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088-074 - 08-02 Issuance & Sale of $610,000 GO Bonds Series 1988A Resolution 88-74 August 2, 1988 Member Stockman introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORP� AND DETAILS AND PROVIDING FOR THE PAYMEPJT OF $610,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 19$8A BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota (the Issuer), as follows: Section 1. Authorization and Sale. (a) This Council , by Resolution No. 88-69, adopted July 5, 1988, authorized the issuance and public sale of $610,000 General Obligation Improvement Bonds, Series 1988A (the �onds) to finance various public improve- ments, as described in Resolution No. 88-69. (b) Notice of sale of the Bonds has been duly published. Pursuant to the Official Terms of Offering and Notice of Sale, 6 sealed bids for the purchase of the Bonds we re received at or before the time specified fo r receipt of bids. The bids have been opened, publicly read and conside red and the purchase price, interest rates and net interest cost under the terms of each bid have been determined. The most favorable bid received is that of First Bank National Association of Minneapolis, Minnesota, and associates (the Purchaser) to purchase the Bonds at a price of $604,510.00 plus accrued interest on all Bonds to the day of delivery and payment, on the further terms and conditions hereinafter set forth. (c) The sale of the Bonds is hereby awarded to the Purchaser and the P�ayor and flanager are hereby authorized and di rected to execute a contract on behalf of the Issuer for the sale of the Bonds in accordance with the terms of the bids. The good faith check of the Purchaser shall be retained and deposited by the Issuer until the Bonds have been delivered, and shall be deducted from the purchase price paid settlement. The good faith checks of other bidde rs shall be returned to them forthwith. Section 2. Bond Terms; Registration; Execution and Delivery. 2.01. 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 the City Council to establish the form and terms of the Bonds, to provide security therefor and to issue the Bonds forthwith. 2.02. Maturities; Interest Rates; Denominations; Payment. The Bonds shall be designated General Obligation Improvement Bonds, Series 1988A, shall be ori- ginally dated as of September 1, 1988, shall be in the denomination of $5,000 each, or any integral multiple thereof, of single maturities, shall mature on February 1 in the years and amounts stated below, and shall bear interest from date of issue until paid or duly called for redemption at the annual rates set forth opposite such years and amounts, as follows: Resolution 88-74 - Continued August 2, 1988 Year Amount Interest Rate 1990 $125,000 5.75% 1991 55,000 5.90% 1992 55,000 6.00% 1993 55,000 6.15q 1994 55,000 6.30% 1995 55,000 6.45� 1996 55,000 5.60% 1997 55,000 6.70I 1998 50,000 6.75% 1999 50,000 6.80% The bonds shall be issuable only in fully registered form. The interest thereon and, upon surrender of each 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 described herein. 2.03 Dates; Interest Payment Dates. Each Bond shall bear an original issue date of Septerober l, 1988, 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, 1989, to the owner of record thereof as of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 2.04 Registration. The Issuer shall appoint and maintain a bond registrar, transfer agent and paying agent (the Registrar). The effect of registration and the rights and duties of the Issuer 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 transfer and exchanges of Bonds entitled to be registered, transferred or exchanged. (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 forrn 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 aggre- gate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of the month preceding each interest payment date and until such interest payment date. (c) Exchange of Bonds. Whenever any Bonds are surrendered by the registered owner for exchange, the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorney in writing. (d) Cancellation. All Bonds surrendered upon any transfer or exchange shall be promptly canceled by the Registrar and thereafter disposed of as directed by the Issuer. Resolution 88-74 - Continued August 2, 1988 (e) Improper or Unauthorized Transfer. When any Bond is presented to the Registrar for transfer, the P,egistrar may refuse to transfer the same until it is satisfied that the endorsement on such Bond or separate instrument of transfer is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liability for the refusal , in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. {f) Persons Deemed Owners. The Issuer 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 the Bond, whether the Bond shall be overdue or not, for the purpose of receiving payment of or on account of, the princi�al of and interest on the Bond and for all other purposes; and all payments made to any registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability upon 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) Plutilated, Lost, Stolen or Destro ed Bonds. In case any Bond shall become mutilated or be ro � and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar of evidence satisfactory to it that the 6ond was destroyed, stolen or lost, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance and amount satisfactory to it, in which both the Issuer 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 Issuer. If the mutilated, destroyed, stolen or lost Bond has already matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Bond prior to payment. (i ) Authenticating Agent. The Registrar is hereby designated authen- ticating agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55, Subdivision l, as amended. 2.05. Appointment of Initial Registrar. The Issuer hereby appoints Marquette Bank of Minneapolis, N.A. , P9inneapolis, Minnesota, as the initial Regi strar and Payi ng Agent for the Bonds. The Mayor and the Planager are authorized to execute and deliver, on behalf of the Issuer, a contract with the 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 Issuer agrees to pay the reasonable and customary charges of the Registrar for the services performed. The Issuer reserves the right to rer�ove the Registrar upon thirty days ' notice and upon the appointment of a successor Registrar, in which event the predecessor Registrar shall deliver all cash and Bonds it is possession to the successor Registrar and shall deliver the bond register to the successor Registrar. Resolution 88-74 - Continued August 2, 1988 Registered Owner: Principal Amount: THE CITY OF GOLDEN VALLEY, HENNEPIN COUNTY, MINNESOTA (the Issuer), a duly organized and existing municipal corporation, acknowledges itself to be indebted and for value received hereby prornises to pay to the registered owner specified above, or registered assigns, the pri�cipal sum specified above 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, com- mencing August 1 , 1989, 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 the principal of this Bond prior to its state maturity. The interest hereon and, upon presentation and surrender hereof, the principal hereof are payable in lawful mor�ey of the United States of Ame ri ca by check or draft by , i n , as Bond Registrar and Paying Agent (the Registrar , or its designated successor under the Resolution described herein. For the prompt and full payment of such principal and interest as the same respectively becor�e due, the full faith, cre- dit and taxing powers of the Issuer 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 Registrar by re�anual signature of one of its authorized representatives. IN WITNESS V�JHEREOF, the City of Golden Valley, Hennepin County, Minnesota, by its City Council , has caused this Bond to be executed on its behalf by the facsimile signatures of the Playor and City P�anager and has caused this Bond to be dated as of the date set forth below. Dated: CITY OF GOLDEN VALLEY, PIINNESOTA (facsimile) h1ay o r Attest: (facsimile) City Manager CERTIFICATE OF AUTHENTICATION This is one of the Certificates delivered pursuant to the Resolution men- tioned within. as Registrar By Authorized Representative Resolution 88-74 - Continued �ugust 2, 1988 (Reverse of the Certificates) This Bond is one of a series in the aggregate principal amount of $610,000, all of like date and tenor, except as to maturity date, interest rate, denomination and redemption provision, issued, pursuant to a resolution adopted by the City Council on August 2, 1988 (the Resolution) , to finance the costs of local improvements and is issued pursuant to and in full conformity with the Constitution and la�vs of the State of Plinnesota thereunto enabling, including Plinnesota Statutes, Chapters 429 and 475. The Bonds of this series are issuable only as fully registered bonds, in denominations of $5,000 or any integral multiple thereof, of single maturities. Bonds of this series maturing in 1996 and earlier years are payable on their respective stated maturity dates without option of prior payment, but Bonds having stated r�aturity dates in 1997 and later years are each subject to redemption and prepayment at the option of the Issuer, in whole or in part, and if in part in inverse order of maturity dates and by lot, as selected by the Registrar in multiples of $5,000, within any maturity, on February 1 , 1996 and any interest payment date thereafter, at a price equal to the principal amount thereof plus interest accrued to the date of redemption. The Issuer will cause notice of the call for redemption to be published as required by law and, at least thirty days prior to the date specified for redemption, will cause notice of the call thereof to be r�ailed, by registered or certified mail , to the registered owner of any Bond to be redeemed at the owner's address as it appears on the bond register maintained by the Registrar, but no defect in or failure to give such mailed notice of redemption shall affect the validity of proceedings for the redemption of any 6ond not affected by such defect or failure. Official notice of redemption having been given as aforesaid, the Bonds or po rtions of Bonds so to be redeerned shall , on the redemption date, become due and payable at the redemption price therein specified, and frori and after such date (unless the Issuer shall default in the payment of the redemption price) such Bonds or por- tions of Bonds shall cease to bear interest. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge, repre- senting the remaining principal amount outstanding. Bonds of this series have 6een designated as "Qualified Tax-Exempt Obligations" pursuant to Section 265 of the Internal Revenue Code of 1986. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the Issuer at the principal office of the Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the register�d owner or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized denominations. Upon such transfer or exchange the Issuer will cause a new Bond or �onds to be transferred 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 governr�ental change required to be paid with respect to such transfer or exchange. The Issuer and the Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is over- due or not, for the purpose of receiving payment and for all other purposes, and neither the Issuer nor the Registrar shall be affected by any notice to the contrary. Resolution 88-74 - Continued August 2, 1988 IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, con- ditions and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen and to be performed prelirninary to and in the issuance of this Bond in order to make it a valid and binding general obligation of the Issuer in accordance with its terms, have been done, do exist, have happened and have been performed as so required; that, prior to the issuance hereof the City Council has by the Resolution covenanted and agreed to levy special assessments upon property specially benefited by the local improve- ments financed by the Bonds, and ad valorem taxes on all taxable property in the Issuer, which special assessments and taxes will be collectible for the years and in amounts sufficient to produce sums not less than 5% in excess of the principal of and interest on the Bonds of this series when due, and has appropriated such special assessments and taxes to its Series 1988A Improvement Bond Fund for the payment of such principal and interest; that if necessary for payment of such principal and interest, additional ad valorem taxes are required to be levied upon all taxable property in the Issuer without limitation as to rate or amount; and that the issuance of this Bond, together with all other i ndebtedness of the Issuer outstandi ng on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the Issuer to exceed any constitutional or statutory limitation of indebtedness. (Form of certificate to be printed on the reverse side of each Qond, following a full copy of the legal opinion. ) We certify that the above is a full , true and correct copy of the legal opinion rendered by bond counsel on the issue of Qonds of the City of Golden Valley, Hennepin County, Minnesota, which includes the within Bond, dated as of the date of delivery of and payment for the Bonds. (Facsimile Signature) (Facsimile Signature) City f�anager r�ayor 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 UTMA as Custodian for in common Cust� Minor TEN ENT -- as tenants Under Uniform Transfers to by enti reti es P�1i nors JT TEN -- as joint tenants with Act. . . . . . . . . . right of survivorshi� (State) and not as tenants in c omma n Additional abbreviations may also be used though not in the above list. ASSI GNh�tE NT For value received, the undersigned hereby sells, assigns and transfers Resolution 88-74 - Continued August 2, 1988 unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond with full power of substitution in the premises. Dated: Notice: The assignor s signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatsoever. Signature Guaranteed: Signature(s) must be guaranteed by a national bank or trust company or by a bro- kerage fi rm havi ng a membership i n one of the major stock exchanges. PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUP�BER OF ASSIGNEE: Section 3. Use of Proceeds. There is hereby established on the official books and records of the Issuer a Series 1988A Improvement Construction Fund (the Construction Fund) , and the Finance Director shall continue to maintain the Construction Fund until payment of all costs and expenses incurred in con- nection with the construction have been paid, To the Construction Fund there shall be credited from the proceeds of the Bonds, exclusive of unused discount and accrued interest, an amount equal to the estimated cost of the improvements and from the Construction Fund there shall be paid all construction costs and expenses. There shall also be credited to the Construction fund all special assessments collected H�ith respect to the improvements financed by the Bonds, until all costs of the improvements have been fully paid. After payment of all construction costs, the Construction funds shall be discontinued and any Bond proceeds remaining therein may be transferred to the other funds or account established for construction of other improvements instituted pursuant to Minnesota statutes, Chanter 429. All special assessments on hand in the Construction Fund when terminated or thereafter received, and any Bond proceeds not so transferred, shall be credited to the Series 1988A Improvement Bond Fund of the Issuer. All proceeds of the 8onds deposited in the Construction Fund will be expended solely for the payment of the costs of the improvernents referred to in Section 1 hereof (or other improvements authorized pursuant to Chapter 429) . All improvements so financed will be owned and maintained by the issuer and available for use by members of the general public on a substantially equal basis. The Issuer shall not enter into any lease, use or other agreement with any non-governmental person relating to the use of the improvements or security for the payment of the Bonds which might cause the Bonds to be con- sidered "private activity bonds" or "private loan bonds" pursuant to Section 141 of the Internal Revenue Code of 1986 (the Code). Resolution 88-74 - Continued August 2, 1988 Section 4. Series 1988A Im�rovement Bond Fund. So long as any of the Bonds are outstanding and any principal of or interest thereon unpaid, the Finance Director shall maintain a separate debt service fund on the official books and records of the Issuer to be known as the Series 1988A Improvement Bond Fund (the Bond Fund) and the principal of and interest on the Bonds shall be payable from the �ond Fund. The Issuer irrevocably appropriates to the Bond Fund (a) any amount in excess of $600,850 received from the Purchaser; (b) all taxes and special assessments levied and collected in accordance with this Resolution; and (c) all other monies as shall be appropriated by the City Council to the Bond Fund from time to time. If the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all Bonds payable therefrom, the payment shall be made fron any fund of the Issuer which is available for that purpose, subject to reimbursernent from the Qond Fund when the balance therein in sufficient, and the City Council covenants and agrees that it will each year levy a sufficient amount to take care of any accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory tax limitation. Section 5. S ecial Assessments. The Issue r hereby covenants and agrees that, for the payment of t e cost o� improvements financed by the Qonds the Issuer has done or will do and perform all acts and things necessary for the final and valid levy of special assessments in an amount not less than 20% of the cost of each of the improvements financed by the Bonds, and the Issuer esti- mates it will levy assessments in the aggregate principal amount of $244,000. The principal of the assessments shall be payable in not more than 10 installments, with interest on unpaid installments thereof from time to time at the rate of approxirnately 7.65% per annum. It is estimated that the principal and interest on such special assessments will be collected in the years and amounts as follows: Collection Year Amount 1989 $47,771 1990 41,203 1991 39,336 1992 37,469 1993 35,602 1994 33,735 1995 31,868 1996 30,001 1997 28,134 1998 26,267 In the event any such assessment shall at any time be held invalid with respect to any lot or tract of land, due to any error, defect or irregularity in any action or proceeding taken or to be taken by the Issuer or by the City Council or by any of the officers or employees of the Issuer, either in the making of such assessment or in the performance of any condition precedent thereto, the Issuer hereby covenants and agrees that it will forthwith do all such further things and take all such further proceedings as shall be required by law to make such assessment a valid and binding lien upon said prope rty. Section 6. Pledge of Taxi ng Powers. For the prornpt and ful 1 payment of the princi�al of and interest on the Bonds as such payments respectively Resolution 88-74 - Continued August 2, 1988 become due, the full faith, credit and unlimited taxing powers of the Issuer shall be and are hereby irrevocably pledged. In order to produce aggregate amounts which, together with the collections of special assessments as set forth in Section 5 will produce amounts not less than 5% in excess of the amounts needed to meet when due the principal and interest payments on the 3onds, ad valorem taxes are hereby levied on all taxable property in the Issuer. The taxes will be levied and collected in the following years and amounts: Levy Collection Year Year Amount 1988 1989 $140,328 19�9 1990 49,129 1990 1991 47,589 1991 1992 45,991 1992 1993 44,306 1993 1994 42,535 1994 1995 40,677 1995 1996 38,732 1996 1997 31,480 1997 1998 29,803 Said taxes shall be irrepealable as long as any of the Bonds are outstanding and unpaid, provided that the Issuer reserves the right and power to reduce said levies in accordance with the provisions of Minnesota Statutes, Section 475.61. Section 7. Defeasance. bJhen all of the Bonds have been discharged as pro- vided provided in this section, all pledges, covenants and other rights granted by this Resolution to the holders of the Bonds shall cease. The Issuer may discharge its obligations with respect to any �onds which are due on any date by depositing with the Registrar on or before that date a sum sufficient for the payment thereof on full ; or, if any Qond 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 from the due date to the date of such deposit. The Issue r may also discharge its obligations with res�ect to any prepayable Bonds called for rede�ption on any date when they are prepayable according to their terms, by depositing with the Registrar on or before that date an amount equal to the princi�al , interest and redemption premium, if any, which are then due, nrovided that notice of such redemption has been duly given as provided herein. The Issuer may also at any time discharge its obligations with respect to any 6onds subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in esc row, with a bank qualified by law as an escrow agent for this purpose, cash or securities which are authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing or callable at the holder's option on such dates as shall be required to pay all principal , interest and redemption prerniums to become due thereon to maturity or said redemption date. Section 8. Registration of Qonds. The Clerk is hereby authorized and directed to file a certified copy of this Resolution with the County Auditor of Hennepin County, together with such additional information as the Auditor shall require, and to obtain from the Auditor a certificate that the Bonds have been duly entered upon the Auditor's bond register and that the taxes required by law for payment of the Bonds have been levi ed. Resolution II8-74 - Continued August 2, 1983 Section 9. Authentication of Transcript. The officers of the Issuer and kiennepin County Auditor are hereby authorized and directed to prepare and fur- nish to the Purchaser and to Dorsey and GJhitney, Bond Counsel , certified copies of all proceedings and records relating to the Bonds and such other affidavits, certificates and information as may be required to show the facts relating to the legality and marketability of the �onds, as the same appear from the books and records in their custody and control or as otherwise known to them, and all such certified copies, affidavits and certificates, including any heretofore furnished, shall be deemed representations of the Issuer as to the correctness of all statements contained therein. Section 10. Official Statement. The Official Statement relating to the Bonds, dated July 19, 1988, prepared and delivered on behalf of the Issuer �y Springsted Incorporated, is hereby approved, and the officers of the Issuer are hereby authorized and directed to execute such certificates as may be appropriate concerning the accuracy, completeness and sufficiency thereof. Section 11. Tax Covenant. (a) The City covenants and agrees with the holders frorn time to time of the Bonds herein authorized, that it will not take, or permit to be taken by any of its officers, employees or agents, any action which would cause the interest payable on the Bonds to become subject to taxation under the United State Internal Revenue Code of 1986 (the Code) and regulations issued thereunder, in effect at the time of such action, and that it will take, or it will cause its officers, employees or agents to take, all affirmative actions within its powers which may be necessary to insure that such interest will not become subject to taxation under the Code and applicable Treasury Regulations, as presently existing or as hereafter amended and made applicable to the Bonds. (b) From and after February 1 , 1996, the Clerk shall ascertain, each time a deposit is made to the Bond Fund, the amount on deposit in the Bond Fund. If the amount on deposit therein ever exceeds by more than a "minor portion" ($30,500) the aggregate amount of principal and interest due and payable on the Qonds through the next following February 1 , plus a reasonable carryover as per- mitted by the Code and applicable regulations, such excess shall either (i ) not be invested except at a yield less than or equal to the yield on the Bonds, com- puter in accordance with Section 148 of the Code, or (ii ) be used to purchase or to prepay and redeem Bonds. The Issuer reserves the right to amend the provi - sions of this section at any time, whether prior to or after the deliver of the Bonds , if and to the extent the City Council determines that the provisions of this section are not necessary, or otherwise require amendment, in order to assure that the Bonds are not arbitrage bonds under the Code and the applicable regulations. (c) The Mayor and the Manager being the officers of the Issuer charged with the responsibility for issuing the Bonds pursuant to this Resolution, are authorized and directed to execute and deliver to the purchaser a certification in accordance with the provisions of Section 148 of the Code, and Sections 1.103-13, 1.103.14 and 1.103.15 of the Regulations, stating that on the basis of acts, estimates and circumstances in existence on the date of issue and delivery of the Bonds, i is reasonably expected that the proceeds of the Bonds will not be used in a manner that would cause the Bonds to be arbitrage bonds with the r�eaning of the Code and the applicable regulations. Resolution 88-74 - Continued August 2, 1988 Section 12. Arbitrage Rebate Exemption. It is hereby found that the Issuer has general taxing powers, that no Bond is a "private activity bond" within the meaning of Section 141 of the Code, that 95% or more of the net pro- ceeds of the Bonds are to be used for local governmental activities of the Issuer, and that the aggregate face amount of all tax-exempt obligations (other than private activity bonds ) issued by the Issuer and all subordinate entities thereof during the year 1988 is not reasonably expected to exceed $5,000,000. Therefore, pursuant to the provisions of Section 148(f) (4) (C) of the Code, the issuer shal l not be requi red to comply with the arbitrage rebate requi rements of paragraphs (2) and (3) of Section 148 (f) of the Code. Section 13. Qualified Tax-Exempt Obligations. The City Council hereby designates the Bonds as�qualified tax-exempt obligations" for purposes of Section 265(b) (3) of the Code relating to the disallowance of interest expense for financial institutions, and hereby finds that the reasonably anticipated amount of qualified tax-exempt obligations (within the meaning of Section 265(b) (3) of the Code) which will be issued by the issuer and all subordinate entities during calendar year 1988 does not exceed $10,000,000. , ., , �.�'� '�1>,./ � ary . nderson, � ayor ATTEST: ���ti ��� Shirley Ne son, City Clerk The motion for the adoption of the foregoing resolution was duly seconded by Member Thompson 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 Playor and her signature attested by the City Clerk.