RES 15-075 AUTHORIZING ISSUANCE, AWARDING SALE, PRESCRIBING THE FORM AND DETAILS AND PROVIDING FOR THE PAYMENT OF $4,310,000 GENERAL OBLIGATION TAX INCREMENT REVENUE REFINANCING BONDS, SERIES 2015B

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PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER OF ASSIGNEE: ____________________ [end of bond form] SECTION 3. USE OF PROCEEDS. Upon payment for the Bonds by the Purchaser, Bond proceeds shall be used as follows: (a) $4,332.934.57 shall be deposited in the Escrow Account established with U.S. Bank National Association (the “Escrow Agent”) under an Escrow Agreement described hereunder, (b) $50,518.00 shall be applied to pay costs of issuance and (c) $4,097.24 shall be deposited in the Bond Fund created pursuant to Section 4 hereof. The Mayor and City Manager are hereby authorized to enter into an Escrow Agreement with the Escrow Agent establishing the terms and conditions for the escrow account in accordance with Minnesota Statutes, Section 475.67. Funds deposited with the Escrow Agent (other than an initial cash balance in the escrow account) are to be invested in securities authorized for such purpose by Minnesota Statutes, Section 475.67, subdivision 8, maturing on such dates and bearing interest at such rates as are required to provide funds sufficient, with cash retained in the escrow account, to pay and redeem the outstanding principal and accrued interest on the Refunded Bonds to and including the Redemption Date (and the amounts in such account are irrevocably appropriated to such purposes). SECTION 4. GENERAL OBLIGATION TAX INCREMENT REVENUE REFUNDING BONDS, SERIES 2015B BOND FUND. The Bonds shall be payable from a separate and special General Obligation Tax Increment Revenue Refunding Bonds, Series 2015B Bond Fund (the Bond Fund) of the City, which the City agrees to maintain until the Bonds have been paid in full. If the money in the Bond Fund should at any time be insufficient to pay principal and interest due on the Bonds, such amounts shall be paid from other moneys on hand in other funds of the City, which other funds shall be reimbursed therefor when sufficient money becomes available in the Bond Fund. The moneys on hand in the Bond Fund from time to time shall be used only to pay the principal of and interest on the Bonds. Into the Bond Fund shall be paid: (a) the amounts specified in Section 3; (b) all excess amounts on deposit in the debt service funds maintained for the payment of the Refunded Bonds upon the retirement of the Refunded Bonds on the Redemption Date; (c) ad valorem tax increments derived from the District to the extent determined by the Council to be necessary, in addition to other funds appropriated to the Bond Fund, to pay principal and interest on the Bonds when due; (d) ad valorem taxes collected in accordance with the provisions of Section 5 hereof; and (e) any other funds appropriated by the Council for the payment of the Bonds. SECTION 5. PLEDGE OF TAXING POWERS. For the prompt and full payment of the principal of and interest on the Bonds as such payments respectively become due, the full faith, credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. It is hereby estimated that the tax increments and other funds appropriated to the Bond Fund as set forth in Section 4 hereof will produce amounts not less than five percent in excess of the amounts needed to meet when due the principal and interest payments on the Bonds, and therefore no ad valorem taxes are required to be levied at this time. Nevertheless, if the balance in the Bond Fund is at any time insufficient to pay all interest and principal then due on all