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HomeMy WebLinkAbout06/09/1993 TENTATIVE AGENDA ADJ.REG. SESSION SHAKOPEE, MINNESOTA JUNE 9, 1993 LOCATION: City Hall, 129 Holmes Street South Vice Mayor Joan Lynch presiding 1] Roll Call at 5: 00 p.m. 2 ] Award the Sale of $2 , 690, 000 General Obligation Tax Increment Refunding Bonds, Series 1993A - Res. No. 3809 3] Other Business 4] Adjourn to Tuesday, June 15, 1993 at 7 : 00 p.m. Dennis R. Kraft City Administrator TO: Dennis R. Kraft, City Administrator FROM: Gregg Voxland, Finance Director RE: 1993A TIF Refunding Bond Sale DATE: June 4, 1993 Introduction Council has set a of refunding bond sale for 6/9/93. Background Council has set June 9, 1993 for the sale of GO TIF Refunding Bonds. Bids will be opened that morning. Springsted will bring the results of the bids to the council meeting and will also bring the resolution awarding the sale to the successful bidder. The resolution will be prepared by bond counsel. Action Offer the resolution awarding the sale of the bonds and move its adoption. l[f.JUVL/Vtv 06.04/93 15:15 FAX 612 223 3002 SPRINGSTED INC. - • --- --' then introduced t: .e Councilmember following resolution and moved its adoption: RESOLUTION NO. RESOLUTION AUTHORIZING pr7DSDE AILS AND PROVIDINGSALE, FOR PRESCRIBING THE FORM GENERAL OBLIGATION TAX • THE PAYMENT OF $ INCREMENT REFUNDING BONDS, SERIES 1993A BE IT RESOLVED by the City Council of the City of Shakopee, Minnesota, as follows : Section 1 . T tr^T; zatian_J . 1 .01 . •A„r�cr' 'at� on oon • This Council, deter'• tines is necessary for the City to sell and issue its General that it Bonds, Series 1993A in the (the 9) toi theprov: de Obligation Tax Increment Refundingtion fr aggregatehprincipal amountdprepaymentof $ itn the g do the redemption and of $2, 590, 000 General Oblige Tar Bonds, Series 1989A maturing 1, 1995 , pars Tax Incrementhough20033u (theg"Refunded Bonds") on February 1996 through (the This refunding constitutes a "crossover„ refunding as defined in Minnesota Statutes, Section 475 . 17, Subdivision 13 . received _ — R cQ;ved. The City has rece find and 1 .02 . and does hereby proposals for the purchase of the Bonds, determine that the most favorable proposal received is that o: of to purchase the Bonds at and associates (the "Upluswaicrued further termsnaand cstoti price of $ plus accrued interest on all Bonds to tie dayand payment, on the ns of delivery hereinafter set forth . 1 .03 . le of Bonds . The sale of the Bonds saner •by awarded to the Underwriter, and the Mayor and City herebyy o on authorized and directed on behalf oft neeCityhtohexecule aof said cforT the sale oit the ch Bonds The good fai' h bid. The good faith check of the Directorsuccessful bidder shal. be retainedata deposited by the Finance checsof and checks other bidders shall be returned to them forthwith. av; nas . It is hereby determined that by 1 .04 . c�•y--� issuance of the Bonds the Cityof approximately roximately ill realize a substantial int; rest $ rate reduction, a gross savingsf payable from moseys fer into account expenses of tundiflg savings (using : ey other proceeds, and a presentvalue yieldr on the Bonds,P com computed in accordance with Section 148 o: the on P Internal Revenue Code of 1986, as amended, as the discount fa( tor) which is more than three percen' of of approximately $ r debt service on the Refunded the present value of the erna�.ning Bonds . 06.04%93 13:58 FAX 612 223 3002 SPRINGSTED INC. 2002.015 Section 2 . :.• . - „ • ; -. ' _ •• • . - ' .• . • Delivery. 2 .01 . Maturities; Interest Rates; Denominations; Payment . The Bonds shall be designated General Obligation Ta : Increment Refunding Bonds, Series 1993A, shall be originally fated as of July 1, 1993, shall be in the denomination of $5, 000 ea :h, or any integral multiple thereof, shall mature on February 1 .n the respective years and amounts stated below, and shall bear interest from date of issue until paid or duly called for redemption at the respective annual rates set forth opposite ;uch years and amounts, as follows : Year Amallat Bata Year AmS»m Rat e The Bonds shall be issuable only in fully registered form. T: .e interest thereon and, upon surrender of each Bond, the princiHa1 amount thereof, shall be payable by check or draft issued by .he Registrar for the Bonds appointed herein. 2 .02 . Dates: In est ayment,, Dates. Each Bond shill be dated as of the last interest payment date preceding the d. .te of authentication to which interest on the Bond has been paid or made available for payment, unless (i) the date of authentica .ion is an interest payment date to which interest has been paid o - made available for payment, in which case such Bond shall be lated as of the date of authentication, or (ii) the date of authentication is prior to February 1, 1994, in which case su :h Bond shall be dated as of July 1, 1993 . The interest on the ; ;onds shall be payable on February 1 and August 1 in each year, commencing February 1, 1994, to the owner of record thereof a . of the close of business on the fifteenth day of the immediately preceding month, whether or not such day is a business day. 2 . 03 . Registration. The City shall appoint, and siall maintain, a bond registrar, transfer agent and paying agent ( .he Registrar) . The effect of registration and the rights and du .ies of the City and the Registrar with respect thereto shall be a ; follows : -2- 06/04;93 13:59 FAX 612 223 3002 SPRINGSTED INC. 11003/015 (a) Register. The Registrar shall keep at its principal corporate trust office a bond register in which the Registrar shall provide for the registration of ownership of Bonds and the registration of transfers and exchanges 01 Bonds entitled to be registered, transferred or exchanged. (b) Transfer of Bonds . Upon surrender for transffr of any Bond duly endorsed by theregistered owner thereof cr accompanied by a written instrument of transfer, in fora satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorizBd by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, one or more new Bonds of a lice aggregate principal amount and maturity, as requested by the transferor. The Registrar may, however, close the books for registration of any transfer after the fifteenth day of :he month preceding each interest payment date and until suci interest payment date . (c) Fxc.hange of Bonds . Whenever any Bonds are surrendered by the registered owner for exchange the Registrar shall authenticate and deliver one or more new Bonds of a like aggregate principal amount and maturity, as requested by the registered owner or the owner's attorne ' in writing. (d) Camaellatioa. All Bonds surrendered upon any transfer or exchange shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the :ity. (e) T1. e s - 'r • - * - . when any B rnd is presented to the Registrar for transfer, the Registra • may refuse to transfer the same until it is satisfied that t: le endorsement on such Bond or separate instrument of trans 'er is valid and genuine and that the requested transfer is legally authorized. The Registrar shall incur no liabil .ty for the refusal, in good faith, to make transfers which .t, in its judgment, deems improper or unauthorized. (f) £ersons Deemed Owners . The City and the Regis .rar may treat the person in whose name any Bond is at any tii :e registered in the bond register as the absolute owner of such Bond, whether such Bond shall be overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on such Bond and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be vali< and effectual to satisfy and discharge the liability upon such Bond to the extent of the sum or sums so paid. -3- 06/04.93 14:00 FAX 612 223 3002 SPRINGSTED INC. a004i015 (g) . For every transfer cr exchange of Bonds, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee or other governmental charge required to be paid with respect to such transfer or exchange. (h) Mutilated. Loa _ Stolen or Destroyed Bonds. ] n case any Bond shall become mutilated or be destroyed, stDlen or lost., the Registrar shall deliver a new Bond of like amount, number, maturity date and tenor in exchange and substitution for and upon cancellation of any such mutilated Bond or in lieu of and in substitution for any such Bond destroyed, stolen or lost, upon the payment of the reaso able expenses and charges of the Registrar in connection therewith; and, in the case of a Bond destroyed, stolen )r lost, upon filing with the Registrar of evidence satisfa :tory to it that such Bond was destroyed, stolen or lost, and )f the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance aid amount satisfactory to it, in which both the City and the Registrar shall be named as obligees . All Bonds so surrendered to the Registrar shall be cancelled by it ani evidence of such cancellation shall be given to the City If the mutilated, destroyed, stolen or lost Bond has alread , matured or been called for redemption in accordance with its terms it shall not be necessary to issue a new Bond prio , to payment . 2 .04 . c. .. ' • - .r • - . '. .. - - ' • ! a - . 'he City hereby appoints , , Minnesota, as the initial Registrar and Paying Agent for the Bonds, which, together with any successo: entity is sometimes referred to herein as the Registrar or thi Registrar and Paying Agent . The Mayor and the City Clerk are authorized to execute and deliver, on behalf of the City, a contract with said Registrar. Upon merger or consolidation o: the Registrar with another corporation, if the resulting corporation is a bank or trust company authorized by law to conduct such business, such corporation shall be authorized to act as succ( ssor Registrar. The City agrees to pay the reasonable and customary charges of the Registrar for the services performed. The Cit' reserves the right to remove the Registrar upon thirty (30) days notice and upon the appointment of a successor Registrar, in. . hich event the predecessor Registrar shall deliver all cash and Bonds in its possession to the successor Registrar and shall delive] the bond register to the successor Registrar. 2 .05 . Redemption . Bond maturing in the years 1996 through 2001 shall not be subject to redemption prior to maturity, but Bonds maturing in the years 2002 and 2003 shall be subject to redemption and prepayment at the option of the City, in whole or -4- 06/04/93 14:00 FAX 612 223 3002 SPRINGSTED INC. Z005/015 in part, in such order as the City shall determine and by lot as to Bonds having the same maturity date, on February 1, 2001 Hnd on any date thereafter (whether or not an interest payment date) , at a price equal to the principal amount thereof and accrued interest to the date of redemption . Prior to the date set for redemption of any Bond prior to its stated maturity date, the Clerk shall cause notice of the call for redemption thereof to be published as required by law and, at least twenty (20) days prior to the designated redemption date, shall cause notice of the call tc be mailed to the registered holders of any Bonds to be redeemed at their addresses as they appear on the bond register described in Section 2 . 03 hereof . 2 .06 . Execution. Authenticatioa and Delivery. The Bonds shall be prepared under the direction of the City Clerk and shall be executed on behalf of the City by the signatures of :he Mayor and the City Clerk, provided that all signatures may be printed, engraved or lithographed facsimiles of the originals In case any officer whose signature or a facsimile of whose signLture shall appear on the Bonds shall cease to be such officer befo -e the delivery of any Bond, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the sale as if he had remained in office until delivery. Notwithstanding such execution, no Bond shall be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution unl :ss and until a certificate of authentication on such Bond has bean duly executed by the manual signature of an authorized representative of the Registrar. Certificates of authenticat .on on different Bonds need not be signed by the same representat .ve. The executed certificate of authentication on each Bond shall be conclusive evidence that it has been authenticated and delivered under this Resolution. When the Bonds have been so prepared executed and authenticated, the Clerk shall deliver the same ' o the purchaser thereof upon payment of the purchase price in accordance with the contract of sale heretofore made and execited, and said purchaser shall not be obligated to see to the application of the purchase price. 2 . 07 . Form of Bonds . The Bonds shall be printed is substantially the following form: -5- 06/04/93 14:01 FAT 612 223 3002 SPRINGSTED INC. 2)006%015 • [Face of the Bonds) UNITED STATES OF AFRICA R- STATE OF MINNESOTA $ COUNTY OF SCOTT CITY OF SHAKOPEE GENERAL OBLIGATION TAX INCREMENT REFUNDING BOND, SERIES 1993A Interest Maturity Date of Rate Date Original Issue CUSIP February 1, July 1, 1993 Registered Owner: Principal Amount : Dollars KNOW ALL PERSONS BY THESE PRESENTS that the City of Shakopee, a duly organized and existing municipal corporation of Scott County, Minnesota (the City) , acknowledges itself to be indebted and for value received hereby promises to pay to the registered owner named above, or registered assigns, the prin :ipal sum specified above on the maturity date specified above, wit: .out option of prior payment, and to pay interest thereon from the date hereof at the annual rate specified above, payable on Februar . 1 and August 1 in each year, commencing February 1, 1994, to th• : person in whose name this Bond is registered at the close of business on the 15th day (whether or not a business day) of t. .e month immediately preceding the payment date . The interest hi :reon and, upon presentation and surrender of this Bond, the princi: ial hereof, are payable in lawful money of the United States of America by check or draft issued by , in , Bond Registrar and Paying Agent (the Registrar) , or its desig: sated successor under the Resolution described herein . For the pro: tpt and full payment of such principal and interest as the same respectively become due, the full faith and credit and taxing powers of the City have been and are hereby irrevocably pledg' :d. Additional provisions of this Bond are contained on the reverse hereof and such provisions shall for all purposes hay. : the same effect as though fully set forth in this place. -6- 06/04/93 14:02 FAX 612 223 3002 _ SPRINGSTED INC. _ _ 2007/015 This Bond shall not be valid or become obligatory for any purpose or be entitled to any security or benefit under tie Resolution described herein until the Certificate of Authentication hereon shall have been executed by the Registrar by manual signature of one of its authorized representatives . IN WITNESS WHEREOF, the City of Shakopee, Scott Colnty, Minnesota, by its City Council, has caused this Bond to be executed on its behalf by the printed facsimile signatures of the Mayor and City Clerk, and has caused this Bond to be dated as of the date set forth below. CITY OF SHAKOPEE, MINNESOCA (facsimile) — Mayor Attest : (facsimile) City Clerk Date of Authentication: CERTIFICATE OF AUTHENTICATION This is one of the Bonds delivered pursuant to the Resolution mentioned within . Registrar By Authorized Representat .ve [Reverse side of the Bonds] This Bond is one of an issue in the aggregate principal amount of $ , all of like date and tenor except as to maturity date, interest rate, denomination and redemption privilege, issued pursuant to a resolution adopted by the Cit , Council on June 9, 1993 (the Resolution) , to provide for the redemption and prepayment of certain outstanding tax incremen . bonds of the City issued to finance costs incurred by the Cit . in -7- 2 2 SPRINGSTED INC. Z008/015 06%04�93 14:02 F. 612 23 300 _ _ _ _ _ • aid of its Minnesota Valley Housing & Redevelopment Project 1 (the Project) , and is issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota then :unto enabling, including Minnesota Statues, Chapters 469 and 475 . The Bonds of this series are issuable only as fully registered Bolds, in denominations of $5, 000 of any multiple thereof, of single maturities . In the Resolution the City council determined that in calendar year 1993 the City does not expect to issue tax-exempt obligations in an aggregate principal amount greater than $10, 000, 000 (exclusive of "private activity bonds") , and designated the Bonds as "qualified tax exempt obligations" within the meaning of Section 265 of the Internal Revenue Code of 1936. Bonds of this issue maturing in 2001 and earlier years are payable on their respective stated maturity dates without option of prior payment, but Bonds having stated maturity datts in 2002 and later years are each subject to redemption and prepa 'ment at the option of the City, in whole or in part, and if in par : in such order as the City shall determine and by lot as to Bonds maturing on the same date, on February 1, 2001 and any date thereafter (whether or not an interest payment date) , at a pr .ce equal to the principal amount thereof plus interest accrued t > the date of redemption. Prior to the date specified for the redemption of any Bond prior to its stated maturity"date, the City will cause notice of the call for redemption to be published is required by law, and, at least 20 days prior to the designate ) redemption date, will cause notice of the call to be mailed t > the registered owner of any Bond to be redeemed at the owner' s adlress as it appears on the bond register maintained by the Registra '. Upon partial redemption of any Bond, a new Bond or Bonds will be delivered to the owner without charge, representing the princ .pal amount remaining outstanding. As provided in the Resolution and subject to certaii . limitations set forth therein, this Bond is transferable upon the books of the City at the principal office of the Registrar, b ' the registered owner hereof in person or by the owner 's attorney July authorized in writing upon surrender hereof together with a written instrument of transfer satisfactory to the Registrar, duly executed by the registered owner or the owner' s attorney; and may also be surrendered in exchange for Bonds of other authorized ause denominations . Upon such transfer or exchange the Citywill • a new Bond or Bonds to be issued in the name of the transfereeor ior registered owner, of the same aggregate principal amount, interest at the same rate and maturing on the same date, subject to reimbursement for any totax, suchfee transfergovernmental exchangecharge required to be paid with respect -8- 06/04/93 14:03 FAX 612 223 3002 SPRINGSTED INC. — r 1J009:015 _ The City and the Registrar may deem and treat the Terson in whose name this Bond is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose )f receiving payment and for all other purposes, and neither the City nor the Registrar shall be affected by any notice to the contrary. IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGED that all acts, conditions and things required by the Constitu :ion and laws of the State of Minnesota to be done, to exist, to happen and to be performed preliminary to and in the issuance of this Bond in order to make it a valid and binding general obligatirn of the City in accordance with its terms, have been done, do exi ;t, have happened and have been performed as so required; that, p :ior to the issuance hereof, the City has pledged and appropriated ad valorem tax increments to be derived from its Tax Increment Financing Districts No . I and 4 located in the Project to the pyament of the Bonds and interest thereon when due; that such tax increments will be or are collectible for the years and in am )unts sufficient to produce sums not less than 5% in excess of the principal of and interest on the Bonds when due; that if necessary for payment of such principal and interest, additional ad val• tirem taxes are required to be levied upon all taxable property in he City, without limitation as to rate or amount; and that the issuance of this Bond does not cause the indebtedness of the :ity to exceed any constitutional or statutory limitation of indebtedness . (Form of certificate to be printed on the reverse side o : each Bond, following a full copy of the legal opinion) We certify that the above is a full, true and corre :t copy of the legal opinion rendered by bond counsel on the iss. e of Bonds of the City of Shakopee, Minnesota, which includes the within Bond, dated as of the date of delivery of and payment : or the Bonds . (Facsimile Signature) (Facsimile Signature) City Clerk Mayor -9- 06/04/93 14:04 FAX 612 223 3002 SPRIxGSTED INC. Z010/015 The following abbreviations, when used in the inscription on the face of this Bond, shall beconstrued dwasotaough they were written out in full according to applicable regulations : TEN COM -- as tenants gip, Custodian in common (Gust) (Minos ) TEN ENT -- as tenants by entireties under Uniform Transfers to Minors Act JT TEN -- as joint tenants with right of (State) survivorship and not as tenants in common Additional abbreviations may also be used though nit in the above list . -10- 06/04/93 14:04 FIX 612 223 3002 SPRINGSTED INC. 01011/015 • ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and all rights thereunder, and does hereby irrevocably constitute and appoint attorney to transfer the said Bond on the books kept for registration of the within Bond, with full power of substitut .on in the premises . Dated: Notice: The assignor ' s signatire to this assignment must correspon( with the name as it appears upon the face of the within Bond in every particular, without alteration or enlargement or any change whatever. Signature Guaranteed: • Signatures (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 . The Registrar will not effect transfer of this Bond unless the information concerning the assignee requested Belot is provided. Name and Address : (Include information for all joint owners if this Bond is held by joint account) Please insert social security or other identifying number of assignee -11- 06.04/93 14:05 FAX 612 223 3002 SPRINGSTED INC. fj012%015 Section 3 . - • - • • • : • • . proceeds of the Bonds in the amount of $ are irrevocably appropriated for the payment of interest to become due on the Bonds to and including the dates upon which tax increments become available for this purpose as provided in Section 4 .04 (the Crossover Date) , and for the payment and redemption of the principal amount of the Refunded Bonds on the Crossover Date. The City Clerk is hereby authorized and directed, sumultaneously with the delivery of the Bonds, to deposit the proceeds thereof, to the extent described above, in escrow with ., in , Minnesota (the Escrow Agent) , a balking institution whose deposits are insured by the Federal Deposit Insurance Corporation and whose combined capital and surplus is not less than $500, 000; to invest the funds so deposited in securities authorized for such purpose by Minnesota Statutes Section 475 . 67, subdivision 8, maturing on such dates and be. ring interest at such rates as are required to provide funds sufficient, with cash retained in the escrow account, to mak : the above-described payments; and to call the Series 1989A Bonds for redemption and prepayment on February 1, 1995 . The Mayor ani City Clerk are hereby authorized to enter into an Escrow Agreemen , with the Escrow Agent establishing the terms and conditions for tte escrow account in accordance with Minnesota Statutes, Sectio 475 . 67 . Of the remaining proceeds of the Bonds, $ shall shall be applied to pay issuance expenses and $ be deposited in the Bond Account created pursuant to Section 4 . 01 hereof. Section 4 . lcuri t..y Provisions . 4 .01 . $eies 199 : • - i. • • • ' •. Account. The Bonds shall be payable from a separate Series 1993A Tax Increment Refunding Bond Account (the "Bond Account) whish shall be created and maintained on the books of the City as I separate debt redemption fund until the Bonds, and all interst thereon, are fully paid. There shall be credited to the Boni Account the following: (a) any amount initially required to be depositec therein pursuant to Section 3 hereof; (b) all receipts of principal and interest on the investments held in the escrow acount established in Section 3, other than the sum of $2, 590, 000 received from matuz ing investments to be used on February 1, 1995 (the "Crosscver Date") to redeem and prepay the Refunded Bonds; (c) tax increments pledged to the payment of the Refunded Bonds collected subsequent to the Crossover Dite; -12- 06/04/93 14:05 FAX 612 223 3002 SPRINGSTED INC. 2013/015 (d) all ad valorem taxes levied and collected as specified in Section 5 hereof; and (e) any other funds appropriated by the Council fcr the payment of the Bonds . Section 5 . pledge of Taxing Powers . For the promrt and full payment of the principal of and interest on the Bonds whin due, the full faith and credit and unlimited taxing powers of the City shall be and are hereby irrevocably pledged. However, tle moneys pledged and appropriated for the payment of the Bonds in Section 4 will be available at times and in amounts not less ;han 5% in excess of the principal of and interest on the Bonds when due, and accordingly not tax is levied for this purpose at this time. Section 6 . D feasance . When all of the Bonds have been discharged as provided in this section, all pledges, covenants and other rights granted by this resolution to the holders of the Bonds shall cease. The City may discharge its obligations wi :h respect to any Bonds which are due on any date by depositing gith the Registrar on or before that date a sum sufficient for the payment thereof in full; or, if any Bond should not be paid wren due, it may nevertheless be discharged by depositing with the Registrar a sum sufficient for the payment thereof in full wi :h interest accrued from the due date to the date of such deposit . The City may also discharge its obligations with respect to azy prepayable Bonds called for redemption on any date when they are prepayable according to their terms, by depositing with the Registrar on or before that date an amount equal to the principal, interest and redemption premium, if any, which are then due, provided that notice of such redemption has been duly given as provided herein . The City may also at any time discharge its obligations with respect to any Bonds, subject to the provisi )ns of law now or hereafter authorizing and regulating such acticz, by depositing irrevocably in escrow, with a bank qualified by laa as an escrow agent for this purpose, cash or securities which art authorized by law to be so deposited, bearing interest payable at such time and at such rates and maturing or callable at the holder ' s option on such dates as shall be required to pay all principal, interest and redemption premiums to become due the _eon to maturity or said redemption date. Section 7 . Registration of Bonds . The Clerk is hereby authorized and directed to file a certified copy of this resolution with the County Auditor of Scott County, together lith such additional information as they shall require, and to obtain from said County Auditor a certificate that the Bonds have bean duly entered upon his bond register. -13- 06/04/93 14:06 FAX 612 223 3002 SPRINGSTED INC. Z014/015 Section 8 . Official Statement . The Official Stat4ment dated May , 1993, relating to the Bonds, prepared and distributed by Springsted Incorporated, the financial consultant for the City, is hereby approved, and the officers of the City are authorized in connection with the delivery of the Bonds to sign such certificates as may be necessary with respect to the completeness and accuracy of the Official Statement . Section 9 . Rebate F,xceptiOn. It is hereby determ .ned that the City will qualify for the exception from arbitrage rebate for the Bonds provided by Section 148 (f) (4) (D) of the Code s: nce : (a) each of the refunded Bonds was issued as part of an issue which was treated as meeting the requirements of Section 148 (f) (2) and (3) of the Code by reason of Sect .on 148 (f) (4) (D) of the Code; (b) the aggregate face amount of the Bonds, togetier with the face amount of all other tax-exempt bonds to b. : issued by the City in 1993, does not exceed $5, 000, 000; (c) the average maturity of the Bonds ( years) does not exceed the remaining average maturity of the Refunded Bonds ( years) ; and (d) no Bond has a maturity date which is later thin 30 years after the date the Refunded Bonds were issued. Section 10 . Qualified ax-Exempt Obligations . This Council hereby determines and declares that the City does no . reasonably expect to issue in calendar year 1993 tax-exempt obligations in an aggregate principal amount greater than $10, 000, 000 (exclusive of "private activity bonds") . This C >uncil hereby specifically designates the Bonds as "qualified tax-e :empt obligations" within the meaning of Section 265 of the Code, end covenants that it will not in any event designate in calenda • year 1993 more than $10, 000, 000 of its obligations as such "qualified tax-exempt obligations . " Section 11. Tax Covenant; Arbitrage . (a) The Ci :y covenants and agrees with the holders from time to time of tie Bonds herein authorized, that it will not take, or permit to be taken by any of its officers, employees or agents, any actioi which would cause the interest payable on the Bonds to becom : subject to taxation under the Code and regulations issued thereunder, in effect at the time of such action, and that i : will take, or it will cause its officers, employees or agents to :ake, all affirmative actions within its powers which may be necessary to insure that such interest will not become subject to taxa :ion under the Code and applicable treasury regulations, as preseltly existing or as hereafter amended and made applicable to the Bonds . -14- 06/04/93 14:07 FAX 612 223 3002 SPRINGSTED INC. &15/015 (b) The Mayor and the City Clerk being the officers of the City charged with the responsibility for issuing the Bond.; pursuant to this resolution, are authorized and directed to execute and deliver to the purchaser a certification in order to satisfy the provisions or Section of the Code relating to arbitrage bonds and the regulations promulgated thereunder. Section 12 . Authentication of TranzOript. The officers of the City and said County Auditor are hereby authorized and directed to prepare and furnish to the purchasers of the Bond ;, and to the attorneys rendering an opinion as to the legality thereof, certified copies of all proceedings and records relating to the Bonds and such other affidavits, certificates and information as may be required to show the facts relating to :he legality and marketability of the Bonds, as the same appear from the books and records in their custody and control or as otherwise known to them, and all such certified copies, affidavits and certificates, including any heretofore furnished, shall be de :med representations of the City as to the correctness of all statements contained therein. Attest : Approved: City Clerk Mayor -15- Fri S P R I N G S T E D 120 South Sixth Street Suite 2507 PUBLIC FINANCE ADVISORS V nneaoolis. MN 55402-1800 (612) 333.9177 Fax: (612) 349.5230 Home Office 85 East Seventh Place 16655 West Bluemound Road Suite 100 Suite 290 Saint Paul. MN 55101-2143 Brookfield, WI 53005.5935 (612) 223.3000 Fax: (612) 223.3002 (414) 782-8222 Fax: (414) 782-2904 6800 College Boulevard Suite 600 Overland Park, KS 662111533 (913) 345-8062 Fax: (913) 345-1770 1800K Street NW • Suite 831 Washington. DC 20006-2200 (202) 466-3344 Fax: (202) 223-1362 $2,690,000* CITY OF SHAKOPEE, MINNESOTA GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 1993A AWARD: FIRSTAR BANK MILWAUKEE, N.A. SALE: June 9, 1993 Moody's Rating: A Interest Net Interest True Interest Bidder Rates Price Cost Rate FIRSTAR BANK MILWAUKEE, N.A. 3.35% 1996 $2,667,141.70 $776,809.97 4.5955% 3.65% 1997 4.00% 1998 4.20% 1999 4.40% 2000 4.60% 2001 4.75% 2002 4.90% 2003 PIPER JAFFRAY INC. 3.40% 1996 $2,668,749.00 $777,402.67 4.5958% Dougherty, Dawkins, Strand & 3.70% 1997 Bigelow, Incorporated 4.00% 1998 John G. Kinnard & Company Incorporated 4.10% 1999 4.30% 2000 4.60% 2001 4.80% 2002 5.00% 2003 FBS INVESTMENT SERVICES, INC. 3.40% 1996 $2,667,135.00 $779,923.96 4.6127% Juran & Moody, Incorporated 3.70% 1997 Miller&Schroeder Financial, Inc. 4.00% 1998 Park Investment Corporation 4.15% 1999 4.30% 2000 4.60% 2001 4.80% 2002 5.00% 2003 (Continued) Interest Net Interest True Interest Bidder Rates Price Cost Rate GRIFFIN, KUBIK, STEPHENS & 3.70% 1996 $2,665,790.00 $779,319.17 4.6152% THOMPSON, INC. 3.90% 1997 4.00% 1998 4.20% 1999 4.40% 2000 4.50% 2001 4.70% 2002 4.90% 2003 NORWEST INVESTMENT SERVICES, INC. 3.40% 1996 $2,667,135.00 $781,043.13 4.6194% Cronin&Company, Incorporated 3.70% 1997 4.00% 1998 4.15% 1999 4.35% 2000 4.60% 2001 4.80% 2002 5.00% 2003 CLAYTON BROWN &ASSOCIATES, 3.80% 1996-1997 $2,665,926.75 $783,093.67 4.6369% INCORPORATED 4.00% 1998 4.20% 1999 4.40% 2000 4.60% 2001 4.75% 2002 4.90% 2003 DAIN BOSWORTH INCORPORATED 3.50% 1996 $2,670,820.30 $787,110.74 4.6528% MERRILL LYNCH &CO. 3.90% 1997 Craig-Hallum, Incorporated 4.10% 1998 4.15% 1999 4.40% 2000 4.70% 2001 4.85% 2002 5.00% 2003 REOFFERING SCHEDULE OF THE PURCHASER Rate Year Yield 3.35% 1996 Par 3.65% 1997 Par 4.00% 1998 Par 4.20% 1999 Par 4.40% 2000 Par 4.60% 2001 Par 4.75% 2002 Par 4.90% 2003 5.00% BBI: 5.67 Average Maturity: 6.29 Years * Subsequent to bid opening, the issue size was reduced to $2,675,000. The 2000, 2001 and 2002 maturities were each reduced by$5,000.