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This Bond is one of an issue in the aggregate principal amount of $8,090,000 all of like original
<br />issue date and tenor, except as to number, maturity date, redemption privilege, and interest rate, all issued
<br />pursuant to a resolution adopted by the City Council on June 23, 2025 (the "Resolution"), for the purpose
<br />of providing money to aid in financing (i) certain street reconstruction improvements; and (ii)
<br />improvements to utility systems, pursuant to and in full conformity with the Constitution and laws of the
<br />State of Minnesota, including Minnesota Statutes, Chapters 444 and 475, as amended, including Minnesota
<br />Statutes, 475.58, subdivision. 3b, as amended. The principal hereof and interest hereon are payable in part
<br />from net revenues of the utility systems of the City, in part from special assessments levied against property
<br />special benefited by the utility system improvements, in part from ad valorem taxes, as set forth in the
<br />Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full
<br />faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has
<br />obligated itself to levy additional ad valorem taxes on all taxable property in the City in the event of any
<br />deficiency in net revenues, special assessments and ad valorem taxes pledged, which additional taxes may
<br />be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered
<br />Bonds in denominations of $5,000 or any integral multiple thereof of single maturities.
<br />The City has designated the issue of Bonds of which this Bond forms a part as "qualified tax-exempt
<br />obligations" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended
<br />(the "Code"), relating to the disallowance of interest expense for financial institutions and within the
<br />$10 million limit allowed by the Code for the calendar year of issue.
<br />IT IS HEREBY CERTIFIED AND RECITED that in and by the Resolution, the City has
<br />covenanted and agreed that it will continue to own and operate the sewer system, water system, and storm
<br />sewer system free from competition by other like municipal utilities; that adequate insurance on said
<br />systems and suitable fidelity bonds on employees will be carried; that proper and adequate books of account
<br />will be kept showing all receipts and disbursements relating to the Sewer Fund, the Water Fund, and the
<br />Storm Sewer Fund, into which it will pay all of the gross revenues from the sewer system, water system,
<br />and storm sewer system, respectively; that it will also create and maintain a Utility Account within the
<br />General Obligation Bonds, Series 2025A Debt Service Fund, into which it will pay out of the special
<br />assessments and net revenues from the utility systems a sum sufficient to pay when due the principal of
<br />and interest on the Utility Portion of the Bonds (as defined in the Resolution); and that it will provide, by
<br />ad valorem tax levies, for any deficiency in required net revenues of the utility systems.
<br />As provided in the Resolution and subject to certain limitations set forth therein, this Bond is
<br />transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner
<br />hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with
<br />a written instrument of transfer satisfactory to the Bond Registrar, duly executed by the registered owner
<br />or the owner's attorney; and may also be surrendered in exchange for Bonds of other authorized
<br />denominations. Upon such transfer or exchange the City will cause a new Bond or Bonds to be issued in
<br />the name of the transferee or registered owner, of the same aggregate principal amount, bearing interest at
<br />the same rate and maturing on the same date, subject to reimbursement for any tax, fee or governmental
<br />charge required to be paid with respect to such transfer or exchange.
<br />The City and the Bond Registrar may deem and treat the person in whose name this Bond is
<br />registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving
<br />payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any
<br />notice to the contrary.
<br />Im
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