RES 1990-97 - 00004025238
RESOWFICN NO. 97 - 1990
rd=LMION PR.7VIDING FUR THE ISSUA1= AM ME OF
$1, 615,000 GENERAL OBISG'ATICN MATER REVENUE BOMB,
SERIFS 1991A
BE IT RFSOLVED by the City Council (the "Council ") of the City of
Fridley, Minnesota (the "City "), as follows:
1. It is hereby determined:
(a) That the improvements to the City's municipal water system
( the " Improvements ") described in the Council's November 5,
1990, resolution relating to these Bonds have been duly
ordered by the City and have been constructed by the City or
will be constructed under contracts which the City has or will
let therefor, all pursuant to and in accordance with Minnesota
Statutes, Section 444.075.
(b) That is it necessary and expedient to the sound financial
management of the affairs of the City that the City issue its
bonds pursuant to Minnesota Statutes, Section 444.075 and
Chapter 475, to provide financing for the Improvements.
2. Acceptance of Offer. The bid of Norwest Investment Services, Inc.
(the "Purchaser ") to purchase the City's $1,615,000 General Obligation Water
' Revenue Bonds, Series 1991A (the "Bonds "), as described in the notice of sale
thereof, is hereby found and determined to be the highest and best bid received
pursuant to duly advertised notice of sale and shall be and is hereby accepted,
such bid being to purchase the Bonds at a price of $1,591,195.10 plus accrued
interest to date of delivery, the Bonds to bear interest, to mature in the years
and amounts, and to be subject to such other terms and conditions as hereinafter
provided. The sum of $420.10, being the amount bid in excess of $1,590,775,
shall be credited to the Debt Service Account hereinafter created. The City
Finance Director is directed to retain the good faith check of the Purchaser
pending completion of the sale and delivery of the Bonds and to return the
checks of the unsuccessful bidders forthwith.
3. Title; Original Issue Date; Denominations; Maturities. The
Bonds shall be titled "General obligation Water Revenue Bonds, Series 1991A,"
shall be dated January 1, 1991, as the date of original issue and shall be
issued forthwith on or after such date as fully registered bonds. The Bonds
shall be numbered from R -1 upward in the dexK=nation of $5,000 each or in any
integral multiple thereof of a single maturity. The Bonds shall mature on
February 1 in the years and amounts as follows:
239
4. Purpose. The Bonds shall provide funds to finance the
Improvements. The total cost of the Improvements, which shall include all costs
enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least
equal to the amount of the Bonds. Work on the Improvements shall proceed with
due diligence to completion.
5. Interest. The Bonds shall bear interest payable semiannually
on February 1 and August 1 of each year (each, an "Interest Payment Date "),
ccmw=ing August 1, 1991, calculated on the basis of a 360 -day year consisting
of twelve 30-day months, at the respective rates per annum set forth opposite
the maturity years, as follows:
Page 2 — Resolution No. 97 - 1990
Interest
Maturity
'
Year
Amount
Year
Amount
Rate
1992
$35,000
2002
$ 75,000
6.40%
1993
45,000
2003
80,000
6.50
1994
45,000
2004
90,000
6.50
1995
50,000
2005
95,000
6.70
1996
55,000
2006
100,000
6.70
1997
55,000
2007
110,000
6.80
1998
60,000
2008
115,000
6.80
1999
65,000
2009
125,000
6.80
2000
70,000
2010
130,000
6.80
2001
75,000
2011
140,000
4. Purpose. The Bonds shall provide funds to finance the
Improvements. The total cost of the Improvements, which shall include all costs
enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least
equal to the amount of the Bonds. Work on the Improvements shall proceed with
due diligence to completion.
5. Interest. The Bonds shall bear interest payable semiannually
on February 1 and August 1 of each year (each, an "Interest Payment Date "),
ccmw=ing August 1, 1991, calculated on the basis of a 360 -day year consisting
of twelve 30-day months, at the respective rates per annum set forth opposite
the maturity years, as follows:
6. Redemption. All Bonds maturing after February 1, 2000, shall
be subject to redemption and prepayment at the option of the City on said date
and on any date thereafter at a price of par plus accrued interest to date of
redemption. Redemption may be in whole or in part of the Bonds subject to
prepayment. If redemption is in part, the City shall determine the amount of
Bonds of each maturity to be prepaid; and if only part of the Bonds having a
common maturity date are called for prepayment, the specific Bonds to be prepaid
shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called
for redemption shall be due and payable on the redemption date, and interest
thereon shall cease to accrue from and after the redemption date. Published
' notice of redemption shall in each case be given in accordance with law, and
mailed notice of redemption shall be given to the paying agent and to each
affected registered owner of the Bonds.
Maturity
Interest
Maturity
Interest
Year
Rate
Year
Rate
1992
5.50%
2002
6.40%
1993
5.60
2003
6.50
1994
5.70
2004
6.50
1995
5.80
2005
6.70
1996
5.90
2006
6.70
1997
6.00
2007
6.80
1998
6.05
2008
6.80
1999
6.10
2009
6.80
2000
6.20
2010
6.80
2001
6.30
2011
6.80
6. Redemption. All Bonds maturing after February 1, 2000, shall
be subject to redemption and prepayment at the option of the City on said date
and on any date thereafter at a price of par plus accrued interest to date of
redemption. Redemption may be in whole or in part of the Bonds subject to
prepayment. If redemption is in part, the City shall determine the amount of
Bonds of each maturity to be prepaid; and if only part of the Bonds having a
common maturity date are called for prepayment, the specific Bonds to be prepaid
shall be chosen by lot by the Bond Registrar. Bonds or portions thereof called
for redemption shall be due and payable on the redemption date, and interest
thereon shall cease to accrue from and after the redemption date. Published
' notice of redemption shall in each case be given in accordance with law, and
mailed notice of redemption shall be given to the paying agent and to each
affected registered owner of the Bonds.
Page 3 — Resolution No. 97 - 1990
' To effect a partial redeitptian of Hands having a oCMM maturity
date, the Bond Registrar, prior to giving notice of redemption, shall assign to
each Bond of that maturity a distinctive number for each $5,000 of the principal
amount of such Bond. The Bond Registrar shall then select by lot, using such
method of selection as it shall deem proper in its discretion, from the numbers
so assigned to such Bonds, as many numbers as, at $5,000 for each number, shall
equal the principal amount of such Bonds to be redeemed. The Bonds to be
redeemed shall be the Bonds to which were assigned numbers so selected;
provided, however, that only so much of the principal amount of each such Bond
of a denomination of more than $5,000 shall be redeemed as shall equal $5,000
for each number assigned to it and so selected. If a Bond is to be redeemed
only in part, it shall be surrendered to the Bond Registrar (with, if the City
or Bond Registrar so requires, a written instrument of transfer in form
satisfactory to the City or Bond Registrar duly executed by the registered owner
thereof or by the registered owner's attorney, duly authorized in writing) and
the City shall execute (if necessary) and the Bond Registrar shall authenticate
and deliver to the registered owner of such Bond, without service charge, a new
Bond or Bonds of the same series having the same stated maturity and interest
rate and of any authorized denomination or damn; nations, as requested by such
registered owner, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Bond so surrendered.
7. Bond Registrar. First Trust National Association, in Saint
Paul, Minnesota, is appointed to act as bond registrar and transfer agent with
respect to the Bonds (the "Bond Registrar "), and shall do so unless and until
a successor Bond Registrar is duly appointed, all pursuant to any contract the
City and Bond Registrar shall execute which is consistent herewith. The Bond
Registrar shall also serve as paying agent unless and until a successor paying
agent is duly appointed. The principal of and interest on the Bonds shall be
paid to the registered owners (or record owners) of the Bonds in the manner set
forth in the form of Bond and paragraph 13 of this Resolution.
8. Form of Bond. The Bonds, together with the Bond Registrar's
Certificate of Authentication, the form of Assignment and the registration
information thereon, shall be in substantially the following form:
2,10
Page 4 — Resolution No. 97 - 1990
' UNITED STATES OF AMERICA
SPATE OF MINNESOTA
COUNTY OF ANOM
CITY OF FRIDLEY
R- $
GENE�tAL OBLIGATION M%TER REVENUE
BOND, SERIFS 1991A
INTEREST 1QdURITY DATE OF
RATE DATE ORIGINAL ISSUE CVSIP
January 1, 1991
REGISTERED OWNER:
1 • "• 0P.) ,-.
The City of Fridley, Anoka County, Minnesota (the "City "), hereby
acknowledges itself to be indebted and, for value received, promises to pay to
the registered owner specified above, or registered assigns, in the manner
hereinafter set forth, the principal amount specified above on the maturity date
' specified above, unless duly called for earlier redemption, and to pay interest
thereon semiannually on February 1 and August 1 of each year (each, an "Interest
Payment Date "), commencing August 1, 1991, at the rate per annum specified above
(calculated on the basis of a 360 -day year consisting of twelve 30-day months)
until the principal sum is paid or has been provided for. This Bond will bear
interest from the most recent Interest Payment Date to which interest has been
paid or, if no interest has been paid, from the date of original issue hereof.
The principal of and premium, if any, on this Bond are payable upon presentation
and surrender hereof at the principal office of
,in ,
(the "Bond Registrar "), acting as paying agent, or at the
principal office of any successor paying agent duly appointed by the City.
Interest on this Bond will be paid on each Interest Payment Date by check or
draft mailed to the person in whose name this Bond is registered (the
"Registered Owner ") on the registration books of the City maintained by the Bond
Registrar and at the address appearing thereon at the close of business on the
fifteenth day of the calendar month preceding such Interest Payment Date (the
"Regular Record Date "). Any interest not so timely paid shall cease to be
payable to the person who is the Registered Owner hereof as of the Regular
Record Date, and shall be payable to the person who is the Registered Owner
hereof at the close of business on a date (the "Special Record Date ") fixed by
the Bond Registrar whenever money becomes available for payment of the defaulted
interest. Notice of the Special Record Date shall be given to Registered Owners
not less than ten days prior to the Special Record Date. The principal of and
premium, if any, and interest on this Bond are payable in lawful money of the
United States of America.
241
242
Resolution ,
REFERENCE IS H1]1771: /• • TO THE FMHER PPOVISICNS OF 1 BOND
•
FORTH ON H E REVERSE HERWF, • M PROVISIC14S SHALL • • ALL RMPOSES HAVE 1
.: ul F y W A9--,WV HERE.
IT IS HEREBY CERTIFIM AND ROC= that all acts, conditions and
things required by the Constitution and laws of the State of Minnesota and the
Home Rule Charter of the City to be done, to have happened and to be performed,
precedent to and in the issuance of this Bond, have been done, have happened and
have been performed in regular and due form, time and manner as required by law,
and that this Bond, together with all other indebtedness of the City outstanding
on the date of original issue hereof and the date of its actual issuance and
delivery to the original purchaser, does not exceed any constitutional,
statutory, or Charter limitation of indebtedness.
IN WITNESS WHEREOF, the City of Fridley, Anoka County, Minnesota,
by its City Council, has caused this Bond to be executed on its behalf by the
facsimile signatures of its Mayor and its City Manager; has caused the corporate
seal of the City to be intentionally omitted herefran, as permitted by law; and
has caused this Bond to be executed manually by the Bond Registrar, acting as
the City's duly appointed authenticating agent for the Bonds.
Page 6 — Resolution No. 97 - 1990
' Date of Registration: Registrable by:
US
"1104,11010, Nm •
AUTHENTI=CN
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
Bond Registrar
I By. L! Manual
Authorized signature
1
Payable at:
CITY OF FRIDIEY,
ANOKA CD=,
MINNESOTA
/s/ Facsimile
mayor
/s/ Facsimile
City Manager
ON REVERSE OF BOND
I hereby certify that the foregoing is a full, true, and
correct copy of the legal opinion executed by the above -named
attorneys, except as to the dating thereof, which opinion has been
handed to me for filing in my office prior to the time of delivery
of the Bonds.
(facsimile signature)
City Clerk
City of Fridley, Minnesota
243
1
D
1
Page 7 — Resolution No. 97 - 1990
Redemption. All Bonds of this issue maturing after February 1,
2000, are subject to redemption and prepayment at the option of the City on said
date and on any date thereafter at a price of par plus accrued interest to date
of redemption. Redemption may be in whole or in part of the Bonds subject to
prepayment. If redemption is in part, the City shall determine the amount of
Bonds of each maturity to be prepaid; and if only part of the Bonds having a
common maturity date are called for prepayment, the Bonds of that maturity to
be prepaid shall be chosen by lot by the Bond Registrar. Bonds or portions
thereof called for redemption shall be due and payable on the redmption date,
and interest thereon shall cease to accrue from and after the redemption date.
Published notice of redemption shall in each case be given in accordance with
law, and mailed notice of redemption shall be given to the paying agent and to
each affected registered owner of the Bonds.
selection of Bonds for Redemption; Partial Redemption. To effect
a partial redemption of Bonds having a common maturity date, the Bond Registrar
shall assign to each Bond of that maturity a distinctive number for each $5,000
of the principal amount of such Bond. The Bond Registrar shall then select by
lot, using such method of selection as it shall deem proper in its discretion,
from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each
number, shall equal the principal amount of such Bonds to be redeemed. The
Bonds to be redeemed shall be the Bonds to which were assigned numbers so
selected; provided, however, that only so much of the principal amount of such
Bond of a denomination of more than $5,000 shall be redeemed as shall equal
$5,000 for each number assigned to it and so selected. If a Bond is to be
redeemed only in part, it shall be surrendered to the Bond Registrar (with, if
the City or Bond Registrar so requires, a written instrument of transfer in form
satisfactory to the City or Bond Registrar duly executed by the registered owner
thereof or the registered owner's attorney duly authorized in writing), and the
City shall execute (if necessary) and the Bond Registrar shall authenticate and
deliver to the registered owner of such Bond, without service charge, a new Bond
or Bonds of the same series having the same stated maturity and interest rate
and of any authorized denomination or denominations, as requested by such
registered owner, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Bond so surrendered.
Issuance; Purpose; General Oblioation. This Bond is one of an issue
in the total principal amount of $1,615,000, all of like date of original issue
and tenor, except as to registration number, maturity, interest rate,
denomination and redemption privilege, which Bond has been issued pursuant to
and in full conformity with the Constitution and laws of the State of Minnesota
and the Charter of the City and pursuant to a resolution adopted by the City
Council on December 10, 1990 (the "Resolution "), for the purpose of providing
money to finance certain costs of improvements to the City's municipal water
system. This Bond constitutes a general obligation of the City, and to provide
moneys for the prompt and full payment of its principal, premium, if any, and
interest when the same become due, the full faith and credit and taxing powers
of the City have been and are hereby irrevocably pledged.
244
Page 8 — Resolution No. 97 - 1990
' Denominations; Exchange; Resolution. The Bonds are issuable solely
as fully registered bonds in the denominations of $5,000 and integral multiples
thereof of a single maturity and are exchangeable for fully registered bonds of
other authorized denominations in equal aggregate principal amounts at the
principal office of the Bond Registrar, but only in the manner and subject to
the limitations provided in the Resolution. Reference is hereby made to the
Resolution for a description of the rights and duties of the Bond Registrar.
Copies of the Resolution are on file in the principal office of the Bond
Registrar.
Transfer. This Bond is transferable by the Registered Owner in
person or by the Registered owner's attorney duly authorized in writing at the
principal office of the Bond Registrar upon presentation and surrender hereof
to the Bond Registrar, all subject to the terms and conditions provided in the
Resolution and to reasonable regulations of the City contained in any agreement
with the Bond Registrar. Thereupon the City shall execute and the Bond
Registrar shall authenticate and deliver, in exchange for this Bond, one or more
new fully registered Bonds in the name of the transferee (but not registered in
blank or to "bearer" or similar designation), of an authorized denomination or
denominations, in aggregate principal amount equal to the principal amount of
this Bond, of the same maturity and bearing interest at the same rate.
Fees upon Transfer or Loss. The Bond Registrar may require payment
of a stun sufficient to cover any tax or other governmental charge payable in
connection with the transfer or exchange of this Bond and any legal or unusual
' costs regarding transfers and lost Bonds.
Treatment of Registered Owners. The City and Bond Registrar may
treat the person in whose name this Bond is registered as the owner hereof for
the purpose of receiving payment as herein provided (except as otherwise
provided on the reverse side hereof with respect to the Record Date) and for all
other purposes, whether or not this Bond shall be overdue, and neither the City
nor the Bond Registrar shall be affected by notice to the contrary.
Authentication. This Bond shall not be valid or became obligatory
for any purpose or be entitled to any security unless the Certificate of
Authentication hereon shall have been executed by the Bond Registrar.
Qualified Tax -Exempt obligations. The Bonds have been designated
by the City as "qualified tax - exempt obligations" for purposes of Section
265(b)(3) of the Internal Revenue Code of 1986, as amended.
1
245
Page 9 — Resolution No. 97 - 1990
' ABBREVIATIONS
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:
TIN COM - as tenants in common
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship
and not as tenants in common
LTMA - as custodian for
(Cult) (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used
though not in the above list.
1
247
Page 10 — Resolution No. 97 - 1990
MMTc is
For value received, the undersigned hereby sells, assigns and
transfers unto
the within Bond and does hereby irrevocably
constitute and appoint as attorney to transfer the Bond on the
books kept for the registration thereof, 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 any change whatever.
Signature Guaranteed:
Signature(s) must be guar by a national bank or trust company or by a
' brokerage firm having a membership in one of the major stock exchanges.
The Bond Registrar will not effect transfer of this Bond unless the
information concerning the transferee requested below is provided.
Name and Address
(Include information for all joint owners
if the Bond is held by joint account.)
E;
Page 11 — Resolution No. 97 - 1990
' 9. Execution; Temoorary Bonds. The Bonds shall be executed on
behalf of the City by the signatures of its Mayor and City Manager and be sealed
with the seal of the City; provided, however, that the seal of the City may be
a printed facsimile; and provided further that both of such signatures may be
printed facsimiles and the corporate seal may be omitted on the Bonds as
permitted by law. In the event of disability or resignation or other absence
of either such officer, the Bonds may be signed by the manual or facsimile
signature of that officer who may act on behalf of such absent or disabled
officer. In case either such officer whose signature or facsimile of whose
signature shall appear on the Bonds shall cease to be such officer before the
delivery of the Bonds, such signature or facsimile shall nevertheless be valid
and sufficient for all purposes, the same as if he or she had remained in office
until delivery. The City may elect to deliver, in lieu of printed definitive
bonds, one or more typewritten temporary bonds in substantially the form set
forth above, with such changes as may be necessary to reflect more than one
maturity in a single temporary bond. Such temporary bonds shall, upon the
printing of the definitive bonds and the execution thereof, be exchanged
therefor and cancelled.
10. Authentication. No Bond shall be valid or obligatory for any
purpose or be entitled to any security or benefit under this Resolution unless
a Certificate of Authentication on such Bond, substantially in the form
hereinabove set forth, shall have been duly executed by an authorized
representative of the Bond Registrar. Certificates of Authentication on
different Bonds need not be signed by the same person. The Bond Registrar shall
authenticate the signatures of officers of the City on each Bond by execution
of the Certificate of Authentication on the Bond and by inserting as the date
of registration in the space provided the date on which the Bond is
authenticated, except that for purposes of delivering the original Bonds to the
Purchaser, the Bond Registrar shall insert as a date of registration the date
of original issue, which date is September 1, 1990. The Certificate of
Authentication so executed on each Bond shall be conclusive evidence that it has
been authenticated and delivered under this Resolution.
The City Clerk shall obtain a copy of the proposed approving legal
opinion of bond counsel, Briggs and Morgan, Professional Association, St. Paul,
Minnesota, which shall be complete except as to dating thereof, shall cause such
opinion to be filed in the offices of the City, and shall cause said opinion to
be printed on each of the Bonds, together with a certificate to be signed by the
facsimile signature of the City Clerk in substantially the form set forth in the
foregoing form of the Bonds.
11. Registration; Transfer; . The City will cause to be
kept at the principal office of the Bond Registrar a bond register in which,
subject to such reasonable regulations as the Bond Registrar may prescribe, the
Bond Registrar shall provide for the registration of Bonds and the registration
of transfers of Bonds entitled to be registered or transferred as herein
provided.
' Upon surrender for transfer of any Bond at the principal office of
the Bond Registrar, the City shall execute (if necessary), and the Bond
Registrar shall authenticate, insert the date of registration (as provided in
249
Page 12 — Resolution Nd. 97 - 1990
paragraph 10) of, and deliver, in the n mie of the designated transferee or
transferees, one or more new Bonds of any authorized denomination or
denominations of a like aggregate principal amount, having the same stated
maturity and interest rate, as requested by the transferor; provided, however,
that no Bond may be registered in blank or in the name of "bearer" or similar
designation.
At the option of the registered owner thereof, Bonds may be
exchanged for Bonds of any authorized denomination or denominations of a like
aggregate principal amount and stated maturity, upon surrender of the Bonds to
be exchanged at the principal office of the Bond Registrar. 14henever any Bonds
are so surrendered for exchange, the City shall execute (if necessary), and the
Bond Registrar shall authenticate, insert the date of registration of, and
deliver the Bonds which the registered owner making the exchange is entitled to
receive.
All Bonds surrendered upon any exchange or transfer provided for in
this Resolution shall be promptly cancelled by the Bond Registrar and thereafter
disposed of as directed by the City.
All Bonds delivered in exchange for or upon transfer of Bonds shall
be valid general obligations of the City evidencing the same debt, and entitled
to the same benefits under this Resolution, as the Bonds surrendered for such
exchange or transfer.
' Every Bond presented or surrendered for transfer or exchange shall
be duly endorsed or be accompanied by a written instrwnent of transfer, in form
satisfactory to the Bond Registrar, duly executed by the registered owner
thereof or the registered owner's attorney duly authorized in writing.
The Bond Registrar may require payment of a sum sufficient to cover
any tax or other governmental change payable in connection with the transfer or
exchange of any Bond and any legal or unusual costs regarding transfers and lost
Bonds.
Transfers shall also be subject to reasonable regulations of the
City contained in any agreement with the Bond Registrar, including regulations
which permit the Bond Registrar to close its transfer books between record dates
and payment dates.
12. Rights Upon Transfer or Exchanges. Each Bond delivered upon
transfer of or in exchange for or in lieu of any other Bond shall carry all the
rights to interest accrued and unpaid, and to accrue, which were carried by such
other Bond.
13. Interest Payment; Record Date. Interest on any Bond shall be
paid on each Interest Payment Date by check or draft mailed to the person in
whose name the Bond is registered on the registration books of the City
maintained by the Bond Registrar and at the address appearing thereon at the
' close of business on the fifteenth (15th) day of the calendar month preceding
such Interest Payment Date (the "Regular Record Date "). Any such interest not
so timely paid shall cease to be payable to the person who is the registered
250
Page 13 — Resolution No. 97 -1990
owner thereof as of the Regular Record Date, and shall be payable to the person
who is the registered owner thereof at the close of business on a date (the
"Special Record Date ") fixed by the Bond Registrar whenever money becomes
available for payment of the defaulted interest. Notice of the Special Record
Date shall be given by the Bond Registrar to the registered owners not less than
ten (10) days prior to the Special Record Date.
14. Treatment of Registered Omer. The City and Bond Registrar may
treat the person in whose name any Bond is registered as the owner of such Bond
for the purpose of receiving payment of principal of and premium, if any, and
interest (subject to the payment provisions in paragraph 13 above) on, such Bond
and for all other purposes whatsoever whether or not such Bond shall be overdue,
and neither the City nor the Bond Registrar shall be affected by notice to the
contrary.
15.. Delivery; Amlicaticn of Proceeds. The Bowls when so prepared
and executed shall be delivered by the City Finance Director to the Purchaser
upon receipt of the purchase price, and the Purchaser shall not be obliged to
see to the proper application thereof.
16. Fluid and Accounts. There is hereby created a special fund of
the City designated the 11$1,615,000 General Obligation Water Revenue Bonds,
Series 1991A Fund" (the "Fund ") to be held and administered by the City as a
bookkeeping account separate and apart from all other funds maintained in the
' official financial records of the City. The Fund shall continue to be
maintained in the manner herein specified until all of the Bonds herein
authorized and all other bonds payable from said F%u-d and the interest thereon
have been fully paid. There shall be maintained in the Fund two (2) separate
accounts, to be designated the "Construction Account" and "Debt Service
Account ", respectively.
(i) Construction Aocoutt. To the Construction Account there shall
be credited the proceeds of the sale of the Bonds, less accrued interest
received thereon, and less any amount paid for the Bonds in excess of
$1, 590, 775. From the Construction Account there shall be paid all costs and
expenses of making the Improvements, including the cast of any construction
contracts heretofore let and all other costs incurred and to be incurred of the
kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said
account shall be used for no other purpose except as otherwise provided by law.
(ii) Debt Service Account. There are hereby irrevocably appropriated and
pledged to, and there shall be credited to, the Debt Service Account: (a) the
net revenues of the City's municipal water system (as hereinafter described, the
"Net Revenues "), but only in amounts and at such times as will be sufficient
(together with other amounts in the Debt Service Account) to pay, when due, the
principal of and interest on the Bonds; (b) all accrued interest received upon
delivery of the Bonds; (c) all funds paid for the Bonds in excess of $1,590,775;
(d) any collections of all taxes hereafter levied for the payment of the Bonds
and interest thereon; (e) all investment earnings on funds held in the Debt
' Service Account; and (f) any and all other moneys which are properly available
and are appropriated by the Council to the Debt Service Account. The Debt
251
Page 14 — Resolution No. 97 - 1990
Service Account shall be used solely to pay the principal and interest and any
premiums for redemption of the Bonds and any other general obligation bonds of
the City hereafter issued by the City and made payable from said account as
provided by law.
As used in this paragraph, Net Revenues shall mean the gross revenues
derived by the City from the operation of its municipal water system, including
all charges for service, use, availability, and connection to said system, and
all monies received from the sale of any facilities or equipment of said system
or any by- products thereof, less all normal, reasonable, or current costs of
owning, operating, and maintaining the system. If any payment of principal or
interest on the Bonds shall become due when there are not sufficient funds in
the Debt Service Account to pay the same, the City Finance Director shall pay
such principal or interest from the general fund or other available fund of the
City, and such fund shall be reimbursed for such advances from the proceeds of
the Net Revenues or of any general ad valorem taxes hereafter levied for such
purpose, when collected. The City hereby covenants that it will impose and
collect charges for the service, use, and availability of and connection to the
City's municipal water system, at the times and in the amounts required to
produce Net Revenues adequate, together with other sources of funding available
to the Debt Service Account, to pay all principal of and interest on the Bonds,
when due.
Nothing contained herein shall be deemed to preclude the City from making
' further pledges and appropriations of the Net Revenues of the City's municipal
water system for the payment of other or additional obligations of the City,
provided that it has first been determined that the estimated Net Revenues of
the City's municipal water system will be sufficient, in addition to all other
sources, for the payment of the Bonds and such additional obligations, and any
such pledge and appropriation of said Net Revenues may be made superior or
subordinate to, or on a parity with, the pledge and appropriation herein.
No portion of the proceeds of the Bonds shall be used directly or
indirectly to acquire higher yielding investments or
to replace funds which were used directly or indirectly to acquire higher
yielding investments, except (1) for a reasonable temporary period until such
proceeds are needed for the purpose for which the Bonds were issued and (2) in
addition to the above in an amount not greater than the lesser of five percent
(50) of the proceeds of the Bonds or $100,000. Th this effect, any proceeds of
the Bonds and any sums from time to time held in the Construction Subaccount or
Debt Service Account in excess of amounts which under then - applicable federal
arbitrage regulations may be invested without regard to yield shall not be
invested at a yield in excess of the applicable yield restrictions imposed by
said arbitrage regulations on such investments after taking into account any
applicable "temporary periods" or "minor portion" made available under the
federal arbitrage regulations. Money in the Fluid shall not be invested in
obligations or deposits issued by, guaranteed by or insured by the United States
or any agency or instrumentality thereof if and to the extent that such
' investment would cause the Bonds or any Additional Bonds to be "federally
guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue
Code of 1986, as amended (the "Code").
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' 17. 105% Debt Service Oovexaae. It is hereby determined that the
estimated collections of Net Revenues will produce at least 5% in excess of the
amount needed to meet, when due, the principal of and interest on the Bonds, and
accordingly no ad valorem tax levy is required at this time. The City Clerk is
directed to file a certified copy of this Resolution with the County Auditor of
Anoka County and to obtain the certificate of said official required by
Minnesota Statutes, Section 475.63.
18. General Obligation Pledge. The full faith and credit and
taxing powers of the City are hereby pledged to the payment of the principal of
and interest on the Bonds, and in the event of any current or anticipated
deficiency of funds in the Debt Service Account of amounts needed to make any
such payment, when due, the Council shall levy ad valorem taxes on all taxable
Property in the City in the amount of such deficiency. If the balance in the
Debt Service Account is ever insufficient to pay all principal and interest then
due on the Bonds and any other bonds payable therefrom, the deficiency shall be
promptly paid out of any other funds of the City which are available for such
Purpose, and such other funds may be reimbursed with or without interest from
the Debt Service Account when a sufficient balance is available therein.
19. Records and Certificates. The officers of the City are hereby
authorized and directed to prepare and furnish to the Purchaser, and to the
attorneys approving the legality of the issuance of the Bonds, certified copies
of all proceedings and records of the City relating to the Bonds and to the
' financial condition and affairs of the City, and such other affidavits,
certificates and information as are required to show the facts relating to the
legality and marketability of the Bonds as the same appear from the books and
records under their custody and control or as otherwise known to them, and all
such certified copies, certificates and affidavits, including any heretofore
furnished, shall be deemed representations of the City as to the facts recited
therein.
20. Necrative Covenant as to Use of Improvements. The City hereby
covenants not to use the Improvements or to cause or permit the Improvements to
be used, or to enter into any deferred payment arrangements for the cost of the
Improvements, in such a manner as to cause the Bonds to be "private activity
bonds" within the meaning of Sections 103 and 141 through 150 of the Code.
21. Tax - Exempt Status of the Bonds: Rebate. The City shall comply
with requirements necessary under the Code to establish and maintain the
exclusion from gross income under Section 103 of the Code of the interest on the
Bonds, including without limitation (1) requirements relating to temporary
periods for investments, (2) limitations on amounts invested at a yield greater
than the yield on the Bonds, and (3) the rebate of excess investment earnings
to the United States if the Bonds (together with other obligations reasonably
expected to be issued and outstanding at one time in this calendar year) exceed
the small-issuer exception amount of $5,000,000. For purposes of qualifying for
the small issuer exception to the federal arbitrage rebate requirements, the
City hereby finds, determines and declares that (1) the Bonds are issued by a
I governmental unit with general taxing powers, (2) no Bond is a private activity
bond, (3) ninety -five percent (95 %) or more of the net proceeds of the Bonds
are to be used for local governmental activities of the City (or of a
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Page 16 — Resolution No. 97 - 1990
'governmental unit the jurisdiction of which is entirely within the jurisdiction
of the City), and (4) the aggregate face amount of all tax - exempt obligations
(other than private activity bonds) issued by the City (and all entities
subordinate to, or treated as one issuer with, the City) during the 1991
calendar year is not reasonably expected to exceed $5,000,000, all within the
meaning of Section 148(f)(4)(C) of the Code.
22. Designation of Qualified Tax- EXPEPt Obligations. In order to
qualify the Bonds as "qualified tax - exempt obligations" within the meaning of
Section 265(b) (3) of the Code, the City hereby makes the following factual
statements and representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as defined in
Section 141 of the Code;
(c) the City hereby designates the Bonds as "qualified tax- exempt
obligations" for purposes of Section 265(b)(3) of the Code;
(d) the reasonably anticipated amount of tax- exempt obligations
(other than private activity bonds, treating qualified 501(c) (3) bonds as
not being private activity bonds) which will be issued by the City (and
all entities subordinate to, or treated as one issuer with, the City)
during calendar year 1991 will not exceed $10,000,000; and
(e) riot more than $10,000,000 of obligations issued or to be issued
by the City during calendar year 1991 have been designated for purposes
of Section 265(b)(3) of the Code.
The City shall use its best efforts to fly with any federal procedural
requirements which may apply in order to effectuate the designation made by this
paragraph.
23. Severability. If any section, paragraph or provision of this
Resolution shall be held to be invalid or unenforceable for any reason, the
invalidity or unenforceability of such section, paragraph or provision shall not
affect any of the remaining provisions of this Resolution.
24. Headings. Headings in this Resolution are included for
convenience of reference only and shall not limit or define the meaning of any
provision hereof.
PASSED AND ADOPPED BY THE CTPY COUNCIL OF THE CITY OF FRIDIEY THIS 10TH DAY OF
DECEMBER, 1990. �� Q
WILLIAM J. N# - MAYOR
' ATPFSP: b �/-(4-�gcumar
SHIRLEY A. AIA