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City's share of the property taxes payable in the years 2005 through 2019 derived from the
<br />increased market value resulting from development on the Tax Abatement Property (the "City
<br />Abatements", and together with the School District Abatements, the "Tax Abatements"); and
<br />E. WHEREAS, the amount of the property taxes abated are estimated to be at least
<br />equal to the principal amount of the Abatement Refunding Portion of the Bonds; and
<br />F. WHEREAS, $1,010,000 aggregate principal amount of the Prior Capital
<br />Improvement Bonds which mature or is subject to mandatory redemption on and after February
<br />1, 2016, is callable on February 1, 2015 (the "Refunded Capital Improvement Bonds"), at a price
<br />of par plus accrued interest, as provided in the resolution adopted on June 7, 2004, authorizing
<br />the issuance of the Prior Capital Improvement Bonds (the "Prior Capital Improvement
<br />Resolution"); and
<br />G. WHEREAS, $4,665,000 aggregate principal amount of the Prior Abatement
<br />Bonds which mature or is subject to mandatory redemption on and after February 1, 2016, is
<br />callable on February 1, 2015 (the "Refunded Abatement Bonds" and together with the Refunded
<br />Capital Improvement Bonds, the "Refunded Bonds"), at a price of par plus accrued interest, as
<br />provided in the resolution adopted on April 18, 2005, authorizing the issuance of the Prior
<br />Abatement Bonds (the "Prior Abatement Bonds Resolution" and together with the Prior Capital
<br />Improvement Resolution, the "Prior Resolutions"); and
<br />H. WHEREAS, the crossover refunding of the Refunded Bonds on February 1, 2015
<br />(the "Crossover Date") is consistent with covenants made with the holders thereof, and is
<br />necessary and desirable for the reduction of debt service cost to the City; and
<br />I. WHEREAS, the City Council hereby determines and declares that it is necessary
<br />and expedient to issue $5,835,000 General Obligation Refunding Bonds, Series 2013A (the
<br />"Bonds" or individually, a 'Bond"), pursuant to Minnesota Statutes, Chapter 475, to provide
<br />moneys for a crossover refunding of the Refunded Bonds; and
<br />J. WHEREAS, the City has retained Springsted Incorporated, in St. Paul, Minnesota
<br />("Springsted"), as its independent financial advisor for the sale of the Bonds and was therefore
<br />authorized to sell the Bonds by private negotiation in accordance with Minnesota Statutes,
<br />Section 475.60, Subdivision 2(9) and proposals to purchase the Bonds have been solicited by
<br />Springsted; and
<br />K. WHEREAS, the proposals set forth on Exhibit A attached hereto were received
<br />by the Clerk, or designee, at the offices of Springsted at 10:30 a.m. this same day pursuant to the
<br />Terms of Proposal established for the Bonds; and
<br />L. WHEREAS, it is in the best interests of the City that the Bonds be issued in book-
<br />entry form as hereinafter provided; and
<br />NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Hugo,
<br />Minnesota, as follows:
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