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06-273A M E N D E D Council File # U�- a�l 3 GreenSheet# 3029932 RESOLUTION OF SAINT PAUL, MINNESOTA 3S Presented By Refeired To Committee: ACCEPTING PROPOSAL ON SALE OF $12,500,000 GENERAL OBLIGATION STREET IMPROVEMENT SPECIAL ASSESSMENT BONDS, SERIES 2006B, PROVIDING FOR THEIR ISSUANCE, AND LEVYING A TAX FOR THE PAYMENT THEREOF WHEREAS, the Director, Office of Financial Services, has presented proposals received for the sale of $12,500,000 General Obligation Street Improvement Special Assessment Bonds, Series 2006B (the "Bonds"), of the City of Saint Paul, Minnesota (the "City"); and WHEREAS, the proposals set forth on Exhibit A attached hereto were received pursuant to the Terms of Proposal at the offices of Springsted Incorporated at 10:00 A.M., Central Time, this same day; and WI-IEREAS, the Director, Office of Financial Services, has advised this Council that the proposal of `}��PE12 �aPk�f�� was found to be the mosl advantageous and has recommended that said proposal be accepted; and WHEREAS, the proceeds of the Bonds will finance certain street improvements to be specially assessed, for which the City is proceeding pursuant to its Charter and not Minnesota Stahxtes, Chapter 429, with any excess to be used for any other purpose pernutted by law; and WHEREAS, the City has heretofore issued registered obligations in certificated forxn, and incurs substantial costs associated with their printing and issuance, and substantial continuing transaction costs relating to their payment, transfer and exchange; and WIIEREAS, the City has determined that significant savings in transaction costs will result from issuing bonds in "global book-entry form", by which bonds aze issued in certificated form in lazge denominations, registered on the books of the City 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 distributes payments on the bonds to its Participants shown on its books as the owners of such interests; and such Participants and other banks, brokers and dealers participating in the National System will do likewise (not as agents of the City) if not the beneficial owners of the bonds; and 1880422v2 06 a �3 WHEREAS, "Participants" means those financial institutions for whom the Depository effects book-entry transfers and pledges of securities deposited and immobilized with the Depository; and WIIEREAS, The Depository Trust Company, a limited purpose trust company organized under the laws of the State of New York, or any of its successors or successors to its functions hereunder (the "Depository"), will act as such depository with respect to the Bonds except as set forth below, and the City has heretofore delivered a letter of representations (the "Letter of Representations") setting forth various matters relating to the Depository and its role with respect to the Bonds; and WHEREAS, the City will deliver the Bonds in the form of one certificate per maturity, each representing the entire principal amount of the Bonds due on a particular maturity date (each a"Global Certificate"), which single certificate per maturity may be transferred on the City's bond register as required by the Uniform Commercial Code, but not exchanged for smaller denominations unless the City deternunes to issue Replacement Bonds as provided below; and WHEREAS, the City will be able to replace the Depository or under certain circumstances to abandon the "global book-entry form" by pernutting the Global Certificates to be exchanged for smaller denominations typical of ordinary bonds registered on the City's bond register; and "Replacement Bonds" means the certificates represenUng the Bonds so authenticated and delivered by the Bond Registrar pursuant to paragraphs 6 and 12 hereof; and WHEREAS, "Holder" as used herein means the person in whose name a Bond is registered on the registration books of the City maintained by the registrar appointed as provided in pazagraph 8(the "Bond Registrar"); and WHEREAS, Rule 15c2-12 of the Securities and Exchange Commission prohibits "participating underwriters" from purchasing or selling the Bonds unless the City undertakes to provide certain continuing disclosure with respect to the Bonds; and WHEREAS, pursuant to Minnesota Statutes, Section 475.60, Subdivision 2(9), public sale requirements do not apply to the Bonds if the City retains an independent financial advisor and deternunes to sell the Bonds by private negotiation, and the City has instead authorized a competitive sale without publication of notice thereof as a form of private nego6ation; and WHEREAS, proposals for the Bonds have been solicited by Springsted Incorporated pursuant to an Official Statement and Terms of Proposal therein: NOW, THEREFORE, BE TI' RESOLVED by the Council of the City of Saint Paul, Minnesota, as follows: 1. Accentance of Proposal. The proposal of Piper Jaffray & Co. (the "Purchaser") to purchase $12,500,000 General Obligation Street Improvement Special Assessment Bonds, Series 20065, 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 hereinafter set forth, and to pay therefor the sum of $12,438,980.95, plus interest accrued to settlement, is 1880422v3 7 d� �73 hereby found, detemuned and declared to be the most favorable proposal received and is hereby accepted, and the Bonds aze hereby awazded 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; Orieinal Issue Date; Denominations; Maturities. The Bonds shall be titled "General Obligation Street Improvement Special Assessment Bonds, Series 2006B", shall be dated April 1, 2006, as the date of original issue and shall be issued forthwith on or after such date as fully registered bonds. The Bonds shall be numbered from R-1 upwazd. Global Certificates shall each be in the denomination of the entire 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 pazagraph 6, shali be in the denomination of $5,000 each or in any integral multiple thereof of a single maturity. The Bonds shall mature on April 1 and October 1 in the yeus and amounts as follows: Date April 1, 2007 October 1, 2007 April 1, 2008 October 1, 2008 April 1, 2009 October 1, 2009 April l, 2010 October 1, 2010 April 1, 2011 October 1, 2011 April 1, 2012 October 1, 2012 April 1, 2013 October 1, 2013 Apri1 1, 2014 October 1, 2014 April 1, 2015 Amount $510,000 250,000 255,000 25Q000 255,000 255,000 260,000 260,000 265,000 265,000 270,000 270,000 275,000 280,000 285,000 285,000 290,000 Date October 1, 2015 April 1, 2016 October 1, 2016 April 1, 2017 October 1, 2017 April l, 2018 October 1, 2018 April 1, 2019 October 1, 2019 April 1, 2020 October 1, 2020 October 1, 2021 October 1, 2022 October 1, 2023 October 1, 2024 April 1, 2026 Amount $ 295,000 300,000 305,000 310,000 315,000 320,000 325,000 330,000 335,000 340,000 345,000 705,000 730,000 755,000 785,000 1,225,000 3. Puinose. The Bonds shall provide funds for the construction of various street improvements (the "Improvements") in the City, and any excess construction funds shall be devoted to any other purpose pernutted 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 available for this purpose. Work on the Improvements shall proceed with due diligence to completion. 4. Interest The Bonds shall bear interest payable semiannually on April 1 and October 1 of each year (each, an"Interest Payment Date"), commencing October 1, 2006, calculated on the basis of a 360-day year of twelve 30-day months, at the respective rates per annum set forth opposite the marizrity dates as follows: issoazz�s O�v a73 Maturitv Date April 1, 2007 October 1, 2007 April 1, 2008 October 1, 2008 April 1, 2009 October 1, 2009 April l, 2010 October 1, 2010 April 1, 2011 October 1, 2011 April 1, 2012 October 1, 2012 April 1, 2013 October 1, 2013 Apri] 1, 2014 October 1, 2014 April 1, 2015 Interest Rate 4.000% 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 4.000 Maturity Date October 1, 2015 April 1, 2016 October 1, 2016 April 1, 2017 October 1, 2017 April 1, 2018 October 1, 2018 April 1, 2019 October 1, 2019 April 1, 2020 October 1, 2020 October l, 2021 October 1, 2022 October 1, 2023 October 1, 2024 April 1, 2026 Interest Rate 4.000% 4.000 4.000 4.000 4.000 4.000 4.000 4.125 4.125 4.125 4.125 4.200 4.250 4.250 4.250 4.375 5. Aescrirotion of the Global Certificates and Giobal Book-Entrv S s�. Upon their original issuance the Bonds will be issued in the form of a single Global Certificate for each maturity, deposited with the Depository or its agent by the Purchaser and immobilized as provided in paragraph 6. No beneficial owners of interests in the Bonds will receive certificates representing their respective interests in the Bonds except as provided in pazagraph 6. Except as so provided, during the term of the Bonds, beneficial ownership (and subsequent transfers of beneficial ownership) of interests in the Global Certificates will be reflected by book entries made on the records of the Deposito 'ry and its Participants and other banks, brokers, and dealers participating in the National System. The Depository's book entries of beneficial ownership interests are authorized to be in increments of $5,000 of principal of the Bonds, but not smaller increments, despite the larger authorized denominations of the Global Certificates. Payment of principal of, premium, if any, and interest on the Global Certificates will be made to the Bond Registraz as paying agent, and in turn by the Bond Registrar to the Depository or its nominee as registered owner of the Global Certificates, and the Depository according to the laws and rules governing it will receive and forward payments on behalf of the beneficial owners of the Global Certificates. Payment of principal of, premium, if any, and interest on a Global Certificate may in the City's discretion be made by such other method of transfening funds as may be requested by the Holder of a Global Certificate. 6. Tmmobilization of Global Certificates by the Depositorv Successor Depository; 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 issoazz�s 4 D�-��3 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 investor or other party purchasing, selling or othercvise 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 paragraph and in paragraph 12. Certificates evidencing the Bonds may not after their original delivery be transfened or exchanged except: (i) Upon registration of transfer of ownership of a Global Certificate, as provided in pazagraph 12, (ii) To any successoz of the Depository (or its nominee) or any substitute depository (a "substitute depository") designated pursuant to clause (iii) of this subparagraph, provided that any successor of the Depository or any substitute depository must be both a"clearing corporation" as defined in the Minnesota Uniform Commercial Code at Minnesota Statutes, Section 336.8-102, and a qualified and registered "cleazing agency" as provided in Section 17A of the Securities Exchange Act of 1934, as amended, (iii) To a substitute depository designated by and acceptable to the City upon (a) the detemunation by the Depository that the Bonds shall no longer be eligible for its depository services or (b) a determination by the City that the Depository is no longer able to carry out its functions, provided that any substitute depository must be qualified to act as such, as provided in clause (ii) of this subparagraph, or (iv) To those persons to whom transfer is requested in written transfer instructions in the event that: (a) the Depository shall resign or discontinue its services for the Bonds and the City is unable to locate a subsritute depository within two (2) months following the resignation or deternunation of non-eligibility, or (b) upon a determinarion by the City in its sole discretion that (1) the continuation of the book-entry system described herein, which precludes the issuance of certificates (other than Global Certificates) to any Holder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated bonds, in either of which events the City shall notify Holders of its determination and of the availability of certificates (the "Replacement Bonds") to Holders requesting the same and the registration, transfer and exchange of such Bonds will be conducted as provided in paragraphs 9B and 12 hereof. In the event of a succession of the Depository as may be authorized by this paragraph, the Bond Registraz upon presentaUon of Global Certificates shall register their transfer to the substitute or successor depository, and the substitute or successor depository sha11 1880422v3 a� � �3 be treated as the Depository for all purposes and functions under this resolution. The Lztter of Representations shall not apply to a substitute or successor depository unless the City and the substitute or successor depository so agree, and a similar ab eement may be entered into. 7. Redem�tion. (a) Optional Redem tion. All Bonds maturing after April 1, 2015, shall be subject to redemption and prepayment at the option of the City on such date and on any day thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Sonds remaining unpaid may be prepaid in such order of maturity and in such amount per maturity as the City shall deternune (treating amounts scheduled for mandatory redemption as maturities); and if only part of the Bonds having a common maturity date aze called for prepayment, the Global Certificates may be prepaid in $5,000 increments of principal and, if applicable, the specific Replacement Bonds to be prepaid shall be chosen by lot by the Bond Registrar. (b) Scheduled Mandatorv Redemption. Term Bonds maturing on October 1, 2021, are subject to redemption and prepayment on April 1, 2021, at a price of par plus accrued interest, without premium, in the amount set forth below: Date April 1, 2021 October 1, 2021 Amount $350,000 355,000 (Maturity) Term Bonds maturing on October 1, 2022, are subject to redemption and prepayment on April 1, 2022, at a price of paz plus accrued interest, without premium, in the amount set forth below: Date Amount April 1, 2022 $365,000 October 1, 2022 365,000 (Maturity) Term Bonds maturing on October 1, 2023, aze subject to redemption and prepayment on April 1, 2023, at a price of par plus accrued interest, without premium, in the amount set forth below: Date Amount April 1, 2023 $375,000 October 1, 2023 380,000 (Matuxity) Term Bonds maturing on October 1, 2024, are subject to redemption and prepayment on April 1, 2024, at a price of par plus accrued interest, without premium, in the amount set forth below: Date Amount April 1, 2024 $390,000 October 1, 2024 395,000 (Maturity) Term Bonds maturing on April 1, 2026, are subject to redemption and prepayment on April 1, 2025, and October 1, 2025, at a price of paz plus accrued interest, without premium, on the dates and in the amounts set forth below: 1880422v3 0�-�73 Date April 1, 2025 October l, 2025 April 1, 2026 Amount $400,000 410,000 415,000 (Maturity) (c) Due Date. Bonds or portions thereof cailed for redemption shail be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. (d) Notation on Global Certificate. Upon a reduction in the aggregate principal amount of a Global Certificate, the Hoider may make a notation of such redemption on the panel provided on the Global Certificate stating the amount so redeemed, or may return the Global Certificate to the Bond Registru in exchange for a new Global Certificate authenticated by the Bond Registrar, in 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 detemunative of the principal amount of such Global Certificate outstanding, unless the Bond Registraz has signed the appropriate column of the panel. (e) Selection of Replacement Bonds. To effect a partial redemption of Replacement Bonds having a common maturity date, the Bond Registrar prior to giving notice of redemption sha11 assign to each Replacement Bond having a common maturity date a distinctive number for each $5,000 of the principal amount of such Replacement Bond. The Bond Registrar shall then select by lot, using such method of selection as it shall deem proper in its discretion, from the numbers so assigned to such Replacement Bonds, as many numbers as, at $5,000 for each number, shall equal the principal amount of such Replacement Bonds to be redeemed. The Replacement Bonds to be redeemed shall be the Replacement Bonds to which were assigned numbers so selected; provided, however, that only so much of the principal amount of each such Replacement 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. (� Partial Redemption of Replacement Bond. If a Replacement Bond is to be redeemed only in part, it shall be surrendered to the Bond Registraz (with, if the City or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the City and Bond Registrar duly executed by the Holder thereof or his, her ar its attorney duly authorized in writing) and the City shall execute (if necessary) and the Bond Registrar shall authenticate and deliver to the Holder of such Replacement Bond, without service chazge, a new Replacement Bond or Bonds of the same series having the same stated maturity 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. (g) Request for Rede �tion. The Bond Registrar sha11 call Bonds for redemption and payment as herein provided upon receipt by the Bond Registrar at least forty-five (45) days prior to the redemption date of a request of the City, in written forxn if the Bond Registrar is other than a City officer. Such request shall specify the principal amount of Bonds to be called for redemption and the redemption date. 1880422v3 �6-�z3 (h) Notice. Mailed notice of redemption shall be given to the paying agent (if other than a City officer) and to each affected Hoider. If and when the City shall call any of the Bonds for redemption and payment prior to the stated maturity thereof, the Bond Registrar shall give written notice in the name of the City of its intention to redeem and pay such Bonds at the office of the Bond Registrar. Notice of redemption shall be given by first class mail, postage prepaid, mailed not less than thiriy (30) days prior to the redemption date, to each Holder of Bonds to be redeemed, at the address appearing in the Bond Register. All notices of redemption shall state: (i) The redemption date; (ii) The redemption price; (iii) If less than a11 outstanding Bonds aze to be redeemed, the identification (and, in the case of partial redemption, the respective principal amounts) of the Bonds to be redeemed; (iv) That on the redemption date, the redemption price will become due and payable upon each such Bond, and that interest thereon shall cease to accrue from and after said date; and (v) The place where such Bonds are to be surrendered for payment of the redemption price (which shall be the office of the Bond Registrar). (i) Notice to De o sitor Notices to The Depository Trust Company or its nominee shall contain the CUSII' numbers of the Bonds. If there are any Holders of the Bonds other than the Depository or its nominee, the Bond Registrar shall use its best efforts to deliver any such notice to the Depository on the business day next preceding the date of mailing of such notice to all other Holders. 8. Bond Reeistrar. The Treasurer of the City is appointed to act as bond registraz and transfer agent with respect to the Bonds (the "Bond Registrar"), and shall 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 successor 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 Registrar 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. 9. Forms of Bond. The Bonds shall be in the form of Global Certificates unless and until Replacement Bonds aze made available as provided in paragraph 6. Each form of bond may contain such addiUonal or different terms and provisions as to the form of payment, record date, notices and other matters as are consistent with the Letter of Representations and approved by the City Attorney. A. Global Certificates. The Global Certificates, together with the Bond Registrar's Certificate of Authentication, the Certificate of Registration, the Register of Partial Payments, the form of Assignment and the registration information thereon, sha11 be in substantially the following form and may be typewritten rather than printed: 1880422v3 C36 �-Z3 iJNi'I`ED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COUNTY CTI'Y OF SAINT PAUL R- INTEREST RA'I'E � GENERAL OBLIGATTON STREET IMPROVEMENT SPECIAL ASSBSSMENT BOND, SERIES 20068 MATURITY DATE DATE OF ORIGINAL ISSUE CUSII' l, 20_ REGISTERED OWNER: PRINCIPAL AMOUNT: April 1, 2006 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 reglstered 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 maturity date specified above, unless called for earlier redemption, and to pay interest thereon semiannually on April 1 and October 1 of each yeaz (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 bear interest from the most recent Interest Payment Date to which lnterest 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 by 2:30 p.m., Eastern time, upon presentation and sunender 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; 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 2:30 p.m., 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 amounC. 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 230 pm., Eastern time, to the person in whose name this Bond is registered (the "Holder" or "Bondholder") on the registraUon books of the Issuer maintained by the Bond Registraz 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 "Regular Record Date"). Interest payments shall be received by the Holder no later than 2:30 p.m., Eastern time; and principal and premium payments shall be received by the Holder no later than 230 p.m., Eastern time, if the Bond is surrendered for isaoazz�s 9 06���3 payment enough in advance to pernut payment to be made by such time. 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. I�otice 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 are payable in lawful money of the United States of America. Date of Pavment Not Business Day. If the date for payment of the principal of, premium, if any, or interest on this Bond shall be a Saturday, Sunday, legal holiday or a day on which banking institutions in the City of New York, New York, or the city where the principal office of the Bond Registraz is located aze authorized by law or executive order to close, then the date for such payment shall be the next succeeding day which is not a Saturday, Sunday, legal holiday or a day on which such banking institutions are authorized to close, and payment on such date sha11 have the same force and effect as if made on the nominal date of payment. Optional Redem t�ion. All Bonds of this issue (the "Bonds") maturing after April 1, 2015, are subject to redemption and prepayment at the option of the Issuer on such date and on any day thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may be prepaid in such order of maturity and in such amount per maturity as the City shall determine (treating amounts scheduled for mandatory redemption as maturities); and if only part of the Bonds having a common maturity date are called for prepayment, this Bond may be prepaid in $5,000 increments of principal. Scheduled Mandatorv Redem_ption. The Bonds maturing on October 1, 2021, shall be redeemed and prepaid on April l, 2021, at a price of par plus accrued interest, without premium, in the amount set forth below: Date April 1, 2021 October 1, 2021 Amount $350,000 355,000 (Maturity) The Bonds maturing on October 1, 2022, shall be redeemed and prepaid on April 1, 2022, at a price of par plus accrued interest, without premium, in the amount set forth below: Date April 1, 2022 October i, 2022 Amount $365,000 365,000 (Maturity) The Bonds maturing on October l, 2023, shall be redeemed and prepaid on April 1, 2023, at a price of par plus accrued interest, without premium, in the amount set forth below: Date April 1, 2023 October 1, 2023 Amount $375,000 380,000 (Maturity) 1880422v3 1Q LYo The Bonds maturing on October 1, 2�24, shall be redezmed and prepaid on April 1, 2024, at a price of paz plus acczued interest, without premium, in the amount set forth below: Date April 1, 2024 October 1, 2024 Amount $39Q000 395,000 (Maturity) The Bonds maturing on April 1, 2026, shall be redeemed and prepaid on April 1, 2025, and October 1, 2025, at a price of par plus accrued interest, without premium, on the dates and in the amounts set forth below: Date April 1, 2025 October 1, 2025 April 1, 2026 Amount $400,000 410,000 415,000 (Maturity) Due Date. Bonds or portions thereof called for redemption sha11 be due and payable on the redemption date, and interest thereon shall cease to accrue from and after the redemption date. Notice of Redemution. Mailed notice of redemption shall be given to the paying agent (if other than a City officer) and to each affected Holder of the Bonds. In the event any of the Bonds are called for redemption, written notice thereof will be given by first class mail mailed not less than thirty (30) days prior to the redemption date to each Holder of Bonds to be redeemed. In connection with any such notice, the "CU3IP" numbers assigned to the Bonds shall be used. Replacement or Notation of Bonds after Partial Redem tp ion. Upon a partial redemption of this Bond which results in the stated amount hereof being reduced, the Holder may in its discretion make a notation on the panel provided herein of such redemption, stating the amount so redeemed. 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 the Bond outstanding, unless the Bond Registrar has signed the appropriate column of the panel. Otherwise, the Holder may surrender this Bond to the Bond Registrar (with, if the Issuer or Bond Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registru duly executed by the Holder thereof or his, her or its attorney duly authorized in writing) and the Issuer shall execute (if necessary) and the Bond Registraz shall authenticate and deliver to the Holder of such Bond, without service charge, a new Bond of the same series having the same stated maturity and interest rate and of the authorized denomination in aggregate principal amount equai to and in exchange for the unredeemed portion of the principal of the Bond so surrendered. Issuance; Pur�ose; Generai Ob13�arion. This Bond is one of an issue in the total principai amount of $12,500,000, all of like date of original issue and tenor, except as to number, maturity, interest rate, denomination and redemption privilege, which Bond has been issued pursuant to and in full confornuty with the Constitution and laws of the State of Minnesota and the Charter of the Issuer, and pursuant to a resolution adopted by the City Council of the Issuer 1880422v3 1 j 06-��3 on March 15, 2006 (the "Resolution"), for the purpose of providing money to finance the construction of various street improvements in the City. This Bond is payable out of a special account relating to the Bonds in the General Obligation Special Assessments — Streets 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; Exchanee; 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, or, if a portion of said principal amount is prepaid, said principal amount less the prepayment. Global Certificates are 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, aze 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 limitations provided in the Resolution. Reference is hereby made to the Resolution for a description of the rights and duties of the Bond Registraz. Copies of the ResoluUon are on file in the principal office of the Bond Registrar. Replacement Bonds. Replacement Bonds may be issued by the Issuer in the event that: (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 resignation or determination of non-eligibility, or (b) upon a determination by the Issuer in its sole discretion that (1) the continuation of the book-entry system described in the Resolution, which precludes the issuance of certificates (other than Global Certificates) to any Holder other than the Depository (or its nominee), might adversely affect the interest of the beneficial owners of the Bonds, or (2) that it is in the best interest of the beneficial owners of the Bonds that they be able to obtain certificated bonds. 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 oz its legal representatives, and the Issuer and Bond Registraz 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, 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 hereon by the Bond Registrar, a11 subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any aareement with, or notice to, the Bond Registraz. Transfer of this Bond may, at the direction and expense of the Issuer, be subject to certain other 1880422v3 12 b�-��3 restrictions if required to qualify this Bond as being "in registered form" within the meaning of Section 149(a) of the federal Intemal Revenue Code of 1986, as amended. Fees upon Transfer or I,oss. The Bond Registrar may require payment of a sum sufficient to cover any taY or other governmental chazge payable in connection with the transfer or exchange of this Bond and any legal or unusual costs regarding transfers and lost Bonds. Treatment of Reeistered Owner. The Issuer and Bond Regisiraz may treat the person in whose name this Bond is registered as the owner hereof for the purpose of receiving payment as herein provided (except as otherwise provided with respect to the Record Date) and for all other purposes, whether or not this Bond shall be overdue, and neither the Issuer nar the Bond Registrar shall be affected by notice to the contrary. Authentication. This Bond shall not be valid or become obligatory for any purpose or be entitled to any security unless the Certificate of Authentication hereon shall have been executed by the Bond Registru. Not Oualified Tax-Exempt Oblieations. The Bonds have not been designated by the Issuer as "qualified taY-exempt obligations" for purposes of Section 265(b)(3) of the federal Internal Revenue Code of 1986, as amended. The Bonds do not qualify for such designation. TT IS HEREBY CERTIFIED AND RECITED that all acts, conditions and things required by the Constitution and laws of the State of Minnesota 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 have 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 ariginal issue hereof and on the date of its issuance and delivery to the original purchaser, does not exceed any constitutional or statutory or Charter limitation of indebtedness. 1880422v3 13 66 a 73 IN WITNESS WHEREOF, the City of Saint Paul, Ramsey County, Minnesota, by its City Council has caused this Bond to be sealed with its official seal and to be executed on its behalf by the photocopied facsimile signature of its Mayor, attested by the photocopied facsimile signature of its Clerk, and countersigned by the photocopied facsimile signature of its Director, Office of Financial Services. Date of Registration: BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the Resolution mentioned within. Bond Registrar Authorized Signature (SEAL) Registrable by: Payable at: CTTY OF SAINT PAUL, RAMSEY COUNTY, MINNESOTA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services General Obligation Street Improvement Special Assessment Bond, Series 2006B, No. R-_ issoazz�s 14 0� -��3 CERTIFTCATE 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 RECTISTRA'I'ION REGIS'I'ERED OWNER BOND REGISTRAR 1880422v3 15 G� � 73 REGIST`ER OF PARTIAL PAYMENTS The principal amount of the attached Bond has been prepaid on the dates and in the amounts noted below: Date Amount Bondholder Bond Re�straz If a notarion is made on this register, such notation has the effect statecl in the attached Bond. Partial payments do not require the presentation of the attached Bond to the Bond Registraz, and a Holder could fail to note the partial payment here. isaoaza�s 16 � � i ABBREVIATIONS 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 reb lations: TEN COM - as tenants in common TEN ENT - as tenants by the entireties JT TEN - as joint tenants with right of survivorship and not as tenants in common UTMA - _ as custodian for (Cust) (Minor) under the 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 attorney to transfer the Bond on the books kept for the registration thereof, with full power of substitution in the premises. Dated: Notice: The assignor's signature to this assignment must correspond with the name as it appeazs upon the face of the attached Bond in every particular, without alteration or any change whatever. Signature Guaranteed: Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges or any other "Eligible Guarantor Institution" as defined in 17 CFR 24017Ad-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.) issoazz�s 17 6�--�T3 B. Replacement Bonds. If the City has notified Holders that Replacement Bonds have been made available as provided in pazab aph 6, then for every Bond thereafter transferred ar exchanged (including an exchange to reflect the partial prepayment of a CTlobal Certificate not previously exchanged for Replacement Bonds) the Bond Registrar shall deliver a certificate in the form of the Replacement Bond rather than the Global Certificate, but the Holder of a Global Certificate shall not otherwise be required to exchanae the Global Certificate for one or more Replacement Bonds since the City recognizes that some beneficial owners may prefer the convenience of the Depository's registered ownership of the Bonds even though the entire issue is no longer required to be in global book-entry form. The Replacement Bonds, together with the Bond Registrar's Certificate of Authentication, the form of Assignment and the registration information thereon, shall be in substantially the following form, with paragraphs identical to the form of Global Certificate stated by heading or initial text only: 1880422v3 1$ 0�� �3 I� GENERAL OBLIGATION STREET IMPROVEMENT SPECIAL ASSESSMENT BOND, SERIES 2�OSB INTEREST RATE UNITED STATES OF AMERICA STATE OF MINNESOTA RAMSEY COIJNTY CITY OF SAINT PAUL MATURITY DATE DATE OF ORIGINAL ISSUE $ CUSIP 1, 20_ REGISTERED OWNER: PRINCIPAL AMOUNT: April 1, 2006 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 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 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 principai sum 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 hereo£ The principal of and premium, 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 "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 calendaz month preceding such Interest Payment Date (the "Regulaz 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. The principal of and premium, if any, and interest on this Bond are payable in lawful money of the United States of America. iasoazz�s 19 � �� REFERENCE IS HERESY MAAE TO THE FURTHER PROVISIONS OF THIS BOND SET FORTH ON THE REVERSE HEREOF, WHICH PROVISIONS SHALL FOR ALL PURPOSES HAVE THE SAME EFFECT AS IF SET FORTH HERE. TI' IS HEREBY CERTIFTED AND RECTI'ED .... IN WTTNESS WHEREOF, the City of Saint Paul, Ramsey County, Minnesota, by its City Council has caused this Bond to be executed on its behalf by the original or facsimile signature of its Mayor, attested by the original or facsimile signature of its Clerk, and countersigned by the original or facsimile signature of its Director, Office of Financial Services, the official seal having been omitted as permitted by law. Date of Registration: BOND REGISTRAR'S CERTIFICATE OF AUTHENTICATION This Bond is one of the Bonds described in the Resolution mentioned within. Bond Registrar Authorized Signature Registrabie by: Payable at: CITY OF SAINT PAUL, RAMSEY COUNTY, MINNE50TA Mayor Attest: City Clerk Countersigned: Director, Office of Financial Services issoazz� 20 4&�0l`73 ON REVERSE OF BOND Date of Pavment Not Business Dav. Optional Redemption. All Bonds of this issue (the "Bonds") maturing after April 1, 2015, aze subject to redemption and prepayment at the option of the Issuer on such date and on any day thereafter at a price of par plus accrued interest. Redemption may be in whole or in part of the Bonds subject to prepayment. If redemption is in part, those Bonds remaining unpaid may be prepaid in such order of maturity and in such amount per maturity as the City shall deternune; and if only part of the Bonds having a common maturity date aze called for prepayment, the specific Bonds to be prepaid shall be chosen by lot by the Bond Registrar. Scheduled Mandatorv Redemotion. Due Date. Notice of Redem�tion. Selection of Bonds for Redemption. To effect a partial redemption of Bonds having a common maturity date, the Bond Registrar 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 Registrar 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 shall 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 Registrar so requires, a written instrument of transfer in form satisfactory to the Issuer and Bond Registraz duly executed by the Holder thereof or his, her or its attorney duly authorized in writing) and the Issuer shall 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 maturity 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; Rl�ose: General Obli ag tion. Denominations: ExchanCe• 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 aze 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 principai office of the Bond Registraz. Transfer. This Bond is transferable by the Holder in person or by his, her or its attorney duly authorized in writing at the pzincipal office of the Sond Registrar upon 1880422v3 'Z.1 06 �1 �3 presentation and surrender hereof to the Bond Registrar, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the Issuer contained in any agreement with, or notice to, the Bond Registraz. Thereupon the Issuer shall execute and the Bond Registraz shall authenticate and deliver, in exchange for tlus Bond, one or more new fully registered Bonds in the name of the transferee (but not registered in blank or to "beazer" or siznilar designation), of an authorized denomination or 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 uoon Transfer or Loss. Treatment of Reeistered Owner. Authentication Not Oualified Ta7c-Exempt Oblieations. ABBREVTATIONS iaaoan�s 22 b!� � 73 ASSIGNMENT For value received, the undersigned hereby sells, assigns and transfers unto the within Bond and does hereby inevocably constitute and appoint attomey to transfer the Bond on the books kept far the registration thereof, with full power of substitution in the premises. Notice: The assignor's signature to this assignment must correspond with the name as it appears upon the face of the within Bond in every particular, without alteration or any change whatever. Signature Guazanteed: Signature(s) must be guaranteed by a national bank or trust company or by a brokerage firm having a membership in one of the major stock exchanges 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 far all joint owners if the Bond is held by joint account.) isaoazz�s 23 � � �3 10. Execution. 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 further that any of such signatures may be printed or photocopied facsuniles and the corporate seal may be omitted on the Bonds as pemutted 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 signature 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 appear 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 all purposes, the same as if he or she had remained in office until delivery. 11. Authentication; Date of Reelstration. No Bond shall be valid or obligatory for any puipose 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 purposes of delivering the original Global Certificates to the Purchaser, the Bond Registraz 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. 12. Reeistration; Transfer; Exchanae. The City will cause to be kept at the principal office of the Bond Registrar a bond register in which, subject to such reasonabie regulations as the Bond Registrar may prescribe, the Bond Registrar shall provide for the registration of Bonds and the registration of transfers of Bonds entitled to be registered or transfened as herein provided. 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 Registrar 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 regjstered on said books and noted thereon by the Bond Registraz, all subject to the terms and conditions provided in the Resolution and to reasonable regulations of the City contained in any agreement with, or nofice 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 1880422v3 24 D��� 7 � form" within the meaning of Section 144(a) of the federal Internal Revenue Code of 1986, as amended. If a Global Certificate is to be exchanged for one or more Replacement Bonds, all of the principal amount of the Global Certificate shall be so exchanged. Upon surrender for transfer of any Replacement Bond at the principal o�ce of the Bond Registraz, the City shall execute (if necessazy), and the Bond Registrar shall authenticate, insert the date of registration (as provided in pazagraph 11) of, and deliver, in the name of the designated transferee or transferees, one or more new Replacement Bonds of any authorized denomination or denominations of a like aggregate principal amount, having the same stated maturity and interest rate, as requested by the transferor; provided, however, that no bond may be registered in blank or in the name of "bearer" or similar designation. At the option of the Holder of a Replacement Bond, Replacement Bonds may be exchanged for Replacement Bonds of any authorized denomination or denominations of a like aggregate principal amount and stated maturity, upon surrender of the Replacement Bonds to be exchanged at the principal office of the Bond Registrar. Whenever any Replacement Bonds are so surrendered for exchange, the City shall execute (if necessary), and the Bond Registrar shall authenticate, insert the date of registration of, and deliver the Replacement Bonds which the Holder making the exchange is entitled to receive. Global Certificates may not be exchanged for Global Certificates of smaller denominations. All Bonds surrendered upon any exchange or transfer provided for in this resolution shall be promptly cancelled by the Bond Registrar and thereafter disposed of as directed by the City. All Bonds delivered in exchange for or upon transfer of Bonds shall be valid general obligations of the City evidencing the same debt, and entitled to the same benefits under this resolution, as the Bonds surrendered for such exchange or transfer. Every Bond presented or surrendered for transfer or exchange shall be duly endorsed or be accompanied by a written instrument of transfer, in form satisfactory to the Bond Registrar, duly executed by the Holder thereof or his, her or its attorney duly authorized in writing. The Bond Registraz may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection with the transfer or exchange of any Bond and any legal or unusual costs regarding transfers and lost Bonds. Transfers shall also be subject to reasonable regulations of the City contained in any agreement with, or notice to, the Bond Registrar, inciuding regulations which permit the Bond Registrar to close its transfer books between record dates and payznent dates. 13. Riehts Upon Transfer or Exchan�e. Each Bond delivered upon transfer of or in exchange for or in lieu of any other Bond shall carry all the rights to interest accrued and unpaid, and to accrue, which were carried by such other Bond. 1880422v3 2$ D� 73 14. Intezest Payment; Record Date. Interest on any Global Certificate shall be paid as provided in the first pazagraph 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 registration books of the City maintained by the Bond Registraz, and in each case at the address appearing thereon at the close of business on the fifteenth (15th) day of the calendaz month preceding such Interest Payment Date (the "Regulaz Record Date"). Any such interest not so timely paid shall cease to be payabie to the person who is the Holder thereof as of the Regulaz 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") fixed 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 Holders not less than ten (10) days prior to the Special Record Date. 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) txeat 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. B. The City and Bond Registrar may treat the person in whose name any Bond is registered as the owner of such Bond for the purpose of receiving payment of principal of and premium, if any, and interest (subject to the payment provisions in pazagraph 14 above) on, such Bond and for all other purposes whatsoever whether or not such Bond shall be overdue, and neither the City nor the Bond Registrar shall be affected by notice to the contrazy. 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 similar tenor and must be signed or executed by such Holders in person or by agent appointed in writing. Proof of the execution of any such consent, request, direction, approval, objection or other instrument 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 regard to any action taken by it under such request or other instrument, namely: (1) The fact and date of the execution by any person of any such writing may be proved by the certificate of any officer in any jurisdiction who by law has power to take acknowledgments wlthin such jurisdiction that the person signing such writing acknowledged before him or her the execution thereof, or by an affidavit of any witness to such execution. (2) Subject to the provisions of subpazagraph (A) above, the fact of the ownership by any person of Bonds and the amounts and numbers of such Bonds, and the date of the holding of the same, may be proved by reference to the bond register. 1880422v3 '1,C Lt'o � 73 16. Deliverv; Application of Proceeds. The Global Certificates when so prepazed and executed shall be delivered by the Director, Office of Financial Services, to the Purchaser upon receipt of the purchase price, and the Purchaser shall not be obliged to see to the proper application thereof. 17. Funds. There is hereby created a special fund to be designated the "2006 Capital Projects Fund" (numbered C-06, the "Capital Fund"), to be administered and maintained by the City Treasurer as a bookkeeping account separate and apart fzom all other accounts maintained in the official financial records of the City. There has been heretofore created and established the "General Obligation Special Assessments -- 5treets Debt Service Fund" (numbered 963, the "Debt 3ervice Fund"). The Capital Fund and Debt Service Fund shall be maintained in the manner herein specified until all of the Bonds and the interest thereon have been fully paid. (i) Capital Fund. To the Capital Fund there shall be credited the proceeds of the sale of the Bonds, less accrued interest received on the Bonds, and less any amount paid for the Bonds in excess of $12,337,500. From the Capital Fund there shall be paid all costs and expenses of making the Improvements listed in paragraph 18, after they have been ordered in accordance with the Charter of the City, including the cost of any construction contracts heretofore let and a11 other costs incuned 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 Fund shall be used for no other purpose except as otherwise provided by law; provided that the proceeds of the Bonds may also be used to the extent necessazy to pay interest on the Bonds due prior to the anticipated date of commencement of the collection of taaces or special assessments herein covenanted to be levied; and provided further that if upon completion of the Improvements there shall remain any unexpended balance in the Capital Fund, the balance may be transferred by the Council to the fund of any other improvement instituted pursuant to the City's Charter or Minnesota Statutes, Chapter 429, or used to pay the costs of any other purpose pernutted by law, or transfened to the Debt Service Fund. All earnings on the Capital Fund shall be transferred to the Debt Service Fund, or may be retained in the Capital Fund. (ii) Debt Service Fund. There is hereby pledged and there shall be credited to a special account relating to the Bonds in the Debt Service Fund: (a) collections of special assessments herein covenanted to be levied with respect to the Improvements; (b) all accrued interest received upon delivery of the Bonds; (c) all funds paid for the Bonds in excess of $12,337,500; (d) any collections of all taYes which aze levied herein, or which may hereafter be levied in the event that the special assessments herein pledged to the payment of the Bonds and interest thereon are insufficient therefor; (e) all funds remaining in the Capital Fund after completion of the Tmprovements and payment of the costs thereof, not so transferred to the account of another improvement or used to pay the costs of any other purpose pernritted by law; and (fl a11 investment earnings on moneys held in such special account in the Debt Service Fund or (at the City's option) on moneys held in the Capital Fund. If moneys in the special account of the Debt Service Fund should ever be insufficient to pay debt service on the Bonds, the Bonds shall be paid from the Debt Service Fund ar any other special account therein, and the Bonds are hereby 1880422v3 'l."] d�� �3 made payable from the Debt Service Fund and any other special accounts therein for this purpose. Amounts drawn from the Debt Service Fund or any special account therein may be repaid with or without interest when moneys sufficient for such repayment are deposited in the special account relating to the Bonds in the Debt Service Fund. The special account relating to the Bonds in the Debt Service Fund shall be used solely to pay the principal and interest and any premiums for redemption of the Bonds and any other general obligation bonds of the City heretofore or hereafter issued by the City and made payable from such special account in the Debt Service Fund as provided by law, or to pay any rebate due to the United States. No portion of the proceeds of the Bonds shall be used directly or indirectly to acquire higher yielding investments or to replace funds which were used direcfly or indirectly to acquire higher yielding investments, except (1) for a reasonable temporazy period until such proceeds are needed for the purpose for which the Bonds were issued, and (2) in addition to the above in an amount not greater than five percent (5%) of the proceeds of the Bonds. To this effect, any sums from time to time held in the Capital Fund or in such special account in the Debt Service Fund (or any other City fund or 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 arbitraae regulations may be invested without regard as to yield shall not be invested at a yield in excess of the applicable yield restrictions imposed by said arbitrage regulations on such investments after taking into account any applicable "temporary periods" or "minor portion" made available under the federal arbitrage regulafions. In addition, the proceeds of the Bonds and money in the Capital Fund or in such special account in the Debt Service Fund shall not be invested in obligations or deposits issued by, guaranteed by or insured by the United States or any agency or instrumentality thereof if and to the extent that such investment would cause the Bonds to be "federally guaranteed" within the meaning of Section 149(b) of the federal Internal Revenue Code of 1986, as amended (the "Code"). 18. Assessments; Coveraee Test. The City Council has heretofore determined, and does hereby deternune, to proceed with the Improvements and special assessments wlth respect thereto under the provisions of the Charter of the City, rather than the provisions of Minnesota Statutes, Chapter 429. It is hereby determined that no less than twenty percent (20%) of the cost to the City of each Improvement financed hereunder within the meaning of Minnesota Statutes, Section 475.58, Subdivision 1(3), shall be paid by special assessments to be levied against every assessable lot, piece and parcel of land benefited by the Improvements. The City hereby covenants and agrees that it will let all construction contracts not heretofore let within one yeaz after ordering each Improvement financed hereunder unless the resolution ordering the Improvement specifies a different Ume limit for the letting of construction contracts and will do and perform, as soon as they may be done, all acts and things necessary far the final and valid levy of such special assessments, and in the event that any such assessment be at any time held invalid with respect to any lot, piece or parcel of land due to any enor, defect, or inegularity, in any action or proceedings taken or to be taken by the City or this Council or any of the City officers or employees, either in the making of the assessments or in the performance of any condition precedent thereto, the City and this Council will forthwith do all further acts and take all further proceedings as may be required by law to make the assessments a valid and binding lien upon such property. 1880422v3 2$ b� ��3 The special assessments for the Improvements have not heretofore been authorized, and accordingly, for purposes of Minnesota Statutes, Section 475.55, Subdivision 3, the special assessments aze hereby authorized. Subject to such adjustments as aze required by conditions in existence at the time the assessments are levied, ihe assessments aze hereby authorized and it is hereby determined that the assessments shall be payable in equal, consecutive, annual installments, with general tases for the years shown below and with interest on the declining balance of all such assessments at a rate per annum approximately one percent (1%) per annum in excess of the net effective rate of interest on the Bonds: Improvement DesiQnation BakerBellows Chatsworth/Goodrich Orange/Park Hubbard/Griggs Local Street and Alley Sewer Improvements Loudin Lane Minnehaha Selby Avenue Sidewalk Reconstruction Amount $ 992,548* 1,123,404 475,000 488,750 I.evy Years Collection Years TOTAL 50,937 144,000 190,000 70,000 37,500 $3,572,139 *Also financed by bonds issued in 2005. 2006-2025 for all 2007-2026 for all The special assessments far the Improvements sha11 be such that if collected in full they, together with estimated collections of other revenues herein pledged far the payment of the Bonds, will produce at least five percent (5%) in excess of the amount needed to meet when due the principal and interest payments on the Bonds in every year. At the time the assessments for the Improvements aze in fact levied the City Council shall, based on the then-cunent estimated collections of the assessments, make any adjustments in any ad valorem taYes required to be levied in order to assure that the City continues to be in compliance with Minnesota Statutes, Section 475.61, Subdivision 1. 19. Appropriation. To the payment of debt service due on the Bonds on October 1, 2006, there is hereby appropriated $256,684 from the City's fund balance. 20. Ta7c Levy; Coveraee Test. If tases aze levied as provided in the final part of paragraph 18, the tas levies sha11 be irrepealabie so long as any of the Bonds are outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent permitted by Minnesota Statutes, Section 475.61, Subdivision 3. To provide moneys for payment of the principal and interest on the Bonds when due there is hereby levied upon all of the tasable property in the City a direct annual ad valorem issoa2z�s 29 0�� �3 tas which shall be spread upon the taac rolis and collected with and as part of other general property tases in the City for the yeazs and in the amounts as follows: Yeaz of Taac Levy Year of Tax Collection Amount 2006 2007 200$ 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2�24 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $776,420 777,960 773,543 768,707 763,450 757,773 762,072 755,135 758,174 760,372 761,731 762,249 761,275 759,221 761,135 756,273 760,815 758,767 760,060 The taY levies are such that if collected in full they, together with estimated collections of special assessments and other revenues herein pledged for the payment of the Bonds, will produce at least five percent (5%) in excess of the amount needed to meet when due the principal and interest payments on the Bonds. The tas levies sha11 be irrepealable so long as any of the Bonds aze outstanding and unpaid, provided that the City reserves the right and power to reduce the levies in the manner and to the extent pernutted by Minnesota Statutes, Section 475.61, Subdivision 3. 21. General Oblieation Pledge. 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 tasing powers of the City shall be and are hereby irrevocably pledged. If the balance in the special account relating to the Bonds in the Debt Service Fund (as defined in paragraph 17 hereofl is ever insufficient to pay a11 principal and interest then due on the Bonds payable therefrom, tbe 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 the Debt Service Fund and the special accounts therein, and such other funds may be reimbursed with or without interest from the special account in the Debt Service Fund relating to the Bonds when a sufficient balance is available therein. 22. Certificate of Re�istration. The Director, Office of Financial Services, is hereby directed to file a certified copy of this Resolution with the off'icer of Ramsey County, 1880422v3 30 1S� �73 Minnesota, perfornung the functions of the county auditor (the "County Auditor"), together with such other information as the County Auditor shall require, and to obtain the County Auditor's certificate that the Bonds have been entered in the County Auditor's Bond Register, and that the tax levy required by law has been made. 23. Records and Certificates. The officers of the City aze hereby authorized and directed to prepare and furnish to the Purchaser, and to the attorneys approving the legality of the issuance of the Bonds, certified copies of all proceedings and records of the City relating to the Bonds and to the financial condition and affairs of the City, and such other affidavits, certificates and information as are required to show the facts relating to the legality and marketability of the Bonds as the same appeaz from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates and affidavits, including any heretofare fiunished, shall be deemed representations of the City as to the facts recited therein. 24. Negative Covenants as to Use of Proceeds and Improvements. The City hereby covenants not to use the proceeds of the Bonds or to use the Improvements, or to cause or pernut them to be used, or to enter into any defezred payment arrangements for the cost of the Improvements, in such a manner as to cause the Bonds to be "private activity bonds" within the meaning of Sections 103 and 141 through 150 of the Code. The City reasonably expects that no actions will be taken over the term of the Bonds that would cause them to be private activiry bonds, and the average term of the Bonds is not longer than reasonably necessary for the governmental purpose of the issue. The City hereby covenants not to use the proceeds of the Bonds in such a manner as to cause the Bonds to be "hedge bonds" within the meaning of Section 149(g) of the Code. 25. Ta7c-Exempt Status of the Bonds; Rebate• Elections. The City shall comply with requirements necessary under the Code to establish and maintain the exclusion from gross income under Section 103 of the Code of the interest on the Bonds, including without limitation requirements relating to temporary periods for investments, limitations on amounts invested at a yield greater than the yield on the Bonds, and the rebate of excess investment earnings to the United States. The City expects that the two-year expenditure exception to the rebate requirements may apply to the construction proceeds of the Bonds. If any elections are available now or hereafter with respect to arbitrage or rebate matters relating to the Bonds, the Mayor, Clerk, Treasurer and D'uector, Office of Financial Services, or any of them, are hereby authorized and directed to mal:e such elections as they deem necessary, appropriate or desirable in connection with the Bonds, and all such elections sha11 be, and shall be deemed and treated as, elections of the City. 26. No Desi�nation of Oualified TaY-Exemot Obligations. The Bonds, together with other obligations issued by the City in 2006, exceed in amount those which may be qualified as "qualified tas-exempt obligations" within the meaning of Section 265(b)(3) of the Code, and hence aze not designated for such purpose. issoa22�s 3 � 06 �73 27. L.etter of Representations. The L.etter of Representations for the Bonds is hereby confirmed to be the Blanket Issuer L.etter of Representations dated April 10, 1996, by the City and received and accepted by The Depository Tmst Company. So long as The Depository Trust Company is the Depository or it or its nominee is the Holder of any Global Certificate, the City shall comply with the provisions of the Letter of Representations, as it may be amended or supplemented by the City from time to time with the agreement or consent of The Depository Trust Company. 28. Negotiated Sale. The City has retained Springsted Incorporated as an independent financial advisor, and the City has heretofore determined, and hereby determines, to sell the Bonds by private negotiation, a11 as provided by Minnesota Statutes, Section 475.60, Subdivision 2(9). 29. Continuing Disclosure. The City is an obligated person with respect to the Bonds. The City hereby agrees, in accordance with the provisions of Rule 15c2-12 (the "Rule"), promulgated by the Securities and Exchange Commission (the "Commission") pursuant to the Securities Exchange Act of 1934, as amended, and a Continuing Disclosure Undertaking (the "Undertaking") hereinafter described, to: A. Provide or cause to be provided to each naUonally recognized municipal securities information repository ("NRMSIR") and to the appropriate state information depository ("SID"), if any, far the State of Minnesota, in each case as designated by the Commission in accordance with the Rule, certain annual financial information and operating data in accordance with the Undertaking. The City reserves the right to modify from time to time the terms of the Undertaking as provided therein. B. Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the Municipal SecuriUes Rulemaking Boazd ("MSRB") and (ii) the SID, notice of the occurrence of certain material events with respect to the Bonds in accordance with the Undertaking. C. Provide or cause to be provided, in a timely manner, to (i) each NRMSIR or to the MSRB and (ii) the SID, notice of a failure by the City to provide the annual financial information with respect to the City described in the Undertaking. The City agrees that its covenants pursuant to the Rule set forth in this paragraph 29 and in the Undertaking are intended to be for the benefit of the Holders of the Bonds and sha11 be enforceable on behalf of such Holders; provided that the right to enforce the provisions of these covenants shall be limited to a right to obtain specific enforcement of the City's obligations under the covenants. The Mayor and Director, Office of Financial Services, or any other officers of the City authorized to act in their stead (the "Officers"), are hereby authorized and directed to execute on behalf of the City the Undertaking in substantially the form presented to the City Council, subject to such modifications thereof or additions thereto as are (i) consistent with the requirements under the Rule, (ii) required by the Purchaser, and (iii) acceptable to the Officers. issoazz�s 32 ��� 30. Severabilitv. If any section, paragraph or provision of this resolution shall be held to be invalid or unenforceable for any reason, the invalidity or unenforceability of such section, pazagraph or provision shall not affect any of the remaining provisions of this resolution. 31. Headines. Headings in this resolution are included for convenience of reference only and are not a part hereof, and shall not limit or define the meaning of any provision hereof. Requested by Department of: Office fFina ial Se �ces Bv: � Form Approved by City Attorney B �'s� 49q • �,t,vf�� Adoption By:� Council Secretary Approved M yor fo • Submis 'on to Council By: � �3-rs1-v� : issoa2z�z 33 Adopted by Council: Date //�/i•ei� � �lJ� � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � DepartmenUofficelcouncih n��e i..;a:.,...... � v � FS – FinancialServices Contacf Person 8 Phone: Todd Hu�iey 266-8837 Must Be on Council Agenda by 16MAR-06 Contract Type: AR-RESOLU770N W/$ iR,4NSACTION 03-MAR-06 � Green Sheet NO: 3029932 � ' Assign Number For Routing Order .,euarcmenc sent i o rerson Initial/Date 0 in 'al 1 inancial ervi De rtment ' ct r 2 i inautiai Services ce FSnanciat 3 ' Attorne � 4 a or's Offi Ma or/ nt 5 ouncil Cit Council 6 i er erk Total # of Signature Pages _(Clip AII Locations forSignature) Signatures on the attached resolufion accepting the proposal on sale of $12,500,000 G.O. Street Imrpovement Special Assessment Bonds, Series 2006B, providing for their issuance and levying a tae for the payment thereof. iaanons: Appro�e (A) or Reject (R): Planning Commission CB Committee Citii Service Commission Personal Service Contrects Must Answer fhe Following 1. Has this persoNfirtn e�er worked under a contract for this departmeM? Yes No 2. Has this person/firm e�er been a city employee? Yes No 3. Dces this person/firm possess a skill not nortnally possessed by any curtent ciry employee? Yes No Explain all yes answers on separete sheet and attach to green sheet Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): The ciry wishes to sell $12,500,000 in G.O. Street Improvement Special Assessment Bonds, Series 2006B. AdvanWges If Approved: The bonds will be sold. �����' MAR 0 6 2006 DisadvanWges IfApproved: None MAYOR'S OFFICE Disadvantages MNotApproved: The bonds will not be sold ��b�.+i�iouncor $12,500,000 Transaction: Fundinq Source: Financial Infortnation: (Explain) CosNRevenue Budgeted: Y Activity Number: �.�°�.�`%i� ?"}� � ��s� n '� �'� March 3, 20061:55 PM Page 1