26-59 - Resolution - GO Bond Sale 2026A

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the purpose of providing money to defray the expenses incurred and to be incurred in undertaking public infrastructure improvements and making improvements to the City's water system and sewer system, pursuant to and in full conformity with the Charter of the City and the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Chapters 444, and 475, as amended, and Sections 469.1812 through 469.1815, as amended. The principal hereof and interest hereon are payable from tax abatement revenues, from net revenues of the water system and the sewer system of the City, and from ad valorem taxes, as set forth in the Resolution to which reference is made for a full statement of rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged for payment of this Bond and the City Council has obligated itself to levy additional ad valorem taxes on all taxable property in the City in the event of any deficiency in tax abatement revenues, net revenues, and ad valorem taxes pledged, which additional ad valorem taxes may be levied without limitation as to rate or amount. The Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any integral multiple thereof of single maturities. This Bond is not a "qualified tax-exempt obligation" within the meaning of Section 265(b)(3) of the Internal Revenue Code of 1986, as amended. IT IS HEREBY CERTIFIED AND RECITED that in and bythe Resolution, the City has covenanted and agreed that it will continue to own and operate the water system and the sewer system free from competition by other like municipal utilities; that adequate insurance on said systems and suitable fidelity bonds on employees will be carried; that proper and adequate books of account will be kept showing all receipts and disbursements relating to the Water Fund and the Sewer Fund, into which it will pay all of the gross revenues from the water system and the sewer system; that it will also create and maintain a Utility Improvements Account within the General Obligation Bonds, Series 2026A Debt Service Fund, into which it will pay, out of the net revenues from the water system and the sewer system a sum sufficient to pay principal of the Utility Revenue Bonds (all as defined in the Resolution) and interest thereon when due; and that it will provide, by ad valorem tax levies, for any deficiency in required net revenues of the water system and the sewer system. As provided in the Resolution and subject to certain limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by the registered owner hereof in person or by the owner's attorney duly authorized in writing upon surrender hereof together with awritten instrument of transfer satisfactoryto the Bond Registrar, duly executed bythe 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 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 anytax, fee or governmental charge required to be paid with respectto such transfer or exchange. The City and the Bond Registrar may deem and treat the person in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts, conditions and things required by the City and the Charter and 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 B-2 4931-4985-5651.3