HomeMy WebLinkAbout#14 - 2019A Bond IssuanceSTAFF REPORT
DATE: October 1, 2019
REGULAR
TO: Honorable Mayor and City Councilmembers
FROM: Sue Iverson – Finance Director
AGENDA ITEM: 2019A Bonding
BACKGROUND:
Last year, the City Council chose to defer bonding for 2018 and combine both 2018 and 2019 projects
identified for bonding in 2019. These include street improvement projects (South Tri Lakes – 2018 Street
Improvements and Old Village Phase 4), equipment purchase Tender 1 and SCBA replacements, and
utility projects which include Old Village Phase 4.
At the September 3rd meeting, Council approved the sale of the bonds. Staff participated in a bond rating
call with Moody’s on September 16th. The City’s bond rating has remained at Aa1.
ISSUE BEFORE COUNCIL:
Should the Council authorize the issuance and awarding the sale of $4,060,000 general obligation bonds?
PROPOSAL DETAILS/ANALYSIS:
The total bond amount and financing plan has not changed from what was presented to Council on
September 3rd.
The sale is schedule to happen the morning of October 1st. Tammy Omdahl from Northland will be at the
meeting to provide the results, which will be used to update the resolution in your packet.
FISCAL IMPACT:
As previously discussed, the bond proceeds are broken down as follows:
The improvement portion of the bonds of approximately $2.16 million covers the street costs. The
equipment portion of the bonds of approximately $705,000 covers the Tender 1 and SCBA replacements.
These two items will be paid back through the general fund debt. Annual payment will be around $326,000
before reducing for special assessment revenue. Special assessment revenue should account for about a
third of the payment.
The sewer portion of the bonds of approximately $425,000 covers the Old Village Phase 4 project, and
annual payments will be around $35,000 will be paid from sewer revenues.
The water portion of the bonds of approximately $385,000 covers the Old Village Phase 4 project, and
annual payments will be around $30,000 will be paid from water revenues.
The storm water portion of the bonds of approximately $385,000 is for Old Village Phase 4. The annual
payment of around $30,000 will be paid from storm water revenues.
Interest rates are low at this time and it is likely that in the current environment the bids received from the
underwriters will include premiums. When this happens the purchaser will pay the City an amount in
excess of the par amount in exchange for a higher coupon or interest rate. The Council has chosen to have
any premium deposited in the Debt Service Fund and used to pay principal and interest should this happen.
OPTIONS:
1) Approve Resolution No. 2019-070
2) Amend and then Approve Resolution No 2019-070
3) Do not authorize the issuance and sale of bonds
RECOMMENDATION:
Motion to approve Resolution No. 2019-070 A Resolution Awarding the Dale of $4,060,000 General
Obligation Bonds, Series 2019A Fixing Their Form and Specifications; Directing Their Execution and
Delivery; and Providing for Their Payment.
ATTACHMENTS:
• Resolution No 2019-070
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Extract of Minutes of Meeting
of the City Council of the City of
Lake Elmo, Washington County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Lake Elmo, Minnesota, was duly held in the City Hall in said City on Tuesday, October 1,
2019, commencing at 7:00 P.M.
The following members were present:
and the following were absent:
* * * * * * * * *
The Mayor announced that the next order of business was consideration of the proposals
which had been received for the purchase of the City’s approximately $4,060,000 General
Obligation Bonds, Series 2019A.
The City Finance Director presented a tabulation of the proposals that had been received
in the manner specified in the Notice of Sale for the Bonds. The proposals are as set forth in
Exhibit A attached.
After due consideration of the proposals, Member ________ then introduced the
following written resolution, the reading of which was dispensed with by unanimous consent,
and moved its adoption:
2
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RESOLUTION _______
RESOLUTION AWARDING THE SALE OF $4,060,000
GENERAL OBLIGATION BONDS, SERIES 2019A
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 Lake Elmo, Washington County,
Minnesota (the “City”) in regular meeting assembled as follows:
Section 1. Background.
1.01 The City is authorized by Minnesota Statutes, Chapters 429 and Chapter 475, as
amended (collectively, the “Improvement Act”) to provide financing for various public street
improvements in the City (the “Assessable Improvements”).
1.02 The City is authorized by Minnesota Statutes, Section 444.075 and Minnesota
Statutes, Chapter 475, as amended (collectively, the “Utility Act”), to finance all or a portion of
the cost of certain improvements to the sewer, water and storm water systems (the “Utility
Systems”) of the City (the “Utility Improvements”) by the issuance of general obligation bonds
of the City payable from the net revenues of the water, sewer, and storm water utility systems of
the City.
1.03 The City is authorized by Minnesota Statutes, Section 412.301 (the “Equipment
Act”) to finance the acquisition of items of capital equipment (the “Equipment”), subject to
certain limitations contained in the Equipment Act.
1.04 As required by the Equipment Act, (i) the expected useful life of each item of
Equipment is or will be at least as long as the term of the of the Equipment Certificates (as
defined below); and (ii) the principal amount of the Equipment Certificates will not exceed
0.25% of the estimated market value of taxable property in the City for taxes payable in 2019,
which is the market value as last finally equalized.
1.05 The City is authorized by Minnesota Statutes, Section 475.60, subdivision 2(9) to
negotiate the sale of the Bonds, it being determined that the City has retained an independent
municipal advisor in connection with such sale. The actions of the City staff and the City’s
municipal advisor in negotiating the sale of the Bonds are ratified and confirmed in all aspects.
Section 2. Sale of Bonds.
2.01 Authorization. It is hereby determined that it is necessary to provide financing for
the Assessable Improvements, the Utility Improvements, and the Equipment and to finance those
capital expenditures through the issuance of the City’s $4,060,000 General Obligation Bonds,
Series 2019A (the “Bonds”).
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2.02. Acceptance of Offer. The proposal of _________________, in __________,
________________ (the “Purchaser”) to purchase the Bonds is hereby found and determined to
be a reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price
of $__________________ ($4,060,000.00 par amount, plus original issue premium of
$____________________, less underwriter’s discount of $____________________), for Bonds
bearing interest as follows:
Year of
Maturity
Interest
Rate
Year of
Maturity
Interest
Rate
Year of
Maturity
Interest
Rate
2021 2026 2031
2022 2027 2032
2023 2028 2033
2024 2029 2034
2025 2030 2035
2.03. Purchase Contract. Any amount paid by the Purchaser over the minimum purchase
price shall be credited to the Debt Service Fund hereinafter created, or deposited in the accounts in
the Project Fund hereinafter created, as determined by the City Finance Director after consultation
with the City’s municipal advisor. The City Finance Director is directed to retain the good faith
check of the Purchaser, pending completion of the sale of the Bonds. The Mayor and City Clerk
are authorized to execute a contract with the Purchaser on behalf of the City, if requested by the
Purchaser.
2.04. Terms and Principal Amounts of Bonds. The City will forthwith issue and sell
the Bonds pursuant to the Improvement Act, the Equipment Act, and the Utility Act
(collectively, the “Act”), in the total principal amount of $4,060,000, originally dated the date of
delivery, the Bonds being in fully registered form and issued in the denomination of $5,000 each
or any integral multiple thereof, numbered No. R-1 and upward, bearing interest as above set
forth, and maturing on February 1 in the years and amounts as follows:
Year Amount Year Amount Year Amount
2021 $325,000 2026 $375,000 2031 $80,000
2022 355,000 2027 380,000 2032 80,000
2023 360,000 2028 390,000 2033 90,000
2024 360,000 2029 395,000 2034 90,000
2025 370,000 2030 315,000 2035 95,000
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$2,160,000 of the Bonds (the “Improvement Bonds”) maturing in the amounts and on the dates
set forth below are being issued to finance the cost of the Assessable Improvements:
Year Amount Year Amount
2021 $190,000 2026 $220,000
2022 205,000 2027 220,000
2023 210,000 2028 225,000
2024 210,000 2029 230,000
2025 215,000 2030 235,000
$705,000 of the Bonds (the “Equipment Certificates”) maturing in the amounts and on the dates
set forth below are being issued to finance the cost of the Equipment:
Year Amount Year Amount
2021 $70,000 2026 $80,000
2022 75,000 2027 80,000
2023 75,000 2028 85,000
2024 75,000 2029 85,000
2025 80,000
$1,195,000 of the Bonds (the “Utility Bonds”) maturing in the amounts and on the dates set forth
below are being issued to finance the cost of the Utility Improvements:
Year Amount Year Amount Year Amount
2021 $65,000 2026 $75,000 2031 $80,000
2022 75,000 2027 80,000 2032 80,000
2023 75,000 2028 80,000 2033 90,000
2024 75,000 2029 80,000 2034 90,000
2025 75,000 2030 80,000 2035 95,000
As may be requested by the Purchaser, one or more term Bonds may be issued having
mandatory sinking fund redemption and final maturity amounts conforming to the foregoing
principal repayment schedule, and corresponding additions may be made to the provisions of the
applicable Bond(s).
2.05. Optional Redemption. The City may elect on February 1, 2028, and on any day
thereafter to prepay Bonds maturing on or after February 1, 2029. Redemption may be in whole or
in part and if in part, at the option of the City and in such manner as the City will determine. If less
than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in
Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine by
lot the amount of each participant’s interest in such maturity to be redeemed and each participant
will then select by lot the beneficial ownership interests in such maturity to be redeemed.
Prepayments will be at a price of par plus accrued interest.
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Section 3. Form; Registration.
3.01. 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 herein.
3.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest
payment date preceding the date of authentication to which interest 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 the 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 the 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, 2020,
to the registered owners of record thereof as of the close of business on the 15th day of the
immediately preceding month, whether or not that day is a business day.
3.03. Registration. The City will appoint, and will maintain, a bond registrar, transfer
agent, authenticating agent and paying agent (the “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 will 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 any Bond duly
endorsed by the registered owner thereof or accompanied by a written instrument of
transfer, in form satisfactory to the Registrar, duly executed 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 registration of any
transfer after the 15th day of the month preceding each interest payment date and until
that interest payment date.
(c) Exchange of Bonds. Whenever any 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. All Bonds surrendered upon a 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 any Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer such Bond until the Registrar is
satisfied that the endorsement on such Bond or separate instrument of transfer is valid
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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 any Bond is at any time registered in the bond register as the absolute
owner of such Bond, whether such 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 all such payments so made to any such registered owner or upon the
owner’s order will be valid and effectual to satisfy and discharge the liability upon the
Bond to the extent of the sum or sums to be paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge upon the
owner thereof for every transfer or exchange of Bonds, sufficient to reimburse the
Registrar for any tax, fee or other governmental charge required to be paid with respect to
such transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If any Bond is 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 any
such mutilated Bond or in lieu of and in substitution for any such 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 such Bond was destroyed, stolen or
lost, and of the ownership thereof, and upon furnishing to the Registrar an appropriate
bond or indemnity in form, substance and amount satisfactory to the Registrar and as
provided by law, in which both the City and the Registrar will be named as obligees. All
Bonds so surrendered 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
will not be necessary to issue a new Bond prior to payment.
(i) Redemption. In the event any of the Bonds are called for redemption,
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 less than
30 days prior to the date of redemption to the registered owner of each Bond to be
redeemed at the address shown on the registration books kept by the Registrar and by
publishing the notice if 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 the
proceedings 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.
3.04. Appointment of Initial Registrar. The City appoints U.S. Bank National
Association, St. Paul, Minnesota, as the initial Registrar. The Mayor and the City Clerk 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
610862v3LA515-54 7
bank or trust company authorized by law to conduct such business, the resulting 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 City Finance Director
must transmit to the Registrar monies sufficient for the payment of all principal and interest then
due.
3.05. Execution, Authentication and Delivery. The Bonds will be prepared under the
direction of the City Finance Director and will be executed on behalf of the City by the
signatures of the Mayor and the City Clerk, provided that all signatures may be printed, engraved
or lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose
signature appears on the Bonds ceases to be such officer before the delivery of any Bond, that
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, no Bond will 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 a 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 representative. The executed certificate of
authentication on each Bond will be conclusive evidence that it has been authenticated and
delivered under this Resolution. When the Bonds have been so prepared, executed and
authenticated, the City Finance Director will deliver the same to the Purchaser thereof upon
payment of the purchase price in accordance with the contract of sale heretofore made and
executed, and the Purchaser will not be obligated to see to the application of the purchase price.
3.07. Form of Bonds. The Bonds will be printed or typewritten in substantially the
form set forth in Exhibit B attached hereto.
3.08. Approving Legal Opinion. The City Finance Director is authorized and directed
to obtain a copy of the proposed approving legal opinion of Kennedy & Graven, Chartered,
Minneapolis, Minnesota, which will be complete except as to dating thereof and will cause the
opinion to be printed on or accompany each Bond.
3.09 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 Exhibit B
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 4. Funds and Accounts; Security; Payment.
4.01. Debt Service Fund and Accounts Maintained Therein. For the convenience and
proper administration of the moneys to be borrowed and repaid on the Bonds, and to provide
adequate and specific security for the Purchaser and holders from time to time of the Bonds, there is
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hereby created a special fund to be designated the “General Obligation Bonds, Series 2019A Debt
Service Fund” (the “Debt Service Fund”). The Debt Service Fund shall be administered and
maintained by the Finance Director as a bookkeeping account separate and apart from all other
funds maintained in the official financial records of the City. The Debt Service Fund will be
maintained in the manner herein specified until all of the Bonds and the interest thereon have been
fully paid. The City will maintain the following accounts in the Debt Service Fund: the “Assessable
Improvements Account, “The Equipment Account,” and the “Utility Improvements Account.”
Amounts in the Assessable Improvements Account are irrevocably pledged to the Improvement
Bonds, amounts in the Utility Improvements Account are irrevocably pledged to the Utility
Bonds, and amounts in the Equipment Account are irrevocably pledged to the Equipment
Certificates.
(a) Assessable Improvements Account. To the Assessable Improvements
Account in the Debt Service Fund there is hereby pledged and irrevocably appropriated and
there will be credited: (i) proceeds of the ad valorem taxes levied under Section 4.03 or
hereafter levied (the “Improvement Taxes”) and special assessments levied or to be levied
against the property specially benefited by the Assessable Improvements (the
“Assessments”), which ad valorem taxes and Assessments are pledged to the Assessable
Improvements Account; (ii) capitalized interest financed from Improvement Bond proceeds,
if any; (iii) a pro rata portion of the amount over the minimum purchase price paid by the
Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance with
Section 2.03 hereof; (iv) all investment earnings on amounts in the Assessable
Improvements Account of the Debt Service Fund; and (v) any other funds appropriated for
the payment of principal or interest on the Improvement Bonds.
(b) Equipment Account. To the Equipment Account in the Debt Service
Fund, there is hereby pledged and irrevocably appropriated and there will be credited: (i)
proceeds of general taxes levied under Section 4.04 or hereafter levied (the “Equipment
Taxes”) for the Equipment, which ad valorem taxes are pledged to the Equipment
Account; (ii) capitalized interested financed from Equipment Certificates proceeds, if
any; (iii) a pro rata portion of the amount of the minimum purchase price paid by the
Purchaser, to the extent designated for deposit in the Debt Service Fund in accordance
with Section 2.03 hereof; and (iv) all investment earnings on funds in the Equipment
Account; and (v) any and all other moneys which are properly available and are
appropriated by the City Council to the Equipment Account.
(c) Utility Improvements Account. The City will continue to maintain and
operate its water, sewer, and storm water utility fund or funds, to which will be credited all
gross revenues of the water, sewer, and storm water utility systems (the “Utility Systems”),
and out of which will be paid all normal and reasonable expenses of current operations of
such systems. Any balances therein are deemed net revenues (the “Net Revenues”) and will
be transferred, from time to time, to the Utility Improvements Account of the Debt Service
Fund in an amount sufficient to pay the principal of and interest on the Utility Bonds, which
Utility Improvements Account will be used only to pay principal of and interest on the
Utility Bonds, and any other bonds similarly authorized. There is also appropriated to the
Utility Improvements Account (i) any collections of taxes hereafter levied for the
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payment of the Utility Bonds and interest thereon, (ii) a pro rata portion of any amount
over the minimum purchase price paid by the Purchaser, to the extent designated for
deposit in the Debt Service Fund in accordance with Section 2.03 hereof, (iii) all
investment earnings on funds in the Utility Improvements Account of the Debt Service
Fund; and (iv) any other funds appropriated for the payment of principal or interest on the
Utility Bonds. The Finance Director must report to the City Council any current or
anticipated deficiency in the Utility Improvements Account or in the availability of Net
Revenues to pay principal of and interest on the Utility Bonds and any other bonds
similarly authorized. If a payment of principal or interest on the Utility Bonds becomes
due when there is not sufficient money in the Utility Improvements Account in the Debt
Service Fund to pay the same, the City Finance Director is directed to pay such principal
or interest from the general fund of the City, and the general fund will be reimbursed for
the advances out of the proceeds of Net Revenues and taxes when collected.
4.02. Project Fund. The City hereby creates the “General Obligation Bonds, Series 2019A
Project Fund” (the “Project Fund”) to be administered and maintained by the Finance Director as a
bookkeeping account separate and apart from all other funds maintained in the official financial
records of the City. The City will maintain the following accounts in the Project Fund: the
“Assessable Improvements Account,” the “Equipment Account.” and the “Utility Improvements
Account.” Amounts in the Assessable Improvements Account will be used to construct the
Assessable Improvements, amounts in the Utility Improvements Account will be used to
construct the Utility Improvements and amounts in the Equipment Account will be used to
acquire the Equipment.
(a) Assessable Improvements Account. Proceeds of the Improvement Bonds,
less the appropriations made in Section 4.01(a) hereof, together with any other funds
appropriated for the Assessable Improvements and the Assessments and Improvement Taxes
collected during the construction of the Assessable Improvements, will be deposited in the
Assessable Improvements Account of the Project Fund to be used solely to defray expenses
of the Assessable Improvements and the payment of principal of and interest on the
Improvement Bonds prior to the completion and payment of all costs of the Assessable
Improvements. Any balance remaining in the Assessable Improvements Account, after the
Assessable Improvements are completed and the cost thereof have been paid, may be used
as provided in Minnesota Statutes, section 475.65, under the direction of the City Council.
Thereafter, the Assessable Improvements Account of the Project Fund is to be closed and
any balance remaining therein and any subsequent collections of the Assessments and
Improvement Taxes for the Assessable Improvements are to be deposited in the Assessable
Improvements Account of the Debt Service Fund.
(b) Utility Improvements Account. Proceeds of the Utility Improvements
Bonds, less the appropriations made in Section 4.01(c) hereof, will be deposited in the
Utility Improvements Account of the Project Fund to be used solely to defray expenses of
the Utility Improvements. Any balance remaining in the Utility Improvements Account,
after the Utility Improvements are completed and the cost thereof have been paid, may be
used as provided in Minnesota Statutes, section 475.65, under the direction of the City
Council. Thereafter, the Utility Improvements Account of the Project Fund is to be closed
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and any balance remaining therein is to be deposited in the Utility Improvements Account of
the Debt Service Fund.
(c) Equipment Account. Proceeds of the Equipment Certificates, less the
appropriations made in Section 4.01(b) hereof, will be deposited in the Equipment Account
of the Project Fund to be used solely to defray expenses of acquiring the Equipment. Any
balance remaining in the Equipment Account, after the Equipment has been acquired and the
cost thereof have been paid, may be used as provided in Minnesota Statutes, section 475.65,
under the direction of the City Council. Thereafter, the Equipment Account of the Project
Fund is to be closed and any balance remaining therein is to be deposited in the Equipment
Account of the Debt Service Fund.
4.03. Tax Levy for Improvement Bonds. For the purpose of paying the principal of and
interest on the Improvement Bonds, there is hereby levied a direct annual irrepealable ad valorem
tax upon all of the taxable property in the City, which Taxes will be spread upon the tax rolls and
collected with and as part of other general taxes of the City. Such Taxes will be credited to the
Assessable Improvements Account of the Debt Service Fund above provided and will be in the
years and amounts as set forth in Exhibit C.
The tax levy herein provided will be irrepealable until all of the Improvement Bonds are
paid, provided that the City Finance Director may annually, at the time the City makes its tax levies,
certify to the County Auditor the amount available in the Assessable Improvements Account of the
Debt Service Fund to pay principal and interest due during the ensuing year on the Improvement
Bonds, and the County Auditor will thereupon reduce the levy collectible during such year by the
amount so certified.
4.04 Tax Levy for Equipment Certificates. For the purpose of paying the principal of and
interest on the Equipment Certificates portion of the Bonds there is hereby levied a direct annual
irrepealable ad valorem tax upon all of the taxable property in the City, which will be spread upon
the tax rolls and collected with and as part of other general taxes of the City. The taxes will be
credited to the Equipment Account of the Debt Service Fund above provided and will be in the
years and amounts as set forth in Exhibit D.
The tax levy herein provided will be irrepealable until all of the Equipment Certificates are
paid, provided that the City Finance Director may annually, at the time the City makes its tax levies,
certify to the County Auditor the amount available in the Equipment Account of the Debt Service
Fund to pay principal and interest due during the ensuing year on the Improvement Bonds, and the
County Auditor will thereupon reduce the levy collectible during such year by the amount so
certified.
4.05. City Covenants with Respect to the Improvement Bonds. It is hereby determined
that the Assessable Improvements will directly and indirectly benefit certain property in the City,
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 Assessable
Improvements to be promptly levied so that the first installment will be collectible not later
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than 2020 and will take all steps necessary to assure prompt collection, and the levy of the
Assessments is hereby authorized. The City Council will cause to be taken with due
diligence all further actions that are required for the construction of each Assessable
Improvement financed wholly or partly from the proceeds of the Bonds, and will take all
further actions necessary for the final and valid levy of the Assessments and the
appropriation of any other funds needed to pay the Improvement Bonds and interest thereon
when due.
(b) In the event of any current or anticipated deficiency in the Assessments and
Improvement Taxes, the City Council will levy additional ad valorem taxes in the amount of
the current or anticipated deficiency.
(c) The City will keep complete and accurate books and records showing:
receipts and disbursements in connection with the Assessable Improvements, Assessments
and Improvement Taxes levied therefor and other funds appropriated for their payment,
collections thereof and disbursements therefrom, monies 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.
(e) At least 20% of the cost to the City of the Assessable Improvements
described herein has been or will be specially assessed against benefited properties.
4.05 City Covenants with Respect to the Utility Bonds. The City Council covenants and
agrees with the holders of the Bonds that so long as any of the Utility Bonds remain outstanding
and unpaid, it will keep and enforce the following covenants and agreements:
(a) The City will continue to maintain and efficiently operate the Utility
Systems as public utilities and conveniences free from competition of other like
municipal utilities and will cause all revenues therefrom to be deposited in bank accounts
and credited to the accounts of the Utility Systems as hereinabove provided, and will
make no expenditures from those accounts except for a duly authorized purpose and in
accordance with this resolution.
(b) The City will also maintain the Utility Improvements Account of the Debt
Service Fund as a separate account in the Utility Systems fund and will cause money to
be credited thereto from time to time, out of Net Revenues from the Utility Systems in
sums sufficient to pay principal of and interest on the Utility Improvements Bonds when
due.
(c) The City will keep and maintain proper and adequate books of records and
accounts separate from all other records of the City in which will be complete and correct
entries as to all transactions relating to the Utility Systems and which will be open to
inspection and copying by any bondholder, or the bondholder's agent or attorney, at any
reasonable time, and it will furnish certified transcripts therefrom upon request and upon
payment of a reasonable fee therefor, and said account will be audited at least annually by
610862v3LA515-54 12
a qualified public accountant and statements of such audit and report will be furnished to
all bondholders upon request.
(d) The City Council will cause persons handling revenues of the Utility
Systems to be bonded in reasonable amounts for the protection of the City and the
bondholders and will cause the funds collected on account of the operations of the Utility
Systems to be deposited in a bank whose deposits are guaranteed under the Federal
Deposit Insurance Law.
(e) The Council will keep the Utility Systems insured at all times against loss
by fire, tornado and other risks customarily insured against with an insurer or insurers in
good standing, in such amounts as are customary for like plants, to protect the holders,
from time to time, of the Utility Bonds and the City from any loss due to any such
casualty and will apply the proceeds of such insurance to make good any such loss.
(f) The City and each and all of its officers will punctually perform all duties
with reference to the Utility Systems as required by law.
(g) The City will impose and collect charges of the nature authorized by
Minnesota Statutes, Section 444.075 at the times and in the amounts required to produce
Net Revenues adequate to pay all principal and interest when due on the Utility Bonds,
and any other bonds similarly authorized, and to create and maintain such reserves
securing said payments as may be provided in this resolution.
(h) The City Council will levy general ad valorem taxes on all taxable
property in the City, when required to meet any deficiency in pledged Net Revenues.
(i) The City hereby determines that the estimated collection of Net Revenues
herein pledged for the payment of principal and interest on the Utility Bonds will produce
at least 5% in excess of the amount needed to meet, when due, the principal and interest
payments on such portion of the Bonds.
4.06 Registration of Resolution. The City Clerk is directed to file a certified copy of this
resolution with the Auditor of Washington County and to obtain the certificate required by Section
475.63 of the Act.
4.07. Debt Service Coverage. It is hereby determined that the estimated collection of the
foregoing Improvement Taxes and Assessments will produce at least 5% in excess of the amount
needed to pay when due, the principal and interest payments on the Improvement Bonds, the
estimated collection of the foregoing Equipment Taxes will produce at least 5% in excess of the
amount needed to pay when due, the principal and interest payments on the Equipment Certificates
and the Net Revenues herein pledged will produce at least 5% in excess of the amount needed to
pay when due the principal and interest payments on the Utility Bonds.
4.08. General Obligation Pledge. For the prompt and full payment of the principal of and
interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers
of the City will be and are hereby irrevocably pledged. If the balance in the Debt Service Fund is
610862v3LA515-54 13
ever insufficient to pay all principal and interest then due on the Bonds and any other bonds payable
therefrom, the deficiency will be promptly paid out of monies in the general fund of the City which
are available for such purpose, and such general fund may be reimbursed with or without interest
from the Debt Service Fund when a sufficient balance is available therein.
Section 5. Authentication of Transcript.
5.01. City Proceedings and Records. The officers of the City are hereby 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, will be deemed representations of the City as to
the facts stated therein.
5.02. Certification as to Official Statement. The Mayor, City Administrator, City
Clerk, and Finance Director, or any of them, are hereby 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, as of the date thereof, a complete and accurate representation of the facts and
representations made therein as it relates to the City.
5.03. Other Certificates. The Mayor, City Administrator, City Clerk, and Finance
Director or any of them, are hereby authorized and directed to furnish to the Purchaser at the
closing such certificates as are required as a condition of sale. Unless litigation shall have been
commenced and be pending questioning the Bonds or the organization of the City or incumbency
of its officers, at the closing the Mayor or City Finance Director shall also execute and deliver to
the Purchaser a suitable certificate as to absence of material litigation, and the Finance Director
shall also execute and deliver a certificate as to payment for and delivery of the Bonds.
Section 6. Tax Covenants.
6.01 Tax-Exempt Bonds. 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. To that end, the City will comply with all 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 and limitations on amounts invested at a yield greater than the yield on
the Bonds.
610862v3LA515-54 14
6.02. Rebate. The City will comply with requirements necessary under the Code to
establish and maintain the exclusion from gross income of the interest on the Bond 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 investment earnings to the United States (unless the City qualifies for any
exemption from rebate requirements based on timely expenditure of proceeds of the Bonds, in
accordance with the Code and applicable Treasury Regulations).
6.03. Not Private Activity Bonds. 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. Bank Qualified Tax-Exempt Obligations. In order to qualify the Bonds as
“qualified tax-exempt obligations” within the meaning of Section 265(b)(3) of the Code, the City
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, that are not qualified 501(c)(3) bonds) which will be issued by the
City (and all subordinate entities of the City) during calendar year 2019 will not exceed
$10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City during
calendar year 2019 have been designated for purposes of Section 265(b)(3) of the Code.
6.05. Procedural Requirements. 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.
Section 7. Book-Entry System; Limited Obligation of City.
7.01. DTC. The Bonds will be initially issued in the form of a separate single typewritten
or printed fully registered Bond for each of the maturities set forth in Section 2.04 hereof. Upon
initial issuance, the ownership of each Bond will be registered in the registration books kept by
the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company,
New York, New York, and its successors and assigns (DTC). Except as provided in this section,
all of the outstanding Bonds will be registered in the registration books kept by the Bond
Registrar in the name of Cede & Co., as nominee of DTC.
7.02. Participants. With respect to Bonds registered in the registration books kept by the
Registrar in the name of Cede & Co., as nominee of DTC, the City, the Registrar and the Paying
610862v3LA515-54 15
Agent will have no responsibility or obligation to any broker dealers, banks and other financial
institutions from time to time for which DTC holds Bonds as securities depository (the
“Participants”) or to any other person on behalf of which a Participant holds an interest in the
Bonds, including but not limited to any responsibility or obligation with respect to (i) the
accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership
interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a
registered owner of Bonds, as shown by the registration books kept by the Registrar,) of any
notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to any
Participant or any other person, other than a registered owner of Bonds, of any amount with
respect to principal of, premium, if any, or interest on the Bonds. The City, the Registrar and the
Paying Agent may treat and consider the person in whose name each Bond is registered in the
registration books kept by the Registrar as the holder and absolute owner of such Bond for the
purpose of payment of principal, premium and interest with respect to such Bond, for the
purpose of registering transfers with respect to such Bonds, and for all other purposes. The
Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or on
the order of the respective registered owners, as shown in the registration books kept by the
Registrar, and all such payments will be valid and effectual to fully satisfy and discharge the
City’s obligations with respect to payment of principal of, premium, if any, or interest on the
Bonds to the extent of the sum or sums so paid. No person other than a registered owner of
Bonds, as shown in the registration books kept by the Registrar, will receive a certificated Bond
evidencing the obligation of this resolution. Upon delivery by DTC to the City Administrator of
a written notice to the effect that DTC has determined to substitute a new nominee in place of
Cede & Co., the words “Cede & Co.,” will refer to such new nominee of DTC; and upon receipt
of such a notice, the City Administrator will promptly deliver a copy of the same to the Registrar
and Paying Agent.
7.03. Representation Letter. The City has heretofore executed and delivered to DTC a
Blanket Issuer Letter of Representations (the “Representation Letter”) which shall govern
payment of principal of, premium, if any, and interest on the Bonds and notices with respect to
the Bonds. Any Paying Agent or Bond Registrar subsequently appointed by the City with respect
to the Bonds will agree to take all action necessary for all representations of the City in the
Representation Letter with respect to the Registrar and Paying Agent, respectively, to be
complied with at all times.
7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the
City Council, determines that it is in the best interests of the persons having beneficial interests
in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon
DTC will notify the Participants, of the availability through DTC of Bond certificates. In such
event the City will issue, transfer and exchange Bond certificates as requested by DTC and any
other registered owners in accordance with the provisions of this Resolution. DTC may
determine to discontinue providing its services with respect to the Bonds at any time by giving
notice to the City and discharging its responsibilities with respect thereto under applicable law.
In such event, if no successor securities depository is appointed, the City will issue and the
Registrar will authenticate Bond certificates in accordance with this resolution and the provisions
hereof will apply to the transfer, exchange and method of payment thereof.
610862v3LA515-54 16
7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to
the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC,
payments with respect to principal of, premium, if any, and interest on the Bond and all notices
with respect to the Bond will be made and given, respectively in the manner provided in DTC’s
Operational Arrangements, as set forth in the Representation Letter.
Section 8. Continuing Disclosure.
8.01. City Compliance with Provisions of Continuing Disclosure Certificate. The City
hereby covenants and agrees that it will comply with and carry out all of the provisions of the
Continuing Disclosure Certificate. Notwithstanding any other provision of this Resolution,
failure of the City to comply with the Continuing Disclosure Certificate is not to be considered
an event of default with respect to the Bonds; however, any Bondholder may take such actions as
may be necessary and appropriate, including seeking mandate or specific performance by court
order, to cause the City to comply with its obligations under this section.
8.02. Execution of Continuing Disclosure Certificate. “Continuing Disclosure
Certificate” means that certain Continuing Disclosure Certificate executed by the Mayor and
City Clerk and dated the date of issuance and delivery of the Bonds, as originally executed and
as it may be amended from time to time in accordance with the terms thereof.
Section 9. Defeasance. When all Bonds (or all of any the Improvement Bonds,
Equipment Certificates or Utility Bonds portion thereof) and all accrued interest thereon have
been discharged as provided in this section, all pledges, covenants and other rights granted by
this resolution (with respect to the Improvement Bonds, Equipment Certificates or Utility Bonds
portion of the Bonds, as the case may be) to holders of the Bonds will cease, except that the
pledge of the full faith and credit of the City for the prompt and full payment of the principal of
and interest on the Bonds will remain in full force and effect. The City may discharge all Bonds
(or all of either the Improvement Bonds, Equipment Certificates or Utility Bonds portion thereof)
which are due on any date by depositing with the Registrar on or before that date a sum sufficient
for the payment thereof in full or by depositing irrevocably in escrow, with a suitable institution
qualified by law as an escrow agent for this purpose, cash or securities which are backed by the
full faith and credit of the United States of America, or any other security authorized under
Minnesota law for such purpose, bearing interest payable at such times and at such rates and
maturing on such dates and in such amounts as shall be required and sufficient, subject to sale
and/or reinvestment in like securities, to pay said obligation(s), which may include any interest
payment on such Bond and/or principal amount due thereon at a stated maturity (or if irrevocable
provision shall have been made for permitted prior redemption of such principal amount, at such
earlier redemption date). If any Bond should not be paid when due, it may nevertheless be
discharged by depositing with the Registrar a sum sufficient for the payment thereof in full with
interest accrued to the date of such deposit.
610862v3LA515-54 17
The motion for adoption of the foregoing resolution was duly seconded by Member _______,
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
610862v3LA515-54 18
STATE OF MINNESOTA )
)
COUNTY OF WASHINGTON ) SS.
)
CITY OF LAKE ELMO )
I, the undersigned, being the duly qualified and acting City Clerk of the City of Lake
Elmo, Minnesota, do hereby certify that I have carefully compared the attached and foregoing
extract of minutes of a regular meeting of the City Council held on Tuesday, October 1, 2019,
with the original thereof on file in my office 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 $4,060,000 General
Obligation Bonds, Series 2019A of the City.
WITNESS My hand officially as such City Clerk this ____ day of October, 2019.
City Clerk
City of Lake Elmo, Minnesota
A-1
610862v3LA515-54
EXHIBIT A
PROPOSALS
610862v3LA515-54 B-1
EXHIBIT B
FORM OF BOND
No. R-_____ UNITED STATES OF AMERICA $__________
STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF LAKE ELMO
GENERAL OBLIGATION BOND
SERIES 2019A
Rate
Maturity
Date of
Original Issue
CUSIP
February 1, 20____ October 24, 2019
Registered Owner: Cede & Co.
The City of Lake Elmo, Minnesota, a duly organized and existing municipal corporation
in Washington County, Minnesota (the “City”), acknowledges itself to be indebted and for value
received hereby promises to pay to the registered owner specified above or registered assigns,
the Principal Amount specified above on the Maturity Date specified above, unless called for
earlier redemption, with interest thereon from the date hereof at the annual rate specified above
(calculated on the basis of a 360-day year of twelve 30-day months), payable February 1 and
August 1 in each year, commencing August 1, 2020, to the person in whose name this Bond is
registered at the close of business on the 15th day (whether or not a business day) of the
immediately 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 U.S. Bank National Association, St. Paul, Minnesota, as Registrar, Authenticating Agent
and Paying Agent, or its designated successor under the Resolution described herein. For the
prompt and full payment of such principal and interest as the same respectively become due, the
full faith and credit and taxing powers of the City have been and are hereby irrevocably pledged.
This Bond is one of an issue in the aggregate principal amount of $4,060,000, all of like
original issue date and tenor, except as to number, maturity date, denomination, redemption
privilege, and interest rate, issued pursuant to a resolution adopted by the City Council on
October 1, 2019 (the “Resolution”), for the purpose of providing monies in part for various street
improvements, items of capital equipment, and various utility improvements and pursuant to and
in full conformity the Constitution, and the laws of the State of Minnesota, including Minnesota
Statutes, Chapters 412, 429, 444 and 475. The principal hereof and interest hereon are payable
from certain special assessments against property specially benefited by local improvements, net
revenues of the water, sewer, and storm water utility systems 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
610862v3LA515-54 B-2
in the City in the event of any deficiency in special assessments, net revenues and ad valorem taxes
pledged, which additional 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.
The City may elect on February 1, 2028, and on any date thereafter to prepay Bonds
maturing on or after February 1, 2029. Redemption may be in whole or in part and if in part, at
the option of the City and in such manner as the City will determine. If less than all Bonds of a
maturity are called for redemption, the City will notify The Depository Trust Company (“DTC”)
of the particular amount of such maturity to be prepaid. DTC will determine by lot the amount
of each participant’s interest in such maturity to be redeemed and each participant will then
select by lot the beneficial ownership interests in such maturity to be redeemed. Prepayments
will be at a price of par plus accrued interest.
IT IS HEREBY CERTIFIED AND RECITED that in and by the Resolution, the City has
covenanted and agreed that it will continue to own and operate the water, sewer, and storm water
utility systems 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 Utility
Systems funds, into which it will pay all of the gross revenues from the water, sewer, and storm
water utility systems; that it will also create and maintain a Utility Improvements Account within
the General Obligation Bonds, Series 2019A Debt Service Fund, into which it will pay, out of
the net revenues from the water, sewer, and storm water utility systems, a sum sufficient to pay
principal of and interest on the Utility Revenue Bonds when due; and that it will provide, by ad
valorem tax levies, for any deficiency in required net revenues of the water, sewer, and storm
water utility systems.
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.
The City has designated the Bonds as “qualified tax-exempt obligations” pursuant to
Section 265(b)(3) of the Internal Revenue Code of 1986, as amended.
610862v3LA515-54 B-3
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 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, have happened and
have been performed in regular and due form, time and manner, that prior to the issuance of this
bond the City Council of the City has provided funds for the payment of principal and interest on
the bonds of this issue as the same become due, but the full faith and credit of the City is pledged
for their payment and additional taxes will be levied, if required for such purpose, without
limitation as to the rate of amount; and that this bond, together with all other indebtedness of the
City outstanding on the date of its issuance, does not exceed any constitutional or statutory
limitation thereon.
This Bond is not valid or obligatory for any purpose or 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 Lake Elmo, Washington County, Minnesota, by
its City Council, has caused this Bond to be executed on its behalf by the facsimile or manual
signatures of the Mayor and City Clerk and has caused this Bond to be dated as of the date set
forth below.
Dated: ___________, 2019
CITY OF LAKE ELMO, MINNESOTA
City Clerk Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S. BANK NATIONAL ASSOCIATION
By
Authorized Representative
610862v3LA515-54 B-4
________________________
ABBREVIATIONS
The following abbreviations, when used in the inscription of the face of this Bond, will
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)
under Uniform Gift or Transfer to
Minors Act
of……………………..
(State)
TEN ENT -- as tenants
by entireties
JT TEN -- as joint tenants
with right of
survivorship and
not as tenants in
common
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:
610862v3LA515-54 B-5
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the
Securities Transfer Agent Medallion Program (“STAMP”), the Stock Exchange Medallion
Program (“SEMP”), the New York Stock Exchange, Inc. Medallion Signatures Program
(“MSP”) or other such “signature guarantee program” as may be determined by the Registrar in
addition to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities
Exchange Act of 1934, as amended.
The Bond Registrar will not effect transfer of this Bond unless the information
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
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on
the books of the Registrar in the name of the person last noted below.
Date of Registration
Registered Owner
Signature of
Registrar
__________, 2019
Cede & Co.
Federal ID #13-2555119
610862v3LA515-54 C-1
EXHIBIT C
IMPROVEMENT BONDS TAX LEVY
610862v3LA515-54 D-1
EXHIBIT D
EQUIPMENT CERTIFICATES TAX LEVY
610862v3LA515-54
STATE OF MINNESOTA COUNTY AUDITOR’S
CERTIFICATE AS TO
COUNTY OF WASHINGTON TAX LEVY AND
REGISTRATION
I, the undersigned County Auditor of Washington County, Minnesota, hereby certify that
a certified copy of a resolution adopted by the governing body of the City of Lake Elmo,
Minnesota, on October 1, 2019, levying taxes for the payment of $4,060,000 General Obligation
Bonds, Series 2019A, of said municipality dated October 24, 2019 has been filed in my office
and said bonds have been entered on the register of obligations in my office and that such tax has
been levied as required by law.
WITNESS My hand this _____ day of October, 2019.
County Auditor
Washington County, Minnesota