HomeMy WebLinkAbout15.F.3. Awarding Sale of 2004C General Imp Bonds and 2004D Capital Imp Plan Bonds-Res. No. 6135-Res. No. 6136
IS; [;3,
CITY OF SHAKO PEE
Memoral1dum
TO: Mayor and Council
Mark McNeill, City Administrator
FROM: Gregg Voxland, Finance Director
SUBJ: Awarding Sale of 2004C Improvement Bonds and 2004D
Capital Improvement Plan Bonds
DATE: October 15, 2004
Introduction
Council action is needed to award the sale of improvement
bonds for 2004C and 2004D Capital Improvement Plan Bonds.
Background
The attached resolution was prepared by bond counsel to
award the sale of improvement bonds series 2004C. This is a
routine event. The bonds being sold will finance the
Weiandt Acres, 2004 Overlay, and Fourth Ave. Recon projects.
The second resolution attached awards the sale of the 2004D
bonds for the Public Works Building.
The resolutions need to be adopted at the October 15th
Council meeting to complete the bond sale. It is expected
that Springsted will bring completed resolutions to the
council meeting.
Springsted will make the presentation to Council of the
results of the sale.
Action
Offer Resolution No. 6135 A Resolution Awarding The Sale Of
$2,570,000 General Obligation Improvement Bonds Series
2004C, Fixing Their Form and Specifications; Directing Their
Execution And Delivery; and Providing For Their Payment, and
move its adoption.
Offer Resolution No. 6136 A Resolution Awarding The Sale Of
$6,000,000 General Obligation Capital Improv~ment plan Bonds
Series 2004D, Fixing Their Form and Specifications;
Directing Their Execution And Delivery; Providing For Their
Payment, and move its adoption.
Extract of Minutes of Meeting
of the City Council of the City of
Shakopee, Scott County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Shakopee, Minnesota, was duly held in the City Hall in said City on Tuesday, October 19,
2004, commencing at 7:00 o'clock P.M.
The following members were present:
and the following were absent:
* * * * * * * * *
The Mayor announced that the next order of business was consideration of the proposals
which had been received for the purchase of the City's $2,570,000 General Obligation
Improvement Bonds, Series 2004C.
The City Administrator presented a tabulation of the proposals that had been received in
the manner specified in the Terms of Proposal for the Bonds. The proposals were as set forth in
Exhibit A attached.
After due consideration of the proposals, Member then
introduced the following resolution, and moved its adoption:
RESOLUTION NO. 6135
A RESOLUTION AWARDING THE SALE OF $2,570,000
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2004C
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
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BE IT RESOL VED By the City Council of the City of Shakopee, Scott County,
Minnesota (City) as follows:
Section 1. Sale of Bonds.
1.01. The proposal of (Purchaser) to
purchase $2,570,000 General Obligation Improvement Bonds, Series 2004C (Bonds) of the City
described in the TernlS of Proposal thereof is hereby found and determined to be a reasonable
offer and is hereby accepted, the proposal being to purchase the Bonds at a price of
$ plus accrued interest to date of delivery, for Bonds bearing interest as follows:
Year of Interest Year of Interest
Maturity Rate Maturity Rate
2006 2011
2007 2012
2008 2013
2009 2014
2010 2015
True interest cost:
1.02. The sum of $ being the amount proposed by the Purchaser in excess
of $2,549,440 will be credited to the Debt Service Fund hereinafter created. The City Finance
Director is directed to retain the good faith check of the Purchaser, pending completion of the
sale of the Bonds, and to return the good faith checks of the unsuccessful proposers forthwith.
The Mayor and City Administrator are directed to execute a contract with the Purchaser on
behalf of the City.
1.03. The City will forthwith issue and sell the Bonds pursuant to Minnesota Statutes,
Chapter 429 (Act) in the total principal amount of $2,570,000, originally dated November 1,
2004, in the denomination of $5,000 each or any integral multiple thereof, numbered No. R-1,
upward, bearing interest as above set forth, and maturing serially on February I in the years and
amounts as follows:
Year Amount Year Amount
2006 $300,000 2011 $250,000
2007 250,000 2012 250,000
2008 250,000 2013 255,000
2009 250,000 2014 255,000
2010 250,000 2015 260,000
1.04. Optional Redemption. The City may elect on February 1, 2013, and on any day
thereafter to prepay Bonds due on or after February 1,2014. Redemption may be in whole or in
part and if in part, at the option of the City and in such manner as the City will determine. If less
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than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in
Section 7 hereof) of the particular amount of such maturity to be prepaid. DTC will determine
by lot the amount of each participant's interest in such maturity to be redeemed and each
participant will then select by lot the beneficial ownership interests in such maturity to be
redeemed. Prepayments will be at a price of par plus accrued interest.
1.05. Term Bonds. To be completed if Term Bonds are requested by the Purchaser.
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The
interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by
check or draft issued by the Registrar described herein.
2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last interest
payment date preceding the date of authentication to which interest on the Bond has been paid
or made available for payment, unless (i) the date of authentication is an interest payment date
to. which interest has been paid or made available for payment, in which case the Bond will be
dated as of the date of authentication, or (ii) the date of authentication is prior to the first interest
payment date, in which case the Bond will be dated as of the date of original issue. The interest
on the Bonds is payable on February 1 and August 1 of each year, commencing August 1,2005
to the registered owners of record thereof as of the close of business on the fifteenth day of the
immediately preceding month, whether or not that day is a business day.
2.03. Registration. The City will appoint a bond ~egistrar, transfer agent, authenticating
agent and paying agent (Registrar). The effect of registration and the rights and duties of the
City and the Registrar with respect thereto are as follows:
(a) . Register. The Registrar must keep at its principal corporate trust office a
bond register in which the Registrar provides for the registration of ownership of Bonds
and the registration of transfers and exchanges of Bonds entitled to be registered,
transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed
by the registered owner thereof or accompanied by a written instmment of transfer, in
form satisfactory to the Registrar, duly executed by the registered owner thereof or by an
attorney duly authorized by the registered owner in writing, the Registrar will
authenticate and deliver, in the name of the designated transferee or transferees, one or
more new Bonds of a like 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 the month preceding each interest payment date and until that
interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered owner
for exchange the Registrar will authenticate and deliver one or more new Bonds of a like
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aggregate principal amount and maturity as requested by the registered owner or the
owner's attorney in writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be
promptly cancelled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is
satisfied that the endorsement on the Bond or separate instrument of transfer is valid and
genuine and that the requested transfer is legally authorized. The Registrar will incur no
liability for the refusal, in good faith, to make transfers which it, in its judgment, deems
improper or unauthorized.
(f) Persons Deemed Owners. The City and the Registrar may treat the person
in whose name a Bond is registered in the bond register as the absolute owner of the
Bond, whether the Bond is overdue or not, for the purpose of receiving payment of, or on
account of, the principal of and interest on the Bond and for all other purposes and
payments so made to registered owner or upon the owner's order will be valid and
effectual to satisfy and discharge the liability upon the Bond to the extent of the sum or
sums so paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge upon the
owner thereof for a transfer or exchange of Bonds, sufficient to reimburse the Registrar
for any tax, fee or other governmental charge required to be paid with respect to the
transfer or exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated
or is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount,
number, maturity date and tenor in exchange and substitution for and upon cancellation
of the mutilated Bond or in lieu of and in substitution for a Bond destroyed, stolen or lost,
upon the payment of the reasonable expenses and charges of the Registrar in connection
therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the
Registrar of evidence satisfactory to. it that the Bond was destroyed, stolen or lost, and of
the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or
indemnity in form, substance and amount satisfactory to it and as provided by law, in
which both the City and the Registrar must be named as obligees. Bonds so surrendered
to the Registrar will be cancelled by the Registrar and evidence of such cancellation must
be given to the City. If the mutilated, destroyed, stolen or.lost Bond has already matured
or been called for redemption in accordance with its terms it is not necessary to issue a
new Bond prior to payment.
(i) Redemption. In the event any of the Bonds are called for redemption,
notice thereof identifying the Bonds to be redeemed will be given by the Registrar by
mailing a copy of the redemption notice by first class mail (postage prepaid) to the
registered owner of each Bond to be redeemed at the address shown on the registration
books kept by the Registrar and by publishing the notice if required by law. Failure to
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give notice by publication or by mail to any registered owner, or any defect therein, will
not affect the validity of the proceedings for the redemption of Bonds. Bonds so called
for redemption will cease to bear interest after the specified redemption date, provided
that the funds for the redemption are on deposit with the place of payment at that time.
2.04. Appointment of Initial Registrar. The City appoints u.s. Bank National
Association, St. Paul, Minnesota, as the initial Registrar. The Mayor and the City Administrator
are authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon
merger or consolidation of the Registrar with another corporation, if the resulting corporation is a
bank or trust company authorized by law to conduct such business, the resulting corporation is
authorized to act as successor Registrar. The City agrees to pay the reasonable and customary
charges of the Registrar for the services performed. The City reserves the right to remove the
Registrar upon 30 days' notice and upon the appointment of a successor Registrar, in which event
the predecessor Registrar must deliver all cash and Bonds in its possession to the successor
Registrar and must deliver the bond register to the successor Registrar. On or before each
principal or interest due date, without further order of this Council, the City Finance Director
must transmit to the Registrar monies sufficient for the payment of all principal and interest then
due.
2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the
direction of the City Administrator and executed on behalf of the City by the signatures of ~he
Mayor and the City Administrator, provided that those signatures may be printed, engraved or
lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose
signature appears on the Bonds ceases to be such officer before the delivery of a Bond, that
signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the
officer had remained in office until delivery. Notwithstanding such execution, a Bond will not
be valid or obligatory for any purpose or entitled to any security or benefit under this Resolution
unless and until a certificate of authentication on the Bond has been duly executed by the manual
signature of an authorized representative of the Registrar. Certificates of authentication on
different Bonds need not be signed by the same representative. The executed certificate of
authentication on a Bond is conclusive evidence that it has been authenticated and delivered
under this Resolution. When the Bonds have been so prepared, executed and authenticated, the
City Administrator will deliver the same to the Purchaser upon payment of the purchase price in
accordance with the contract of sale heretofore made and executed, and the Purchaser is not
obligated to see to the application of the purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive
Bonds one or more typewritten temporary Bonds in substantially the form set forth in Section 3
with such changes as may be necessary to reflect more than one maturity in a single temporary
bond. Upon the execution and delivery of definitive Bonds the temporary Bonds will be
exchanged therefor and cancelled.
Section 3. Form of Bond.
3.01. The Bonds will be printed or typewritten in substantially the following fonn:
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No.R- $
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF SCOTT
CITY OF SHAKOPEE
GENERAL OBLIGATION IMPROVEMENT BOND, SERIES 2004C
Date of
Rate Maturity Original Issue CUSIP
November 1,2004
Registered Owner: Cede & Co.
The City of Shakopee, Minnesota, a duly organized and existing municipal corporation in
Scott County, Minnesota (City), acknowledges itself to be indebted and for value received
hereby promises to pay to the Registered Owner specified above or registered assigns, the
principal sum of $ on the maturity date specified above, with interest thereon from
the date hereof at the mIDual rate specified above, payable February 1 and August 1 in each year,
commencing August 1,2005, to the person in whose name this Bond is registered at the close of
business on the fifteenth day (whether or not a business day) of the immediately preceding
month. The interest hereon and, upon presentation and surrender hereof, the principal hereof are
payable in lawful money of the United States of America by check or draft by U.S. Bank
National Association, St. Paul, Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and
Authenticating Agent, or its designated successor under the Resolution described herein. For the
prompt 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 pledged.
The City may elect on February 1,2013, and on any day thereafter to prepay Bonds due
on or after February 1,2014. Redemption may be in whole or in part and ifin part, at the option
of the City and in such manner as the City will determine. If less than all Bonds of a maturity are
called for redemption, the City will notify Depository Trust Company (DTC) of the particular
amount of such maturity to be prepaid. DTC will determine by lot the amount of each
purtioipemt'tl interei5t in i5uch maturity to be redeemed and each participant vvill then select by lot
the beneficial ownership interests in such maturity to be redeemed. Prepayments will be at a
price of par plus accrued interest.
This Bond is one of an issue in the aggregate principal amount of $2,570,000 all of like
original issue date and tenor, except as to number, maturity date, redemption privilege, and
interest rate, all issued pursuant to a resolution adopted by the City Council on October 19, 2004
(the Resolution), for the purpose of providing money to defray the expenses incurred and to be
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incurred in making local improvements, pursuant to and in full conformity with the Constitution
and laws of the State of Minnesota, including Minnesota Statutes, Chapter 429, and the principal
hereof and interest hereon are payable from special assessments against property specially
benefited by local improvements and from ad valorem taxes for the City's share of the cost of the
improvements, as set forth in the Resolution to which reference is made for a full statement of
rights and powers thereby conferred. The full faith and credit of the City are irrevocably pledged
for payment of this Bond and the City Council has obligated itself to levy additional ad valorem
taxes on all taxable property in the City in the event of any deficiency in special assessments and
taxes pledged, which additional taxes may be levied without limitation as to rate or amount. The
Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any
integral multiple thereof of single maturities.
As provided in the Resolution and subject to certain limitations set forth therein, this
Bond is transferable upon the books of the City at the principal office of the Bond Registrar, by
the registered owner hereof in person or by the owner's attorney duly authorized in writing, upon
surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar,
duly executed by the registered owner or the owner's attorney; and may also be surrendered in
exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City
will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of
the same aggregate principal amount, bearing interest at the same rate and maturing on the same
date, subject to reimbursement for any tax, fee or governmental charge required to be paid with
respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose name this Bond
is registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose
of receiving payment and for all other purposes, and neither the City nor the Bond Registrar will
be affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the Constitution 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 obligation of the City in accordance with its terms,
have been done, do exist, have happened and have been performed as so required, and that the
issuance of this Bond does not cause the indebtedness of the City to exceed any constitutional or
statutory limitation of indebtedness.
This Bond is not valid or obligatory for any purpose or entitled to any security or benefit
under the Resolution until the Certificate of Authentication hereon has been executed by the
Bond Registrar by manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Shakopee, Scott County, Minnesota, by its City
Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures
of the Mayor and City Administrator and has caused this Bond to be dated as of the date set forth
below.
Dated:
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CITY OF SHAKOPEE, MINNESOTA
(Facsimile) (Facsimile)
City Administrator Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S. BANK NATIONAL ASSOCIATION
By
Authorized Representative
The following abbreviations, when used in the inscription on the face of this Bond, will
be constructed as though they were written out in full according to applicable laws or
regulations:
TEN COM -- as tenants UNIF GIFT MIN ACT Custodian
in common (Cust) (Minor)
TEN ENT -- as tenants under Uniform Gifts or
by entireties Transfers to Minors
JT TEN -- as joint tenants with
right of survivorship and Act. . . . . . . . . . . .
not as tenants in common (State)
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers unto
the within Bond and all rights thereunder, and
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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
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:
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the
Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion
Program ("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP")
or other such "signature guarantee program" as may be determined by the Registrar in addition
to, or in substitution for, STAMP, SEMP or MSP, all in accordance with the Securities Exchange
Act of 1934, as amended.
The Bond Registrar will not effect transfer of this Bond unless the information
concerning the assignee requested below 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
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on
the books of the Registrar in the name of the person last noted below.
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Signature of
Date of Registration Registered Owner Officer of Registrar
Cede & Co.
Federal ID #13-2555119
3.02. The City Administrator is directed to obtain a copy of the proposed approving
legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota, which is to be
complete except as to dating thereof and to cause the opinion to be printed on or accompany each
Bond.
Section 4. Payment; Security; Pledges and Covenants.
4.01. (a) The Bonds are payable from the Improvement Bonds, Series 2004C Debt
Service Fund (Debt Service Fund) hereby created, and the proceeds of general taxes hereinafter
levied (Taxes), and special assessments (Assessments) levied or to be levied for the
improvements described in the resolution authorizing the sale of the Bonds (Improvements)
financed by the Bonds are hereby pledged to the Debt Service Fund. If a payment of principal or
interest on the Bonds becomes due when thereis not sufficient money in the Debt Service Fund
to pay the same, the City Finance Director is directed to pay such principal or interest from the
general fund of the City, and the general fund will be reimbursed for the advances out of the
proceeds of Assessments and Taxes when collected. There is appropriated to the Debt Service
Fund (i) capitalized interest financed from Bond proceeds, if any, (ii) any amount over the
minimum purchase price paid by the Purchaser, and (iii) the accrued interest paid by the
Purchaser upon closing and delivery of the Bonds.
(b) The proceeds of the Bonds, less the appropriations made in paragraph (a),
together with any other funds appropriated for the Improvements and Assessments and Taxes
collected during the construction of the Improvements will be deposited in a separate
construction fund (which may contain separate accounts for each Improvement) to be used solely
to defray expenses of the Improvements and the payment of principal and interest on the Bonds
prior to the completion and payment of all costs of the Improvement. Any balance remaining in
the construction fund after completion of the Improvements may be used to pay the cost in whole
or in part of any other improvement instituted under the Act. When the Improvements are
completed and the cost thereof paid, the construction account is to be closed and subsequent
collections of Assessments and Taxes for the Improvements are to be deposited in the Debt
Service Fund.
4.02. It is hereby determined that the Improvements will directly and indirectly benefit
abutting property, and the City hereby covenants with the holders from time to time of the Bonds
as follows:
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(a) The City has caused or will cause the Assessments for the Improvements
to be promptly levied so that the fIrst installment will be collectible not later than 2005
and will take all steps necessary to assure prompt collection, and the levy of the
Assessments is hereby authorized. The City Council will cause to be taken with due
diligence all further actions that are required for the construction of each Improvement
financed wholly or partly from the proceeds of the Bonds, and will take all further actions
necessary for the final and valid levy of the Assessments and the appropriation. of any
other funds needed to pay the Bonds and interest thereon when due.
(b) In the event of any current or anticipated deficiency in Assessments and
Taxes, the City Council will levy additional ad valorem taxes in the amount of the current
or anticipated defIciency.
(c) The City will keep complete and accurate books and records showing:
receipts and disbursements in connection with the Improvements, Assessments and Taxes
levied therefor and other funds appropriated for their payment, collections thereof and
disbursements therefrom, monies on hand and, the balance of unpaid Assessments.
(d) The City will cause its books and records to be audited at least annually
and will furnish copies of such audit reports to any interested person upon request.
4.03. It is determined that at least 20% of the cost of the Improvements will be specially
assessed against benefited properties. For the purpose of paying the principal of and interest on
the Bonds, there is levied a direct annual irrepealable ad valorem tax (Taxes) upon all of the
taxable property in the City, which will be spread upon the tax rolls and collected with and as
part of other general taxes of the City. The taxes will be credited to the Debt Service Fund above
provided and will be in the years and amounts as follows (year stated being year of levy for
collection the following year):
Year Levy
(See Attachment A)
4.04. It is hereby determined that the estimated collections of Assessments and the
foregoing Taxes 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 levy herein provided is
irrepealable until all of the Bonds are paid, provided that at the time the City makes its annual tax
levies the City Administrator may certify to the County Auditor of Scott County the amount
available in the Debt Service Fund to pay principal and interest due during the ensuing year, and
the County Auditor will thereupon reduce the levy collectible during such year by the amount so
certifIed.
4.05. The City Administrator is authorized and directed to file a certified copy of this
resolution with the County Auditor of Scott County and to obtain the certificate required by
Minnesota Statutes, Section 475,63.
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Section 5. Authentication of Transcript.
5.01. The officers of the City are authorized and directed to prepare and furnish to the
Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records
of the City relating to the Bonds and to the financial condition and affairs of the City, and such
other certificates, affidavits and transcripts as may be required to show the facts within their
knowledge or as shown by the books and records in their custody and under their control,
relating to the validity and marketability of the Bonds, and such instruments, including any
heretofore furnished, may be deemed representations of the City as to the facts stated therein.
5.02. . The Mayor, City Administrator and Finance Director are authorized and directed
to certify that they have examined the Official Statement prepared and circulated in connection
with the issuance and sale of the Bonds and that to the best of their knowledge and belief the
Official Statement is a complete and accurate representation of the facts and representations
made therein as of the date of the Official Statement.
Section 6. Tax Covenant.
6.01. The City covenants and agrees with the holders from time to time of the Bonds
that it will not take or permit to be taken by any of its officers, employees or agents any action
which would cause the interest on the Bonds to become subject to taxation under the Internal
Revenue Code of 1986, as amended (the Code), and the Treasury Regulations promulgated
thereunder, in effect at the time of such actions, and that it will take or cause its officers,
employees or agents to take, all affirmative action within its power that may be necessary to
ensure that such interest will not become subject to taxation under the Code and applicable
Treasury Regulations, as presently existing or as hereafter amended and made applicable to the
Bonds.
6.02. The City will comply with requirements necessary under the Code to establish
and maintain the exclusion from gross income of the interest on the Bonds under Section 103 of
the Code, including without limitation requirements relating to temporary periods for
investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and
the rebate of excess investment earnings to the United States.
6.03. The City further covenants not to use the proceeds of the Bonds or to cause or
permit them or any of them to be used, 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.
6.04. The City will use its best efforts to comply with any federal procedural
requirements which may apply in order to effectuate the designations made by this section.
Section 7. Book-Entry System; Limited Obligation of City.
7.01. The Bonds will be initially issued in tpe form of a separate single typewritten or
printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon
initial issuance, the ownership of each Bond will be registered in the registration books kept by
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the Bond Registrar in the name of Cede & Co., as nominee for The Depository Trust Company,
New York, New York, and its successors and assigns (DTC). Except as provided in this section,
all of the outstanding Bonds will be registered in the registration books kept by the Bond
Registrar in the name of Cede & Co., as nominee of DTC.
7.02. With respect. to Bonds registered in the registration books kept by the Bond
Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the
Paying Agent will have no responsibility or obligation to any broker dealers, banks and other
financial institutions from time to time for which DTC holds Bonds as securities depository
(Participants) or to any other person on behalf of which a Participant holds an interest in the
Bonds, including but not limited to any responsibility or obligation with respect to (i) the
accuracy of the records of DTC, Cede & Co. or any Participant with respect to any ownership
interest in the Bonds, (ii) the delivery to any Participant or any other person (other than a
registered owner of Bonds, as shown by the registration books kept by the Bond Registrar,) of
any notice with respect to the Bonds, including any notice of redemption, or (iii) the payment to
any Participant or any other person, other than a registered owner of Bonds, of any amount with
respect to principal of, premium, if any, or interest on the Bonds. The City, the Bond Registrar
and the Paying Agent may treat and consider the person in whose name each Bond is registered
in the registration books kept by the Bond Registrar as the holder and absolute owner of such
Bond for the purpose of payment of principal, premium and interest with respect to such Bond,
for the purpose of registering transfers with respect to such Bonds, and for all other purposes.
The Paying Agent will pay all principal of, premium, if any, and interest on the Bonds only to or
on the order of the respective registered owners, as shown in the registration books kept by the
Bond Registrar, and all such payments will be valid and effectual to fully satisfy and discharge
the City's obligations with respect to payment of principal of, premium, if any, or interest on the
Bonds to the extent of the sum or sums so paid. No person other than a registered owner of
Bonds, as shown in the registration books kept by the Bond Registrar, will receive a certificated
Bond evidencing the obligation of this resolution. Upon delivery by DTC to the City
Administrator of a written notice to the effect that DTC has determined to substitute a new
nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new nominee of
DTC; and upon receipt of such a notice, the City Administrator will promptly deliver a copy of
the same to the Bond Registrar and Paying Agent.
7.03. Representation Letter. The City has heretofore executed and delivered to DTC a
Blanket Issuer Letter of Representations (Representation Letter) which shall govern payment of
principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds.
Any Paying Agent or Bond Registrar subsequently appointed by the City with respect to the
Bonds will agree to take all action necessary for all representations of the City in the
Representation letter with respect to the Bond Registrar and Paying Agent, respectively, to be
complied with at all times.
7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the
City Council, determines that it is in the best interests of the persons having beneficial interests
in the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon
DTC will notify the Participants, of the availability through DTC of Bond certificates. In such
event the City will issue, transfer and exchange Bond certificates as requested by DTC and any
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other registered owners in accordance with the provisions of this Resolution. DTC may
determine to discontinue providing its services with respect to the Bonds at any time by giving
notice to the City and discharging its responsibilities with respect thereto under applicable law.
In such event, if no successor securities depository is appointed, the City will issue and the Bond
Registrar will authenticate Bond certificates in accordance with this resolution and the provisions
hereof will apply to the transfer, exchange and method of payment thereof.
7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution
to the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC,
payments with respect to principal of, premium, if any, and interest on the Bond and notices with
respect to the Bond will be made and given, respectively in the manner provided in DTC's
Operational Arrangements, as set forth in the Representation Letter.
Section 8. Continuing Disclosure.
8.01. The City hereby covenants and agrees that it will comply with and carry out all of
the provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of
this Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to
be considered an event of default with respect to the Bonds; however, any Bondholder may take
such actions as may be necessary and appropriate, including seeking mandate or specific
. performance by court order, to cause the City to comply with its obligations under this section.
8.02. "Continuing Disclosure Certificate" means that certain Continuing Disclosure
Certificate executed by the Mayor and City Administrator and dated the date of issuance and
delivery of the Bonds, as originally executed and as it may be amended from time to time. in
accordance with the terms thereof.
The motion for the adoption of the foregoing resolution was duly seconded by Member
, and upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
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STATE OF MINNESOTA )
)
COUNTY OF SCOTT ) SS.
)
CITY OF SHAKOPEE )
I, the undersigned, being the duly qualified and acting City Clerk of the City of
Shakopee, Scott County, Minnesota, do hereby certify that I have carefully compared the
attached and foregoing extract of minutes of a regular meeting of the City Council of the City
held on October 19,2004 with the original minutes on file in my office and the extract is a full,
true and correct copy of the minutes insofar as they relate to the issuance and sale of $2,570,000
General Obligation Improvement Bonds, Series 2004C of the City.
WITNESS My hand officially as such City Clerk and the corporate seal of the City this
day of , 2004.
City Clerk
Shakopee, MiImesota
(SEAL)
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STATE OF MINNESOTA COUNTY AUDITOR'S
CERTIFICATE AS TO
COUNTY OF SCOTT TAX LEVY AND
REGISTRA nON
I, the undersigned County Auditor of Scott County, Minnesota, hereby certify that a
certified copy of a resolution adopted by the governing body of the City of Shakopee, Minnesota,
on October 19, 2004, levying taxes for the payment of $2,570,000 General Obligation
Improvement Bonds, Series 2004C, of said municipality dated November 1,2004, has been filed
in my office and said bonds have been entered on the register of obligations in my office and that
such tax has been levied as required by law.
WITNESS My hand and official seal this _ day of ,2004.
County Auditor
Scott County, Minnesota
(SEAL)
By
Deputy
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Extract of Minutes of Meeting
of the City Council of the City of
Shakopee, Scott County, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the City Council of the City
of Shakopee, Milmesota, was duly held in the City Hall in said City on Tuesday, October 19,
2004, commencing at 7:00 o'clock P.M.
The following members were present:
and the following were absent:
* * * *** * * *
The Mayor announced that the next order of business was consideration of the proposals
which had been received for the purchase of the City's $6,000,000 General Obligation Capital
Improvement Plan Bonds, Series 2004D.
The City Administrator presented a tabulation of the proposals that had been received in
the manner specified in the Terms of Proposal for the Bonds. The proposals were as set forth in
Exhibit A attached.
The City Administrator presented the offer of to purchase
the Bond that had been submitted to the City pursuant to Council direction.
After due consideration of the proposal, Member then
introduced the following resolution, and moved its adoption:
RESOLUTION NO. 6136
A RESOLUTION AWARDING THE SALE OF $6,000,000
GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BOND, SERIES 2004D
FIXING ITS FORM AND SPECIFICATIONS;
DIRECTING ITS EXECUTION AND DELIVERY;
AND PROVIDING FOR ITS PAYMENT
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BE IT RESOLVED By the City Council of the City of Shakopee, Scott County,
Minnesota (City) as follows:
Section 1. Sale of Bond.
1.01. The Proposal of (purchaser) to
purchase $6,000,000 General Obligation Capital Improvement Plan Bond, Series 2004D (Bonds)
of the City described in the Terms of Proposal thereof is hereby found and determined to be a
reasonable offer and is hereby accepted, the proposal being to purchase the Bonds at a price of
$ plus accrued interest to date of delivery, for Bonds bearing interest as
follows:
Year of Interest Year of Interest
Maturity Rate Maturity Rate
2006 2016
2007 2017
2008 2018
2009 2019
2010 2020
2011 2021
2012 2022
2013 2023
2014 2024
2015 2025
1.02. The City will forthwith issue and sell the Bond pursuant to the (Act) to the
Purchaser in the total principal anlount of $6,000,000. The Bond will be originally dated as of
November 1,2004 in the denomination of the original par amount, bearing interest as above set
forth and will mature on February I, in the years and amounts as follows:
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Year Amount Year Amount
2006 $160,000 2016 $295,000
2007 225,000 2017 305,000
2008 230,000 2018 320,000
2009 235,000 2019 335,000
2010 240,000 2020 345,000
2011 250,000 2021 360,000
2012 255,000 2022 380,000
2013 265,000 2023 395,000
2014 275,000 2024 415,000
2015 285,000 2025 430,000
1.03. Optional Redemption. The City may elect on February 1, 2015, and onany day
thereafter to prepay Bonds due on or after February 1,2016. Redemption may be in whole or in
part and if in part, at the option of the City and in such manner as the City will detemline. If less
than all Bonds of a maturity are called for redemption, the City will notify DTC (as defined in
Section 7 hereof) of the particular amount of such maturity to be prepaid. nTC will determine
by lot the amount of each participant's interest in such maturity to be redeemed and each
participant will then select by lot the beneficial ownership interests in such maturity to be
redeemed. Prepayments will be at a price of par plus accrued interest.
1.04. Tenn Bonds. To be completed if Term Bonds are requested by the Purchaser.
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds will be issued only in fully registered form. The
interest thereon and, upon surrender of each Bond, the principal amount thereof, is payable by check
or draft issued by the Registrar described herein.
2.02. Dates; Interest Payment Dates. Each Bond will be dated as of the last. interest
payment date preceding the date of authentication to which interest on the Bond has been paid or
made available for payment, unless (i) the date of authentication is an interest payment date to
which interest has been paid or made available for payment, in which case the Bond will be dated as
of the date of authentication, or (ii) the date of authentication is prior to the first interest payment
date, in which case the Bond will be dated as of the date of original issue. The interest on the Bonds
is payable on February 1 and August 1 of each year, commencing August 1,2005, to the registered
owners of record thereof as 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 will appoint a bond registrar, transfer agent, authenticating
agent and paying agent (Registrar). The effect of registration and the rights and duties of the City
and the Registrar with respect thereto are as follows:
(a) Register. The Registrar must keep at its principal corporate trust office a
bond register in which the Registrar provides for the registration of ownership of Bonds and
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the registration of transfers and exchanges of Bonds entitled to be registered, transferred or
exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of a Bond duly endorsed by
the registered owner thereof or accompanied by a written instrument of transfer, in form
satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney
duly authorized by the registered owner in writing, the Registrar will authenticate and
deliver, in the name of the designated transferee or transferees, one or more new Bonds of a
like 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 the
month preceding each interest payment date and until that interest payment date.
(c) Exchange of Bonds. When Bonds are surrendered by the registered owner
for exchange the Registrar will 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
attorney in writing.
(d) Cancellation. Bonds surrendered upon transfer or exchange will be promptly
cancelled by the Registrar and thereafter disposed of as directed by the City.
(e) Improper or Unauthorized Transfer. When a Bond is presented to the
Registrar for transfer, the Registrar may refuse to transfer the Bond until the Registrar is
satisfied that the endorsement on the Bond or separate instrument of transfer is valid and
genuine and that the requested transfer is legally authorized. The Registrar will incur no
liability for the refusal, in good faith, to make transfers which it, in its judgment, deems
improper or unauthorized.
(t) Persons Deemed Owners. The City and the Registrar may treat the person in
whose name a Bond is registered in the bond register as the absolute owner of the Bond,
whether the Bond is overdue or not, for the purpose of receiving payment of, or on account
of, the principal of and interest on the Bond and for all other purposes, and payments so
made to a registered owner or upon the owner's order will be valid and effectual to satisfy
and discharge the liability upon the Bond to the extent of the sum or sums so paid.
(g) Taxes, Fees and Charges. The Registrar may impose a charge upon the
owner thereof for a transfer or exchange of Bonds sufficient to reimburse the Registrar for
any tax, fee or other governmental charge required to be paid with respect to the transfer or
exchange.
(h) Mutilated, Lost, Stolen or Destroyed Bonds. If a Bond becomes mutilated or
is destroyed, stolen or lost, the Registrar will deliver a new Bond of like amount, number,
maturity date and tenor in exchange and substitution for and upon cancellation of the
mutilated Bond or in lieu of and in substitution for any Bond destroyed, stolen or lost, upon
the payment of the reasonable expenses and charges of the Registrar in connection
therewith; and, in the case of a Bond destroyed, stolen or lost, upon filing with the Registrar
of evidence satisfactory to it that. the Bond was destroyed, stolen or lost, and of the
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ownership thereof, and upon furnishing to the Registrar an appropriate bond or indemnity in
form, substance and amount satisfactory to it and as provided by law, in which both the City
and the Registrar must be named as obligees. Bonds so surrendered to the Registrar will be
cancelled by the Registrar and evidence of such cancellation must be given to the City. If
the mutilated, destroyed, stolen or lost Bond has already matured or been called for
redemption in accordance with its terms it is not necessary to issue a new Bond prior to
payment.
(i) Redemption. In the event any of the Bonds are called for redemption, notice
thereof identifying the Bonds to be redeemed will be given by the Registrar by mailing a
copy of the redemption notice by first class mail (postage prepaid) to the registered owner of
each Bond to be redeemed at the address shown on the registration books kept. by the
Registrar and by publishing the notice if required by law. Failure to give notice by
publication or by mail to any registered owner, or any defect therein, will not affect the
validity of the proceedings for the redemption of Bonds. Bonds so called for redemption
will cease to bear interest after the specified redemption date, provided that the funds for the
redemption are on deposit with the place of payment at that time.
2.04. Appointment of Initial Registrar. The City appoints u.s. Bank National
Association, St. Paul, Minnesota, as the initial Registrar. The Mayor and the City Administrator are
authorized to execute and deliver, on behalf of the City, a contract with the Registrar. Upon merger
or consolidation of the Registrar with another corporation, if the resulting corporation is a bank or
trust company authorized by law to conduct such business, the resulting corporation is authorized to
act as successor Registrar. The City agrees to pay the reasonable and customary charges of the
Registrar for the services performed. The City reserves the right to remove the Registrar upon 30
days' notice and upon the appointment of a successor Registrar, in which event the predecessor
Registrar must deliver all cash and Bonds in its possession to the successor Registrar and must
deliver the bond register to the successor Registrar. On or before each principal or interest due date,
without further order of this Council, the City Finance Director must transmit to the Registrar
moneys sufficient for the payment of all principal and interest then due.
2.05. Execution, Authentication and Delivery. The Bonds will be prepared under the
direction of the City Administrator and executed on behalf of the City by the signatures of the
Mayor and the City Administrator, provided that those signatures may be printed, engraved or
lithographed facsimiles of the originals. If an officer whose signature or a facsimile of whose
signature appears on the Bonds ceases to be such officer before the delivery of a Bond, that
signature or facsimile will nevertheless be valid and sufficient for all purposes, the same as if the
officer had remained in office until delivery. Notwithstanding such execution, a Bond will not be
valid or obligatory for any purpose or entitled to any security or benefit under tIllS Resolution unless
and until a certificate of authentication on the Bond has been duly executed by the manual signature
of an authorized representative of the Registrar. Certificates of authentication on different Bonds
need not be signed by the same representative. The executed certificate of authentication on a Bond
is conclusive evidence that it has been authenticated and delivered under this Resolution. When the
Bonds have been so prepared, executed and authenticated, the City Administrator will deliver the
same to the Purchaser upon payment of the purchase price in accordance with the contract of sale
SJB-2543 I 2v I
SHI55-I39
heretofore made and executed, and the Purchaser is not obligated to see to the application of the
purchase price.
2.06. Temporary Bonds. The City may elect to deliver in lieu of printed definitive Bonds
one or more typewritten temporary Bonds in substantially the form set forth in Section 3 with such
changes as may be necessary to reflect more than one maturity in a single temporary bond. Upon
the execution and delivery of definitive Bonds the temporary Bonds will be exchanged therefor and
cancelled.
Section 3. Form of Bond.
3.01. The Bonds will be printed or typewritten in substantially the following fonn:
No. R-_ $
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF SCOTT
CITY OF SHAKOPEE
GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BOND, SERIES 2004D
Date of
Rate Maturity Original Issue CUSIP
November 1,2004
Registered Owner: Cede & Co.
The City of Shakopee, Minnesota, a duly organized and existing municipal corporation in
Scott County, Minnesota (City), acknowledges itself to be indebted and for value received hereby
promises to pay to the Registered Owner specified above or registered assigns, the principal sum of
$ on the maturity date specified above, with interest thereon from the date hereof at the
annual rate specified above, payable February 1 and August I in each year, commencing August 1,
2005, to the person in whose name this Bond is registered at the close of business on the fifteenth
dllY (whether or not a business day) of the immediately preceding month. The interest hereon and,
upon presentation and surrender hereof, the principal hereof are payable in lawful money of the
United States of America by check or draft by U.S. Bank National Association, St. Paul, Minnesota,
as Bond Registrar, Paying Agent, Transfer Agent. and Authenticating Agent, or its designated
successor under the Resolution described herein. For the prompt 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 pledged.
SJB-254312vl
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The City may elect on February 1,2015, and on any day thereafter to prepay Bonds due on
or after February 1, 2016. Redemption may be in whole or in part and if in part, at the option of the
City and in such manner as the City will determine. If less than all Bonds of a maturity are called
for redemption, the. City will notify The Depository Trust Company (DTC) of the particular amount
of such maturity to be prepaid. DTC will determine by lot the amount of each participant's interest
in such maturity to be redeemed and each participant will then select by lot the beneficial ownership
interests in such maturity to be redeemed. Prepayments will be at a price of par plus accrued
interest.
This Bond is one of an issue in the aggregate principal amount of $6,000,000 all of like
original issue date and tenor, except as to number, maturity date, redemption privilege, and interest
rate, all issued pursuant to a resolution adopted by the City Council on October 19, 2004 (the
Resolution), for the purpose of providing money to aid in financing the cost of construction of a
public works facility, pursuant to and in full conformity with the Constitution and laws of the State
of Minnesota, including Minnesota Statutes, Chapter 475, and the principal hereof and interest
hereon are payable primarily from ad valorem taxes, as set forth in the Resolution to which
reference is made for a full statement of rights and powers thereby conferred. The full faith and
credit of the City are irrevocably pledged for payment of this Bond and the City Council has
obligated itself to levy: additional ad valorem taxes on all taxable property in the City in the event of
any deficiency, which. additional taxes may be levied without limitation as to rate or amount. The
Bonds of this series are issued only as fully registered Bonds in denominations of $5,000 or any
integral multiple thereof of single maturities.
As provided in the Resolution and subject to certain limitations set forth therein, this Bond is
transferable upon the books of the City at the principal office of the Bond Registrar, by the
registered owner hereof in person or by the owner's attorney du1y authorized in writing, upon
surrender hereof together with a written instrument of transfer satisfactory to the Bond Registrar,
duly executed by the t:egistered owner or the owner's attorney; and may also be surrendered in
exchange for Bonds of other authorized denominations. Upon such transfer or exchange the City
will cause a new Bond or Bonds to be issued in the name of the transferee or registered owner, of
the same aggregate principal amount, bearing interest at the same rate and maturing on the same
date, subject to reimbursement for any tax, fee or governmental charge required to be paid with
respect to such transfer or exchange.
The City and the Bond Registrar may deem and treat the person in whose name this Bond is
registered as the absolute owner hereof, whether this Bond is overdue or not, for the purpose of
receiving payment and for all other purposes, and neither the City nor the Bond Registrar will be
affected by any notice to the contrary.
IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED that all acts,
conditions and things required by the Constitution 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 obligation of the City in accordance with its terms, have been
done, do exist, have happened and have been performed as so required, and that the issuance of this
Bond does not cause the indebtedness of the City to exceed any constitutional or statutory limitation
of indebtedness.
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This Bond is not valid or obligatory for any purpose or entitled to any security or benefit
under the Resolution until the Certificate of Authentication hereon has been executed by the Bond
Registrar by manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Shakopee, Scott County, Minnesota, by its City
Council, has caused this Bond to be executed on its behalf by the facsimile or manual signatures of
the Mayor and City Administrator and has caused this Bond to be dated as of the date set forth
below.
Dated:
CITY OF SHAKOPEE, MINNESOTA
(facsimile ) (facsimile)
City Administrator Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned within.
U.S. BANK NATIONAL ASSOCIATION
By
Authorized Representative
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The following abbreviations, when used in the inscription on the face of this Bond, will be
construed as though they were written out in full according to applicable laws or regulations:
TEN COM -- as tenants UNIF GIFT MIN ACT Custodian
In common (Cust) (Minor)
TEN ENT -- as tenants under Uniform Gifts or
by entireties Transfers to Minors
JT TEN -- as joint tenants with
right of survivorship and Act. . . . . . . . . . . .
not as tenants in common (State)
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assIgns and transfers tmto
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 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:
NOTICE: Signature(s) must be guaranteed by a financial institution that is a member of the
Securities Transfer Agent Medallion Program ("STAMP"), the Stock Exchange Medallion Program
("SEMP"), the New York Stock Exchange, Inc. Medallion Signatures Program ("MSP") or other
such "signature guarantee program" as may be determined by the Registrar in addition to, or in
substitution for, STEMP, SEMP or MSP, all in accordance with the Securities Exchange Act of
1934, as amended.
The Bond Registrar will not effect transfer of this Bond unless the information concerning
the assignee requested below is provided.
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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
PROVISIONS AS TO REGISTRATION
The ownership of the principal of and interest on the within Bond has been registered on the
books of the Registrar in the name of the person last noted below.
Date of Registration Registered Owner Signature of Registrar
Cede & Co.
FederalID #13-2555119
3.02. The City Administrator is authorized and directed to obtain a copy of the
proposed approving legal opinion of Kennedy & Graven, Chartered, Minneapolis, Minnesota,
which is to be complete except as to dating thereof and cause the opinion to be printed on or
accompany each Bond.
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Section 4. Payment; Security; Pledges and Covenants.
4.01. (a) The Bonds will be payable from the General Obligation Capital Improvement
Plan Bonds, Series 2004D Debt Service Fund (Debt Service Fund) hereby created, and the proceeds
of the ad valorem taxes hereinafter levied are hereby pledged to the Debt Service Fund. If a
payment of principal or interest on the Bonds becomes due when there is not sufficient money in the
Debt Service Fund to pay the same, the Finance Director will pay such principal or interest from the
general fund of the City, and the general fund will be reimbursed for those advances out of the
proceeds of the taxes levied by this resolution, when collected. There is appropriated to the Debt
Service Fund (i) capitalized interest financed from Bond proceeds, if any, (ii) any amount over the
minimum purchase price of the Bonds paid by the Purchaser, and (iii) the accrued interest paid by
the Purchaser upon closing and delivery of the Bonds.
(b) The proceeds of the Bonds, less the appropriations made in paragraph (a), together
with any other funds appropriated for the capital improvements will be deposited in a separate
construction fund to be used solely to defray expenses of the improvements. Any balance
remaining in the construction fund after completion of the capital improvements may be used to pay
the cost in whole or in part of any other capital improvement instituted under the Act.
4.02. For the purpose of paying the principal of and interest on the Bonds, there is levied a
direct annual irrepealable ad valorem tax upon all of the taxable property in the City, to be spread
upon the tax rolls and collected with and as part of other general taxes of the City. TIle tax will be
credited to the Debt Service Fund above provided and is in the years and amounts as follows (year
stated being year oflevy for collection the following year):
Year ~
(See Attachment A)
4.03. It is determined that the estimated collection of the foregoing taxes 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 levy herein provided will be irrepealable until all of the Bonds are
paid, provided that at the time the City makes its annual tax levies the City Administrator may
certify to the County Auditor of Scott County the amount available in the Debt Service Fund to pay
principal and interest due during the ensuing year, and the County Auditor will thereupon reduce the
levy collectible during such year by the amount so certified.
4.04. The City Administrator is authorized and directed to file a certified copy of this
resolution with the County Auditor and to obtain the certificate required by Minnesota Statutes,
Section 475.63.
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Section 5. Authentication of Transcript.
-5.01. The officers of the City are authorized and directed to prepare and furnish to the
Purchaser and to the attorneys approving the Bonds, certified copies of proceedings and records of
the City relating to the Bonds and to the fmancial condition and affairs of the City, and such other
certificates, affidavits and transcripts as may be required to show the facts within their knowledge or
as shown by the books and records in their custody and under their control, relating to the validity
and marketability of the Bonds, and such instruments, including any heretofore furnished, will be
deemed representations of the City as to the facts stated therein.
5.02. The Mayor, City Administrator and Finance Director are authorized and directed to
certify that they have examined the Official Statement prepared and circulated in connection with
the issuance and sale of the Bonds and that to the best of their knowledge and belief the Official
Statement is a complete and accurate representation of the facts and representations made therein as
of the date of the Official Statement.
Section 6. Tax Covenant.
6.01. The City covenants and agrees with the holders from time to time of the Bonds that
it will not take or permit to be taken by any of its officers, employees or agents any action which
would cause the interest on the Bonds to become subject to taxation under the Internal Revenue
Code of 1986, as amended (the Code), and the Treasury Regulations promulgated thereunder, in
effect at the time of such actions, and that it will take or cause its officers, employees or agents to
talce, all affirmative action within its power that may be necessary to ensure that such interest will
not become subject to taxation under the Code and applicable Treasury Regulations, as presently
existing or as hereafter amended and made applicable to the Bonds.
6.02. The City will comply with requirements necessary under the Code to establish and
maintain the exclusion from gross income of the interest on the Bonds under Section 103 of the
Code, including without limitation requirements relating to temporary periods for investments,
limitations on amounts invested at a yield greater than the yield on the Bonds. [and the rebate of
excess investment earnings to the United States.
6.03. The City further covenants not to use the proceeds of the Bonds or to cause or permit
them or any of them to be used, 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.
6.04. The City will use its best efforts to comply with any federal procedural requirements
which may apply in order to effectuate the designations made by this section.
SJB-254312vl
SH155-139
Section 7. Book-Entry System; Limited Obligation of City.
7.01. The Bonds will be initially issued in the form of a separate single typewritten or
printed fully registered Bond for each of the maturities set forth in Section 1.03 hereof. Upon initial
issuance, the ownership of each Bond will be registered in the registration books kept by the Bond
Registrar in the name of Cede & Co., as nominee for The Depository Trust Company, New York,
New York, and its successors and assigns (DTC). Except as provided in this section, all of the
outstanding Bonds will be registered in the registration books kept by the Bond Registrar in the
name of Cede & Co., as nominee ofDTC.
7.02. With respect to Bonds registered in the registration books kept by the Bond
Registrar in the name of Cede & Co., as nominee of DTC, the City, the Bond Registrar and the
Paying Agent will have no responsibility or obligation to any broker dealers, banks and other
financial institutions from time to time for which DTC holds Bonds as securities depository
(Participants) or to any other person on behalf of which a Participant holds an interest in the Bonds,
including but not limited to any responsibility or obligation with respect to (i) the accuracy of the
records ofDTC, Cede & Co. or any Participant with respect to any ownership interest in the Bonds,
(ii) the delivery to any Participant or any other person (other than a registered owner of Bonds, as
shown by the registration books kept by the Bond Registrar), of any notice with respect to the
Bonds, including any notice of redemption, or (iii) the payment to any Participant or any other
person, other than a registered owner of Bonds, of any amount with respect to principal of,
premium, if any, or interest on the Bonds. The City, the Bond Registrar and the Paying Agent may
treat and consider the person in whose name. each Bond is registered in the registration books kept
by the Bond Registrar as the holder and absolute owner of such Bond for the purpose of payment of
principal, premium and interest with respect to such Bond, for the purpose of registering transfers '
with respect to such Bonds, and for all other purposes. The Paying Agent will pay all principal of,
premium, if any, and interest on the Bonds only to or on the order of the respective registered
owners, as shown in the registration books keptby the Bond Registrar, and all such payments will
be valid and effectual to fully satisfy and discharge the City's obligations with respect to payment of
principal of, premium, ifany, or interest on the Bonds to the extent of the sum or sums so paid. No
person other than a registered owner of Bonds, as shown in the registration books kept by the Bond
Registrar, will receive a certificated Bond evidencing the obligation of this resolution. Upon
delivery by DTC to the City Administrator of a written notice to the effect that DTC has determined
to substitute a new nominee in place of Cede & Co., the words "Cede & Co.," will refer to such new
nominee of DTC; and upon receipt of such a notice, the City Administrator will promptly deliver a
copy of the same to the Bond Registrar and Paying Agent.
7.03. Representation Letter. The City has heretofore executed and delivered to DTC a
Blanket Issuer Letter of Representations (Representation Letter) which shall govern payment of
principal of, premium, if any, and interest on the Bonds and notices with respect to the Bonds. Any
Paying Agent or Bond Registrar subsequently appointed by the City with respect to the Bonds will
agree to take all action necessary for all representations of the City in the Representation letter with
respect to the Bond Registrar and Paying Agent, respectively, to be complied with at all times.
SJB-254312vl
SH155-139
7.04. Transfers Outside Book-Entry System. In the event the City, by resolution of the
City Council, determines that it is in the best interests of the persons having beneficial interests in
the Bonds that they be able to obtain Bond certificates, the City will notify DTC, whereupon DTC
will notify the Participants, of the availability through DTC of Bond certificates. In such event the
City will issue, transfer and exchange Bond certificates as requested by DTC and any other
registered owners in accordance with the provisions of this Resolution. DTC may determine to
discontinue providing its services with respect to the Bonds at any time by giving notice to the City
and discharging its responsibilities with respect thereto under applicable law. In such event, if no
successor securities depository is appointed, the City will issue and the Bond Registrar will
authenticate Bond certificates in accordance with this resolution and the provisions hereof will
apply to the transfer, exchange and method of payment thereof.
7.05. Payments to Cede & Co. Notwithstanding any other provision of this Resolution to
the contrary, so long as a Bond is registered in the name of Cede & Co., as nominee of DTC,
payments with respect to principal of, premium, if any, and interest on the Bond and all notices with
respect to the Bond will be made and given, respectively in the manner provided in DTC's
Operational Arrangements, as set forth in the Representation Letter.
Section 8. Continuing Disclosure.
8.01. The City hereby covenants and agrees that it will comply with and carry out all of the
provisions of the Continuing Disclosure Certificate. Notwithstanding any other provision of this
Resolution, failure of the City to comply with the Continuing Disclosure Certificate is not to be
considered an event of default with respect to the Bonds; however, any Bondholder may take such
actions as may be necessary and appropriate, including seeking mandate or specific performance by
court order, to cause the City to comply with its obligations under this section.
8.02. "Continuing Disclosure Certificate" means that certain Continuing Disclosure
Certificate executed by the Mayor and City Administrator and dated the date of issuance and
delivery of the Bonds, as originally executed and as it may be amended from time to time in
accordance with the terms thereof.
The motion for the adoption of the foregoing resolution was duly seconded by Member
, and upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
9
whereupon the resolution was declared duly passed and adopted.
SJB-254312vl
SHl55-139
STATE OF MINNESOTA )
)
COUNTY OF SCOTT ) ss.
)
CITY OF SHAKOPEE )
I, the undersigned, being the dilly qualified and acting Clerk of the City of Shakopee, Scott
County, Minnesota, do hereby certify that I have carefully compared the attached and foregoing
extract of minutes ofa regular meeting of the City Council of the City held on October 19, 2004
with the original minutes on file in my office and the extract is a full, true and correct copy of the
minutes insofar as they relate to the issuance and sale of $6,000,000 General Obligation Capital
Improvement Plan Bonds, Series 2004D of the City.
WITNESS My hand officially as such Clerk and the corporate seal of the City this
day of , 2004.
City Clerk
Shakopee, Minnesota
(SEAL)
SJB-254312vl
SHI55-139
STATE OF MINNESOTA COUNTY AUDITOR'S
CERTIFICATE AS TO
COUNTY OF SCOTT TAX LEVY AND
REGISTRATION
I, the undersigned County Auditor of Scott County, Minnesota, hereby certify that a certified
copy of a resolution adopted by the governing body of the City of Shakopee, Minnesota, on October
19, 2004, levying taxes for the payment of $6,000,000 General Obligation Capital Improvement
Plan Bonds, Series 2004D, of said municipality dated November 1, 2004, has been filed in my
office and said bonds have been entered on the register of obligations in my office and that such tax
has been levied as required by law.
WITNESS My hand and official seal this _ day of ,2004.
County Auditor
Scott County, Minnesota
(SEAL)
By
Deputy
SJB-254312vl
SHl55-139
~
'-if;
85 E. SEVENTH PLACE, SUITE 100
SAINT PAUL, MN 55101-2887
-. 651.223.3000 FAX: 651.223.3002
E-MAIL: advlsors@sprin,gsted.com
// SPRINGSTED
~ ""'1_.. ,,,, ""t &aM
$2,570,000
CITY OF SHAKOPEE, MINNESOTA
GENERAL OBLIGATION IMPROVEMENT BONDS, SERIES 2004C
(BOOK ENTRY ONLY)
AWARD: PIPER JAFFRAY & CO.
and Associates
SALE: OCTOBER 19, 2004 Moody's Rating: Aa3
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
PIPERJAFFRAY & CO. 3.00% 2006-2009 $2,594,616.70 $489,900.49 3.3120%
Wells Fargo Brokerage Services, LLC 3.25% 2010
Edward O. Jones & Company 3.375% 2011
3.50% 2012
3.625% 2013
3.75% 2014
4.00% 2015
UBS FINANCIAL SERVICES INC. 2.00% 2006 $2,558,391.80 $489,266.01 3.3343%
CITIGROUP GLOBAL MARKETS, INC. 2.25% 2007
BEAR, STEARNS & CO., INC. 2.50% 2008
MORGAN STANLEY - MORGAN STANLEY 3.00% 2009-2011
OW INC. 3.25% 2012
CIBC WORLD MARKETS 3.375% 2013
CITIZENS BANK 3.50% 2014
CRONIN & COMPANY, INCORPORATED 4.00% 2015
CHARLES SCHWAB & COMPANY
KIRLIN SECURITIES, INC.
(Continued)
CORPORATE OFFICE: SAINT PAUL, MN . Visit our website at www.springsted.com
IOWA . KANSAS . MINNESOTA . VIRGINIA . WASHINGTON, DC . WISCONSIN
1""
~
.
--------..---------.....--------------------------------------..------------------------------------------------------------------------------------------------------...
REOFFEHING SCHEDULE OF THE PURCHASER ~.,
.
Rate Year Yield
3.00% 2006. 1.85%
3.00% 2007 2.05%
3.00% 2008 2.30%
3.00% 2009 2.63%
3.25% 2010 2.90% I
3.375% 2011 3.10%
3.50% 2012 3.25% "
3.625% 2013 3.40%
3.75% 2014 3.54%
4.00% 2015 3.70%
BBI: 4.48%
Average Maturity: 5.692 Years
'I"
q.
I',
.
85 E. SEVENTH PLACE, SUITE 100
SAINT PAUL, MN 55101-2887
:~ 651.223.3000 FAX: 651.223.3002
E-MAIL: advisors@sprinj1;sted.com
// SPRINGSTED
~"d,",n.. ". ""11, S<dOl
I
l'
$6,000,000
" CITY OF SHAKOPEE, MINNESOTA
GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS, SEREIS 20040
(BOOK ENTRY ONLY)
AWARD: UBS FINANCIAL SERVICES INC.
CITIGROUP GLOBAL MARKETS, INC.
BEAR, STEARNS & CO., INC.
MORGAN STANLEY - MORGAN STANLEY OW INC.
CIBC WORLD MARKETS,
CITIZENS BANK
CRONIN & COMPANY, INCORPORATED
CHARLES SCHWAB & COMPANY .""
KIRLIN SECURITIES, INC.
'.1"
SALE: October 19, 2004 Moody's Rating: Aaa
MBIA Insured
Interest Net Interest True Interest
Bidder Rates Price Cost Rate
UBS FINANCIAL SERVICES INC. 2.50% 2006-2007 $5,940,306.15 $2,982,253.85 4.1103%
CITIGROUP GLOBAL MARKETS, INC'. 2.75% 2008
BEAR, STEARNS & CO., INC. 3.00% 2009-2011
MORGAN STANLEY - MORGAN STANLEY 3.20% 2012
DWINC. 3.25% 2013
CIBC WORLD MARKETS 4.00% 2014-2019
CITIZENS BANK 4.125% 2020
CRONIN & COMPANY, INCORPORATED 4.20% 2021
CHARLES SCHWAB & COMPANY 4.25% 2022-2023
KIRLIN SECURITIES, INC. 4.375% 2024-2025
PIPER JAFFRAY & CO. 3.00% 2006-2009 $5,964,912.50 $2,988,605.14 4.1130%
Wells Fargo Brokerage Services, LLC 3.50% 2010-2012
Edward O. Jones & Company 3.625% 2013
3.75% 2014
4.00% 2015-2020
4.10% 2021
4.25% 2022
4.30% 2023
4.40% 2024
4.50% 2025 (Continued)
CORPORATE OFFICE: SAINT PAUL, MN . Visit our website at www.springsted.com
IOWA . KANSAS . MINNESOTA . VIRGINIA . WASHINGTON. DC . WISCONSIN
.
,
------------------------------------.-------------------------------------------------------------------.---------------------------------------------------------- L
~.
REOFFERIN<3 SCHEDULE OF THE PURCHASER
Rate Year Yield
,
2.50% 2006 1.80%
2.50% 2007 2;05%
2.75% 2008 2.30%
3.00% 2009 2.60%
3.00% 2010 2.875%
3.00% 2011 3.08%
3.20% 2012 3.25%
3.25% 2013 3.375%
4.00% 2014 3.50%
4.00% 2015 3.70%
4.00% 2016 3.80%
4.00% 2017 3.95%
4.00% 2018 Par
4.00% 2019 4.10%
4.125% 2020 4.18%
4.20% 2021 4.25%
4.25% 2022 4.30%
4.25% 2023 4.375%
4.375% 2024 4.45%
4.375% 2025 4.53%
BBI: 4.48%
Average Maturity: 12.069 Years