.02. Dates; Interest Payment Dates. Each Bond shall bear an original issue date of September 1, 1985, and the Registrar shall place the date of authentication on each Bond as of the date of its authentication and delivery. The interest on the Bonds shall be payable on February 1 and August 1 in each year, commencing August 1, 1986, to the owners of record thereof as such appear in the bond register as of the close of business on the fifteenth day of the immediately preceding month, whether or not such 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 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. Resolution 85-76 - Continued August 20, 1985 (b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by 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 the transfer of any Bond or portion thereof selected for redemption. (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 (except for an exchange upon a partial redemption of a Bond), 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 receipt by the Registrar of evidence satisfactory to it that such Bond was lost, stolen or destroyed, and of the ownership thereof, and upon receipt by 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. Resolution 85-76 - Continued August 20, 1985 (i) Authenticating Agent. The Registrar is hereby designated authenticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision 1, as amended. 3.04. Appointment of Initial Registrar. The City hereby appoints Norwest Bank Minneapolis, N.A., Minneapolis, Minnesota, as the initial Registrar. The Mayor and the City Clerk are authorized to execute and deliver, on behalf of the City, a contract with Norwest Bank Minneapolis, 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. 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 City Clerk shall transmit to the Registrar, from the 1985 Improvement Bond Account described in Section 4.02, monies sufficient for the payment of all principal and interest then due. 3.05. Redemption. Bonds maturing in the years 1987 through 1994 shall not be subject to redemption prior to maturity, but Bonds maturing in the years 1995 through 2001 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, 1994 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 City 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 a 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 Clerk and shall be executed on behalf of the City by the signatures of the Mayor and the City Clerk, 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 City Clerk to the Purchaser 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. Resolution 85-76 - Continued Section 4. Security Provisions. August 20, 1985 4.01. 1985 Improvement Construction Fund. There is hereby created a special fund to be designated as the 1985 Improvement Construction Fund" (the Construction Fund), to be held and administered by the City Clerk separate and apart from all other funds of the City. A separate account shall be established in the Construction fund for each of the Improvements and each account shall be maintained until payment of all costs and expenses incurred in connection with the Improvement for which it is established. The City appropriates to each account in the Construction Fund (a) the proceeds of the sale of the Bonds, except any accrued interest and unused discount received from the Purchaser, and other funds so appropriated in an amount equal to the estimated cost of the Improvement for which the account was established, and (b) all collections of special assessments levied for the Improvement prior to completion and payment of all costs of the Improvement. The accounts in the Construction Fund shall be used solely to defray expenses of the Improvements, including but not limited to the transfer to the 1985 Improvement Bond Account, created pursuant to Section 4.02, of amounts sufficient for the payment of interest and principal, if any, due upon the Bonds prior to the completion and payment of all costs of the Improvements. Upon completion and payment of all costs of an Improvement, the account for it shall be terminated and any remaining proceeds of Bonds therein may be used to pay the cost, in whole or in part, of any other Improvements or any improvements instituted pursuant to Minnesota Statutes, Chapter 429, as directed by this Council, but any balance of such proceeds not so used and all special assessments remaining on deposit therein or collected after payment of all costs and expenses of the Improvements shall be credited and paid to the 1985 Improvement Bond Account. 4.02. 1985 Improvement Bond Account. So long as any of the Bonds are outstanding and any principal thereof or interest thereon unpaid, the City Clerk shall maintain a separate and special 1985 Improvement Bond Account (the Bond Account) in the Sinking Fund of the City, to be used for no purpose other than the payment of the principal of and interest on the Bonds and on such other general obligation improvement bonds of the City as have been or may be directed to be paid therefrom. The City irrevocably appropriates to the Bond Account (a) proceeds of the Bonds received upon delivery of the Bonds to the extent such proceeds exceed $6,334,000, (b) the collections of special assessments and other funds to be credited and paid thereto in accordance with the provisions of Section 4.01, (c) any taxes levied in accordance with this resolution, and (d) such other monies as shall be received and appropriated to the Bond Account from time to time. If the balance in the Bond Account 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 Bond Account when the balance therein is sufficient. 4.03. Additional Bonds. The City reserves the right to issue additional bonds payable from the Bond Account as may be required to finance costs of the Improvements 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 and special assessments which, together with other monies 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 of and interest on all bonds payable from the Bond Account. The additional ad valorem taxes, special assessments and monies or revenues so pledged, levied or agreed to be levied shall be irrevocably appropriated to the Bond Account in the manner provided by Minnesota Statutes, Section 475.61. Resolution 85-76 - Continued August 20, 1985 4.04. Levy of Special Assessments. The City hereby covenants and agrees that for payment of the cost of each of the Improvements it will do and perform all acts and things necessary for the full and valid levies of special assessments against all assessable lots, tracts and parcels of land benefited thereby and located within the area proposed to be assessed therefor, based upon the benefits received by each such lot, tract or parcel, in a principal amount with respect to each of the Improvements not less than 20 percent of the cost thereof. In the event that any such assessment shall be at any time held invalid with respect to any lot, piece or parcel of land, owing to any error, defect or irregularity in any action or proceeding taken or to be taken by the City or this Council or any of the City's officers or employees, either in the making of such assessment or in the performance of any condition precedent thereto, the City and this Council hereby covenant and agree that they will forthwith do all such further acts and take all such further proceedings as may be required by law to make such assessments a valid and binding lien upon such property. Pursuant to Minnesota Statutes, Section 475.55, this Council hereby authorizes the levy of such assessments, the deferred installments of which shall bear interest at a rate not exceeding 12% per annum. The Council presently estimates that the aggregate principal amount of said assessments will be not less than $2,226,902, payable in not more than 10 equal consecutive, annual installments, the first of said installments to be collectible with taxes during the year 1985. It is further estimated that deferred installments will bear interest at a rate not less than eight percent per annum from the date of the resolution levying said assessment until December 31 of the year in which the installment is payable. 4.05. Ad Valorem Taxes. It is equitable that such part of the cost of the special assessments agreed to be paid from general ad valorem taxes City, and that such portion of the co conferred by the Improvements upon th additional amounts required by Hinnes 1, for the payment of the Bonds, and said cost of the Improvements, there property of the City a direct, annual with other taxes in the years and amo Levy Collection Year Year Amount 1985 1986 $658,000 1986 1987 658,032 1987 1988 658,974 1988 1989 670,671 1989 1990 677,366 1990 1991 684,460 1991 1992 740,419 1992 1993 746,586 hereby found and determined to be just and of the Improvements not paid by collections be levied pursuant to Section 4.04 shall levied upon all taxable property in the st will not exceed the total benefits to be e City at large. In order to provide the ota Statutes, Section 475.61, Subdivision provide for the payment of such portion of is hereby levied upon all of the taxable ad valorem tax, which shall be collectible unts as follows: Levy Collection Year Year Amount 1993 1994 $748,358 1994 1995 771,580 1995 1996 834,500 1996 1997 837,630 1997 1998 815,000 1998 1999 838,900 1999 2000 829,100 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 85-76 - Continued August 20, 1985 4.06. 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 Bond Account in accordance with the provisions and covenants contained in this resolution. It is estimated that the special assessments levied and to be levied, together with the ad valorem taxes levied for the payment of the Improvements and other monies 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 monies on deposit in the Bond Account 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 funds of the City and such other funds shall be reimbursed therefor when sufficient money is available in the Bond Account. If on October 1 in any year the sum of the balance in the Bond Account plus the amount of special assessments and any ad valorem taxes theretofor levied for the Improvements 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 Bond Account has incurred a deficiency in the manner provided in this Section 4.06, 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 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 time 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. Section 6. County Auditor Registration, Certification of Proceedings, Investment of Ponies, Arbitrage and Official Statement. 6.01. County Auditor Registration. The City Clerk is hereby authorized and directed to file a certified copy of this resolution with the County Auditor 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 4.05 have been levied as required by law. Resolution 85-76 - Continued August 20, 1985 6.02. Certification of Proceedings. The officers of the City and the County Auditor of Hennepin County are hereby authorized and directed to prepare and furnish to the Purchaser 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. Arbitrage Certification. The Mayor and the City 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 Purchaser a certification pursuant to 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. 6.05. Official Statement. The Official Statement relating to the Bonds, prepared on behalf of the City by Public Financial Systems, Inc. is hereby approved, and the officers of the City are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency thereof. Mary E. Aftrson, Mayor ATTEST: Shirley rTlon, City Clerk The motion for the adoption of the foregoing resolution was seconded by Member Johnson and upon a vote being taken thereon, the following voted in favor thereof: Anderson, Bakken, Johnson, Stockman and Thompson; 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.