HomeMy WebLinkAbout1998.03.16 RESO 1998-0009EXTRACT OF MINUTES OF A MEETING OF THE
CITY COUNCIL OF THE CITY OF
HUGO, MINNESOTA
HELD: March 16, 1998
Pursuant to due call and notice thereof, a regular
meeting of the City Council of the City of Hugo, Washington
County, Minnesota, was duly held at the City Hall in said City on
Monday, the 16th day of March, 1998, at 7:00 P.M., for the
purpose, in part, of considering proposals for, and awarding the
sale of, $1,225,000 General Obligation Improvement Refunding.
Bonds, Series 1998A of the City.
The following members were present: Warren Arcand,
Debra Barnes, Andrew Goiffon, James Leroux, Fran Miron
and the following were absent: NONE
Member Debra Barnes introduced the following
resolution and moved its adoption:
RESOLUTION 1998-9
RESOLUTION ACCEPTING PROPOSAL ON
SALE OF $1,225,000 GENERAL OBLIGATION
IMPROVEMENT REFUNDING BONDS, SERIES 1998A,
PROVIDING FOR THEIR ISSUANCE,
PLEDGING FOR THE SECURITY THEREOF
SPECIAL ASSESSMENTS, AND LEVYING A TAX FOR THE PAYMENT THEREOF
A. WHEREAS, on February 17, 1998, the City Council of
the City of Hugo, Minnesota (the "City"), adopted a resolution
(the "Preliminary Resolution"), which provided for the private
negotiation of $1,225,000 General Obligation Improvement
Refunding Bonds, Series 1998A (the "Bonds") with the final amount
of the issue subject to change on the sale date; and
B. WHEREAS, proposals to purchase the Bonds have been
solicited by Ehlers and Associates, Inc. ("Ehlers") in accordance
with the Preliminary Resolution; and
C. WHEREAS, the proposals set forth on Exhibit A
attached hereto were received and opened pursuant to the Terms of
Proposal established for the Bonds in the presence of the Clerk -
Treasurer, or designee, at the offices of Ehlers at 1:00 P.M.,
Central Time, this same day; and
913727.01
D. WHEREAS, the City has outstanding General
Obligation Improvement Bonds, Series 1988A, dated September 1,
1988 (the "Prior 1988 Bonds"), and has heretofore determined and
declared that it is necessary and expedient to provide moneys,
together with other available funds, to refund in advance of
maturity the outstanding Prior 1988 Bonds, which mature in 1999,
and thereafter in the principal amount of $525,000 (the "Refunded
1988 Bonds"). The Prior 1988 Bonds were issued for the purpose
of providing money to finance certain costs of assessable public
improvements (the 111988 Project") within the City pursuant to the
resolution of -the City Council, dated August 22, 1988,
authorizing the issuance of the Prior 1988 Bonds (the "Prior 1988
Resolution"); and
E. WHEREAS, $600,000 of the principal amount of the
Prior 1988 Bonds which mature on or after March 1,.1999., are
callable on September 1, 1998, at a price of par plus accrued
interest, as provided in the Prior 1988 Resolution; and
F. WHEREAS, the City has also outstanding General
Obligation Improvement Bonds of 1991, dated January 16, 1991 (the
"Prior 1991 Bonds"), and has also heretofore determined and
declared that it is necessary and expedient to provide moneys,
together with other available funds, to refund in advance of
maturity the outstanding Prior 1991 Bonds, which mature in 1999,
and thereafter in the principal amount of $860,000 (the "Refunded
1991 Bonds"). The Prior 1991 Bonds were issued for the purpose
of providing money to finance the construction of various street
improvements (the 111991 Project") in the City pursuant to the
resolution of the City Council, dated January 7, 1991,
authorizing the issuance of the Prior 1991 Bonds (the "Prior 1991
Resolution");
G. WHEREAS, $860,000 of the principal amount of the
Prior 1991 Bonds which mature on or after February 1, 1999, are
callable on August 1, 1998, at a price of par plus accrued
interest, as provided in the Prior 1991 Resolution; and
H. WHEREAS, the Prior 1988 Bonds and the Prior 1991
Bonds are hereinafter referred to collectively as, the "Prior
Bonds"; the Refunded 1988 Bonds and the Refunded 1991 Bonds are
hereinafter referred to collectively as, the "Refunded Bonds; the
1998 Project and. the 1991 Project are hereinafter referred to
collectively as, the "Project"; and the Prior 1988 Resolution and
the Prior 1991 Resolution are hereinafter referred to
collectively as, the "Prior Resolution"; and
I. WHEREAS, the refunding of the Refunded Bonds, is
consistent with covenants made with the holders thereof, and is
913727.01 2
necessary and desirable for the reduction of debt service cost to
the City; and
J. WHEREAS, the City Council has -heretofore
determined and declared that it is necessary an � ex edient to
&T, 000
issue the Bonds of the City in the amount...of...$ ,
pursuant to Minnesota Statutes, Chapter 415, to provide moneys - -- .
for an advance refunding of the Refunded Bonds.; and
K. WHEREAS, it is in the best interests of the City
-that.--the -Bonds be -issued -in. book�gntry form as_whereinafzes .-_ _1e _ _
provided; and
NOW, .THEREFORE, .BE IT. RESOLVED by the ___of the,
City of Hugo, Minnesota, as follows:
- *.1. _ Acceptance of Proms. The _.proposal._of...
(the "Purchaser"), to.purchase the Bonds
of =the City. (or. the ."Refunding Bonds"., . or_.indiuiduall ..a.. "Bons!!:)..,.........-.--_.-
in .-accordance. with the Terms of Proposal-- at the Atl6s_ o
interest hereinafter set forth, and to pay--th:arefor the sum of
$ 1,217,650.00, plus interest accrued to settlement, is hereby
found., --determined and declared to be the :most. favorable- -
proposal -received and is hereby accepted, and the Bonds are hereby awarded
to said proposal maker. The City Clerk -Treasurer is directed to
retain -the deposit of said proposal maker and to forthwith return
to the unsuccessful proposal makers their good faith checks and
drafts.
2. Bond Terms.
(a) Title: Original Issue Date: Denominations:
Maturities. The Bonds shall be titled "General Obligation
Improvement Refunding Bonds, Series 1998A11, shall.be dated April
1, 1998, as the date of original issue and shall be issued
forthwith on or after such date as fully registered bonds. The
Bonds shall be numbered from R-1 upward in the denomination of
$5,000 each or in any integral multiple thereof of a single
maturity (the "Authorized Denominations"). The Bonds shall
mature on February 1, without option of prepayment, in the years
and amounts as follows:
*FBS Investment Services, Inc.,
an operating, division of U.S. Bancorp Investment Services, Inc.
91372.01 3
Year - - -Amount Year
Amount
2003 $.150, 4fl0_
-....._..--. -2000:_:.. 135.,000. _�__ 2004
-.144-, 00o .._... - _ 2D.05:: 160; Q0
_ :.. _
2:45'.0.00.-.-
-All--.
45,.O.aO.----All . dates are inclusive
Only S s The DepositoryTrust
. -(b Book En try y y tem .
any` a limZecttrpe�se=was=-i�company arganed-nr-h�e
�"-the State-=of_New.YorK- or- anp-of its-
.. ctss rs-to Its-�funct ns- hereunder (the "Deposits":-:w�:�.l:.a -
_ -securities depository or-�.the=Bonds,..and to this.:.-: - -
The Bonds shall be initially issued and, so..-:,:. w ._
long.- as--- the reMai nL-in. book -ent f orm only
Only Period"') sha�`�: at all times be in the-.forct_of a...: _-
_... _-
-y
.. -
:' se araE "moi le' f�u1�. -re ered--.B.ond. for-.eac�tM=- .t y ®i �--,�.-�_y_: �--
the Bofids; --and.' for"= urpo sof complying with -.this_. _. =
- requirement -under paragraphs.5.and 10 Authorized_
_ Denominations for any Bond - be deemed .to: be=�.imited -
during the Book Entry Only Period .to the outstanding -
principal amount of that Bond. --
:. .. .�
Upon initial issuance, ownership of the Bonds,:_:____
shall be registered in a bond register maintained by the
BondRegistrar (as hereinafter defined) in the name of CEDE
& CO:, as the nominee (it or any nominee of the existing or
a successor Depository, the "Nominee").
iii) -. With respect to the Bonds neither the City
nor the Bond Registrar shall have any responsibility or -.
obligation.. -to. --any broker, dealer, bank, or -any other -- .�-K,-_
financial institution for which the Depository holds Bonds
as -securities depository -(the "Participant") or the person_.
for which a Participant holds an interest in the Bonds shown
on the books and records.of the Participant (the "Beneficial
Owner"). Without limiting the immediately preceding
sentence, neither --the City, nor the Bond Registrar, shall =_
have any such -responsibility or obligation with respect to
MY the accuracy of the records of the Depository, the
Nominee or any Participant with respect to any ownership
interest in :the. Bonds, or -.(B) the delivery to any
Participant, any Owner or any other person, other than the
Depository,.of any notice with respect to the Bonds,
including any notice of redemption, or (C) the payment to _
any Participant, any Beneficial Owner or any other person,
other than the Depository, of any amount with respect to the
principal of or premium, if any, or interest on the Bonds,
913727.01 4
I
or (D) the consent given or other action taken by the
Depository as the Register Holder, of..any Bonds (the
For purposes of securing.the vote or consent of
-.. _.--: air , Holder under this Resolution, the City may, however,
-;.rely upon an omnibus proxy under- which.::.the Depository
....assigns its consenting or votiarights to certain
-;,-,Participants to whose accounts. t -he -Bonds are credited on the
- ;.... r-Moi-d_:date identified in a. lis-tiug... attached to the omnibus
proxy.
The City -and the- aGnd --.Registrar- may treat as
-..an&- deem. the Depository to be the. -absolute owner of the
---.Bonds for the purpose of- payment .of the principal of . and
premium., if any, and interest on the Bonds, for the purpose
of giving notices of redemption and other matters with
_.. _. respect to the Bonds, for the purpose of obtaining any
'consent or other action to be taken by Holders for the
_-_.1jurpose of registering transfers with respect to such Bonds,
anck-for all purpose whatsoever: ----,The-. Bond.. Registrar, as
paying agent hereunder, shall pay afi1 principal -of and
premium, if any, and interest on the -Bonds only to or upon
the -Holder of the Holders of the. -Bonds as shown on the bond
register, and all such payments shall be valid and effective
to fully satisfy and discharge the City's obligations with
:..respect to the principal of and premium, if any, and
Interest on the Bonds to the extent of the sum or sums so
paid.
v) Upon delivery by the Depository to the Bond
Registrar of written notice to the effect that the
Depository -has determined to substitute a new Nominee in
place of the existing Nominee, and subject to the transfer
..provisions in paragraph 10 hereof, references to the Nominee
hereunder shall refer to such new Nominee.
vi) So long as any Bond is registered in the name
-.of-.a Nominee, all payments with respect to the principal of
and premium, if any, and interest on such Bond and all
notices with respect to such Bond shall be made and given,
-respectively, by the Bond Registrar or City, as the case may
be, to the Depository as provided in the Letter of
.Representations to the Depository required by the Depository
.as a -..condition to its acting as book -entry Depository for
the Bonds (said Letter of Representations, together with any
...-replacement thereof or amendment or substitute thereto,
including any standard procedures or policies referenced
therein or applicable thereto respecting the procedures and
other matters relating to the Depository's role as
913727.01 5
- book;. -entry- Depository for the Bonds, collectively
Wafter referred to as the "Letter of Representat-m ns --_
All transfers of beneficial- t�siersh.p
w.. .. _.
--
=4iitewasto -in each Bond issued in book -entry foray sbalL..b
`' `= 'in principal- amount to Authorized D - _. =...._.
=w a1 =fie effected by procedures by -the Depository :w t-1i-._ti�_ =a•
--=�iparits for recording_ and transferring the-ciyvnershsix�f---
beneficial interests in such Bonds .
-rn e®nnection with any notice a =-��
......_....:.- ::--L=-
- = Dot�nu ration to be provided to the Holders pu tta=m-.
-=`Resolution by the City or Bond Registrar with respect to any
:--consent nor other action to be taken by Holders;-
Depbsitory -shall consider the date of receipt :of
.requesting such consent or other action as the record date
-for` siWh cansent* or other action; provided, that.;_ .. It -.:— .
='the Bbnd Registrar may establish a special record date for-------;---. -
"` �' 'wsu+clt--Eohsent or other" action. The City or. -the
__ __ rgi"attar shall, to the extent possible, give- the -Depository`-
--==n-6tidE-4of such special record date not less than = -"15 calendar -
days --ia advance of such special record date to. the :extent:
possible. _
Any successor Bond Registrar in its -written
=1 acceptance of its duties under this Resolution and any
='paying'-agency/bond registrar agreement, shall agree to take .:�.
-any actions necessary from time to time to comply with the
requirements of the Letter of Representations.
{�) Termination of Book -Entry Only System. Discontinuance
of a particular Depository's services and termination of the..
book -entry only system may be effected as follows: _.
- i) The -Depository may determine to discontinue _ �_
- providing -its services with respect to the Bonds at any time-�-
--by giving written notice to the City and discharging its
w responsibilities with respect thereto under applicable law.
The -City may terminate the services of the Depository with
respect to the Bond if it determines that the Depository:is
=no- longer able to carry out its functions as securities-
depository or the continuation of the system of book -entry.. -.-
transfers through the Depository is not in the best
interests of the City or the Beneficial Owners.
ii) Upon termination of the services of the Depository
as -provided in the preceding paragraph, and if no substitute
securities depository is willing to undertake the functions
of the Depository hereunder can be found which, in the
opinion of the City, is willing and able to assume such
913727.01 6
functions upon reasonable or customary terms, or if the City
determines that it is in the best interests of the City or
--the-Beneficial Owners of the Bond that the Beneficial Owners
be=eble to obtain certificates for the Bonds, the Bonds
shall no longer be registered as being registered in the
-bond register in the name of the Nominee, but may be
retistered in whatever name or names the Holder of the Bonds
shall.-designate at that time, in accordance with paragraph
- 10--thereof. To the extent that the Beneficial Owners are
-_- -= A4634hated as the transferee by the Holders, in accordance
paragraph 10 hereof, the Bonds will be delivered to the
Beneficial Owners.
- - - - --- iii) Nothing in this subparagraph (c) shall limit or
restrict the provisions of paragraph 10 hereof.
of Representations. The City Clerk -Treasurer is
authorize -and directed to execute in the name of the City the
- Letter`6f Representations in substantially the form on file in
-- thee office=of the City. In the event of the disability or the
- resignation or other absence of the Clerk -Treasurer of the City,
such other officer of the City who may act in his or her behalf
shali without further act or authorization of the City do all
things and --execute all instruments and documents required to be
done or to be executed by such absent or disabled official. The
provisions in the Letter of Representations are incorporated
herein by -reference and made a part of the resolution, and if and
to the extent any such provisions are inconsistent with the other
provisions of this resolution, the provisions in the Letter of
Representations shall control.
3. impose: Refunding Findings. The Bonds, together
with other available funds, shall provide funds to advance refund
the Refunded Bonds (the "Refunding"). It is hereby found,
determined and declared that the Refunding is pursuant to
Minnesota Statutes, Section 475.67, and the present value of the
debt service savings to the City from the Refunding is 9.002 g
of the present value of debt service on the Refunded Bonds,
computed in accordance with the provisions of Minnesota Statutes,
Section 475.67, Subdivision 12, and accordingly the dollar amount
of such present value of the debt service for the Bonds is lower
by at least three percent (3.00$) than the dollar amount of such
present value of the debt service for the Refunded Bonds as
required in said Subdivision 12.
4. Interest. The Bonds shall bear interest payable
semiannually on February 1 and August 1 of each year (each, an
"Interest Payment Date"), commencing February 1, 1999, calculated
on the basis of a 360 -day year of twelve 30 -day months, at the
913727.01 7
respective rates per annum set forth opposite the maturity years
as follows:
Maturity
Year
1999
2000
2001
2002
2003
Interest Maturity
Rate Year
3.65%-
2004
3.90
2005
4.00
2006
4.10
2007
4.20
Interest
Rate
4.30 V
4.40
4.50
4.60
S. No Redemption. The Bonds shall not be subject to
redemption and prepayment prior to their maturity.
6. Bond Registrar. Firstar Bank of Minnesota, N.A., in
St. Paul, Minnesota, is appointed to act as bond registrar and
transfer agent with respect to the Bonds (the "Bond Registrar"),
and shall do so unless and until a successor Bond Registrar is
duly appointed, all pursuant to any contract the City and Bond
Registrar shall execute which is consistent herewith. The Bond
Registrar shall also serve as paying agent unless and until a
successor paying agent is duly appointed. Principal and interest
on the Bonds shall be paid to the registered holders (or record
holders) of the Bonds in the manner set forth in the form of Bond
and paragraph 12 of this resolution.
7. Form of Bond. The Bonds, together with the Bond
Registrar's Certificate of Authentication, the form of Assignment
and the registration information thereon, shall be in
substantially the following form:
91372.01 8
IX
INTEREST
RATE
REGISTERED OWNER:
PRINCIPAL AMOUNT:
UNITED STATES OF AMERICA
STATE OF MINNESOTA
WASHINGTON COUNTY
CITY OF HUGO
GENERAL OBLIGATION IMPROVEMENT
REFUNDING BOND, SERIES 19-98A
MATURITY DATE OF
DATE ORIGINAL ISSUE
APRIL 1, 1998
DOLLARS
CUSIP
KNOW-ALL PERSONS BY THESE PRESENTS that the City of
Hugo, Washington County, Minnesota (the "Issuer"), certifies that
it is indebted and for value received promises to pay to the
registered owner specified above, or registered assigns, in the
manner hereinafter set forth, the principal amount specified
above, on the maturity date specified above, without option of
prepayment, and to pay interest thereon semiannually on February
1 and August 1 of each year (each, an "Interest Payment Date"),
commencing February 1, 1999, at the rate per annum specified
above (calculated on the basis of a 360 -day year of twelve 30 -day
months) until the principal sum is paid or has been provided for.
This Bond will bear interest from the most recent Interest
Payment Date to which interest has been paid or, if no interest
has been paid, from the date of original issue hereof. The
principal of and premium, if any, on this Bond are payable upon
presentation and surrender hereof at the principal office of
Firstar Trust Company, 1555 North RiverCenter Drive, Milwaukee,
Wisconsin 53212, Attention: Corporate Trust Services, Suite 301,
as agent for Firstar Bank of Minnesota, N.A., in St. Paul,
Minnesota (the "Bond Registrar"), acting as paying agent, or any
successor paying agent duly appointed by the Issuer. Interest on
this Bond will be paid on each Interest Payment Date by check or
draft drawn on Firstar Trust Company and mailed to the person in
whose name this Bond is registered (the "Holder" or "Bondholder")
on the registration books of the Issuer maintained by the Bond
Registrar and at the address appearing thereon at the close of
business on the fifteenth day of the calendar month next
preceding such Interest Payment Date (the "Regular Record Date").
913727.01 9
Any interest not so timely paid shall cease to be payable to the
person who is the Holder hereof as of the Regular Record Date,
and shall be payable to the person who is the Holder hereof at
the close of business on a date (the "Special Record Date") fixed
by the Bond Registrar whenever money becomes available for
payment -'of the defaulted interest. Notice of the Special Record
Date shall be.given to Bondholders not less than ten days prior
to the Special Record Date. The principal of and premium, if
any, and interest on this Bond are payable in lawful money of the
United States of America. (So long as this Bond is registered in
the name -'of the Depository or its Nominee as provided -in the
Resoluti-en-hereinafter described, and as those terms are defined
therein,=payment of principal of, premium, if any, and interest
on this Bond and notice with respect thereto shall be made as
provided in the Letter of Representations, as defined in the
Resolution. Until termination of the book -entry only system
pursuant to the Resolution, Bonds may only be registered in the
name of the Depository or its Nominee.]
REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF
THIS BO14D SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL
FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE.
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,
precedent to and in the issuance of this Bond, have been done,
have happened and have been performed, in regular and due form,
time and manner as required by law, and that this Bond, together
with all other debts of the Issuer outstanding on the date of
original issue hereof and the date of its issuance and delivery
to the original purchaser, does not exceed any constitutional or
statutory limitation of indebtedness.
IN WITNESS WHEREOF, the City of Hugo, Washington
County, Minnesota, by its City Council has caused this Bond to be
executed on its behalf by the facsimile signatures of its Mayor
and its Clerk -Treasurer, the corporate seal of the Issuer having
been intentionally omitted as permitted by law.
Include only until termination of the book -entry only
system under paragraph 2 hereof.
913727.01 10
Date of Registration:
BOND REGISTRAR'S
CERTIFICATE OF
AUTHENTICATION
This Bond is one of the
Bonds described in the
Resolution mentioned
within.
Registrable by: FIRSTAR TRUST
COMPANY, AS AGENT FOR FIRSTAR
BANK OF MINNESOTA, N.A.
Payable at: FIRSTAR TRUST COMPANY,
AS AGENT FOR FIRSTAR BANK OF
MINNESOTA, N.A.
CITY OF HUGO,
WASHINGTON COUNTY, MINNESOTA
/s/ Facsimile
Mayor
/s/ Facsimile
Clerk -Treasurer
FIRSTAR BANK OF MINNESOTA, N.A.
St. Paul, Minnesota
Bond Registrar
By
Authorized Signature
913727.01 11
ON RMRSE OF BOND
No Redemption. The Bonds of this issue (the "Bonds")
are not subject to redemption and prepayment prior to their
maturity.
Issuance: Puruose: General Obligation. This Bond is
one of an issue in the total principal amount of $1,225,000, all
of like date of original issue and tenor, except as to number,
maturity;,interest rate and denomination, which Bond has been
issued pursuant to and In full conformity with the Constitution
and laws of -the State of Minnesota and pursuant to a resolution
adopted by -"the City Council of the Issuer on March 16, 1998 (the
"Resolution"), for the purpose of providing money, together with
other available funds, to refund in advance of maturity the
outstanding General Obligation Improvement Bonds, Series 1988A,
dated September 1, 1988 and General Obligation Improvement Bonds
of 1991, dated January 16, 1991, which mature in 1999, and
thereafter: This Bond is payable out of the Debt Service Account
of the Issuer's General Obligation Improvement Refunding Bonds,
Series 1998A Fund. This Bond constitutes a general obligation of
the Issuer, and to provide moneys for the prompt and full payment
of its principal, premium, if any, and interest when the same
become due, the full faith and credit and taxing powers of the
Issuer have been and are hereby irrevocably pledged.
Denominations: Exchange: Resolution. The Bonds are
issuable solely as fully registered bonds in Authorized
Denominations (as defined in the Resolution) and are exchangeable
for fully registered Bonds of other Authorized Denominations in
equal aggregate principal amounts at the principal office of the
Bond Registrar, but only in the manner and subject to the
limitations provided in the Resolution. Reference is hereby made
to the Resolution for a description of the rights and duties of
the Bond Registrar. Copies of the Resolution are on file int eh
principal office of the Bond Registrar.
Transfer. This Bond is transferable by the Holder in
person or by his, her or its attorney duly authorized in writing
at the principal office of the Bond Registrar upon presentation
and surrender hereof to the Bond Registrar, all subject to the
terms and conditions provided in the Resolution and to reasonable
regulations of the Issuer contained in any agreement with the
Bond Registrar. Thereupon the Issuer shall execute and the Bond
Registrar shall authenticate and deliver, in exchange for this
Bond, one or more new fully registered Bonds in the name of the
transferee (but not registered in blank or to "bearer" or similar
designation), of an Authorized Denomination or Denominations, in
913727.01 12
aggregate principal amount equal to the principal amount of this
Bond, of the same maturity and bearing interest at the same rate.
Rees upon Transfer or Loss. The Bond Registrar may
require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection with the transfer or
exchange of this Bond and any legal or unusual costs regarding
transfers and lost Bonds.
Treatment of Registered Owners. The Issuer and Bond
Registrar may treat the person in whose name this Bond is
registered as the owner hereof for the purpose of receiving
payment as herein provided (except as otherwise provided on the
reverse side hereof with respect to the Record Date) and for all
other purposes, whether or not this Bond shall be overdue, and
neither the Issuer nor the Bond Registrar shall be affected by
notice to the contrary.
Authentication. This Bond shall not be valid or become
obligatory for any purpose or be entitled to any security unless
the Certificate of Authentication hereon shall have been executed
by the Bond Registrar.
Qualified Tax-Ex2=t Obligation. This Bond has been
designated by the Issuer as a "qualified tax-exempt obligation"
for purposes of Section 265 (b) (3) of the Internal Revenue Code of
1986, as amended.
ABBREVIATIONS
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
TEN ENT - as tenants by the entireties
JT TEN - as joint tenants with right of survivorship
and not as tenants in common
UTMA - as custodian for
(Gust) (Minor)
under the Uniform
(State)
Transfers to Minors Act
Additional abbreviations may also be used
though not in the above list.
913n7.01 13
ASSIGNMENT
For value received, the undersigned hereby sells,
assigns and transfers unto
the within Bond and does
hereby irrevocably constitute and appoint
attorney to transfer the Bond on the books kept for the
registration thereof, 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 or any other "Eligible Guarantor Institu-
tion" as defined in 17 CFR 240.17 Ad -15(a)(2).
The Bond Registrar will not effect transfer of this Bond
unless the information concerning the transferee requested below
is provided.
Name and Address:
(Include information for all joint owners
if the Bond is held by joint account.)
913727.01 14
8. Execution: Temporary Bonds. The Bonds shall be
printed (or, at the request of the Purchaser, typewritten) and
shall be executed on behalf of the City by the signatures of its
Mayor and Clerk -Treasurer and be sealed with the seal of the
City; provided, however, that the seal of the City may be a
printed (or,. at the request of the Purchaser, photocopies)
facsimiles and the corporate seal may be omitted on the Bonds as
permitted by law. In the event of disability or resignation or
other absence of either such officer, the Bonds may be signed by
the manual or facsimile signature of that officer who may act on
behalf of such absent or disabled officer. In case either such
officer whose signature or facsimile of whose signature shall
appear on the Bonds shall cease to be such officer before the
delivery of the Bonds, such signature or facsimile shall
nevertheless be valid and sufficient for all purposes, the same
as if he or she had remained in office until delivery. The City
may elect to deliver, in lieu of printed definitive bonds, one or
more typewritten temporary bonds in substantially the form set
forth above, with such changes as may be necessary to reflect
more than one maturity in a single temporary bond. Such
temporary bonds may be executed with photocopied facsimile
signatures of the Mayor and Clerk -Treasurer. Such temporary
bonds shall, upon the printing of the definitive bonds and the
execution thereof, be exchanged therefor and cancelled.
9. Authentication. No Bond shall be valid or
obligatory for any purpose or be entitled to any security or
benefit under this resolution unless a Certificate of
Authentication on such Bond, -substantially in the form
hereinabove set forth, shall have been duly executed by an
authorized representative of the Bond Registrar. Certificates of
Authentication on different Bonds need not be signed by the same
person. The Bond Registrar shall authenticate the signatures of
officers of the City on each Bond by execution of the Certificate
of Authentication on the Bond and by inserting as the date of
registration in the space provided the date on which the Bond is
authenticated, except that for purposes of delivering the
original Bonds to the Purchaser, the Bond Registrar shall insert
as a date of registration the date of original issue, which date
is April 1, 1998. The Certificate of Authentication so executed
on each Bond shall be conclusive evidence that it has been
authenticated and delivered under this resolution.
10. Recristration: Transfer: Exchange. The City will
cause to be kept at the principal office of the Bond Registrar a
bond register in which, subject to such reasonable regulations as
the Bond Registrar may prescribe, the Bond Registrar shall
provide for the registration of Bonds and the registration of
transfers of Bonds entitled to be registered or transferred as
herein provided.
913727.01 is
Upon surrender for transfer of any Bond at the
principal office of the Bond Registrar, the City shall execute
(if necessary), and the Bond Registrar shall authenticate, insert
the date of registration (as provided in paragraph 9) of, and
deliver, in the name of the designated transferee or transferees,
one or more new Bonds of any Authorized Denomination or
Denominations of a like aggregate principal amount, having the
same stated maturity and interest rate, as requested by the
transferor; provided, however, that no Bond may be registered in
blank or in the name of "bearer" or similar designation.
- -At the option of the Holder, Bonds may be exchanged for
Bonds of -any Authorized Denomination or Denominations of a like
aggregate` -principal -amount and stated maturity, upon surrender of
the Bonds -to be exchanged at the principal office of the Bond
Registrar: Whenever any Bonds are so surrendered for exchange,
the City shall execute (if necessary), and the Bond Registrar -
shall authenticate, insert the date of registration of, and
deliver the Bonds which the Holder making the exchange is
entitled to receive. — -
-All Bonds surrendered upon any exchange or transfer
provided for in this resolution shall be promptly cancelled by
the Bond Registrar and thereafter disposed of as directed by the
City.
All Bonds delivered in exchange for or upon transfer of
Bonds shall be valid general obligations of the City evidencing
the same debt, and entitled to the same benefits under this
resolution, as the Bonds surrendered for such exchange or
transfer.
Every Bond presented or surrendered for transfer or
exchange shall be duly endorsed or be accompanied by a written
instrument of transfer, in form satisfactory to the Bond
Registrar, duly executed by the Holder thereof or his, her or its
attorney duly authorized in writing.
The Bond Registrar may require payment of a sum
sufficient to cover any tax or other governmental charge payable
in connection with the transfer or exchange of any Bond and any
legal or unusual costs regarding transfers and lost Bonds.
Transfers shall also be subject to reasonable
regulations of the City contained in any agreement with the Bond
Registrar, including regulations which permit the Bond Registrar
to close its transfer books between record dates and payment
dates. The Clerk -Treasurer is hereby authorized to negotiate and
execute the terms of said agreement.
913727.01 16
11. Rights Upon Transfer or Exchange. Each Bond
delivered upon transfer of or in exchange for or in lieu of any
other Bond shall carry all the rights to interest accrued and
unpaid, -and to accrue, which were carried by such other Bond.
12. Interest Payment: Record Date. Interest on any
Bond"shall be paid on each Interest Payment Date by check or
draft mailed to the person in whose name the Bond is registered
(the "Holder") on the registration books of the City maintained
by the Bond Registrar and at the address appearing thereon at the
close of business on the fifteenth (15th) day of the calendar
month next preceding such Interest Payment Date (the "Regular
Record Date"). Any such interest not so timely paid shall cease
to be payable to the person who is the Holder thereof as of the
Regular Record Date, and shall be payable to the person wha is
the Holder thereof at the close of business on a date (the
"Special Record Date") fixed by the Bond Registrar whenever money
becomes available for payment of the defaulted interest. Notice
of the -Special Record Date shall be given by the Bond Registrar
to the Molders not less than ten (10) days prior to the Special
Record Date.
13. Treatment of Registered Owner. The City and Bond
Registrar may treat the person in whose name any Bond is
registered as the owner of such Bond for the purpose of receiving
payment of principal of and premium, if any, and interest
(subject to the payment provisions in paragraph 12 above) on,
such Bond and for all other purposes whatsoever whether or not
such Bond shall be overdue, and neither the City nor the Bond
Registrar shall be affected by notice to the contrary.
14. Delivery: Agolication of Proceeds. The Bonds when
so prepared and executed shall be delivered by the Clerk -
Treasurer to the Purchaser upon receipt of the purchase price,
and the Purchaser shall not be obliged to see to the proper
application thereof.
15. Fund and Accounts. There is hereby created a
special fund to be designated the "General Obligation Improvement
Refunding Bonds, Series 1998A Fund" (the "Fund") to be
administered and maintained by the Clerk -Treasurer as a
bookkeeping account separate and apart from all other funds
maintained in the official financial records of the City. The
Fund shall be maintained in the manner herein specified until all
of the Bonds and the interest thereon have been fully paid.
There shall be maintained in the Fund two (2) separate accounts,
to be designated the "Escrow Account" and "Debt Service Account",
respectively. The proceeds of the sale of the Bonds herein
authorized, less any accrued interest received thereon and any
unused discount (unless used to help fund the Escrow Account),
913727.01 1
and less such Bond proceeds (if any) as may be used to pay
issuance expenses, plus other available municipal funds
(estimated at $ 297,056.00 ) as may be required to
adequately fund the Escrow Account for the purposes set forth in
subparagraph (i) below, are hereby pledged and appropriated and
shall be credited to the Escrow Account.
(i) Escrow Account. The Escrow Account shall defease the
Refunded Bonds. The Escrow Account shall be maintained as an
escrow account with Firstar Bank of Minnesota, N.A. (the "Escrow
Agent"), in St. Paul, Minnesota which isa suitable financial
institution within or without the State whose deposits are
insured by the Federal Deposit Insurance Corporation and whose
combined capital and surplus is not less than $500,000. The
Escrow Account shall be invested in securities maturing or
callable at the option of the holder on such dates and bearing
interest at such rates as shall be required to provide 'sufficient
funds, together with any cash or other funds retained in the
Escrow Account, to pay when due the interest to accrue on each
Refunded Bond to its maturity or to the date on which it is
called for redemption as herein provided and to pay the principal
amount of each such obligation at maturity or on the date on
which it has been called for redemption and to pay any premium
required for redemption on such date on the Refunded Bonds. The
moneys in the Escrow Account shall be used solely for the
purposes herein set forth and for no other purpose, except that
any surplus in the Escrow Account may be remitted to the City,
all in accordance with an agreement (the "Escrow Agreement") by
and between the City and Escrow Agent, a form of which agreement
is on file in the office of the Clerk -Treasurer.
(ii) Debt Service Account. To the Debt Service Account
there is hereby pledged and irrevocably appropriated and there
shall be credited: (1) any uncollected special assessments
pledged to the Debt Service Account of the Prior Bonds; (2) any
collections of all taxes heretofore levied for the payment of the
Prior Bonds as a result of the Refunding; (3) any other
unexpended monies pledged to the Debt Service Account of the
Prior Bonds pursuant to the Prior Resolution (unless used to fund
the Escrow Account); (4) all accrued interest received upon
delivery of the Bonds (unless used to fund the Escrow Account);
(5) any unused discount (unless used to fund the Escrow Account);
(6) any collections of all taxes herein or hereafter levied for
the payment of the Bonds and interest thereon; (7) all investment
earnings on funds in the Debt Service Account; and (8) any and
all other moneys which are properly available and are
appropriated by the governing body of the City to the Debt
Service Account. The amount of any surplus remaining in the Debt
Service Account when the Bonds and interest thereon are paid
913727.01 18
shall be used consistent with Minnesota Statutes, Section 475.61,
Subdivision 4.
The moneys in the Debt Service Account shall be used
solely to pay the principal of and interest on the Bonds or any
other bonds hereafter issued and made payable from the Fund. No
portion of the proceeds of the Bonds shall be used directly or
indirectly to acquire higher yielding investments or to replace
funds which were used directly or indirectly to acquire higher
yielding investments, except (1) for a reasonable temporary
period until such proceeds are needed for the purpose for which
the Bonds -were issued, and (2) in addition to the above, in -an
amount not greater than the lesser of five percent M) of the
proceeds of the Bonds or $100,000. To this effect, any proceeds
of the Bonds and any sums from time to time held in the Fund (or
any other City account which will be sued to pay principal and
interest to become due on the Bonds) in excess of amounts which
under the applicable federal arbitrage regulations may be
invested without regard as to yield shall not be invested in
excess of the applicable yield restrictions imposed by the
arbitrage regulations on such investments after taking into
account any applicable "temporary periods" or "minor portion"
made available under the federal arbitrage regulations. In
addition, the proceeds of the Bonds and money in the Fund shall
not be invested in obligations or deposits issued by, guaranteed
by or insured by the United States or any agency or
instrumentality thereof if and to the extent that such investment
would cause the Bonds to be "federally guaranteed" within the
meaning of Section 149(b) of the federal Internal Revenue Code of
1986, as amended (the "Code").
16. Prior Bonds: Security. Until retirement of the
Prior Bonds, all provisions theretofore made for the security
thereof shall be observed by the City and all of its officers and
agents.
17. ,SRecial Assessments. The City has heretofore
levied special assessments pursuant to the Prior Resolution,
which assessments were pledged to the payment of a portion of the
principal and interest on the Prior Bonds and all uncollected
special assessments are now pledged to the payment of a portion
of the principal and interest on the Bonds herein authorized.
18. Tax Levy• Coverage Test: Cancellation or certain
Tax Levies. To provide moneys for payment of the principal and
interest on the Bonds there is hereby levied upon all of the
taxable property in the City a direct annual ad valorem tax which
shall be spread upon the tax rolls and collected with and as part
of other general property taxes in the City for the years and in
the amounts as follows:
913727.01 19
Year of Tax Year of Tax
Levy Collection Amount
See Next Page
The taxes are such that if collected in full they,
together with estimated collections of special assessments and
other revenues herein pledged for the payment of the Bonds, will
produce at least five percent (5g) in excess of the amount needed
to meet when due the principal and interest payments on the
Bonds. The tax levies shall be irreparable so long as any of the
Bonds are outstanding and unpaid, provided that the City reserves
the right and power to reduce the levies in the manner -and to the
extent permitted by Minnesota Statutes, Section 475.61,
Subdivision 3.
Upon payment of the Prior 1988 Bonds, the uncollected
taxes levied in paragraph 18 of the Prior 1988 Resolution
authorizing the issuance of the Prior 1988 Bonds which are not
needed to pay the Prior 1988 Bonds as a result of the Refunding
shall be cancelled.
Upon payment of the Prior 1991 Bonds, the uncollected
taxes levied in paragraph 19 of the Prior 1991 Resolution
authorizing the issuance of the Prior 1991 Bonds which are not
needed to pay the Prior 1991 Bonds as a result of the Refunding
shall be cancelled.
19. Defeasance. When all Bonds have been discharged
as provided in this paragraph, all pledges, covenants and other
rights granted by this resolution to the registered holders of
the Bonds shall, to the extent permitted by law, cease. The City
may discharge its obligations with respect to any Bonds which are
due on any date by irrevocably depositing with the Bond Registrar
on or before that date a sum sufficient for the payment thereof
in full; or if any Bond should not be paid when due, it may
nevertheless be discharged by depositing with the Bond Registrar
a sum sufficient for the payment thereof in full with interest
accrued to the date of such deposit. The City may also at any
time discharge its obligations with respect to any Bonds, subject
to the provisions of law now or hereafter authorizing and
regulating such action, by depositing irrevocably in escrow, with
a suitable banking institution qualified by law as an escrow
agent for this purpose, cash or securities described in Minnesota
Statutes, Section 475.67, Subdivision 8, bearing interest payable
at such times and at such rates and maturing on such dates as
913727.01 20
Tax Levy Calculations For:
City of Hugo, Minnesota
$1,225,000 General Obligation Improvement Refunding Bonds, Series 1998A
Date of Bonds: 04/01/98
Total $1,463,905.83 _$2,697.59 $1,534,268.65 . $171,496.00 $1,362,772.65 $1,363,100
Notes: Total "Funds Available" consists of $1,129.89 accrued interest and $1,567.70 contingency amount.
This amount will be deposited into the Debt Service Account in the General Obligation Improvement
Refunding Bonds, Series 1998A Fund and will be used to pay a portion of the interest payment due 02/01/99.
Prepared by Ehlers and Associates 04/03/98 (P&INEW.WK4)
Less:
Levy
Collect
Pay
Total Funds
P & I
Special
Net
Tax
Year
Year
Year
P & I Available
x 105%
Assessments
Levy
Levy
..1997
/
1998
/ 1999
$202,370.83 $2,697.59
$209,656.90
.$25,962
$183,694.90
$183,700
1998
/
1999
/ 2000
180,005.00
$189,005.25
24,619
164,386.25
164,400
1999
/
2000
/ 2001
179,740.00
$188,727.00
21,041
167,686.00
167,70U
2000
/
2001
/ 2002
179,140.00
-'$188,097.00
'-20,037
168,060.00
168,100
2001
/
2002
/ 2003
178,195.00
$187,104.75
18,933
168,171.75
168,200
2002
/
2003
/ 2004
176,895.00
$185,739.75
17,829
167,910.75
168,000
2003
/
2004
/ 2005
175,230.00
$183,991.50
16,725
167,266.50
167,300
2004
/
2005
/ 2006
98,190.00
$103,099.50
15,622
87,477.50
87,500
2005
/
2006
/ 2007
94,140.00
$98,847.00
10,728
88,119.00
88,200
Total $1,463,905.83 _$2,697.59 $1,534,268.65 . $171,496.00 $1,362,772.65 $1,363,100
Notes: Total "Funds Available" consists of $1,129.89 accrued interest and $1,567.70 contingency amount.
This amount will be deposited into the Debt Service Account in the General Obligation Improvement
Refunding Bonds, Series 1998A Fund and will be used to pay a portion of the interest payment due 02/01/99.
Prepared by Ehlers and Associates 04/03/98 (P&INEW.WK4)
shall be required, without regard to sale and/or reinvestment, to
pay all amounts to become due thereon to maturity.
20. Continuing Disclosure.
(a) The City is the sole obligated person with respect
to -the Bonds. The City hereby agrees, in accordance with
the -provisions of Rule 15c2-12 (the "Rule"), promulgated by
the Securities and Exchange Commission (the "Commission").
pursuant to the Securities Exchange -Act of 1934, as amended,
--- and aContinuing Disclosure Undertaking (the "Undertaking")
hereinafter described. tot
(1) Provide or cause to be provided, (i) (a) upon
' :request to any person, or (b) upon establishment of a
state information depository ("SID"), to the'SID, its
audited financial statements for the most recent fiscal
and (ii) to each nationally recognized municipal
securities information repository ("NRMSIR") or to the
- Municipal Securities Rulemaking Board ("MSRB") and the
SID, if any, notice of the occurrence of certain
'materialevents with respect to the Bonds in accordance
with the Undertaking.
(2) The City agrees that its covenants pursuant
to the Rule set forth in this paragraph and in the
Undertaking are intended to be for the benefit of the
holders and any other beneficial owners of the Bonds
and shall be enforceable on behalf of such holders and
beneficial owners; provided that the right to enforce
the provisions of these covenants shall be limited to a
right to obtain specific enforcement of the City's
obligations under the covenants.
(a) The Mayor and Clerk -Treasurer of the City, or any
other officer of the City authorized to act in their place,
(the "Officers") are hereby authorized and directed to
execute on behalf of the City the Undertaking in substan-
tially the form presented to the Council, subject to such
modifications thereof or additions thereto as are (i)
consistent with the requirements under the Rule, (ii)
required by the purchaser of the Bonds and (iii) acceptable
to the Officers.
21. 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 shall be and are hereby irrevocably pledged.
If the balance in the Escrow Account or Debt Service Account is
913727.01 21
ever insufficient to pay all principal and interest then due on
the Bonds payable therefrom, the deficiency shall be promptly
paid out of any other accounts of the City which are available
-for such .purpose, and such other funds may be reimbursed without
interest -:from the Escrow Account or Debt Service Account when a
sufficient balance is available therein.
.:*....:..._22. Securities; Escrow Agent. Securities purchased
..from moneys in the Escrow Account shall be limited to securities
....setforth in Minnesota Statutes, Section 475.67, Subdivision 8,
.._and- any- amendments or supplements thereto. Securities purchased_-_
==-:from=:the=-Escrow-Account shall be purchased simultaneously with
the.de-livery of the Bonds. The City Council has investigated the
- fact�and•hereby finds and determines that the Escrow Agent is a
suitable financial institution to act as escrow agent and Is
qual€`3.ed within the meaning of -the provisions of -Minnesota
Statutes, Section 475.67, Subdivision S.
_ 23. Redemption of Prior Bonds. The Prior 198S. -Bonds
which matare in 1999 and thereafter shall -be redeemed and prepaid
on September 1, 1998, in accordance with the terms and conditions
.set forth in the Notice of Call for Redemption attached hereto as
--Exhibit"A,-and the Prior 1991 Bonds which mature in 1999 and
thereafter shall be redeemed and prepaid on August 1, 1998, in
accordance with the terms and conditions set forth in the Notice
of Cali for Redemption attached hereto as Exhibit B, which terms
-and-conditions are hereby approved and incorporated herein by
reference. Said.Notices of Call for Redemption shall be given
pursuant to the Escrow Agreement.
24. Escrow Agreement. On or.prior to the delivery of
the Bonds the Mayor and Clerk -Treasurer shall, and are hereby
authorized and directed to, execute on behalf of the City an
Escrow --Agreement. The Escrow Agreement is hereby approved and
adopted and made a part of this resolution, and the City
covenants that it will promptly enforce all provisions thereof in
the event of default thereunder by the Escrow Agent.
25. Purchase of SLGS or Open Market Securities.
Ehlers, as agent for the Council, is hereby authorized and
directed to purchase on behalf of the Council and in its name the
appropriate United States Treasury Securities, State and Local
Government Series and/or open market securities as provided in
paragraph 22 above, from the proceeds of the Bonds and, to the
extent necessary, other available funds, all in and, to the
extent necessary, other available funds, all in accordance with
the provisions of this resolution and the Escrow Agreement and to
execute all such documents (including the appropriate
subscription form) required to effect such purchase in accordance
with the applicable U.S. Treasury Regulations.
913727.01 22
26. Certificate of Recristration. The Clerk -Treasurer
is hereby directed to file a certified copy of this resolution
-_with the County Auditor of Washington County, Minnesota, together
with such other information as he or she shall require, and to
obtain -the County Auditor's Certificate that the Bonds have been
entered -in the County Auditor's Bond Register, that the tax levy
for the Prior Bonds has been cancelled, and that the tax levy
required by law for the Bonds has been made.
27.- Records and Certificates. The officers of the
City awe hereby authorized.. -and directed. to prepare and furnish to
the Purchaser, and to the attorneys approving the legality of the
issuance of the Bonds, certified copies of all proceedings and
records -of -the City relating to the Bonds and to the financial
condition and affairs of the City, and such other affidavits,
-condition
and information as are required to show the facts
relating to the legality and marketability of the Bonds -as the
same appear from the books and records under their custody and
`control -or as otherwise known to them, and all such certified
copies; --certificates and affidavits, including any re furnished,
shall -'be deemed representations of the City as to the facts
recited therein.
28. Negative Covenant as to Use of Proceeds and
Project-: The City hereby covenants not to use the proceeds of
the Bonds or to use the Project, or to cause or permit them to be
used, or to enter into any deferred payment arrangements for the
cost of the Project, 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.
29. Tax -Exempt Status of the Bonds;- Rebate. The City
shall comply with requirements necessary under the Code to
establish and maintain the exclusion from gross income under
Section 103 of the Code of the interest on the Bonds, including
without limitation (1) requirements relating to temporary periods
for investments, (2) limitations on amounts invested at a yield
greater than the yield on the Bonds, and (3) the rebate of excess
investment earnings to the United States if the Bonds (together
with other obligations reasonably expected to be issued and
outstanding at one time in this calendar year) exceed the
small -issuer exception amount of $5,000,000.
For purposes of qualifying for the exception to the
federal arbitrage rebate requirements for governmental units
issuing $5,000,000 or'less of bonds, the City hereby finds,
determines and declares that (1) the Bonds are issued by a
governmental unit with general taxing powers, (2) no Bond is a
private activity bond, (3) ninety-five percent (95%) or more of
the net proceeds of the Bonds are to be used for local
913727.01 23
governmental activities of the City (or of a governmental unit -
the jurisdiction of which is entirely within the jurisdiction of
the City), and (4) the aggregate face amount of all tax-exempt_
bonds {other than private activity bonds) issued by--the-City-(and-
all.subordinate entities thereof, and all- entities treated as - one_
issuer with 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) (E) of the Code. - -
::::_ .. 30.
Designation of Qualified Tax=Bxemnt-QbJj4WI ori.....
-= Iii' order to qualify the Bonds as "qualified tax-exempt
�obiigations" within the meaning of Section 265(b)(3)--®f-the-Code,
`The City hereby makes the following factual -statements and
representations:
(a) the Bonds are issued after August 7, 1986;
(b) the Bonds are not "private activity bonds" as..
defined in Section 141 of the Code;- -- -- -- -
(c) the City hereby designates the Bonds as
"qualified tax-exempt obligations" for purposes of
Section 265(b)(3) of the Code;
(d) 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 entities treated as one issuer with the
City, and all subordinate entities whose obligations
are treated as issued by the City) during this calendar
year 1998 will not exceed $10,000,000;
(e) not more than $10,000,000 of obligations
issued by the City during this calendar year 1998 have
been designated for purposes of Section 265(b)(3) of
the Code; and
(f) the aggregate face amount of the Bonds does
not exceed $10,000,000.
The City shall use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate
the designation made by this paragraph.
31. Sui gplemental Resolution. The Prior Resolution is
hereby supplemented to the extent necessary to give effect to the
provisions of this resolution.
913727.01 24
32. Payment of Issuance Exuenses. The City authorizes
the Purchaser to forward the amount of Bond proceeds allocable to
the payment of issuance expenses to Resource Bank & Trust
Company, Minneapolis, Minnesota on the closing date for further
distribution as directed by the City's financial advisor, Ehlers.
33. Severability. If any section, paragraph or
provision of this resolution shall be held to be invalid or
unenforceable for any reason, the invalidity or unenforceability
of such section, paragraph or provision shall not affect any of
the remaining provisions of this resolution.
34. Headings. Headings in this resolution are
included for convenience of reference only and are not a part
hereof, and shall not limit or define the meaning of any
provision hereof.
The motion for the adoption of the foregoing resolution
was duly seconded by member Goiffon and, after a full
discussion thereof and upon a vote being taken thereon, the
following voted in favor thereof: Miron, Arcand, Barnes, Goiffon
and Leroux
and the following voted against the same: None
Whereupon said resolution was declared duly passed and
adopted.
913727.01 25
STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF HUGO
I, the undersigned, being the duly qualified and acting
Clerk -Treasurer of the City of Hugo, Minnesota, DO HEREBY CERTIFY
that I have compared the attached and foregoing extract of
minutes with the original thereof on file in my office, and that
the same is a full, true and complete transcript of the minutes
of a meeting of the City Council of said City, duly called and
held on the date therein indicated, insofar as such minutes
relate to considering proposals for, and awarding the sale of,
$1,225,000 General Obligation Improvement Refunding Bonds, Series
1998A of said City.
WITNESS my hand this 16th day of March, 1998.
/20t'�' 4,1C,
Clerk- asurer
1�7
913727.01 26
Exhibit A
BID TABULATION
$1,225,000 General Obligation Improvement Refunding Bonds, Series 1998A
City of Hugo, Minnesota
SALE: March 16, 1998
AWARD: FBS INVESTMENT SERVICES, INC.
AN OPERATING DIVISION OF U.S. BANCORP INVESTMENT SERVICES, INC.
RATING: Moody's Investor Service, Inc. "A3"
BBI: 5.20%
NET TRUE
NAME OF BIDDER RATE YEAR PRICE INTEREST INTEREST
COST RATE
FBS INVESTMENT SERVICES, INC. -
Mv OPERAT w DIVISION of U.S. &OKMP INVESTMENT SERVICES. INC.
Minneapolis, Minnesota
NORWEST INVESTMENT SERVICES, INC.
Minneapolis, Minnesota
SALOMON SMITH BARNEY
Chicago, Illinois
CRONIN & COMPANY, INC.
Minneapolis, Minnesota
PIPER JAFFRAY INC.
Minneapolis, Minnesota
JOHN G. KINNARD & COMPANY
Minneapolis, Minnesota
MILLER, JOHNSON & KUEHN, INC.
Minneapolis, Minnesota
3.65%
3.90%
4.00%
4.10%
4.20%
4.30%
4.40%
4.50%
4.60%
4.00%
4.10%
4.20%
4.30%
4.40%
4.45%
4.50%
3.90%
4.00%
4.05%
4.10%
4.20%
4.30%
4.40%
3.80%
3.90%
4.05%
4.10%
4.20%
4.30%
4.40%
4.50%
4.55%
1999
2000
2001
2002
2003
2004
2005
2006
2007
1999-2001
2002
2003
2004
2005
2006
2007
1999
2000
2001
2002
2003
2004-2005
2006-2007
1999
2000
2001
2002
2003
2004
2005
2006
2007
$1,217,650.00
$1,216,606.95
$1,214,710.65
$1,214,587.50
$246,255.83
$246,865.55
$246,586.02
$249,319.17
4.4354%
4.4515%
4.4531%
4.4998%
Ehlers & Associates, Inc.3060 Centre Pointe Drive
41 Roseville, Minnesota 55113-1105
LEADERS IN PUBLIC FINANCE (612)697-8500 • FAX (612)697-8555
www.ehlem4nc.com
EXHIBITB
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION IMPROVEMENT
BONDS, SERIES 1988A
CITY OF HUGO,
WASHINGTON COUNTY, MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the
City of Hugo, Washington County, Minnesota, there have been
called for redemption and prepayment on
September 1, 1998
those outstanding bonds of the City designated as General
Obligation Improvement Bonds, Series 1988A, dated September 1,
1988, having stated maturity dates in the following years,
totalling $600,000 in principal amount and having CUSIP numbers
listed below:
Year CUSIP Number*
1999
2000
2001
2002
2003
2004
2005
The bonds are being called at a price of par plus accrued
interest to September 1, 1998, on which date all interest on said
bonds will cease to accrue. Holders of the bonds hereby called
for redemption are requested to present their bonds for payment,
at Firstar Trust Company, Milwaukee, Wisconsin, as agent for
Firstar Bank of Minnesota, N.A., successor to American Bank
National Association (formerly, American National Bank and Trust
Company), Attn: Corporate Trust Services, 1555 North RiverCentre
Drive, Suite 301, in Milwaukee, Wisconsin 53212, on or before
September 1, 1998.
*The City shall not be responsible for the selection of or use of
the CUSIP numbers, nor is any representation made as to their
correctness indicated in the notice. They are included solely
for the convenience of the holders.
Dated: March 16, 1998.
BY ORDER OF THE CITY
COUNCIL
/s/ Mary Ann Creager
Clerk -Treasurer
913727.01 B-1
1W
Important Notice: Under the Interest and Dividend Compliance Act
of 1983, 31$ will be withheld if tax identification is not
properly certified.
Additional information
may be obtained from:
EHLERS AND ASSOCIATES, INC.
3060 Centre Pointe Drive
Roseville, Minnesota SS113-1105
Telephone: (612) 697-8500
913727.01
B-2
EXHIBIT C
NOTICE OF CALL FOR REDEMPTION
GENERAL OBLIGATION IMPROVEMENT
BONDS OF 1991
CITY OF HUGO
WASHINGTON COUNTY
MINNESOTA
NOTICE IS HEREBY GIVEN that by order of the City Council of the
City of Hugo, Washington County, Minnesota, there have been
called for redemption and prepayment on
August 1, 1998
those outstanding bonds of the City designated as General
Obligation Improvement Bonds of 1991, dated January 16, 1991,
having stated maturity dates in the following years, totaling
$860,000 in principal amount, and having CUSIP numbers listed
below:
1999
444582
DM9
2000
444582
DN7
2001
444582
DP2
2002
444582
DQO
2003
444582
DR8
2004
444582
DS6
2005
444582
DT4
2006
444582
DUI
2007
444582
DV9
The bonds are being called at a price of par plus accrued
interest to August 1, 1998, on which date all interest on said
bonds will cease to accrue. The City will deposit federal or
other immediately available funds sufficient for such redemption
at the office of The Depository Trust Company, successor to
Midwest Securities Trust Company, on or before August 1, 1998.
The City shall not be responsible for the selection of or
use of the CUSIP numbers, nor is any representation made as
to their correctness indicated in the notice. They are
included solely for the convenience of the holders.
Indicates full call.
Dated: March 16, 1998.
BY ORDER OF THE CITY COUNCIL
/s/ Mary Ann Creager
City Clerk -Treasurer
913727.01 C-1
Important Notice: Under the Interest and Dividend Compliance Act
of 1983, 31V will be withheld if tax identification is not
properly certified.
Additional information
may be obtained from:
EHLERS AND ASSOCIATES, INC.
3060 Centre Pointe Drive
Roseville, Minnesota 55113-1105
Telephone: (612) 697-8500
913727.01
C-2