HomeMy WebLinkAbout1991-061 Council ResolutionExtract of Minutes of Meeting
of the City Council of the City of
Lino Lakes, Anoka County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City
Council of the City of Lino Lakes, Minnesota, was duly held in the City Hall in
said City on Monday, July 8, 1991, commencing at 6:30 P.M.
The following members were present: William Bohjanen, Sally Kuether, Wesley
Neal, Vernon Reinert and Mayor Harold Bisel
and the following were absent: None
* * *
* * *
The Mayor announced that the next order of business was consideration of
N.—
the bids which had been received for the purchase of the City's $4,260,000
General Obligation Temporary Improvement Bonds, Series 1991A, as advertised for
sale. The City Clerk -Treasurer presented affidavits showing publication of the
notice of sale in the City's official newspaper and in Northwestern Financial
Review, a financial paper published in Minneapolis, Minnesota, which affidavits
were examined and found satisfactory and ordered placed on file.
The City Clerk -Treasurer presented a tabulation of the bids which had been
received in the manner specified in the Official Terms of Offering of the Bonds.
The bids were as follows:
(See Attached)
16655 West Bluemound Road
Suite 290
Brookfield, WI 53005-5935
(414) 782-8222
Fax: (414) 782-2904
2739 Second Avenue S.E.
Cedar Rapids, IA 52403-1434
(319) 363-2221
Fax: (319) 363-6999
AWARD:
SALE:
SPRINGSTED
PUBLIC FINANCE ADVISORS
85 East Seventh Place
Suite 100
Saint Paul, MN 55101-2143
(612) 223-3000
Fax: (612) 223-3002
6800 College Boulevard
Suite 600
Overland Park, KS 6621 1-1 533
(913) 345-8062
Fax: (913) 345-1770
222 South Ninth Street
Suite 2825
Minneapolis, MN 55402-3368
(612) 333-9177
Fax: (612) 333-2363
$4,260,000
CITY OF LINO LAKES, MINNESOTA
GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1991A
FBS INVESTMENT SERVICES, INC.
NORWEST INVESTMENT SERVICES, INCORPORATED
MERRILL LYNCH CAPITAL MARKETS
And Associate
July 8, 1991
Moody's Rating: Baa
Bidder
Interest
Rate
Net Interest
Price Cost & Rate
FBS INVESTMENT SERVICES, INC.
)RWEST INVESTMENT SERVICES,
INCORPORATED
MERRILL LYNCH CAPITAL MARKETS
Juran & Moody, Incorporated
CRONIN AND COMPANY, INCORPORATED
Edward D. Jones & Company
Marquette Bank Minneapolis, N.A.
Robert W. Baird & Company, Incorporated
Dougherty, Dawkins, Strand &
Bigelow, Incorporated
Park Investment Corporation
John G. Kinnard & Company Incorporated
PIPER, JAFFRAY & HOPWOOD
INCORPORATED
American National Bank Saint Paul
Miller, Johnson & Kuehn, Inc.
Moore, Juran and Company, Incorporated
Craig-Hallum, Incorporated
DAIN BOSWORTH INCORPORATED
5.60% August 1, 1994 $4,230,180.00 $745,500.00
(5.8333%)
5.70% August 1, 1994 $4,231,245.00 $757,215.00
(5.9250%)
5.75% August 1, 1994 $4,228,050.00 $766,800.00
(6.0000%)
6.10% August 1, 1994 $4,228,050.00 $811,530.00
(6.3500%)
These Bonds are being reoffered at par.
BBI: 7.10
Average Maturity: 3 Years
After due consideration of the bids, Member
Reinert then
introduced the following resolution and moved its adoption:
RESOLUTION NO. 61-91
A RESOLUTION AWARDING THE SALE OF $4,260,000
GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS, SERIES 1991A;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Lino Lakes, Anoka County,
Minnesota (City) as follows:
Section 1. Sale of Bonds.
1.01. The bid of FBS Investment Services, Inc. (Purchaser) to
purchase $4,260,000 General Obligation Temporary Improvement Bonds, Series 1991A
(Bonds) of the City described in the Official Terms of Offering thereof is found
and determined to be the highest and best bid received pursuant to duly
advertised notice of sale and is accepted, the bid being to purchase the Bonds
at a price of $4,230,180 plus accrued interest to date of delivery, for Bonds
bearing interest at the rate of 5.60 % per annum. Net effective interest rate:
5.8333%
1.02. The sum of $ 2,130 being the amount bid by the Purchaser in
excess of $4,228,050 will be credited to the Debt Service Fund hereinafter
created. The City Clerk -Treasurer is directed to deposit the good faith check
of the Purchaser, pending completion of the sale of the Bonds, and to return the
good faith checks of the unsuccessful bidders forthwith. The Mayor and City
Clerk -Treasurer are directed to execute a contract with the Purchaser on behalf
of the City.
1.03. The City will forthwith issue and sell the Bonds in the total
principal amount of $4,260,000, originally dated August 1, 1991, in the
denomination of $5,000 each or any integral multiple thereof, numbered No. R-1,
upward, bearing interest as above set forth, and maturing on August 1, 1994.
1.04. Optional Redemption. The City may elect on August 1, 1993 and on
any date thereafter to prepay Bonds. Redemption may be in whole or in part of
the Bonds subject to prepayment. If only part of the Bonds are called for
prepayment the specific Bonds to be prepaid will be chosen by lot by the
Registrar. Prepayments will be at a price of par plus accrued interest.
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered
form. The interest thereon and, upon surrender of each Bond, the principal
amount thereof, is payable by check or draft issued by the Registrar described
in Section 2.02.
2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the
last interest payment date preceding the date of authentication to which inter-
est on the Bond has been paid or made available for payment, unless (i) the date
of authentication is an interest payment date to which interest has been paid or
made available for payment, in which case such Bond will be dated as of the date
of authentication, or (ii) the date of authentication is prior to the first
interest payment date, in which case such Bond will be dated as of the date of
original issue. The interest on the Bonds is payable on February 1 and August 1
of each year, commencing August 1, 1992, to the owner of record thereof as of
the close of business on the fifteenth day of the immediately preceding month,
whether or not such day is a business day.
2.03. Registration. The City will appoint and maintain, a bond registrar,
transfer agent, authenticating agent and paying agent (Registrar). The effect
of registration and the rights and duties of the City and the Registrar with
respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate
trust office a bond register in which the Registrar provides for the
registration of ownership of Bonds and the registration of transfers and
exchanges of Bonds entitled to be registered, transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly
endorsed by the registered owner thereof or accompanied by a written
instrument of transfer, in form satisfactory to the Registrar, duly execut-
ed by the registered owner thereof or by an attorney duly authorized by the
registered owner in writing, the Registrar will authenticate and deliver,
in the name of the designated transferee or transferees, one or more new
Bonds of a like aggregate principal amount and maturity, as requested by
the transferor. The Registrar may, however, close the books for registra-
tion of any transfer after the fifteenth day of the month preceding each
interest payment date and until such interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered
owner for exchange the Registrar will authenticate and deliver one or more
new Bonds of a like aggregate principal amount and maturity, as requested
by the registered owner or the owner's attorney in writing.
(d) Cancellation. Bonds surrendered upon any transfer or exchange
will be promptly cancelled by the Registrar and thereafter disposed of as
directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to
the Registrar for transfer, the Registrar may refuse to transfer the Bond
until the Registrar is satisfied that the endorsement on the Bond or
separate instrument of transfer is valid and genuine and that the requested
transfer is legally authorized. The Registrar will incur no liability for
the refusal, in good faith, to make transfers which it, in its judgment,
deems improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the
person in whose name a Bond is registered in the bond register as the
absolute owner of the Bond, whether the Bond is overdue or not, for the
purpose of receiving payment of, or on account of, the principal of and
interest on such Bond and for all other purposes, and payments so made to
a registered owner or upon the owner's order will be valid and effectual to
satisfy and discharge the liability upon such Bond to the extent of the sum
or sums so paid.
(g) Taxes, Fees and Charges. For a transfer or exchange of Bonds,
the Registrar may impose a charge upon the owner thereof sufficient to
reimburse the Registrar for any tax, fee or other governmental charge
required to be paid with respect to the transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes
mutilated or is destroyed, stolen or lost, the Registrar will deliver a new
Bond of like amount, number, maturity date and tenor in exchange and
substitution for and upon cancellation of the mutilated Bond or in lieu of
and in substitution for a Bond destroyed, stolen or lost, upon the payment
of the reasonable expenses and charges of the Registrar in connection
therewith; and, in the case of a Bond destroyed, stolen or lost, upon
filing with the Registrar of evidence satisfactory to it that the Bond was
destroyed, stolen or lost, and of the ownership thereof, and upon
furnishing to the Registrar of an appropriate bond or indemnity in form,
substance and amount satisfactory to it and as provided by law, in which
both the City and the Registrar must be named as obligees. Bonds so sur-
rendered to the Registrar will be cancelled by the Registrar and evidence
of such cancellation must be given to the City. If the mutilated,
destroyed, stolen or lost Bond has already matured or been called for
redemption in accordance with its terms it is not necessary to issue a new
Bond prior to payment.
(i) Redemption. In the event any of the Bonds are called for redemp-
tion, notice thereof identifying the Bonds to be redeemed will be given by
the Registrar by mailing a copy of the redemption notice by first class
mail (postage prepaid) not more than 60 and not less than 30 days prior to
the date fixed for redemption to the registered owner of each Bond to be
redeemed at the address shown on the registration books kept by the Regis-
trar and by publishing the notice in the manner required by law. Failure
to give notice by publication or by mail to any registered owner, or any
defect therein, will not affect the validity of any proceeding for the
redemption of Bonds. Bonds so called for redemption will cease to bear
interest after the specified redemption date, provided that the funds for
the redemption are on deposit with the place of payment at that time.
2.04. Appointment of Initial Registrar. The City appoints
Norwest Bank Minnesota, National Association, Minneapolis , Minnesota, as the
initial Registrar. The Mayor and the City Clerk -Treasurer are authorized to
execute and deliver, on behalf of the City, a contract with the Registrar. Upon
merger or consolidation of the Registrar with another corporation, if the
resulting corporation is a bank or trust company authorized by law to conduct
such business, such corporation is authorized to act as successor Registrar.
The City agrees to pay the reasonable and customary charges of the Registrar for
the services performed. The City reserves the right to remove the Registrar
upon 30 days' notice and upon the appointment of a successor Registrar, in which
event the predecessor Registrar must deliver all cash and Bonds in its
possession to the successor Registrar and must deliver the bond register to the
successor Registrar. On or before each principal or interest due date, without
further order of this Council, the Clerk -Treasurer must transmit to the
Registrar moneys sufficient for the payment of all principal and interest then
due.
2.05. Execution, Authentication and Delivery. The Bonds will be prepared
under the direction of the Clerk -Treasurer and executed on behalf of the City by
the signatures of the Mayor and the Clerk -Treasurer, provided that all
signatures may be printed, engraved or lithographed facsimiles of the originals.
In case any officer whose signature or a facsimile of whose signature appears on
the Bonds ceases to be such officer before the delivery of any Bond, such
signature or facsimile will nevertheless be valid and sufficient for all
purposes, the same as if the officer had remained in office until delivery.
Notwithstanding such execution, a Bond will not be valid or obligatory for any
purpose or entitled to any security or benefit under this Resolution unless and
until a certificate of authentication on the Bond has been duly executed by the
manual signature of an authorized representative of the Registrar. Certificates
of authentication on different Bonds need not be signed by the same rep-
resentative. The executed certificate of authentication on each Bond is
conclusive evidence that it has been authenticated and delivered under this
Resolution. When the Bonds have been so prepared, executed and authenticated,
the Clerk -Treasurer shall deliver the same to the Purchaser upon payment of the
purchase price in accordance with the contract of sale heretofore made and
executed, and the Purchaser is not obligated to see to the application of the
purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed
definitive Bonds one or more typewritten temporary Bonds in substantially the
form set forth in Section 3 with such changes as may be necessary to reflect
more than one maturity in a single temporary bond. Upon the execution and
delivery of definitive Bonds the temporary Bonds will be exchanged therefor and
cancelled.
Section 3. Form of Bond.
3.01. The Bonds will be printed in substantially the following form:
[Face of the Bond]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF LINO LAKES
�.. GENERAL OBLIGATION TEMPORARY IMPROVEMENT BOND, SERIES 1991A
Date of
Rate Maturity Original Issue
August 1, 1994 August 1, 1991
No.
CUSIP
The City of Lino Lakes, Minnesota, a duly organized and existing municipal
corporation in Anoka County, Minnesota (City), acknowledges itself to be
indebted and for value received hereby promises to pay to
or registered assigns, the principal sum of $ on the maturity date
specified above with interest thereon from the date hereof at the annual rate
specified above, payable February 1 and August 1 in each year, commencing
August 1, 1992, to the person in whose name this Bond is registered at the close
of business on the fifteenth day (whether or not a business day) of the immedi-
ately preceding month. The interest hereon and, upon presentation and surrender
hereof, the principal hereof are payable in lawful money of the United States of
America by check or draft by
Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating
Agent, or its designated successor under the Resolution described herein. For
the prompt and full payment of such principal and interest as the same respec-
tively become due, the full faith and credit and taxing powers of the City have
been and are hereby irrevocably pledged.
The City may elect on August 1, 1993, and on any date thereafter, to prepay
Bonds of this issue. Redemption may be in whole or in part of the Bonds subject
to prepayment. If only part of the Bonds are called for prepayment the specific
Bonds to be prepaid will be chosen by lot by the Registrar. Prepayments will be
at a price of par plus accrued interest.
The City Council has designated the Bonds as "qualified tax exempt obliga-
tions" within the meaning of Section 265(b)(3) of the Internal Revenue Code of
1986, as amended (the Code) relating to disallowance of interest expense for
financial institutions and within the $10 million limit allowed by the Code for
the calendar year of issue.
Additional provisions of this Bond are contained on the reverse hereof and
those provisions have the same effect as though fully set forth in this place.
This Bond will not be valid or become obligatory for any purpose or be
entitled to any security or benefit under the Resolution until the Certificate
of Authentication hereon has been executed by the Bond Registrar by manual
signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Lino Lakes, Anoka County, Minnesota, by its
City Council, has caused this Bond to be executed on its behalf by the facsimile
signatures of the Mayor and City Clerk -Treasurer and has caused this Bond to be
dated as of the date set forth below.
Dated:
CITY OF LINO LAKES, MINNESOTA
(facsimile) (facsimile)
City Clerk -Treasurer Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned
within.
By
Authorized Representative
[Reverse of the Bond]
This Bond is one of an issue in the aggregate principal amount of
$4,260,000 all of like original issue date and tenor, except as to number and
denomination, issued pursuant to a resolution adopted by the City Council on
July 8, 1991 (the Resolution), for the purpose of providing money to temporarily
defray the expenses incurred and to be incurred in making local improvements,
pursuant to and in full conformity with the Constitution and laws of the State
of Minnesota, including Minnesota Statutes, Chapter 429, and the principal
hereof and interest hereon are payable primarily from special assessments
against property specially benefited by local improvements, 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
issue and sell definitive or additional temporary bonds to redeem the Bonds and
to levy taxes on all of the taxable property in the City in the event of any
deficiency in special assessments pledged, which 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.
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
a written instrument of transfer satisfactory to the Bond Registrar, duly
executed by the registered owner or the owner's attorney; and may also be
surrendered in exchange for Bonds of other authorized denominations. Upon such
transfer or exchange the City will cause a new Bond or Bonds to be issued in the
name of the transferee or registered owner, of the same aggregate principal
amount, bearing interest at the same rate and maturing on the same date, subject
to reimbursement for any tax, fee or governmental charge required to be paid
with respect to 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 Constitution and laws of the State of
Minnesota [and the City's home rule charter] to be done, to exist, to happen and
to be performed preliminary to and in the issuance of this Bond in order to make
it a valid and binding general obligation of the City in accordance with its
terms, have been done, do exist, have happened and have been performed as so
required, and that the issuance of this Bond does not cause the indebtedness of
the City to exceed any constitutional or statutory limitation of indebtedness.
(Form of certificate to be printed on the reverse side of each Bond,
following a full copy of the legal opinion.)
I certify that the above is a full, true and correct copy of the legal
opinion rendered by bond counsel on the issue of Bonds of the City of Lino
Lakes, Minnesota, which includes the within Bond, dated as of the date of
delivery of and payment for the Bonds.
(Facsimile Signature)
City Clerk -Treasurer
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:
TEN COM -- as tenants
in common
UNIF GIFT MIN ACT Custodian
(Cust) (Minor)
TEN ENT -- as tenants
by entireties under Uniform Gifts or
Transfers to Minors
JT TEN -- as joint tenants with
right of survivorship and
not as tenants in common
Act
(State)
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers
unto the within Bond and all rights
thereunder, and does hereby irrevocably constitute and appoint
attorney to transfer the said Bond on the books kept
for registration of the within Bond, with full power of substitution in the
premises.
Dated:
Notice: The assignor's signature to this assignment must correspond with
the name as it appears upon the face of the within Bond in every
particular, without alteration or any change whatever.
Signature Guaranteed:
Signature(s) must be guaranteed 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 infor-
mation concerning the assignee requested below is provided.
Name and Address:
(Include information for all joint owners if
this Bond is held by joint account.)
Please insert social security or
other identifying number of assignee
3.02. The City Clerk -Treasurer is directed to obtain a copy of the
proposed approving legal opinion of Holmes & Graven, Chartered, Minneapolis,
Minnesota, which is to be complete except as to dating thereof and to cause the
opinion to be printed on each Bond, together with a certificate to be signed by
the facsimile signature of the Clerk -Treasurer in substantially the form set
forth in the form of Bond. The Clerk -Treasurer is authorized and directed to
execute the certificate in the name of the City upon receipt of the opinion and
to file the opinion in the City offices.
Section 4. Payment: Security: Pledges and Covenants.
4.01. The Bonds are payable from the General Obligation Temporary
Improvement Bonds, Series 1991A Debt Service Fund (Debt Service Fund) hereby
created, and special assessments (Assessments) levied or to be levied for the
improvements (Improvements) financed by the Bonds are hereby pledged pledged to
the Debt Service Fund. If any payment of principal or interest on the Bonds
becomes due when there is not sufficient money in the Debt Service Fund to pay
the same, the Clerk -Treasurer is authorized and directed to pay such principal
or interest from the general fund of the City, and the general fund will be
reimbursed for such advances out of the proceeds of Assessments for the
Improvements when collected. There is appropriated to the Debt Service Fund all
(i) capitalized interest financed from Bond proceeds, if any, (ii) any amount
over the minimum purchase price paid by the Purchaser and (iii) accrued interest
paid by the Purchaser upon closing and delivery of the Bonds.
4.02. It is determined that the Improvements to be financed by the Bonds
do and will directly and indirectly benefit the abutting property, and the City
hereby covenants with the holders from time to time of the Bonds as follows:
(a) The City has caused or will cause the Assessments for the Im-
provements to be promptly levied so that the first installment will be
collectible not later than 1992 and will take all steps necessary to assure
prompt collection, and the levy of the Assessments is hereby authorized.
The City Council will cause all further actions and proceedings relative
to the making and financing of the Improvements financed hereby to be taken
with due diligence that are required for the construction of each Improve-
ment financed wholly or partly from the proceeds of the Bonds, and for the
final and valid levy of the Assessments and the appropriation of any other
funds needed to pay the Bonds and interest thereon when due.
(b) In the event of a current or anticipated deficiency in the
Assessments, the City Council will levy ad valorem taxes in the amount of
the deficiency.
(c) The City will keep complete and accurate books and records
showing: receipts and disbursements in connection with the Improvements,
Assessments levied therefor and other funds appropriated for their payment,
collections thereof and disbursements therefrom, moneys on hand and, the
balance of unpaid Assessments.
(d) The City will cause its books and records to be audited at least
annually and will furnish copies of such audit reports to any interested
person upon request.
4.03. It is determined that the estimated collections of Assessments and
interest thereon for payment of principal and interest on the Bonds will produce
at least five percent in excess of the amount needed to meet when due, the
principal and interest payments on the Bonds and that no tax levy is needed at
this time.
4.04. The City Clerk -Treasurer is directed to file a certified copy of
this resolution with the County Auditor of Anoka County and to obtain the
certificate required by Minnesota Statutes, Section 475.63.
4.05. In accordance with its statutory duties under Minnesota Statutes,
Section 429.091, Subdivision 5, the City covenants and agrees with the holders
of the Bonds that if the Bonds cannot be paid at maturity from the proceeds of
the Assessments or from other funds appropriated by the City Council, the Bonds
will be paid from the proceeds of definitive or additional temporary bonds that
will be issued and sold prior to the maturity date of the Bonds.
Section 5. Authentication of Transcript.
5.01. The officers of the City are authorized and directed to prepare and
furnish to the Purchaser and to the attorneys approving the Bonds certified
copies of proceedings and records of the City relating to the Bonds and to the
financial condition and affairs of the City, and such other certificates,
affidavits and transcripts as may be required to show the facts within their
knowledge or as shown by the books and records in their custody and under their
control, relating to the validity and marketability of the Bonds and such
instruments, including any heretofore furnished, may be deemed representations
of the City as to the facts stated therein.
5.02. The Mayor and City Clerk -Treasurer are authorized and directed to
certify that they have examined the Official Statement prepared and circulated
in connection with the issuance and sale of the Bonds and that to the best of
their knowledge and belief the Official Statement is a complete and accurate
representation of the facts and representations made therein as of the date of
the Official Statement.
Section 6. Tax Covenant.
6.01. The City covenants and agrees with the holders from time to time of
the Bonds that it will not take or permit to be taken by any of its officers,
employees or agents any action which would cause the interest on the Bonds to
become subject to taxation under the Internal Revenue Code of 1986, as amended
(the Code), and the Treasury Regulations promulgated thereunder, in effect at
the time of such actions, and that it will take or cause its officers, employees
or agents to take, all affirmative action within its power that may be necessary
to ensure that such interest will not become subject to taxation under the Code
and applicable Treasury Regulations, as presently existing or as hereafter
amended and made applicable to the Bonds.
6.02. (a) The City will comply with requirements necessary under the Code
to establish and maintain the exclusion from gross income of the interest on the
Bonds under Section 103 of the Code, including without limitation requirements
relating to temporary periods for investments, limitations on amounts invested
at a yield greater than the yield on the Bonds, and the rebate of excess invest-
ment earnings to the United States if the Bonds (together with other obligations
reasonably expected to be issued in calendar year 1991) exceed the small -issuer
exception amount of $5,000,000.
(b) For purposes of qualifying for the small issuer exception to the
federal arbitrage rebate requirements, the City hereby finds, determines and
declares that the aggregate face amount of all tax-exempt bonds (other than
private activity bonds) issued by the City (and all subordinate entities of the
City) during the calendar year in which the Bonds are issued and outstanding at
one time is not reasonably expected to exceed $5,000,000, all within the meaning
of Section 148(f)(4)(C) of the Code.
6.03. The City further covenants not to use the proceeds of the Bonds or
to cause or permit them or any of them to be used, 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.
6.04. In order to qualify the Bonds as "qualified tax-exempt obligations"
within the meaning of Section 265(b)(3) of the Code, the City makes the
following factual statements and representations:
(a) the Bonds are not "private activity bonds" as defined in Section
141 of the Code;
(b) the City hereby designates the Bonds as "qualified tax-exempt
obligations" for purposes of Section 265(b)(3) of the Code;
(c) 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
subordinate entities of the City) during calendar year 1991 will not exceed
$10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City
during calendar year 1991 have been designated for purposes of Section
265(b)(3) of the Code.
6.05. The City will use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate the designations
made by this section.
The motion for the adoption of the foregoing resolution was duly seconded
by Member
Kuether , and upon vote being taken thereon, the
following voted in favor thereof: William Bohjanen, Sally Kuether, Wesley Neal,
Vernon Reinert and Mayor Harold Bisel
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.
STATE OF MINNESOTA
COUNTY OF ANOKA
CITY OF LINO LAKES
) SS.
I, the undersigned, being the duly qualified and acting Clerk -Treasurer of
the City of Lino Lakes, Anoka County, Minnesota, do hereby certify that I have
carefully compared the attached and foregoing extract of minutes of a regular
meeting of the City Council of the City held on Monday, July 8, 1991, with the
original minutes on file in my office and the extract is a full, true and
correct copy of the minutes insofar as they relate to the issuance and sale of
$4,260,000 General Obligation Temporary Improvement Bonds, Series 1991A of the
City.
WITNESS My hand officially as such Clerk -Treasurer and the corporate seal
of the City this In_day of July , 1991.
City Clerk reasurer
Lino Lakes, Minnesota
(SEAL)
LN140-22.RAW