03-21 - 05-06 - Awarding Sale of General Bonds 2003C CERTIFICATION OF MINUTES RELATING TO
$11,085,000 GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2003C
Issuer: City of Golden Valley, Hennepin County, Minnesota
Governing Body: City Council
Kind, date, time and place of meeting: A regular meeting held on May 6, 2003, at 6:30 p.m., at
the City offices.
Members present: Loomis, Grayson, Johnson, ZeSuer, and Tremere
Members absent: None
Documents Attached:
Minutes of said meeting(including):
RESOLUTION NO. 03-21
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $11,085,000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 2003C
I, the undersigned, being the duly qualified and acting recording officer of the public
corporation issuing the bonds referred to in the title of this certificate, certify that the documents
attached hereto, as described above, have been carefully compared with the original records of
said corporation in my legal custody, from which they have been transcribed; that said
documents are a correct and complete transcript of the minutes of a meeting of the governing
body of said corporation, and correct and complete copies of all resolutions and other actions
taken and of all documents approved by the governing body at said meeting, so far as they relate
to said bonds; and that said meeting was duly held by the governing body at the time and place
and was attended throughout by the members indicated above, pursuant to call and notice of such
meeting given as required by law.
WITNESS my hand officially as such recording officer this 6th day of May, 2003.
City Clerk
It was reported that 4 (four) sealed proposals for the purchase of$11,085,000
General Obligation Improvement Bonds, Series 2003C were received prior to 10:30 o'clock
a.m., pursuant to the Official Statement distributed to potential purchasers of the Obligations by
Springsted Incorporated, financial consultants to the Issuer. The proposals have been publicly
opened,read and tabulated and were found to be as follows:
See Attached
85 E.SEVENTH PLACE,SUITE 100
SAINT PAUL,MN SS101-2887
6S1.223.3000 FAX:6S1.223.3002
E-MAIL: advisors@springsted.com
SPRINGSTED
Advisors to the Public Sector
$11,085,000
CITY OF GOLDEN VALLEY, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS,SERIES 2003C
(BOOK ENTRY ONLY)
AWARD: U.S. BANCORP PIPER JAFFRAY INC.
WELLS FARGO BROKERAGE SERVICES, LLC
SALE: May 6,2003 Moody's Rating: Aa1
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
U.S. BANCORP PIPER JAFFRAY INC. 2.25% 2005-2007 $11,015,053.65 $3,466,655.52 3.6493%
WELLS FARGO BROKERAGE 3.00% 2008-2010
SERVICES, LLC 3.25% 2011
3.40% 2012
3.60% 2013
3.70% 2014
3.80% 2015
4.00% 2016-2018
4.125% 2019
RBC DAIN RAUSCHER INC. 2.00% 2005-2006 $11,057,192.20 $3,501,866.13 3.6774%
ABN-AMRO FINANCIAL SERVICES 2.50% 2007
GRIFFIN, KUBIK, STEPHENS & 2.75% 2008
THOMPSON, INC. 3.00% 2009
STIFEL, NICOLAUS&CO., INC. 3.25% 2010
HARRIS TRUST&SAVINGS BANK 3.50% 2011-2012
3.75% 2013
4.00% 2014-2018
4.10% 2019
(Continued)
CORPORATE OFF/CE: SAINT PAUL,MN • Visit our website at www.springsted.com
DES MOINES,IA • MILWAUKEE,WI • MINNEAPOLIS,MN • OVERLAND PARK,KS • VIRGINIA BEACH,VA • WASHINGTON,DC
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
UBS PAINEWEBBER INCORPORATED 2.00% 2005-2006 $11,008,452.25 $3,515,856.08 3.7014%
MORGAN STANLEY- 2.50% 2007
MORGAN STANLEY DW INC. 3.00% 2008-2009
CITIGROUP GLOBAL MARKETS, INC. 3.25% 2010-2011
CRONIN & COMPANY, INCORPORATED 3.45% 2012
CIBC World Markets 3.50% 2013
Citizens Bank 3.70% 2014
Charles Schwab & Company 4.00% 2015-2017
Kirlin Securities, Inc. 4.10% 2018
4.20% 2019
MERRILL LYNCH & CO. 2.00% 2005 $10,968,607.50 $3,557,363.33 3.7615%
Jackson Securities, Inc. 2.25% 2006
2.50% 2007
2.75% 2008
3.50% 2009-2012
3.625% 2013
3.70% 2014
3.80% 2015
3.875% 2016
4.00% 2017-2019
-----------------------------------------------------------------------------------------------------------------------------------------------------------------
REOFFERING SCHEDULE OF THE PURCHASER
Rate Year Yield
2.25% 2005 1.30%
2.25% 2006 1.60%
2.25% 2007 2.05%
3.00% 2008 2.40%
3.00% 2009 2.70%
3.00% 2010 Par
3.25% 2011 Par
3.40% 2012 Par
3.60% 2013 Par
3.70% 2014 3.75%
3.80% 2015 3.85%
4.00% 2016 Par
4.00% 2017 Par
4.00% 2018 4.10%
4.125% 2019 4.20%
BBI: 4.58%
Average Maturity: 8.530 Years
Councilmember Johnson introduced the following resolution and moved its adoption,which
motion was seconded by Councilmember LeSuer:
RESOLUTION AUTHORIZING ISSUANCE, AWARDING SALE,
PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE
PAYMENT OF $11,085,000 GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 2003C
BE IT RESOLVED by the City Council, City of Golden Valley, Hennepin County,
Minnesota(the City), as follows:
SECTION 1. AUTHORIZATION AND SALE.
1.01. Authorization. The City Council, by resolution adopted on April 1, 2003,
authorized the issuance and sale of its $11,085,000 General Obligation Improvement Bonds,
Series 2003 (the Bonds), pursuant to Minnesota Statutes, Chapters 429 and 475. Proceeds of the
Bonds will be used to finance the construction of various street and driveway improvements (the
Projects) within the City.
1.02. Sale. The City has retained Springsted Incorporated as independent financial
advisor in connection with the sale of the Bonds. Pursuant to Minnesota Statutes, Section
475.60, subdivision 2, paragraph (9), the requirements as to public sale do not apply to the
issuance of the Bonds. Pursuant to the Official Statement, sealed bids for the purchase of the
Bonds were received at or before the time specified for receipt of bids. The proposals have been
opened, publicly read and considered and the purchase price, interest rates and net interest cost
under the terms of each proposal have been determined. The most favorable proposal received is
that of U.S. Bancorp Piper Jaffray Inc., in Minneapolis, Minnesota(the Purchaser), to purchase
the Bonds at a price of$11,015,053.65 plus accrued interest on all Bonds to the day of delivery
and payment, on the further terms and conditions hereinafter set forth. The proposal is hereby
accepted and the Mayor and City Manager are hereby authorized and directed on behalf of the
City to execute a contract for the sale of the Bonds with the Purchaser. The good faith deposit of
the Purchaser shall be retained and deposited by the City until the Bonds have been delivered,
and shall be deducted from the purchase price paid at settlement.
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, now 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 and Payment. The Bonds shall be
originally dated as of June 1, 2003, 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
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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:
Year Amount Rate Year Amount Rate
2005 $600,000 2.25% 2012 $ 800,000 3.40 %
2006 800,000 2.25 2013 810,000 3.60
2007 775,000 2.25 2014 825,000 3.70
2008 785,000 3.00 2015 710,000 3.80
2009 775,000 3.00 2017 1,250,000 4.00
2010 780,000 3.00 2018 675,000 4.00
2011 800,000 3.25 2019 700,000 4.125
The Bonds shall be issuable only in fully registered form. The interest thereon and, upon
surrender of each Bond, the principal amount thereof, shall be payable by check or draft issued
by the Registrar described herein;provided that, so long as the Bonds are registered in the name
of a securities depository, or a nominee thereof, in accordance with Section 2.08 hereof, principal
and interest shall be payable in accordance with the operational arrangements of the securities
depository.
2.03. Dates and Interest Payment Dates. Upon initial delivery of the Bonds pursuant to
Section 2.07 and upon any subsequent transfer or exchange pursuant to Section 2.06, the date of
authentication shall be noted on each Bond so delivered, exchanged or transferred. Interest on
the Bonds shall be payable on February 1 and August 1 in each year, commencing February 1,
2004, each such date being referred to herein as an Interest Payment Date, to the persons in
whose names the Bonds are registered on the Bond Register, as hereinafter defined, at the
Registrar's close of business on the fifteenth day of the month immediately preceding the Interest
Payment Date,whether or not such day is a business day. Interest shall be computed on the basis
of a 360-day year composed of twelve 30-day months.
2.04. Redemption. Bonds maturing in 2013 and later years shall be subject to
redemption and prepayment at the option of the City, in whole or in part, in such order of
maturity dates as the City may select and, within a maturity,by lot as selected by the Registrar
(or, if applicable,by the bond depository in accordance with its customary procedures) in
multiples of$5,000, on February 1, 2012, and on any date thereafter, at a price equal to the
principal amount thereof and accrued interest to the date of redemption. The City Clerk shall
cause notice of the call for redemption thereof to be published as required by law, and at least
thirty and not more than 60 days prior to the designated redemption date, shall cause notice of
call for redemption to be mailed,by first class mail, to the registered holders of any Bonds to be
redeemed at their addresses as they appear on the bond register described in Section 2.06 hereof,
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. Official
notice of redemption having been given as aforesaid, the Bonds or portions of Bonds so to be
redeemed shall, on the redemption date, become due and payable at the redemption price therein
specified and from and after such date (unless the City shall default in the payment of the
redemption price) such Bonds or portions of Bonds shall cease to bear interest. Upon partial
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redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge,
representing the remaining principal amount outstanding.
Bonds maturing on February 1, 2017 (the Term Bonds) shall be subject to mandatory
redemption prior to maturity pursuant to the sinking fund requirements of this Section 2.04 at a
redemption price equal to the stated principal amount thereof plus interest accrued thereon to the
redemption date, without premium. The Registrar shall select for redemption,by lot or other
manner deemed fair, on February 1 in each of the following years the following stated principal
amounts of such Bonds:
Term Bonds Maturing February 1, 2017
Year Principal Amount
2016 $610,000
The remaining $640,000 stated principal amount of such Bonds shall be paid at maturity on
February 1, 2017.
Notice of redemption shall be given as provided in the preceding paragraph.
2.05. Appointment of Initial Re istrar. The City hereby appoints U.S. Bank National
Association, in St. Paul, Minnesota, as the initial bond registrar, transfer agent and paying agent
(the Registrar). The Mayor and City Manager are authorized to execute and deliver, on behalf of
the City, 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 organized under the
laws of the United States or one of the states of the United States and 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 the Registrar, effective upon not less than
thirty days' written notice and upon the appointment and acceptance 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.
2.06. Registration. The effect of registration and the rights and duties of the City and the
Registrar with respect thereto shall be as follows:
(a) Re ister. The Registrar shall keep at its principal corporate trust office a
register(the 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. The term Holder or Bondholder as used herein
shall mean the person (whether a natural person, corporation, association,partnership,
trust, governmental unit, or other legal entity) in whose name a Bond is registered in the
Bond Register.
(b) Transfer of Bonds. Upon surrender for transfer of any Bond duly endorsed by
the Holder thereof or accompanied by a written instrument of transfer, in form
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satisfactory to the Registrar, duly executed by the Holder thereof or by an attorney duly
authorized by the Holder 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.
(c) Exchange of Bonds. At the option of the Holder of any Bond in a
denomination greater than $5,000, such Bond may be exchanged for other Bonds of
authorized denominations, of the same maturity and a like aggregate principal amount,
upon surrender of the Bond to be exchanged at the office of the Registrar. Whenever any
Bond is so surrendered for exchange the City shall execute and the Registrar shall
authenticate and deliver the Bonds which the Bondholder making the exchange is entitled
to receive.
(d) Cancellation. All Bonds surrendered for payment, transfer or exchange shall
be promptly canceled by the Registrar and thereafter disposed of. The Registrar shall
furnish the City at least once each year a certificate setting forth the principal amounts
and numbers of Bonds canceled and destroyed.
(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 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 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 the Bond,whether the Bond shall be overdue or not, for the purpose of
receiving payment of or on account of, the principal of and interest on the Bond and for
all other purposes; and all payments made to or upon the order of such Holder shall be
valid and effectual to satisfy and discharge the liability 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 destroyed, stolen or lost, 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 Bond
destroyed, stolen or lost, upon the payment of the reasonable expenses and charges of the
Registrar in connection therewith; and, in the case of a Bond destroyed, stolen or lost,
upon filing with the Registrar of evidence satisfactory to it that the Bond 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
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both the City and the Registrar shall be named as obligees. All Bonds so surrendered to
the Registrar shall be canceled by it and evidence of such cancellation shall be given to
the City. 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 authenticating
agent for the Bonds, within the meaning of Minnesota Statutes, Section 475.55,
Subdivision 1, as amended.
0) Valid Obligations. All Bonds issued upon any transfer or exchange of Bonds
shall be the valid obligations of the City, evidencing the same debt, and entitled to the
same benefits under this Resolution as the Bonds surrendered upon such transfer or
exchange.
2.07. Execution, Authentication 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 Manager,provided that the signatures may be printed, engraved or
lithographed facsimiles of the originals. In case any officer whose signature or a facsimile of
whose signature shall appear on any Bond shall cease to be such officer before the delivery of
such 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 the date of delivery of such Bond.
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
the Bond, substantially in the form provided in Section 2.09, has been 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 any Bond shall be conclusive evidence that it has been duly authenticated and
delivered under this Resolution. When the Bonds have been prepared, executed and
authenticated,the Finance Director shall deliver them to the Purchaser upon payment of the
purchase price in accordance with the contract of sale heretofore executed, and the Purchaser
shall not be obligated to see to the application of the purchase price.
2.08. Securities Depository. (a) For purposes of this section the following terms shall
have the following meanings:
"Beneficial Owner" shall mean, whenever used with respect to a Bond, the person in
whose name such Bond is recorded as the beneficial owner of such Bond by a Participant on the
records of such Participant, or such person's subrogee.
"Cede & Co." shall mean Cede &Co., the nominee of DTC, and any successor nominee
of DTC with respect to the Bonds.
"DTC" shall mean The Depository Trust Company of New York,New York.
"Participant" shall mean any broker-dealer,bank or other financial institution for which
DTC holds Bonds as securities depository.
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"Representation Letter" shall mean the Representation Letter pursuant to which the City
agrees to comply with DTC's Operational Arrangements.
(b) The Bonds shall be initially issued as separately authenticated fully registered bonds,
and one Bond shall be issued in the principal amount of each stated maturity of the Bonds. Upon
initial issuance, the ownership of such Bonds shall be registered in the bond register in the name
of Cede & Co., as nominee of DTC. The Registrar and the City may treat DTC (or its nominee)
as the sole and exclusive owner of the Bonds registered in its name for the purposes of payment
of the principal of or interest on the Bonds, selecting the Bonds or portions thereof to be
redeemed, if any, giving any notice permitted or required to be given to registered owners of
Bonds under this resolution, registering the transfer of Bonds, and for all other purposes
whatsoever; and neither the Registrar nor the City shall be affected by any notice to the contrary.
Neither the Registrar nor the City shall have any responsibility or obligation to any Participant,
any person claiming a beneficial ownership interest in the Bonds under or through DTC or any
Participant, or any other person which is not shown on the bond register as being a registered
owner of any Bonds, with respect to the accuracy of any records maintained by DTC or any
Participant, with respect to the payment by DTC or any Participant of any amount with respect to
the principal of or interest on the Bonds, with respect to any notice which is permitted or
required to be given to owners of Bonds under this resolution,with respect to the selection by
DTC or any Participant of any person to receive payment in the event of a partial redemption of
the Bonds, or with respect to any consent given or other action taken by DTC as registered owner
of the Bonds. So long as any Bond is registered in the name of Cede & Co., as nominee of DTC,
the Registrar shall pay all principal of and interest on such Bond, and shall give all notices with
respect to such Bond, only to Cede & Co. in accordance with DTC's Operational Arrangements,
and all such payments shall be valid and effective to fully satisfy and discharge the City's
obligations with respect to the principal of and interest on the Bonds to the extent of the sum or
sums so paid. No person other than DTC shall receive an authenticated Bond for each separate
stated maturity evidencing the obligation of the City to make payments of principal and interest.
Upon delivery by DTC to the Registrar of written notice to the effect that DTC has determined to
substitute a new nominee in place of Cede & Co., the Bonds will be transferable to such new
nominee in accordance with paragraph(e) hereof.
(c) In the event the City determines that it is in the best interest of the Beneficial Owners
that they be able to obtain Bonds in the form of bond certificates, the City may notify DTC and
the Registrar,whereupon DTC shall notify the Participants of the availability through DTC of
Bonds in the form of certificates. In such event, the Bonds will be transferable in accordance
with paragraph (e) hereof. DTC may determine to discontinue providing its services with respect
to the Bonds at any time by giving notice to the City and the Registrar and discharging its
responsibilities with respect thereto under applicable law. In such event the Bonds will be
transferable in accordance with paragraph(e) hereof.
(d) The execution and delivery of the Representation Letter to DTC, if not previously
filed with DTC,by the Mayor or City Manager is hereby authorized and directed.
(e) In the event that any transfer or exchange of Bonds is permitted under paragraph (b)
or(c)hereof, such transfer or exchange shall be accomplished upon receipt by the Registrar of
the Bonds to be transferred or exchanged and appropriate instruments of transfer to the permitted
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transferee in accordance with the provisions of this resolution. In the event Bonds in the form of
certificates are issued to owners other than Cede & Co., its successor as nominee for DTC as
owner of all the Bonds, or another securities depository as owner of all the Bonds, the provisions
of this resolution shall also apply to all matters relating thereto, including, without limitation, the
printing of such Bonds in the form of bond certificates and the method of payment of principal of
and interest on such Bonds in the form of bond certificates.
2.09. Form of Bonds. The Bonds shall be prepared in substantially the following form:
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UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
CITY OF GOLDEN VALLEY
GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2003C
Interest Rate Maturity Date Date of Original Issue CUSIP No.
% February 1, 20_ June 1, 2003
REGISTERED OWNER: CEDE & CO.
PRINCIPAL AMOUNT: THOUSAND DOLLARS
CITY OF GOLDEN VALLEY, Hennepin County, State of 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 on
the maturity date specified above and promises to pay interest thereon from the date of original
issue specified above or from the most recent Interest Payment Date(as hereinafter defined) to
which interest has been paid or duly provided for, at the annual interest rate specified above,
payable on February 1 and August 1 in each year, commencing February 1, 2004 (each such
date, an Interest Payment Date), all subject to the provisions referred to herein with respect to the
redemption of the principal of this Bond before maturity. The interest so payable on any Interest
Payment Date shall be paid to the person in whose name this Bond is registered at the close of
business on the fifteenth day(whether or not a business day) of the calendar month immediately
preceding the Interest Payment Date. Interest hereon shall be computed on the basis of a 360-
day year composed of twelve 30-day months. The interest hereon and, upon presentation and
surrender hereof at the principal office of the agent of the Registrar described below, the
principal hereof are payable in lawful money of the United States of America by check or draft
drawn on U.S. Bank National Association, in St. Paul, Minnesota, as bond registrar, transfer
agent and paying agent, or its successor designated under the Resolution described herein(the
Registrar).
This Bond is one of an issue (the Bonds) in the aggregate principal amount of
$11,085,000 issued pursuant to a resolution adopted by the City Council on May 6, 2003 (the
Resolution), to finance the construction of various street and driveway improvements within the
City and is issued pursuant to and in full conformity with the Constitution and laws of the State
of Minnesota thereunto enabling, including Minnesota Statutes, Chapters 429 and 475. The
Bonds are issuable only in fully registered form, in the denomination of$5,000 or any integral
multiple thereof, of single maturities.
Bonds maturing in 2013 and later years shall be subject to redemption and prepayment at
the option of the City, in whole or in part, in such order of maturity dates as the City may select
and, within a maturity,by lot as selected by the Registrar(or, if applicable, by the bond
depository in accordance with its customary procedures) in multiples of$5,000, on February 1,
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2012, and on any date thereafter, at a price equal to the principal amount thereof and accrued
interest to the date of redemption. The City shall cause notice of the call for redemption thereof
to be published as required by law, and at least thirty and not more than 60 days prior to the
designated redemption date, shall cause notice of call for redemption to be mailed,by first class
mail, to the registered holders of any Bonds, at the holders' addresses as they appear on the bond
register maintained by the Bond 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 Bond not
affected by such defect or failure. Official notice of redemption having been given as aforesaid,
the Bonds or portions of Bonds so to be redeemed shall, on the redemption date,become due and
payable at the redemption price therein specified and from and after such date (unless the City
shall default in the payment of the redemption price) such Bonds or portions 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, representing the remaining principal amount outstanding.
[COMPLETE THE FOLLOWING PROVISIONS IF THERE ARE TERM BONDS-
ADD ADDITIONAL PROVISIONS IF THERE ARE MORE THAN TWO TERM BONDS]
[Bonds maturing in the years 20 and 20 shall be subject to mandatory
redemption, at a redemption price equal to their principal amount plus interest accrued thereon to
the redemption date, without premium, on February 1 in each of the years shown below, in an
amount equal to the following principal amounts:
Term Bonds Maturing in 20-- Term Bonds Maturing in 20--
Sinking Fund Aggregate Sinking Fund Aggregate
Payment Date Principal Amount Payment Date Principal Amount
Notice of redemption shall be given as provided in the preceding paragraph.]
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 agent 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 registered 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 City will cause a new Bond or Bonds to be issued in the name of the designated
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 any such transfer or exchange.
The City 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 overdue or not, for the purpose of
receiving payment as herein provided and for all other purposes, and neither the City nor the
Registrar shall be affected by any notice to the contrary.
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Notwithstanding any other provisions of this Bond, so long as this Bond is registered in
the name of Cede & Co., as nominee of The Depository Trust Company, or in the name of any
other nominee of The Depository Trust Company or other securities depository, the Registrar
shall pay all principal of and interest on this Bond, and shall give all notices with respect to this
Bond, only to Cede & Co. or other nominee in accordance with the operational arrangements of
The Depository Trust Company or other securities depository as agreed to by the City.
IT IS HEREBY CERTIFIED,RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the Constitution and laws of the State of Minnesota to be done,
to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order
to make it a valid and binding general obligation of the City 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 improvements financed by the Bonds
and ad valorem taxes on all taxable property in the City, which special assessments and taxes
will be collectible for the years and in amounts sufficient to produce sums not less than five
percent in excess of the principal of and interest on the Bonds when due, and has appropriated
the special assessments to its General Obligation Improvement Bonds, Series 2003C Bond Fund
for the payment of principal and interest; that if necessary for payment of principal and interest,
additional ad valorem taxes are required to be levied upon all taxable property in the City,
without limitation as to rate or amount; that the issuance of this Bond, together with all other
indebtedness of the City outstanding on the date hereof and on the date of its actual issuance and
delivery, does not cause the indebtedness of the City to exceed any constitutional, charter or
statutory limitation of indebtedness; and that the opinion printed hereon is a full, true and correct
copy of the legal opinion given by Bond Counsel with reference to the Bonds, dated as of the
date of original delivery of the Bonds.
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 manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City has caused this Bond to be executed on its behalf by
the facsimile signatures of its Mayor and City Manager.
CITY OF GOLDEN VALLEY, MINNESOTA
(facsimile signature—Mayor) (facsimile signature—City Manager)
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
Date of Authentication: U.S. BANK NATIONAL ASSOCIATION,
as Registrar
By
Authorized Representative
11
[insert legal opinion]
The following abbreviations, when used in the inscription on the face of this Bond, shall be
construed as though they were written out in full according to the applicable laws or regulations:
TEN COM - as tenants in common UTMA ................... as Custodian for .....................
(Cust) (Minor)
TEN ENT - as tenants by the entireties under Uniform Transfers to Minors Act ..............
(State)
JT TEN-- as joint tenants with right of survivorship and not as tenants in common
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 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 an "eligible guarantor institution" meeting the requirements
of the Registrar,which requirements include membership or participation in STAMP or such
other"signature guaranty program" as may be determined by the Registrar in addition to or in
substitution for STAMP, all in accordance with the Securities Exchange Act of 1934, as
amended.
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF
ASSIGNEE:
[end of bond form]
SECTION 3. GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2003C
CONSTRUCTION FUND. There is hereby established on the official books and records of the
City a separate fund designated the General Obligation Improvement Bonds, Series 2003C
Construction Fund (the Construction Fund). To the Construction Fund there shall be credited
from the proceeds of the Bonds, exclusive of unused discount, accrued and capitalized interest, if
any, an amount equal to the estimated cost of the improvements. There shall also be credited to
the Construction Fund all special assessments collected with respect to the Projects until all costs
12
of the Projects have been fully paid. All proceeds of the Bonds deposited in the Construction
Fund will be expended solely for the payment of the costs of the improvements, and all
construction costs and expenses for the improvements shall be paid from the Construction Fund.
To the extent required by Minnesota Statutes, Section 429.091, subdivision 4, the City shall
maintain a separate account within the Construction Fund to record expenditures for each
improvement. The Finance Director shall maintain the Construction Fund until all costs and
expenses incurred by the City in connection with the construction of the improvements have
been paid. 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 General
Obligation Improvement Bonds, Series 2003C Bond Fund.
SECTION 4. GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2003C BOND
FUND. There is hereby established on the official books and records of the City a separate fund
designated the General Obligation Improvement Bonds, Series 2003C Bond Fund (the Bond
Fund). Into the Bond Fund shall be paid (a) the amounts specified in Section 3 above, (b)
capitalized interest, if any, accrued interest and unused bond discount received from the
Purchaser upon delivery of the Bonds, (c) any taxes collected pursuant to Section 6 hereof, and
(d) any other funds appropriated by the City Council for the payment of the Bonds. The money
on hand in the Bond Fund from time to time shall be used only to pay the principal of and
interest on the Bonds. If the balance on hand in the Bond Fund is at any time insufficient to pay
principal and interest then due on the Bonds, such amounts shall be paid from other money on
hand in other funds of the City, which other funds shall be reimbursed therefor when sufficient
money becomes available in the Bond Fund. The Bond Fund shall be maintained until the City
has paid, or made provision for the payment of, all of the principal of and interest on the Bonds.
There are hereby established two accounts in the Bond Fund, designated as the"Debt
Service Account"and the "Surplus Account." There shall initially be deposited into the Debt
Service Account upon the issuance of the Bonds the amount set forth in(b) above. Thereafter,
during each Bond Year(i.e., each twelve month period commencing on February 2 and ending
on the following February 1), as monies are received into the Bond Fund, the City Finance
Director shall first deposit such monies into the Debt Service Account until an amount has been
appropriated thereto sufficient to pay all principal and interest due on the Bonds through the end
of the Bond Year. All subsequent monies received in the Bond Fund during the Bond Year shall
be appropriated to the Surplus Account. If at any time the amount on hand in the Debt Service
Account is insufficient for the payment of principal and interest then due, the City Finance
Director shall transfer to the Debt Service Account amounts on hand in the Surplus Account to
the extent necessary to cure such deficiency. Investment earnings (and losses) on amounts from
time to time held in the Debt Service Account and Surplus Account shall be credited or charged
to said accounts.
If the aggregate 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 from any fund
of the City which is available for that purpose, subject to reimbursement from the Surplus
Account in the Bond Fund when the balance therein is sufficient, and the City Council covenants
and agrees that it will each year levy a sufficient amount of ad valorem taxes to take care of any
accumulated or anticipated deficiency, which levy is not subject to any constitutional or statutory
limitation.
13
SECTION 5. SPECIAL ASSESSMENTS. The City hereby covenants and agrees that, for the
payment of the costs of the Projects, the City 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. The City estimates it will levy
special assessments in the aggregate principal amount of$2,571,085. It is estimated that the
principal and interest on such special assessments will be levied in the years 2003-2004 and
collected in the years 2004-2014 in the amounts shown on Appendix I attached hereto. The
principal of the special assessments shall be made payable in annual installments, with interest as
established by this City Council in accordance with law on unpaid installments thereof from time
to time remaining unpaid. In the event any special 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 City or by this City Council or by any of the officers or
employees of the City, either in the making of such special assessment or in the performance of
any condition precedent thereto, the City 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
special assessment a valid and binding lien upon said property.
SECTION 6. PLEDGE OF TAXING POWERS. For the prompt and full payment of the
principal of and interest on the Bonds as such payments respectively come due, the full faith,
credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. In
order to produce aggregate amounts which, together with the collections of special assessments
and other amounts as set forth in Section 4,will produce amounts not less than 5% in excess of
the amounts needed to meet when due the principal and interest payments on the Bonds, ad
valorem taxes are hereby levied on all taxable property in the City. The taxes will be levied and
collected in the following years and amounts:
Levy Years Collection Years Amount
2002-2017 2003-2018 See attached Levy Computation
SECTION 7. DEFEASANCE. When all of the Bonds have been discharged as provided in this
Section, 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 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 from the due date 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 the
Registrar or with a bank qualified by law to act as an escrow agent for this purpose, cash or
securities which are authorized by law to be so deposited for such purpose,bearing interest
payable at such times and at such rates and maturing or callable at the holder's option on such
dates as shall be required to pay all principal and interest to become due thereon to maturity or, if
notice of redemption as herein required has been irrevocably provided for, to an earlier
designated redemption date. Provided,however, that if such deposit is made more than ninety
days before the maturity date or specified redemption date of the Bonds to be discharged, the
City shall have received a written opinion of Bond Counsel to the effect that such deposit does
14
not adversely affect the exemption of interest on any Bonds from federal income taxation and a
written report of an accountant or investment banking firm verifying that the deposit is sufficient
to pay when due all of the principal and interest on the Bonds to be discharged on and before
their maturity dates or earlier designated redemption date.
SECTION 8. TAX COVENANTS, ARBITRAGE MATTERS AND CONTINUING
DISCLOSURE.
8.01. General Tax Covenant. The City agrees with the registered owners 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 that would cause interest on the Bonds to become includable in gross income
of the recipient under the Internal Revenue Code of 1986, as amended (the Code) and applicable
Treasury Regulations (the Regulations), and agrees to take any and all actions within its powers
to ensure that the interest on the Bonds will not become includable in gross income of the
recipient under the Code and the Regulations. All proceeds of the Bonds deposited in the
Construction Fund will be expended solely for the payment of the costs of the Projects. The
Improvements are and will be owned and maintained by the City and available for use by
members of the general public on a substantially equal basis. The City shall not enter into any
lease, management contract, use agreement, capacity agreement or other agreement with any
non-governmental person relating to the use of the Improvements, or any portion thereof, or
security for the payment of the Bonds which might cause the Bonds to be considered"private
activity bonds"or"private loan bonds"pursuant to Section 141 of the Code.
8.02. Arbitrage Certification. The Mayor and City Manager 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 certificate in accordance with
Section 148 of the Code, and applicable 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.
8.03. Arbitrage Rebate Exemption. The City acknowledges that the Bonds are subject to
the rebate requirements of Section 148(f) of the Code. The City covenants and agrees to retain
such records,make such determinations, file such reports and documents and pay such amounts
at such times as are required under said Section 148(f) and applicable Regulations to preserve the
exclusion of interest on the Bonds from gross income for federal income tax purposes, unless the
Bonds qualify for an exception from the rebate requirement pursuant to one of the spending
exceptions set forth in Section 1.148-7 of the Regulations and no "gross proceeds" of the Bonds
(other than amounts constituting a"bona fide debt service fund") arise during or after the
expenditure of the original proceeds thereof.
8.04. Reimbursement. The City certifies that the proceeds of the Bonds will not be used
by the City to reimburse itself for any expenditure with respect to the Projects which the City
paid or will have paid more than 60 days prior to the issuance of the Bonds unless, with respect
to such prior expenditures, the City shall have made a declaration of official intent which
complies with the provisions of Section 1.150-2 of the Regulations; provided that this
certification shall not apply(i)with respect to certain de minimis expenditures, if any,with
15
respect to the Projects meeting the requirements of Section 1.150-2(f)(1)of the Regulations, or
(ii) with respect to "preliminary expenditures" for the Projects as defined in Section 1.150-2(f)(2)
of the Regulations, including engineering or architectural expenses and similar preparatory
expenses, which in the aggregate do not exceed 20% of the"issue price" of the Bonds.
8.05. Continuing Disclosure. (a) Purpose and Beneficiaries. To provide for the
public availability of certain information relating to the Bonds and the security therefor and to
permit the Purchaser and other participating underwriters in the primary offering of the Bonds to
comply with amendments to Rule 15c2-12 promulgated by the SEC under the Securities
Exchange Act of 1934 (17 C.F.R. § 240.15c2-12)relating to continuing disclosure (as in effect
and interpreted from time to time, the Rule),which will enhance the marketability of the Bonds,
the City hereby makes the following covenants and agreements for the benefit of the Owners (as
hereinafter defined) from time to time of the Outstanding Bonds. The City is the only obligated
person in respect of the Bonds within the meaning of the Rule for purposes of identifying the
entities in respect of which continuing disclosure must be made. The City has complied in all
material respects with any undertaking previously entered into by it under the Rule. If the City
fails to comply with any provisions of this section, any person aggrieved thereby, including the
Owners of any Outstanding Bonds,may take whatever action at law or in equity may appear
necessary or appropriate to enforce performance and observance of any agreement or covenant
contained in this section, including an action for a writ of mandamus or specific performance.
Direct, indirect, consequential and punitive damages shall not be recoverable for any default
hereunder to the extent permitted by law. Notwithstanding anything to the contrary contained
herein, in no event shall a default under this section constitute a default under the Bonds or under
any other provision of this resolution. As used in this section, Owner or Bondowner means, in
respect of a Bond, the registered owner or owners thereof appearing in the bond register
maintained by the Registrar or any Beneficial Owner(as hereinafter defined) thereof, if such
Beneficial Owner provides to the Registrar evidence of such beneficial ownership in form and
substance reasonably satisfactory to the Registrar. As used herein, Beneficial Owner means, in
respect of a Bond, any person or entity which(i)has the power, directly or indirectly,to vote or
consent with respect to, or to dispose of ownership of, such Bond (including persons or entities
holding Bonds through nominees, depositories or other intermediaries), or(ii) is treated as the
owner of the Bond for federal income tax purposes.
(b) Information To Be Disclosed. The City will provide, in the manner set forth
in subsection(c) hereof, either directly or indirectly through an agent designated by the City, the
following information at the following times:
(1) on or before 365 days after the end of each fiscal year of the City,
commencing with the fiscal year ending December 31, 2002, the following financial
information and operating data in respect of the City(the Disclosure Information):
(A)the audited financial statements of the City for such fiscal year,
containing balance sheets as of the end of such fiscal year and a statement of
operations, changes in fund balances and cash flows for the fiscal year then
ended, showing in comparative form such figures for the preceding fiscal year of
the City, prepared in accordance with generally accepted accounting principles
promulgated by the Financial Accounting Standards Board as modified in
16
accordance with the governmental accounting standards promulgated by the
Governmental Accounting Standards Board or as otherwise provided under
Minnesota law, as in effect from time to time, or, if and to the extent such
financial statements have not been prepared in accordance with such generally
accepted accounting principles for reasons beyond the reasonable control of the
City, noting the discrepancies therefrom and the effect thereof, and certified as to
accuracy and completeness in all material respects by the fiscal officer of the
City; and
(B) to the extent not included in the financial statements referred to in
paragraph (A)hereof, the information for such fiscal year or for the period most
recently available of the type contained in the Official Statement under the
headings: City Property Values, City Indebtedness, City Tax Rates, and Levies
and Collections, which information may be unaudited.
Notwithstanding the foregoing paragraph, if the audited financial statements are not available by
the date specified, the City shall provide on or before such date unaudited financial statements in
the format required for the audited financial statements as part of the Disclosure Information and,
within 10 days after the receipt thereof,the City shall provide the audited financial statements.
Any or all of the Disclosure Information may be incorporated by reference, if it is updated as
required hereby, from other documents, including official statements,which have been submitted
to each of the repositories hereinafter referred to under subsection(c) or the SEC. If the
document incorporated by reference is a final official statement, it must be available from the
Municipal Securities Rulemaking Board. The City shall clearly identify in the Disclosure
Information each document so incorporated by reference. If any part of the Disclosure
Information can no longer be generated because the operations of the City have materially
changed or been discontinued, such Disclosure Information need no longer be provided if the
City includes in the Disclosure Information a statement to such effect;provided, however, if such
operations have been replaced by other City operations in respect of which data is not included in
the Disclosure Information and the City determines that certain specified data regarding such
replacement operations would be a Material Fact(as defined in paragraph (2) hereof), then, from
and after such determination, the Disclosure Information shall include such additional specified
data regarding the replacement operations. If the Disclosure Information is changed or this
section is amended as permitted by this paragraph (b)(1) or subsection (d), then the City shall
include in the next Disclosure Information to be delivered hereunder, to the extent necessary, an
explanation of the reasons for the amendment and the effect of any change in the type of
financial information or operating data provided.
(2) In a timely manner, notice of the occurrence of any of the following events
which is a Material Fact (as hereinafter defined):
(A) Principal and interest payment delinquencies;
(B) Non-payment related defaults;
(C)Unscheduled draws on debt service reserves reflecting financial
difficulties;
(D)Unscheduled draws on credit enhancements reflecting financial
difficulties;
17
(E) Substitution of credit or liquidity providers, or their failure to perform;
(F)Adverse tax opinions or events affecting the tax-exempt status of the
security;
(G)Modifications to rights of security holders;
(H)Bond calls;
(I)Defeasances;
(J) Release, substitution, or sale of property securing repayment of the
securities; and
(K)Rating changes.
As used herein, a Material Fact is a fact as to which a substantial likelihood exists
that a reasonably prudent investor would attach importance thereto in deciding to buy, hold or
sell a Bond or, if not disclosed,would significantly alter the total information otherwise available
to an investor from the Official Statement, information disclosed hereunder or information
generally available to the public. Notwithstanding the foregoing sentence, a Material Fact is also
an event that would be deemed material for purposes of the purchase, holding or sale of a Bond
within the meaning of applicable federal securities laws, as interpreted at the time of discovery of
the occurrence of the event.
(3) In a timely manner, notice of the occurrence of any of the following events or
conditions:
(A) the failure of the City to provide the Disclosure Information required
under paragraph (b)(1) at the time specified thereunder;
(B)the amendment or supplementing of this section pursuant to subsection
(d), together with a copy of such amendment or supplement and any explanation
provided by the City under subsection(d)(2);
(C) the termination of the obligations of the City under this section
pursuant to subsection (d);
(D) any change in the accounting principles pursuant to which the
financial statements constituting a portion of the Disclosure Information are
prepared; and
(E) any change in the fiscal year of the City.
(c) Manner of Disclosure. The City agrees to make available the information
described in subsection (b) to the following entities by telecopy, overnight delivery, mail or other
means, as appropriate:
(1)the information described in paragraph (1) of subsection(b), to each then
nationally recognized municipal securities information repository under the Rule and to
any state information depository then designated or operated by the State of Minnesota as
contemplated by the Rule (the State Depository), if any;
(2) the information described in paragraphs (2) and (3) of subsection(b),to the
Municipal Securities Rulemaking Board and to the State Depository, if any; and
18
(3)the information described in subsection(b),to any rating agency then
maintaining a rating of the Bonds at the request of the City and, at the expense of such
Bondowner, to any Bondowner who requests in writing such information, at the time of
transmission under paragraphs (1) or(2) of this subsection (c), as the case may be, or, if
such information is transmitted with a subsequent time of release, at the time such
information is to be released.
(d) Term, Amendments; Interpretation.
(1) The covenants of the City in this section shall remain in effect so long as any
Bonds are Outstanding. Notwithstanding the preceding sentence,however, the
obligations of the City under this section shall terminate and be without further effect as
of any date on which the City delivers to the Registrar an opinion of Bond Counsel to the
effect that,because of legislative action or final judicial or administrative actions or
proceedings, the failure of the City to comply with the requirements of this section will
not cause participating underwriters in the primary offering of the Bonds to be in
violation of the Rule or other applicable requirements of the Securities Exchange Act of
1934, as amended, or any statutes or laws successory thereto or amendatory thereof.
(2) This section(and the form and requirements of the Disclosure Information)
may be amended or supplemented by the City from time to time, without notice to
(except as provided in paragraph(c)(3)hereof) or the consent of the Owners of any
Bonds,by a resolution of this Council filed in the office of the recording officer of the
City accompanied by an opinion of Bond Counsel, who may rely on certificates of the
City and others and the opinion may be subject to customary qualifications, to the effect
that: (i) such amendment or supplement(a) is made in connection with a change in
circumstances that arises from a change in law or regulation or a change in the identity,
nature or status of the City or the type of operations conducted by the City, or(b) is
required by, or better complies with, the provisions of paragraph (b)(5) of the Rule; (ii)
this section as so amended or supplemented would have complied with the requirements
of paragraph(b)(5) of the Rule at the time of the primary offering of the Bonds, giving
effect to any change in circumstances applicable under clause (i)(a) and assuming that the
Rule as in effect and interpreted at the time of the amendment or supplement was in
effect at the time of the primary offering; and (iii) such amendment or supplement does
not materially impair the interests of the Bondowners under the Rule.
If the Disclosure Information is so amended, the City agrees to provide,
contemporaneously with the effectiveness of such amendment, an explanation of the
reasons for the amendment and the effect, if any, of the change in the type of financial
information or operating data being provided hereunder.
(3) This section is entered into to comply with the continuing disclosure
provisions of the Rule and should be construed so as to satisfy the requirements of
paragraph (b)(5) of the Rule.
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SECTION 9. CERTIFICATION OF PROCEEDINGS.
9.01. Registration of Bonds. The City Clerk is hereby authorized and directed to file a
certified copy of this resolution with the County Auditor of Hennepin County and obtain a
certificate that the Bonds have been duly entered upon the Auditor's bond register.
9.02. Authentication of Transcript. The officers of the City and the County Auditor are
hereby authorized and directed to prepare and furnish to the Purchaser and to Dorsey&Whitney
LLP, 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 Bonds, 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 City
as to the correctness of all statements contained therein.
9.03. Official Statement. The Official Statement relating to the Bonds, dated April 22,
2003, prepared and distributed by Springsted Incorporated,the financial consultant for the City,
is hereby approved. Springsted Incorporated is hereby authorized on behalf of the City to
prepare and deliver to the Purchaser within seven business days from the date hereof, a
supplement to the Official Statement listing the offering price, the interest rates, selling
compensation, delivery date,the underwriters and such other information relating to the Bonds
required to be included in the Official Statement by Rule 15c2-12 adopted by the SEC under the
Securities Exchange Act of 1934. The officers of the City are hereby authorized and directed to
execute such certificates as may be appropriate concerning the accuracy, completeness and
sufficiency of the Official Statement.
Upon vote being taken thereon, the following voted in favor thereof: Mayor Loomis and
Councilmembers Grayson, Johnson, LeSuer, and Tremere
and the following voted against the same: none
whereupon the Resolution was declared duly passed and adopted.
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Appendix I
City of Golden Valley, Minnesota
General Obligation Improvement Bonds, Series 2003C
ASSESSMENT INCOME
Date Principal Coupon Interest Total P+I
12/31/2003 - - - -
12/31/2004 128,554.25 7.000% 112,484.97 241,039.22
12/31/2005 257,108.50 7.000% 193,474.15 450,582.65
12/31/2006 257,108.50 7.000% 152,979.56 410,088.06
12/31/2007 257,108.50 7.000% 134,981.96 392,090.46
12/31/2008 257,108.50 7.000% 116,984.36 374,092.86
12/31/2009 257,108.50 7.000% 98,986.76 356,095.26
12/31/2010 257,108.50 7.000% 80,989.18 338,097.68
12/31/2011 257,108.50 7.000% 62,991.60 320,100.10
12/31/2012 257,108.50 7.000% 44,994.00 302,102.50
12/31/2013 257,108.50 7.000% 26,996.40 284,104.90
12/31/2014 128,554.25 7.000% 8,998.80 137,553.05
Total 2,571,085.00 - 1,034,861.74 3,605,946.74
Springsted Incorporated File=GOLDEN VALLEY.SF-2003C Assessments-Issue Summary
Advisors to the Public Sector 5/6/2003 2:11 PM
$11,085,000
City of Golden Valley, Minnesota
General Obligation Improvement Bonds, Series 2003C
POST-SALE TAX LEVIES
Date Principal Coupon Interest Total P+I 105%Overlevy Revenue Levy Amount Levy Year
2/01/2004 - - 243,251.67 243,251.67 255,414.25 - 255,414.25 2002 '
2/01/2005 600,000.00 2.250% 364,877.50 964,877.50 1,013,121.38 241,039.22 772,082.16 2003
2/01/2006 800,000.00 2.250% 351,377.50 1,151,377.50 1,208,946.38 450,582.65 758,363.73 2004
2/01/2007 775,000.00 2.250% 333,377.50 1,108,377.50 1,163,796.38 410,088.06 753,708.32 2005
2/01/2008 785,000.00 3.000% 315,940.00 1,100,940.00 1,155,987.00 392,090.46 763,896.54 2006
2/01/2009 775,000.00 3.000% 292,390.00 1,067,390.00 1,120,759.50 374,092.86 746,666.64 2007
2/01/2010 780,000.00 3.000% 269,140.00 1,049,140.00 1,101,597.00 356,095.26 745,501.74 2008
2/01/2011 800,000.00 3.250% 245,740.00 1,045,740.00 1,098,027.00 338,097.68 759,929.32 2009
2/01/2012 800,000.00 3.400% 219,740.00 1,019,740.00 1,070,727.00 320,100.10 750,626.90 2010
2/01/2013 810,000.00 3.600% 192,540.00 1,002,540.00 1,052,667.00 302,102.50 750,564.50 2011
2/01/2014 825,000.00 3.700% 163,380.00 988,380.00 1,037,799.00 284,104.90 753,694.10 2012
2/01/2015 710,000.00 3.800% 132,855.00 842,855.00 884,997.75 137,553.05 747,444.70 2013
2/01/2016 610,000.00 4.000% 105,875.00 715,875.00 751,668.75 - 751,668.75 2014
2/01/2017 640,000.00 4.000% 81,475.00 721,475.00 757,548.75 - 757,548.75 2015
2/01/2018 675,000.00 4.000% 55,875.00 730,875.00 767,418.75 - 767,418.75 2016
2/01/2019 700,000.00 4.125% 28,875.00 728,875.00 765,318.75 - 765,318.75 2017
Total 11,085,000.00 - 3,396,709.17 14,481,709.17 15,205,794.63 3,605,946.74 11,599,847.89 -
Levied in anticipation.
Springsted Incorporated File=GOLDEN VALLEY.SF-Series 2003C Post Sale-SINGLE PURPOSE
Advisors to the Public Sector 5/6/2003 1:46 PM