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06-272A M E N D E D CouncilFile# ��� GreenSheet# 3029930 RESOLUTION Presented By Referred To OF SAINT PAUL, M..INNESOTA , � � Committee: Date 2 ACCEPTING PROPOSAL ON SALE OF 3 $11,000,000 GENERAI, OBLIGATION CAPITAL IMPROVEMENT 4 BONDS, SERIES 2006A, 5 PROVIDING FOR THEIR ISSUANCE, AND LEVYING 6 A TAX FOR THE PAYMENT THEREOF WHEREAS, the Director, Office of Financial Services, has presented proposals received for the sale of $11,000,000 General Obligation Capital Improvement Bonds, Series 2006A (the "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 Proposal at the offices of Springsted Incorporated at 10:00 A.M., 12 Central Time, this same day; and 13 WHEREAS, the Director, Office of Financial Services, has advised this Council 14 that the proposal of _�T �? k{2. `� ��' � R A�! was found to be the 15 most advantageous and has recommended that said proposal be accepted; and 16 WHEREAS, the proceeds of the Bonds will fmance certain capital improvements, 17 for which the City is proceeding pursuant to its Charter and Laws of Minnesota for 1971, 18 Chapter 773, as amended, with any excess to be used for any other purpose permitted by law; 19 and 20 WHEREAS, the City has heretofore issued registered obligations in certificated 21 form, and incurs substantial costs associated with their printing and issuance, and substanfial 22 continuing transaction costs relating to their payment, transfer and exchange; and 23 WHEREAS, the City has determined that significant savings in transaction costs 24 will result from issuing bonds in "global book-enriy form", by which bonds aze issued in 25 certificated form in large denominations, registered on the books of the City in the name of a 26 depository or its nominee, and held in safekeeping and immobilized by such depository, and such 27 depository as part of the computerized national securities clearance and settlement system (the 28 "National System") registers transfers of ownership interests in the bonds by making 29 computerized book entries on its own books and distributes payments on the bonds to its 30 Participants shown on its books as the owners of such interests; and such Participants and other 31 banks, brokers and dealers participating in the National System will do likewise (not as agents of 32 the City) if not the beneficial owners of the bonds; and 1880376v2 7 1 WE3EREAS, "Participants" means those financial institutions for whom the 2 Depository effects book-entry transfers and pledges of securities deposited and immobilized with 3 the Depository; and 4 WHEREAS, The Depository Trust Company, a limited purpose trust comgany 5 organized under the laws of the State of New York, or any of its successors or successors to its 6 funcfions hereunder (the 'Depository"), will act as such depository with respect to the Bonds 7 except as set forth below, and the City has herefofore delivered a letfer of representations (the 8 "Letter of Representa6ons") setting forth various matters xelating to the Depository and its role 9 with respect to the Bonds; and i� WIIEREAS, the City will deIiver the Bonds in the form of one certificate per ll maYurity, each representing fhe entire principal amount of the Bonds due on a particular maturity 12 date (each a"Globai Certificate"), which single certificate per maturity may be transferred on the 13 City's bond register as required by the Uniform Commercial Code, but not exchanged for smaller 14 denominations unless the City determines to issue Replacement Bonds as provided below; and 15 WHEREAS, the City will be able to replace the Depository or under certain 16 circumstances to abandon the "global book-entry form" by permitting the Global Certificates to 17 be exchanged for smalier denominations typical of ordinary bonds registered on the City's bond 18 register; and "Replacement Bonds" means the certificates representing the Bonds so 19 authenticated and deIivered by the Bond Regish pursuant to paragraphs 6 and 12 hereof; and 20 WHEREAS, "Holder" as used herein means the person in whose name a Bond is 21 registered on the registration books of the City maintained by the registrar appointed as provided 22 in paragraph 8(the "Bond Registraz"); and 23 WHEREAS, Rule 15c2-12 of the Securities and Exchange Commission prohibits 24 "participating undenvriters" from purchasing or selling the Bonds unless the City undertakes to 25 provide certain continuing disclosure with respect to the Bonds; and 26 WHEREAS, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2(9), 27 public sale requirements do not apply to the Bonds if the City retains an independent fmancial 28 advisor and determines to sell the Bonds by private negoriation, and the City has instead 29 authorized a competitive sale without publication of notice thereof as a form of private 30 negotiation;and 31 Wf�REAS, proposals for the Bonds have been solicited by Springsted 32 Incorporated pursuant to an Official Statement and Terms of Proposal therein: 33 NOW, THEREFORE, BE TT RESOLVED by the Council of the City of Saint 34 Paul, Minnesota, as follows: 35 1. Accentance of Pronosal. The proposal of Piper Jaf&ay & Co. (the 3b "Purchaser") fo purchase $11,000,000 General Obligation Capital Improvement Bonds, 37 Series 2006A, of the City (the "Bonds", or individuaIly a"Bond"), in accordance with the Terms 38 of Proposal for the bond sale, at the rates of interest set forth hereinafter, and to pay for the 39 Bonds the sum of $11,123,883.20, plus interest accrued to settlement, is hereby found, 1880376v3 ,Z � � 1 determined and declared to be the most favorable proposal received and is hereby accepted, and 2 the Bonds are hereby awarded to the Purchaser. The Director, Office of Financial Services, or 3 his designee, is directed to retain the deposit of the Purchaser and to forthwith return to the others 4 making proposals their good faith checks or drafts. 5 2. Title: Orig_inal Issue Date; Denoinivations; Maturities. The Bonds shall be 6 titled "General Obligation Capital Improvement Bonds, Series 2005A", shall be dated April 1, 7 2006, as the date of original issue and shall be issued forthwith on or after such date as fully 8 rea stered bonds. The Bonds shall be numbered from R-1 upwazd. Global Certificates shall each 9 be in the denomination of the entire principal amount maturing on a single date, or, if a portion 10 of said principal amount is prepaid, said principal amount less the prepayment. Replacement 11 Bonds, if issued as provided in paragraph 6, shall be in the denomination of $5,000 each or in 12 any inte�al multiple thereof of a single maturity. The Bonds shall mature on April 1 and 13 October 1 on the dates and in the amounts as follows: Date 14 15 16 17 18 19 20 21 April 1, 2007 October 1, 200� April 1, 2008 October l, 2008 April 1, 2009 October 1, 2009 Apri11,2010 October 1, 2010 April 1, 2011 October 1, 2011 Amount $485,000 500,000 510,000 >20,000 525,000 535,000 545,000 555,000 565,000 575,000 Date April 1, 2012 October 1, 2012 April 1, 2013 October 1, 2013 April 1, 2014 October 1, 2014 April 1, 2015 October 1, 2015 Apri11,2016 Amount $585,000 595,000 605,000 620,000 630,000 645,000 655,000 670,000 680,000 3. Purpose. The Bonds shall provide funds for the construction of the capital improvements in the City's 2006 capital improvement budget (the "Improvements"). The proceeds of the Bonds shall be deposited and used as provided in paragraph 17, for the purpose described by Laws of Minnesota for 1971, Chapter 773, as amended, and any excess moneys shall be devoted to any other purpose permitted by law. The total cost of the Improvements, which shall include all costs enumerated in Minnesota Statutes, Section 475.65, is estimated to be at least equal to the amount of the Bonds. Work on the Improvements shall proceed with due diligence to completion. 22 4. Interest. The Bonds shall bear interest payable semiannually on April 1 23 and October 1 of each year (each, an"Interest Payment Date"), commencing October 1, 2006, 24 calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per 25 annum set forth opposite the mahxrity dates as follows: 1880376v2 Maturitv Date April l, 2007 October l, 2007 April l, 2008 October 1, 2008 Apri11,2009 Ociober 1, 2004 ApriT1,2010 October 1, 2010 April 1, 2011 October 1, 2011 Interest Rate 4.00% 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 Maturity Date April l, 2012 October 1, 2012 Apri11,2013 October 1, 2013 Apri11,2014 October 1, 2014 April 1, 2015 October 1, 2015 April I, 2016 Interest Rate 4.00% 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 4.00 1 5. Descrirotion of the Global Certificates and Global Book-Entr�Svstem. 2 Upon their original issuance the Bonds wilI be issued in the form of a single Global Certificate 3 for each maturity, deposited with the Depository or its agent by the Purchaser and immobilized 4 as provided in paragraph 6. No beneficial owners of interests in the Bonds will receive 5 certificates representing their respective interests in the Bonds except as provided in pazagraph 6. 6 Except as so provided, during the term of the Bonds, beneficial ownership (and subsequent 7 transfers of beneficial ownership) of interests in the Global Certificates wi11 be reflected by book 8 enhies made on the records of the Depository and its Participants and other banks, brokers, and 9 dealers participating in the National System. The Depository's book entries of beneficial 10 ownership interests are authorized to be in inerements of $5,000 of principal of the Bonds, but 11 not smaller increments, despite the larger authorized denominations of the Global Certificates. 12 Payxnent of principal of, premium, if any, and interest on the Global Certificates will be made to 13 the Bond Registraz as paying agent, and in turn by the Bond Registrar to the Depository or its 14 nominee as registered owner of the Global Certificates, and the Depository according to the laws 15 and rules governing it will receive and forward payments on behalf of the beneficial owners of 16 the Global Certificates. 17 Payment of principal of, premiuxn, if any, and interest on a Global Certificate may in the 18 City's discretion be made by such other method of transferring funds as may be requested by the 19 Holder of a GIobal Certificate. 20 21 22 23 24 25 26 27 28 29 30 31 6. Immobilizarion of Global Cextificates by the Deuositorv� Successor Depositor�Replacement 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 G1obal Certificates and no investor or other party purchasing, setling 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, exczpt as provided below in this paragraph and in pazagraph 12. 1880376v3 0�,��� Certificates evidencing the Bonds may not after their original delivery be transferred ar exchanged except: (i) Upon registrarion of transfer of ownership of a Global Certificate, as provided in pazaa aph 12, 5 (ii) To any successor of the Depository (or its nominee) or any substitute 6 depository (a "substitute depository") designated pursuant to clause (iii) of this 7 subparagraph, provided that any successor of the Depository or any subsfitute depository 8 must be both a"clearing corporation" as defined in the Minnesota Uniform Commercial 9 Code at Minnesota Statutes, Section 336.8-102, and a qualified and registered "clearing 10 agency" as provided in Section 17A of the Securities Exchange Act of 1934, as amended, 11 (iii) To a substitute depository designated by and acceptable to the City upon 12 (a) the detemunafion by the Depository that the Bonds shall no longer be eligible for its 13 depository services or (b) a determination by the City that the Depository is no longer 14 able to carry out its functions, provided that any substitute depository must be qualified to 15 act as such, as provided in clause (ii) of this subparagraph, or 16 (iv) To those persons to whom transfer is requested in written transfer 17 inshuctions in the event that: 18 (a) the Depository shall resign or discontinue its services for the 19 Bonds and the City is unable to locate a substitute depository within two (2) 20 months following the resignation or deternunation of non-eligibility, or 21 (b) upon a determination by the City in its sole discretion that (1) the 22 continuation of the book-entry system described herein, which precludes the 23 issuance of certificates (other than Global Certificates) to any Holder other than 24 the Depository (ox its nominee), might adversely affect the interest of the 25 beneficial owners of the Bonds, or (2) that it is in the best interest of the beneficial 26 owners of the Bonds that they be able to obtain certificated bonds, 27 in either of which events the City shall notify Holders of its determination and of the 28 availability of certificates (the "Replacement Bonds") to Holders requesting the same and 29 the registration, transfer and exchange of such Bonds will be conducted as provided in 30 paragraphs 9B and 12 hereof. 31 In the event of a succession of the Depository as may be authorized by this 32 paragraph, the Bond Registrar upon presentation of Global Certificates shall register their 33 transfer to the substitute or successor depository, and the substitute or successor depository shall 34 be treated as the Depository far all purposes and functions under this resolution. The Letter of 35 Representations shall not apply to a substitute or successor depository unless the City and the 36 substitute or successor depository so agree, and a similar agreement may be entered into. 1880376W2 S ��� z`�� Redemotion. 2 (a) Optional RedemUtion; Due Date. All Bonds mariuiug after April 1, 2014, shall be 3 subject to redemption and prepayment at the option of the CiTy on such date and on any day 4 thereafter at a price of paz plus accrued interest. Redemption may be in whole or in part of the 5 Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may be 6 prepaid in such order of maturity and in such amount per maturity as the City shall determine; 7 and if only part of the Bonds having a common maturiTy date aze called for prepayment, the 8 Global Certificates may be prepaid in $5,000 increments of principal and, if applicable, the 9 specific Replacement Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Bonds 10 or portions thereof called for redemption shall be due and payable on the redemption date, and 11 interest thereon shall cease to accrue from and after the redemption date. 12 (b) Notation on Global Certificate. Upon a reduction in the aggregate principal 13 amount of a Global Certificate, the Holder may malce a notation of such redemption on the panel 14 provided on the Global Certificate stating the amount so redeemed, or may return the Global 15 Certificate to the Bond Registrar in exchange for a new Global Certificate authenticated by the 16 Bond Registrar, in proper principal amount. Such notation, if made by the Holder, shall be for 17 reference only, and may not be relied upon by any other person as being in any way 18 deternunative of the principal amount of such Global Certificate outstanding, unless the Bond 19 Registrar has signed the appropriate column of the panel. 20 (c) Selection of Replacement Bonds. To effect a partial redemption of Replacement 21 Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption 22 shall assign to each Replacement Bond having a common maturity date a distinctive number for 23 each $5,000 of the principal amount of such Replacement Bond. The Bond Registrar shall then 24 select by lot, using such method of selection as it shall deem proper in its discretion, from the 25 numbers so assigned to such Replacement Bonds, as many numbers as, at $5,000 for each 26 number, shall equal the principal amount of such Replacement Bonds to be redeemed. The 27 Replacement Bonds to be redeemed shall be the Replacement Bonds to which were assigned 28 numbers so selected; provided, however, that only so much of the principal amount of each such 29 Replacement Bond of a denomination of more than $5,000 shall be redeemed as shall equal 30 $5,000 for each number assigned to it and so selected. 31 (d) Partial Redem�tion of Replacement Bonds. If a Replacement Bond is to be 32 redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the City or Bond 33 Registrar so requires, a written insmunent of transfer in form satisfactory to the City and Bond 34 Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in 35 writing) and the City shall execute (if necessary) and the Bond Registraz shall authenticate and 36 deliver to the Holder of such Replacement Bond, without service chazge, a new Replacement 37 Bond or Bonds of the same series having the same stated mahxrity and interest rate and of any 38 authorized denomination or denominations, as requested by such Holder, in aggregate principal 39 amount equal to and in exchange for the unredeemed portion of the principal of the Bond so 40 surrendered. 41 (e) Request for Redemption. The Bond Registraz shall call Bonds for redemption and 42 payment as herein_provided upon receipt by the Bond Registrar at least forty-five (45) days prior 1880376v2 (� o �-z�� 1 to the redemption date of a request of the City, in written form if the Bond Registraz is other than 2 a City officer. Such request shall specify the principal amount of Bonds to be called far 3 redemption and the redemption date. 4 (� Notice. Mailed norice of redemption shall be a ven to the paying agent (if other 5 than a City officer) and to each affected Holder. If and when the City shall call any of the Bonds 6 for redemption and payment prior to the stated maturity thereof, the Bond Rea strar shall give 7 written notice in the name of the City of its intention to redeem and pay such Bonds at the office 8 of the Bond Registraz. Notice of redemption shall be given by first class mail, postage prepaid, 9 mailed not less than thirry (30) days prior to the redemption date, to each Holder of Bonds to be 10 redeemed, at the address appearing in the Bond Register. All notices of redemption shall state: 11 (i) The redemption date; 12 (ii) The redemption price; 13 (iii) If less than all outstanding Bonds are to be redeemed, the identification 14 (and, in the case of partial redemption, the respective principal amounts) of the Bonds to 15 be redeemed; 16 (iv) That on the redemption date, the redemption price will become due and 17 payable upon each such Bond, and that interest thereon shall cease to accrue from and 18 after said date; and 19 (v) The place where such Bonds are to be surrendered for payment of the 20 redemption price (which shall be the office of the Bond Registrar). 21 (g) Notice to Depositorv. Notices to The Depository Trust Company or its nominee 22 shall contain the CUSIP numbers of the Bonds. If there are any Holders of the Bonds other than 23 the Depository or its nominee, the Bond Registrar shall use its best efforts to deliver any such 24 notice to the Depository on the business day next preceding the date of mailing of such notice to 25 all other Holders. 26 27 28 29 30 31 32 33 34 35 36 8. Bond Registraz. The Treasurer of the City is appointed to act as bond registrar and transfer agent with respect to the Bonds (the "Bond Registrar"), and sha11 do so unless and until a successor Bond Registrar is duly appointed, a11 pursuant to any contract the City and Bond Registraz shall execute which is consistent herewith. A successar Bond Registrar shall be an officer of the City or a bank or trust company eligible for designation as bond registrar pursuant to Minnesota Statutes, Chapter 475, and may be appointed pursuant to any contract the City and such successor Bond Registraz shall execute which is consistent herewith. The Bond Registrar shall also serve as paying agent unless and until a successor paying agent is duly appointed. Principal and interest on the Bonds shall be paid to the Holders (or record holders) of the Bonds in the manner set forth in the forms of Bond and paragraph 14 of this resolution. 37 9. Forms of Bond The Bonds shall be in the form of Global Certificates 38 unless and until Replacement Bonds are made available as provided in pazagraph 6. Each form 39 of bond may contain such additional or different terms and provisions as to the form of payment, 1880376v2 7 ��_Z��Z 1 record date, notices and other matters as aze consistent with the Letter of Representations and 2 approved by the City Attorney. 3 A. Global Certificates. The Global Certificates, together with the Bond Registrar's 4 Certificate of Authentication, Certificate of Registration, the Register of Partial Payments, the 5 form of Assignment and the registrarion information thereon, shall be in substantially the 6 following form and may be typewritten rather than printed: 1880376v2 b�-ZnZ � GENERAi., OBLIGATION CAPITAL IMPROVEMENT INTEREST RATB IJNITED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF SAINT PAUL BOND, SERIES 2006A MATURITY DATE OF DATE ORIGINAL ISSUE 1, 20_ April 1, 2006 9 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 35 36 37 REGISTERED OWNER: I 7:7 h[� I'7_ � I 1_hT [�1 � l� I f I A $ CUSIP DOLLARS 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 on the certificate of registration below, or registered assigns, in the manner hereinafter set forth, the principal amount specified above, on the matuxity date specified above, unless called for earliex redemption, and to pay interest thereon semiannually on April 1 and October 1 of each year (each, an"Interest Payment Date"), commencing October 1, 2006, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will beaz 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 hereo£ The principal of and premium, if any, on this Bond are payable in same-day funds by 230 p.m., Eastern time, upon presentation and surrender hereof at the principal office of in , Minnesota (the "Bond Registraz"), acting as paying agent, or any successor paying agent duly appointed by the Tssuer; provided, however, that upon a partial redemption of this Bond which results in the stated amount hereof being reduced, the Holder may in its discretion be paid without presentation of this Bond, which payment shall be received no later than 230 pm., Eastern time, and may make a notation on the panel provided herein of such redemption, stating the amount so redeemed, or may return the Bond to the Bond Registrar in exchange for a new Bond in the proper principal amount. Such notation, if made by the Holder, shall be for reference only, and may not be relied upon by any other person as being in any way determinative of the principal amount of this Bond outstanding, unless the Bond Registrar has signed the appropriate column of the paneL Interest on this Bond will be paid on each Interest Payment Date in same-day funds by 2:30 pm., Eastern time, to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appearing thereon at the close of business on the fifteenth day of the calendar month preceding such Interest Payment Date (the 1880376v2 �� � z�� 1 "Regular Record Date"). Interest payments shall be received by the Holder no later than 230 2 p.m., Eastem time; and principal and premium payments shall be received by the Holder no later 3 than 2:30 p.m., Eastem time, if the Bond is surrendered for payment enough in advance to permit 4 payment to be made by such time. Any interest not so timely paid shall cease to be payable to 5 the person who is the Holder hereof as of the Ren lar Record Date, and shall be payable to the 6 person who is the Holder hereof at the close of business on a date (the "Special Record Date") 7 fixed by the Bond Registrar whenever money becomes available for paysnent of the defaulted 8 interest. Notice of the Special Record Date shall be given to Bondholders not less than ten days 9 prior to the Special Record Date. The principal of and premium, if any, and interest on this Bond 10 are payable in lawful money of the United States of America. 11 Date of Payment Not Business Dav. If the date for payment of the principal of, 12 premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on 13 which banking institufions in the City of New York, New York, or the city where the principal 14 office of the Bond Registrar is located are authorized by law or executive order to close, then the 15 date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal 16 holiday or a day on which such banking institutions are authorized to close, and payment on such 17 date sha11 haue the same force and effect as if made on the nominal date of payment. 18 Redemption. All Bonds of this issue (the "Bonds") maturing after April 1, 2014, 19 are subject to redemption and prepayment at the option of the Issuer on such date and on any day 20 thereafter at a price of paz plus accrued interest. Redemption may be in whole or in part of the 21 Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may be 22 prepaid in such order of maturity and in such amount per maturity as the City shall deterxnine; 23 and if only part of the Bonds having a common maturity date are called for prepayment, this 24 Bond may be prepaid in $5,000 increments of principal. Bonds or portions thereof called for 25 redemption shall be due and payable on the redemption date, and interest thereon shall cease to 26 accrue from and after the redemption date. 27 Notice of Redemption. Mailed notice of redemption shall be given to the paying 28 agent (if other than a City officer) and to each affected Holder of the Bonds. In the event any of 29 the Bonds are called for redemption, written notice thereof will be given by first class mail 30 mailed not less than thiriy (30) days prior to the redemption date to each Holder of Bonds to be 31 redeemed. In connection with any such notice, the "CUSIP" numbers assigned to the Bonds 32 shall be used. 33 d2eplacement or Notation of Bonds after Partial Redem t�on. Upon a partial 34 redemption of this Bond which results in the stated amount hereof being reduced, the Holder 35 may in its discretion make a notation on the panel provided herein of such redemption, stating 36 the amount so redeemed. Such notation, if made by the Holder, shall be for reference only, and 37 may not be relied upon by any other person as being in any way determinative of the principal 38 amount of the Bond outstanding, unless the Bond Registrar has signed the appropriate column of 39 the panel. Otherwise, the Holder may surrender this Bond to the Bond Registrar (with, if the 40 Issuer or Bond Registrar so requires, a written instruinent of transfer in form satisfactory to the 41 Tssuer and Bond Registraz duly executed by the Holder thereof or his, her or its attorney duly 42 authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registraz shall 43 authenticate and deliver to the Holder of such Bond, without service chazge, a new Bond of the 7880376d2 1 Q o� � ��z 1 same series having the same stated maturity and interest rate and of the authorized denomination 2 in ag�eaate principal amount equal to and in exchange for the unredeemed portion of the 3 principal of the Bond so surrendered. 4 Issuance; Purpose: General Obli ation. T'his Bond is one of an issue in the total � principal amount of $11,000,000, all of like date of original issue and tenor, except as to number, 6 maturity, interest rate, denomination, and redemption privilege, which Bond has been issued 7 pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, 8 including particulazly Laws of Miunesota for 1971, Chapter 773, as amended, and the Charter of 9 the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer on March 15, 10 2006 (the "Resolution"), for the purpose of providing money to finance the acquisition, 11 consiruction and repair of various capital improvements in the City. This Bond is payable out of 12 the General Debt Service Fund of the Issuer. This Bond constitutes a general obligation of the 13 Issuer, and to provide moneys for the prompt and full payment of its principal, premium, if any, 14 and interest when the same become due, the full faith and credit and taYing powers of the Issuer 15 have been and are hereby irrevocably pledged. 16 17 18 19 20 21 22 23 24 25 26 27 Aenominations; Exchan�e; Resolution. The Bonds aze issuable originally only as Global Certificates in the denomination of the entire principal amount of the issue maturing on a single date, or, if a portion of said principal is prepaid, said principal amount less the prepayment. Global Certificates aze not exchangeable for fully registered bonds of smaller denominations except to evidence a partial prepayment or in exchange for Replacement Bonds if then available. Replacement Bonds, if made available as provided below, 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 Registraz, 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. 28 Replacement Bonds. Replacement Bonds may be issued by the Issuer in the event 29 that: 30 (a) the Depository shall resib or discontinue its services for the Bonds, and 31 only if the Issuer is unable to locate a substitute depository within two (2) months 32 following the resignation or determination of non-eligibility, or 33 (b) upon a determination by the Issuer in its sole discretion that (1) the 34 continuation of the book-entry system described in the Resolution, which precludes the 35 issuance of certificates (other than Global Certificates) to any Holder other than the 36 Depository (or its nominee), might adversely affect the interest of the beneficial owners 37 of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that 38 they be able to obtain certificated bonds. 39 Transfer. This Bond shall be registered in the name of the payee on the books of 40 the Issuer by presenting this Bond far registration to the Bond Registrar, who will endorse his, 41 her ox its name and note the date of xegistration opposite the name of the payee in the certificate 1880376�2 1 1 ��-z�� 1 of registration attached hereto. Thereafter this Bond may be transferred by delivery with an 2 assignment duly executed by the Holder or his, her or its legal representatives, and the Issuer and 3 Bond Registraz may treat the Holder as the person exclusively entitled to exercise all the rights 4 and powers of an owner until this Bond is presented with such assignment for registration of 5 transfer, accompanied by assurance of the nature provided by law that the assignment is genuine 6 and effective, and until such transfer is registered on said books and noted hereon by the Bond 7 Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable 8 regulauons of the Issuer contained in any agreement with, or notice to, the Bond Registrar. 9 Transfer of this Bond may, at the direction and expense of the Issuer, be subject to certain other 10 restricuons if required to qualify this Bond as being "in registered form" within the meaning of 11 Secrion 149(a) of the federal Internal Revenue Code of 1986, as amended. 12 Fees upon Transfer or Loss. The Bond Registrar may require payment of a sum 13 sufficient to cover any tax or other governmental charge payable in connection with the transfer 14 or exchange of this Bond and any legal ar unusual costs regarding transfers and lost Bonds. 15 Treatment of Registered Owner. The Issuer and Bond Registraz may treat the 16 person in whose name this Bond is registered as the owner hereof for the purpose of receiving 17 payment as herein provided (except as otherwise provided with respect to the Record Date) and 18 for a11 other purposes, whether or not this Bond shall be overdue, and neither the Issuer nor the 19 Bond Registrar shall be affected by notice to the contrary. 20 Authentication. This Bond shall not be valid or become obligatory for any 21 purpose ar be entitled to any security unless the Certificate of Authentication hereon shall have 22 been executed by the Bond Registrar. 23 Not Qualified Tas-Exempt Obligations. The Bonds have not been designated by 24 the Issuer as "qualified tas-exempt obligations" for purposes of Section 265(b)(3) of the federal 25 Intemal Revenue. Code of 1986, as amended. The Bonds do not qualify for such designation. 26 IT IS HBREBY CERTIFIED AND RECITED that all acts, conditions and things 27 required by the Constitution and laws of tYae State of Minnesota and the Charter of the Issuer to 28 be done, to happen and to be performed, precedent to and in the issuance of this Bond, have been 29 done, have happened and have been performed, in regular and due form, time and manner as 30 required by law, and that this Bond, together with all other debts of the Issuer outstanding on the 31 date of original issue hereof and on the date of its issuance and delivery to the original purchaser, 32 does not exceed any cons6tutional or statutory or Charter limitation of indebtedness. 33 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey County, Minnesota, by 34 its City Council has caused this Bond to be sealed with its official seal and to be executed on its 35 behalf by the photocopied facsimile signature of its Mayor, attested by the photocopied facsimile 36 signature of its Clerk, and countersigned by the photocopied facsimile signature of its Director, 37 Office of Financial Services. 1880376v2 12 ��,z�z � 2 3 4 5 6 7 8 9 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 35 36 37 38 39 Date of Registration: BOND REGISTRAR'S CERTIFICATE OF AUTI�NTICATION This Bond is one of the Bonds described in the Resolution mentioned within. Bond Registraz By Authorized Signature (SEAL) Registrable by: Payable at: CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services General Obligation Capital Improvement Bond, Series 2006A, No. R-_ 1880376v2 IJ ��,2�1� CERTIFICATE OF REGISTRATION 2 3 The transfer of ownership of the principal amount of the attached Bond may be made only by the 4 rea stered owner or his, her or its legal representative last noted below. DATE OF SIGNA'I'IJRE OF REGISTRATION REGISTERED OWNER BOND REGISTRAR 1880396v2 14. 0�- Z�Z 2 REGISTER OF PARTIAL PAYMENTS 3 The principal amount of the attached Bond has been prepaid on the dates and in the amounts 4 noted below: Date Amount Bondholder Bond Registrar If a notation is made on this register, such notation has the effect stated in the attached Bond. Partial payments do not require the presentation of the attached Bond to the Bond Registrax, and a Holder could fail to note the partial payment here. 1880376v2 15 o�e� z`� : : : :���c.�� 2 9 (Cust) 10 underthe 11 12 13 14 IS 16 17 18 19 20 21 22 23 24 25 26 2'7 28 29 30 31 32 33 34 35 36 37 The following abbreviations, when used in the inscription on the face of this Bond, shall be construed as though they were written out in full according to applicable laws or regulations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties IT TBN - as joint tenants with right of survivoxship and not as tenants in common UTMA - as custodian for (Minor) Uniform Transfers to Minors Act (State) Additional abbreviarions may also be used though not in the above list. ASSICTNMENT For value received, the undersigned hereby sells, assigns and transfers unto the attached Bond and does hereby irrevocably constitute and appoint attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Notice: Signature Guaranteed: 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 alteration ar any change whatever. Signature(s) must be guaranteed by a national bank ar trust company or by a brokerage firm having a membership in one of the major stock exchanges or any other "Eligible Guarantor Institution" as defined in 17 CFR 240.17Ad-15(a)(2). The Bond Registrar will not effect transfer of this Bond unless the information concerning the transferee requested below is provided. Name and Address: (Include information for all joint owners if the Bond is held by joint account.) 1880376v2 16 V 7 / �� °� 2 B. Replacement Bonds. If the City 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 (including an exchange to reflect the partial prepayment of a Global Certificate not 5 previously exchanged for Replacement Bonds) the Bond Registraz shall deliver a certificate in 6 the form of the Replacement Bond rather than the Global Certificate, but the Holder of a Global 7 Certificate shall not otherwise be required to exchange the Global Certificate for one or more 8 Replacement Bonds since the City recognizes that some beneficial owners may prefer the 9 convenience of the Depository's xegistered ownership of the Bonds even though the entire issue 10 is no longer required to be in global book-entry form. The Replacement Bonds, together with the 11 Bond Registraz's Certificate of Authentication, the form of Assignment and the registration 12 information thereon, shall be in substantially the following form, with paragraphs identical to the 13 form of Global Certificate stated by heading or initial text only: 1880376v2 1'7 ��, 2�1� 4 I� GENERAL OBLIGATION CAPITAL IMPROVEMENT 7 BOND, SERIES 2006A INTEREST MATURITY DATE OF RATE DATE ORIGINAL ISSUE REGISTERED OWNER: 1Q PRINCIPAL AMOUNT: 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 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 assigns, in the manner hereinafter set forth, the principal amount specified above on the maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on April l and October 1 of each year (each, an "Interest Payment Date"), commencing October 1, 2006, at the rate per annum specified above (calculated on the basis of a 360-day year of twelve 30-day months) until the principal sum is paid or has been provided for. This Bond will beaz 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 aze 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 "Holder" or "Bondholder") on the registration books of the Issuer maintained by the Bond Registrar and at the address appeazing 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 Regular 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. Notice of the Special Record Date shall be given to Bondholders not less than ten days prior to the Special Record Date. Tbe principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. UNITED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CITY OF SAINT PAUL 1, 20_ April 1, 2006 1880376d2 1 g �� � �`�� 1 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF 2 THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL 3 FOR ALL PURPOSES HAVE THE SAME EFFBCT AS IF SET FORTH HERE. � IT IS HEREBY CERTIFIED AND RECITED.... 5 IN WITNESS WFIEREOF, 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 facsnnile 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 Director, Office of Financial Services, 9 the offlcial seal having been omitted as permitted by law. 10 Date of Registration: Registrable by: 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 BOND REGISTRAR'S CERTIFICATE OF ALTTHENTICATION This Bond is one of the Bonds described in the Resolution mentioned within. Bond Registrar By Authorized Signature 1850376v2 Payable at: CITY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services 19 ��i��� ON REVERSE OF BOND Date of Pavment Not Business Dav. 3 Redemprion. All Bonds of this issue (the "Bonds") maturing after April l, 2014, 4 aze subject to redemption and prepayment at the option of the Issuer on such date and on any day 5 thereafter at a price of paz plus accrued interest. Redemption may be in whole or in part of the 6 Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may be 7 prepaid in such order of maturity and in such amount per maturity as the City shall deterxnine; 8 and if only part of the Bonds having a common mahxrity date aze called far prepayxnent, the 9 specific Bonds to be prepaid shall be chosen by lot by the Bond Registraz. Bonds or portions 10 thereof called for redemption shall be due and payable on the redemption date, and interest 11 thereon shall cease to accrue from and after the redemption date. 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 37 Norice of Redemption. Selection of Bonds for Redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registraz shall assign to each Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Bond. The Bond Registraz shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers assigned to the Bonds, as many numbers as, at $5,000 for each number, sha11 equal the principal amount of such Bonds to be redeemed. The Bonds to be redeemed sha11 be the Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of such Bond of a denomination of more than $5,000 shall be redeemed as shall equal $5,000 for each number assigned to it and so selected. If a Bond is to be redeemed only in part, it shall be surrendered to the Bond Registrar (with, if the Issuer or Bond Registraz so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registrar duly executed by the Holder thereof or his, her or its attorney duly authorized in writing) and the Issuer sha11 execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond or Bonds of the same series having the same stated mah�rity and interest rate and of any authorized denomination or denominations, as requested by such Holder, in aggregate principal amount equal to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Purpose: General Obligation. Denominations; Exchanee; Resolution. The Bonds are issuable solely as fully registered bonds in the denomina6ons 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 Registraz, 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. 38 Transfer. This Bond is transferable by the Holder in person or by his, her or its 39 attorney duly authorized in writing at the principal office of the Bond Registrar upon 40 presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions 1880376�2 20 ��-��z 1 provided in the Resolution and to reasonable regulations of the Issuer contained in any 2 agreement with, or notice to, the Bond Registrar. Thereupon the Issuer shall execute and the 3 Bond Registraz shall authenticate and deliver, in exchange for this Bond, one or more new fixlly 4 reb stered Bonds in the name of the transferee (but not reb stered in blank or to "beazer" or 5 similaz designation), of an authorized denomination or denominations, in aggregate principal 6 amount equal to the principal amount of this Bond, of the same maturity and bearing interest at 7 the same rate. 8 Fees upon Transfer or Loss. 9 Treatment of Re�istered Owner. 10 Authentication 11 Not Qualified Tax-Exempt Obligations. 12 13 14 ABBREVIATIONS iasos�6�z Z1 0� - a�Z 2 ASSIGNMENT For value received, the undersi�ed hereby sells, assigns and transfers unto the within 4 Bond and does hereby uxevocably constitute and appoint 5 attorney to transfer the Bond on the books kept for the 6 registration thereof, with full power of substitution in the premises. Dated: Notice: 10 11 12 13 Signature Guaranteed: The assignor's si�ature to this assignment must correspond with the name as it appeazs upon the face of the within Bond in every particulaz, without alteration or any change whatever. 14 Si�ature(s) must be guaranteed by a national bank or trust company or by a brokerage firm 15 having a memberskup in one of the major stock exchanges or any other 'Bligible Guazantor 16 Institution" as defined in 17 CFR 240.17Ad-15(a)(2). 17 The Bond Registrar will not effect transfer of this Bond unless the information 18 concerning the transferee requested below is provided. 19 20 21 22 23 Name and Address: (Include information for all joint owners if the Bond is held by joint account.) 1880376v2 22 ��� z�� � 10 11 12 13 14 15 16 17 18 19 20 21 22 23 10. Execution. The Bonds shall be executed on behalf of the City by the si�atures of its Mayor, Clerk and Duector, 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 facsunile; and provided further 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 resib arion or other absence of any such officer, the Bonds may be signed by the manual or facsimile si�tature of that officer who may act on behalf of such absent or disabled officer. In case any such officer whose signature or facsimile of whose signature shall appeaz on the Bonds shall cease to be such officer before the delivery of the Bonds, such signature or facsimile shall nevertheless be valid and sufficient for a11 piuposes, the same as if he or she had remained in office until delivery. 11. Authentication; Date of Registration. No Bond shall be valid ar obligatory for any purpose or be entifled to any security or benefit under this resolution unless a Certificate of Authentication on such Bond, substantially in the form hereinabove set forth, shall have been duly executed by an authorized representative of the Bond Registrar. Certificates of Authentication on different Bonds need not be signed by the same person. The Bond Registrar shall authenticate the signatures of officers of the City on each Bond by execution of the Certificate of Authentication on the Bond and by inserting as the date of registration in the space provided the date on which the Bond is authenticated. For puxposes of delivering the original Global Certificates to the Purchaser, the Bond Registrar shall insert as the date of registration the date of original issue, which date is April 1, 2006. The Certificate of Authentication so executed on each Bond shall be conclusive evidence that it has been authenticated and delivered under this resolution. 24 12. Registration; Transfer; Exchanpe. 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 Registrar shall provide for the 27 registration of Bonds and the regjstration of transfers of Bonds entitled 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 Certificate for registration to the Bond Registrar, who will endorse his or her name 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 transferred 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 registration of transfer, accompanied by assurance of the nature provided by law that the assignment is genuine and effective, and until such transfer is registered on said books and noted thereon by the Bond Registrar, 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 Registrar. Transfer of a Global Certificate may, at the direction and expense of the City, be subject to other restrictions if required to qualify the Global Certificates as being "in registered 1880376v2 23 ��-��z 1 form" within the meaning of Section 149(a) of the federal Internal 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. 5 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 paragaph 1 I) of, and deliver, in the 8 name of the designated transferee or transferees, one or more new Replacement Bonds of any 9 authorized denomination 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 ll may be registered in blank or in the name of "beazer" or similar designation. 12 At the option 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 Registraz. 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 denominations. 20 All Bonds surrendered upon any exchange or transfer provided for in this 21 resolution shall 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 sha11 be valid 24 general obligations of the City evidencing the same debt, and entitled to the same benefits under 25 this resolution, as the Bonds surrendered for such exchange or transfer. 26 Every Bond presented or surrendered for transfer or exchange shal] be duly 27 endorsed or be accompanied by a written insirument of transfer, in form satisfactory to the Bond 28 Registrar, duly executed by the Holder thereof or his, her ar 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 governmental charge 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 Registraz, including regulations which permit the 35 Bond Registrar to close its transfer books between record dates and payment dates. 36 13. Ri�hts Upon Transfer or Exchan�e. Each Bond delivered upon transfer of 37 or in exchange for or in lieu of any other Bond sha11 carry all the rights to interest accrued and 38 unpaid, and to accrue, which were carried by such other Bond. 1880376d2 24. �� 1 14. Interest Pavment; Record Date. Interest on any Global Ceftificate sha11 be 2 paid as provided in the first pazagraph thereof, and interest on any Replacement Bond shall be 3 paid on each Interest Payment Date by check or draft mailed to the person in whose name the 4 Bond is registered (the "Holder") on the rea stration books of the City maintained by the Bond 5 Registrar, and in each case at the address appearing thereon at the close of business on the 6 fifteenth (15th) day of the calendar month preceding such Interest Payment Date (the "Regular 7 Record Date"). Any such interest not so tunely paid shall cease to be payable to the person who 8 is the Holder thereof as of the Regular Record Date, and shall be payable to the person who is the 9 Holder thereof at the close of business on a date (the "Special Record Date") fiYed by the Bond 10 Registrar whenever money becomes available for payment of the defaulted interest. Notice of I 1 the Special Record Date shall be given by the Bond Registrar to the Holders not less than ten 12 (10) days prior to the Special Record Date. 13 14 15 16 17 18 19 20 15. Holders; Treatment of Registered Owner; Consent of Holders. A. For 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 limited to a certificate from the person in whose name the Bond is registered identifying such beneficial owner. 21 B. The City and Bond Registrar 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 or not such Bond shall be overdue, and 25 neither the City nor the Bond Registrar shall be affected by notice to the contrary. 26 27 28 29 30 31 32 33 C. Any consent, request, direction, approval, objection or other instrument to be signed and executed by the Holders may be in any number of concurrent writings of similaz tenor and must be signed or executed by such Holders in person or by agent appointed 'an writing. Proof of the execution of any such consent, request, direction, approval, objection or other inshuxnent 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 trus resolution, and shall be conclusive in favor of the City with regard to any action 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 jurisdiction that the person signing such writing 37 acknowledged before 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. 2,`�� iaso3�6� 2g �� , Z�1? 1 16. Deliverv: Application of Proceeds. The Global Certificates when so 2 prepazed 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 is hereby created a special account to be 6 designated the "Capital Improvement Bonds of 2005A Account" (the "Capital Account"). There 7 has been heretofore created and established the General Debt Service Fund (numbered 960, 8 herein the "Fund"). The Fund and Capital Account shall each be maintained in the manner 0 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 24 30 31 32 33 34 35 36 37 38 herein specified until all of the Bonds and the interest thereon have been fully paid. (i) �ita1 Account. To the Capital Account there shall be credited the proceeds of the sale of the Bonds, less accnxed interest received thereon, and less any amount paid for the Bonds in excess of $10,912,000. From the Capital Account there shall be paid all costs and expenses of making the Improvements, including the cost of any construction contracts heretofore let and all other costs incurred and to be incurred of the kind authorized in Minnesota Statutes, Section 475.65 (including interest on the Bonds payable during the construction period); and the moneys in the Capital Account shall be used for no other purpose except as othercvise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessary to pay interest on the Bonds due priar to the anticipated date of commencement of the collection of taxes levied herein; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Capital Account, the balance may be transferred by the Council to the fund of any other improvement instituted pursuant to Laws of Minnesota for 1971, Chapter 773, as amended, or used for any other purpose permitted by law, or transferred to the Fund. All earnings on the Capital Account shall be transferred to the Fund, or may remain in the Capital Account. (ii) Fund. There is hereby pledged and there shall be credited to the Fund, to a special sinking fund account which is hereby created and established therein fox the payment of the Bonds: (a) all accrued interest received upon delivery of the Bonds; (b) all funds paid for the Bonds in excess of $10,912,000; (c) any collections of all taxes which are herein levied for the payment of the Bonds and interest thereon as provided in paragraph 18; (d) a11 funds remaining in the Capital Account after completion of the Improvements and payment of the costs thereof, not so transferied to the account of another improvement or used for any other purpose permitted by law; (e) all investment earnings on moneys held in said special account in the Fund; and (fl any and all other moneys which are properly auailable and are appropriated by the governing body of the City to said special account in the Fund. 39 Said special account created in the Fund shall be used solely to pay the principal and 40 interest and any premiums for redemption of the Bonds and any other bonds of the City 41 heretofore or hereafter issued by the City and made payable from said special account in the 42 Fund as provided by law, or to pay any rebate due to the United States. No portion of the 43 proceeds of the Bonds sha11 be used direcUy or indirectly to acquire higher yielding inveshnents 1880376v2 2C �- a��. 1 or to replace funds which were used directly or indirectly to acquire higher yielding investments, 2 except (1) for a reasonable temporary period until such proceeds aze needed for the purpose for 3 which tfie Bonds were issued, and (2) in addition Yo the above in an amount not greater than 4 $100,00Q. To this effect, any pmceeds of the Bonds and any sums from time to time held in the 5 Capital Account or said speciai account in the Fund (or any other City account which will be 6 used to pay principal or interest to become due on tfie bonds payable therefrom) in excess of 7 amounts which under then-applicable federal azbitrage regulations may be invested without 8 regatd as to yield shall not be invested at a yield in excess of the applicabte yield restrictions 9 imposed by said azbitrage regulations on such investments after taking into account any 10 applicable "temporary periods" or "minor portion" made available under the federal arbitrage i l regulations. In addirion, the proceeds of the Bonds and money in the Capital Account or Fund 12 shall not be invested in obligations or deposits issued by, guazanteed by or insured by the United 13 States or any agency or instnimentality thereof if and to the extent that such investment would 14 cause the Bonds to be "federally guazanteed" within the meaning of Section 149(b) of the federal 15 Tnternal Revenue Code of 1986, as amended (the "Code"). 16 18. Tax Levy; Covera¢e Test. To provide moneys for payment of fhe 17 principal and interest on the Bonds there is hereby levied upon all of the taxable property in the 18 City a direct annual ad valorem taac wkuch shall be spread upon the tax roils and collected with 19 and as part of other general property fases in the City for the years and in the amounts as 20 follows: Yeaz of Tax Levv Year of Tas Collecrion I�. 2005* 2006 2007 2008 2009 2010 2011 2012 2013 2014 2006* 2007 2008 2009 2010 2411 2012 2013 2014 2015 21 � heretofore levied or provided from other available City funds $ 971,250* 1,491,630 1,485,540 1,478,085 1,473,305 1,468,845 1,461,705 1,463,280 1,462,755 1,460,130 22 The tas levies aze such that if collected in full they, together with estimated 23 collections of any other revenues herein pledged for the payment of the Bonds, will produce at 24 least five percent (5%) in excess of the amount needed to meet when due the principal and 25 interest payments on the Bonds. The tax levies shall be irrepealable so long as any of the Bonds 26 are outstanding and unpaid, provided that the City reserves the right and power to reduce the 27 levies in the mamier and to the extent pemutted by Mnmesota Statutes, Secfion 475.61, 28 Subdivision 3. 1880376v3 2.� o�- Z�z 19. General OliliQation Pledee. For the prompt and full payment of the principal and interest on the Bonds, as the same respectively become due, the full faith, credit and taxing powers of the City shall be and are hereby irrevocably pledged. If the balance in the Fund (as defined in para�aph 17 hereo fl is ever insufficient to pay all principal and interest then due on the Bonds payable therefrom, the deficiency shall be promptly paid out of any other funds of the City which aze available for such purpose, including the general fund of the City, and such other funds may be reimbursed with or without interest from the Fund when a sufficient balance is available therein. 9 20. Certificate of Registration. The Director, Office of Financial Services, is 10 hereby directed to file a certified copy of this resolurion with the officer of Ramsey County, 11 Minnesota, performing the functions of the county auditor (tl�e "County Auditor"), together with 12 such other information as the County Auditor shall require, and to obtain the County Auditor's 13 certificate that the Bonds have been entered in the County Auditor's Bond Register, and that the 14 tax levy required by law has been made. 15 21. Records and Certificates. The officers of the City are hereby authorized 16 and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality 17 of the issuance of the Bonds, certified copies of all proceedings and records of the City relating 18 to the Bonds and to the financial condition and affairs of the City, and such other affidavits, 19 certificates and information as are required to show the facts relating to the legality and 20 marketability of the Bonds as the same appear from the books and records under their custody 21 and control or as otherwise known to them, and all such certified copies, certificates and 22 affidavits, including any heretofore fiunished, shall be deemed representations of the City as to 23 the facts recited therein. 24 22. NetLative Covenants as to Use of Proceeds and Improvements. The City 25 hereby covenants not to use the proceeds of the Bonds or to use the Improvements, or to cause or 26 permit them to be used, ar to enter into any deferred payment arrangements for the cost of the 27 Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the 28 meaning of Sections 103 and 141 through 150 of the Code. The CiTy reasonably expects that no 29 actions will be taken over the term of the Bonds that would cause Yhem to be private activity 30 bonds, and the average term of the Bonds is not longer than reasonably necessary for the 31 governmental purpose of the issue. The City hereby covenants not to use the proceeds of the 32 Bonds in such a manner as to cause the Bonds to be "hedge bonds" within the meaning of 33 Secfion 149(g) of the Code. 34 23. Tax-Exempt Status of the Bonds; Rebate; Elections. The City shall 35 comply with requirements necessary under the Code to establish and maintain the exclusion from 36 gross income under Section 103 of the Code of the interest on the Bonds, including without 37 limitation requirements relating to temporazy periods for investments, limitations on amounts 38 invested at a yield greater than the yield on the Bonds, and the rebate of excess inveshnent 39 earnings to the United States. 40 The City expects that the two-year expenditure exception to the rebate 41 requirements may apply to the construction proceeds of the Bonds. 1880376�2 Zg �J� 1 If any elections are available now or hereafter with respect to azbitrage ox rebate 2 matters relating to the Bonds, the Mayor, Clerk, Treasurer and Director, Office of Financial 3 Services, or any of them, aze hereby authorized and directed to make such elections as they deem 4 necessary, appropriate or desirable in connection with the Bonds, and all such elections shall be, 5 and shall be deemed and treated as, elections of the City. 6 24. No Desianation of Qualified Tax-Exempt ObliQations. The Bonds, 7 together with other obligations issued by the City in 2006, exceed in amount those which may be 8 qualified as "qualified taz�-exempt obligations" within the meaning of Section 265(b)(3) of the 9 Code, and hence aze not designated for such purpose. 10 25. Letter of Representations. The Letter of Representations for the Bonds is 11 hereby confirmed to be the Blanket Issuer Letter of Representations dated April 10, 1996, by the 12 City and received and accepted by The Depository Tnxst Company. So long as The Depository 13 Trust Company is the Depository or it or its nominee is the Holder of any Global Certificate, the 14 City shall comply with the provisions of the Letter of Representations, as it may be amended or 15 supplemented by the City from time to rime with the agreement or consent of The Depository 16 Trust Company. 17 26. Ne�otiated Sale. The CiTy has retained Springsted Tncorporated as an 18 independent financial advisor, and the City has heretofore determined, and hereby determines, to 19 sell the Bonds by private negotiation, all as provided by Minnesota Statutes, Section 475.60, 20 Subdivision 2(9). 21 27. Continuing Disclosure. The City is an obligated person with respect to the 22 Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), 23 promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the 24 Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the 25 "Undertaking") hereinafter described, to: 26 A. Provide or cause to be provided to each nationally recognized municipal 27 securities information repository ("NRMSIR") and to the appropriate state information 28 depository ("SID"), if any, for the State of Minnesota, in each case as designated by the 29 Commission in accordance with the Rule, certain annual financial information and 30 operating data in accordance with the Undertaking. The City reserves the right to modify 31 from time to time the terms of the Undertalcing as provided therein. 32 B. Provide or cause to be provided, in a timely manner, to (i) each NRMSIR 33 or to the Municipal Securities Rulemaking Boazd ("MSRB") and (ii) the SID, notice of 34 the occurrence of certain material events with respect to the Bonds in accordance with the 35 Undertaking. 36 C. Provide or cause to be provided, in a timely manner, to (i) each NRNISIR 37 or to the MSRB and (ii) the SID, no6ce of a failure by the City to provide the annual 38 financial information with respect to the City described in the Undertaking. 39 The City agrees that its covenants pursuant to the Rule set forth in this paragraph 40 27 and in the Undertak.ing aze intended to be for the benefit of the Holders of the Bonds and shall 1880376v2 29 a �,2�z 1 be enforceable on behalf of such Holders; provided that the right to enforce the provisions of 2 these covenants shall be limited to a right to obtain specific enforcement of the City's obligations 3 under the covenants. 4 The Mayor and Director, Office of Financial Services, or any other officers of the 5 City authorized to act in their stead (the "Officers"), are hereby authorized and directed to 6 execute on behalf of the City the Undertaking in substantially the form presented to the City 7 Council, subject to such modifications thereof or additions thereto as aze (i) consistent with the 8 requirements under the Rule, (ii) required by the Purchaser, and (iii) acceptable to the O�cers. 9 28. Severabilitv. If any section, paragraph or provision of this resolution 10 shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of 11 such section, paragraph or provision shall not affect any of the remaining provisions of this 12 resolution. 13 14 15 29. Headin�s. Headings in this resolution aze included for convenience of reference only and are not a part hereof, and sha11 not limit or define the meanang of any provision hereof. Requested by Department of: Office of Financial Services B y : � . µ Form Approved by City Attorney B �/S�c `�. U���C� Adoption Certified by Council Secretary By: �il�/r�i�yi Appxoved by M - 9ate � ��- v� By: �� 1��� � Apprcyv n ayor / fo � r S bm� sion to Council By: � li 1880376v2 30 Adopted by Council: Date �f21 L� /�.�/>Olo � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet FS ' Financial Se�vices Contact Person & Phone: Todd Hurley 26Cr8837 Must Be on ��rMAR-06 ContractType: AR-RESOLUTION W/$ 7RANSACTION Date Initiated: 03-MAR-06 � ' Assign Number For Routing Order Total # of Signature Pages _(Clip AII Locations for Signature) Green Sheet NO: 3029930 \ 2�1Z �� Uepartrnent SentToPerson InitiaVDate 0 i�an ' rvi 1 inancial ervi �De a tDire 2 inancial rvices �ce Financial Servi � 3 itvA#orne 4 a or's Office Ma or/ ' tant 5 iCouncil ("n. f '1 6 �Citv Cierk � �'t�• C1e k Signatures on [he attached resolurion accepting the proposal for ffie sale of $11,OOQ000 in G.O. Capital Improvement Bonds, Series 2006A, providing for their issuance and levying a tax for the payment thereof. Recommendations: Appro�e (A) or F Plannirg Commission C(B CAmmittee CiNI Service Commission 'I. Has this person/firm e�er worked under a contract for this department? Yes No 2. Has thls person/firtn e�er been a city employee? Yes No 3. Does this persoNfirm possess a skill not nortnally possessed by any current city employee� Yes No Explain all yes answers on separate sheetand attach to green sheet Initiating Problem, issues, Opportunity (Who, What, When, Where, Why): The ciry wishes to sell $11,000,000 in G.O. Capital Improvement bonds. RECENED AdvanWqes IfApproved: The bonds can be sold. MAR 0 6 2006 MAYOR'S OFFICE Disadvantaqes If Approved: None Disadvantages If NotApproved: 1'he bonds will not be sold. Totai Amount of Transaction: FundinSl Source: Financial Infortnation: (Euplain) $11,000,000 CosURevenue Budgeted: Y ActiviN Number: � R P� �.,,�:.A..F� 'l$�.fs�'�� W'_� �d4l..t<We t •n �.. �,• �, . � ' alfi March 3, 2006 9:50 PM Page 1 DG-a�a ;-;; Springsted March 15, 2006 Mr. Matt Smith, Director of Financial Services Mr. Todd Hurley, Treasurer City of St. Paul Treasury Division Office of Financial Services 160 City Hall 15 West Kellogg Bivd Saint Paul, MN 55102 sa����sied i����po ziea 38G.lackscn S'ree� Su^e 300 Sa'°tPzu' �."JI 56�0;-288� �� 55"-223-39;1C =�r o5'-223-3'„�2 RE: Recommendations for Award of City of Saint Paul's: $11,000,000 General Obligation Capital Improvement Bonds, Series 2006A $12,500,000 General Obligation Street Improvement Special Assessment Bonds, Series 2006B, and $7,040,000 Sewer Revenue Bonds, Series 2006C Dear Mr. Smith and Mr. Hurley: This letter summarizes the results of the competitive bids opened this morning for the three issues listed above. Purpose and Repayment Sources of Issues The purpose of the CIB Issue is to fund projects provided for through the City's Capital Improvement Budgeting process. The CIB Issue will be repaid by property tax levies. The purpose of the Street Issue is to fund portions of the City's annual street improvement program. This Street Issue will be repaid by special assessments on benefiting properties and property tax levies. The purpose of the Sewer Revenue Issue is to fund capital improvements. The Sewer Revenue Bonds are repaid by net revenues of the Sewer Utility. Tax-Exempt Market Rates While the municipal tax-exempt market continues in a low range, it has moved generally downward in the last two months. The national index of these interest rates, the BBI, is at the very low point of 4.45%. The overall tax- exempt market is in the same general areas as last year's bond sale, where the BBI was 4.50%. The market currently reflects a flatness, where short-term interest rates are approximately equal to longer-term rates. Pubh[ Se[tor Advisors City of Saint Paul, Minnesota March 15, 2006 Page 2 Sale Results ��-a�a The City received six bids on the CIB Issue. The senior managers of the bidding syndicates were as follows: Rank Bidder PiperJaffray Wells Fargo Citigroup LaSalle Financial Merrill Lynch Morgan Stanley TIC % 3.776207% 3.783126% 3.790899% 3.833616% 3.854128% 3.999571% The lowest or best bid was received from Piper Jaffray at a true interest rate of 3.776%. Last year's CIB Issue received a winning bid of 3.54%. The Ciry received four bids on the Street Issue: Rank Bidder Piper Jaffray Citigroup LaSalle Financial Merrill Lynch TIC % 4.213273% 4237243% 4.261822% 4.279862% The lowest or best bid was received from Piper Jaffray, at a true interest rate of 4.213%. Last year's Street Issue received a winning bid of 3.99%. The City received four bids on the Sewer Revenue Issue: Rank Bidder Piper Jaffray RBC Capital UBS Securities LaSalle Financial TIC % 4.035463°/a 4.036973% 4.055412°!0 4.061080% The lowest or best bid was received from Piper Jaffray at a true interest rate of 4.035 %. The difference in interest rates behveen these three issues is the result of the respective repayment terms of the issues and the revenue only security on the Sewer Revenue Issue. In general, shorter-term issues have lower interest rates than fonger issues. The revenue only bonds wilf generally have higher interesi rates than general obligation bonds. We require bidders to submit their bids on a"True Interest Rate" (TIC) basis, so as to reflect the present value of their bids and thereby ensure the City award based on the lowest cost to the City. We have enclosed bid tabulation forms for each issue summarizing the bid specifics and composition of each underwriting syndicate. d�-a �� City of Saint Paul, Minnesota March 15, 2006 Page 3 Recommendation We recommend award of sale to: CIB fssue Piper Jaffray Streetlssue PiperJaffray Sewer Revenuelssue PiperJaffray Basis of Recommendation We believe the interest rates received by the City today reflect significant market participation and aggressive bidding in this market environment. The broad market has recently moved slightly downward from points experienced in the later half of 2005. The results of this process are generally within our interest rate estimates provided at the start of this financing process. Credit Rating The City's general obligation rating for these issues were reaffirmed by Standard & Poor's and Moody's, at AAA from S&P, and Aa2 #rom Moody's. We would note that Moody's has changed their outlook for the City's general ohfigation rating to stable from positive. The outlook is general{y defined as an indicator of any changes in the rating should the current trends continue for the next 18-24 months. The change in outlook generally reflects Moody's opinion as to the °stability of the tax base...., satisfactory financial position following several years of financial challenges and expectations that the City's debt profile will remain favorable." The City's Sewer Utility maintained its Standard & Poor's AAA rating. Moody's upgraded the Sewer Utility rating to Aa2 from Aa3. The upgrade is a result oi a number of factors but predominately the strong financial position of the Utility. We welcome any questions regarding this sale process. We congratulate the City and Sewer Utility on completion of a successful sale process. Respectiully, �A���.G ������ David N. MacGillivray f Chairman maj Enclosure cc: Saint Paul Regional Water Services X �� � 7a Springsfed Inwryorated 380 Jadcson Street, Suile 300 Saint Paul, MN 55101-2887 � Springsted $11,000,000 CITY OF SAINT PAUL, MINNESOTA Tel: 651-Y2&9000 Falc 651-22&3002 EmaB: advisors@springsted.com www.springsted.com GENERAL OBLIGATION CAPITAL IMPROVEMENT BONDS, SERIES 2006A (BOOK ENTRY ONLI� AWARD: SALE: Moody's Rating: Aa2 Standard & Poor's Rating: AAA Interest Netlnterest True Interest Bidder Rates Price Cost Rate PIPER JAFFRAY March 15, 2006 PIPERJAFFRAY 4.00% 411/07-4/1/16 $11,123,883.20 $2,416,616.80 CITIGROUP GLOBAL MARKETS, INC. 4.00% 4/1/07-4/1l16 $11,115,690.40 $2,424,809.60 UBS SECURITIES LLC CRONIN & COMPANY, INCORPORATED WACHOVIA SECURITIES LASALLE FINANCIAL SERVICES, INC. GRIFFIN, KUBIK, STEPHENS & THOMPSON, INC. STIFEL, NICOLAUS & CO., INC. SOUTHWEST SECURITIES, INC. POPULAR SECURITIES, fPIC. HARRIS BANK CHARLES SCHWAB & COMPANY SAMCO CAPITAL MARKETS HllTCHINSON, SHOCKEY, ERLEY & COMPANY FIDELITY CAPITAL MARKETS 4.00% 4/1/07-4/1/16 $11,091,918.90 $2,448,581.10 MERRILL LYNCH & CO. Jackson Securities, Inc. Grigsby & Associates, Inc. MORGAN STANLEY— MORGAN STANLEY DW INC. 4.00% 4/1/07-4/1l16 3.50% 4/1/07-4/1/09 3.75% 10/1/09-10/1/11 4.00% 4/1/12-4/1/15 5.00% 10/1/15-4/1/16 $11,080,529.30 $2,459,970.70 $11,055,702.70 $2,559,453.55 3.7762% 3.7908% 3.8336% 3.8541 % 3.9995% (Continued) O� -� �a REOFFERING SCHEDULE OF THE PURCHASER Rate Year Yield 4.00% 4.00% 4.00% 4.00°/a 4.00% 4.00% 4.00% 4.00°/a 4.00% 4.00% 4.00% 4.00% 4.00% 4,00% 4,00% 4.00% 4.00% 4.00% 4.00% 4/1 /2007 10/1/2007 4/1 /2008 10/i/2008 4/1/2009 10/1/2009 4/1/2010 10/1 /2010 4/1/2011 10/1/2011 4/1/2012 10/1/2012 4/1/2013 10/i/20i3 4/1/2014 10/1/2014 4/il2015 10/1/2015 4/1/2016 3.35% 3.37% NRO 3.42% NRO 3.47% NRO 3.52% NRO 3.58% 3.64% 3.67% 3.74% 3.76% 3.82% 3.84% 3.89% 3.91 % 3.95% BBI: 4.45% Average Maturity: 5.774 Years O6-� �� � Sprinqsted Springstetl Incoryo�afed aao,�a� sv�z s��e soo Saint Paul, MN 55701-2887 7eC 65t-22&3000 Fa�c 657-22&3002 Email: advisors@springsted.com www.springsted.com $12,500,000 CITY OF SAINT PAUL, MINNESOTA GENERAL OBLIGATION STREET IMPROVEMENT SPECIAL ASSESSMENT BONDS, SERIES 2006B (BOOK ENTRY ONLI� AWARD: SALE: PIPER JAFFRAY March 15, 2006 Moodys Rating: Aa2 Standard & Poor's Rating: AAA Interest Net Interest True Interest Bidder Rates Price Cost Rate PIPER JAFFRAY CITIGROUP GLOBAL MARKETS, INC. UBS SECURITIES LLC CRONIN & COMPANY, INCORPORATED WACHOVIA SECURITIES LASALLE FINANCIAL SERVICES, INC. GRIFFIN, KUBIK, STEPHENS & THOMPSON, INC. ST{FEL, N{COLAUS & CO., INC. SOUTHW EST SECURI7IES, INC. POPULAR SECURITIES, INC. HARRIS BANK CHARLES SCHWAB & COMPANY SAMCO CAPITAL MARKETS HUTCHINSON, SHOCKEY, ERLEY & COMPANY F1DELITY CAPITAL MARKETS MERRILL LYNCH & CO. Jackson Securities, Inc. Grigsby & Associates, Inc. 4.00% 4/1/07-10/1/18 4.125% 4/1/19-10/1/20 4.20% 4/1/21-10/1/21 4.25% 4/1/22-10/1/24 4.375% 4/1/25-4/1/26 $12,438,980.95 $5,883,786.55 42132% 4.00% 4/1/07-10/1/18 $12,454,152.50 $5,926,888.12 4.10% 4A/19-10/1/19 4.20% 4/112�-10l1/20 4.25% 4/1/21-10/1/23 4.375% 4/1/24-10/1/24 4.50% 4/1/25-4/1/26 4.00% 4/1/07-10/1/18 4.125% 4/1/19-10/1/20 4.25% 4/1/21-10l1/24 . 4.30% 411i25-4l1/26 $12,380,038.15 $5,930,184.35 3.50% 4/1/07-10/1/07 4.00% 4/1/08-10/1/20 425% 4/1/21-10/1/23 4.375% 4/1l24-4/1/26 $12,363,998.15 $5,954,411.22 4.2372% 4.2618% 4.2798% (Continued) O� -� �a REOFFERING SCNEDULE OF THE PURCHASER Rate Year Yield 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.125% 4.125% 4.125% 4.125% 4.20% 420% 4.25% 4.25% 4.25% 425% 425% 4.25% 4.375% 4.375% 4.375% 4/1/2007 10/1/2007 4/1/2008 10/1 /2008 4/1 /2009 10/1/2009 4/1/2010 10/1/2010 4/1/2011 10/1/2011 4/1/2012 10f1/2012 4/1/2013 10/1/2013 4/1/2014 10/1/2014 4/1/2015 10/1/2015 4/1/2016 10/1/2016 4/1/2017 10/1/2017 4/1/2018 10/1/2018 4/1/2019 10/1/20i9 4/1 /2020 10/1 /2020 4/1 /2021 10/1 /2021 4/1/2022 10/1 /2022 4/1 /2023 10/1/2023 4/1 /2024 10/1 /2024 4/1 /2025 10/1/2025 4/1 /2026 3.35% 3.37% 3.40% 3.42% 3.46% 3.48% 3.50% 3.52% 3.55% 3.58% 3.64% 3.67% 3.74% 3.76% 3.78% 3.78% 3.84% 3.84% 3.90% 3.90% Par Par 4.05% 4.05% Par Par 4.17% 4.17% Par Par Par Par 4.28% 428% 4.31 % 4.31 % Par Par Par BBI: 4.45% Average Maturity: 11.181 Years �� -a �a Springsted Incorporafetl 380 Jadvson Street SuAe 300 Saint Paul, MN 551014887 � Springsted $7,040,000 CITY OF SAINT PAUL, MINNESOTA SEWER REVENUE BONDS, SERIES 2006C (BOOK ENTRY ONLI� AWARD: SALE: PIPER JAFFRAY March 15, 2006 Te1:651-22&3000 Faz 651-2233002 Ematl: advisors@springsted.com xv+wspringsted.com Moody's Rating: Aa2 Standard & Poor's Rating: AAA Interest Netlnterest True Interest Bidder Rates Price Cost Rate PIPER JAFFRAY RBC CAPITAL MARKETS UBS SECURITIES LLC LASALLE FINANCIAL SERVICES, INC. GRIFFIN, KUBIK, STEPHENS & THOMPSON, INC. STIFEL, NICOLAUS & CO., INC. SOUTHWEST SECURITIES, INC. POPULAR SECURITIES, INC. HARRIS BANK CHARLES SCHWAB & COMPANY SAMCO CAPITAL MARKETS HUTCHINSON, SHOCKEY, ERLEY & COMPANY FIpELITY CAPITAL MARKETS 4.00% 2006-2018 4.50°Jo 2019-2020 4.00% 2006-2020 3.50°fo 2006-2��7 4.00% 2008-2018 4.50% 2019-2020 4.00% 2006-2016 425% 2017 4.50% 2018-2020 $7,085,601.60 $2,365,223.40 $7,021,962.35 $2,345,570.98 $7,�71,746.95 $2,374,511.38 $7,112,929.05 $2,388,504.28 4.0354% 4.0369% 4.0554% 4.0610% (Continued) p� -a �a- REOFFERING SCHEDULE OF THE PURCHASER Rate Year Yield 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00% 4.00°/a 4.00% 4.50°/a 4.50% 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 3.37% 3.40% 3,45% NRO NRO 3.64% 3.70% 3.78% 3.88% 3.95% Par 4.05% 4.10% NRO NRO BBI: 4.45% Average Maturity: 8.265 Years