85-122 - 12-16 Issue Sale $6,700,000 General Obligation Tax Bonds Series 1985CResolution 85-122
December 16, 1985
Member Thompson introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING ISSUANCE, AWARDING THE SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR
THE PAYMENT OF $6,700,000 GENERAL OBLIGATION TAX
INCREMENT BONDS, SERIES 1985C
BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota,
as follows:
1.01. Recitals and Authorization. The Golden Valley Housing and
Redevelopment Authority the Authority) has prepared a tax increment financing
plan for the Golden Hills Redevelopment Tax Increment Financing District (the
District) within the Golden Hills Redevelopment Project Area (the Project) in
Golden Valley. After appropriate proceedings, this Council by resolution
approved the tax increment financing plan of the Authority. Among other things,
the plan calls for the acquisition of certain properties within the District and
payment of associated redevelopment costs and sale of District properties to a
developer (the Phase I Improvements). The cost of the Phase I Improvements is
estimated to be approximately $6,700,000 as set forth in Exhibit A attached
hereto.
1.02. This Council, under the authority of Minnesota Statutes, Section
273.77(a) and 462.581 and Minnesota Statutes, Chapter 475, and pursuant to a
resolution adopted on November 19, 1985, ordered that a public sale of
$6,700,000 General Obligation Tax Increment Bonds, Series 1985C (the Bonds) to
be held on this date. Notice of the public sale of the Bonds was duly given as
required by Minnesota Statutes, Section 475.60. In accordance with the Official
Terms of Offering, sealed bids were received by the Finance Director prior to
12:00 Noon, on this date. Those bids have been opened, publicly read aloud and
considered by this Council and the terms of each have now been determined.
1.03. Sale. The bid of Continental Illinois National Bank and Trust Company,
of Chicago, Illinois (the Purchaser), and associates, for the purchase of the
Bonds in the principal amount of $6,700,000 on the terms set forth in the
Official Terms of Offering, at a price of $6,599,727.10, the Bonds to bear
interest at the rates set forth in Section 3 hereof, is hereby declared to be
the best bid received, and is hereby accepted. The Mayor and the City Manager
are hereby authorized and directed to execute a contract for the sale of the
Bonds to the Purchaser in accordance with the terms of said bid, the Official
Terms of Offering and this resolution. The Finance Director shall deposit the
good faith check of the Purchaser, and shall return the good faith checks of the
unsuccessful bidders forthwith.
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 and Certificates as to Legal Opinion.
form. 2.01. Bond Form. The Bonds shall be prepared in substantially the following
Resolution 85-122 - Continued
Interest Rate
REGISTERED OWNER:
PRINCIPAL AMOUNT:
[Face of the Bonds]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF GOLDEN VALLEY
GENERAL OBLIGATION TAX INCREMENT BOND
SERIES 1985C
Date of
Maturity Original Issue
December 1, 1985
December 16, 1985
DOLLARS
CUSIP
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 specified above, or registered assigns, the principal amount
specified above in lawful money of the United States on the maturity date stated
above, with interest thereon from the date hereof at the annual rate specified
above such interest payable hereof at the annual rate specified above such
interest payable on February 1 and August 1 of each year, commencing August 1,
1986 to the owner of record of this Bond on the 15th day (whether or not a business
day) at the immediately preceding month, all subject to the provisions for
redemption of this Bond before maturity referred to below. The interest hereon,
and upon presentation and surrender hereof, the principal hereof are payable in
lawful money of the United States by check or draft by
in as Bond Registrar and Paying Agent
under the resolution referred to below, or its successor.
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, City Manager and the City Clerk and has
caused this Bond to be authenticated and delivered as of the date set forth
below.
Dated:
CITY OF GOLDEN VALLEY, MINNESOTA
(Facsimile Signature) (Facsimile Signature) (Facsimile Signature)
City Clerk City Manager Mayor
Resolution 85-122 - Continued December 15, 1985
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned
within.
as Bond Registrar
By
Authorized Representative
[Reverse of the Bonds]
This Bond is one of an issue in the aggregate principal amount of $6,700,000
(the Bonds), issued pursuant to a resolution adopted by the City Council on
December 16, 1985 (the Resolution) to finance public redevelopment costs within
the Golden Hills Redevelopment Project Area in the City (the Project), 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, Section 462.581 and 273.77 and Chapter 475. This Bond is a general
obligation of the City payable primarily from a separate bond fund established
therefor (the Bond Fund), but the City is required by law to pay the principal
hereof and interest hereon from any available funds of the City if moneys on hand
in the Bond Fund are insufficient therefor. The Bonds are issuable only as fully
registered bonds of single maturities.
Bonds having stated maturity dates in the years 1997 through 2006 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, 1996 and on any interest payment date
thereafter, at a price equal to the principal amount thereof plus accrued
interest to the date of redemption. Notice of the call for redemption will be
published as required by law, and at least thirty days prior to the designated
redemption date, 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.
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 maturity 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 85-122 - Continued December 16, 1985
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and thing 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 pledged and appropriated all of the tax
increments to be derived by the City from said District pursuant to a Cooperation
Agreement with the Housing and Redevelopment Authority of the City to a bond
fund established for the payment of all bonds issued to finance costs of said
Project, including the Bonds; that said tax increments are estimated to be
collectible for the years and in amounts sufficient to pay the principal of and
interest on the Bonds of this issue when due; that, in the event of any accumulated
or anticipated deficiency in the bond fund, 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
this Bond, shall be construed as though
to the applicable laws or regulations:
TEN COPS -- 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
used in the inscription on the face of
they were written out in ful 1 accordi ng
UNIF GIFT HIN ACT.....Custodian..........
(Cult) (Minor)
under Uniform Gifts to Hinors
Act ........... ..... ............
(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:
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.
Signature(s) 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.
Resolution 85-122 - Continued
December 16, 1985
2.02. Certificate as to Legal Opinion. The following certificate shall be
printed on the reverse side of each Bond and executed by the printed facsimile
signature of the City Clerk:
I, the undersigned, being the duly qualified and acting City Clerk of the
City of Golden Valley, Hennepin County, Minnesota, certify that printed above is
a ful 1 , true and correct copy of the legal opinion rendered by Bond Counsel on
the issue of Bonds of the City which includes the within Bond, dated as of the
date of delivery of and payment for the Bonds.
(Facsimile Signature)
City Clerk
Section 3. Bond Terms, Execution and Delivery.
3.01. Date, Maturities, Interest Rates. The Bonds shall be designated
General Obligation Tax Increment Bonds, Series 1985C, and originally dated as of
December 1, 1985. The Bonds shall mature on February 1 in the years and amounts
set forth below, and bear interest from date of issue until paid or duly called
for redemption at the annual rates set forth opposite said years and amounts:
Year
Principal Amount Interest Rate
1990
170,000
8.50%
1991
205,000
8.500/.
1992
225,000
8,50%
1993
245,000
8.50%
1994
265,000
8.00%
1995
285,000
7.40°0
1996
310,000
7.60%
1997
335,000
7,80°%
1998
365,000
7.90%
1999
395,000
8.00%
2000
403,000
8.10%
2001
465,000
8.10%
2002
505,000
8.20%
2003
550,000
8,20%
2004
595,000
8.0011.
2005
645,000
8.00%
2006
710,000
7.00%
The Bonds shall be combined
with all other outstanding general
obligation tax
increment bond issues of the
City for the purpose of complying
with Minnesota
Statutes, Section 475.54.
3.02. Registration. The City shall appoint, and shall maintain, a bond
registrar, transfer agent and paying agent (the Bond Registrar). The effect of
registration and the rights and duties of the City and the Bond Registrar with
respect thereto shall be as follows:
(a) Register. The Bond Registrar shall keep at its principal corporate
trust office a bond register in which the Bond 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 85-122 - Continued December 16, 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 Bond Registrar, duly executed by the
registered owner thereof or by an attorney duly authorized by the registered
owner in writing, the Bond 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
Bond Registrar may, however, close the books for registration of any transfer
after the fifteenth day of the month preceding each maturity date or redemption
date of the Bonds.
(c) Exchange of Bonds. Whenever any Bond is surrendered by the registered
owner for exchange, the Bond 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 Bond Registrar and thereafter disposed of as
directed by the City.
(e) groper or Unauthorized Transfer. When any Bond is presented to the
Bond Registrar for transfer, the Bond 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 Bond 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 Bond 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 Bond Registrar may impose a charge upon the owner thereof sufficient to
reimburse the Bond 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 Bond 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 Bond Registrar in connection
therewith; and, in the case of a Bond lost, stolen or destroyed, upon filing
with the Bond Registrar of evidence satisfactory to it that such Bond was lost,
stolen or destroyed, and of the ownership thereof, and upon furnishing to the
Bond Registrar of an appropriate bond or indemnity in form, substance and amount
satisfactory to it, in which both the City and the Bond Registrar shall be named
as obligees. All Bonds so surrendered to the Bond 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 85-122 - Continued December 16, 1985
3.03. Appointment of Bond Registrar. The City hereby appoints Norwest Bank
Minneapolis, N.A., of Minneapolis, Minnesota, as the Bond Registrar. The Mayor
and the City Clerk are authorized to execute and deliver, on behalf of the City,
a contract with the Bond Registrar. Upon merger or consolidation of the Bond
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 Bond Registrar. The City agrees to pay the
reasonable and customary charges of the Bond Registrar for the services performed.
The City reserves the right to remove any Bond Registrar upon thirty (30) days'
notice and upon the appointment of a successor Bond Registrar, in which event
the predecessor Bond Registrar shall deliver all cash and Bonds in its
possession to the successor Bond Registrar and shall deliver the bond register
to the successor Bond Registrar.
3.04. Redemption. Bonds maturing in the years 1997 through 2006 shall each
be subject to redemption and prepayment, at the option of the City, in inverse
order of maturities and, within any maturity, as selected by the Bond Registrar
by lot, on February 1, 1996 and on any interest payment date thereafter at a
price equal to the principal amount thereof plus accrued interest to the date of
redemption. The City Clerk shall cause notice of the call for redemption to be
published as required by law, and to be mailed at least thirty days prior to the
designated redemption date, to the Bond Registrar and to the registered owner of
each Bond to be redeemed.
3.05. 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, City Manager and the City Clerk; provided that said
signatures 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. Notwithstandi ng
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 Bond 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 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. Construction Fund. A Construction Fund is hereby created as a special
fund and designated on the books of the City as the "Golden Hills Redevelopment
Project Area Construction Fund (the Construction Fund), to be held and administered
by the Finance Director separate and apart from all other funds of the City.
The City hereby appropriates to the Construction Fund all of the proceeds received
from the sale of the Bonds, less the amount to be deposited in the Bond Fund, as
hereinafter defined, pursuant to Section 4.02 hereof. Moneys on hand in the
Construction Fund from time to time shall be used soley to pay capital and a
administrative costs in connection with the Project as set forth in the Plan.
Any amounts remaining in the Construction Fund upon completion of the Project
and payment of all of the costs thereof shall be transferred to the Bond Fund.
Resolution 85-122 - Continued December 16, 1985
4.02. Bond Fund. There is hereby created a "Golden Hills Redevelopment
Project Bond Fund" and for so long as any of the Bonds or any additional bonds
issued pursuant to Section 4.04 hereof are outstanding and unpaid, the Finance
Director shall maintain a bond fund therefor (the Bond Fund) as a separate and
special account to be used for no purpose other than the payment of the Bonds,
such additional bonds or any other development costs in connection with the
Project which are authorized by law to be paid from tax increments derived from
the District. The City hereby irrevocably appropriates to the Bond Fund (a)
$1,471,208 of the proceeds of the ponds representing capitalized interest, (b)
the accrued interest and any amount in excess of $6,599,500 bid for the Bonds
and received from the Purchaser upon delivery of the Bonds, and (c) any other
moneys appropriated or pledged by the terms of this Resolution to the Bond Fund.
4.03. Tax Increment. The Director of Property Taxation has certified that
the original taxable value of real property within the District according to the
assessment of January 2, 1984, is $6,522,788. Under the provisions of Minnesota
Statutes, Section 462.585, Subdivision 3, the Director of Property Taxation will
include only the original taxable value according to the assessment as of January
2, 1984 in the assessed valuation upon which he computes the rate of all state,
county, city, school district and other taxes, but will extend the rates so
determined against the entire assessed valuation of such real property in each
year, and the County Treasurer will remit to the Authority that the proportion
of the taxes paid each year on such real property within the District which the
excess of the assessed valuation over the original taxable value bears to such
original value. The Authority has agreed to segregate the tax increments so
received until the public redevelopment costs of the Project, including the
principal amount of the Bonds and interest thereon, has been paid and the City
has been fully reimbursed for any principal and interest which has been paid
from the city-wide taxes herein authorized to be levied. The Authority has
pledged and appropriated the tax increments to the Bond Fund for the payment
of such principal and interest and the reduction, cancellation and reimbursement
of such taxes. The Playor and City Clerk are authorized to execute a Cooperation
Agreement with the Authority, pursuant to Minnesota Statutes, Section 273.77(a),
relating to the pledge and appropriation of said tax increments.
4.04. Additional Bonds. The City reserves the right to issue additional
bonds payable from the Bond Fund as may be required to finance costs of the
Project not financed hereby or to finance costs of other projects to be undertaken
by the City within the Project.
4.05. Tax Levy. The full faith and credit and taxing powers of the City
are irrevocably p edged for the prompt and full payment of the principal and
interest of the Bonds and the principal and interest on all other bonds made
payable from the Bond Fund, as such amounts become due. It is estimated that
the tax increments appropriated to the Bond Fund in Section 4.03 will produce
sums available for the payment of the Bonds at the times and in the amount
required by Minnesota Statutes, Section 475.61, and therefore as permitted by
Minnesota Statutes, Section 273.77(a), no taxes are levied for this purpose at
the present time. It is recognized, however, that the City's liability on the
Bonds is not limited to the provision of these funds, and that the City is
required by Minnesota Statutes, Section 273.77(a) and Section 475.61, to levy
and cause to be extended, assessed and collected any ad valorem taxes necessary
for the payment of principal of and interest on the Bonds.
Resolution 85-122 - Continued December 16, 1985
Section 5. Defeasance. When any Bond has been discharged as provided in
this section, all pledges, covenants and other rights granted by this resolution
to the holders of such Bonds shall cease, and such Bonds shall no longer be
deemed to be outstanding under this Resolution. The City may discharge its
obligations with respect to any Bond which is due on any date by depositing with
the paying agent 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 paying agent 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 Bond according to
its terms, by depositing with the paying agent on or before that date an amount
equal to the principal and interest then due, provided that notice of such redemption
has been duly given as provided herein. 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 authorized by law to be do deposited, bearing
interest payable at such times and at such rates and maturing on such dates as
shall be required to pay the principal and interest to become due thereon to
maturity or said redemption date.
Section 6. County Auditor Registration, Certification of Proceedings,
Investment of Moneys 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 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.
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 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 t epi 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 paid 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 paid or accreted on the Bonds will not become subject
to taxation under the code and the Regulations. In particular, unless required
by state law to do otherwise, the City covenants that it shall not take any
action or exercise any remedies pursuant to any development agreement relating
to the Golden Hills Redevelopment Tax Increment District if the effect thereof
would be, in the opinion of bond counsel furnished to the City, to cause the
Bonds to be considered "industrial development bonds" or "consumer loan bonds"
pursuant to Section 103(b) of the Internal Revenue Code.
Resolution 85-122 - Continued December 16, 1985
6.04. Investment of Moneys on Deposit in Bond Account. From and after
December 1, 1995, the Finance Director shall ascertain monthly the amount on
deposit in the Bond Fund allocable to the Bonds. If the amount on deposit
therein ever exceeds by more than $1,005,000, the principal and interest due
and payable from the Bond Fund with respect to the Bonds through the next
February 1, plus a reasonable carryover as permitted by the Code and regulations,
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.
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, City Manager and 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 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.
Mary E. bAderson, Mayor
ATTEST:
Shirley Ne son, 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.