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Minnesota Statutes, Section 475.67, subdivision 3, subsection (b)(2)(i) and in compliance with
<br /> Minnesota Statutes, Section 469.034, subdivision 2 and Chapter 475.
<br /> This Council hereby determines to issue and sell the Bonds to defray the expense
<br /> incurred and estimated to be incurred by the City in making the Improvements, refinance the
<br /> Facilities and refund the Refunded Bonds, including every item of cost of the kinds authorized in
<br /> Minnesota Statutes, Section 475.65. The Bonds are issued pursuant to Minnesota Statutes,
<br /> Chapter 429 and Chapter 475. The allocation of the Bonds for the purpose of financing the
<br /> Improvements and refunding the Refunded Bonds is set forth in Section 2.01 hereof.
<br /> No petition requesting a vote on the question of adopting the Plan or issuing the
<br /> Bonds has yet been filed. The sale of the Bonds to the Purchaser is hereby ratified on the terms
<br /> provided herein, provided that no such petition is filed within thirty days of November 8, 2011.
<br /> 1.02. Sale of Bonds. The City has retained Ehlers & Associates, Inc., an
<br /> independent financial advisor, to assist the City in connection with the sale of the Bonds. The
<br /> Bonds are being sold pursuant to Minnesota Statutes, Section 475.60, Subdivision 2, paragraph
<br /> (9), without meeting the requirements for public sale under Minnesota Statutes, Section 475.60,
<br /> Subdivision 1. Pursuant to the Terms and Conditions of Sale for the Bonds, three (3) proposals
<br /> for the purchase of the Bonds were received at or before the time specified for receipt of
<br /> proposals. The proposals have been opened and publicly read and considered, and the purchase
<br /> price, interest rates and true interest cost under the terms of each bid have been determined. The
<br /> most favorable proposal received is that of Baird, of Milwaukee, Wisconsin, and associates (the
<br /> "Purchaser"), to purchase the Bonds at a price of$9,623,123.10, the Bonds to bear interest at the
<br /> rates set forth in Section 2.01. The proposal is hereby accepted, and the Mayor and the City
<br /> Manager are hereby authorized and directed to execute a contract on the part of the City for the
<br /> sale of the Bonds with the Purchaser. The good faith checks of the unsuccessful bidders shall be
<br /> returned forthwith.
<br /> 1.03. Savings. It is hereby determined that:
<br /> (i) by the issuance of the Bonds to refund the Refunded Bonds, the City will
<br /> realize a substantial interest rate reduction, a gross savings of approximately $703,105.05 and a
<br /> present value savings (using the yield on the Bonds, computed in accordance with Section 148 of
<br /> the Internal Revenue Code of 1986, as amended (the "Code"), as the discount factor) of
<br /> approximately$637,639.89; and
<br /> (ii) as of the Redemption Date and respective Crossover Date, the sum of(i) the
<br /> present value of the debt service on the Bonds, computed to their stated maturity dates, after
<br /> deducting any premium, using the yield of the Bonds as the discount rate, plus (ii) any expenses
<br /> of the refunding payable from a source other than the proceeds of the Bonds or investment
<br /> earnings thereon, is lower by 7.954% than the present value of the debt service on the Refunded
<br /> Bonds, exclusive of any premium, computed to their stated maturity dates, using the yield of the
<br /> Bonds as the discount rate.
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