Loading...
HomeMy WebLinkAbout1984.11.08 RESO 1984-0018EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF HUGO, MINNESOTA HELD: November 5, 1984 Pursuant to due call and notice thereof, a Regular meeting of the City Council of the City of Hugo, Washington County, Minnesota, was duly called and held at the City Offices in said City on the 5th day of November, 1984, at 7:00 P.M. for the purpose of considering proposals for, and awarding the sale of, $295,000 General Obligation Improvement Bonds of 1984, Series A of the City. The following members were present: Mayor Mike McAllister Council Members: Dean Atkinson, Theodora Peltier, Charles Schwab, James Hauer and the following were absent: None Member Schwab introduced the following resolution and moved its adoption: 1984 - 18 RESOLUTION PROVIDING FOR THE ISSUANCE AND SALE OF $295,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1984, SERIES A, AND LEVYING A TAX FOR HE PAY.4ENT TT?EREnF WHEREAS: A. The City Council of the City of Hugo, Minnesota (hereinafter referred to as the "City") has heretofore deter- mined that it is necessary and expedient to issue $295,000 General Obligation Improvement Bonds of 1984, Series A, pursuant to Minnesota Statutes, Chapters 429 and 475 to finance the construction of various improvements in the City (here- inafter referred to as the "Improvements"); and B. To facilitate the preparation of the Request for Proposals distributed with respect to the negotiated sale of the $295,000 General Obligation Improvement Bonds of 1984, Series A, the City's fiscal consultant and Bond Counsel prepared a form of Official Terms of Offering (which form is attached hereto as Exhibit A) to include in the Request for Proposals distributed to potential purchasers; and I C. No other obligations have been sold pursuant to a private sale within the last three (3) calendar months of the date hereof which when combined with this issue would exceed the $300,000 limitation on negotiated sales as required by Minnesota Statutes, Section 475.60, Subdivision 2(2): NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Hugo, Minnesota, as follows: 1. Ratification of Official Terms of Offering. The City Council hereby ratifies, confirms and adopts the form of Official Terms of Offering attached hereto as Exhibit A. 2. Acceptance of Offer. The offer of 1ST Bank of St. Paul (the "Purchaser") to purchase $295,000 General Obligation Improvement Bonds of 1984, Series A of the City (hereinafter referred to as the "Bonds", or individually as a "Bond"), in accordance with the terms and at the rates of interest hereinafter set forth, and to pay therefor the sum of $29(1.058.75 plus interest accrued to settlement is hereby accepted. 3. Original Issue Date; Denominations; Maturities. The Bonds shall be dated December 1, 1984, as the date of original issue and shall be issued forthwith 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 Bonds shall mature, without option of prepayment, on June 1 in the years and amounts as follows: Year Amount Year Amount 1987 $15,000 1992 $25,000 1988 20,000 1993 25,000 1989 25,000 1994 35,000 1990 25,000 1995 50,000 1991 25,000 1996 50,000 4. Purpose. The Bonds shall provide funds to finance the construction of the Improvements. The total cost of the Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds herein authorized. Work on the Improvements shall proceed with due diligence to completion. 5. Interest. The Bonds shall semiannually on Junes and December 1 of June 1, 1985, at the respective rates per opposite the maturity years as follows: -2- bear interest payable each year, commencing annum set forth Maturity Years Interest Rates Maturity Years Interest Rates 1987 7.50% 1992 9.00% 1988 8.00% 1993 9.20% 1989 8.25% 1994 9.40% 1990 8.50% 1995 9.50% 1991 8.75% 1996 9.50% 6. Bond Registrar. 1ST Rank of St Rail] , in St. Paul , Minnesota, is appointed to act as bond registrar and transfer agent (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 to be issued hereunder, together with the Bond Registrar's Certificate of Authentica- tion, the form of Assignment and the registration information thereon, shall be in substantially the following form: -3- R - INTEREST RATE % PER ANNUM UNITED STATES OF AMERICA STATE OF MINNESOTA WASHINGTON COUNTY CITY OF HUGO GENERAL OBLIGATION IMPROVEMENT BOND OF 1984, SERIES A REGISTERED OWNER: PRINCIPAL AMOUNT: MATURITY DATE OF DATE ORIGINAL ISSUE December 1, 1984 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, without option of prepayment, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, and to pay interest thereon semiannually on June 1 and December 1 of each year (each, an "Interest Payment Date"), commencing June 1, 1985, 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 the First National Bank of St. Paul , 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 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"). 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 . -4- "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. REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS BOND 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 the Mayor and the City Clerk -Treasurer, the corporate seal of the Issuer having been intentionally omitted as permitted by law. -5- Date of Registration: BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the within mentioned Resolution. Bond Registrar By Authorized Signature Registrable by: Payable at: First BankOf au CITY OF HUGO, WASHINGTON COUNTY, MINNESOTA /s/ Facsimile Mayor /s/ Facsimile Clerk -Treasurer -6- ON REVERSE OF BOND This Bond is one of an issue in the total principal amount of $295,000, 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 on November 5, 1984 (the "Resolution"), for the purpose of providing money to finance the construction of various improvements and is payable out of the Debt Service Account of the General Obligation Improvement Bonds of 1984, Series A Fund of the Issuer. 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 became due, the full faith and credit and taxing powers of the Issuer have been and are hereby irrevocably pledged. The Bonds are issuable solely as fully registered Bonds in the denominations of $5,000 and integral multiples thereof of a single maturity, and are exchangeable for fully registered Bonds of other denominations in equal aggregate principal amounts and in authorized denominations 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 in the principal office of the Bond Registrar. This Bond is transferable by the Holder in person or by his 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 regula- tions 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 aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. The Bond Registrar may require payment of a 'sum suffi- cient 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. -7- The Issuer and the 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 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. 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. 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 UNIF GIFT MIN ACT Custodian Cust Minor under Uniform Gifts to Minors Act (State) Additional abbreviations may also be used though not in the above list. -8- ASSIGNMELNT 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 mayor stock exchanges. 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.) -9- 8. Execution. The Bonds shall be executed on behalf of the City by the signatures of its Mayor and City Clerk - Treasurer and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed facsimile; provided further that both of such signatures may be printed facsimiles and the corporate seal may be omitted on the Ronds 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. 9. Authentication. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless and until 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 December 1, 1984. The executed Certificate of Authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 10. Registration; 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. 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 of (as provided in paragraph 9) and deliver, in the name of the designated transferee or transferees, one or more new Bonds of any authorized denomina- tion or denominations of a like aggregate principal amount, -10- 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 registra- tion 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 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. No service charge shall be made to the holder of any Bond for any registration, transfer or exchange. Transfers shall also be subject to reasonable regula- tions of the Issuer 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. 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 -11- 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 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 who 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 Holders not less than 10 days prior to the Special Record Date. 13. Treatment of Registered Owner. The City and the Bond Registrar may treat the person in w ose 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; Application of Proceeds. The Bonds when so prepared and executed shall be delivered by the City 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. Funds and Accounts. There is hereby created a special fund to be designated "General Obligation Improvement Bonds of 1984, Series A Fund" (the "Fund") to be held and administered by the City Clerk -Treasurer separate and apart from all other funds of the City. The Fund shall be maintained in the manner herein specified until all of the Bonds herein authorized and the interest thereon have been fully paid. There shall be maintained in the Fund two separate accounts to be designated the "Construction Account" and the "Debt Service Account", respectively. (a) Construction Account. The proceeds of the sale of the Bonds herein authorized, less any accrued interest received thereon, and less any amount paid for the Bonds in excess of $290,000, and less capitalized interest in the amount of $14,000 (together with interest earnings thereon and subject to such other adjustments as are appropriate to provide sufficient funds to pay interest due on the Bonds on or before June 1, 1986), plus any -12- special assessments levied with respect to Improve- ments financed by the Bonds and collected prior to completion of the Improvements and payment of the costs thereof, shall be credited to the Construction Account, from which there shall be paid (or reim- bursed if already paid) all costs and expenses of making the Improvements listed in paragraph 16, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65; and the moneys in said account shall be used for no other purpose except as otherwise provided by law; provided that proceeds of the Hond may also be used to the extent necessary to pay interest on the Bonds due prior to the antici- pated date of commencement of the collection of taxes or special assessments herein levied or covenanted to be levied; and provided further that if upon comple- tion of the Improvements there shall remain any unexpended balance in the Construction Account, the balance (other than any special assessments) may be transferred by the Council to the fund of any other improvement instituted pursuant to Minnesota Statutes, Chapter 429; and provided further that any special assessments credited to the Construction Account are hereby pledged and shall be used only to pay principal and interest due on the Bonds. (b) Debt Service Account. There is hereby pledged and there shall be credited to the Debt Ser- vice Account (1) all collections of special assess- ments herein covenanted to be levied and either initially credited to the Construction Account and required to pay any principal and interest due on the Bonds or collected subsequent to the completion of the Improvements and payment of the costs thereof; (2) all accrued interest received upon delivery of the Bonds; (3) all funds paid for the Bonds in excess of $290,000; (4) capitalized interest in the amount of $14,000 (together with interest earnings thereon and subject to such other adjustments as are appropri- ate to provide sufficient funds to pay interest due on the Bonds on or before June 1, 1986; (5) any collections of all taxes herein levied for the pay- ment of the Bonds and interest thereon; (6) all funds remaining in the Construction Account after comple- tion of the Improvements and payment of the costs thereof, not so transferred to the account of another improvement; and (7) all investment earnings on funds held in the Debt Service Account. -13- The Debt Service Account herein created shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds issued hereunder and any other general obligation bonds of the City hereafter issued by the City and made payable from said account as provided by law. Any sums from time to time held in the Debt Service Account (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under the applicable federal arbitrage regulations may be invested without regard to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" made available under the federal arbitrage regulations. In addition, 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 guaran- teed" within the meaning of Section 103(h) of the Internal Revenue Code of 1954, as amended. 16. Assessments. It is hereby determined that no less than 20% o the cost to the City of each Improvement financed hereunder within the meaning of Minnesota Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied against every assessable lot, piece and parcel of land benefited by the Improvements. The City hereby covenants and agrees that it will let all construction contracts not heretofore let within one year after ordering each Improvement financed hereunder unless the resolution ordering the Improvement specifies a different time limit for the letting of construction contracts and will do and perform as soon as they may be done, all acts and things necessary for the final and valid levy of such special assessments, and in the event that any such assessment be at any time held invalid with respect to any lot, piece or parcel of land due to any error, defect, or irregularity in any action or proceedings taken or to be taken by the City or this Council or any of the City officers or employees, either in the making of the assessments or in the performance of any condition precedent thereto, the City and this Council will forthwith do all further acts and take all further proceedings as may be required by law to make the assessments a valid and binding lien upon such property. The special assessments have not heretofore been authorized, and accordingly, for purposes of Minnesota Statutes, Section 475.55, Subdivision 3, the special assessments are hereby authorized. Subject to such adjustments as are required by conditions in existence at the time the assessments are levied, the assessments are hereby authorized and it is hereby determined that the assessments shall be payable in equal, consecutive, annual installments, with -14- general taxes for the years shown below and with interest on the declining balance of all such assessments at a rate per annum not greater than the maximum permitted by law and not less than 10.4% per annum: Improvement Designation Amount Levy Years Birchwood Builders $295,000 1985 - 1994 Plat At the time the assessments are in fact levied the City Council shall, based on the then -current estimated col- lections of the assessments, make any adjustments in any ad valorem taxes required to be levied in order to assure that the City continues to be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. 17. Tax Levy; Coverage Test. 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: Year of Tax Year of Tax Levy Collection Amount 1984 1985 0 1985 1986 0 1986 1987 0 1987 1988 0 1988 1989 0 1989 1990 0 1990 1991 0 1991 1992 0 1992 1993 0 1993 1994 0 1994 1995 0 The tax levies are such that if collected in full they, together with estimated collections of special assess- ments and other revenues herein pledged for the payment of the Bonds, will produce at least five percent in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tax levies shall be irrepealable 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. -15- 18. General Obligation Pledge. For the prompt and full payment of the principal of, and premium, if any, 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 Debt Service Account is ever insufficient to pay all principal, premium, if any, and interest then due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which are available for such purpose, and such other funds may be reimbursed with or without interest from the Debt Service Account when a sufficient balance is available therein. 19. Certificate of Registration. The Clerk- Treasurer is hereby directed to file a certified copy of this resolution with the County Auditor of Washington County, Minne- sota, together with such other information as he shall require, and to obtain from the Auditor his certificate that the Bonds have been entered in the Auditor's Bonus Register, and that the tax levy required by law has been made. 20. Records and Certificates. The officers of the City are hereby authorized and directed to prepare and furnish to the Purchaser of the Bonds, and to the attorneys approving the legality of the issuance thereof, 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, certificates 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, in- cluding any heretofore furnished, shall be deemed represen- tations of the City as to the facts recited therein. 21. Headings. Headings in this resolution are included for convenience of reference only, and are not a part hereof. The motion for the adoption of the foregoing resolution was duly seconded by member _T 1-jej and, after a full discussion thereof, and upon vote being taken here n the following voted in favor thereof: Mayor Mike McAllister, Lound iembers: Dean Atkinson, Theodora Peltier, Charles Schwab, James Hauer and the following voted against the same: None Whereupon said resolution was declared duly passed and adopted. -16- 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 camplete 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 bids for, and awarding the sale of, $295,000 General Obligation Improvement Bonds of 1984, Series A of said City. WITNESS my hand and the seal of said City this 8th day of November , 1984. (SEAL) / Clerk -Treasurer i -17- EXHIBIT A OFFICIAL TERMS OF OFFERING $295,000 GENERAL OBLIGATION IMPROVEMENT BONDS OF 1984, SERIES A CITY OF HUGO WASHINGTON COUNTY MIIMI SOTA NOTICE IS HEREBY GIVEN that these bonds will be offered for sale according to the following terms: TIME AND PLACE: Sealed bids for these bonds will be opened and recorded on Monday, November 5, 1984, at 5:00 o'clock P.M., local time, at the office of the City Clerk -Treasurer in the City Hall in the City of Hugo; Minnesota. TYPE OF BONDS: Fully registered general obligation improvement bonds, $5,000 denomina- tions or any integral multiple thereof of a single maturity. DATE OF ORIGINAL December 1, 1984. ISSUE OF BONDS: PURPOSE: To construct various improvements in the City. INTEREST PAYMENTS: June 1, 1985, and semi-annually thereafter on June 1 and December 1 in each year. MATURITIES: June 1 in each of the years and amounts as follows: Years Amounts 1987 $15,000 1988 20,000 1989-1993 25,000 1994 35,000 1995-1996 50,000 All dates are inclusive. REDEMPTION: All Bonds will be without right of prior redemption. PAYING AGENT, The Issuer will select a Paying REGISTRAR, and Agent, Registrar and Transfer Agent TRANSFER AGENT: prior to the awarding of the bonds. The Issuer will pay the customary charges for this service. CUSIP NUMBERS: CUSIP numbers will be printed on said bonds at the option of the purchaser, but neither the failure to print such numbers on any bond nor any error with respect thereto shall constitute cause for a failure or refusal by the purchaser thereof to accept delivery of and pay for said bonds in accordance with terms of the purchase contract. DELIVERY: Not more than forty days after award, subject to approving legal opinion of Briggs and Morgan, Professional Association, of St. Paul and Minneapolis, Minnesota. Bond printing and legal opinion will be paid by the Issuer and delivery will be anywhere in the continental United States without cost to the purchaser. Legal opinion will be printed on the bonds at the request of the successful bidder. TYPE OF BID Sealed bids for not less than $290,000 and accrued interest on the principal sum of $295,000 from the date of the bonds to the date of delivery must be filed with the City Clerk -Treasurer prior to the time of sale. Each bid must be unconditional except as to legality. A certified or cashier's check in the amount of $5,900 pay- able to the order of the City Treasurer must accompany each bid, to be forfeited as liquidated damages if the company making the bid fails to comply with the accepted bid. Bids for the bonds should be addressed to: -2- Ms. Mary Ann Creager City Clerk -Treasurer City Hall Hugo, Minnesota 55038 Bids delivered to Ehlers and Associates, Inc., by 12:00 o'clock P.M. on the day of sale will be carried to the sale and the bid security will be retained in the offices of Ehlers and Associates, Inc., with the same effect as if delivered to the City Clerk - Treasurer. RATES: All rates must be in integral multiples of 1/20th or 1/8th of 1% and may not exceed the maximum rate permitted by law. No limitation is placed upon the number of rates which may be used. All rates shall be in ascending order. AWARD: Award will be made solely on the basis of lowest net interest cost, determined by addition of any dis- count to and deduction of any pre- mium from the total interest on all bonds from their date to their stated maturity. The net effective average rate of the issue may not exceed the maximum rate permitted by law. -3- The Issuer reserves the right to reject any and all bids, to waive informalities and to adjourn the sale. BY ORDER OF THE CITY COUNCIL OF THE CITY OF HUGO, MINNESOTA /s/ Mary Ann Creager City Clerk -Treasurer Additional information may be requested from, and bid forms will be distributed by, and bid may be delivered to: EHLERS AND ASSOCIATES, INC. First National - Soo Line Concourse 507 Marquette Avenue Minneapolis, Minnesota 55402 Telephone: 612-339-8291 Financial Consultants to the City. -4-