Loading...
HomeMy WebLinkAbout2016-010 Council ResolutionJulie Bartell 1,fs .L Nio go— — I D From: Jeff Karlson Sent Thursday, February 25, 2016 7:58 AM To: Julie Bartell Subject FW: bonding resolution Let's talk about the bonding resolution this morning. ----Original Message --- From: Heidi Arnson [mailto:harnson@northmetrotv.com] Sent: Wednesday, February 24, 2016 2:48 PM To: Jeff Karlson Subject: bonding resolution Hi Jeff. Could you please send your signed bonding resolution to Nick Anhut? He is collecting them, and once Circle Pines closes, he will populate the empty fields and return the completed resolution to you. Thanks. Heidi. NAnhut@ehlers-inc.com) STATE OF MINNESOTA COUNTY OF ANOKA CITY OF LINO LAKES I, the undersigned, being the duly qualified and acting City Clerk of the City of Lino Lakes, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes of a meeting held on the date therein indicated, with the original thereof on file and of record in my office and that the same is a full, true and complete transcript insofar as the same relates to the General Obligation Capital Note, Series 2016A. WITNESS my hand on February 25, 2016. 6 7393412v2 e Bartell, City Clerk City of Lakes, Minnesota EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA HELD: February 22, 2016 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Lino Lakes, Minnesota, was duly called and held at the City Hall on February 22, 2016, at 6:30 o'clock P.M. The following members were present: and the following were absent: Member Manthey introduced the following resolution and moved its adoption: RESOLUTION NO. 16-10 RESOLUTION CONCURRING IN THE ISSUANCE OF GENERAL OBLIGATION CAPITAL NOTES, SERIES 2016A TO BE ISSUED BY THE CITY OF CIRCLE PINES, MINNESOTA, AND AUTHORIZING EXECUTION OF A GENERAL OBLIGATION CAPITAL NOTE, SERIES 2016A AND LEVYING A TAX FOR THE PAYMENT THEREOF A. WHEREAS, the City of Lino Lakes, Minnesota (the "City") is a member of the North Metro Telecommunications Commission, an organization formed with the Cities of Circle Pines, Blaine, Centerville, Ham Lake, Lexington, Lino Lakes and Spring Lake Park, Minnesota (together with the City, the "Joint Cities") by the execution of a Joint and Cooperative Agreement for the Administration of a Cable Communication System (the "Agreement") for which the general purpose is to monitor the operation and activities of cable communications (the "Project") as more particularly described in the Agreement; and B. WHEREAS, the City of Circle Pines, Minnesota (the "Issuer") proposes to issue its General Obligation Capital Notes, Series 2016A (the "Issuer Notes") not to exceed $2,065,000 pursuant to a resolution to be adopted (the "Issuer Note Resolution") to fmance the Joint Cities share of the costs to finance the acquisition of capital equipment for the Project (the "Equipment"); and C. WHEREAS, in order to induce the Issuer to issue the Issuer Notes to fmance the acquisition of the Equipment it is proposed that the City will issue its General Obligation Capital Note, Series 2016A in an amount not to exceed $340,772 (the "City Note"), pursuant to Minnesota Statutes, Chapter 475 and Minnesota Statutes, Section 412.301, to pay its share of the debt service on the Issuer Notes; and D. WHEREAS, each piece of equipment to be financed by the Issuer Notes has an expected useful life at least as long as the term of the Issuer Notes; and E. WHEREAS, the amount of the City Note does not exceed one-quarter of one percent (0.25%) of the market value of the taxable property in the City; and 2 7393412v2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota, as follows: 1. Approval and Form of City Note. The issuance of the City Note to the Issuer is hereby approved. The City Council hereby delegates to the City Finance Director [Clerk] [Administrator] the authority to determine (i) the principal amount of the City Note provided the principal shall not exceed $340,772; (ii) the interest rate on the City Note provided the interest rate does not exceed 3.0 percent; (iii) the redemption provisions of the City Note; (iv) the amount of the annual tax levy as required by paragraph 3 which shall occur after adoption of the Issuer Note Resolution which establishes the principal amount of the Issuer Notes and the interest rate of the Issuer Notes. This determination shall occur after the Issuer has adopted the Issuer Note Resolution. The City Note shall be in fully registered form without interest coupons and shall be dated, mature, bear interest, be subject to redemption and be payable as provided in the form attached hereto as Exhibit A, with such amendments thereto as shall be deemed desirable or necessary by the Mayor and [Clerk] (hereby authorized to execute the City Note by their manual signatures), as evidenced by their execution thereof. 2. Debt Service Account. There is hereby created the General Obligation Capital Note, Series 2016A Debt Service Account (the "Debt Service Account"), to be administered and maintained by the [Finance Director] as a bookkeeping account separate and apart from all other accounts maintained in the official financial records of the City. The Debt Service Account shall be maintained in the manner herein specified until the City Note and the interest thereon have been fully paid. There are hereby pledged and there shall be credited to the Debt Service Account collections of all taxes herein or hereafter levied by the City for the payment of the City Note and interest thereon and any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest on the City Note. 3. Tax Levy; Coverage Test. To provide moneys for payment of the principal and interest on the City Note there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: Year of Tax Levy Year of Tax Collection Amount 20 -20 20 -20 (See attached Levy Schedule) The tax levies are such that if collected in full will produce the 105% of the amount needed to meet when due the principal and interest payments on the City Note. The tax levies shall be irrepealable so long as the City Note is outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 4. General Obligation Pledge. For the prompt and full payment of the principal and interest on the City Note, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the 3 7393412v2 Debt Service Account is ever insufficient to pay all principal and interest then due on the City Note 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. 5. Redemption. The Note is subject to redemption and prepayment as specified in the Note. 6. Defeasance. When the City Note has been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered owner of the City Note shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to the City Note which is due on any date by irrevocably depositing with the City [Finance Director] on or before that date a sum sufficient for the payment thereof in full; or if the City Note should not be paid when due, it may nevertheless be discharged by depositing with the City [Finance Director] a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to the City Note called for redemption on any date when it is prepayable according to its terms, by depositing with the City [Finance Director] on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to the City Note, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or, if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 7. Refunding of Issuer Notes. The City acknowledges that the Issuer Notes are subject to redemption in connection with refunding in accordance with the Issuer Note Resolution. Upon any refunding of the Issuer Notes, the City will issue a replacement City Note with a payment schedule adjusted to reflect the City's proportionate share of debt service due and payable on the Issuer's refunding bond. 8. Certificate of Registration and Levy of Ad Valorem Taxes. The City [Clerk] is hereby directed to file a certified copy of this resolution with the County Auditor of Anoka County, together with such other information as the County Auditor shall require, and to obtain from the County Auditor the certificate that the City Note has been entered in the County Auditor's Bond Register and that the tax levy required by law has been made. 9. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the original purchaser of the Issuer Notes, and to the attorneys approving the legality of the issuance of the City Note, certified copies of all proceedings and records of the City relating to the Issuer's Note 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 City Note as the same appear from 4 7393412v2 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. 10. 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. 11. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. The motion for the adoption of the foregoing resolution was seconded by Council Member Maher and upon a vote being taken thereon, the following voted in favor thereof: Manthey, Maher, Kusterman, Reinert and the following voted against the same: Rafferty Whereupon the resolution was declared duly passed and adopted. ATTEST: 5 7393412v2 EXHIBIT A UNITED STATES OF AMERICA STA 1'E OF MINNESOTA COUNTY CITY OF $ GENERAL OBLIGATION CAPITAL NOTE, SERIES 2016A The City of , County, Minnesota (the "City"), certifies that it is indebted and for value received promises to pay to the City of Circle Pines, Minnesota, or assigns duly certified on the Certificate of Registration attached to and made a part of this Note (the "Owner"), in the manner hereinafter set forth, the $ principal amount of this Note in the principal installments due on the first day of each month in the years and in the amounts, respectively, as follows, with each such principal installment bearing interest until paid in the amounts as follows: Principal Interest Principal Interest Month/Day/Year Installment Payment Month/Day/Year Installment Payment Interest shall be payable monthly on the first day of each month, commencing 1, 20, and shall be calculated on the basis of a 360 day year consisting of twelve 30 day months. At the time of final payment of all principal of and interest on this Note, the Owner shall surrender this Note to the City [Finance Director] at the City Hall, in Minnesota. Notwithstanding anything to the contrary herein, the City's proportionate share of any amount transferred from the Capital Account to the Debt Service Account (as such terms are defined in the Issuer Note Resolution, defined hereinafter) upon completion of the Project shall be applied as a credit against the principal or interest payment or payments due on this Note after such transfer. The term "proportionate share" means the original principal amount of this Note as a share of the original principal amount of the Issuer Note. Manner of Payment. The principal of and interest on this Note are payable when due by check or draft mailed or otherwise delivered by or on behalf of the City [Finance Director] to the Owner hereof as of the end of the fifteenth (15th) day of the month, whether or not a business day (the "Record Date"), immediately preceding the applicable payment due date; provided that if the City shall be in default in payment of interest due on said date, whenever money becomes available for payment of such defaulted interest, the City [Finance Director] shall establish a special Record Date with respect to the payment thereof and shall mail written notice of the special Record Date not less than fifteen (15) days prior to such date to the person that was the Owner of the Note as of the close of business of the City on the fifth (5th) business day of the City preceding such mailing, and the Owner as of the special Record Date shall be entitled to A-1 7393412v2 receive the payment of such defaulted interest. All principal of and interest on this Note are payable in any coin or currency of the United States of America which on the date of payment is legal tender for the payment of public and private debts. Date of Payment Not a Business Day. If the nominal date for payment of any principal of or interest on this Note shall not be a business day of the City or of the Owner, then the date for such payment shall be the next such business day and payment on such business day shall have the same force and effect as if made on the nominal date of payment. Issuance; Purpose; General Obligation. This Note is issued as a single instrument under and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council, the governing body of the City, on , 2016 (the "Resolution"), for the purpose of providing money to finance the cost of the acquisition of capital equipment. The terms Issuer Note and Issuer Note Resolution have the meaning provided in the Resolution. This Note 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. Optional Redemption. The Note is subject to redemption and prepayment without penalty at the option of the City, (a) on 1, 20_ and on any date thereafter at a price of par plus accrued interest; and (b) on any date prior to 1, 20_ at a price of par plus accrued interest together with any additional amount necessary to defease the portion of the Issuer Notes equal to the outstanding principal amount of the City Note, all in accordance with the Issuer Note Resolution. Redemption may be in whole or in part, on any date, upon 30 days' prior written notice to the Owner. If redemption is in part, the City may select the specific principal installments hereof, or applicable portions thereof, to be prepaid. Transfer. This Note is transferable, as provided in the Resolution, upon the Register kept by the City [Clerk] at City Hall upon surrender of this Note together with a written instrument of transfer duly executed by the Owner or the Owner's attorney duly authorized in writing, and thereupon a new, fully registered Note in the same aggregate principal amount shall be issued to the transferee in exchange therefore (or the transfer shall be duly recorded on the Register and the Certificate of Registration hereof), upon the payment of charges and satisfaction of applicable conditions, if any, as therein prescribed; provided that such transfer may occur only with respect to the entire Note and all of the remaining principal amount of the sole final maturity hereof. The City may treat and consider the person in whose name this Note is registered as the absolute Owner hereof for the purpose of receiving payment of or on account of the principal of and interest on this Note (except for the payment of interest to the Owner as of a Record Date) and for all other purposes whatsoever. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Note, have been done, have happened and have been performed, in regular and due form, time and manner as required by law; that the City has covenanted and agreed with the holder of this Note that it will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property in the City, without limitation as to A-2 7393412v2 rate or amount, for the years and in amounts sufficient to pay the installments of principal and interest on this Note as they respectively become due; and that this Note, together with all other debts of the City outstanding on the date hereof, being the date of its actual issuance and delivery, does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Lino Lakes, Anoka County, Minnesota, by its City Council has caused this Note to be executed on its behalf by the signatures of its Mayor and of its City Clerk, and the corporate seal of the City having been intentionally omitted as permitted by law, all as of February 22, 2016. CITY OF LINO LAKES, MINNESOTA ANOKA COUNTY ATTEST: e Bartell, City lerk A-3 7393412v2 CERTIFICA1E OF REGISTRATION The transfer of ownership of the principal amount of the attached Note may be made only by the registered owner or the Holder's legal representative last noted below. DATE OF SIGNATURE OF REGISTERED OWNER CITY [CLERKT REGISTRATION City of , 2016 , Minnesota 7393412v2 A-4 EXTRACT OF MIINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF LINO LAKES, MINNESOTA HELD: February 22, 2016 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Lino Lakes, Minnesota, was duly called and held at the City Hall on February 22, 2016, at 6:30 o'clock P.M. The following members were present: and the following were absent: Member Manthey introduced the following resolution and moved its adoption: RESOLUTION NO. 16-10 RESOLUTION CONCURRING IN THE ISSUANCE OF GENERAL OBLIGATION CAPITAL NOTES, SERIES 2016A TO BE ISSUED BY THE CITY OF CIRCLE PINES, MINNESOTA, AND AUTHORIZING EXECUTION OF A GENERAL OBLIGATION CAPITAL NOTE, SERIES 2016A AND LEVYING A TAX FOR THE PAYMENT THEREOF A. WHEREAS, the City of Lino Lakes, Minnesota (the "City") is a membtr of the North Metro Telecommunications Commission, an organization formed with the Cities of Circle Pines, Blaine, Centerville, Ham Lake, Lexington, Lino Lakes and Spring Lake Park, Minnesota (together with the City, the "Joint Cities") by the execution of a Joint and Cooperative Agreement for the Administration of a Cable Communication System (the "Agreement") for which the general purpose is to monitor the operation and activities of cable communications (the "Project") as more particularly described in the Agreement; and B. WHEREAS, the City of Circle Pines, Minnesota (the "Issuer") proposes to issue its General Obligation Capital Notes, Series 2016A (the "Issuer Notes") not to exceed $2,065,000 pursuant to a resolution to be adopted (the "Issuer Note Resolution") to finance the Joint Cities share of the costs to finance the acquisition of capital equipment for the Project (the "Equipment"); and C. WHEREAS, in order to induce the Issuer to issue the Issuer Notes to finance the acquisition of the Equipment it is proposed that the City will issue its General Obligation Capital Note, Series 2016A in an amount not to exceed $340,772 (the "City Note"), pursuant to Minnesota Statutes, Chapter 475 and Minnesota Statutes, Section 412.301, to pay its share of the debt service on the Issuer Notes; and D. WHEREAS, each piece of equipment to be financed by the Issuer Notes has an expected useful life at least as long as the term of the Issuer Notes; and E. WHEREAS, the amount of the City Note does not exceed one-quarter of one percent (0.25%) of the market value of the taxable property in the City; and 2 7393412v2 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Lino Lakes, Minnesota, as follows: 1. Approval and Form of City Note. The issuance of the City Note to the Issuer is hereby approved. The City Council hereby delegates to the City Finance Director [Clerk] [Administrator] the authority to determine (i) the principal amount of the City Note provided the principal shall not exceed $340,772; (ii) the interest rate on the City Note provided the interest rate does not exceed 3.0 percent; (iii) the redemption provisions of the City Note; (iv) the amount of the annual tax levy as required by paragraph 3 which shall occur after adoption of the Issuer Note Resolution which establishes the principal amount of the Issuer Notes and the interest rate of the Issuer Notes. This determination shall occur after the Issuer has adopted the Issuer Note Resolution. The City Note shall be in fully registered form without interest coupons and shall be dated, mature, bear interest, be subject to redemption and be payable as provided in the form attached hereto as Exhibit A, with such amendments thereto as shall be deemed desirable or necessary by the Mayor and [Clerk] (hereby authorized to execute the City Note by their manual signatures), as evidenced by their execution thereof. 2. Debt Service Account. There is hereby created the General Obligation Capital Note, Series 2016A Debt Service Account (the "Debt Service Account"), to be administered and maintained by the [Finance Director] as a bookkeeping account separate and apart from all other accounts maintained in the official financial records of the City. The Debt Service Account shall be maintained in the manner herein specified until the City Note and the interest thereon have been fully paid. There are hereby pledged and there shall be credited to the �. Debt Service Account collections of all taxes herein or hereafter levied by the City for the payment of the City Note and interest thereon and any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. The Debt Service Account shall be used solely to pay the principal and interest on the City Note. 3. Tax Levy; Coverage Test. To provide moneys for payment of the principal and interest on the City Note there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: Year of Tax Levy Year of Tax Collection Amount 20 -20 20_-20_ (See attached Levy Schedule) The tax levies are such that if collected in full will produce the 105% of the amount needed to meet when due the principal and interest payments on the City Note. The tax levies shall be irrepealable so long as the City Note is outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. 4. General Obligation Pledge. For the prompt and full payment of the principal and interest on the City Note, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the 3 7393412v2 Debt Service Account is ever insufficient to pay all principal and interest then due on the City Note 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. 5. Redemption. The Note is subject to redemption and prepayment as specified in the Note. 6. Defeasance. When the City Note has been discharged as provided in this paragraph, all pledges, covenants and other rights granted by this resolution to the registered owner of the City Note shall, to the extent permitted by law, cease. The City may discharge its obligations with respect to the City Note which is due on any date by irrevocably depositing with the City [Finance Director] on or before that date a sum sufficient for the payment thereof in full; or if the City Note should not be paid when due, it may nevertheless be discharged by depositing with the City [Finance Director] a sum sufficient for the payment thereof in full with interest accrued to the date of such deposit. The City may also discharge its obligations with respect to the City Note called for redemption on any date when it is prepayable according to its terms, by depositing with the City [Finance Director] on or before that date a sum sufficient for the payment thereof in full, provided that notice of redemption thereof has been duly given. The City may also at any time discharge its obligations with respect to the City Note, subject to the provisions of law now or hereafter authorizing and regulating such action, by depositing irrevocably in escrow, with a suitable banking institution qualified by law as an escrow agent for this purpose, cash or securities described in Minnesota Statutes, Section 475.67, Subdivision 8, bearing interest payable at such times and at such rates and maturing on such dates as shall be required, without regard to sale and/or reinvestment, to pay all amounts to become due thereon to maturity or,. if notice of redemption as herein required has been duly provided for, to such earlier redemption date. 7. Refunding of Issuer Notes. The City acknowledges that the Issuer Notes are subject to redemption in connection with refunding in accordance with the Issuer Note Resolution. Upon any refunding of the Issuer Notes, the City will issue a replacement City Note with a payment schedule adjusted to reflect the City's proportionate share of debt service due and payable on the Issuer's refunding bond. 8. Certificate of Registration and Levy of Ad Valorem Taxes. The City [Clerk] is hereby directed to file a certified copy of this resolution with the County Auditor of Anoka County, together with such other information as the County Auditor shall require, and to obtain from the County Auditor the certificate that the City Note has been entered in the County Auditor's Bond Register and that the tax levy required by law has been made. 9. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the original purchaser of the Issuer Notes, and to the attorneys approving the legality of the issuance of the City Note, certified copies of all proceedings and records of the City relating to the Issuer's Note 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 City Note as the same appear from 4 7393412v2 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. 10. 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. 11. Headings. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. The motion for the adoption of the foregoing resolution was seconded by Council Member Maher and upon a vote being taken thereon, the following voted in favor thereof: Manthey, Maher, Kusterman, Reinert and the following voted against the same: Rafferty Whereupon the resolution was declared duly passed and adopted. ATTEST: 5 7393412v2 EXHIBIT A UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY CITY OF $ GENERAL OBLIGATION CAPITAL NOTE, SERIES 2016A The City of , County, Minnesota (the "City"), certifies that it is indebted and for value received promises to pay to the City of Circle Pines, Minnesota, or assigns duly certified on the Certificate of Registration attached to and made a part of this Note (the "Owner"), in the manner hereinafter set forth, the $ principal amount of this Note in the principal installments due on the first day of each month in the years and in the amounts, respectively, as follows, with each such principal installment bearing interest until paid in the amounts as follows: Principal Interest Principal Interest Month/Day/Year Installment Payment Month/Day/Year Installment Payment Interest shall be payable monthly on the first day of each month, commencing 1, 20_, and shall be calculated on the basis of a 360 day year consisting of twelve 30 day months. At the time of final payment of all principal of and interest on this Note, the Owner shall surrender this Note to the City [Finance Director] at the City Hall, in Minnesota. Notwithstanding anything to the contrary herein, the City's proportionate share of any amount transferred from the Capital Account to the Debt Service Account (as such terms are defined in the Issuer Note Resolution, defined hereinafter) upon completion of the Project shall be applied as a credit against the principal or interest payment or payments due on this Note after such transfer. The term "proportionate share" means the original principal amount of this Note as a share of the original principal amount of the Issuer Note. Manner of Payment. The principal of and interest on this Note are payable when due by check or draft mailed or otherwise delivered by or on behalf of the City [Finance Director] to the Owner hereof as of the end of the fifteenth (15th) day of the month, whether or not a business day (the "Record Date"), immediately preceding the applicable payment due date; provided that if the City shall be in default in payment of interest due on said date, whenever money becomes available for payment of such defaulted interest, the City [Finance Director] shall establish a special Record Date with respect to the payment thereof and shall mail written notice of the special Record Date not less than fifteen (15) days prior to such date to the person that was the Owner of the Note as of the close of business of the City on the fifth (5th) business day of the City preceding such mailing, and the Owner as of the special Record Date shall be entitled to A-1 7393412v2 receive the payment of such defaulted interest. All principal of and interest on this Note are payable in any coin or currency of the United States of America which on the date of payment is legal tender for the payment of public and private debts. Date of Payment Not a Business Day. If the nominal date for payment of any principal of or interest on this Note shall not be a business day of the City or of the Owner, then the date for such payment shall be the next such business day and payment on such business day shall have the same force and effect as if made on the nominal date of payment. Issuance; Purpose; General Obligation. This Note is issued as a single instrument under and pursuant to and in full conformity with the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council, the governing body of the City, on 2016 (the "Resolution"), for the purpose of providing money to finance the cost of the acquisition of capital equipment. The terms Issuer Note and Issuer Note Resolution have the meaning provided in the Resolution. This Note 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. Optional Redemption. The Note is subject to redemption and prepayment without penalty at the option of the City, (a) on 1, 20_ and on any date thereafter at a price of par plus accrued interest; and (b) on any date prior to 1, 20_ at a price of par plus accrued interest together with any additional amount necessary to defease the portion of the Issuer Notes equal to the outstanding principal amount of the City Note, all in accordance with the Issuer Note Resolution. Redemption may be in whole or in part, on any date, upon 30 days' prior written notice to the Owner. If redemption is in part, the City may select the specific principal installments hereof, or applicable portions thereof, to be prepaid. Transfer. This Note is transferable, as provided in the Resolution, upon the Register kept by the City [Clerk] at City Hall upon surrender of this Note together with a written instrument of transfer duly executed by the Owner or the Owner's attorney duly authorized in writing, and thereupon a new, fully registered Note in the same aggregate principal amount shall be issued to the transferee in exchange therefore (or the transfer shall be duly recorded on the Register and the Certificate of Registration hereof), upon the payment of charges and satisfaction of applicable conditions, if any, as therein prescribed; provided that such transfer may occur only with respect to the entire Note and all of the remaining principal amount of the sole final maturity hereof. The City may treat and consider the person in whose name this Note is registered as the absolute Owner hereof for the purpose of receiving payment of or on account of the principal of and interest on this Note (except for the payment of interest to the Owner as of a Record Date) and for all other purposes whatsoever. IT IS HEREBY CER I'IF'IED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Note, have been done, have happened and have been performed, in regular and due form, time and manner as required by law; that the City has covenanted and agreed with the holder of this Note that it will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property in the City, without limitation as to A-2 7393412v2 rate or amount, for the years and in amounts sufficient to pay the installments of principal and interest on this Note as they respectively become due; and that this Note, together with all other debts of the City outstanding on the date hereof, being the date of its actual issuance and delivery, does not exceed any constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Lino Lakes, Anoka County, Minnesota, by its City Council has caused this Note to be executed on its behalf by the signatures of its Mayor and of its City Clerk, and the corporate seal of the City having been intentionally omitted as permitted by law, all as of February 22, 2016. AIFEST: e Bartell, City 7393412v2 lerk CITY OF LINO LAKES, MINNESOTA ANOKA COUNTY A-3 CERTIFICATE OF REGISTRATION The transfer of ownership of the principal amount of the attached Note may be made only by the registered owner or the Holder's legal representative last noted below. DATE OF SIGNATURE OF REGISTERED OWNER CITY {CLERK] REGISTRATION City of , 2016 , Minnesota 7393412v2 A-4 BRIGGS BRIGGS April 5, 2016 A N D MORGAN VIA FEDERAL EXPRESS 2200 IDS Center 80 South 8th Street Minneapolis MN 55402-2157 tel 612.977.8400 fax 612.977.8650 Claudia M. Casey (612) 977-8108 ccasey@briggs.com Ms. Julie Bartell City Clerk City of Lino Lakes Lino Lakes City Hall 600 Town Center Parkway Lino Lakes, MN 55014-1182 Re: City of Circle Pines, General Obligation Capital Notes, Series 2016A and City of Lino Lakes, General Obligation Capital Note, Series 2016A Dear Julie: Enclosed for signature by the designated City officials are signature pages for the following documents: 1. Certificate of the City; 2. Signature and Nonlitigation Certificate; and 3. Series 2016A Capital Note. Enclosed is a return federal express envelope for your use in returning the signature pages to our offices by Monday, April 11th. 13,1'1-- Thank 21''Thank you and if you have any questions, please contact me at 612-977-8108. Sincerely, CMC/jmc Enclosures 7592329v1 Claudia M. Casey Paralegal Gc) ate' Briggs and Morgan, Professional Association Minneapolis I St. Paul I www.briggs.com UNITED STATES OF AMERICA STATE OF MINNESOTA ANOKA COUNTY CITY OF LINO LAKES $294,525 GENERAL OBLIGATION CAPITAL NOTE, SERIES 2016A The City of Lino Lakes, Anoka County, Minnesota (the "City"), certifies that it is indebted and for value received promises to pay to the City of Circle Pines, Minnesota, or assigns duly certified on the Certificate of Registration attached to and made a part of this Note (the "Owner"), in the manner hereinafter set forth, the $294,525 principal amount of this Note in the principal installments due on the first day of each month in the years and in the amounts, respectively, as follows, with each such principal installment bearing interest at the rate of 2.00% per annum until paid in the amounts as follows: Principal Interest Principal Interest Month/Day/Year Installment Payment Month/Day/Year Installment Payment 02/01/2017 $4,696.04 02/01/2022 33,000 $1,699.50 08/01/2017 2,945.25 08/01/2022 1,369.50 02/01/2018 $30,525 2,945.25 02/01/2023 33,000 1,369.50 08/01/2018 2,640.00 08/01/2023 1,039.50 02/01/2019 30,525 2,640.00 02/01/2024 33,825 1,039.50 08/01/2019 2,334.75 08/01/2024 701.25 02/01/2020 31,350 2,334.75 02/01/2025 34,650 701.25 08/01/2020 2,021.25 08/01/2025 354.75 02/01/2021 32,175 2,021.25 02/01/2026 35,475 354.75 08/01/2021 1,699.50 Interest shall be payable semiannually on the first day of each month in the years and the amounts set forth above, commencing February 1, 2017, and shall be calculated on the basis of a 360 day year consisting of twelve 30 day months. At the time of final payment of all principal of and interest on this Note, the Owner shall surrender this Note to the City Clerk at the City Hall, in Lino Lakes, Minnesota. Notwithstanding anything to the contrary herein, the City's proportionate share of any amount transferred from the Capital Account to the Debt Service Account (as such terms are defined in the Issuer Note Resolution, defined hereinafter) upon completion of the Project shall be applied as a credit against the principal or interest payment or payments due on this Note after such transfer. The term "proportionate share" means the original principal amount of this Note as a share of the original principal amount of the Issuer Note. Manner of Payment. The principal of and interest on this Note are payable when due by check or draft mailed or otherwise delivered by or on behalf of the City Finance Director to the Owner hereof as of the end of the fifteenth (15th) day of the month, whether or not a business day (the "Record Date"), immediately preceding the applicable payment due date; provided that if the City shall be in default in payment of interest due on said date, whenever money becomes available for payment of such defaulted interest, the City Finance Director shall establish a special Record Date with respect to the payment thereof and shall mail written notice of the 7576477v1 special Record Date not less than fifteen (15) days prior to such date to the person that was the Owner of the Note as of the close of business of the City on the fifth (5th) business day of the City preceding such mailing, and the Owner as of the special Record Date shall be entitled to receive the payment of such defaulted interest. All principal of and interest on this Note are payable in any coin or currency of the United States of America which on the date of payment is legal tender for the payment of public and private debts. Date of Payment Not a Business Day. If the nominal date for payment of any principal of or interest on this Note shall not be a business day of the City or of the Owner, then the date for such payment shall be the next such business day and payment on such business day shall have the same force and effect as if made on the nominal date of payment. Issuance; Purpose; General Obligation. This Note is issued as a single instrument under and pursuant to and in full conformity with the Charter of the City, the Constitution and laws of the State of Minnesota and pursuant to a resolution adopted by the City Council, the governing body of the City, on February 22, 2016 (the "Resolution"), for the purpose of providing money to finance the cost of the acquisition of capital equipment to be used by the North Metro Telecommunications Commission in the operation of a cable communications system. The terms Issuer Note and Issuer Note Resolution have the meaning provided in the Resolution. This Note 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. Optional Redemption. The Note is subject to redemption and prepayment without penalty at the option of the City, (a) on February 1, 2024 and on any date thereafter at a price of par plus accrued interest; and (b) on any date prior to February 1, 2024 at a price of par plus accrued interest together with any additional amount necessary to defease the portion of the Issuer Notes equal to the outstanding principal amount of the City Note, all in accordance with the Issuer Note Resolution. Redemption may be in whole or in part, on any date, upon 30 days' prior written notice to the Owner. If redemption is in part, the City may select the specific principal installments hereof, or applicable portions thereof, to be prepaid. Transfer. This Note is transferable, as provided in the Resolution, upon the Register kept by the City Clerk at City Hall upon surrender of this Note together with a written instrument of transfer duly executed by the Owner or the Owner's attorney duly authorized in writing, and thereupon a new, fully registered Note in the same aggregate principal amount shall be issued to the transferee in exchange therefore (or the transfer shall be duly recorded on the Register and the Certificate of Registration hereof), upon the payment of charges and satisfaction of applicable conditions, if any, as therein prescribed; provided that such transfer may occur only with respect to the entire Note and all of the remaining principal amount of the sole final maturity hereof. The City may treat and consider the person in whose name this Note is registered as the absolute Owner hereof for the purpose of receiving payment of or on account of the principal of and interest on this Note (except for the payment of interest to the Owner as of a Record Date) and for all other purposes whatsoever. 2 7576477v1 IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things `._ required by Charter of the City, the Constitution and laws of the State of Minnesota to be done, to happen and to be performed, precedent to and in the issuance of this Note, have been done, have happened and have been performed, in regular and due form, time and manner as required by law; that the City has covenanted and agreed with the holder of this Note that it will levy a direct, annual, irrepealable ad valorem tax upon all of the taxable property in the City, without limitation as to rate or amount, for the years and in amounts sufficient to pay the installments of principal and interest on this Note as they respectively become due; and that this Note, together with all other debts of the City outstanding on the date hereof, being the date of its actual issuance and delivery, does not exceed any charter, constitutional or statutory limitation of indebtedness. IN WITNESS WHEREOF, the City of Lino Lakes, Anoka County, Minnesota, by its City Council has caused this Note to be executed on its behalf by the signatures of its Mayor and of its Clerk, and the corporate seal of the City having been intentionally omitted as permitted by law, all as of April 14, 2016. CITY OF LINO S, ANO OUNTY, MINNES Mayor 3 7576477v1 CER11FICATE OF REGISTRATION The transfer of ownership of the principal amount of the attached Note may be made only by the registered owner or the Holder's legal representative last noted below. DATE OF REGISTRATION SIGNATURE OF REGISTERED OWNER CITY CLERK City of Lino Lakes, April 14, 2016 Anoka Coun Minnesota 7576477v1 4 CITY OF LINO LAKES, MINNESOTA SIGNATURE AND NONLITIGATION CERTIFICA 1h We, the undersigned, being respectively the duly qualified and acting Mayor and City Clerk of the City of Lino Lakes, Minnesota (the "City"), do hereby certify that we did, in our official capacities as such officers, sign our own proper names by manual signature on the City's $294,525 General Obligation Capital Note, Series 2016A (the "Note"), dated the date of delivery thereof, as the date of original issue and that we are now and were on the date of signing of the Note, the duly qualified and acting officers therein indicated, and duly authorized to execute the same. WE FURTHER CERTIFY that the signature of Jeff Karlson affixed hereto is the true and proper signature of the qualified Administrator of the City. WE FURTHER CERTIFY that the signature of Sarah Cotton affixed hereto is the true and proper signature of the qualified Finance Director of the City. WE FURTHER CERTIFY that the Note has been in all respects duly executed for delivery pursuant to authority conferred upon us as such officers; and no obligations other than the Note have been issued pursuant to such authority, and that none of the proceedings or records which have been certified to the City, or the attorneys approving the same have been in any manner repealed, amended or changed, and that there has been no change in the financial condition of the City or of the facts affecting the. WE FURTHER CERTIFY that there is no litigation pending or, to our knowledge, threatened questioning the organization or boundaries of the City, or the right of any of us to our respective offices, or in any manner questioning our right and power to execute and deliver the Note, or otherwise questioning the validity of the Note or the levy of taxes for the payment of the Note and the interest thereon. Dated: April 14, 2016. 7576154v1 Finance Director Signature page to Signature and Nonlitigation Certificate. 2 7576154v1 CERTIFICATE OF THE CITY OF LINO LAKES, MINNESOTA Pursuant to a Resolution adopted by the City of Lino Lakes, Minnesota (the "City") on February 22, 2016 (the "Note Resolution"), relating to the issuance by the City of a General Obligation Capital Note, Series 2016A (the "City Note"), the City delegated to the Finance Director, Clerk and/or Administrator the authority to determine (i) the principal amount of the City Note provided the principal shall not exceed $340,772; (ii) the interest rate on the City Note provided the interest rate does not exceed 3.0 percent; (iii) the redemption provisions of the City Note; and (iv) the amount of the annual tax levy. We hereby certify the following with respect to the City Note, as follows: 1. The principal of the City Note shall be $294,525.00 and payable in the principal installments due on the first day of each month in the years and the amounts, respectively, with each such principal installment bearing interest at the rate of 2.00% per annum until paid in the amounts as follows: Principal Month/Day/Year Installment 02/01/2017 08/01/2017 02/01/2018 08/01/2018 02/01/2019 08/01/2019 02/01/2020 08/01/2020 02/01/2021 08/01/2021 $30,525 30,525 31,350 32,175 Interest Principal Interest Payment Month/Day/Year Installment Payment $4,696.04 2,945.25 2,945.25 2,640.00 2,640.00 2,334.75 2,334.75 2,021.25 2,021.25 1,699.50 02/01/2022 08/01/2022 02/01/2023 08/01/2023 02/01/2024 08/01/2024 02/01/2025 08/01/2025 02/01/2026 33,000 33,000 33,825 34,650 35,475 $1,699.50 1,369.50 1,369.50 1,039.50 1,039.50 701.25 701.25 354.75 354.75 2. Interest shall be payable semiannually on the first day of each month in the year and the months set forth above, commencing February 1, 2017, and as calculated on the basis of a 360 day year consisting of twelve 30 day months. 3. The City Note is subject to redemption and prepayment without penalty at the option of the City, (a) on February 1, 2024 and on any date thereafter at a price of par plus accrued interest; and (b) on any date prior to February 1, 2024 at a price of par plus accrued interest together with any additional amount that may be necessary to defease the portion of the General Obligation Capital Notes, Series 2016A issued by the City of Circle Pines, Minnesota (the "Issuer Note") equal to the outstanding principal amount of the City Note, all in accordance with the Issuer Note Resolution adopted by the City of Circle Pines, Minnesota on March 22, 2016. 4. As provided in the Resolution, there shall be created a General Obligation Capital Note, Series 2016A Debt Service Account (the "Debt Service Account"), to be administered and maintained by the Finance Director, to be maintained in the manner therein specified until the 7575437v1 City Note and the interest thereon have been fully paid. There are hereby pledged and there shall be credited to the Debt Service Account available funds of the City in an amount sufficient to pay interest due on the City Note on February 1, 2017 and collections of all taxes herein or hereafter levied by the City for the payment of the City Note and interest thereon and any and all other moneys which are properly available and are appropriated by the governing body of the City to the Debt Service Account. 5. As provided in the City Resolution for payment of principal and interest on the City Note, there is hereby levied upon all of the taxable property in the City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with and as part of other general property taxes in the City for the years and in the amounts as follows: Year of Tax Levy Year of Tax Collection Amount 2016-2024 2017-2025 (See attached Levy Schedule) The tax levies are such that if collected in full will produce the 105% of the amount needed to meet when due the principal and interest payments on the City Note. The tax levies shall be irrepealable so long as the City Note is outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. Dated: April 14, 2016. 7575437v1 By By 2 w. Finance Director TAX LEVY CALCULATION City of Lino Lakes, MN Dated Date: 4/14/2016 City's Portion of General Obligation Capital Notes, Series 2016A Call Date: 2/1/2024 runes Tax Levy Tax Collect Bond Pay Available P & I @ Year Year Year Total P &I (1) 105% Net Levy 2015 / 2016 / 2017 4,696.04 (4,696.04) 0.00 0.00 2016 / 2017 / 2018 36,415.50 38,236.28 38,236.28 2017 / 2018 / 2019 35,805.00 37,595.25 37,595.25 2018 / 2019 / 2020 36,019.50 37,820.48 37,820.48 2019 / 2020 / 2021 36,217.50 38,028.38 38,028.38 2020 / 2021 / 2022 36,399.00 38,218.95 38,218.95 2021 / 2022 / 2023 35,739.00 37,525.95 37,525.95 2022 / 2023 / 2024 35,904.00 37,699.20 37,699.20 2023 / 2024 / 2025 36,052.50 37,855.13 37,855.13 2024 / 2025 / 2026 36,184.50 37,993.73 37,993.73 Totals 329,432.54 (4,696.04) 340,973.33 340,973.33 (1) The North Metro Telecommunicaton Commission will pay the 2/1/2017 interest payment for the issue from funds on hand.