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04-288�i����� ,3 -�o -� �{ RESOLUTION CITY OF Presented By Referred To �] f 1�T►�►t►`�Y�S�I1 �� 2 4 5 6 ACCEPTING PROPOSAL ON SALE OF APPROXIMATBLY $3,345,000 GENERAL OBLIGATION CAPTTAL IMPROVEMENT REFLJNDINCs BONDS, SERIES 2Q04D, PROVIDING FOR Tf�IR ISSUANCE, AND LEVYING A TAX FOR TF� PAYMENT THEREOF 7 WHEREAS, the Director, Office of Financiai Services, has presented proposals 8 received for the sale of approxnnately $3,345,000 General Obligafion Capital Improvement 9 Bonds, Series 2004D (Yhe "Bonds"), of the City of Saint Paul, Minnesota (the "City"); and 10 WHEREAS, the proposals set forth on Exhibit A attached hereto were received 11 pursuant to the Terms of Proposai at the offices of Springsted Incorporated at 10:30 A.M., 12 Central Time, this sazne day; and 13 WHEREAS, the Director, Office of Financial Services, has advised this Council lA that the proposal of ,r���� ij�.qi�si� �� �� was found to be the most advantageous 15 and has recommended that said proposal be accepted; and 16 WHEREAS, the proceeds of the Bonds will finance the current refunding of the 17 2005 and 2006 maturities (aggregating to $3,295,000) of the City's General Obligation Capital 18 Improvement Bonds, Series 1996A (the "Refunded Bonds"), for payment on April 15, 2004; and 19 WFIEREAS, the Refunded Bonds are callable on March 1, 2004, and on any day 20 thereafter at a price of par plus accrued interest, and refunding thexn is consistent with covenants 21 made with the holders thereof, and is necessary and desirable for the reduction of debt service 22 cost to the City; and 23 WIIEREAS, the City has heretofore issued registered obligarions in certificated 24 form, and incurs substantial costs associated with their printing and issuance, and substanfial 25 continuing trausaction costs relating to their payment, transfer and exchange; and 26 27 28 29 30 31 32 33 WAEREAS, the City has deterinined that significant savings in transaction costs will result from issuing bonds in "global book-enh-y form", by which bonds are issued in certificated form in lazge denominations, registered on the books of the C3ty in the name of a depository or its nominee, and held in safekeeping and immobilized by such depository, and such depository as part of the computerized national securities clearance and settlement system (the "National System") registers transfers of ownership interests in the bonds by making computerized book entries on its own books and dishibutes payments on the bonds to its Participants shown on its books as the owners of such interests; and such Participants and other conaoil Pile # D 7 — 9? . Crseen Sheet S� O 1 2. ' 1618661v2 � . '; 1 banks, brokers and dealers participating in the National System will do likewise (not as agents of 2 the City) if not the beneficial owners of the bonds; and 3 Wf�REAS, "Participants" means those financial institutions for whom the 4 Depository efFects book-enhy iransfers and piedges of securities deposited and immobilized with 5 the Depository; and 6 WHEREAS, The Depository Trust Company, a limited purpose hust company 7 organized under the laws of the State of New York, or any of its successors or successors to its 8 fixnctions hereunder (the "Depository"), will act as such depository with respect to the Bonds 9 except as set forth below, and the City has heretofore delivered a letter of representations (the 10 "Letter of Representations") setting forth various matters relating to the Depository and its role 11 with respect to the Bonds; and 12 WHEREAS, the City will deliver the Bonds in the form of one certificate per 13 maturity, each representing the entire principal amount of the Bonds due on a particular maturity 14 date (each a"Global Certificate"), which single certificate per maturity may be transferred on the 15 City's bond register as required by the Uniform Commercial Code, but not exchanged for smaller lb denominarions unless the City deternvnes to issue Replacement Bonds as provided below; and 17 WT�REAS, the City will be able to replace the Depository or under certain 18 circumstances to abandon the "global book-entry form" by pernlitting the Global Certificates to 19 be exchanged for smaller denominations typical of ordinary bonds registered on the City's bond 20 register; and "Replacement Bonds" means the certificates representing the Bonds so 21 authenticated and delivered by the Bond Registrar pursuant to paragraphs 6 and 12 hereof; and 22 WFIEREAS, "FTolder" as used herein means the person in whose naxne a Bond is 23 registered on the registration books of the City maintained by the registrar appointed as pmvided 24 in paragraph 8(the "Bond Registrar"); and 25 WIIEREAS, Rule 15c2-12 of the Securities and Exchange Commission prohibits 26 "participating underwriters" from pruchasing or selling the Bonds unless the City undertakes to 27 provide certain continuing disclosure with respect to the Bonds; and 28 WHEREAS, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2(9), 29 public sale requirements do not apply to the Bonds if the City retains an independent financial 30 advisor and deternunes to seil the Bonds by private negotiation, and the City has instead 31 authorized a competitive sale without pnblicarion of notice thereof as a form of private 32 negotiation; and 33 WHEREAS, proposals for the Bonds have been solicited by Springsted 34 Incorporated pursuant to an Officiat Statement and Terms of Proposal therein; and 35 WHEREAS, in the Terms of Proposal relating to the Bonds, the Ciry reserved the 36 right to increase or decrease the issue size from the proposed $3,345,000 in multiples of $5,000 37 in either of the maturities, and to adjust the premium offered or discount taken by a percentage 38 equal to the percentage by which the principal amount of the Bonds is increased or reduced; and 1618661v2 o���� WHEREAS, the City has deteimuied to adjust the principai amount by a$75,000 10 11 12 13 14 15 16 17 18 19 20 21 22 23 decrease: NOW, THEREFORE, BE IT RESOLVEA by the Council of the CiTy of Saint Paul, Minnesota, as follows: 1. Acceptance of Proposal. The proposal of RBC Dain Rauscher Ina (the "Purchaser") to purchase $3,345,000 General Obligation Capital Improvement Refunding Bonds, Series 2004D, of the City (the "Bonds", or individually a"Bond"), in accordance with the Terms of Proposal for the bond sale, at the rates of interest set forth hereinafter, and to pay for the Bonds the sum of $3,398,55825, plus interest accrued to settlement, is hereby found, determined and declared to be the most favorable proposal received and is hereby accepted for Bonds in the principal amount of $3,270,000 for a purchase price of $3,322,35739, and the Bonds are hereby awarded to the Purchaser. The Director, Office of Financial Services, or his designee, is directed to retain the deposit of the Purchaser and to forthwith return to the others making proposals their good faith checks or drafts. 2. Title; Original Issue Date; Denominations; Maturities. The Bonds shall be titled "General Obligafion Capital Improvement Refunding Bonds, Series 2004D", shall be dated Mazch 1, 2004, as the date of original issue and shall be issued forthwith on or after such date as fully registered bonds. The Bonds shail be numbered from R-1 upward. Global Certificates shall each be in the denomination of the enrire principal amount maturing on a single date, or, if a portion of said principal amount is prepaid, said principal amount less the prepayment. Replacement Bonds, if issued as provided in paragraph 6, shall be in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Bonds shall mature on March 1 in the yeazs and amounts as follows: Year Amount 2005 $1,640,QQ0 2006 1,630,000 24 25 26 27 28 29 30 31 32 The above schedule represents a deerease from the proposed maturity amounts of $40,000 in 2005 and $35,000 in 2006. 3. Purpose; Finding. The Bonds shall provide funds for a current refunding (the "Refunding") of the Refunded Bonds. The total cost of the Refunding, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. It is hereby found, determined and declared that the Refunding is pursuant to Mimiesota Statutes, Section 475.67, and is necessary or desirable for the reduction of debt service cost to the City. 33 4. Interest. The Bonds shall bear interest payable semiannually on March 1 34 and September 1 of each year (each, an"Interest Payxnent Date"), commencing September 1, 35 2004, calculated on the basis of a 360-day year of twelve 30-day months, at the respecrive rates 36 per annum set forth opposite the maturity years as follows: 1618661v2 / , 1. Maturity Year Interest Rate 2005 2.00% 2006 2.50 2 5. Descriution of the Global Certificates and Giobal Book-Enirv Svstem. 3 Upon their original issuance the Bonds will be issued in the form of a single Global Certificate 4 for each maturity, deposited with the Depository or its agent by the Purchaser and immobilized 5 as provided in pazagraph 6. No beneficial owners of interests in the Bonds will receive 6 certificates representing their respective interests in the Bonds except as provided in paragraph 6. 7 Except as so provided, during the term of the Bonds, beneficial ownership (and subsequent 8 transfers of beneficial ownership) of interests in the Global Cerkificates will be reflected by book 9 enhies made on the records of the Depository and its Participants and other banks, brokers, and 10 dealers participating in the National System. The Depository's book entries of beneficial i l ownership interests are authorized to be in increments of $5,000 of principal of the Bonds, but 12 not smaller increments, despite the larger authorized denominations of the Global Certificates. 13 Payment of principal oP, premitun, if any, and interest on the Global Certificates will be made to 14 the Bond Registrar as paying agent, and in turn by the Bond Registrar to the Depository ar its 15 nominee as registered owner of the Global Certificates, and the Depository according to the laws 16 and rules governing it will receive and forward payments on behalf of the beneficial owners of 17 the Globai Certificates. 18 Payment of principal of, premium, if any, and interest on a Global Certificate may in the 19 City's discretion be made by such other method of transferring funds as may be requested by the 20 Holder of a Global Cerkificate. 21 22 23 2A 25 26 27 28 29 30 31 32 33 34 35 36 37 38 6. Immobilization of Global Certificates by the Depository; Successor Deoositor�_eplacement Bonds. Pursuant to the request of the Purchaser to the Depository, which request is required by the Terms of Proposal, immediately upon the original delivery of the Bonds the Purchaser will deposit the Global Certificates representing all of the Bonds with the Depository or its agent. The Global Certificates shall be in typewritten form or otherwise as acceptable to the Depository, shall be registered in the name of the Depository or its nominee and shall be held immobilized from circulation at the offices of the Depository or its agent on behalf of the Purchaser and subsequent bondowners. The Depository or its nominee will be the sole holder of record of the Global Certificates and no investar or other party purchasing, selling or otherwise transferring ownership of interests in any Bond is to receive, hold or deliver any bond certificates so long as the Depository holds the Global Certificates immobilized from circulation, except as provided below in this pazagraph and in paragraph 12. Certificates evidencing the Bonds may not after their original delivery be transferred or exchanged except: (i) Upon registration of transfer of ownership of a Global Certificate, as providedin paragraph 12, (ii) To any successar of the Depository (or its nominee) or any substitute depository (a "substitute depository") designated pursuant to clause (iii) of this 1618661v2 oy-a8� 1 subpazagraph, provided that any successor of the Depository or any substitute depository 2 must be both a"clearing corporation" as defined in the Miunesota Uniform Commercial 3 Code at Minnesota Statutes, Section 336.8-102, and a qualified and registered "clearing 4 agency" as provided in Section 17A of the Securities Exchange Act of 1934, as amended, 5 (iii) To a subsritute depository designated by and acceptable to the City upon 6 (a) the determination by the Depository that the Bonds shall no longer be eligible for its 7 depository services or (b) a determivafion by the City that the Depository is no longer 8 able to carry out its functions, provided that any substitute depository must be qualified to 9 act as such, as provided in clause (ii) of this subparagraph, or 10 (iv) To those persons to whom tcansfer is requested in written transfer 11 instructions in the event that: 12 (a) the Depository shall resign or discontinue its services for the 13 Bonds and the City is unable to locate a substitute depository within two (2) 14 months following the resignation or deternunation of non-eligibility, or 15 (b) upon a determinafion by the City in its sole discrefion that (1) the 16 continuation of the book-entry system described herein, which precludes the 17 issuance of certificates (other than Global Certificates) to any Holder other than 18 the Depository (or its nominee), might adversely affect the interest of the 19 beneficial owners of the Bonds, or (2) that it is in the best interest of the beneficial 20 owners of the Bonds that they be able to obtain certificated bonds, 21 in either of which events the City shall notify Holders of its determination and of the 22 availability of certificates (the "Replacement Bonds'� to Holders requesting the saxne and 23 the registration, transfer and exchange of such Bonds will be conducted as provided in 24 paragraphs 9B and 12 hereof. 25 In the event of a succession of the Depository as may be authorized by this 26 paragraph, the Bond Registrar upon presentation of Global Certificates shall register their 27 transfer to the subsritute or successor depository, and the substitute or successor depository shall 28 be treated as the Depository for all purposes and funcfions under this resolution. The Letter of 29 Representations shall not apply to a subsritute or successor depository unless the City and the 30 substitute or successor depository so agree, and a similaz agreement may be entered into. 31 7. No Redemption. The Bonds shall not be subject to redemption and 32 prepayment at the option of the City prior to their maturity. 33 8. Bond Re 'g�strar. U. S. Bank National Association, in Saint Paul, 34 Minnesota, is appointed to act as bond registrar and transfer agent with respect to the Borids (the 35 "Bond Registrar"), and shall do so urtless and until a successor Bond Registrar is duly appointed, 36 all ptusuant to any contract the City and Bond Registrar shall execute which is consistent 37 herewith. A successor Bond Registraz shall be an officer of the City or a bank or trust company 38 eligibie for designation as bond registrar pursuant to Minnesota Statutes, Chapter 475, and may 39 be appointed pursuant to any contract the City and such successor Bond Registrar shali execute 40 which is consistent herewith. The Bond Registrar shail also serve as paying agent unless and 1618661v2 o�-a�s 1 until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be 2 paid to the Holders (or record holders) of the Bonds in the manner set forth in the forms of Bond 3 and paragraph 14 of this resolution. 4 9. Forms of Bond. The Bonds shali be in the form of Global Certificates 5 unless and until Replacement Bonds aze made available as provided in paragraph 6. Each form 6 of bond may contain such additional or different terms and provisions as to the form of payment, 7 record date, norices and other matters as are consistent with the Letter of Representations and 8 approved by the City Attorney. 9 A. Global Certificates. The Global Certificates, together with the Certificate of 10 Registration, the form of Assigunent and the registration information thereon, shall be in 11 substanfially the following form and may be typewritten rather than printed: 1618661 W1 ( Dy-� 8�' L3NITED STATES OF AMERICA 2 STATE OF MINNESOTA 3 RAMSEY COUNTY 4 CITY OF SAINT PAUL � $ GENERAL OBLIGATION CAPITAL IMPROVEMENT REFUNDING BOND, SERIES 2004D INTEREST RATE 9 REGISTERED OWNER: 10 PRINCII'AL AMOi3NT: 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 MATURITI' DATE DATE OF ORIGINAL ISSUE CUSIP March 1, _ DOLLARS KNOW ALL PERSONS BY TI�SE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "Issuer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above or on the certificate of regstration below, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, and to pay interest thereon semiaruaually on March 1 and September 1 of each year (each, an"Interest Payment Date"), commencing September 1, 2004, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the ptincipal sutn is paid or has been provided for. This Bond will bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premium, if any, on this Bond are payable in same-day funds hy 230 p.m., Eastern time, upon presentation and surrender hereof at the principal office of in , Minnesota (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date in same-day funds by 2:30 p.m., Eastern time, to the person in whose name tlus Bond is registered (the "Holder" or 'Bondholder") on the registrafion books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month preceding such Interest Pa}�ment Date (the "Regular Record Date"). Interest payments shall be received by the Holder no later than 2:30 pm., Eastern time; and principal and premium payments shall be received by the Holder no later than 2:30 p.m, Eastern time, if the Bond is surrendered for payment enough in advance to permit payment to be made by such time. Any interest not so 6mely paid shall cease to be payable to the person who is the Holder hereof as of the Regulaz Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fiYed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days March 1, 2004 t618661v2 os/��'� 1 prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond 2 are payable in lawful money of the United States of America. 3 Date of Pavment Not Business Dav. If the date for payment of the principal of, 4 premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on 5 which bavking institutions in the City of New York, New York, or the city where the principal 6 office of the Bond Registrar is located aze authorized by law or executive order to close, then the 7 date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal 8 holiday or a day on which such banking institutions are authorized to close, and payment on such 9 date shall have the same force and effect as if made on the nominal date of payment. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 No Redem tion. The Bonds of this issue (the "Bonds") are not subj ect to redemption and prepayment at the option of the Issuer prior to their maturity. Issuance; Purpose; General Obli ag tion. This Bond is one of an issue in the total principal amount of $3,270,000, all of like date of original issue and tenor, except as to number, maturity, interest rate and denomination, which Bond has been issued pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including particularly Laws of Minnesota for 1971, Chapter 773, as amended, and the Charter of the Issuer, and pursuant to a resolution adopted hy the City Council of the Issuer on Mazch 10, 2004 (the "Resolution"), for the purpose of providing money to finance the current refunding of the City's General Obligation Capital Improvement Bonds, Series 1996A. This Bond is payable out of the General Debt Service Fund of the Issuer. This Bond constitutes a general obligation of the Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, and interest when the same become due, the full faith and credit and tasing powers of the Issuer have been and are hereby irrevocably pledged. Denominations: ExchanQe; Resolution. The Bonds are issuable originally only as Global Certificates in the denomination of the entire principal amount of the issue maturing on a single date. Global Certificates are not exchangeable for fully registered bonds of smaller denominations except in exchange for Replacement Bonds if then auailable. Replacement Bonds, if made a��ailable as provided below, are issuable solely as fully registered bonds in the denominations of $5,000 and integral multipies thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registrar. Copies of the Resolution are on file in the principal office of the Bond Registrar. 35 36 that: 37 38 39 Reulacement Bonds. Replacement Bonds may be issued by the Issuer in the event (a) the Depository shall resign or discontinue its services for the Bonds, and only if the Issuer is unable to locate a substitute depository within two (2) months following the resigna6on or determinarion of non-eligibility, or 1618661v2 o�-a-�� 1 (b) upon a determination by the Issuer in its sole discretion that (1) the 2 continuation of the book-entry system described 'vn the Resolution, wluch precludes the 3 issuance of certificates (other than Global Certificates} to any Holder other than the 4 Depository (or its nominee), mighf adversely affect the interest of the benefieial owners 5 of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that 6 they be able to obtain certificated bonds. 7 9 10 11 12 13 14 15 16 17 18 19 20 Transfer. This Bond shall be registered in the name of the payee on the books of the Issuer by presenting this Bond for registration to the Bond Registrar, who will endorse his, her or its name and note the date of registration opposite the name of the payee in the certificate of registration attached hereto. Thereafter this Bond may be transferred by delivery with an assignment duly executed by the Holder or his, her or its legal representa6ves, and the Issuer and Bond Registrar may treat the Holder as the person exclusively entitled to exercise all the rights and powers of an owner until this Bond is presented with such assignment for registration of transfer, accompazued by assurance of the nature provided by law that the assignment is genuine and effective, and unril such transfer is regstered on said books and noted hereon by the Bond Registrar, all subject to the terms and condifions provided in the Resolution and to reasonable regularions of the Issuer contained in any agreement with, or norice to, the Bond Registrar. Transfer of tlus Bond rnay, at the direction and expense of the Issuer, be subject to certain other restricrions if required to qualify this Bond as being "in registered form" wittrin the meaning of Secrion 149(a) of the federal Internal Revenue Code of 1986, as unended. Zl Fees uroon Transfer or L,oss. The Bond Registrar may require payment of a sum 22 sufficient to cover any taic or other governxnental charge payable in connecfion with the transfer 23 or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. 24 Treatment of Registered Owner. The Issuer and Bond Registrar may treat the 25 person in whose name this Bond is registered as the owner hereof for the purpose of receiving 26 paysnent as herein provided {except as othenuise provided with respect to the Record Date) and 27 for all other purposes, whether or not this Bond sha11 be overdue, and neither the Issuer nor the 28 Bond Registraz shall be affected by notice to the contrary. 29 Authentication. This Bond shall not be valid or become obligatory for any 30 purpose or be enritled to any security unless the Certificate of Authentication hereon shall have 31 been executed by the Bond Registrar. 32 Not Oualified Tax-Exempt Obli ations. The Bonds have not been designated by 33 the Issuer as "qualified tax-exempt obligarions" for purposes of Section 265(b)(3) of the federal 34 Intemal Revenue Code of 1986, as amended. The Bonds do not qualify for such designation. 35 36 37 38 39 40 41 IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Mimiesota and the Charter of the Issuer to be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been done, have happened and haue been performed, in regular and due form, time and manner as required by law, and that this Bond, together with all other debts of the Issuer outstanding on the date of original issue hereof and on the date of its issuance and delivery to the original purchaser, does not exceed any consfiturional or statutory or Charter limitation of indebtedness. 1618661�f2 9 oY- a88 1 IN WTTNESS Wf�REOF, the City of Saint Paul, Ramsey County, Minnesota, by 2 its City Council has caused this Bond to be executed on its behalf by the photocopied facsimile 3 signature of its Mayor, attested by the photocopied facsimile signature of its Clerk, and 4 countersigned by the photocopied facsimile signature of its Director, Office of Financial 5 Services, the official seal having been omitted as permitted by law. 6 Date of Registration: 7 � 10 BOND REGISTRAR'S 11 CERTIFTCATE OF 12 AUTF�NTICATION 13 T4ris Bond is one of the 14 Bonds described in the 15 Resolution mentioned 16 within. 17 18 19 20 21 Bond Registrar 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Authorized Signature Registrable by: Payable at: CITY OF SAINT PAUL, RAMSEY COiTNTY, MII�7NESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services General Obligation Capital Ixnprovement Refunding Bond, Series 2004D, No. R-, 1618661d1 IQ o�-� 8� CERTIFICATE OF REGISTRATION The transfer of ownership of the principal amount of the attached Bond may be made only by the registered owner or his, her or its legal representative last noted below. DATE OF SIGNATURE OF REGISTRATION REGISTERED OWNER BOND REGISTRAR 16186b1J2 11 oy-�.88 0 6 7 8 4 10 11 IZ 13 14 15 16 17 18 19 20 21 22 23 24 25 26 ABBREVIATIONS The following abbreviations, when used in the inscription on the face of this Bond, sha11 be construed as though they were written out in full according to applicable laws or regvlations: TEI3 COM - as tenants in common TEN ENT - as tenants by the entireries 7T TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - as custodian for (Cust) under the (Minor) Uniform Transfers to Minors 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 unto the attached Bond and does hereby irrevocably constitute and appoint attomey to transfer the Bond on the books kept for the registrafion thereof, with full power of substitution in the premises. Dated: Notice: Signature Guazanteed: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the attached Bond in every particular, without altera6on or any change whatever. 27 28 Signature(s) must be guazanteed by a naAonal bank or trust company or by a brokerage firm 29 having a membership in one of the major stock exchanges or any other "Eligible Guarantar 30 Institution" as defined in 17 CFR 24017Ad-15(a)(2). 31 The Bond Registrar will not effect transfer of this Bond unless the information 32 concerning the transferee requested below is provided. 33 Name and Address: � 35 36 {Include information for all joint owners if the Bond is held 37 by joint account.) 1618661J2 12 a�1-a sg 2 B. Replacement Bonds. If the Ciry has notified Holders that Replacement Bonds 3 have been made available as provided in paragraph 6, then for every Bond thereafter transferred 4 or exchanged the Bond Registrar shall deliver a certificate in the form of the Replacement Bond 5 rather than the Global Certificate, but the Holder of a Global Certificate shall not otherwise be 6 required to exchange the Global Certificate for one or more Replacement Bonds since the City 7 recoP ;'es that some beneficiai owners may prefer the convenience of the Depository's 8 registered ownership of the Bonds even though the entire issue is no longer required to be in 9 giobal book-entry form. The Replacement Bonds, together with the Bond Registrar's Certificate 10 of Authentication, the form of Assignment and the registration information thereon, shall be in 11 substantially the following form, with paragraphs identical to the form of Global Certificate 12 stated by heading or initial text only: i6is�i�z 13 o �- ��� UNTTED STATES OF AMEffiCA STATE OF NIINNESOTA RAMSEY COLJNTY CTTY OF SAINT PAUL 6 7 10 11 12 13 14 15 16 17 l8 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 � GENERAL OBLIGATION CAPTTAL IMPROVBMENT REFUNDING BOND, SERIES 2004D INTEREST MATURITY RATE DATE DATE OF ORIGINAL ISSUE March 1, 2004 REGISTERED OWNER: I�:i1�C�117�iI_ ��\�Cllil�ll�i I DOLLARS $ CUSIP KNOW ALL PERSONS BY THESE PRESENTS that the City of Saint Paul, Ramsey County, Minnesota (the "Issuer" or "City"), certifies that it is indebted and for value received promises to pay to the registered owner specified above, or registered assi�s, in the manner hereinafter set forth, the principal amount specified above, on the maturity date specified above, and to pay interest thereon semiannually on March 1 and September 1 of each year (each, an "Interest Payment Date"), commencing September 1, 2004, at the rate per annum specified above (calculated on the basis of a 360-day year of rivelve 30-day months) untii the principal sum is paid or has been provided for. This Bond wili bear interest from the most recent Interest Payment Date to which interest has been paid or, if no interest has been paid, from the date of original issue hereof. The principal of and premiuxn, if any, on this Bond are payable upon presentation and surrender hereof at the principal office of in (the "Bond Registrar"), acting as paying agent, or any successor paying agent duly appointed by the Issuer. Interest on this Bond will be paid on each Interest Payment Date by check or draft mailed to the person in whose name this Bond is registered (the "Hoider" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendaz month preceding such Interest Payment Date (the "Regular Record Date"). Any interest not so timely paid shall cease to be payable to the person who is the Holder hereof as of the Regulaz Record Date, and shall be payable to the person who is the Holder hereof at the close of business on a date (the "Special Record Date") fixed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Nofice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond aze payable in lawful money of the United States of America. 1b18661v2 1,4 oy- a 88 1 REFERENCE IS HEREBY MADE TO TI� FURT'F�R PROVISIONS OF 2 THIS BOND SET FORTH ON TI� REVERSE F3EREOF, WF3ICH PROVISIONS SHALL 3 FOR ALL PURPOSES HAVE'THE SAME EFFECT AS IF SET FORTH HERE. � TT IS HEREBY CERTIFIED AND RECTI'ED.... 5 TN WITNESS WE��REOF, the City of Saint Paul, Ramsey County, Minnesota, by 6 its City Council has caused this Bond to be executed on its behalf by the original or facsimile 7 signature of its Mayor, attested by the original or facsimile signature of its Clerk, and 8 countersigned by the original or facsimile signature of its Duector, Office of Financial Services, 9 the official seal having been omitted as pemvtted by law. 10 Date of Registration: 11 12 13 14 BOND REGISTRAR'S 15 CERTIFICATE OF 16 AI3THENTICATION 17 This Bond is one of the 18 Bonds described in the 19 Resolution mentioned 20 within. 21 22 23 24 25 Bond Registraz 26 27 28 29 30 Authorized Signature 1618661dL Registrable by: Payable at: CTI'Y OF SAINT PAUL, RAMSEY COUNTY, NIINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services 1$ 0�-�8�' ON REVERSE OF BOND Date of Pavment Not Business Day. 3 4 5 6 7 8 9 10 11 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 No Redemption. Issuance: Purpose; General Obli a� tiOh. Denominations; Exchange: Resolution. The Bonds are issuable solely as fully registered bonds in the denominations of $5,000 and integral multiples thereof of a single maturity and are exchangeable for fully registered Bonds of other authorized denominations in equal aggregate principal amounts at the principal office of the Bond Registrar, but only in the manner and subject to the lunitations provided in the Resolution. Reference is hereby made to the Resolution far a description of the rights and duties of the Bond Registraz. Copies of the Resolufion are on file in the principal office of the Bond Registrar. Transfer. This Bond is transferable by the Holder in person or by his, her or its attorney duly authorized in writing at the principal office of the Bond Registrar upon presentation and surrender hereof to the Bond Registrar, a11 subject to the terms and conditions provided in the Resolution and to reasonable regularions of the Issuer contained in any agreement with, or norice to, the Bond Registraz. Thereupon the Tssuer shall execute and the Bond Registrar shall authenticate and deliver, in exchange for this Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "bearer" or similar designation), of an authorized denomination ar denominations, in aggregate principal amount equal to the principal amount of this Bond, of the same maturity and bearing interest at the same rate. Fees unon Transfer or L,oss. Treatment of Re�istered Owner. Authentication Not Oualified Tas-Exem�pt Obligations. ABBREVIATIONS 1618661v2 16 o�-a8g ASSIGNMENT 2 For value received, the undersigned hereby sells, assigns and transfers unto 3 the within 4 Bond and does hereby irrevocably consritute and appoint 5 attorney to transfer the Bond on the books kept for the 6 registration thereof, with full power of substiturion in the premises. Dated: $ Notice: The assignor's signature to this assignment must 9 correspond with the name as it appears upon the face of 10 the within Bond in every particulaz, without alteration ar 11 any change whatever. 12 Signature Guaranxeed: 13 14 Signature(s) must be guaranteed by a national bank or hust company or by a brokerage firm 15 having a membership in one of the major stock exchanges or any other "Eligible Guarantor 16 Institurion" as defined in 17 CFR 240.Z7Ad-15(a)(2). 17 The Bond Re�straz will not effect transfer of this Bond unless the information 18 concerning the transferee requested below is provided. 19 Name and Address: F�17 21 22 23 (Include information for ali joint owners if the Bond is held by joint account.) 1618661v2 1'� b�-a8$ 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 10. Execufion. The Bonds shall be executed on behalf of the City by the signatures of its Mayor, Clerk and Director, Office of Financial Services, each with the effect noted on the forms of the Bonds, and be sealed with the seal of the City; provided, however, that the seal of the City may be a printed or photocopied facsimile; and provided fiuther that any of such signatures may be printed or photocopied facsimiles and the corporate seal may be omitted on the Bonds as permitted by law. In the event of disability or resignation or other absence of any such officer, the Bonds may be signed by the manual or facsimile signaiure of that officer who may act on behalf of such absent or disabled officer. In case any such officer whose signature or facsixnile of whose signature shall appeaz on the Bonds shali cease to be such officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for all purposes, the same as if he or she had remained in office unril delivery. 11. Authenticarion: Date of Reeistration. No Bond shall be valid or obligatory for any purpose or be entitled to any security or benefit under this resolution unless a Certificate of Authenticafion on such Bond, substanrially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registraz shall authenticate the signatures of officers of the City on each Bond by execurion of the Certificate of Authentication on the Bond and by inserting as the date of registrafion in the space provided the date on which the Bond is authenticated. For purposes of delivering the original Global Certificates to the Purchaser, the Bond Registrar sha11 insert as the date of registrafion the date of original issue, which date is March 1, 2004. The Certificate of Authenticafion so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 24 12. Re�stration: Transfer; Exchange. The City will cause to be kept at the 25 principal office of the Bond Registrar a bond register in which, subject to such reasonable 26 regulations as the Bond Registrar may prescribe, the Bond Registraz shall provide for the 27 regisiration of Bonds and the registcation of transfers of Bonds enritled to be registered or 28 transferred as herein provided. 29 30 31 32 33 34 35 36 37 38 39 40 41 42 A Global Certificate shall be registered in the name of the payee on the books of the Bond Registrar by presenting the Global Certifica#e for registration to the Bond Registrar, who will endarse his or her nazne and note the date of registration opposite the name of the payee in the certificate of registration on the Global Certificate. Thereafter a Global Certificate may be �ferred by delivery with an assignment duly executed by the Holder or his, her or its legal representative, and the City and Bond Registraz may treat the Holder as the person exclusively entitled to exercise all the rights and powers of an owner until a Global Certificate is presented with such assignment for registrafion of transfer, accompanied by assurance of the nature provided by law that the assi�unent is genuine and effective, and until such transfer is registered on said books and noted thereon by the Bond Regi straz, all subject to the terms and conditions provided in this resolution and to reasonable regulations of the City contained in any agreement with, or notice to, the Bond Regstrar. Transfer of a Global Certificate may, at the direction and expense of the City, be subject to other restricrions if required to qualify the Globai Certificates as being "in registered 1618661v2 � oy- a s g 1 form" within the meaning of Section 149(a) of the federal Intemal Revenue Code of 1986, as 2 amended. 3 If a Global Certificate is to be exchanged for one or more Replacement Bonds, all 4 of the principal amount of the Global Certificate shall be so exchanged. S Upon surrender for transfer of any Replacement Bond at the principal office of 6 the Bond Registrar, the City shall execute (if necessary), and the Bond Registrar shall 7 authenticate, insert the date of registration (as provided in paragraph 11) o� and deliver, in the 8 name of the designated transferee or transferees, one or more new Replacement Bonds of any 9 authorized denominarion or denominations of a like aggregate principal amount, having the same 10 stated maturity and interest rate, as requested by the transferor; provided, however, that no bond 11 may be registered in blank or in the name of "bearer" or snnilar designation. 12 At the oprion of the Holder of a Replacement Bond, Replacement Bonds may be 13 exchanged for Replacement Bonds of any authorized denomination or denominations of a like 14 aggregate principal amount and stated maturity, upon surrender of the Replacement Bonds to be 15 exchanged at the principal office of the Bond Registrar. Whenever any Replacement Bonds are 16 so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall 17 authenticate, insert the date of registration of, and deliver the Replacement Bonds which the 18 Holder making the exchange is entitled to receive. Global Certificates may not be exchanged for 19 Global Certificates of smaller denoruinations. 20 All Bonds surrendered upon any exchange or transfer provided for in this 21 resolution shali be promptly cancelled by the Bond Registrar and thereafter disposed of as 22 directed by the CiTy. 23 All Bonds delivered in exchange for or upon transfer of Bonds shall be valid 24 general obligations of the City evidencing the same debt, and enritled to the same benefits under 25 this resolution, as the Bonds surrendered for such exchange or transfer. 26 Every Bond presented or sunendered for transfer or �change shall be duly 27 endorsed or be accompanied by a written inshvment of transfer, in form satisfactory to the Bond 28 Registrar, duly executed by the Holder thereof or his, her or its attorney duly authorized in 29 writing. 30 The Bond Registrar may require payment of a sum sufficient to cover any tax or 31 other govemmental chazge payable in connection with the transfer or exchange of any Bond and 32 any legal or unusual costs regarding transfers and lost Bonds. 33 Transfers shall also be subject to reasonable regulations of the City contained in 34 any agreement with, or notice to, the Bond Registrar, including regulations wlrich pemut the 35 Bond Registrar to close its transfer books between record dates and payment dates. 36 13. Ri¢,hts Unon Transfer or Exchange. Each Bond delivered upon transfer of 37 or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and 38 unpaid, and to accrue, which were cartied by such other Bond. 1618661�2 i(� o�-a8s 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 14. Interest Payment: Record Date. Interest on any Glohai Certificate shall be paid as provided in the first paragraph thereof, and interest on any Replacement Bond shall be paid on each Interest Payment Date by check or draft mailed to the person in whose name the Bond is registered (the "Holder") on the regstration books of the City maintained by the Bond Regishar, and in each case at the address appearing thereon at the close of business on the fifteenth (15th) day of the calendar month preceding such Interest Payment Date (the "Regular Record Date"). Any such interest not so timely paid shall cease to be payable to the person who is the Hoider thereof as of the Regular Record Date, and shall be payable to the person who is the Holder thereof at the close of business on a date (the "Special Record Date") fiYed by the Bond Registrar whenever money becomes available for payment of the defaulted interest. Notice of the Special Record Date shall be given by the Bond Registrar to the Hoiders not less than ten (10) days prior to the Special Record Date. 15. Holders; Treahnent of Re2istered Owner• Consent of Holders. A. Por the purposes of all actions, consents and other matters affecting Holders of the Bonds, other than payments, redemptions, and purchases, the City may (but shall not be obligated to) treat as the Holder of a Bond the beneficial owner of the Bond instead of the person in whose name the Bond is registered. For that purpose, the City may ascertain the identity of the beneficial owner of the Bond by such means as the Bond Registrar in its sole discretion deems appropriate, including but not ]united to a certificate from the person in whose name the Bond is registered identifying such beneficial owner. 21 B. The City and Bond Registraz may treat the person in whose name any Bond is 22 registered as the owner of such Bond for the purpose of receiving payment of principal of and 23 premium, if any, and interest (subject to the payment provisions in paragraph 14 above) on, such 24 Bond and for all other purposes whatsoever whether ar not such Bond shall be overdue, and 25 neither the Ciry nor the Bond Registrar shall be affected by notice to the contrary. 26 27 28 29 30 31 32 33 C. Any consent, request, direcrion, approval, objecfion or other inskument to be signed and executed by the Holders may be in any number of concurrent writings of sunilaz tenar and must be signed or executed by such Holders in person or by agent appointed in writing. Proof of the execurion of any such consent, request, direction, approval, objecrion or other instrnuient or of the writing appointing any such agent and of the ownership of Bonds, if made in the following manner, shall be sufficient for any of the purposes of this resolution, and shall be conclusive in favor of the City with regatd to any acrion taken by it under such request or other instrument, namely: 34 (1) The fact and date of the execution by any person of any such writing may 35 be proved by the certificate of any officer in any jurisdiction who by law has power to 36 take acknowledgments within such jurisdicfion that the person signing such writing 37 acla�owledged befare him or her the execution thereof, or by an affidavit of any witness 38 to such execution. 39 (2) Subject to the provisions of subparagraph (A) above, the fact of the 40 ownership by any person of Bonds and the amounts and numbers of such Bonds, and the 41 date of the holding of the same, may be proved by reference to the bond register. i6is66i�2 20 ����� 1 16. Deliverv: Application of Proceeds. The Global Certificates when so 2 prepared and executed shall be delivered by the Director, Office of Financial Services, to the 3 Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the 4 proper application thereof. 5 17. Fund and Account. There aze hereby created a special account to be 6 designated the "Refunding AccounP', to be admiuistered and maintained by the City Treasurer as 7 a bookkeeping account sepazate and apart from all other accounts maintained in the official 8 financial records of the City. There has been heretofore created and established the General Debt 9 Service Fund (numbered 960, herein the "Fund"). The Fund and Refunding Account shali each 10 be maintained in the manner herein specified until all of the Bonds and the interest thereon have 11 been fully paid. 12 (i) Refundin� Account. To the Refunding Account there shall be 13 credited the proceeds of the sale of the Bonds, less accrued interest received 14 thereon. From the Refunding Account there shall be paid a11 costs and expenses 15 of issuing the Bonds, and other proceeds shall be used in paying the principal of 16 the Refunded Bonds and the interest thereon upon their redemption on April 15, 17 2004. The moneys in the Refunding Account shall be used solely for the 18 purposes herein set forth and for no other purpose. Any excess in the Refunding 19 Account a$er the payment of the Refunded Bonds and the costs of issuing the 20 Bonds shall be deposited in the Fund. 21 (ii) Fund. There is hereby pledged and there shall be credited to the 22 Fund, to a special sinking fund account which is hereby created and established 23 therein for the payment of the Bonds: (a) all accrued interest received upon 24 delivery of the Bonds; (b) any collecrions of all taxes which are herein levied for 25 the payment of the Bonds and interest thereon as provided in paragraph 18; (c) all 26 funds remaining in the Refunding Account after completion of the Refunding and 27 payment of the costs thereof; (d) amounts remaining on April 16, 2004, in the 28 debt service account established far the Refunded Bonds, and all receipts after 29 April 16, 2004, of taYes levied for the payment of the Refunded Bonds; (e) ali 30 investment eanvugs on moneys held in said speciai account in the Fund; and (f� 31 any and all other moneys which are properly a�ailable and are appropriated by the 32 governing body of the City to said special account in the Fund. 33 Said special account created in the Fund shall be used solely to pay the principal and 34 interest and any premiums for redemption of the Bonds and any other bonds of the City 35 heretofore or hereafter issued by the City and made payable from said special account in the 36 Fund as provided by law, or to pay any rebate due to the United States. No portion of the 37 proceeds of the Bonds shall be used directly or indirectly to acquire lugher yielding investments 38 or to replace funds which were used directly or indirectly to acquire higher yielding invesrinents, 39 except (1) for a reasonable temporary period until such proceeds are needed for the purpose far 40 which the Bonds were issued, and (2) in addition to the above in an amount not greater than 41 $100,000. To this effect, any proceeds of the Bonds and any sums from time to time held in the 1618661v2 2 j / ,:: 1 Refunding Account or said special account in the Fund (or any other City account which will be 2 used to pay principal or interest to become due on the bonds payable therefrom) in excess of 3 amounts which under then-applicable federal arbitrage regulations may be invested without 4 regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions 5 nnposed by said arbitrage rea lations on such investments after taking into account any 6 applicable "temporary periods" or "minor portion" made available under the federal arbitrage 7 regularions. In addition, the proceeds of the Bonds and money in the Refunding Account or 8 Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the 9 United States or any agency or instrumentality thereof if and to the extent that such investment 10 would cause the Bonds to be "federaliy guazanteed" within the meaning of Section 149(b) of the 11 federal Tnternal Revenue Code of 1986, as amended (the "Code"). 12 18. TaY Levy; Covera�e Test. To provide moneys for payment of the 13 principal and interest on the Bonds there is hereby levied upon all of the tasable property in the 14 City a direct annual ad valorem tax which shall be spread upon the tax rolls and collected with 15 and as part of other general property t�es in the City for the years and in the amounts as 16 follows: Year of Tas Lew Year of Ta�c Collection Amount 2003* 2004 2004* 2005 17 18 � heretofore levied or provided from other availabie City funds $1,799,228* 1,754,288 19 The t� levies are such that if collected in full they, together with estimated 20 collections of any other revenues herein pledged for the payment of the Bonds, will produce at 21 least five percent (5%) in excess of the amount needed to meet when due the principal and 22 interest payments on the Bonds. The tax levies sha11 be irrepealable so long as any of the Bonds 23 are outstanding and unpaid, provided that the City reserves the right and power to reduce the 24 levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, 25 Subdivision 3. 26 19. General Obligation P1edQe. For the prompt and full payment of the 27 principal and interest on the Bonds, as the same respectively become due, the full faith, credit 28 and taxing powers of the City shall be and are hereby inevocably pledged. If the balance in the 29 Fund (as defined in paragraph 17 hereo fl Is ever insufficient to pa}� a11 principal and interest then 30 due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds 31 of the City which are available for such purpose, including the general fund of the City, and such 32 other funds may be reimbursed with or without interest from the Fund when a sufficient balance 33 is a�ailable therein. 34 20. Refunded Bonds; Security. Until retirement of the Refunded Bonds, a11 35 provisions heretofore made for the security thereof shall be observed by the City and all of its 36 officers and agents. 1618661v2 'L2 py-aS8 1 21. Redemption of Refunded Bonds. The Refunded Bonds shall be redeemed 2 and prepaid on April 15, 2004, all in accordance with the terms and conditions set forth in the 3 Norice of Call for Redemption altached hereto as E�ibit B, which terms and condirions are 4 hereby approved and incorporated herein by reference. A Notice of Call for Redemption in 5 substantially such form shall be given to the Bond Registrar for the Refunded Bonds, who shall 6 maii nofice of redemption of the Refunded Bonds not less than tlurty (30) days prior to the 7 redemption date. � 22. Certificate of Reeistrafion. The D'uector, Office of Financial Services, is 9 hereby directed to file a certified copy of this resolution with the officer of Ramsey County, 10 Minnesota, perfoiiuiug the funcrions of the county auditor (the "County Auditor"), together with 11 such other information as the County Auditor shall require, and to obtain tUe County Auditor's 12 certificate that the Bonds have been entered in the County Auditor's Bond Register, and that the 13 tax levy required by law has been made. 14 23. Records and Certificates. The officers of the City are hereby authorized 1 S and d'uected to prepare and fiunish to the Purchaser, and to the attorneys approving the legality 16 of the issuance of the Bonds, certified copies of all proceedings and records of the City relating 17 to the Bonds and to the financial condition and affairs of the City, and such other affidavits, 18 certificates and information as are required Lo show the facts relaring to the legality and 19 marketability of the Bonds as the same appear from the books and records under their custody 20 and control or as otherwise l�town to them, and all such certified copies, certificates and 21 affidavits, including any heretofore furnished, shall be deemed representarions of the City as to 22 the facts recited therein. 23 24. Neearive Covenants as to Use ofProceeds and 1996 Improvements. The 24 City hereby covenants not to use the proceeds of the Bonds or to use the improvements financed 25 by the Refunded Bonds (the "1996 Improvements"), or to cause or permit them to be used, or to 26 enter into any deferred payment arrangements for the cost of the 1996 Improvements, in such a 27 manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 28 and 141 thtough 150 of the Code. The City reasonably expects that no actions will be taken over 29 the term of the Bonds that would cause them to be private acrivity bonds, and the average term of 30 the Bonds is ttot longer than reasonably necessary for the governmental purpose of the issue. 31 The City hereby covenants not to use the proceeds of the Bonds in such a manner as to cause the 32 Bonds to be "hedge bonds" within the meaning of Section 149(g) ofthe Code. 33 25. Tax-Exempt Status of the Bonds: Rebate: Elections. The City shall 34 comply with requirements necessary under the Code to establish and maintain the exclusion from 35 gross income under Section 103 of the Code of the interest on the Bonds, including without 36 limitation requirements relating to temporary periods for investments, limitations on amounts 37 invested at a yield greater than the yield on the Bonds, and the rebate of excess inveshnent 38 earnings to the United States. 39 If any elections aze available now or hereafter with respect to azbitrage or rebate 40 matters relating to the Bonds, the Mayor, Clerk, Treasurer and D'uector, Office of Financial 41 Services, or any of them, aze hereby authorized and directed to make such elections as they deem 1618661dL 23 oy-a�S necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, and shall be deemed and treated as, elections of the City. 3 26. No Desienation of Oualified Tax-Exempt Obli ations. The Bonds, 4 together with other obligations issued by the City in 2004, exceed in amount those which may be 5 qualified as"qualified tax-exempt obligarions" within the meaning of Secrion 265(b)(3) of the 6 Code, and hence are not designated for such purpose. 7 27. Letter of Renresentarions. The Letter of Representations for the Bonds is 8 hereby confumed to be the Blanket Issuer Letter of Representations dated Apri110, 1996, by the 9 City and received and accepted by The Depository Trust Company. So long as The Depository 10 Trust Company is the Depository or it or its nominee is the Holder of any Global Certificate, the 11 City shall comply with the provisions of the Letter of Representations, as it may be amended or 12 supplemented by the City from time to rime with the agreement or consent of The Depository 13 Trust Company. 14 28. Neeotiated Sale. The City has retained Springsted Incorporated as an 15 independent financial advisor, and the City has heretofore deternuned, and hereby determines, to 16 sell the Bonds by private negotiation, all as provided by Minnesota Statutes, Secrion 475.60, 17 Subdivision 2(9). 18 29. Confinuing Disclosure. The City is an obligated person with respect to the 19 Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), 20 promuigated by the Securifies and Exchange Commission (the "Commission") pursuant to the 21 Securiries Exchange Act of 1934, as amended, and a Continuing Disclosure Undertalflng (the 22 "Undertaking") hereinafter described, to: 23 A. Provide or cause to be provided to each nationally recognized municipal 24 securities information repository ("NRMSItt") and to the zppropriate state information 25 depository ("SID"), if any, for the State of Minuesota, in each case as designated by the 26 Commission in accordance with the Rule, certaiu annual financial information and 27 operating data in accordance with the Undertakiug, The City reserves the right to modify 28 from time to time the terms of the Undertaking as provided therein. 29 B. Provide or cause to be provided, in a timely manner, to (i) each NRM5IR 30 or to the Municipal Securities Rulemaking Board ("MSRB") and (ii) the SID, nofice of 31 the occurrence of certain material events with respect to the Bonds in accordance with the 32 Undertaking. 33 C. Provide or cause to be provided, in a timely manner, to (i) each NRMSIR 34 or to the MSRB and (ii) the SID, notice of a failure by the City to provide the annual 35 finaneial information with respect to the City described in the Undertaking. 36 The City agrees that its covenants pursuant to the Rule set forth in this paragraph 37 29 aud in the Undertaking aze intended to be for the benefit of the Holders of the Bonds and shall 38 be enforceable on behalf of such Holders; provided that the right to enforce the provisions of 39 these covenants shall be limited to a right to obtain specific enforcement of the City's obligarions 40 under the covenants. i6ia6ei� 24 �{-a�� 1 The Mayor and Director, Office of Financial5ervices, or any other officers of the 2 City authorized to act in thelr stead (the "Officers"), are hereby authorized and directed to 3 execute on behalf of the City the Undertaking in substantially the form presented to the City 4 Council, subject to such modificarions thereof or additions thereto as aze (i) consistent with the 5 requirements under the Rule, (ii) required by the Purchaser, and (rii) acceptable to the Officers. 6 30. Severabilitv. If any section, pazagaph or provision of this resolution 7 shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of 8 such section, paragraph or provision sha11 not affect any of the remaining provisions of this 9 resolution. 10 3 L Aeadines. Headings in this resolurion aze included for convenience of 11 reference only and are not a part hereof, and shall not limit or define the meaning of any 12 provision hereof. Adopted by Council: Date /�R rGG� l o� a QO�- Adoption Certified by Council Secretary Requested b De rtment o� By: Form Approved b City Attomey � By: �i�$�i_ . LC✓.�16 1618661v2 25 �/- a88' NOTICE OF CALL FOR REDEMPTION � ..��: :. $3,295,000 OF Tf� GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS, SERIES 1996A CTTY OF SAINT PAUL RAMSEY COLTNTY MINNESOTA NOTICE IS HEREBY GIVEN that by order of the City Council of the City of Saint Paul, Ramsey County, Minnesota, there have been called for redemption and prepayment on Apri115, 2004, outstanding bonds of the City designated as General Obligation Capital Improvement Bonds, Series 1996A, bearing a date of original issue of April 1, 1996, having stated maturity dates in the yeazs set forth below, bearing interest at the rates per annum set forth below for such maturity years, bearing the CU5IP numbers set forth below for such maturity years and totaling $3,295,000 in principal amount: Maturity Yeaz 2005 2006 Principal Amount Interest Rate CUSIP Number $1,625,000 1,670,000 4.80% 4.90 792880 K88 792880 K96 The entire outstanding amount of the issue mafiiing after 2004 is being called. The bonds aze being called at a price of par plus accrued interest to April 15, 2004, on which date ail interest on said bonds will cease to accrue. Holders of the bonds hereby called for redemption aze requested to present their bonds for payment at the office of the Treasurer of the City of Saint Paul, in Saint Paul, Minnesota, on or before April 15, 2004. Dated BY ORDER OF THE CITY COUNCIL City Clerk Additional information may be obtained from: �Il.� 1499959V2 B-1 � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Gr� Sh� t� �� DepartmenHoffiee/council: Date Initiated: � FS Froaac;at serv;«s CoMact Person & Phone: Tadd Huriey 266E837 muai ce OII �annna-oa 25-PEB-04 �/ Assign Number For Routing Order Green Sheet NO: 3012419 0 an 'a 1 " ancial S rvi e artne t Direc[or z a �c � e�; 3 Attorn 4 r' � rI 5 oanci � �� •� 6 k e � Total # of Signature Pages _(Clip All Locations for Signature) This resolution accepts the winaing proposal and awards the bid fox the $3,345,000 G.O. Capihl Improvement Refunding Bonds, Series 2004D. Tiils is a competitive bond sale and the awazd is going to the bidder found most advantageous (Iowest cost) to the City, Recommendatlons: Approve (A) or Planning Commission CIB Committee Civil SeNce Commission 1. Has this personlfirm ever worked under a contract for this departrnent? Yes No 2. Has this person/firm ever been a city employee? Yes No 3. Does this person/firm possess a skill not normally possessed by any current ciry empioyee? Yes No Explain ail yes answers on separate sheet and attach to green sheet INtiating Problem, Issues, Opportunity (Who, What, Whe�, Where, Why): The bonds aze for the purpose of refunding the 1996A G.O. Capital Improvement Bonds. Advantages If Approved: Financing will be available for the CIB refunding. DisadvaMages If Approved: None. Disadvantages If Not Approved: Funds needed for CIB refunding will not be available. i otai qmount ot 3345000 Trensaction: Fundin57 Source: Cos}lRevenue Budgeted: y Activity Number. Financial Infortnation: (E�cplain) o�-as$ WHEREAS, the City has determined to adjust the principal amount by a $ increase/decrease: j\ NOW, TT�REFORE, BE TT RESOLVED by the Council of the City of Saint 4 l�ul, Mimiesota, as follows: 6 (the "�rc 7 Bonds, S`@ 8 Terms of ] 9 the Bonds 10 11 12 13 14 determined 1. Acceptance of Pro�osal. The proposal of ;r") to purchase $3,345,000 General Obligarion Capital Improvement Refunding 2004D, of the City (the "Bonds", or individually a"Bond"), in accordance with the �osal for the bond sale, at the rates of interest set forth hereinafter, and to pay for sum of $ , plus interest accrued to settlement, is hereby found, declared to be the most favorable proposal received and is hereby accepted for Bonds in the p' ipal amount of $ for a purchase price of $ , and the Bonds aze hereby warded to the Purchaser. The Director, Office of Financial Services, or his designee, is directe o retain the deposit of the Purchaser and to forthwith return to the others making proposals the' ood faith checks or drafts. 15 16 17 18 19 20 21 22 ;23 2. Tit1�,; Original Tssue Date• Denominations• Maturities. The Bonds shall be titled "General Obligation ital Improvement Refunding Bonds, Series 2004D", shall be dated March 1, 2004, as the date of 'ginal issue and shall be issued forthwith on or after such date as fully registered bonds. The Bon shall be numbered from R-1 upward Global Certificates shall each be in the denomination of the rire principal amount mahxring on a single date, or, if a portion of said principal amount is pr aid, said principal amount less the prepayment. Replacement Bonds, if issued as provid in paragraph 6, shali be in the denomination of $5,000 each or in any integral mulriple thereof o single mariarity. The Bonds shall mature on March 1 in the years and amounts as follows: Year 2005 2006 24 25 26 27 28 29 30 31 32 The above schedule represents an increa amounts of $ in 2005 and $ in from the proposed maturity 3. Puruose; Finding. The Bonds shall provi funds for a current refunding (the "Refunding") of the Refunded Bonds. The total cost of the R ding, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estima to be at least equal to the amount of the Bonds. It is hereby found, deternvned and declared pursuant to Minnesota Statutes, Sec6on 475.67, and is necessary or de debt service cost to the City. the Refunding is �le for the reduction of 33 4. Interest. The Bonds shall bear interest payable semiannc 34 and September 1 of each year (each, an"Interest Payment Date"), commencing 35 2004, calculated on the basis of a 360-day year of twelve 30-day months, at the 36 per annum set forth opposite the maturity years as follows: Amount $1,680,000 , 1,665,000 on March 1 ember l, e�,tive rates 1618661v2 o�-as S Maturitv Year 2005 2006 2 C! 9 10 11 12 13 14 15 16 17 Interest Rate % 5. Descrivtion of the Global Certificates and Global Book-Entry Svstem. Upon heir original issuance the Bonds will be issued in the form of a singie Giobal Certificate for eacYc�maturity, deposited with the Depository or its agent by the Purchaser and immobilized as provid m paragraph 6. No beneficial owners of interests in the Bonds wili receive certificates resenting their respecrive interests in the Bonds except as provided in pazagraph 6. Except as so p�OVided, during the term of the Bonds, beneficial ownersiup (and subsequent transfers of benef�cial ownership) of interests in the Global Certi$cates will be reflected by book entries made on the.�ecords of the Depository and its Participants and other banks, brokers, and dealers participating i the National5ystem. The Depository's book entries of beneficial ownership interests are thonzed to be in increments of $5,000 of principal of the Bonds, but not smaller increments, de ite the larger authorized denominarions of the Global Ceztificates. Payment of principal of, pr um, if any, and interest on the Global Ceztificates will be made to the Bond Registrar as paying ent, and in turn by the Bond Registraz to the Depository or its nominee as registered owner of Global Certificates, and the Depository according to the laws and rules governing it will receive�id forward payments on behalf of the beneficial owners of the Global Certificates. � 18 Payment of principal of, premiu 19 City's discrefion be made by such other 20 Holder of a Global Certificate. 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 any, and interest on a Global Certificate may in the od of transferring funds as may be requested by the 6. Immobilization of Global C`artificates bv the De�ositorv' Successar D ository: Replacement Bonds. Pursuant to the re est of the Purchaser to the Depository, which request is required by the Terms of Froposal, ' ediately upon the original delivery of the Bonds the Purchaser will deposit the Global Certifica s representing all of the Bonds with the Depository ar its agent. The Global Certificates shall b' typewritten form ar otherwise as acceptable to the Depository, shall be registered in the name o the Depository or its nominee and shall be held 'unmobilized from circulation at the offices of e Depository or its agent on behalFof the Purchaser and subsequent bondowners. The Deposit or its nominee will be the sole holder of recard of the Global Certificates and no investor or o party purchasing, selling or otherwise transferring ownership of interests in any Bond is to recei , hold or deliver any bond certificates so long as the Depository holds the Global Certificates �imobilized from circulation, except as provided below in this paragraph and in paragraph 12� Certificates evidencing the Bonds may not after their original delivery exchanged except: (i) Upon registration of transfer of ownership of a Global provided in pazagraph 12, 37 (ii) To any successor of the Depository (or its nominee) or any sub; 38 depository (a "subs6tute depository") designated pursuant to clause (iii) of this transferred or as 1618661v2 oy-a�� prior to the Special Record Date. The grincipal of and premium, if any, and interest on this Bond are payable in lawful money of the LTnited Stafes of America. 4 reu 5 'c 6 0 7 date 8 holi< 9 date 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Date of Pavment Not Business Day. If the date for payment of the principal of, un, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on bauking institutions in the City of New York, New York, or the city where the principal of the Bond Registrar is located are authorized by law or executive order to close, then the �r such payment shali be the next succeeding day which is not a Saturday, Sunday, legal y or a day on wIuch such bankiug institutions aze authorized to close, and payment on such ia�l haue the same force and effect as if made on the nominal date of payment. � No Redemntion. The Bonds of this issue (the "Bonds") are not subject to redemption�'�nd prepayment at the opfion of the Issuer prior to their maturity. issuance• Pi ose• General Obli arion. This Bond is one of an issue in the total principal amount f$3,345,000, all of tike date of original issue and tenor, except as to number, maturity, interest rat� and denomination, which Bond has been issued pursuant to and in full conformity with the nstiturion and laws of the State of Miuuesota, including particularly Laws of Minnesota for 1971, hapter 773, as amended, and the Charter of the Issuer, and pursuant to a resolufion adopted by the ity Council of the Issuer on March 10, 2004 (the "Resolution"), £or the purpose of providing m ey to finance the current refunding of the City's General Obligation Capital Improvexnent Bonds, eries 1996A. This Bond is payable out of the General Debt Service Fund of the Issuer. TYu Bond constitutes a general obligarion of the Issuer, and to provide moneys for the prompt full payment of its principal, premium, if any, and interest when the same become due, the ful faith and credit and taxing powers of the Issuer haue been and are hereby irrevocably pledged. Denominations• Exchan '�• Resolution. The Bonds are issuable originally only as Global Certificates in the denomination o e enrire principal axnount of the issue mahiruig on a single date. Global Certificates are not exc ngeable for fully registered bonds of smaller denominations except in exchange for Replac ent Bonds if then auailable. Replacement Bonds, if made auailable as provided below, ar issuable solely as fully registered bonds in the denominations of $5,000 and integral multiples eof of a single maturity and are exchangeable for fully registered Bonds of other authorized deno ' ations in equal aggregate principal amounts at the principal office of the Bond Registraz, ut only in the manner and subject to the limitations provided in the Resoludon. Reference is h by made to the Resolution for a description of the rights and duties of the Bond Registraz. Copies of the Resolurion are on file in the principal office of the Bond Registrar. 35 36 that: 37 38 39 Replacement Bonds. Replacement Bonds may (a) the Depository shall resign or discontinue its se� only if the Issuer is unable to locate a substitute depository witY following the resignation or determination of non-eligibility, or by the Issuer in the event for the Bonds, and o (2) months 1618661v2 o�l- a�8 16. Delivery: Applicafion of Proceeds. The Global Certificates when so 2 prepared and executed shall be delivered by the Director, Office of Financial Services, to the 3 urchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the 4 pr�per application thereof. 5 �, 17. Fund and Account. There aze hereby created a special account to be 6 designa`ted the "Refunding AccounY', to be adwivistered and maintained by the City Treasurer as 7 a bookkeeping account separate and apart from all othet accounts maintained in the official 8 financial ree�ords of the City. There has been heretofore created and established the General Debt 9 Service Fund�numbered 960, herein the "Fund"). The Fund and Refunding Account sha11 each 10 be maintained in the manner herein specified until all of the Bonds and the interest thereon ha�e 11 been fully paid. � 12 �(i) Refunding Account. To the Refunding Account there shall be 13 credite the proceeds of the sale of the Bonds, less accrued interest received 14 thereon, d less any amount paid for the Bonds in excess of $ . From 15 the Refun ' g Account there shall be pa3d all costs and expenses of issuing the 16 Bonds, and er proceeds shall be used in paying the principal of the Refunded 17 Bonds and the ' terest thereon upon their redemption on April 15, 2004. The 18 moneys in the R ding Account shall be used solely for the purposes herein set 19 forth and for no o er purpose. Any excess in the Refunding Account after the 20 payment of the Re ed Bonds and the costs of issuing the Bonds shall be 21 deposited in the Fund. 22 (ii) Fund. Ther is hereby pledged and there shall be credited to the 23 Fund, to a special sinking account which is hereby created and established 24 therein for the payment of the onds: (a) all accrued interest received upon 25 delivery of the Bonds; (b) all fun paid for the Bonds in excess of $ 26 (c) any collecrions of all taxes wlu are herein levied for the payment of the 27 Bonds and interest thereon as provid in paragraph 18; (d) a11 funds remainiug in 28 the Refunding Account after complerio of the Refunding and payment of the 29 costs thereof; (e) amounts remaiiung on ri116, 2004, in the debt service 30 account established for the Refunded Bon and all receipts after April 16, 2004, 31 of taaces levied for the payment of the Refun Bonds; (� all inveshnent eamings 32 on moneys held in said special account in the d; and (g) any and all other 33 moneys which are properly a�ailable and are ap opriated by the governiug body 34 of the City to said special account in the Fund. 35 Said special account created in the Fund shall be used solely o pay the principal and 36 interest and any premiums for redemption of the Bonds and any other onds of the City 37 heretofore or hereafter issued by the City and made payable from said ecial account in the 38 Fund as provided by law, or to pay any rebate due to the United States. portion of the 39 proceeds ofthe Bonds shali be used directly or indirectlq to acquire higher 'elding investments 40 or to replace funds which were used directly or indirectly to acquire higher lding investments, 41 except (1) for a reasonable temporary period until such proceeds are needed fo the purpose for 42 which the Bonds were issued, and (2) in addirion to the above in an amount not eater than 43 $100,000. To this effect, any proceeds of the Bonds and any sums from time to f e held in the 1618661v2 2� oy- a�� 7 8 9 10 il 12 13 14 15 16 Refunding Account or said special account in the Fund (or any other City account which will be used to pay principal or interest to become due on the bonds payable therefrom) in excess of amounts which under then-applicable federal arbilrage regulations may be invested rvithout egazd as to yield shall not be invested at a yield in excess of the applicable yield restrictions osed by said arbitrage regulations on such inveshnents after taking into account any app 'cable "temporary periods" or "minor portion" made available under the federal arbitrage regul �ons. In addition, the proceeds of the Bonds and money in the Refunding Account or Fund sh 1 not be invested in obligations or deposits issued by, guazanteed by or insured by the United St es ar any agency or instrlunentality thereof if and to the extent that such investment would cause e Bonds to be "federally guazanteed" within tlze meaning of Section 149(b) of the federal Intern Revenue Code of 1986, as amended (the "Code"). 18.\ principal and intere; City a direct annual and as part of other follows: Year of Taac Levy 2003* 2004 Tax Levv: Coveraee Test. To provide moneys for payment of the �n the Bonds there is hereby levied upon all of the ta�cable properry in the l alorem ta�c which shall be spread upon the tax rolls and collected with ne property taYes in the City for the years and in the amounts as 17 18 � heretofore levied or provided from other 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 Year of Taz Collection 2004* 2005 City funds Amount The tas levies are such that if col cted in full they, together with estimated collecfions of any other revenues herein pledged the payment of the Bonds, will produce at least five percent (S%) %n excess of the amount nee d to meet when due the principal and interest payments on the Bonds. The taY levies shall b irrepealable so long as any of the Bonds aze outstanding and unpaid, provided that the City rese s the right and power to reduce the levies in fhe manner and to the extent pernutted by Minne ota Statutes, Section 475.61, Subdivision 3. 19. General Obli�ation P1edQe. For the pro t and full payment of the principal and interest on the Bonds, as the same respectively bec e due, the full faith, credit and taYing powers of the City sha11 be and are hereby irrevocably edged. If the balance in the Fund (as defined in paragraph 17 hereo� is ever insufficient to pay principal and interest then due on the Bonds payable therefrom, the deficiency shall be promptly aid out of any other funds of the City which are available for such purpose, including the generat d of the City, and such other funds may be reimbursed with or without interest from the Fund wh a sufficient balance is available therein. 34 20. Refunded Bonds; Securitv. Until retirement o£the Re ed Bonds, all 35 provisions heretofore made for the security thereof shall be observed by the City d a11 of its 36 officers and agents. 1618661v2 22