88-96
.
e
e
K~ '> gg - crro
Extract of Minutes of Meeting
of the City Council of the City of
Chanhassen, Carver and Hennepin Counties, Minnesota
Pursuant to due call and notice thereof, a special meeting of the City
Council of the City of Chanhassen, Minnesota, was duly held in the City Hall in
said City on Thursday, September 15, 1988, commencing at 7:30 P.M.
The following members were present: Hamilton, Horn, Boyt
and the following were absent: Geving, Johnson
* * *
* * *
* * *
The Mayor announced that the next order of business was consideration of
the offers which had been received for the purchase of the City's $1,200,000
~,
General Obligation Bonds of 1988, as offered for sale by the Official Statement
dated September 1, 1988.
The City Manager presented a tabulation of the offers which had been
received in the manner specified in the Official Statement of the Bonds. The
offers were as follows:
, .
Mericor
e
TABULATION OF BIDS
City of Chanhassen. Minnesota
$1.200.000 General Obligation Bonds of 1988
Sale Date: 7:30 p.m.. Thursday. September 15. 1988
Moody's Rating: Baa
Bidder:
Piper. Jaffray & Hopwood. Inc.. Manager
Allison-Williams Company. Inc.
American National Bank. St. Paul
Juran & Moody. Inc.
Miller & Schroeder Financial. Inc.
e
Purchase Price:
Net Interest Cost:
Net Effective Interest Rate:
Insurance:
$1.176.600.00
$879.631.25
7.0511
FGIC (Aaa/AAA)
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
5.75%
5.90
6.00
6.10
6.20
6.30
6.40
6.50
6.60
6.70
6.80
6.90
7.00
7.10
7.20
%
Bidder:
Cronin & Company. Inc.. Manager
Smith. Barney. Harris. Upham & Company. Co-Manager
Dougherty. Dawkins. Strand & Yost. Inc.
e
Purchase Price:
Net Interest Cost:
Net Effective Interest Rate:
Insurance:
$1.176.600.00
$888.516.67
7.1223
FGIC (Aaa/AAA)
1989
1990
1991
1992
1993
1994
1995
.1.996
.1.997
1998
1999
2000
2001
2002
2003
5.80%
5.90
6.00
6.15
6.30
6.40
6.50
6.60
6.70
6.80
6.90
7.00
7..1.0
7..1.5
'7.20
%
Mericor Rnancial Services, Inc.
3055 Old Highway Eigbt . Minneapolis, Minnesota 55418 . 612-782.2520
e
TABULATION OF BIDS
City of Chanhassen. Minnesota
$1.200.000 General Obligation Bonds of 1988
Sale Date: 7:30 p.m.. Thursday. September 15. 1988
Moody's Rating: Baa
Bidder:
First Bank. N.A.. Manager
Norwest Bank Minnesota. N.A.. Co-Manager
e
Purchase Price:
Net Interest Cost:
Net Effective Interest Rate:
Insurance:
$1.176.600.00
$889.762.50
7.1323
FGIe (Aaa/AAA)
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
5.75%
5.90
6.00
6.10
6.20
6.30
6.45
6.60
6.70
6.80
6.90
7.00
7.10
7.20
7.25
%
Bidder:
Clayton Brown & Associates. Inc.. Manager
Purchase Price:
Net Interest Cost:
Net Effective Interest Rate:
Insurance:
$1.176.068.25
$895.340.06
7.1770
FGIC (Aaa/AAA)
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
7.30%
7.30
7.30
6.50
6.30
6.40
6.50
6.60
6.70
6.80
6.90
7.00
7.10
7.20
7.30
e
%
e
TABULATION OF BIDS
City of Chanhassen. Minnesota
$1.200.000 General Obligation Bonds of 1988
Sale Date: 7:30 p.m.. Thursday. September 15. 1988
Moody's Rating: Baa
Bidder:
Dain Bosworth. Inc.. Manager
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Miller Securities. Inc.. Co-Manager
e
Purchase Price:
$1.176.912.00
6.50%
6.50
6.50
6.50
6.50
6.50
6.50
6.60
6.75
6.90
7.00
7.10
7.15
7.20
7.25
Net Interest Cost:
$897.704.67
Net Effective Interest Rate:
7.1960
%
Insurance:
FGIC (Aaal1\1\1\)
e
.
After due consideration of the offers, Member Hamilton
then
introduced the following resolution and moved its adoption:
RESOLUTION NO. 88-96
A RESOLUTION AWARDING THE SALE OF $1,200,000
GENERAL OBLIGATION BONDS OF 1988;
FIXING THEIR FORM AND SPECIFICATIONS;
DIRECTING THEIR EXECUTION AND DELIVERY;
AND PROVIDING FOR THEIR PAYMENT
BE IT RESOLVED By the City Council of the City of Chanhassen, Carver and
Hennepin Counties, Minnesota (City) as follows:
Section 1. Sale of Bonds.
1. 01. a) At a duly called and regularly held special election in the
City on February 24, 1988, the voters of the City approved the issuance by
the City of general obligation bonds in an amount not to exceed $1,400,000
for the purpose of financing fire fighting facilities consisting of an
addition to the central fire station and a fire truck to be housed therein,
(Project) all pursuant to Minnesota Statutes, Chapter 475 (Act).
e
(b) It is determined that the amount of $1,200,000 is presently
needed to finance a portion of the cost of the Project.
(c) The City is authorized by Section 475.60, subdivision 2(6) to
negotiate the sale of its general obligation bonds in an amount not to
exceed $1,200,000 in any twelve month period. It is declared that the City
has not negotiated the sale of any of its bonds in the past 12-month period
preceding this date.
(d) The actions of the City Manager and the City's financial advisers
in preparing the Official Statement for the City's $1,200,000 General
Obligation Bonds of 1988 and soliciting proposals for the purchase of the
Bonds are ratified and confirmed in all respects.
1.02. The offer of Piper, Jaffray & Hopwood AccoundPurchaser) to purchase
$1,200,000 General Obligation Bonds of 1988 (Bonds) of the City described in the
Official Statement is hereby found and determined to be the highest and best
offer received and shall be and is hereby accepted, the offer being to purchase
the Bonds at a price of $ l,176,600.00plus accrued interest to date of delivery,
for Bonds bearing interest as follows:
Year of Maturity Interest Rate Year of Maturity Interest Rate
1989 5.75i. 1997 6.60i.
1990 5.90 1998 6.70
e 1991 6.00 1999 6.80
1992 6.10 2000 6.90
1993 6.20 2001 7.00
1994 6.30 2002 7.10
1995 6.40 2003 7.20
1996 6.50
.
Net effective interest rate:
7.05 %
1.03. The sum of $ -0- being the amount offered by the Purchaser in
excess of $1.176.600 shall be credited to the Debt Service Fund created by
Section 4.01. The City Manager is directed to retain the good faith check of
the Purchaser, pending completion of the sale and delivery of the Bonds. The
Mayor and City Manager are directed to execute a contract for the purchase of
the Bonds with the Purchaser on behalf of the City.
1.04. The City shall forthwith issue and sell the Bonds in the total
principal amount of $1,200,000. originally dated September 1, 1988, in the
denomination of $5.000 each or any integral multiple thereof, numbered No. R-1,
upward, bearing interest as above set forth. and which mature serially on
November 1 in the years and amounts as follows:
Year Amount Year Amount
1989 $25,000 1997 $ 75,000
1990 25,000 1998 100,000
1991 25,000 1999 100,000
1992 50,000 2000 125.000
1993 50,000 2001 125,000
1994 50,000 2002 150,000
1995 75,000 2003 150,000
1996 75.000
e
1.05. Optional Redemption. The City may elect on November 1, 1996. and on
any interest payment date thereafter to prepay Bonds maturing on or after
November 1, 1997. Redemption may be in whole or in part of the Bonds subject to
prepayment. If redemption is in part, those Bonds remaining unpaid which have
the latest maturity date will be prepaid first. If only part of the Bonds
having a common maturity date are called for prepayment the specific Bonds to be
prepaid will be chosen by lot by the Registrar. All payments will be at a price
of par plus accrued interest.
Section 2. Registration and Payment.
2.01. Registered Form. The Bonds shall be issued only in fully registered
form. The interest thereon and, upon surrender of each Bond, the principal
amount thereof, shall be payable by check or draft issued by the Registrar
described herein.
e
2.02. Dates; Interest Payment Dates. Each Bond shall be dated as of the
last interest payment date preceding the date of authentication to which inter-
est 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 such Bond shall 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 such Bond shall be dated as of the date of
original issue. The interest on the Bonds shall be payable on May 1 and
November 1 of each year, commencing May 1, 1989, to the owner 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 shall appoint, and shall maintain, 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 Regis-
trar with respect thereto shall be as follows:
(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 of Bonds entitled to be registered, transferred or exchanged.
(b) Transfer of Bonds. Upon surrender for transfer of any Bond duly
endorsed by the registered owner thereof or accompanied by a written
instrument of transfer, in form satisfactory to the Registrar, duly execut-
ed by the registered owner thereof or by an attorney duly authorized 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 like aggregate principal amount and maturity, as requested by
the transferor. The Registrar may, however, close the books for registra-
tion of any transfer after the fifteenth day of the month preceding each
interest payment date and until such interest payment date.
(c) Exchange 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 attorney in writing.
e
(d) Cancellation. All Bonds surrendered upon any transfer or ex-
change shall be promptly cancelled by the Registrar and thereafter disposed
of as directed by the City.
(e) Improper or Unauthorized Transfer. When any Bond is presented to
the Registrar for transfer, the Registrar may refuse to transfer the same
until it is satisfied that the endorsement on such Bond or separate instru-
ment of transfer is valid and genuine and that the requested transfer is
legally authorized. The Registrar shall incur no liability for the refus-
al, 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 any Bond is at any time registered in the bond regis-
ter 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 valid and effectual to satisfy and discharge the liability
upon such Bond to the extent of the sum or sums so paid.
e
(g) Taxes, Fees and Charges. For every transfer or 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, Lost, Stolen or Destroyed Bonds. In case any Bond
shall become mutilated or be destroyed, stolen or lost, the Registrar shall
deliver a new Bond of like amount, number, maturity date and tenor in
e
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 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 such 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, in which both
the City and the Registrar shall be named as obligees. All Bonds so sur-
rendered to the Registrar shall be cancelled by it and evidence of such
cancellation shall 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 shall not be necessary to issue a new Bond
prior to payment.
e
(i) Redemption. In the event any of the Bonds are called for redemp-
tion, 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) not more than 60 and not less than 30 days prior to
the date fixed for redemption to the registered owner of each Bond to be
redeemed at the address shown on the registration books kept by the Regis-
trar and by publishing said notice in the manner required by law. Failure
to give such notice by publication or by mail to any registered owner, or
any defect therein, will not affect the validity of any proceeding for the
redemption of Bonds. All 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 hereby appoints
American National Bank and Trust Co. St. Paul , Minnesota, as the
initial Registrar. The Mayor and the City Manager 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 busi-
ness, such corporation shall be 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 shall deliver all cash and Bonds in its possession to
the successor Registrar and shall deliver the bond register to the successor
Registrar. On or before each principal or interest due date, without further
order of this Council, the Treasurer shall transmit to the Registrar moneys
sufficient for the payment of all principal and interest then due.
e
2.05. Execution, Authentication and Delivery. The Bonds shall be prepared
under the direction of the Manager and shall be executed on behalf of the City
by the signatures of the Mayor and the Manager, 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 signature shall appear on the
Bonds shall cease to be such officer before the delivery of any Bond, such
signature or facsimile shall nevertheless be valid and sufficient for all
purposes, the same as if he had remained in office until delivery. Notwith-
standing such execution, no Bond shall 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 such Bond has been duly executed by the manual
e
e
e
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 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 Treasurer
shall deliver the same to the Purchaser thereof upon payment of the purchase
price in accordance with the contract of sale heretofore made and executed, and
the Purchaser shall not be 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 shall be exchanged therefor
and cancelled.
Section 3. Form of Bond.
3.01. The Bonds shall be printed in substantially the following form:
[Face of the Bond]
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTIES OF CARVER AND HENNEPIN
CITY OF CHANHASSEN
GENERAL OBLIGATION BOND OF 1988
Rate
Maturity
Date of
Original Issue
CUSIP
September 1, 1988
No.
$
The City of Chanhassen, Minnesota, a duly organized and existing municipal
corporation in Carver and Hennepin Counties, Minnesota (City), acknowledges
itself to be indebted and for value received hereby promises to pay to
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 May 1 and November 1 in each year, commencing May 1,
1989, 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
Minnesota, as Bond Registrar, Paying Agent, Transfer Agent and Authenticating
.
e
e
Agent, or its designated successor under the Resolution described herein. For
the prompt and full payment of such principal and interest as the same respec-
tively 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 November 1, 1996, and on any interest payment date
thereafter, to prepay Bonds of this issue maturing on or after November 1, 1997.
Redemption may be in whole or in part of the Bonds subject to prepayment. If
redemption is in part, those Bonds remaining unpaid which have the latest
maturity date will be prepaid first. If only part of the Bonds having a common
maturity date are called for prepayment the specific Bonds to be prepaid will be
chosen by lot by the Registrar. All prepayments shall be at a price of par plus
accrued interest.
The City Council has designated the Bonds as "qualified tax exempt obliga-
tions" within the meaning of Section 265(b) (3) of the Internal Revenue Code of
1986, as amended (the Code) relating to disallowance of interest expense for
financial institutions and within the $10 million limit allowed by the Code for
the calendar year of issue.
Additional provisions of this Bond are contained on the reverse hereof and
such provisions shall for all purposes have the same effect as though fully set
forth in this place.
This Bond shall not be valid or become obligatory for any purpose or be
entitled to any security or benefit under the Resolution until the Certificate
of Authentication hereon shall have been executed by the Bond Registrar by
manual signature of one of its authorized representatives.
IN WITNESS WHEREOF, the City of Chanhassen, Carver and Hennepin Counties,
Minnesota, by its City Council, has caused this Bond to be executed on its
behalf by the facsimile signatures of the Mayor and City Manager and has caused
this Bond to be dated as of the date set forth below.
Dated:
CITY OF CHANHASSEN, MINNESOTA
(facsimile)
(facsimile)
City Manager
Mayor
CERTIFICATE OF AUTHENTICATION
This is one of the Bonds delivered pursuant to the Resolution mentioned
within.
By
Authorized Representative
e
[Reverse of the Bond]
This Bond is one of an issue in the aggregate principal amount of
$1,200,000 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 September 15, 1988 (the Resolution),
for the purpose of providing money to aid in financing the cost of various
capital improvements in the City, pursuant to and in full conformity with the
Constitution and laws of the State of Minnesota, including Minnesota Statutes,
Chapter 475, and pursuant to authority granted by the voters of the City at a
duly called and regularly held special election in the City. 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 in and by
the Resolution duly levied an irrepealable ad valorem tax on all taxable
property in the City for the payment of principal of and interest on the bonds
as the same become due, and the City Council obligated itself to levy additional
ad valorem taxes on all taxable property in the City in the event of any
deficiency, which taxes may be levied without limitation as to rate or amount.
The Bonds of this series are issued only as fully registered Bonds in denomina-
tions of $5,000 or any integral multiple thereof of single maturities.
e
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 shall 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 constitu-
tional or statutory limitation of indebtedness.
e
e
e
-
(Form of certificate to be printed on the reverse side of each Bond,
following a full copy of the legal opinion.)
I certify that the above is a full, true and correct copy of the legal
opinion rendered by bond counsel on the issue of Bonds of the City of
Chanhassen, Minnesota, which includes the within Bond, dated as of the date of
delivery of and payment for the Bonds.
(Facsimile Signature)
City Manager
The following abbreviations, when used in the inscription on the face of
this Bond, shall be construed as though they were written out in full according
to applicable laws or regulations:
TEN COM -- as tenants
in common
UNIF GIFT MIN ACT
(Cust)
Custodian
(Minor)
TEN ENT -- as tenants
by entireties
under Uniform Gifts or
Transfers to Minors
JT TEN -- as joint tenants with
right of survivorship and
not as tenants in common
Act . . .
. . . . . . . . . .
(State)
Additional abbreviations may also be used though not in the above list.
ASSIGNMENT
For value received, the undersigned hereby sells, assigns and transfers
the within Bond and all rights
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.
unto
thereunder,
and
does
Dated:
Notice:
The assignor's signature to this assignment must correspond with
the name as it appears upon the face of the within Bond in every
particular, without alteration or any change whatever.
.
.
.
Signature Guaranteed:
Signature (s) must be guaranteed by a national bank or trust company or by a
brokerage firm having a membership in one of the major stock exchanges.
The Bond Registrar will not effect transfer of this Bond unless the infor-
mation 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
3.02. The City Manager shall obtain a copy of the proposed approving legal
opinion of LeFevere, Lefler, Kennedy, O'Brien & Drawz, a Professional Associa-
tion, Minneapolis, Minnesota, which shall be complete except as to dating
thereof and shall cause the opinion to be printed on each Bond, together with a
certificate to be signed by the facsimile signature of the Manager in sub-
stantially the form set forth in the form of Bond. The Manager is hereby
authorized and directed to execute such certificate in the name of the City upon
receipt of such opinion and to file the opinion in the City offices.
Section 4. Payment: Security: Pledges and Covenants.
4.01. The Bonds shall be payable from the General Obligation Bonds of 1988
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 any payment of principal or interest on the Bonds shall become due when there
is not sufficient money in the Debt Service Fund to pay the same, the Treasurer
shall pay such principal or interest from the general fund of the City, and the
general fund shall be reimbursed for such advances out of the proceeds of the
taxes levied by this resolution, when collected. There is hereby appropriated
from the proceeds of the Bonds to the Debt Service Fund the sum of $6,497.81
representing capitalized interest and all accrued interest received from the
Purchaser as part of the purchase price of the Bonds.
4.02. For the purpose of paying the principal of and interest on the
Bonds, there is hereby levied a direct annual irrepealable ad valorem tax upon
all of the taxable property in the City, which shall be spread upon the tax
rolls and collected with and as part of other general taxes of the City. Such
tax shall be credited to the Debt Service Fund above provided and shall be in
the years and amounts as follows (year stated being year of levy for collection
the following year):
.
e
e
YEAR
LEVY
LEVY
YEAR
(See Attachment A)
4.03. It is hereby determined that the estimated collection of the forego-
ing 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 shall be irrepealable until all of the Bonds are paid, provided
that the City Manager may annually, prior to October 10 of any year, certify to
the Counties Auditor the amount available in the Debt Service Fund to pay
principal and interest due during the ensuing year, and the Counties Auditor
shall thereupon reduce the levy collectible during such year by the amount so
certified.
4.04. The City Manager is authorized and directed to file a certified copy
of this resolution with the County Auditor of Carver County and the Director of
Property Taxation of Hennepin County and to obtain the certificates required by
Minnesota Statutes, Section 475.63.
Section 5. Authentication of Transcript.
5.01. The officers of the City are hereby 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 certifi-
cates, 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, shall be deemed representations
of the City as to the facts stated therein.
5.02. The Mayor, Manager and City Treasurer are hereby 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
(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
.
e
e
and applicable Treasury Regulations, as presently existing or as hereafter
amended and made applicable to the Bonds.
6.02. (a) The City shall 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 re-
quirements 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 if the Bonds (together with
other obligations reasonably expected to be issued in calendar year 1988) exceed
the small-issuer exception amount of $5,000,000.
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. In order to qualify the Bonds as "qualified tax-exempt obligations"
within the meaning of Section 265(b)(3) of the Code, the City hereby makes the
following factual statements and representations:
(a) the Bonds are not "private activity bonds" as defined in Section
141 of the Code;
(b) the City hereby designates the Bonds as "qualified tax-exempt
obligations" for purposes of Section 265(b) (3) of the Code;
(c) the reasonably anticipated amount of tax-exempt obligations
(other than private activity bonds, treating qualified 501(c)(3) bonds as
not being private activity bonds) which will be issued by the City (and all
subordinate entities of the Counties) during calendar year 1988 will not
exceed $10,000,000; and
(d) not more than $10,000,000 of obligations issued by the City
during calendar year 1988 have been designated for purposes of Section
265(b)(3) of the Code.
6.05. The City shall use its best efforts to comply with any federal
procedural requirements which may apply in order to effectuate the designations
made by this section.
The motion for the adoption of the foregoing resolution was duly seconded
by Member
, and upon vote being taken thereon, the
Horn
following voted in favor thereof: Hamilton, Horn, Boyt
and the following voted against the same: none
whereupon said resolution was declared duly passed and adopted.
, . . ...,
ATTACHMENT .A8
~ OF TAX LEVIES
LEVY YEAR
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
$126,000
109 000
108; 000
132, 000
130,000
126,000
149.000
144;000
139,000
160,000
153,000
172 000
163;000
180,000
169,000
e
e
.
-
. ~ . ~,
STATE OF MINNESOTA
COUNTIES OF CARVER
AND HENNEPIN
CITY OF CHANHASSEN
)
)
) SSe
)
)
)
I, the undersigned, being the duly qualified and acting Manager of the City
of Chanhassen, Carver and Hennepin Counties, Minnesota, do hereby certify that I
have carefully compared the attached and foregoing extract of minutes of a
special meeting of the City Council of the City held on September 15, 1988, 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
$1,200,000 General Obligation Bonds of 1988 of the City.
City this
26
WITNESS My hand officially as such Manager and the corporate seal of the
day of September
, 1988.
(SEAL)
CI2:05110988.RAW
/.{2, ,~
City Manager
Chanhassen, Minnesota